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Agreement with California Professional Engineering <br />for LED Streetlight Improvements <br />May 19, 2015 <br />Page 2 <br />Moving ahead with the second phase of project at this time is critical. The only remaining manufacturer of <br />the incandescent lamps used in these historic streetlights has stopped production and there are already a <br />few burnt -out lamps in the area. The City no longer has inventory in stock and there are no replacement <br />lamps available anywhere. Adding to this problem is the very nature of high - voltage systems of this age. <br />Installed in the early 1920s, these circuits are obsolete, making frequent lamp burn -outs a common <br />occurrence. The high - voltage system is also susceptible to surges which could burn out all lights in a <br />circuit. If such a surge were to occur, without replacement lamps, the City would be unable to restore <br />streetlight service to the entire area. <br />The contractor had already completed the first phase of the project and began conduit installation when <br />the original contract expired. Proceeding with a new contract will allow for the immediate resumption of <br />this project, ensuring continuous nighttime streetlights in this area of the City. Staff recommends awarding <br />a replacement agreement to CPE in the amount of $478,020 for the balance of the work, with an <br />expiration date of June 30, 2016, sufficient to guarantee completion of the project and allow for a <br />maintenance and warranty period before contract termination. (See Exhibit 3.) <br />Modernizing high - voltage circuits is complex and costly. Funding for the entire project is the same as <br />originally approved by City Council. Preliminary SCE funding approval includes $183,919 in On -Bill <br />Financing (OBF) and $18,430 in energy efficiency cash incentives; $408,607 is budgeted in the City's <br />General Fund Street Lighting account, for an estimated total project cost of $610,956 (see Exhibit 4). The <br />total project value delivered to date is $112,396. <br />Using energy - efficient LED streetlights as planned will reduce the City's estimated annual energy <br />consumption by over 67,000 kWh. At the end of the OBF payback period, this project is estimated to <br />reduce General Fund energy costs by approximately $10,590 annually, <br />STRATEGIC PLAN ALIGNMENT <br />Approval of this item supports the City's efforts to meet Goal #6 Community Facilities & Infrastructure, <br />Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy C (invest <br />resources and technology to extend the service life of existing infrastructure to protect the City's <br />investment and support a high quality of life standard). <br />ENVIRONMENTAL IMPACT <br />A Categorical Exemption (ER- 2014 -26) has been filed for this project <br />25B -4 <br />