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expertise, International Brotherhood Electrical Workers (IBEW), Journeymen Electricians/Technicians
and International Municipal Signal Association (IMSA) certified Technicians. One key differentiator for
Siemens is that with the exception of the audit performed by CDM Smith, all work on the this project
will be completed by Siemens employees; we do not require subcontractors to perform this work. This
enables us to maintain full control of the project schedule and the staff/equipment resources required
to keep things on track.

In addition, Siemens’ employees and equipment are dedicated for streetlight and traffic signal
maintenance, To best facilitate any work, we issue insulated “bucket” trucks to all of our linemen and
electricians. Each truck is equipped with all the necessary tools, equipment, and, where feasible,
inventory to perform 100% of the assigned tasks. All vehicles are appropriately marked with the
company logo, Department of Transportation (D.O.T.) markings, and have a company phone, and laptop
computer.

Our vehicles include 2010 through 2014 insulated Bucket Trucks with Altec Articulating Booms, full size
cranes for pole replacement and transportation of poles, service vehicles, mini excavators, and dump
trucks to respond to all traffic signal and street lighting situations including excavation and new
construction. We also have numerous agreements with equipment companies to obtain any additional
equipment quickly,

Key Team Members

For this project, Siemens has identified several key personnel who will oversee this project, and who will
work closely with the City to make it a success. Our branch office, located in Billerica, MA employs
approximately 25 full-time field service electricians, and 10 office-based support staff, including project
managers, energy engineers, service coordinators, accountants, and sales: all specializing in street
lighting and traffic signal maintenance, LED retrofits, and new construction. Resumes for the key
personnel listed can be found in Appendix A — Resumes.

The Siemens Team for this project will include:

e Marcus Welz - Chief Executive Officer

e Clint Schuckel - Account Manager

e David Spence - Project Manager

e Richard O’Hearn Jr, - Energy Engineer

e ric Pescatore - GIS Specialist (CDM Smith)
e Dan Reed - Field Supervisor

The Chief Executive Officer (CEO) is directly responsible for the profit/loss operations of the Mobility ITS
business in the United States, all of its employees and facilities/equipment, and retains authority to bind
Siemens to a contract of this value. The CEO receives regular reports on the status of large projects
from our New England team so that any customer satisfaction, schedule, or resource issues are
immediately addressed at our highest level of management.

The Account Manager is the customer’s primary contact during the project development phase, prior to
the LED installations, and serves to ensure the customer’s expectations are met. The Account Manager
will research the best financing options available (if applicable), address legal issues including all
contract-related documents and ensure that all documentation is in order.

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Building B, Ste 101 512-837-8000
Austin, TX 78733 Page 12

The Project Manager manages all aspects of the construction phase of the project. This will include the
supervision of Siemens field personnel and any partners participating in the project {e.g., audit
subcontractor, materials supplier, recycling vendor). They will be responsible for the overall
coordination of the construction phase including staffing, material and labor procurement, scheduling
and execution of the project. The goal of our Project Managers is to complete the project on schedule
with minimal disruption to the client’s facilities while ensuring client expectations are met.

The Energy Engineer is responsible for overseeing the audit data collection, preparing the audit report,
working with the city to design and pilot the preferred lighting solution(s) if necessary, and addresses
technical issues that may arise during the project. The Energy Engineer will generate and confirm all
PSNH billing adjustments, conduct nighttime observations with the customer to generate a final punch
list at substantial completion.

The GIS Specialist creates the GIS application that serves the audit and installation phase of the project
and oversees the final deliverable that is integrated into the City’s GIS database. The GIS Specialist
supervises the hardware and software components of the data collection effort and collaborates with
Siemens and the City to ensure that the data fields collected are consistent with the needs and
expectations of all parties. A web-based dashboard is created to provide the customer with a real-time
snapshot of the project in terms of fixtures audited or installed.

The Field Supervisor both installs fixtures and is responsible for the day-to-day coordination of direct
supervision of the installation crews and assists the project manager by serving as the City’s “on the
street” point of contact.

An organizational chart is provided below, and brief resumes for our staff can be found in Appendix 1 —
Resumes.

