REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment No. 1 to the Agreement for Services with Power Systems Professionals, Inc. dba Power Pros to provide Commission and Testing Services for Silicon Valley Power [Council Pillar: Deliver and Enhance High Quality Efficient Services and Infrastructure]
Report
BACKGROUND
The City of Santa Clara’s Electric Department, Silicon Valley Power (SVP), has undertaken a multi-year capital construction program to expand, rebuild, and reinforce the SVP electric transmission and distribution system over the next several years. These projects include rebuilding existing substations, upgrading components in existing substations, and adding new substations which requires commissioning and functional performance testing of the electrical equipment, devices, and operating systems.
Power Systems Professionals, Inc. dba Power Pros (Power Pros) were selected through a request for proposal selection process. On August 18, 2015, Council approved a five year services agreement with Power Pros to provide commissioning and testing services for SVP substation projects.
DISCUSSION
The existing five (5) year agreement is set to expire in August of 2020. Several of the projects include the rebuilding of Serra Substation and Fairview Substation are underway and are now anticipated for completion in mid-2022. Staff recommends amending the expiration date of the Agreement for an additional two years through August 2022 to allow sufficient time for all commissioning and functional performance testing work required for these projects to be completed.
A Request for Proposals (RFP) will be prepared for any future projects. However, having the possibility of a new consultant working on current projects already underway can cause significant issues and concerns. Consideration of a new consultant for these projects would cause additional cost and extend the schedule to transition the projects. Staff also has concerns regarding transitioning of existing work product and how that could affect the implementation of the projects. The extension also makes financial sense as the current rates for the contract are being maintained.
ENVIRONMENTAL REVIEW
This action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
The agreement has a not to exceed amount of $2,831,200 and is funded by the Electric Utility Capital Fund. No additional funds are requested to be added in this Amendment No. 1.
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>.
RECOMMENDATION
Recommendation
1. Authorize the City Manager to execute Amendment No. 1 to the Agreement for the Performance of Services with Power Systems Professionals, Inc. dba Power Pros to extend the term of the Agreement for two additional years through August 2022;
2. Authorize the City Manager to make minor modifications to Amendment No 1, if necessary; and
3. Authorize the City Manager to add or delete services consistent with the scope of the agreements, and allow future rate adjustments subject to request and justification by contractor or consultant and approval by the City, subject to the appropriation of funds.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Original Agreement for Services
2. Amendment No. 1