02-06-2001 - LED Traffic Signal Retrofits - Approval to Purchase - Project #TS-01120w
City of Rest Covina
Memorandum
AGENDA
TO: Daniel G. Hobbs, City Manager
and City. Council ITEM NO. C - 6 b
DATE February 6, 2001
FROM: Thomas M. Mayer
Public Works Director/City Engineer
SUBJECT: LED TRAFFIC SIGNAL RETROFITS
APPROVAL TO PURCHASE = PROJECT NO. TS-01120
SUMMARY: This project will provide for the replacement of existing red and green incandescent
traffic signal lamps with new energy -saving Light Emitting Diode (LED) lamps
utilizing grant money. The City .has received a State of California rebate
reservation from Southern California Edison Company to help accomplish this
work. Due to Grant time constraints, staff is proposing that the City utilize the
bidding process of the City of Anaheim.
BACKGROUND:
The LED. Traffic Signal Rebate program was established by the State of California to encourage
the- retrofit of incandescent traffic signal lamps with Light Emitting Diode (LED) lamp
replacements to save energy. The program is being administered regionally by local electrical
utility companies using State guaranteed funding. The City has received a rebate reservation in
an amount up to $233,905.00 from Southern California Edison Company to help accomplish this
work. This amount is sufficient to pay for the purchase of the new lamps. To qualify for these
funds, the new lamps must be operational and reduce peak electricity demand by June 1, 2001.
West Covina currently operates and maintains seventy-eight traffic signals that use incandescent -
style traffic signal lamps. Recent advances made in LED technology have resulted in the
manufacture of signal lamps that provide the required levels of illumination at significant energy
savings. Previously only red LED lamps were approved. The recent approval of green lamps,
makes the retrofit more appealing. The City'.s existing incandescent lamps average 135 Watts,
while the LED style lamps require about 18 Watts. As these lamps make up a majority of the
electrical usage at a signalized intersection, costs can be reduced tremendously. This project was
projected for the 2002-2003 Capital Improvement Program (CIP) at an estimated cost of
$500,000.
In 2000, the City of Anaheim awarded a contract to purchase LED lamps to the lowest
responsive bidder, Fortel Industries, of Hollister, California. The bidding process used by the
City of Anaheim is at least as .stringent as that mandated by the City of West Covina Municipal
Code. Staff has reviewed the City of Anaheim specifications.and found them to be adequate.
DISCUSSION:
Red and Green LED traffic lamps will allow the City to reduce its electrical use for traffic signals
by up to 70%. The annual approximate cost to operate the traffic' signals citywide is now
$105,000. This cost is estimated to be $121,000 next year due to increasing electrical rates. The
projected cost to operate these same traffic signals after the LED retrofit -is $42,000. ,.This results
in an estimated annual cost savings to the City of $79,000.
Estimated Annual Cost to Operate Traffic Signals Citywide
Historical Cost
$105,000
Estimated Future Cost Without LED Lamp Retrofit
$121,000
Estimated Future Cost With LED Lamp Retrofit
$42,000
• 0
Daniel G. Hobbs, City Manager
and City Council
Paize 2 — February 6, 2001
Beyond the anticipated energy -savings that will result through the installation of the LED lamps,
the lower power requirements will make it possible for the City to install Uninterruptible Power
Supply (UPS) units at intersections in the future. The UPS systems allow the signal to flash
four-way red in a power outage. The energy cost savings will be recommended to fund a three
year UPS installation program during the CIP process.
An additional incentive for the replacement of the existing incandescent lamps with new LED
lamps is the anticipated maintenance savings. The City's existing lamps have a life expectancy
of between one to two years, and the City's maintenance crews have been replacing them with
new lamps every year to avoid a high incidence of burned out bulbs. The proposed LED style
lamps, however, have been guaranteed by their manufacturer to last a minimum of five years.
OPTIONS:
An alternative is to not approve this project. This will result in the missed opportunity for energy
savings. -
Another alternative is to proceed with a City of West Covina formal bid process. This alternative
will most likely result in missing the grant opportunity deadline.
FISCAL IMPACT:
As mentioned previously, this retrofit will result in an estimated $79,000 annual savings to the
Traffic Signal Lighting Maintenance Utilities Services Fund (180-320-2280-6140). The City's
Maintenance Division will be able to accomplish the retrofit by the June 1, 2001 deadline barring
any unforeseen delays. As a contingency, to assure that the lamps are installed by the grant
deadline, an amount of $25,000 is requested to be set aside to retain outside services to assist the
City's crews in , changing out the lamps. The installation will be funded out of current year
energy savings ($10,000) due to the retrofit and Traffic Signal Modification Project No. TS-
01111 (124-320-3150-7800). If the City's crews can complete the retrofit and meet the deadline
unassisted, these funds will not be necessary.
The rebate will cover all of the cost of the lamps except for the 12" red lamps. An amount of
$9,600 is required to pay for a portion of their cost due to 12" red lamps not being fully covered
by the rebate. In addition to the rebate and installation, a sum of $10,000 is needed for contract
administration, inspection, and contingencies for a total funding of $44,600 to complete this
project. Based on this cost and the energy cost savings, the retrofit will pay for itself in about six
months. If none of the contingency funds are needed, the retrofit will pay for itself in about three
months.
Traffic Signal Lighting Maintenance Utilities Services Fund $10,000
Savings (180-320-2280-6140)
Traffic Signal Minor Modifications - CIP Project No. TS-01111 $34,600
(124-320-3150-7800)
As with all reimbursable type funding, the City will advance funds from General Fund Reserves
to be repaid as the expenses are reimbursed.
WUPITER\BLDE'S FILES\AGENDA - 2001\TS-01120 Funding Request LED.doc
Daniel G. Hobbs, City Manager
And City Council
Page 3 — February 6, 2001
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Authorize the establishment of Project No. TS-01120 and accept the formal bid process
initiated by -the City of Anaheim in accordance with WCMC Section 2-333(i) and authorize
the Mayor and the City Clerk to execute an agreement for LED lamps with Fortel Industries
of Hollister, California.
2. Authorize participation in the Southern California Edison LED Traffic Signal Rebate
program and the guarantee of up to $233,905 in that program's funds.
Prepared by:
Bruce R. Hammill
Construction Coordinator
Reviewed and approved by:
Thomas M. Mayer
Public Works Director/City Engineer
Reviewed and approved by:
Shannon A. Yauchzee
Building Official
Re ed and approved by:
Arti Iel s
Acting Finance Director
\\JUPITER\BLDE'S FILES\AGENDA - 2001\TS-01120 Funding Request LED.doc