CC - Item 6A - Southern California Edison Street Light Acquisition and Conversion ProgramROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: BILL R. MANIS, CITY MANAGER ,,,e.Pr`
DATE: JANUARY 10, 2017
SUBJECT: SOUTHERN CALIFORNIA EDISON STREET LIGHT ACQUISITION
AND CONVERSION PROGRAM
SUMMARY
During the fourth quarter of 2015, the City Council directed staff to work with Southern
California Edison (SCE) to prepare a valuation for the street lights within the City. The purpose
of the valuation was to consider the potential acquisition and/or conversion of the street lights by
the City.
There are 2,511 street lights in the City. The majority of these street lights are owned by SCE
and most use high pressure sodium, which are not energy efficient or easy to maintain. The City
is eligible to purchase approximately 1,459 of the street lights from SCE, with the opportunity to
retrofit them to LEDs to reduce energy consumption and maintenance needs. The City currently
owns and operates 176 streetlights that are under additional consideration for LED retrofit. The
remaining 876 street lights are not eligible to be purchased by the City because they are located
on high voltage distribution line poles.
The City has four options to explore:
1. Status Quo
2. SCE Conversion Program — LED Bulbs
3. City Acquisition and LED Conversion
4. Tanko Lighting Acquisition and LED Conversion
ITEM NUMBER:
City Council Meeting
January 10, 2017
Page 2 of 8
OPTION]. STATUS QUO
SCE will continue to own all 1,459 of the street lights available for purchase and nothing will be
changed.
Current Annual Street Lighting Cost SCE and City owned Street Lights)
No. of SCE Owned Street Lights for Purchase 1,459
No. of City Owned Street Lights 176
Facilities & Energy Charge — Flat Rate $229,101
Total Cost* $229,101
*SCE owned and City owned street lights
Liability
No liability to the City. Streets lights owned and maintain by SCE.
OPTION 2. SCE CONVERSIONPROGRAM TO LED BULBS
SCE will eventually convert the existing street lights from high pressure sodium street lights to
LED without any street light acquisition or cost to the City The street lights will still be owned
by SCE.
This is a first come, first served basis program for SCE owned lights only and there is no
guarantee that SCE will be replacing the lighting in the near future. If the City chooses to let
SCE do the conversion at no cost, the following is an estimate associated with costs and savings
over the first 20 years:
Approximate Current Annual Street Lighting Cost SCE owned Stre(
No. of SCE Owned Street Lights 1,459
Facilities & Energy Charge $204,432
Total Cost* $204,432
4 Lights)
*SCE owned street light only
City Council Meeting
January 10, 2017
Page 3 of 8
Status Quo
SCE Conversion Program- LED*
$204,432
$189,062
Total Approximate Annual SCE LS1 Savings first 20 years $15,370
Total Approximate Annual Savings after 20 years $43,596
ha-ed on LS LED nroeram
Liability
No liability to the City. Streets lights are owned and maintained by SCE.
OPTION 3. CITY ACQUISITIONAND LED CONVERSION
SCE has a program that provides cities the opportunity to purchase the street lights and convert
them to LED. In Option 3, City staff would provide administrative supervision for the acquisition
and conversion process. In addition, the City would convert the 176 City owned fixtures. The
following is a cost estimate:
Cost Estimate
City Conversion from high pressure sodium to LED $544,989
Street Light Acquisition by the City $918,798
Rebate (Estimate) <$137,750>
Total Capital Cost $1,326,037
Funding
The City currently has $350,000 in available funding via the Street Lighting District. Depending
on the direction by City Council and available financing options, these funds may be used to help
subsidize the loan amount and reduce payments. This funding can also be kept in reserve to
cover unanticipated repair costs.
