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Agreement with Procure America, Inc. <br /> May 3, 2022 <br /> Page 2 <br /> Staff recommends approving the agreement (Exhibit 1) with Procure America, Inc. for <br /> compensation and monitoring of the SCE streetlight rate changes and cost savings. <br /> ENVIRONMENTAL IMPACT <br /> There is no environmental impact associated with the action. <br /> FISCAL IMPACT <br /> As stated above, Procure America, Inc. identified 3,502 streetlights that qualify for a <br /> discount through a program with SCE based on the age of the equipment, usage profile <br /> and specific tariff rate assignment on each streetlight that will save the City of Santa Ana <br /> approximately $187,000 per year. As part of the agreement, the consultant shall monitor <br /> and report the actual realized cost reductions achieved on behalf of the City. Procure <br /> America, Inc.'s compensation for their services related to the utility tariff rate optimization <br /> study, program implementation, monitoring and financing reporting is 30% of the actual <br /> realized savings achieved. Their compensation will be valid for a period of 60 continuous <br /> months (five years). Once the initial five year period has lapsed, the City will have no <br /> further obligation to the consultant and will then benefit from the full discount savings <br /> moving forward. <br /> Even with the addition of the compensation for Procure America, Inc.'s services, the <br /> reduced utility costs will provide the City savings on a monthly basis. Based on the current <br /> rates, the consultant projects SCE charges will be reduced by $15,618.92 per month. <br /> When factoring in the addition of the Procure America, Inc. compensation, the City could <br /> expect to realize $10,933.24 in monthly cost savings as shown below: <br /> Estimated Monthly Energy Cost Savings $15,618.92 <br /> Estimated Compensation $4,685.68 <br /> Net Monthly Savings (initial 5 years) $10,933.24 <br /> At the conclusion of the compensation period (5 years), it is estimated that the annual <br /> cost savings will increase to $15,618.92 per month, assuming tariff rate increases are <br /> consistent with historic averages. <br /> Cost savings will be credited to Public Works Street Light Maintenance Account No. <br /> 01117630-62000. <br /> Funds are available for expenditure in Fiscal Year 2021-22 and will be budgeted in <br /> subsequent fiscal years as shown below in the estimated spending plan: <br /> City Council 24 — 2 5/3/2022 <br />