HomeMy WebLinkAboutFCS-16-190 - T16-114 Waterloo Region LED Conversion - FPO
REPORT TO: Committee of the Whole
DATE OF MEETING: 2016-12-12
SUBMITTED BY: Michelle Palmer, Director of Supply Services
519-741-2200 ext. 7214
PREPARED BY: Michelle Palmer, Director of Supply Services
519-741-2200 ext. 7214
WARD(S) INVOLVED: All
DATE OF REPORT: 2016-12-05
REPORT NO.: FCS-16-190
SUBJECT: FPO - T16-114 Waterloo Region LED Conversion – Supply
and Installation of LED Luminaires, Smart City Controls and
the Disposal of Existing Cobra Head HID Luminaires
___________________________________________________________________________
RECOMMENDATION:
That the City enter into an agreement with the Region of Waterloo for LED
Conversion – Supply and Installation of LED Luminaires, Smart City Controls and
the Disposal of Existing Cobra Head HID Luminaires in the amount of $5,926,700.,
plus H.S.T. of $770,471., for a total of $6,697,171., subject to the satisfaction of the
City Solicitor.
BACKGROUND:
At the March 21, 2016, Council meeting, the following recommendation was approved
regarding the street light replacement program:
“That a Light Emitting Diode (LED) street light replacement program be
undertaken to replace the existing High Pressure Sodium (HPS) street light
fixtures, as outlined in Infrastructure Services Department report INS-16-024;
and,
That a narrowband adaptive control network be installed; and,
That, in accordance with the capital investment philosophy, the capital costs of
the project be funded by future operating budget savings; and,
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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That an LED replacement reserve fund be created to fund the future replacement
costs of LED streetlights as outlined within Appendix B of Report INS-16-024;
and,
That $300,000 from anticipated operating savings be set aside to fund the Smart
City pilot initiatives in 2017/2018; and further,
That a Request for Information be prepared and circulated for the investigation of
a City-wide broadband communication platform.”
The LED Conversion – Supply and Installation of LED Luminaires, Smart City Controls
and the Disposal of Existing Cobra Head HID Luminaires is a joint project between the
Region of Waterloo, City of Kitchener, City of Waterloo, City of Cambridge, Township of
Woolwich, Township of Wilmot, Township of Wellesley, and Township of North
Dumfries. The work under this contract includes the supply, delivery, and installation of
approximately 42,030 LED street lights and the disposal of existing HID Cobra Head
luminaires in the Region of Waterloo consisting of the following:
City of Kitchener 16,140 fixtures
City of Cambridge 5,298 fixtures
City of Waterloo 8,213 fixtures
Regional Municipality of Waterloo 7,975 fixtures
Township of North Dumfries 394 fixtures
Township of Wellesley 537 fixtures
Township of Wilmot 1,433 fixtures
Township of Woolwich 2,040 fixtures
Adaptive/Smart City Controls are a mechanism to remotely turn lights on and off, adjust
brightness and keep track of power usage. Smart City Controls are infrastructure for
future capabilities such as water meter reading and traffic volume counting. Only the
LED fixtures within the City of Kitchener boundary will be equipped with the
Adaptive/Smart City Controls. The other area municipalities may consider moving
towards this technology at a future date. As set out in the tender documents, the ranking
of the bids was based on the supply and installation of the new LED luminaires
(including disposal of existing cobra head HID luminaires) and the projected long term
(15 year) energy costs using a predetermined rate per kilowatt hour. This will ensure
that the City will receive the lowest life cycle cost. The energy cost is not included in the
contract with the successful bidder, nor is it reflected in the bid prices.
The project is scheduled to start in December 2016 and be substantially complete by
December 31, 2017.
REPORT:
Tenders were called by the Region of Waterloo for T2016-203 Waterloo Region LED
Conversion – Supply and Installation of LED Luminaires, Smart City Controls and the
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Disposal of Existing Cobra Head HID Luminaires and were advertised in the Record, on
the Region’s website and on the Ontario Public Buyers Association website. A pre-
qualification process to determine acceptable LED luminaires and smart city controls
was completed for this project (PQ2016-07). Contractors bidding on the tender could
only submit the luminaires and smart city controls that were approved through the pre-
qualification.
The following tenders were received:
Fairway Electrical Services Inc. Ancaster, ON $12,755,349.65
Enersource Power Services Inc.Mississauga, ON $16,383,886.20
* Six (6) tenders were disqualified.
Tenders were opened in the presence of K. Eitel, M. Jones and T. Lumgair (all of the
Region of Waterloo). The tender was reviewed by B. Cronkite, Interim Manager
Transportation Planning, C. Hassarajani, Manager Client Services Information
Technology, and Michelle Palmer, Director of Supply Services, who concur with the
above recommendation.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievement of the city’s strategic
vision through the delivery of core service.
FINANCIAL IMPLICATIONS:
The net cost for this tender (A), is fair and reasonable for a project of this scope and the
upset limit is within the funding available (B) for this project. Funding for this project is
included within the approved capital budget. The estimated surplus (D) is held in the
account until project completion and would reduce the payback period should it not be
required for future work.
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Financial Summary for Tender FPO -T16-114
LED Street Lighting Conversion
Estimated Cost
Tender FPO -T16-114 costs, including HST 6,697,171.00
less: HST rebate on tender (666,161.08)
Net Cost Being Awarded 6,031,009.92 A
Projected Costs :
Project Management Fee (Region of Waterloo) 60,343.68
Adaptive Controls/Smart City Network Integration 1,000,000.00
Ornamental Streetlights (2500) 2,500,000.00
Estimated Cost $ 9,591,353.60 C
Budget for this work:
Approved per INS-16-024 9,687,350.00
Total Budget: $ 9,687,350.00 B
Estimated Surplus (B - C) 95,996.40 D
Notes for projected costs:
1. Project Management Fee (Region of Waterloo) - based on a percentage of the
project cost and will be paid to the Region of Waterloo for project coordination.
2. Adaptive controls/smart City Network Integration - costs associated with the
server and wiring infrastructure required to connect the streetlight infrastructure
to the City’s network as well as the Smart City pilot.
3. Ornamental Streetlights – costs associated with the conversion of decorative light
fixtures to LED with Smart City controls which will be the subject of a separate
procurement process.
COMMUNITY ENGAGEMENT:
INFORM – This report has been posted to the City’s website with the agenda in
advance of the council / committee meeting.
PREVIOUS CONSIDERATION OF THIS MATTER:
INS-16-024 LED Street Light Replacement Program
ACKNOWLEDGED BY: Dan Chapman, Deputy CAO & City Treasurer, Finance and
Corporate Services
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