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THE CITY OF 1 1 9 - "' CITY COUNCIL AGENDA REPORT PLEASANTON. September 17, 2013 Community Development Engineering Division Operations Services TITLE: APPROVE PLANS AND SPECIFICATIONS, REVIEW BIDS, AND AWARD CONSTRUCTION CONTRACT TO PHOENIX ELECTRIC COMPANY IN THE AMOUNT OF $1,613,404.24 FOR THE LED STREET LIGHT RETROFIT PROJECT, CIP NO. 135056 SUMMARY Bids have been received for the project and staff is recommending award of the construction contract to the lowest responsible bidder, Phoenix Electric Company, in the amount of $1,613,404.24. This project replaces 5,464 High Pressure Sodium Vapor "cobra head" street light fixtures with new light emitting diode (LED) energy efficient street light fixtures within the City of Pleasanton. This project is anticipated to save the City approximately $200,000 in energy costs per year and have a one -time PG &E conversion incentive rebate of approximately $354,350. Less energy consumption also reduces greenhouse gas emission, bringing the City closer to its approved Climate Action Plan goals consistent with AB 32. The City will complete the citywide conversion to LED street light fixtures by advertising another LED retrofit project for all decorative street light fixtures within the next few months. RECOMMENDATION 1. Approve plans and specifications for this project. 2. Review the bids received and award the construction contract for the project to Phoenix Electric Company of San Francisco, California, for a low bid amount of $1,613,404.24. 3. Authorize the City Manager to enter into the project contract. 4. Authorize the Director of Community Development to approve and execute any required contract change order(s) for a not -to- exceed contingency amount of $161,233 (approximately 10% of the contract) for necessary work to complete the project. FINANCIAL STATEMENT The anticipated expenditure for this project is $1,775,000, including a construction contingency of $161,233. Funding for this project is acquired through a 1% interest rate California Energy Commission (CEC) loan in the amount of $2,755,000 and the estimated one -time conversion incentive rebate from PG &E in the amount of $354,350. The estimated projected expenditures and funding are detailed in Attachment 2. The unused balance of the loan will be applied to a separate LED retrofit project for decorative lighting.