REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Report from the Stadium Authority for Action Regarding Stadium Manager’s Request to Execute Amendment No. 1 to the Agreement with Cupertino Electric, Inc. for the Primary Main Switch Gear Transformer Battery and 12KV Circuit Breakers CapEx Project and 12KV Electrical Power Study, Assessment and Replacement at Primary Switch Gear at Quadrant Substations CapEx Project
Report
BOARD PILLAR
Ensure Compliance with Measure J and Manage Levi’s Stadium
BACKGROUND
On October 8, 2019, the Stadium Authority Board (Board) approved Ordinance No. 2005 amending Chapter 17.30 of the City Code (Stadium Authority Procurement Policy), which rescinded the delegation to the Executive Director to enter into agreements without prior Board approval. As result of Ordinance No. 2005, the Stadium Manager is also required to request Board approval before entering into agreements on behalf of the Stadium Authority. As of the effective date of the Ordinance (November 8, 2019), all Stadium Authority agreements for services, supplies, materials, and equipment require the approval of the Stadium Authority Board.
As the Stadium Manager, Forty Niners Stadium Management Company, LLC is responsible for maintaining “the Stadium in the Required Condition and operate the Stadium as a quality NFL and multi-purpose public sports, public assembly, exhibit and entertainment facility” as required by the Management Agreement between the Stadium Authority and Stadium Manager.
On April 20, 2021, the Stadium Authority Board approved the Stadium Manager’s request to enter into a three-year agreement with Cupertino Electric, Inc. with a not to exceed amount of $250,000 per contract year for on-call electrical maintenance and repair services. The Stadium Manager is now requesting approval to execute an Amendment No. 1 to the existing Levi’s Stadium Electrical Maintenance and Repair Agreement with Cupertino Electric, Inc. to increase the not to exceed amount from $250,000 to $764,298 for the second year of the contract term; and authorize the Stadium Manager to execute change orders up to $48,489 for the following projects:
1. Primary Main Switch Gear Transformer, Battery and 12KV Main Circuit Breakers CapEx Project - The proposed cost for this project based on a time and materials basis, inclusive of the applicable bond, is $193,583. The Stadium Manager is requesting for additional authority to execute change orders up to $16,417 (8.5%) of the proposed cost, for a total not to exceed amount of $210,000. The Stadium Authority FY 2022/23 CapEx Budget includes $210,000 for this project.
2. 12KV Electrical Power Study, Assessment and Replacement at Primary Switch Gear at Quadrant Substations CapEx Project - The proposed cost for this project based on a time and material basis, inclusive of the applicable bond, is $320,715. The Stadium Manager is requesting for additional authority to execute change orders up to $32,072 (10%) of the proposed cost, for a total not to exceed amount of $352,787. The Stadium Authority FY 2022/23 CapEx Budget includes $420,000 for this project.
DISCUSSION
Stadium Authority staff reviewed the Stadium Manager’s Recommendation Memo, supporting documentation, and proposed amendment to the agreement with Cupertino Electric, Inc. that were submitted (these documents are attached to corresponding report #22-736) and exchanged questions with the Stadium Manager to get more clarification on various aspects of the requests. The Stadium Manager’s responses are also attached to the corresponding report #22-736.
The Stadium Manager determined that this project is of an urgent and critical nature from a “public safety and general operational perspective.” The Stadium Manager stated that Cupertino Electric, Inc. was an essential member of the design-build team that constructed the stadium and is intimately familiar with its electrical systems. The Stadium Manager determined that Cupertino Electric, Inc.’s knowledge of the overall building systems, insight into the specific project as a result of their prior testing and inspection services of the same system, and history of the necessary coordinate among various entities made them the only contractor that can perform this project under the time and operation constraints presented.
