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PUC details $16M LED streetlight conversion, micro‑LBE contracts and job targets
Summary
The SFPUC presented plans to convert city‑owned streetlights to LEDs with a $16 million program, a multi‑contract procurement approach (asset survey micro‑LBE contract and several micro‑LBE installation contracts), an estimated 13‑year payback and hiring targets for disadvantaged residents via workforce programs.
At the May 11 meeting the San Francisco Public Utilities Commission outlined a citywide program to replace overhead streetlights with LED luminaires and add controls, with a program budget estimated at $16 million and a January 2012 automation target.
Barbara Hale, assistant general manager, said the PUC owns about 17,600 streetlights and estimates another 1,000–4,000 lights are owned by other city departments; staff will conduct an asset survey (micro‑LBE professional services contract, ~$100,000, bids due May 13) and expects to stagger about 8–10 micro‑LBE installation contracts (~$400,000 each) to install roughly 17,000–20,000 new LED luminaires. “We're taking that as an opportunity ... to issue a micro LBE professional services contract,” Hale said, explaining that bidders will be required to commit to hire field survey workers from the city's workforce development program.
Hale said the project’s estimated payback is about 13 years when measured against avoided electricity and operations and maintenance costs; the analysis used the internal avoided cost (stated in the presentation as 8.82¢ per kilowatt hour) and did not assume revenue from selling unused power. Commissioners questioned the payback assumptions and the pace of technology change; Hale acknowledged future technology improvements but said LEDs currently offer known, immediate savings and operational benefits.
Staff also described workforce opportunities tied to the program: the streetlight asset survey and multiple installation contracts are designed as local small‑business contracting opportunities (micro‑LBEs) with requirements to hire from city workforce programs. The PUC expects to manage luminaire inventory centrally and deploy contracted crews through the PUC streetlight yard to standardize installation practices.
The commission discussed financing and the possibility to pair program financing with federal and state clean energy bond vehicles; staff later asked the board to authorize reimbursements and seek low‑cost financing to support the LED program.
