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HomeMy WebLinkAboutResolution 2013-41 - Authorizes the City to Participate in t Dept. ID AD-13-024 Page 1 of 2 Meeting Date:8/19/2013 �'a�40 -� CITY OF HUNTINGTON BEACH r, REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 8/19/2013 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Fred A. Wilson, City Manager SUBJECT: Adopt Resolution No 2013-41 authorizing the city to participate in the California Energy Commission's Energy Partnership Program Statement of Issue: Council is being asked to approve a resolution to participate in the California Energy Commission's (CEC) Energy Partnership Program. This program pays for up to $20,000 in energy project technical assistance at no-cost to cities. A Governing Board resolution is required to receive this technical assistance. Financial Impact: No financial impact Recommended Action: Approve and adopt Resolution No. 2013-41, "A Resolution of the City Council of the City of Huntington Beach Pertaining to California Energy Commission, Energy Partnership Program Governing Board Resolution to Utilize California Energy Commission Technical Assistance for Street Light Retrofits." Alternative Action(s): Do not approve the resolution and advise staff on how to proceed. Analysis: On February 4, 2013 City Council approved a binding Letter of Intent with Siemens Mobility Solutions to study and develop the opportunity to restructure street lighting services. SCE and Siemens have concluded the initial field survey of the 12,346 SCE owned poles providing street lighting in Huntington Beach. Siemens and SCE will be providing indicative pricing and proposals for the purchase and upgrade of the street lighting system shortly. This project has significant potential to improve street lighting, reduce environmental impacts, and save the city money. Given the scale of the opportunity to restructure a $2,000,000 per year annual cost for street lighting services, staff recommends that an independent peer review of the technical and economic proposals from both Siemens and SCE be secured to independently assess and make recommendations that will inform the city's decision of whether or not to proceed. Additionally, the city owns approximately 2,500 street, parking lot and area lighting poles that could be upgraded at the same time. However, the time consuming nature of completing that detailed inventory, energy engineering and incentive application process requires additional resources to include this opportunity at the same time. Item 9. - 1 HB -106- Dept. ID AD-13-024 Page 2 of 2 Meeting Date:8/19/2013 The CEC's Energy Partnership program provides these services at no-cost to local governments like Huntington Beach, if the Governing Board adopts the resolution. Staff has completed the CEC's Energy Partnership technical assistance program application. The application requests technical assistance to provide two deliverables: 1. Independent peer review of Siemens and SCE's proposals. 2. Resources to complete the inventory and energy incentive applications for the city-owned pole lighting. Environmental Status: Not applicable Strategic Plan Goal: Improve the City's infrastructure Attachment(s): 1. Resolution No. 2013-41: "A Resolution of the City Council of the City of Huntington Beach Pertaining to California Energy Commission, Energy Partnership Program Governing Board Resolution to Utilize California Energy Commission Technical Assistance for Street Light Retrofits." 2. Energy Partnership Program technical assistance application HB -107- Item 9. - 2 ATTACHMENT # 1 RESOLUTION NO. 2013-41 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH PERTAINING TO CALIFORNIA ENERGY COMMISSION, ENERGY PARTNERSHIP PROGRAM GOVERNING BOARD RESOLUTION TO UTILIZE CALIFORNIA ENERGY COMMISSION TECHNICAL ASSISTANCE FOR STREET LIGHT RETROFITS WHEREAS, the California Energy Commission's Energy Partnership Program provides technical assistance in identifying energy efficiency improvements; and The City Council of the City of Huntington Beach authorizes the City of Huntington Beach to apply for technical assistance from the California Energy Commission; and The City of Huntington Beach recognizes that the California Energy Commission has limited funds for technical assistance and that primary consideration will be given to those that are committed to implementing the recommended projects identified through the Energy Partnership Program, NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: The City of Huntington Beach will seek funding, if necessary, to implement the recommended feasible energy efficiency projects identified through the Energy Partnership Program. BE IT FURTHER RESOLVED, that the Energy Project Manager is hereby authorized and empowered to execute in the name of the City of Huntington Beach all necessary documents to implement and carry out the purposes of this resolution. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 19 th day of August , 2013. e Mayor REV AND APPROVED: APPROVED AS TO FORM: C' a ager 5ity Att rney �,I��,� 7 3 INITIATED AND APPROVED: Director of Public Works 13-3829/99875.doc Res. No. 2013-41 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I; JOAN L. FLYNN the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a Regular meeting thereof held on August 19, 2013 by the following vote: AYES: Sullivan, Hardy, Harper, Boardman, Carchio, Shaw, Katapodis NOES: None ABSENT: None ABSTAIN: None City lerk and ex-officio dirk of the City Council of the City of Huntington Beach, California ATTAC H M E N T #2 Technical Assistance Application Energy Partnership Program California Energy Commission 1. Applicant Information Applicant*: City of Huntington Beach County: Orange Mailing Address: 2000 Main St. City: Huntington Zip: 92648 Beach Street Address: 2000 Main St. City:Huntington Zip: 92648 Beach Contact Person: Aaron Klemm Title: Energy Project Department: City Manager's office Manager Phone Number: 714-536-5537 Email: aaron.klemm@surfcity-hb.org * Name of local government,college, public care facility or special district. 