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HomeMy Public PortalAbout10) 7F Approval of LED Fixture Replacement Agreement with SoCal EdisonAGENDA ITEM 7.F. COMMUNITY DEVELOPMENT DEPARTMENT MEMORANDUM DATE: July 3 , 2018 TO: The Honorable City Council FROM: Bryan Cook, City Manager Via: Michael D. Forbes, Community Development Director By: Ashley Avery, Management Analyst SUBJECT: APPROVAL OF ENERGY EFFICIENT LIGHT EMITTING DIODE (LED) FIXTURE REPLACEMENT AGREEMENT WITH SOUTHERN CALIFORNIA EDISON, LS-1 OPTION E RECOMMENDATION: The City Council is requested to: 1. Approve the Energy Efficient Light Emitting Diode (LED) Fixture Replacement Agreement with Southern California Edison (SCE), LS -1 Option E (Attachment "A") to convert existing High Pressure Sodium (HPS) streetlight f ixtures to LED and approve Color Temperature Specification (Attachment "B") to select 3000K LED fixtures; and 2. Authorize the City Manager to sign the LS-1 Option E agreement, Color Temperature Specification form and execute the LS-1 Option E program with SCE. BACKGROUND: 1. In 2013, Assembly Bill (AB) 719 was passed by the State of California . The intent of AB 719 is to have electrical corporation owned streetlights , whose electricity use is paid by local governments, be converted to use cost-effective technology that will reduce electricity consumption and lead to lower utility bills for these local governments . 2 . In September, 2017 , SCE staff provided the City with information about SCE 's "Option E" program , which was developed in response to AB 719 . Option E provides an opportunity to replace HPS fixtures with more efficient LED fixtures on streetlights City Council July 3, 2018 Page 2 of 5 owned by SCE with electricity paid for by cities (referred to as LS -1 lights). The resulting electric cost savings is used to finance the fixture replacement over a 20- year period. 3. On May 1, 2018 , City Council directed staff to bring the LS -1 Option E, Energy Efficient LED Fixture Replacement Rate Agreement with SCE back for City Council approval and elected to use 3000K LED streetlights. ANALYSIS: HPS streetlights were first introduced around 1970 and quickly became a popular street lighting solution due to it being more energy efficient than other light alternatives available at the time. However, today LED lighting fixtures are more cost effective and consume less energy than HPS ; as a 30W LED bulb produces the same lumens (brightness) as an BOW HPS bulb. LED fixtures also have a much longer service lifespan of 11.5 years on average compared to 3 years for HPS fixtures. LED fixtures can display both warm and cool white light depending upon the color temperature (CT) of the bulb selected . CT denotes spectral content or how much blue, green , yellow, and red is present in the light and is measured in Kelvin (K). The higher the CT, the greater the blue content and the whiter the light appears . HPS lights have a CT of about 2200K and contain more red and yellow giving the light a "warm" appearance , while lights that have a CT of 5000K contain high amounts of blue and give the light a "cool" appea rance. SCE has LED lighting available in CT 3000K and 4000K. Streetlights using 3000K lamps produce a warmer white light while those using 4000K produce a slightly cooler neutral white light. LED lighting can sometimes change the overall nighttime look and feel of a city . Cities often consider multiple perspectives when deciding which LED CT is most appropriate for the needs of the city and its residents . Some cities choose 3000K bulbs to maintain a "small town" feel, while others choose 4000K bulbs to match the cities' more "modern " aesthetic. However, many cities in California have opted to use both, using the warmer 3000K lights along residential streets and the cooler 4000K lights on main roads and busy intersections . The only LED streetlights in Temple City are Rosemead Boulevard's pedestrian level sidewalk lights , which are LED lamps with a CT of 3000K. As is common with implementing new technology, there have been some public concerns about the wide spread usage of LED lighting. LEOs produce blue light that is similar to daylight. Two major research studies conducted by UC Davis and NYU, found that exposure to blue light at night may interfere with hormone production and make it difficult for people to sleep . Although there are no conclusive studies, there are also concerns that blue light exposure at night may also affect the behavioral patterns of nearby plants and animals, such as birds being active at night or flowering plants blooming too early. City Council July 3, 2018 Page 3 of 5 In late 2016 the American Medical Association (AMA) released a report recommending that outdoor lighting have a CT no greater than 3000K to mitigate certain sleep related health issues. Some lighting engineers, while not disputing the research