REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to Negotiate and Execute Amendments to Agreements with (a) Rising Edge Technologies (California), LLC, (b) Power Systems Professionals, Inc., (c) Electric Power Systems International, Inc., and (d) Delta Star, Inc. for As-Needed Maintenance, Repair, and Testing Services for Electrical Equipment for Silicon Valley Power
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) owns and maintains two power plants, along with several transmission, distribution, and substation facilities. These facilities use various types of electrical equipment, such as transformers, protective relays, circuit breakers, switchgears, battery systems, motor control centers, and electrical protection systems. SVP uses multiple contractors to perform regular maintenance, repair, and testing on this equipment. These contractors are essential for ensuring the reliability of the electrical equipment system.
DISCUSSION
Pursuant to City Code Section 2.105.140(c), a formal Request for Proposals (RFP) was conducted, with the award recommendation based on “best value.”
The RFP for Maintenance, Repair, and Testing Services for Electrical Equipment was published on the City’s e-procurement system. Five proposals were received from the following firms:
• ABM Electrical Power Services, LLC
• Delta Star, Inc.
• Electric Power Systems International, Inc.
• Power Systems Professionals, Inc.
• Rising Edge Technologies, LLC
The proposals were independently evaluated by a three-member evaluation panel against the criteria and weights published in the RFP, including experience, technical capability, and cost. The evaluation panel recommended entering into master agreements with Rising Edge Technologies (California), LLC, Power Systems Professionals, Inc., Electric Power Systems International, Inc., and Delta Star, Inc., as the highest-ranked proposers.
On June 1, 2024, after the evaluation committee selected the firms for the award, staff executed agreements with all four firms, each within the City Manager’s authority of $250,000. This action was to ensure the availability of contractors to perform critical repair services while awaiting City Council approval for an amount exceeding $250,000. Staff did not authorize any work under these agreements that exceeded the City Manager’s authority.
All four agreements are for a five-year term ending on May 31, 2029, with an option to extend the term by one additional year through May 31, 2030. Staff is seeking City Council approval for the City Manager to negotiate and execute amendments to the four agreements to increase the maximum compensation of each agreement with a total aggregate authorization maximum compensation not to exceed $10,000,000. This amount represents SVP’s estimate to maintain Silicon Valley Power’s high voltage electrical equipment. Rates for labor and materials are established in the agreements and are subject to reasonable annual increases after the initial fixed period. Any rate increases must be approved by the City and substantiated by the contractors to the satisfaction of the City.
Actual work will be assigned to the contractors pursuant to a secondary bid process. When work is identified, SVP will obtain quotes from all four contractors taking into account factors such as their schedule availability, experience, and cost. Staff requests authorization for the City Manager to negotiate and execute amendments as needed based on the value of projects awarded.
ENVIRONMENTAL REVIEW
Staff recommends that the City Council determine that the actions being considered are exempt from the California Environmental Quality Act (“CEQA”) pursuant to section 15301 of Title 14 of the California Code of Regulations as the services involve maintenance and repair of existing facilities and equipment.
FISCAL IMPACT
Staff recommends authorization for the City Manager to negotiate and execute amendments with an aggregate maximum compensation for all four agreements not to exceed $10 million over the five-year term. Sufficient funds are available in the FY 2024/25 Operating Budget in the Electric Utility Operating Fund or in the Capital Fund as applicable to each project assigned. Funding for future years will be included in the regular budget process.
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, or by email to: clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov>.
RECOMMENDATION
Recommendation
1. Determine that the proposed actions are exempt from CEQA pursuant to Section 15301 (Existing Facilities) of Title 14 of the California Code of Regulations;
2. Authorize the City Manager or designee to negotiate and execute amendments to agreements with: (a) Rising Edge Technologies (California), LLC, (b) Power Systems Professionals, Inc., (c) Electric Power Systems International, Inc., and (d) Delta Star, Inc., for as-needed electrical equipment maintenance, repair, and testing services for a five-year term ending May 31, 2029, to (a) increase the maximum compensation of each agreement, with a total aggregate maximum compensation of $10,000,000 among the four agreements, (b) add or delete services consistent with the scope of services, (c) adjust future rates to account for changes in labor rates, and (d) exercise a one-year option to extend the term of each agreement through May 31, 2030, to be funded by the SVP Operating or Capital Fund as applicable, subject to the appropriation of funds and the review and approval as to form by the City Attorney; and
3. Authorize the City Manager to take any actions as necessary to implement and administer the above agreements as amended.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Agreement for Services with Rising Edge Technologies (California), LLC
2. Agreement for Services with Power Systems Professionals, Inc.
3. Agreement for Services with Electric Power Systems International, Inc.
4. Agreement for Services with Delta Star, Inc.