Report to Mayor and City Council
Tuesday, May 19, 2020
Consent
SUBJECT:
Title
CONSIDERATION TO ACCEPT AS COMPLETE PROJECT NO. 1549 - CITY FACILITIES LED LIGHTING CONVERSION AND AUTHORIZE THE CITY MANAGER TO SIGN THE ON-BILL FINANCING LOAN APPLICATION (CITY COUNCIL)
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I. SUMMARY
Recently the City replaced approximately 1,000 inefficient, exterior lighting fixtures at several parks and facilities in Carson to more energy efficient light-emitting diode (LED) lights (Exhibit No. 1).
The City secured contracts with two vendors: the majority of the material was purchased directly from Solar Max LED, Inc. and the City directly contracted with an electrical contractor, Elecnor Belco Electric, Inc., to install the fixtures. The cost of the material and installation was $783,768.59.
The City applied and received a one-time incentive payment from Southern California Edison (SCE) in the amount of $161,843.90 for this work. This amount does not need to be repaid.
In addition to the incentive payment, the City intended to utilize the SCE On-Bill Financing (OBF) zero interest loan program to help finance a portion of the project cost. SCE will finance $545,981.94 of the project cost which would need to be repaid over 5.1 years (61 months).
Since the City has already paid the vendor and the contractor for this work, SCE will remit a check to the City in the amount of $545,981.94. Then the City will pay the same amount back to SCE over a 5.1 year period. The first month's payment is $2,826.54 followed by 60 monthly payments of $9,052.59 (Exhibit No. 2).
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. ACCEPT as complete Project No. 1549 (City Facilities LED Lighting Conversion).
2. AUTHORIZE staff to file a Notice of Completion.
3. AUTHORIZE the City Manager to sign the On-Bill Financing Loan Agreement with Southern California Edison.
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III. ALTERNATIVES
1. DO NOT ACCEPT the project as complete. However, Civil Code section 9204 require...
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