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HomeMy WebLinkAboutEGD-031-16 Clarington. EngineeringServices Report If this information is required in an alternate accessible format, please contact the Municipal Clerk at 905-623-3379 ext. 2102. Report To: General Government Committee Date of Meeting: June 20, 2016 Report Number: EGD-031-16 Resolution: File Number: By-law Number: Report Subject: Review and Assessment of LED Street Lighting Conversion Programs for the Municipality of Clarington Recommendations: 1. That Report EGD-031-16 be received; 2. That Staff proceed with Request for Proposals for a turnkey LED street lighting conversion for Cobra Head, Post Top and Shoebox type street lights; and 3. That Council approve the LED Roadway NXT series street light as recommended in Report EGD-031-16 as Clarington's standard LED street light until completion of the Request for Proposals. Municipality of Clarington Report EGD-031-16 Page 2 Report Overview The following is a report that recommends a strategy for implementation of an LED street lighting conversion program for the Municipality of Clarington. In addition, it is recommending a single LED cobra head supplier be retained to address ongoing subdivision and capital works installation so that the LED conversion process can be initiated immediately. 1 . Background The advancement of new technologies combined with increasing energy cost and available rebate programs has made it worthwhile for municipalities to develop light emitting diode (LED) conversion programs for the purpose of replacing existing high pressure sodium (HPS) and metal halide (HM) street lighting fleets. LED street lighting is an initiative that has been endorsed by the Energy Management Committee. In Clarington's Energy Management Plan 2014-2019, one of the goals was to initiate a street light retrofit project in 2015. However, due to restrictions on resources of staff time and financing, it has been a challenge to meet this goal. To ensure that the greatest impact on energy conservation is achieved, the street light retrofit should be planned based on the whole street lighting system. 1.1. Research The Municipality of Clarington recently participated in a survey with fifteen other local municipalities to compare benchmark cost with consideration given to fleet size, type of luminaire, population, cost and type of maintenance provider. The survey results were consistent with overall market research and are summarized as follows: • Electricity — costs for HPS/MH fleets are 57 percent higher than LED fleets on average • Maintenance — costs for HPS/MH fleets are more than twice those of LED fleets maintained by the same type of provider Municipality of Clarington Report EGD-031-16 Page 3 The existing lighting network in the Municipality of Clarington consists of approximately 6,245 luminaires. 5,343 are located within the larger urban centres of Bowmanville, Courtice, Newcastle and Orono with the remaining located in small rural communities and isolated rural locations. A complete street lighting inventory is provided in Attachment#1. Approximate annual costs currently associated with providing HPS street lighting are: Annual Cost Per Luminaire 2015 Total 2016 Budget Electricity $130.00 $812,553.00 $880,000 Maintenance $35.00 $212,521.00 $223,000 For comparison, the approximate average annual cost of LED street lighting for survey participants who have completed conversion programs is: Annual Cost Per Luminaire Electricity $82.00 Maintenance $15.00 Based on an average price of$665 per fixture, it is estimated that it will cost $4.2 million to replace all of the municipality's light fixtures. This cost is significantly reduced by excluding more expensive types of fixtures and replacing only the less expensive Cobra Head, Post Top and Shoebox type lighting. Replacing Cobra Head, Post Top and Shoebox type lighting only is estimated to cost $3.0 million at an average price of$500 per fixture. This represents replacement of approximately 5,700 fixtures or 91% of the municipal system. 