The URL can be used to link to this page

Home My WebLink About20A - AA - LIGHTING DT PARKING STRUCTURESREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: OCTOBER 6, 2015 TITLE: CONTRACT AWARD TO PACIFIC LIGHTING MGMT. INC. FOR DOWNTOWN PARKING STRUCTURES LED LIGHTING RETROFIT AND AGREEMENT WITH SOUTHERN CALIFORNIA EDISON USING ON -BILL FINANCING (SPEC. NO. 15 -092) {STRATEGIC PLAN NO. 3, 4B; 5, 2A and 6,1C, 2A} - CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: :••:* r ❑ As Recommended ❑ As Amended ❑ Ordinance on 18t Reading ❑ Ordinance on 2 I Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize a one -time purchase and payment of purchase order to Pacific Lighting Mgmt. Inc. for downtown parking structures LED lighting retrofit in an amount not to exceed $208,352, subject to non - substantive changes approved by the City Manager and City Attorney. 2. Execute an agreement with Southern California Edison to provide funding through On -Bill Financing up to $184,092 upon the installation and completion of project, subject to non - substantive changes approved by the City Manager and City Attorney. 3. Approve an appropriation adjustment recognizing up to $184,092 in funding from Southern California Edison into the Parking Fund Miscellaneous revenue account and appropriating the same amount to the Parking Facilities Contract Services- Professional expense account. DISCUSSION Since 2011, the City has had success with energy efficiency LED lighting projects throughout the City. Most recently, the light fixtures in the Santa Ana Regional Transportation Center parking structure were replaced with energy saving LED fixtures utilizing funding from Southern California Edison's (SCE) On -Bill Financing Program (OBF). Subsequently, City staff has identified the four Downtown parking structures as qualifying projects to replace the existing aging and inefficient light fixtures. This project is a key component of the Downtown Enhancements and Parking Modernization Plan that was adopted by the City Council on August 4, 2015, to modernize the parking structures, enhance public amenities and address deferred maintenance. The funding for the project will be a combination of City funds and the Southern California Edison (SCE) On -Bill Financing Program (OBF). This program provides zero percent interest financing for 20A -1 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 Contract Award for Downtown Parking Structures LED Retrofit October 6, 2015 Page 3 (complete the City's Climate Action Plan with measures to address water conservation, energy efficient buildings (City and community) and greenhouse gas emissions. Include as part of the plan an awareness outreach component), Goal #6 Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy C (invest resources and technology to extend the service life of existing infrastructure to protect the City's investment and support a high quality of life standard) and 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). ENVIRONMENTAL IMPACT The energy savings from the project will reduce the City's carbon footprint by 160 metric tons of CO2 annually, which is the equivalent of removing 34 passenger cars from the road. FISCAL IMPACT The Appropriation Adjustment will recognize up to $184,092 in funding from Southern California Edison into the Parking Fund Miscellaneous Income revenue account (no. 02710002 - 57990) and appropriate up to $184,092 in the Parking Facilities Contract Services- Professional expense account (no. 02710132 - 62300). Funds for the remaining balance of the project in the amount of $32,328 are budgeted and available in Parking Facilities Contract Services- Professional expense account (no. 02710132- 62300). APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance and Management Services Agencc AR /sp Exhibits: 1. Abstract of Bids 2. Cost /Funding Analysis 3. Savings and Details Breakdown 4. Sample On -Bill Financing Agreement with Southern California Edison 20A -3 20A -4 ABSTRACT OF BIDS RETROFIC PARKING STRUCTURE LIGHTING (15 -092) California Creative Professional Lighting & Bidder Aegis ITS, Inc. Baker Electric Engineering, Inc. Electric, Inc. J. Kim Electric, Rancho Location Anaheim Escondido La Puente Cucamonga Total $223,040.00 $211,675.00 $199,488.00 $228,379.52 Bidder Location Total Crown Electrical Corp. Baldwin Park $213,138 Eco Energy Solutions, Inc. Chatsworth $242,972.00 Eco Lighting Solutions, LLC Fisher, IN $177,014.00 Foddrill Consruciton Corp. Chino $272,168.26 J. Kim Electric, Regreen Retro -Tek Energy Bidder Inc. Corporation Services, Inc. TK Electric Location Fullerton El Segundo Vista Orange Total $204,468.00 $229,700 $176,680.00 $212,032.20 Pacific Lighting Bidder Mgmt.Inc. Location