HomeMy WebLinkAbout29B - PAYMENT - UTILITY COST SRVSREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
MARCH 21, 2017
TITLE
PAYMENT AUTHORIZATION TO
PROCURE AMERICA FOR
ELECTRIC UTILITY COST
REDUCTION SERVICES
{STRATEGIC PLAN NO. 4,31))
y�
CIT MANAGER
. f 0 •
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on I3' Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Authorize payment of Procure America Invoice in the amount of $74,839.81 as compensation for
generating electrical utility cost savings for various City departments.
DISCUSSION
On September 16, 2014, the City Council authorized staff to execute Agreement #A- 2014 -227 for
a three -year period with Procure America for utility cost reduction services. The agreement called
for Procure America to perform an operational review of the City's utility portfolio to identify cost
saving opportunities and implement an initiative to specifically reduce the City's natural gas and
electric utility bills. Since the initiative's implementation in June 2015, the City has generated a
total of $292,652.89 in electric bill savings to date for various City facilities (Exhibit 1). Procure
America's defined share of those savings is $160,027.49 which represents Procure America's
total compensation to date (Exhibit 2).
Procure America generates cost savings by identifying electric service accounts eligible for a rate
review and requesting Southern California Edison (SCE) to adjust rates as applicable. The cost
saving is the difference between the higher electric bill under the old rate and the lower electric
bill under the new rate. Based on an initial assessment, Procure America concluded that 120
utility accounts required more in -depth analysis using detailed billing data from utility providers.
The operational review goals were to evaluate how much utility charges would cost under various
available rate schedules, assess whether billing errors had occurred, and identify cost - effective
alternatives to the existing metering and billing configurations. The operational review report
identified 43 electric accounts whose assigned rate schedules were suboptimal configurations
that resulted in billing overcharges. The report also recommended rate schedule changes,
explained the basis for each rate change, and estimated the amount of electric bill savings the
rate changes would generate.
29B -1
Payment Authorization To Procure America For
Electrical Utility Cost Reduction Services
March 21, 2017
Page 2
At this juncture, staff is requesting the City Council to authorize a payment in the amount of
$74,839.81 to Procure America per Invoice #6 -1604 representing Procure America's share of
$112,259.72 in electric bill savings generated for the billing cycle covering August 2015 through
November 2016 (Exhibit 3).
The savings were generated at the following City locations:
All payments to Procure America are funded by the City's electric utility cost savings generated
under the agreement. Since savings are used to compensate Procure America, City staff verifies
reported savings by reviewing relevant SCE electric bills and other supporting documents using
an audit procedure that has been vetted by the City's Finance Department before payments to
Procure America are approved.
29B -2
Am�ritoF
Lf a1 ion
M,�i n 1
Water Wells (Various)
$24,477.94
Dan Young Complex
$20,964.38
Football Field Lights
$5,717.78
Cabrillo Tennis
$4,904.65
Police Facilities
$4,839.53
Adams Park
$3,392.52
City Hall
$2,903.67
Tennis Center
$2,680.93
Santiago Ballfield
$2,388.72
Centennial Park
$1,388.90
Traffic Signals (Various)
$478.12
Bike Trails (Various)
$246.36
Stadium
$125.64
Birch Park
$115.37
Sasscer Park
$113.22
Santiago Park
$102.08
TOTAL
$74,839.81
All payments to Procure America are funded by the City's electric utility cost savings generated
under the agreement. Since savings are used to compensate Procure America, City staff verifies
reported savings by reviewing relevant SCE electric bills and other supporting documents using
an audit procedure that has been vetted by the City's Finance Department before payments to
Procure America are approved.
29B -2
Payment Authorization To Procure America For
Electrical Utility Cost Reduction Services
March 21, 2017
Page 3
STRATEGIC PLAN ALIGNMENT
Approval of this item supports Strategic Plan Goal #4 - City Financial Stability, Objective 3
(Maintain a structurally balanced budget with appropriate reserve levels), and Strategy 3D
(Establish a committee of City staff to explore innovative revenue and cost recovery strategies).
