Springfield City Council — February 13, 2023

0:03 progress we're going to call the Springfield City Council work section to order with roll call Mayor Van Gordon your Chief counselors Weber here Mo here Bradley here Doyle here missionary yes all right looks like we have one item would be this evening Street lighting energy saving performance contract update that's a mouthful Brian it's gone thank you mayor Van Gordon good evening counselors in there we are going to give you an overview of where we're at with this particular project and first I'd like to start by introducing the other participants here and also either our project lead is Scott Miller he's been our project manager and he's a technical expert for the project and Neil

0:49 o'bringer from the finance department has been our financial analyst in key to making this project work and then also I'd like to introduce Andrew Williamson from industry um he is our consultant and also and when I say consultant we need to clarify that it's not our traditional we have a Consultants deal we'll design and we hire a contractor to do the implementation it's a one one company package so they will do everything with subconsultants or subcontractors and so the reason I bring that up is that it's a different Contracting model than we're accustomed to and uh mckinstry was also selected by

1:34 us when we did the Main Street and South Bay Street lighting project that came about because of the ODOT emergency pedestrian project and other conflicts Beyond lighting but because ODOT couldn't deliver that on their own they asked us to do it and so we're doing the industry and made an excellent job they're a very tight time frames and I think so I thank you for your time tonight and uh we're going to refresh a little bit of what occurred in our most recent June meeting that talked about this project um that embarked phase one we have completed phase one and we're ready to begin on to phase two and uh in a couple of Council meetings from now you might

2:20 actually see a contract for final approval and so I'm going to ask Scott to uh go through the slides and we only have I think five or six so we're not going to elaborate but we'll give you plenty of time for questions we prefer them at the end but if you'd like to ask them as we go along that's just fine as well so Scott I'm trying to go forward turn it on the left side it's on then I will help you okay okay uh good evening Mary counselors I just wanted to do a quick recap um I know that most of you are familiar with this project already so I don't

3:06 want to belabor the old details uh there's some numbers in front of you as far as that current cost of our program and uh kind of where things stand as a status quo we have already talked about the Energy savings and maintenance benefits associated with this program so I'm happy to answer any questions at the end but um it's clearly a a needed product for us to put in in Springfield so last June we presented and got approval to proceed with this project we went forth and did a competitive bid to get to get um uh Esco and Esco on board we had two

3:54 bidders at that time and mckinstry was selected based on their more competitive bid package so we executed a contract with mckinstry last summer to essentially deliver the whole project but the first portion being the audit and the project development plan sort of determines the entire scope of the project they went ahead and audited every street light in the city and basically came up with a final here's exactly what we're going to do here's exactly what it's going to cost at a maximum cost and here's a minimum of what you're going to save from an energy standpoint um can you go to the next one please so now that we have gone through that

4:39 audit process I'll show you a slide that mchenistry gave us but the result of that is uh the total project cost is going to be a maximum of 3.2 million dollars um that is a guaranteed maximum price and uh mckinstry will work hard to uh basically execute that or or beat it and essentially any money that is unspent as a result of that will go back into our budget and it's not you know profit for them they will essentially work to deliver that money any extra money back to us and that's part of their legal um uh the contract structure

5:26 um foreign revealed basically we have about 5 000 street lights throughout the city um there's a map there on the left and that shows all the street lights throughout the City of Springfield boundary we have a mixture of LED and Legacy fixtures and we know that we knew that we had all these things but we didn't know necessarily the exact numbers um so now we have the exact numbers and we know exactly which lights need additional repairs like damage or tree trimming that's maybe blocking the light things of that nature so that audit that

6:12 we did over the last few months essentially gave us this full project scope that we can work forward on next slide please so right now this is the schedule for the project we are currently in the contract approval process the top row there um we as Brian mentioned We'll be asking for uh contract approval for the full maximum contract amount shortly and then we'll roll straight into engineering and construction and um we should be able to get this project done before the end of the calendar year and then the following year will be our essentially seeing those savings start to accumulate and we can measure that and verify it

7:03 um so I know there's a lot more that I didn't say and you guys know a lot already so um I don't think we have anything else specifically yeah baby Brian does yeah I do I just um Scott mentioned that um the funding would roll back into the project if there isn't a full expenditure the 3.2 million dollars um our funding source is the arpa program and so it's an excellent source for us in that advice down the uh the return on our investment to a much higher rate I I.E immediate um and so we don't have to put bone uh borrow money or make use of funds that are internal to the city the grant funds are a great source so what

