SR 08-08-2017 3A
City Council Report
City Council Meeting: August 8, 2017
Agenda Item: 3.A
1 of 6
To: Mayor and City Council
From: Susan Cline, Director, Public Works, Street & Fleet Services
Subject: Award Contract Energy Efficiency Package Bid (Parks, Lots, Structures)
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to enter into an On-Bill Financing agreement with
Southern California Edison (SCE) and to execute all necessary documents to
accept the On-Bill Financing loan and rebates;
2. Award Bid #4265 to Siemens Industry, Inc., a Texas-based company, to
implement energy efficiency measures at various City parks, parking lots, and
parking structures;
3. Authorize the City Manager to negotiate and execute a contract with Siemens
Industry, Inc. in an amount not to exceed $1,208,639 (including a $157,649
contingency); and
4. Authorize the Director of Public Works to issue any necessary change orders to
complete additional work within contract authority.
Executive Summary
In support of Council’s commitment to public safety, environmental sustainability, and
fiscal responsibility, the City has undertaken replacing streetlights with more efficient
Light Emitting Diode (LED) lights. The cost of replacing these lights is subsidized by on-
bill financing through Southern California Edison (SCE). Staff now seeks approval to
implement additional energy efficiency measures in four parks, six parking structures,
and seven parking lots in an amount not to exceed $1,208,639. The majority of the
project would involve retrofitting inefficient lights to LED and would be paid through
savings on electricity bills. Staff estimates that the City would see a return on
investment in under nine years.
Background
Energy efficiency in municipal operations is a key component of the City’s efforts to
reduce greenhouse gases and save on utility costs. Since 2006, the City has
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successfully saved over 4.3 million kWh annually through energy efficiency. An
additional 750,000 kWh in savings are anticipated through the recent conversion of
streetlights to LED.
These conversions are a direct measure in the 15x15 Climate Action Plan adopted by
City Council in February 2013 (Attachment A) and are supportive of Council’s ongoing
priorities of enhancing public safety, protecting the environment, and maintaining fiscal
responsibility. Replacement of existing high-pressure sodium lighting fixtures with LED
lighting would provide an energy-efficient system that would reduce the energy
consumption in the converted areas and also reduce maintenance costs.
Discussion
The energy efficiency project package was approved as a part of the FY 2017-18
Capital Improvement Budget and would focus on the replacement of existing lighting
within City parks, parking structures, and parking lots with LED lighting with
supplemental funding from SCE through rebates and on-bill financing. This package
would also include non-reimbursable measures to replace light poles at Beach Lot 1 at
1550 PCH, new fixtures at Reed Park, and install a new carbon monoxide (CO)
detection system and variable speed drives to control five garage exhaust fans in
Parking Structure 9. The system would monitor CO levels and operate the fans at the
minimum speed required to maintain acceptable CO concentrations.
While not all measures are covered by SCE’s rebate and on-bill financing programs,
replacing or upgrading the systems is still recommended by staff. By bundling various
measures, staff can accelerate energy savings, increase project implementation
efficiency and reduce administration costs. Collectively, the projects would save over
1.1 million kWh. A map of all project locations is included in Attachment B.
In May 2017, the City submitted 12 applications to fund this conversion project under
the SCE’s On-bill Financing (OBF) and Energy Rebate Program. This program offers
reimbursements for eligible expenses incurred to complete the lighting upgrades.
Rebates are issued directly and the OBF, which is a 0% interest loan, is repaid over
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time through a charge on the City’s monthly utility bill. Approval on all 12 submitted
applications is expected to be received in summer 2017.
Staff recommends entering into an OBF agreement with SCE in an estimated amount of
$785,802 in FY 2017-18 to fund the eligible energy efficiency measures.
When the proposed conversion project is completed, SCE would conduct a final
inspection and issue a rebate check and OBF loan proceeds check which, together,
would reimburse the City for the cost of construction with the exception of $71,200. SCE
would then add a monthly loan repayment charge to the utility accounts impacted. The
monthly payment is calculated to be equal to the energy cost savings generated by the
project, allowing the City to continue paying the same amount to SCE with no budget
changes needed. Once the loan is repaid, the energy cost savings would revert to the
General Fund. The monthly loan payments would be made on the electric bill of the
facility receiving the efficiency upgrade over an average of 8 to 9 years for all of the
projects.
