REPORT TO COUNCIL
SUBJECT
Title
Action on Award of a Public Works Contract for the Citywide Emergency Generators Replacement Phase 3 Project to Saboo Inc. and Approval of Related Budget Amendments
Report
BACKGROUND
The Department of Public Works manages emergency generators at various facilities citywide. The average age of the emergency generators is increasing, resulting in higher maintenance costs and decreased reliability. Since City facilities are considered critical operations, generator evaluation and replacement has been prioritized through a multi-phase program in compliance with regulatory agency requirements. A Phase 1 generator replacement project was completed in 2025, and the construction of a Phase 2 generator replacement project is currently in progress and nearing completion.
On April 17, 2024, the City Manager executed a design professional services agreement with Salas O’Brien Engineers, Inc. for the Citywide Emergency Generators Replacement Phase 3 Project (Project). The Project includes the replacement of four generators located at the Downtown Water Booster, the Serra Water Booster, the De La Cruz Sewer Pump Station, and the Utilities Corporation Yard. A map of these sites is included as Attachment 1. The Project scope generally includes removal and installation of new generators, automatic transfer switches, fuel tanks, associated electrical work, foundations, and other incidental work necessary to complete the Project.
DISCUSSION
In November 2025, a competitive Request for Bids (RFB) for construction of the Project was published on the City’s bid notification system, BidNet. The RFB was viewed by various vendors, including contractors, suppliers, plan rooms and builders exchanges, among others. Additional vendors were able to view the RFB as members of various plan rooms and builder exchanges. Staff also reached out to contractors and vendors who had submitted bids on similar past projects.
The bid opening for the project was scheduled for December 11, 2025, however no bids for the Project were received. Following the bid opening, staff performed research and contractor outreach to determine why the City didn’t receive any bids, and ultimately concluded that contractor workload, time of year, and the fact that contractors were bidding on other projects contributed to the City not receiving any bids. Accordingly, staff felt that rebidding the project at the beginning of the year might improve the City’s ability to receive competitive bid packages.
On January 7, 2026, staff readvertised the RFB for construction of the Project on BidNet. On February 12, 2026, bids for the Project were opened via video conference. Four bids were received ranging from $1,998,800 to $2,948,888. The Bid Summary is included as Attachment 2. The lowest bids submitted by AAAA Generator Service Inc. (AAAA) and SCC Electric Inc. (SCC) were reviewed and determined to be non-responsive because both bids omitted certain documentation required in the bid package. The bid submitted by the third apparent low bidder, Saboo Inc., in the amount of $2,700,000 was reviewed by Public Works staff and the City Attorney’s Office for compliance with the terms and conditions of the bid documents and has been determined to be a responsive and responsible bid. This bid amount is 6 percent above the engineer’s estimate of $2,537,000. Staff recommends awarding the construction contract to Saboo Inc.
Award of contract will enable construction of the Project to commence, with substantial completion anticipated by Spring 2029. The date is subject to change based on any unforeseen conditions discovered during construction. The contract includes prevailing wage requirements.
ENVIRONMENTAL REVIEW
This project being considered is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15301 (c), “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 approximate cost of the construction contract for the Citywide Emergency Generators Replacement Phase 3 Project is $2,700,000, plus a 15 percent contingency of $405,000 for any potential change orders, for a total not-to-exceed contract amount of $3,105,000.
The Project is funded by several sources within the Capital Improvement Program including the Standby Stationary Generators project in the Public Buildings Fund, the Electric Yard Building and Grounds project in the Electric Utility Capital Fund, and the Buildings and Grounds project in the Water Utility Capital Fund. Budget actions in the total amount of $3,385,850 are recommended to consolidate the funds required for completion of the Project. Staff recommends transferring the following amounts into the Stationary Standby Generators project in the Public Buildings Fund: $360,530 from the Electric Yard Building and Grounds Project in the Electric Utility Capital Fund; $2,300,000 from the Buildings and Grounds Project in the Water Utility Capital Fund; and $725,320 from the unrestricted fund balance in the Water Utility Fund. These amounts represent the portion of the Project costs associated with Water, Sewer, and Electric Utility sites.
