HomeMy WebLinkAboutPLN 05-17 C' a� Report to
�e Executive Committee
PICKERING
Report Number: PLN 05-17
Date: April 3, 2017
From: Kyle Bentley
Director, City Development & CBO
Subject: City of Pickering
LED Streetlight Conversion Program
File: D-7000-002
Recommendations:
1. That Council endorse staff's recommendation to retain Realterm Energy Corp. to
convert the City's High Pressure Sodium (HPS) and Mercury Vapour (MV)
streetlight luminaires to energy efficient Light Emitting Diode (LED) streetlight
luminaires;
2. That Council approve the award of a single source contract to Realterm Energy
Corp. in accordance with the City's Purchasing Policy, Item 09.09 in the amount of
$6,439,926.50 (HST included);
3. That the total gross project cost of$6,773,782.00 (HST included) including the
cost proposal from Realterm Energy Corp. and other associated costs, and the
total net project cost of$6,100,000.00 (net of HST rebate) be approved;
4. That Council authorize the Director, Finance & Treasurer to finance the total net
project cost of$6,100,000.00 as follows:
a) The sum of$3,880,000.00 as approved in the 2016 Capital Budget for
Streetlight Luminaries Replacement— Phase 2, be funded by a transfer from
the Federal Gas Tax Reserve Fund;
b) The sum of$1,500,000.00 as approved in the 2016 Capital Budget for
Streetlight Luminaires Replacement— Phase 2, be funded by a transfer from
the Rate Stabilization Reserve;
c) The sum of$500,000.00 as approved in the 2017 Capital Budget for
Streetlight Luminaires Replacement— Phase 3, be funded by a transfer from
the Independent Electricity System Operator (IESO) incentive grant;
d) An additional amount of $100,000.00 from savings realized in Tender
No. T-2-2017, Asphalt Resurfacing on Various City Streets, Trails, and
Driveways be applied to the Streetlight Luminaires Replacement— Phase 2
project to cover incremental costs and be funded by a transfer from the
Federal Gas Tax Reserve Fund;
PLN 05-17 April 3, 2017
Subject: LED Streetlight Conversion Program Page 2
e) The Phase 1 funding from Capital Project Account 5325.1603.7505 in the
amount of$120,000.00 funded by a transfer from the Federal Gas Tax
Reserve Fund be applied to the Streetlight Luminaires Replacement— Phase 2
project;
5. That the Mayor and Clerk be authorized to sign an agreement between the City
and Realterm Energy Corp. in a form satisfactory to the Director, Corporate
Services & City Solicitor;
6. That staff consult with the Whitevale and District Residents' Association on the
selection of a LED lighting luminaire that best reflects the character of the Heritage
Conservation District and that staff consider the preferred LED luminaire and
associated costs as part of the 2018 Capital Budget;
7. That the Director, Finance & Treasurer be authorized to make any changes,
adjustments, and revisions to amounts, terms, conditions, or take any actions
necessary in order to effect the foregoing; and
8. That the appropriate officials of the City of Pickering be authorized to take the
necessary actions as indicated in this report.
Executive Summary: In 2016, Realterm Energy Corp. (Realterm) was retained by
the City to complete an Investment Grade Audit (Audit) of the City's streetlight
infrastructure. According to the Audit, there are 7,234 streetlight luminaires of which
approximately 4,430 (61%) are cobra head streetlights and 2,804 (39%) are decorative
streetlights.
The analysis showed that by upgrading the City's streetlights to LED, the City would
experience a cost savings of approximately $456,000.00 in annual energy costs and
$235,000.00 in annual maintenance costs for a total savings of approximately
$691,000.00 annually. These savings will be directed towards the City's ongoing
operational costs. Also, LED streetlights provide other benefits including increased safety,
enhanced visibility, and reduced light pollution.
Local Authority Services (LAS), a wholly-owned non-profit company of the Association of
Municipalities of Ontario (AMO), undertakes bulk procurements of a number of
commodities, products and services for AMO's participating constituent municipalities.
Realterm was selected as the service provider for LAS as it has the financial capability to
serve the municipal marketplace. Given that Realterm has considerable knowledge of the
City's streetlight infrastructure and experience in delivering over 160 similar LED
streetlight conversion projects for municipalities across Ontario, staff is recommending
that Council award a single source contract to Realterm for the conversion of the City's
streetlights to LED.
PLN 05-17 April 3, 2017
Subject: LED Streetlight Conversion Program Page 3
The conversion program includes converting 7,234 streetlight luminaires to energy
efficient LED streetlight luminaires. Funds have also been allocated to cover the cost of
replacing 24 wooden poles within the Bay Ridges and West Shore Neighbourhoods.
There are also poles that require rewiring and associated underground directional drilling,
grounding rods installation, and landscape restoration work prior to the installation of the
LED luminaires. The total project cost for the conversion is $6,773,782.00 (including HST),
and the total net project cost is estimated at $6,100,000.00 (net of HST rebate).
With respect to the Whitevale Heritage District, it is recommended that the Whitevale and
District Residents' Association be consulted on the selection of a luminaire that best
reflects the historical character of the village prior to initiating any luminaire
replacement. Staff will report back with the preferred LED luminaire and associated
costs as part of the 2018 Capital Budget review process.
As part of the City's commitment to keep the community informed, staff will provide
regular progress updates of the LED Streetlight Conversion Program on the City website
and social media.
