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Award an Agreement for the Lighting Retrofit Project at the Santa Ana Stadium and Agreement for On -Bill Financing and Appropriation Adjustment October 1, 2019 Page 3 Southern California Edison (SCE) On -Bill Financing Program PRCSA staff applied for and secured partial funding for the project from SCE through their on -bill financing program, which is a no -interest loan program paid back from savings in the utility cost over a period of years. For example, if the utility costs decrease by $100 per month, SCE will receive that amount until the loan payoff. The net result is no change in the utility bill until the loan payoff. Below is the estimated calculation of the amount SCE will finance. Estimated Annual Savings from Use of New Lights Loan Payback period Estimated Amount to be Financed $24,948.36Near 10 years $249,483.61 The City is requesting approval of a loan amount up to $249,483.61 plus $37,422.54, if needed. The calculation for the final financing amount is determined at the end of the project after SCE performs an audit of the actual number of lighting fixtures that are in place at project completion. Incentive Rebates Additionally, as part of the program the City anticipates receiving $19,925.87 in incentive rebates from SCE. SCE pays the contractor directly for the financed amount and incentive amount, thereby reducing the upfront out-of-pocket costs to the City. The Acquisition and Development District 2 fund will cover the balance of the cost. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #6 - Community Health, Livability, Engagement & Sustainability, Objective #2 (Address deferred maintenance on City buildings and equipment), Strategy A (Prepare a Deferred Maintenance Plan that assesses safety, adequacy, and liability implications, and estimates repair costs to be programmed in the responsible agency's future budget). FISCAL IMPACT Agreement with Electro Construction: SCE estimates to pay $269,409.48 ($249,483.61-loan, $19,925.87-rebate) of the total $501,167.70 agreement directly to the vendor. The balance of the agreement is $231,758.22. Of this amount, $168,758.22 is budgeted and available in the following account for the specified year: Fiscal Accounting Fund Accounting Unit, Account Amount Year Unit -Account # Description Description 31213260- Acquisition and Expenditure, Acquisition and FY 19-20 Development, Improvements $168,758.22 66220 Development Other Than Building r1-