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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