Item 24 - Agreement with Procure America, Inc.

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Public Works Agency www.santa-ana.org/pw Item # 24 o`7, City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 3, 2022 TOPIC: Agreement with Procure America, Inc. AGENDA TITLE Approve an Agreement with Procure America, Inc. for Streetlight Utility Cost Savings Monitoring in an Amount not to Exceed $310,000 for up to a Five-year Term (Non -General Fund) RECOMMENDED ACTION Authorize the City Manager to execute an agreement with Procure America, Inc. for streetlight utility cost savings monitoring, for a five-year term beginning October 1, 2021 and expiring September 30, 2026, in an amount not to exceed $310,000, subject to non - substantive changes approved by the City Manager and City Attorney. DISCUSSION On July 29, 2021 the City entered into an agreement with Procure America, Inc. ("consultant") to evaluate the City's Southern California Edison ("SCE") streetlight rates. The evaluation consisted of reviewing the City's streetlight accounts for potential discounts through a program with SCE, which are based on the age of the equipment, usage profile, and specific tariff rate assignment on each streetlight. If, after the evaluation, cost saving rates changes were identified by the consultant, a follow up agreement between the consultant and the City would be required for the implementation of the SCE rate changes, cost savings, and compensation. Procure America, Inc. conducted a final review of the City of Santa Ana's SCE streetlight rates to determine whether there were any potential rate changes that could lead to cost savings. The consultant's review identified 3,502 streetlights that qualify for a discount and will save the City of Santa Ana approximately $187,000 per year. As a follow-up to the findings, the consultant coordinated with SCE to implement the cost saving changes on behalf of the City, which became effective October 1, 2021. As per the initial agreement, the City needs to enter into a subsequent agreement with Procure America for their compensation and continued monitoring of their findings.