Title
Recommendation to Authorize the City Manager to Purchase Light Emitting Diode Lamps and Fixtures from Wesco Distribution, Inc. in an Amount Not to Exceed $243,833.92. (Public Works 310)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
Converting City of Alameda (City) street, parking lot, and park pathway lighting to Light Emitting Diode (LED) will decrease energy consumption, reduce operation and maintenance costs, and improve reliability and level of service. In 2015, 3,500 “cobra head” style street lights were converted to LED. The remaining 2,364 decorative and designated historic monument streetlights remain high pressure sodium or metal halide lamps.
As part of the fiscal year (FY) 2019-21 budget, the City Council approved $560,000 to supplement a potential $3,000,000 California Energy Commission’s (CEC) Energy Conservation Assistance Act Program Loan with a one percent interest rate fixed for the term of the loan. After further research, staff concluded the project was not eligible for the CEC loan due to legalities around committing the general fund to future years without a vote of the people.
To continue with this important energy saving project, staff restructured the project and will purchase the materials directly and manage the installation. This approach allows the City more discretion in material selection and better pricing through a cooperative purchasing contract. Staff is currently seeking approval to purchase LED lamps and fixtures in an amount not to exceed $243,833.92 from Wesco Distribution, Inc. who holds a contract with Sourcewell, a cooperative purchasing agency the City is party to (ID 926). Installation will be executed by a mix of in-house and contract labor so that the total project contractual costs, including this material purchase, is an estimated $570,000.
BACKGROUND
The City has approximately 6,400 street, parking lot and park pathway lights. In 2015, Alameda Municipal Power (AMP) converted 3,500 “cobra head” style street lights to LED. The remaining street lights are decorative or designated as Alameda Historical Monuments with high pressure sodium or metal halide lamps.
LED fixtures are a proven alternative to high pressure sodium and metal halide lighting as they are more energy efficient, have longer life spans, and produce higher quality light that renders truer colors.
On August 16, 2018, the Public Works Department issued a Request for Qualifications from Energy Services Companies (ESCO) for energy conservation design-build services. An inter-departmental panel was convened to interview the responsive firms and Schneider Electric, Inc. was selected as the most suitable firm to meet Public Work’s energy conservation needs. The City engaged in a professional services contract with Schneider Electric, Inc. to, among other services, conduct a street, parking lot, and park pathway lighting audit and retrofit project. To complete the LED conversion of the City’s street, parking lot, and park pathway lights Schneider Electric, Inc. estimated the project cost to be $3,566,467. Therefore, as part of the FY 2019-21 Capital Budget, staff sought and the City Council approved, $560,000 in upfront capital to supplement a potential $3,000,000 CEC Energy Conservation Assistance Act Program Loan with a one percent interest rate fixed for the term of the loan. After further research, staff concluded the project not eligible for the CEC loan due to legalities around committing the general fund to future years without a vote of the people. Schneider Electric, Inc. was compensated for their energy audit and project preparation services.
DISCUSSION
Staff significantly reduced the original estimated project cost by finding a far more cost effective LED lamp, made by Green Creative, for use in the tear drop and post top style historic streetlights. Although the Green Creative LED lamp only has a five-year warranty, versus the typical 10 years, the lumen output is comparable and only at a tenth of the cost ($30 versus $300). Replacing the LED lamp, versus the entire fixture, meets the project objectives of decreasing energy consumption, reducing operation and maintenance costs, and improving service reliability. However, these lights require a complete fixture replacement as the glass and metal housing continue to wear with age. Knowing a complete replacement is forthcoming, staff concluded the five-year warranty on the Green Creative LED lamp was justified. The cost of replacing just the LED lamp will pay for itself in utility savings in about a year. Future year savings can go towards the ultimate fixture replacement, estimated at $1,200 per fixture.
In addition to the nearly 1,700 LED lamp replacements, the project also includes nearly 700 complete fixture replacements of non-historic lights, including 60 solar lights on the Doolittle Drive pathway and at Main Street linear park. Recent advancements in technology have the solar panel and battery built into the fixture itself. This enables the use of existing poles, versus the requirement to mount new poles to support the weight of a separate panel and battery box, like those installed on Monarch Street at Alameda Point (AP). This new technology is still advancing and currently suitable for pathway versus roadway applications. This installations on Doolittle Drive pathway and Main Street linear park will be pilot areas to ensure adequate solar energy and battery storage. Following confirmation of suitability and performance, staff will look to replace the pathway lights on Harbor Bay Parkway with this solar option. Forty additional pathway lights, not suitable for solar, will also be replaced.
