Title
Approval of PSE Street Lighting LED Conversion Agreements
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve and authorize the City Manager to sign authorization documents necessary to complete the LED conversion project for PSE-owned street lights.
Report
Issue:
Whether to approve the authorization documents necessary to convert PSE-owned street lights to LED technology.
Staff Contact:
Mark Russell, P.E., Director of Transportation, Public Works Department, 360.753.8762
Presenter(s):
None - Consent Calendar Item
Background and Analysis:
There are approximately 1,300 street lights owned by Puget Sound Energy (PSE) throughout the City. Based upon the success of converting City-owned street lights to LED technology, Council recently approved year-end funds to convert the remaining PSE-owned street lights. PSE routinely performs this work for jurisdictions making a request. Their internal street lighting team, Intolight, would be doing the work and they project the conversion will be finished within a year.
The estimated cost to the City is $325,000. PSE only charges the difference in price between traditional fixtures and the more expensive LED fixtures because they cannot pass these costs onto all of their rate payers. The City's energy bill, as well as greenhouse gases, will be lower. This annual savings is approximately $60,000 per year, which pays for the improvements in about five years. The City will also qualify for an additional $50,000 PSE rebate after the work is finished.
To begin, PSE needs written authorization from the City. Attached are nine authorization letters for each phase of the project. Each phase represents a different section of the City. It is organized this way to help PSE manage the overall project. The authorization letters currently estimate the cost to be $313,289.64. The City has budgeted $325,000 for the total project. The additional funding will be used as a contingency for unexpected issues that might arise during construction.
Neighborhood/Community Interests (if known):
LED street lights save money and provide better quality lighting that improves the visibility and safety of pedestrians, bicyclists, and vehicles. To date, the City has converted approximately 3,200 street lights and the feedback from citizens has been positive. The few concerns received were related to light color or brightness. These issues were easily addressed by making minor adjustments to the light fixture.
Options:
1. Approve and authorize the City Manager to sign authorization documents necessary to complete the LED conversion project for PSE-owned street lights. Project proceeds as planned.
2. Do not approve the authorization documents. PSE-owned street lights will not be converted to LED technology at this time.
Financial Impact:
In May, Council approved ordinance 6901 which appropriated $325,000 in 2013 fund balance to the General Fund for this purpose. With tonight's related ordinance (second reading), the funds are appropriated from the General Fund to the Street Lighting Improvement Project.
Attachment:
City of Olympia LED Conversion