Report to: General Committee Report Date: March 3, 2009

SUBJECT: Contract Extension for Streetlighting Maintenance, Repair and Relamping Program

PREPARED BY: Alan Laver ext. 3400

Alex Moore ext. 4711

RECOMMENDATION:

1) THAT the report entitled “Contract Extension for Streetlighting Maintenance , Repair and Relamping Program” be received;

2) AND THAT the Contract Extension for 2009 Streetlight Maintenance and Repair be awarded to PowerStream in the estimated amount of $726,218 exclusive of GST;

3) AND THAT the 2009 Streetlight Relamping Program contract be awarded to PowerStream in the estimated amount of $145,000 exclusive of GST;

4) AND THAT the tender process be waived in accordance with Purchasing By-Law 2004-341 Part II, Section 7(1) C which states” when the extension of an existing contract would prove more cost effective or beneficial”;

5) AND THAT funds be provided from account #720 720 5497 Streetlighting Maintenance and Repair in the total amount of $871,218 of the Town’s 2009 Operating Budget;

6) AND THAT the Town and PowerStream continue to work together on an ongoing basis to review options to enhance service delivery and cost efficiencies, share information and exchange data to control the 2009 expenditures;

AND THAT staff be authorized and directed to do all things necessary to give effect to this resolution.

1. Purpose 2. Background 3. Discussion 4. Financial

5. Others (HR, Strategic, Affected Units) 6. Attachment(s)

PURPOSE:

The purpose of the report is to seek authorization for PowerStream to continue to provide service to the Town for streetlight repairs and relamping of existing fixtures in 2009.

BACKGROUND:

The Town’s streetlighting network (approximately 22,000 lights) has been owned and operated by the Town since it was transferred from Ontario Hydro in 1987.

The Town has historically engaged Markham Hydro then PowerStream to provide streetlight related maintenance services due to their expertise and background with the electrical systems. Prior to 2000 the streetlighting electrical system was designed as an integral part the PowerStream electrical system. Electrical Safety Association (ESA) legislative changes now require new subdivision streetlight installations to be separated from the PowerStream system with disconnect boxes for each streetlight circuit.

The services provided by PowerStream include repairs to damaged poles and fixtures, replacement of burned out bulbs, ballasts, light sensors (based on residents’ complaints to the Town’s Contact Centre and outages reported by the Town’s Operation Department’s twice yearly night patrol), underground and overhead supply line repairs (burn outs/faults) and locating services for underground streetlight infrastructure. The service also includes a yearly relamping and fixture cleaning program where all lamps are replaced on a 5 year rotation for preventive maintenance (Approximately 4000 units are scheduled for each year.)

Other streetlighting services previously provided by PowerStream to the Town under our Capital Programs have been reduced over the past few years in response to PowerStream’s request to no longer be involved with any design or administration of infill lighting requests and our pole replacement program. Asset Management is now looking after and coordinating streetlighting infill requests from the public and the Pole Replacement Program as part of our Capital Budget. The Town has also upgraded the internal inventory of streetlight infrastructure and condition to allow a better understanding of Life Cycle and Maintenance trends for the streetlight system. The Town has created a GIS Mapping Layer for streetlighting and has populated a Hansen database for all new and existing streetlights. A field information and condition analysis was completed under a 2008 capital project. The new mapping and database information is being used for the Town’s PSAB requirements, energy and maintenance cost recoveries from developers, and for Life Cycle evaluations.

Funding for Streetlighting Maintenance/Relamping is contained in the 2009 Asset Management’s Operating Budget ($871,218). This estimate was based on the 2008 budget plus an allowance for additional lighting added during 2008 and an inflationary rate adjustment.

In late 2008, staff became aware that the actual cost of streetlight maintenance was going to exceed the 2008 budget. Staff reviewed the actual cost with PowerStream to determine the reasons for the over expenditure. Powerstream advised that they had experienced a significant increased in bulb failures and buried streetlight power cable faults. Powerstream correspondingly also experienced an increase amount of repair work on their underground infrastructure over previous years. They suspect that the increase is attributed to the excessive amount of rainfall experienced in 2008 however this has not been confirmed. A summary of the faults experienced from year to years is outlined on Attachment ‘A’.

Staff set up a new night patrol system with PowerStream’s subcontractor in early 2008. The purpose of this system was to have the contractor patrol the streets at night to proactively find and repair light outages. Previously, outages were found by the Town’s bi- annual patrol or by residents calling in. This was thought to be a good preventive maintenance practice as the contractor was operating night crews as part of their service. In order to control the cost overrun, staff directed the contractor to terminate the night patrol service as of September 2008.

Through discussions with PowerStream and the Town’s Finance and Asset Management Departments regarding 2008 budget cost overruns, the Town also agreed not to proceed with the 2008 relamping program. The total cost for the 2008 Streetlight Maintenance Program is $1,114,600 which is $302,394 over the $812,218 budget.

