REPORT TO COUNCIL
SUBJECT
Title
Action on 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
The Department of Public Works (DPW) Facilities Division (Facilities) oversees maintenance and repairs for approximately 1,100,000 square feet of buildings throughout the City. To provide services in a timely and efficient manner, Facilities periodically uses various vendors to assist with the workload.
California Assembly Bill 2208 (AB 2208) was signed into law in September 2022 and phases in a ban that will prohibit the sale of fluorescent bulbs in California. Fluorescent light bulbs, including compact and linear types, contain mercury which poses both environmental and health concerns. AB 2208 is being implemented in two phases.
Phase 1: Beginning January 2024, screw or bayonet base type compact fluorescent lamps will be prohibited for sale or distribution in California.
Phase 2: Beginning January 2025, pin-base type compact fluorescent lamps will be prohibited for sale and distribution in California.
Many City buildings utilize pin-base type compact fluorescent lamps. To comply with AB 2208, the City will need to begin retrofitting or replacing fixtures to LED throughout City buildings. Energy savings rebates and potential loans are being considered in partnership with Silicon Valley Power (SVP) to help offset the expenses related to AB 2208.
The scope of services for the LED Lighting Retrofit and Replacement Project (Project) will include a site survey of numerous City buildings to determine the best course of action and then replacing or retrofitting linear fluorescent fixtures with LED fixtures. The project will be implemented based on available funding in the budget, with work commencing in the largest buildings such as City Hall, the Police Department, libraries, the Senior Center, the Community Recreation Center, and others.
DISCUSSION
Pursuant to City Code Section 2.105.140(c), a formal Request for Proposals (RFP) was conducted, with the award recommendation based on “best value.” On March 13, 2024, staff published the RFP for the LED Lighting Retrofit and Replacement Project on the City’s e-procurement platform. A total of nine proposals were received from the following firms:
1. Advanced Lighting Services Inc.
2. American Power Solutions Inc.
3. American Wholesale Lighting Inc.
4. Brighton Energy Inc.
5. Cupertino Electric Inc.
6. Everwatt Lights LLC
7. MM Energy and Lighting
8. Sactown Contractors Corp
9. Star Energy Management Inc.
Proposals were independently reviewed by a three-member evaluation team made up of DPW representatives. Advanced Lighting Services Inc., American Power Solutions Inc., American Wholesale Lighting Inc., and Star Energy Management Inc. were asked to participate in oral interviews.
Staff recommends awarding agreements to Advanced Lighting Services Inc. (ALS) and American Power Solutions Inc. (APS) for having submitted the best value proposals. Both companies have committed enough resources for the initial phase of the Project. Work in this phase is scheduled to begin in Summer 2024, with an estimated completion date of early 2025. Staff will then evaluate funding options to complete additional City buildings. It is anticipated that additional funding will also be requested during the budget process in future years.
Under the proposed agreements, ALS and APS will provide citywide LED retrofit and replacement services on a per-building request basis. For each building, both contractors will provide an assessment, which will include a count of retrofits or replacements, and a proposal to perform the work based on the hourly rates and pricing for the bulbs and fixtures established in the agreements. The contractor with the lowest total cost and most advantageous project timeline will be awarded the work for that designated building.
Rates are fixed for the initial two-year term and are subject to price adjustments thereafter. Contractors’ requests for rate increases must be tied to a relevant market index and are subject to the City's approval. After the initial term, the City has a one-year option to extend the term of the agreements. Prevailing wages are included in these agreements.
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
The amount to be paid to ALS and APS for the initial two-year term shall not exceed a combined aggregate amount of $500,000. In the Adopted FY 2024/25 and FY 2025/26 Capital Improvement Program Budget, funding is budgeted in the City Buildings - Upgrade Lighting to LED Project in FY 2024/25 for anticipated LED retrofit and replacement services. Costs beyond FY 2024/25 are subject to appropriation of funds by the City Council.
COORDINATION
This report has been coordinated with the Finance Department 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 <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager to negotiate and execute agreements with Advanced Lighting Services Inc. and American Power Solutions Inc. to provide Citywide LED Lighting Retrofit and Replacement Services for an initial two-year term starting on or around July 15, 2024 and ending on or around July 14, 2026, with an aggregate maximum compensation not-to-exceed $500,000, in final forms approved by the City Attorney; and
2. Authorize the City Manager to execute amendments to the agreement to make minor modifications and to extend the term up to one year after the initial term, subject to the appropriation of funds and in final forms approved by the City Attorney.
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Draft Agreement with Advanced Lighting Services Inc.
2. Draft Agreement with American Power Solutions Inc.