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CC - Item 6A - Presentation of Final Investment Grade Audit Report by Schneider Electric Buildings Americas, Inc.General Managed Plan for Reliable Rosemead Facilities & Operations through Energy Efficiency September 22, 2026 making an at Agenda 01 Critical Infrastructure Needs Prioritized Recommended Scope by Public Works Closing an 18-Year Facilities Gap Through Planned Modernization and Stabilizing near term facility risk 02 03 Developed Scopes of Work 04 03 Discussion Property of Schneider Electric | 20 Year Backlog Recurring equipment failures, emergency repairs, and operational disruptions at City Hall and resident- serving facilities required a more strategic approach. LA County Guidance February 2025 – present Via SoCal Regional Energy Network program; recommended bundling via G.C. 4217, reviewed ESCO proposals and performed economic analysis Council Direction May 2025 Council selected Schneider Electric and authorized the IGA to design a portfolio solution with a conceptual cost of $3.94M that also included a Streetlighting Master Plan. Audit & Collaborative Design Phase July 2025 to March 2026 Public Works and Schneider explored multiple scope packages to address facility needs across 5 primary sites; storage needs, vibration issues and safety. 30% & 60% designs refined with staff around most critical operational needs. February/March 2026 90% Design Completion with Fixed/Firm Pricing Alignment with New Civic Center Final scope prioritizes city efficiency and operational reliability. This program provides a reliable bridge to the future Civic Center. Building a Reliable Bridge to Rosemead's Future July 2025 – Entered into Design Phase September 2026 – Council Briefing July 2026 Signed IGA Report, extension of Design Phase August 2026 Development of Final Public Works Priority Project Extended Fixed/Firm Pricing 90 days Council-Ready Program September 2026 Critical mechanical, electrical, controls, and lighting improvements at a $4.45M fixed/firm price, or $4.34M after the EECBG funding. The Deferred Maintenance Rosemead Is Carrying Right Now R-22 is EPA non-compliant and the City Hall plant dates back to 1998. Repair parts carry long lead times and might be obsolete, so a single failure means potential downtime without cooling in an occupied public building. Construction costs rose an average of 6.8% per year over the last five years while reserves grow at roughly 4%. Deferral does not avoid this cost. It raises it every year we wait. Property of Schneider Electric |Page 4 4 Units Failed in the Last 60 Days 1970s Zinsco Panels Still Energized Aging and failing mechanical units at the end of useful life. 16 of 17 rooftop units and split systems at Garvey Community Center are past 20 years of service. These are not projected failures. Banned Refrigerant, Obsolete Parts Waiting Costs More Than Acting Existing electrical switchboards and panels at City Hall and RCRC do not meet electrical code. Breakers are prone to fail to trip, allowing dangerous electrical currents to continue flowing. Removing safety hazard is high priority. Property of Schneider Electric |Page 5 Critical Infrastructure at End of Life Community Space Resilience Guarantees optimal temperature, indoor air quality and improved lighting across public parks, community centers, and administrative offices City Wide LED Lighting Standard Almost 1,200 LED Lighting Solutions will be installed bringing higher quality, improved safety and energy efficiency throughout your project sites Ensuring Safe and Reliable Electrical systems Removes existing safety hazards, assures electrical compliance, and establishes the foundational hardware necessary to support smart building energy management systems. Stabilizes Municipal Operations Replaces aging HVAC equipment, obsolete components, and pneumatic controls— safeguarding facilities against service disruptions, emergency capital costs and closure risks The Shifting of Risk Schneider Electric operates as a single point of accountability (Design-Build Entity). Rosemead is insulated from internal change orders due to design gaps or scheduling delays. Implementing a Deferred Maintenance Plan with a Capital Recovery Program Allows the city to transition from "reactive crisis management" to "proactive fiscal stewardship" Create Revenue from Existing Expenditures Property of Schneider Electric |Page 6 Business Funding Model •HVAC Replacements •LED Lighting technology upgrades •Electrical panel replacements •Integrated building automation •Mechanical Automation/Pool Controls Reduced expenditures are reallocated towards comprehensive improvements: Operations Utility Bill Operations Utility Bill Before After Reduced Expenditures Guaranteed Savings Create a revenue stream: Reallocate 10 - 20% of reduced expenditures back into your priorities to fund needed facility improvements Automate savings through energy efficiency upgrades and technology One company to design, build and guarantee long- term performance Track Success: Schneider Electric guarantees