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While to date, there has not yet been a city that has completed this phase, the City of Santa Ana should be aware that this may be an added cost unforeseen in the scope, of work in Its RFP. It remains to be seen whether or not SCE will proceed with such a robust approach (as it might realize what a tremendous resource strain this approach will be for its staff). However, in the event that the City requires more robust support for this element, it will be an added cost of $72,350 that will be integrated into Phase 4 activities. It was not clear from the City's RFP what the purpose was of Phase 5, Task 7. Tanko Lighting included minimal hours to provide basic support but is uncertain whether this is necessary. Should further discussions with the City result in an understanding of this Task as more robust, Tanko Lighting will provide as an added cost. Indicative Pricing Please find Tanko Lighting's programmatic proposal with indicative pricing for just Phases 4 and 5 of the project (and for just the estimated 11,545 SCE -owned fixtures) in Appendix A. Please find the electronic Excel file of this data enclosed in the sealed envelope in which this Fee Proposal is contained (note that the Excel file is a proprietary template and is thus confidential and not intended for public record). Please note that the indicative pricing includes a specified first -year annual savings of $1,375,647, plus a one -time payment of approximately $716,559 in rebates in the first year. Assumptions /Rationale • Pricing for Phase 5 includes: • Leotek Green Cobra LED Fixture Series as part of the Phase 5 LED conversion process with a standard photocell (note that Tanko Lighting is product agnostic and merely included the Leotek brand for demonstration purposes only. Tanko Lighting will work with the City to determine the best product options to meet its needs during Phase 4 activities) • A control -ready seven -pin photocell receptacle on each LED fixture • Assumed 4,140 annual operating hours • Installation fees estimated at $65 per fixture • Sales tax (@ 8 percent) • An assumed acquisition price of $850 per pole location • A rebate amount of $0.14 per kWh saved • A 10 -year warranty on material • A 1 -year warranty on installation • HPS maintenance costs based on 17 percent annual turnover rate (@ $75 per fixture maintenance cost) • LED maintenance costs based on 2 percent annual turnover rate (@ $125 per fixture maintenance cost) • Financing costs are excluded Draft Letter of Intent Please find Tanko Lighting's draft Letter of Intent for Phases 1 — 3 in Appendix B. Financial Stability Tanko Lighting is a financially stable company that has successively operated profitably for more than a decade. As a privately -held company with just two shareholders, Tanko Lighting is tightly controlled, enabling sound financial and business decisions. Since 2010, the company has experienced rapid growth and expanded its core business model — all while maintaining zero long -term debt. With a clear understanding of its core competencies, significant knowledge of the municipal street lighting market, and sound leadership, Tanko Lighting continues to experience sustainable growth while reinforcing its triple bottom line values: People, Planet, and Profit. Please find Tanko Lighting's Financial Statements in Appendix C. Please note that all Included Financial Statements are confidential and not intended for public record. Appendices • Appendix A: Programmatic Proposal with Indicative Pricing (Excel Files are Proprietary & Confidential) • Appendix B: Draft Letter of Intent • Appendix C: Financial Statements (Confidential) Tanko Lighting Statement of Qualifications — City of Santa Ana — RFP #15 -053 Page 6 of 6 25N -28