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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />FEBRUARY 21, 2017 <br />TITLE: <br />RESOLUTION AUTHORIZING <br />SUBMISSION OF AN APPLICATION TO <br />CALIFORNIA PUBLIC UTILITIES <br />COMMISSION FOR ACQUISITION OF <br />THE STREETLIGHT SYSTEM FROM <br />SOUTHERN CALIFORNIA EDISON <br />(NON -GENERAL FUND) <br />(STRATEGIC PLAN NO. 6, 1C) <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 18' Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Adopt a resolution authorizing the Executive Director of the Public Works Agency to pursue California Public <br />Utilities Commission review and approval of an agreement for the acquisition of approximately 7,817 <br />streetlights by the City of Santa Ana from Southern California Edison. <br />DISCUSSION <br />Southern California Edison (SCE) altered its long-standing corporate policy with respect to the streetlight <br />system by making SCE -owned streetlights available for purchase by local governments. SCE currently <br />owns approximately 11,373 high pressure sodium streetlights throughout the City of Santa Ana, of which <br />approximately 7,817 have been made available for purchase. <br />Council approval of the recommended Resolution (Exhibit 1) is needed so that the California Public Utilities <br />Commission (CPUC) will begin review of the Purchase and Sale and the License Agreements. Upon CPUC <br />review and approval which is anticipated to take four to six months, the City Council would then have the <br />option to pursue the street light system purchase. <br />After submission of the agreements to the CPUC, staff will publish a Request for Proposals to engage a <br />financial advisor to examine available financial programs to fund the purchase and retrofitting of the <br />acquired streetlight system. Upon approval of the agreements by the CPUC, the financial model and <br />options would be presented to Council for further consideration and direction. The City would not be <br />committed to the purchase until the terms of the agreements are finalized, the CPUC approves the <br />transaction, and the City Council approves the final Purchase and Sale Agreement and its financing <br />package. <br />The energy and maintenance costs are anticipated to be substantially lower by approximately $900,000 <br />per year. These savings will be leveraged to finance the acquisition. <br />55A-1 <br />