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ADOPT RESOLUTION TO AUTHORIZE THE LED STREET LIGHTS CONVERSION, PHASE 5 PROJECT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve the Notice of Exemption No. NOE67-21 under the California Environmental Quality Act for the LED Street Lights Conversion, Phase 5, Project No. WT22017.
2. Approve the plans and specifications for the LED Street Lights Conversion, Phase 5, Project No. WT22017.
3. Transfer funds in the amount of $122,867.34 from the Street Light LED Replacement, Project No. WD19017, to the LED Street Lights Conversion, Phase 5, Project No. WT22017.
4. Transfer funds in the amount of $100,000 from the Residential Street Light LED Replacement, Project No. WT22005, to the LED Street Lights Conversion, Phase 5, Project No. WT22017.
5. Authorize the City Manager to accept Pacific Gas & Electric LED Street Lights Incentive Program funds totaling approximately $24,950.
6. Award a Construction Contract in the amount of $701,790 to Bear Electrical Solutions, Inc. of Alviso, CA, for the LED Street Lights Conversion, Phase 5, Project No. WT22017.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
The Fiscal Year (FY) 2021-22 Capital Improvement Plan (CIP) Budget approved $500,000 in Measure K Maintenance Funds to convert a portion of the City’s high-pressure sodium (HPS) residential street light inventory to light-emitting diode (LED) luminaires. HPS lights use substantially more energy and converting to LED luminaires will lower ongoing operating costs. The LED Street Lights Conversion, Phase 5, Project No. WT22017, will include converting 2,200 HPS streetlights north of the Calaveras River (Attachment A). Public Works estimates annual energy savings of approximately $94,600 from this Phase 5 conversion. Additionally, Public Works applied for and will receive Pacific Gas & Electric (PG&E) LED Street Lights Incentive Program funds totaling approximately $24,950, which will be applied to the sixth phase of this project.
On November 18, 2021, the City received 10 bids for this project. The apparent lowest bidder, Net Electric, Inc., failed to honor their bid and sign a Construction Contract. Public Works’ staff and the City Attorney’s Office determined Net Electric, Inc.’s bid to be non-responsive. Staff recommends that Council reject Net Electric, Inc.’s bid and award of the Construction Contract to the second-lowest responsive bidder, Bear Electrical Solutions, Inc., in the amount of $701,790. Staff also recommends that Council adopt a resolution approving Notice of Exemption No. NOE67-21 under the California Environmental Quality Act (CEQA) and approving the plans and specifications for the project. Construction is anticipated to begin in early summer 2022 and be completed by fall 2022, weather permitting.
DISCUSSION
Background
The City has an inventory of approximately 19,000 streetlights. The majority of these lights utilize HPS as a light source, which until recently was the most efficient light source available. However, recent improvements to LED technology have increased efficiency and reduced initial product cost, and LED streetlights are the new preferred light source. LED streetlights use less energy and have a longer luminaire lifetime than HPS, which reduces ongoing costs for electricity and general maintenance. Staff recognized the potential savings to be achieved by converting the City’s street light inventory and developed a plan for an incremental conversion starting with the higher wattage HPS streetlights located on arterial roads. Conversion of these lights generates the most significant reduction in electrical consumption with an average of 60 percent, which yields the greatest financial and carbon footprint impact.
Council previously authorized the LED Street Lights Conversion, Phase 1, 2, and 3 projects, which provided the conversion of 4,100 (200-watt), 1,600 (150-watt), and 5,600 (100-watt) street light fixtures. The conversion projects were completed in December 2014, August 2015, and March 2017, respectively. These prior phases have provided for the conversion of all residential streetlights in south Stockton, plus all streetlights located along arterial and collector roadways Citywide.
Phase 4 of the project was canceled, and the funding was allocated to the Street Lights LED Replacement, Project No. WD19017, to replace failing LED lights with new LED fixtures supplied by the manufacturer. The LED Street Lights Conversion, Phase 5, project will include converting 2,200 HPS streetlights primarily north of the Calaveras River (Attachment A). After completion of this project, there will be approximately 5,500 streetlights remaining for future LED conversion.
On July 26, 2016, Council adopted a Community Workforce and Training Agreement (CWTA). The CWTA became effective August 25, 2016, and applies to all Public Works projects over $1 million that are bid after that date. On July 16, 2019, by Motion No. 2019-07-16-1403, Council extended the CWTA term to August 25, 2024. The CWTA was not applied to this project because the engineer’s estimate was less than $1 million.
Present Situation
On October 28, 2021, the LED Street Lights Conversion, Phase 5, Project No. WT22017, was advertised for bids. On November 18, 2021, 10 bids were received with the following results:
COMPANY NAME BID AMOUNT ADJUSTED BID AMOUNT
(local preference applied)
Net Electric, Inc. $ 683,378 $ 683,378
(San Leandro, CA)
Bear Electrical Solutions, Inc. $ 701,790 $ 701,790
(Alviso, CA)
Pro-Cal Lightning, Inc. $ 713,000 $ 713,000
(Vista, CA)
St. Francis Electric, LLC $ 726,000 $ 726,000
(San Leandro, CA)
Pacific Excavations, Inc. $ 739,000 $ 739,000
(Elk Grove, CA)
T&S Intermodal Maintenance, $ 818,000 $ 777,100
Inc. (Stockton, CA)
Tennyson Electric, Inc. $ 786,300 $ 786,300
(Livermore, CA)
Ample Electric, Inc. $ 875,400 $ 875,400
(Winters, CA)
Ray’s Electric $ 905,000 $ 905,000
(Oakland, CA)
Saboo, Inc. $1,478,254 $1,478,254
(Brentwood, CA)
Engineer’s Estimate $ 592,000
The requirements of the Stockton Municipal Code (SMC) section 3.68.090, Local Business Preference, apply to this project. T&S Intermodal Maintenance, Inc. is located within the City of Stockton and is entitled to a five percent bid preference. Application of the Local Business Preference has no effect on the bid order. The Local Employment Ordinance, SMC section 3.68.095, also applies to this contract.
On May 4, 2022, Net Electric, Inc., the apparent lowest bidder, requested a price increase to their bid in the amount of $38,000 due to material cost increases and refused to sign the Construction Contract. The City determined Net Electric, Inc.’s bid to be non-responsive and to have no merit based on the contract bid provisions and California Contract Code.
Per California Contract Code section 20174, “The City Council may award a construction contract to the next lowest responsible bidder on refusal or failure of the successful bidder to execute the contract.” Net Electric, Inc. was provided a deadline of May 11, 2022, after multiple prior attempts to sign the Construction Contract. Public Works’ staff and the City Attorney’s Office determined that Net Electric, Inc.’s failure to comply with the Special Provisions and California Contract Code section 20174 resulted in a non-responsive bid (Attachment B).
The bid from Bear Electrical Solutions, Inc., the second-lowest responsive bidder, is regular in all respects. Bear Electrical Solutions, Inc. has the proper license to perform the work. Staff recommends Council approve the plans and specifications for the project and award a Construction Contract to Bear Electrical Solutions, Inc. of Alviso, CA, in the amount of $701,790.
Public Works applied for and will receive PG&E LED Street Lights Incentive Program funds totaling approximately $24,950 and estimates annual energy savings of approximately $94,600 from this Phase 5 conversion. Once Phase 5 is completed, and the incentive is received, staff anticipates returning to Council with an LED Street Lights Conversion, Phase 6 project.
The project is in conformance with the City’s General Plan, pursuant to California Government Code section 65402, and is categorically exempt from the requirements of CEQA as specified under Section 15301(c) of the CEQA guidelines. The activities related to this project constitute a discretionary project under the City’s jurisdiction and qualifies as a project that does not have a significant effect on the environment. The resolution will approve the filing of Notice of Exemption No. NOE67-21 under CEQA.
Construction is anticipated to begin in summer 2022 and be completed by fall 2022, weather permitting.
FINANCIAL SUMMARY
The FY 2021-22 CIP Budget approved $500,000 in Measure K Maintenance Funds for the LED Street Lights Conversion, Phase 5, Project No. WT22017. The current unencumbered balance is not sufficient to award a Construction Contract to Bear Electrical Solutions, Inc. in the amount of $701,790.
The resolution includes the following actions to provide sufficient funding to award a Construction Contract and to fund all other construction related costs to complete the project:
1. Transfer funds in the amount of $122,867.34 from the Street Light LED Replacement, Project No. WD19017 (General Capital Fund), to the LED Street Lights Conversion, Phase 5, Project No. WT22017.
2. Transfer funds in the amount of $100,000 from the Residential Street Light LED Replacement, Project No. WT22005 (Gas Tax), to the LED Street Lights Conversion, Phase 5, Project No. WT22017.
There is no impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended actions.
Attachment A - Vicinity Map
Attachment B - City’s Letter of Response