Financial Implications:
1. Project Amount
City Streetlight Luminaires LED Replacement and $5,699,050.00
Miscellaneous Repairs
HST (13%) 740,876.50
Total $6,439,926.50
2. Estimated Project Cost Summary
City Streetlight Luminaires LED Replacement $5,172,223.00
Miscellaneous Repairs (additional poles, trenching, $526,827.00
wiring and arm replacements)
Associated Costs
Incremental Costs for High Tension Wire Locations $100,000.00
Contingency
Sub Total $195,447.00
$5,994,497.00
HST (13%) 779,285.00
Total Gross Project Cost $6,773,782.00
HST Rebate (11.24%) (673,782.00)
Total Net Project Cost $6,100,000.00
PLN 05-17 April 3, 2017
Subject: LED Streetlight Conversion Program Page 4
3. Approved Source of Funds
2016 and 2017 Capital Budget
Expenditure Account Source of Funds Budget Required
5325.1603.6230 Federal Gas Tax $120,000.00 $120,000.00
5325.1604.6250 Rate Stabilization $1,500,000.00 $1,500,000.00
Reserve
5325.1604.6250 Federal Gas Tax $3,880,000.00 $3,880,000.00
5325.1705.6250 IESO Incentive $500,000.00 $500,000.00
Additional Funds Required Federal Gas Tax $0.00 $100,000.00
$6,000,000.00 $6,100,000.00
Project Cost under (over) approved funds by ($100,000)
Regarding expense account 5325.1603.6230, the City is not required to pay the
Investment Grade Audit costs if Realterm is retained for the LED Streetlight Conversion
Program, therefore those funds will be directed toward the project cost. The additional
funds of$100,000.00 required will be funded from the Federal Gas Tax Reserve
through savings realized from Tender No. T-2-2017 Asphalt Resurfacing on Various
City Streets, Trails and Driveways. These funds will be used for addressing luminaires
located near high tension hydro wires within a restricted zone. Lastly, receipt of the
$500,000.00 IESO incentive is subject to completion of the program.
For ease of tracking, expenses and approved funds will be consolidated under the main
account 5325.1604.6250 for the construction component.
Background: In 2016, the City retained Realterm, an infrastructure firm, to
conduct a detailed Audit of the City's streetlight network. The Audit included:
• evaluating the City's existing Geographic Information System (GIS) data of the
City's streetlight inventory
• working with Cree lighting to apply appropriate LED based lighting designs
• examining in detail the City's utility bills and maintenance costs
• establishing current baseline results for energy usage and maintenance costs
projecting the estimated costs and cost savings relating to the streetlight
conversion project
An excerpt from the Audit is attached to.this Report. •
PLN 05-17 April 3, 2017
Subject: LED Streetlight Conversion Program Page 5
The Audit not only included a financial summary (Table 1) and payback analysis (Table 2)
respecting the conversion, but also a detailed GIS mapping and comprehensive
database of the City's streetlight infrastructure. According to the database, there are
7,234 streetlight luminaires of which approximately 4,430 (61%) are cobra head
streetlights and 2,804 (39%) are decorative streetlights.
The LED conversion consists of installing 3000K (warmer white) luminaires on local
roads and 4000K luminaires (cooler white) on collector and arterial roads. LED
streetlight benefits include: operational savings, lower wattage and better optical control,
better visibility for motorists and pedestrians, and dark sky compliancy. In addition, all
LED luminaires will be configured with a seven pin receptacle that would enable
adaptive controls to be installed at a later date.
As a pilot project, Realterm proposes to arrange for the installation of 3000K and 4000K
luminaires along The Esplanade North and The Esplanade South at no cost to the City.
Information on this pilot project will be available on the City's website, posted to social
media and included in our Sustainable Pickering newsletter. In the image below, the
two clusters have been highlighted where the luminaires are proposed.
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Table 1 indicates that the City could experience a cost savings of approximately
$456,000.00 in annual energy costs and $235,000.00 in annual maintenance costs for a
total savings of approximately $691,000.00 annually. These savings will be used to
offset ongoing City operational costs.
PLN 05-17 April 3, 2017
Subject: LED Streetlight Conversion Program Page 6
Table 1: Financial Summary
Current Status Before Upgrade Post Upgrade Variance
Number of Luminaires 7,234 7,234
Annual Electricity 5,462,795 2,030,014 3,432,781
Consumption (kWh)
Annual Electricity Costs $844,743.00 $388,256.00 $456,486.00
Annual Maintenance $294,938.00 $58,988.00 $235,950.00
Cost (5 yr. avg.)
Total Streetlights $1,139,681.00 $447,244.00 $692,437.00
Expenditures
Average Annual Cost $157.55 $61.83 $96.00
per Luminaire
Table 2 indicates that the total project cost for the streetlight conversion will be
approximately $5.17 million. The savings will fund this project with a payback period of
approximately 6.9 years at today's hydro rate.
Table 2: Payback Analysis
Number of Luminaires
7,234
Total Project Costs
$5,172,223.00
Average Price per Luminaire
$712.00
Payback
6.9 years
LED streetlights have a product warranty of 10 years and typically last up to
100,000 hours (over 20 years in service), which will result in significant replacement
savings. Currently, there are monetary incentives offered by the Independent Electricity
System Operator (IESO) for streetlight conversions. The incentives are regulated
by IESO and are typically provided through local utilities. Through discussions with
Veridian, the City is eligible to receive an incentive amount of approximately
$500,000.00 which would be received after project completion. This amount is
being used to offset the costs associated with repairing and/or replacing the poles
within Bay Ridges and West Shore neighbourhoods. If the incentive amount is
greater than $500,000.00, the additional funds will flow into general revenues to
help fund the replacement of the pedestrian light fixtures along the Millennium
Square Boardwalk in 2018.
PLN 05-17 April 3, 2017
Subject: LED Streetlight Conversion Program Page 7
Discussion:
a) LAS, AMO and Realterm Explanation
Local Authority Services (LAS) is a wholly-owned nonprofit company of the Association
of Municipalities of Ontario (AMO) that undertakes bulk procurements of a number of
commodities, products and services for AMO's participating constituent municipalities.
