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HomeMy WebLinkAbout8 LED Lightening Retrofit of the District Headquaters Building Agenda Item # 8 TRUCKEE DONNER Public Utility District CONSENT To: Board of Directors From: Scott Terrell Date: October 03, 2012 Subject: Consideration of a LED Lighting Retrofit of the District Headquarters Building 1. WHY THIS MATTER IS BEFORE THE BOARD The item before the Board is a proposed contract for the TDPUD Headquarter Energy Efficiency Lighting Retrofit project that is greater than $15,000 and requires Board approval. 2. HISTORY The District strives to find opportunities to reduce costs and increase performance. One area that the District has been exploring over the years is cost-effective energy gY efficiency projects on our own facilities. These projects help reduce District costs which benefits all of our ratepayers. Doing cost-effective and innovative energy gY efficiency projects on our own facilities was also one of the major recommendations from the Citizens Advisory Conservation Committee (i.e. 'Walk the Talk'). } In recent years, the District has replaced the lighting in the truck bays, customer service Office, and the employee kitchen. We have also contracted with Enovity for a full building energy assessment and have implemented many of the building systems stems and controls projects that were recommended based on their return on investment. The District's first Light Emitting Diode (LED) energy efficiency project was done in 2009 in the General Managers office and some small 'screw-in' LED projects have p been completed (MR1 6's above customer service counter, etc. . Although h these g projects have been very successful, the majority of the lighting in the Districts headquarters remain the less efficient T8 fluorescent tubes. 3. NEW INFORMATION The opportunity exists to upgrade a significant portion of the remaining fluorescent lighting in the Districts headquarters to high-efficiency LED lighting. LED technology is widely acknowledged as the next generation of commercial lighting but in the past, . g g p , the costs have been high and the LED product quality/reliability has not matched manufacturers claims. This remains an issue, but recently the industrystandards for reporting LED product reliability technology,have matured and the LED lightingtechnolo in , general, has matured in both quality and reliability. LED lighting technology technolo is also proving to, not only improve light quality and color, but also have positive impacts on employee health, productivity, and morale. The District issued a Request for Proposal (RFP) to design, procure, and install LED , lights in the Districts headquarters. The scope of work included both indoor and v a a outdoor lighting and projects in the Board room, Conservation Department, Engineering offices, Warehouse offices and breezeway, miscellaneous T8's, and the outdoors wallpacks/cobra heads. The total project involves replacing over 600 T8 tubes, 45 PAR 38s, and 13 outdoor wallpack/cobra heads. Vendors were asked to submit a time and material quote for the design phase (with a budgetary estimate and not to exceed total) along with an installed costs for the various LED lights to either retrofit existing fixtures or supply both new fixtures and LED's. The project is expected to be completed before the end of the year. The District released the RFP on September 7, 2012, advertised in the Sierra Sun, and conducted a pre-proposal meeting and walk-through of the project on September 14, 2012. The District received three proposals from En3rgy, Root of Design Electric, and Norris Electric. A scoring committee consisting of members from multiple departments and the En3rgy proposal was evaluated unanimously as most advantageous to the District (Average Score: En3rgy (86), Root of Design Electric g (80), and Norris Electric (54)). En3rgy is a local company with impressive LED technology. The District has used an early generation En3rgy T8 LED tube in the General Manager's office and have provided rebates on multiple local En3rgy LED lighting projects (Plumas Bank, Truckee Tahoe Unified School District, Tahoe Forest Hospital District, and Clear Capital to name a few). All En3rgy products use well-established LED Diodes from US manufacturers and the En3rgy proposal was bolstered by a significant En3rgy gY manufacturers rebate available through a United States Department of Energy grant. The En3rgy proposal estimated annual savings to the District of over $11 1000 when considering energy costs and reduced maintenance/replacement costs. Staffs calculations show simple paybacks between 5-10 years in the typical office installations that lower to 3-4 years when the lights are operated continuously. Other benefits to the District includes reduced maintenance. 4. FISCAL IMPACT The contract for the TDPUD Headquarter Energy Efficiency LightingRetrofit project is p 1 for a base amount of $147,164 with a 10% change order authorization of $14,716 for a total contract amount not to exceed $161,880. The En3rgy proposal does include a guaranteed manufacturers rebate on the T8 LED tubes of $60,466 so the net cost to the District for this project is expected to be --$87,000. Sufficient funds exist in the FY12 Conservation Department and Facilities budgets for this project. 5. RECOMMENDATION Award a contract to En3rgy for the TDPUD Headquarter Energy Efficiency Lighting g Retrofit project in a base amount of $147,164 with a 10% change order authorization of$14,716 for a total contract amount not to exceed $161,880. Steven Poncelet Michael D. Holley Public Information & Conservation Manager General Manager