Agenda, special meeting, first session — San Bruno City Council, November 14, 2023

"The City With a Heart"
Rico E. Medina, Mayor
Tom Hamilton, Vice Mayor
Sandy Alvarez, Councilmember, District 1
Marty Medina, Councilmember, District 4
Michael Salazar, Councilmember
AGENDA
SAN BRUNO CITY COUNCIL SPECIAL MEETING
November 14, 2023
5:30 PM
City Councilmembers and members of the public may attend in person at the San Bruno Senior Center, or by teleconference, via Zoom or telephone.

IN PERSON* MEETING LOCATION
San Bruno Senior Center
1555 Crystal Springs Road
San Bruno, CA 94066
*Please turn off all electronic devices before the
start of the meeting to prevent disruptions*
Zoom Link
https://sanbrunocagov.zoom.us/j/88979912676?
pwd=EFQv8Xktqs4g7GN5WlKP4A_66AnG_w.lGYRNCCy1wnk2RX8
Phone Line: 16465588656
Webinar ID: 889 7991 2676
Webinar Password: 073457
*Teleconference broadcasting is offered in the meeting via Zoom as a courtesy to the public.
**No public comment accepted via Zoom.

PUBLIC COMMENT: In person attendees who want to provide public comment, will be asked to fill out a speaker card and turn it into the City Clerk. Public comment may also be emailed to [email protected] . Comments received via email will not be read aloud during the meeting.

ACCESSIBILITY: In compliance with the Americans with Disabilities Act, individuals requiring special accommodations or modifications to participate in this meeting should contact the City Clerk’s Office 48 hours prior to the meeting at (650) 6167061 or [email protected] .
*Any disclosable public writings related to an open session item on a regular meeting agenda and distributed by the City to at least a majority of the City Council less than 72 hours prior to that meeting are available for public inspection at the City Clerk's Office at City Hall located at 567 El Camino Real, San Bruno, California during normal business hours. In addition, the City may also post such documents on the City’s Website at sanbruno.ca.gov/AgendaCenter .

1. CALL TO ORDER

2. ROLL CALL

3. PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
Individuals allowed three minutes. It is the Council’s policy to refer matters raised in this forum to staff for investigation and/or action where appropriate. The Brown Act prohibits the Council from discussing or acting upon any matter not agendized pursuant to State Law.

4. STUDY SESSION
Public comment will be requested after each topic in this section a. Receive a Presentation on Fund Balances and General Fund Reserves as of June 30, 2023
b. Conduct a Study Session to Receive an Update and Provide Feedback on the Regulated Output Streetlight Replacement Project

5. ADJOURNMENT – The next Regular City Council Meeting will be held on November 14, 2023 at 7:00 pm.

POSTING: I declare a copy of this agenda was posted at City Hall, 567 El Camino Real, San Bruno, among other locations in the city limits of San Bruno, on November 9, 2023, by 6:00 p.m.

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1. CALL TO ORDER

2. ROLL CALL

5. ADJOURNMENT – The next Regular City Council Meeting will be held on November 14, 2023 at 7:00 pm.

POSTING: I declare a copy of this agenda was posted at City Hall, 567 El Camino Real, San Bruno, among other locations in the city limits of San Bruno, on November 9, 2023, by 6:00 p.m. 2 of 27

City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: November 14, 2023
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: Nick Pegueros, Chief Financial Officer
SUBJECT: Receive a Presentation on Fund Balances and General Fund Reserves as of June 30, 2023
BACKGROUND:

The City Council adopted Fund Balance Policy ("Policy"), which provides guidelines to establish and maintain financial stability and operational sustainability by creating a Contingency Reserve and a Budget Stabilization Reserve. In addition, the Policy requires an annual report to the City Council on reserve fund balances and any informal loans from the General Fund to other operating funds. This report fulfills the Policy's reporting requirement.

DISCUSSION:

Over the past four months, City staff has actively worked on finalizing the City's financial records for the fiscal year ended June 30, 2023 (FY23), an annual process commonly known as the year-end close. This comprehensive six-month work effort ensures that financial transactions are accurately recorded in the appropriate fiscal year. Additionally, the year-end close procedures include updating calculations found in the notes disclosures of the Annual Comprehensive Financial Report (ACFR), for example, accounting for capital assets.

City staff is prepared to present the preliminary available fund balances, a critical aspect for maintaining adherence to the Policy's guidelines. While there is confidence in the preliminary fund balances, the City’s financial records are currently undergoing the annual audit by the City’s independent auditor. The auditor may identify correcting entries that impact the fund balances presented in this report. For example, the fund balances do not reflect any liabilities arising from a new accounting standard, referred to as GASB 96, which requires cities to evaluate financial liabilities that may exist for subscription-based information technology arrangements, for example, Microsoft licensing.

Available Fund Balance Calculations
Attachment 1 provides a summary of the available fund balance for each Fund, and includes the following columns:
· Beginning available fund balance, July 1, 2022 – This starting balance incorporates budgetary commitments as of June 30, 2022, along with purchasing commitments (encumbrances) that rolled over from FY22 to FY23.
· Revenue, Expenditures, and Net Revenue/(Expense) – These columns detail the actual activity for FY23. Net Revenue/(Expense) is calculated by subtracting expenditures from 3 of 27
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revenues. A positive figure contributes to the available fund balance, while a negative figure decreases it.
· Balance sheet adjustments – This column accounts for adjustments necessary to avoid double-counting carryovers and adjusts for other commitments or unearned revenue becoming available as of July 1, 2023. Notably, the balance sheet adjustment to Fund 006 - American Rescue Plan Act (ARPA) acknowledges that ARPA funds are fully available for appropriation in FY24.