LAS also offers a complete turnkey LED streetlight service to municipalities as LED
technology is considered reliable, superior and cost effective. Realterm was selected as
the service provider by LAS as it has the financial capability to serve the municipal
marketplace. Since 2013, Realterm has installed more than 150,000 luminaires in over
160 municipalities, including the City of Barrieand more recently the City of Oshawa.
b) City's Purchasing Policy
Staff have developed a good working relationship with Realterm during the Audit
process. This sentiment was also shared by other municipalities who have used
Realterm for their LED streetlight conversion project. Given that Realterm has
considerable knowledge of the City's streetlight infrastructure and experience in
delivering over 160 municipal LED streetlight conversion projects across Ontario, it is
beneficial to continue working with Realterm. In accordance with Section 09 of the
Purchasing Policy, staff is recommending that Council award a single source contract to
Realterm for the conversion of the City's streetlights to LED in lieu of going through the
competitive bid process.
c) LED Streetlight Conversion Exceptions
Notwithstanding the City's intent to convert roadway streetlighting to LED, there are
approximately 300 existing luminaires that will remain HPS. These luminaires include
regional roadway reconstruction sites where the streetlighting ownership has not yet
been transferred to the City, such as:
• Kingston Road at Brock Road
• Kingston Road at Liverpool Road
Brock Road north of Whitevale Road/Fifth Concession
There are other streetlights along roads within Pickering that are not part of the conversion
program. For example, the roadway lighting along certain sections of Brock Road
(Duffin Heights Neighbourhood) and Dixie Road (Liverpool Neighbourhood) is already
LED. The HPS streetlights that are along Highway 7 and Brock Road By-pass are not
part of the City's conversion program. These lights are the responsibility of the Ministry
of Transportation (MTO). MTO has been advised that any future installations should
reflect the City's LED standard.
PLN 05-17 April 3, 2017
Subject: LED Streetlight Conversion Program Page 8
Whitevale contains a mix of lighting luminaires along the roadways. It is recommended
that staff consult with the Whitevale and District Residents' Association to select a
luminaire that best reflects the character of the Heritage Conservation District. Staff
will report back with the preferred LED luminaire and associated costs as part of the
2018 Capital Budget review process.
d) Streetlight Pole Assessment Results
Realterm recommended that the City not have new LED luminaires installed on aged
wooden poles, but that Realterm supply the luminaires only and install them at a
later date when the poles are replaced. Of the 625 poles assessed within the Bay
Ridges and West Shore Neighbourhoods, only 24 wooden streetlight poles require
replacement. However, there are other poles that require rewiring and associated
underground directional drilling, grounding rods installation, and landscape restoration
work.
In the 2017 Budget, $500,000.00 was allocated to cover the cost for additional poles,
arm replacements, trenching, etc., to address the deficiencies. Replacement poles will
be installed with new LED luminaires. There are also wooden Veridian hydro poles that
support the City's streetlights requiring replacement. However, these hydro poles are
owned by Veridian. Information on the condition of hydro poles has been forwarded to
Veridian for their consideration.
e) High Tension Hydro Wires
The Realterm Audit also included a general cursory wiring inspection to identify any
potential difficulties where the luminaires are located near high tension hydro wires.
Realterm has recommended that each location be assessed with the goal of relocating
the affected luminaire to a safe location. Staff agrees and has recommended that the
project budget be increased by $100,000.00 to be funded from the Federal Gas Tax
Reserve. These funds will be used to engage the services of an engineer to assess
these locations and advise on a course of action.
f) Next Steps •
Subject to Council approval and various agreements being executed, Realterm will
order the required luminaires and begin to replace the existing HPS streetlight
luminaires with energy efficient LED lighting. Regular updates will be provided on the
project page of the City's website and Customer Care staff will be providing key
messages as the streetlight luminaires are replaced throughout the City. Realterm has
included a performance guarantee ensuring the LED streetlight conversion program is
completed by the end of this calendar year.
•
PLN 05-17 April 3, 2017
Subject: LED Streetlight Conversion Program Page 9
Attachment:
1. Excerpt from the Investment Grade Audit dated March 15, 2017
Prepared By: Approved/Endorsed By:
°,231.04Xt tri //e? 0,,41
Grant McGregor, MCIP, RPP Kyle Bentley, P. Eng
Manager, Strategic Initiatives & Sustainability Director, City Development & CBO
Mik Pelzow ki, CET Ri and Hol orn, P. Eng
Coordinator, Roads & Infrastructure D ector, Engineering Services
Maintenance Contracts
'74/3e-,
ewr Stan Karwowski, MBA, CPA, CMA
Director, Finance & Treasurer
GM:so
Recommended for the consideration
of Pickering City Council
Tony P � '�,.!. g
Chief Administrative Officer
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MARCH 15, 2017
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REALTERNI
ENERGY
0-0281
711"1.111k, courtesy of Cree Inc.
CITY OF PICKERING• INVESTMENT GRADE AUDIT MARCH 2017
March 15,2017
Grant McGregor
Manager,Sustainability&Special Projects
City of Pickering
One the Esplanade
Pickering,ON L1V 6K7
Dear Mr. McGregor,
We are pleased to present to you this revised Investment Grade Audit of your streetlight network.
We have concluded our detailed analysis of your street lighting system by revising the annual energy consumption
and savings estimates for the City of Pickering to reflect the proposed upgrade to LED based on the GIS/GPS
mapping. The street lighting network subject to upgrade is currently consuming 5,476,073 kWh. By upgrading to
LEDs,your projected annual energy consumption will fall substantially to 2,039,308 kWh resulting in 3,436,765 kWh
energy savings,equivalent to 63%consumption reduction.
The main body of this report will focus on the upgrade of your whole Lighting System to LED, including Cobrahead
and Decorative Fixtures. In addition to that,we have included project-specific results in the following Appendices:
- Appendix A: Upgrade of Cobrahead Fixtures Only
- Appendix B: Separate Costs to Upgrade Decorative Fixtures Only
- Appendix C: Pole Assessment Results
- Appendix D:Wiring Condition Report
This revision presents the results of lighting design plans that specify a colour temperature (CCT) of 3000K for
Cobraheads on local roads, while all other road types will receive 4000K CCT fixtures, including all Decorative
fixtures. The total project cost, in comparison to the desktop proposal presented in December 2015;has increased
to $5,172,223 as we found during the Audit that 39% of the fixtures assumed to be Cobra head are in fact
Decorative fixtures. The Desktop Proposal was created assuming that the 100% was composed by Cobrahead
fixtures only. Details of this work discrepancy are highlighted throughout the report. The IESO incentive is, at
present, estimated to be $500,000 and will be subject to variations at the discretion of the local utility. Finally, all
costs associated to prepare this Investment Grade Audit are covered in the project cost of$5,172,223.
We look forward to moving the project to the next phase. We will arrange for a meeting in approximately one
weeks time discuss the contents of this report, but until then please feel free to contact us should you have any
questions.
