Title
Report regarding a resolution approving Budget Amendment Number 26.063 and authorizing an increase to the Construction Contingency for the Contract with DC Electric Group, Inc. for the Downtown and Old Town Lighting Improvements Project (No. pk2307) (Jeffrey Chou, Senior Civil Engineer)
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RECOMMENDATION
Recommendation
Staff recommends that the City Council adopt a resolution approving Budget Amendment Number 26.063 and authorizing an increase to the Construction Contingency for the Contract with DC Electric Group, Inc. for the Downtown and Old Town Lighting Improvements Project.
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BACKGROUND/DISCUSSION
On May 14, 2025, the City Council awarded the construction contract for the Downtown and Old Town Lighting Improvements Project to DC Electric Group, Inc. The Project’s goal and intent are to utilize Peninsula Clean Energy (PCE) Grant Funds awarded to the City to improve energy efficiency through the installation of LED lighting technology while reducing the City’s electricity use and contributing to the City’s climate action and sustainability goals.
In December 2023, the PCE Board of Directors authorized a one-time allocation of $11.5 million in surplus funds for member agencies to implement local energy projects. This funding opportunity was made available to PCE’s member agencies, including cities, towns, and the County itself-for projects that advance energy efficiency, reduce greenhouse gas emissions, and support long-term sustainability goals. City staff applied and were awarded $1,263,372 in funding. The Downtown and Old Town Lighting Improvements Project was identified as the most competitive and impactful use of these grant funds because its energy efficiency goals best aligned with PCE’s priorities.
As of December 2025, the contractor has completed the original or base scope of work, which included upgrading more than 220 streetlights along Grand Avenue (from Spruce Avenue to Airport Boulevard) and Linden Avenue (from Railroad Avenue to Airport Boulevard) with LED lighting. The project also included lighting improvements at Cypress and Pine Park, enhancing visibility and safety through upgraded and improved light fixtures.
The base scope of work was completed for an amount of $615,369.93. Of the $1,263,372 PCE grant funds, approximately half of the funding remains to be utilized.
Additional Scope of Work and Lighting Improvements
With the base scope completed at a cost significantly below the original engineer’s estimate, as well as below the PCE grant amount and overall project budget, City staff identified an opportunity to utilize the remaining funds to support similar lighting improvements at additional City parks and facilities. This additional scope of work would continue to implement the purpose of the PCE Grant relating to energy efficiency, cost savings and sustainability.
Following coordination between the Parks and Recreation and Public Works Departments, and based on the age and condition of existing light fixtures and poles, the following thirteen (13) parks and facilities were recommended for inclusion in the Project:
|
Facility |
Upgrade Light Fixture |
Replace Light Pole |
|
Alta Loma Park |
21 |
19 |
|
Avalon Park |
8 |
4 |
|
Boys and Girls Club |
4 |
0 |
|
Brentwood Park |
2 |
4 |
|
Buri Buri Park |
36 |
11 |
|
Clay Ave Playlot |
2 |
2 |
|
Orange Memorial Park |
27 |
19 |
|
Public Works Corp Yard |
9 |
9 |
|
Siebecker Pre-School |
4 |
2 |
|
TerraBay Baseball Fields |
10 |
10 |
|
Westborough Park |
46 |
0 |
|
Willow Gardens Park |
6 |
0 |
|
Zamora Park |
4 |
4 |
Through a change order, the additional scope of work consists of upgrading approximately 179 light fixtures to LED and replacing approximately 84 light poles, for an estimated cost of $764,810. Staff and the City’s design consultant reviewed the proposed costs and found it consistent with current market prices.
These lighting improvements are the same work that has been carried out in the base Project scope. The additional work will enhance pedestrian safety and the overall user experience by upgrading park and pathway lighting to LED fixtures and improving illumination levels, while also reducing maintenance needs, energy consumption (by approximately 52%), and associated costs.
This expanded scope was also discussed with and approved by Peninsula Clean Energy’s Senior Director of Energy Programs as continued implementation of the PCE Grant program goals.
The City previously bid out the Project consisting of the base scope of work and awarded the work contract to the lowest responsive and responsible bidder, DC Electric Group. The public benefits for DC Electric Group to continue performing the additional scope of work are significant. As DC Electric Group has performed the same type of work under the original base scope, using the same contractor would save unnecessary City expenditures on project management and monitoring including but not limited to the cost of getting a new contractor onboard and potential associated delays. The type of work covered by the Project under the original base scope and the additional scope significantly reduces the City’s energy consumption, results in substantial cost savings, upholds City infrastructure and enhances pedestrian safety. These types of energy saving projects are supported by public contracting statutes, including Government Code section 4217.10 et seq. which provides great flexibility for the City to enter into energy contracts that would result in cost savings to promote efficiency and sustainability goals.
Revised Project Expenses Overview
With the additional scope of work, Project No. pk2307 proposed budget and expenses are as shown below:
|
Project Expenses |
Estimated Costs |
|
Desing Services |
$ 138,000 |
|
Construction Contract (completed base scope) |
$ 615,370 |
|
Additional Scope of Work |
$ 764,810 |
|
Construction Management and Inspection |
$ 60,000 |
|
Staff Time and Miscellaneous Costs |
$ 30,000 |
|
Total Project Expenses |
$ 1,608,180 |
|
Project Budget |
Amount |
|
Peninsula Clean Energy Grant |
$ 1,263,372 |
|
Infrastructure Reserves |
$ 300,000 |
|
Park Maintenance Funds* |
+$ 50,000 |
|
Park Land Construction Fund* |
+$ 20,000 |
|
Total Project Budget |
$ 1,633,372 |
*Budget Amendment No. 26.063 (for more information - see Fiscal Impact section)
In summary, the construction cost for the base scope and additional scope of work is estimated at $1,380,180.
Staff recommend increasing the construction contingency for DC Electric Group, Inc. from $127,890 to $776,320 to complete this additional scope of work, resulting in a total construction contract authority of $1,400,180:
|
DC Electric Group, Inc. Construction Contract |
$ 623,860 |
|
Construction Contingency (original) |
$ 127,890 |
|
Construction Contingency (additional) |
$ 648,430 |
|
Total Construction Contract Authority |
$ 1,400,180 |
FISCAL IMPACT
This Project (CIP No. pk2307) is included in the City of South San Francisco’s Fiscal Year 2025-26 Capital Improvements Program.
Budget Amendment No. 26.063 will amend the current CIP to
1. Transfer $20,000 of Park Land Construction funding from pk2502 to pk2307. These funds are allocated for Willow Gardens Park improvements.
2. Include $50,000 of unallocated Park Maintenance Funds.
RELATIONSHIP TO CITY COUNCIL PRIORITIES ACTION PLAN
Approval of this action will contribute to the City Council Priorities Action Plan by improving Infrastructure and the Environment and Quality of Life by maintaining and improving infrastructure to serve the public, saving significant energy costs, and promoting sustainability goals.
CONCLUSION
Approving Budget Amendment Number 26.063 and authorizing an increase to the Construction Contingency for the Contract with DC Electric Group, Inc. for the Project will enhance pedestrian safety and experience by upgrading park and pathway lighting to LED fixtures, improving illumination, and reducing maintenance and energy costs.
Attachments:
1. Project Location Map