TITLE
Recommendation to authorize City Manager to execute all documents necessary to enter into on-bill financing agreements with Southern California Edison, to fund the conversion of the City's streetlights to light emitting diodes fixtures; and
Increase appropriations in the Capital Projects Fund (CP) in the Public Works Department (PW) by $6,040,000. (Citywide)
DISCUSSION
City Council approval is requested to enter into agreements with Southern California Edison (SCE) for on-bill financing (OBF), to fund the installation of light emitting diodes (LED) fixtures for the City's streetlights. OBF is a financial mechanism that enables local governments to finance qualified energy efficiency projects. SCE's program provides zero-interest, no-fee loans that can be conveniently repaid through the City's monthly SCE bills. In addition, projects that result from this program provide additional financial incentives for installing qualified energy-efficient equipment, lower monthly electricity costs and produce long-term energy savings. The City Council last approved the use of this financial mechanism for energy efficiency projects in 2011.
Staff has made significant progress in the installation of LED fixtures for the City's traffic safety intersection lights (Phase 1). The Port of Long Beach's Greenhouse Gas Mitigation Grant is funding Phase 1 of the project. The City celebrated the kick-off to the installation on October 29, 2015 at Third Street and Cedar Avenue. Phase 2 of the project, which will begin in early January, converts the nearly 24,000 streetlights in the City, and will take approximately one year to complete. The predicted strong winter storms as a result of the EI Nino weather pattern could potentially affect this schedule as high winds and/or rain would delay the installation of the fixtures.
For Phase 2, the anticipated cost to convert the City's 24,000 streetlights to LED fixtures is approximately $6,040,000. Staff identified incentives, reb...
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