Title
Resolution to Authorize the Purchase of LED Streetlight Conversion Fixtures from Lumecon ($460,000.00) Bid No. 3903 and to Accept Grant and Appropriate Funds from the Downtown Development Authority to support the Downtown Streetlight Retrofit Program ($630,000.00) (8 Votes Required)
Memorandum
The attached resolution will authorize the purchase of 1,000 LED streetlight retrofit fixtures from Lumecon. The purchased fixtures will be installed in all the downtown globe streetlights in support of the City's Downtown Streetlight Retrofit Program. In addition, this resolution will authorize the receipt of a grant from the Downtown Development Authority in support of this program.
The Public Services Area solicited bids, # 3903, for 1,000 LED streetlight retrofits fixtures and received two bids. Tabulation of the bid follows:
BIDDER COST PER UNIT TOTAL COST
Lumecon $460.00 $460,000
Laidlaw & Morgan
& Assoc. $594.00 $594,000
Lumecon received Human Rights approval on October 24, 2007.
City staff from the Public Service Area, Field Operations Unit will install the 1,000 LED fixtures in the downtown globe streetlights. This installation process is expected to take approximately two years. After full implementation the cost savings will be $109.00 a year in energy and maintenance costs for each streetlight that is retrofitted. There are 1,046 streetlights in the DDA area, including other styles that will be retrofitted in the second year, with the cost savings to the general fund conservatively estimated to be $114,014 annually.
At their June 6, 2007 meeting the DDA voted to approve a grant to the City's Energy Fund in the amount of $630,000 to be used to support this program. The $460,000 will be made available upon approval of this resolution to proceed with the purchase of the retrofit kits. The remaining $170,000 of the grant will be used for installation costs, including labor and equipment, inventory and metering of the street lighting circuits. Advance funds will be available from the DDA as the installation process is begun.
Grant funds will be available for the life of the project regardless of fiscal year. David Konkle, Energy Coordinator will serve as the grant manager. Mike Bergren, Field Operations Assistant Manger, will serve as project manager.
Staff
Prepared By: Mike Bergren, Assistant Field Operations Manger
David Konkle, Energy Coordinator
Reviewed By: Sue F. McCormick, Public Services Administrator
Body
Whereas, The City of Ann Arbor and the Downtown Development Area are in support of new energy technology and energy savings;
Whereas, Lumecon was the lowest responsible bidder of bid no. 3903 for 1,000 LED Streetlight retrofit kits;
Whereas, Lumecon received Human Rights Approval on October 24, 2007;
Whereas, The Downtown Development Authority approved a grant to the City of Ann Arbor's Energy Fund in the amount of $630,000.00 in support of the Downtown Streetlight Retrofit Program to reduce City Energy Costs; and
Whereas, the annual cost savings to the City's' general fund for energy and maintenance upon installation of the 1,046 LED streetlights in the downtown area will be $107.00 per pole for a total savings of $114,014.00; and
Whereas, This grant will assist the City of Ann Arbor in continuing its leadership role in the installation of LED Light bulbs for energy conservation and cost savings;
RESOLVED, That a purchase order in the amount of $460,000.00 be authorized to Lumecon for the purchase of 1,000 LED streetlight retrofit kits;
RESOLVED, That the City accept the Downtown Development Authority Grant for the support of the Downtown Streetlight Retrofit Program;
RESOLVED, That the grant funds be appropriated to the FY 2008 Energy Fund for the life of the project, regardless of fiscal year; and
RESOLVED, That the City Administrator is authorized to take the necessary administrative actions to implement this resolution.