HomeMy WebLinkAbout12-04-2012 ph 2 street light efficiency project7 counci lacenOa nepont
Mead,Date
12-4-12
Item NumbeeH 2
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C I T Y O F S A N L U I S O B I S P O
FROM :
Carrie Mattingly, Interim Director of Public Work s
Prepared By :Barbara Lynch, Deputy Director of Public Works
SUBJECT :STREET LIGHT ENERGY EFFICIENCY PROJEC T
RECOMMENDATIO N
1.Approve a resolution for an application to receive a California Energy Commission one percen t
loan for conversion of street lighting to energy efficient fixtures and authorize the City Manage r
to execute associated documents .
2.Authorize the Mayor to execute an amendment to the City's existing PG&E agreement t o
provide turnkey services for the street light conversion upon approval of a California Energ y
Commission loan .
REPORT-IN-BRIEF
The City owns and maintains 2,263 streets which use high pressure sodium fixtures . Light emittin g
• diode fixtures are now readily available and tested, and take considerably less energy . The City ha s
an opportunity to partner with the California Energy Commission and PG&E, to accomplish a
complete change out of the overhead street lights to lower energy-use fixtures, and realize an annua l
cost savings through lower per fixture rates . The work would be accomplished by obtaining a on e
percent energy loan from the Commission, and having PG&E complete the change out through a
contractor . The City will reimburse PG&E for its work, and the annual cost savings will then b e
used to repay the loan.
DISCUSSION
Light Emitting Diode Technology — Traffic Signals and Street Light s
In the early 1990s the City was an early adopter of light emitting diode (better known as LED )
technology and converted all of its red traffic signal indicators to LED to save energy . At the time ,
the technology was not available for green and yellow indicators . Today, all vehicle and pedestria n
signals are available in LED and are specified exclusively for new installations in the City . Almost
all existing traffic signal indicators have been replaced with LED .
In its development stages, LED street light technology was met with varying degrees of communit y
acceptance when installed . This technology has been continuously tested and improved over tim e
and has entered the mainstream as the best overall solution for community lighting . Today's LED
street light lasts longer than traditional high pressure sodium (HPS)lighting currently installe d
throughout the City . The LED light increases clarity and color distinction for the viewer . The LE D
light head has the ability to direct light down as opposed to the HPS fixtures that allow light to spil l
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all around the head . LED technology reduces energy consumption thereby reducing energy costs .
PH2-1
Street Light Energy Efficiency Project Page 2
•Converting to LED Street Light s
Maintaining the City's network of 2,263 street lights is important to community safety and qualit y
of life . It is also resource intensive . In a spirit of continuous improvement, recognizing the positiv e
attributes of LED street lighting, and through its partnership with PG&E, staff began exploring th e
possibility of converting the City's street lights to LED .
A small pilot test of LED street light heads from various manufacturers have been installed in orde r
to observe the appearance of the light and to give staff a chance to test the ease of installation an d
maintenance . The appearance of LED lighting is different from the traditional HPS lighting .
Standing at Chorro and Palm streets and looking toward City Hall, a viewer can see a strikin g
difference between traditional lighting (south side of Palm Street at the surface parking lot) an d
LED lights (north side of Palm Street at City Hall). The fixture at the northeast corner of Palm an d
Morro streets (Palm Street at the Little Theater) is a favorite of the maintenance personnel for it s
flexibility and light weight .
Reaching for the Triple Bottom Lin e
Incorporating the triple bottom line, which considers social, environmental, and economic aspect s
of a project provides for a balanced approach to decision-making aligned wit h
Council goals and policies .
Economic .The City spends just over $150,000 each year on electricity t o
power up its 2,263 street lights, most of which are the traditional hig h
pressure sodium (HPS) type heads . Converting the overhead street ligh t
system to LED technology will, according to calculations done b y
PG&E, reduce the City's electric bill by about two-thirds, an amoun t
equal to about $100,000, although this amount will go toward projec t
payments initially . Longer bulb life (about 20 years) as compared to HPS at
less than 10 years, translates to less staff time spent on changing out stree t
lights .
Environmental.Converting to LED street lights will reduce energy use by almos t
780,000 kilowatt hours annually and reduce the City's carbon dioxide emissions by over 400,00 0
pounds annually thereby reducing its overall carbon footprint . LED lighting contains no mercury .
Longer bulb life creates less waste . The ability for the LED head to direct light down reduces light
pollution . The City's adopted Climate Action Plan includes an action item to replace streetlight s
with high efficiency fixtures, like LED lighting .
Social.LED lighting provides better color distinction and clarity for the viewer . This may be o f
benefit to the police in night time patrol and response . Increasing the reliability of the street light s
increases community safety and quality of life .
GO 4 .2 Replace public streetlights with high-efficiency fixtures .•
PH2-2
Street Light Energy Efficiency Project Page 3
•Converting the overhead street light system to LED is supported by the City's Climate Action Pla n
and complies with its Night Sky ordinance . The project is aligned with the Council's neighborhoo d
wellness and fiscal health and sustainability goals .
California Energy Commission Loa n
The California Energy Commission (CEC) administers a loan program for energy efficienc y
projects . In October of 2012, the program's interest rate dropped from three to one percent . Th e
recent interest rate drop was the impetus needed for the City to seriously consider investing in thi s
•energy saving technology on a large scale now . The conversion of the street lights to LED i s
anticipated to cost a little more than $1 .1 million (Attachment 1).
A draft application has been provided to the CEC to confirm the City will be eligible for a on e
percent interest loan should the Council approve making an application . To qualify for a CEC loan ,
the project must have a payback level acceptable to the CEC, which, according to CEC, the City's
project has .
The CEC requires the Council adopt a resolution to support the loan application (Attachment 2).
