Title
Energy Performance Contract for LED Street Lighting Upgrade - Contract Award ESCO Selection
History
As a part of the Village’s effort to become more energy efficient, the Board of Trustees approved the conversion of a portion of the Village’s remaining 2500 high pressure sodium street lights to more efficient LED street lights in the FY2018 Capital Budget. This project does not include street lighting along state and county roadways such as LaGrange Road, Harlem Avenue and 159th Street and also does not include decorative lighting such as in the Old Orland Historic District.
The Village advertised the Request for Proposals (RFP 18-023) for Energy Performance Contract LED Street Lighting Upgrades on BidNet Direct from April 16 through May 17, 2018. Five hundred and fifty seven (557) vendors were notified and thirty eight (38) downloaded the documents.
The RFP was opened on May 17, 2018. Four (4) submittals were received from Control Technology & Solutions, LLC (CTS Group) of St. Louis, Missouri; Leopardo Companies, Inc. of Hoffman Estates, Illinois; Siemens Industry, Inc. of Mount Prospect, Illinois; and TEN Connected Solutions (TEN) of Pittsburgh, Pennsylvania. Attached are the submittal tabulation summary and responsiveness check. Base submittal pricing and savings from three (3) of the submitters were based on standard GE equivalent wattages and one (1) submitter provided pricing on lower GE wattage fixtures. In order to have a quality comparison between submitters, staff requested the submitter to provide pricing, grants and savings based on the other wattages. A revised submittal comparison of the final two vendors is attached.
An evaluation team consisted of five staff members, Public Works (3), Development Services (1) and Finance Department (1) who participated in the review and interview process. Each team member ranked the individual submittals based on the following criteria:
1. Financial Approach - Net Economic Value to the Village. (30%)
2. Firm Qualifications & Project References. (25%)
- Meets minimum ESCO Qualified Provider Qualifications as required by the Village.
-Track record of the Provider for successfully implementing guaranteed savings projects with scopes of work similar to those being considered for this project.
- Experience of the people responsible for implementing the proposed project.
- References of the company and people responsible for implementing the project.
- Experience with securing grants through Illinois programs including the current ComEd Program.
- Experience with ComEd approval process for utility revisions associated with non-metered lighting.
3. Implementation Plan. (25%)
- Demonstrated ability to provide guaranteed energy savings projects with similar scope on schedule.
- Clear assignment of specific project tasks and specific individuals.
- Demonstrated ability of on-site project manager assigned to Orland Park with similar scope of work.
- Project Schedule and Implementation plan to meet Village objectives.
4. Technical Approach - Detailed and sound technical approach to meeting the Village objectives. (20%)
Interviews were scheduled with the two (2) highest ranked submittals (CTS Group and TEN). The interviews were conducted on July 2nd and July 3rd. Each vendor was interviewed by the same previously mentioned Village team, and ranked based on their presentation and answers to predetermined questions. Vendors were asked to clarify information relating to the LED fixture wattage as this significantly affects the cost of purchasing the fixtures, the value of the rebates and the cost of the overall project.
Collectively considering the submittal ranking, interview ranking and team discussion, CTS Group received the top recommendation based on the following strengths: net economic value to the Village, experience of the people responsible for implementing the proposed project, experience with securing grants through Illinois programs, experience with ComEd approval process for utility revisions associated with lighting, ability to provide guaranteed energy savings projects with similar scope on schedule, clear assignment of specific project tasks and specific individuals, experience of on-site project manager assigned to Orland Park with similar scope of work and a project schedule and implementation plan to meet Village objectives.
CTS Group has worked with the Village since approved by the Board in June, 2015 as the Village’s preferred Energy Services Company (ESCO) providing guaranteed energy savings. They initially performed an investment grade audit of Village facilities recommending many reduced energy consumption upgrades and conversions at the facilities. Through their findings, CTS Group assisted the Village in putting together a Phase I project for improvements which initially included some HVAC upgrades at the Sportsplex and Orland Park Health and Fitness Center and were completed in 2017.
