The URL can be used to link to this page

Home My WebLink AboutItem 01 Street Lighting Energy Savings Performance Contract UpdateAGENDA ITEM SUMMARY Meeting Date: Meeting Type: Staff Contact/Dept.: Staff Phone No: 2/13/2023 Work Session Brian Barnett/Scott Miller/DPW 541.726.3681 Estimated Time: 30 Minutes SPRINGFIELD Council Goals: Maintain and Improve CITY COUNCIL Infrastructure and Facilities ITEM TITLE: STREET LIGHTING ENERGY SAVINGS PERFORMANCE CONTRACT UPDATE ACTION Update on city-wide upgrade of street light fixtures to LED. REQUESTED: ISSUE STATEMENT: The Council previously authorized a project to upgrade the City's street lighting infrastructure to LED on June 6, 2022, using ARPA funding. Since that time, a contract was executed with McKinstry Essention, LLC (McKinstry) to conduct a Technical Energy Audit (TEA) and Project Development Plan (PDP). In the work session Staff will provide an overview of past work and future actions needed to complete the upgrade. ATTACHMENTS: 1: Street Lighting Energy Savings Performance Contract Update Council Briefing Memo 2: Street Lighting Energy Savings Performance Contract Update Presentation DISCUSSION/ The City of Springfield's City Council previously authorized a project to upgrade FINANCIAL street lighting infrastructure to LED on June 6, 2022, using ARPA funding and an IMPACT: amount of up to $2.75M. The original budget was based on an initial rough estimate of the project's costs. Since that time, a contract has been executed with McKinstry Essention, LLC to conduct a Technical Energy Audit (TEA) and Project Development Plan (PDP). Following execution of the contract with McKinstry they completed the TEA and PDP in accord with the Oregon Department of Energy ESCO model. Both the TEA and PDP serve to validate any initial assumptions, audit the entire city inventory, and create a proposal for the construction that includes a scope of work, a maximum guaranteed price, and minimum guaranteed energy savings. These guarantees serve as an assurance to the City by McKinstry that the project will deliver the expected savings. The expected maximum guaranteed price for this project is $3,230,830 and the minimum guaranteed energy savings is $135,261 per year. Additionally, maintenance savings are expected to be approximately $42,720 per year, for a minimum total expected savings of $177,981 per year. Additionally, a grant from SUB and Bonneville Power Administration will provide approximately $63,800 to the project. $417,030 of ARPA funding will be added to the initial allocation of $2.75M to fully fund this project. If the contract is completed for less than the guaranteed maximum amount excess funds will revert to the ARPA account. MEMORANDUM City of Springfield Date: 2/13/2023 To: Nancy Newton, City Manager COUNCIL From: Brian Barnett, P.E., PTOE, City Traffic Engineer BRIEFING Scott Miller, P.E., Traffic Operations Engineer MEMORANDUM Subject: Street Lighting Energy Savings Performance Contract Update ISSUE: The Council previously authorized a project to upgrade the City's street lighting infrastructure to LED on June 6, 2022, using ARPA funding. Since that time, a contract was executed with McKinstry Essention, LLC (McKinstry) to conduct a Technical Energy Audit (TEA) and Project Development Plan (PDP). In the work session Staff will provide an overview of past work and future actions needed to complete the upgrade. COUNCIL GOALS/ MANDATE: Maintain and Improve Infrastructure and Facilities BACKGROUND: The City of Springfield's City Council previously authorized a project to upgrade street lighting infrastructure to LED on June 6, 2022, using ARPA funding and an amount of up to $2.75M. The original budget was based on an initial rough estimate of the project's costs. Since that time, a contract has been executed with McKinstry Essention, LLC to conduct a Technical Energy Audit (TEA) and Project Development Plan (PDP). Audit Summary: The TEA performed by McKinstry revealed the following information about the City's lighting system: The City owns 5,048 street light facilities, including the following: 0 2,295 LED cobra head lights 0 1,978 HID cobra head lights 0 242 LED decorative lights 0 442 HID decorative lights 0 50 induction lights under City Hall that light A Street and 6'1i Street 0 41 poles on the McKenzie Levee Path with no electrical service cabinet, fixtures, or wire • 229 require other work: tree trimming, missing parts, damage, etc. • 131 of the above cobra head lights are oriented inappropriately to the intersection and must be rotated perpendicular to the roadway for proper lighting and to reduce light trespass on private property (e.g. residences). Project Development Plan Summary: The PDP developed by McKinstry includes the following Energy Efficiency Measures which make up the scope of work of the project: • Non -Decorative (primarily cobra -head) LED and control upgrades o Upgrade all fixtures to LED if not already upgraded o Provide and install a smart lighting control node on all fixtures o Evaluate lighting levels (photometrics/lumen output) and adjust as necessary • Decorative LED and control upgrades o Upgrade all compatible fixtures to LED if not already upgraded Attachment 1 Page 1 of 2 o Replace existing obsolete fixtures with city -provided upgraded fixtures where necessary o Provide and install a smart lighting control node on all fixtures o Evaluate lighting levels (photometrics/lumen output) and adjust as necessary Mast Arm Adjustment o Rotate mast arms that are inappropriately aligned for LED lighting distribution City Hall Induction Light Retrofit o Upgrade all induction lights under city hall used to light A Street and 6t" Street to LED McKenzie Levee Path Lighting o Provide and install new LED fixtures on all existing poles o Provide and install a smart lighting