LED Street Lights City Council Airport, Development Services, Public Works and Utilities and Transportation Policy Subcommittee | February 18, 2020 Agenda • Terminology • Background • History of LED street light installations in Chandler • Benefits • Reactions from residents • What other city’s are doing • Chandler Today • LED street light program options • Return on investment • Recommendations • Light Garden tour • Questions Terminology

• LED (Light Emitting Diode) An LED is an electronic device that emits light when an electrical current is passed through it. LED’s are electrically efficient and are now being used for street lighting applications to save power costs. • HPS (High Pressure Sodium) A sodium-vapor lamp is a gas-discharge lamp that uses sodium in an excited state to produce. High-pressure sodium lamps (sometimes called HPS lights) have been widely used in industrial lighting, especially in street lighting applications. • Correlated Color Temperature (CCT) indicates how “warm” or “cool” the light a particular lighting technology generates is. CCT is measured in Kelvin (K). A higher value (>5,000K) indicates a “cooler”/bluer light color; a lower value (<4,500K) indicates a “warmer”/more orange light color. • Illuminance indicates the light intensity on a surface per unit area. It is measured in footcandles (fc). 1 fc = 1 lumen/square foot. • Kilowatt-hours (kWh) is a measurement of energy. It is calculated by multiplying the power draw (wattage) of a device by the amount of time for which it is drawing power (e.g., a 100W light bulb that is on for 10 hours uses 100 x 10 = 1,000 watt-hours = 1 kWh). • Uniformity: The evenness of light distribution. Background • 29,500 street lights in the City • Annual Traffic Electricity Budget: $3.26 Million (90% street lights and 10% traffic signals) • 1980s - High Pressure Sodium (HPS) lighting started to be used • 2010 - Began using LED street lights • 2014 - Adopted LED as a City standard as part of yearly Development Manual update History of LED Installation

2010 Arizona Avenue (70 lights)

2010 ADOT converting valley freeways as part of new construction on freeway system

2012 APS service area within City (2,100 lights)

2014 All Signalized Intersections converted to LED

2014- CIP, development, and damaged pole 2019 repair (2,930 lights) Benefits • Crisp and uniform white light • Better visibility • Similar to moonlight • Enhances security and public safety • Lower energy consumption • 50%+ energy savings depending on fixture type • Less maintenance • HPS requires bulb replacement every 5 years • LEDs will last 20+ years Reactions From Residents • Light Spillover – addressed with resident on case by case basis • Correlated Color Temp – Optimized for color recognition and safety • Dark Sky – Lower wattages and better directed What other Cities are doing

• Glendale: First in State to relight the entire City ‐ 18,000 lights • Gilbert : Similar programs to Chandler, currently evaluating ROI for large scale exchange program. • Tempe: Partially completed 4000 of 11,700 Streetlights citywide • Mesa: Studying Dark Sky zones so nothing yet about full scale conversion of 38,000 street lights • Scottsdale: Replaced 25% of fixtures with more as funding allows • Phoenix: Completed contract with Ameresco for 92,000 lights in both SRP and APS service areas Chandler Today

• Current annual energy spend within the SRP service area for non-metered street lights = $1.23M / Year • 5,100 out of 29,500 street lights citywide are LED (18%) (2100 APS + 3000 SRP) • SRP changed rate structure for non-metered lighting in May of 2019 (Changed from 5 bins to 16 bins based on wattage) LED Street Light Program Options • Current CIP 26 Years (Approximately $450K/Year) • General Fund Capital: 1 Year ($11.1M) 3 Year ($3.8M/YR), 5 Year ($2.4M/YR) • Smaller $1M/Year General fund Capital investment while reinvesting annual electrical savings toward following years installations. 8 Years to complete. • Partner with outside vendor for supply, installation and financing similar to City of Phoenix program LED Options By The Numbers