),L.,,,f)/ •
Sean Neely,
President
REALTERM
0-0281 •F! FR<lY
Pte. = -
CITY OF PICKERING• INVESTMENT GRADE AUDIT• MARCH 2017
EXECUTIVE SUMMARY
The table below summarizes our findings based on the lighting Inventory obtained through a GIS/GPS
audit of 7,665 fixtures and using up to date utility rates of your Hydro Company to calculate current and
projected electricity costs. The savings that will be achieved following the LED upgrade will be significant
and will benefit the entire City. Please note that during the IGA 350 fixtures were marked as "No
replacement" including all existing LEDs and some Decorative fixtures (i.e. Private Boxtops; lights in the
Park, School, and Trail; Floodlights; and fixtures owned by adjacent municipalities).
CURRENT STATUS BEFORE POST VARIANCE PERCENT
UPGRADE UPGRADE
Number of Fixtures 7,265 7,265
Annual Electricity Consumption(kWh) 5,476,073 2,039,308 3,436,765 63% -0-
Annual
Annual Electricity Costs $846,908 $389,894 $457,015 54%
Annual Maintenance Cost(5 yr. avg.) $296,202 $59,240 $236,962 80% V
Total Street Lights Expenditures $1,143,110 $449,134 $693,976 61% .J3.
Average Annual Cost per Fixture $157.34 $61.82 $96 61%
OPERATING COST COMPARISON
■Energy Cost ■Maintenance Cost ®Savings
$846,908
$389,894
Baseline DUT
The table below summarizes the financial results for the Design, Upgrade and Transfer(DUT) option:
D.U.T.
Number of Fixtures 7,265
Total Project Costs $5,172,223
1E50 Incentive -$500,000
Net Project Costs $4,672,223
Price per Fixture $643
Post IESO Incentive
Payback 6.3
3 REALTERM
—F\!R01
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1
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CITY OF PICKERING• INVESTMENT GRADE AUDIT• MARCH 2017
INTRODUCTION
RealTerm Energy has examined in detail the City of Pickering's existing streetlight network records to
produce this Investment Grade Audit.Our analysis included the following stages:
• Evaluate existing GPS/GIS data of the entire street light inventory of the City
• Reconcile differences between the City's and the Utility's records if required
• Work with Cree Lighting to apply appropriate LED based lighting designs
• Update the replacement LED fixtures from the desktop review
• Examine in detail the City's utility bills
• Confer with utility to address any questions or ambiguities found
• Examine detailed maintenance records of the City
• Establish baseline results for energy usage and maintenance costs
• Project revised estimated costs and cost savings
A summary of our findings, compared to our Desktop Review presented in 2015 is shown below:
DESKTOP IGA VARIANCE PERCENT
REVIEW RESULT
Number of Fixtures 7328 7,265 (63) -1%
Type of Fixture HPS/MV HPS/MV NA -
Energy Savings(%) 67.4% 62.8% -4.7% -
Energy Consumption(kWh) 5,255,295 5,476,073 220,778 4%
Projected Annual Electricity Costs $724,650 $846,908 $122,258 17%
Annual Maintenance Cost(5 year average) $310,562 $296,202 -$14,360 -5%
Average Annual Cost per Fixture $141 $157.34 $16.08 11%
Total Street Lights Expenditures $1,035,213 $1,143,110 $107,897 10%
Total Project Costs $3,537,306 $5,172,223 $1,634,917 46%
IESO Incentive -$726,108 -$500,000 $226,108 -31%
Net Project Costs after IESO rebate $2,811,198 $4,672,223 $1,861,025 66%
• The total project cost has increased due to the following reasons:
1. The proposal was calculated assuming that the whole inventory was Cobra heads. In the IGA,we found that
the number of Cobra heads represent only 61% of the streetlight inventory. The rest of the inventory is
composed by Decorative fixtures (39%), which are not only more expensive LED products but also more
expensive to install.
2. The Incentive amount is calculated based on the IESO rules that were in force before June 2016 as the City
was pre-approved for the incentive under these rules.
• However,if comparing only Cobra head fixtures,the difference represents an 13%increase on a per fixture basis.This
is mainly due to a minor increase in the price of Cree fixtures in 2016 but mainly due to the selection of 3000K fixtures
in local roads,which are less efficient than 4000K,requiring higher wattage fixtures to meet with Photometric Design
Standards. Please refer to Appendix A-Only Cobras for more details.
-...se No.
4
REAL-TERM
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CITY OF PICKERING• INVESTMENT GRADE AUDIT• MARCH 2017
GPS MAPPING
RealTerm Energy conducted a complete GIS inventory of the City of Pickering's streetlights and used the
information derived from this review to develop a detailed picture of the City's current streetlighting
network including the following:
• Accurate count of all fixtures and fixture types
• Wattage of each existing fixtures
• Length of fixture arms,fixture heights,setbacks from roadway, pole spacing, etc.
• Exact GPS coordinates
• Road classifications
• Hydro pole ID numbers(when available)
From this database,we Were able to assess the exact state of the City's streetlight inventory to enable us to
clearly define the current street light inventory and energy demand,which we use to accurately estimate the
energy savings obtained from the conversion of Pickering's current street lights to LEDs.
A detailed breakdown of the revised lighting inventory, obtained from the GIS/GPS audit appears below:
INVENTORY(Actual)
COBRA HEAD LIGHTS
TYPE SYSTEM QTY DEMAND(kW)
WATTAGE
Cobrahead HPS 70W 100 4 0.4
Cobrahead HPS 100W 130 2,775 360.8
Cobrahead HPS 150W 190 109 20.7
Cobrahead HPS 200W 250 957 239.3
Cobrahead HPS 250W 310 566 175.5
Cobrahead HPS 400W 460 17 7.8
Sentinel HPS 100W 130 2 0.3
TOTAL COBRA HEAD LIGHTS 1,-130 804.7
DECORATIVE LIGHTS
TYPE SYSTEM OTY DEMAND(kW)
WATTAGE
Decorative-Victorian Lantern Side Mount 70W 100 1 0.1
Decorative-Victorian Lantern Side Mount 100W 130 1582 205.7
Decorative-Victorian Lantern Side Mount 150W 190 412 78.3
Decorative-Victorian Lantern Side Mount-T •e 2(2 Arms) 130 4 0.5
Decorative-Box To• 200W 250 4 1.0
Decorative-Box To• -T •e 2 200W 250 486 121.5
Decorative-Box To• -T •e 3 200W 250 183 45.8
Decorative-Box To• -T •e 4 200W 250 7 1.8
D- • . v- -Vi • . L. - P. T•.�j'4.- 1 100W 130 125 16.3
D- • a iv- - B-II D.' I •yryugdjwp- 1-70W 100 31 3.1
TOTAL DECORATIVE LIGHTS '- 3
TOTAL LIGHTS
5 REALTERM
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CITY OF PICKERING•INVESTMENT GRADE AUDIT• MARCH 2017
LED REPLACEMENT INVENTORY
The reduced demand after the implementation of the LED street light upgrade will directly impact the annual
energy consumption, measured in kWh. Our findings show that the demand will be reduced by 802.4 kW.
