REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to Negotiate and Execute an Agreement with dataVoice International for an Electric Outage Management System and Interactive Voice Response System for Silicon Valley Power
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City of Santa Clara’s Electric Department, Silicon Valley Power (SVP), provides electric service to over 65,000 customers. Electricity is delivered to customers through substations, receiving stations, over 200 miles of overhead distribution lines, and nearly 400 miles of underground services. SVP is renowned for its reliable service, with a 99.9716% Average Service Reliability Index. To further improve customer communication during outages, SVP is seeking an Outage Management System (OMS). An OMS will assist in detecting outage sources and restoring service efficiently.
Interactive Voice Response (IVR) systems, which are automated telephonic systems, will work alongside the OMS to enhance communication during outages by providing SVP the ability to interact with multiple customers simultaneously. By implementing both OMS and IVR systems, SVP can better detect outages, respond more efficiently, and communicate more effectively with customers, leading to improved outage management and higher customer satisfaction.
DISCUSSION
The Santa Clara City Code (City Code) authorizes the use of cooperative purchasing agreements. Specifically, under Section 2.105.270(d) of the City Code, the City may, without observing formal bidding requirements, “Contract directly with a vendor at a price and on terms obtained through a competitive bidding process of another public agency, even if the City has not joined with the public agency in such competitive process or purchase. Any such competitive process shall meet or exceed the competitive bidding process of the City, as determined by the Purchasing Division Manager.” The Purchasing Division Manager has determined that the following competitive process meets or exceeds the City’s standards.
In June 2019, the City of Roseville published a Request for Proposals (RFP) for OMS and IVR systems. Seven vendor proposals were received and evaluated based on firm qualifications, experience, project plan, system requirements, and integration capabilities. Following product demonstrations by the top three scoring vendors, the City of Roseville selected dataVoice International Inc. (dataVoice) to provide OMS and IVR systems. The City of Roseville City Council authorized the execution of an agreement with dataVoice in 2020, and later amended the approved agreement to extend the term to July 31, 2026.
Staff is recommending entering into an agreement with dataVoice starting on or around September 15, 2024, through July 31, 2026, to implement a cloud-based version of the OMS and IVR systems. Under the proposed agreement with dataVoice, the maximum compensation is $630,316.00, which includes one-time implementation and ongoing subscription fees and optional services/software modules.
Staff is currently evaluating the on-premises solution for potential future implementation. Therefore, staff is seeking City Council authorization to execute amendments to the agreement should the decision be made to proceed with this option. Additionally, staff is requesting authority to extend the term of the agreement in alignment with any extensions made by the City of Roseville, not to exceed an additional five years through July 31, 2031. The estimated additional amount required to implement the on-premise solution, extend the term through July 31, 2031, and purchase additional licenses, subscriptions, and professional services to meet unanticipated system requirements is $519,472 for a total maximum compensation of $1,149,788.
The costs are detailed in Table 1 below.
Table 1
|
Cost Element |
Total |
|
One-Time Implementation Fee |
$368,558.75 |
|
Year 1 Subscription Fees (9/1/24 to 7/31/25) |
$89,199.00 |
|
Year 2 Subscription Fees (8/1/25 to 7/31/26) |
$90,343.00 |
|
Optional Services/Software Modules |
$82,215.25 |
|
Contract Not to Exceed Total |
$630,316.00 |
|
Estimated Additional Amount |
$519,472.00 |
|
Maximum Not-to-Exceed Compensation |
$1,149,788.00 |
Approval of the recommendations will enable SVP to implement both the OMS and IVR systems which are specifically designed for external customer outage communication and internal SVP outage communication, tracking, and reporting. Additionally, these systems will allow for real-time communication from the field to stakeholders and will include features such as web integration and text communications.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to section 15061(b)(3) of the Title 14 of the California Code of Regulations in that there is no possibility that the proposed actions will have a significant effect on the environment as the OMS and IVR solution will primarily assist with outage detection and communication.
FISCAL IMPACT
The compensation under the proposed contract with dataVoice International is for an amount not to exceed $500,000 for Fiscal Year 2024/25 including licensing, implementation and maintenance for an electric OMS and IRV systems for outage management and customer communications. Sufficient funds are available in the Electric Utility Capital Fund in the Operations and Planning Technology project in FY 2024/25. Funding for future years will be brought forward as part of the regular budget process.
COORDINATION
This report has been coordinated with the Finance Department and 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 public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager or designee to negotiate and execute an agreement with dataVoice International, Inc. (Agreement) for the purchase and implementation of an Outage Management System and Interactive Voice Response System starting on or around September 1, 2024, and ending on July 31, 2026, with a maximum compensation not-to-exceed $630,316, subject to the appropriation of funds and approval as to form by the City Attorney; and
2. Authorize the City Manager or designee to take any actions as necessary to implement and administer the Agreement and to negotiate and execute amendments to the Agreement to (a) extend the term of the Agreement in alignment with any extensions made by the City of Roseville, not to exceed an additional five years through July 31, 2031, (b) increase the maximum compensation by up to an additional $519,472 for a total maximum compensation amount not-to-exceed $1,149,788, and (c) execute future amendments to the Agreement required to meet SVP’s system requirements, subject to the compensation limits, appropriation of funds, and approval as to form by the City Attorney.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Jovan D. Grogan, City Manager