REPORT TO COUNCIL
SUBJECT
Title
Action on Award of Contract for the Bowers Avenue Junction 60 kV Transmission Line Project Contract No. 2457B to Hot Line Construction Inc.
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure.
BACKGROUND
In support of the Bowers Avenue Junction Capital Improvement Project, City of Santa Clara’s Electric Utility, Silicon Valley Power (SVP), issued a public works bid packet for the construction of Bowers Avenue Junction 60 kV Transmission Line Extension (“Project”).
The proposed Project includes installation of an extension to tie the new Bowers Avenue Junction Substation into SVP’s existing 60 kV Center Loop. Specifically, the work includes (1) the installation of two tubular steel poles, (2) framing for a future 115 kV second circuit, (3) removal of a portion of existing conductor; and (4) stringing of new conductor. The transmission conductor is bundled 715 kcmil ACCR “Stilt” and includes the framing and installation of two direct embedded light duty 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 $708,561 to $505,550. 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 $505,550, which is 6% percent less than the Engineer’s Estimate of $538,400.
Hot Line Construction Inc.’s bid was reviewed by SVP staff and the City Attorney’s Office for compliance with the terms and conditions of the bid documents. Based on that review, Hot Line Construction Inc. was determined to be the lowest responsive and responsible bidder. Therefore, Staff recommends awarding the contract to Hot Line Construction Inc.
Awarding the contract will allow construction to commence in order to complete the Bowers Avenue Junction 60 kV Transmission Line Project. The contract includes prevailing wage requirements.
ENVIRONMENTAL REVIEW
The California Energy Commission (CEC) prepared and adopted an Environmental Impact Report (EIR) for the Vantage Data Centers CA31, LLC (Bowers Avenue Junction Substation) data center project in accordance with the California Environmental Quality Act (CEQA). On August 17, 2022, the City of Santa Clara Development Review Committee accepted the EIR, adopted the mitigation monitoring and reporting program, and approved the architectural review. The EIR analyzes the environmental impacts of the proposed project; therefore, no additional environmental review is required.
FISCAL IMPACT
The cost of the contract is $505,550, plus a 15 percent contingency, or $75,832.50, for any potential change orders for a total not-to-exceed contract amount of $581,382.50. Funding for the contract is available from the Bowers Avenue Junction Capital Improvement Project 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 Bowers Avenue Junction 60 kV Transmission Line Project Contract No. 2457B to the lowest responsive and responsible bidder, Hot Line Construction Inc., in the amount of $505,550, and authorize the City Manager to execute any and all contracts and other documents associated with, and necessary for the award, completion, and acceptance of the 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 $75,832.50, for a total not to exceed amount of $581,382.50.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Bid Summary