Title
AUTHORIZATION TO ENTER INTO A LINKING AGREEMENT WITH AMERESCO, INC., FOR STREETLIGHTING LIGHT EMITTING DIODE (LED) CONVERSION
Staff Contact: Jack Friedline, Director, Public Works
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Purpose and Recommended Action
Recommendation
This is a request for City Council to authorize the City Manager to enter into a Linking Agreement with Ameresco, Inc., for the supply and installation of Light Emitting Diode (LED) streetlight luminaires in an amount not to exceed $4,717,547 and to authorize an expenditure limit of $5,425,179 (base contract plus 15% contingency). The term of the Agreement is effective Until February 14, 2020.
Background
During recent Fiscal Year (FY) 2017-18 budget discussions, Council provided direction to proceed with a citywide LED street lighting conversion project to take advantage of the energy savings provided by LED technology. Glendale has approximately 20,200 streetlights with 93% of these lights eligible for replacement to LED technology.
Ameresco, Inc., was awarded a bid by the City of Phoenix to provide Energy Saving Street Light Conversion. Staff is requesting to utilize the cooperative purchase with Strategic Alliance for Volume Expenditures (SAVE). SAVE is a consortium of local municipalities, in which Glendale is a member. Contract No. 144691-1 was awarded on November 30, 2016 and is effective through February 14, 2020.
Cooperative purchasing allows counties, municipalities, schools, colleges and universities in Arizona to use a contract that was competitively procured by another governmental entity or purchasing cooperative. Such purchasing helps reduce the cost of procurement, allows access to a multitude of competitively bid contracts, and provides the opportunity to take advantage of volume pricing. The Glendale City Code authorizes cooperative purchases when the solicitation process utilized complies with the intent of Glendale’s procurement processes. This cooperative purchase is compliant with Chapter 2, Article V, Division 2, Section 2-149 of the Glendale City Code, per review by Materials Management.
Analysis
Public Works has been field testing two types of LED luminaires. In May 2016, the department installed what would become Phoenix’s selected luminaire, American Electric Lighting’s Autobahn LED product, on 48 streetlight poles on Hillcrest Boulevard from 67th Avenue to 75th Avenue. All lights have operated without issue since installation.
The cost for electricity for streetlights has grown from $1,609,283 in FY 2008-09 to $1,960,883 in FY 2015-16, an average of 2.5% increase annually. While growth in the number of streetlights accounts for some of this increase, much of the increase is due to rate adjustments by Arizona Public Service (APS) and Salt River Project (SRP). Through this contract, Ameresco estimates the City of Glendale may reduce electricity expenditures by $494,000 annually and realize $180,000 saving in maintenance and supplies for a total projected annual savings of $674,000.
Community Benefit/Public Involvement
Residents take great interest in the performance of neighborhood streetlights. Street lighting is critical to traffic and pedestrian safety and neighborhood visibility. Installation of new LED luminaires is expected to reduce service calls from residents reporting outages of aging streetlights. Proper operation of city streetlights will meet residents’ expectations for visibility and provide for a safe transportation environment for travelers.
A robust public outreach program is being developed which will include public meetings, newsletters, and a project hotline to provide information to the residents and updates on the schedule. This work will be coordinated through a public relations firm under a separate agreement.
Budget and Financial Impacts
Funding is available in the Fiscal Year 2017-18 Capital Improvement Plan budget. Expenditures with Ameresco, Inc., are not to exceed $5,425,179 (base plus contingency).
|
Cost |
Fund-Department-Account |
|
$5,425,179 |
2000-68919-551200, Street Lighting LED Conversion |
Capital Expense? Yes
Budgeted? Yes
Requesting Budget or Appropriation Transfer? No
If yes, where will the transfer be taken from?