REPORT TO COUNCIL
SUBJECT
Title
Authorize the City Manager to Negotiate and Execute Amendments to the Master Agreements with Stantec Consulting Services, Inc. and Bellecci & Associates for Underground Electrical Distribution System Design Services
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
In May 2020, after a Statement of Qualifications (SOQ) process, the City Council authorized the City Manager to execute master agreements with Stantec Consulting Services, Inc. (Stantec) and Bellecci & Associates (Bellecci) for underground electrical distribution system design services (RTC 20-575). The agreements have a five-year term ending April 30, 2025, with a combined maximum aggregate compensation not to exceed $3,000,000.
These agreements support Silicon Valley Power’s (SVP) ongoing effort to upgrade and enhance its underground electrical distribution system infrastructure. The work is intended to support new customer demands and maintain the reliability of the SVP distribution system. In connection with this ongoing effort, consultants to perform design work for the following underground projects:
• Two underground crossing projects at Central Expressway at Coronado Drive with another at Lawson Lane;
• One underground crossing at El Camino Real at Halford Avenue;
• One underground crossing at Great America Parkway at the intersection of Great America Way);
• One underground project west of existing Fairview Substation to Coronado Avenue (Fairview Project); and
• One 0.7 mile underground project along Stevens Creek Boulevard from Rodonovan Road to Stern Avenue located in the south part of the City (Rodonovan Project).
DISCUSSION
To date, the design of the Fairview Project and Rodonovan Project are underway. Stantec is the consultant for the Rodonovan Project, and Bellecci is the consultant for the Fairview Project. The designs for the remaining four projects have not yet been awarded.
Currently, the estimated cost for the completion of the work associated with the Rodonovan Project is $1,753,000, and the cost for the Fairview Project is $615,165.59.
Staff is requesting that the City Council authorize the City Manager to negotiate and execute amendments to these agreements to extend the term of both agreements through April 30, 2030, and to increase the aggregate maximum compensation for these two agreements from $3,000,000 to $6,000,000. The extension of the term will allow for additional time to complete the Rodonovan Project and the Fairview Project and, where applicable, initiate and complete the other four projects identified above. The increased maximum compensation is anticipated to cover additional contingencies for the Rodonovan Project and Fairview Project as well as the design costs of the other four projects.
Purchasing and SVP have been collaborating on a new solicitation that will improve the contracting process for this type of service and reduce redundancies associated with multiple solicitations. Once that process is complete any remaining design projects that are not underway will migrate over to the new process. Staff anticipates the go-live of the new process to occur no earlier than June 2026.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of a California Environmental Quality Act (“CEQA”) pursuant to 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 design services may have a significant effect on the environment. If the City decides to construct the Project, additional environmental review will be required.
FISCAL IMPACT
The total compensation shall not exceed $6,000,000 for the two master agreements. Sufficient funds are available in the Electric Utility Capital Fund in the Transmission and Distribution Capital Maintenance and Betterments project (project no. 2006) or in specific capital projects associated with the work.
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 amendments to the Master Agreement for Design Professional Services with Stantec Consulting Services, Inc. and Bellecci & Associates, Inc. (Master Agreements) for underground electrical distribution system design services, to extend the term through April 30, 2030, and increase aggregate maximum compensation from $3 million to $6 million funded by the Electric Utility Capital Fund and allocated as SVP may require subject to the appropriation of funds and review and approval as to form by the City Attorney; and
2. Authorize the City Manager to take any actions as necessary to implement and administer the Master Agreements and to negotiate and execute amendments to those agreements to (a) add or delete services with their scope of 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 Electric Utility
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Master Agreement with Bellecci & Associates
2. Master Agreement with Stantec Consulting Services, Inc.
3. Amendment No. 1 to the Agreement with Stantec Consulting Services, Inc.