Item 9 Staff Report Authorization to Participate in PG&E's LED Traffic Signal Light Bulb Rebate ProgramCOUNCIL AGENDA REPORT
DATE: December 28, 2000
TO: MAYOR AND TOWN COUNCIL
FROM: TOWN MANAGER
MEETING DATE:1/16/01
ITEM NO. i
SUBJECT: AUTHORIZATION TO PARTICIPATE IN PG&E'S LED TRAFFIC SIGNAL
LIGHT BULB REBATE PROGRAM
A. AUTHORIZE TOWN PARTICIPATION IN PG&E'S LED REBATE
PROGRAM
B. AWARD BID FOR SUPPLY OF LED TRAFFIC SIGNAL BULBS TO
FORTEL COMMUNICATIONS IN THE AMOUNT OF $93,451.43
C. ACCEPT QUOTE FROM SMI/PEEK TO INSTALL LED TRAFFIC
SIGNAL BULBS IN THE AMOUNT OF $12,540
D. AUTHORIZE PROJECT BUDGET AS NOTED IN BUILDING
MAINTENANCE FUND (FUND 695)
RECOMMENDATION:
1. Authorize Town participation in PG&E's LED rebate program.
2. Award bid for supply of LED traffic signal bulbs to Fortel Communications in the amount
of $93,451.43.
3. Accept quote from SMI/PEEK to install LED traffic signal bulbs in the amount of $12,540.
4. Authorize project budget as noted in Building Maintenance Fund (Fund 695).
BACKGROUND:
The Town has the opportunity to be reimbursed for installing energy efficient traffic signal light
bulbs, and save considerable future energy costs by conserving electrical energy use. Town Council
approval is requested for staff to purchase the new traffic signal bulbs in the amount of $93,451.43,
and to have them installed at a cost of $12,540. Notwithstanding PG&E's currently reported
financial difficulties, PG&E will then provide a rebate in excess of $79,000 if the Town acts soon.
It is expected that the Town will save in excess of $54,000 per year on electrical energy costs if this
project is completed.
PREPARED BY: Larry I. Perlin
Director of Parks & Pub'ic Works
N:ID&EICNCLRPTSII.,ED-tc r Lwpd
Reviewed by: Attorney
Revised: 1/11/01 11:59 AM
Reformatted: 7/ 14/99
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: PG&E LED TRAFFIC SIGNAL LIGHT BULB REBATE PROGRAM
December 28, 2000
DISCUSSION:
A traffic signal "head" controls traffic by burning a green, yellow, or red incandescent bulb as
directed by the signal controller. A typical incandescent bulb for a 12-inch signal head burns at 135
to160 watts. These bulbs are cheap, but burn out often, and they must be replaced at least annually.
A new alternative is available to incandescent bulbs using Light Emitting Diodes (LED) technology.
LED signal lights are similar to a display that can be found on old calculators, with tiny red lights
making up the numbers, but at a larger scale. LED lights can provide intense brightness at a very
efficient rate of energy consumption, and they last much longer than incandescent bulbs. If looked
at closely, you may be able to tell if an existing red signal bulb is an LED bulb because LED bulbs
are made from many small LED's as opposed to a single bulb. The traffic signal at Los Gatos
Boulevard and Blossom Hill Road for example has red LED signal bulbs.
A typical LED traffic signal bulb consumes less than 17 watts of electrical power. That is a
reduction in energy consumption of approximately 88% compared to when incandescent bulbs are
burning. (Because a signal system also requires power for overhead safety lighting, yellow lights,
the signal controller, and other miscellaneous electrical components, the actual dollar amount of
savings cannot be computed simply by multiplying the current signal energy bill by 88%.)
Over the past few years, the Town has converted several of its red traffic signal lights to LED bulbs
when the appropriate opportunities have arisen. However, LED bulbs are considerably more
expensive than incandescent bulbs. The price range for the various types of LED bulbs is $50 to
$160, versus $10 to $20 for an incandescent bulb. Recently, the Town applied and has been
approved for a PG&E rebate, whereby PG&E will rebate the full cost of most types of LED bulbs
after the Town purchases and installs the bulbs. With this rebate program, staff recommends
retrofitting all red and green incandescent signal bulbs with LED bulbs. Since the yellow bulbs only
burn for approximately 3 seconds each cycle, it is not cost effective to change out those bulbs.
