25B - AGMT LIGHTING FIXTURES POLICE DEPT

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Award Contract to Install LED Lights and Controls PD Administration Building, On -Bill Financing September 4, 2018 Page 2 Based on the energy audit findings, Building Maintenance staff applied for and secured approved funding from Southern California Edison (SCE) to retrofit all facilities mentioned above. The retrofits to the Newhope and Main libraries, and the McFadden Learning Center were completed in 2017 and 2018. Retrofit funding applications for the Police Department Administration building, Corporate Yard facilities and Ross Annex parking garage have been reviewed and approved by SCE. City staff, with the assistance of The Energy Network, is proceeding with the selection of contractors to install the lighting and controls retrofits for these projects. At this time, staff is requesting Council approval to implement the Police Department Administration building retrofit project. The Scope of Work consists of new light fixtures (replace fluorescent units with energy-efficient light -emitting diode [LED] lights) and light controls (install occupancy sensors and connect to lighting and Building Management systems). Project benefits include improved illumination; an annual reduction of 494,175 kWh in electric usage; annual electric bill savings of $55,555, and annual greenhouse gas reductions equivalent to taking 78.8 cars off the road. A total project cost of $641,847 has been approved by SCE, and includes cash incentives of $115,348, and a zero interest On -Bill Financing (OBF) loan of $526,499, for a total of $641,847. An innovative feature of this SCE program is that the City will have no upfront costs. The awarded contractor will finance the cost of the project; and SCE will then pay the contractor directly with the cash incentives (which are grants and do not need to be repaid by the City) and the OBF loan proceeds that SCE has approved for the project. Any lighting upgrades not included in the project specifications but authorized by the City will be paid from contingency comprised of combined SCE and City funds. Once the retrofits are completed and validated, the Police Department will realize lower utility charges on their electricity bill. The bill will have a new, separate line item for the monthly OBF loan repayment. However, once the OBF loan is paid in full (9.5 years), SCE will discontinue the OBF loan repayment charges. Staff requests the City Council to approve the funding process for this project, and authorize the City Manager and Clerk of the Council to execute an OBF agreement with SCE. The SCE Notice of Approval for incentives and OBF loan amount (Exhibits 1 and 2) and an example loan agreement form (Exhibit 3) are attached. On July 26, 2018, staff posted the Request for Proposal (RFP) for the Police Department Energy Lighting Retrofit (Exhibit 4) on the City's website and online bid management and publication system. Three proposals were received and opened on August 15, 2018. The proposals were evaluated and ranked by a review committee comprised of staff from the Public Works Agency and Building Maintenance. The ranking criteria included the experience of the firm and team, relevant project experience, understanding of the scope of work, the work plan, references, schedule, and fee. The ranking of the three firms is as follows: 25B-2