The resolution allows for the maximum amount the CEC will loan based on the energy savings (13 x
$99,537 estimated savings) although the project is currently estimated to cost slightly less than that .
The City will only use the amount of the loan necessary to complete the work . That amount will be
determined once PG & E receives the actual quotations from its contractor for the conversion . The
loan will then be repaid using the annual energy savings from the conversion of the street lights to a
lower billing rate . The CEC is prepared to review the City's application at its December 12, 201 2
meeting if the Council approves the resolution .
The CEC also looks for the agency to invest in lighting technology that can accept remote control s
for time-of-day control, and motion sensing operation . The fixtures specified for this project will b e
"controls-ready" allowing the City to capitalize on additional controls when they becom e
commercially viable . While control technologies are still in the toddler phase, the next five year s
should see significant strides in this area . Implementation of these types of controls would allow th e
•City to reduce its energy consumption even further, in the future, while still maintaining ful l
lighting when needed . A future project of this type would come to Council for approval prior t o
implementation .
PH2-3
Reduct i
408,050 pound sergy
Savings 778,710
kilowatt hours
First Year Energ y
Cost Savin g
$99,700
Street Light Energy Efficiency Project Page 4
•PG&E Turnkey Replacement Progra m
The PG&E Turnkey program allows for a streamlined solution to implementing energy
conservation projects . The goal of the program is to implement energy saving projects at facilitie s
and use the money saved from reduced energy consumption and operational maintenance costs t o
pay the debt service for the design and construction of the project . The program does not provid e
for the addition of new fixtures .
The program has the flexibility to allow participants to finance the entire project by this method o r
to pay for part of it out of existing funds and finance the remainder . The City is currently engaged i n
the financing phase of an energy efficiency project at the Water Reclamation Facility under th e
PG&E Turnkey program, which the Council approved in January 2012 .
The program is divided into four phases as shown below . The first two phases of the program ar e
provided at no cost to the participant . After each phase, participants determine if the program meet s
the organization's objectives and a decision is made on whether to continue to the next phase . Th e
City is responsible to apply for, and obtain the loan . There is no direct cost, only staff time require d
to do this .PG&E is providing necessary documents to support the loan application, and will prepar e
the paperwork to convert all the fixtures to a new billing rate, and process PG&E rebates, currentl y
estimated at $162,275 . The rebate funding will be applied to the purchase of the fixtures to reduc e
the overall project cost .PG&E handles all project construction tasks, including obtaining low bi d
contractors, obtaining and disposing of fixtures, construction oversight, and warranty of the work .
The work is anticipated to take about four months from start to finish, based on PG&E's experience
with past projects .•
•Team discus s
progra m
•City shares all stree t
light informatio n
•PG&E prepare s
feasibility base d
estimated use
•Review feasibilit y
•PHASE COMPLETE
•Street light inventory •City obtains CEC loa n
completed -no cost to fundin g
City •PG&E and City ente r
•City reviews and into agreemen t
verifies inventory
•PG&E confirm s
feasibility •YOU ARE HER E
•Billing reconcile d
with inventory
•Replacement fixture s
identifie d
•PHASE COMPLETE
•Community outreac h
& notification pla n
•PG&E prepare s
detailed workscope
for biddin g
•PG&E obtains bid s
•PG&E review bid s
and confir m
contractor selectio n
•PG&E finalizes energ y
savings versus projec t
cost for CEC loa n
•Complete conversio n
•PG&E provides GI S
record of system
•1.Alternative Procurement Process for Energy Services - A Public/Private Partnershi p
There are advantages to partnering with PG&E for an energy efficiency project . As the City's loca l
energy provider, it has access to all relevant billing rate structure information and availabl e
incentives .PG&E plays a large role in San Luis Obispo County and the local economy and i s
aiming to find creative ways to work together to support the community . Its long standing presenc e
PH2-4
Street Light Energy Efficiency Project Page 5
•in the community allows for increased assurances in any partnerships formed . PG&E benefits fro m
these projects by being able to add renewable/sustainable projects to its energy portfolio whic h
defers the expense of building future electricity sources .
Participation in the Turnkey Program would involve the City executing an agreement with PG&E t o
convert the street lights, and complete paperwork for billing and rebates . PG&E would then develo p
the project, contract for and oversee the work in cooperation with the City, and assist the City i n
providing final information for the funding . PG&E will carry the entire expense of the project unti l
the City receives the funds from the CEC .
The proposed agreement with PG&E is atypical of the City's usual contracting procedures whic h
are defined in the City's Charter in Article IX and the City's Purchasing Ordinance (Chapter 3 .24 o f
the Municipal Code). In a typical scenario, the City would identify a project and solicit proposal s
for the design of that project, then award a construction contract to the lowest responsible bidder .
Both the California Government Code Section 4217 and Section 3 .24 .060 .0 of the Municipal Cod e
allow the City to forgo standard procurement processes for energy services if it finds it best serve s
the City interest (Attachment 3). Furthermore, because the product and service is offered by th e
City's energy provider to its customers as a means by which to reduce energy consumption and i s
part of a program and contract for the purchase of electrical energy, the associated project cost s
would fall within the definition of energy purchases exempt from competitive bidding under Articl e
IX, Section 907 . Based on the cost and payback period on investment and the long term benefit t o
the City in reduced energy use and costs, it is recommended the City Council adopt findings t o
•support the continued participation in the Turnkey Program .
Included in this report is a proposed resolution and service agreement that supports energ y
efficiency and energy upgrades utilizing the procurement process allowed by Californi a
Government Code 4217 (Attachment 4).
2.Efforts to Date
PG&E has met with City representatives and conducted an inventory of the street light system . The
institutional knowledge of City staff in the Signal Maintenance program greatly aided the PG&E
staff completing the work . Working together, the inventory was refined and finalized . This ha s
allowed PG&E to provide a highly accurate assessment of the City's potential energy savings .
