REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to Negotiate and Execute Amendments to the Agreements for Services with Geocon Consultants, Inc. and Ninyo and Moore Geotechnical & Environmental Sciences Consultants to Provide On-Call Material Testing and Special Inspection Services for Silicon Valley Power
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City of Santa Clara’s Electric Utility Department, Silicon Valley Power (SVP), continues to experience significant electric load growth driven by increased demand from customers. SVP has a long-term capital improvement strategy to expand and modernize its electric infrastructure to meet this growth. As previously discussed with the City Council, SVP’s customer demand for electric power is expected to nearly double over the next decade.
To ensure compliance with project specifications, SVP standards, building codes, industry best practices, and other applicable regulations, SVP contracts with third-party consulting firms to perform materials testing and special inspections primarily during project construction. These services include geotechnical compaction testing, concrete strength testing, masonry testing, structural steel inspections, welding inspections, asphalt testing, and other tests or inspections that may be required for a specific project.
DISCUSSION
In 2023, pursuant to Section 2.105.140(c) of the Santa Clara City Code, a formal Request for Proposals (RFP) was conducted for On-Call Material Testing and Special Inspection Services, with the award recommendation based on “best value.”
The RFP was published on the City’s e-procurement system, and five proposals were received by the submission deadline. The proposals were independently evaluated by a three-member evaluation panel against the criteria and weights published in the RFP, which included experience, technical capability, and cost. The panel selected Ninyo and Moore Geotechnical & Environmental Sciences Consultants (Ninyo) and Geocon Consultants, Inc. (Geocon) as the highest ranked firms to perform these services.
Thereafter, the City Manager executed agreements with both Ninyo and Geocon, each with a maximum compensation of $250,000 and terms ending on March 31, 2028, in accordance with the City Manager’s signature authority under Section 2.105.300 of the Santa Clara City Code.
After further review of the anticipated service needs especially related to upcoming capital projects, staff recommend authorizing the City Manager to negotiate and execute amendments to both agreements to increase their maximum compensation up to an aggregate amount of $2,000,000. Because Ninyo is the highest ranked firm and has been awarded all projects to date, staff anticipate negotiating and executing an amendment to the agreement with Ninyo and Moore first.
Given the potential for increased service needs due to unanticipated projects or regulatory changes, staff is seeking authorization for the City Manager to negotiate and execute further amendments to these agreements. Approval of these recommendations will ensure that there is sufficient authorization to maintain project schedules and meet project needs.
ENVIRONMENTAL REVIEW
Staff recommends that the City Council determine that the proposed actions are exempt from the California Environmental Quality Act (“CEQA”) pursuant to sections 15061(b)(3) of Title 14 of the California Code of Regulations as it can be seen with certainty that there is no possibility that the consultant services will have a significant effect on the environment. The proposed actions do not authorize any construction projects. Any such projects will require a separate CEQA determination.
FISCAL IMPACT
Sufficient funds are available in the FY 2025/26 Electric Utility Capital Fund for the specific project for which services are required and in the Electric Utility Operating Fund where required.
Budget for future years will be requested through the biennial process.
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
Authorize the City Manager or designee to negotiate and execute amendments to the agreements with Ninyo and Moore Geotechnical & Environmental Sciences Consultants and Geocon Consultants, Inc. to provide on-call material testing and special inspection services for Silicon Valley Power for a five-year term ending on March 31, 2028, to (a) increase the aggregate maximum compensation to $2 million, (b) add or delete services consistent with the scope of services, (c) adjust future rates based on market conditions, (d) make de minimis changes, and (e) extend the term through March 31, 2033, to be funded by the Silicon Valley Power Capital or Operating Fund as applicable, subject to the appropriation of funds, and the review and approval as to form by the City Attorney.
Staff
Reviewed by: Nico Procos, Acting Director of Silicon Valley Power
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Agreement with Geocon Consultants, Inc.
2. Agreement with Ninyo and Moore Geotechnical & Environmental Sciences Consultants
3. Amendment No. 1 to Agreement with Ninyo and Moore Geotechnical & Environmental Sciences Consultants