HomeMy WebLinkAbout1997-07-22; City Council; 14285; Authorize agreement for funding installation of red LED traffic signals., 1 / CITv@F CARLSBAD - AG rr AB# /q, 28 5 TITLE: AUTHORIZE AGREEMENT FOR DEPT
MTG.w FUNDING INSTALLATION OF RED
CITY DEPT..a~- LED TRAFFIC SIGNALS
CITY
RECOMMENDED ACTION:
Adopt Resolution No. 9 3- 55 0 appropriating $108,612 from the Ger
increasing estimated revenues by $108,612, and authorizing staff to enter into an agr
SDG&E for financing the purchase and installation of 989 red LED (light emitting diode) fixtures.
ITEM EXPLANATION:
The first traffic signal was activated on August I I, 1965, at the intersection of Carlsbad ’
and Harding Street. There are now seventy-five fully actuated, City-owned, signalized i
operating within City boundaries with eight more planned by the end of FY 1997-98. Cu
and construction costs for an average traffic signal system total approximately $100,
installed, maintenance and energy costs average between $300 and $500 per month dep
the number of heads.
As signal systems are added, equipment ages, and energy rates increase, staff must i
technology to help control rising costs. Installing LED (light emitting diode) fixtures in plac
incandescent lamps can provide increased safety to staff and motorists and diminish 1
some routine maintenance. The savings resulting from reduced energy consumptic
sufficient enough to fund the initial installation in less than two years.
The Community Services Department signed a non-binding agreement with the SDG&E
1997. This agreement obligates SDG&E to reimburse the City $15.00 for every red L
$5.00 for every red LED arrow that is installed prior to December I, 1997, up to a tot:
$12,085. Should the City fail to meet this deadline, SDG&E is released from this monetary
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FISCAL IMPACT:
Although LED traffic signal indications cost more initially, the long-term savings resultin:
energy consumption clearly justifies their purchase. The City has two funding options av;
is to fund the program initially or negotiate an agreement for funding through SDG&E.
The cost of materials, based on the recent City of San Diego bid prices, is $108,829 inc
tax. After the SDG&E rebate, the City’s cost for materials would be $96,744.
maintenance contractor has already submitted a proposal to install red LED units at $12.(
installation would require an allocation of $108,612 to fund the program at this time. The total cost for installing all 989 units would be $1 1,868. The combined cost of m
PROGRAM COSTS
Materials I Installation I Incentive I TOTAL
108,829 I 11,868 I (12,085) I $108,612
0 0
SDG&E has a program available to fund the purchase and installation of energy-savin
They are offering a low interest loan at an interest rate equal to the three-month comt
rate, paid back over time with payments added to the existing energy bill as a separa
funds. Actual monthly payments would vary according to the terms of the loan and woulc
energy savings resulting from the installation of the LED units. The loan term could be a
time necessary to recoup the funds through energy savings (approximately two years)
five years. The total cost of the loan repayment would depend upon the actual terms of tl
RECOMMENDATION:
Staff is recommending that the City finance the acquisition and installation of the units UI
program with the repayment term approximately equal to the time it would take to rec
(estimated at two years). Since, this option would eliminate the need for the immediate t
City funds, those funds could continue to earn investment dividends for the City at a his
that paid to SDG&E.
By adopting the attached resolution, Council will authorize the purchase and installatic
LED fixtures, authorize the City Manager to negotiate and enter into an agreement fol
purchase and installation, appropriate $108,612 from the General fund and increase r
three-month commercial paper rate is generally lower that the rate the City earns or
like amount.
EXHIBITS:
1. Resolution No. 9 3- 55 0 appropriating general funds, increasing estima
and authorizing staff to enter into an agreement with San Diego Gas and Electric
financing the purchase and installation of 989 red LED traffic signal indications.
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RESOLUTION NO. 9 7 - 5 5 0
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROPRIATING GENERAL FUNDS, INCREASING ESTIMATED REVENUES, AND
AUTHORIZING STAFF TO ENTER INTO AN AGREEMENT
WITH SAN DIEGO GAS & ELECTRIC COMPANY FOR
FINANCING THE PURCHASE AND INSTALLATION OF 989
RED LED (LIGHT EMITTING DIODE) TRAFFIC SIGNAL
INDICATIONS
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8 WHEREAS, the Community Services Department entered into a no
9 agreement with San Diego Gas & Electric Company for the installation of 989 red L
10 emitting diode) traffic signal fixtures prior to December 1, 1997; and
11 WHEREAS, this agreement obligates the San Diego Gas & Electric Con
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red traffic signal indications are environmentally friendly, would increase public safe1 15
WHEREAS, staff has determined that installation of LED fixtures in place of 14
installed prior to December 1, 1997, up to a total of $1 2,085; and 13
reimburse the City $15.00 for every red ball and $5.00 for every red arrow LED fixtu
reduce maintenance costs, and would dramatically reduce energy costs; and
1'1 WHEREAS, adequate funds exist in the General Fund to cover the initia
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materials and installation of 989 red LED traffic signal fixtures within the City of (
20 WHEREAS, the San Diego Gas & Electric company has offered a low inter-
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equal to the three month paper rate to finance the purchase and installation of 989
paper rate which is lower than anticipated revenues resulting from City investments. 24
WHEREAS, it is in the City's best interest to finance this purchase at the thre 23
traffic signal fixtures within the City of Carlsbad; and,
25 i NOW, THEREFORE, BE IT RESOLVED, BY THE City Council of the
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Carlsbad as follows:
1. The above recitations are true and correct.
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2. The Finance Director is hereby authorized to make General Funds av;
the amount of $108,612 for the purchase and installation of 989 red LE
signal fixtures.
3. The City Manager is hereby authorized to negotiate and enter
agreement with San Diego Gas and Electric Company for the purch;
installation of 989 red LED traffic signal fixtures in the City of Carlsbad.
4. The Finance Director is hereby authorized to increase the estimated rev€
$108,612 as a result of the loan from SDG&E.
5. The Purchasing Agent is hereby authorized to procure the materials nc
for the installation of 989 red LED traffic signal fixtures.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Car
its regular meeting held on the 22nd day of July
1997, by the following vote, to wit:
AYES: Council Members Lewis, Finnila, Nygaard, Kulchin, and 1
NOES: None -
ABSENT: None
ATTEST:
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