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Home My WebLink About06/05/2012 LED Streetlight Fixture Rescind BidMount Prospect Public Works Department 1 INTEROFFICE MEMORANDUM TO: VILLAGE MANAGER MICHAEL E. JANONIS FROM: DIRECTOR OF PUBLIC WORKS DATE: MAY 30, 2012 SUBJ: LED STREETLIGHT FIXTURES FOR KENSINGTON BUSINESS CENTER Background On November 16, 2010, the Village Board awarded a contract to Precision Products Plus, Inc. (Precision Products) of Montclair, California for the purchase of 54 light emitting diode (LED) streetlight fixtures. These fixtures were to be installed on Village -owned streetlight poles in the Kensington Business Center. The attached map denotes the project area. The purchase was facilitated by two (2) energy efficiency grants: an Energy Efficiency Community Block Grant (EECBG) and an Illinois Department of Commerce and Economic Opportunity (DCEO) grant. In tandem, these two grants funded the entire purchase; no expenditure of Village funds was necessary. The Village Board approved the purchase following a motion to waive bidding procedures. This motion was necessary due to a dearth of acceptable retrofit LED streetlight products in the marketplace. Subsequent to Village Board approval, staff placed an order with Precision Products in January 2011. Since then, Precision Products has shipped product on four (4) separate occasions. All shipments have been rejected due to numerous product quality and design issues. The most recent shipment was received on May 18, 2012. It was preceded by a letter from staff to Precision Products that recapitulated their poor performance to date and established a date certain (May 14, 2012) by which an acceptable product must be delivered. As indicated, the shipment did not arrive on time and, upon examination, was found to still have several craftsmanship and design defects. Problem Statement It is the opinion of staff that Precision Products is incapable of designing, manufacturing, and delivering an acceptable LED retrofit streetlight fixture suitable for installation as a roadway light in the Kensington Business Center. Page 2 of 4 LED STREETLIGHT FIXTURES FOR KENSINGTON BUSINESS CENTER MAY 30, 2012 Discussion Since 2010, the LED lighting industry has made significant advances in technology and product offerings. In fact, most traditional streetlight manufacturers now offer LED retrofit products. Such was not the case in 2010. In fact, the Precision Products fixture selected in 2010 was actually a prototype device intended to position the firm as an early adopter of LED technology in the streetlighting industry. Consequently, our recent search for a fixture to replace the Precision Product streetlight head has yielded several products conventionally manufactured by established streetlight producers: Manufacturer s Hadco Model Cobra Unit Cost $725.00 Cree LED Lighting Cobra $790.00 General Electric Cobra $901.10 General Electric Shoebox $1,208.70 All of the lights listed above satisfy the American Resource Recovery Act (ARRA) "Buy American" purchasing provisions stipulated in the EECBG and DCEO grants. Additionally, all of the above listed products can be delivered within four (4) weeks after an order is placed. The lowest cost alternative, the Phillips Hadco "cobra" fixture, exceeds the cost of the original Precision Products fixture by $150 per unit. The Phillips Hadco light costs $725 per unit. The Precision Products light cost $575 per unit. However, recent developments in LED streetlighting technology have also been commensurate with developments in the application of streetlighting standards to LED lights. As a consequence, all of the above lights have been specifically designed to illuminate a roadway of the width found in the Kensington Business Center when installed on poles and arms of the height and length currently in place. Conversely, the Precision Products fixture was designed as simplistic approximation of the output from a 400 -watt high pressure sodium light; its design did not include important environmental factors such as roadway width, pole height, and arm length. Staff obtained and installed samples of the Phillips Hadco "cobra" light, the Cree LED Lighting "cobra" light, and the GE "shoebox" light. It is the opinion of staff that the Phillips Hadco light performed best during field testing in the Kensington Business Center. It provided better illumination than the other products and cast it as desired on the roadway. Staff also found the Phillips Hadco light adequately designed and crafted featuring good access to routine maintenance components such as the LED driver and the LED bulbs. Additionally, the mounting hardware for the Phillips Hadco light was extremely flexible allowing the light to be adjusted on all axes so that the light can be mounted parallel to the roadway regardless of pole or arm angle. Page 3 of 4 LED STREETLIGHT FIXTURES FOR KENSINGTON BUSINESS CENTER MAY 30, 2012 The Phillips Hadco light "cobra" design is a markedly different aesthetic when compared to the existing "shoebox" style light installed in the Kensington Business Center. The photograph at right depicts the Phillips Hadco light. Although different, it is the opinion of staff that the installed light presents an acceptable appearance. The light depicted features a flat black finish. If ordered, the light would have a bronze /brown finish to match the existing poles and arms. It is the opinion of staff that a direct investment of Village funds in the amount of $14,615.35 is worthwhile. To begin with, it is relevant to note that the streetlight heads in the Kensington Business Center have reached the end of their useful life and are due for replacement irrespective of grant funding opportunities. Replacing the existing lights with an in -kind high pressure sodium fixture would cost approximately $1,300 per unit for a total project material cost of $70,200. There would be no meaningful future reduction in energy consumption to mitigate this expense. There is no grant money available to offset such an expenditure; it would be fully borne by the Village. Conversely, a $14,615.35 direct investment in this LED retrofit project provides a reasonable payback period. Assuming that the replacement of 54 streetlight fixtures garners electrical energy savings worth $3,618 in the first year and this savings increases at a rate of 1.5% (inflationary cost of electricity) in subsequent years, the investment will be returned in 3.9 years. Finally, it is important to note that the EECBG grant contains provisions requiring the project to be fully completed no later than August 20, 2012. This performance requirement provides insufficient time to let public bids for streetlight fixtures. Recommendation Staff requests the Village Board to consider the following motions: Page 4 of 4 LED STREETLIGHT FIXTURES FOR KENSINGTON BUSINESS CENTER MAY 30, 2012 Motion 1: Rescind award to Precision Products Plus, Inc. of Montclair, California in the amount of $31,050 for 54 "shoebox" style LED streetlight fixtures. Motion 2: Waive rules for public bidding and award a contract for the purchase of 54 Phillips Hadco LED streetlight fixtures to Graybar Electric of Glendale Heights, Illinois in an amount not to exceed $39,150. Sean P. Dorsey Cc: Village Clerk Lisa Angell Deputy Director of Public Works Jason Leib Water /Sewer Superintendent Matt Overeem Project Engineer Donna Brown Administrative Analyst Mike Dallas N N +F KENSINGTON BUSINESS CENTER Map Info S as of May 2012 PROJECT AREA Street Light LED Retrofit VOMP LIGHTS (54) IRONWOOD-DR z El Z w 0 [ 011 LLJ Z/ z - 4 �E4 jq .. ... . ......... 0>� — �� i � 1 � � "01 ❑ 1 1 il EE El El A 0 D w Kil [j 4 El Ej] 2i F. 4. 0 - - D LJ ❑ El w TO z i 0 ❑ ❑ ............................................ en . . . ................................. . . ...... 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