The current project will also replace fixtures in the residential neighborhoods of AP. Many of the lights in the Adaptive Reuse area are already LED and will be replaced with the decorative fixtures approved by the Planning Board when the backbone infrastructure is installed.
In addition to project cost savings from material selection and better pricing, the City will perform a portion of the installation of LED lamps while otherwise responding to service requests and other planned work. Although this will mean a longer construction period, Public Works will maintain a website tracking project progress and will notify neighborhoods in advance of the work. A contractor will be procured to install the fixtures at the replacement locations. Public Works is committed to having the project completed within six months from receipt of material.
Staff is currently seeking approval to purchase LED lamps and fixture replacements to address 2,217 lights from Wesco Distribution, Inc. who holds a contract with Sourcewell (Exhibit 1), a cooperative purchasing agency in which the City participates (ID 926). The purchase price for the materials is $243,833.92, as detailed in Exhibit 2. The Harbor Bay Parkway pathway lighting and bollard pathway lighting will be addressed in a subsequent phase.
The current project will reduce emissions from street, parking lot, and park pathway lighting by 213 metric tons of carbon dioxide emissions annually and save $100,000 per year in utility costs.
ALTERNATIVES
• Approve LED material purchase as quoted.
• Approve amended LED material purchase.
• Do not approve material purchase.
FINANCIAL IMPACT
This project is budgeted in the Public Works Department’s Capital Improvement Project (CIP) Program (96008), Street, Parking Lot and Park Pathway Lighting with funding from the General Fund in the amount of $740,000 (Fund 310).
|
FY 2020-21 Street, Parking Lot and Park Pathway FUNDING |
|
Funding Source |
Approval |
Budget |
|
General Fund |
FY 2020-21 Mid-cycle |
$740,000 |
|
TOTAL |
|
$740,000 |
|
LED CONVERSION PROJECT BUDGET |
|
Project Tasks |
Expenses |
|
Materials Phase 1 |
$243,833.92 |
|
Materials Phase 2 |
$ 55,000.00 |
|
Construction Capital Phase 1 |
$220,000.00* |
|
Construction Capital Phase 2 |
$ 55,000.00 |
|
TOTAL |
$573,833.92 |
*Estimated contractual support for installation. The remainder of install will be done by in-house maintenance staff.
Base Reuse (818003), Bayport Municipal Service District (0278) and Marina Cove Maintenance (0276) will contribute their respective share of the project as LED replacement are eligible expenses. For phase 1, encumbrances for material and contractual services will reflect a 2.8% allocation to 818003, 3.8% to 0278 and 1.4% to 0276.
For FY 2020-21, if the LED conversion project is complete under the stated budget, there will be approximately $170,000 in 96008 to complete street and park pathway pole replacements and service conduit repairs.
Staff applied for an energy savings rebate through AMP. Any rebate obtained will be deposited back to 96008 to offset the General Fund contribution.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action does not affect the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt pursuant to CEQA Guidelines Section 15301(c), Existing Facilities.
CLIMATE IMPACTS
Energy from City street, parking lot, and park pathway lighting accounts for over 658 metric tons of carbon dioxide emissions annually. This LED conversion project will reduce emissions from street, parking lot, and park pathway lighting by 213 metric tons of carbon dioxide emissions annually. This is equivalent to 1,047,153 miles driven by an average passenger vehicles or equivalent to 47,485 gallons of gasoline usage.
RECOMMENDATION
Authorize the City Manager to purchase light emitting diode lamps and fixtures from Wesco Distribution, Inc. in an amount not to exceed $243,833.92.
CITY MANAGER RECOMMENDATION
The City Manager recommends approval. The City Manager wishes to highlight the focus on reducing emissions through the purchase of the light emitting diode lamps and implementation of the project.
Respectfully submitted,
Erin Smith, Interim Public Works Director
By,
Erin Smith, Interim Public Works Director
Financial Impact section reviewed,
Annie To, Finance Director
Exhibits:
1. Contract
2. Quote
cc: Eric Levitt, City Manager