REPORT TO COUNCIL
SUBJECT
Title
Action on the Award of a Public Works Contract for the Northwest Loop Capacity Upgrade Project to Henkels & McCoy West, LLC, for a Not-to-Exceed Amount of $1,996,557, Inclusive of a 15% Contingency, Funded by the Northwest Loop Capacity Upgrade Capital Improvement Project (CIP No. 2444) Budget
Report
BACKGROUND
The City of Santa Clara’s electric utility, Silicon Valley Power (SVP), issued a public works bid packet for the Northwest Loop Capacity Upgrade Project (Project). The Project will reconductor both 60kV transmission line end sections, approximately 2.6 miles, on the Northwest Loop to increase capacity. The additional capacity will serve San Tomas Junction, a single customer substation, as well as projected load growth in the City.
DISCUSSION
On February 12, 2026, in accordance with Section 1310 of City of Santa Clara Charter, which governs the competitive bidding for public works, a competitive Request for Bids (RFB) for the Project was published on the City’s e-procurement system.
On March 19, 2026, bids for the Project were opened at the City Clerk’s office. The City received two bids, as summarized in Table 1 below.
Table 1 - Bid Results
|
Bidder |
Total Bid Amount (Rounded to the Nearest Dollar) |
|
Henkels & McCoy West, LLC |
$1,736,136 |
|
Hot Line Construction Inc |
$4,583,530 |
The total bid amount includes all labor, materials, equipment, and services to complete construction of the Project. The Project work includes site preparation, environmental, and traffic control measures, and replacement of conductors and equipment.
At the bid opening, Henkels & McCoy West, LLC was identified as the lowest apparent bider with a submitted bid in the amount of $1,736,136. This amount is approximately 35.7% lower than the Engineer’s Estimate of $2,700,000, which was prepared using conservative assumptions for higher-risk work elements associated with the site-specific constraints.
Staff reviewed the bid for compliance with the terms and conditions of the bid documents and determined that Henkels & McCoy West, LLC is the lowest responsive and responsible bidder. Accordingly, staff recommend awarding a contract to Henkels & McCoy West, LLC.
The recommended contract includes a maximum compensation of $1,736,136, plus a 15% contingency for any potential change orders. The total not-to-exceed contract amount, including contingency, is $1,996,557.
Approval of the contract award will authorize the City Manager to execute the public works contract for the Project in substantially the same form as attached to this Report to Council (Attachment 1). Upon City Council approval, Henkels & McCoy West, LLC will be required to provide performance and payment bonds. The contract includes prevailing wage requirements.
ENVIRONMENTAL REVIEW
Staff recommends that the City Council determine that the Project and associated actions being considered are exempt from the California Environmental Quality Act (“CEQA”) pursuant to Section 15302 (Class 2 - Replacement or Reconstruction) of Title 14 of the California Code of Regulations as they involve the reconductoring of existing electric lines.
FISCAL IMPACT
The cost of the contract is $1,736,136, plus a 15% contingency, or $260,421, for any potential change orders, for a total not-to-exceed contract amount of $1,996,557. Sufficient funding for the contract is available in the Electric Utility Capital Fund in the Northwest Loop Capacity Upgrade Project (CIP No. 2444) budget which is funded by contributions from the MECP1 Santa Clara 1, LLC (MECP1) to pay for its portion of its capacity needs and other customer service charges.
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 the proposed actions are exempt from CEQA pursuant to Section 15302 (Class 2 - Replacement or Reconstruction) of Title 14 of the California Code of Regulations;
2. Award the Public Works Contract for the Northwest Loop Capacity Upgrade Project (CIP No. 2444) to the lowest responsive and responsible bidder, Henkels & McCoy West, LLC, in the amount of $1,736,136, and authorize the City Manager or designee to execute a public works contract (Contract) in substantially the form attached to this Report to Council, subject to the review and final approval as to form by the City Attorney; and
3. Authorize the City Manager or designee to (a)take any actions necessary to implement and administer the Contract including executing any and all documents required for the award, completion, or acceptance of the Project and (b) approve any necessary change orders not to exceed 15% of the original contract price, or $260,421, for a total contract amount not-to-exceed $1,996,557, funded by the Electric Utility Capital Fund.
Staff
Reviewed by: Nico Procos, Director of Silicon Valley Power
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Public Works Contract for the Northwest Loop Capacity Upgrade Project