HomeMy WebLinkAboutAgenda Statement 1981/08/25 Item 7.,J ~.
COUNCIL AGENDA STATEMENT
Item ~
,,// Meeting Date 8"25--81
ITEM TITLE: Resolution ~0~6f`'Approving revised agreement with San Diego
Gas & Electric Co. for conversion of company-owned street
lights to high pressure sodium vapor
SUBMITTED gY;City Engineer (4/5ths Vote: Yes NoX )
On August 18, 1981, I presented to Council a report on a SDG&E
proposal to change the utility underground allocation form ula. A
secondary issue addressed in this report was the utility's
proposal to use and erground allocation fund s to convert SDG&E Co.
owned street lights to high pressure sodium vapor.
Council, however, postponed consideration of the report until the
August 26, 1981, Council conference and ordered staff to prepare
(for that date) a revised underground program.
We have been working with SDG&E staff to form ulate a revised
underground program which will provide for the street light
conversion program and the proposed allocation reduction. We
anticipate having such a revised program ready for the September
24, 1981, Council Conference.
Due to the com plexity of the allocation program, I believe it
appropriate to separate the formula change issue from the street
light conversion funding decision. In order to obtain a high
priority in the lighting conversion program by SDG&E Co., Chula
Vista must first authorize use of its allocated funds for such
conversion. This conversion will save the City approximately
$42,000 per year in energy costs. Therefore, it is my
RECOMMENDATION: That Council
1) adopt a resolution approving the revised agreement
(concerning use of allocated funds for conversions)
with San Diego Gas & Electric Co. and
2) postpone the presentation of the underground allocation
formula change from the Council Conference of August
27, 1981, to the Council Conference of September 24,
1981.
BOARD/COMMISSION RECOMMENDATION: Not applicable.
DISCUSSION:
On August I2, I980, by Resolution No. 10235, City Council
approved an agreement with San Diego Gas & Electric Co. for
conversion of company-owned street lights from mercury vapor to
high pressure sodium vapor. Per this agreement, SDG&E Co. was to
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Form A-113 (Rev. 11/79)
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Page 2, Item ~
Meeting Date 7-25-81
convert their 1,063 175-watt and 110 400-watt mercury vapor
street lights within the City. Conversion cost was to be borne
by the utility and was to result in a $42,000 per year energy
cost saving s to the City.
Due to financial problems, SDG&E Co. has postponed implementation
of the conversion program for about three years. SDG&E Co.,
however, proposed to revise the approved agreement to provide for
use of underground allocation funds to pay for their street light
conversion cost. Conversion would be accom plished during a two-
year period at an estimated total cost of about $230,000. The
primary benefit to the City would be the $42,000/year energy cost
savings (at total conversion) from the City budget.
To obtain this saving, the City will utilize approximately one
half of the 1981 allocation funds. Thus, we will be postponing
our underground conversion program by about half a year. This
postponement, however, will have no significant effect on our
overall program.
By prom ptly approving the proposed revised agreement, we will
assure a high priority on the SDG&E Co. street light conversion
program. The utility anticipates that their conversion program
will be performed on a first come first served basis. Therefore,
by being among the first agencies to approve an agreement, we
will be among the first to start realizing the energy savings.
Attached is a copy of the revised agreement for Council
information.
SDG&E officials will be present at this meeting and will be read y
to further describe the conversion program and to answer any
questions.
FISCAL IMPACT:
The conversion to hig h pressure sodium vapor will cost the City
no money. It will utilize about one half of the City's 1981
underground allocation funds which otherwise would have been used
typically to fund one underground conversion project of about
1320 lineal feet or one city block.
Upon completion of the conversion program, the City budget will
be red uced by approximately $42,000 per year.
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