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7.1.A. - Page 2 <br /> There are a number of turn -key programs, including one through PG &E, that have been <br /> developed to help agencies procure and install LED streetlights. However, Public Works <br /> staff has determined that completing the switch -over to LED streetlights under in -house <br /> management is more economical and efficient since turn -key programs include <br /> additional costs to manage the project. <br /> In 2013, the City changed almost 300 streetlights to LED during a trial period. This trial <br /> provided Public Works with a better understanding of the overall conversion process <br /> and the experience and knowledge necessary to efficiently manage the remainder of <br /> the LED streetlight conversion project to completion. The City's Environmental Initiative <br /> effort calls for the conversion of approximately 2,600 of the City's 5,000 street lights to <br /> LED. <br /> There is no clearly tracked amount the City pays to PG &E solely for street light use. <br /> However, LED lighting should reduce the energy use by as much as 50 %. Staff <br /> estimates that upon conversion of the 2,600 lights, the cost to the City for street light <br /> energy use will be reduced by about 40 %. Staff believes that street lights cost <br /> approximately $50,000 per month to operate and with the conversion the cost (given <br /> current PG &E rates) will be approximately $30,000. <br /> This recommended action will enable this conversion over the next two years, thereby <br /> meeting the City's goal five years early. The focus of the conversion program is in the <br /> industrial and commercial areas, as well as major thoroughfares. Residential areas <br /> generally use Low Pressure Sodium lights, which are a cost equivalent to the LEDs, so <br /> conversion for economic or energy savings is not recommended at this time. <br /> ALTERNATIVES <br /> Council can direct staff to research other options, or not to pursue this project at this <br /> time. <br /> FISCAL IMPACT <br /> Funds for the purchase of the LED street lights will come from the Municipal Energy <br /> Capital Outlay Fund (357- 71063). <br />