Board of Directors Regular Meeting Agenda


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Meeting Date: 01/27/2016  

SUBJECT MATTER:
Receive, consider and act upon an award of  contract for LED lights and approve the renewal to the Electrical Services Agreement which will replace neighborhood entry sign lights;
FISCAL IMPACT:

$38,000 was allocated in 2015 and in 2016 for this project. An additional $38,000  is estimated to be required  in 2017 for the completion of this 3 year phased project.  It is projected that $15,589 will be saved annually in reduced electrical consumption and in labor to replace burned out lamps in the change to LED technology.  In addition, the  conversion project could be  eligible to receive incentive rebates from Entergy Texas due to scale of project and the reduction in power used by the LED plates instead of metal halide lamps/plates, however the incentive amount has not been calculated. 

BACKGROUND:
The Board of Directors approved a three year phased project (2015-2017) to replace the neighborhood entry and village entry monument signs' light fixtures from the existing metal halide KIM fixtures to LED.  The benefit of the conversion to LED is to reduce electricity consumption, reduce the maintenance expense of replacing the metal halide bulbs and ensuring a consistent and  pleasing illumination of the neighborhood entry signs.  By converting the fixtures to LED the Township will realize reduced operational cost compared to the current lamps. The current 100W metal halide lamps average life is 12,000 hours and the 21W LED lamp/plate averages 45,000 hours.  This will extend the life expectancy from 2.7 years to 10.2 years. 

There are approximately 500 neighborhood entry and village signs throughout the community that currently have 100W metal halide lamps contained in predominately a KIM brand fixture.  This has been the standard lamp and fixture for over 15 years.  Each entrance can have from 1 to 3 fixtures depending on the size of the monument sign.   The Board approved a three year project  to replace these with LEDs and is to be funded through the electricity cost savings in annual operations. The approved budget was based upon retrofitting the internal components of the existing KIM fixture to fit an LED lamp and leaving the fixture itself intact - not changing out the entire fixture.  This approach was recommended as it is the least cost, least impact and easiest to implement as it utilizes the existing light fixture.
 
Research and proposals from several vendors found that there are many different types of LED fixtures and LED lamps (bulb or panel) but none that matched the current standard fixture and the desired color of light and intensity of illumination.   In addition, there is no "off the shelf" manufactured retrofit kit for the KIM fixtures to change from metal halide to LED, without having to change the entire fixture.    Changing out the entire fixture would increase the cost of the project by 245%.    One local vendor, BTM Solutions, provided a proposal using a  custom made bracket that fits inside the standard KIM fixture that allows for an LED lamp or panel to be installed in the fixture housing. This solution makes for a simple exchange of the internal components and is the least cost approach.  BTM worked with the Township staff and electrical services contractor, Miam Electric, to develop this unique solution.

In the fall of 2015, several mock ups options of this solution were installed at three different neighborhood entry signs to identify which LED lamp was closest to the existing color and level of illumination on the sign. The mock-ups reveled that the 21W LED panel product produced almost the same color and intensity as the existing 100W Metal Halide lamps.  Selecting this option provides for the least noticeable change in lighting on the monument signs, without having to replace the entire fixture.
 
BTM is the sole source for the retrofit kit materials and provided a bid of $155.20 each in quantities of 250 or more.  The project is planned to be performed over three years at approximately 250 lights per year. The Township's current Electrical Services contractor, Miam Electric, can perform the conversion at an estimated 30 minutes per fixture.  Current established contracted rates equate to $40.00 for the electrical services  for each fixture for a total of $155.20 per fixture to complete the conversion.  To replace the existing fixture with a new manufactured LED fixture was estimated to cost $380 for the fixture, lamp and labor to replace the entire fixture, plus the cost of any landscape repairs. 
 
Although not the least combined expensive solution, It is recommended to proceed with Option 2A below, the 21 Watt LED panel,  as it results in  the closest match to the current illumination standard and community esthetics.  While the payback is the second shortest, it is believed this light source will provide a more reliable type of LED technology.  In addition, the maker of the retro fit bracket panel (BTM Solutions) has indicated they are willing to assist the Township in developing an energy audit to demonstrate the electrical savings of the project. 

As this project will take three years to complete, it is recommended to contract with BTM Solutions, LLC to provide the 21W LED retro kits at $115.20 each;   and to utilize the existing  Electrical Services Contract with Miam Electric to perform the installation (Attachment A); and as the current term of the Electrical Services Agreement expires on May 31, 2016, issue a Renewal Notice to Miam Electric for a three year term.   The current Electrical Services Agreement was awarded in 2010 after competitive bidding, was renewed by the Board for three years in 2013 and has the ability to be renewed for another term.  The renewal provision provides that the Township is to deliver a Renewal  Notice 90 days before the expiration date, which would be by March 2, and for the parties to use good faith efforts to negotiate the terms and conditions of the Additional Renewal Term.  Miam Electric has agreed to maintain the same terms and pricing as the current agreement for another three years.  The renewal as proposed would hold the unit pricing at the rates established in 2010 and ensure that the LED conversion project is carried forward with consistency and ease of management and operations.  
 
LED Conversion Options and Projected Cost Savings
 
  Option 1A-20W LED Lamp Option 1B-40W LED Lamp Option 2A-21W LED Panel Option 2B-32 W LED Panel
Quantity per phase 251 251 251 251
Retro fit Kit $63 $108 $115.20 $124.80
Labor/Install $40 $40 $40 $40
Total Unit Cost $103 $148 $155.20 $164.80
Total Cost per phase $25,853 $37,148 $38,955.20 $41,364.80
         
Current Electricity Usage (kWh) 124,372 124,372 124,372 124,372
Projected Electricity use (kWh) 20,060 40,120 21,063 32,096
Annual kWh Savings 104,312 84,252 103,309 92,276
Electricity Rate .09 .09 .09 .09
Annual Savings $9,388 $7,583 $9,298 $8,305
Expected Maintenance Savings $6,292 $6,292 $6,292 $6,292
Total Annual Savings $15,680 $13,874 $15,589 $14,596
Payback per phase (Years) 1.4 2.5 2.2 2.6
RECOMMENDATION:
It is recommended to move forward with the neighborhood and village entry sign lighting conversion project  over a three year period and to award  BTM Solutions LLC a contract to provide the LED retro fit kit with 21W LED  panels at $155.20 each and to issue a Renewal Notice to Miam Electric for a three year term at the same terms and pricing as the current contract and authorize the President/ General Manager to execute any related agreements as approved by the Township Attorney.  
Attachments
Attachment A - Electrical Services Agreement


    

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