Future Energy Saving Opportunitie s
Solar street lighting technology is becoming more available and may be an option for the City's
street light energy needs in the future . Additional understanding is needed of the implications of th e
street lights providing power to the grid, including equipment and maintenance needs to do so, an d
the metering information and tariff for the utility company .
Preliminary research on solar options shows that conversion of the fixture to LED is part of th e
work to reduce energy demands . That means the currently proposed conversion is not a waste d
effort if the City opts to invest in solar technology in the future . Solar collecting occurs eithe r
through the pole, or a panel affixed to the pole, with power flowing onto the grid during the day ,
•and drawn from the grid at night to light the fixture . For lights not connected to the grid, batterie s
are used to store power at the light location .
PH2-5
Street Light Energy Efficiency Project Page 6
•Although preliminary information is being acquired on solar systems, a recommendation fo r
implementation is not ready . If the City is interested in pursuing the LED conversion with a on e
percent loan, it should pursue the opportunity at this time .
CONCURRENCE S
The Public Works Department has concluded that the project is exempt pursuant to section 15301 o f
the California Environmental Quality Act, and has received a Notice of Exemption fro m
Community Development . Section 15301 provides an exemption for a project that consist of th e
operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing publi c
or private structures, facilities, mechanical equipment or topographical features . The project
consists of the conversion of 2,263 existing street lights from HPS to LED lights and is consisten t
with this exemption, as it the operation and maintenance of existing public structures and does no t
include the expansion of use beyond those structures currently existing .
The street light conversion is supported by Community Development Department . The Communit y
Development Director has determined that the transition from HPS to LED lights is aestheticall y
insignificant and therefore exempt from ARC review 2 . LED light is more aligned with th e
sensitivity of the human eye and fewer lumens offer better effective illumination and hence les s
spillover light . Moreover, LED output color is much closer to daylight and provides improved colo r
rendering over HPS lighting . This factor will result in a less light pollution and color spectrums tha t
are more alighted with natural light colors . Additionally, the Police Department supports the
conversion to LED .
FISCAL IMPAC T
Once the City receives notice from the CEC of a loan approval, the agreement with PG&E can b e
finalized and executed . The City will pay PG&E for the cost of the retrofit, using the CEC loan, an d
then begin payment of the loan to the CEC through the energy savings . There is no net impact to th e
City's budget initially . Although energy use will be reduced after the conversion, the City will us e
the cost savings between lower LED rates and the higher HPS rates for loan repayment .
The terms of the loan are such that the loan must be repaid within a maximum of 15 years includin g
principal and interest from energy cost savings or other funds . The loan payments are based on th e
estimated annual energy savings at the current per fixture rates for LED lights . It will tak e
approximately 13 years to complete the loan payment, after which time the City will be billed at th e
new rates associated with LED lighting . There will likely be other smaller annual savings fo r
maintenance . LED fixtures have a good reputation for needing little to no maintenance work for a n
extended period . The fixtures will all be new with a ten year warranty on the fixture, an eight yea r
warranty on the controls, and a one year warranty on the installation . The timing of this reduce d
maintenance workload on the lighting side will assist the two new signal and lighting maintenanc e
staff by providing them a window of opportunity to focus their learning on the complexities of th e
2 Aesthetically insignificant projects . The Community Development Director may determine that a new smal l
structure, or a change or addition to an existing building or other site feature, will not conflict with the objectives o f
design review due to its size, location, form, materials, or colors . In these cases, a separate design review applicatio n
and fee are not required . This determination will be noted in the building permit file, if one exists, or in the site addres s
file.PH2-6
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Street Light Energy Efficiency Project Page 7
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traffic signal system, and to participate in the conversion of the seven signal installation (new to th e
City) acquired as part of the Highway 227 relinquishment .
ALTERNATIVE S
1.Do not obtain a loan, and implement a small incremental project .
This alternative would use General Fund money to do a small replacement project . Energy saving s
from the retrofitted fixtures would then be accumulated to pay for additional fixtures . This is not
recommended as the savings would accumulate slowly, and incremental purchases would not se e
the material (fixture) cost break that large quantity purchases can provide . PG&E estimates it is abl e
to purchase the heads for about 60 percent of the cost that the City pays .
2.Deny the request to participate in the PG&E Turnkey Program and complete the work
using City Resources .
Council should only select this alternative if it feels this public/private partnership will not provide a
quality, cost effective project and is not in the best interest of the community . This alternative
would eliminate the use of PG&E to complete design and construction services and shift the wor k
effort to staff. While developing a bid package for lighting conversion is within the capabilities o f
City staff, it does not have the expertise to do the billing conversions effectively . PG&E will also b e
able to get the fixtures at a lower cost, because it is able to purchase directly from the manufacture r
and the City will have to purchase through a distributor . Staff does not recommend this option a s
PG&E will be able to carry this project to completion more efficiently and at a lower cost .