1.2. Benefits Conversion to new LED luminaires requires significant up-front cost, but will provide the following benefits: 1. Reduction of energy consumption & costs 2. Reduction in maintenance costs 3. Improved nighttime visibility (better colour rendering) 4. Uniform lighting distribution 5. Reduced direct and reflected up-light (to reduce lighting pollution and urban sky glow) 1.3. Financing and Incentives Various financing models are available to the municipality. These are summarized by "LightSavers Canada, Guide to Financing LED Street Lighting in Canada, December 6, 2013." Based on this guide, the following options may be considered: • Dedicated taxes, fees and revolving funds • Municipal debenture financing • Government infrastructure financing (e.g., Infrastructure Ontario Loan) Municipality of Clarington Report EGD-031-16 Page 4 • Private financing (e.g., Scotiabank Equipment Financing Solutions, Philips Lighting Finance) • Leasing solutions (e.g., RCAP Leasing Corp.) • Energy performance contracting (e.g., Realterm Energy Corp., Erth Corporation, Ameresco) • Public-private partnerships Provincial incentives will be available through the Ontario Power Authority (OPA) SaveONenergy program from 2016 through to 2019. Currently this incentive program is transitioning from Ontario's Independent Electricity System Operator (IESO) to Local Distribution Utilities (LDCs) which will require the Municipality to apply on the program's Prescriptive track to claim the OPA incentive. Based on recent Municipal upgrades an incentive of$80 to $125 per fixture may be anticipated. Given the extension of the program through to 2019, it can be expected that similar incentives will be available to the Municipality of Clarington but may come at reduced incentive after June 20, 2016. 1.4. Cost Recovery Based on the assumed electricity and maintenance costs noted above an annual savings of approximately $425,000 would result from a complete system retrofit, versus $388,000 in savings for replacement of Cobra Head, Post Top and Shoebox type lighting only. This will result in an anticipated payback period of between 5 and 10 years if an LED conversion program is implemented. More detailed lifecycle cost analysis will need to be conducted based on the specific luminaires and associated wattages, factoring in incentives, lighting warranties, interest payments for funding (if applicable) and annual increases in utilities rates. 2. Approach 2.1. Definitions Energy Performance Contract: • Agreement between an energy service company and a client organization. Under this agreement, an energy service company (ESCO) assesses a facility's energy systems and equipment, identifies possible energy savings opportunities, recommends and implements energy efficiency improvements, monitors the results, and guarantees the energy savings. The energy-saving improvements and the services of an ESCO are paid for over a specified period from the resulting energy savings (typically, 80 percent of realized savings go to the ESCO and 20 percent to the municipality). Municipality of Clarington Report EGD-031-16 Page 6 LAS/RTE and Cree Canada: ® Partnership of: LAS, a subsidiary of the Association of Municipalities of Ontario; Real Term Energy (RTE), a Canadian firm that implements lighting infrastructure solutions and; Cree Canada, a material supplier to LAS obtained through a competitive RFP process. LAS/RTE and Cree Canada is the longest-standing supplier of turnkey LED conversion programs utilizing energy performance contracts in Ontario. 2.2. Alternative Implementation Strategies Over the last five to ten years, municipalities in Ontario have been taking different approaches to implementing LED conversion programs including: 1. Sole sourcing an energy performance contract with LAS/RTE and Cree Canada • Complete LED conversion solution for municipalities that removes risk and management of procurement work (No RFPs for design, supply and installation) • Funded by LAS/RTE through energy performance contract • Evaluation: — low upfront cost — longest payback period (10-year contract) — no municipal control 2. Procurement of competing energy performance contractor such as LAS/RTE, CRU (Division of Erth), Erth Corporation, or Ameresco • Complete LED conversion solution for municipalities that removes risk and management of procurement work (No RFPs for design, supply and installation) • Funded by winning bidder through energy performance contract • Evaluation: — low upfront cost — shortest payback period (6-7-year contract) — moderate municipal control 3. Procurement of design, supply and installation through municipal purchasing bylaw process and competitive bid • LED Conversion through municipal procurement process that returns 100% savings to the municipality while maintaining control over the quality of the product • Financed by municipality through Region of Durham Debenture, Federal Gas Tax, Levies, etc. and recovered through maintenance and energy saved over a term of 5 to 15 years • Evaluation: — high upfront cost — variable payback period (dependent on availability of municipal resources) — high municipal control Municipality of Clarington Report EGD-031-16 Page 6 — Significant demand on staff time in several departments over an extended period to manage conversion with the use of lighting experts to assist