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Staff Report
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Report To: General Government Committee
Date of Meeting: March 29, 2021 Report Number: FSD-017-21
Submitted By:
Reviewed By:
File Number:
Trevor Pinn, Director of Financial Services/Treasurer
Andrew C. Allison, CAO
Report Subject: LED Retrofit Budget Reallocations
Recommendations:
1. That Report FSD-017-21 be received; and
Resolution#: GG-269-21
By-law Number:
2. That the Director of Financial Services/Treasurer is authorized to reallocate up to
$235,000 from the "Various Streetlights Project" capital account to the "LED
Conversion Project" capital account to complete the necessary streetlight
conversions.
Municipality of Clarington
Report FSD-017-21
Report Overview
Page 2
The LED Streetlight Retrofit is nearing completion; however additional funding is required to
complete the projects. Staff have found funds in related capital accounts to reallocate to this
project to complete the retrofit work.
1. Background
History of LED Conversion Project Award
1.1 Council approved the Streetlight LED Replacement Turnkey Program in June 2018
through Report COD-025-18 to Ameresco Canada Inc.
1.2 Work has been underway since 2018 to complete the retrofit of the Municipality's
streetlight network to LED lights. The conversion to LEDs was intended to reduce
energy consumption and improve efficiency of the network through a reduction in
repair/maintenance needs.
1.3 The Municipality's 2019 to 2022 Strategic Plan identifies Environmental Sustainability as
one of the five strategic priorities. The conversion of streetlights to LED is consistent
with this strategic goal.
Project Overage
1.4 The LED Conversion Project requires additional funds to be approved in order to finalize
the project. It is estimated that $176,700 remains to be incurred to complete the project,
while this is approximately 5.5 per cent and would be covered under the Municipality's
Capital Overage Policy, as it is greater than $150,000 approval from Council is being
sought.
1.5 During the contract over 600 additional lights were identified in the Municipality's
inventory with many requiring additional fuse kits to meet current Electrical Safety
Authority (ESA) standards. As well, there are more decorative light fixtures than we had
in our inventory; modifications to the decorative lights included support arm
modifications and installation of backlight shields to prevent light trespass onto private
properties.
1.6 The above -mentioned additional streetlights, decorative lights and related modifications
contribute to the additional funding required to complete the conversion of the
Municipality's inventory.
Municipality of Clarington
Report FSD-017-21
2. Financial Implications
Page 3
2.1 The Public Works Department annually budgets funds for various streetlight
replacements, upgrades or in -fill. There are sufficient funds in this capital account to
fund the request to complete the LED retrofit. There are no additional tax levy or reserve
funds needed.
2.2 Since the implementation of the LED project in 2018, we have seen a decrease in our
hydro from $908,800 to approximately $673,200 in 2020 (which is being used to offset
the internal borrowing for the replacement work).
2.3 We have also seen a decrease in maintenance work from $335,500 to $87,400 during
that period mainly as a result of work being covered under warranty for those lights that
were replaced.
2.4 The project requires approximately $176,700 in additional funding; however
approximately $56,900 was expected to come from an Ontario rebate. Staff will continue
to apply for any rebates that are applicable; however, to ensure that funding is available
to complete the project the gross amount is being requested to be authorized.
2.5 The funds that are being reallocated to the LED Conversion Project were initially
approved for a purpose that could be seen to be related, namely streetlight
replacement. Staff are asking for the reallocation to ensure transparency on the use of
capital funds.
3. Concurrence
This report has been reviewed by the Director of Public Works who concurs with the
recommendations.
4. Conclusion
It is respectfully recommended that Council approve the reallocation of funds from the
"Streetlight Replacement" to the "LED Conversion" projects to ensure that the
investment made to date can be completed.
Staff Contact: Trevor Pinn, Director of Financial Services/Treasurer, 905-623-3379 ext. 2602,
tpinn@clarington.net
Attachments:
Not Applicable
Interested Parties:
There are no interested parties to be notified of Council's decision.