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HomeMy WebLinkAbout25E - AGMT - ENERGY EFFICENT TECHREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MAY 20, 2014 TITLE AGREEMENTS WITH SIEMENS INDUSTRY, INC., AND SOUTHERN CALIFORNIA EDISON TO PROVIDE ADVANCED ENERGY - EFFICIENT TECHNOLOGY IN CITY HALL AND ROSS ANNEX CITY MANAG RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2 n Reading ❑ Implementing Resolution ❑ Set Public Hearing For_ CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute an agreement with Siemens Industry, Inc., to implement an Energy Management System and provide advanced energy - efficient lighting technology in City Hall and the Ross Annex in an amount not to exceed $620,000, for a 13 -month term expiring on June 30, 2015 subject to non- substantive changes approved by the City Manager and City Attorney, Authorize the City Manager and Clerk of the Council to execute an agreement with Southern California Edison, to provide no -cost funding through On -Bill Financing to implement advanced energy efficiency technology in City Hall and the Ross Annex, subject to non - substantive changes approved by the City Manager and City Attorney. DISCUSSION In 2003, the City contracted with Siemens Industry, Inc., to upgrade a number of City facilities using the energy- efficient technology available at that time. These upgrades included improved HVAC control systems that are still in use today. In 2010, the City used its American Recovery and Reinvestment Act (ARRA) allocation to install additional HVAC upgrades in City buildings and lighting improvements in City buildings and parks. The Santa Ana Energy Leader Partnership (Partnership) with SCE that was established in 2008 gave the Public Works and Finance & Management Services Agencies additional opportunities to increase energy efficiency and reduce utility costs citywide. In addition to bringing valuable energy efficiency programs to Santa Ana residents and businesses, Partnership cities are also eligible for services and financial incentives for implementing energy- efficient municipal projects. As a result, the 2010 ARRA projects qualified for financial incentives which, in turn, allowed the City to complete additional energy- efficient projects at City facilities. 25E -1 Agreements with Siemens Industry, Inc., and SCE to Provide Advanced Energy- Efficient Technology in City Hall and the Ross Annex May 20, 2014 Page 2 Recently, SCE performed a comprehensive audit of City Hall and Ross Annex energy systems — a free service for Partnership cities. The audit analyzed the lighting systems and operating schedule, and calculated the savings that could be achieved by upgrading these systems with innovative technology. Partnership incentives of $69,759.10 will reduce the total project cost to an amount not to exceed $620,000. SCE offers no- interest On -Bill Financing (OBF) to Partnership cities for approved energy reduction projects. OBF funds are repaid using energy bill savings over a specified payback period. SCE has reviewed the project and pre- approved financing with a payback of 7 years. OBF financing has also been used by Public Works for LED streetlight projects. The recommended action will allow the City to contract with Siemens Industry, Inc. to implement an Energy Management System (EMS), and install advanced energy- efficient lighting technology in City Hall and the Ross Annex to maximize energy savings and reduce utility costs. The wireless EMS control system will provide time -based scheduling of interior lighting along with infrared occupancy sensor controls. Lighting upgrades will include replacement ballasts and supersaver T8 fluorescent lamps. The project has been reviewed by Southern California Edison (SCE) and pre - approved for zero - percent - interest financing through the On -Bill Financing (OBF) Program. Implementation of the Energy Savings Lighting Control system will reduce the City's estimated annual energy consumption by 452,565 kWh, and reduce the City's carbon footprint by approximately 204.4 metric tons of CO2, which is the equivalent of removing 37.45 passenger vehicles from the road. At the end of the OBF payback period, the project will also reduce General Fund annual utility expenditures by approximately $58,833. ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act, the recommended actions are exempt from further review. A Notice of Exemption will be filed for this project. FISCAL IMPACT Loan Proceeds received through the SCE OBF Program will be deposited in the Energy Conservation revenue account (No. 16210002 - 57384) and appropriated into the Energy Conservation expenditure account (No. 16210630 - 62300). Loan repayments are available in Account No. 07310100 - 62000. Edwin "William" Galvez, P.E. Interim Executive Director Public Works Agency APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance and Management Services Agency Exhibits: 1. Agreement with Siemens Industry, Inc. 2. Scope of Work 25E -2 Exhibit 1 AGREEMENT FOR PROVISION OF ELECTRICAL CONTRACTING SERVICES THIS AGREEMENT ( "Agreemenn, made and entered into this 20`x' day of May, 2014, by Siemens Industry, Inc., (hereinafter "Contractor"), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (hereinafter "City"), A. The City desires to retain a Contractor having special skill and knowledge in the field of advanced energy efficient lighting technology to implement an energy management system in City Hall and the Ross Annex. B. Contractor represents that it is able and willing to provide such services to the City. C. In undertaking the performance of this Agreement, Contractor represents that it is knowledgeable in its field and that any services performed by Contractor under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional consulting firm in the field. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: SCOPE OF SERVICES Contractor shall to implement an energy management system in City Hall and the Ross Annex and install energy efficient lighting technology pursuant to Contractor's proposal no. JM29FY14 dated April 2, 2014, attached as Exhibit "A" hereto and incorporated by this reference. 2. COMPENSATION The Contractor agrees to accept as total payment for its services a sum not to exceed $620,000.00. Contractor acknowledges that funding for this project is contingent on City obtaining and maintaining financing through the Southern California Edison (SCE) On -Bill Financing (OBF) Program. Contractor agrees that any inability by City to obtain OBF or interruption in the OBF shall be grounds for City to terminate this Agreement and City's obligations hereunder. 3. TERM This Agreement shall commence on the date first written above and terminate on June 30, 2015. The term of the Agreement may be extended by a writing executed by the Director of the Public Works Agency. 4. OWNERSHIP OF REPORTS AND DOCUMENTS The originals of all maps, drawings, plans, graphs, letters, documents, reports and other products and data produced under this Agreement shall be delivered to, and become the property of City. Copies may be made for Contractor's records but shall not be furnished to others without written authorization from City. Such deliverables shall be deemed works made for hire and all rights in copyright therein shall be retained by City. 5. INDEPENDENT CONTRACTOR Contractor shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer - employee relationship or a joint venture relationship; however, the services to be provided by Contractor shall be provided in a manner consistent with all apati- ljysndards and regulations governing such services. Contractor shall pay all salaries and wages, employer's Social Security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. 6. INSURANCE Prior to undertaking performance of work under this Agreement, contractor shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: a. Commercial General Liability Insurance. Contractor shall maintain commercial general liability insurance which shall include, but not be limited to protection against claims arising from bodily and personal injury, including death resulting therefrom and damage to property, resulting from any act or occurrence arising out of Contractor's operations in the performance of this Agreement. The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting therefrom and property damage, in the total amount of $1,000,000 per occurrence. Such insurance shall (a) name the City, its officers, employees, agents, volunteers and representatives as additional insured(s); (b) be primary and not contributory with respect to insurance or self - insurance programs maintained by the City; and (c) contain standard separation of insureds provisions. b. Business automobile liability insurance, or equivalent form, with a combined single limit of not less than One Million Dollars ($1,000,000.00) per occurrence. Such insurance shall include coverage for owned, hired and non -owned automobiles. c. Workers Compensation Insurance. In accordance with the provisions of Section 3300 of the Labor Code, Contractor, if Contractor has any employees, is required to be insured against liability for Workers Compensation or to undertake self - insurance. Prior to commencing the performance of the work under this Agreement, Contractor agrees to obtain and maintain any employer's liability insurance with limits not less than One Million Dollars ($1,000,000.00) per accident. d. If Contractor is or employs a licensed professional such as an architect or engineer: Professional liability (errors and omissions) insurance, with a combined single limit of not less than One Million Dollars ($1,000,000.00) per claim. C. The following requirements apply to the insurance to be provided by Contractor pursuant to this section: (i) Contractor shall maintain all insurance required above in full force and effect for the entire