Title
Consider/Discuss/Act on a Resolution of the City Council of the City of McKinney Authorizing the City Manager to Execute an Annual Fixed-Price Contract for Twelve Months with a Twenty-Four Month Option (up to $100,000 per Year) with Hadco/Philips of Littlestown, Pennsylvania, to Provide Street Light Luminaries with L.E.D. Lighting.
Summary
MEETING DATE: January 18, 2011
DEPARTMENT: Public Works
Office of Environmental Stewardship
CONTACT: Paul Sparkman, Street Superintendent
Julie Smith, Environmental Stewardship Manager
RECOMMENDED CITY COUNCIL ACTION: Approve Resolution awarding contract as specified in Bid Proposal 11-01FP.
ITEM SUMMARY:
• This agenda item considers award of an Annual Fixed-Price Contract for twelve months with a two-year option for the purchase of LED street light luminaries up to $100,000 per year.
• Invitation to Bid 11-01FP was advertised on September 19 and September 26, 2010 in the McKinney Courier Gazette.
• Bids were opened on October 7, 2010.
• A total of 9 bids were received.
• After careful evaluation of the submitted material, Hadco/Philips is recommended as the best bid for LED street light luminaries.
BACKGROUND INFORMATION:
• As part of the Department of Energy’s (DOE) Energy Efficiency and Conservation Block Grant (Grant), City Council approved accepting the Grant and, among other Grant activities, designating $90,000 to purchase LED luminaries for 97 City-owned street lights.
• The luminaries range from $654.91 to $901.76 each, depending on voltage and wattage.
• Over the lifetime (16.03 years) of the first 96 LED fixtures scheduled for replacement, a total of $58,800 savings will be realized for parts and labor. At ten cents a kilowatt hour, annual electric savings will be $8,176.90. Finally, use of these LED fixtures will reduce carbon dioxide production (and thus the City’s carbon footprint) by 1,114.08 tons.
• The Contract provides an additional 24-month option at the fixed price.
• Any future purchases beyond the $90,000 will be funded through the street lighting maintenance budget.
FINANCIAL SUMMARY:
• The first year’s purchase of $90,000 will be funded by the DOE Grant. Should the City opt to purchase additional fixtures in the subsequent years, such purchases will be made through the street lighting maintenance budget.
BOARD OR COMMISSION RECOMMENDATION:
• N/A