FISCAL IMPACT
Funds are budgeted and available in fiscal year 2016 -17 in the following accounts:
Parks, Recreation and Community Services
Parks, Recreation and Community Services
Public Works Agency
Public Works Agency
Police Department
Park Maintenance
Stadium
Water Prod & Supply
Traffic Signals
Building & Facility
01113250 -62000 $42,078.99
01113210 -62000 $125.64
06017640 -62000 $24,477.94
02917620 -62000 $478.12
01114403 -62000 $4,839.53
Finance and Management Services Agency Building Maintenance 07310100 -62000 $2,903.67
TOTAL $74,839.81
APPROVED AS TO FUNDS AND ACCOUNTS:
Francisco Gutierrez
Executive Director
Finance and Management Services Agency
Exhibits: 1. Procure America Total Electric Bill Savings
2. Procure America Total Compensation
3. Procure America Invoice #6 -1604 Payment Distribution 02/15/17
41W -
r•-
Exhibit 1
City of Santa Ana
Total Electric Bill Savings
As of 15- Feb -2017
By Department /Division /Facility
Finance & Management Services Agency
Facilities & Fleet Management
Page 1 of 1
Department
DivisionlFacility
`
SCE Account
Number,
Street Address
Description
!..
Total Electric Bill
Savings
PRCSA
Stadium
3 -030- 397648
650 N. Flower St. A
Stadium
$6,658.83
Subtotal - Stadium
$6,658.83
Park Maintenance
3- 001 - 327361
800 N. Cabrillo SL
Cabrillo Tennis
$17,206,11
3- 001 - 3274 -32
3000 W. Centennial
Centennial Park
$2,168.74
3- 001 - 3274 -59
821 W. Walnut
Tennis Center
$9,212.46
3- 001 - 3276 -34
424 W. Third St.
Birch Park
$1,143.88
3 -001- 3276 -56
322 E. Central Ave.
Bike Trall
$322.83
3- 001 - 3276 -57
502 W. Santa Ana Blvd.
Sasscer Park
$1,385.37
3 -002- 6697 -71
2615 Valencia SL
Santiago Park
$2,628.52
3 -002- 6706 -52
3000 W. Edinger Ave.
Centennial Park
$410.20
3- 002- 7079 -92
3001 W. Edin er Ave.
Centennial Park
$2,257.95
3 -020- 1315 -13
2302 S. Felt
Adams Park
$11,985.74
3- 033 - 6489 -91
2539 3/4 Main St.
Bike Trail
$567.99
3- 040- 6777 -27
1450 314 N. Parton St.
Football Field Lights
$18,980.19
3 -005- 2303 -50
3000 W. Edinger Ave.
Dan Young Complex
$87,855.60
3 -001- 327340
2650 Santiago St.
Santiago Ballfield
$5,971.80
Subtotal - Park Maintenance
$162,097.38
TOTAL - Parks, Recreation &Communi
Services A enc PRCSA
$168,756.21
PWA
Traffic Signal Maintenance
3-008- 6180 -30
102 N. Mal St.
Traffic Si nal
$94.42
3- 009 - 3183 -04
1302 E. McFadden Ave.
Traffic Signal
$126.30
3 -017- 8587 -90
1703 N. Fairview St.
Traffic Signal
$150.40
3 -027- 6040 -04
706 3/4 Newhope St.
Traffic Signal
$36.73
3- 027 - 9160 -00
815 3/4 W. 17th St.
Traffic Signal
$152.18
3- 027- 9160 -54
1936 3/4 W. 17th St.
Traffic Signal
$143.41
3- 029 - 0660 -14
112 Ed ewood Road
Tragic Signal
$173.02
3029- 1720 -88
218 W. Buffalo Ave.
Traffic Signal
$130.57
3- 0314484 -17
1701 1/2 E, First St.
Traffic Signal
$188,93
3- 033 - 0646 -59
2535 3/4 N. Main St.
Traffic Signal
$145.90
3- 033 - 1427 -96
2901 3/4 N. Bristol St.
Traffic Signal
$185.34
3 -037- 2826 -72
1010 3/4 S. Lyon St.