period covered by this Agreement. (ii) Certificates of Insurance shall be furnished to the City upon execution of this Agreement and shall be approved in form by the City Attorney. (iii) Certificates and policies shall state that the policies shall not be cancelled or reduced in coverage or changed in any other material aspect without thirty (30) days prior written notice to the City. f. If Contractor fails or refuses to produce or maintain the insurance required by this section or fails or refuses to famish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City's election, to forthwith terminate this Agreement. Such termination shall not affect Contractor's right to be paid for its time and materials expanded prior to notification of termination. Contractor waives the right to receive compensation and agrees to indemnify the City for any work performed prior to approval of insurance by the City. 7. INDEMNIFICATION Contractor agrees to and shall indemnify and hold harmless the City, its officers, agents, employees, Contractors, special counsel, and representatives from liability: 1) for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including death, 25E -4 and claims for property damage, which may arise from work negligently performed by operations of the Contractor or its subcontractors, agents, employees, or other persons acting on their behalf which relates to the services described in Section 1 of this Agreement: and 2) from any claim that personal injury, damages, just compensation, restitution, judicial or equitable relief is due by reason of the terms of or effects arising from this Agreement. This indemnity and hold harmless agreement applies to all claims for damages, just compensation, restitution, judicial or equitable relief suffered, or alleged to have been suffered, by reason of the events referred to in this section or by reason of the terms of, or effects, arising from this Agreement, but only to the extent of Contractor's negligence or willful misconduct. The Contractor further agrees to indemnify, hold harmless, and pay all cost for the defense of the City, including reasonable fees and costs for special counsel to be selected by the City, regarding any action by a third party challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the terms of, effects arising from this Agreement. City may make all reasonable decisions with respect to its representative in any legal proceeding. 8. CONFIDENTIALITY If Contractor receives from the City information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, Contractor agrees that it shall not use or disclose such information except in the performance of this Agreement, and further agrees to exercise the same degree of care it uses to protect its own information of like importance, but in no event less than reasonable care. "Confidential information" shall include all nonpublic information. Confidential information includes not only written information, but also information transferred orally, visually, electronically, or by other means. Confidential information disclosed to either party by any subsidiary and/or agent of the other party is covered by this Agreement, The foregoing obligations of nonuse and nondisclosure shall not apply to any information that 1) has been disclosed in publicly available sources; 2) is, through no fault of the Contractor, disclosed in a publicly available source; 3) is in rightful possession of the Contractor without an obligation of confidentially; 4) is required to be disclosed by operation of law; or 5) is independently developed by the Contractor without reference to information disclosed by the City. 9. CONFLICT OF INTEREST CLAUSE Contractor covenants that it presently has no interests and shall not have interests, direct or indirect, which would conflict in any manner with performance if services specified under this Agreement. 10. NOTICE Any notice, tender, demand, delivery, or other communication pursuant to this Agreement shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by facsimile or other telegraphic communication in the manner provided in this section, to the following persons: To City: Clerk of the City Council City of Santa Ana P.O. Box 1988 M -30 Santa Ana, CA 92702 -1988 Fax: 714- 647 -6956 With courtesy copies to: Executive Director, Public Works Agency City of Santa Ana P.O. Box 1988 M -21 Santa Ana, CA 92702 Fax: 714- 647 -5069 and: City Attorney 25E-5 City of Santa Ana P.O. Box 1988 M -29 Santa Ana, CA 92702 Fax: 714- 647 -6515 To Contractor: Siemens Industry, Inc. 10775 Business Center Drive Cypress, CA 90630 Fax: 855-8028459 Attn: Julie Metz A party may change its address by giving notice in writing to the other party. Thereafter, any communication shall be addressed and transmitted to the new address. If sent by mail, communication shall be effective or deemed to have been given three (3) days after it has been deposited in the United States mail, duly registered or certified, with postage prepaid, and addressed as set forth above. If sent by telefacsimile, communication shall be effective or deemed to have been given twenty -four (24) hours after the time set forth on the transmission report issued by the transmitting facsimile machine, addressed as set forth above. For purposes of calculating these time frames, weekends, federal, state, County or City holidays shall be excluded. 11. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Contractor, and supersedes any and all other agreements, oral or written, between the parties. In the event of a conflict between the terms of this Agreement and any attachments hereto, the terms of this Agreement shall prevail. This Agreement may not be modified except by written instrument signed by the City and by an authorized representative of Contractor. The parties agree that any terms or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or obligate neither Contractor nor the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which is not embodied herein. 12. ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of Contractor, Contractor may not assign, transfer, delegate, or subcontract any interest herein without prior written consent of the City, and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject to this Agreement performed by the City personnel or by other Contractor retained by City. Notwithstanding the above, Contractor may transfer and assign its rights, or delegate its duties or obligations without the prior written consent of The City of Santa Ana in the event of a merger, integration, reorganization, corporate restructuring or the sale of all or substantially all its assets. In case of such transfer or assignment, Contractor shall take care that the transferee, assignee or successor will comply with the terms and conditions of this Agreement. 13. TERMINATION This Agreement may be terminated by the City upon thirty (30) days written notice of termination. For a termination for convenience, the termination shall be effective upon Contractor's receipt of City's written notice of such termination. For a termination for cause, the termination shall be effective thirty (30) days after Contractor's receipt of City's written notice thereof and Contractor's failure during that period to cure the cause or default which is at issue and the reason for the notice of termination, or reasonably initiate a cure during such time. In such event, Contractor shall be entitled to receive, and the City shall pay Contractor within sixty (60) days compensation for all services performed by Contractor prior to receipt of such notice of termination subject to the following conditions: 25E -6 a. As a condition of such payment, the Executive Director may require Contractor to deliver to the City all work product completed as of such date, and in such case such work product shall be property of the City unless prohibited by law, and Contractor consents to the City's use thereof for such purposes as the City deems appropriate. b. Payment need not be made for work which fails to meet the standard of performance specified in the Recitals of this Agreement. 14. DISCRIMINATION Contractor shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities. Contractor affirms that it is an equal opportunity employer and shall comply with all applicable federal, State and local laws and regulations. 15. JURISDICTION — VENUE This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement. 16. PROFESSIONAL LICENSES Contractor shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of services hereunder and required by the laws and regulations of the United Sates, the State of California, the City of Santa Ana and all other governmental agencies. Contractor shall notify the City immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. 17. RESPONSIBILITY FOR DAMAGES The Contractor shall be responsible for all damages to persons and/real or tangible property that occur as a result of the fault or negligence of said Contractor or its subcontractors, agents, employees, or other persons acting on their behalf in connection with the performance of this Agreement. 18. FAILURE TO PERFORM SATISFACTORILY a. Contractor acknowledges and agrees that subject to the notice provisions in Article I 1 and except in cases of force majeure, if the Contractor fails to perform the work as specified herein, the Director, 1) will pay only for the amount of service received as determined by the Director with an appropriate downward adjustment in contract price, or 2) may have such required work done by City forces or otherwise, and charge the cost thereof to the Contractor. Such adjustments will be the estimated cost for performance by City forces plus City overhead and will include overtime pay as required to complete work. b. If Contractor performs the work in such a manner that the amount of payment withheld due to substandard