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Home My WebLink About04/07/1998, C-6 - ADDITIONAL CONVERSION OF TRAFFIC SIGNALS TO LED LAMPS council -, 9 j acEnaa RepoRt Ih=N C I T Y OF SAN LUIS OB I SP O FROM: Mike McCluskey,Public Works Director Prepared By: Gary Keavney,Signal Maintenance Electrician Joe McDermott, Street Maintenance Supervisor David Elliott,Administrative Analyse i SUBJECT: Additional Conversion of Traffic Signals to LED Lamps CAO RECOMMENDATIONS: 1) Award a purchase order in the amount of$8,526.38 to Synchronex for traffic signal LED lamps 2) Provide$8,900.00 for acquisition of traffic signal LED lamps by appropriating$3,180.00 from a PG&E rebate and$5,720.00 from the unappropriated balance of the general fund DISCUSSION On November 18, 1997 the Council approved a$40,200 project to replace 339 incandescent traffic signal lamps-with light emitting diode lamps. These replacements were planned for all City-owned signals except those in downtown, for reasons explained below. $10,800 of that project cost will be recovered through a PG&E rebate. The remaining$29,400 will be recovered through energy savings in about 17 months. About one third of the new lamps have been received and installed. Public Works is now proposing to replace an additional 106 lamps in the downtown area The original prices are still available, and the PG&E rebate period has been extended. Because the downtown signals are on fixed timing, Public Works was at first not sure if the payback period through energy savings would be short•enough to justify the replacement. Recent calculations have confirmed a relatively short 19 month payback period. (Expected lamp life is 10 years.) The LED lamps also offer two important safety features: 1)Although one or more of the individual diodes within a lamp may burn out,the other diodes will continue operating. On an incandescent lamp,if the single bulb bums out,the lamp will not operate until the bulb is replaced. 2) Because of the low power demand,it is feasible to run LED lamps on backup battery power during extended electrical outages. The Signal Maintenance Electrician in Public Works will install the new LED lamps during the months of May and June 1998,when the incandescent bulbs are scheduled for annual preventive maintenance replacement. Estimated total installation time will be 30 hours. FISCAL IMPACT Lamp Acquisition Price $ 8,526.38 Rebate Amount $ 3,180.00 Net Project Cost $ 5,346.38 Annual Cost Savings $ 3,121.00 Simple Payback Period 1.7 Years Although the project appropriation will lower the general fund balance by a small amount,the long term savings and very short payback period justify making this investment in improved technology at this time. 2otl Conversion of Traffic Signals to LED Lamps [_(o'/ Council Agenda Report-Additional Conversion of Traffic Signals to LED Lamps Page 2 Although the project appropriation will lower the general fund balance by a small amount,the long term savings and very short payback period justify making this investment in improved technology at this time. The requested$8,900.00 appropriation will cover the current$8,526.38 purchase price plus a $348.38 negative account balance caused by unanticipated handling charges on two previous LED lamp purchases. ATTACHMENTS Proposal Original Agenda Report for LED lamp purchases f � al 1199 N. Fifth Street, San Jose,CA 95112 TO WHOM IT MAY CONCERN Synchronex has received a large order from the City of San Diego, California. This order is for LED Traffic Signal Retrofit units as shown below. One of the contract requirements is that we must off the same prices to governmental agencies located in San Diego County. Our source of supply, Ecolux Inc., is allowing us to offer these same prices to other governmental agencies located anywhere in California, if those agencies are planning on a citywide replacement program. If you are considering using LED traffic signal heads,we encourage you to participate in this "one time" opportunity. It is my understanding that governmental agencies have the authority to "piggyback" on other governmental agency contracts. Please note that the City of San Diego is using the financial services of Pitney-Bowes Credit Corporation, on a lease-purchase contract Let us know if you would like any details on this type of financing. The following are the unit prices agreed to in the City of San Diego contract: 12" Red Ball LED retrofit signal $114.50 each 12" Red Arrow LED retrofit signal $ 70.00 eachy� 8" Red Ball LED retrofit signal $ 75.00 each 0-6l `� o . The following delivery, terms=and-conditions apply to ay purchase made on this offer: Delivery: 60-90 days ARO g",,S f/f 7 ea�� Terms: 1%-21 days, net 30 days F.O.B.: Destination, freight prepaid, and allowed. f Please contact the undersigned on this offer. Sincerely, 152 Marie L. Girardot /ce .