Negative Available Fund Balances
A negative available fund balance indicates the necessity for one Fund to secure funds through an informal loan from another Fund to address daily operational cash flow requirements, such as payroll, vendor payments, utilities, etc.; similar to a credit card or line of credit. Unlike a true loan, however, an informal loan is a passive action that occurs by default, as necessary, with no repayment terms. Nevertheless, informal loans are efficient when there is reasonable assurance of repayment, especially if the informal loan is needed due to delays in grant reimbursement.

The alternative for a Fund with a negative available fund balance is to suspend operations until it collects sufficient revenue to repay the informal loan and fund future operations. The concern, therefore, is whether the borrowing Fund has the ability, in a reasonable amount of time, to repay the informal loan.

As of June 30, 2023, the General Fund had extended informal loans totaling $25.2 million across seven (7) funds, as outlined in Table 1.

Table 1. Informal Loans as of June 30, 2023
Informal Loans from the General Fund to:

Balance as
of 6/30/23
(millions)
CityNet Enterprise $20.2
Stormwater Enterprise 3.3
Federal/State Grant (2023 Winter Storms) 1.6
Impact Fees
Agency On Aging
Parking Enterprise
Central Garage Internal Service

0.1 Total $25.2
Of the informal loans outlined above, CityNet and Stormwater do not appear to have viable financial plans sufficient to repay the balance due to the General Fund. FEMA’s reimbursement for costs already incurred responding to damage caused by the 2023 Winter Storm Events is uncertain. As part of the 2024-25 budget process, specifically the City Council 2024-25 Goals and Priorities Study Session in January or February, City staff will recommend specific actions to address the informal loans.

Impact of Negative Available Fund Balances on General Fund Reserves The $25.2 million in informal loans discussed earlier leaves only $11.9 million of available fund

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balance to allocate to the General Fund reserves, with a target of $19.5 million. When assessing the status of the City reserves, Table 2., it is crucial to recognize that this report does not signify a sudden shift in San Bruno’s financial condition.

Table 2. General Fund Reserves as of June 30, 2023
Reserve FY24 Target
(millions)
June 30, 2023 Balance
(millions)
Contingency Reserve
$6.5
10% of General Fund operating
expenditures.
$ 6.5
Budget Stabilization
Reserve
$13.0
20% of General Fund operating
expenditures
$ 5.4
One-Time Revenue
Reserve
$0
Non-recurring revenue without an
intended purpose
$ 0
Total $19.5 $11.9
Overall Financial Health
The Fund Balance Policy emphasizes the General Fund due to its unrestricted revenues. In FY23, the General Fund showed a $5.3 million net revenue, primarily from tax growth and robust user fee revenue compared to FY22. As of the first quarter of the current fiscal year (Q1/24), General Fund revenues and expenditures are in-line with prior year activity for the same period.

For FY23 in the Special Revenue Funds, the City received $44.9 million in development agreement revenue. The revenue split across multiple funds, including $20.2 million in restricted impact fee funds and $24.7 million in unrestricted Community Benefit Fund payments. The Community Benefit Fund also received an unrestricted $10.3 million development-related payment in Q1/24.

The City took measures in calendar year 2023 to generate funds to offset costs in the Wastewater and CityNet Enterprise Funds. A five-year wastewater rate structure took effect on July 1, 2023, with 5% annual adjustments every July through 2028. Based on a comprehensive rate study, these rates support operational and capital infrastructure funding needs. On November 12, the City Council will conduct a public hearing to consider a five-year water rate structure. If approved, the water rate increases will provide funds for operations and critical infrastructure replacement and improvement, also identified in a comprehensive rate study.

While CityNet increased its rates in FY24, these rates, though sufficient for covering current operating costs, do not generate the funds required to make substantive repairs to the existing infrastructure. Additional CityNet rate increases are necessary if there is a decision to expand the broadband internet infrastructure or initiate repayment of the informal loan from the General Fund.

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In summary, the City Council's commitment to fiscal sustainability, as demonstrated in the recently adopted Fund Balance Policy, resulted in this report to help inform immediate and future financial decisions. City staff is confident that viable options to fully fund reserves exist and will present them for consideration in the FY25 budget process over the next six months.

Next Steps
The 2024-25 budget process is underway with work on the capital improvement program. City staff will provide City Council with the mid-year budget update on January 23, 2024, followed by the City Council’s 2024-25 Goals and Priorities Study Session in early February.

FISCAL IMPACT:

No City Council action is requested as a result of this report. City staff will return in the 2024-25 budget process with options and a recommendation to mitigate continued growth in the informal loans to the CityNet and Stormwater Enterprise Funds.

ENVIRONMENTAL IMPACT:

This report does not include approval of any activity that has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and is excluded from the definition of a “project” under Section 15378 of the State CEQA Guidelines.

RECOMMENDATION:

There is no required action.

ALTERNATIVES:

None.

