REPORT TO COUNCIL
SUBJECT
Title
Action on the Award of Purchase Orders with Technology, Engineering & Construction, Inc. DBA T.E.C. Accutite for Fuel Storage Tank Compliance Testing and Related Services
Report
BACKGROUND
The City of Santa Clara’s Department of Public Works (DPW) manages the maintenance, repair, testing and regulatory compliance of its fuel storage tanks. The department has nine underground storage tanks (USTs) and three aboveground storage tanks (ASTs) at various locations throughout the City. The City typically contracts out the maintenance of the tanks to ensure they function properly. The services provided include certified testing, inspection, cleaning, repairs, fuel sampling and analysis, and compliance training for staff. These services are critical to continuing operations and maintaining compliance. The City has contracted for fuel storage tank services since 2016, with the current purchase order set to expire on June 30, 2026.
DISCUSSION
Pursuant to Section 2.105.140(d) of the City of Santa Clara Code, a formal Request for Bids (RFB) was conducted as the solicitation method for this procurement with award to the lowest responsive and responsible bidder.
On March 31, 2026, staff published the RFB for 25-26-75 for Fuel Storage Tank Compliance Testing and Related Services on the City’s e-procurement platform. The RFB was open to all qualified vendors capable of servicing the City’s Fuel Storage Tanks. Three responsive bids were received by the deadline from the following vendors:
|
Vendor |
Total Base Bid |
|
Technology, Engineering & Construction, Inc. DBA T.E.C. Accutite |
$58,975 |
|
Service Station Systems Inc. |
$134,188 |
|
Balch Petroleum |
$183,190 |
Bidders were required to submit unit pricing for annual certification and testing, triennial testing, monthly inspections, and training. The total base bid was calculated by multiplying the unit costs by the quantities. Following review of the bids received, staff determined that Technology, Engineering & Construction, Inc. DBA T.E.C. Accutite (TEC) was the lowest responsive and responsible bidder.
Accordingly, staff recommends award of purchase orders to TEC for an initial one-year term from July 1, 2026 to June 30, 2027, with four one-year options to extend through June 30, 2031, for a total of up to five years.
Staff will issue purchase orders for the services, with a maximum compensation amount of $72,000 for the initial term, which includes the base bid amount and additional as-needed services. For the option years, estimated annual compensation assumes a 3% increase each year. The table below reflects the estimated expenditures throughout the five-year term, assuming all options are exercised.
|
Term |
Amount |
|
Initial 1-Year Term (7/1/26 - 6/30/27) |
$72,000 |
|
Option Year 1 (7/1/27 - 6/30/28) |
$74,160 |
|
Option Year 2 (7/1/28 - 6/30/29) |
$76,385 |
|
Option Year 3 (7/1/29 - 6/30/30) |
$78,677 |
|
Option Year 4 (7/1/30 - 6/30/31) |
$81,037 |
|
Subtotal |
$382,259 |
|
Contingency (20%) |
$76,452 |
|
Total Not-to-Exceed Maximum Compensation |
$458,711 |
Pricing is fixed for the first year. Thereafter, TEC may request rate adjustments no more than once annually. Any proposed rate adjustments are subject to approval by the City and must be substantiated to the satisfaction of the City and tied to a relevant market price index.
A contingency of 20% is included to account for unanticipated needs and potential increases in service demands over the term of the agreement. Staff will manage expenditures throughout the full term, allocating funds as needed, provided that the total compensation does not exceed the authorized amount.
Prevailing wage requirements are included in these purchase orders.
ENVIRONMENTAL REVIEW
The action being considered is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15301 “Existing Facilities,” as the activity consists of the repair, maintenance or minor alteration of existing facilities involving no or negligible expansion of the use beyond that presently existing.
FISCAL IMPACT
The estimated costs for the fuel tank services total $72,000 in FY 2026/27 and $458,711 over the five-year period, assuming all options are exercised. In FY 2026/27, funding is budgeted in the Fleet Operations Fund. Funding for future option years is subject to Council appropriations.
COORDINATION
This report has been coordinated with the Finance Department and 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 that the proposed actions are exempt from CEQA pursuant to Section 15301 (Existing Facilities) of Title 14 of California Code of Regulations;
2. Authorize the City Manager or designee to issue Purchase Orders to Technology, Engineering & Construction, Inc., DBA T.E.C. Accutite for Fuel Storage Tank Compliance Testing and Related Services for a total maximum amount not-to-exceed $458,711, subject to the appropriation of funds and approval as to form by the City Attorney; and
3. Authorize the City Manager or designee to take any actions as necessary to implement and administer the Purchase Orders, and to (a) exercise up to four one-year options through June 30, 2031, (b) add or delete services consistent with the scope of services, (c) approve rate adjustments, and (e) make de minimis changes, provided that the total maximum amount is not exceeded, subject to the appropriation of funds and approval as to form by the City Attorney.
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Jovan Grogan, City Manager