This will result in energy savings 63% over the current consumption, equivalent to 3,436,765 kWh annually.
The table below illustrates the proposed changes to the City's inventory, based upon our examination of the
GPS data and lighting design results (see next page for more details on our design methodology).
LED REPLACEMENTS (Actual, Post-Upgrade)
COBRA HEAD LIGHTS
TYPE SYSTEM �, v DEMAND(kW) C
WATTAGE
38WBXSPR-HO-HT-2ME-60W-40K-UL-SV-N-Q5 38 265 10.1 DLC
38W_BXSPR-HO-HT-3M E-60W-40K-UL-SV-N-Q5 38 36 1.4 DLC
43W_BXSPR-HO-HT-2M E-60W-30K-UL-SV-N-Q6 43 1,102 47.4 DLC
43W BXSPR-HO-HT-2ME-60W-40K-UL-SV-N-Q6 43 100 4.3 DLC
43W BXSPR-HO-HT-3ME-60W-30K-UL-SV-N-Q6 43 66 2.8 DLC
43W BXSPR-HO-HT-3ME-60W-40K-UL-SV-N-Q6 43 20 0.9 DLC
49W_BXSPR-HO-HT-2LG-60W-40K-UL-SV-N-Q7 49 17 0.8 DLC
49W_BXSPR-HO-HT-2ME-60W-30K-UL-SV-N-Q7 49 154 - 7.5 DLC
49W_BXSPR-HO-HT-2ME-60W-40K-UL-SV-N-Q7 49 81 4.0 DLC
49W_BXSPR-HO-HT-3M E-60W-30K-UL-SV-N-Q7 49 66 3.2 DLC
49W_BXSPR-HO-HT-3M E-60W-40K-UL-SV-N-Q7 49 33 1.6 DLC
55W_BXSPR-HO-HT-2ME-60W-30K-UL-SV-N-Q8 55 66 3.6 DLC
55W_BXSPR-HO-HT-2ME-60W-40K-UL-SV-N-Q8 55 78 4.3 DLC
55W_BXSPR-HO-HT-3ME-60W-30K-UL-SV-N-Q8 55 27 1.5 DLC
55W_BXSPR-HO-HT-3ME-60W-40K-UL-SV-N-Q8 55 83 4.6 DLC
61W_BXSP1-HO-HT-2ME-100W-40K-UL-SV-N-Q5 61 216 13.2 DLC
61W_BXSP1-HO-HT-3ME-100W-40K-UL-SV-N-Q5 61 1 0.1 DLC
62W_BXSPR-HO-HT-2ME-60W-30K-UL-SV-N-Q9 62 135 8.4 DLC
62W_BXSPR-HO-HT-3M E-60W-30K-UL-SV-N-Q9 62 7 0.4 DLC
69W_BXSP1-HO-HT-2ME-100W-30K-UL-SV-N-Q6 69 190 13.1 DLC
69W BXSP1-HO-HT-2ME-100W-40K-UL-SV-N-Q6 69 140 9.7 DLC
69W_BXSP1-HO-HT-3ME-100W-40K-UL-SV-N-Q6 69 28 1.9 DLC
70W_BXSPR-HO-HT-3ME-80W-30K-UL-SV-N-Q8 70 9 0.6 DLC
79W BXSP1-HO-HT-3ME-100W-30K-UL-SV-N-Q7 79 14 1.1 DLC
79W_BXSP1-HO-HT-3ME-100W-40K-UL-SV-N-Q7 79 1 0.1 DLC
6 REALTERM .
0-0281 -ENERGY
Client Initials:
l
FAN `,5-y (
CITY OF PICKERING• INVESTMENT GRADE AUDIT MARCH 2017
LED REPLACEMENT INVENTORY
LED REPLACEMENTS Continued (Actual, Post-Upgrade)
COBRA HEAD LIGHTS
TYPE SYSTEM O.TY DEMAND(kW) DLC(`)
WATTAGE
88W_BXSP1-HO-HT-2LG-100W-40K-UL-SV-N-Q8 88 31 2.7 DLC
88W BXSP1-HO-HT-2ME-100W-40K-UL-SV-N-Q8 88 49 4.3 DLC
88W_BXSP1-HO-HT-3ME-100W-40K-UL-SV-N-Q8 88 208 18.3 DLC
99W_BXSP1-HO-HT-2ME-100W-30K-UL-SV-N-Q9 99 5 0.5 DLC
99W BXSP1-HO-HT-2ME-100W-40K-UL-SV-N-Q9 99 32 3.2 DLC
99W_BXSP1-HO-HT-3ME-100W-30K-UL-SV-N-Q9 99 15 1.5 DLC
99W BXSP1-HO-HT-3ME-100W-40K-UL-SV-N-Q9 99 35 3.5 DLC
112W BXSP2-HO-HT-3ME-165W-40K-UL-SV-N-Q5 112 13 1.5 DLC
125WBXSP2-HO-HT-2ME-165W-40K-UL-SV-N-Q6 125 27 3.4 DLC
125WBXSP2-HO-HT-3ME-165W-40K-UL-SV-N-Q6 125 541 67.6 DLC
143WBXSP2-HO-HT-3ME-165W-40K-UL-SV-N-Q7 143 9 1.3 DLC
156WBXSP2-HO-HT-3ME-165W-40K-UL-SV-N-Q8 156 55 8.6 DLC
160WBXSP2-HO-HT-3ME-165W-40K-UL-SV-N-Q9 160 475 76.0 DLC
OTAL COBRA HEAD LIGHTS 4,430 338.8
7 REALTERM
0-0281 - "it
Client Initials:
Vu� J
CITY OF PICKERING• INVESTMENT GRADE AUDIT• MARCH 2017
DECORATIVE LIGHTS
SYSTEM DEMAND
TYPE WATTAGE QTY (kVV)
( )
40W_K601D-S-P4NL-III-40(SSL)-8060-120-4K-ONPR7-BK 40 1,932 77.3 NOT DLC
75W_K601D-S-P4NL-III-75(SSL)-8060-120-4K-ONPR7-BK 75 67 5.0 NOT DLC
57W_PRV-A15-D-UNV-T2-MA-BZ-10K-PER7 cw MAST ARM ADAPTER 57 17 1.0 DLC
57W_PRV-AI5-D-UNV-T2-SA-BZ-10K-PER7 57 213 12.1 DLC
57W_PRV-A15-D-UNV-T2-SA-BZ-10K-PER7 cw PIPE ARM ADAPTER 57 2 0.1 DLC
57W PRV-A15-D-UNV-T4-MA-BZ-10K-PERT cw MAST ARM ADAPTER 57 166 9.5 DLC
57WPRV-A15-D-UNV-T4-SA-BZ-10K-PER7 57 196 11.2 DLC
57W PRV-A15-D-UNV-T4-SA-BZ-10K-PER7 cw PIPE ARM ADAPTER 57 5 0.3 DLC
87WPRV-A25-D-UNV-T2-SA-BZ-10K-PER7 87 3 0.3 DLC
87W PRV-A25-D-UNV-T4-SA-BZ-10K-PER7 87 32 2.8 DLC
143WPRV-A40-D-UNV-T4-SA-BZ-10K-PER7 143 46 6.6 DLC
18W_247CL 10LEDE35 MVOLT 4K R5 P7 PCLL NL LDR 18 1 0.0 NOT DLC
73W_247CL 20LEDE10 MVOLT 4K R2 P7 PCLL NL LDR 73 53 3.9 NOT DLC
73W_247CL 20LEDE10 MVOLT 4K R3 P7 PCLL NL LDR 73 71 5.2 NOT DLC
70W ECOSWAP-CAND1-65W42LED4K-R-RLE3-UNIV-HS 70 31 2.2 NOT DLC
