Report to Mayor and City Council
Tuesday, February 06, 2018
Discussion
SUBJECT:
Title
CONSIDER THE PURCHASE AND INSTALLATION OF ENERGY EFFICIENT EXTERIOR LIGHTING FOR NINE CITY-OWNED PARKS, CITY HALL, THE COMMUNITY CENTER AND THE CORPORATE YARD. (CITY COUNCIL)
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I. SUMMARY
The City of Carson is working with the South Bay Cities Council of Governments (SBCCOG) to convert 1,250 City owned exterior building lights to more energy efficient, light-emitting diode (LED) lights.
Southern California Edison (SCE) offers an On-Bill Financing (OBF) program which helps cities finance qualifying energy efficiency projects by providing a zero interest loan and a one-time incentive payment.
The City would need to initially cover the costs associated with the purchase and installation of the LED lights, and once the installation and post verification are complete, SCE would reimburse the City for the total project cost. Subsequently, a line item would be added to the City's electricity bills, and the City would use the energy savings to repay the loan to SCE in monthly payments over a 10 year period.
The total project cost is estimated at $928,219. The estimated one time incentive payment is $156,667 (no repayment necessary), and the OBF amount is $771,552 (repaid through electricity usage savings).
If the City were to upgrade these 1,250 lights, the associated annual electricity cost savings would be $96,432. Given that the City would pay $77,155 every year for the ten years allowable under the OBF program, the annual net savings to the City would be $19,277.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. APPROVE the purchase and installation of energy efficient LED lights at nine parks, the Civic Center and the Corporate Yard
2. WAIVE the formal bidding process
3. AUTHORIZE staff to secure a vendor for installation.
4. APPROVE Resolution No. 18-013.
1.
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III. ALTERNATIVES
TAKE another action the City Council deems appropriate.
IV....
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