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Agreement with California Professional Engineering for LED Streetlight Improvements May 19, 2015 Page 2 Moving ahead with the second phase of project at this time is critical. The only remaining manufacturer of the incandescent lamps used in these historic streetlights has stopped production and there are already a few burnt -out lamps in the area. The City no longer has inventory in stock and there are no replacement lamps available anywhere. Adding to this problem is the very nature of high - voltage systems of this age. Installed in the early 1920s, these circuits are obsolete, making frequent lamp burn -outs a common occurrence. The high - voltage system is also susceptible to surges which could burn out all lights in a circuit. If such a surge were to occur, without replacement lamps, the City would be unable to restore streetlight service to the entire area. The contractor had already completed the first phase of the project and began conduit installation when the original contract expired. Proceeding with a new contract will allow for the immediate resumption of this project, ensuring continuous nighttime streetlights in this area of the City. Staff recommends awarding a replacement agreement to CPE in the amount of $478,020 for the balance of the work, with an expiration date of June 30, 2016, sufficient to guarantee completion of the project and allow for a maintenance and warranty period before contract termination. (See Exhibit 3.) Modernizing high - voltage circuits is complex and costly. Funding for the entire project is the same as originally approved by City Council. Preliminary SCE funding approval includes $183,919 in On -Bill Financing (OBF) and $18,430 in energy efficiency cash incentives; $408,607 is budgeted in the City's General Fund Street Lighting account, for an estimated total project cost of $610,956 (see Exhibit 4). The total project value delivered to date is $112,396. Using energy- efficient LED streetlights as planned will reduce the City's estimated annual energy consumption by over 67,000 kWh. At the end of the OBF payback period, this project is estimated to reduce General Fund energy costs by approximately $10,590 annually. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy C (invest resources and technology to extend the service life of existing infrastructure to protect the City's investment and support a high quality of life standard). ENVIRONMENTAL IMPACT A Categorical Exemption (ER- 2014 -26) has been filed for this project. 2501-2