SR-506-003-06 (3)
F:\PCD\Share\StaffReports\LEDprogram.msw Santa Monica, California
Council Meeting: January 23, 2001
To: Mayor and City Council
From: City Staff
Subject: Recommendation to Appropriate $293,000 to the City's LED (Light
Emitting Diode) Retrofit Program, Award Bid to Furnish and Deliver Light
Emitting Diodes (LED) for Vehicle Signal Heads, Bid #2825, and Award a
Purchase Order to Peek Traffic/Signal Maintenance Inc. for the Installation
of LED Traffic Signal Modules
Introduction
This report recommends the City Council appropriate $293,000 to the City's LED retrofit
program, award a bid to furnish and deliver red and green light emitting diodes (LED) for
vehicle signal heads, Bid #2825, to Synchronex for an amount not to exceed
$367,744.46, and award a purchase order to Peek Traffic/Signal Maintenance Inc. for
an amount not to exceed $73,000 for the installation of LED traffic signal modules.
Background
City traffic signals currently use 135-watt incandescent light bulbs in each signal
indication. Light emitting diode traffic signal indications have been developed to
retrofit/replace the standard incandescent signal indications. LED modules are
extremely energy efficient, consuming only about 10 to 14% of the energy of a standard
bulb, and they appear brighter than the current incandescent bulb. In addition, the
incandescent bulbs have a 12 to 18 month operating life, while the LED modules have a
five to eight year operating life. The City is currently budgeted to retrofit its red traffic
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signal indications with light emitting diode (LED) modules. The City anticipated
retrofit/replacement of approximately 1,800 red incandescent indications with LED
indications over the next two years.
In September 2000, the Southern California Edison Company (SCE) established a
$7,000,000 rebate program for customers that convert their incandescent lights to LED
modules. At current costs, the rebate program would recover close to the entire
purchase costs of LED modules. Staff has reserved approximately $400,000 of the
SCE rebate funds for its LED retrofit program. This rebate program provides an
incentive to expand and accelerate the retrofit program to include both red and green
indications and to complete the program by June 1, 2001, the SCE rebate deadline. At
this time, the SCE rebate is estimated to be in the range of $340,000.
Currently, the State of California (Caltrans) and the Institute of Transportation Engineers
(ITE) have developed use specifications for red and green signal indications. However,
neither agency has adopted specifications for the yellow indications, and therefore the
City should not modify the yellow indications at this time.
Discussion
Purchasing of LED Module
In response to published Notices Inviting Bids (published December 8 and December
10, 2000) in accordance with City specifications, bids were received and publicly
opened and read on December 20, 2000. Proposal forms were mailed to five vendors
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and notices were advertised in accordance with City Charter and Municipal Code
provisions. Four proposals were received as follows:
VENDOR AMOUNT
Synchronex $367,744.46
Lingo Industries $404,326.20
U.S. Traffic Corp. $480,464,92
JTB Supply Co. $514,485.19
It is recommended that the award of Bid #2825 be made to Synchronex, in the total
amount of $367,744.46, including applicable sales tax, as the lowest responsible bidder.
The LED modules to be supplied must meet all Caltrans and the Institute of
Transportation Engineers specifications, as well as Southern California Edison energy
consumption requirements. It is anticipated that the delivery of product, once a
purchase order is issued, will take about five to six weeks.
Installation of LED Modules
Requests for Proposals (RFP's) were requested from four traffic signal
construction/maintenance firms for the installation of the LED modules. Three
responses were received:
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FIRM AMOUNT
Peek Traffic/Signal Maintenance $17.50 per module
Computer Service Co. $19.50 per module
C.T. & F. $32.50 per module
It is recommended a purchase order be awarded to Peek Traffic/Signal Maintenance
Inc. of Anaheim, California, the lowest responsible bidder, at a cost of $17.50 per
module, or a total cost of $73,000 (including 15% contingency). Peek Traffic/Signal
Maintenance Inc. is a reputable firm that has contracts with many Southern California
agencies, including having performed work in Santa Monica. It is anticipated the
installation of the LED modules will take about eight to ten weeks.
Budget/Fiscal Impact
Funds to implement the LED retrofit program are currently budgeted at CIP account
number C01070201.589000 in the amount of $150,000. An additional $150,000 has
been tentatively approved in FY 2001/2002. To accelerate this project to be completed
within the next five months, $293,000 must be appropriated to account number
C01070201.589000 this fiscal year for a total amount of $443,000 ($370,000 including
tax for equipment and $73,000 for installation).
The complete implementation of the LED retrofit program will result in a SCE rebate
estimated to be $340,000. The rebate will be in the form of a one-time payment and
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should be received within three to four weeks of SCE certification of completion of the
project. The rebate should be budgeted as revenue at revenue account
#01416.407160. In addition, energy consumption should be reduced by approximately
1.2 million kilowatt-hours (KWH) and energy costs reduced by approximately $91,000
per year.
Recommendations
It is recommended the City Council:
1. Appropriate $293,000 from General Fund reserves to CIP account number
C01070201.589000.
2. Award a purchase order to Synchronex for an amount not to exceed
$367,744.46, including applicable sales tax, for the purchase of LED modules.
3. Award a purchase order to Peek Traffic/Signal Maintenance Inc. for an amount
not to exceed $73,000 (including 15% contingency) for the installation of LED
modules.
4. Establish budget of $340,000 at revenue account #01416.407160 (SCE LED
Rebate).
Prepared by: Suzanne Frick, Director of Planning and Community Development
Ron Fuchiwaki, Traffic Operations Manager
Diane Howell, Purchasing Agent
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