Apparently it's going to cost a lot more than expected to replace Guelph's existing streetlights with new LED ones.
The city previously budgeted $8 million for the project, but a staff report going to council's committee of the whole on Jan. 13 says it will cost an extra $1 million to switch the 12,892 streetlights.
Staff is asking council authorize the increase to address the "funding gap" and take the money out of the city's Wastewater Capital Reserve Fund, which is where the original $8 million came from.
The plan is to have the funds taken from the reserve fund be repaid through cost savings the LED lights will result in.
The report says the money is needed "to ensure adequate contingency is available to address the observed high rate of existing inadequate electrical infrastructure to be rectified."
The program will see the city convert all its current non-decorative high pressure sodium (HPS) streetlights to energy efficient LED streetlights.
According to the report, the switch will result in annual energy cost savings of $946,036 and anticipated maintenance cost savings of $287,391 a year.
The payback will now take eight years instead of six, according to the report.
"The project results in significant energy savings and greenhouse gas emissions reduction and supports the corporate 100 per cent Renewable Energy Target (100RE) and the Community Net Zero Carbon goal," the report says.
The initial stages of the retrofit have gathered data that indicates the project is going to cost more.
"Monitoring indicates that nearly all of the existing electrical wiring for the 'top-hat' style streetlights will require replacement. Consequently, the existing project budget contingencies may be exceeded.
"Additional budget is required to ensure adequate contingency is available to address the observed high rate of existing inadequate electrical infrastructure to be rectified."
Non-financial co-benefits outlined in the report include improved light quality for roadway safety, extended streetlight fixture life, electrical infrastructure upgrades and enhanced streetlight control and network communication.
