REPORT TO COUNCIL
SUBJECT
Title
Action on the Award of the Public Works Contract for the Fairview Substation Expansion Project [Council Pillar: Deliver and Enhance High Quality Efficient Services and Infrastructure]
Report
BACKGROUND
On April 19, 2020, the City opened bids for the Fairview Substation Expansion Project (Contract No. 2403H). The project scope involves installation of a third transformer bank at the existing two-transformer bank at the Fairview substation. This expansion is required to meet the customer's request of an additional 30 MVA of capacity. Additional work scope involves expansion of the 12kV switchgear building, construction of electrical bus system from the new third transformer to existing switchgear building, and new control wiring connecting the new equipment.
DISCUSSION
Four bids were received for the Fairview Substation Expansion Project. The Engineer’s Estimate and the evaluated bids are as follows:
|
Engineer’s Estimate |
$350,000 |
|
Tri Technic, Inc. |
$454,950 |
|
Newtron |
$502,400 |
|
Cal Electro, Inc. |
$593,800 |
|
Rosendin Electric |
$695,650 |
Tri Technic, Inc.’s bid is $104,950 over the Engineer’s Estimate. The Engineer’s Estimate was prepared by the City’s engineering consultant, MTH Engineers, Inc. The catalyst driving the difference between the Contractor bid and Engineer’s estimate is that the labor market for utility type projects has continued to be in heightened demand, specifically in the greater Bay Area where few contractors are qualified to do this type of utility work. Contractors from outside the region bidding the work in our service area show higher mobilization costs, but remain competitive with local contractors who have submitted higher bids given their existing work commitments. Furthermore, the COVID-19 epidemic crisis has tightened the material and supply market due to higher material and labor costs to implement comply with Health Department requirements for worker safety. The bid was reviewed for compliance with terms and conditions of the Contract Documents. Tri Technic, Inc. is a qualified contractor and staff recommends awarding the contract to Tri Technic, Inc. The Project is currently scheduled for completion in Fourth Quarter of 2020.
ENVIRONMENTAL REVIEW
The City Council adopted the CRP Coronado Stender Data Center Project Mitigated Negative Declaration (MND) on January 13, 2011. The MND evaluated the potential environmental impacts which might reasonably be anticipated to result from the demolition of three existing buildings and construction of three new internet data center buildings on an approximately 8.5-acre site, and the demolition of one existing building and construction of a Silicon Valley Power (SVP) electrical substation on an approximately 1.4-acre site.
FISCAL IMPACT
The cost of the contract is $454,950, plus a 10% contingency in the amount of $45,495, for a not-to-exceed amount of $500,445. There is sufficient funds available within Capital Improvement Program project Install Fairview Substation Expansion - Third Transformer Bank (project no. 2403), in the Electric Utility Capital Fund, approved as part of the FY2020/21 Adopted Budget.
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. Award the Public Works Contract for the Fairview Substation Expansion Project (Contract No. 2403H) to the lowest responsive and responsible bidder, Tri Technic, Inc. in the amount of $454,950 and authorize the City Manager to execute any and all documents necessary for the award, completion and acceptance of the Project; and
2. Authorize the City Manager to execute change orders up to 10% of the original contract amount, or $45,495, for a total not-to-exceed amount of $500,445 for Contract No. 2403H.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Deanna J. Santana, City Manager