SR 03-05-2019 3A
City Council
Report
City Council Meeting: March 5, 2019
Agenda Item: 3.A
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To: Mayor and City Council
From: Susan Cline, Director, Public Works, Street & Fleet Services
Subject: Second Modification to Agreement with Siemens Mobility, Inc. for Energy
Efficiency Measures at City Parks, Parking Lots and Parking Structures
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute an amendment and restatement of agreement #10514 in the amount of
$193,308 with Siemens Mobility, Inc., a Texas-based company, to implement energy
efficiency measures at various City parks, parking lots, and parking structures. This
amendment will extend the term for one year past the date of execution, resulting in a
three-and-one-half-year agreement with a new total amount not to exceed $1,401,947,
with future year funding contingent on Council budget approval.
Summary
As part of Santa Monica’s efforts to be a global leader in sustainability, the City is
reducing its energy consumption by replacing existing lighting at various City parks,
parking lots, and parking structures with LED lights. The City uses Siemens Industry,
Inc. to implement its LED lighting energy efficiency project. Staff requests a second
modification to include Ocean View Park, Clover Park, and Virginia Avenue Park, make
upgrades to existing light fixtures in parking structures, address some unanticipated
project costs and recognize the company’s name change from Siemens Industry, Inc. to
Siemens Mobility, Inc.
Discussion
The LED lighting energy efficiency project is a direct measure in the 15x15 Climate
Action Plan adopted by City Council in February 2013 and supports 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 provides an energy-efficient system that improves lighting while reducing energy
consumption and maintenance costs. The LED fixtures specified are dark sky friendly,
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limit upward and visual glare, and have been specified to minimize any potential effects
to human sensitivity.
Since Council approval in August 2017, all beach lots have been converted to LED
lighting in addition to Reed Park and Palisades Park. Staff removed Memorial Park from
the project scope due to future plans to remodel the park. Staff also removed ballfield
lighting systems from the scope for City parks as replacement systems proved to be
cost prohibitive under this project, with estimates exceeding $230,000. Staff will request
funding for the ballfield lighting systems as part of a future capital project application.
Staff is requesting approval of a second modification in the amount of $193,308 to
include lighting conversions at Ocean View Park, Virginia Avenue Park, and Clover Park
and cover additional expenses that staff did not anticipate. In 2018, City staff conducted
a follow-up inspection of the parking structures since the initial lighting audit was
completed by a consultant in 2015. The parking structure conversion is part of the
original project scope; however, this recent inspection called for the replacement of light
fixtures, in addition to bulbs, due to excessive corrosion of existing fixtures. Also, to
secure a permit for the conversion of parking structure lighting, the Building and Safet y
Division requires an independent assessment of Title 24 compliance to be completed
and approved by a third-party electrical engineering firm. Siemens has agreed to
acquire these third-party services and pass the additional cost onto the City. Lastly, the
contractor has had a name change from Siemens Industry, Inc. to Siemens Mobility,
Inc. Taking these modifications into consideration, the new total amount not-to-exceed
for this project would be $1,401,947.
Past Council Actions
08/08/2017
(Attachment A)
Council awarded agreement with Siemens Industry, Inc. to
implement energy efficiency measures at various City parks,
parking lots, and parking structures
Financial Impacts and Budget Actions
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Staff seeks authority to increase the amount of agreement 10514 with Siemens Mobility
Inc. to implement energy efficiency measures at City parks, parking lots, and parking
structures.
Agreement 10514 Second Modification Request
Agreement# Current
Authorized
Amount
Modified
Request
Amount
FY 2018-19
Budget CIP
Account#
Total Revised
Contract
Amount
10514 $186,617 $0 C1106480.689000 $186,617
10514 $390,383 $0 C0106480.689000 $390,383
10514 $631,639 $193,308 C0106580.689000 $824,947
Total $1,208,639 $193,308 $1,401,947
Future year funding is contingent on Council budget approval.
Prepared By: Kori Jones, Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. August 8, 2017 Staff Report
B. Siemens Mobility Oaks Initiative Disclosure Form
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 $1,20 8,639 (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 fan s 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.
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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 manufa cturer
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