ATTACHMENTS:

1. 2022-23 Year-End Actuals (Unaudited) & Available Fund Balances

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City of San Bruno
2022-23 Year-End Actuals (Unaudited) & Available Fund Balances As of November 9, 2023
Beginning
Available Fund
Balance
Ending
Available Fund
Balance
July 1, 2022 Revenue Expenditure Net Revenue/
(Expense)
Balance Sheet
Adjustments* June 30, 2023
General Funds
001 - General Fund 14,194,552 66,783,145 61,484,622 5,298,523 (996,395) 18,496,680 002 - General Fund Reserve 11,590,299 303,052 56,982 246,070 (377,144) 11,459,225 003 - One-Time Revenue 1,286,625 472,669 1,213,205 (740,537) - 546,088 004 - Capital/One-Time Initiative Reserve 7,706,353 357,866 7,796,703 (7,438,837) - 267,515 005 - Measure G District Sales Tax 3,416,510 4,041,677 6,110,000 (2,068,323) - 1,348,186 006 - American Rescue Plan Act 1,820,321 3,529,614 3,529,614 - 2,916,457 4,736,777 Informal loans to Other Funds** (18,914,760) - - - - (24,999,043) Subtotal 21,099,900 75,488,022 80,191,126 (4,703,104) 1,542,919 11,855,428 Special Revenue Funds
101 - Gas Tax 454,558 2,423,843 2,186,329 237,514 - 692,071 102 - Measure A Transportation Tax 904,475 1,244,148 1,210,000 34,148 - 938,622 103 - Street Special Revenue 109,372 926 106,000 (105,074) 4,298 104 - Measure W Transportation Tax 881,778 593,588 600,000 (6,412) - 875,365 111 - Police Asset Forfeiture 528,137 462,254 235,680 226,574 27,461 782,171 113 - Police Special Revenue 145,343 166,910 200,000 (33,090) - 112,252 121 - Federal/State Grants (74,235) 420,178 1,808,003 (1,387,825) (155,830) (1,617,890) 122 - Solid Waste/Recycling 330,906 185,065 69,278 115,788 (32,321) 414,373 130 - Impact Fees (closing in 2022-23) 155,441 3,726,967 3,882,407 (155,440) (22,449) (22,448) 131 - Housing In-Lieu Fees 3,381,954 433,301 40,000 393,301 - 3,775,255 132 - Agency On Aging 142,173 185,073 334,380 (149,307) - (7,133) 133 - Restricted Revenues 2,390,182 1,561,442 430,955 1,130,487 (81) 3,520,588 136 - Emergency Disaster Reserve 2,780,204 54,839 - 54,839 - 2,835,043 137 - Developer Project Contributions 16,976 170,986 171,428 (442) - 16,534 138 - Affordable Housing Impact Fee - 9,807,610 9,807,610 - 9,807,610 140 - Undergrounding In-Lieu 75,000 - - - - 75,000
160 - Community Facilities Impact Fee - 6,873,597 - 6,873,597 - 6,873,597 161 - Public Safety Facilities Impact Fee - 633,526 - 633,526 - 633,526 162 - General Gov. Facilities Impact Fee - 967,630 - 967,630 - 967,630 163 - Transportation Facilities Impact Fee - 5,684,490 - 5,684,490 - 5,684,490 164 - Utilities Facilities Impact Fee - 1,676,976 - 1,676,976 - 1,676,976 165 - Bayhill Specific Plan Devel Impact Fee - 4,335,604 - 4,335,604 - 4,335,604 166 - Community Benefit Fund - 24,713,578 - 24,713,578 - 24,713,578 190 - Disaster Recovery Fund 913,260 - 900,000 (900,000) - 13,260 Subtotal 13,135,524 66,322,532 12,174,459 54,148,072 (183,220) 67,100,372 Capital Funds
201 - Parks and Facilities Capital* - 34,927,969 22,178,602 12,749,367 (12,749,367) - 203 - Street Improvements Capital* - 12,015,724 3,450,746 8,564,978 (8,564,978) - 207 - Technology Capital** - 1,672,414 1,736,511 (64,097) 64,097 - Subtotal - 48,616,108 27,365,860 21,250,248 (21,250,248) - Enterprise and Internal Service Funds
611 - Water Enterprise* 44,174,738 17,997,543 16,172,483 1,825,060 (13,123,012) 32,876,785 621 - Stormwater Enterprise*** (115,799) 1,046,429 2,577,005 (1,530,576) (1,465,359) (3,111,733) 631 - Wastewater Enterprise* 45,916,502 21,311,614 15,364,452 5,947,162 (23,707,564) 28,156,100 641 - CityNet Enterprise*** (18,724,727) 8,362,453 9,819,530 (1,457,077) - (20,181,803) 651 - Parking Enterprise - - 2,490 (2,490) - (2,489) 701 - Central Garage Internal Service 193,986 713,120 971,084 (257,964) 8,431 (55,547) 702 - Facility Maintenance Internal Service 410,077 1,551,199 1,930,400 (379,201) (27,046) 3,829 703 - General Equipment Internal Service 2,865,218 78,917 421,873 (342,956) (318,048) 2,204,213 707 - Technology Internal Service 143,473 1,627,641 1,315,297 312,344 (7,292) 448,524 711 - Self Insurance Internal Service - 3,409,522 3,059,462 350,061 (350,061) - Subtotal 74,863,468 56,098,438 51,634,076 4,464,362 (38,989,950) 40,337,879 All Funds Total (excluding Informal Loans to Other Funds**) 128,013,652 246,525,100 171,365,521 75,159,579 (58,880,500) 144,292,722 *Balance sheet adjustments include non-cash items such as receivables, payables, encumbered and unencumbered carryovers, etc. **Informal Loans to Other Funds include all negative fund balances. 2022-23 (Unaudited)
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ATTACHMENT 1
City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: November 14, 2023
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre City Manager
PREPARED BY: Matthew Lee, P.E., Public Works Director
SUBJECT: Conduct a Study Session to Receive an Update and Provide Feedback on the Regulated Output Streetlight Replacement Project BACKGROUND:

