STAFF REPORT TO THE CITY COUNCIL. The Mayor and Members of the City Council. Jeff Brown, Interim Public Works Director

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2 STAFF REPORT TO THE CITY COUNCIL DATE: Regular Meeting of May 13, 2014 TO: SUBMITTED BY: SUBJECT: The Mayor and Members of the City Council Jeff Brown, Interim Public Works Director Victoria by the Bay streetlight replacement RECOMMENDED ACTION: Adopt a r esolution a uthorizing t he C ity Manager to execute a new On-Bill L oan F inancing Agreement with Pacific, Gas, and Electric (PG&E) for an amount not to exceed $247, and authorizing the expenditure of an amount not to exceed $32, to Holophane for the purchase of additional replacement light fixtures for the Victoria by the Bay subdivision. FISCAL IMPACT OF RECOMMENDATION: There is no fiscal impact. DISCUSSION: Staff has been working with PG&E and Holophane to replace the existing street lights in Victoria by the Bay and other areas of the City with more efficient light emitting diode (led) lighting. At the September 24, 2013 meeting of the City Council adopted Resolution authorizing an On-Bill Loan Financing Agreement of $223, If adopted the resolution will increase the total amount to $247, The Victoria by the Bay neighborhood is one of the only neighborhoods where all of t he s treetlights a re ow ned by t he C ity a nd t herefore i s a g ood c andidate f or t his w ork. I n addition, i f a pproved by t he C ouncil, a ll l ights on S an P ablo A venue, A lfred Nobel Drive, and Willow Avenue will also be replaced with led lighting. There will be 230 new lights in Victoria by the Bay on both sides of San Pablo Avenue, 50 new lights on San Pablo Avenue, and 33 new lights on Willow Avenue for a total of 313 new fixtures. Because of a m apping error 43 lights were not included in the original estimates this purchase will complete the project. The financing is offered by PG&E with a zero interest loan over a term of 108 months. There is no cost t o t he C ity of H ercules. The es timated an nual en ergy s avings w ill b e 1 67,946 kwh which equates to a $ 32,300 annual savings. These savings will be used to pay back the loan under the terms of the agreement with a simple payback period of nine years. Once the loan is paid off the City of Hercules will begin to enjoy the cost savings that were being redirected to pay the loan off. Page 1

3 The amount of $32,300 will then be available for other uses. In addition and as part of the catalyst for th e p roject, s taff time a nd p hysical ma intenance c osts w ill a lso d rop. S taff c urrently has to replace ballasts on a regular basis at a cost of $200. The bulbs are approximately $75 and staff time to do t he repairs is a pproximately $150 for a t otal c ost of a pproximately $450 per light. Maintenance c osts f or t he e xisting f ixtures c an a dd up qui ckly a nd these costs will be reduced dramatically with the new fixtures which have a system life estimated to be 36 years. Holophane w orks di rectly w ith P G&E a nd t he C ity of H ercules t o pr ovide t he l ights. They understand that the lights must be installed and inspected by PG&E before payment can be made and have offered to provide the City with a 90 day lead time versus the standard 30 days. ATTACHMENTS: Attachment 1 Resolution Attachment 2 PG&E Loan Agreement Attachment 3 Holophane Proposal Page 2

