HomeMy WebLinkAboutWD-57-92 THE CORPORATION OF THE TOWN OF NEWCASTLE
REPORT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File# TID
Date: JUNE 15, 1992 Res. XI,6�a -. 017-1-�%
Report#: File #; By-Law#
Subject: STREET SMART LIGHTING PROGRAM
Recommendations:
It is respectfully recommended that the General Purpose and
Administration Committee recommend to Council the following:
1. THAT Report WD-57-92 be received;
2 . THAT Ontario Hydro be requested to formally convey the street
lighting systems owned by Ontario Hydro in Hampton and
Enniskillen to the Town for the cost of One Dollar ($l) ;
3 . THAT the Treasurer be authorized to make application to
Ontario Hydro for an interest-free loan under the Street Smart
Lighting Program; and
4 . THAT upon receipt of approval of the grant from Ontario Hydro,
tenders be called for the conversion of the Town's street
lighting system to high pressure sodium lights .
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REPORT
1.0 ATTACHMENTS
No. 1: Correspondence from Ontario Hydro
No. 2 : Outline of Two Financing Options
2.0 BACKGROUND
2 . 1 In the fall of 1990, Ontario Hydro introduced to all
municipalities, an incentive program called the `Street;-Smart
/2 i l J
ly,
REPORT NO. : WD-57-92 PAGE 2
Lighting Program' . The purpose of this program was to assist
municipalities in reducing energy costs for street lighting
through energy efficiency.
2 .2 Under this program Ontario Hydro provides financial assistance
for the conversion of a municipality's street lighting system
to a High Efficiency System. The amount of assistance
provided is equal to 25% of the `Total Project Costs ' and can
be in the form of a cash grant or an interest free loan.
2 . 3 In order for a municipality to participate in this program,
the municipality must meet the following criteria:
- Must make application to Ontario Hydro and complete the
street lighting conversion project no later than December
1994 .
- Must convert 100% of the municipality's street lighting
system to high efficiency lights; this includes the
conversion of all incandescent, florescent, and mercury
vapour lamps to either high or low pressure sodium lamps .
- Included with the application must be an Inventory of the
current lighting system, a Detailed Work Plan and Works
Cost Estimate
- All conversions should meet the Illuminating Engineering
Society of North America (IES) recommended lighting
levels .
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- All ballasts containing PCB's must be disposed of
according to the requirements of the Ministry of the
Environment.
. . . /3
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REPORT NO. : WD-57-92 PAGE 3
Any street lighting systems owned by Ontario Hydro are
eligible for conversion as part of this program.
3.0 OWNERSHIP OF THE EXISTING STREET LIGHTING SYSTEM
3 . 1 A Street Lighting Inventory was recently completed by Town
staff. The inventory documented the ownership of all street
lights within the Town and such details as location, spacing,
lamp and pole types .
3.2 The Town's Street Lighting System is comprised of 2,762 street
lights . The Town inventory indicates the existing street
lighting system is not totally owned by the Town. The street
lighting systems in Hampton and a portion of Enniskillen
(totalling 94 street lights) are owned by Ontario Hydro.
However, the Town is responsible to Ontario Hydro, for the
costs of energy, maintenance and the `Capital Cost Recovery'
of these systems. A summary of the Street Lighting Inventory
is shown below outlining the ownership and the number of
street lights within the Town.
STREET LIGHTING INVENTORY
Ownership Number of Street Lights
Town of Newcastle 2,668
Ontario Hydro 94
3 .2 As an additional incentive, Ontario Hydro has proposed to
transfer to the Town, the street lighting systems owned by
Ontario Hydro in Hampton and Enniskillen for the cost of One
Dollar ($1) , provided that the Town agrees to convert these
systems to high efficiency lamps as part of the 'Street Smart
Lighting Program' (see Attachment No. 1) .
3 . 3 The maintenance charges from Ontario Hydro to the Town for the
Y ,
street light systems in Hampton and Enniskillen are comparable
. . . /4
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REPORT NO. : WD-57-92 PAGE 4
to maintenance costs for the balance of the Town owned system.
In addition however, the Town is billed a `Capital Cost
Recovery' charge for the financing of the original
installation of the systems in Hampton and Enniskillen. The
annual charge for Capital Cost Recovery is approximately
$1,967 .
3. 4 The Town's assumption of the Hampton and Enniskillen street
lighting systems would result in an annual cost saving of
$1, 967 and provide better control and uniformity of
maintenance and operation for the entire street lighting
system. It is, therefore, recommended that the Town takes
this opportunity and assumes the ownership of the Hampton and
Enniskillen systems and includes these systems as part of its
street light conversion program.
4.0 STREET LIGHTING CONVERSION PROGRAM
4. 1 The proposed Street Lighting Conversion Program outlined in
this report is based on the Town's ownership of all street
lights, including the Hampton and Enniskillen street lighting
systems .
4 .2 There are 1,467 units requiring conversion to High Pressure
Sodium, consisting of 1,358 Mercury Vapour and 109
Incandescent units . In addition, in order to maintain the
Illuminating Engineering Society of North America's (IES)
recommended lighting levels referred to in section 2 .3 of this
report, an additional 104 High Pressure Sodium street lights
are required for installation as part of this program.
