REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the Use of City Electric Forces for Public Works at 840 Parker Street, 2291 De La Cruz Boulevard, 3025 Raymond Street, and 2625 Patricia Drive, With an Estimated Cost of $151,043
Report
BACKGROUND
Section 1310 of the Santa Clara City Charter (Contracts on Public Works) states “that every contract involving an expenditure of more than one thousand dollars ($1,000) for the construction or improvement (excluding maintenance and repair) of public buildings, works, streets, drains, sewers, utilities, parks and playgrounds shall be let to the lowest responsible bidder.” The section further states that “the City Council may declare and determine that, in its opinion, the work in question may be performed better or more economically by the City with its own employees, and after the adoption of a resolution to this effect by at least four affirmative votes, it may proceed to have said work done in the manner stated, without further observance of the provisions of this section.”
DISCUSSION
Staff believes that the work described below is better performed with City forces based upon the following factors: (1) the work is limited in size and scope; (2) City forces have knowledge and training in operating and maintaining the electric system that can be leveraged to more economically perform this work; and (3) bidding out the work and contracting with a private entity would not likely result in a lower overall cost or time savings. Therefore, staff recommend that the City Council declares and determines that City forces can better perform the installation of the following electric facilities and approve the use of City forces.
Estimate Number: 40169
Location: 840 Parker Street
Type of Service: New Business (2005)
Description of Work: Installation of a new wooden pole, padmount transformer, and primary wire to provide electricity for a new building at 840 Parker Street.
Estimated Cost: $23,258
Appropriation: Electric Utility Capital Fund (591) Project 2005 - New Business Estimate Work
Source of Revenue: Customer/Developer Contribution
Estimate Number: 40235
Location: 2291 De La Cruz Boulevard
Type of Service: New Business (2005)
Description of Work: Install (1)12 KVA Transformer and connectors, ±200' high voltage UG conductor, and (1) 2000A service meter.
Estimated Cost: $40,463
Appropriation: Electric Utility Capital Fund (591) Project 2005 - New Business Estimate Work
Source of Revenue: Customer/Developer Contribution
Estimate Number: 40640
Location: 3025 Raymond Street
Type of Service: New Business (2005)
Description of Work: Install 2 new padmount transformers.
Estimated Cost: $78,754
Appropriation: Electric Utility Capital Fund (591) Project 2005 - New Business Estimate Work
Source of Revenue: Customer/Developer Contribution
Estimate Number: 41293
Location: 2625 Patricia Drive
Type of Service: New Business (2005)
Description of Work: Remove padmount transformer and underground primary cable serving international swim center.
Estimated Cost: $8,568
Appropriation: Electric Utility Capital Fund (591) Project 2005 - New Business Estimate Work
Source of Revenue: Customer/Developer Contribution
Historically, City staff has performed small project work like this under the use of City Forces exception and justification above. The City prepares estimates based on current cost information and project scope. SVP is developing a process to periodically review completed work to inform future cost estimates.
ENVIRONMENTAL REVIEW
Staff recommends that the City Council determine that the action being considered is exempt from the California Environmental Quality Act (“CEQA”) pursuant to section 15302 (Class 2 -Replacement or Reconstruction) and Section 15303 (Class 3 - New Construction) of Title 14 of the California Code of Regulations as the proposed work involves the replacement of electric facilities and the installation of small electric facilities and equipment.
FISCAL IMPACT
The funds to support the staff time for work performed by Silicon Valley Power (SVP) and related construction materials for the work detailed in this report totaling $151,043 are included in the FY 2026/27 Adopted CIP Budget, in Project 2005 - New Business Estimate Work in the Electric Utility Capital Fund. All of the referenced work will be performed by City SVP staff. Some work associated with encroachment permits may be performed by the Department of Public Works (DPW). DPW costs are recovered through payment of permit fees.
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 or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Determine that the proposed action is exempt from CEQA pursuant to Section 15302 (Class 2 - Replacement or Reconstruction) and Section 15303 (Class 3 - New Construction) of Title 14 of the California Code of Regulations; and
2. Declare and determine in accordance with Section 1310 of the City Charter that the public works located at 840 Parker Street, 2291 De La Cruz Boulevard, 3025 Raymond Street, and 2625 Patricia Drive, with an estimated cost of $151,043, are better performed by the City with its own employees based on the information set forth in this Report to Council and authorize the performance of these public works consistent with this authorization.
Staff
Reviewed by: Nico Procos, Director of Silicon Valley Power
Approved by: Jovan D. Grogan, City Manager