findings, disagree with the conclusion of the AMA recommendation and believe the aforementioned research had confounding variables . These engineers believe the issue is caused by poorly designed fixtures that allow light to infiltrate into residences instead of being directed at the street. SCE staff have stated that the LED fixtures direct light toward the street with minimal spillover to nearby properties . Cities that have already updated their streetlights with LED fixtures have received mixed reception from the public. Fremont, CA had positive responses from residents, reporting that it made the streets feel safer. However Davis, CA received a large number of complaints from residents reporting that 4000K lights were too bright, eventually leading the city to replace the 4000K lights with warmer 2700K. Locally Rosemead, CA utilized Option E in 2017, to update its light fixtures with 4000K lights. According to Rosemead Public Works staff, the LED fixtures were well received and there have been no complaints from residents . Staff is recommending that Temple City go forward with this program due to energy efficiency and increased service life of LED fixtures, and the resulting cost savings. Given the real and perceived concerns about overexposure to blue light at night, staff recommends that the City request fixtures with aCT of 3000K to provide a warmer light. Some cities have opted to install 4000K fixtures on major or non-residential streets . However, Temple City's major non-residential streets, Rosemead Boulevard and Las Tunas Drive , are lighted primarily with City-owned streetlights that would not be converted under this program. Also as noted above, the pedestrian level lights on Rosemead Boulevard already use LED fixtures with a CT of 3000K. In November of 2017, the Facilities, Infrastructure , and Public Works Committee discussed Option E and had the following questions about SCE's Option E program . Responses are listed underneath each question: 1. Does SCE have a program or schedule for replacing existing lamps (HPS or LED)? SCE typically replaces lamps when they burn out, but the replacements are done on a "like for like" basis. HPS lamps are replaced with new HPS lamps and are not changed out to LED. LED lamps are installed only through the Option E program. 2 . What cities have already used Option E? Local cities that have used Option E include Rosemead, Baldwin Park, Covina, La Palma, and Fontana. 3. Can the city choose from different brightness and light throw options, or just CT? City Council July 3, 2018 Page 4 of 5 SCE only offers the 3000K and 4000K color temperatures . A representative of SCE stated that the LED lights have very good coverage toward the street, with minimal wash back towards homes or windows. 4. Can the current HPS be replaced with an LED that has a lower lumens? Yes, since LED lights generate a whiter light and distribute light differently than HPS , an LED with lower lumens can provide s imilar illumination to an HPS with higher lumens. 5 . What would be the total annual savings as a percentage of the total electric bill? Based on an analysis conducted by SCE using FY 2016-17 rates, the estimated savings during the 20-year repayment period is $6,565 per year or about three percent of the streetlight electric bill. After the 20-year repayment period, the estimated annual savings is $29,919.28 per year, about 15 percent of the bill. A nnua lA moun t Et" tdA s 1ma e nnua IS . av1ngs Actual LS-1 Total $191 ,862.90 - (FY16-17) Proje cted LS -1 Total $185,298 .00 3% or $6 ,565.00 (during repayment) Projected LS-1 Total $161 ,943 .62 15 % or $29,919.28 (after repayment) On May 1, 2018, City Council directed staff to proceed with the LS-1 Option E Agreement and elected to use LED fi xtures with CT 3000K. SCE has provided the LS-1 Option E Agreement and the Color Temperature Specification form for approval. Once the agreement is executed, SCE will place Temple City in the queue for LED streetlight replacement. The replacement schedules of cities that have already joined the Option E program, will determine the schedule for when LED replacement will begin on LS-1 streetl ights in Temple City . CITY STRATEGIC GOALS: Updating the LS-1 streetl ights in Temple City from HPS lights to LED lighting is consistent with the City Strategic Goals of Good Governance, Public Health and Safety, Quality of Life, and Sustainable Infrastructure . City Council July 3, 2018 Page 5 of 5 FISCAL IMPACT: SCE's conve rsion program is funded by an LED Fi xture Replacement fee , which is amortized over a 20-year period and added to the City's electric bill . Since the electric cost of LEOs is lower than HPS fixtures, the electric bill will still be lower than the current bill , resulting in a net savings to the City. Based on estimates prepared by SCE , if all HPS fixtures are replaced with LED, Temple City is estimated to save $6,565.00 annually during the 20 year repayment period , and save $29,919 .28 annually once the replacement cost is fully amortized. ATTACHMENTS: A. Energy Efficiency-Light Emitting Diode (LED) Fixture Replacement Rate Agreement Schedule LS-1 Option E B. Color Temperature Specification Form ATTACHMENT A ~UVIIIlH ~ <."WUifNt \ EDISON Southern California Edison Original Cal. PUC Sheet No. 57074-E Rosemead, California (U 338 -E) Cancelling Cal. PUC Sheet No. Sheet 1 SCHEDULE LS-1 OPTION E, ENERGY EFFICIENCY-LIGHT EMITTING DIODE (LED) FIXTURE REPLACEMENT RATE AGREEMENT (To be inserted by utility) Advice 3241 -E Decision -1:-4,----1-;-;0,.