SUBJECT: CONSENT
Title
A Resolution of the Board of Trustees of the Town of Erie Approving Change Order No. 1 to the Agreement with Tanko Lighting for a Streetlight Inventory Audit Services
Body
DEPARTMENT: Public Works
PRESENTERS: Tyler Kesler, Sustainability & Water Conservation Specialist
FISCAL SUMMARY:
Cost as Recommended: $ 5,525.40
Balance Available: $13,800
Budget Line Item Number: 100-70-780-560100
New Appropriation Required: No
STAFF RECOMMENDATION:
Recommendation
Approve the Resolution to amend said agreement, authorizing the appropriate Town officer to execute said change order, and authorize staff to expend budgeted funds.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
In June, the Town engaged Tanko Lighting to conduct an initial study for the Town to evaluate the costs and benefits of acquiring all existing streetlights in Town from Xcel and United, converting the streetlights to LEDs, and assuming responsibility for maintaining the streetlights on an ongoing basis. Tanko representatives presented the results of this initial study to the Board on June 16, 2020.
That initial study, which cost $3,000, made assumptions about the age and wattage of existing streetlights in Town and on projected maintenance expenses. Based on those assumptions, the study concluded the Town could save about $220,000 annually on energy and maintenance costs, recover the estimated $2 million acquisition and conversion cost in about 10 years, and result in net savings of about $2.4 million over a 20-year period. Thus, the initial study suggests acquiring the streetlights in Town presents the opportunity for the Town to reduce total operating costs associated with streetlights in Erie.
In August, the Town approved a contract with Tanko to conduct a comprehensive inventory and audit of the streetlights owned by Xcel Energy and United Power to more precisely quantify the likely savings and to inform possible negotiations with Xcel and United for the Town to acquire the streetlights. At the time, and based on information provided by each utility, staff estimated there were 1,827 streetlights throughout the Town. As the audit has progressed, Tanko has been determined there are currently 2,320 streetlights in Erie. To reflect this 27% increase in the number of lights to inventory, Tanko asked for and staff recommends approving a $5,525 (15%) change order addition to the original $36,175 contract.
This inventory audit will provide critical information should the Town choose to pursue negotiations with Xcel Energy in 2021. It will also help further the Town’s ability to achieve Sustainability Master Plan Energy Use Sector Targets, Priorities, and Strategies for optimizing energy use in Town.
Mentioned in the August Board Memo, and because this is the first time the Town has quantified the exact number of streetlights in Town, staff anticipated and budgeted for a 10% contingency. Staff also planned for a potential Change Order to pay for the streetlight inventory if it showed more streetlights than expected relative to the last data set provided by the utilities.
Tyler Kesler, the Town’s Sustainability & Water Conservation Specialist is available to address any questions.
Fiscal Impact:
$5,525.40 in addition to the original $36,174.60 contract. This amount is based on a projected inventory of 1,827 streetlights at $18.00 per light, with a 10% contingency for additional lights discovered during the audit. The additional $5,525.40 is to cover the remaining 310 lights that were located during the audit that exceed the 10% contingency. This amount results in an amount that is slightly less than the $18.00 per light in the original contract, but Tanko has agreed with this amount.
Tanko Lighting Cost
Feasibility Study (Town Administrator Approved) $ 3,000.00
Streetlight Inventory Audit (20-141) $ 36,174.60
Change Order 1 $ 5,525.40
Total 2020 Cost for Tanko Lighting $ 44,700.00
Board Priority(s) Addressed:
ü Attractive Community Amenities
ü Prosperous Economy
ü Well-Maintained Transportation Infrastructure
ü Safe and Healthy Community
ü Effective Governance
ü Environmentally Sustainable
ü Fiscally Responsible
ATTACHMENTS:
1. Resolution
2. Change Order 1