Replacement Capital Street **20 Year Average Energy Time Budget / Year Lights/Year Energy Savings Savings/Year LED Streetlight Replacement Program 1 Year 3 Year 5 Year 8 Year With 1 Year $11.1M 25,000 $14.4M $720K Energy Savings Options Reinvestment 3 YearAverage # of Lights Installed$3.7M Per Year 8,333 $13.5M25,164 8,388$673K 5,033 3,146 5 Year $2.4M 5,000 $12.8M11,066,472 3,688,824 $642K2,213,294 Average Yearly Capital Cost 1,000,000 8 YearTotal Capital Cost$1.0M 3,125 $ $12.0M11,066,472 $ 11,066,472 $ $601K11,066,472 $ 8,000,000 (ConsidersTotal Energy Savings over during $3M Replacement in energy Period = savings reinvested$ 369,472over $the 1,341,7538 year $ period)2,151,045 $ 2,738,575 Total 20 Year Power Savings = $ 14,409,422 $ 13,469,597 $ 12,852,084 $ 12,023,080

CurrentAverage EnergyCIP Savings*$350K per Year‐ =$500K 950$ $6.5M720,471 $ 673,480 $ $326K642,604 $ 601,154 (26Average Years) Repair/Replace Labor and HPS Fixture Cost per year = $ 1,173,451 $ 1,173,451 $ 1,173,451 $ 1,173,451 Total Average Annual Savings = $ 1,893,922 $ 1,846,930 $ 1,816,055 $ 1,774,605 ROI for Capital Spent Based on Energy Savings (Years)= 15.4 14.5 15.4 12.6 *3% ROIEscalation for Capital Spent Rate/Yr Based on Total Included Savings (Years)= 5.8 6.5 7.5 7.5 **Electric rate increases not included Return on Investment

Replacement Capital Street ROI w/ Energy ROI w/Energy Time Budget / Year Lights/Year Savings Only +OPS Savings LED Streetlight Replacement Program 1 Year 3 Year 5 Year 8 Year With 1 Year $11.1M 25,000 15.4 Years 5.8 YearsEnergy Savings 3 YearOptions $3.7M 8,333 16.4 Years 6.0 Years Reinvestment Average # of Lights Installed Per Year 25,164 8,388 5,033 3,146 5 Year $2.4M 5,000 17.2Years 6.1Years 11,066,472 3,688,824 2,213,294 Average Yearly Capital Cost 1,000,000 8 YearTotal Capital Cost$1.0M 3,125 $ 12.611,066,472 Years $ 11,066,472 $ 7.511,066,472 Years $ 8,000,000 (ConsidersTotal Energy Savings over during $3M Replacement in Electrical Period = Savings reinvested$ 369,472 over $ the1,341,753 8 year $ 2,151,045period) $ 2,738,575

Total 20 Year Power Savings = $ 14,409,422 $ 13,469,597 $ 12,852,084 $ 12,023,080

CurrentAverage Energy CIP Savings*$350K per Year =‐ $500K 950$ 12720,471‐18 Years $ 673,480 $ 12642,604‐15 Years $ 601,154 (26Average Years) Repair/Replace Labor and HPS Fixture Cost per year = $ Depending1,173,451 $ 1,173,451 on Fixture $ 1,173,451 type $ 1,173,451 Total Average Annual Savings = $ 1,893,922 $ 1,846,930 $ 1,816,055 $ 1,774,605 3% EscalationROI for Capital Spent Rate/Yr Based on Energy Included Savings (Years)= 15.4 14.5 15.4 12.6 **ElectricROI for Capital rate Spent increases Based on Total notSavings included (Years)= 5.8 6.5 7.5 7.5 Recommendations • Propose reducing project schedule from 26 years by taking advantage of one of the four financing options to take advantage of rapid ROI • Initially focus on Arterials then Collector and local streets • Arterials ‐ 120 Watt 4000K fixtures Collectors ‐ 72 Watt 4000K fixtures Locals ‐ 35 Watt 4000K fixtures Visit to the Light Garden Questions ? Typical Color Temperatures

Candle Light 2100

HPS Street Light 2200

Incandescent Bulb 2400

City of Chandler Standard LED 4000

Moonlight 4100

Daylight 5250

Xenon Headlights 6200

Apple iPhone 6900

Flat Screen TV 7500

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