City Council Meeting
January 10, 2017
Page 4 of 8
Approximate Annual most
Annual Facilities & Energy Cost (SCE grid energy supply) $65,308
Annual Maintenance Charge to be provided by contractor $16,000
Estimated Annual Financing Cost for 12 years $145,404
(3% annual rate -if finance)
$226,712
Total Annual Cost
Status Quo $229,101
SCE Acquisition- LED $226,712
Total Annual Savings during 12 -year Loan $2,389
Total Savings over 12 -year Loan $28,668
($2,389 x 12 years = $28,668)
Total Annual Savings After Loan $147,793
($147,793 x 8 years = $1,182,344)
Total 20 Year Savings $1,211,012
009 669 +X1.1R2.344 =.'U.211.012)
Liability
The City is liable for maintenance, repair and claims on all City owned street lights. The increase
in insurance cost will be approximately $400 per year. However, any claims related to the City
owned street lights would have an impact on the annual contribution.
Currently, there is a pending lawsuit against SCE and other utilities involving pollution claims
related to wooden light poles. SCE has not made revisions to its release and indemnity
provisions for other cities purchasing street lights from SCE. These provisions effectively make
the cities liable for any environmental claims relating to the poles and includes environment
claims that have not yet been made, but occurred during SCE's ownership.
City Staff Workload
City staff estimates that approximately 250 working hours will be required to properly
administer the streetlight acquisition. Some of this workload would include accompanying SCE
during the changeover audit, determining appropriate fixtures replacements, release and resolve
bids for material, install and maintenance, and processing SCE rate change and rebate
City Council Meeting
January 10, 2017
Page 5 of 8
paperwork.
City staff involvement after acquisition will include ongoing maintenance by City personnel or
administration and oversight of a consultant contracted to perform maintenance, processing of all
invoicing and billing and continued coordination with SCE.
OPTIONS. TANKO LIGHTING ACQUISITIONAND LED CONVERSION
Tanko Lighting is a consultant that provides cities administrative and maintenance services to
acquire and convert street lights. City staff has been working with Tanko lighting through the
option evaluation process. The following is an estimate provided by Tanko lighting for the turn
key process. These estimates are based on a general replacement schedule that will be refined
more specifically for the needs of the City of Rosemead. In addition, the estimated loan rate will
likely improve once offers are requested by the City.
Cost Estimate
SCE Conversion from high pressure sodium to $544,989
LED
Street Light Acquisition by the City $918,798
Rebate (Estimate) <$137,750>
Total Capital Cost $1,326,037
Funding
The City currently has $350,000 in available funds via the Street Lighting District. Tanko
Streetlighting will assist City staff is determining the best financing options and analyze the most
efficient use of the available funding.
approximate Annuai g ost
Annual Facilities & Energy Cost (SCE grid energy $65,308
supply)
Annual Maintenance Charge to be provided by $15,713
a contractor
Estimated Annual Financing Cost for 20 years $145,404
(3% annual rate -if finance)
Total Annual Cost $226,425
City Council Meeting
January 10, 2017
Page 6 of 8
Status Quo
SCE Acquisition- LED
$229,101
$226,425
Total Annual Savings during the 12 -year Loan* $2,676
Total Savings over 12 -year Loan $32,112
($2,676 x 12 years = $32,112)
Total Annual Savings After Loan $148,080
($148,080 x 8 years = $1,184,640)
Total 20 Year Savings $1,216,752
($32,112 + $1,184,640 = $1,216,752)
Liability
The City is liable for maintenance, repair and claims on all City owned street lights. The increase
in insurance cost will be approximately $400 per year. However, any claims related to the City
owned street lights would have an impact on the annual contribution.
The same pending lawsuit against SCE and other utilities involving pollution claims related to
wooden light poles and potential liability mentioned in Option 3, also apply to option 4.
Difference between Option 3 and Option 4
The difference between the Tanko Lighting acquisition and conversion program and the City
staff acquisition and conversion program is that Tanko Lighting offers a comprehensive turnkey
process that utilizes unique approaches to expedite the acquisition process with minimum
involvement from City staff during the process, resulting in additional savings to the City.
Tanko Lighting is currently assisting Santa Ana, Orange, Tustin, West Hollywood, Signal Hill,
Fullerton and Rancho Cucamonga with similar work.
If Council recommends Option 4, the following methods are available to use:
1. Sole Source - California ESCO sole source law allows a municipality to avoid Request
for Proposal (RFP) when a project is related to energy efficiency and is revenue neutral,
or in this case, positive.
2. Piggy Back — When a municipality utilizes another municipalities RFP and cost
estimate /valuation for professional services.