The purpose of the study session is to receive Council’s feedback on the Regulated Output (RO) Streetlight Replacement Project. On February 8, 2022, the City Council adopted a resolution approving an amendment to the Adopted Fiscal Year 2021-22 Operating and Capital Budget to include initial funding for the design for the RO Streetlight Replacement Project and appropriated $500,000 from the General Fund Capital Reserve. The Adopted Fiscal Year 2022-23 Operating and Capital Budget CIP Project Summary is provided as Attachment 1.

On May 9, 2023, City Council adopted the Fiscal Year 2023-24 (FY2023-24) Priority Focus Areas and Strategic Initiatives. Strategic Initiative 7.1 is Explore alternative options to the RO streetlight system.

The main objective of the RO Streetlight Replacement Project is to permanently replace the remaining RO circuits with a more effective and reliable modern streetlight system. Due to the condition and service life of the antiquated RO system and the lack of any manufacturers for the transformer, it is in the best interest of the community and the city to take steps towards replacement. The City currently has approximately 295 streetlights on eight (8) RO circuits. This project is a proactive approach to minimize any future streetlight outages due to the condition of the antiquated RO system.

DISCUSSION:

On June 6, 2023, a contract between the City and a design consultant, Pearce Renewables was executed to evaluate multiple solutions as a permanent fix to replace the City’s remaining RO circuit streetlights. The project team performed an assessment and recommend replacement of defective streetlight poles within the RO circuit. The project team analyzed three options for a permanent solutions to replace the RO streetlights with the most efficient system. These options include:

Option 1: Parallel circuit streetlights
• This solution will enable most lights to function in case of any single outage.

Option 2: Solar powered streetlights
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6 3
7 •This solution is a new technology enabled by sun radiation and green energy approach.

Option 3: Parallel circuit and solar streetlights
•Solar panels with backup grid AC utility power
While continuously mitigating the outages and evaluating design options, City Operations and Maintenance staff simultaneously tested four (4) solar lighting products as temporary replacements with the assistance of various manufacturers. The memorandum in Attachment 2 provides a comprehensive status update and proposed next steps. Staff will make a presentation at the study session. With input received from this study session, staff will return to City Council to follow up after the design phase is completed and construction costs can be better estimated.

FISCAL IMPACT:

There is no fiscal impact with receiving this study session. This CIP project is funded under the Adopted Fiscal Year 2022-23 Operating and Capital Budget with a budget of $500,000 from the General Fund Capital Reserve allocated towards the design phase. In October 2023, staff applied for a Strengthening Mobility and Revolutionizing Transportation (SMART) Stage 1 Planning and Prototyping grant through the Office of the Assistant Secretary for Research and Technology (OST-R), U.S. Department of Transportation (USDOT or the Department) to fund the design effort. This will allow funds to return to the general fund if the grant is awarded.

No construction funding has been appropriated and would require future City Council budget appropriation.

ENVIRONMENTAL IMPACT:

The study session discussion of the Regulated Output Streetlight Replacement Project does not have the potential for creation of a significant environmental impact pursuant to the California Environmental Quality Act (CEQA), and as such are exempt from further environmental consideration per CEQA Guidelines Section 15061(b)(3).

RECOMMENDATION:

Conduct the study session to receive an update and provide feedback on the on the Regulated Output Streetlight Replacement Project.

ALTERNATIVES:

None.

ATTACHMENTS:

1. Adopted Fiscal Year 2022-23 Operating and Capital Budget CIP Project Summary

2. Memorandum

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PROJECT #: 60035 Total Project Budget: 500,000$
DEPARTMENT: Public Works

FUNDING SOURCES
Prior
Appropriations
Estimated
Carryover New Request
Total
Appropriations FY2024-25 FY2025-26 FY2026-27 FY2027-28
Total
FY2023-28
Budget
General Fund Capital Reserve 500,000$ 432,909$ -$ 432,909$ -$ -$ -$ -$ 432,909$ Total 500,000$ 432,909$ -$ 432,909$
-$ -$
-$
-$
432,909$

PROJECT APPROPRIATIONS
Prior
Appropriations
Estimated
Carryover New Request
Total
Appropriations FY2024-25 FY2025-26 FY2026-27 FY2027-28
FY2023-28
Budget
Design 500,000$ 432,909$ -$ 432,909$ -$ -$ -$ -$ 432,909$ Construction - - - - - - - - - Total 500,000$ 432,909$ -$ 432,909$
-$ -$
-$
-$
432,909$

Project Details
Initial Funding Year FY2020-21
Target Completion Year TBD
Expended as of July 1, 2021 $67,091
FY2023-24
Regulated Output Streetlight Replacement Project
Streets Capital
Streetlights
Project Description: On December 14, 2021, the City began experiencing streetlight outages within several neighborhoods which are on a Regulated Output (RO) circuit that is powered by a transformer, which sends a higher voltage to all the streetlights within the circuit. The City currently has 294 streetlights on eight (8) RO circuits. Due to the condition and service life of the antiquated RO system and the lack of any manufacturers for the transformer, it is in the best interest of the residents and the city to take steps towards moving to a parallel circuit system.

