TOA LED Street Lights
Acquisition & LED Project Financing
Below represents the simple breakout of the 3 primary bonds that the Town of Amherst issued and now owes back, totaling $33.4 million in principal (20 years at 5% interest). Interest is not included in the numbers below but if assumed at 5%, 20 years, straight-line amort. this would result in $51 million total cash paid out for the project.
The “purchase of lighting assets” line represents the acquisition of 9,666 street lights from National Grid & New York State Electric and Gas
The “construction” line represents material costs from the town purchase of LED lights and related materials ($3.6mm), contractor costs for equipment and labor to Capco and O’Connell ($6.9mm), allowances (expected unknown costs $2.9mm), and $1mm of other.
The “project management” line includes Customer Project Commitment and Construction Mgmt. ($1.4mm), NYPA Project Mgmt. & Administrative ($1.3mm), and $100k of other.
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It appears the town chose the long term financing object (not the “simple payback” section. This resulted in the town being able to still take the $100k NYS grant, but waived the $512k of other incentives/rebates.
Number of years should be 20 years and the “net project cost” does not include the $15.1 million for acquiring the streetlights as this is likely labeled as acquisition not project/construction financing.
Notes:
1. ICPC & Construction Mgt is 9.5% of the Construction Cost Subtotal and is applied to contingency to provide budget estimates. Final costs will exclude unused contingency and will be calculated at end of the project.
2. NYPA Project Mgt. & Administrative cost is 8.0% of all project costs except Utility Asset Purchase, Utility Device Disconnect Deposit Bond, and STF.
3. Short-Term Financing (STF) is estimated based on 4.00% interest rate.
4. NYPA Annual O&M Program Program cost is estimated to be $20.00 per fixture per year. (see below for more information)
Continued: Below is from the NYS website and is tied to the $193,320 figure in the above table. (Unsure of exactly how this works and NYS has yet to release details on their webpage beyond the below)
NYPA’s Smart Street Lighting NY O&M service offering will provide municipalities:
A complete turn-key solution for the conversion and maintenance of their street light system
Essential maintenance to keep the street light system in proper working order for safety and public benefits; addressing aging infrastructure, weather events, traffic accidents, and defects
This program offers complete end-to-end coverage of the street light system for each municipality
Updates will be posted on the NYS webpage as these new services roll-out.
5. Indicative long-term financing interest rate is shown as 5.00% for project financing cost estimates. Long term financing and rates are subject to negotiation of a separate and distinct agreement for long-term financing.
6. Contingency was not included in the Original Executed CPC and was added to the Current ICPC Amended Budget.
7. Utility Asset Subtotal Costs shown for simple payback calculation only. Customer will not utilize NYPA financing for the Utility Asset Purchases.
Contract Bids
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