•ATTACHMENT S
1.PG&E Project Cost Estimat e
2.CEC Loan Resolutio n
3.Government Code Section 421 7
4.Energy Services Procurement Resolution — Exhibit A PG&E Proposal
g :projectrtnonap\street IightsVed conversionWaf reportsVpt-st light conversion .docx
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PH2-7
ATTACHMENT 1
PG&E LED Street Light Turnkey Replacement Servic e
Non-binding price estimate to be used for budgetary purposes onl y
City of :City of San Luis Obispo
ion date of this estimate :
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7-Dec-2012
Number of Lights to be Replaced Voltage Type
Wattag e
(Nominal/A
dual)Rate Suggested Replacement LE D
1497 120 HPS 70/85 LS-2 20 LED Gen D 350 @ 25 Watts
179 120 HPS 100/120 LS-2 20 LED Gen D 525 @ 35 Watts
10 120 HPS 150/176 LS-2 40 LED Gen D 525 @ 66 Watts
457 120 HPS 200/234 LS-2 60 LED Gen D 525 @ 98 Watts
2 120 HPS 250/293 LS-2 70 LED Gen D 525 @ 117 Watts
93 240 HPS 200/237 LS-2 60 LED Gen D 525 @ 98 Watts
21 240 HPS 250/293 IS-2 70 LED Gen D 525 @ 117 Watt s
2 240 HP5 400/451 LS-2 100 LED Gen D 525 @ 162 Watts
2 Merc Vapor S-V 400 400/445 LS-2 60 LED Gen D 525 @ 98 Watts
2263
Total Project Price :
Total PG&E Rebates :
Net Estimated Price :
$1,273,200
$162,27 5
$1,110,925
Total Equipment/Material Cost
$585,770
Installation Cost Percentage
Total Non-equipment Cos t
$525,155
47%I
ICEC 1% Loan :$1,293,979.601Energy cost savings in first year•:$99,53 7
Energy savings (kWh/year):782,36 8
CO2 reduction (18s/year):409,96 1
Avoided maintenance expenses in first year s :$15,84 1
Simple Payback (Energy Only);11 .16
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PH2-8
ATTACHMENT 2
RESOLUTION NO .(2012 Series)
•A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISP O
AUTHORIZING THE APPLICATION FOR AN ENERGY EFFICIENCY LOAN FRO M
THE CALIFORNIA ENERGY COMMISSIO N
WHEREAS,the California Energy Commission provides loans to schools, hospitals ,
local governments, special districts, and public care institutions to finance energy efficienc y
improvements ; and
WHEREAS,the City of San Luis Obispo supports reducing its energy usage and carbo n
footprint ; and
WHEREAS,the City owns and operates over two thousand street lights that can b e
converted to a lower power usage LED fixture .
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Lui s
Obispo, the following findings :
SECTION 1 .The City desires to apply for an energy efficiency loan from the Californi a
Energy Commission to implement energy efficiency measures ; and that if recommended fo r
funding by the California Energy Commission, the City will accept a loan of up to $1,293,980 .
•SECTION 2 . That in compliance with the California Environmental Quality Act, the
conversion of the street light system to LED that is funded by the loan is exempt under Title 1 4
of the California Code of Regulations, Section 15302 because it is the replacement of existing
facilities at the same location with the same purpose .
SECTION 3 . That the amount of the loan will be paid in full, plus interest, under th e
terms and condition of the Loan Agreement, Promissory Note, and Tax Certificate of th e
California Energy Commission .
SECTION 4 . The City Manager is authorized and empowered to execute in the name o f
the City, all necessary documents to implement and carry out the purpose of this resolution, an d
to undertake all actions necessary to undertake and complete the street light conversion .
Upon motion of , seconded b y
and on the following vote :
AYES :
NOES :
ABSENT :
The foregoing resolution was adopted this day of 2012 .
R
PH2-9
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Resolution No . (2012 Series)
Attachment 2
Page 2
Mayor Jan Mar x
ATTEST :
Maeve Grime s
City Clerk
APPROVED AS TO FORM :
J . Christine Dietric k
J . Christine Dietric k
City Attorney
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PH2-10
ATTACHMENT 3 -1
ATTACHMENT C
CALIFORNIA GOVERNMENT COD E
SECTION 4217 .10 — 4217 .1 8
4217 .10 . To help implement the policy set forth in Section 25008 of the Public Resources Code ,
and to extend that policy to facilities of local governments, public agencies may develop energ y
conservation, cogeneration, and alternate energy supply sources at the facilities of publi c
agencies in accordance with this chapter .
4217 .11 . The following terms, whenever used in this chapter, have the meanings given in thi s
section, except where the context clearly indicates otherwise :
(a)"Alternate energy equipment" means equipment for the production or conversion of energ y
from alternate sources as its primary fuel source, such as solar, biomass, wind, geothermal ,
hydroelectricity under 30 megawatts, remote natural gas of less than one billion cubic fee t
estimated reserves per mile from an existing gas gathering line, natural gas containing 850 o r
fewer British Thermal Units per standard cubic foot, or any other source of energy, the efficien t
use of which will reduce the use of fossil or nuclear fuels .
(b)"Cogeneration equipment" means equipment for cogeneration, as defined in Section 218 .5
of the Public Utilities Code .
(c)"Conservation measures" means equipment, maintenance, load management techniques an d
equipment, or other measures to reduce energy use or make for a more efficient use of energy .
•
(d) "Conservation services" means the electrical, thermal, or other energy savings resultin g
from conservation measures, which shall be treated as a supply of such energy .
(e)"Energy conservation facility" means alternate energy equipment, cogeneration equipment ,
or conservation measures located in public buildings or on land owned by public agencies .
(f)"Energy service contract" means a contract entered into by a public agency with any person,
pursuant to which the person will provide electrical or thermal energy or conservation services t o
a public agency from an energy conservation facility .
(g)"Facility financing contract" means a contract entered into by a public agency with an y
person whereby the person provides financing for an energy conservation facility in exchange fo r
repayment of the financing and all costs and expenses related thereto by the public agency .A
facility financing contract may provide for the person with whom the public agency contracts t o
provide any combination of feasibility studies for, and design and construction of, all or part o f
the energy conservation facility in addition to the financing and other related services, and ma y
provide for an installment sale purchase, another form of purchase, or amortized lease of th e
energy conservation facility by the public agency .
(h)"Facility ground lease" means a lease of all, or any portion of, land or a public buildin g
owned by, or under lease to, a public agency to a person in conjunction with an energy servic e
contract or a facility financing contract . A facility ground lease may include, in addition to th e
land on which energy conservation facilities will be located, easements, rights-of-way, licenses ,
and rights of access, for the construction, use, or ownership by the person of the facility and al l
related utility lines not owned or controlled by the interconnecting utility, and offsit e
improvements related thereto . A facility ground lease may also include the addition o r
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improvement of utility lines and equipment owned by the interconnecting utility which ar e
necessary to permit interconnection between that utility and an energy conservation facility .