Traffic Signal
$134.45
3 -037- 3017 -42
1017 E. Santa Ana Blvd,
Traffic Signal
$116.25
3 -037- 3018 -07
1207 Ritchey St.
Traffic Signal
$120.22
Subtotal - Traffic Signal Maintain
nce
$1,898.09
Water Production & Supply
3 -000- 2923 -73
2801 N. Westwood
Water Well 32
$2.28
3- 029 - 798640
1301 N. Mamury St.
Water Well
$28,133.76
3- 029 - 9837 -84
9073 /4 Flower St.
Water Well
$42,616.76
3 -025- 328649
723 W. Walnut St.
Water Well
$12,932.78
Subtotal - Water Production & Supply
$83,685.57
TOTAL - Public Works Agency PWA)
$85,583.66
PD
Buildin & Facilit
3 -010- 7153 -96
60 Civic Center Plaza
Police Facilities
$18,580.30
TOTAL - Police Department PD
$18,58030
FMSA
Building Maintenance
3- 000 - 133540
20 Civic Center Plaza
City Hall
$19,732.72
TOTAL - Finance &Management Services Agency
FMSA
$19,732.72
GRAND TOTAL $292,652.89
i► • -
r•-
- •.
m
x
W
z
O
Q
Z
W
IL
O
J
F-
O
F-
Q
d
Q
V
W
Q
W
w
D
V
w
a
d .r+
d C
K 0
w °
O E:
F, Q
Z H
az
CL
:? Q
R a
N N
o �
O R
r N
Q 0
a o
d
R N
L �
fn C
e (>0
O y
> -0
V
CA O)
Y C
R
0LO
O O
0) r
r �
O
LL n
U
w a
FN- o
Z o U
LU
m r U
>_ O
aa
d c
w R
F o �
Z O iT
O C
O
P (n
Lu
a) a
W 5 N
= U 7
U R c
cn R
O N m
O r W
o (NO CMo
O O
LO n (o
to m (O
CD N r O
7 O O r
0) O r r
d� N �
0 0 0 0
O O O O
O O O O
(R Yi
LO co ul
CO N r O
d CO O r
M f" Lr t0
D7 O r r
V N h
(a yr
c
C0 CO c
0
O N
N N [
O O C
N
0
C:, a
c c E
O °
� C �
E .�
� � S
c
.m
.e u
� a
a
c i
N C
a
d r
CD C
k 0
w °
O E:
h Q
Z
az
IL
�a
L N
6n O)
C_
O >
� R
Q
a
d
R H
L
(� C
a �
O N
(D
.> O
U
m U
w e
R
a�
J
H
O
F
N
O)
C
N
U 0
O
Fy- w
Z C
W = d
U d
a
° u 3
N
n
Z N CA
W 0
0
>
2
W = N
m w Q
0) o
�
N N
w ° �
® Z
= U
coz
29B -7
N N
r W (A
� O O
00 m m
W (D (o
(A r
e» W
w w
I- m to
LO W el'
(li V (b
n 44
co N O
Co I,- et
LO 0) u)
M N LO (NO
� r M
(H r r
apo U� M
N 0) N
�
C C
CO r- ,
M 00 N
(A N
0
N
O
N
N_
C
O
c
d
R
d
C
d
a
d
a
)
N
4!
J
F
O
0)
N
N
O
O
l0
64
O
d'
6
N
(D
N
M
P
M
O
N
W
O
N
N
(A
J
h
O
Z
(
L
r•-
O
C
Q
0
C
0
H
f
E �
a m
in `u
Y b
E m
E LL
u
b
c
M u �
E o.-
.Q
W iiam
r•- •
8
8
VQ
^�
oN
o a°
r$
r
R R
m
8
m
m m
m m
m m
m m
m m
m m
m
m m
m m
m m
m m
m m
m m
m m
m
_
m S
$
s
s.asso
n'rim
e$
s. „$
N
a
0
.'a
'a
„'a
„'a
o
9
A Q
C -
C
�
e'l
a3
A
m
-
-
- -
- -
- -
-
- -
-
8
v
2
m
to $
°
$
r
��°
^ S,
m
°
m
F.
$$
n
e
It
A
A
8
r m
`m
u7 v
v$
''m 8
6�
'a
�
w
i
w ='
��
� 3
g•
z
ui
8 v
3• E
c
3
3•
N
�r°i$v`fisR��$$"d8m
e�
°
A
aA d
d
E
m
�
y
3
3
f
r•- •
29B -10