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CC 2013-05-28_08.e. Purchase of Street Lights and Poles on East Grand AvenueFROM: STEVEN ADAMS, CITY MANAGER . ,�7 0 N A_F`3 d1r7;7_1 0I lox-11T/4 IN l�J RECOMMENDATION: It is recommended the City Council approve an expenditure of $30,000 for the purchase of seven LED street lights and poles on East Grand Avenue. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The cost for the light poles is estimated to be approximately $26,000. The additional cost of ordering LED lights is approximately $4,000. There is $50,000 in Local Sales Tax funds budgeted in FY 2012 -13 for the utility undergrounding project. Installation of LED lights will reduce ongoing utility costs. There will be minimal staff work involved with the installation of the light poles. BACKGROUND: The second phase of undergrounding utility lines and poles on East Grand Avenue is under way, which includes the area from Oak Park Boulevard to Elm Street. The project is paid for through Rule 20A credits provided by PG &E under a tariff program approved by the Public Utilities Commission. Costs are paid for through utility rates. ANALYSIS OF ISSUES: Lights and poles are not an eligible expense for Rule 20A credits. As a result, PG &E will offer to underground the lines and leave the lights mounted on the existing wood poles. In order to remove the poles, new lights and poles must be purchased through PG &E. PG &E will continue to own and maintain the poles. The City is invoiced monthly for power and maintenance. Staff recommends purchasing new poles to eliminate the unsightly wood poles. There are a total of seven poles that would need to be replaced. The proposed poles would be the "cobra head" style that would match the poles installed in the first phase between Highway 101 and Halcyon Road. Staff is recommending LED lights be installed in order to reduce ongoing energy costs. Item 8.e. - Page 1 CITT COUNCIL CONSIDERATION OF PURCHASE OF STREET LIGHTS AND .. EAST 1 i The following alternatives are provided for the Council's consideration: 1. Approve an expenditure of $30,000 for the purchase of seven LED lights and poles on East Grand Avenue; 2. Approve an expenditure of $26,000 for the purchase of seven traditional lights and poles; 3. Do not approve the expenditure of funds and direct PG &E to maintain the existing poles; or 4. Provide staff with other direction ADVANTAGES: The recommendation will replace existing unsightly wood poles with new attractive light poles on East Grand Avenue, as well as reduce ongoing energy costs. DISADVANTAGES: The recommendation will result in the expenditure of $30,000. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, May 23, 2013. The Agenda and report were posted on the City's website on Friday, May 24, 2013. No public comments were received. Item 8.e. - Page 2