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Agreements with Powerlux Corporation, <br />for LED Streetlight Improvements <br />June 17, 2014 <br />Page 3 <br />Staff recommends awarding the contract to design and construct the street lighting upgrades to <br />California Professional Engineering, Inc., the lowest bidder, in an amount not to exceed $512,450. <br />Staff is also recommending purchasing the 231 post top LED streetlights needed for this project <br />directly from Powerlux Corporation, at a 30 percent savings, through an amendment to the existing <br />agreement in the amount of $78,506. The estimated total project cost is $610,956, which includes <br />a $20,000 contingency (Exhibit 2). <br />Modernizing these high - voltage circuits is a complex and costly undertaking. To supplement and <br />leverage City funds, staff has applied for the OBF financing successfully used in previous LED <br />replacement projects. Because of its energy efficiency components, this project is eligible and has <br />received preliminary SCE approval for funding totaling $202,349: $183,919 in OBF financing; and <br />$18,430 in energy efficiency cash incentives, a benefit of the City's participation in the SCE Energy <br />Leader Partnership. Due to the high cost of rewiring the North Park circuit, a ten -year payback <br />period is projected for the OBF- financed portion of the project cost. All SCE funding amounts are <br />preliminary estimates. Final SCE funding will be based on actual energy savings measured after <br />the project is completed. In anticipation of greater energy savings than expected, staff is <br />recommending recognizing up to $230,000 in SCE funding. Funding for the remaining $408,607 is <br />budgeted in the General Fund Street Lighting account (Exhibit 2). <br />Replacement of the incandescent lamps with energy- efficient LED streetlights will reduce the <br />City's estimated annual energy consumption by over 67,000 kWh. At the end of the OBF payback <br />period, this project is estimated to reduce General Fund energy costs by approximately $10,590 <br />annually. <br />ENVIRONMENTAL IMPACT <br />A Categorical Exemption (ER- 2014 -26) has been filed for this project. <br />FISCAL IMPACT <br />Loan proceeds received through the SCE On -Bill Financing Program will be deposited into the <br />SCE Energy Efficient Street Lighting revenue account (16217002- 57384) and appropriated into <br />the SCE Energy Efficient Street Lighting expenditure account (16217630- 62300). Funds for the <br />balance of the project are available in Account 01117630 - 66220. Loan repayments are available <br />in Account 01117630- 62000. <br />Edwin "William" Galvez, P.E. <br />Interim Executive Director <br />Public Works Agency <br />TITNA <br />APPROVED AS TO FUNDS AND ACCOUNTS: <br />Francisco Gutierrez {rr� <br />Executive Director <br />Finance & Management Services Agency <br />411W - <br />