LED Street Light Project (2014 LGAA)

City of Yonkers (Winner)
County: Westchester County
Population: 50,000 +
Type: City
City Hall: (914) 377-6045

The City of Yonkers is replacing all 12,000 of its street lights with new, energy-efficient LED technology. The project will not only save a remarkable $1.834 million in energy costs annually, it is expected to cut the carbon footprint of city government operations by 3,400 tons, or nearly 10%. The amount of energy being saved is equivalent to 5,600 households cutting their electricity bills by 20%. The project is nearly complete with over three-quarters of the city's street lights already converted.

In response to significant increases in street light expenses, the City issued a Request for Proposals (RFP) for an energy performance contract to replace all of the City's street lights with energy efficient technology where project costs are fully offset by energy cost savings. The project was awarded to a local firm called Lumen Light Solutions. In addition to saving taxpayer dollars and improving the environment, the Lumen proposal would employ Local 3, IBEW union labor creating dozens of good jobs right in Yonkers.

The most direct benefits to residents relate to safety and security. First, the project has allowed for a complete inventory and repair of over 1,000 "out" street lights which had created a hazard for pedestrians and motorists. It will eliminate the possibility of a similar backlog accumulating in future years. Second, the orange glow of the City's old sodium vapor street lights tend to distort the eye's ability to distinguish color. The neutral white light of the new LEDs is a dramatic improvement in terms of visibility and security. Because of this project, a police officer is better able to identify the color of a fleeing vehicle or a suspect's clothing on a dark night thus increasing safety and security in Yonkers.

The Yonkers LED Street Light Project would not have been possible without innovations in the areas of both technology and finance. Only a few years ago, LED technology was too expensive to justify this type of large scale replacement project. As LED prices came down and energy prices increased, the City of Yonkers recognized and acted upon a unique emerging opportunity to upgrade its aging infrastructure in a way that would save the City millions of dollars. The City used the energy performance contract model, a powerful tool available to municipalities for upgrading energy-inefficient facilities and equipment without large up-front capital outlays. In fact, this project may be the first instance where an energy performance contract was used for a city-wide street light replacement project. The result is that the City makes no payment to the contractor until after all the city's street lights have been replaced and after energy cost savings begin to accrue.

Another innovation involves the use of a smart phone-based mapping application that allows for real-time reporting of field conditions and project progress. All 12,000 street lights are identified on a searchable map, each with a coded icon. Throughout the project, every action taken is documented in the field in real time and the icons change depending on conversion status or issue type. If a constituent calls with a street light issue, information about that specific street light can be accessed immediately.

The project is expected to generate nearly $10 million in net financial benefits over 10 years. The contractor will be paid in 10 annual payments of $870,000. The contractor has guaranteed $1.834 million in annual energy cost savings. Therefore, the net benefit to city taxpayers is $964,000 annually. As the price of electricity increases, the savings will also increase. If there is a shortfall in the amount of energy savings realized by the City, the contract provides for the right of offset, meaning an amount equal to the shortfall will be deducted from the City's payment to the contractor. The contractor is also required to provide replacement street lights throughout the 10-year lease period to address any lamps that may fail. In addition, a 12-year manufacturer's warranty for both the street light and the photocell controller nearly eliminates any risk associated with the project. The City expects to save approximately $40,000 annually on replacement street lights and parts. While City staff will continue to maintain the street light system, the reduction in the need for maintenance will allow this staff to be reassigned to other tasks.

The Yonkers LED Street Light Project has placed Yonkers on the forefront of urban sustainability in New York State and nationally. The project is one component of a larger Energy Action Plan that is showing remarkable results by cutting the City's carbon footprint, improving air quality, and saving taxpayer dollars. It is helping to promote Yonkers as a healthy, vibrant and attractive city where people want to live, visit and locate their businesses, which helps drive economic development. The Yonkers LED Street Light Project was also selected as an anchor project under the New York State Climate Smart Communities program.