Date: June 24, Subject: LED Street Light Conversion Project

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1 Date: June 24, 2014 To: From: Mayor Mary Smith and Council Members 4. c) Scott Warren, Facilities Maintenance and Special Projects Coordinator R. Lane Vance, Manager of Financial Services Subject: LED Street Light Conversion Project Status: For Endorsement Recommendation That the report entitled LED Street Light Conversion Project be received for information: and That Council accept the procurement process undertaken by Local Authority Services (LAS), a wholly owned subsidiary company of the Association of Municipalities of Ontario, for the selection of a LED streetlight upgrade turn-key service; and That the execution of a Letter of Intent with LAS service partner RealTerm Energy be approved, for the design and upgrade of LED streetlights; and That By-law # , a by-law to authorize the Letter of Intent with RealTerm Energy be forwarded to the by-law section of the agenda for Council consideration. Information As advised at the May 27, 2014 regular meeting of Council, the Township is in the process of completing the Corporate Energy Management Plan for approval by July 1, Under this plan the Township is required to put forth its plans for energy conservation and demand management. Energy savings related to street lighting has emerged as one of the first areas that municipalities typically investigate. The following information is provided in support of a conversion to LED street lighting throughout the Township of Selwyn. Background on LAS/Realterm Offering After observing the marketplace for several years, Local Authority Services (LAS), a wholly owned not for profit subsidiary of the Association of Municipalities of Ontario (AMO), has decided to offer LED streetlights to the municipal market because the technology is reliable, superior, and now very cost-effective. LAS developed this service to help ensure municipalities could protect existing assets, remove risk, and maximize savings while upgrading to top quality LED lighting. LAS has assembled a team that includes the financial strength and expertise of RealTerm

2 Page 2 of 5 Energy with the market leading product supply of Cree Lighting Canada. Cree offers a ten year warranty on all component parts. The RealTerm offering recommended by staff is referred to as Design, Upgrade, Transfer. In this offering, a Municipality can take advantage of RealTerm Energy s turn-key solution where they act as an external Project Manager to upgrade the network, while balancing the municipality s requirements and constraints to ensure that it gets the lighting results it needs. This option is for those municipalities wishing to selffinance the design and upgrade of their lighting network, but where RealTerm Energy coordinates the entire process including: A full review and inventory through GPS mapping of the existing lighting system Work with lighting staff and outside lighting consultants to design a new LED system Outline potential energy and maintenance savings Provide complete summary of costs for the proposed project (next report to Council) Highlight and secure available OPA incentives Undertake the build-out and commissioning of the project and transfer the warranties to the municipality Background on LED Lighting LED lamps do not contain a gas-filled bulb or filament but use charged electrons that jump through a semi-conductor chip and then emit photons (light) when they land on the other side. A single LED lamp may have many chips. This construction makes LEDs highly resilient and efficient. As a result, LEDs offer a number of advantages over High Pressure Sodium, Metal Halide or Mercury Vapour lights including: Much lower power consumption ranging from 40-70% energy savings. Long, predictable lifetime. LED lights do not burn out. Instead, they lose brightness over time, while generally lasting many times longer than a conventional fluorescent or incandescent light up to 100,000 hours. The much less frequent need to service or replace LEDs means low maintenance cost. More accurate color rendering. The color rendering index is the ability of a light source to correctly reproduce the colors of the objects in comparison to an ideal light source % of respondents in retrofitted municipalities preferred LED over other types of lighting. Quick turn on and off. LEDs come on with full brightness instantly. Unlike mercury vapor, metal halide and sodium vapor lamps (commonly used in street lighting), LEDs do not have a problem restarting immediately (hot ignition) following a brief power failure or inadvertent turn off.

3 Page 3 of 5 Environmentally Positive. LEDs don't contain mercury or lead, and don't release poisonous gases if damaged. Less attractive to nocturnal insects. Nocturnal insects are attracted to ultraviolet, blue and green light emitted by conventional light sources. Higher light output even at low temperatures. While fluorescent lights are comparably energy efficient, on average they tend to have lesser light output at winter temperatures. Less wasted light. Light from LEDs is very directional and they do not require diffusers or reflectors that reduce lighting efficiency. As a result, light does not shine where it is not wanted, such as into street-side bedroom windows. Enhanced Safety via longer life and fact they will never leave an area in complete darkness as well as enhanced colour rendering which makes areas appear better lit with same or less actual foot candles than HPS or metal halide. By upgrading our existing inventory of streetlights to LED under this program the Township will be able to: Significantly reduce our energy and maintenance budget Dramatically improve the quality of light offered to our citizens Enhance the natural environment both by consuming less energy and by avoiding light trespass Beautify our community while boosting security Obtain a detailed, GPS-based inventory of all streetlights within the Township to support the Township s asset management plan Ensure that old streetlight heads are disposed of in an environmentally responsible manner. Analysis of Savings The following charts provide details of our streetlight inventory and an analysis of the LED upgrade. In addition, an overview of the savings impact of switching to LEDs in terms of dollars and kilowatt hours, as well as the reduction in greenhouse gases is highlighted in gray.

4 Page 4 of 5 Our current street light inventory and costs Number of fixtures 605 Type of fixtures HPS / MV / MH Projected Annual Electricity Costs $98,299 Annual Maintenance Costs (base on 5 year average) $18,081 Average Annual Cost per Fixture $192 Total Annual Street Light Expenditure $116,380 LED upgrade details Total Number of New Cree LED Fixtures 605 Year 1 LED Energy Costs $48,142 Year 1 LED Maintenance Costs $3,616 Inflation Rate 3% Design Hours 70,000 Total Project Costs $379,291 Average Cost per Fixture (net of OPA rebate) $604 Year 1 Total Energy and Maintenance Savings $64,621 OPA Rebate ($13,702) Annual kwh Savings 274,043 Estimated green house gas reduction Current Annual Energy Consumption (kwh) 398,473 Projected LED Annual Energy Consumption (kwh) 124,430 Annual kwh Savings 274,043 Estimated Annual GHG Reduction (metric tonnes) 27.4 GHG Reduction over Luminaire Life (metric tonnes) 411 Strategic Plan References This project touches on all five goals of our Strategic Plan. The project has direct impact on the initiatives in: Goal # 3 - Support a sustainable, balanced, and investment-ready community Goal # 4 Incorporate green principles in decision making. Goal # 5 - Cultivate partnerships and promote collaboration. It also will allow for numerous good news communications and provide examples of excellent service delivery: Goal # 1 Foster a healthy, engaged and connected community Goal # 2 - Achieve excellence in governance and service delivery.

5 Page 5 of 5 Financial Impact This project is not included in the approved tax budget for The costs for this project can be funded internally or could be financed with a loan from Infrastructure Ontario. In either case, the annual loan payments will be more than covered by the savings in electrical and maintenance costs. Based on the above noted analysis, a direct pay back can be achieved in just over five (5) years. This would be much the same process as the Township used in the microfit solar installations, with savings being used for additional sustainability initiatives. The final financing option recommendation to Council will be provided after Realterm has completed its detailed inventory/cost summary report and before the actual retrofit project is commenced. Scott Warren Prepared By: R. Lane Vance Prepared By: Janice Lavalley Scott Warren Facilities Maintenance and Special Projects Coordinator R. Lane Vance Manager of Financial Services Treasurer Approved By: Janice Lavalley Chief Administrative Officer