HomeMy WebLinkAboutMINUTES - 08172004 - D.2 10: BOARD OF SUPERVISORS Contra
FROM: MAURICE M. SHIU, PUBLIC WORDS DIRECTOR ,! Costa
DATE: August 17, 2004 r c County
my
SUBJECT: ACCEPT the Phase I Streetlight Acquisition Feasibility Study and AUTHORIZE the Public
Works Director, or designee, to proceed with the acquisition and assumption of maintenance of
the streetlights in unincorporated areas of the County from Pacific Gas &Electric. (All Districts)
Project#7394-6X5002
SPECIFIC REQUEST(S)OR RECOMMENDATIONS)&BACKGROUND AND JUSTIFICATION
RECOMMENDED A.C'TION:
ACCEPT Phase I of the Streetlight Acquisition Study; and
DECLARE the Board's intent to negotiate with PG&E for the acquisition of streetlights in the unincorporated
area; and
AUTHORIZE a California Environmental Quality Act review for acquisition of streetlights; and
DIRECT the Public Works Director to negotiate with cities, the formation of a Joint Exercise of Powers
Agreement(s) for acquisition and/or maintenance of streetlights; and
DIRECT the Public Works Director to report to the Transportation Water and Infrastructure Committee upon
conclusion of discussions with the cities; and
AUTHORIZE the Public Works Director,or designee, to execute a two(2)part contract with Harris&Associates
for services related to acquisition and,maintenance of streetlights. The contract term is August 17, 2004 through
August 16, 2006; contract amount for Phase 11 Component II A is $76,000.
"VLContinued on Attachment: X SIGNATURE:
(RECOMMENDATION OF COUNTY ADMINISTRATOR
RECOMMENDATION OF BOARD COMMITTEE
—APPROVE O'T'HER
SIGNATURE(S): �-
ACTION OF BOA ONe
OTItER_ , I hereby certify that this is a true and correct copy of an action
taken and entered on the minutes of the Board of Supervisors on
REFMRIW to the Internal Operations C+cctrtittee. the date shown.
VOTE OF SUPERVISORS ATTESTED:
UNANIMOUS{ABSENT ../— ) JOHN SWEETEN,CI of the Board of Supervisors and County
AYES: NOES: Administrator
ABSENT: ABSTAIN:
DE:cmm
G:\GrpData\SpDist\Board Orders\2004\08-17-04 BO By Deputy
Streetlight Acquisition-Harris&Assoc-aloe
Orifi.Div:Public Works(Special Districts)
Contact: Eileen Doten (3I3-2253)
cc; County Administrator
County Counsel
David Edmonds,Special Districts
File Folder
SUBJECT: ACCEPT the Phase I Streetlight Acquisition Feasibility Study and AUTHORIZE the Public
Works Director, or designee, to proceed with the acquisition and assumption of maintenance of
the streetlights in unincorporated areas of the County from Pacific Cas &Electric. (All Districts)
Project#7394-6X5002
DATE: August 17, 2004
PAGE: 2
FISCAL IMPACT:
There is no impact on County General Funds. Funding is derived from County Service Area L-100 (100%).
REASONS FOR RECOMMENDATIONS AND BACKGROUND:
The Public Works Department recently commissioned a study titled"Acquisition of PG&E Streetlights Feasibility
Study Phase I" (Study). The Study concludes that the County can provide better customer service with faster
response times at a lower cost than that which is currently being provided by PG&E. As part of the Study, the
County's consultant conducted interviews with several agencies that have already acquired and are now maintaining
the streetlights within their jurisdictions. Some of the agencies interviewed had formed partnerships with other
agencies to maintain the acquired streetlights. This strategy could be used in Contra Costa County.
There are numerous benefits that would result from acquiring and maintaining the street lighting system. Customer
service could be greatly improved because the jurisdiction can set a maximum time for response to outages and pole
knockdowns as well as implement a scheduled maintenance program. A pre-burn out lamp replacement program is
envisioned,where lamps are replaced just before the end of the rated life expectancy,resulting in a higher level of
customer satisfaction due to a significant reduction in the number of streetlight outages. Flexibility in lighting
choices will be increased. Agencies that rely on PG&E to provide maintenance have been extremely limited in the
types of lights that PG&E will allow into their maintenance program. Increased flexibility will allow communities
to enhance lighting aesthetics, creating unique identities,which is an important component of urban design.
