HomeMy WebLinkAboutAgenda Report - March 19, 2014 C-03AGENDA ITEMC ** 3
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AGENDA TITLE: Approve Specifications and Authorize Advertisement for Bids for the LED Street
Light Retrofit Project
MEETING DATE: March 19, 2014
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: Approve specifications and authorize advertisement for bids for the
LED street light retrofit project.
BACKGROUND INFORMATION: On December 19, 2012, the City Council authorized the City
Manager to submit an application to participate in a California
Energy Commission (CEC) low-interest loan of up to $3 million for
an LED street light retrofit project. This loan was to be paid back over the course of 10 years with Public
Benefits funds. There are several entities competing for these loans, and the City's application was not
selected. Staff plans to submit another loan application to the CEC, and the information gained from
bidders will provide additional project details resulting in a more complete loan application.
Based on engineering estimates, this retrofit will result in a 40 -percent reduction in energy consumption
for street lights and, depending on retrofit costs, could result in a positive cash flow after 10 years in
excess of $300,000. The City currently has 5,794 cobra head style street lights which will cost
approximately $1,840,000 to upgrade including labor and materials. The City currently has 1,497
decorative post top street lights which will cost approximately $820,000 to upgrade including labor and
materials.
Staff is recommending issuing a Request for Proposals (RFP) for an LED street lights project that
includes financing by the contractor should the City not prevail with obtaining the CEC low-interest loan.
The RFP is a tum -key solution including:
A. Sourcing the street light luminaries consistent with Lodi Electric Utility Standards.
B. Installation including labor, materials and equipment.
C. Financing over a 10 -year period.
Proposals will consider the retrofit of cobra head street lights and the post top decorative street lights
separately with the vendors providing a return on investment and simple payback analysis for both cases.
It would be the council's prerogative to proceed with one, both or none of these options.
FISCAL IMPACT: None at this time.
FUNDING AVAILABLE: Not Applicable.
wizatieth A. K' ley
Electric Utility Director
PREPARED BY: Jules L. Marchesseault, Engineering and Operations Manager
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APPROVED:
m City Manager