Title
Request to Amend and Extend Contract for LED Street Light Services (Ordinance S-46127)
Description
Request to authorize the City Manager, or his designee, to amend Contract 144691 with Ameresco to extend services through the end of the 10-year warranty term for the energy efficient Light Emitting Diode (LED) street lights under the City's Energy Saving Street Light Project for the Street Transportation Department. The warranty was a fundamental requirement of the procurement and original contract, and this Amendment aligns the contract term with the full warranty period. Further request authorization for the City Controller to disburse funds related to this item.
Report
Summary
On Nov. 30, 2016, the City Council approved a $30 million contract to convert the City's high pressure sodium (HPS) street lights to energy efficient LED street lights under the City's Energy Saving Street Light Project. Financing for this project was provided through issuance of an excise tax bond, and annual energy and maintenance savings resulting from the installation of the more efficient LED lighting more than covers the financing costs. A requirement of the excise tax bond was a 10-year extended warranty to maintain the approximately 95,000 newly installed LED street lights. The term of the LED conversion portion of the project was not to exceed 36 months for all phases of the project, which will be completed as expected and on time.
The 10-year extended warranty included in the contract begins at substantial completion of the LED conversion. The original authorization (S-43048) included the 36-month LED conversion in the contract term, but did not include the term of the 10-year extended warranty since the exact project term date was unknown. The Street Transportation Department is requesting to extend the term of the contract to cover the 10-year warranty period, including authorization for any payments that may be made to Ameresco during the warranty period - within the original amount authorized for the project. No additional funds are being requested in this Amendment.
Procurement Information
In accordance with Administrative Regulation 3.10, a formal procurement was conducted in 2016 through a Request for Proposals.
Contract Term
This Amendment will extend the payment authorization and contract period through March 31, 2029 to cover the warranty period.
Financial Impact
There is no financial impact to the City of Phoenix.
Concurrence/Previous Council Action
The original contract (S-43048) was approved by City Council on Nov. 30, 2016.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Street Transportation Department.