HomeMy WebLinkAbout25S - AGMT ON-BILL FINANCING LOANREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
18, 2018
TITLE:
AMEND AGREEMENT WITH MARKETING
POWER INC. DBA ENERGY RETROFIT CO.
FOR THE INSTALLATION OF ENERGY
EFFICIENT LIGHTING FIXTURES AND
CONTROLS IN THE POLICE
ADMINISTRATION BUILDING AND AMEND
AGREEMENT FOR THE ON -BILL
FINANCING LOAN (RFP NO. 18-069)
(STRATEGIC PLAN NO. 4,3D; 6,2A)
y �
L
CITY ANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
As Recommended
❑ As Amended
❑ Ordinance on 1� Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Authorize the City Manager and Clerk of the Council to amend the agreement with Marketing
Power Inc., dba Energy Retrofit Co. for the installation of lighting retrofits and controls in the
Police Department Administration Building, for a period through January 31, 2019, in an amount
not to exceed $702,382 .
2. Authorize the City Manager and Clerk of the Council, upon approval of request, to amend the
On -Bill Financing agreement with Southern California Edison to fund the Police Department
Administration Building Lighting Retrofit project, in an amount not to exceed $587,034.
DISCUSSION
As part of the City's ongoing efforts to identify potential cost-saving energy projects across City
facilities, the Building Maintenance Division commissioned energy audits for the Police Department
Administration building, Corporate Yard facilities (administration and maintenance buildings), Ross
Annex parking garage, and the City's libraries (Main Library, Newhope Library, and McFadden
Learning Center). The energy audits were completed at no cost to the City by The Energy Network,
a nonprofit program funded by California utility ratepayers through the California Public Utilities
Commission.
Based on the energy audit findings, Building Maintenance staff applied for and secured approved
funding from Southern California Edison (SCE) to retrofit all facilities mentioned above. The retrofits
to the libraries were completed in 2017, and early 2018. Both the Police Department Administration
building, and the Corporate Yard facilities lighting projects are on schedule to be
25S-1
Contract Award to Install LED Lights and Controls
PD Administration Building, On -Bill Financing
December 18, 2018
Page 2
completed this December. The contract agreement for the Ross Annex Parking Garage lighting
retrofit is currently being executed, and the project will commence in early 2019.
City Council gave authorization to proceed with the Police Administration building lighting retrofit
project on September 4, 2018. An agreement for a not -to -exceed amount of $656,847 was
executed with Marketing Power Inc. dba Energy Retrofit Co. However, as staff, the energy
consultants, and the contractor reviewed locations and the proposed replacement fixtures, it was
agreed that different lighting fixtures would look cleaner and improve illumination. Additionally, after
installation of the new fixtures had begun, there were adjacent areas in the building that required
additional lighting upgrades to provide both a consistent appearance and improved lighting. These
authorized changes by City staff have amended the total project cost to $702,382. Staff
recommends approval of the increased amount, as the additional fixtures will enhance overall
energy savings and illumination of the facility.
On September 4, 2018, City Council also authorized execution of a funding agreement with SCE
for On -Bill Financing (OBF). The SCE OBF program provides interest-free funding for qualified
energy efficiency projects and includes convenient repayment through the monthly SCE utility bill.
The City has no upfront costs. SCE pays the contractor (Energy Retrofit Co.) directly from the OBF
funding and with cash incentives, which are grants that do not require repayment. Once the total
OBF amount is paid in full (maximum 10 years), SCE will discontinue the OBF charges on the utility
bill. The SCE funding agreement for the Police Department Administration Building Lighting Retrofit
project approved $526,499 in OBF funding and $115,348 in incentives, for a total of $641,847.
Once the retrofits are completed, the Police Department will realize energy savings through lower
monthly charges on their electricity bill. This energy savings will be utilized to pay the OBF and will
be reflected as a separate line item on their utility bill. Once the total OBF amount is paid in full
(maximum 10 years), SCE will discontinue the OBF charges.
Upon project completion by Energy Retrofit Co., SCE will conduct an installation inspection report,
including recalculations of overall energy savings from the enhanced project scope. It is expected
that the revised energy savings will benefit the City by increasing SCE's incentives and/or
increasing the approved OBF funding for the project. However, should SCE determine that the
incentives remain unchanged, the OBF amount would increase to $587,034. Staff requests the City
Council to approve the increase in OBF funding with SCE in an amount not to exceed $587,034, at
which time the agreement will be provided by SCE.
