REPORT TO COUNCIL
SUBJECT
Title
Action on Award of Contract for the Stender Way Junction Transmission Line Extension Project Contract No. 2448-9668 to Hot Line Construction Inc.
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
In support of the Stender Way Junction Capital Improvement Project, the City of Santa Clara’s Electric Department, Silicon Valley Power (SVP), issued a public works bid packet for the Stender Way Junction Transmission Line Extension Project (Project) that extends an existing 60 KV overhead transmission line to provide service to the new Stender Way Junction Substation located on the northeast corner of Central Expressway and Stender Way.
The total length of the transmission line extension is approximately 0.3 miles. The Project includes rebuilding four (4) existing transmission spans, the installation of five (5) custom tubular steel monopoles supported on drilled concrete piers, and two (2) direct embedded steel poles.
DISCUSSION
On February 5, 2024, a competitive Request for Bid (RFB) was published on the City’s bid notification system, Periscope, for construction of the Project. On March 7, 2024, bids for the Project were opened at the City Clerk’s office. The City received two (2) bids from Henkels and McCoy West and Hot Line Construction Inc. in the amounts of $2,293,013 and $1,597,659 respectively. The Bid Summary is included as Attachment 1.
At the bid opening, Hot Line Construction Inc. was declared the lowest apparent bidder with a submitted bid in the amount of $1,597,659, which is 38% percent less than the Engineer’s Estimate of $ 2,344,900.
Hot Line Construction Inc.’s bid was reviewed by SVP staff for compliance with the terms and conditions of the bid documents. Based on that review, Hot Line Construction Inc. has been determined to be the lowest responsive and responsible bidder; therefore, staff recommends awarding the contract to Hot Line Construction Inc.
Award of the contract will allow construction to commence in order to complete the Stender Way Transmission Line Extension Project. The contract includes prevailing wage requirements.
ENVIRONMENTAL REVIEW
In accordance with the California Environmental Quality Act (CEQA), the Project’s potential environmental impacts were analyzed in a Mitigated Negative Declaration for the CoreSite Real Estate SV9, L.P. data center project (Stender Way Junction Substation). The Mitigated Negative Declaration was adopted by City Council on June 8, 2021.
FISCAL IMPACT
The cost of the contract is $1,597,659, plus 15 percent contingency, or $239,648.85, for any potential change orders for a total not-to-exceed contract amount of $1,837,307.85. Funding for the contract is available from the Stender Way Junction Capital Improvement Program Budget.
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, 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. Award the Public Works Contract for the Stender Way Junction Transmission Line Extension Project Contract No. 2448-9668 to the lowest responsive and responsible bidder, Hot Line Construction Inc., in the amount of $1,597,659, and authorize the City Manager to execute any and all contracts and documents associated with, and necessary for the award, completion, and acceptance of this Project in final forms approved by the City Attorney; and
2. Authorize the City Manager to execute change orders up to approximately 15 percent of the original contract price, or $239,648.85, for a total not to exceed amount of $1,837,307.85.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Bid Summary