REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment No. 1 to an Agreement for the Performance of Services with Soudi Consultants, Inc. to Provide Engineering Consulting Services [Council Pillar: Deliver and Enhance Quality Efficient Services and Infrastructure]
Report
BACKGROUND
The City of Santa Clara’s Electric Department, Silicon Valley Power (SVP), has undertaken a multi-year capital construction program to expand, rebuild, and reinforce the SVP electric transmission and distribution system over the next several years. These Capital Improvement Program (CIP) projects include rebuilding existing substations, upgrading components in existing substations, and adding new substations which require specialized electric protection consulting engineering services that involve extensive modeling of the SVP transmission and distribution system.
On July 11, 2017, Council approved a three-year services agreement for Soudi Consultants, Inc. (Soudi Consultants) to provide protection services for Silicon Valley Power generation, transmission and distribution systems. Soudi Consultants is a local licensed professional electrical engineering firm that specializes in performing electric protection engineering services and was selected as a sole source procurement based on their unique and specialized knowledge of SVP’s system protection schemes including extensive modeling of SVP’s electric system using the Aspen One-Liner model.
DISCUSSION
The existing three (3) year agreement is set to expire in July of 2020. Several of the projects originally anticipated to be completed during the term of the agreement have had project schedules extended. These include the rebuilding of Serra Substation, Transmission System Reinforcements, and Esperanca substation. Additional substation projects have been initiated that will also require electric protection engineering services from Soudi Consultants. These projects have substation service agreements approved by Council earlier this year. Arc-flash protection analysis studies are also required for SVP’s five generating facilities: DVR, Cogen, Gianera, Black Butte, and Stoney Gorge.
Staff is recommending that the agreement be amended to modify the expiration date of the agreement from July 2020 to July 2022 and increase the value of the agreement by $401,500 so that all protection engineering work required for these projects will be completed within the terms of this agreement. The extension also makes financial sense as the current rates for the contract are being maintained. A Request for Proposals (RFP) will be prepared for any future projects.
ENVIRONMENTAL REVIEW
This action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment
FISCAL IMPACT
The original agreement has a not to exceed amount of $985,000. The existing balance on the contract is $276,300. It is allocated to the following CIP projects:
1. Serra Substation (project no. 2104): $74,300
2. Transmission System Reinforcements (project no. 2124): $78,000
3. Esperanca Substation (project no. 2418): $50,000
4. Install Fairview Substation - Third Transformation Bank (project no. 2403): $74,000
Additional funds are requested to be added to the agreement in this amendment for the following CIP projects and operating programs, and funding is available in the FY 2020/21 Adopted Budget to cover these costs:
1. Oaks Junction, Raging Wires (project no. 2440): $84,500
2. Parker Substation, Bank 3 addition (project no. 2433): $58,500
3. San Tomas Junction, MECP1 (project no. 2442): $96,500
4. Customer Development and Project Management - SVP Engineering program: $50,000
5. Utility Operations - Generation program’s Arc-flash protection analysis studies for DVR, Cogen, Gianera, Black Butte, and Stoney Gorge generating plants: $112,000.
Total additional request is $401,500. The amended agreement would have a total not to exceed amount of $1,386,500.
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 <mailto:clerk@santaclaraca.gov>.
RECOMMENDATION
Recommendation
1. Authorize the City Manager to execute Amendment No. 1 to the Agreement for the Performance of Services with Soudi Consultants, Inc.;
2. Authorize the City Manager to make minor modifications to the agreement, if necessary; and
3. Authorize the City Manager to add or delete electric protection engineering services consistent with the scope of the agreement and extend the agreement for projects initiated before the expiration date of the agreement subject to the appropriation of funds.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Original Agreement and Council Report - Soudi Consultants, Inc.
2. Amendment No. 1 with Soudi Consultants, Inc.