HomeMy WebLinkAbout2009-05-19; City Council; 19826; Authorize energy efficient street light retrofitsCITY OF CARLSBAD - AGENDA BILL 17
#• 19,826
MTG.5/19/09
PW-GS
AUTHORIZE ENERGY EFFICIENT
STREET LIGHT RETROFITS
DEPT. HEAD
CITY ATTY
CITY MGR.
RECOMMENDED ACTION:
Adopt Resolution No. 2009-119 _, which authorizes staff to 1) submit to the Federal
Government for the Energy Efficient Block Grant, 2) apply to the California Energy Commission
for a low interest loan to be put towards lighting retrofits, and 3) solicit proposals for the
retrofitting of the City's street lights.
ITEM EXPLANATION:
For the past decade, the City of Carlsbad has engaged in a comprehensive effort to reduce
electrical consumption and to promote energy efficiency. These efforts include the
development of Council Policy #71: Energy Conservation and Management, Council adoption
of Quality of Life and Environmental Guiding Principles, improvements to the City's vehicle fleet
fuel efficiency, extensive energy efficiency improvements to City facilities, quantifying the
municipal corporation's greenhouse gas emissions or "carbon footprint", and most recently,
pursuing a design for a hydroelectric facility at Maerkle Reservoir.
In 2006, the State of California approved Assembly Bill 32 (AB 32). This legislation, and other
subsequent State directives, has established aggressive short and long term goals regarding
the use of energy and the reduction of greenhouse gases (GHGs) through the year 2050
(Exhibit 2). The State has developed a scoping plan to assist in the implementation of Air
Resources Board programs and the provisions of AB 32.
Project Description
This project proposes to replace or modify all 7,040 high pressure sodium (HPS) street lights
owned and maintained by the City of Carlsbad with high efficiency induction street lights.
Thirty years ago, the City undertook a similar project and converted its mercury vapor street
lights to HPS. Until recently, HPS was considered the best technology available. Over the past
several years, technology has progressed with regards to the energy efficiency of street
lighting. Staff's proposal is to adopt induction street lighting as the City standard and replace
the existing fixtures with induction fixtures.
DEPARTMENT CONTACT: Tom Moore 760 434-2980 or Thomas.Moore@carlsbadca.gov
FOR STAFF USE ONLY.
ACTION: APPROVED S
DENIED D
CONTINUED D
WITHDRAWN D
AMENDED D
CONTINUED TO DATE SPECIFIC D
CONTINUED TO DATE UNKNOWN D
RETURNED TO STAFF D
OTHER-SEE MINUTES D
Page 2
FISCAL IMPACT:
The City currently pays approximately $600,000 per year in electrical costs for street lighting
(this represents nearly 25% of the total annual electrical expense for the municipality). Staff
estimates this cost will be reduced by approximately $290,000 annually by switching to
induction street lights. Additionally, maintenance costs are projected to decrease due to an
increase in the warranty period for the new induction lighting modules. As a result, staff
anticipates an additional $100,000 in maintenance savings annually to the street lighting
budget. Furthermore, induction lamps are projected to last longer and have a rated life span of
100,000 hours (24 years) versus a 25,000 hour rated lifespan (6 years) for the current HPS
lamps.
If approved, the proposed project is expected to take 14 to 16 months to complete. Energy
savings will accrue as lamps are replaced, with San Diego Gas & Electric (SDG&E) adjusting
the City's rate per fixture after each installation. SDG&E has, and continues to adopt new rates
which reflect induction fixtures reduced energy usage. For example, a typical HPS fixture
costs the City approximately $7.54/month, while an induction fixture would cost approximately
$3.32/month.
The estimated cost for retrofitting the HPS street lights owned by the City, which includes all
lights in both Street Lighting and Landscaping Districts No. 1 (LLD #1) and No. 2 (LLD #2), is
$3.03 million. Staff has identified a number of funding sources (as outlined in the table below)
to help offset the capital expense of the proposed project, including: a portion of the City's
Community Development Block Grant (CDBG) annual allocation, incentives from SDG&E, full
allocation of the Federal Energy Efficiency and Conservation Block Grant, and a loan from
either the California Energy Commission or the City's General Capital Construction (GCC) fund.
Funding Source
CDBG Allocation
SDG&E Incentives
Energy Efficiency and Conservation Block Grant
Anticipated Loan Amount
Total
Amount
$265,000
$285,000
$939,000
$1,543,000
$3,032,000
The City Council could consider three loan options:
1. Apply for a low interest (3.9%), ten-year loan from the California Energy Commission.
2. Have the GCC fund loan LLD #1 the necessary funds, bearing interest at an annual
rate equal to the average yield on the Treasurer's portfolio for each fiscal year,
payable over ten years.
3. Have the GCC fund loan LLD #1 the necessary funds, bearing no interest, payable
over ten years.
PageS
The savings in LLD #1 are estimated to be the most significant, and range between $2.1 million
and $2.6 million citywide over the next ten years, depending on which loan option is chosen.