The scope of work for the Regulated Output Streetlight Replacement Project – Design Phase involves designing for the replacement of the existing RO circuit to a parallel circuit, assessment and replacement of defective streetlight poles within the RO circuit, coordination with PG&E for construction of new power sources, developing specifications for construction bidding, and providing support during the bidding and construction process. 385
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ATTACHMENT 1

MEMORANDUM

CITY OF SAN BRUNO
P ublic Works
DATE:

TO:

FRO
M:

VIA:

November 1, 2023
Honorable
Mayor and City Councilmembers
Matthew Lee P.E., Public Works Director
Rodrigo Macaraeg P.E, Senior Project Manager, Consor
SUBJE
CT: UPDATE ON CAPITAL IMPROVEMENT PROGRAM PROJECT #60035:

REGULATED OUTPUT STREETLIGHT REPLACEMENT PROJECT
PURPOSE:

This m
emorandum is to provide an update on the efforts made to move the Regulated Output (RO) Streetlight Replacement Project forward and to provide an update towards determining the most efficient permanent system to replace the remaining RO streetlights in the City of San Bruno (City).

This pr
oject is funded under the Adopted Fiscal Year 2022-23 Operating and Capital Budget1 (adopted on June 28, 2022), operating with a budget of $500,000 from the General Fund Capital Reserve allocated towards the design phase.

BACKGROUND:

In Janua
ry 2017, the City began an effort to convert twenty-four (24) streetlights on an existing RO circuit to a more reliable parallel streetlight circuit to address streetlight outages. The City Council awarded a contract to Zeiger Engineers, Inc. to complete the design for the Mills Park Neighborhood Street Light Conversion Project. The design was completed in June 2017 and project construction was completed in March 2018.

Sinc
e March of 2018 there has been twelve (12) more outages on the RO systems throughout the City that required significant repair. These outages involved burned wires, failed transformer, failed photo eyes, failed Kyle switches, pole fires, and failed inground stepdown transformers.

On Dec
ember 14, 2021, the City began experiencing streetlight outages in several neighborhoods because of the age and the way the existing streetlight circuits were wired. Akin to Christmas lights, losing connectivity in one location oftentimes resulted in a series of streetlights going out of power. Currently, the city has eight (8) RO circuits conducting power to approximately 295 streetlights on multiple streets as shown on Map #1 below. 1 https://www.sanbruno.ca.gov/ArchiveCenter/ViewFile/Item/156 11 of 27
ATTACHMENT 2

RO STREETLIGHT REPLACEMENT PROJECT UPDATE
November 1, 2023

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MAP #1: Base Map of Regulated Output (RO) Areas

The areas shaded in purple are the Regulated Output (RO) Areas The areas not shaded in purple are not RO Areas

Immediately after the initial outage was reported in December 2021, City staff worked closely with the City’s electrical contractor and Pacific Gas and Electric Company (PG&E) to investigate the cause of the power failure and to perform emergency repairs. It was determined that the streetlight outages were caused by a failed RO transformer. PG&E made repairs to the RO transformer on January 5, 2022. After the system was re-energized, additional failures occurred at the spliced wire connections located at the base of multiple poles. Given the age of the system and the current condition of the electrical wires, wiring at the base of failed poles were examined and repaired. Since then, multiple issues within the RO streetlight areas were still occurring annually due to the age of and the type of system. For additional safety measures during the streetlight outages, the frequency of police patrol visits was increased. Most recently

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RO STREETLIGHT REPLACEMENT PROJECT UPDATE
November 1, 2023

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on October 7, 2023, the 53 RO Streetlights in the Crestmoor/Trenton Area failed. Staff has been working diligently with PG&E to resolve the issue, however, was not able to get the lights back on by Halloween and are currently working to rectify the issue.

On February 8, 2022, the City Council adopted the resolution approving an amendment to the Adopted Fiscal Year 2021-22 Operating and Capital Budget2 to include seed funding for the design for the RO Streetlight Replacement Project and appropriated $500,000 from the General Fund Capital Reserve. The main objective of the RO Streetlight Replacement Project is to permanently replace the remaining RO circuits with the most effective and reliable system. This project is a proactive approach to preventing any future streetlight outages due to the condition of the antiquated RO system and due to the lack of manufacturers for the existing transformer.

On June 6, 2023, a contract between the City and the designers, Pearce Renewables (formerly known as Natron Resources, Inc.), was executed to evaluate multiple solutions as a permanent fix to replace the City’s remaining RO circuit streetlights. The scope of work includes evaluating a parallel circuit solution, a solar streetlight solution, and a combined solution of parallel and solar streetlights. The designers will also perform assessment and recommend replacement of defective streetlight poles within the RO circuit.

PROGRESS TO DATE:

While continuously mitigating the outages and evaluating design options, City Operations and Maintenance staff simultaneously tested four (4) solar lighting products as temporary replacements with the assistance of various manufacturers. The purpose of the testing process is to provide the design team with additional information to evaluate the most efficient solar lighting product. The City installed four (4) solar lighting products; Clear World Retroflex, Grid Shift Siege, Grid Shift Predator and Fonroche Smartlight, as shown in Map #2 and Figures 1-4 below. In addition to these four (4) systems, a fifth system from Hapco was recently installed on Heather Drive during the month of September, however, due to an extensive procurement process, fabrication delays from the manufacturer, and incorrect items being sent, this system is no longer going to be installed or considered as part of this project.