Santa Ana Bid Amount $ 174,117.08 $ 1,741.17 1 % SA vendor preference Total $ 172,375.91 Grand Total $ 188,046.45 Bid Amount (with tax) EXHIBIT 1 20A -5 20A -6 COST /FUNDING ANALYSIS PROJECT COSTS Pacific Lighting Management Inc. (tax included) $ 188,047 Contingency (10 %) 18,805 Inspection Costs 1,500 TOTAL ESTIMATED PROJECT COSTS $ 208,352 PROJECT FUNDING Southern California Edison OBF Financing $ 142,158 Incentives 33,866 Subtotal SCE Estimated Funding $ 176,024 City Funds Project Shortfall $ 12,023 (3rd & Broadway) Contingency (10 %) 18,805 Inspection Costs 1,500 Subtotal City Funds 32,328 TOTAL PROJECT FUNDING $ 208,352 *Final SCE Funding is based on actual energy savings measured after project is completed. Council Action provides for up to $184,092. EXHIBIT 2 20A -7 20A -8 SAVINGS & DETAILS PER FACILITY BREAKDOWN Total Number of Fixtures Total Estimated Annual Energy Savings (kWh) Total Estimated Annual Energy Costs Savings Total Project Cost Approved by SCE (tax included) Total Financing Approved by SCE (OBF and Incentives) Total Project Cost Shortfall (Amount Paid by City) 201 W. 3rd St. (3rd & Broadway) - - r- Number of Fixtures kWh Saved per year Monthly Savings (Monthly Loan Payment) Loan Terms /Payback Period (Years) Annual Savings Project Cost Approved by SCE Estimated SCE Incentive OBF Max. Amount Approved by SCE Total SCE Funding Shortfall (Amount Paid 300 W. 5th St. (5th & Spurgeori-� Number of Fixtures kWh Saved per year Monthly Savings (Monthly Loan Payment) Loan Terms /Payback Period (Years) Annual Savings Cost Approved by SCE !mated SCE Incentive F Max. Amount Approved by SCE al SCE Funding Shortfall (Amount Paid 84 34,915 $ 340 5.45 $ 4,086 $ 39,275 $ 4,987 $ 22,265 $ 27,252 12,023 142 68,836 $ 703 6.70 $ 8,430 $ 66,502 $ 10,021 $ 56,481 $ 66,502 420 N. Main St. (5th & Main) Number of Fixtures kWh Saved per year Monthly Savings (Monthly Loan Payment) Loan Terms /Payback Period (Years) Annual Savings Cost Approved by SCE imated SCE Incentive F Max. Amount Approved by SCE al SCE Funding 0 Shortfall (Amount Paid ber of Fixtures Saved per year .hly Savings (Monthly Loan Payment) Terms /Payback Period (Years) ial Savings Cost Approved by SCE Estimated SCE Incentive OBF Max. Amount Approved by SCE Total SCE Funding EXHIBIT 3 20A -9 Shortfall (Amount Paid 402 232,327 $ 29,074 $ 188,047 $ 176,024 $ 12,023 104 69,053 $ 774 4.11 $ 9,283 $ 10,217 $ 38,178 $ 48,396 72 59,523 $ 606 3.47 $ 7,275 $ 33,874 $ 8,640 $ 25,234 $ 33,874 20A -10 On -Bill Financing Agreement Local Government/institutional Customer Projects This On -Bill Financing Agreement ( "OBF Agreement ") is entered into on 20_ (the "Effective Date ") by and between the undersigned customer ( "Customer ") and Southern California Edison Company ( "SCE ") (each a "Party," collectively the "Parties "). Recitals 1. Customer and SCE entered into the Energy Management Solutions Incentives Application for Business Customers on or about _, 20 and if applicable, the Customized Solutions Agreement (individually or collectively referred to as "EMS Agreement"), which is /are attached hereto and incorporated herein by reference. 2. Customer owns, leases or rents the property listed in the EMS Agreement as the Site and maintains a service account(s) with SCE for electric service. Customer has completed installation of eligible energy efficient equipment ( "Equipment ") at the Site as set forth in the EMS Agreement and has accepted the equipment as being operational and in good working order. 3. In Decision 12 -11 -015, the California Public Utilities Commission authorized SCE to provide zero - percent interest financing for the installation of certain energy efficient equipment, which is to be repaid over a specified period through the Customer's electric utility bill(s) ( "On -Bill Financing "). 4. Customer desires to enter into this OBF Agreement in order to participate in SCE's On -Bill Financing program and Customer agrees to repay SCE the Amount Financed (as defined under "Loan Terms ", below) through the Customer's SCE utility bill(s) pursuant to the terms and conditions of this OBF Agreement. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the Parties agree as follows: Terms and Conditions Defined Terms: Except as the context otherwise requires, capitalized terms used in this OBF Agreement without definition shall have the same meanings as are set forth in the EMS Agreement, Amount Financed: Within thirty (30) days after the Effective Date, SCE will provide a payment for the Amount Financed to Customer or to a third -party payee designated by Customer under the Loan Terms, below. Customer's designation of a third -party payee may not be changed or revoked. Loan Terms: Amount Financed ( "Amount Financed "): Interest Rate: Fees: ---- - - - - -- — - - -- — ----------------- - - - - -- Months to Pay: First Month Payment _ Remaining Monthly Payments _ Service Account to be Billed': Designated Third -Party Payee (if any): Address of Designated Third Party Payee: If more than one Service Account will be billed, information regarding the Service Account number and monthly payment is included in Schedule A attached. Form 14 -914 EXHIBIT 4 1/2013 20A -11 Promise to Pay: Customer promises to pay SCE the Amount Financed in equal monthly installments as set forth in the section above and /or Schedule A (Customer's "Loan Obligation "). The first Monthly Payment of Customer's Loan Obligation will appear within sixty (60) days from the Effective Date on Customer's SCE utility bill(s) for the Service Account(s) listed above. The Parties expressly acknowledge and agree that funding for the OBF Loan Obligation repayment shall not be raised by the levy of additional taxes but shall instead be obtained by Customer's savings in energy costs paid for solely by the loan proceeds. The Parties further acknowledge and agree that energy savings from conservation measures are not susceptible to precise calculation and actual savings may vary according to weather and utility rates, among other things. Therefore Customer's energy savings have been determined at the outset of this Agreement and calculated by comparing estimates of energy usage for the facilities in question with and without the conservation measure, as set forth specifically in the EMS Agreement. Customer's actual future energy savings are not guaranteed and the OBF Loan Obligation must be repaid in full irrespective of actual future SCE utility bill(s) amounts. Manner of Payment: Customer's Monthly Payment amount will appear as a line item labeled "EE /OBF Installment Charge" on the monthly SCE utility bill(s) for Customer's Service Account(s). Customer may pay the Loan Obligation in the monthly installments or pre -pay the Loan Obligation in one lump sum without penalty, but pre - payments for less than the remaining balance will not be allowed. Customer's Loan Obligation will appear on Customer's monthly SCE utility bill(s) for the number of months set forth above, or until the Loan Obligation is paid in full by Customer, whichever occurs first. Customer shall make payments to SCE as directed in the SCE utility bill(s). Partial Payments: If Customer is unable to make a full payment of the Loan Obligation in any given month, payment arrangements may be made at SCE's sole discretion. Any partial payments will be applied in equal proportion to the energy charges and the Loan Obligation, and Customer will be considered to be delinquent and in default of both the energy bill and the Loan Obligation. Late Payments: No late payment charges or interest will be assessed for delinquent payments on the Loan Obligation. However, SCE may assess late payment charges for delinquent payments of energy charges pursuant to SCE's Rule 9 which is incorporated herein by reference. Returned Payments: SCE may require payment of a $8.00 Returned Check Charge for any check returned from Customer's financial institution unpaid. The Returned Check Charge will also apply to any forms of payment that are subsequently dishonored. Discontinuance of Service: Amounts due under this OBF Agreement will be amounts deemed due under each SCE utility bill to the Customer's Service Account(s), and a default under this OBF Agreement will be treated as a default under the Customer's Service Account(s). Customer's Loan Obligation is subject to the discontinuance provisions of SCE's Rule 11, Discontinuance and Restoration of Service, Section B, Nonpayment of Bills or Summary Bills which is incorporated herein by reference. Breach and Acceleration: Any breach by Customer under the EMS Agreement or this OBF Agreement shall constitute a breach under all of the above referenced agreements. For purposes herein, SCE may determine the OBF Agreement to be breached and Customer to be in default if Customer: (1) sells, assigns or otherwise transfers ownership, possession or title of the Site or the Equipment, (2) fails to pay the Monthly Payment amount when due, (3) closes, discontinues or otherwise causes the termination of the Service Account(s), or (4) otherwise breaches this OBF Agreement and /or the EMS Agreement, and the breach is not cured as specified therein. Notwithstanding anything to the contrary in the EMS Agreement, a breach and default as set forth in this section shall not be subject to any additional cure period. Following a breach as set forth in this section, SCE shall have the right to declare the entire unpaid balance of the Loan