Attachment C – California Government Code Sections 4217 .10-4217.1 8
Page 1 of 3
PH2-1 1
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ATTACHMENT 3-2
(i) "Person" means, but is not limited to, any individual, company, corporation, partnership,
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limited liability company, public agency, association, proprietorship, trust, joint venture, or othe r
entity or group of entities .
0)"Public agency" means the state, a county, city and county, city, district, community colleg e
district, school district, joint powers authority or other entity designated or created by a politica l
subdivision relating to energy development projects, and any other political subdivision or publi c
corporation in the state .
(k) "Public building" includes any structure, building, facility, or work which a public agenc y
is authorized to construct or use, and automobile parking lots, landscaping, and other facilities ,
including furnishings and equipment, incidental to the use of any structure, building, facility, o r
work, and also includes the site thereof, and any easements, rights-of-way appurtenant thereto, o r
necessary for its full use .
4217 .12 . (a) Notwithstanding any other provision of law, a public agency may enter into a n
energy service contract and any necessarily related facility ground lease on terms that it s
governing body determines are in the best interests of the public agency if the determination is
made at a regularly scheduled public hearing, public notice of which is given at least two week s
in advance, and if the governing body finds :
(1)That the anticipated cost to the public agency for thermal or electrical energy o r
conservation services provided by the energy conservation facility under the contract will be les s
than the anticipated marginal cost to the public agency of thermal, electrical, or other energy tha t
would have been consumed by the public agency in the absence of those purchases .
(2)That the difference, if any, between the fair rental value for the real property subject to th e
facility ground lease and the agreed rent, is anticipated to be offset by below-market energ y
purchases or other benefits provided under the energy service contract .
(b) State agency heads may make these findings without holding a public hearing .
4217 .13 . Notwithstanding any other provision of law, a public agency may enter into a facilit y
financing contract and a facility ground lease on terms that its governing body determines are in
the best interest of the public agency if the determination is made at a regularly scheduled publi c
hearing, public notice of which is given at least two weeks in advance, and if the governing bod y
finds that funds for the repayment of the financing or the cost of design, construction, an d
operation of the energy conservation facility, or both, as required by the contract, are projected t o
be available from revenues resulting from sales of electricity or thermal energy from the facilit y
or from funding that otherwise would have been used for purchase of electrical, thermal, or othe r
energy required by the public agency in the absence of the energy conservation facility, or both .
State agency heads may make these findings without holding a public hearing .
4217 .14 . Notwithstanding any other provision of law, the public agency may enter into contract s
for the sale of electricity, electrical generating capacity, or thermal energy produced by the
energy conservation facility at such rates and on such terms as are approved by its governin g
body . Any such contract may provide for a commitment of firm electrical capacity .
4217 .15 . The public agency may, but is not required to, base the findings required unde r
Sections 4217 .12 and 4217 .13 on projections for electrical and thermal energy rates from th e
following sources :
Attachment C – California Government Code Sections 4217 .10-4217 .1 8
Page 2 of 3 PH2-12
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ATTACHMENT 3-3
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(a) The public utility which provides thermal or electrical energy to the public agency .
(b)The Public Utilities Commission .
(c)The State Energy Resources Conservation and Development Commission .
(d)The projections used by the Department of General Services for evaluating the feasibility o f
energy conservation facilities at state facilities located within the same public utility service are a
as the public agency .
4217 .16 . Prior to awarding or entering into an agreement or lease, the public agency ma y
request proposals from qualified persons . After evaluating the proposals, the public agency ma y
award the contract on the basis of the experience of the contractor, the type of technolog y
employed by the contractor, the cost to the local agency, and any other relevant considerations .
The public agency may utilize the pool of qualified energy service companies establishe d
pursuant to Section 388 of the Public Utilities Code and the procedures contained in that sectio n
in awarding the contract .
4217 .17 . This chapter does not limit the authority of any public agency to construct energ y
conservation projects or to enter into other leases or contracts relating to the financin g
construction, operation, or use of alternate energy type facilities in any manner authorized unde r
existing law . This chapter shall not be construed to abrogate Section 14671 .6 .
4217 .18 . The provisions of this chapter shall be construed to provide the greatest possibl e
flexibility to public agencies in structuring agreements entered into hereunder so that economi c
benefits may be maximized and financing and other costs associated with the design an d
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construction of alternate energy projects may be minimized . To this end, public agencies and th e
entities with whom they contract under this chapter should have great latitude in characterizin g
components of energy conservation facilities as personal or real property and in granting securit y
interests in leasehold interests and components of the alternate energy facilities to project lender s
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Attachment C – California Government Code Sections 4217.10-4217 .1 8
Page 3 of 3
PH2-13
ATTACHMENT 4
RESOLUTION NO .
(2012 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO FO R
AUTHORIZING A SERVICES AGREEMENT WITH PACIFIC GAS AND ELECTRI C
COMPANY PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 421 7
WHEREAS,the City of San Luis Obispo desires to install energy efficient lighting ; and
WHEREAS,Section 901 of the City Charter is inapplicable to the Project, and thu s
Chapter 3 .24 of the San Luis Obispo Municipal Code governs the purchase of the Project ; and
WHEREAS,Section 3 .24 .060 .0 of the San Luis Obispo Municipal Code authorizes th e
City to purchase certain products and services without competitive bidding if such product o r
service or combination thereof can only be purchased from one provider ; and
WHEREAS,the Project as defined below relates to the purchase of electric power an d
energy and thus is exempt from competitive bidding under Section 907 of the City Charter ; and
WHEREAS,the State of California Government Code 4217 .12 authorizes loca l
municipalities to enter into energy services and financing agreements, outside of the adopte d
procurement process, that the governing body finds best serves the public agency ; and
WHEREAS,the City of San Luis Obispo desires to use the California Government Cod e
Section 4217 .12 as a basis to complete the conversion of the street lighting system to energ y
efficient lighting through services offered by its energy provider Pacific Gas and Electri c
Company (PG&E) ("Project"); and
WHEREAS,the City Council considered the contract with PG&E at a public hearin g
during a regularly scheduled meeting on December 4, 2012, public notice of which was given a t
least two weeks in advance .
