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BACKGROUND <br />On February 13, 2012, City Council approved and certified the City's Climate Action Plan. <br />The plan includes aggressive timelines for implementing various measures to meet the <br />goals of AB 32 (Global Warming Solutions Act of 2006) by 2020. The sooner the City <br />implements these measures, the sooner it can accomplish greenhouse gas emission <br />reductions and associated energy savings. <br />The City has approximately 6,684 street lights that include cobra head style lighting and <br />decorative lighting. The majority of the lights (5,464 units) are cobra head style lighting. <br />In an effort to maximize the utilization of the CEC loan funding in a timely manner and <br />simplify the competitive bidding process while still addressing various outstanding issues <br />pertaining to the decorative street lighting fixtures, staff determined that the best <br />approach would be to bid all of the cobra head style street lights' within the City and <br />exclude all of the decorative lighting from this project. Staff anticipates that in <br />approximately two months, all outstanding issues pertaining to the decorative lighting will <br />be addressed. At such time, a separate LED retrofit project will be advertised that will <br />include decorative lighting only. The CEC loan funding has a conversion completion <br />requirement date of November 2014. It is anticipated that both phases of the retrofit <br />project will be done by the loan conversion completion deadline. <br />Completing this first LED project will save the City roughly $200,000 per year in energy <br />billing, which is approximately 1.08 million kWh less of energy consumption. This also <br />translates to a reduction of greenhouse gas emissions of 763 metric tons of CO2 <br />equivalent every year, which is approximately equivalent to CO2 emissions from 85,524 <br />gallons of gasoline. The City will also receive a one -time PG &E conversion incentive <br />rebate of approximately $354,350 for this first LED project. A total of 5,464 lights will be <br />retrofitted under this project, providing vastly improved true color lighting, significant <br />energy savings, and reduced maintenance and equipment replacement costs. <br />DISCUSSION <br />Bids <br />Sealed bids for this project were opened on August 8, 2013. A total of six bids were <br />received ranging from $1,756,834.24 to $3,922,534.00 including two (2) Additive Bid <br />Items (see Attachment 1, Bid Summary). The engineer's estimate for this project was <br />$2.30 Million. <br />The bids include, the project budget accounts for, and staff recommends award of one (1) <br />of the additive bid items: No. 2, GPS data collection, for $10,928. <br />The low bid of $1,613,404.24 was received from Phoenix Electric Company of San <br />Francisco, California. All bid documents were found to be in order and past work <br />performed by this contractor was verified to be satisfactory. Staff is recommending <br />' The approx. 783 cobra head street lights located within the Hacienda Business Park for which the Hacienda Business <br />Park Owners Association ( HBPOA) has responsibility are proposed to be upgraded to LED as part of this project. An <br />agreement with the HBPOA for payment for those LED lights will be presented to the City Council as a separate item. <br />Page 2 of 4 <br />