03.21 Streetlight LED Conversion1. SUBJECT
Bid No. 189 -02; LS -1 City Purchased Streetlight LED Conversion (SP- 4068).
2. SUMMARY
The City completed acquisition of the Southern California Edison (SCE) owned (LS -1)
streetlights in April 2018. Specifications to retrofit these streetlights (4,323) with energy saving
LED lamps are finished, and this phase of the project is ready to be advertised for bids. The total
estimated construction cost is $1.5 million, with the City realizing a net savings of $1,333,538
over 20 years, in both reduced electrical and streetlight maintenance costs.
3. RECOMMENDED ACTION
Approve specifications and authorize advertisement for bids for the Streetlight LED Conversion
of the recently purchased LS -1 streetlights from SCE.
4. FISCAL IMPACT
Funds are available in the following account:
550.5011.56330.20330 LED Streetlight Conversion $ 1,500,000
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.
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's street lighting network consists of a mix of City and SCE streetlights, totaling 8,812.
After the recently completed acquisition from SCE, the City now owns 7,466 (85 %) of the total
count. Last year, the City completed converting the City owned (LS- 2 /LS -3) streetlights to LED
fixtures. In this second phase of the initial energy efficiency project, we will retrofit 4,323 of
those streetlights acquired from SCE with LEDs to save energy costs. Specifications have been
completed and are ready to be advertised for bids.
The primary advantage in acquiring the 4,323 SCE owned street light poles is the lower rate for
City owned and operated streetlights (LS -2 rate structure versus LS -1 rate structure). The
difference in rate is about 53% less. By converting the streetlights to LEDs, the City will see
further energy savings. Another advantage is the ownership of the streetlights will afford the City
the opportunity to use the street light facilities as infrastructure for future data network
opportunities as well as monetize the poles through leases with wireless technology providers.
Currently, the City is a participating member in the North Orange County Cities (NOCC) Energy
Partnership with SCE and Southern California Gas (Resolution No. 10878). As a member, the
City receives additional rebates /incentives on energy efficiency projects above and beyond the
standard rebates /incentives available to the general public. The City will leverage these rebates/
incentives to maximize savings. The rebates /incentive program has a tier system. The first phase
of the street light project, along with a few other measures, have moved the City up the tier
structure, ultimately resulting in additional savings for this and future energy efficiency projects.
To fund the project, Public Works will apply for SCE energy efficiency incentives /rebates and
has received acknowledgement that the City will be awarded an estimated $468,836. Due to
accelerated SCE deadlines, this retrofit project needs to be completed by end of November,
2018. Public Works plans to secure zero - percent On- Bill - Financing (OBF) to fund the remaining
approximately $1 million for streetlight LED retrofit project. The zero - percent OBF will be paid
over 3 years by future savings in electrical costs of about $378,723 per year. Once the OBF is
paid off in 3 years, the annual net savings to the City is approximately $142,000.
The age of the SCE street lights system ranges from the 1950s to the present, with 43% of the
poles constructed in the 1960s. In spite of the age of the system, our investigation determined
that the poles are still in good condition; therefore, a large pole replacement program is not
necessary. An annual pole replacement program of 0.5% was determined to be appropriate for
replacement and ten knockdowns for the additional maintenance cost within our analysis.
Ultimately, the City should save approximately $1.33 million dollars over a 20 -year period
inclusive of the purchase, maintenance, and retrofit costs.
ITEM 2 07/10/18
The conversion of the existing City streetlights to LED fixtures will provide a multitude of
benefits to the City, including:
• Reducing the cost to maintain streetlights
• Capturing $468,836 in utility incentives
• Decreasing the effect of future utility costs increases on the General Fund
The LED lamp in general is brighter than the high - pressure sodium lamp, so staff will conduct
public outreach through the city website, social media, and project flyers. When needed, glare
shields will be installed to prevent light spillage into homes. Although LED lighting is an
energy- efficient way to illuminate streets, it is important to direct the light only where it is
needed to support visibility and safety.
8. ATTACHMENTS
• Specifications and cost estimates are available for review in the Public Works Department
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ITEM 3 07/10/18