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Home My WebLink About1991-01-22; City Council; 11001; SDG&E street light acquisition (proposed)-I 3 [i! a d 3 w w 0 a, k 3 u .rl a, a a G z a, 5 a ; 0 h cd a a a 2 VJ g u .d cd *d u 0 M aJ FI u 0 &I a, c, $ c -4 0 u. m wu wa, u? cd -d WM a, uc a, .rl -16 VJ m&I aJ am ku -4 c( arts -4 0 uu C 3h 00 uw A \ c-4 rn \ c\l rl .. z 0 E e 1 0 2 => 0 0 -, OF CARLSBAD - AGENw6lLL AB# f/,cG \ TITLE: DEPT. CITY P MTG.- I DEPT. u &M PROPOSED SDGM STREET LIGHT ACQUISITION CITY n RECOMMENDED ACTION: 1/22/91 1 Approve acquisition of San Diego Gas and Electric Company owned street lights, staff to enter negotiations to purchase the street lights, and approve the expenditi $30,000 from the Street Lighting Fund budget for consultant services. ITEM EXPLANATION: The City's street lighting system consists of 3651 City owned and maintained ligh 731 SDG&E owned and maintained lights. The operation and maintenance costs lighting system is funded by the lighting portion of the City's Landscaping and Li District No. 1, a benefit assessment district. The City of Carlsbad, as well as many cities and counties in California, have mor street light costs for several years. The substantial cost differences associated Wj SDG&E street light system versus the City owned system, prompted staff to b feasibility study to determine if it would be cost effective to acquire the SDG&E ( street lights. The study, performed by a consultant, analyzed current street ligh and projected the costs of the SDG&E system under City ownership. In additic study analyzed acquisition estimates and reviewed City maintenance efforts. After analyzing the report and other related records, staff concluded that proc with acquisition of the SDG&E owned street lights would be cost effective. The first major benefit of the proposed acquisition is cost savings. The overall op and maintenance costs of the SDG&E lights range from 34% to 75% higher tl- City owned lights based on the current SDG&E street light rate schedule (dated h 1990) and depending on the class and wattage of the lights. (See Exhibit "A") Improved maintenance response is the second major benefit to be derived frc purchase of the SDG&E street lights. The average response time for a City own maintained street light complaint is two (2) working days from the time tl malfunction is reported. In comparison, the average response time for a SDG&E and maintained street light is twelve and one half (12%) working days from t2 the additional maintenance that would be incurred by the purchase of 678 ligl An additional benefit would be reduced street lighting benefit assessment admini costs. There are currently three (3) zones within the City's lighting districi contain SDG&E lights and one (1) zone for City owned lights, Acquisition SDG&E lights will allow all lights to be administrated in one zone thereby sim the assessment process. the malfunction is reported. At this time no additional City staff is required to I e -. e PAGE 2 OF AB # I/:CZ / The proposed acquisition estimate, based on the feasibility study, ranges bel different methods used to estimate the value of the streetlights. The utility corn1 use "Replacement Cost New, Less Depreciation" (RCNLD) to value their system fc setting purposes and thus prefer to use this method to set the price of the street 1 The RCNLD method results in a higher estimated value. Local agencies use "Or Cost, Less Depreciation" (OCLD) to estimate value. The OCLD method generally r in lower estimated value. A significant variance in estimated value can when thes methods are used, especially when the streetlights to be acquired are old. The ( method is viewed by knowledgeable people to be the most appropriate meth estimate the value of streetlights to be acquired. Of the 731 utility owned lights, staff is proposing acquisition of 678. Those ligh proposed for acquisition (53) will be replaced as City owned lights through pro underground utility districts. Estimated savings, based on the aforementioned feas report, are projected to be approximately $45,000 a year in energy