3. RFP
City Council Meeting
January 10, 2017
Page 7 of 8
BENEFITS AND IMPACTS OF LED RETROFIT
Benefits of LED Retrofit
Potential Impacts
Cost Savings (electricity and maintenance) Discomfort/glare
Greenhouse Gas Emission Reduction
An American Medical Association report says
high- intensity LED streetlights emit unseen
blue light that can disturb sleep rhythms and
possibly increase the risk of serious health
conditions, including cancer and
cardiovascular disease and confuse animals.
Improved Visibility
Impair nighttime driving vision
According to the Wall Street Journal (Attachment A), about 500 New York City residents signed
a petition urging the City to stop installing a certain kind of LED. The petition asked for fully
shielded lights that would decrease light pollution and for LED lights of a warmer color,
meaning more yellow.
How to Address Potential Impacts:
Cooler and dimmer LEDs are preferable in residential areas.
Shielding will minimize glare and other impact to human and environmental health.
See attached letter from our electrical consultant regarding Wall Street Journal Article
(Attachment B).
STAFF RECOMMENDATION
That the City Council provides direction regarding the following options:
1. Status Quo
2. SCE Conversion Program — LED Bulbs
3. SCE Acquisition and LED Conversion
4. Tanko Lighting Acquisition and LED Conversion
FISCAL IMPACT
As indicated in the summary of this report, the acquisition cost from SCE would be $918,798.
The City has approximately $350,000 from Street Lighting Funds that can be utilized towards
this project. The City can also opt to not draw from the Street Lighting Funds and finance the full
City Council Meeting
January 10, 2017
Page 8 of 8
cost of the project. There would be an increase in insurance cost of $400 a year plus any cost
associated with claims related to the City owned street lights. The potential overall liability cost
is currently unknown due to the pending lawsuits with SCE and the possibility of cities being
liable for any environmental claims relating to the poles, including environment claims that have
not yet been made, but occurred during SCE's ownership.
STRATEGIC PLAN IMPACT - None
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Submitted by:
Rafael NY a'ardo, P.E., City Engineer
�
Submitted by:
j ,
Kathy G#ia, P.E., Public Works Director
Attachment A: The Wall Street Journal Article
Attachment B: CEG Engineering, Inc. Letter RE: Replacement of Existing Streetlight
with LED Streetlight Fixtures
Attachment A
The Wall Street Journal Article
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Attachment B
CEG Engineering, Inc. Letter RE: Replacement of Existing
Streetlight with LED Streetlight Fixtures
(Q] C E G Engineering Inc.
Consulting Engineers Group
1543 W Garvey Ave N, #210, West Covina, CA 91790
TEL (626) 308 -1268 FAX (626) 308 -1216
October 17, 2016
Mr. Rafael M. Fajardo
City Engineer
City of Rosemead
8838 E. Valley Boulevard,
Rosemead, CA 91770
Regarding: Replacement of Existing Streetlight with LED Streetlight Fixtures
Dear Mr. Fajardo,
We have reviewed the article discussing the replacement of old streetlight with energy - efficient LED light
fixtures. The article is accurate regarding the fact that, in addition to cost savings associated with reduced
energy consumption, the brighter and bluish light of a LED lamp will affect human and animal sleep
cycles.
The color temperature of the LED light source is calculated with the Kelvin Temperature number on the
lamp. LED lamps can be produced ranging from 2700K to 5000K Kelvin. The higher the Kelvin
measurement is, the higher the Color Rendering Index (CRI). The CRI is a measure of a light source's
ability to show object colors "realistically" or "naturally.'* For example, an object viewed under a light
source of 5000K Kelvin will be closer to viewing the object under natural daylight when compared to
light at a lower Kelvin temperature. An object viewed under the fight source of 2700K Kelvin will appear
yellowish, similar to viewing the same object under an incandescent lamp. In another words, an object
viewed under a 5000K Kelvin light source can be seen much more clearly than under a 2700K light
source.
Therefore, to replace streetlights with LED light fixtures, we have the following suggestions
1. Install higher Kelvin LED fixtures on the busy major streets. Provide shielding on the fixture and
adjust the LED lamp so that it only illuminates the roadways and sidewalks. and minimizes
illumination of private property.
