REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to Negotiate and Execute Agreements and Purchase Orders with CMMS Data Group, Inc. (CDG) for MVP Plan Computerized Maintenance Management Software Related to Silicon Valley Power Operations
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City of Santa Clara’s electric utility, Silicon Valley Power (SVP), relies on a Computerized Maintenance Management Software (CMMS) called MVP Plant, provided by CMMS Data Group, Inc. (CDG), to support its operations. MVP Plant helps SVP manage its teams, assets, inventory, workflow, compliance, and other maintenance activities.
Currently, the system tracks over 22,000 parts, and in 2024, more than 1,700 work orders were entered and completed using the system.
Since implementation in 2018, SVP has paid approximately $212,000 for licenses, support, and maintenance services for MVP Plant. Pursuant to Section 2.105.300 of the Santa Clara City Code (City Code), the City Manager is authorized to execute purchase orders and agreements on behalf of the City in amounts up to $250,000. As total expenditures for MVP Plant are projected to exceed this threshold, staff is seeking City Council authorization to continue the use and support of the system.
DISCUSSION
The MVP Plant is a critical system for SVP’s day-to-day operations. To ensure continued use and support of the CMMS, staff is seeking authorization for the City Manager to issue purchase orders or, where appropriate, negotiate and execute agreements with CDG for licenses, support, and maintenance services through December 31, 2031. The City has historically issued purchase orders for this annual software support and maintenance but, if special services are required, it may be more appropriate to negotiate and execute an agreement.
This recommendation is made pursuant to Section 2.105.280(b)(2) of the City Code, which exempts purchases from competitive procurement requirements when necessary to ensure continued operation and function of existing systems currently in use by the City. CDG is the sole provider of licenses, maintenance, and support services for MVP Plant.
Staff is requesting authorization for a maximum compensation of $900,000, which includes approximately $212,000 already paid to date for software licenses, support services, updates, maintenance releases, service packs, patches, and hotfixes, and approximately $688,000 in projected future costs through the end of the contract term.
The projected future costs include approximately $300,000 for base maintenance and support services, and $388,000 for anticipated cost escalation and additional services that may be required such as upgrades, training, or specialized support needed from the vendor. Of course, this funding allocation may change depending on future needs. As SVP’s system is growing and staffing is changing, there may be increased need for this service or for staff training. Additionally, for a system in place for this length of time, system upgrades may be required.
A breakdown of the compensation is provided in Table 1 - MVP Plant CMMS Compensation Summary below.
Table 1 - MVP Plant CMMS Compensation Summary
|
Description |
Amount |
|
Amount Paid to Date (2018 - 2024) |
$212,000 |
|
Estimated Future Costs (2025 - 2031) |
$688,000 |
|
Total Not-to-Exceed Amount |
$900,000 |
ENVIRONMENTAL REVIEW
The actions being considered do not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulation in that it can be seen with certainty that there is no possibility that the proposed actions may have a significant effect on the environment.
FISCAL IMPACT
Sufficient funds for the MVP Plant CMMS and associated services are available in the FY 2024/25 Operating Budget, Generation Program, in the Electric Utility Operating Fund.
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.
RECOMMENDATION
Recommendation
1. Authorize the City Manager or designee to issue purchase orders and to negotiate and executed agreements or amendments with CMMS Data Group, Inc. for MVP Plant Computerized Maintenance Management Software (CMMS) and associated services for a maximum compensation of $900,000 for the period between January 1, 2020, through December 31, 2031, subject to the appropriation of funds and review and approval as to form by the City Attorney; and
2. Authorize the City Manager or designee to take any actions necessary to implement and administer the purchase orders or agreements, including negotiating and executing amendment(s) to (a) add or delete services associated with the services, (b) adjust future rates based on market conditions, and (c) make de minimis changes, subject to budget appropriations and review and approval as to form by the City Attorney.
Staff
Reviewed by: Nico Procos, Acting Director of Silicon Valley Power
Approved by: Jovan D. Grogan, City Manager