} ClintSehuckel | David Spence
| Account Manager Project Manager

1

ee

ese,

Richard O’Hearn |
Energy Engineer

Dan Reed |

Field Supervisor

a } | ee | |
Field Technician Field Technician Field Technician | | Field Technician
| |

|

9225 Bee Cave Rd www. siemens.usa,com
Building B, Ste 101 512-837-8000
Austin, TX 78733 Page 13

Implementation Process

In this section, Siemens describes our project approach to turnkey LED streetlight conversions, but first
we will specifically address the RFP question regarding “..the best process to implement the conversion
to maximize utility savings immediately.” We offer the following suggestions to the City, using our
Manchester/Eversource experience as a common reference point:

e Include Eversource staff at regular project meetings between Siemens and City staff to ensure
they are informed and participating in the process from audit to final punchlist phases;

e Require the field audit be conducted in 30 days or less. Siemens and CDM Smith have
completed audits at this rate (e.g., Manchester) so we are comfortable with such a specification;

e {Install and review the ten pilot installations during the field audit with the goal to have a City
decision on the 3000K vs. 4000K specification by the conclusion of the field audit. This will
enable fixtures to be ordered as soon as possible following the audit/reconciliation work;

e Specify a 1-2 week turnaround on the audit reconciliation with Eversource billing inventory;

e Require frequent submissions to Eversource during fixture installations. \|n Manchester, we
were required to submit billing adjustments weekly and we found that Eversource had difficulty
keeping up. We will submit adjustments at whatever interval Eversource and the City agree is
acceptable. Siemens carefully documented all submissions, providing the City with the ability to
pursue retroactive credits as appropriate; and
Prioritize the fixtures at the 95% confidence level. \f there are areas that require additional
photometric analysis or unique decorative fixtures, the City may consider authorizing “95% of
the project fixture order and return to the areas that require more study via a contract change
order. This avoids delaying 95% of the City’s potential savings for a small number of lights. The
utility incentive and/or project contingency funds are often used as a potential funding source
for these types of change orders.

Project Approach: LED Conversion

Each of the major project stages is summarized below in chronological order.

Audit

Siemens and CDM Smith will conduct a citywide field audit to reconcile the Eversource billing inventory
with the field inventory and work with the City to confirm the number and type of fixtures to be
included (which could include additional metered or unmetered outdoor lighting). We have proposed
the use of a GIS data collection method utilizing the services of CDM Smith to expedite the audit phase
and provide a web and map-based tool for the execution of the installation of the LED lighting and
future maintenance. The fundamental purpose of the audit is to provide the City with a detailed
financial analysis of the costs and benefits associated with the proposed LED retrofit project to justify
expending funds for this initiative versus other alternative energy efficiency projects. The audit
approach described in this section is based on our extensive experience with LED streetlight projects and
our history of street light maintenance and installation as an electrical contractor. A completed audit for
street lighting helps to provide the following:

e Baseline energy consumption data
e Accurate existing fixture counts for associated utility billing adjustments
e GlIS-based light location data

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SIEMENS

e Accurate existing fixture counts by road and area type to be used as an input for LED fixture
selection/lighting design, material cost estimates, fixture procurement, and_ installation
purposes

e Aninventory database for asset management and future maintenance needs

A sample screen shot of what the GIS audit web map might look like for Nashua is shown below:

gf

The following is a step-by-step overview of the audit process:

1. Our audit team/Energy Engineer will create an inventory of all “dusk to dawn” outdoor lighting
using information provided by staff members who process monthly bills and energy provider
invoices and those who are responsible for the maintenance of said facilities. We will also
request an inventory file from Eversource or the City in Excel format, which will form the basis
for the field audit of the majority of unmetered street lights. The remaining lights not on the
inventory, as identified by City staff, may include decorative lighting, flood lights, spot lights, or
wall pack lighting. Some lights will be metered and others will be unmetered and billed, on just
a few or many separate accounts. Once existing inventory is compiled, a field verification of
each street light is completed by the audit team. This survey will include several teams of
individuals in order to complete the system-wide data collection effort in approximately 30
days. A subcontractor, CDM Smith, is proposed to complete the field audit.

2. A complete list of all feasible Energy Conservation Measures (ECM) is developed by the Energy
Engineer from the survey results.

3. Utility and operational savings are calculated by the Energy Engineer for each measure.

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Austin, TX 78733 Page 15

4. Implementation and operational costs associated with each measure are then determined.
Estimated construction costs are compiled by the Energy Engineer and Operations Manager.

5. Feasibility of ECM’s (cost vs. savings) is then examined by the Energy Engineer. A draft list of
feasible ECM’s are developed based on the financials.

6. A joint meeting between Siemens and City staff will then be scheduled for mutual development
of the final list of ECM’s for proposed implementation. All stakeholders will be invited to this
meeting(s). This step may include the installation of test fixtures.

7. Based on the results of the meeting, an audit report is submitted to the City for approval to
reflect the mutually agreed upon final list of ECM’s to be funded.

Final audit reports generally include the following:
1. Description of Existing System (Baseline);
Description of Proposed System;
Calculations of Energy Savings, Cost, and Resulting Simple Payback;
Description of Scope of Work;
Commissioning Plan; and
Measurement and Verification Plan (applicable only to performance contracts).

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The Siemens-CDM Smith

team believes that GIS : : Foe. 8
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element of the audit phase \e

in order to 1) reconcile the *e

utility billing inventory : Pot

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create a tool for tracking
the audit, 3) to expedite :

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displaying fixtures 1 T ee
converted/not converted,

and 4) to provide the :
customer with a future —_
asset management tool at the end of the project. We have used GIS mapping in all of our most recent
projects and the City of Manchester, for example, would report that GIS mapping has been a critical
component to the successful execution of the project. As a result of these experiences and positive
customer feedback, we have proposed a GIS audit for this project.

dl

The Siemens-CDM Smith team will staff our audit teams accordingly to accurately complete the work in
the timeframe that the City requires. To provide a range from comparable large LED retrofit projects we
have completed, the City of New Bedford GIS audit (9,000 fixtures) was audited in less than one month
and the Cape Light Compact GIS audit (16,000+ fixtures) took approximately four months. Each project
utilized a different number of audit teams to meet our customer-specified deadline.

9225 Bee Cave Rd www. siemens.usa.com

Building B, Ste 101 512-837-8000
Austin, TX 78733 Page 16

SIEMENS

Fixture Selection/Energy Savings Analysis

Fixture Selection

Siemens is familiar with both the quantitative and the
qualitative benefits of converting from an HID street
lighting system to an LED street lighting system. The
improvements to the quality of light are founded on the
fact that the system operates in a Mesopic
environment’, and that each lamp type (HPS, MH, MV,
and LED) provides light that is perceived differently by
the human eye. Under the conditions present in a
roadway lighting system, the LED solution can have an
initial lumen output from the fixture that is less than that
of its HID counterpart, and still produce the same
perceived environment depending on the
Scotopic/Photopic (S/P) ratio, which is a correction factor determined by the spectrum of the light
source, as recognized by the industry.

The Siemens’ fixture selection approach is based on the perceived lumen methods, created by the
Lawrence Berkley National Laboratory in July 1995*. This approach has allowed Siemens to maximize
energy savings for customers without sacrificing the quality of the lit environment. While energy
savings is a driving factor for a system conversion, Siemens believes that a properly lit environment is as
equally important as the energy & cost savings LED brings to the customer.

Siemens prefers to use new fixtures over retrofit kits when converting from HID to LED. However, in
some instances using an Original Equipment Manufacturer (OEM) retrofit kit that has been designed for
the existing fixture does make sense. Typically this is done only in the decorative styles, which usually
account for 5% or less of the entire project scope.

All fixtures selected by Siemens are DLC listed, which is the base requirement set forth by Eversource in
order for the customer to get rebates for installing more efficient fixtures. Past projects in New
Hampshire have shown that Siemens is able to install fixtures that get the customer the maximum
amount of energy efficiency rebates.

Siemens’ design philosophy is to assist our customers in determining the appropriate balance between
lighting levels and energy savings. This is a collaborative process which utilizes relevant design
guidelines such as the Illuminating Engineering Society of North America (IESNA) RP-8 guidelines. RP-8
recommends wattages based on route classification and level of pedestrian conflict. Some roads may
transition from commercial to residential and the lighting levels adjust accordingly. Additionally, the
community’s goals and site-specific variations would be taken into account, such as school areas,
crosswalks, or public safety/crime issues. Siemens will provide various options and the financial
considerations associated with each to aid in the decision making process. The end product should be
relatively uniform lighting levels based on street classification and pedestrian activity.

* Luminance Levels ranging from 0.005 cd/m? —5 cd/m*
2 Reengineering of Lighting Photometry, $.M. Berman, LBNL-42327-L-213

9225 Bee Cave Rd www. siemens.usa.com
Building B, Ste 101 $12-837-8000
Austin, TX 78733 Page 17

We specialize in maintenance, so we gravitate toward lighting fixtures that are well-designed and
provide the longest proven maintenance-free service. We have extensive experience in assisting in the
selection of appropriate fixtures, performing test installations, light level studies, and helping our
customers promote the financial and environmental benefits of the initiative. Our objective is to
provide both vendor neutral and objective information to the City, enabling informed decisions at each
project phase.

Energy Savings Analysis

The baseline for the project will be calculated using the current energy consumption based upon the
existing Eversource inventory and utility bills, adjusted as necessary based on the field audit. The
change in energy consumption as a result of the streetlight conversion is the difference between the
baseline and the “light-by-light” recommended LED replacement fixture. The energy savings will be
calculated using the approved LM79 test results for the proposed fixtures to identify the new wattages
and energy consumption of each proposed unit.

The baseline calculation for unmetered streetlights is simple and straightforward: fixture watts x
number of fixtures at that wattage x assumed Eversource operating hours = fixture class kilowatt hours.
This calculation is repeated for all fixture classes (wattages) and summed to equal the total energy use.
The same method is used to compute energy use associated with new LED fixtures and the energy
savings is the difference between the two. Energy savings in Year 1 is based on the customer’s existing
distribution and supply rates as confirmed by recent electric bills. Energy savings over a longer period
generally assumes an annual escalation rate.

Operational savings is a customer-driven estimate as only the customer has the most accurate
information regarding existing labor and materials costs if the streetlights were municipal-owned prior
to the conversion. Also, the customer must determine if labor + benefit/pension costs should be
assumed due to staff reduction or assumed as zero if current staff levels are to be maintained.

Based on our preliminary energy analysis from the vendor quotes received to date, Siemens
anticipates that the City’s energy saving, as measured in kilowatt-hours, will range from 60-65%. This
represents an approximate 60-65% reduction in operating costs on both potions of the City’s monthly
charge: 1) charges are kWh-based and 2) reduction in fixed charges.

Procurement
For the purposes of this response to quantify the cost/benefit of various manufacturer options,
Siemens explored the following options:

LED streetlight fixture pricing was sourced from the following 3 manufacturers:

* Leotek
* Philips
* Acuity

Wireless controls pricing was sourced from the following 3 manufacturers:

* Cimcon
* Philips CityTouch
* Acuity/ROAM

9225 Bee Cave Rd www.siemens.usa.com
Building B, Ste 101 §12-837-8000
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After reviewing the quotes, the decision was made to present Leotek/Cimcon pairing in our base
proposal since the combination of initial capital cost and 10-year operating costs were the lowest. For
reference and further consideration, Acuity pricing was approximately 15% higher across the board, and
Philips was approximately 46% higher. However, we also understand that the City may have other
priorities and factors which may lead to selection of a different controls manufacturer.

To summarize: Siemens is a vendor neutral ESCO that self-performs the installation of LED streetlights;
we are not a manufacturer of fixtures or controls and have no exclusive partnerships with particular
vendors. For the purposes of the selection process and comparison of proposals, we are prepared to
install the Leotek/Cimcon praducts priced in our base proposal. Our base cost proposal/no controls
includes the Leotek fixture and Siemens’ cost proposal with controls includes the Leotek fixture with
Cimcon controls. Should the City request, Siemens would be willing to supply alternate cost proposals
from other manufacturers.

Following approval of the City of a preferred manufacturer, Siemens will procure the selected fixtures.
During the lead time prior to fixture arrival, we will work with the City to select staging areas for
temporary product storage containers and receptacles for recycling of old fixtures, cardboard, etc. At
this point, an initial project schedule will be submitted to the City and its representative members.
Thereafter we will supply an updated schedule on a weekly basis as fixture ship dates and installation
progress requires. :

Wireless Controls Summary
Additional operational cost savings for LED streetlights can be realized through wireless controls in the
following ways:

a) Reducing billable energy usage by changing from assumed use to measured use. Wireless nodes
which are “meter grade” node could report consumption less than existing use in the
Eversource tariff for assumed annual operating hours. However, assumed operating hours
could be equal or less than actual, which would eliminate potential savings.

b) Scheduled on/off shortens operating hours from existing dusk to dawn operation, commonly
referred to as “scheduled trimming;” and

c) Scheduled dimming reduces overall consumption.

The incremental cost savings relative to trimming and/or dimming schedules generated via wireless
controls technology is a function of a community’s decision about the tradeoff of appropriate lighting
levels versus desired energy/cost savings. For illustrative purposes, Siemens uses a 20% reduction in
LED energy use as a mid-range of the various potential dimming or on/off schedules described above.
Note: a 20% savings in “LED energy use” is not the same as the energy savings from the existing HPS
system previously reported; the 20% savings is applied after the LED conversion savings has been
calculated.

At this time, Eversource is not offering an incentive for controls, so the estimated incentive amount is
unchanged. There is significant cost savings relative to installing controls at the time of the LED
installation because a) the labor hours are much reduced as the electrician is already at each light to
perform the retrofit, and b) the standard photocell replaced when the LED fixture was installed must be
removed and replaced. Recent Siemens’ analyses for other customers in New England indicate that the
material cost for wireless controls would have to decrease by 60-70% to make deploying wireless
controls after the retrofit, rather than during the retrofit, more cost-effective. Siemens typically
examines the relative impact of wireless controls on the project cast and payback so that our customers

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Building B, Ste 101 512-837-8000
Austin, TX 78733 Page 19

can make an informed decision about whether to further pursue this option. Regardless of the
community's choice, Siemens recommends the incorporation of a 7-pin photocell receptacle so that at a
minimum, the LED fixtures installed via this project are “controls ready” so that wireless controls could
be incorporated at a later date following Eversource tariff acceptance and if the future project
cost/benefits are deemed acceptable by the City/Town.

Construction

Siemens Project Manager will staff work crews as necessary to adhere to schedule requirements to
ensure that any delays related to fixture delivery or weather events are minimized. Again, a critical
component of this effort is te communicate project status on a weekly basis. All LED installation work
shall be performed by IBEW Licensed Electricians with IMSA Roadway Lighting Level | certification (or
other certifications as required), and all installation work shall be paid at prevailing wage rates. All LED
installation work shall be performed in accordance with the NEC, NESC, and OSHA provisions, and
exclusively by individuals certified by OHSA as a “Qualified Electrical Worker.” Siemens will also use this
as an opportunity to use local union members.

Customer Acceptance/Project Commissioning/Rebate

Commissioning for outdoor lighting involves 1) a nighttime drive-by of streets with City
representative(s), 2) submittals for billing adjustments, and 3) confirmation upon receipt of the next
month’s bill(s) that billing adjustments are accurate. We have found that one of the most important
phases of any project is to visually confirm the post-project environment with the customer. We will
conduct a nighttime “drive-by” with City officials to ensure that lighting levels are satisfactory. Common
adjustments include: fixture shielding or rotating/tilting, lumen output adjustment, recommended tree
trimming by City staff or their contractor, removal of closely spaced lights, or the addition of light(s)
where fixture spacing is much greater than typical, resulting in unacceptable lighting levels.

Once the project is complete, the application form described previously is signed, indicating the work is
complete and the final inventory file is submitted along with copies of all invoices. The final inventory
file becomes the basis of the billing adjustments. Adjusting the billing frequently takes approximately 2
billing cycles on the utility side. During project close-out, we will request bill copies from the City to
track and ensure the adjustments are correctly made.

During calendar 2015, Siemens assisted New England communities in securing over $1.5M in utility
rebates for LED streetlight retrofits, including $400,000 for the City of Manchester. Our experience
and understanding of how utility tariffs and incentive programs are structured allows us te maximize
these incentives on the customer's behalf.

Warranty

Once the project is accepted by the City as “substantially complete,” the contract will transition from
“project” to “service” status. Siemens’ Service Account Manager will take over the project to dispatch
repair crews, respond to customer requests, and issue invoices. Siemens’ pricing includes a 12 month
workmanship warranty on all labor and materials, post-substantial completion. After the one-year
workmanship warranty expires, Siemens will pass through to the City (or Eversource, as appropriate) all
manufacturers’ warranties. All manufacturers Siemens quoted for this project offer a ten (10) year
product warranty on all LED light fixtures.

9225 Bee Cave Rd www. siemens.usa.com
Building B, Ste 101 512-837-8000
Austin, TX 78733 Page 20

Conceptual Schedule

The following page is a conceptual schedule showing staffing, product procurement lead time, and
proposed monthly minimum installation quotas.

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Building B, Ste 101 512-837-8000
Austin, TX 78733 Page 21