control node on all fixtures o Provide and install wiring o Install city -provided service cabinet o Install some form of wire theft deterrent In addition to the specific measures mentioned above, the project scope includes the following overhead items: • $100,000 repair budget allocated primarily to known failed direct bury underground wire Contingency of 5% of construction cost • Traffic control Commissioning of control system and nodes • Development of a cloud -based portal to facilitate remote smart lighting controls • Disposal of removed components • Construction management/project management • Final As -Constructed GIS data • Measurement & Verification of energy savings at project completion and 1 year after substantial completion Project Budget: The maximum guaranteed price for this project is $3,230,830 and the minimum guaranteed energy savings is $135,261 per year. Additionally, maintenance savings are expected to be approximately $42,720 per year, for a minimum total expected savings of $177,981 per year. Energy Savings Guarantee: The guaranteed prices are based on conservative assumptions. Most likely, the actual project cost will be somewhat less than the guaranteed maximum. Also, while the energy savings at 100% output can be reliably determined, significant additional savings can be obtained through dimming and trimming. In the unlikely case that the performance requirements are not met, McKinstry will be contractually required to repair/replace equipment until the performance requirements are met or compensate the City for the difference. Project Funding: $3,200,000 of ARPA funding has been reserved for this project. Additionally, an approximately $63,800 grant will be provided as an energy savings incentive by SUB and Bonneville Power Administration. RECOMMENDED ACTION: Update only, no action requested. Attachment 1 Page 2 of 2 IiiPIOREGOH City of Springfield Street Lighting Program Update Brian Barnett, P.E., City Traffic Engineer Attachment Page 1 of 13 Scott Miller, P.E., Traffic Operations Engineer IiiPIOREGOH Recap •City owns 5,048 street lights 50% are LED 50% are HID •Maintained by SUB due to utility connection •Current system is antiquated/aging and in need of expensive and frequent repairs Attachment 2 Page 2 of 13 IiiPIOREGOH Recap •Annual Energy Cost: $210,000 •Annual O&M Cost: $196,000 •Current SUB Deficit: $211,270 • LED lights use approximately 50% less energy and need 75% less maintenance • Improved lighting levels promotes safer traffic and security Attachment 2 Page 3 of 13 IiiPIOREGOH SUB involvement 30% of street lights are on SUB poles. • LED replacement would be contracted to a lineworker- qualified contractor (Not performed by SUB). SUB involvement is integral due to utility connection and electrical code requirements. Routine maintenance will remain with SUB. • SUB deficit of $211,270 will be resolved through this project. Attachment 2 Page 4 of 13 IiiPIOREGOH What is ars ESCO? • Energy Services Company (ESCO), qualified through Oregon Department of Energy Delivery of Energy Savings Performance Contracts. A single procurement is used to purchase a complete package of services in which one contractor is accountable for: Investigating existing conditions Identifying energy saving opportunities Designing energy conservation measures Purchasing and installing equipment Managing selection, on-site activities, and commissioning Training Guaranteeing the energy savings Attachment 2 Page 5 of 13 SPRINGFIELD L� nQornN Benefits of using an ESCO Quick execution of this project has considerable financial benefits ($178-200k savings per year) • City lacks sufficient resources (staff/time) to self -deliver this project This is ESCO's specialty and their considerable experience in this area will ensure project is delivered on time, on budget, with better engineering, and with reduced risk 9 Preferred pricing on materials (30-40% less than SUB) ESCO assistance with lighting controls selection Attachment 2 Page 6 of 13 SPRINGFIELD L� nnr�nu ESCO Selection City contracted McKinstry as the Energy Services Company (ESCO) to deliver this project through a competitive RFP (Last year McKinstry delivered the lighting retrofit on Main St./S. A St. for City/ODOT) • Estimated project cost is $3.2M • This project will save the City at approx. $178,000 per year (escalating to $323,000 per year in 2043) Attachment 2 Page 7 of 13 moi: '�ftfUfl'!II -• Springfield Street Lighting I L: ............................... ........... - ............................... � . ! • 40+ attributes collected at each location • 5,048 Total Fixtures Identified • 1,978 HID Cobrahead fixtures • 2,295 LED Cobrahead fixtures • 442 HID Decorative Fixtures • 242 LED Decorative Fixtures • 50 Lights at City Hall • 41 Lights at McKenzie Levee Path • 229 Identified Requiring Additional Work • Tree trimming • Missing parts • Damage $PRiNGFIELD Attachment 2 Page 9 of 13 O.-TLV OBE6DN • Reduced Energy Costs • Reduced 0&M Costs • Long life LED technology on all City owned street lights • Upgraded Lighting Controls • Replaces obsolete, non-functional control system • Improved remote visibility and control • Dimming schedules (increased energy savings & extend fixture life) • Automatic notifications • Reduced reliance on resident notifications for outages • Improved service with timely repairs. SPRINGFIELD Attachment 2 Page 10 of 13 (:), 1�Sltry ur m r w trcr..o OBf60N 2/1/2023 3/28/2023 4/1/2023 8/1/2023 8/1/2023 11/15/2023 11/15/2023 12/31/2023 SPRINGFIELD Attachment 2 Page 11 of 13 orr or r:�r auro-r..v OBf60N • / I I � • 4 • UL BEFORE + r • IL i +dl IiiPIOREGOH Questions? Brian Barnett, P.E., City Traffic Engineer • uual III1rfielu-uI.ru , 541-726-3681 Scott Miller, P.E., Traffic Operations Engineer • smmer(«uspringfiem-or.gm, 541-726-3673 Attachment 2 Page 13 of 13