Energy Efficient Street LightsCity of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406) 758-7000 Fax - (406) 758-7758
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REPORT TO: Honorable Mayor and. City Council
FROM: James H. Patrick, City Manager
SUBJECT: Energy Efficient Street Lights
MEETING DATE: May 2, 2005
BACKGROUND: Attached please find a memo from Jinn Hansz concerning Energy Efficient
Street Lights. There is an opportunity to replace our existing inefficient street lights utilizing
efficiency rebates which will pay roughly 43% of the cost leaving approximately $72,300 left to
fiend. We do have the ability to take an internal loan or B01 loan for this amount and pay it back
over the next five years with estimated savings cost as well as revenues in the light maintenance
fund.
FISCAL EFFECTS: Overall energy savings at the end of five years and reduced light
pollution.
Respectfully submitted,
Jaynes H. Patrick, City Manager
City of Kalispell Public Works Department
w Post Office Box 1997, Kalispell, Montana 59 3-d997 - Telephone 406 t58-7720, Fax 4 '75&-7831
MEMORANDUM
27 April 2005
To. lames Patrick, City Manager
From: James C. Hansz, P.E., Director of Public Works / City
Subject: Energy Efficient Street Lights
1n January I provided you with some information developed in response to the public's
interest in reducing the cost of City street lighting while improving its efficiency. I asked Fred to
re -visit that data and check again with FEC on costs and availability of the lighting program.
As you will recall, in January the dark skies advocates outlined their concerns at a City
Council work session. One of their concerns was with the old style inefficient street lights
installed throughout Kalispell. They indicated that new more efficient styles are available which
are less costly to operate. During the discussion they indicated FEC now had information on
these new lights. (FYI, several years ago we discussed changing out our street lights with Pacific
Power & Light, who were the electrical provider for a short time during a period of industry
change. That discussion led nowhere; PP&L stated they would not change the street lights
because they had no economic reason to do so and had no personnel to do the work.)
In January, Fred contacted FEC who now operate the local electric utility. FEC and
Bonneville Power do have programs with efficiency rebates which will pay roughly 43% of the
cost, approximately $53,502.00, to change over to more energy efficient lights. We checked with
FEC today and confirmed these programs are still available. The remaining 57% of the cost,
approximately $72,300, is the responsibility of the City. Once the lights are changed the monthly
energy charge per light will drop from $10.50 to $8.50, a savings of $24.00 per year per light.
This reduction totals $11,568/year for our 482 lights and calculates to an approximate six -year
payback of the $7s,200.00 energy efficiency investment. The $73,200.00 cost must be paid up
front to get the project moving. But, FEC has indicated the project could be approached in two
phases if budgeting is an issue.
memo0192045.doc
At the present time street light power costs are paid through an assessment on property. If
this investment is made we will need to identify a way to fund the up -front costs then use the
assessments to repay the funded amount. It may be possible for the City to lend itself the money
from some fund having surplus cash, or there may be a way to issue warrants similar to those
used to fund sidewalks. Another option may be a Board of Investment loan. These options
should be discussed with Finance to determine the best alternative to move the project forward.
I recommend we proceed with this project before these special utility subsidies are ended
by the utilities.
MEMORANDUM
January 21, 2005
To: James Hanusz, Director of P lic Works
From: Fred Zavodny,4'1y$ ct M
Re: Street Lighting Energy s t n Funds
The City Council was recently approached by concerned citizens regarding lighting issues in the
community. In particular the mercury vapor street lights were criticized for output and energy related
inefficiencies. I was asked to investigate the possibility of receiving an energy related rebatelincentive
to convert the mercury vapor lighting to high pressure sodium lighting.
Bonneville Power administers a rebate program for undertakings that result in a consequential kilowatt
hour savings. Replacing the mercury vapor lights with high pressure sodium lights is a qualifying
Bonneville Power rebate project. Flathead Electric Cooperative recognizes the importance and value of
this undertaking to the community and will also contribute significantly towards the rebate.
The proposed rebate calculations are as follows:
Cost to convert 482 175W Mercury Vapor lamps tol00W high Pressure Sodium lamps = $125,802
Bonneville Power and Flathead Electric Cooperative rebates — $ 53,502
Total conversion costs to the City after rebates = $ 72,300
The annual flat rate savings realized by converting the 482 mercury vapor lights to high pressure
sodium lights amounts to $11,568. This equates to an approximate 6 year payback based on the total
conversion costs to the City. All values are based on current equipment and labor costs.