20A - AA - LIGHTING DT PARKING STRUCTURES

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Contract Award for Downtown Parking Structures LED Retrofit October 6, 2015 Page 2 approved energy reduction projects and arranges for repayment using the monthly energy utility bill savings. The payback period for each of the parking structures will range from three to seven years. This financing mechanism has been used successfully on many of the previous LED lighting projects the City has performed. The proposed LED fixtures have an average energy savings of 66 % compared to the existing fixtures. At the end of the OBF payback period, this project is estimated to reduce energy costs by approximately $30,000 annually. In addition, LED lighting provides more illumination and visible light than conventional lighting and has an expected useful life cycle of over 15 years according to average industry standards. The notice inviting bids was advertised on August 25, 2015, on the City's online bid management and publication system. A summary of the bid invitations and bids received is as follows: 92 Vendors were notified 4 Santa Ana Vendors were notified 21 Vendors downloaded the bid packet 13 Bids received 1 Bid received from a Santa Ana vendor Bids were opened on September 10, 2015, and evaluated. The bid received from Pacific Lighting Mgmt. Inc., a Santa Ana vendor, in the amount of $188,047 (Exhibit 1) is responsive to the specifications and meets the City's requirements. An additional $1,500 for the inspection costs and a ten percent contingency for any unforeseen expenses have been included for a total estimated project cost of $208,352 (Exhibit 2). Based on the applications submitted to SCE for the four parking structures, the City is eligible and has received preliminary SCE approval for funding totaling $176,024 [$142,158 in OBF financing and $33,866 in energy efficiency cash incentives (Exhibit 2)]. The estimated project cost for three of the four parking structures will be covered using SCE funding; however, the SCE funding amount assigned to the parking structure located at 201 W. 3rd St. does not cover the estimated project cost, resulting in the City covering the shortfall in the estimated total amount of $12,023 (Exhibit 2). All SCE funding amounts are preliminary estimates and final funding will be based on actual energy savings measured after the project is completed. Therefore, staff is recommending recognizing up to $184,092 in SCE funding. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #3 Economic Development, Objective #4 (continue to pursue objectives that shape downtown Santa Ana into a thriving, culturally diverse, shopping, dining, and entertainment destination) Strategy B (create comprehensive program to manage parking that includes innovative strategies to provide parking, create revenue and enhance accessibility in the downtown), Goal #5 Community Health, Livability, Engagement & Sustainability, Objective #2 (expand opportunities for conservation and environmental sustainability) Strategy A 20A -2