OTAL DECORATIVE LIGHTS 2,835 137.3
TOTAL LIGHTS 7,265 476.1
• DesignLights Consortium - DLC listed products are LED products that have been tested at a DLC approved
laboratory and that comply with specified performance and energy efficiency criteria. These products are
eligible for IESO incentive under the prescriptive approach. For further information please visit the DesignLights
Consortium website at www.designlights.orq. The 'Not DLC listed' products are not eligible for the IESO
incentive prescriptive amount, but will be still be eligible for incentives under the Engineering amount. Please
note that in the table above,2 different types of decorative lights are not eligible for IESO incentives as they are
not DLC listed. We have chosen these lights and are recommending them to you because in our professional
opinion they are equivalent quality and energy efficiency,and have the same type of independent testing as that
done for DLC-listed lights.
• Please note that King Luminaire Fixtures are currently not DLC listed, however they are expected to be listed
before the are ordered,and will therefore be eligible for incentive under the prescriptive amount.
FORECASTED CHANGES IN ENERGY DEMAND
Desktop Review Investment Grade Difference
Audit
Ener• Demand •re-u••rade (kW) 1,217.9 1,278.6 60.7
Ener. Demand •ost u••rade k 396.7 476.1 79.4
Difference (kW) -821.2 -799.3 21.9
8 REALTERM
0-0281 -E\EAG Y
Client Initials:
CITY OF PICKERING•INVESTMENT GRADE AUDIT• MARCH 2017
LED LIGHTING DESIGN
RealTerm Energy's technical evaluation team reviewed the collected geospatial dataset and
formulated a hybrid approach to completing roadway designs for the City. After evaluating the
configuration of each light fixture for road classification, pedestrian activity, pole spacing, mounting
height, arm length and curb setback,we were able to conclude that Pickering can achieve the same or
better light levels than those of its current incumbent street lights. The lighting design as suggested
for the most part does not meet RP-8 lighting levels, however RP-8 is a recommendation and not
required practice for roadway illumination.
Those portions of Pickering's lights points that do not meet RP-8 could be in that situation for a
number of reasons, including:
• Inadequate Pole Spacing (poles are spaced too far apart),
• Insufficient Mounting Height, or
• Missing Light Fixtures(at essential locations to eliminate gaps).
We concluded that in order to fully comply with RP-8 guidelines, the high costs of the required pole
additions, replacements, rewiring and retrenching would render the project uneconomical.
Our analysis concludes that in all instances where RP-8 could not be achieved with a new LED fixture,
this was also the case for the currently installed fixture. In those instances, photometric design has
been utilized to select an LED luminaire in which the wattage and distribution pattern combine to
meet or exceed the lighting levels of the currently installed fixtures.
Based upon the replacement luminaires detailed in the following pages,we anticipate that the impact
on the City's annual energy consumption will be as follows:
ICS':
ENERGY CONSUMPTION Desktop Review %
Rei jIt
Current Annual Energy Consumption (kWh) 5,255,295 5,476,073
Projected LED Annual Energy Consumption (kWh) 1,711,579 2,039,308
Annual Savings(kWh) 3,543,716 67% 3,436,765 63%,
9 REALTERM
0-0281 -F\FRcv
i
- . PLS( to -11
CITY OF PICKERING• INVESTMENT GRADE AUDIT MARCH 2017
Type Qty. Replacement Before After (')
COBRAHEAD
Cobrahead 2,343 Cree
irBXSPR HOdiri
Cobrahead 965 Cree
41111 K°WIL
BXSP1 HO
Cree
Cobrahead 1,120 BXSP2 HO 41111" rill .
(Dusk to Dawn) 2 Cree
Sentinel- HPS BXSPR HO
\ 4 ir
(*)Pictures are for illustration purposes only and do not necessarily match the exact model chosen by RealTerm Energy.
