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Home My WebLink AboutStreet Lighting Update - City Council Study Session - 02-18- qzv FB 17,Leas.a- Seg gUpdatetre t li htin U City Council Study Session February 18th 2014 SUPPLEMENTAL COMMUNICATION Meebrg Late: Agenda Item No. zd� Agenda 1 . Street lighting review ? 2 . Cost avoidance to date 3 . Utility owned buyback/ upgrades 4 . City p9 owned upgrades 5 . Next Steps -�� the- pstreamlined, and effective energy efficiency & sus ainabili y Street . light review --�� 1 o Street lighting is the most visible energy service o A brand statement for the city o All new developments use long - life white light in parking lots o Opportunity within existing budget to improve infrastructure _State-of-the-a,lrt, streamlined, and effective energy efficiency & sustainability n. Street light review FY 12/ 13 Electric Expenditures $2,386,765 - ❑ SCE owned street lights / (LS-1) ❑ HB owned unmetered $11813,748 street lights (LS-2) ❑ HB owned metered street lights (LS-3) ■ Everything else $42,962 $163,712 State-of-the-art, treaml n , and effective energy efficiency & susta nobility Street .light review o LED Revolution o Better light quality o Falling prices o About 50% reduction in energy use and environmental impacts 0 84% reduction in maintenance costs (4 yrs versus 24 yrs) o Cities with hundreds of thousands of upgrades already accruing savings State-ohli'---the-art, streamlined, and effective energy efficiency & sustairrability y 4 , x .i As f{ } u i xw , Street light review 0 1982 Council Resolution # 5170 on street light issues o Cause rates to reflect actual use o Clarify procedures for purchasing street lights o Valuation respects source of capital funds o Install energy efficient, economical street lighting State-of-the-art, streamlined, and effective energy efficiency & sustainability Street light review o HB joined Coalition for affordable street lights ( CASE) o CASE and SCE reached a settlement agreement o SCE changed its policy to amicably sell utility owned street lights o Replacement costs new less depreciation model State-of-the-art, streamlined, and effirective energy efficiency & sustainabNiYy '► u Settlement Avoided Costs $2,200,000 $2,1 1 )$2,150,000 $2,100,000 $2,050,000 $2,0 0 � o Business as usual (BAU) / ❑Settlement Agreement $2,000,000 $1,961,344Zi $ 23J2 2 $7i, ,< 2�,3J 2 1 $1,950,000 $1,900,000 $1,850,000 2012 2013 2014 2015 Mate-of t-h e-a re strew fin 0 .and e ccc��v energy efficiency & sustainabilify �e Street light RFQ o The citycompetitively p y selected a n d i Council awarded to siemens on r t 2/4/ 13 for street lighting services o Guaranteed economics o Valuation/purchase support o Long - life, efficient, white light upgrades o Upgrades to dangerous, inefficient and outdated street light infrastructure o Long -term operations and maintenance o Equipment replacement reserves State-oiF-she-art,. streamlined, and eiffect v energy efficiency & sustainabiiity ofe<h.f909•P . ` Siemens Qualifications - Founded over 165 years ago, stable long-terra partner - c Over $480 Million in energy service contracts Have completed over 100,000 street light retrofits more the 400 000 street lights Maintainshts nationwide g Can complete project entirely in-house x 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. SCE Initial Valuation Rio Guaranteed max . price $450/pole o N11 , 181 poles eligible for sale o N $ 5 , 000 , 000 purchase price o Adjustments pending o Less N $ 700, 000 o Working price for analysis o $4, 300, 000 o < $ 5M smoother PUC approval State-of-the-art, streamlined, and effective energy efficiency & sustainability Siemens Initial Valuation o Price is workable o To date , no disastrous conditions o Phase 1 Council approved on 2/4/ 13 o $ 10K — SCE o LOI not to exceed $68K Siemens o $51K spent to date o Seeking authorization to move into Phase 2 - assess every pole for purchase State-of-the-art, streamlined, and effirective energy efficiency & sustainabUity i Buyback — Pro Forma target $2,000,000.00 '� f $1,800,000.00 ` $1,600,000.00 $1,400,000.00 $1,200,000.00 $1,239,373.00 $1,000,000.00 $800,000.00 $600,000.00 $400,000.00 $505,052.0 $200,000.00 $- / Current SCE Owned (LS-1) HB Owned (LS-2) & Upgraded ®Annual Utility Budget ';Purchase/Upgrade Debt Service & Annual Maint. o General Fund Savings ��a -of--t -art, streamlined, and effective energy efficiency & sustainability Infrastru ctu re -��- o Street lig ht infrastructure improvements o Antiquated , hazardous series circuits o Parts no longer manufactured o Upgrade 2nd block of Main to brighter fixtures o City owned parking garage o CIM/Shorebreak garage - enterprise funds I Next Steps Fq 11.{949.P. i . Utility owned Infrastructure o Phase 2 Buyback Due Diligence o SCE provides final price and contracts o City staff seek final Council approval 2. City owned Infrastructure o April 7th meeting item o City owned LED lighting upgrades o A few series circuits o Enterprise Funded Parking Garage o Financing State-of-the-art., streamlined, and effective energy efficiency & sustainability r Utility Owned Infrastructure o Siemens Phase, 2 buyback o Siemens cost not to exceed $ 166K o Evaluate and document condition of pole/system o Resolve issues in Findings Log O HOA private streets O Double billing o Long -term maintenance of street lights o Finalize infrastructure upgrades o city owned garage and series circuits o Investment Grade Assessment report State-of-the-art, streamlined, and effective energy efficiency & sustainability Utility Owned Infrastructure o SCE provides final price and contract o Staff will seek final Council Approval o SCE owned buyback and upgrade o Balance of hazardous & antiquated series circuits o Upgrade city operated parking garage o Final economic analysis and approval o SCE files Advice Letter with Public Utilities Commission ( PUC) State-of-th�e-art, streamlined, and effective energy efficiency & sustainability r infrastructure CityOwned - o TargetingApril 7t" meeting o City- owned street area light infrastructure upgrades ! ' o LED upgrades to N2 306 city owned poles o Bill corrections N $44, 000 of savings o Sample issues o Double billing o Phantom and poles outside H B o Tariff rate corrections o Partial and complete Homeowner's Association street lights State-of-the-art, streamlined, and effective energy efficiency & sustainability City Owned Infrastructure o Series and LED upgrades for 2 series circuits (Walnut and Olive) o DT taskforce and PD priorities ! ' o LED upgrade - Shore break parking garage - enterprise funds o Public hearing to borrow N $ 1 . 6M and service debt from utility bill savings o Award contract to Siemens streamlined, and effective energy efficiency & sustainability Conclusion -- o City's energy program has been successful focusing on city bldgs . � o Cut 5,000,000 KWh of waste o Avoided costs of over $750,000 annually o Achieved platinum partner status with SCE o Now shifting to the more challenging street lighting opportunities to make the utility budget work harder State-of-Me-art, streamlined, and effiective energy efficiency & sustainability Conclusion HB has unique opportunity 1 . Take advantage of disruptive tech 2. Provide better lighting services 3. Reduce energy use and environmental impacts 4. Reduce maintenance costs 5 . Clear a multi - million dollar maintenance backlog and reduce liability State-of-the-art, streamlined, and effective energy efficiency & sustainabiUty • � G Street light Update - � U oQuestions State-of-the-art, streamlined,, and effective energy efficiency & sustainability