Fortel Communications notified staff about the PG&E rebate program, and worked with staff to
apply for and successfully receive a PG&E LED Traffic Signal Rebate Reservation in November
before all the rebate funding was allocated. PG&E will maintain funds obligated to Los Gatos if
progress is made on retrofitting the Town's incandescent signal bulbs with LED bulbs in the next
few months.
In November, staff inventoried the bulbs at each of the Town's 27 signalized intersections and
developed a solicitation for LED bulbs from suppliers. Bids for the purchase of LED bulbs were
then received on December 19, 2000, and are summarized as follows:
1.
Fortel Communications
$ 93,667.75
?.
Synchronex, Inc.
$ 95,663.29
3
JAM Services, Inc.
$111,322.44
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: PG&E LED TRAFFIC SIGNAL LIGHT BULB REBATE PROGRAM
December 28, 2000
Fortel Communications is a reputable vendor and has provided other LED products for the Town in
the past.
The cost breakdown by Fortel Comunications for each type of L.E.D. bulb required by the Town is
as follows:
Description
Oty
Unit Price
Total Price
Red Ball 12"
120
$66.00
$7,920.00
Red Arrow 12"
57
$53.00
$3,021.00
Red Ball 8"
122
$51.00
$6,222.00
Green Ball 12"
185
$152.80
$28,268.00
Green Arrow 12"
89
$97.00
$8,633.00
Green Ball 8"
122
$81.80
$9,979.60
Yellow Flashing 12"
4
$90.00
$360.00
Pedestrian Hand / Walking Person Combo
137
$161.50
$22,125.50
Subtotal
836
$86,529.10
8% Sales Tax
$6,922.33
Total Materials (Fortel)
$93,451.43
Installation (SMI/Peek)
836
$15.00
$12,540.00
Grand Total Project
$105,991.43
Rebate Funding After Purchase (PG&E)
($79,070.00)
Net Cost of Project
$26,921.43
Time to recover this cost from energy
savings
181 days
Theoretical time to produce cost savings is calculated as follows:
836 LED bulbs, multiplied by - 130 watts savings per bulb, = 108 kilowatts.
Divide 108 kilowatts by 2, since in each signal head, red or green will be 'on', = 54 kilowatts
Reduce 54 kilowatts by 8% to account for rare 4-headed signals, = 50 kilowatts
Hours to produce savings = $26.9k divided by (50kwatt * $.124/K-watt-hr) = 4,340 hours
Days to produce savings to Town = 4,340 hours divided by 24 hr/day = 181 days (approx. 6 mos.)
Town will save - $149 per day in energy costs ($54,385 per year).
These figures are approximate and reflect the recent 9% electric rate increase granted to PG&E.
PAGE 4
MAYOR AND TOWN COUNCIL
SUBJECT: PG&E LED TRAFFIC SIGNAL LIGHT BULB REBATE PROGRAM
December 28, 2000
PG&E's rebate pays for 100% of most LED bulb types and the sales tax. The Town is responsible
for a small portion of the cost of the pedestrian Hand/Walking Person combination bulb, and
installation of the bulbs. PG&E requires the installation of 'Type 1' LEDs, which are hard -wire
retrofitted into the signal head, and not simply screwed in. Bulbs must be installed by June in order
for the Town to collect the rebate. Beyond saving considerable money, the Town can do its part to
conserve energy during the current energy shortage in California and beyond.
SMI/Peek is the Town's traffic signal maintenance contractor and will install and maintain LEDs
as part of their existing maintenance contract for $15 per signal bulb, or $12,540 total.
Given the above, staff recommends that Council formally authorize the Town's participation in the
program and accept both the bid submitted by Fortel Communications to supply the bulbs, and the
quote submitted by SMI/PEEK to install the bulbs. Because of the attractiveness of PG&E's LED
rebate program and the unstable energy supply situation in the State, it is expected that other
agencies will be ordering large quantities of LEDs. Thus, the sooner the Town acts, the less likely
it will experience any delivery problems due to LED production delays.
