STAFF REPORT MEETING DATE: November 18, 2014 TO: FROM: City Council Russell Thompson, Public Works Director Michael Hanlon, Principal Engineering Technician 922 Machin Avenue Novato, CA 94945 (415) 899-8900 FAX (415) 899-8213 www.novato.org SUBJECT: LED STREETLIGHT RETROFIT- PHASE III REQUEST Consider rejecting all bids and authorizing re-bid for the LED Streetlight Retrofit - Phase III, CIP 15-010. RECOMMENDATION Reject all bids and authorize rebid. DISCUSSION The LED Streetlight Retrofit Phase III will complete the conversion of all streetlights in Novato to energy efficient LED streetlights. Included in the project are the decorative, ornamental and other types of exterior lights on all City owned properties, including parks, sports facilities, etc. On September 24, 2014, the LED Streetlight Retrofit Phase III project was advertised for bid. On October 28, 2014 10 bids were received and DC Electric was declared the apparent lowest responsible bidder, although one irregularity was noted in their bid. On October 30, 2014 the City received a bid protest from the apparent second low bidder, Tanko Lighting, focused on irregularities in the DC Electric bid. On October 31, 2014 the City received a second bid protest from the apparent 3 rd low bidder, WBE, citing a number of concerns with the DC Electric bid and the Tanko Lighting bid. The DC Electric bid included one product substitution from the recommended products listed in the specifications. The Tanko Lighting protest is based on the product specification of the DC Electric substitution. Upon further review, staff determined the DC Electric product substitution did not meet specifications. The second bid protest, from WBE, lists several issues regarding DC Electric and Tanko Lighting. WBE protests the percentage of work that Tanko Lighting performs. Section 8-1.01 of the Standard Specifications states The Contractor shall perform, with the Contractor s own organization, contract work amounting to not less than 50 percent of the original contract cc14_182 1 1
price. Based on the submitted bid it is unclear if Tanko Lighting meets this requirement. They listed two electrical subcontractors in their bid. WBE also notes that the Tanko Lighting bid schedule contains qualifying factors on their bid pricing. This is not permitted. The contractor is required to bid the bid items as detailed on the bid schedule. FISCAL IMPACT Rebidding the project will provide the best opportunity to complete the project at a fiscally responsible value to the City. ALTERNATIVES 1. Reject the bid protests filed by Tanko Lighting and WBE and award the contract to DC Electric. Not recommended by staff. 2. Find the DC Electric bid non-responsive, reject the portion of the bid protest pertaining to Tanko Lighting filed by WBE, and award the contract to Tanko Lighting. Not recommended by staff. 3. Find the DC Electric and Tanko Lighting bids non-responsive and award the contract to WBE Not recommended by staff. 4. Reject all bids and do not authorize a rebid and provide direction to staff regarding project disposition. ATTACHMENTS 1. Bid abstract 2. Tanko letter of protest 3. WBE letter of Protest 4. CIP Budget 2 2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
LED Streetlight Retrofit Phase 3 Project No.: 15-010 Base Code: 431 Funded Project Objective: To replace all remaining non-led street light bulbs with energy efficient LED fixtures. Project Description and Background: In Fiscal Year 2009/10 the City received federal stimulus energy block grant funding and participated in a PG&E on-bill financing loan to convert approximately on third of the City's street lights to more energy efficient LED fixtures. The project would complete the conversion project for the remaining 2,500 lights including cobra heads, globe fixtures on Grant Avenue and lights in city owned parking lots. The reduced operating cost of street lights with LED bulbs, including rates paid for power and maintenance is such that the project has a less than ten year payback. In addition to LED bulbs programmable photocells that shut some street lights off after midnight would be installed consistent with the deployment of the same in the first two phases of the project. Basis for Cost Estimate: The costs are based on vendor estimates and recent similar bids by other agencies. Basis for Schedule: The project would commence as early as is practical in 14/15, while PG&E rebates are still available. Revenue Considerations: Measure F is the proposed funding source. This project will result in on-going operations savings, and has a payback period of less than ten years. Sub Prior to Project Expenditure Objects 14/15 14/15 15/16 16/17 17/18 18/19 Total Proj Develop 410 60,000 60,000 Construction 430 1,060,000 1,060,000 Construction Mgt 440 80,000 80,000 TOTAL 1,200,000 0 0 0 0 1,200,000 Sub Prior to Funding Source Objects 14/15 14/15 15/16 16/17 17/18 18/19 Total Measure F (201) 410 60,000 60,000 Measure F (201) 430 1,060,000 1,060,000 Measure F (201) 440 80,000 80,000 TOTAL 1,200,000 0 0 0 0 1,200,000 CARRYOVER 0 PROPOSED E-41 5/28/2014 25