4 RESOLUTION NO. 14- RESOLUTION O F TH E C ITY C OUNCIL O F TH E C ITY O F H ERCULES AUTHORIZING THE CITY MANAGER TO EXECUTE AN O N-BILL L OAN F OR AN AMOUNT NO T T O E XCEED $247, AND AUT HORIZING T HE EXPENDITURE OF AN AM OUNT NOT T O EXCEED $32, TO H OLOPHANE FOR T HE PURCHASE O F AD DITIONAL R EPLACEMENT LI GHT FIXTURES F OR TH E VICTORIA BY THE BAY SUBDIVISION AND OTHER AREAS OF THE CITY WHEREAS, the City of Hercules desires to reduce its cost of electricity for street lights; and WHEREAS, the Victoria by the Bay subdivision and other areas of the City have lights owned by the City that are outdated; and WHEREAS, PG&E has offered a zero-interest loan to the City to replace said lights with more energy efficient light emitting diode lighting (led); and WHEREAS, staff has worked closely with PG&E and Holophane to ensure the work will result in a substantial cost savings to the City; and WHEREAS, when the loan is paid off the City should see a cost savings of more than $32,300 per year. NOW, THEREFORE, BE I T R ESOLVED by the C ity C ouncil o f the C ity of H ercules a s follows: 1. The City Council hereby authorizes the City Manager to execute an agreement with PG&E in an amount not to exceed $247, The City Council authorizes the appropriation and/or expenditure of an amount not to exceed $32, to Holophane for the purchase of said light fixtures. The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the thirteenth day of May, 2014 by the following vote of the Council: AYES: NOES: ABSENT: Myrna L. de Vera, Mayor ATTEST: Margaret S. Roberts Administrative Services Director/City Clerk

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11 Job Name: City of Hercules - LED Acorn Replacement Quote #: Quote Label: Hercules Fixture Add On Job Location: Hercules, California Issue Date: 4/22/2014 Bid Date: 8/21/2012 Quoted By: Philip Heinz Attachment 3 Quoted To: CITY OF HERCULES 111 CIVIC DRIVE HERCULES, CA Type VICTORIA W SOUTH Qty Catalog # Unit $ Ext $ GVD404K12MB3NNUHPCS LABEL WITH 120 VOLTS ONLY RFD SPECIAL WITH 120 VOLT DRIVER AND LABEL FOR 120 VOLT ONLY. GranVille II LED (GVD): GranVille(R) II LED (GVD), 40W 215mA Driver, 4000 Series CCT, set and Lablel for (120 volts only) Modern Style - Swing Open Design, Black, Asymmetric Type III, No Trim, No Finial, No Trim and Clear or No Finial, NEMA Twistlock Photocontrol Receptacle, DTL Twistlock Photocontrol For Solid-State ATB2 60BLEDE53 MVOLT R3 NL PCSS Autobahn LED Roadway - Large (ATB2): ATB2, 60B Chips, 525mA Driver, Multi-Volt ( V), Roadway Type III, 4000K (Standard), Gray (Standard), Terminal Block (Standard), NEMA Label, CSA Listed, Solid-State Lighting Photocontrol $ $ $24, $8, Estimated Lead Time: 30 days Notes Grand Total: $32, Terms HOLOPHANE: This quote is valid for 90 calendar days from date of quote. Shipment lead times begin the day after the order is released and are based on working days only. Shipments are FOB Shipping Point on all orders. Holophane shall pay freight on orders of $3,000 or more ($750 for replacement ballast kits) to all points in the continental United States and Canada. Upon release of your order, poles and non-standard material cannot be cancelled or returned. Terms are subject to revision. Items with "Hold" status have not been allocated any labor, material, or scheduled production time. The lead time to shipment will begin when Holophane receives your clarification or approval to release your purchase order item(s) from "Hold" status. Prices in this acknowledgement are firm for release within a period of six months from the date of order. At the end of six months, Holophane, at its option, shall either increase prices by 3% or renegotiate pricing. Thereafter, escalation of 1-1/2% per three month period will be added. In the event of an extraordinary change in raw material costs, Holophane reserves the right to renegotiate pricing. Pricing will be reevaluated and confirmed upon receipt of your clarification or approval to release the purchase order item(s) from "Hold" status. Quote #: Page 1 of 1