annual savings for up to 20 years, providing regular progress reports, annual reconciliation and energy dashboards •PR/Community Engagement Campaign •Deferred Maintenance Plan •Removing Facility Risk •Utility rate negotiation Property of Schneider Electric |Page 7 LED Lighting Retrofit Current Condition & Challenges Mixture of different inefficient lighting solutions •Compact fluorescent lamps •High Pressure Sodium Fixtures •Higher wattage LED Benefits •LED solutions provide 15-year lifecycle •Reduces maintenance time •Lessens energy spend •Improves lighting quality •Implements a lighting standardization •Cooling load reduction •Enhances safety & security •Reduces light pollution Garvey Community Center Priority Level: High/Significant Rosemead Community Recreation Center Future Impact across City Facilities Property of Schneider Electric |Page 8 Garvey Community Center Mechanical Current Condition & Challenges •Non-Standard Rooftop Units that are failing and well past their useful life •16 of 17 units are older than 20 years •Replacement of 4 RTU’s and 13 Split Systems •R-22 Refrigerant non-compliant with EPA •4 units have failed in the last 60 days Benefits •Removes maintenance burden of water- cooled system (1998); repair parts difficult to source •Eliminates non-compliant refrigerant (R- 22) and standardizes refrigerant •Reduces noise level •Contributing EECBG Grant - $113,300 Priority Level: Urgent/Critical Rosemead Recreation Ctr. Roof Top Unit Garvey Community Ctr. Split System Property of Schneider Electric |Page 9 City Hall Mechanical Plant Current Condition & Challenges •Mechanical equipment substantially past its’ useful life •Parts for repair are obsolete •Banned refrigerant non-compliant with EPA •Consistent challenges to reach desired temperature throughout building during hot and cold weather: zero air balancing Benefits •Removes maintenance burden of water- cooled system (1998); repair parts difficult to source •Eliminates non-compliant refrigerant •Adds zone control to City Hall from new air-cooled system for improved comfort •Reduces noise level •Provides 15’ x 30’ storage space in City Hall basement by removing pneumatic controls, large chiller and mechanical equipment Priority Level: Urgent/Critical City Hall Cooling Tower Garvey Community Ctr. City Hall Mechanical Room Property of Schneider Electric |Page 10 City Hall - Building Controls Current Condition & Challenges Benefits •Centralized front-end allows remote access to AHU, boiler for proactive scheduling, temperature adjustments and troubleshooting •Reduces maintenance time & miles driven •Instantly Improves occupant comfort •Real-time visibility temperature/schedule control •Extends equipment life Priority Level: High/Significant Complex systems remotely managed effectively Full Mechanical Control Property of Schneider Electric |Page 11 Electrical Panel Replacement at City Hall and RCRC Current Condition & Challenges •They do not meet current National Electrical Code safety standards. •Breakers fail to trip •False "off" positions •Most insurance carriers will deny coverage or refuse to pay out claims •Highest risk of future building inspections Benefits Replaces unsafe Zinsco panels Eliminates high arc-fault/fire risk Removes breaker bar melting risk Reduces possibility of panels failing in an energized state that causes power loss unpredictability Eliminates added emergency repair costs Priority Level: Immediate/Safety Hazard Zinsco panels from 1970s Scopes of Work City Hall •Replace (4) 400amp Panelboards and Switchboards including new breakers •Replace (1) 225amp Panelboard including new breakers RCRC •Replace (1) 350amp Panelboard including new breakers •Replace (1) 250amp Panelboard including new breakers Project Financial Details Annual Utility Savings $52,372 Annual O&M Savings $27,262 Fixed/Firm Price Net Impact* $4,448,846 $4,335,546 Total Lifecycle Savings Capital Cost Avoidance Savings $2,000 Annual Storage Savings $133,465 $5,151,576 City Hall Garvey CC Garvey Park Rosemead Park Rosemead CRC Internal / External / Park LED Lighting (1,165 Fixtures)X X X X X City Hall – Full Mechanical Replacement Garvey CC – 17 Total Units X X (7) Electrical Panel and Switchboard Replacements X X Building Automation Controls X Pool Control Variable Frequency Drive (VFD) Matrix Legend: Mission Critical Savings-Driven Guarantee + Client Services 5 years included *Project Amount after applying approved EECBG Block Grant - $113,300 Optional annual renewal at Year 6 Annual Savings Potential $79,634 Includes energy and O&M savings Estimated Storage Savings $2,000 Based on evaluation of existing contracts Final Project Total $4,448,846 In facility modernizations with 5-year guarantee EECBG Grant $113,300 Grant funds for mechanical replacements Lifecycle Savings $5,151,576 Savings impact over life of equipment Project Cashflow 4,448,846$ Amount Esc. Rate 113,300$ Utility Savings 52,372$ 5.0% O&M Savings 27,262$ 3.0% Storage Savings 2,000$ Telecom Savings -$ Capital Cost Avoidance 133,465$ Year Project Cost Utility Savings O&M Savings Storage Savings CCA Total Annual Savings Cumulative Cash Flow 0 $0 $0 $0 $0 $0 $0 $0 1 -$4,335,546 $52,372 $27,262 $2,000 $133,465 $215,099 -$4,120,447 2 $0 $54,991 $28,080 $2,000 $133,465 $218,536 -$3,901,911 3 $0 $57,740 $28,922 $2,000 $133,465 $222,128 -$3,679,783 4 $0 $60,627 $29,790 $2,000 $133,465 $225,882 -$3,453,901 5 $0 $63,658 $30,684 $2,000 $133,465 $229,807 -$3,224,093 6 $0 $66,841 $31,604 $2,000 $133,465 $233,911 -$2,990,183 7 $0 $70,183 $32,552 $2,000 $133,465 $238,201 -$2,751,982 8 $0 $73,693 $33,529 $2,000 $133,465 $242,687 -$2,509,295 9 $0 $77,377 $34,535 $2,000 $133,465 $247,377 -$2,261,917 10 $0 $81,246 $35,571 $133,465 $250,282 -$2,011,635 11 $0 $85,308 $36,638 $133,465 $255,412 -$1,756,224 12 $0 $89,574 $37,737 $133,465 $260,776 -$1,495,447 13 $0 $94,053 $38,869 $133,465 $266,387 -$1,229,060 14 $0 $98,755 $40,035 $133,465 $272,256 -$956,805 15 $0 $103,693 $41,236 $133,465 $278,394 -$678,410 16 $0 $108,878 $42,473 $133,465 $284,816 -$393,594 17 $0 $114,321 $43,748 $133,465 $291,534 -$102,060 18 $0 $120,037 $45,060 $133,465 $298,563 $196,503 19 $0 $126,039 $46,412 $133,465 $305,916 $502,419 20 $0 $132,341 $47,804 $133,465 $313,611 $816,030 -$4,335,546 $1,731,729 $732,540 $18,000 $2,669,308 $5,151,576 $816,030 Project Savings Pro Forma - City of Rosemead Estimated Project Value Projected Savings Total Project Cost EECGB Grant CITY OF ROSEMEAD | COUNCIL DECISION Guide Same Critical Scope. Two Cost Paths. Integrated Portfolio Delivery Incremental Replacement over 5 CIP Years $0 $1M $2M $3M $4M $5M $6M $7M NOW YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 CU M U L A T I V E C O S T $4.45M • 100% scope $0.95M 20% scope $1.97M 40% scope $3.05M 60% scope $4.21M 80% scope $5.16M 100% scope Coordinated Program $4.45M PHASE 5 YEARS ~$5.16M with 5% cost of construction annual escalation One integrated program addresses known critical facility risks sooner, avoids approximately $714K in projected cost escalation, and reduces reliance on reactive repairs. NOTE: conservative estimation; does not include annual savings (utility, O&M, storage) realized via Integrated Portfolio Delivery Property of Schneider Electric | Single Point of Accountability Under a single contract, Schneider Electric owns complete responsibility at all project sites with multiple scope measures for both design, construction and long-term performance. Fixed Firm Price, Zero Change OrdersAs your Design-Build partner, we deliver the entire portfolio of projects in a compressed schedule with a lump sum price. Shifting of Risk to Schneider Electric Moves the liability for design, construction, on-time scheduling and cost performance from Rosemead to the SE Team. Taking on unique site conditions with guaranteed outcomes. Organizational Effectiveness Training/Support of staff/employees, strengthening community engagement and delivering exceptional, uninterrupted public services. The Value of Turnkey Design-Build from Schneider Electric Installation at multiple sites, with multiple measures, enabling modernization and efficiency while ensuring proactive messaging and effective public communication. Property of Schneider Electric | A Customized Schedule Schneider Electric’s Design Build Turn-Key Solution 5 Year Guaranteed Performance of Savings and Service includes warranty management, client services, training/support, 24 hr. hotline Construction Kickoff – with expedited procurement of materials and onsite project/construction management, we will mobilize at your pace to ensure continual services without disruptions. City of Rosemead Schneider Electric Next Steps / Construction Phase Oct. 26- Jan 2027 Signed Contract / Permitting Early February '27 Construction Kickoff Meeting February '27 LED Lighting Retrofit March ’27 Electrical Panel Replacement April ’27 Mechanical Installation June ‘27 Building Automation / Controls Training/Support/Ongoing Services Performance Guarantee Early February 2027 February 2027 – Dec 2027 Jan 2028 thru end Dec 2033 Initiative Logo, Project Webpage, Press Release, Before Photos Custom Signage Ribbon Cutting + External Media Project Video, After Photos Proposed Marketing Plan: Rosemead Modernization Initiative Schneider Electric Partnership Benefits Program advances every goal including modern infrastructure, improved services, safe facilities, disciplined maintenance, and fixed/predictable long- term spending. Our partnership converts 18 years of deferred maintenance into planned, predictable investment: reducing emergency spending, budget volatility, and operational disruptions. Property of Schneider Electric |Page 18 Includes website development, signage, press releases, project videos, community engagement, social media, etc. Sharing your positive news story with a multitude of effective mediums. Manages Rosemead Staff Capacity Customized Marketing Campaign Utilizes Schneider Electric’s Project Management Team and Client Services Team as an extension of the Rosemead M&O Team to reduce the burden and put attention back on City priorities. Meeting 2030 Strategic Vision Deferred to Investment Genral