55A - RESO SCE STREET LIGHTS - Laserfiche WebLink

Home Browse Search

Resolution Related to Streetlight Acquisition and Upgrades Project April 3, 2018 Page 2 DISCUSSION The Santa Ana Public Works Agency (PWA) has worked diligently with Southern California Edison (SCE) for over two fiscal years to arrive at a successful arrangement which would allow the City to purchase SCE owned streetlights for the purpose of retrofitting them with Light Emitting Diode (LED) lights, and leverage the resulting energy savings to finance their acquisition, pay for streetlight upgrades, and improve lighting and related services to the community. As a result of those efforts, on April 4, 2017, City Council approved a Purchase and Sale agreement with SCE to acquire approximately 7,800 streetlights in Santa Ana contingent on the approval of the California Public Utilities Commission (CPUC) and the development and funding of a financing plan. The CPUC approved the Purchase and Sale agreement in November 2017 and only the finance plan remains to be approved. Adoption of the attached resolution (Exhibit 1) will authorize the necessary financing to complete the project based on the approved Purchase and Sale Agreement (Exhibit 2) for the streetlights. Staff recommends financing based on leveraging the savings from the use of energy efficient LED lamps that the City will purchase and install on the newly acquired streetlights. Approval to secure a loan followed by the use of loan proceeds to acquire the streetlights, and to purchase and install energy efficient LED lamps, must be considered concurrently. The streetlight upgrades are necessary so that the substantial energy savings of approximately $900,000 per year are available to cover the debt service costs. BACKGROUND SCE currently owns approximately 11,300 streetlights with High Pressure Sodium (HPS) light fixtures throughout the City of Santa Ana, of which approximately 7,800 have been made available for purchase. The City presently owns 3,500 streetlights throughout the City, which have been upgraded with energy efficient LED fixtures. Opportunity to purchase SCE's streetlights provides the City the capacity to meter and upgrade the streetlights from HPS light fixtures to energy efficient LED fixtures and leverage the substantial annual cost savings to finance the streetlight purchase, upgrade the streetlights, install streetlights in under lit areas, and evaluate the City for a Fiber -optic's and Wireless Network. Recommended Action 1 — Finance Plan As defined, the Streetlight project to acquire and upgrade the streetlights consists of the following items: 55A-2