REPORT TO COUNCIL
SUBJECT
Title
Action to Delegate Authority to the City Manager to Execute Purchase Orders and Negotiate Agreements and/or Amendments with Doble Engineering Company for Test Equipment, PowerBase Software, Relay Testing Software, and Other Services Related to Silicon Valley Power Operations, and to Ratify Amendments and Payments Exceeding City Manager Authority
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
In 2019, the City Manager executed a Master Service Agreement (Agreement) with Doble Engineering Company (Doble) for test equipment, engineering services, report reviews, laboratory testing, and access to technical resources. While the Agreement was signed in 2019, it was effective retroactively on April 1, 2018, with an initial term through March 31, 2020, and includes up to 10 one-year optional term extensions through March 31, 2030. As of March 2025, the total expenditure under the Agreement is $308,980.
In addition to the purchases made under the Agreement, the City has issued purchase orders (outside of the Agreement) to Doble for PowerBase Software and Relay Testing Software (RTS), which supports management and testing of electric protection systems as well as other associated products and services such as gas cylinder calibration. Since 2020, approximately $146,322 has been spent on these software tools outside of the Agreement.
DISCUSSION
Since April 2018, the City has paid Doble $455,302 under both the Agreement and separate purchase orders issued for test equipment support and services. This amount exceeds the City Manager’s current authorization of $250,000 under Section 2.105.300 of the Santa Clara City Code. Staff is seeking City Council ratification of expenditures made under the Doble Agreement and related purchase orders that exceeded the City Manager’s authority.
The table below details past expenditures:
|
Fiscal Year of Expense |
Master Agreement |
Other Purchases |
Total for FY |
Cumulative Total |
|
FY 2019/20 |
$103,330.00 |
$0.00 |
$103,330.00 |
$103,330.00 |
|
FY 2020/21* |
$36,500.00 |
$28,836.08 |
$65,336.08 |
$168,666.08 |
|
FY 2021/22 |
$37,110.00 |
$49,227.24 |
$86,337.24 |
$255,003.32 |
|
FY 2022/23 |
$37,890.00 |
$30,183.83 |
$68,073.83 |
$323,077.15 |
|
FY 2023/24 |
$38,660.00 |
$4,586.99 |
$43,246.99 |
$366,324.14 |
|
FY 2024/25 |
$55,490.00 |
$33,488.03 |
$88,978.03 |
$455,302.17 |
|
Total |
$308,980.00 |
$146,322.17 |
|
|
As SVP expects to use Doble’s tools and services through the full contract term ending March 31, 2030, staff also is seeking City Council authorization for the City Manager to execute future amendments and/or purchase orders with Doble for test equipment, engineering services, software (including PowerBase and Relay Testing Software), and other related products and services through March 31, 2030. Staff is seeking City Council authorization to increase the maximum compensation by $544,697.83 for a new total maximum compensation of $1,000,000. This amount includes anticipated cost escalation and additional services that may be required such as upgrades, training, or specialized support needed from the vendor. This funding allocation may change depending on future needs. As SVP’s system is growing and staffing is changing, there may be an increased need for this service or for staff training. Additionally, system upgrades may be required as the system matures.
Staff has been reviewing issues related to exceeding expenditure authorities and will be bringing these forward as they are uncovered to address the issue and ensure transparency. For many of these, the issue has been historical interpretations of expenditure authority and limits, but not having a formal way to track expenditures has been a contributing factor. The latter is currently in the process of being addressed with the future launch of a new module in Peoplesoft, the City’s financial management program.
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 Regulations 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 testing equipment provided under the Doble Master Services Agreement are available in the FY 2024/25 Operating Budget, Substation Maintenance, in the Electric Utility Fund. Sufficient funds for the PowerBase and RTS software are available in the FY 2024/25 Operating Budget, System Support, in the Electric Utility Fund. Funding is also available in the FY 2025/26 and FY 2026/27 Adopted Operating Budget in the Electric Utility Fund for these items. Funding for future years will be incorporated into the regular budget process.
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 to negotiate and execute agreements, and/or purchase orders with Doble Engineering Company for test equipment, software (including PowerBase and Relay Testing Software), engineering services, and other related products and services with a maximum authorization of $1,000,000 for the period of April 1, 2018, through March 31, 2030, subject to budget appropriations and the review and approval as to form by the City Attorney;
2. Ratify the City Manager’s execution of amendments to the Doble Master Services Agreement and related purchase orders and payments issued to Doble prior to the date of this report in excess of the City Manager’s authority; and
3. Authorize the City Manager to (1) take any actions necessary to implement and administer the purchase orders or agreements and (2) a negotiate and execute amendment(s) to (a) add or delete services associated with the services; (b) adjust future rates based on market conditions, (c) make de minimis changes; and (d) extend the term of the Master Agreement through March 31, 2030, subject to budget appropriations and the 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
ATTACHMENTS
1. Doble Master Services Agreement
2. Doble Amendment No. 1
3, Doble Amendment No. 2
4. Doble Amendment No. 3
5. Doble Amendment No. 4
6. Doble Amendment No. 5