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SR - AGR-6499 - CONVERT SCE OWNED STREET LIGHTS TO LEDApplication and Agreement with Southern California Edison (SCE) to convert SCE -owned street lights to Light Emitting Diode (LED). 2. SUMMARY City staff is in the process of upgrading our street light system to LED fixtures. Currently, the City is retrofitting 2,504 of our City -owned street lights to LED fixtures. Additionally, we are in the process of purchasing 4,359 SCE street lights, which we plan to convert to LED fixtures once the acquisition is complete. Unfortunately, not all of the SCE street lights were available for purchase. Therefore, staff is requesting SCE to upgrade 1,340 of their fixtures to LED for lighting consistency throughout the City. Each of these upgrades provide for a more efficient and visually enhanced system, which will save the City money on our electric bills. 3. RECOMMENDED ACTION 1) Approve the Schedule LS -1 Option E, Energy Efficiency - Light Emitting Diode (LED) Fixture Replacement Rate Agreement with SCE. 2) Authorize the City Manager to execute other documents related to the application process with SCE for retrofitting these street lights to LED. 4. FISCAL IMPACT None. 5. STRATEGIC PLAN GOAL(S) 2. Be fiscally healthy community — d. Effectively manage and develop City assets. 3. Enhance and promote quality of life in the community — e. Develop and strengthen collaborative partnerships to enhance and promote quality of life programs, projects and services. 4. Provide outstanding public service — b. Provide facilities and services to meet customer expectations. 6. GENERAL PLAN IMPLEMENTATION Natural Resources Element Goal 2.0 Protect air, water and energy resources from pollution and overuse. Policy 2.9 — Promote City operations as a model for energy efficiency and green building. Natural Resources Element Goal 3.0 Prepare for and adapt to the effects of climate change and promote practices that decrease the City's contribution to climate change. 7. DISCUSSION and BACKGROUND The City is currently retrofitting 2,504 of our City -owned street lights to LED fixtures. We are also in the process of purchasing 4,359 SCE street lights, which we plan to convert to LED fixtures once the acquisition is complete. The 4,359 SCE street light purchase and LED conversion is estimated to have a net saving of $1.33 million over 20 years. Unfortunately, not all of the SCE street lights were available for purchase. Due to existing distribution lines and third party equipment that is attached, there are 1,340 SCE owned street lights remaining in the City boundaries. While the City could not purchase those street lights, SCE offers a program to retrofit these lights as well. The LS -1 Option E tariff became available in early 2016 and it offers the City a slightly lower rate. The new tariff allows SCE to retrofit SCE owned street lights with more efficient LEDs. The capital cost is amortized through energy cost savings over a 20 year period. This Agreement will request SCE to upgrade the 1,340 fixtures to LED. It is estimated that the City will save approximately $103,000 over the 20 years. While the savings is minimal, the primary purpose for participating in the program is to ensure consistency with the lighting illuminations throughout the City once all City owned street light are retrofitted with LEDs 8. ATTACHMENTS • Schedule LS -1 Option E, Energy Efficiency - Light Emitting Diode (LED) Fixture Replacement Rate Agreement