----0c;c-4-;-;:6:------- 1P8 Form 14-965 Issued by R.O. Nichols Senior Vice President (To be inserted by Cal. PUC) Date Filed Jun 30, 2015 Effective Jun 1, 2016 Resolution SOUTHERN CALIFORNIA EDISON COMPANY SCHEDULE LS-1 OPTION E, ENERGY EFFICIENCY -LIGHT EMITTING DIODE (LED) FIXTURE REPLACEMENT RATE AGREEMENT This Schedule LS-1 Option E, Energy Efficiency-Light Emitting Diode (LED) Fixture Replacement Rate Agreement (Agreement), effective this day of _____ (Effective Date), is entered into between Southern California Edison Company (SCE) and , an SCE customer taking service on Schedule LS -1 (Applicant), referred to collectively as "Parties," and individually as "Party." This Agreement provides for SCE , at Applicant's request, to replace the existing street lighting fi xtures serving Applicant's premises with Light Emitting Diode (LED) street lighting fi xtures to achieve energy efficiency benefits for Applicant , as set forth in Special Condition 14 , Option E, Energy Efficiency-Light Emitting Diode (LED) Fi xture Replacement, of Schedule LS-1 . The Parties agree as follows: 1 . LED FIXTURES SCE shall install, own , operate, and maintain LED Fi xtures for Applicant as set forth in Exhibit "A" attached hereto and incorporated herein by this reference. The LED Fixtures provided hereunder shall at all times remain the property of SCE. 2. LED FIXTURE REPLACEMENT COSTS 2.1 The repla ce ment costs of the LED Fixtures provided hereunder shall be borne by Applicant. 2.2 Applicant shall pay the charge for the LED Fixtures Repla ce ment rate, which includes an Energy Efficiency Premium Charge (EEPC) and a Base LED Charge , under Option E of Schedule LS -1. Applicant elects Option E in lieu of an upfront, one-time payment of the replacement costs . 2.3 SCE does not guarantee that any energy or bill savings will accrue to Applicant as a result of the LED Fi xture replacements . 3. COMMENCEMENT OF SERVICE The Parties agree that SCE has the right to charge Applicant, and Applicant has an obligation to pay SCE, for the charges set forth in Schedule LS-1, Option E, commencing on the date SCE begins serving the LED Fi xtures installed pursuant to this Agreement. 4. TERM AND TERMINATION 4.1 This Agreement shall be effective as of the Effective Date and shall continue for a term of twenty (20) years from the commencement of service as specified in Section 3 above (Term). 4.2 Applicant may terminate this Agreement at any time during the Term upon a thirty (30) - day advance written notice, provided that Applicant, prior to or within the 30-day advance notice period, assigns the Agreement to any New Party In (NPI) that owns, rents or leases the premises served by the street lighting fi xtures replaced under this Agreement and will take service under Option E of Schedule LS -1 effective as of the date of termination ; otherwise, Applicant shall pay a one-time termination charge equal to the present value of the balance of the EEPC of Option E over the remaining Term . The present value is determined based on SCE's authorized rate of return on rate base, or discounted rate of 7.90%. Form 14 -965 06/2016 SOUTHERN CALIFORNIA EDISON COMPANY SCHEDULE LS-1 OPTION E, ENERGY EFFICIENCY-LIGHT EMITTING DIODE (LED) FIXTURE REPLACEMENT RATE AGREEMENT 5. AMENDMENTS; ASSIGNMENTS 5.1 Any changes o r amendments to this Agreement must be in writing and must be executed by the Applicant and SCE and , if required , be approved by the California Public Utilities Commission (Commission). 5.2 Applicant shall not assign this Agreement without the prior written consent of SCE; provided , however, that Applicant may assign the Agreement pursuant to the terms and conditions of Section 4.2 above, and the NPI must assume all rights and obligations under this Agreement for the remaining Term. Any assignment and assumption shall be in a form acceptable to SCE . 