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Exhibit A: Financial Analysis <br />Financial Analysis Information & Assumptions <br />This exhibit contains a financial evaluation for the acquisition of the streetlight infrastructure from Southern <br />California Edison (SCE) and the conversion of the infrastructure to light emitting diode (LED) technology. <br />The financial analysis demonstrates potential costs of full turnkey assistance, annual and twenty-year <br />savings, and return on investment (RCI). The turnkey costs include full design, project management, utility <br />coordination, material costs, and labor costs. <br />The following list of assumptions were made in the analysis: <br />1. Post -audit inventory <br />2. SCE -provided acquisition cost of $3,679,122, adjusted to incorporate extra poles to $3,895,693 <br />3. 2017 SCE LS -1, LS -2, and LS -3 rate structures <br />4. 2017 SCE rebate program, scheduled to expire January 2018 <br />5. Simplified watt -for -watt replacement of HIPS fixtures (does not include full system design) <br />6. Federal Inflation Rate: 4% <br />7. Utility Inflation Rate: 1% <br />8. Sales Tax Rate: 7.75% <br />9. 10 -year Fixture manufacturer warranty <br />10. Fixture Failure Rate: 1% <br />11. Photocell Failure Rate: 2% <br />12. Current market costs of installation and material for non -warranty replacements <br />13. Maintenance program costs estimated based on industry and local standards <br />14. Estimated Remote Monitoring System upfront and annual costs <br />15. Pole additions including materials foundation and labor: 150 poles at $5,000 <br />a. Includes poles added to address: <br />i. Under -lit areas (see Exhibit B) <br />ii. Knockdowns not covered by insurance <br />iii. Replacement of steel poles <br />Financial Analysis (enclosed) <br />1. Acquisition & Conversion <br />a. LS -1 standalone acquisition and LED conversion. <br />b. City -owned LED conversion (remaining HPS fixtures only). <br />c. Remote Monitoring System for all purchasable LS -1 and city owned LS -2 and LS -3. <br />d. Pole tagging for all purchasable LS -1 and city owned LS -2 and LS -3. <br />e. No costs associated with the 3,451 distribution/non-purchasable poles. <br />Acquisition Costs <br />$ 3,895,693 <br />Conversion Costs <br />$ 5,686,049 <br />Suggested 5% Contingency <br />$ 442,889 <br />TotalProjectCosts - <br />$10,024,631 <br />TankoLighting <br />www.tankoliehbngxom 1 220 BayshorerHA4rio, CA 94124 I P415.254.7579 I F415,822.3626 <br />