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HomeMy WebLinkAboutCOD-025-18Clarftwn Corporate Services Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: June 18, 2018 Report Number: COD -025-18 Resolution: GG -362-18 File Number: RFP2018-1 By-law Number: Report Subject: Streetlight LED Replacement Turnkey Program Recommendations: That Report COD -025-18 be received; 2. That the proposal received from Ameresco Canada Inc. being the most responsive bidder meeting all terms, conditions and specifications of RFP2018-1 be awarded the contract for the provision of services for the Streetlight LED Replacement Turnkey Program; 3. That the funds required for this project in the amount of $3,200,000.00 (net of HST rebate) includes the construction cost of $2,898,193.01 (net of HST rebate) and other related costs such as design, contract administration, and contingencies of $301,806.99 (net of HST rebate) be funded by the Municipality as follows: Street Lighting — LED Conversion 110-32-324-83201-7401 $3,200,000.00 4. That all interested parties listed in Report COD -025-18 and any delegations be advised of Council's decision by the Corporate Services Department. Municipality of Clarington Report COD -013-18 Report Overview Page 2 To request authorization from Council to award Request for Proposal RFP2018-1 for the provision of Professional Services as required for the preparation of the Streetlight LED Replacement Turnkey Program. 1. Background 1.1 The work involves the replacement of our current cobra head style street lights which are high pressure sodium (HPS) lights with a much more energy efficient LED streetlight. This will be done to just under 5,800 streetlights throughout the Municipality of Clarington wherever we operate streetlights. This conversion will benefit the Municipality in several ways. The LED replacement will result in roughly a 40% to 50% reduction in energy use for the lights translating to savings of roughly $400,000 annually for electricity. There will also be a significant savings in streetlight maintenance as these lights have a life span of roughly 100,000 hrs (20 years) compared to roughly 20,000 to 25,000 hrs for an HPS light. This reduced maintenance will save the Municipality of Clarington approximately $150,000 annually. This program also includes a 15 year warranty on the lights. 1.2 The intent of the RFP was to secure the services of a firm to provide a Streetlight LED Replacement Turnkey Program. 1.3 A Request for Proposal (RFP) was drafted for the provision of Professional Services as required for the supply and installation of a Streetlight LED Replacement Turnkey Program as per specifications provided by the Engineering Services Department. The RFP was structured on the price -based two envelope RFP system. 1.4 RFP2018-1 was issued by the Purchasing Services Division and advertised on the Municipality's website. A notification of the availability of the document was also posted on the Ontario Public Buyers Association's website. 1.5 Twenty-four companies downloaded the RFP. 1.6 The RFP closed April 5, 2018. 2. Streetlight LED Replacement Turnkey Program 2.1 The RFP stipulated that bidders were to provide a description of Firm/Consulting team, key qualifications, firm profile, highlight of past service and experience of team members with projects of similar size, nature and complexity and a demonstrated understanding of the Municipality's requirements as well as the proposed lighting being proposed. Municipality of Clarington Page 3 Report COD -013-18 2.2 Four (4) submissions were received by the stipulated closing date and time. Refer to Attachment 1. Two submissions failed to meet the mandatory requirements and were deemed non-compliant. Two submissions were deemed complaint and were forwarded to the Evaluation Committee for the review and scoring as detailed within the RFP document. 2.3 The two (2) compliant submissions moved forward and their Technical portion of the Proposals were first evaluated and scored independently in accordance with the established criteria as outlined in the RFP. The evaluation team consisted of staff from the Engineering Department, Operations Department, Finance Department and the Purchasing Services Division. The scores were then jointly reviewed and agreed upon by all members of the evaluation committee during the consensus meeting. Some of the areas on which submissions were evaluated were as follows: • Lighting performance and reliability ■ Product Support and Delivery ■ Lighting functionality and appearance • Work plan and proposed schedule Proposed project team and resources • The Proponent's experience and qualifications Life cycle Energy Cost. 2.4 Upon completion of the evaluation, the evaluation team concluded the following two Proponents: Energy Ottawa and Ameresco Canada Inc., met the established threshold of 85% for Phase 1 and moved on to Phase2. 