REPORT TO COUNCIL
SUBJECT
Title
Action on Award of Purchase Orders to Nor-Cal Overhead, Inc. for Citywide Automatic Overhead/Rollup Door Preventative Maintenance, As-Needed Repair, and Replacement Services
Report
BACKGROUND
The Department of Public Works (DPW) is responsible for maintaining and repairing approximately 1,100,000 square feet of buildings located throughout the City. These facilities support essential operations for Fire, Police, Silicon Valley Power, Library, Parks and Recreation, and the Corporation Yard.
To effectively handle the required workload for maintaining these facilities, DPW contracts with specialized vendors to perform a variety of maintenance and repair services. One of these services is the inspection, maintenance, and repair of automatic overhead and rollup doors. These doors are vital to ensuring facility safety, security, and access, particularly at emergency response facilities such as Fire and Police stations, where doors must operate safely and quickly under urgent conditions.
The City has maintained contracts for overhead and rollup door services for many years to ensure continued operation and safety of its facilities. The current agreement expires on December 31, 2025.
DISCUSSION
Pursuant to Section 2.105.140(d) of the City of Santa Clara Code, a formal Request for Bids (RFB) was conducted as the solicitation method for this procurement with award to the lowest responsive and responsible bidder.
On July 17, 2025, staff published the RFB for Automatic Overhead and Rollup Door Preventative Maintenance and As-Needed Repair and Replacement services on the City’s e-procurement platform. The RFB was open to all qualified vendors capable of servicing the City’s facilities and was viewed and downloaded by 27 vendors. In addition, staff conducted direct outreach to additional vendors. Despite these efforts, only one bid was received by the bid deadline from Nor-Cal Overhead, Inc. After assessing responsiveness and responsibility, staff recommends awarding the purchase order to Nor-Cal Overhead, Inc. (Nor-Cal) as the sole responsive and responsible bidder.
Compensation under the Purchase Order consists of a fixed annual fee for preventative maintenance at each site, time and materials for as-needed repair services, and a 10 percent markup on parts and materials. Unit pricing and hourly rates will be fixed for the initial one-year term. Staff has reviewed Nor-Cal’s bid pricing and determined it to be fair and reasonable.
The maximum compensation for the initial term is estimated at $150,000. After the initial term, price adjustments may be considered if properly substantiated by the Contractor and approved by the City. The Purchase Order includes four, one-year options to extend the term through December 31, 2030, assuming all options are exercised. Staff is requesting authorization to exercise these options and increase the maximum compensation by up to $600,000 for a total aggregate not-to-exceed amount of $750,000 over the full term. Staff will manage expenditures throughout the full term, allocating funds as needed, provided that the total compensation does not exceed the authorized amount.
Prevailing wage requirements are included in these purchase orders.
ENVIRONMENTAL REVIEW
The action being considered is exempt for the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15301 “Existing Facilities” as the activity consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities mechanical equipment or topographical features involving negligible or no expansion of use beyond that existing at the time of the lead agencies determination.
FISCAL IMPACT
The not-to exceed amount to be paid to the Contractor over the initial one-year term is $150,000. This amount is an estimate based on past years’ expenditures for as-needed services, as well as planned projects to be completed during the initial one-year term. The total aggregate not-to-exceed amount to be paid to the Contractor for all option years is estimated to be $600,000, inclusive of compensation increases consistent with market conditions. Most costs will be charged to the relevant departments and use their respective funding sources based on the locations where the services are rendered. Sufficient budget is available to fund anticipated rollup door repair services in FY 2025/26. Costs beyond FY 2025/26 are subject to appropriation of funds by the City Council.
COORDINATION
This report has been coordinated with the Finance Department 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 or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Determine that the proposed actions are exempt from CEQA pursuant to Section 15301 (Existing Facilities) of Title 14 of California Code of Regulations;
2. Authorize the City Manager or designee to execute Purchase Orders with Nor-Cal Overhead, Inc. for Citywide Automatic Overhead and Rollup Door Preventative Maintenance, As-Needed Repair and Replacement Services for an initial term starting on January 1, 2026 and ending on December 31, 2026 for a maximum amount not-to-exceed $150,000, subject to the appropriation of funds and approval as to form by the City Attorney; and
3. Authorize the City Manager or designee to take any actions as necessary to implement and administer the Purchase Orders, and to (a) exercise up to four one-year options to extend the term through December 31, 2030, (b) increase the maximum compensation by $600,000 for a total aggregate not-to-exceed amount of $750,000 over the full term, (c) add or delete services consistent with the scope of services, (d) adjust future rates based on market conditions, and (e) make de minimis changes, subject to the appropriation of funds and approval as to form by the City Attorney.
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Jovan D. Grogan, City Manager