18-0116_SIEMENS INDUSTRY, INC._D2_PowerPointCity C ouncil
Meeting
STREET LIGHT
CONVERSION PROJECT
January 16, 2018
1
Last considered on July 18, 2017
City Council authorized the City
Manager to execute contract with
Siemens Industry Inc. to
complete initial analysis required
for converting the street lights.
BACKGROUND
2
Siemens has completed their
Investment Grade Audit (IGA) and
system analysis.
Key Finding:
Energy savings from the Project
exceed the cost to implement the
conversions.
INITIAL ANALYSIS: DEVELOPMENTAL
PHASE
3
Siemens and City staff reviewed and
determined:
A ppropriate balance (lighting levels and
energy savings)
goals and site specific variations
“Lessons L earned” from other
municipalities
Next Step: Execute agreements necessary
to acquire, install, and finance the new
street lighting system.
INITIAL ANALYSIS: DEVELOPMENTAL
PHASE
4
Provide materials, equipment,
and hardware to install LED
street light retrofit kits.
Convert 1,138 street lights to
LED.
1,075 Mission Bell style
Ensure street lights receive
SDGE’s reduced tariff
schedule.
Deliver final database of
installed fixtures
SCOPE OF WORK: CONVERSION
5
Taxable lease purchase agreement
Preserve maximum flexibility for anticipated
future revenue generation opportunities
10 -year term
Annual payment $57,700
*Paid for with Energy Savings*
Smart to take advantage of low interest rates
(4.69%).
End of term, all energy and maintenance-
related savings retained by the City.
PROJECT FINANCING
6
Item Current Projected Difference
Energy Cost $100,000 $ 40,000 $60,000
Maintenance Cost $ 65,000 $ 35,000 $30,000
Payment to
Siemens
$ 0 $ 57,700 ($57,700)
Totals $165,000 $132,700 $32,300
FISCAL IMPACT
Table of Current and Projected Annual Costs
7
THANK YOU
Questions?
8