The total budget action amount of $3,385,850 includes $3,105,000 to address the costs associated with the total not-to-exceed construction contract and $280,850 to address the costs associated with project delivery including engineering, construction inspection and administration, and other project costs.
Budget Amendments
FY 2025/26
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Water Utility Fund |
|
|
|
|
Transfers To Public Buildings Capital Fund |
$0 |
$725,320 |
$725,320 |
|
|
|
|
|
|
Fund Balance |
|
|
|
|
Unrestricted |
$1,308,848 |
($725,320) |
$583,528 |
|
|
|
|
|
|
Water Utility Capital Fund |
|
|
|
|
Expenditure |
|
|
|
|
Buildings and Grounds |
$5,202,723 |
($2,300,000) |
$2,902,723 |
|
|
|
|
|
|
Transfers To Public Buildings Capital Fund |
$0 |
$2,300,000 |
$2,300,000 |
|
Electric Utility Capital Fund |
|
|
|
|
Expenditure |
|
|
|
|
Electric Yard Building and Grounds |
$1,219,582 |
($360,530) |
$859,052 |
|
|
|
|
|
|
Transfers To Public Buildings Capital Fund |
$0 |
$360,530 |
$360,530 |
|
Public Buildings Capital Fund |
|
|
|
|
Transfers From |
|
|
|
|
Water Utility Fund |
$0 |
$725,320 |
$725,320 |
|
Water Utility Capital Fund |
$0 |
$2,300,000 |
$2,300,000 |
|
Electric Utility Capital Fund |
$0 |
$360,530 |
$360,530 |
|
Expenditures |
|
|
|
|
Standby Stationary Generators |
$1,338,443 |
$3,385,850 |
$4,724,293 |
|
|
|
|
|
COORDINATION
This report has been coordinated with the Finance Department, the Water and Sewer Utilities Department, Silicon Valley Power, 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 that the proposed actions are exempt from CEQA pursuant to Section 15301 (c), “Existing Facilities,” of Title 14 of California Code of Regulations;
2. Award the Public Works Contract for the Citywide Emergency Generators Replacement Phase 3 Project to the lowest responsive and responsible bidder, Saboo Inc., in the amount of $2,700,000 and authorize the City Manager or Designee to execute any and all documents associated with, and necessary for the award, completion, and acceptance of this Project in final forms approved by the City Attorney;
3. Authorize the City Manager or Designee to execute change orders up to approximately 15 percent of the original contract price, or $405,000, for a total not to exceed contract amount of $3,105,000; and
4. Approve the following FY 2025/26 budget amendments:
a. In the Public Buildings Capital Fund, recognize a transfer from the Water Utility Fund in the amount of $725,320, a transfer from the Water Utility Capital Fund in the amount of $2,300,000, and a transfer from the Electric Utility Capital Fund in the amount of $360,530, and increase the Standby Stationary Generators Project by $3,385,850 (five affirmative Council votes required to appropriate additional revenue);
b. In the Water Utility Fund, establish a transfer to the Public Buildings Capital Fund in the amount of $725,320 and decrease the Unrestricted Ending Fund Balance in the amount of $725,320 (five affirmative Council votes required for the use of unused balances);
c. In the Water Utility Capital Fund, establish a transfer to the Public Buildings Capital Fund in the amount of $2,300,000 and decrease the Buildings and Grounds Project by $2,300,000 (majority affirmative Council votes required); and
d. In the Electric Utility Capital Fund, establish a transfer to the Public Buildings Capital Fund in the amount of $360,530 and decrease the Electric Yard Building and Grounds Project in the amount of $360,530 (majority affirmative Council votes required).
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. Project Location Map
2. Bid Summary