10 REAL-TERM
0-0281 -ENEROY
T --1V vim- \��
CITY OF PICKERING• INVESTMENT GRADE AUDIT• MARCH 2017
Type Qty. Replacement Before Picture After Picture (*)
DECORATIVE
Decorative King Luminaire
Victorian K601 D
Lantern Side 1,999 COACH
Mount LANTERN -
LED
Decorative Acuity Brands
Victorian American
Lantern Post
125 Revolution . I
To T e 1 LED .7411 ►'�`�
p yp Series 247CL . .
Decorative- Eaton Cooper
Box 680 PRV
Top Prevail LED
Decorative-
Bell ECOSWAP-
Downlighting- 31 CAND1
Type 1
(*)Pictures are for illustration purposes only and do not necessarily match the exact model chosen by RealTerm Energy.
Important notes:
• The existing 2 "(Dusk to Dawn) Sentinel — HPS" and are recommended to be converted to Cobrahead style
fixtures(XSPR HO).This is being recommended so the new luminaires can provide appropriate lighting levels and
to also standardize the inventory to be deployed in the City during the Conversion project. The project cost
includes the removal of existing bracket,and the supply and installation the new arm with complete wiring.
- The proposed 1,999 King Luminaire K601D COACH LANTERN — LED and the 125 Acuity Brands American
Revolution LED Series 247CL fixtures have been specified with no lenses. This was specified in order to achieve
good lighting levels while achieving the most energy savings possible. Should the City be interested in frosted
lenses, it should be noted that there will be an implication on the energy savings and the total project costs. In
addition,frosted lenses can generate a glare effect compromising the lighting levels and quality.
• Following an inventory review the below fixtures were removed from the Scope of Work:
• Cobrahead fixtures around the Hwy 407 and Hwy 7 reconstruction area
• Whitevale Heritage fixtures- "Other Down Lighting fixtures"
• Victorian Lantern Post Tops along Duncannon Dr.and Grafton Ct "Decorative Victorian Lantern Post
• Top-Type 3(2 Arms)fixtures"
11 REALTERM
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PLN oS - \
CITY OF PICKERING INVESTMENT GRADE AUDIT• MARCH 2017
ENERGY COST ANALYSIS
VERIDIAN'S LOAD PROFILE
Streetlights are not metered, but rather ANNUAL LOAD PROFILE
deemed to be 'on' and therefore billed 451430 465
based upon a Load Profile, determined375 372 403
by the LDC. The annual load profile is a 313 285 277 310 343
critical part of the Baseline calculation, 258
used to project the actual energy
consumption and future energy savings 3 z 31
3 3 3 3 3 3 3 3 3
that will be realized after the upgrade.
The load profile utilized by Veridian 1 2 3 4 5 6 7 8 9 10 11 12
Connections, Pickering's LDC, appears
at right. •Operating days ■Estimated operating hours per month
I
VER.1DIAN
CONNECTIONS
BASELINE ENERGY CALCULATIONS
Utilities charge for two types of fees: fixed and variable. The fixed fees will remain the same before
and after the upgrade because that rate is charged on a per connection basis, while the variable
components of the bill vary depending on the consumption, also known as 'demand'. Higher fixed
fees as a percentage of the total mean less dollar savings from the upgrade due to a change in
demand.
Fixed Fees Variable Fees Total Cost Veridian
Fixed
Fees
7%
Before $61,026 $785,882 $846,908
Variable
After $61,026 $328,868 $389,894 Fees
93%
Savings ($457,015)
12 REALTERM
0-0281 ENTREE,/
PLN -1' 1
CITY OF PICKERING- INVESTMENT GRADE AUDIT MARCH 2017
MAINTENANCE ANALYSIS
BASELINE MAINTENANCE
HISTORICAL ANNUAL MAINTENANCE COSTS
NMI Amount -----Average
$296,202
$343,148 $326,568
$301,883
$232,772
2010 2011 2012 2013 2014
J
We have examined the maintenance costs for a period of 5 years with data provided by the City. The
average is $296,202 per annum, which equates to roughly a cost per fixture of$41 (pro rated for the
scope of fixtures included in this IGA). This average is in line with the average expenditure we have
compiled for Ontario communities of similar size. We conservatively estimate that ongoing LED
maintenance will equate to 80% savings over current HPS expenditures, or approximately$236,962 in
the first year. The maintenance cost savings are expected to increase by 2% after the first year to
account for inflation.
Energy & Maintenance Total Savings
DUT CONTRACT
Before After 1"Year Savings
Energy $846,908 $389,894
Maintenance $296,202 $59,240
Tota I $1,143,110 $449,134
13 REALTERM
0-0281 -r• RON
PLNos - V7
CITY OF PICKERING INVESTMENT GRADE AUDIT• MARCH 2017
PROJECT COSTS AND FINANCIAL OPTIONS
The following illustrates the Design, Upgrade and Transfer (DUT) Option options which is available to the
City to finance its LED upgrade. In the DUT, it is assumed that the City itself arranges the financing for the
project.
DESIGN, UPGRADE AND TRANSFER
PROJECT COSTS, SAVINGS AND INVESTMENT RETURN
PROJECT COSTS PROJECT SAVINGS VALUE VARIANCE
Number of Fixtures 7,265 LED Energy Consumption 2,039,308 kWh 63%
Total Project Costs $5,172,223 Year 1 LED Energy Costs $389,894 54% '
IESO Incentive $500,000 Year 1 Maintenance Costs $59,240 80%
Net Project Costs $4,672,223 Year 1 Operating Costs $449,134 $693,977 J
Price per Fixture $643 Year 1 Cost per Fixture $62 $96
FINANCIAL APPRAISAL OF THE PROJECT
Design, Upgrade &Transfer
Payback Period(Years)* 6.3
IRR 10.2%
NPV** $1,313,217
(`)Payback is calculated by dividing the Net Projects(Before including any financing costs)by the energy and maintenance cost savings,which have an annual
increase rate of 3%and 2%respectively.