It is believed that the County and cities working in a cooperative effort will help reduce both acquisition and
maintenance costs. At the Public Managers Association meeting on September 11,2003,the County Public Works
Director presented an overview and the findings of the Study. At that meeting,most of the cities within the County
expressed an interest in exploring joint acquisition and/or maintenance ventures. Additionally, many of the city
public works directors/city engineers were involved in the completion of the Study.
The contract with Harris&Associates encompasses Phase II of this project. The first component of the contract,II
A, involves a fact-finding process which is necessary before the actual acquisition and maintenance of the
streetlights can begin. After review of the proposals submitted for this work, the Public Works Department has
determined that it is best to immediately proceed with Component II A which involves continued outreach to the
cities, leading to the formation of Joint Exercise of Powers Agreement(s)for acquisition and/or maintenance. The
Public Works Director will bring any Joint Exercise of Powers Agreement(s)negotiated with the cities before the
Board for execution. Once the full extent of participation by the cities is known and formalized, cost can then be
determined for the second component of Phase II(known as Component II B),which includes the actual acquisition
process and the implementation of a maintenance management system.
CONSEQUENCES OF NEGATIVE ACTION:
The County could not acquire and maintain the street lighting system within unincorporated areas,nor could it form
joint acquisition and maintenance agreements with the cities. Without acquisition and maintenance of the
streetlights,customer service for streetlight outages and pole knockdowns cannot be unproved,nor could a potential
cost savings be realized. Additionally, lighting choices would remain limited.
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Contra Costa County Acquisition of PG&E Streetlights
Feasibility Study—Phase I
K ISI:
ARD
EXECUTIVE SUMMARY
c c> Ra s
This Preliminary Feasibility Report provides the County of Contra Costa (hereinafter
referred to as the County) with the information needed to evaluate the economic and
non-economic benefits of acquiring the PG&E owned streetlights in the County. The
report also identifies the advantages and disadvantages of forming a Joint Powers
Association with other cities within the County for the purchase and maintenance of
streetlights, and identifies successes and failures of other agencies that have recently
purchased their streetlights from the local utility company.
Based on the available inventory records, it is currently estimated that there are 6,696
streetlights in unincorporated Contra Costa County. Of the 6,696 streetlights, 94% are
owned and maintained by Pacific Gas & Electric (hereinafter referred to as PG&E) and
are billed under the LS-1 rate schedule that includes the costs of both energy and
maintenance. In May 2002, the County's utility expenditure for streetlights was more
than $57,000, not including the recent energy surcharge that amounts to an additional
$14,000. Most of the utility costs fall under the LS-1 rate schedule. If all 6,696
streetlights were on the LS-2A rate (that is just for energy excluding maintenance) the
County's energy expenditure would have been approximately $19,900; a $37,6001 (or
65%) cost reduction.
For it to be economically feasible for the County to purchase the streetlights from
PG&E, the reduction in monthly costs between the LS-1 and LS-2 rate schedules must
be greater than the monthly maintenance costs that would be incurred by the County
and the capital costs of acquiring the streetlights from PG&E.
Based on a survey of the agencies that have purchased their streetlights, the monthly
cost has ranged from a low of about a $100 per streetlight in Marin County, a 1966
purchase, to a high of almost $500 in the City of Oceanside who purchased their
streetlights in 1994. The most recent city to purchase streetlights from PG&E was the
City of Antioch purchasing their lights at average costs of$274 each in April 2000.
While it is difficult to predict the purchase cost per streetlight until an appraisal has
been completed, a cost of$245 per streetlight plus related legal and appraisal fees was
used. The $245 per streetlight figure was based on a survey of other agencies'
experience and records. Using $245 per streetlight, the total purchase cost for the
acquisition of the PG&E streetlights would be approximately $1,533,700. All, or any,
portion of these acquisition costs could be amortized. For example, the payback for a
ten-year term, at 6% interest and assuming no upfront expenditure, is approximately
$200,172 annually(less than $3 per month per light).