STRATEGIC PLAN ALIGNMENT
Approval of this item supports City efforts to meet Strategic Plan Goal #4 — City Financial Stability,
Objective 3 (achieve a structurally balanced budget) Strategy D (explore innovative revenue and
cost recovery strategies) and Goal #6 — Community Facilities & Infrastructure, Objective 2 (address
deferred maintenance on City buildings and equipment) Strategy A (prepare a Deferred
Maintenance Plan that assesses safety, adequacy, and liability implications, and estimates repair
costs to be programmed in the responsible agency's future budget).
25S-2
Contract Award to Install LED Lights and Controls
PD Administration Building, On -Bill Financing
December 18, 2018
Page 3
ENVIRONMENTAL IMPACT
In accordance with the California Environmental Quality Act, the recommended actions are exempt
from further review. A Notice of Exemption will be filed for this project.
FISCAL IMPACT
The following is the spending plan for the Police Department Administration Building Lighting and
Controls Retrofit project:
Payment from SCE to Contractor, Energy Retrofit Co.:
Description Fiscal Year Amount
Cash Incentives 2018-2019(January) $115,348
OBF Proceeds 2018-2019(January) $587,034
Total $702,382
Loan Repayment to SCE (if total loan amount is utilized):
Description
Fiscal Year
Amount
Account
First Payment of $3,355
2018-19 Jan. or Feb
$3,355
01114403-67003
PD Building & Facility,
OBF Payment
Remaining 113 Monthly
Payments of $5,165.30
2018-19 through 2028-29
$583,679
Total
$587,034
A contingency of $15,000 was approved by City Council at the September 4, 2018, Council
Meeting. This amount covers any additional costs authorized by the City for lighting improvements,
not qualified by SCE. The contingency is budgeted and available for expenditure in FY 2018-19 in
the Police Department Building and Facility account for contract services (Account No. 01114403-
62300)._
e2 APPROVED AS TO FUNDS AND ACCOUNTS:
�� @0VM3
Fuad S. Sweiss, PE, PLS Kathryn Downs, CPA � � .,y 241,5
Exegutl Director Executive Director
Public irks Finance and Management Services Agency
FS:JA:CK:SS
Exhibit: 1. Contract Amendment
25S-3
25S-4
EXHIBIT 1
FIRST AMENDMENT TO AGREEMENT FOR ENERGY LIGHTING
RETROFIT OF THE CITY OF SANTA ANA POLICE DEPARTMENT
THIS FIRST AMENDMENT to the above -referenced agreement is entered into on December 18,
2018, by and between MarketingPower, Inc. dba Energy Retrofit Co. ("Contractor"), and the City
of Santa Ana, a charter city and municipal corporation organized and existing under the
Constitution and laws of the State of California ("City").
RECITALS
A. The parties entered into Agreement No. A-2018-206, dated September 4, 2018, by which
Contractor agreed to provide and install advanced energy-efficient lighting fixtures and
controls at the City of Santa Ana Police Department Administration Building
("Agreement").
B. The Agreement remains in effect through December 28, 2018, and the parties now wish to
amend the Agreement to extend the term of the Agreement and increase the maximum
expenditure under the Agreement due to a change in the selection of fixtures, as described on
Exhibit A.
The Parties therefore agree:
1. Section 2.a., Compensation, is amended to increase the total sum to be expended under the
Agreement from $656,847 to $702,382.
2. Section 3, Term, is amended to extend the term of the Agreement through January 31, 2019.
3. Except as modified by this First Amendment, all terms and conditions of the Agreement shall
remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the
Agreement on the date and year first written above.
MARIA D. HUIZAR
Clerk of the Council
APPROVED AS TO FORM
SONIA R. CARVALHO
City Attorney
By:
-F44'V-A-
JCVN M. FUNK
Assistant City Attorney
RAUL GODINEZ II
City Manager
CONTRACTOR
Name:
Title:
- signatures continue on next page -
Page 1 of 2
25S-5
RECOMMENDED FOR APPROVAL RECOMMENDED FOR APPROVAL
FUAD S. SWEISS, PE, PLS
Executive Director
Public Works Agency
DAVID VALENTIN
Chief of Police
Santa Ana Police Department
Page 2 of 2
25S-6
EXHIBIT A
ENERGY RETROFIT CO.
ENERGY RETROFIT C❑.
SavifV Emig Savlry Money
Change:Order}Requ'esti
Ijb
Santa Ana Police Department - Admin Building
Energy Retrofit Co.
60 Civic Center Drive
27363 Via Industria
Santa Ana, CA 92701
Temecula, CA 92590
John Aguilar
Date: 12/10/2018
Contract Date: 9/13/2018
Change Order Request H: 1
Job Code: ECCI10014
Item # Quantity Description
Unit Price Amount
Additional lighting fixtures due to the changes in lighting fixture (pendant to 2x2
1 inset)
$84,378,00
2 Additional areas as directed by Paul Bui
$8,355.85
Shipping / Lift Charges / Disposal Included
Total Change Order Value $92,733.85
Final Contract Cost with Change Order
(to be submitted to SCE OBF) $702,381.85
OWNER or OWNER REPRESENTATIVE
CONTRACTOR:
Santa Ana Police Dep/artment - Admin Building
Energy Retrofit Co.
