22A - AWARD FODDRILL CONSTRUCTION

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Contract Award to Install LED Lighting Fixtures and Agreement for On -Bill Financing Loans August 1, 2017 Page 2 'Actual incentive payments will be made based on verified and actual savings amounts and On -Bill Financing will be based on review and approval of the City's Energy Efficiency Project Installation Report Total project cost is $105,234.96, which includes a 10% contingency. Payback period is estimated at 73 months for the Civic Center parking garage and 94 months for the Stadium. As tabulated above, the amount of incentives and maximum on -bill financing approved by SCE ($107,079.71) exceeds the amount needed to fully fund the two projects. An innovative feature of the recommended actions is the City will have no upfront costs as the awarded contractor will finance the cost of the project. SCE will then pay contractor directly with the cash incentives and OBF loan proceeds that SCE has approved for the project. As a result of the OBF loan, the Civic Center's and Stadium's new electricity bill a lower amount based on the energy reduction from the project, a new separate line -item will show the OBF loan repayment amount. This amount will reflect kWh saved from the project multiplied by the relevant billing rate. Once the OBF loan is paid in full, SCE will discontinue the OBF loan repayment line -item, and the reduced energy usage due to the project should result in smaller bills. (SCE cash incentives are grants and not repaid) Staff requests the City Council approve the foregoing project and funding process. SCE Notices of Approval for incentives totaling $15,001.88 and a maximum total OBF loan amount of $92,077.83 and the loan agreement form are attached. Final actual loan amount will be determined at project completion. The Notice soliciting bids was advertised on March 31, 2017 on the City's online bid management and publication system. A summary of the bids received is as follows: Bids were received on received from Foddrill requirements. 25 Vendors were notified 3 Santa Ana vendor notified 28 Vendors downloaded the solicitation 5 Bids received May 2, 2017 and were opened and evaluated (Exhibit 1). The bid Construction is responsive to the specifications and meets the City's 22A-2 MI Civic Center ParkingGarage 38,452.20 38,452.20 $7,458.96 $8,792.23 $45,319.07 73 Months 353-16-0500868635 Stadium 353-16-0500868641 27,710.00 $6,002.04 $6,209.65 $46,758.76 94 Months 'Actual incentive payments will be made based on verified and actual savings amounts and On -Bill Financing will be based on review and approval of the City's Energy Efficiency Project Installation Report Total project cost is $105,234.96, which includes a 10% contingency. Payback period is estimated at 73 months for the Civic Center parking garage and 94 months for the Stadium. As tabulated above, the amount of incentives and maximum on -bill financing approved by SCE ($107,079.71) exceeds the amount needed to fully fund the two projects. An innovative feature of the recommended actions is the City will have no upfront costs as the awarded contractor will finance the cost of the project. SCE will then pay contractor directly with the cash incentives and OBF loan proceeds that SCE has approved for the project. As a result of the OBF loan, the Civic Center's and Stadium's new electricity bill a lower amount based on the energy reduction from the project, a new separate line -item will show the OBF loan repayment amount. This amount will reflect kWh saved from the project multiplied by the relevant billing rate. Once the OBF loan is paid in full, SCE will discontinue the OBF loan repayment line -item, and the reduced energy usage due to the project should result in smaller bills. (SCE cash incentives are grants and not repaid) Staff requests the City Council approve the foregoing project and funding process. SCE Notices of Approval for incentives totaling $15,001.88 and a maximum total OBF loan amount of $92,077.83 and the loan agreement form are attached. Final actual loan amount will be determined at project completion. The Notice soliciting bids was advertised on March 31, 2017 on the City's online bid management and publication system. A summary of the bids received is as follows: Bids were received on received from Foddrill requirements. 25 Vendors were notified 3 Santa Ana vendor notified 28 Vendors downloaded the solicitation 5 Bids received May 2, 2017 and were opened and evaluated (Exhibit 1). The bid Construction is responsive to the specifications and meets the City's 22A-2