7:49 other whatever funds we don't expand of course we'll roll back and be able to do this on other oriented projects great Joe so first of all Ferraro you don't hear me say that very often did Bravo this is an amazing project I am so flipping happy that we finally got this tell you again in 2004 it was one of my two reasons why I became a counselor literally so it's it's 18 years of me waiting and I'm really happy I waited to see it if you guys are super awesome um I think I've heard so much positive feedback from people I am so excited to see I'm a firm believer since 18 years

8:35 ago that our Main Street safety a lot of that hinges upon the lighting at night and many people have died because of poor lighting right for decision making but still poor lighting I think is very directly responsible for those folks not seen very well at night I think those that family of four will run 54th could very well have survived that day that night had been seen easier that being said I'm happy I'm looking forward to seeing if that is actually true in the future we'll see that how that that you know holds out but I think it's going to be very helpful um that also uh now when when it was presented and it can be memory here

9:22 could be skewed when it was first presented was it like 2.2 million or did this is it is a 3.1 the same figure we got earlier on last year Scott you want to take that one sure um so last year we uh presented a number that was 2.75 million and uh essentially the audit is what gave us the um the accuracy to determine what the final cost was going to be an additional five million or half million so then the project the time for it to play out completion time are we going to be running into because people seem to think they could just bump prices up randomly now and blame whatever

10:08 probably less less profits unless they bump it up and get more profits and no one seems to be winning on that battle but are they going to be in a position they're locked in right they're not going to be able to no one's going to be able to say oh gosh she's cost overruns blah blah so that's an absolutely better than some of those numbers everyone that's correct the as part of developing this proposal that mckinstry provided they obtained quotes from vendors and contractors and they have essentially if I understand correctly basically guarantees that or they're delivering this project to us for that cost um and so they're if there was a cost overrun it would not be seen by us they had to eat it so but is there any incentives to reduce the

10:55 cost well there's yes there is the incentive and they have the guaranteed maximum but they still have the different pricing elements that come up to that guaranteed maximum and it is not in their interest to try and run it up to the end but I'd have to ask Andrew to explain the specific details of that if you want that yeah I'm just wondering I'm just already incentivized yeah yeah the short answer is yes um the the reason behind that is we have a construction budget a construction budget is set as a guarantee um and our fee is tied to that construction budget but if we execute more efficiently our fee does not go down so our fee is fixed and so that and

11:40 the reason it's fixed is because if it if it was tied directly to that construction value you'd bet that we'd spend every every penny so uh that puts us on the same team as you to try to drive the costs as efficiently as possible um and and we want a good reputation in the industry and want to make sure that we get a good reference from the rest of you so we can do more of this kind of work with other entities so I'm super happy about it and that was demonstrate it in the ODOT project they guarantee a price and that's delivered I like it in Victoria agree with Council Mary that it's a great project but one thing I want to ask about which I saw happen in Eugene when they did this similar project is people are used to that darker light and

12:25 now all of a sudden they have light shining into their bedrooms right and so the question for me is do you have some sort of a contingency for being able to put up those blocks towards the homes that helps keep that light from shining into people and if so um are we gonna put that burden on our public works department and our you know our traffic folks to do that or how is that going to work because it's going to happen people are going to as much as this is an awesome thing people are going to complain about too much light into their house counselor Doyle thank you for the question uh absolutely we will address that um and there's a number of different ways that we can do that so uh actually

13:12 at this point about 50 of our city has already been converted over to LED uh so we've already got experience with those kinds of complaints and issues coming in um I would say that so one is yes we will have the ability to install Shields where they are needed um we also will have the ability to dim lights if that presents an opportunity to provide um a more balanced approach in certain situations and I think the last thing that we are proactively doing is there's certain locations where the lights were originally installed with a like a different distribution a different lighting distribution that goes out in a different way and

13:59 um so as a part of the audit we identified locations where the Mast of the light is like oriented in a less than optimal Direction and part of this project is going to fix that and rotate them so that so that almost all the light will be spread down the street instead of sideways into people's houses particularly the corner Lots that's fantastic excellent and again I'm I'm super happy about this project too I think when we shine light on the dark it can help prevent so many things that go on and and so yeah I'm I'm stoked thanks Steve hopefully this light makes it crawlers go away but not all of them uh you said giving possibility each life

14:45 has Intelligence in it correct yes uh this system will include a dimming and functionality that we can control remotely and we'll be able to um do a number of things and dim and you know maintenance activities that we cannot do currently um because we'll be able to see each light and program them and do all sorts of things remarkable technology has achieved great anybody else this is a great project I mean everybody's excited about it and I think it says something about how we as a city are spending our Harpy dollars to understand that like there's a clear investment in the community a clear return and a clear benefit so I'm I'm really excited for the community to see

15:30 this with that I think we are done so I'm going to adjourn us for the evening um everybody enjoy your evening