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Lui s
Obispo :
SECTION 1 .Findings : Based upon the energy savings projections for the project fro m
PG&E, based on anticipated billing rates, the City's staff report, and other evidence presented a t
the public hearing, the Council hereby finds :
The energy efficiency project subject to Government Code 4217 and provide benefits to th e
public .
The cost for the energy efficiency project to convert the street lights will be less than th e
anticipated marginal cost to the City for the energy that would have been consumed in th e
absence of the project .
The project is exempt from Article IX Section 901 of the City Charter and is allowed b y
Government Code 4217 and San Luis Obispo Municipal Code section 3 .24 .060 .0 as an energy
efficiency project .
R
PH2-14
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•
•
Resolution No . (2012 Series)
Attachment 4
Page 2
SECTION 2 . The City approves the PG&E agreement amendment substantially in th e
form attached as Exhibit A .
SECTION 3 . The City Manager is authorized and empowered to execute in the name o f
the City, all necessary documents to implement and carry out the purpose of this resolution, an d
to undertake all actions necessary to undertake and complete the street light conversion, subjec t
to the City Attorney's approval as to the form of the agreement .
Upon motion of , seconded b y
and on the following vote :
AYES :
NOES :
ABSENT :
The foregoing resolution was adopted this day of 2012 .
•
Mayor Jan Mar x
ATTEST :
Maeve Grimes
City Cler k
APPROVED AS TO FORM :
J . Christine Dietric k
J . Christine Dietric k
City Attorne y
•
•
PH2-15
Pacific Gas an d
Electric Company
ATTACHMENT 4 / EXHIBIT A
Services Agreement San Luis Obisp o
SLT Proposal I
PROPOSAL NUMBER 1
This Proposal is made and entered into as of ,20_by and betwee n
City of San Luis Obispo ("Customer") and Pacific Gas and Electric Company ("PG&E"). Thi s
Proposal is subject to the terms and conditions of the PG&E Services Agreement betwee n
Customer and PG&E dated as of February 16, 2012 (the "Agreement").
DESCRIPTION OF SERVICE S
o Scope of Work : Replace 2263 HPSV lights with LED lights according to the map an d
LED spreadsheet (identifies each location) in the City of San Luis Obispo .
o Number any light poles that are not numbered using badge number stickers provided b y
PG&E .
o Change the rates to LED and provide documentation on the changes and cost for th e
street lights .
o Process the rebates and provide documentation on the changes and cost for the stree t
lights .
o Provide a revised GIS-based inventory .
Estimated minimum number of days to complete scope of work : 9 to 12 weeks from date o f
signature on Proposal .
Date work is estimated to begin : To Be Determine d
Customer sites where work is to be performed : See attached map for location.
Type and number of street light fixtures to be replaced : See attached spreadsheet for fixtures .
Locations may change if street lights are added to or deleted from the project during installation .
A final spreadsheet will be given to Customer upon completion of the wor k
If in the process of performing the Service, active bird nests, and/or bee hives, wasps ar e
discovered, PG&E will notify Customer of such condition and discontinue work on affecte d
equipment .
MATERIALS DISPOSAL
Customer will make space available at Customer-owned property for material storage an d
disposal during construction . PG&E will hold Customer harmless for damage to stored materials
while on Customer's property . Customer site where PG&E may store materials and wast e
disposal bins :
PG&E will store the materials at the following site :
Address : To Be Determined
Page 1 of 8
PH2-16
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•
Pacific Gas an d
&Electric Company
ATTACHMENT 4 / EXHIBIT A
Services Agreement San Luis Obisp o
SLT Proposal 1
•
•
PG&E's Contractor will keep the lights that have been replaced in a locked container until takin g
them to PG&E's yard . Contractor will separate the lamp from the fixture and put them in th e
appropriate bins . PG&E will label the bins and ship them to a registered disposal facility . PG&E
will store the materials at the following site :
TRAFFIC CONTROL PLA N
PG&E Contractor shall be required to comply with all applicable federal, state, and local laws ,
rules, regulations, permits, and codes including without limitation such laws, rules, regulations ,
permits, and codes with respect to safety and traffic control .
COST AND PAYMENT SCHEDUL E
The services under this Proposal will cost One Million, One Hundred Ten Thousand, Nin e
Hundred Twenty Five dollars and no cents ($1,110,925).(Current estimate - to be adjuste d
after bids are received )
This price does 0 does not O subtract the value of the LED streetlight rebates from the cost t o
provide the Services .
Payment Schedule :
Initial Payment : Upon ordering of materials, Customer will be invoiced 50% of the total amoun t
of the contract .
Final Payment : Customer will be invoiced for final 50% payment upon completion of thi s
Proposal or when punch list items (if any) have been completed .
If Customer chooses to terminate this Proposal prior to completion of the Services, then Customer
shall pay PG&E for all costs accrued up to the date of termination, including all material s
purchased .
PG&E will submit invoices to Customer based on the Payment Schedule . Each invoice wil l
reference the Agreement and this Proposal and be submitted to Customer's billing address as se t
forth below . Customer will remit payment to PG&E within 14 days after receipt of the invoice .
