HomeMy WebLinkAboutStreet Lighting Update - Study Session 02-04-2013 Street lighting Update
City Council Study Session
February 4th, 2013
Agenda
1. Street lighting overview
2. Rate Case -Settlement Agreement
3. SCE Policy change
4. Prop 39
5. RFQ
State-of-the-art, streamlined, and effective
COMMUNICATION
Meeting Date: 2 1414�0 13
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Agenda Item No. �,S --#-
Fl 1
Street light overview
o Street lighting is the most visible
energy service
A brand statement for the city
o For example, commercial parking
lots
7-11
Big box stores
Shopping centers
State-of-the-art, streamlined, and effective
energy efficiency& sustainability
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HB FY 10/11 Electric Costs
Electric Cost KWh
®SCE owned (LS-1;
Customer owned 1418,517
(LS-2)
$1,819,895 sz0,vss
Customer owned
metered(LS-3) A,049,701
/4;
■Everything else
S2,384,282 $172,487
s49,029
he-art, streamlined, and effective
energy efficiency& sustainabin:
Street lighting overview
o 1982 Council Resolution #5170 on
street light issues
Cause rates to reflect actual use
Clarify procedures for purchasing
street lights
Valuation respects source of capital
funds
Install energy efficient, economical
street lighting
State-of-the-art, streamlined, and effective
energy efficiency& sustainabiliry
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General Rate Case (GRC) r
o IRC approved joining the Coalition for
Affordable Street lights (CASE)
Moreno Valley, Yorba Linda, Torrance,
Downey, Murrieta, Rancho Cucamonga and
Upland
o Initial testimony and discovery phases
o SCE proposed —5% annual increases
for the next 3 yrs
o Reached a Settlement Agreement
State-of-the-art, streamlined, and effective
GRC Settlement Agreement
$2,200,000 $2,1 1
2,150,000
$2,1 8
$2,100,000
$2,050,000 $2,0 0
Business as usual(BAIL)
$2,000,000 $1,961,344 Settlement Agreement
2 2 2
$1,950,000
$1,9001000
$1,850,000
2012 2013 2014 2015
State-of-the-art, streamlined, and effective
energy efficiency&sustawacm:v
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SCE policy change
o SCE is willing to amicably sell
street lights
Replacement costs new less
depreciation model
SCE's capital investment (2012) $642
or $710 per pole
o Over 75% of HB's street lights are
beyond one or more of the
expected useful lives
State-or-one-ai t, sti eainiinea, and effective
energy efficiency& sustai ,,.
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Proposition 39
o Provides $550M annually for 5
years for clean energy projects
in Gov't facilities
o Double the size of recent grants
o Legislation this session
SB 39, AB 29 and AB 39
• Local governments are seeking
amendments to remain eligible for
funding
State-of-the-art, streamlined, and effective
energy efficiency& sustainabil,'.
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Public-Private PartnershipQ.� Ir
o HB staff have run an RFQ for a long-
term partner that will provide:
* Guaranteed savings to General Fund
o At least $200K of 1st year savings
o More savings depends on Prop 39 funding
Valuation/purchase support
Long-life, efficient, white light upgrades
. Upgrades to dangerous, inefficient and
outdated street light infrastructure
. Long-term operations and maintenance
• Equipment replacement reserves
State-of-the-art, streamlined, and effective
Public-Private Partnership
o Six respondents to the RFQ
Submissions and interview process
o Highest ranked proposer was
. Siemens
o 1st phase of work - purchase
activities under letter of intent
o City not liable unless we cancel
State-of-the-art, streamlined, and effective
energy e`
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Siemens Qualifications
Founded over 165 years ago, Stable long-term partner
i
Over $480 Million in energy service contracts
Have completed over 100,000 street light retrofits
Maintains more the 400,000 street lights nationwide
Can complete project entirely in-house
Authored legislation allowing cities to purchase street lights
Guarantee no change orders on the scope of project
Siemens stands for technological excellence, innovation, quality, and
reliability and is the world's largest provider of environmental
technologies.
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Streetlight Upgrade Benefits
Siemens will:
o Develop a positive cash flow project with
no upfront investment •'
o Provide full scope of energy project
services
o Deliver a turnkey project on time and
within budget
o Accelerate the timeline and cost savings
o Reallocate risk from city to Siemens
o Provide white light technology, consistent
lighting, lower costs and a 10-year
maintenance program
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Purchase — Pro Forma
$2,000,000.00
$1,800,000.00
M1Y '
$1,600,000.00 -
- - $1,900,000.00
$1,200,000.00 $1,239,373.0
$1,000,000.00
$800,000.00
$600,000.00
$400,000.00 -
$200,000.Do
s-
Current SCE Owned(L-1) He Owned(L-2)&Upgraded
.Annual Utility Budge PURhaWUWrade Debt Service&Annual Malnt. -General Fund Savings
State-of-the-art, streamlined, and effective
Council approvals
o Phase 1
$10K - SCE
Not to exceed $68K Siemens
o Phase 2 - at a future meeting
To be determined - SCE
Not to exceed $166K Siemens
o Final Approval - at a future meeting
. Final economics and approval
State-of-the-art, streamlined, and effective
energy efficiency R sustainabi'i)
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f
Street light Update
o Street lights are an essential
service that sends a brand
message about HB
o Large difficult to scrutinize item
o Never been subject to competition
o Re-structuring this service can :
. Improve branding & infrastructure
. Provide near term and long-term cost
savings
State-of-the-art, streamlined, and effective
energy efficiency& sustainabilitq
Street light Update
oQuestions?
State-of-the-art, streamlined, and effective
energy efficiency& sustainabih
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