By: Vdl7r9 /i t"' tv
By: Erica lnderwick
/
Signature:
Signature:
Date: /> jD la QJ
Date:
25S-7
25S-8
V
10
N
W
fD
w
N
fD
W
.1Y
iMNWNpD
a�li�i
-0py1
.
VTTW1
N.Wn-1
��
:W•4NRlf1
iff
,
NQOI
NhNN
NhNti
N0VNti01
Nn�
NnNr1
NmMnr-1
NN'nI
NNNNN
NNNNYf
NNNNN
NNNNN
NNNNul
h
UI �
r
F}
rru
pnb�,
b
n
1O
n
w
n
W
W
W
n
1D
n
W
n
N
W
p�
O
W
4D
n
W
W
rD
n
w
C?
1p
p�
N
N
N
N
N
Yf
N
N
N
N
'hi
NI1d
Iri
•'I
MrriaM
r"i
r'1
rl
M
N
rl
ci
N
rl
ninoninniN
N
rl
MY
N
N
N
M„
n
Necm
M1
ry
N
W
ry
ec
N
ro
Nt
��piN
f. U.agc
NNNNNNN
N
N
NNNN
Ni}
Be
!
EIV
Y
VI
4�
F
b
Jt1
IL:
WE
Q
r-1
N
e1
N
ei
N
e1
t0
W
ei
'1
nl
Q
s;
IY.
LQ
Q
v
4
Y
Y
Y
Y
Y
Y
Y
Y
p
w
Y
p
Y
N
.N1
3
3
3
3
3
3
3
3
9
3
3
0
0
0
`0
0
Syr
�Y,ii
�¢4
N
N
N
N
N
N
N
N
lJ
Yf
Vr
VI
[O
f0
t2
C
�,ry
V.
Ql
J
J
fl0
Q
O
O
JCS
-'
[O
Da
N
N
N
N
yC
VI
V,
¢
vl
Y
N
VI
III
q
N
W
r!r
4
y
Iyy/�1
p
W
W
N
W
a%¢J
J
J
(xa
la
"N•
yea+
x�
Q
Q
xN
Q
a
XN
�
>
>
>
>
IEpWZ
Q
W
W
W>IEp
W
W
W
J
Iy�
Z
Q
Z
`o
`0
`
Y
ft ads,
t•
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
o
O
o
0
r;33333333333333333333
O
O
O
O
O
O
O
O
O
O
p
o
O
o
o
0
o
o
0
pro,
F!
N
N
0
N
0
VI
0 0
N
0
N
0
N
0
N
0
V
N
0
V�
W
y
xy
«
«
«
«
«
«
«
«
«
«
«
«
«
«
i
«
o
.,}
aaaaaaaaaaaaaaaaaaaa"''
u
0a
iia
°�n�an�4-
0
0
0
0aa�
0
0
0
N.
a
N
N
N
N
N
N
N
N
N
N
M
d
H
p
O
o
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
55�" �.,
L
u
i �
L
rLi
L
�
u
L
A
L
L
�
L
L
Ltltl
L
L
�,
'-
0yJp-
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
E
E
E
E
E
E
E
E
E
E
E
E
E
E
E
E
E
°oo°°°°
o
o
o
o
o
°00
o
gE
gE
0
00
0,
s
o
¢
z
¢
¢
rc
2
a
¢a
a
¢rc
0
¢
0
w
0o
c
E
E
00c
E
C
V
0
•�
N
N
IQ/1
N
.N -I
eQi
.Q -I
M
Q
N
ry m
N
C
N�
Y
N�
N
N
N
N
.-I
N
'1
N
N
N
N
N
N
N
.-I
'1
rl
e4
e1
e1
r-1
rl
ei
M
.-I
M
M
N
W
N
N
N
N
ry
1�
1
p
p
p
p
O
p
O
p
O
p
p
p
p
p
O
O
p
O
p
0
jw'
¢(a
UI
a¢a
N
QaQ
QnQ
n
N
Q¢Q
N
aad
pa,
¢
�
Qn
a¢
Qa
Qa
¢Q
as
Qa
pQ,
Q¢
a¢
oQ.
W
. d'
N
N 111
Vf
N
Q
N
I/f
b
n
N
W
P
VI
H
of foVyf
N
teN11
M IY
Vf
M
vi
M
Yf
H
Vf
H
N
H
N
N
vl
N 10
PF.
N
25S-8