Also last year, CTS Group expedited their work schedule on interior lighting in order to meet grant deadlines. CTS Group was extraordinary in managing the various moving pieces of the project. CTS Group also demonstrated their ability and willingness to respond to emails and phone calls rapidly. This customer service made for a smooth process.
The CTS Group has been stellar in their responsiveness and assistance with previous evaluations and recommendations for other projects including Orland Park Health & Fitness Club (OPHFC) dehumidification replacement, Sportsplex gymnastics boiler replacement, Police facility humidification boiler replacement, Recreation Administration heating boilers, and SportsPlex domestic hot water upgrades and shower renovation of which the CTS Group was exceptionally patient while guiding the Village through the aesthetic material selection process.
Staff anticipates that CTS Group will handle the full implementation of the LED street lighting upgrades. CTS Group will perform many aspects of this project including bidding, vetting vendors, engineering, and installation. The on-site project manager for the LED street lighting upgrades will be Adam DeVoss. Mr. DeVoss has been the on-site project manager for all of the CTS Group projects for the Village facilities and has worked very well coordinating with contractors, facility stakeholders and Public Works staff. Mr. DeVoss is currently coordinating the replacement of the pool duct, ceiling painting and replacement of the pool heaters at the OPHFC.
The estimated cost for completing the installation of new fixtures on this project is $1,022,524.00. Following completion, annual maintenance savings are estimated to be $75,511.00, and energy savings are guaranteed by CTS to be a minimum of $95,519.00 annually. Current rebates offered through Commonwealth Edison would provide an additional $204,085.00 payable to the Village once the lights are installed.
If selected, CTS intends to complete a detailed audit of all street lighting on this project to ensure the appropriate fixture is installed at each location. Both interviewed vendors suggested that a lower wattage fixture than the one used for estimating may be appropriate in some locations. If the lower wattage (more efficient) fixture is determined acceptable, the cost of the fixtures would be reduced, while the energy savings would be increased. The lower wattage fixture would also increase the Commonwealth Edison rebate amount.
The initial estimate for the LED street lighting upgrades was approximately $4,000,000 which was based on converting all lights within the Orland Park area including ComEd, private, State and County lights. The FY18 budget includes $500,000 funding in account 054-0000-471300.
In order to take advantage of current rebate incentives, material costs and labor rates, the Board may elect to complete this project during the current fiscal year. Additional funding for this option may be realized by deferring the Harlem Avenue Street Light Upgrade and Public Works Site Improvement and Master Plan until 2019. Replacement funding for these significant projects would be requested for FY19.
It is staffs’ recommendation to accept the proposal from CTS Group in consideration of maintenance and energy savings projected to be over $150,000 annually.
This agenda item is being considered by the Public Works Committee and the Village Board of Trustees on the same night.
I move to approve accepting the proposal for Energy Performance Contracting - LED Street Lighting Upgrade from CTS Group of Chicago, Illinois for a multi-year upgrade program for an amount not to exceed $500,000 in 2018 and the Board approved budget amount in 2019.
OR
Financial Impact
The FY18 budget includes $500,000 funding in account 054-0000-471300.
In order to take advantage of current rebate incentives, material costs and labor rates, the Board may elect to complete this project during the current fiscal year. Additional funding for this option may be realized by deferring the Harlem Avenue Street Light Upgrade and Public Works Site Improvement and Master Plan until 2019. Replacement funding for these significant projects would be requested for FY19.
Recommended Action/Motion
I move to approve accepting the proposal for Energy Performance Contracting - LED Street Lighting Upgrade from CTS Group of Chicago, Illinois for a single year upgrade program (with additional funding by deferring the Harlem Avenue Street Light Upgrade and Public Works Site Improvement and Master Plan until 2019) for an amount not to exceed $1,072,524 ($1,022,524 plus $50,000 contingency).