2 https://www.sanbruno.ca.gov/ArchiveCenter/ViewFile/Item/52

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RO STREETLIGHT REPLACEMENT PROJECT UPDATE
November 1, 2023

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MAP #2: Map of Solar Light Locations

Locations of the four (4) solar light products under evaluation In relation to Map #1, the four (4) solar lights products are in the purple shaded area #66

Figure 1.

Clear World Retroflex
Figure 2.

Grid Shift Siege
Figure 3.

Grid Shift Predator
Figure 4.

Fonroche Smartlight

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RO STREETLIGHT REPLACEMENT PROJECT UPDATE
November 1, 2023

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The four (4) solar lighting products were installed between August 2022 and June 2023. The initial installation was challenging as some of the units were not powering on when expected but later improved with minor programming adjustments by the manufacturer. Each product has its own challenges related to its efficiency, effectiveness, and economy (EEE). Pearce Renewables, the designer, is currently working to provide detailed information for the City.

While the designer is evaluating the four (4) installed solar light products, the most effective product will be installed in critical areas. Ten (10) more units of Grid Shift Predators will be installed at the locations shown in Map #3 below. Grid Shift Predators were selected since the product showed great reliability during harsh weather, remote monitoring functionality, and excellent customer service response by the manufacturer. The selection process will be further discussed under the “Actions By City Staff” section.

MAP #3: Map of Additional Ten Grid Shift Predator Lights

Location: Rollingwood Drive
In relation to Map #2, Rollingwood Drive is towards the North

The Grid Shift Predators’ remote access functionality and reliability will be tested on this stretch of Rollingwood Drive. This area was selected because of its challenging terrain, with a 40 ft. difference in elevation. These conditions will put the Grid Shift Predators’ wireless communications to the test, while maintaining connection to the current pilot test program shown on Map #2.

ACTIONS BY CITY STAFF:

City Engineering staff and the project team are exploring multiple permanent solutions to replace the RO streetlights by considering several design options including complete wire replacement, solar powered streetlights, a combination of PG&E/solar power, and other design alternatives.

In addition, City staff has been continuously testing and observing the four (4) solar powered streetlights since August 2022 for reliability, ease of use, ease of installation, procurement process, etc. while maintaining close communication with various manufacturers to solve any product challenges. The solar light testing process continued during the winter months when limited sunlight exposure was available to gauge viability of solar streetlights. This allowed City staff to gather more information about the performance of each product. The gathered information from the testing can be found in Attachment #2: Solar Lighting Performance Log.

The data from the log was then translated into the "Reliability Score” below to measure the performance of each solar lighting products:

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If unit does not turn on = 0
If unit turns on & off = 0.5
If unit turns on = 1
Off 0
On/Off 0.5
On 1
On
(Weather Condition)
Sunny 2
Foggy 3
Overcast 4
Rain 5

Based on the scoring system above, the corresponding scores for each unit are as follows:

Clear World
Retroflex
(Pole J223)
Grid Shift
Siege
(Pole J240)
Clear World
Retroflex
(Pole J213)
Grid Shift
Siege
(Pole J238)
Total Reliability
Score 223.50 352.00 249.00 354.50
Reliability Score
with Adjusted
Factor for
reliability after unit
was Installed
216.36 339.14 226.26 317.27

For a fair comparison, the Clear World units and Grid Shift units were used to evaluate reliability. Grid Shift Predator and Fonroche Smartlight units were tested for a shorter period and were not included in the evaluation.

As a result of the 212 inspections performed between 8/31/2022 to 8/19/2023, during different weather conditions and different times of the day, both Grid Shift Siege units were observed to be working at 87% and 88%, respectively, compared to the two Clear World Retroflex units with only 71% and 77%, respectively. The Grid Shift Siege units result indicate more reliability compared to the Clear World Retroflex units.

After months of solar light testing, City staff’s observations led to the ten (10) Grid Shift Predator units to be procured for further testing. The Grid Shift Predator has an option to remotely monitor and maintain the system through a web-based software called the Grid Shift Construction Connect. The City will be purchasing this software to fully perform the test on the ten (10) streetlights. The software is not limited to the control and access to the Grid Shift Predator; in the event that the City opts to test another product, the software may still be compatible with other solar powered streetlights.

OPTIONS FOR PERMANENT SOLUTION:

The following options were analyzed and evaluated based on the benefits and challenges of each system. A cost analysis remains to be completed based on the conditions of existing conduits and wirings. The following five evaluation criteria was used as part of the analysis:

1. Initial Cost (hardware, software, and constructability costs)

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2. Maintenance Cost (repair, general maintenance, maintenance of surrounding foliage, and replacement)

3. Safety and Security

4. Life Expectancy (solar panel and battery)

5. Energy savings and compliance with new net-zero carbon emissions The opti
ons for the permanent solution were:

Opt
ion 1: Parallel circuit streetlights
• This solution will enable most lights to function in case of any single outage.

Option 2: Solar powered streetlights
• This solution is a new technology enabled by sun radiation and green energy approach.

Option 3: Parallel circuit and solar streetlights
• Solar panels with backup grid AC utility power.

Based on the evaluation criteria, Pearce Renewables recommends using modified Option 2.

