Title
Report regarding a resolution awarding a construction contract to DC Electric Group, Inc. of Cotati, California, for Downtown and Old Town Lighting Improvements Project (No. PK2307, Bid No. 2702) in an amount not to exceed $623,860 and related actions. (Jeffrey Chou, Senior Civil Engineer)
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RECOMMENDATION
Recommendation
Staff recommends that the City Council adopt a resolution awarding a construction contract to DC Electric Group, Inc. of Cotati, California, for Downtown and Old Town Lighting Improvements Project (No. PK2307, Bid No. 2702) in an amount not to exceed $623,860 authorizing a total construction contract authority budget of $751,750 and authorizing the City Manager to execute the agreement on behalf of the City; and acceptance of $1,263,372 in grant funding from Peninsula Clean Energy Authority and approving associated Budget Amendment Number 25.051.
Body
BACKGROUND/DISCUSSION
On February 28, 2024, City staff presented the Downtown and Old Town lighting study to City Council and the public, outlining recommendations to enhance existing lighting conditions. One key proposal was upgrading the current historic streetlight fixtures with energy-efficient LED lighting.
This Downtown and Old Town Lighting Improvements Project (Project) will upgrade 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. See Attachment 1-Vicinity Map. These improvements will enhance lighting levels for safety and visibility, while maintaining the historical character of the streetlight fixtures, and achieving an estimated energy savings of 62%.
The Project will also include lighting upgrades at Cypress and Pine Park, improving visibility and safety by replacing and enhancing the surrounding light fixtures.
Peninsula Clean Energy Grant
In December 2023, the Peninsula Clean Energy (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 of the Project’s alignment with PCE’s priorities - improving 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.
Bid Process and Results
The Project was advertised using formal bid procedures for public projects greater than $200,000 in accordance with the City’s purchasing policy, which falls under Procurement Type 1: Competitive Bidding for Construction Projects. For more details on the City’s Procurement Process, refer to Attachment 2.
This procedure awards the contract to the lowest responsive and responsible bidder.
Staff advertised a notice inviting bids for the Project on March 10, and March 17, 2025. On April 10, 2025, staff received nine (9) bid proposals in response to the notice inviting bids. Staff reviewed all bid proposals and identified that the lowest responsible bidder was DC Electric Group, Inc. of Cotati, California. Staff has verified the low bidder’s current contractor’s license with the California State Licensing Board and found it to be in good standing.
The Project was advertised with two schedules, the “Base Bid” and “Add Alternative.” Description of “Add Alternative” schedule is as follows:
• Alternative Item 1 is for relocating of an existing streetlight pole to replace a damaged streetlight.
• Alternative Item 2 is for procuring an electrical engineer to provide all wiring and attachment details as needed for the Project.
The selection of award of a contract is based on the lowest responsive bid for the “Base Bid” schedule.
The following is a summary of all bids received:
|
Rank |
Contractor |
"Base Bid" Results |
“Add Alternative” Results |
|
1 |
DC Electric Group, Inc. of Cotati, CA |
$ 597,860 |
$ 26,000 |
|
2 |
Bay Area Lightworks of San Francisco, CA |
$ 721,500 |
$ 38,500 |
|
3 |
W. Bradley Electric, LLC of Novato, CA |
$ 875,882 |
$ 148,671 |
|
4 |
Mike Brown Electric Co. of Cotati, CA |
$ 884,225 |
$ 14,500 |
|
5 |
Ray's Electric of Oakland, CA |
$ 906,403 |
$ 56,500 |
|
6 |
James Day Construction, Inc. of Clearlake, CA |
$ 919,985 |
$ 50,000 |
|
7 |
Tennyson Electric LLC of Livermore, CA |
$ 945,930 |
$ 52,500 |
|
8 |
Bear Electrical Solutions, LLC of Alviso, CA |
$ 960,500 |
$ 55,000 |
|
9 |
Columbia Electric, Inc. of San Leandro, CA |
$ 1,058,310 |
$ 69,600 |
|
|
|
|
Engineers Estimate (by SWA Group) |
$ 950,000 |
$50,000 |
DC Electric Group, Inc. submitted a bid that is approximately 37% lower than the Engineer’s Estimate. Upon review, staff determined that the bid is competitive and not materially unbalanced.
Staff recommends awarding both the “Base Bid” and the “Add Alternative” schedules to DC Electric Group, Inc.
The proposed project construction budget is:
|
DC Electric Group, Inc. Construction Contract |
$ 623,860 |
|
Construction Contingency (20%) |
$ 127,890 |
|
Total Project Construction Budget |
$ 751,750 |
The construction contingency will be used for any additional costs related to design changes during the construction operations. There are no Disadvantaged Business Enterprise (DBE) requirements since no federal funds are being utilized on the Project.
FISCAL IMPACT
This Project (CIP No. PK2307) is included in the City of South San Francisco’s Fiscal Year 2024-25 Capital Improvements Program.
Budget Amendment No. 25.051 will amend the current CIP to include the Peninsula Clean Energy grant funds of $1,263,372 into CIP No. PK2307.
These grant funds will fully cover the total design and construction costs associated with the Downtown and Old Town Lighting Improvements Project. The estimated grant-eligible expenses are detailed below:
|
Purpose |
Estimated Costs |
|
Design Budget |
$ 100,000 |
|
Construction Budget |
$ 751,750 |
|
Construction Management and Inspection |
$ 200,000 |
|
Total Eligible Expenses |
$ 1,051,750 |
No local match is required for this grant. Therefore, there is no fiscal impact to the City's General Fund in accepting this grant.
RELATIONSHIP TO STRATEGIC PLAN
Approval of this action will contribute to the City’s Strategic Plan outcome of improved Quality of Life by maintaining and improving infrastructure to serve the public.
CONCLUSION
Awarding the construction contract to DC Electric Group, Inc. of Cotati, California, for the Downtown and Old Town Lighting Improvements Project and approving Budget Amendment Number 25.051 will improve pedestrian safety and experience by upgrading the street lighting to LED fixtures and enhancing the lighting levels.
Attachments:
1. Vicinity Map
2. Overview of City’s Procurement Process
3. Presentation