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05-07-2019 - Item 17 - Consideration of Agreement with Southern California Edison For Conversion of All SCE Owned Street Lights To Energy Efficent Light Emitting Diode FixturesAGENDA ITEM NO. 17 AGENDA STAFF REPORT City of West Covina | Office of the City Manager DATE:May 7, 2019 TO:Mayor and City Council FROM:David Carmany Interim City Manager SUBJECT:CONSIDERATION OF AGREEMENT WITH SOUTHERN CALIFORNIA EDISON FOR CONVERSION OF ALL SCE OWNED STREET LIGHTS TO ENERGY EFFICIENT LIGHT EMITTING DIODE (LED) FIXTURES - COUNCILMAN CASTELLANOS RECOMMENDATION: It is recommended that the City Council authorize the City Manager to negotiate and execute an Agreement with Southern California Edison (SCE), LS-1 Option E, to convert SCE owned street lights from High Pressure Sodium Vapor (HPSV) or Mercury Vapor (MV) to Light Emitting Diode (LED). BACKGROUND: This item was requested to be agendized for further discussion at the March 5, 2019 City Council Meeting by Councilman Dario Castellanos. The City of West Covina owns approximately 800 street lights, whereas SCE owns and operates approximately 8,193 street lights within City Limits. The City already purchased Light Emitting Diode (LED) lights for City-owned street lights and is in the process of converting them. Staff contacted SCE to determine the cost and benefits of converting SCE-owned street lights to LED fixtures. These types of streetlights are referred to as "LS-1" lights because they are still owned and maintained by SCE. DISCUSSION: On June 1, 2016, the LS-1 Option E tariff became available to cities for street light LED retrofits. This new tariff allows SCE to replace HPSV and MV lamps to more efficient LED lamps with no upfront cost to customers. The Option E program includes a 20-year energy efficiency premium designed to recover the initial capital expenditures associated with the LED street light replacements. The energy efficiency premium charge is locked in for 20 years, in accordance with the California Public Utilities Commission (CPUC) approved rate. To be considered for the LS-1 Option E program, the City is required to enter into the attached agreement with SCE. Once the agreement is executed, the City will be placed into the LS-1 Option E LED conversion queue. Representatives from SCE have indicated that it would be approximately 12 months before the retrofit project would occur. City staff has requested that a SCE representative be present at the May 7th meeting. Because the City already purchased LED light fixtures for its 800 City-owned street lights, staff will ensure the fixtures are comparable as the ones from SCE so the lighting is consistent throughout the City. Prepared by: Mike Cresap Public Services Superintendent Additional Approval: Nikole Bresciani Assitant City Manager Fiscal Impact FISCAL IMPACT: There are no upfront costs for the conversion of the street lights to LED. The cost is rolled into the LS-1 Option E rate. The City should realize an annual savings of approximately $65,000 during the 20-year repayment period and $200,000 post repayment period. Attachments Attachment No. 1 - SCE LS-1 Option E Rate Agreement Attachment No. 2 - 12 Month estimated savings analysis Attachment No. 3 - LED/HPSV Cost Analysis