6. NOTICE Any notice either Applicant or SCE may wish to provide the other regarding this Agreement must be in writing . Such notice must be either hand-delivered or sent by U.S. certified or registered mail , postage prepaid, to the person designated to receive notice for the other Party below , or to such other address as either may designate by written notice . Notices delivered by hand shall be deemed effective when delivered . Notices delivered by mail shall be deemed effective when received , as acknowledged by the receipt of the certified or registered mailing. Applicant: (Name) (Title) (Address) (City, State, Zip) 7. NONWAIVER SCE : Business Customer Division Southern California Edison Company 2244 Walnut Grove Avenue Rosemead , CA 91770 The failure of either Party to enforce any of the terms and conditions or to exercise any right or privilege in this Agreement shall not be construed as a waiver of any such term and conditions or rights or pr ivileges , and the same shall continue and remain enforce and effect as if no such failure to enforce or exercise had occurred . 8. SEVERABILITY In the event that any of the provisions , or portions thereof, of this Agreement are held to be unenforceable or invalid by the Commission, or any court of competent jurisdiction, the validity and enforceability of the remaining provisions or any portion thereof shall not be affected. 9. APPLICABLE LAWS, RULES, AND REGULATIONS This Agreement shall be subject to, and interpreted under the laws, rules, decisions and regulations of the State of California, without regard to its conflict of laws principles , the Commission, and SCE's Comm ission-approved tariffs . Form 14-965 06 /2016 2 SOUTHERN CALIFORNIA EDISON COMPANY SCHEDULE LS-1 OPTION E, ENERGY EFFICIENCY-LIGHT EMITTING DIODE (LED) FIXTURE REPLACEMENT RATE AGREEMENT 10. CALIFORNIA PUBLIC UTILITIES COMMISSION JURISDICTION 10 .1 This is a filed form tariff agreement authorized by the Commission for use by SCE. No officer, inspector, solicitor, agent or employee of SCE has any authority to waive , alter, or amend any part of this Agreement except as provided herein or authorized by the Commission . This Agreement is to be used in conjunction with Schedule LS-1 and supplements the terms and conditions of the Applicant's ele ctric service under Schedule LS-1. 10.2 This Agreement shall at all times be s ubject to such changes or modifications by the Commission as said Commission may, from time to time, direct in the exercise of its jurisdiction . 10.3 Notwithstanding any other provisions of this Agreement , SCE has the right to unilaterally file with the Commission , pursuant to the Commission's rules and regulations, an application for change in rates , charges, classification , service, or rule or any agreement relating thereto . 11. ENTIRE AGREEMENT This Agreement , including SCE 's Commission-approved tariffs, constitutes the complete agreement and understanding between the Applicant and SCE regarding the LED Fi xtures replacement costs . Prior agreements , representations , understandings, whether expressed or implied, and communications , oral or written, between the Applicant and SCE shall not be construed to be a part of this Agreement. 12. AUTHORIZATION SIGNATURE In witness whereof, the Parties hereto have caused this Agreement to be signed by their duly authorized representatives. APPLICANT BY: NAME: TITLE: DATE SIGNED : SOUTHERN CALIFORNIA EDISON COMPANY BY: NAME: TITLE: DATE SIGNED: Fo rm 14-965 06 /2016 3 SOUTHERN CALIFORNIA EDISON COMPANY EXHIBIT "A" SCHEDULE LS -1 OPTION E, ENERGY EFFICIENCY-LIGHT EMITTING DIODE (LED) FIXTURE REPLACEMENT APPLICANT CUSTOMER ACCOUNT NO. SERVICE ACCOUNT NO. (Additional account numbers/addresses may be attached hereto.) SERVICE ADDRESS APPLICANT REQUESTED READY TO SERVE DATE SCEREADYTOSERVEDATE ________________________________________ _ DESCRIPTION OF LED FIXTURES/SCOPE OF WORK: SPECIFY HOW MANY STREET LIGHTING FIXTURE REPLACEMENTS ARE BEING REQUESTED AND AGREED TO UNDER THIS AGREEMENT AND OTHER RELEVANT DETAILS. W .O . No(s ): ----------------------------------------------------- Form 14-965 06/201 6 4 ATTACHMENT B Southern California Edison LS-1 Option E Color Temperature Specification At present, Southern California Edison is using current generation General Electric (GE) Evolve LED street light fixtures for LED replacements under the LS-1 Option E program. GE LED fixtures allow for a choice between color temperatures of either 4000 Kelvin degrees (4000k) or 3000 Kelvin degrees (3000k) at the customer's discretion. Please check the box below and sign to signify your preference for either 3000k or 4000k color temperature lights. Thank you. 3000k color temperature lights are considered "warm white" and will have more yellow and amber tones that are consistent with today's existing High Pressure Sodium street lights. 4000k color temperature lights are between warm and cool on the spectrum and will provide a "whiter" appearing light without crossing into the bluer spectrum. Please check your choice of 3000k or 4000k ___ 3000K __ 4000k Local Government or Customer:------------------------- Printed Name of Authorized Signer:------------------------ Signature: ______________ Date: _______________ _