After review of the 2008 actual numbers, PowerStream provided the Town with their projected costs for 2009. Their estimate is contained in a letter from Powerstream dated January 5, 2009 (Attachment’C’). The projection is summarized as follows:

General Repairs- $400,000

Streetlight Faults $490,000

Relamping - $145,000

Total- $ 1,035,000 (Not Including Hit and Run*)

* PowerStream also estimated $95,000 for Hit and Run Accident repairs. This item is covered separately in the Clerk’s Department’s Budget.

This represents a projected budget shortfall of $163,782 in 2009.

This estimate is based on PowerStream’s projection that 2008 quantity increases may continue into 2009. PowerStream invoices their costs monthly based on actual time and materials used for the required work.

OPTIONS/ DISCUSSION:

In 2007 the Town reviewed the extension of services using PowerStream for Streetlight Maintenance and it was determined that the Town would continue to use PowerStream services on an ongoing basis.

Due to the over expenditure in 2008 the Town’s Asset Management and Finance Departments’ have had ongoing discussions with PowerStream to better understand and if possible reduce maintenance costs in 2009.

Complaint calls since the fall of 2007 have been directed through the Town’s Contact Centre. In 2008 the Town received 2047 calls for action for streetlighting. These requests are forwarded directly to PowerStream’s contractor on a daily basis. In 2007 the Contact Centre received and redirected 1166 calls to PowerStream. Prior to the fall of 2007 all calls were redirected to a PowerStream contact number. Reporting through the Contact Centre allows the Town to compare monthly and yearly requests. The new system also ensures follow-up with residents on the anticipated repair timing. Second calls on the same project have an escalation arrangement in place to ensure action.

PowerStream has also been asked to direct all pole replacements requests, other than accidents, to the Town for review and evaluation prior to any replacement being undertaken. The Town will proceed with this type of work through Powerstream or may undertake the repair through the new Capital Pole Replacement Program established in the 2009 Capital Budget. This budget of $205,000 was established to begin a comprehensive program of replacing the ageing streetlight poles in the Town. Based on condition assessments undertaken last year, staff will prioritize which poles should be replaced first and proceed with a tender to do the work.

To better understand the extent of work and costs involved, the Town has asked to review any major underground Faults or Burnouts before any repairs are undertaken. This would include any underground cable replacements. This will also provide the Town with information for input and review of future Life Cycle replacement programs that may be required for underground cables.

In addition PowerStream has been asked to provide their contractor’s monthly work summaries on a monthly basis so the Town can better anticipate the expenditures on this account.

The 2009 budget amount for streetlight maintenance is $163,782 under the estimate provided by PowerStream. Town staff will monitor the progress of this contract in relation to the 2009 budget to ensure budgetary goals are met and if necessary, deal with any additional amounts through the Town’s expenditure control policy.

In Summary:

To address the budget pressures for 2009 the Town has asked PowerStream to;

a) Provide monthly statements of preliminary maintenance works to the Town by the 15 day of the following month. This allows more timely review of quantities of works completed and budgeting.

b) Address only night patrol items generated from the Town’s twice yearly patrols and general repair requests initiated from the Town’s Contact Centre.

c) Not replace deteriorating poles under the maintenance program. Requests will be forwarded to the Town and will be addressed through the Town’s Life Cycle Capital Program.

d) Contact the Town to review options prior to any major underground repairs taking place as part of the Maintenance Program.

In early 2009, the Asset Management Department was also asked to do a preliminary review of costs should the Town assume contract administration and locating services for street lighting which are now provided by PowerStream. A preliminary estimate to take over these services would include $150,000 per year for additional staffing expenses and $350,000 per year for streetlight locating services. Physical locates in the field are required prior to any excavation to ensure safety and prevent damage. PowerStream now charges the Town a 20% administration markup on contracted services to cover their expenses, which amount to approximately $200,000 per year. There would be estimated increase of $300,000 to the Town to take over these services.

FINANCIAL CONSIDERATIONS AND TEMPLATE: (external link)

Attachment ‘B’

HUMAN RESOURCES CONSIDERATIONS

Not Applicable

ALIGNMENT WITH STRATEGIC PRIORITIES:

Not Applicable

BUSINESS UNITS CONSULTED AND AFFECTED:

The Finance Department has reviewed the funding and budget requirements.

RECOMMENDED

BY: ________________________ ________________________

Steve Andrews P.Eng. Brenda Librecz

Director, Asset Management Commisioner, Community and Fire Services

ATTACHMENTS:

Attachment ‘A’- Comparison Chart

Attachment’ B’- Financial Summary

Attachment ‘C’- PowerStream 2009 Estimate

O:\Commission Share\Operations and Asset Management\Reports\2009\Asset Management\2009 Award Streetlight Maintenance.doc