with the process 3. Recommendations 3.1. Scope of Conversion Program This cost of replacing all street lighting in the municipality is significantly higher ($4.2 million) than replacing only the less expensive Cobra Head, Post Top and Shoebox type lighting ($3.0 million) as noted in Section 1.1 of this report. Limiting the scope of the program to conversion of only Cobra Head, Post Top and Shoebox type lighting will still allow the municipality to replace the majority of its street lighting, but will also assist in managing the associated capital expenditure and/or shortening the time required to see a full return on the investment. It is recommend that the municipality limit the scope of the initial program to conversion of Cobra Head, Post Top and Shoebox type lighting only, for the reasons noted above and as a means of maximizing the value of the investment. Over the last several years as technology has improved and there has been more competition in the LED Cobra Head lighting segment, pricing has dropped significantly. It is thought that a similar change will happen with the more unique decorative lights over time. Therefore, specialized fixtures can be replaced at a later date as technology improves and conversion becomes more cost-effective, or as these types of fixtures reach the end of their service life. 3.2. Selecting an Alternative Implementation Strategy Implementation Strategy 2 is the recommended alternative for the following reasons: • Alternative 1: Sole sourcing an energy performance contractor on a project of this magnitude does not support the intent of the municipal purchasing bylaw and does not allow the municipality to seek a competitive bid. • Alternative 3: Procurement of required services and materials through the municipal purchasing bylaw process and competitive bid requires significant investment in human resources that the municipality is not currently equipped to handle. • Alternative 2: Procurement of an energy performance contractor through a competitive bid process allows the municipality to seek a competitive bid, significantly reduce municipal human resource requirements, allows some control over the nature of the energy performance contract and provides relief to the existing capital funding gap. As part of the implementation process for Alternative 2, municipal staff will return to Council to seek approval of a recommended energy performance contractor prior to award of contract. 3.3. Phasing in Interim Development It will not be possible to directly integrate all unassumed street lighting into an energy performance contract. Unassumed street lighting includes street lighting from approved ongoing or future development within the municipality (eg. subdivisions). Municipality of Clarington Report EGD-031-16 Page 7 For this reason, the following strategy should be implemented to complete the conversion program for street lighting: 4. Existing (assumed): Complete under Implementation Strategy 2, as recommended 5. Existing (unassumed): Complete implementation at municipal expense at the end of contract to better balance capital investment with energy and maintenance savings Note: It is recommended that the process of engaging an energy performance contractor run for a sufficient amount of time to allow the municipality to assume as many existing unassumed street lights as possible so they can be included in the energy performance contract. 6. Current approved development (unassumed): Negotiate agreement with developer to share costs of upgrading to LED street lighting with the Municipality of Clarington 7. Future unapproved development (unassumed): Incorporate Clarington LED Street lighting standard and guidelines into all future development agreements Staff recommends that NXT LED street light fixtures manufactured by LED Roadway Lighting Ltd. (LRL) be used to address items 2-4 above, as necessary, until the services of an ESCO contractor have been procured. This quality, versatile fixture was selected by the Town of Whitby after an extensive procurement process, and is also highly recommended by Langley Utilities, the current Clarington street light maintenance contractor. Based on research conducted to date, these fixtures are preferred for the following reasons: • Fully Canadian manufacturer (LRL is headquartered in Halifax, NS and manufacturing plant is in Amherst, NS) • Award winning luminaire —winner if IES Progress Award and the Next Generation Best In Class Award • Industry leading 20-year warranty for the entire fixture — including LED array and driver • Fully upgradeable without tools • IP66 fully sealed optical and electrical chamber • Excellent Thermal Management— single casting allows for even