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Agreement with Procure America, Inc. <br />May 3, 2022 <br />Page 2 <br />Staff recommends approving the agreement (Exhibit 1) with Procure America, Inc. for <br />compensation and monitoring of the SCE streetlight rate changes and cost savings. <br />ENVIRONMENTAL IMPACT <br />There is no environmental impact associated with the action. <br />FISCAL IMPACT <br />As stated above, Procure America, Inc. identified 3,502 streetlights that qualify for a <br />discount through a program with SCE based on the age of the equipment, usage profile <br />and specific tariff rate assignment on each streetlight that will save the City of Santa Ana <br />approximately $187,000 per year. As part of the agreement, the consultant shall monitor <br />and report the actual realized cost reductions achieved on behalf of the City. Procure <br />America, Inc.'s compensation for their services related to the utility tariff rate optimization <br />study, program implementation, monitoring and financing reporting is 30% of the actual <br />realized savings achieved. Their compensation will be valid for a period of 60 continuous <br />months (five years). Once the initial five year period has lapsed, the City will have no <br />further obligation to the consultant and will then benefit from the full discount savings <br />moving forward. <br />Even with the addition of the compensation for Procure America, Inc.'s services, the <br />reduced utility costs will provide the City savings on a monthly basis. Based on the current <br />rates, the consultant projects SCE charges will be reduced by $15,618.92 per month. <br />When factoring in the addition of the Procure America, Inc. compensation, the City could <br />expect to realize $10,933.24 in monthly cost savings as shown below: <br />Estimated Monthly Energy Cost Savings <br />$15,618.92 <br />Estimated Compensation <br />$4,685.68 <br />Net Monthly Savings initial 5 ears) <br />$10,933.24 <br />At the conclusion of the compensation period (5 years), it is estimated that the annual <br />cost savings will increase to $15,618.92 per month, assuming tariff rate increases are <br />consistent with historic averages. <br />Cost savings will be credited to Public Works Street Light Maintenance Account No. <br />01117630-62000. <br />Funds are available for expenditure in Fiscal Year 2021-22 and will be budgeted in <br />subsequent fiscal years as shown below in the estimated spending plan: <br />