costs if thf acquired the 678 lights which would mean complete payoff of purchase prices z present rates within 2% to 4% years. A street light has an estimated life of 16k with lamp replacement occurring at 4 to 5 years. The substantial difference between utility owned street light rates as opposed to tht owned street light rates has prompted more than forty cities and counties in Calif to acquire utility owned street light systems. Oakland, Berkeley, Santa Rosa, A Napa, and San Mateo were among the first cities to purchase utility owned street 1 Currently in the southern portion of Orange County and in San Diego County, sc agencies have already purchased or are in the process of purchasing street lights San Diego Gas & Electric Company. These include the City of San Diego, City o Marcos, and the County of San Diego. The City and the County of San Diego acquired lighting systems through direct negotiations with SDG&E. The City oj Marcos and the City of San Juan Capistrano found it necessary to enter condemnation proceedings. San Marcos is currently undergoing condemn proceedings; however, San Juan Capistrano recently settled their court case and have ownership of the City's entire lighting system. Staff is requesting approval to secure consultant services to perform an appraisa estimate the cost of the SDG&E owned streetlight and to assist staff in the negoti; process. The cost of consultant assistance should not exceed $30,000. $125,000 and $200,000. The variance in estimated acquisition cost is due to th B:\AGB91007 .E01 e PAGE3OFAB# %a ; If the City Council concurs with staffs recommendation, negotiations will begin : January 1, 1991. The acquisition process should conclude in four to six months, UI condemnation proceedings are required. At this time it is unknown if condemna proceedings will be necessary. As noted above, the City and the County of San D accomplished negotiated purchases while the City of San Marcos is purs condemnation. A copy of this Agenda Bill has been forwarded to the SDG&E Account Executive fo: City of Carslbad and no comments have been received at the time this Agenda Bill completed. FISCAL IMPACI': Funds to acquire the streetlight are available in the unappropriated fund balance 0, Streetlighting District. Funding for the requested consultant services is available ir Streetlighting District FY 1990-91 budget. Should a negotiated purchase fail tc realized, staff will present a proposal for condemnation for City Council considerai The cost of condemnation could exceed $10,000. EXHIBITS: 1. Exhibit "A" - current street light rate comparison. B:\AGB91007.E01 .* e .c 0 m 0 0- m ++ 3 .e $8 m 6) 3 + 0 3 r, %Q e z 9 g3 '5 G M * 0 .B Y 2 42- m s 0 m .Y a S$ 3 'oc 2 $0 $ 2 gb; Q 2 t; .2 cc - .B 2 0 8 3g - E 22z 2 go c s 3= 0 2: E 3 .Y .; h3 +% Y G 0 &g .z 2 v z % ;s 2 4 Wrn -2 gz s 6) 3% c 26) 5 0 .o, 3 2 >, a 3 3% c I-d 8z T Y 3 Ec g 0 .% cl ++ 8 %? gs Ld j 21 -r( i m > G E-c x do wq dh E-cc #O l+u hl at, 5 0 €3 .3 3 v: > 0 7 w gL2 O % 2 .: m 2 m ._ x 4 m= 'c (F p: c u s 0 > Q> 0 bul .r - c b U ".$ a $ 'o 0 l> 9 :$ .- 3 $4 L -2 3 $55 c (I 22.2; .d ah32 p 24 3&% c m E ++ 223 i 4 u22 * 5 c b 4 .n cs ul rn- - -0++ 5 I IC0 '; m cAO> - J avo 4 *-E * * * * August 21, 1991 Property Tax Services ATTN: James Griego/Marilyn Flores 1600 Pacific Highway San Diego, CA 92101 REVISION TO LIGETING AND LANDSCAPING DISTRICT 91 ASSESSMENTS STREET LIMITING ZONES - FUND No, 6010-01 LANDSCAPING ZONE T - FUND No. 6010-11 LANDSCAPING ZONE M - FUND No. 6010-09 County Administration Center, Room 164 As per our telephone conversation the REVISED assessment totals a as follows: Fund No. No. of Parcels Total Assessment Amount 6010-01 29,063 $615,035.52 All other information given in the letter from the City Clerk Office dated August 7, 1991, remains unchanged. If there a questions regarding these figures, please contact my office at 438-7753 extension 4111. Uk m0-N VIRGI Elect boy IA 'cal perations X Supervi VMC: hlh c: Lee Rautenkranz Cheryl Allen H:\LIBRAR~UM\WPDATAUTRUTR92029.E0 2075 Las Palrnas Drive - Carlsbad, California 92009-1519 - (619) 438-7