REPORT TO COUNCIL
SUBJECT
Title
Action on Award of Contract for the Electric Utility Substructure and Fiber Optic Construction Projects, Contract No. 2004E, to Phoenix Electric Company for Silicon Valley Power and Related Budget Amendment
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City of Santa Clara’s Electric Department, Silicon Valley Power (SVP), issued a public works bid packet to support its Electric Department Capital Improvement Program (CIP) project, Transmission and Distribution Capital Maintenance and Betterments (Project No. 2006). The proposed project will involve as needed (1) minor expansion of underground electrical distribution system infrastructure; and (2) other infrastructure upgrades (“Project”).
DISCUSSION
On November 21, 2023, a competitive Request for Bid (RFB) was published on the City’s bid notification system, Periscope (formerly BidSync), for of the Project. On December 20, 2023, the Project bids were opened at the City Clerk’s Office. The City received three (3) bids from the following contractors: (1) West Valley Construction Company Inc, (2) Daleo Inc, and (3) Phoenix Electric Company (Phoenix), ranging from $2,514,140 to $5,131,187. The Bid Summary is included as Attachment 1 and includes summary for two bids: the Project electric utility substructure (bottom number in each row); and a fiber optic project (top number in each row). Mastec North America submitted a bid for the fiber optic project, but it did not bid for this Project.
The lowest bid was determined based on a unit price list which represented the estimated work and materials required to perform the Project. The lowest bid was submitted by Phoenix in the amount of $2,514,140. SVP staff and the City Attorney’s Office reviewed Phoenix’s bid for compliance with the terms and conditions of the bid documents, and it was determined to be the lowest responsive and responsible bid. Staff recommends awarding the contract to Phoenix.
Under the proposed agreement, the City will authorize specific work by issuing call orders or change to call orders for the specific as-needed work, and the contractor will be bound by the unit price in its bid. As Project locations vary depending on SVP’s needs, it is likely the contractor will experience unknown and unexpected conditions. To account for these issues, a 25% contingency is included (typical contingency is 10%-15%). Staff would approve use of contingency before work is performed.
Award of the contract will allow construction to commence in order to perform the Project. The contract includes prevailing wage requirements.
ENVIRONMENTAL REVIEW
Staff recommends that the City Council determine that the Project is exempt from the California Environmental Quality Act (“CEQA”) pursuant to the following sections: (1) sections 15301 and 15302 of Title 14 of the California Code of Regulations in that the Project consists of the reconstruction, replacement, repair, maintenance or minor alteration of existing underground electrical distribution system infrastructure involving negligible or no expansion of the use beyond that presently existing; and (2) section 15303 of Title 14 of the California Code of Regulations in that the Project consists of minor new construction of underground electrical distribution system infrastructure.
FISCAL IMPACT
The cost of the contract is $2,514,139.22 plus approximately 25 percent contingency, or $628,535, for any potential change orders, for a total maximum compensation amount of $3,142,675. This amount was not budgeted in FY 2023/24 as staff wanted to ensure a contract is in place. With additional support from this contract, SVP can perform additional improvements that otherwise would have been deferred.
The budget amendment below allocates funding to the Electric Utility Capital Fund from the operating fund to increase the Transmission and Distribution Capital Maintenance and Betterments project (Project No. 2006) to fund the contract and contingency. Other CIP projects may make use of the contract, as necessary, and budget actions can be brought forward if needed.
Budget Amendment
FY 2023/24
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Electric Utility Fund (091) |
|
|
|
|
Transfers To |
|
|
|
|
Electric Utility Capital Fund |
$13,919,559 |
$3,142,675 |
$17,062,234 |
|
Fund Balance |
|
|
|
|
Unrestricted Ending Fund Balance |
$96,317,669 |
($3,142,675) |
$93,174,994 |
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Electric Utility Capital Fund (591) |
|
|
|
|
Transfers From |
|
|
|
|
Electric Utility Fund |
$13,919,559 |
$3,142,675 |
$17,062,234 |
|
Expenditures |
|
|
|
|
Transmission and Distribution Capital Maintenance and Betterments Project (CIP 2006) |
$8,943,599 |
$3,142,675 |
$12,086,274 |
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. Determine the proposed actions are exempt from CEQA pursuant to Sections 15301 (Class 1 -Existing Facilities), 15302 (Class 2 - Replacement or Reconstruction), and 15303 (Class 3 - New Construction or Conversion of Small Structures) of Title 14 of the California Code of Regulations;
2. Award the Public Works Contract to the lowest responsive and responsible bidder, Phoenix Electric Company, in the amount of $2,514,139.22 (Contract Price), and authorize the City Manager or designee to execute any and all contracts, call orders, and documents associated with, and necessary for the award, completion, and acceptance of this Project subject to approval as to form by the City Attorney;
3. Authorize the City Manager or designee to execute change orders in an amount not to exceed 25 percent of the Contract Price, or $628,535, for a total not to exceed amount of $3,142,675; and
4. Approve the following FY 2023/24 budget amendments:
A. In the Electric Utility Fund, increase the transfer to the Electric Utility Capital Fund and decrease the Unrestricted Ending Fund Balance by $3,142,675 (five affirmative Council votes required for the use of unused balances); and
B. In the Electric Utility Capital Fund, increase the transfer from the Electric Utility Fund and the Transmission and Distribution Capital Maintenance and Betterments Project by $3,142,675 (five affirmative Council votes required to appropriate additional revenue).
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Bid Summary