heat dissipation and prevention of icicle build up • Vertically integrated manufacturing — LRL makes the entire fixture — including the LED boards & optics, the drivers and surge protectors. • Extremely reliable fixture — less than 0.5% failure rate since they began building and shipping fixtures in 2007 • Available adjustable output driver— able to choose the mA output via manual dial on the side of the driver; • The ability to change optics and drive current without tools allows for ease of maintenance and limited inventory SKU's for municipalities. Very user-friendly fixture • 9 different distribution patterns available — ultimate versatility to suit any roadway application Municipality of Clarington Report EGD-031-16 Page 6 ® Every fixture comes standard with Nema 7-pin receptacle and is adaptive controls- ready 4. Concurrence This report has been reviewed by Nancy Taylor, Director of Finance, and Fred Horvath, Director of Operations, who concur with the recommendations. 5. Conclusion It is respectfully recommended that Council endorse selection of Implementation Strategy 2— Procurement of an energy performance contractor through a competitive bid process—for conversion of Cobra Head, Post Top and Shoebox type street lights to LED street lighting at an estimated cost of$3.0 million, and provide authority for municipal staff to proceed with implementation of Strategy 2 and the phasing in of interim development as described in Section 3.3 of this report. Upon completion of the request for proposal process, municipal staff will return to Council to seek approval of a recommended energy performance contractor prior to award of contract. 6. Strategic Plan Application Recommendations of this report support the Strategic Plan initiative to ensure and demonstrate good governance and value for the tax dollar. Submitted by: Reviewed by: 4Ant oAnt onyCSICannell2a, C.E.Tranklin Wu, Director of Engineering Services Chief Administrative Officer Staff Contact: Ron Albright, Assistant Director, Engineering Services, 905-623-3379 ext. 2305 or ralbright(a.clarington.net Attachments: Attachment 1 - Street Lighting Inventory There are no interested parties to be notified of Council's decision. ASC/RA//jb Municipality of Clarington Street Lighting Inventory Attachment 1 June 2016 to Report EGD-031-16 Street Lighting Inventor Watta e Type 70 100 150 200 250 400 Grand Total Cobra Drop 32 3229 976 251 290 2 4780 Cobra Flat 15 284 109 50 45 503 Decorative Coach 205 21 226 Decorative Flat 8 4 86 5 103 Mariner 164 12 176 Post Top 99 162 261 Post Top Decorative 17 10 44 71 Shoebox 111 13 1 125 Grand Total 183 3998 1377 306 379 2 6245 Large Urban Areas Bowmanville 2979 Courtice 1597 Newcastle 568 Orono 199 Sub Total 5343 Isolated Rural Locations Clarke 3 Darlington 192 Darlington/Clarke 2 Sub Total 197 Small Rural Communities Brownsville 16 Burketon 73 Enniskillen 63 Hampton 100 Kendal 33 Leskard 1 Maple Grove 8 Mitchell's Corner 46 Newtonville 96 Port of Newcastle 171 Solina 63 Tyrone 35 Sub Total 705 Sub Total 6245 Municipality of Clarington Street Lighting Inventory June 2016 Cobra Drop Cobra Flat y. Decorative Coach Municipality of Clarington Street Lighting Inventory June 2016 Decorative Float f Mariner �I i Post Top Municipality of Clarington Street Lighting Inventory June 2016 Post Top Decorative i� 4 Shoebox NXT POST-TOP 1UNT: SPECIFICATIONVORDERING1 WIDTK 4.87"(123 mni) PHOTO:NXT-S WITH LUMFN IQ 1POST-TOP The NXT post-top entry mount is a two-piece adaptor 2.375"(60 mm) and 3.00"(76.2 mm) diameter poles. It is constructed of die-cast A360 aluminum and finished with available in three standard colors:grey(RAL 7035),bronze a durable polyester powdercoat topcoat. The post-top (RAL 7022),and black(RAL 9005).Please consult with your mount matches the design profile of NXT and NXT-Lite local representative for details about custom finishes. series luminaires for seamless vertical mounting to both QUANTITY STOCK CODE COLOR NXT-C/NXT-LITE FP-PTB-NXTC-GREY-LF 0°POST-TOP MOUNT FP-PTB-NXT-GREY-LF 00 POST-TOP MOUNT FP-PTBP5-NXTC-GREY-LF 'S°POST-TOP MOUNT FP-PTBP5-NXT-GREY-LFif +50 POST-TOP MOUNT ' FP-PTB-NXT-BRONZE-LF 00 POST-TOP MOUNT FP-PTB-NXTC-BRONZE-LF :' 0°POST-TOP MOUNT FP-PTBP5-NXT-BRONZE-LF i5°POST-TOP MOUNTFP-PTBP5-NXTC-BRONZE-LF '5°POST-TOP MOUNT FP-PTB-NXT-BLACK-LF : 0°POST-TOP MOUNT FP-PTB-NXTC-BLACK-LF 0°POST-TOP MOUNT FP-PTBP5-NXT-BLACK-LF : '5°POST-TOP MOUNT FP-PTBP5-NXTC-BLACK-LF : ' +50 POST-TOP MOUNT ORDER PROJECT NAME: QUANTITY: APPROVED BY: DATE: g ROADWAY LEDLIGHTIN � G 115 Chain Lake Drive,Halifax,Nova Scotia,B3S 163 Canada - Toll-Free Phone:+1 (877)533.5755 Toll-Free Fax:+1 (888)533.5755 info@ledroadwaylighting.com www.ledroadwaylighting.com