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Agreements with Siemens Industry, Inc., and SCE to Provide Advanced <br />Energy- Efficient Technology in City Hall and the Ross Annex <br />May 20, 2014 <br />Page 2 <br />Recently, SCE performed a comprehensive audit of City Hall and Ross Annex energy systems — a <br />free service for Partnership cities. The audit analyzed the lighting systems and operating <br />schedule, and calculated the savings that could be achieved by upgrading these systems with <br />innovative technology. Partnership incentives of $69,759.10 will reduce the total project cost to an <br />amount not to exceed $620,000. SCE offers no- interest On -Bill Financing (OBF) to Partnership <br />cities for approved energy reduction projects. OBF funds are repaid using energy bill savings over <br />a specified payback period. SCE has reviewed the project and pre- approved financing with a <br />payback of 7 years. OBF financing has also been used by Public Works for LED streetlight <br />projects. <br />The recommended action will allow the City to contract with Siemens Industry, Inc. to implement an <br />Energy Management System (EMS), and install advanced energy- efficient lighting technology in <br />City Hall and the Ross Annex to maximize energy savings and reduce utility costs. The wireless <br />EMS control system will provide time -based scheduling of interior lighting along with infrared <br />occupancy sensor controls. Lighting upgrades will include replacement ballasts and supersaver T8 <br />fluorescent lamps. The project has been reviewed by Southern California Edison (SCE) and pre - <br />approved for zero - percent - interest financing through the On -Bill Financing (OBF) Program. <br />Implementation of the Energy Savings Lighting Control system will reduce the City's estimated <br />annual energy consumption by 452,565 kWh, and reduce the City's carbon footprint by <br />approximately 204.4 metric tons of CO2, which is the equivalent of removing 37.45 passenger <br />vehicles from the road. At the end of the OBF payback period, the project will also reduce <br />General Fund annual utility expenditures by approximately $58,833. <br />ENVIRONMENTAL IMPACT <br />In accordance with the California Environmental Quality Act, the recommended actions are <br />exempt from further review. A Notice of Exemption will be filed for this project. <br />FISCAL IMPACT <br />Loan Proceeds received through the SCE OBF Program will be deposited in the Energy <br />Conservation revenue account (No. 16210002 - 57384) and appropriated into the Energy <br />Conservation expenditure account (No. 16210630 - 62300). Loan repayments are available in <br />Account No. 07310100 - 62000. <br />Edwin "William" Galvez, P.E. <br />Interim Executive Director <br />Public Works Agency <br />APPROVED AS TO FUNDS AND ACCOUNTS: <br />Francisco Gutierrez <br />Executive Director <br />Finance and Management Services Agency <br />Exhibits: 1. Agreement with Siemens Industry, Inc. <br />2. Scope of Work <br />25E -2 <br />