performance, nonperformance and /or forfeiture for non - completion per schedule totals five percent (5 %) of the total contract price, the City shall notify the Contractor of such noncompliance. If the Contractor continues to perform the work in such a manner that the amount of payment withheld due to substandard performance, nonperformance and/or forfeiture for non -completion per schedule totals ten percent (10 %) of the total contract price, this Agreement may be terminated at the City's option. In the event of termination for unsatisfactory performance, Ui f- y- ontractor shall reimburse the City for damage accrued due to changing contractors 19. SAFETY REQUIREMENTS All work performed under this contract shall be performed in such a manner as to provide required maximum safety to the public and where applicable, comply with all safety standards required by CAL - OSHA. The Director reserves the right to issue restraint or cease and desist orders to the Contractor when unsafe or harmful acts are observed or reported relative to the performance of the work under this contract. 20. HAZARDOUS CONDITIONS The Contractor shall maintain all work sites free of hazards to persons and/or property resulting from its operations. Any hazardous condition noted by the Contractor, which is not a result of its operations, shall be immediately reported to the Public Works Agency. 21. PROTECTION AND RESTORATION OF EXISTING IMPROVEMENTS The Contractor shall be responsible for the protection of all improvements adjacent to the work, such as sprinkler systems, ceiling tiles, walls, plaster, lighting fixtures etc., located on the property. If any improvements are damaged they shall be replaced in kind at the Contractor's expense. 22. WORK BY CITY FORCES BECAUSE OF NONCONFORMANCE TO CONTRACT Should the Contractor fail to correct deficiencies or public nuisances that have been created because of its operation, then such deficiency or public nuisance will be considered to be of an emergency nature and cause the City to snake corrective work. Such work will be done on a force account basis with an additional callout charge of Two Hundred Dollars ($200.00) for each callout. 23. APPRENTICESHIP STANDARDS Where required under law, Contractor shall assume full responsibility for compliance with apprenticeship standards as established by Section 1777.5 of the California State Labor Code. 24. SUBCONTRACTORS The Contractor shall not, without the written consent of the City: a. Substitute any person or firm as subcontractor in place of the subcontractor designated in the original proposal. b. Permit any subcontract to be assigned or transferred or allow it to be performed by anyone other than the original subcontractor listed in the proposal. c. Subcontract any portion of the work after bid is submitted if the cost thereof exceeds one -half (I/2) of one (1) percent of the total proposal and a subcontractor was not designated for the work in the original proposal. 25. MISCELLANEOUS PROVISIONS a. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is wl'M51-8 b. All exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST: CITY OF SANTA ANA MARIA D. HUIZAR David Cavazos Clerk of the Council City Manager APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By: t — oseph raka Assistant City Attorney RECOMMENDED FOR APPROVAL: Siemens Industry, Inc. Edwin "William" Galvez, P.E. Interim Executive Director, Public Works Agency Name Title Tax ID# 25E -9 25E -10 Exhibit 2 Siemens Industry, Inc. 10775 Business Center Drive Cypress, CA 90630 Phone 714 -331 -5860 Fax 855- 802 -8459 Customer: City of Santa Ana Address: 20 Civic Center Plaza Santa Ana, CA 92701 Attn: John Aguilar Proposal: City Hall & Ross Annex Lighting Control Project SIEMENS Proposal No: JM29FY14 Date: 4/2/14 Siemens Industry, Inc. is pleased to present the following proposal for a multi - faceted project for lighting energy savings at two City of Santa Ana buildings; City Hall and Ross Annex. Both sites are scheduled to receive T9 advanced lighting technology that combines wireless controls, dimmable ballasts and supersaver T8's to maximize energy savings. All of this is done with the ability to utilize the investment the City has already made in their Siemens building automation system. The lighting will be monitored through an existing Siemens APOGEE system to allow the building managers a comprehensive view of the building as a whole. At City HaU, nearly all T8 linear fluorescents will be converted to demand response dimmable program start technology. All dimming ballasts will be initially tuned to 80% (20% dimming) to take advantage of the higher lumen output of the new 28 watt XPXL lamps. These new super long life T8 lamps are rated at 84,000 hours of life, and come with a full seven year system warranty. All 3 and 4 lamp fixtures will be de - lamped to 2 lamps and fitted with optical reflectors to increase fixture efficiency. This proposal also plans