HomeMy WebLinkAbout9 Contract for LED Point of Sale Programends 1
To: Board of Directors
From: Steven Poncelet
Date: September 07, 2016
Subject: Consideration of a Contract for LED Point of Sale Program
1. WHY THIS MATTER IS BEFORE THE BOARD
This matter is before the Board as the proposed contract with Greenlite exceeds
$15,000 and requires Board approval.
2. HISTORY
The District has been delivering cost-effective energy efficiency programs to our
customers for over a decade. Residential lighting energy efficiency programs have
been the major contributor to the energy efficiency savings to the District and our
customers and we have relied heavily on CFL give -a -ways and rebates. CFLs are
now being replaced by LED technology and the District has been handing out limited
numbers of LEDs through our Residential Energy Surveys, LED Rebates, and to
school children in the District through the Trashion Shows. Due to the higher costs of
LEDs as compared to CFLs, the District has not yet done wide -spread give -a -ways of
LEDs.
Point -of -sale (POS) discounts of LEDs are an established method of delivering lighting
programs to customers across California and nationally. Many California electric
utilities, particularly in the larger metropolitan areas, have POS programs working with
the larger big -box retailers such as Home Depot, Lowes, Costco, Walmart, etc.. NV
Energy runs POS programs in Reno at multiple retailers. POS programs can be
complicated to set-up and do require local partners willing to host the POS program
and capable of tracking sales and reporting results.
In late 2015, Northern California Power Agency (NCPA) developed a POS LED
Program on behalf of their members. They conducted a competitive procurement for
POS LED light bulbs and program delivery - including selection of local retailers - and
Greenlite was the winner. NCPA procured this program on behalf of the members
and the District did a trial POS LED Program with Greenlite/Mountain Hardware and
Sports in the first quarter of 2016. The program included three types of ENERGY
STAR qualified LED screw in light bulbs (A19's, BR30's, and Globes) with discounted
customer pricing ranging from $1.99 to $3.49 and the District's incentive ranging from
$4.75 to $6.05 per bulb (as compared to the District's up to $5 per bulb LED rebate).
This program was very well subscribed with Mountain Hardware selling out of all of the
LED light bulbs in a matter of weeks. District Staff did ask our Evaluation,
Measurement, and Verification (EM&V) consultant to review this trial program to
ensure that District customers were the ones buying the discounted LEDs, that the
District's discounts were motivating the purchases, and that the program was cost-
effective. The EM&V consultant conducted exit surveys of program participants during
the trail and concluded that the vast majority of purchases were from District
customers, that the District's financial incentive was motivating the purchase, and that
the program was cost-effective.
3. NEW INFORMATION
This District has an opportunity to continue the LED POS Program with Mountain
Hardware and Sports and Greenlite has provided improved pricing for the program.
The NCPA contract has been completed but Greenlite has agreed to enter into a
contract directly with the District for the same technical and program delivery scope of
work, but with improved pricing. The results of the trial program were favorable as
evaluated by the District's EM&V consultant. Staff is proposing to increase the
program spending to an amount not to exceed $45,000 and are modifying the mix of
LED light bulbs, based on EM&V results, to now include a 75 and 100-watt equivalent
A19's, BR30, and filament LED bulbs. District Staff believe that there is enough
demand to sell the full contract amount before the end of 2016 which would help
strengthen the District's overall EM&V results for 2016.
4. FISCAL IMPACT
The contract with Greenlite for the LED POS Program would be for an amount not to
exceed $45,000 with a 10% change order authorization of $4,500 for a total contract
amount not to exceed $49,500. Sufficient funds exist in the approved FY16
Conservation Department budget for this expenditure.
5. RECOMMENDATION
Authorize the General Manager to execute a contract with Greenlite for the LED POS
Program for an amount not to exceed $45,000 with a 10% change order authorization
of $4,500 for a total contract amount not to exceed $49,500.
Steven Poncelet
Public Information &Conservation Manager
Michael D. Holley
General Manager