According to Pearce Renewables’ Light Evaluation & Recommendation Report (Attachment #1), a solar study will determine which streetlights receive adequate sunlight, where the City can implement solar-powered LED streetlights. For streetlights that do not receive sufficient sunlight due to environmental or architectural obstructions, a hard-wired connection to the grid using parallel circuits can be established. In addition, this option effectively combines the benefits of solar lighting with the reliability of grid connections only where necessary.

Pearce Renewables provided a rough construction estimate of $1,460,000.00 for Option 2 plus 15% contingency and $1,511,000.00 for Option 3 plus 15% contingency. The ROM includes the estimated cost for the construction cost only (material, labor, and equipment). A more detailed construction budget will be prepared in the future.

NEXT STEPS:

City staff to present the findings and request for direction towards a permanent solution from the City Council to proceed with the design, pending funding approval.

Attachment:

Attachment 1: Pearce Renewable’s Light Evaluation & Recommendation Report

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San Bruno City Light EvaluaƟon and Replacement RecommendaƟon.

Executive Summary

Pearce Renewables has evaluated 285 Regulated Output lighting fixtures and finds that a Solar powered light fixture with battery and PG&E utility backup is the best solution for the city for this project.

Introduction
The City of San Bruno (City) is located on the San Francisco Peninsula in San Mateo County, approximately 12 miles south of San Francisco, CA. The city currently owns and maintains approximately 2,100 streetlights and has requested an evaluation and recommendations for a portion of the existing lighting system, specifically for the Regulated Output (RO) lighting systems.

This report includes three options for review, which will allow the city to determine the best option for the RO portion of the City’s system.

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Overview
The majority of the City’s streetlights are on parallel circuitry, while approximately 295 lights are on eight (8) regulated output (RO) circuits.

Pearce Renewables has evaluated each RO pole condition and location as part of this report. In the past, the city has replaced its high-pressure sodium lights with Leo Tek LED streetlights, including on the RO circuits with the use of transformers, as part of their lighting upgrade plan.

The current Regulated Output system drawbacks include.
1- Fault Identification. Troubleshooting and maintenance of the light system is more challenging with single-circuit lighting. A fault of issue with one section of the circuit will affect the entire lighting circuit and require extensive diagnostics effort leading to increased down time.
2- Lack of flexibility. RO lighting does not cater to different preferences or specific lighting requirements in various lighting situations. Lighting pollution concerns. Lighting levels can be set too high for some areas without a way of adjusting for special needs.
3- Limited adaptability. RO lighting does not accommodate changing environmental conditions or varying needs. For instance, special events may require brighter or dimmer lighting that deviates from the regulated output and such adjustments would not be achievable.

Our final recommendation resolves these issues and will further reduce the dependency on the power grid and reduce the environmental footprint of the City.

AC Street lights

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Option 1

Standard Conventional AC Street lights installed with either underground or aerial wires. The traditional style of street lighting includes wired streetlights which are completely dependent on grid power. The installation process is complicated and expensive because of the amount of trenching and cable required to connect to grid lines. High pressure sodium lamps or metal halide lamps were typically used in the past for street illumination which contains mercury and is toxic to the environment. In addition, the lighting from these traditional streetlights is released sideways into the surroundings, which poses a high threat of light pollution.

Traditional style streetlights are slowly being replaced with newer LED fixtures, which require less maintenance and provide better energy efficiency. Lower wattages are now able to easily replace the old conventional style fixtures. Also, with new LED technology, optics can be used to provide task specific lighting on the ground instead of old-style refractors that disperse light in all directions. With conventional street lighting different types of fixtures have been traditionally used such as high-pressure sodium; However, with LEDs becoming more common now, the allowance of more decorative style fixtures is now available. LEDs typically consume much less power but produce the same lighting levels as older conventional high powered lighting fixtures. LED fixtures produce a better light quality and allow for better visibility than before, while the long life reduces the maintenance requirements.

Benefits of Conventional AC Street Lighting
 Reliable and Proven: Conventional AC Street lighting systems are reliable and time-tested. They have a long track record of providing consistent illumination.
 Dependable Maintenance costs: Due to the simplicity of the system, maintenance costs are typically low and reliably constant. Replacing bulbs and making minor repairs is usually straight forward.

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Challenges of Conventional AC Street Lighting
 Upfront investment cost for Brownfield Applications: Implementing this system in existing areas (brownfield applications) can be cost- prohibitive. The need for trench work and the replacement of outdated and failing cable and conduit systems can drive up initial expenses.  Installation complexity in brownfield applications: Installing conventional AC Street lights, especially in densely developed urban areas, can be challenging due to the need for extensive trenching and the rerouting or replacement of existing infrastructure. This can disrupt normal activities and increase installation costs and time.

Solar Street lights

Option 2

Solar Street lighting systems or Photovoltaic powered lights employ photovoltaic cells to produce the required energy coupled with batteries to store it. During the daytime, the PV cells charge the batteries. As the Sun goes down, a photocell switches on the streetlights. However, during times when the sky is overcast for extended periods, the batteries may not be sufficiently charged, and the lights will not satisfy the illumination requirement.

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Benefits of Solar Street Lighting
 Solar Street lighting systems offer several advantages, including reduced energy consumption, sustainability, and potential for smart city integration.

 No trenching required and easy placement: Since these lighting systems are without any hassle of wires, the installation of solar lighting systems is easy. This is one of the reasons why these lighting systems are an ideal system in difficult terrain.

 Ideal for parks and dark places: Solar lighting systems are efficient and cost-efficient. This makes these systems a great choice for lighting parks, playgrounds, and other darker areas for security.