(•')Discount rate:5%
Important note about the IESO Incentive:
Based on communications between RealTerm Energy, LAS and Veridian,the estimated incentive is calculated to be
approximately $500,000, and is subject to variations at the discretion of the local utility. This incentive amount
reflects King Luminaire Fixtures which are expected to be approved under DLC before the completion of the
project.
14 REALTERM
0-0281 -ENERGY
Client initials:
LN b5-- �7
CITY OF PICKERING• INVESTMENT GRADE AUDIT• MARCH 2017
The total project cost includes provisional allowances as detailed below:
COBRAHEAD DECORATIVE
Qty. Qty.
Re-wiring 50% 2,215 50% 1,418
Re-fusing 100% 4,430 100% 2,835
Fuse Holder Replacement 50% 2,215 50% 1,418
Arm Replacement 2% 89 0% 0
Secondary Connection Refresh 25% 1,108 0% 0
Night Work(to reduce traffic congestion during 15% 672 0%° 0
the day)
Billing of Provisional Items
All of the work covered by the allowances listed above is recommended because it will minimize the
likelihood of service calls over the life of the fixtures, greatly reducing life-cycle cost maintenance costs.
Following the installation phase, should fewer than the estimated provisional amounts be required
(rewiring, refusing, arm replacement, etc.)the costs shall be adjusted in the final billing, based on actual
work performed. During the installation phase, and if additional work is required,the Municipality will be
notified before these allowances are exceeded.
Any additional work must first be authorized by the Municipality and will be handled as a change order.
Luminaires near high tension wires within a restricted zone:
In the case where street light fixtures are located near high tension wires within a restricted zone,
we identify 3 different approaches to address and solve the issue while ensuring safety. The exact
quantity of the fixtures located within the restricted zone can be identified only in the installation
phase.
• Safety is always the number one priority, and to that end we will assess each location with the
goal of relocating the affected luminaire to a safe location. This may involve the services of an
engineer and additional costs imposed by the LDC, both of which will become a pass-through
to the Municipality. However, we anticipate that there is a return to the Municipality through
lower maintenance costs(fewer service calls)to the luminaire in the future.
• Engage the services of high voltage crews to replace the existing luminaires, though these
come at a premium price. This option is not recommended as it does not solve any future
access issues.
• RealTerm Energy supplies the fixtures only (uninstalled) and the Municipality will work in
conjunction with the local utility to install them.
If, during the installation, we find luminaires near high tension wires within a restricted zone, we
will work with your Municipal staff to determine which approach the Municipality prefers.
15 REALTERM
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1\F R(i Y
Client Initials:
-
PW o5
CITY OF PICKERING• INVESTMENT GRADE AUDIT-MARCH 2017
GREENHOUSE GAS REDUCTION
ESTIMATED GREENHOUSE GAS REDUCTION Desktop Review IGA Results
Current Annual Energy Consumption (kWh) 5,255,295 5,476,073
Projected LED Annual Energy Consumption (kWh) 1,711,579 2,039,308
Annual kWh Savings 3,543,716 3,436,765
Estimated Annual GHG Reduction (metric tonnes) * 269 137
GHG Reduction over Luminaire Life(metric tonnes)* 6,195 3,162
*GHG emissions depend on the electricity supply mix of the jurisdiction and time of use.These have been calculated using
the most current,verified emissions factors found in the average emissions for 2014,released by Environment Canada in the
2016 National Inventory Report. The GHG Annual Reduction over the Luminaire life is obtained by multiplying the estimated
annual GHG Reduction by 23, the luminaire life span (100,000 life hours divided by approximately 4,283 operating hours
annually).
41.14
atax
a7 '
Ordfr
1 �
16 REAL-TERM
0-0281 -ENERGY
PLN 05-F7
CITY OF PICKERING• INVESTMENT GRADE AUDIT• MARCH 2017
CALCULATION ASSUMPTIONS
• The electricity cost savings were calculated based on Veridian Connections' current rates valid at the date
of the preparation of this IGA. This information can be obtained online on the Ontario Energy Board
website1.The annual energy savings and the new LED street lighting system were calculated based on the
data collected by the GIS/GPS mapping. Any changes in the below data will have, as an effect, changes in
the energy consumption savings and in the energy cost savings.
Type of Light # of Lights Total Demand Total Demand Annual
Before (kW) After (kW) Operating Hours
Cobra Head 4,430 804.7 iw38.8 l 4,283 ill
Decorative and Other 2,835 473.9 137.3 4,283
Area Lighting
• In Ontario, all electricity rates reflect the wholesale electricity price in some way. In the street lighting rate
the variations of the wholesale electricity prices are reflected by the Monthly Average Hourly Price and the
Global Adjustment. The Monthly Average Hourly Price and the Global Adjustment are changing monthly.
In our calculation for Monthly Average Hourly Price we used $0.01626/kWh and for Global Adjustment we
used $0.09673/kWh. These prices are the average prices of the last 12 months. The current and the
historic Monthly Average Hourly Prices and Global adjustment prices are available on the IESO website2.
• In the calculation of the energy cost of the LED lighting system we assumed that there will be no savings
on the distribution volumetric rate, because this will be a matter for negotiation between the City and its
LDC.This is the reason why although the energy consumption savings will be 63%,the energy cost savings
is listed as only 54%. We have adopted this very conservative approach to protect the interests of the City
as it plans ahead.
• We have assumed that the saveONenergy program continues to be in effect as promised, using the
currently published rates, and that there will be no unexpected delays on the part of our partners which
would prevent us from meeting the deadline for the City to receive this incentive. While we will do
everything we can to meet the requirements of this program and to gain this incentive for the City,
RealTerm Energy cannot take responsibility for those aspects which are outside of its control.
• HST was not included thorough our calculations.
Ontario Energy Board.Electricity Distribution Rate Applications.Retrieved from
http://www.ontarioene rgyboard.ca/OEB/Industry/Regulatory+Proceedjnas/Applications+Before+the+Board/Electricity+Distribution+Rates/2017+Electr
jcity+Distribution+Rate+Applications
2 Independent Electricity System Operator.Price Overview-Monthly Average Hourly Prices,By Year.Retrieved from
htto://www.ieso.ca/Pages/Powe r-Data/price.aspx
17 REALTERM
0-0281 -r,r g,i v
Client Initials: