title
ADOPT RESOLUTION TO AUTHORIZE THE LED STREET LIGHTS CONVERSION, PHASES 7 AND 8 PROJECT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve Notice of Exemption No. NOE 06-25 under the California Environmental Quality Act for the LED Street Lights Conversion, Phases 7 and 8, Project No. WD24017.
2. Approve the plans and specifications for the LED Street Lights Conversion, Phases 7 and 8, Project No. WD24017.
3. Award a Construction Contract in the amount of $604,125 to Bear Electrical Solutions, LLC of Alviso, CA, for the LED Street Lights Conversion, Phases 7 and 8, Project No. WD24017.
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.
body
Summary
The project will convert the final phases 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, Phases 7 and 8, Project No. WD24017, will include converting 1,785 HPS residential streetlights primarily north of Hammer Lane to LED (Attachment A). Public Works estimates annual energy savings of approximately $104,500 from the Phases 7 and 8 conversions. The project is included in the 2025-30 Five-Year Capital Improvement Plan (CIP).
On February 20, 2025, the City received four bids for this project. Star Energy Management, Inc., the lowest bidder, did not possess the required valid Class-A license at the time of the bid. After a thorough review, Public Works, in coordination with the City Attorney’s Office, determined the bid non-responsive.
It is recommended that Council award a Construction Contract to the second lowest responsive bidder, Bear Electrical Solutions, LLC, in the amount of $604,125. It is also recommended that Council adopt a resolution approving Notice of Exemption No. NOE 06-25 under the California Environmental Quality Act (CEQA) and approving the plans and specifications for the project.
Construction is anticipated to begin in summer 2025 and be completed by fall 2025, weather permitting.
DISCUSSION
Background
The City is responsible for operating and maintaining approximately 19,800 streetlights. The majority of these streetlights utilized HPS as a light source, which was the most efficient light source available. Recent improvements to LED technology have increased efficiency and reduced initial product costs, 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 streetlight inventory and developing a plan for incremental conversions, 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, Phases 1, 2, 3, and 5 projects, which provided the conversion of 4,100 (200-watts), 1,600 (150-watts), and 7,800 (100-watts) street light fixtures. 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. Phase 6 of the project converted 1,500 HPS streetlights north of the Calaveras River. The number of street light fixtures converted depended on the amount of funding available. Prior phases have provided for the conversion of all residential streetlights south of the Calaveras River, plus all streetlights located along arterial and collector roadways Citywide.
The LED Street Lights Conversion, Phases 7 and 8, project will include converting 1,785 HPS residential streetlights primarily north of Hammer Lane to LED (Attachment A). Phases 7 and 8 are the final phases of the project, completing all HPS streetlights.
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. On August 20, 2024, by Motion No. 2024-08-20-1203, Council extended the CWTA term to August 25, 2029. The CWTA was not applied to this project as the estimated construction cost is less than $1 million.
Present Situation
On January 29, 2025, the LED Street Lights Conversion, Phases 7 and 8, Project No. WD24017, was advertised for bids. On February 20, 2025, four bids were received with the following results:
COMPANY NAME BID AMOUNT
Star Energy Management, Inc. (Oroville, CA) $584,270
Bear Electrical Solutions, LLC (Alviso, CA) $604,125
St. Francis Electric, LLC (San Leandro, CA) $735,494
Tennyson Electric, Inc. (Livermore, CA) $864,750
Engineer’s Estimate $764,000
The requirements of Stockton Municipal Code (SMC) section 3.68.090, Local Business Preference, apply to this project. 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.
Star Energy Management, Inc., the lowest bidder, did not possess the required valid Class-A license at the time of the bid. Public Works, in coordination with the City Attorney’s Office, determined that Star Energy Management, Inc.’s failure to comply with the Special Provisions and the California Business and Professional Code section 7028.1(c) resulted in a non-responsive bid.
The bid from Bear Electrical Solutions, LLC, the second lowest responsive bidder, is regular in all respects and has the proper license to perform the work. It is recommended that Council approve the plans and specifications, and award a Construction Contract to Bear Electrical Solutions, LLC of Alviso, CA, in the amount of $604,125 for the LED Street Lights Conversion, Phases 7 and 8, Project No. WD24017.
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. As a result, the project has been granted a categorical exemption. 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. NOE06-25 under CEQA.
Construction is anticipated to begin in summer 2025 and be completed by fall 2025, weather permitting.
FINANCIAL SUMMARY
There is sufficient funding in the LED Street Lights Conversion, Phases 7 and 8, Project No. WD24017, to award a Construction Contract to Bear Electrical Solutions, LLC in the amount of $604,125.
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