RECOMMENDATION

Report on bids and award of contract for the Street Lights Strong Neighborhoods 2003 Project to the low bidder, Pacific Electric Company, in the amount of $147,401, and approval of a contingency in the amount of $14,700.

BACKGROUND

The Street Lights Strong Neighborhoods 2003 Project involves the installation of new street lights and the upgrade of existing lights in the Edenvale/Great Oaks and Washington Strong Neighborhood Areas. The locations in the Edenvale/Great Oaks and Washington Strong Neighborhood Areas were defined and prioritized by the Parks, Recreation and Neighborhood Services Department staff based on discussions with neighborhood residents. The locations of street lighting improvements are shown on location maps in Attachments 1 and 2.

The project scope provides 9 new street lights and 3 upgrades of existing street lights in the Edenvale area. The project scope also provides 35 new street lights and 47 upgrades of existing street lights in the Washington area.

The scope of work for this project involves installing new electroliers, replacing, rewiring and relocating existing electroliers, upgrading luminaires, installing conduits, conductors, aerial power cables and pull boxes. Construction is scheduled to begin in August with completion in November.

ANALYSIS

Bids were opened on May 13, 2003 with the following results:

Contractor	Bid Amount	Variance Amount	Over/(Under) Percent
Giacalone Electrical Services, Inc.	$232,000.00	$61,400.00	36
(Gilroy)
Brown and Fesler, Inc.	205,554.50	34,954.50	21
(Livermore)
Prism Engineering, Inc.	187,819.60	17,219.60	10
(Hollister)
Engineer's Estimate	170,600.00	---	---
Pacific Electric Company	147,401.00	(23,199.00)	(14)
(San José)

The low bid submitted by Pacific Electric Company is 14 percent under the Engineer’s Estimate. Staff considers this reasonable for the work involved.

Council Policy provides for a standard contingency of ten percent on public works projects involving street lighting. The standard contingency is appropriate for this project.

PUBLIC OUTREACH

Staff has distributed preliminary engineering notices in English and in Spanish to the residents near the project locations and responded to comments and questions regarding the project. Since this project is on the Top Ten list for both the Washington SNI and Edenvale/Great Oaks SNI areas, neighborhood and community meetings were held to gather input. Staff is available to attend future community meetings upon request.

To solicit contractors, this project was listed on the City's Internet Bid Line and advertised in the San José Mercury News and San José Post Record. Bid packages for all Department of Public Works construction projects are provided to various contractor organizations and builder's exchanges.

COORDINATION

This project has been coordinated with the San José Redevelopment Agency, the Pacific Gas and Electric Company, the Departments of Parks, Recreation and Neighborhood Services, Transportation, Finance, and Planning, Building and Code Enforcement, and City Attorney’s Office and City Manager’s Budget Office.

COST IMPLICATIONS

1. AMOUNT OF RECOMMENDATION: $147,401

2. COST OF PROJECT:

Project Delivery $ 67,899

Construction 147,401

Contingency 14,700

TOTAL $230,000

3. SOURCE OF FUNDING: 441 – Community Development Block Grant Fund

4. FISCAL IMPACT: This project is consistent with the Council-approved Budget Strategy Economic Recovery section in that it will spur construction spending in our local economy. Minimal operating and maintenance costs in the amount of $5,270 are expected when the project is completed.

BUDGET REFERENCE

Fund #	Appn #	Appn. Name	RC #	Total Appn.	Amt. for Contract	Adopted Budget Page	Last Budget Action (Date, Ord. No.)
441	4513	Streetlighting: Washington Area	122515	210,000	110,401	Page 694	(7/1/02, Ord. No. 26674)
441	4511	Streetlighting: Edenvale Area (Phase I)	122535	56,000	37,000	Page 694	(7/1/02, Ord. No. 26674)
		Total		266,000	147,401

CEQA

Exempt, PP01-02-023.

KATY ALLEN

Director, Public Works Department