4 of 6
Project
#
Incentive
Application
kWh
Savings
kW
Savings
Estimated
Cost
Non-
Reimb
Cost
Estimated
Rebate
Estimated
OBF
Loan
1 Airport Park 82,768 0.24 $109,755 $14,061 $95,694
2 Memorial
Park 206,745 0 $282,545 $34,255 $248,290
3 Reed Park 68,305 0.00 $106,375 $11,550 $11,038 $83,787
4 Palisades
Park 121,401 0.00 $70,275 $20,638 $49,637
5 Parking
Structure P1 29,485 3.17 $12,372 $5,788 $6,584
6 Parking
Structure P2 89,839 9.39 $43,132 $17,139 $25,993
7 Parking
Structure P4 86,196 9.02 $33,624 $16,464 $17,160
8 Parking
Structure P5 96,562 10.01 $39,656 $18,375 $21,281
9 Parking
Structure P9 81,179 9.3 $129,086 $13,250 $15,194 $100,642
10
Parking
Structure
P10
16,626 1.91 $25,520
$3,113 $22,407
11 Beach Lot
#1 205,041 0 $152,300 $46,400 $28,674 $77,226
12 Beach Lot
Lighting 33,875 0 $46,350 $9,249 $37,101
Total 1,118,022 43.04 $1,050,990 $71,200 $193,988 $785,802
Contingency $157,649
Total with
contingency $1,208,639
The cities of Los Angeles, San Diego, San Jose and many others throughout the
country have already taken significant strides towards system-wide conversion to LED
lights. LEDs reduce maintenance costs and yield significant energy cost savings.
Public Outreach and Project Timeline
The Street and Fleet Services Division of the Public Works Department would manage
the construction and collaborate with the Office of Sustainability & the Environment to
implement communications and outreach. Construction is anticipated to start in October
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2017 with an expected duration of six months. Community notices would be issued via
the website, flyers at facilities and social media.
Vendor Selection
On March 8, 2017, the City published Notices Inviting Bids to convert 4,152 outdoor
LED lights across 12 facilities in accordance with City specifications. The bid was
posted on the City’s on-line bidding site, and notices were advertised in the Santa
Monica Daily Press, in accordance with City Charter and Municipal Code provisions.
722 vendors were notified, 92 vendors downloaded the bid. Five bids were received and
publicly opened on March 24, 2017.
Bidder Bid Amount
tL Custom Lighting $342,629
Green Energy Innovations $711,924
Siemens Industry, Inc. $1,050,990
Aegis ITS $2,325,994
Comet Electric, Inc. $2,648,909
The bids were evaluated based on the criteria in SMMC 2.24.072, including price,
previous experience, capacity and skill, ability to deliver, quality of product, and
compliance with City specifications and scope of work. Siemens Industry Inc. is not the
lowest bidder, but offered in most cases, installation of new fixtures with manufacturer
warranties, in addition to a one-year warranty on installation; responded to City
supplemental bid questions regarding DarkLights Consortium (DLC) lighting compliance
and their ability to provide documentation needed for on-bill financing submittals; and
provided references which indicated that the company has satisfactorily completed
projects of similar size and scope. Based on these criteria, Siemens Industry Inc., is
recommended as the best bidder.
Financial Impacts & Budget Actions
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The contract to be awarded to Siemens Industry Inc., is for an amount not to exceed
$1,208,639. Funds are available in the FY 2017-18 Capital Improvement Program
budget. The contract will be charged to the following accounts:
C019144.589000 $ 390,383
C119144.589000 $ 186,617
C019155.589000 $ 631,639
TOTAL $ 1,208,639
Entering into an On-Bill Financing agreement with Southern California Edison to fund
the Park, Parking Structure and Parking Lot Light Conversion Project is estimated to
result in a one-time revenue of $979,790 ($785,802 loan proceeds and $193,988
energy incentive rebates) in FY 2017-18 in account 01426.410050. Revenue budget
adjustments have already been included in the approved FY 2017-18 Budget.