 Resistant to blowouts and power outages: Solar lighting systems are not dependent on any kind of external source for electricity production.

It is therefore unlikely that a storm or short-term bad weather will affect the function of these lights. This is probably one of the reasons why Solar lighting systems are preferred in areas that experience storms and power outages often.

 Low Fixture Maintenance: Solar lighting systems are low maintenance.

Most of the systems come with a warranty of 25 years. With hardly any disturbance or human manipulation needed to get the solar lighting system going, these systems are perfectly capable of running flawlessly for years as long as the panels are kept clean and battery properly maintained.

 Smart City Infrastructure: Solar street lighting systems often incorporate the internet of Things (IOT) technology, turning streetlights into smart city infrastructure. This connectivity enables features such as remote monitoring, adaptive lighting control, and real-time data collection. It can enhance city management and sustainability efforts.

 Conduit Abandonment: All conduits and wires can be cut, capped, and abandoned in place. Other options might require the costly removal and replacement of wire and conduits if there is no space to rerun new conduits and wire segments. Given that the existing RO system

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conduits are old, failing, and undersized by today’s standards, this would make them unsuitable for reuse. They could simply be cut capped and abandoned in place.

Challenges of Solar Street Lighting

 Weather Dependent: Highly influenced by geographic and climatic conditions. Because of the reliance on the sun to provide energy, the local geographic climate and weather conditions directly affect the use of streetlights. If cloudy days are too frequent, it will affect the duration of the light output, Sites with low insolation require larger panels and batteries for the same lighting output, increasing cost.

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 Installation limitations: The lights must be installed where the panels can receive sunlight, or the panels must be installed separately from the light.
 Life cycle cost associated with batteries: Solar Street lighting systems rely on batteries to store energy for nighttime use. These batteries have a finite lifespan, typically ranging from 3 to 7 years, depending on factors like battery type, quality, and environmental conditions. As batteries age, their capacity and performance gradually degrade. The need for battery replacement multiple times throughout the system’s lifecycle is a significant maintenance challenge. These replacements can incur additional costs, including battery procurement and labor for installation, as well as the environmental impact of disposing of or recycling old used batteries properly.

Option 3

AC/DC Power Systems are a great solution for lighting the streets at night in this application. By combining the power of solar panels with backup grid AC utility power, these lights will provide bright and reliable lighting that is both efficient, cost-effective, and have a lower environmental footprint.

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AC/DC Hybrid Solar Street Lights are a great option for the City’s streetlights.

The AC/DC Hybrid Solar Street Lights feature a grid-tied inverter and battery storage system, which provides an alternative to conventional street lighting.

These solar streetlights have solar panels to tap solar energy during the day.

This energy is stored in the battery for use later. In addition, the streetlights are also connected to the PG&E grid, which serves as a backup power supply. When the battery power runs low, the hybrid streetlights pull power from the grid, to ensure a reliable and consistent supply of light. This technology can be found in many applications including lighting streets and highways at night. By using solar panels and grid electricity backup, these solar streetlights provide reliable lighting with lower down time and cost.

Customized programming allows these lights to efficiently shine as needed, creating cost savings.

Benefits of AC/DC Hybrid Solar Street Lighting

 Save on costs with prewiring. There is no intensive wiring work required to set up these lights. They use LED lights that emit bright illumination while saving energy consumption. The LED technology used in these lights is so efficient that they can supply light constantly for over four days.

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 Emergency Power storage: Besides lighting, these hybrid solar streetlights can be used in many other ways. Storing energy in the batteries means hybrid solar streetlights may also be used as emergency power sources. In this way, the heavy-duty battery and sturdy construction allow for use as an emergency backup in case of a power outage during storms or other events that might cause utility outages. The battery used in the hybrid solar streetlights has a capacity of 12 volts.

Challenges of AC/DC Hybrid Solar Street Lighting
 The underground conduit currently in place is dated and failing and undersized. The inability to effectively keep water out has been a factor contributing to some of the existing outages. Although conduits exist, new trenching would still be essential. There is a significant investment cost associated in trenching to tie into the grid power for backup.

Conclusion
Given the challenges associated with the existing underground conduits and the required trenching for the Conventional AC and AC/DC hybrid Solar Power System, a more feasible alternative solution for the city would be a modification of Option 2. After a solar study to determine which streetlights receive adequate sunlight, the city can implement solar-powered LED streetlights for those locations. For streetlights that do not receive sufficient sunlight due to environmental or architectural obstructions, a hard-wired connection to the grid using parallel circuits would be established.

This approach effectively combines the benefits of solar lighting with the reliability of grid connections only where necessary. It presents a cost- effective solution, allowing the city to harness solar energy to the maximum extent while ensuring that all areas are consistently illuminated.

In taking this approach, the city strikes a balance between sustainability and pragmatism, making efficient use of existing infrastructure while minimizing costs and maximizing the environmental benefits of solar energy.

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LED streetlights with integrated solar power and grid power backup options where absolutely needed are the best for this application and deliver reliable low-cost lighting with low maintenance and programmable settings for various needs and requirements. They will serve the city for years to come and provide a great example of the environmental stewardship values held by the city.

Pearce Renewables is ready to assist the city with any questions or discussions about these recommendations, and we look forward to assisting the city with this important infrastructure project.

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San Bruno City CouncilNovember 14, 2023

San Bruno City Council
November 14, 2023