- . '�. Z Sales Representative 1S )d S � y Telephone: (408) 275-8392----F4'x: (408) 275-8396 } council m-7 ; o ,7 j acEnaa nEpont C I T Y OF SAN LU I S O B I S P O FROM: Mike McCluskey,Public Works Director Prepared By: Gary Keavney,Signal Maintenance Electrician Joe McDermott,Street Maintenance Supervisor David Elliott,Administrative AnalytN j SUBJECT: Conversion of Traffic Signals to LED Lamps CAO RECOMMENDATIONS 1) Award a purchase order in the amount of$40,198.37 to Synchronex for traffic signal LED lamps 2) Provide$40,200.00 for acquisition of traffic signal LED lamps by appropriating$10,800 from a PG&E rebate and$29,400 from the unappropriated balance of the general fund DISCUSSION For about two years Public Works has closely monitored development of light emitting diode (LED)lamps for use in traffic signals. LED technology has improved enough that the City now specifies red and orange LED lamps for new signal installations,but high initial prices have prevented Public Works from justifying a conversion of existing signals to LED lamps. Because of the short term availability of volume purchasing and utility rebates,though,Public Works is now recommending a project to replace 339 incandescent traffic signal lamps with light emitting diode (LED)lamps. The City's traffic signals now use light from incandescent lamps projected through colored lenses. At least six companies manufacture traffic signal lamps composed of several LEDs(which are most commonly seen on digital displays for calculators,electronic equipment,and appliances.) These LED lamps replace incandescent lamps and lenses in existing traffic signals and provide remarkably lower electricity consumption and much longer service life. For example,a 12-inch diameter red incandescent lamp(called a"red ball")draws 136 watts of electricity and lasts about one year. By contrast,a 12-inch diameter red LED lamp draws only 14 watts of power and lasts about ten years. The LED lamps also offer two important safety features: 1) Although one or more of the individual diodes within a lamp may bum out,the other diodes will continue operating. On an incandescent lamp,if the single bulb burns out,the lamp will not operate until the bulb is replaced. 2) Because of the low power demand,it is feasible to run LED lamps on backup battery power during extended electrical outages. L-� Council Agenda Report-Conversion of Traffic Signals to LED Lamps Page 2 The City of San Diego recently solicited competitive bids for 13,745 LED lamps and awarded a contract to Synchronex. Contract provisions allow other cities to tag onto this high-volume acquisition and purchase LED lamps at the same low unit prices. To verify the superiority of these prices,Public Works solicited informal quotations from two other manufacturers of LED lamps. The lower of these two quotations was 32 percent higher than the price from Synchonex. As a bonus,PG&E offers rebates on various sizes of LED lamps purchased and installed before June 30, 1998. Rebate applications must be submitted before November 30, 1997. Public Works proposes converting the following lamps,at locations where operating characteristics offer a reasonable payback period: 108 12-inch red balls 93 8-inch red balls 41 12-inch red arrows 97 orange hand signs(on pedestrian signals) In addition,Public Works proposes buying two additional lamps of each type as spares. Green balls and arrows are not feasible to convert because cost is too high and proper color renditionhas not been perfected. Amber balls and arrows are not feasible because they do not stay lighted long enough to accumulate required energy savings. There is a 90 day delivery period,so the new lamps wound arrive in late February or early March 1998. The Signal Maintenance Electrician in Public Works would install the new LED lamps during the months of March through June 1998,when the incandescent bulbs are scheduled for annual preventive maintenance replacement. Estimated total installationtime would be 100 hours. FISCAL EM PACT Lamp Acquisition Price $ 40,198.37 Rebate Amount $ 10,800.00 Net Project Cost $ 29,398.37 Annual Cost Savings $ 20,913.00 Simple Payback Period 1.4 Years Although the project appropriationwill lower the general fund balance by a small amount,the long term savings and very short payback period justify making this investment in improved technology at this time. Attachments Attachment A-Calculation of Net Project Cost Attachment B -Calculation of Annual Cost Savings Conversion of Traffic signals to LED Lamps C