SR-05-28-2013-3B - 510-001-02FrR
City Council Report
City of
Santa Monica
City Council Meeting: May 28, 2013
Agenda Item: 313
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Award Construction Contract for Main Library Parking Garage LED
Lighting Upgrade Project
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute a contract with Yesco LLC,
a Utah -based company, in an amount not to exceed $177,808 (includes a 10%
contingency) for the Main Library Parking Garage LED Lighting Upgrade Project.
2. Authorize the Director of Public Works to issue any necessary change orders to
complete additional work within budget authority.
3. Authorize the City Manager to enter into a loan agreement for On -Bill Financing
with Southern California Edison Company, a California -based company, in the
amount of $149,256 and accept a one -time incentive of $28,552, for a total
amount not to exceed $177,808, for a term of approximately 6.5 years for the
Main Library Parking Garage LED Lighting Upgrade Project.
4. Appropriate the budget increases as outlined in the Financial Impacts and
Budget Actions section of this report.
Executive Summary
The Main Library Parking Garage was identified as a prime opportunity for energy and
maintenance cost savings. This project would replace the existing lighting with LED
Fixtures with Bi -Level Motion Sensor Control in order to minimize energy use while
providing adequate lighting for safety and egress. A Notice Inviting Bids for construction
services was issued on February 21, 2013. After evaluating bids received on March 25,
2013, staff recommends Yesco LLC for the lighting upgrade of the Main Library Parking
Garage, with a total project cost not to exceed $177,808. The project would be funded
by On -Bill Financing, a Southern California Edison Company at no cost with a 0%
interest loan program for energy efficiency projects. The monthly loan payment amount
of $1,909 equals the monthly savings on the Southern California Edison portion of the
electric bill. With energy savings generated from the project, the City would recover the
cost for the lighting retrofit within 4 years.
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Discussion
Consistent with the Climate Action Plan, the City has researched and developed a
preliminary concept to improve lighting systems and conserve energy. An energy audit
provided by the Community Energy Partnership identified an energy efficiency
opportunity to upgrade the existing lighting fixtures in the Main Library Parking Garage
to highly efficient LED lighting. The existing lighting design primarily uses metal halide
fixtures that use approximately 515,000 Kwh of electricity each year. This project would
replace the existing lighting with LED Fixtures with Bi -Level Motion Sensor Control in
order to minimize energy use while providing adequate lighting for safety and egress.
Monthly electric bills for the Main Library Parking Garage have averaged $6,050 over
fiscal year 2012 -13. The replacement light fixture would require 146,000 Kwh of
electricity each year resulting in a potential annual savings of up to $39,075 in electricity
costs. This is a conservative savings estimate that assumes that electricity charges
remain constant. The savings would be realized in the Main Library Parking Garage
utility bills, currently paid for by the General Fund in the Parking division.
Southern California Edison's On Bill Financing program provides 0% interest, no cost
loans for energy efficiency projects. This program represents an opportunity for the City
to upgrade to energy efficient solutions with a short term investment. Staff recommends
entering into a loan agreement with Southern California Edison in the amount of
$149,256 and accepting a one -time incentive of $28,552 for a total of $177,808 to fund
the Main Library Parking Garage LED Lighting Upgrade Project. The loan amount and
the one -time incentive would be received after completion of the project. The loan
would be for a term of approximately 6.5 years (about 78.2 months), and monthly loan
payments of $1,909 would be made on the electric bill of the facility receiving the
efficiency upgrade.
The monthly loan payment amount of $1,909 equals the monthly savings on the SCE
portion of the electric bill. Because the City purchases electric transmission from SCE
and electric generation from Commerce Energy, actual monthly electric bill savings will
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be larger than savings from the SCE bill. Actual monthly savings in both transmission
and generation charges would be $3,256, yielding a shorter payback period of
approximately 4 years for the project than the term of the SCE loan.
Contractor Selection:
A Notice Inviting Bids was issued on February 21, 2013, published in the Santa Monica
Daily Press and posted on the City's online bidding website in accordance with the City
Charter and Municipal Code provisions. The scope of work would include the
replacement of 280 light fixtures on three levels of subterranean parking. Eighteen bids
were received and publicly opened on March 25, 2013. The bid results are shown in
Attachment A.
Bids were evaluated based on price, experience, qualifications and references. Based
on these criteria, Yesco LLC is recommended as the best bidder. Staff contacted
references provided by Yesco LLC for prior project experience at Cedars -Sinai Medical
Center, Los Angeles Civic Park and McCarren International Airport. All respondents
reported that their work was completed in a timely and cost - efficient manner while
maintaining consistent quality. Staff also verified with the Contractors State License
Board to ensure that Yesco LLC license is current, active, and in good standing.
Construction Schedule
Construction work is tentatively scheduled to begin in mid -July 2013 for a period of
approximately 30 days. All disruptive work would occur outside of regular garage
business hours.
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Financial Impacts & Budget Actions
The contract to be awarded to Yesco LLC is for an amount not to exceed $177,808.
Award of the contract requires an appropriation of $177,808 to account
C016039.589000.
Entering into the loan agreement with Southern California Edison will result in increased
revenue of $177,808 ($149,256 loan revenue, $28,552 energy incentive payment) in FY
2013 -14. Upon Council approval, these amounts will be included in the FY 2013 -15
proposed budget in accounts 01990.601013 and 01225.410050.
The loan amount of $149,256 will be repaid over approximately 6.5 years (about 78.2
months) in monthly installments of $1,909. Funds are available in division 225; monthly
payments will be charged to account 01225.556240. Budget authority for subsequent
years will be requested in each budget for Council approval. Future funding is
contingent upon Council approval and budget adoption.
Prepared by: Tom Afschar, Architect
Approved:
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Martin Pastucha
Director of Public Works
Attachment: A — Bid Results
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Forwarded to Council:
Rod Gould
City Manager
Attachment A — Bid Results
Main Library Garage LED Replacement Lighting Upgrade Project
Bidder
Base Bid
Yesco
$161,642.25
ABI Construction & Electric, Inc
$176,626.80
Regreen, Inc
$187,600.00
Go Green Solutions
$199,360.00
R & H Industries, DBA Best Electric
$204,120.00
Peterberg Construction, Inc
$224,420.00
Waisman Construction
$229,000.00
Facility Solution Group, Inc
$234,194.80
W.E. Construction, Inc
$237,500.00
Siemens
$239,680.00
Golden Sun Firm& Co Inc
$254,996.00
Amers, Inc
$257,300.00
JFL Electric, Inc
$260,960.00
YaalLevanon
$266,364.00
Unispec
$276,640.00
Lighting Technology Services, Inc
$279,622.05
Pacific Lighting Mgmt, Inc
$293,595.00
MS Navarro Engineering
$296,800.00
Reference Contract No.
9740 (CCS)