2.5 After further discussion, it was deemed by the evaluation committee that no presentation would be required to provide further clarification regarding proposals received. 2.6 The Pricing envelopes for Ameresco Canada Inc. and Energy Ottawa were opened and verified and in keeping with the terms of the RFP, the evaluation committee's recommendation is to award to the lowest bidder Ameresco Canada Inc. 2.7 Staff have reviewed the price submitted by Ameresco Canada Inc. and found it to be reasonable. 2.8 The RFP allowed the bidders to present value added options to the LED replacement program of which Ameresco Canada Inc. Canada Inc. submitted a proposal to also include a LED replacement program for our decorative light fixtures. Our decorative light inventory was not considered with the original RFP because of the higher cost involved with the decorative lights. Ameresco Canada Inc. Canada Inc. provided replacement fixtures equivalent in style to our existing fixtures which are present in some of our subdivisions and downtown areas. Although this was not originally Municipality of Clarington Page 4 Report COD -013-18 considered by staff because of the higher costs, with the very good pricing received for the regular streetlight replacement staff are recommending the value added pricing proposal for an LED replacement also be included in the award to Ameresco Canada Inc. Canada Inc. 2.9 As Ameresco Canada Inc. has not worked with the Municipality in the past reference checks were completed and were satisfactory. 3. Financial 3.1 The RFP allows for bidders to provide pricing in two different scenarios or options. One scenario was with the Proponent carrying the costs of the financing and the Municipality paying an annual fee. The other scenario was a straight cost to the Municipality without any financing built in. 3.2 After reviewing the overall cost of both scenarios the decision was for the Municipality of Clarington to debenture the project as this was the lowest overall cost. As approved in the 2018 budget, Council has authorized the Treasurer to make application to the Region of Durham for the necessary debenture. It is it the intention that the debenture annual payments be funded from the electricity and maintenance savings as a result of the conversion to LED. There may be a slight transition depending on timing differences between debenture issuance and conversion for savings being realized. The anticipated debenture is $400,000 below the budget projection. 3.3 The funds required for this project in the amount of $3,200,000.00 (net of HST rebate) includes the construction cost of $2,898,193.01 (net of HST rebate) and other related costs such as design, contract administration, and contingencies of $301,806.99 (net of HST rebate) be funded by the Municipality as follows Street Lighting — LED Conversion 110-32-324-83201-7401 $3,200,000.00 3.4 Queries with respect to the department needs should be referred to the Director of Engineering. 4. Concurrence This report has been reviewed by the Director of Engineering Services who concurs with the recommendations. 5. Conclusion 5.1 It is respectfully recommended that Ameresco Canada Inc. being the bidder meeting our threshold and demonstrating the lowest price be awarded the contract for the Streetlight LED Replacement Turnkey Program as per the terms, conditions and specifications of RFP2018-1. Municipality of Clarington Resort COD -013-18 6. Strategic Plan Application Page 5 The recommendations contained in this report conform to the Strategic Plan. Submitte y: Reviewed by: Z�z Marie Marano, H.B. Sc., C.M.O. Andrew C. Allison, B. Comm, LL.B. Director of Corporate Services CAO Nancy Tayl r, B A, CPA, CA. Director of Finance/Treasurer Staff Contact: David Ferguson, Manager of Purchasing, 2209 or dferguson@clarington.net List of interested parties to be notified of Council's decision is on file in the Corporate Services Department. Municipality of Clarington Attachment 1 to Report COD -013-18 Municipality of Clarington Summary of Submissions Received RFP2018-1 Streetlight LED Replacement Turnkey Program Bidder Ameresco Canada Inc. Energy Ottawa Black & Macdonald* LED Roadway Lighting* *Denotes submissions receive but were deemed non-compliant for failing to meet mandatory requirements. .