to de -lamp and /or disconnect 10% of the 2 lamp linear T8 strip fixtures found throughout the building. Finally, 50% of the lobby metal halide fixtures are slated to be disconnected to boost energy savings in a space that is currently over lit. All these retrofits will be supported by a wireless control system. The wireless control system will have complete functionality for integrated time based scheduling, occupancy sensor control, and daylight harvesting. The system is also compatible with automatic and manual demand response if desired in the future. The proposed retrofits for Ross Annex are nearly identical. This building will also install the linear fluorescent demand response program start system described above, with the same initial task tuning to 80 %. The strategies employed in all 3 and 4 lamp fixtures at City Hall will be maintained in the Annex as well. Select lobby and elevator area recessed lighting are scheduled to be de tamped to increase savings. All spaces in excess of 8 light fixtures will receive occupancy sensors. The wireless control system will be fully implemented Scone of Work • Retrofitting all of the existing T8 fluorescent normal ballast factor fixtures with new reduced ballast factor electronic ballasts. • De- lamping the existing 3 -lamp T8 fluorescent fixtures to 2 -lamp T8 fluorescent fixtures. • Decommissioning a number of fluorescent fixtures in areas that are over lit. • Retrofitting the incandescent lamps with LED equivalent lamps. • Installing occupancy sensors in areas to reduce lighting fixture operating hours. • Installing a lighting controls system capable of scheduling the lighting fixtures on/off. • Updating Insight graphics to show lighting status. Please see Exhibit A for line by line lighting scope detail. Siemens Industry, Inc. 10775 Business Center Drive Phone 714.331.5800 Cypress, CA 90830 Fax 855.802.8459 www. slemens.com 25E -11 Page 11 SIEMENS Exclusions • Design of lighting fixture lay -outs, plans, lighting distribution or electrical as Lighting Work is limited to lamp/ballast replacement only • Battery back -up ballast replacement • Lighting retrofits in areas not covered in Exhibit A • Replacement of broken lenses • Replacement of emergency lighting • Exit lighting and signage • Replace existing broken occupancy sensors • Guaranteed savings Clarifications • Lighting Work will be performed during normal business hours (4pm - 6am), city to provide access. • City to provide any Ethernet drops and access to their network • Contract adheres to prevailing wages • Project will have progress billing on a monthly basis Siemens has worked closely with the City to apply for on bill financing for this project. Siemens used the calculated approach to estimate the energy savings. Please see below for the base and proposed energy use: Solution Code Base kWh Proposed kWh kWh Sevin s Base kW Proposed kW kW Reduction Measure Cost Measure Incentive One -Time Solution Code Incentive LT -51003 656,923 438,084 218,839 188.80 124.12 64.68 $127538 0.12 $26261 LT -56453 2,363 360 2,003 0.79 0.13 0.66 $1,167 0.17 $341 LT -50567 381,398 263,815 117,583 143.76 143.76 0.00 $68,527 0.17 $19,989 LT -43077 318,950 204,810 114,140 117.58 88.20 29.38 $422,768 0.12 $13,697 Totals 1,359,634 907,069 1 452,565 1 451 1 356 94.72 S620,000 $60,287 Simple Payback Calculations below: Total Project Price Utility Incentives After Incentives Pre Energy Use Post Energy Use Energy Savings (kWh/yr) Electricity Cost Energy Savings ($/yr) Energy Savings ( %) Siemens Industry, Inc. 10775 Business Center Drive Phone 714.331,5860 Cypress, CA 90630 Fax 855.802.8459 v . siemens.com 25E -12 Includes $100/kW savings incentive kWh Page 12 SIEMENS Siemens Industry, Inc. price to perform the mentioned services: $620,000 Six Hundred and Twenty Thousand DOLLARS If any additional labor or materials are required above and beyond the outlined scope of service, additional charges may apply. You will be informed prior to the commencement of any such services. In order to execute the proposed work, please complete the information provided below. If may be of any assistance, please feel free to contact me at (714) 331 -5860. Your active consideration of Siemens Industry, Inc service is greatly appreciated. The Terms and Conditions of Sale shown on the attached are a part hereof Proposal Accepted: Proposal Submitted: Siemens Industry, Inc. is authorized to proceed with the Siemens Industry, Inc. work as proposed. Signature Print Name Title Date Respectfully submitted, Julie Metz Sieutens Industry, Inc Cell: 714.331.5860 E -mail: iulie.motz(asiemens.com Siemens Industry, Inc. 10775 Business Center Drive Phone 714.331.5860 Cypress, CA 90630 Fax 855.802.8459 www. siemens cum Signature Print Name Julie Metz Title Sales Executive 25E -13 Page 13 Siemens Industry, Inc. 10775 Business Center Drlve Cypress, CA 90830 SIEMENS EXIBIT A Phone 714.331.5880 Page 14 Fax 855.802.8459 www. slemens.com 25E -14