BUSINESS CONTACTS :
PG&E's primary business contact for this Proposal :
Name : Brent Pater a
Title : Sales Manage r
Address : 245 Market Street, Mail Code N10 D
San Francisco, CA 9410 5
Telephone : 415-265-723 2
Email : BXPL(th):lge .com
Page 2 of 8
PH2-17
Pacific Gas an dFa!Electric Company
ATTACHMENT 4 /EXHIBIT A
Services Agreement San Luis Obisp o
SLT Proposal 1
Customer's primary business contact for this Proposal :
Name : Barbara Lync h
Title : City Engineer
City of San Luis Obispo
Address : 919 Palm StreetSan Luis Obispo, CA 9340 1
Telephone : (805) 781-719 1
Email :blynch@slocity .org
CUSTOMER BILLING CONTACT :
Customer's billing contact for this Proposal :
Name : Barbara Lync h
Title : City Engineer
City of San Luis Obispo
Address : 919 Palm Stree t
San Luis Obispo, CA 9340 1
Telephone : (805) 781-719 1
Email : blynch41slocity .or g
AMERICAN RECOVERY AND REINVESTMENT ACT DISCLOSURE
PG&E and Customer acknowledge and agree that, to the extent the Services described in thi s
Proposal are, at any point in time, funded in whole or in part using federal funds awarded o r
granted directly or indirectly to Customer by or through the United States Department of Energ y
by virtue of appropriations under the American Recovery and Reinvestment Act of 2009, Pub . L.
111-5 (the "ARRA"), the special terms and conditions set forth in Section 11 .5 of the Agreement
will apply .
This Proposal is O is not Q funded (in whole or in part) by federal funds appropriated under th e
ARRA .
IN WITNESS THEREOF, the parties agree to be bound by this Proposal as of the dat e
first set forth above .
CUSTOMER CITY OF SAN LUIS OBISPO
PACIFIC GAS AND ELECTRIC COMPANY
•
Print Name :Print
Roxanne Fong, Manage r
Name :
Signature :
Signature :
Date :
Date :
Page 3 of 8
PH2-18
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Pacific Gas and
Electric Company
ATTACHMENT 4 /EXHIBIT A
Services Agreement San Luis Obisp o
SLT Proposal 1
•
MANUFACTURER'S WARRANTY INFORMATIO N
Street light manufacturer's contact information :
The street light manufacturer's contact information and warranty will be attached to eac h
Proposal .
Cree LED Lighting Fixture s
1200 92nd Stree t
Sturtevant, WI 53177-185 4
Phone : (800)236-680 0
Warranty period :
10 years .
Photo control warrantor's contact information :
Ripley Lighting Control s
2023 Platt Springs Roa d
P .O . Box 322 9
West Columbia, SC 2916 9
Phone : 803-939-470 0
Fax :
803-939-477 7
Warranty period :
8 years .
Warranty is attached .
•
Page 4 of 8
PH2-19
F Pacific Gas and
Electric Company
ATTACHMENT 4 / EXHIBIT A
Services Agreement San Luis Obisp o
SLT Proposal 1
•
Limited Service Warranty
PG&E warrants that the Service will be performed in a commercially reasonable manne r
consistent with the level of care and skill exercised by others when performing services of a
similar nature under similar circumstances . Customer must notify PG&E of any defect i n
workmanship within one (1) year of completion of installation of all streetlight fixture s
("Installation").If Customer notifies PG&E within one year of installation of a potential defec t
in workmanship, and PG&E confirms the defect, PG&E will either re-perform the Service at n o
additional charge to Customer, or, if PG&E so elects, refund the applicable fees paid to PG&E b y
Customer for the Service . This warranty extends to Customer only and cannot be assigned b y
Customer . This warranty is in lieu of all other warranties . All other warranties are expressl y
disclaimed .
Limited Material Warrant y
The manufacturer of the material to be installed will provide a warranty which is attached .
PG&E will provide to the Customer all documentation covering the warranty including contac t
information for the manufacturer or manufacturer's warranty agent . During the first yea r
following completion of Installation, Customer may contact PG&E (as part of the Limite d
Service Warranty) to request that PG&E remove the defective light and reinstall the repaired ligh t
or an equivalent replacement light . For those years following the Limited Service Warrant y
period but still within the Limited Material Warranty period, Customer must contact th e
manufacturer to make a warranty claim . Customer is responsible for removal of the equipment ,
arranging and paying for shipping and insurance for the equipment to and from th e
manufacturer's designated facility (and for all risk of loss to the equipment while in transit), an d
installation of the equipment upon return, unless otherwise instructed in the manufacturer's
designated warranty . This warranty extends to Customer only and cannot be assigned b y
Customer . This warranty is in lieu of all other warranties relating to installed materials . ALL
OTHER WARRANTIES (WHETHER EXPRESS OR IMPLIED) RELATING TO INSTALLE D
MATERIAL ARE HEREBY EXPRESSLY DISCLAIMED .
Disclaimers
Except for warranties expressly set forth in this Agreement, PG&E HEREBY EXPRESSL Y
DISCLAIMS ANY AND ALL WARRANTIES (WHETHER EXPRESS OR IMPLIED O R
ARISING FROM A COURSE OF DEALING OR USAGE OF TRADE, AND INCLUDIN G
WITHOUT LIMITATION IMPLIED WARRANTIES OF MERCHANTABILITY ,
INTEROPERABILITY, AND FITNESS FOR A PARTICULAR PURPOSE) RELATING T O
THE SERVICE . Customer acknowledges and agrees that the specific remedies described in thi s
Agreement respectively shall be Customer's sole and exclusive remedies for any and all warrant y
claims arising under or pertaining to this Agreement .