This is due to the fact that the majority of street lights are located in LLD #1. Staff proposes to
fund loan payments from the annual savings (both electrical and maintenance) achieved from
the retrofitting. Without retrofitting the street lights, staff currently projects that the fund balance
in LLD #1 will be depleted in Fiscal Year 2012-13, as assessments cannot be increased in that
district without voter approval. If approved, the savings projected through the retrofitting of the
lights will allow LLD #1 to operate over the next ten years without requiring any additional
funding from the City's General Fund for operational purposes.
Efficiency savings in LLD #2 are estimated at $126,000 over the next ten years, and may result
in lower annual assessments to property owners within LLD #2. In LLD #2, assessments for
street lights are adjusted on an annual basis in order to fully cover the operational costs of the
lights.
Based on an analysis of projected portfolio yields, staff recommends Option 1, a loan from the
California Energy Commission, to provide the remainder of the funding necessary for this
project. The interest rate is lower than the anticipated interest rate for option #2, and this option
does not impact the GCC as would option #3.
ENVIRONMENTAL IMPACT:
Staff estimates that the change in technology will reduce the City's current power consumption
for street lighting from 5,118,967 kwh/year to 2,040,898 kwh/year. This is a reduction of
3,078,049 kwh annually. In terms of greenhouse gas reduction, this project will result in the
reduction of 1,240 tons annually, the equivalent of taking 170 cars off the road for a year, or
planting 124,046 trees.
Additionally, the technology used in induction lamps greatly reduces the amount of mercury
used, resulting in diminished need for hazardous waste disposal, and reduces both costs to the
City and impacts to the environment. Approximately one-tenth the amount of mercury used in
high pressure sodium lighting is used in induction fixtures. The form of mercury used in
induction lamps is a solid versus a liquid or gaseous form in high pressure sodium lamps, which
makes it much easier to recover and recycle at the end of the lamps useful life.
This project is a Class 1 categorical exemption (minor alteration of existing structure or
facilities) and is, therefore, exempt from the environmental review process under provisions of
the California Environmental Quality Act (CEQA), Section 15301(c).
EXHIBITS:
1. Resolution No. 2009-119 authorizing the retrofit of the City's streetlight
inventory with more efficient induction lighting, authorizing staff to apply for Federal
Grants to help pay for the project, and authorizing staff to apply for a low interest loan
from the California Energy Commission to assist with financing for this project.
1
2
3
FEDERAL ASSISTANCE GRANT.
4
5 WHEREAS, the City of Carlsbad has engaged in a comprehensive effort to reduce
6
energy consumption; and
7
WHEREAS, the State of California has adopted AB 32, the Global Warming
8
Solutions Act of 2006; and
27
28
RESOLUTION NO. 2009-119
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AUTHORIZING STREET LIGHT
RETROFIT PROJECT AND APPLICATION FOR STATE AND
g
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
25
Carlsbad, California, as follows:
26
1. That the above recitations are true and correct.
WHEREAS, AB 32 calls for dramatic reductions in the production of green house
gases; and
WHEREAS, the Council believes that the development of energy conservation
measures represents an effective way to help achieve the goals identified in AB 32; and
WHEREAS, new technology in street lighting substantially reduces energy
consumption; and
WHEREAS, the federal government has made available funds to help offset the
capital cost of replacing street lights; and
WHEREAS, the State of California provides low interest loans to help facilitate
energy efficiency projects; and
WHEREAS, the proposed street lighting retrofit will save more than three million
kilowatt hours annually.
2. City Council authorizes staff to proceed with developing specifications and
soliciting bids for to procure and install induction street lighting.
f
1
2
3. Staff is authorized to seek federal grants to assist with the financing of a street
light retrofit project.
3 4. Staff is authorized to seek a low interest loan from the California Energy
4
Commission to assist in the financing of a street light retrofit project.
5
6
7
8
g
10
11 //
12 //
13
14
15
16
17
18
19
20
21 //
22
23
24
25
26 "
27 //
28 //
//
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council
of the City of Carlsbad on the 19th day of May, 2009, by the following vote to wit:
AYES: Council Members Lewis, Hall, Packard and Blackburn.
NOES: None.
ABSENT: Council Member Kulchin.