12 CITY OF HERCULES SOLE SOURCE/BRAND REQUEST THIS FORM MUST BE COMPLETED AND APPROVED PRIOR TO ANY SOLE SOURCE PURCHASE When a r equest i s m ade f or a non -competitive purchase of g oods or s ervices a nd t he specification or special circumstances limit the bidding to one source and/or one brand or trade name, the requesting department must complete the this form for City Manager approval. Please answer in the space provided, or in an attachment address b y specific reference, each question listed below (1-5) in your justification. Be sure to answer each part of each question. Failure to respond f ully t o a ny o f t he que stions c ould r esult i n de lay or rejection of your r equest due t o inadequate justification. 1. Using appropriate detail, such as brand name, model number etc., briefly describe the product you w ish t o pur chase. In t he c ase of a s ervice us e e nough de tail t o c learly de scribe t o someone not familiar with the process what you are purchasing. 2. Please check one: a. X SOLE SOURCE: Item is available from one source only. Item is one-of-a kind a nd i s not s old t hrough di stributors. M anufacturer i s exclusive di stributor. Special c ircumstances merit c onsideration of s ole s ource t o s ave m oney and/or time. b. SOLE BRAND: Various s ources can supply the specified model and brand; competitive bids will be solicited for the requested brand only. Meets form, fit and function - nothing else will do. c. STANDARDIZATION R EQUEST: T he De partment requires t he i tem to standardize parts, design, quality etc. 3. What are the unique performance features of the product, brand or service requested that are not a vailable i n a ny other pr oduct, brand or s ervice? ( For s ervices: W hat uni que qualifications, rights, and/or licenses does this vendor possess?) This Purchase is for streetlight replacement parts that must mach existing lights 4. (a) Why are the unique performance features REQUIRED (not merely preferred), and how would your requirement be inhibited without this particular service/item? OR (b) What are the uni que ci rcumstances t hat C OMPEL ( not m erely m ake eas ier) t he r ecommendation of this service/item at this particular time?

13 Attachment 2 5. What other products/services have been examined and rejected, and why? None This is a standardization request to complete to match existing lights. 6. If jus tification is b ased on m atching and/or i ntermixing w ith existing e quipment ( refer to 1.c.), list the quantity, manufacturer, brand, and model of the existing equipment, and why the matching is required not simply preferred. Holopfane Lighting Grandville light fixtures to match the rest of subdivision. I HEREBY CERTIFY THAT: 1. I am an approved department r epresentative, and am aw are of t he C ity's r equirements f or competitive bidding, as well as the criteria for justification for sole source/brand purchasing. 2. I ha ve gathered the r equired technical i nformation and have m ade a con centrated effort t o review comparable and/or equal equipment/service. 3. The information contained herein justifying my request for sole source/brand purchasing and is valid in regard to meeting the City's criteria. 4. I believe that a sole source/brand purchase in this case would withstand a possible audit or a vendor's protest. REQUESTOR: Jeff Brown, Interim Public Works Director DATE: 4/24/14 DEPT. HEAD/ DIRECTOR: Jeff Brown DATE: 4/24/14 FINANCE DIRECTOR: APPROVED: NOT APPROVED: DATE: / / COMMENTS: BY: FINAL APPROVAL DATE: / / City Manager City Council (Up To $20,000.00) (Over $20,000.00) Sole Source Form November 8, 2011 Page 2

14 Attachment 2 SOLE SOURCE/BRAND REQUEST B. PROCEDURE Sole source/brand purchasing is an exception to the normal procurement function and requires a detailed justification. If you are requesting a particular vendor, brand or product, you must make this fact clear on your requisition. Y our request will then be restrictive and non-competitive, and will fall into a sole source/sole brand category. Such a request should not be made unless you are confident that your request is reasonable and appropriately jus tified to meet the C ity s r equirements a nd withstand a ny possible a udit. T he City s r equirements a nd t he f ormat f or s ubmitting s uch r equests a re contained he rein. P lease make copies of the Sole Source/Brand Request form for your future use. The following factors DO NOT apply to sole source/brand requests and should not be included in your sole source/brand justification. They will not be considered and only tend to confuse the evaluation process. 1. Personal preference for product or vendor. 2. Vendor pe rformance, and local s ervice (these a re generally cons idered award factors in competitive bidding). 3. Features which exceed the minimum department requirements. 4. Explanation f or t he a ctual ne ed and ba sic us e for t he equipment, unl ess t he i nformation relates t o a r equest f or unique f actors (refer to que stions 2 a nd 3 f rom t he S ole Source/Brand Request form). 5. A request for no substitution submitted without justification. T his is a sole source/brand request requiring detailed justification including established sole source/brand criteria. Sole Source Form November 8, 2011 Page 3