Page 5 of 8
PH2-20
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Pacific Gas an d
Electric Company
ATTACHMENT 4 / EXHIBIT A
Services Agreement San Luis Obisp o
SLT Proposal 1
S
•
•
LIMITED WARRANTY FOR CREE® LED LIGHTING FIXTURE S
(INCLUDING BETALED® TECHNOLOGY ; TRUEWHITE® TECHNOLOGY ; AN D
ESSENTIA® FIXTURES)
This limited warranty is provided by the Cree company described below ("Seller") to you as th e
original purchaser of the LED lighting product that is identified on Seller's invoice reflecting it s
original purchase (the "Product"). The Seller is the Cree company identified as such on th e
invoice . This limited warranty may be transferred to subsequent purchasers of the Product ,
provided that such Product is resold in new condition and in its original packaging . Seller
warrants that the Product, when delivered in new condition and in its original packaging, will b e
free of defects in material and workmanship for a period of TEN (10) YEARS from the date of
original purchase . The determination of whether the Product is defective shall be made by Selle r
in its sole discretion with consideration given to the overall performance of the Product .A
Product shall not be considered defective solely as a result of the failure of individual LE D
components to emit light if the number of inoperable components is less than 10% of the tota l
number of LED components in the Product .
If Seller determines the Product is defective, Seller will elect, in its sole discretion, to refund yo u
the purchase price of the Product, repair the Product or replace the Product . This limited warrant y
will not apply to loss or damage to the Product caused by : negligence ; abuse ; misuse ;
mishandling ; improper installation, storage or maintenance ; damage due to fire or acts of God ;
vandalism ; civil disturbances ; power surges ; improper power supply ; electrical curren t
fluctuations ; corrosive environment installations ; induced vibration ; harmonic oscillation o r
resonance associated with movement of air currents around the Product ; alteration; accident ;
failure to follow installation, operating, maintenance or environmental instructions prescribed b y
Seller or applicable electrical codes ; or improper service of the Product performed by someon e
other than Seller or its authorized service provider . This limited warranty excludes field labor an d
service charges related to the repair or replacement of the Product . THIS LIMITE D
WARRANTY IS VOID IF THE PRODUCT IS NOT USED FOR THE PURPOSE FOR
WHICH IT IS DESIGNED .
Seller reserves the right to utilize new, reconditioned, refurbished, repaired or remanufacture d
products or parts in the warranty repair or replacement process . Such products and parts will b e
comparable in function and performance to an original product or part, as determined by Seller i n
its sole discretion, and warranted for the remainder of the original warranty period .
In order to make a warranty claim, you must notify Seller in writing within sixty (60) days afte r
your discovery of the defect, provide proof of purchase such as the invoice and comply wit h
Seller's other warranty requirements . Upon receiving that notice, Seller may require you t o
promptly return the Product to Seller, or its authorized service provider, freight prepaid . Your
warranty claim should be addressed to Cree c/o Ruud Lighting, Inc ., 9201 Washington Avenue ,
Racine, WI 53406 .
This limited warranty only applies to specified LED fixtures . Any warranties applicable to finish ,
poles, lamps, CR Series downlights, LR24 TM troffers, certain BetaLED® Technology outdoo r
fixtures (specifically Class II as defined per IEC/EN60598), backup batteries, controls, occupanc y
sensors, photocells and other fixture accessories can be found a t
www .cree .corn/lighting/products/warranty .
Page 6 of 8
PH2-21
Pacific Gas and
&Electric Company
ATTACHMENT 4 / EXHIBIT A
Services Agreement San Luis Obisp o
SLT Proposal 1
THE FOREGOING WARRANTY PROVISIONS ARE EXCLUSIVE AND ARE GIVEN AN D
ACCEPTED IN LIEU OF ANY AND ALL OTHER WARRANTIES, WHETHER EXPRES S
OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY WARRANTY AGAINS T
INFRINGEMENT AND ANY IMPLIED WARRANTIES OF MERCHANTABILITY O R
FITNESS FOR A PARTICULAR PURPOSE .
IN NO EVENT SHALL SELLER BE LIABLE FOR INCIDENTAL, COMPENSATORY ,
CONSEQUENTIAL, INDIRECT, SPECIAL OR OTHER DAMAGES . SELLER'S
AGGREGATE LIABILITY WITH RESPECT TO A DEFECTIVE PRODUCT SHALL IN AN Y
EVENT BE LIMITED TO THE MONIES PAID TO SELLER FOR THAT DEFECTIV E
PRODUCT .
This warranty is effective for purchases of Product on or after the effective date set forth below .
Seller reserves the right to modify this warranty from time to time . Any modification of thi s
warranty shall be effective for all orders placed with Seller on or after the effective date of suc h
revised warranty .
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Page 7 of 8
PH2-22
Pacific Gas an d
Electric Company
ATTACHMENT 4 / EXHIBIT A
Services Agreement San Luis Obisp o
SLT Proposal 1
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RIPLEY CLIGHTIN G
ONTROL S
DIVISION OF SOUTHCONN TECHNOLOGIES IN C
2023 Platt Springs Roa d
P .O. Box 3229
West Columbia, SC 2916 9
Phone : 803-939-470 0
Fax :803-939-4777
WARRANT Y
The 6300 Series carries an 8-year warranty . If the product fails due to manufacturin g
defect within its warranted period, Ripley Lighting Controls will choose to eithe r
replace or repair the lighting control unit . This warranty does not cover damag e
caused by accident, abuse, misuse or lightning strikes . Ripley's liability hereunder shal l
be limited to replacement or repair and shall not cover the cost of removal o r
installation of the unit, nor any consequential damages . Ripley Lighting Control s
assumes no further liability with respect to the sale or use of this product . Thi s
warranty is in lieu of other warranties, expressed or implied, including the warranty o f
merchantability . Ripley Lighting Controls makes no warranty with respect to th e
suitability of the user's particular application . This warranty gives the user specifi clegal rights .
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PH2-23
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