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CITY OF COLTON <br />AGENDA REPORT <br />For the City Council Meeting of January 16, 2001 <br />TO: Honorable Mayor and City Council <br />APPROVAL: Henry Garcia, City Manager <br />FROM: Thomas K. Clarke, Utilities Director <br />SUBJECT: Approval of Dispensation of Bidding Procedures, Amendment o� lectric <br />Utility Budget for the Current Fiscal Year, and Approval of a Professional <br />Services Agreement with Planergy International for the Installation of LED Lamps <br />on all City Traffic Signals <br />DATE: Wednesday, January 10, 2001 <br />BACKGROUND <br />Both the Federal and State governments have strongly encouraged the conservation of <br />electricity to mitigate the current supply crisis in California. Concern that rotating blackouts will <br />be necessary this coming summer have not diminished, but in fact have increased. The <br />investor owned utilities have already received rate increases and are asking for more. <br />Wholesale electricity prices are up from their usual 3 cents to 15 cents and higher. Electric <br />utilities across the state, in response to the Governor's recent direction, are striving to do <br />whatever they can as quickly as they can to address this situation. One measure among many <br />is the conservation of electricity. <br />ANALYSIS <br />Traffic signals in the City of Colton are estimated to use approximately 617,500 kWh annually. <br />Light Emitting Diodes (LED) signal lamps that use 90% less energy than existing incandescent <br />lamps are available that could reduce annual energy costs by $82,000. LED lights also have an <br />operating life up to ten times that of incandescent lamps, reducing maintenance costs. <br />Therefore, this project qualifies as an effective use of Public Benefit Funds. In the interest of <br />time and reduced City liability, staff obtained a quotation for a turnkey project manager. A <br />quotation of $305,000 was obtained from Planergy International, Inc. A copy of the proposed <br />Agreement is attached. <br />ALTERNATIVES <br />Staff could obtain additional quotations, however, the nature of the State's electrical emergency <br />and the growing backlog of orders (presently 4 months material lead time) prompts staff to <br />submit this request as expeditiously as possible. <br />Item #6 <br />u:\tim\council\agendareps\ledtrafficsig.doc <br />