The tentative schedule for this project is as follows:
January 16, 2001
January 25, 2001
April, 2001
May, 2001
Council Authorizes Purchase Orders and Accepts Rebate
Purchase Orders printed and signed
LEDs received by Town
LEDs installed by SMI/Peek
ENVIRONMENTAL ASSESSMENT:
Is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT:
Source of funds for Traffic Signal LED Bulb Replacement Program:
PG&E Rebate $ 79,070
Building Maintenance Fund (Fund 695) $ 26,920
Total Source: $105,990
Use of funds for Traffic Signal LED Bulb Replacement Program:
LED Signal Bulbs $ 93,450
Installation Costs $ 12,540
Total Use of Funds: $105,990
Town Council Minutes January 16, 2000
Redevelopment Agency Los Gatos, California
RATIFICATION OF PAYROLL/NOVEMBER- DECEMBER 2000 (05.V)
Motion by Mr. Attaway, seconded by Mr. Glickman, that Council ratify the check registers for the
payrolls of November 26 through December 9, 200, paid on December 15, 2000 and December 10,
2000 through December 23, 2000, paid on December 29, 2000, in the amount of $470,466.78.
Carried by a vote of 4 ayes. Mr. Blanton absent.
ACCOUNTS PAYABLE/RATIFICATION/DECEMBER 2000-JANUARY 2001 (06.V)
Motion by Mr. Attaway, seconded by Mr. Glickman, that Council ratify the accompanying check
registers for accounts payable invoices paid on December 15, 2000, December 29, 2000 and January
5, 2001 in the amount of $1,285,760.78. Carried by a vote of 4 ayes. Mr. Blanton absent.
TREASURER'S REPORT (08.02)
Informational report submitted by the Treasurer to the Council for the month ended November 30,
2000 was received and filed.
TRAFFIC SIGNAL LIGHT BULB REBATE/PG&E PROGRAM (09.41)
Motion by Mr. Attaway, seconded by Mr. Glickman, that Council authorize Town participation in
PG&E's LED rebate program; award bid for supply of LED traffic signal bulbs to Fortel
Communications in the amount of $93,451.43; accept quote from SMI/Peek to install LED traffic
signal bulbs in the amount of $12,540; and authorize project budget as noted in Building Maintenance
Fund (Fund 695). Carried by a vote of 4 ayes. Mr. Blanton absent.
DEVELOPMENT APPLICATION FEES/RESOLUTION 2001-1 (11.31&09)
Motion by Mr. Attaway, seconded by Mr. Glickman, that Council adopt Resolution 2001-1 entitled,
RESOLUTION OF THE TOWN OF LOS GATOS ADOPTING FEES FOR DEVELOPMENT
APPLICATIONS THAT ARE REFERRED BACK TO THE PLANNING COMMISSION BY
THE TOWN COUNCIL AND ESTABLISHING APPEAL FEES FOR APPEALS OF
DIRECTOR OF COMMUNITY DEVELOPMENT AND DEVELOPMENT REVIEW
COMMITTEE DECISIONS. Carried by a vote of 4 ayes. Mr. Blanton absent.
POSITION & CLASSIFICATION/SENIOR COORDINATOR/RESOLUTION 2001-2 (12.29)
Motion by Mr. Attaway, seconded by Mr. Glickman, that Council adopt Resolution 2001-2 entitled,
RESOLUTION OF THE TOWN OF LOS GATOS AMENDING THE POSITION AND
CLASSIFICATION PLAN TO ESTABLISH THE CLASSIFICATION OF SENIOR
COORDINATOR. Carried by a vote of 4 ayes. Mr. Blanton absent
GOLDEN GATEWAY LIBRARY NETWORK/RESOLUTION 2001-3 (13.32)
Motion by Mr. Attaway, seconded by Mr. Glickman, that Council adopt Resolution 2001-3 entitled,
RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING LOS GATOS LIBRARY
TO JOIN THE GOLDEN GATE LIBRARY NETWORK. Carried by a vote of 4 ayes. Mr.
Blanton absent
NETWORK TECHNOLOGY GROUP/COMPUTER CONSULTING/RESOLUTION 2001-4 (14.42)
Motion by Mr. Attaway, seconded by Mr. Glickman, that Council adopt Resolution 2001-4 entitled,
RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN MANAGER
TO ENTER INTO AN AGREEMENT WITH THE NETWORK TECHNOLOGY GROUP
FOR COMPUTER NETWORK CONSULTING SERVICES. Carried by a vote of 4 ayes. Mr.
Blanton absent
TC:D13:MM011601
3