REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to Execute an Agreement with Intelligent Technologies and Services, Inc. for Maintenance, Inspection, and Testing Services for Silicon Valley Power’s Fire Alarms, Smoke Detectors, Fire Suppression, and Extinguisher Systems
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City’s Electric Utility, Silicon Valley Power (SVP), is responsible for maintaining several facilities including two power plants and 35 substations. These facilities are equipped with over 400 fire alarms, smoke detectors, fire suppression, and extinguisher systems. All of these systems require regular maintenance, inspection, and testing services (performed quarterly, semiannually, or annually) to ensure proper operation and compliance with safety standards.
The services are required under regulations established by the National Fire Protection Agency (NFPA) and the International Electrotechnical Commission (IEC). Regular maintenance is crucial to identify and correct system issues, respond to regulatory changes, and ensure the systems are functioning properly. To meet these safety and compliance requirements, SVP contracts with qualified vendors to perform these critical services.
DISCUSSION
Pursuant to City Code Section 2.105.140(c), a formal Request for Proposals (RFP) was conducted, with the award recommendation based on “best value.” The RFP for Fire Suppression, Alarm, and Gas Detection Preventative Maintenance, Inspection, and Testing Services was published on the City’s e-procurement system. Four proposals were received from the following firms:
• ADT Commercial LLC
• HCI Systems, Inc.
• Intelligent Technologies and Services Inc. (Intelligent)
• ORR Protection Systems, Inc.
The proposals were independently evaluated by a three-member evaluation panel against the criteria and weights published in the RFP, including experience, technical capability, and cost. Staff conducted a Best and Final Offer (BAFO) with Intelligent, resulting in a cost savings of approximately $18,000 annually for the City.
At the conclusion of the evaluation, the panel recommended Intelligent as the best value proposal. Intelligent demonstrated extensive experience in providing fire suppression, alarm, and gas detection services.
Summary of Proposed Agreement: The proposed agreement with Intelligent provides maintenance and support services for fire alarms, smoke detectors, fire suppression, and extinguisher systems across SVP facilities. The initial term is five years starting on September 1, 2025, and ending on August 31, 2030, with a maximum compensation of $1,500,000.
The agreement includes fixed rates for routine maintenance, inspection, and testing services for existing systems and the rates for each service will remain unchanged for the first three years. After that, Intelligent may request a price adjustment, capped at 2% per year. The agreement includes provisions to add new substations or systems and a process for approval of repair and other as-needed services which will be quoted separately and are included in the maximum compensation.
Prevailing wages apply to certain work under the agreement. The City will only pay for actual services rendered.
The proposed agreement includes a one-year option to extend the term through July 31, 2031.
Table 1 - Compensation Summary
|
Cost Elements |
Amount |
|
Routine Services: Years 1 - 5 (~$160,000 per year) |
$800,000 |
|
As-Needed Services: Years 1 - 5 (~$140,000 per year) |
$700,000 |
|
Total (Initial 5-Year Term) |
$1,500,000 |
|
Year 6 Services + Contingency Funds |
$500,000 |
|
Maximum Compensation (6 Years) |
$2,000,000 |
ENVIRONMENTAL REVIEW
Staff recommend that the City Council determine that the actions being considered are exempt from the California Environmental Quality Act (“CEQA”) pursuant to section 15301 of Title 14 of the California Code of Regulations as the services involve maintenance and repair of existing facilities and mechanical equipment.
FISCAL IMPACT
Sufficient funds are available in the FY2025/26 Adopted Operating Budget in the Electric Utility Operating Fund and Capital Budget where applicable for as needed services. Funding for future years will be requested through the normal budget process.
COORDINATION
The 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, or by email to: clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov>.
RECOMMENDATION
...Recommendation
1. Determine that the proposed actions are exempt from CEQA pursuant to Section 15301 (Existing Facilities) of Title 14 of the California Code of Regulations;
2. Authorize the City Manager or designee to negotiate and execute an agreement with Intelligent Technologies and Services Inc. (Agreement) for maintenance, inspection, and testing services for Silicon Valley Power’s fire alarm, smoke detectors, fire suppression systems, and extinguishers for a five-year term starting on September 1, 2025, and ending on August 31, 2030, with a maximum compensation not to exceed $1,500,000, subject to the appropriation of funds and the review 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 Agreement, and to negotiate and execute amendments to the Agreement to (a) exercise a one-year option to extend the term of the agreement through July 31, 2031, (b) increase the maximum compensation by $500,000 for a total maximum compensation of $2,000,000 for the six-year term to be funded by the SVP Operating or Capital Fund as applicable, (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 the review and approval as to form by the City Attorney.
Staff
Reviewed by: Nico Procos, Director of Silicon Valley Power
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Proposed Agreement with Intelligent Technologies and Services Inc.