2. Project Description Type of assistance needed: ❑ Energy audit— evaluate energy efficiency opportunities at existing facilities ❑ Evaluate opporttnitlesfor.pg eq neW I? 1C ❑ New construction —evaluation of new facility ❑ Other Discuss your proposed project(s) and why you require technical assistance: The city is a gold level partner in SCE's Energy Leader partnership and expects to attain Platinum status shortly. The City Council has approved payment of $10,000 to SCE to assess the sale/purchase value of the LS-1 (unmetered, utility owned) street lights(12,347). In addition, the City Council has entered into a binding letter of intent with Siemens to monitor the value assessment process, assist with the purchase, upgrade to LED light sources, upgrade series circuits to energy efficient circuits and light sources and maintain the street lighting system. Siemens and SCE are nearing the completion of the facilities condition assessment phase of the work. The city desires technical assistance from the CEC's Energy Partnership program to provide peer review and recommendations for Siemens technical and economic proposals for the purchase and upgrade of the LS-1 streetlight circuits. In addition, the city is requesting assistance to be able to simultaneously retrofit the city owned street lights, parking lot lights and area lights to energy efficient, white light sources. This would make HB one of the first all LED night lighting cities in Southern California. The two desired deliverables would be a peer review of Siemens proposals and a series of incentive plications and bills of materials for the city owned lighting circuits to be upgraded by city staff at the same ..me that Siemens staff upgrades, the purchased from SCE, street lights. HB -111- Item 9. - 6 Describe how you plan to implement the recommendations that may be identified: The peer review of Siemens investment grade assessment will provide an independent opinion of the opportunity and provide City Council the confidence to proceed with a very large (>$10M) purchase/upgrade/maintain energy savings performance contract with Siemens. This project is being monitored by many other local governments in SCE territory and if successful could be a major source of budget neutral energy savings and improvements to public safety in So Cal. The incentive application, lighting tables and bill of materials for the city owned street, parking lot and area lighting circuits would accurately scope out the equipment requirements and energy savings permitting these city staff installed energy savings measures to gain economies of scale in purchasing LED fixtures, energy savings and the ability to finance these purchases from the energy and tariff savings associated with the LS-1 purchase. Funding source(s): AQMD Rule 1304 mitigation fees for power plant rebuild in Huntington Beach SCE Energy Leadership program Platinum level incentives (17 cents per annual avoided KWh) Utility bill savings from purchase and energy efficient upgrades will be used to repay capital costs via financing from one or more of the following sources of funding. CEC low interest loan, up to maximum limit Siemen's vendor financing - -2% for up to 15 years The Energy Network's lease purchase financing Bond sale City staff analysis indicates that the entire project is able to be financed from the utility bill savings. City Council has previously approved debt financed energy efficiency improvements. Do you have any current contracts or working relationships with consultants, energy services companies, utilities, architects, or others that pertain to this request for Technical Assistance? If yes, please describe: Yes, the city has signed a binding Letter of Intent with Siemens for the LS-1 purchase and series circuit upgrades. Expected project start date: March 30, 2014 Expected project completion date: May 31 st, 2015 Indicate your economic criteria for ❑ Projects must have a payback period < years. selecting projects to be installed: (Check all that apply) ❑ Projects must have an internal rate of return > % ❑ Other_Project must provide a minimum 10% savings to general fund compared to business as usual utility owned LS-1 street light costs Item 9. - 7 HB -112- 3. Project Team Title Name Phone No E-Mail Iroject Manager Aaron Klemm 714-536- Aaron.Klemm(a-_)surfcity-hb.org 5537 mousiness Manager or LoriAnn Farrell 714-536- LoriAnn.Farrel l(a)surcity-hb.org Finance Officer 5225 Electric and Gas Utility Rick Raskin 714-973- Rick.raskin(E�sce.com Representative 5765 Consultant/Contractor 714-630- if known Bryan Berlin 2100 Bryan.berlin(a�siemens.com 4. Provide the following information. If you are requesting assistance for more than one facility, please prioritize from highest to lowest. Attach additional pages if needed. Year Built Estimated Facility Name and Address (excluding Building portables) Size (sq.ft.) LS—1 (utility owned, unmetered)street lights—city wide 1950-1990 12,347 poles (cobra head styles) LS-2, LS-3,AL-2 and GS-2 street,parking lot and area lights city-wide 1950-2005 Approximately 2500 poles (decorative post top,vandal resistant post top cobrahead and shoe box styles) 5. 1 have attached the following information: ❑ Governing Board Resolution ❑ Latest 12 months electric and gas bills showing the energy cost and detailed usage information for each facility listed in Item 4 (above). ❑ Any past energy studies for each facility ❑ Site map of facilities (e.g. 1As or a fire evacuation map) ❑ For new construction only: Schematic drawings (if available) I certify to the best of my knowledge that the data in this application are correct and complete. Authorized Representative* Name: Title Signature: Date *Authorized Representative is the one designated by the governing body,in your Resolution,to execute documents in the name of the applicant. rdmund G.Brown Jr. „ 1516 Ninth Street, Governor MS 23 California Energy Sacramento,CA Commission Commissioners Z` `~ 95814-5512 Chairman Karen Douglas,J.D. (916)654 4104 Robert B.Weisenmiller, Andrew McAllister California Energy Commission Ph.D. Special Projects Office HB -113- Item 9. - 8 Robert Oglesby Executive Director http://www.energy.c .gov/efficiency/financing/index.htmI Item 9. - 9 HB -114-