Obligation immediately due and payable. Form 14 -914 1/2013 20A -12 Purchase Money Security Interest: Customer hereby agrees that SCE may, but is not obligated to, file a UCC -1 ( "Financing Statement") against the Equipment to secure Customer's obligation to repay the Amount Financed. Customer agrees to execute any and all documents in connection with the Financing Statement in order for SCE to perfect its security interest in the Equipment. Customer agrees that SCE is not waiving any of its rights of recovery as against the Customer should SCE elect to file a Financing Statement. Confession of Judgment: Customer irrevocably authorizes and empowers SCE and SCE's attorneys, upon breach and default by Customer as described in the preceding section, to appear in any state or federal court in Los Angeles County, California, as Customer's attorney -in -fact and confess judgment against Customer by entry of a confession of judgment pursuant to Code of Civil Procedure § 1132 et. seq., or by any other appropriate means, for the full amount due plus all costs of collection, including without limitation court costs and reasonable attorneys' fees. No single exercise of the foregoing power to confess judgment will be deemed to exhaust the power, whether or not any such exercise shall be held by any court to be invalid, voidable, or void; but the power will continue undiminished and may be exercised from time to time as SCE may elect until all amounts owing under this OBF Agreement have been paid in full. Modification: Any change to this OBF Agreement must be in writing and signed by Customer and SCE; except that during any given month, if Customer is unable to make full payment on the Loan Obligation, payment arrangements may be made at SCE's sole discretion without modifying this OBF Agreement in writing. Any written modification or amendment will not be effective unless and until signed by SCE or such condition is waived by SCE in its sole and absolute discretion. Term and Termination: It is the Parties intent that the term of this OBF Agreement and the EMS Agreement run concurrently. Therefore, the OBF Agreement shall continue in effect until the Loan Obligation is paid in full. Assignment: Notwithstanding anything to the contrary in this OBF Agreement, Customer may not assign its rights or delegate its duties under the Agreement. Additional Representations: Each person signing this OBF Agreement represents and warrants that he or she is duly authorized and has the legal capacity to execute and deliver this OBF Agreement on behalf of Customer, and to perform their obligations under this OBF Agreement. Customer further represents and warrants that if it is a legal entity, it is in good standing in its state of formation. Miscellaneous: Except as otherwise specifically provided herein, all terms, provisions, covenants, representations, warranties, agreements and conditions of the EMS Agreement shall remain unchanged and in full force and effect. Should a conflict exist between this OBF Agreement, the EMS Agreement and the documents incorporated by reference, this OBF Agreement shall control. This OBF Agreement shall be construed and interpreted in accordance with, and shall be governed and enforced in all respects according to, the laws of the State of California. This OBF Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which shall constitute one and the same instrument. If any one or more of the provisions contained in this OBF Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, then this OBF Agreement shall be construed as if such invalid, illegal or unenforceable term or provision had never been contained herein and all other provisions of this OBF Agreement shall be construed to remain fully valid, enforceable and binding on the parties. The Recitals set forth above are hereby incorporated herein by reference. [Remainder of page intentionally left blank] Form 14 -914 1/2013 3 20A -13 WITNESS WHEREOF, the Parties have executed this OBF Agreement as of the Effective Date. Southern California Edison Company: Authorized Representative: Authorized Representative: Title: Title Signature: Signature: Date: Date: Business Address: Business Address: Telephone No. Telephone No. Fax No. Fax No. E'Mai|Addneoa: E-Mail Address: APPROVED AS TO FORM: (subject to r upon completion) JON M. FUNK 8wo1mtmot City Attorney Form 14-914 �� Um� rd SCHEDULE A Customer Name: OBF Loan Number: Site Service Account Number OBF Billing Repayment Service Account Number 16t Monthly OBF Loan Payment Remaining Monthly OBF Loan Payments X-X)(X-XXXX-XX x-xxx-xxxx-yx $XX,XX $XXXXX per month for X months Total Monthly Repayment $XXXX $XXXXX per month for X for X months Form 14-914 1/2013 20A -15 20A -16