HomeMy WebLinkAbout2017-007 - Public Utilities Commission Approvaljmf 2115117
RESOLUTION NO. 2017-007
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA AUTHORIZING THE EXECUTIVE DIRECTOR OF
THE PUBLIC WORKS AGENCY TO PURSUE CALIFORNIA
PUBLIC UTILITIES COMMISSION APPROVAL TO PURCHASE
APPROXIMATELY 7,800 STREETLIGHTS FROM SOUTHERN
CALIFORNIA EDISON; SUBJECT TO FURTHER APPROVAL BY
THE CITY COUNCIL OF A PURCHASE AND SALE AGREEMENT
BETWEEN THE PARTIES
WHEREAS, Southern California Edison (SCE) currently owns Eleven Thousand,
Three Hundred Seventy Three (11,373) LS -1 electric streetlight facilities located in the
City of Santa Ana; and
WHEREAS, the City has expressed a desire to purchase approximately Seven
Thousand, Eight Hundred Seventeen (7,817) of these streetlights from SCE; and
WHEREAS, SCE is willing to sell the streetlight system to the City, on the terms
and conditions set forth in a proposed Purchase and Sale Agreement that has been
prepared by the City and will be subject to separate approval by the City Council; and
WHEREAS, on August 4, 2015, the City Council engaged Tanko Lighting to
conduct a feasibility study that verified the value of the streetlights to be $3.7 million,
and which estimates the cost to upgrade the streetlights to LED lamps, to install
controllers, to repair or replace deficient streetlight poles, and to design the streetlight
system to adjust over/under lit areas at $8.6 million, resulting in a total one-time cost to
purchase and upgrade the streetlight system of approximately $12.3 million; and
WHEREAS, by taking ownership of the 7,817 streetlights, the City will have the
opportunity to lower costs, improve operations, and enhance services provided by the
streetlights to both the residents and visitors of Santa Ana, resulting in modernized
streetlights utilizing energy efficient LED fixtures which will significantly reduce energy
and maintenance costs; and
WHEREAS, financing the acquisition of the streetlights would incur an annual
maintenance cost of approximately $100,000, but with the upgrade to LED lamps and
its annual energy consumption savings of approximately $1 million, results in an annual
net savings of $900,000; and
WHEREAS, this purchase is subject to approval by the California Public Utilities
Commission and must follow procedures established by the CPUC, including a detailed
appraisal of the existing SCE -owned streetlight system based on a value set by the
Replacement -Cost -New -Less -Depreciation method; and
Resolution No. 2017-007
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WHEREAS, with, approval of this Resolution, the proposed Purchase and Sale
Agreement will be forwarded to the CPUC for review as part of its approval process;
and
WHEREAS, following the purchase of the streetlights by the City, the parties
intend to enter into a separate agreement granting a no -fee license to Southern
California Edison to attach certain wireless communication equipment owned and
operated by SCE to Ci:lty-owned streetlights.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa
Ana as follows:
Section 1. City staff is authorized to seek approval of the transaction by the
CPUC to proceed with the purchase of approximately 7,800 streetlights from Southern
California Edison; subect to future City Council approval of a Purchase and Sale
Agreement between the parties.
Section 2. City staff is authorized to forward the proposed Purchase and Sale
Agreement to the CPUC for review as part of the CPUC's approval process.
Section 3. City staff is authorized to issue a Request for Proposals to engage
a financial advisor to examine available financial programs to fund the purchase and
retrofitting of the acquired streetlight system.
Section 4. Upon approval by the CPUC, the financial model and options will
be presented to the City Council for further consideration and direction.
Section 5. The City will not be committed to the purchase until the terms of the
agreement are finalized, the CPUC approves the transaction, and the City Council
approves the financial model and Purchase and Sale Agreement.
Section 6. This Resolution shall take effect immediately upon its adoption by
the City Council, and the Clerk of the Council shall attest to and certify the vote adopting
this Resolution.
ADOPTED this 21s'day of February,2017.
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Resolution No. 20'17-007
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APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
(�Jahn M. Funk
Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
jmf 2/15/17
Benavides, Martinez, Pulido, Sarmiiento,
Solorio, Tinajero, Villlegas (7)
NOT PRESENT: Councilmembers None (0)
CERTIFICATE OF ATTESTATION AND ORIGINALITY
1, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached
Resolution No. 2017-007 to be the original resolution adopted by the City Council of the
City of Santa Ana on FebruarV 21_2017.
Date:
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Maria D. Huizar
Clerk of the Council
City of Santa Ana
Resolution No. 2017-007
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