2. Install lower Kelvin LED fixtures on residential streets. Provide shielding on the fixture and
adjust the LED lamp so that it only illuminates the roadways and sidewalks.. and minimizes
illumination of private property.
Please let me know if you have any question or comments,
With best regards,
JessicaYu P.E.
Electrical Engineer
CEG Engineering, Inc.
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OSME D
Southern California Edison (SCE) Street Light
Acquisition and Conversion Program
CITY COUNCIL MEETING
January 10, 2017
7:00 pm
OSE EAD
SCE STREET LIGHT ACQUISITION AND CONVERSION
PROGRAM
OPTIONS
1. Status Quo
2. SCE Conversion Program — LED (Light- emitting Diode) Bulbs
►CE Acquisition and LED Conversion
'anko Lighting Acquisition and LED Conversion
��( I
OSE EA
OPTION 2
SCE CONVERSION PROGRAM TO LED BULBS.
• SCE has a program to replace high pressure sodium and convert to LED.
At this time, first come — first serve basis.
• No cost to the City.
Liability — No liability to the City. Street lights owned and maintained by SCE.
If
Annual Cost
OSE EAD
SCE Conversion Program- LED $189,062
OPTION 3 Are"
SCE ACQUISITION AND LED CONVERSION OSE EAD
• SCE has a program that provides cities the opportunity to purchase the street lights.
• LED Conversion.
• Liability — City is liable for maintenance, repair and claims. Managed by external
contractor.
• Increase "All Risk" premium $400 /year; however, subject to change due to claims.
• Depending on financing option, $350,000 from Street Light District as down payment.
• Estimated 250 hours of City staff work to manage project (additional cost).
Funding
Estimated SCE Rebate <$137,750>
Annual Maintenance Charge to be provided by a contractor. $16,000
Estimated Annual Financing Cost for 14 years (3% annual rate -if finance) $145,404
SCE Acquisition- LED $226,712
s
OPTION 4 I,
O E A�'D
Tanko Lighting ACQUISITION AND LED CONVERSION
• Tanko Lighting is a consultant that provides cities administrative and maintenance services
to acquire street lights. Clients include Santa Ana, West Hollywood, Signal Hill, and more.
• LED Conversion.
• Liability — City is liable for maintenance, repair and claims. Managed by Tanko Lighting.
• Increase "All Risk" premium $400 /year; however, subject to change due to claims.
Funding
Estimated SCE Rebate <137,750>
Annual Maintenance Charge to be provided by Tanko Lighting. $15,713
Estimated Annual Financing Cost for 14 years $145,404
(3% annual rate -if finance)
SCE Acquisition- LED $226,425
5
I
K05k AD
LED BENEFITS VS IMPACTS
Cost Savings (electricity and
maintenance)
Greenhouse Gas Emission Reduction
)w to Address Potential
Discomfort/glare
American Medical Association report that
says high - intensity LED streetlights emit
unseen blue light that can disturb sleep
rhythms and possibly increase the risk of
serious health conditions, including cancer
and cardiovascular disease and confuse
animals.
r and dimmer LEDs are preferable in residential areas.
ling will minimize glare and other impact to human and environmental
tached letter from our electrical consultant regarding Wall Street Journal
e (Attachment B).
0
OSE A�
If Council recommends option 4, the following methods
maybe used:
1. Sole Source - California ESCO sole source law allows a
municipality to avoid RFP when a project is related to energy
efficiency and is revenue neutral, or in this case revenue positive.
1. Example: Fullerton, CA, Morgan Hill, CA
2. Piggy Back — When a municipality utilizes another municipalities
RFP and cost estimate /valuation for professional services.
1. Options Include: Santa Ana, CA (2015), West Hollywood, CA
(2015), Signal Hill, CA (2016)
3. Request for Proposal (RFP)
ROM
OSE PZ
STAFF RECOMMENDATION
That the City Council provides direction regarding the following options:
1. Status Quo
2. SCE Conversion Program — LED Bulbs
3. SCE Acquisition an LED Conversion
4. Tanko Lighting Acquisition and LED Conversion
a