REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment No. 1 to the Agreements with Advanced Lighting Services, Inc. and American Power Solutions, Inc. for Citywide LED Lighting Retrofit and Replacement for City Facilities and As-Needed Services
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
On July 16, 2024, following a Request for Proposals (RFP) process, the City Council authorized the City Manager to execute agreements with Advanced Lighting Services, Inc. (ALS) and American Power Solutions, Inc. (APS) (Attachment 1) to retrofit or replace lighting fixtures from fluorescent lamps to light-emitting diode (LED) bulbs in order to comply with California Assembly Bill 2208 (AB 2208). AB 2208, signed into law in September 2022, prohibits the sale of fluorescent bulbs in California effective January 2024.
As noted in the July 2024 staff report, the project is being implemented based on available funding in the budget, with initial work prioritized in the City’s largest facilities, including City Hall, the Police Department, libraries, the Senior Center, and the Community Recreation Center. To date, lighting upgrades have been completed in approximately 40 buildings. Many of these buildings were approved for financing through the Silicon Valley Power (SVP) loan program, which ended on December 31, 2024, as well as rebates from SVP. SVP issues loans for the lighting upgrades and anticipates payback through energy savings generated by the new LED lighting. Leveraging the SVP loan program allowed the City to complete more facilities than originally planned.
The purpose of this report is to obtain City Council approval to increase the maximum compensation of the agreements with ALS and APS in order to complete lighting retrofits and replacements in approximately 30 additional buildings.
DISCUSSION
To complete the retrofit and replacement work in the remaining buildings, an amendment to the agreements with ALS and APS is necessary. Staff recommends increasing the maximum compensation amount by $441,046, for a revised not-to-exceed aggregate compensation amount of $941,046 across both agreements.
Under the amended agreements, ALS and APS will continue to provide citywide LED retrofit and replacement services on a per-building request basis. For each building, both contractors will conduct an assessment which will include a count of the fixtures to be retrofitted or replaced, along with a proposal to perform the work. Proposals will be based on the hourly rates and unit pricing established in the agreements. The contractor offering the lowest total cost and most advantageous project timeline will be awarded the work for that specific building.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
Amendment No. 1 increases the aggregate maximum compensation not-to-exceed amount by $441,046 for a revised aggregate maximum compensation not-to-exceed amount of $941,046. In the Adopted FY 2024/25 and FY 2025/26 Capital Improvement Program Budget, $500,000 is budgeted in the City Buildings - Upgrade Lighting to LED Project in FY 2024/25. In addition, $403,062 of the LED retrofit and replacement project costs are being funded through SVP loans and rebates (this number was able to be determined after the Project began). The loans and rebates portions will be funded directly from the Electric Operating Grant Trust Fund - Public Benefits Program. The energy savings earned in future years will pay back the SVP loans.
In order to complete the lighting retrofits and replacements discussed in this memorandum, additional funding of $37,984 from the Capital Projects Reserve is requested in FY 2024/25. Costs beyond FY 2024/25 are subject to appropriation of funds by the City Council.
The budget amendment below allocates funding from the General Fund Capital Projects Reserve to the Public Buildings Capital Fund for the Upgrade Lighting to LED Project as recommended in this memorandum.
Budget Amendment
FY 2024/25
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Public Buildings Capital Fund |
|
Transfer In |
|
|
|
|
General Fund - Capital Projects Reserve |
$1,495,000 |
$ 37,984 |
$ 1,532,984 |
|
|
|
|
|
|
Expenditures |
|
|
|
|
Upgrade Lighting to LED Project |
$500,000 |
$ 37,984 |
$537,984 |
|
|
|
|
|
|
General Fund |
|
|
|
|
Transfer To |
|
|
|
|
Public Buildings Capital Fund (Capital Projects Reserve) |
$1,495,000 |
$ 37,984 |
$ 1,532,984 |
|
|
|
|
|
|
Fund Balance |
|
|
|
|
Capital Projects Reserve |
$7,834,572 |
($ 37,984) |
$7,796,588 |
COORDINATION
This report has been coordinated with the Finance Department, Silicon Valley Power, and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager or designee to execute Amendment No. 1 to agreements with Advanced Lighting Services, Inc. and American Power Solutions, Inc. for citywide LED lighting retrofit and replacement services, to increase the aggregate maximum compensation by $441,046, from $500,000 to a revised not-to-exceed amount of $941,046, subject to the appropriation of funds and review and approval by the City Attorney.
2. Approve the following FY 2024/25 budget amendments:
a. In the Public Buildings Capital Fund, increase the transfer from the General Fund Capital Projects Reserve by $37,984 and increase the Upgrade Lighting to LED Project by $37,984 (five affirmative Council votes required to appropriate additional revenue); and
b. In the General Fund, increase the transfer to the Public Buildings Capital Fund and decrease the Capital Projects Reserve by $37,984 (five affirmative Council votes required for the use of unused balances).
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Agreements with ALS and APS and RTC 24-252
2. Amendment No. 1 to Agreement with Advanced Lighting Services, Inc.
3. Amendment No. 1 to Agreement with American Power Solutions, Inc.