The loan amount of $785,802 will be repaid over an average of 8 to 9 years for all
projects with monthly on-bill charges determined upon final application acceptance.
Prepared By: Kori Jones, Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. 15x15 Climate Action Plan (Weblink)
B. Project Locations
C. Oaks Disclosure 2017
D. Written Comments
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MAZ AT LAN S T Civic Center Drive
LED Lighting Conversion Project Locations
City of Santa Monica
µ0 0.5 10.25 Miles
Parking Structures
Parking Lots
Parks
Facility Type
Parking Lot
Parking Structure Park
City Blocks
N. Airport Park
O. Memorial Park
P. Palisades park
Q. Reed Park
3201 Airport Ave.
1401 Olympic Blvd.
Ocean Ave, North of SM Pier
1133 7th St.
A. Structure 1
B. Structure 2
C. Structure 4
D. Structure 5
E. Structure 9
F. Structure 10
1234 4th St.
1235 2nd St.
132 2nd St.
1440 4th St.
1136 4th St.
1125 Third St.
G. Lot Annenberg
H. Lot 1550 PCH
I. Lot 3N
J. Lot 2S
K. Lot 3S
L. Lot 4S
M. Lot 5S
415 Palisades Beach Rd.
1550 PCH
1150 PCH
1670 Appian Way
1750 Appian Way
2030 Ocean Ave.
2600 Bernard Way
A
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Exhibit B
CITY OF SANTA MONICA
OAKS INITIATIVE NOTICE
NOTICE TO APPLICANTS, BIDDERS, PROPOSERS
AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,
OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA
Santa Monica’s voters adopted a City Charter amendment commonly known as
the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and
information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s
text from the City Clerk.
This information is required by City Charter Article XXII—Taxpayer Protection. It
prohibits a public official from receiving, and a person or entity from conferring, specified
personal benefits or campaign advantages from a person or entity after the official votes,
or otherwise takes official action, to award a “public benefit” to that person or entity. The
prohibition applies within and outside of the geographical boundaries of Santa Monica.
All persons or entities applying or receiving public benefits from the City of Santa
Monica shall provide the names of trustees, directors, partners, and officers, and names
of persons with more than a 10% equity, participation or revenue interest. An exception
exists for persons serving in those capacities as volunteers, without compensation, for
organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the
Internal Revenue Code. However, this exception does not apply if the organization is a
political committee or controls political committees. Examples of a “public benefit” include
public contracts to provide goods or services worth more than $25,000 or a land use
approval worth more than $25,000 over a 12-month period.
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an
entity, rather than an individual person, the information includes the name of every person
who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent
interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks
Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This
information must be updated and supplied every 12 months.
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by
an entity, rather than an individual person, the information includes the name of every
person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten
percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-
month period;
3. Purchase, sale or lease of real property to or from the City in excess of $25,000
over a 12- month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more in any
12-month period;
5. Land use variance, special use permit, or other exception to an established land
use plan, where the decision has a value in excess of $25,000;
6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-
month period; or
7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-
month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: ____________________________Title: __________________________
Signature: ______________________________________ Date: ________________
Email: ____________________________________ Phone: ____________________
FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by
an entity, rather than an individual person, the information includes the name of every
person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten
percent interest in the entity.
Public benefits include:
1.Personal services contracts in excess of $25,000 over any 12-month period;
2.Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-
month period;
3.Purchase, sale or lease of real property to or from the City in excess of $25,000
over a 12- month period;
4.Non-competitive franchise awards with gross revenue of $50,000 or more in any
12-month period;
5.Land use variance, special use permit, or other exception to an established land
use plan, where the decision has a value in excess of $25,000;
6.Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-
month period; or
7.Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-
month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: ____________________________Title: __________________________
Signature: ______________________________________ Date: ________________
Email: ____________________________________ Phone: ____________________
FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________
Item 3-A
08/08/17
Item 3-A 08/08/17
REFERENCE:
CONTRACT NOS. 10513 &
10514
(CCS)