REPORT TO COUNCIL
SUBJECT
Title
Action on Agreement for Services with NAZ & CO., doing business as True Blue Automation Services, for Electrical Support Services for the City's Water, Sewer and Storm Assets
Report
COUNCIL PILLAR
Deliver and Enhance High Quality and Efficient Services and Infrastructure
BACKGROUND
The Water & Sewer Utilities Department (Department) is responsible for maintaining 26 water well sites, four water storage tank sites, seven sewer pump stations, and 22 storm pump stations. The associated equipment supporting the operation of the utility sites includes control panels, generators, motors, pumps, communication equipment, breakers, relays, and various electrical components. The Department lacks expertise in the area of electrical service required to maintain the safe operation of the utility sites. A licensed electrical contractor would assist staff in troubleshooting, testing, calibrating, repairing, and installing site equipment and controls as required.
DISCUSSION
On February 9, 2021, staff published a Request for Proposal (RFP) for electrical support services using BidSync, the City’s e-procurement tool, and reached out directly to known companies that provide electrical support services to encourage proposal submissions. A total of 43 companies viewed the RFP, and one proposal was received from NAZ & CO., doing business as True Blue Automation Services, by the proposal due date of March 16, 2021.
After a thorough review and evaluation of the sole proposal from True Blue Automation Services, staff determined that the proposal satisfied all the requirements set forth in the RFP and that the proposed rates are fair and reasonable based on the prevailing wage rates set by the Department of Industrial Relations for electricians. True Blue Automation Services has proven experience in providing as-needed electrical support services with similar scopes to the City and other private and public utility businesses.
The initial term of the proposed agreement is one year starting on or about July 1, 2021 and ending on June 30, 2022, with a maximum compensation of $300,000. The City has the option to exercise four one-year renewals to extend the term through June 30, 2026. Contractor may request adjustments to its hourly rates starting July 1, 2024. Any rate adjustments must be tied to the Consumer Price Index.
Contractor’s compensation under the agreement is based on fixed hourly rates. Prior to commencement of any work, the contractor will be required to provide the City with a not-to-exceed estimate cost of the work. The contractor is required to receive pre-authorization from the City if they exceed their estimate. The City will be invoiced in arrears at the fixed hourly rates for the services. The hourly rates are fully loaded and include wages, overhead, general and administrative expenses, profit, tools, and most equipment required for the work. Any specialty equipment or materials will be invoiced at contractor’s actual cost plus a 10% markup.
ENVIRONMENTAL REVIEW
The action being considered is exempt from formal environmental review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15301(b) (Class 1 - “Existing Facilities”) as the activity consists of the operation, repair, and maintenance of existing public structures, facilities, and mechanical equipment, including publicly-owned utilities, involving negligible or no expansion of the existing use.
FISCAL IMPACT
The cost of the proposed work shall not exceed $300,000 during the initial one-year term. The not to exceed amount was established based on budgeting projections developed from historical spend and future needs for work of similar nature. There is sufficient funding in the Water & Sewer Utilities adopted operating budget to cover $209,700 of the contract. This will be split with $66,000 funded by existing appropriations in the Sewer Utility Fund and $143,700 covered by the Water Utility Fund. The remaining $90,300 will be funded with the existing appropriations in the Storm Pump Motor and Control Maintenance, Repair and Replacement project in the Storm Drain Capital Fund. The allocations dedicated to each utility fund was coordinated between the Water and Sewer Utilities and Public Works Department.
COORDINATION
This report has been coordinated with the Finance Department, the Department of Public Works, 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><mailto: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 execute an agreement with NAZ & CO., doing business as True Blue Automation Services, for electrical support services for the City’s water, sewer, and storm assets, for an initial one-year term starting on or about July 1, 2021 and ending on June 30, 2022, with maximum compensation not-to-exceed $300,000 and to make minor adjustments to the agreement to facilitate execution; and
2. Authorize the City Manager to exercise up to four one-year options to extend the term of the agreement after the initial one-year term through June 30, 2026, subject to the annual appropriation of funds.
Staff
Reviewed by: Gary Welling, Director, Water & Sewer Utilities Department
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Agreement for Services between the City of Santa Clara and NAZ & CO., dba True Blue Automation Services