Energy and maintenance cost savings will be the direct result of action taken at the New Rochelle City Council meeting Tuesday.
The council unanimously OKd the financing, purchasing and installation of LED lighting for the New Roc and Intermodal Transportation Center parking garages.
"My reading is that the loan debt service will be paid completely through the savings," said City Manager Charles Strome III.
He said the project was "rather significant" and would be a financial positive for the city.
Mayor Noam Bramson said the project was among the initiatives recommended in .
When the installation is complete, energy use will be cut from about 1.9 million kilowatt-hours to about 1.1 million kilowatt-hours—about a 42 percent reduction. Annual energy cost savings are projected to be $160,000, city officials said.
Bramson said because the project is funded by a loan from the New York Power Authority, the city can expect to save, during years one through seven, between $5,000 and $25,000, depending on the final interest rate.
For the remaining 20-year lifespan of the lights, the city will reap the full financial benefit of reduced energy use.
All told, Bramson said, the city could realize $2 million in savings.
"This is a win-win from an environmental and energy-savings standpoint," he said. "And at a time of fiscal challenge, it is especially important for us to pursue every opportunity for efficiency."
The city awarded Best LED Group of Hauppauge the contract to purchase the lights in the amount of $1,293,610. Best LED Group was the lower of two bids submitted.
There were four bids for installation of the lights, and the city chose Circle D Electric of Carlstadt, NJ, as the winning bid. Its bid—at $140,840—was 170 percent lower than the second-place bid. With contingency spending, the city has budgeted $155,000 for installation.
The loan agreement with the New York Power Authority calls for an amount not to exceed $1,578,987. The estimated interest rate is 4 percent for 10 years, though the rate is variable and is currently at 0.88 percent, according to Public Works Commissioner Alexander Tergis.