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SR 06-26-2018 3B City Council Report City Council Meeting: June 26, 2018 Agenda Item: 3.B 1 of 4 To: Mayor and City Council From: Susan Cline, Director, Public Works, Architecture Services Subject: Award Construction Contract for the Airport Lighting Retrofit Project Recommended Action Staff recommends that the City Council: 1. Award Bid #SP2523 to Clear Blue Energy Corporation, a California-based company, for construction services for the Airport Lighting Retrofit Project; 2. Authorize the City Manager to negotiate and execute a contract with Clear Blue Energy Corporation, in an amount not to exceed $419,786 (including a $69,965 contingency); and 3. Authorize the Director of Public Works to issue any necessary change orders to complete additional work within contract authority. Executive Summary Until the end of 2028, the City of Santa Monica is responsible for the safe and secure operation of Santa Monica Airport. The Airport Lighting Retrofit Project would enhance the sustainability and the security of Airport facilities by replacing the existing exterior lighting systems and reducing their overall energy consumption. This project would replace incandescent light fixtures located in parking lots and on buildings with Light- Emitting Diode (LED) fixtures. The state-of-the-art replacement fixtures are anticipated to produce significant energy savings and require less maintenance in future years. In addition, parking lot photovoltaic (PV) light fixtures would be replaced. Staff recommends awarding a contract to Clear Blue Energy Corporation for this project in an amount not to exceed $419,786 (including a $69,965 contingency). Discussion Historically, Airport buildings and parking lots utilized incandescent fixtures to light public outdoor spaces. The fixtures at the Santa Monica Airport do not meet the City’s sustainability goals and many are in need of replacement. In 2010, the City of Santa Monica installed solar-powered LED lights and poles in parking lots along Airport 2 of 4 Avenue. They were donated by manufacturer Jenn Feng, and over the years have become inoperable. The Airport Lighting Retrofit Project would include the removal, disposal, and replacement of various lighting and PV fixtures throughout the Airport. These fixtures are located in parking lots, on hangars and building exteriors. Roughly 254 incandescent light fixtures would be converted to LED fixtures, and 41 PV LED fixtures would be operational once again. The replacement of these lighting fixtures would result in operating cost savings in utility bills and would decrease the City’s energy consumption. Roughly estimated, the new LED fixtures consume 52% less energy than the existing fixtures. At current electricity rates, the City can expect to save an estimated $2,100 a year. Additionally, this project would enhance security throughout the Airport by improving visibility, while being dark-sky friendly where possible. All proposed parking lot fixtures will limit upward and visual glare to minimize any potential effects to human sensitivity. Vendor Selection On March 28, 2018, the City published Notices Inviting Bids to deliver construction services to remove various incandescent light fixtures and to replace them with LED fixtures in accordance with City specifications. The bid was posted on the City’s on-line bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. Seventy-five vendors downloaded the bid documents. Nine bids were received and publicly opened on April 26, 2018. Vendor Amount Regreen, Inc. $317,158.88 Luminos Global, Inc. $348,255.00 Clear Blue Energy, Corp. $349,820.89 Crown Electrical, Corp. $390,860.00 Golden Sun Firm & Co., Inc. $398,777.12 PV Guru, Inc. $409,000.00 Alco Construction & Electrical Services, Inc. $448,520.00 Thomas International Company $455,000.00 3 of 4 Baker Electric, Inc. $541,917.39 Bids were evaluated based on the criteria in SMMC 2.24.072, including price, previous experience, quality of product and compliance with City specifications. Clear Blue Energy Corporation is not the lowest bidder, but was deemed the best bidder because their bid included products which best matched the requirements set forth by the City. They also showed experience in successfully completing similar projects of this magnitude, and their quality of work was confirmed through reference checks. Based on these criteria, Clear Blue Energy Corporation is recommended as the best bidder. On May 18, 2018, the City received a bid protest from ReGreen Inc. stating their bid met all submission requirements and was the lowest. Staff consulted with the City Attorney’s office and pursuant to the Municipal Code, the City shall have absolute discretion in determining the applicability and weight or relative weight of some or all of the criteria listed on Santa Monica Municipal Code 2.24.072 and is not required to select the lowest monetary bidder. In this case, determining criteria included cost, previous project experience and reference checks, and fixture submittals. ReGreen Inc. did not submit fixture submittals to the City in their bid submission, and Clear Blue Energy Corp. scored higher in overall bid evaluation. Therefore, staff recommends Clear Blue Energy Corp. as the best bidder. Financial Impacts and Budget Actions The contract to be awarded to Clear Blue Energy Corporation is for an amount not to exceed $419,786 (including contingency). Funds are available in the FY 2017-18 Capital Improvement Program budget in the Airport Fund at account C339188.589000/C5706760.689000 - Airport Lighting Retrofit. 4 of 4 Prepared By: Phillip Ticun, Construction Specialist Approved Forwarded to Council Attachments: A. Clear Blue Energy Oaks Initiative Form REFERENCE: Contract No. 10700 (CCS)