ATTEST:
LORRAINE M. WOOD, City Clerk'
(SEAL)
ENERGY EFFICIENT SUSTAINABLELIGHTINGSUSTAINABLE LIGHTING
STREET LIGHTINGENERGY CONSUMPTION•Energy consumption of the existing system is 5illiKWHover 5 million KWH•$600,000 annual energy costs$,gy•20% to 25% of City of Carlsbad greenhouse gas emissions
GUIDINGPRINCIPLESGUIDING PRINCIPLES•COUNCILPOLICY71•COUNCIL POLICY 71•CARLSBAD QUALITY OF LIFE AND ENVIROMENTAL GUIDING PRINCIPLES•STATEASSEMBLYBILL32STATE ASSEMBLY BILL 32•STATE DIRECTIVES TO REDUCE ENERGY CONSUMPTIONANDGREENHOUSEGASCONSUMPTION AND GREENHOUSE GAS•FISCAL RESPONSIBILITY
CARLSBAD STREET LIGHTING228 5,350928928480
Benefits of Induction LightingLESS THAN ONE HALF ENERGY USEPROVEN SINCE 1990A100 000HOURLIFEA 100,000 HOUR LIFEPRODUCESWHITELIGHTPRODUCES WHITE LIGHTLESS GLARETEN YEARWARRANTY
ADVANTAGES OF INDUCTION LIGHTINGRENSSELAER POLYTECHNIC INSITITUTE LIGHTING RESEARCH CENTER·QUICKER REACTION TIME UNDER WHITE LIGHT QUICKER REACTION TIME UNDER WHITE LIGHT∙ STREET APPEARS BRIGHTER AND MORE COMFORTABLE COMFORTABLE ∙ TRAFFIC SIGNS APPEAR MORE CLEAR∙∙ GREATERSENSE OF SECURITY∙∙ GREATERSENSE OF SECURITY∙ BETTER COLOR RECOGNITION AND FACIAL RECOGNITIONRECOGNITION
LIGHTPOLLUTIONLIGHT POLLUTION •InternationalDarkSky•International Dark Sky Association compliant cutoff fi tfixtures•Less than one half of the existing wattagegg•ProduceslessreflectiveglareProduces less reflective glare
ENVIROMENTALIMPACTENVIROMENTAL IMPACTRdCitfClbdh•Reduce City of Carlsbad greenhouse gas emissions by 1,200 tons per year, the equivalent of taking 170 cars off the road or planting 124,000 treestrees•Reducing our hazardous mercury waste by 90%
FISCALIMPACTFISCAL IMPACT•Cost of project $3,032,000•40% incentives and grants make simple payback 4 yearsyears•Projected yearly savings of $ 400,000 per year•Continued savings over the 20 year lifespan of new systemsystem•HPS $7.54 per month vs. Induction $3.32 per month
LIGHTING DISTRICT FISCAL SAVINGS•10 year savings to LLD#1 of 2.1 million to 2.6 million, a direct savings to the General Fund•10 year savings to LLD#2 of $126,000 , may result in lower annual assessments
WHAT OTHERS ARE DOING
PROJECTSCHEDULEPROJECT SCHEDULE•Summer 2009 apply for grants incentives and loans•Fall 2009 solicit bids for equipment and installation•Fall2009Councilapprovalforsuccessfulproposals•Fall 2009 Council approval for successful proposals•Winter 2009 delivery of equipment and start of installations•Fall 2010 project completion and closeout.pjp
RESOLUTIONNO.2009‐119RESOLUTION NO. 2009119StaffrecommendsadoptingresolutionNo.2009‐119Staff recommends adopting resolution No. 2009119 authorizing the following actions :1SubmittothefederalgovernmentforanEnergyEfficiency1.Submit to the federal government for an Energy Efficiency Block Grant2. Apply to the California Energy Commission for a low interest loan to assist in financing the lighting retrofit project3. Develop specifications and solicit bids to procure and pppinstall induction street lighting
Questions or Comments?
ORIGIN OF INDUCTION LIGHTING•The Principle of Induction wasintroducedtotheworldwas introduced to the world by the scientist Nicola TESLA in the 1800’s.•TESLApredictedthat•TESLA predicted that incandescent lighting “will soon be superseded by the electrodelessvacuumtubeelectrodelessvacuum tube which I brought out thirty‐eight years ago, a lamp muchmoreeconomicalandmuch more economical and yielding a light of indescribable beauty and softness"softness."
Communities Going Greeng•Princeton Il. Replaces current street lights with energy efficient Induction lighting•Islip NY going green with Induction Street lighting•City of St. Petersburg purchases $640,000 Induction fixtures•North Bay Ontario lights the way with 5,500 Induction Bulbs•City of Tempe completes pilot program requests 2 million for induction•Arizona Public Service Agency approves Induction Cobra head Street lights•Evanston Il Council approves one million dollars for Induction Street Lights•Evanston Il. Council approves one million dollars for Induction Street Lights•City of Los Angeles converts 4,800 street lights to Induction Lamps•City of Compton improves public safety with induction street lightsyppp y g•Cobourg Ontario to make total conversion to Induction Lights, 2,395 in total•Ponca City Okla. improves services ,reduces costs with Induction Lights•Henderson Nev. Green upgrades : 26,000 street lights to be replaced with Induction FixturesHenderson Nev. Green upgrades : 26,000 street lights to be replaced with Induction Fixtures•Caltrans replacing 175 –205 watts with 85 watts induction lamps
ABETTERWAYTOLOOKATLIGHTA BETTER WAY TO LOOK AT LIGHT
WHATISINDUCTIONLIGHTING?WHAT IS INDUCTION LIGHTING ?HOW DOES IT WORK ?•.
PSE&G Goes Green In a BIG WAYThtilitilld$50illif•The utility will spend $50 million for efficient induction fluorescent lighting.•PSE&G will replace 96,000 street lights in two years, resulting in immediate titi i liticost savings to municipalities.