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CC - (1) Acceptance of Work Performed by Express Energy Services in the Amount of $247,920; (2) Authorization to File a Notice of Completion; and (3) Authorization to Release the Retention Payment of $12,239 after Expiration of the 35-Day Lien Period, for the Ince Parking Structure Lighting Retrofit Project, CIP PA-003.
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Meeting Date: January 8, 2018
Contact Person/Dept: Joe Susca/Public Works Administration
Phone Number: 310-253-5636
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No []
Public Hearing: [] Action Item: [] Attachments: []
Commission Action Required: Yes [] No [X] Date:
Public Notification: (E-Mail) Meetings and Agendas - City Council (01/03/2018); Express Energy Services (12/19/17); The Energy Network (12/19/17)
Department Approval: Charles D. Herbertson (12/20/17)
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RECOMMENDATION
Staff recommends the City Council: (1) accept work performed by Express Energy Services (Express) in the amount of $247,920; (2) authorize filing a Notice of Completion; and (3) authorize release of the retention payment amounting to $12,239 after expiration of the 35-day lien period for the Ince Parking Structure Lighting Retrofit Project, CIP PA-003.
BACKGROUND
Since 2013, the City has been working with The Energy Network (TEN) to implement turn-key energy efficiency projects citywide. In 2016, TEN conducted an energy audit at the City’s Ince Parking Structure (Ince) that focused on lighting. After reviewing the audit, staff and TEN agreed that a lighting retrofit project that replaced nearly 700 existing fluorescent fixtures with Light Emitting Diode (LED) fixtures would improve energy efficiency and reduce operating costs (the “Project”). The Project also qualified for incentives and on-bill financing from Southern California Edison (SCE).
The new LED fixtures that replaced the fluorescent fixtures are equipped with “occupancy sensors” that allow them to operate in a dimmed fashion until motion triggers their full illumination. They are also equipped with “daylight harvesting” sensors that detect the presence of natural light and automatically adjust the amount of illumination they put out accordingly. In combination, these two features coupled with the use of LED technology have yielded a significant reduction in the amount of electricity used at Ince. The new LED fixtures will also reduce the City’s maintenance cost as the new lights will not require replacement for many years and staff will no longer have to purchase and replace burned out fluorescent bulbs.
During their meeting of June 26, 2017 the City Council approved a contract in an amount up to $265,000 with Express to complete the Project ($244,745 base amount with a $20,255 contingency).
DISCUSSION
The Project required one change order amounting to $3,145.05 that added one additional remote control to program the fixtures as a backup and 16 more fixtures that will be stored as spares for future use.
The Project is now complete. Staff received training from Express on how to use the remote control used to program each light fixture to activate its daylight harvesting, occupancy sensor and dimming features.
FISCAL ANALYSIS
Sufficient funds exist in CIP PA-003 Ince Parking Structure Lighting Retrofit Project to cover the $247,920 cost to complete the Project. The City will save 191,656 kWh in electricity annually (valued at $26,508) by implementing the Ince project for a total savings of $318,096 over the project’s 12-year life. The Project is entirely funded by a zero-interest loan from SCE through their on-bill financing program that is paid back over 10 years by cost savings generated by the Project. The City will receive $31,220 in SCE incentives for a net cost of $216,700 ($247,920 - $31,220). The Project will achieve a total net savings of $101,396 ($318,096 in reduced electricity cost - $216,700 capital outlay). The City will also realize additional savings due to reduced maintenance costs as staff will no longer have to purchase and replace burned out fluorescent bulbs.
MOTIONS
That the City Council:
1. Accept the work performed by Express Energy Systems in the amount of $247,920; and
2. Authorize the Public Works Director to file a Notice of Completion; and
3. Authorize release of the retention payment in the amount of $12,239 to Express Energy Systems upon expiration of the 35-day lien period.