In addition to the existing Cupertino Electric, Inc. agreement, the Stadium Manager has an agreement with a separate vendor, Bear Electrical Solutions, Inc., for electrical maintenance and repairs. Per the Stadium Manager’s response, they informed Bear Electrical Solutions, Inc. of the work but the vendor did not indicate interest in pursuing the projects. Bear Electrical Solutions responded it did not possess the resources and experience internally to perform this type of complicated high voltage electrical work and had concerns regarding meeting the proposed project schedules. The Stadium Manager determined that the existing agreement with Cupertino Electric, Inc. includes the scope of the proposed work. For these reasons, the Stadium Manager is pursuing the work as a single source procurement.
Based on the documentation and responses provided, staff recommends approval of the Stadium Manager’s request to execute an Amendment No. 1 to the Agreement with Cupertino Electric, Inc. However, staff recommends that the Stadium Manager’s request for delegated authority to execute change orders for the two projects be delegated instead to the Executive Director. Currently, the Executive Director has no procurement delegated authority under the Stadium Authority Procurement Policy. Approving staff’s recommendation to provide the Executive Director with such authority to execute change orders up to $48,489 (up to $16,417 for the Primary Main Switch Gear Transformer, Battery & 12KV Main Circuit Breakers CapEx Project and up to $32,072 for the 12KV Electrical Power Study, Assessment and Replacement at Primary Switch Gear at Quadrant Substations CapEx Project) accomplishes the expediency that the Stadium Manager seeks.
The Stadium Authority will require full supporting documentation including compliance with prevailing wage laws, if applicable, before releasing public funds upon completion of work. This requirement is consistent with the Stadium Authority Board’s March 27, 2019 direction to staff to stop payment of any additional invoices for services unless there is substantial documentation of services rendered which must also be in compliance with State law and City Code.
ENVIRONMENTAL REVIEW
The 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 Stadium Authority FY 2022/23 CapEx Budget includes $210,000 for the Primary Main Switch Gear Transformer, Battery & 12KV Main Circuit Breakers line item. There are sufficient funds to cover the cost of the project ($193,583) and the 8.5% continency ($16,417) that the Stadium Manager is requesting (a total not to exceed $210,000).
The Stadium Authority FY 2022/23 CapEx Budget includes $420,000 for the 12KV Electrical Power Study at Primary Switch Gear at Quadrant Substations line item. There are sufficient funds to cover the cost of the project ($320,715) and the 10% continency ($32,072) that the Stadium Manager is requesting (a total not to exceed $352,787).
The total cost to undertake and perform the two projects by Cupertino Electric, Inc. with the change orders is $812,787.
COORDINATION
This report has been coordinated with the City’s Purchasing Manager, Stadium Authority Counsel and Treasurer’s Offices.
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> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation:
1. Approve the Stadium Manager’s request to execute an Amendment No. 1 to the Agreement with Cupertino Electric, Inc. to increase the total not to exceed amount from $250,000 to $764,298 for the second year of the agreement term to cover the cost of the Primary Main Switch Gear Transformer, Battery and 12KV Main Circuit Breakers CapEx project ($193,583) and 12KV Electrical Power Study, Assessment and Replacement at Primary Switch Gear at Quadrant Substations CapEx project ($320,715), and authorize the Executive Director to approve and process the reimbursement of such costs upon receiving final invoices and supporting documentation from the Stadium Manager;
2. Authorize the Executive Director to approve the execution of any and all documents associated with, and necessary for the award, completion, and acceptance of the project; and
3. Authorize the Executive Director to approve the execution of change orders up to $16,417 for the Primary Main Switch Gear Transformer, Battery & 12KV Main Circuit Breakers CapEx project and up to $32,072 for the 12KV Electrical Power Study, Assessment and Replacement at Primary Switch Gear at Quadrant Substations CapEx project, and authorize the Executive Director to approve and process the reimbursement of such costs upon receiving final invoices and supporting documentation from the Stadium Manager.
Staff
Reviewed by: Christine Jung, Assistant to the Executive Director
Reviewed by: Rajeev Batra, Executive Director