In addition to the capital cost for the purchase of the streetlights from PG&E, the County
Will also incur the on-going maintenance casts of the streetlights. The data analyzed as
a part of this study, indicates a projected maintenance cost of approximately $3.19 per
streetlight per month-or$256,323 annually.
Page 3 of 51
P:k$Projects\PGElfeasibiilWd-lnai FeasibiiitytStreet Light Acquisition Feas—Finat.doe
Contra Costa County Acquisition of PG&E Streetlights
Feasibili Stud --Phase !
Therefore, the total annual costs associated with the purchase of the PG&E owned
streetlights would be approximately $456,495. This compares to a rate decrease of
approximately $445,200 as a result of moving to the LS-2 rate schedule for all
streetlights within the County. In addition, at the end of the ten years term, the capital
costs for acquiring the streetlights would be paid in full and the County would have a
savings of$186,877 per year in today's dollars.
As part of determining the benefits of the County acquiring streetlights, it is important to
consider non-economic benefits as well as economic benefits. After interviews with the
County's Staff, currently overseeing the County's streetlight program, as well as
maintenance personnel at other agencies, it has become evident that the County can
provide more responsive services to its constituents than PG&E. A review of the
streetlight call log, maintained by the County's Special districts Section indicates an
increase in both the number of streetlight related trouble calls as well PG&E`s average
response time for trouble resolution over recent years.
The Countywide Streetlighting District, CSA L-100, was formed in 1979 to provide a
revenue source to pay for streetlights within the County. CSA L-100 expenditures are
approximately$1,000,000 per year including approximately$690,000 for utility services.
Because an annual assessment is levied on property owners within the District to pay
for streetlights, property owners have come to expect Contra Costa County to resolve
streetlighting problems. Property owners frequently contact the County before
contacting PG&E to report burned out streetlights or other problems. This perception of
the property owners causes the County,staff to respond, record, and follow-up on these
calf with PG&E on behalf of County constituents.
If the County purchased the PG&E currently owned streetlights, maintenance could be
done by either the Special Districts Section that currently handles the administration of
the County Streetlighting Program or by the Department of General Services or by
private contract(s).
Currently, the Department of General Services maintains all traffic signals within the
County as well, as the 436 County owned streetlights. The Department of General
Services also contracts with nine (9) ether cities for the maintenance of their traffic
signals. Based on the experience of the other agencies and Staff interviews at the
County, if the streetlight acquisition was made, the County would need to add at least
one (1) technician for maintenance in addition to one bucket truck. For safety reasons
it may be prudent to also hire an additional maintenance worker and an additional
service vehicle for traffic control.
Since many of the other cities within. the County have expressed an interest in
purchasing their streetlights based on the outcome of this study, an analysis was also
done for the required staffing to maintain the streetlights within the County, including
the streetlights within the incorporated cities. Although a detailed inventory of each
City's streetlights was beyond the best available data, using the total estimated number
of County streetlights, a crew of six (6) electricians, plus related support staff would be
required to maintain all the streetlights within the County.
Page 4 of v1
P:$Pmjects\PGEifeasibikty\Ftnal FeasibilitylStreet light Acquisition Fear Rnal.doc
Contra Costa County Acquisition of PG&E Streetlights
Feasibility Stud —Phase 1
If the other cities wanted to contract with the County for maintenance it would be
feasible to establish several maintenance centers to reduce travel time. Given the
estimated distribution of streetlights within the County, a maintenance center should be
established in both the East and Vilest County areas in addition to the current public
works yard. The exact staffing and location of these service centers would need to be
determined once the total number of cities that wanted to contract with the County was
established. Altematively, a central service center providing a scheduled pre-burn out
maintenance service, in addition to responding to service calls, could be established.
Either option would be based on the number of cities and the respective number of
streetlights acquired.
Based on the information presented in the study, including the assumptions regarding
the likely casts sof purchasing streetlights from PG&E, the County would provide a
higher level of streetlight service to citizens at the same or lower costs if they were
acquired.
Page 5 of 59
P:%ProjertsiPGElfeastbiiitytFin2i FeasibilitylStreet Light Acquisition PeriFinal.doe