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K3 <br />Santa Ana, CA <br />Streetlight Purchase Feasibility Study <br />Project Background <br />The City of Santa Ana contracted with Tanko Lighting to complete a full audit of the City's streetlight system <br />and to reconcile what was found in the field with the data provided by the utility, Southern California Edison <br />(SCE). Tanko Lighting then analyzed the data, based on SCE's parameters, to determine which poles should <br />be available to the City for purchase. SCE's parameters, as Tanko Lighting understands them, are that the <br />pole must be a standalone/non-utility pole. <br />This report explains discrepancies between Tanko Lighting and SCE's findings and provides updated <br />quantities and predicted prices of purchasable poles. Exhibit A: Financial Analyses provides a further <br />explanation of costs and addresses various options that the City would like to consider. It is important to <br />note that these are preliminary quantities and financial models, they will be further refined after the full <br />ownership review, data reconciliation and design process have been completed. <br />Summary & Explanation of Findings <br />The results of Tanko Lighting's audit can be found below in Table 1. Audit Results. <br />Table 1.,Audit Results <br />SCE'Discrepancies <br />Category <br />Qty <br />LS -1 for Purchase <br />8,093 <br />LS -1 not for Purchase <br />3,451 <br />Total SCE -owned <br />11,544 <br />City Owned Lights: LS -2, LS -3 <br />3,399 <br />Total Streetlight Fixtures <br />14,943 <br />The results of the audit were then compared to SCE's LS -1 inventory. Table 2. SCE Discrepancies is a <br />summary of discrepancies found between the two sets of data (based off of SCE's Valuation provided on <br />9/29/15). <br />Table 2, <br />SCE'Discrepancies <br />Category <br />SCE Qty <br />I Tanko Qty <br />LS -1 for Purchase <br />7,817 <br />8,093 <br />LS -1 not for Purchase <br />3,556 <br />3,451 <br />Total LS-1Inventory <br />11,373 <br />11,544 <br />Updated Valuation/Pricing <br />Table 3, below, outlines an updated valuation of Santa Ana's streetlight system based on Tanko Lighting's <br />results. Please note that this is estimated from SCE's original valuation completed on September 29, 2015. <br />OR 41 <br />TankoLighting <br />www.tankolighting.com 1220 eayshor66A43o, CA 94124 1 P415.254.7579 I F415.822.3626 <br />