25D - AGMT - LIGHTING ROSS ANNEX PARKING

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Approve Agreement to Install LED Lights and Controls Ross Annex Parking Garage, On -Bill Financing November 20, 2018 Page 2 SCE. City staff, with the assistance of The Energy Network, has selected a contractor for both the Police Department Administration Building and Corporate Yard Facilities lighting projects; and installation of improvements are well underway, with a scheduled completion date at the end of November 2018. At this time, staff is requesting Council approval to implement the Ross Annex Parking Garage lighting 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 similar to the adjacent Civic Center Parking Garage; an annual reduction of 10,546 kWh in electric usage; annual electric bill savings of $1,354, and annual greenhouse gas reductions equivalent to eliminating almost 2 vehicles from driving a combined 19,237 miles (EPA Greenhouse Gas Equivalencies Calculator). Project funding of $15,515 has been approved by SCE, and includes cash incentives of $1,979, and zero interest On -Bill Financing (OBF) of up to $13,536. An innovative feature of this SCE program is that the City will have no upfront costs and will incur no new debt. All payments are made from the savings realized on the utility bill. Any lighting upgrades not included in the project specifications but authorized by the City will be paid separately by the City. Through the OBF program, the awarded contractor finances the cost of the project. SCE pays the contractor directly with the cash incentives (which are grants and do not need to be repaid by the City) and the OBF proceeds that SCE has approved for the project. Once the retrofits are completed and inspected, the Ross Annex Parking Garage will realize lower utility charges on their electric bill. However, the bill will have a new, separate line delineating the monthly OBF payment. Once the OBF payments are made in full (10 years), SCE will discontinue the OBF repayment charge. Staff requests the City Council 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 proceeds (Exhibits 1 and 2) and an example OBF agreement form (Exhibit 3) are attached. On August 6, 2018, staff posted the Request for Proposal (RFP) for the Ross Annex Parking Garage Energy Lighting Retrofit (Exhibit 4) on the City's website and online bid management and publication system. Three proposals were received and opened on September 20, 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: 25D-2