HomeMy WebLinkAboutResolutions - No. 2015-126RESOLUTION NO. 2015-126
-A-RESOLUTION-OF THE L -ODI -CITYCOUNCIL-APPROVING
DEBT FINANCING WITH FARMERS AND MERCHANTS BANK
FOR THE LED STREET LIGHT RETROFIT PROJECT IN THE
AMOUNT OF $1.5 MILLION AND AUTHORIZING THE
CITY MANAGER AND DEPUTY CITY MANAGER TO EXECUTE
ALL NECESSARY FINANCING DOCUMENTS
WHEREAS, on March 19, 2014, the City Council approved specifications and
authorized advertisement for bids for the LED Street Light Retrofit Project for all of the
City's non -LED street lights; and
WHEREAS, separate bids for both cobra head and post top decorative street
lights were requested, and the bids included a turn -key procurement, installation, and
financing solution; and
WHEREAS, on June 5, 2014, the City received the following two bids:
Bidder
Cobra Head
Post Top
Financing
Decorative
Rate
Tanko Lighting, of
$1,275,572
$ 788,404
3.55%
San Francisco
Aegis ITS, Inc., of
$1,725,263
$1,837,305
3.55%
Anaheim
WHEREAS, both firms submitted responsive bids for the cobra head street lights,
however, Aegis ITS, Inc., was the only responsive bid for the post top decorative
fixtures; and
WHEREAS, since Tanko Lighting was the lowest responsive bid for the cobra
head retrofit, staff recommends awarding a contract for the cobra head retrofit to Tanko
Lighting; and
WHEREAS, since Tanko Lighting's bid for the post top decorative street lights
was non-responsive, and since staff has determined this work can be done with in-house
labor for a significantly lower cost than the Aegis ITS, Inc., bid, staff is recommending
doing the post top decorative street lights in-house; and
WHEREAS, to pursue a lower cost of financing and to ensure compliance with
the City's Debt Management Policy, an Request for Proposals for debt financing of the
LED Street Light Retrofit Project was issued on June 22, 2015, with a response deadline
of July 7, 2015; and
WHEREAS, nine responses were received; three of which were deemed
non -qualifying; and
WHEREAS, a review of the qualifying proposals in accordance with the City's
Debt Management Policy resulted in the selection and recommendation of a seven-year
debt financing with Farmers and Merchants Bank, at an interest rate of 2.3 percent, and
the proposed term minimizes total interest costs while providing a reasonable period of
time to repay the debt without an adverse impact on Lodi Electric Utility cash reserves;
and
WHEREAS, the estimated annual payment of approximately $235,000 will be
paid from Greenhouse Gas Free Allowance Proceeds, as authorized in the Lodi Electric
-Utility--Greenhouse -Gas-Free-Allowance Proceeds -Spending Plan approved -by- City
Council Resolution No. 2014-110.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby
approves debt financing with Farmers and Merchants Bank, of Lodi, California, for
financing the LED luminaire retrofit of cobra head street lights, in an amount not to
exceed $1.5 million; and
BE IT FURTHER RESOLVED that the City Council hereby authorizes the
City Manager and Deputy City Manager to execute all necessary financing documents.
Dated: August 5, 2015
I hereby certify that Resolution No. 2015-126 was passed and adopted by the
City Council of the City of Lodi in a regular meeting held August 5, 2015, by the following
vote:
AYES: COUNCIL MEMBERS - Chandler, Kuehne, Mounce, and Nakanishi
NOES: COUNCIL MEMBERS - None
ABSENT: COUNCIL MEMBERS - Mayor Johnson
ABSTAIN: COUNCIL MEMBERS - None
NNIFE . FERRAIOLO
City Clerk
2015-126