April 30, 2015
FROM: SCOTT L. MOZIER, PE, Director
Public Works Department
BY: SCOTT W. KRAUTER, PE, Assistant Director
Public Works Department, Street Maintenance Division
SUBJECT
Title
***RESOLUTION - 47th amendment to the Annual Appropriation Resolution (AAR) No. 2014-95 to appropriate $139,400 for an LED Technology Streetlight Retrofit Project in FY2015 (Requires 5 affirmative votes)
Body
RECOMMENDATION
It is recommended that the Council approve the 47th Amendment to the Annual Appropriation Resolution No. 2014-95 appropriating $139,400 of funds from CFD 11 assessment revenue balance to the Public Works Department, Capital Management Division to develop a project to replace the existing High Pressure Sodium ("HPS") fixtures with more efficient Light-emitting Diode ("LED") fixtures.
EXECUTIVE SUMMARY
The City of Fresno collects CFD 11 funds to perform street light maintenance in selected tracts, including the power bill, regular routine maintenance and longer-term component replacements. Public Works will utilize these CFD 11 funds to install energy efficient, longer lasting LED fixtures on the existing street lights. This initial project will target 5 to 7 year old cobra-head style street lights which are due for HPS bulb replacement. This initial project will retrofit approximately 360 existing CFD 11 supported street lights, comprising about 34 percent of the current CFD 11 streetlight inventory (see LED Retrofit - Phase 1 Vicinity Map attached). The project will result in lower energy bills along with an anticipated return on investment in less than seven years, with a long-term savings to property owners in CFD 11.
BACKGROUND
The CFD 11 program collects tax assessment from properties within individual tracts that were annexed into the District. Most assessment revenue is used for landscape maintenance, but these CFD 11 tracts include other longer term maintenance features like concrete repair, tree trimming, pavement improvements, and street light repair. These non-annual maintenance efforts are funded through a reserve program in the District where a portion of annual assessment is set aside to build up over multiple years to support these more expensive longer term maintenance functions. Street lighting is one of these reserve items.
At the time of this report, the City of Fresno maintains 1,060 streetlights with CFD 11 funds. District supported street light maintenance includes monthly energy costs, the costs to repair fixtures every 5 to 7 years (replace HPS bulbs and photoelectric controls), and longer term pole replacement. Since these CFD supported street lights were installed beginning in 2008, LED street light fixtures have been developed that can provide the same or better lighting of the streets, using as much as 60% less energy. Further, the LED fixtures are expected to stay in service 15 to 20 years, which is significantly longer than the current HPS fixtures which last 5 to 7 years. The energy savings alone can make up the cost of the new LED fixtures in about 7 years.
It is anticipated that the request for proposals and selection process will be completed this summer, and fixtures will be installed late summer to early fall. Because LED fixture quality and efficiency are key aspects between different manufactures, the vendor selection process will consider fixture energy efficiency, light quality, projected lamp life as well as installation costs.
The intent of this AAR is to appropriate already collected CFD 11 reserve funds into the FY 2015 Public Works capital improvement budget. These funds will be used to fund a Phase I project to replace 4 to 7 year old cobra head style HPS fixtures with LED fixtures. A Phase II project is being planned to retrofit the remaining newer "cobra style" street lights in FY2016 and FY2017. Future developments will also be required to install LED fixtures rather than the older HPS technology.
ENVIRONMENTAL FINDINGS
The retrofit of street light fixtures is considered maintenance and is not defined as a project under the California Environmental Quality Act and does not require an environmental finding.
LOCAL PREFERENCE
Local preference will be considered during solicitation of proposals for award of a services contract.
FISCAL IMPACT
The fiscal impact for the new fixtures is estimated to be $139,400 in CFD 11 reserve funds. This fund has a balance of about $1 million for non-annual reserve maintenance as of the FY2013/2014 CFD fiscal year. The cost of these replacements will re-pay each tract's reserve fund with energy savings resulting in a net positive balance for the CFD 11 reserve over time.
Attachment: Resolution