5.0 COST ANALYSIS
5 . 1 Project Costs
The estimated project costs are as follows :
. . .5
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REPORT NO. : WD-57-92 PAGE 5
Convert Existing System $466,475. 00
Infilling (Fixtures, etc. ) 39,050. 00
(Additional Poles) 17,750. 00
Set-up of PCB Storage Area 19,000 . 00
Sub-total 542,275. 00
5% Engineering 27, 113 . 75
7% Contingencies 37,959 .25
G.S.T. 37,959 .25
TOTAL IMPLEMENTATION COSTS $645,307 .25
IMPLEMENTATION COSTS ELIGIBLE
FOR 25% ONTARIO HYDRO GRANT* $589,598. 00
25% ONTARIO HYDRO GRANT $147,399 .50
*The total costs of the project include the cost of ten (10)
new 25 , aluminum poles, nineteen ( 19) new 40' wooden poles,
and G.S.T. which are not eligible for a 25% grant from Ontario
Hydro.
5 .2 Estimated Annual Cost Savincrs
The estimated cost savings by converting the street light
system to high pressure sodium lights are as follows:
Existing System New Svstem Difference
Energy $166,032 $133,839
$ 32, 193
Maintenance 109,000 40,000 69, 000
Pole Rental 942 0 942
Capital Recovery 1,967 0 1, 967
PCB Storage 0 1,500 ( 1,500)
TOTALS $277,941 $175,339 $102 , 602
ROUNDED: $103,000
5 . 3 The benefits of the Energy Efficient System are:
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improved illumination to levels providing better
uniformity distribution across the entire
municipality
REPORT NO. : WD-57-92 PAGE 6
enhanced safety and security and an aesthetically
more pleasing driving environment
reduction in operation costs for energy and
maintenance and in stocking of inventory.
6 .0 FINANCING
6 . 1 Two (2) options have been examined regarding the financing of
the project:
1: Town-financed; or
2: Ontario Hydro loan - 0% interest.
These two (2) options are detailed on Attachment No. 2 . Based
on the analysis, it is recommended that Option 2, Ontario
Hydro Loan at 0% interest, be selected.
Respectfully submitted, Recommended for presentation
to the Committee,
Walter A. Evans, P.Eng. , Lawrence E. K s, ff,
Director of Public Works Chief Adminis ra�tive Officer
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Ma Marano, H.B.Sc . , AMCT,
Treasurer
ASC*WAE*ph
June 22, 1992
Attachment
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339 Westney Road South,Suite 101,Ajax, Ontario L1 S 7J6 OCT 3 199a
339, Westney Road sud, bureau 101,Ajax(Ontario)US 7J6 TOWN OF NEWCASTLE
September 21, 1990 MAYOR'S OFFICE ;
508.01
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Town of Newcastle ,V v OF +vote and File��+
„F1 C NEWCASTLE I
Attn: Mrs. M. Hubbard Discuss with
Mayor
PSe ARSw�Br
40 Temperance Street -- OCT 16 ���0 Retum m w
Bowmanville, Ontario tmrostiPate and Report i
L1C 3A6 i<<--10
C-
pU ' �� Take r�ppropdate Action
Dear Mrs. Hubbard:
Your Invitation To:
Ontario Hydro's
Street-Smart Lighting Program
Ontario Place
Friday October 26, 1990 @ 11.00 a.m.
This is your invitation to the launch of our new Streetlighting Conversion Program.
The program offers a 25% cash grant to the municipality or an equivalent interest free
loan for the project costs of retrofitting existing energy inefficient streetlights.
The benefits of the program are that the quality of the streetlighting in your community
is improved while energy and operating costs are reduced.
Even if your municipality has a streetlight conversion project already underway, this
program will assist you in converting the remaining lights.
Ratepayer relations are also improved:
1. You are seen as a leader in implementing energy efficiency measures in the
Public sector.
2. Longer lamp life means fewer burnouts, therefore fewer complaints.
In addition:
1. Maintenance schedules maybe lengthened.
2. Uniform lamp inventory reduces costs.
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3. New luminaires may be mounted on existing poles.
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ATTACHMENT N0.
WD-57-92,
elephone Ajax 686-9802 Telephone Ajax 686-9802
- 2 -
In our pilot project involving 82 municipalities, the results achieved were impressive:
88% of existing streetlight fixtures were converted
Electric power consumption reduced by 2600kW
Grants totalling $2,022,265.00 were paid out to the
local municipalities by Ontario Hydro.
Over the next four years $30 million in streetlighting incentives are available to help
reduce power consumption and make Ontario a more electrically-efficient Province.
If you are considering carpool arrangements, invitees from the municipality generally
include the Mayor or Reeve, Utility Commission Chairman, Utility Manager and Director
or Manager of Public Works.
I look forward to meeting you at Ontario Place on October 26. If you need further
information about the event, contact Wayne Taggart or Dave Akers at (416) 686-9802.
Yours truly,
J.C. Brown, P. Eng.
Customer Energy Services Manager
Durham Field Office
Central Region
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(09073)
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TOWN OF NEWCASTLE
STREET SMART PROGRAM
OPTION 1 - TOWN FINANCED
Total project cost $ 645,307
Less: amount not eligible for subsidy
(poles & GST) 5( 5,709) *
Project cost - eligible for subsidy 589,598
ONTARIO HYDRO SUBSIDY 25% (147 ,400)
One time payment 442, 198
Opportunity cost of interest lost (estimated) 185,000
COST TO TOWN $ 627, 198
Annual Cost (5 yr. term) 125,440
Savings realized annually -( 102,602) **
Annual Cost to Town $ 22,838
OPTION 2 - ONTARIO HYDRO LOAN - 0% INTEREST
TOTAL project cost - 0% interest loan $ 589,598
Annual Cost (5 yr. term) 117,920
Energy Savings Annually (102,602)**
Annual Cost to Town $ 15,318
* One time cost -for GST & poles - not subsidized would be
added to the annual cost for year one under both options .
** Energy savings have not been inflated to provide a
conservative estimate.
ATTACHMENT N0. 2
WD-57-92
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