REPORT TO COUNCIL
SUBJECT
Title
Action on Authorizing the Use of City Electric Forces for Public Works at Various Locations
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
Section 1310 of the Santa Clara City Charter (Contracts on Public Works) states “that every contract involving an expenditure of more than one thousand dollars ($1,000) for the construction or improvement (excluding maintenance and repair) of public buildings, works, streets, drains, sewers, utilities, parks and playgrounds shall be let to the lowest responsible bidder.” The section further states that “the City Council may declare and determine that, in its opinion, the work in question may be performed better or more economically by the City with its own employees, and after the adoption of a resolution to this effect by at least four affirmative votes, it may proceed to have said work done in the manner stated, without further observance of the provisions of this section.”
DISCUSSION
Staff believes that the work described below is better performed with City forces based upon the following factors: (1) the work is limited in size and scope; (2) City forces have knowledge and training in operating and maintaining the electric system that can be leveraged to more economically perform this work; and (3) bidding out the work and contracting with a private entity would not likely result in a lower overall cost or time savings. Therefore, staff recommends that the City Council declare and determine that City forces can better perform the installation of the following electric facilities and approve the use of City forces.
Estimate Number: 38722
Location: 3276 San Juan Avenue
Type of Service: New Business (2005)
Description of Work: Remove existing streetlights to be replaced by AT&T and install underground wires to new streetlight.
Estimated Cost: $2,148
Appropriation: Electric Utility Capital Fund (591) Project 2005 - New Business Estimate Work
Source of Revenue: Customer/Developer Contribution
Estimate Number: 39071
Location: Central Substation at Bowers Avenue and Scott Boulevard
Type of Service: New Business (2005)
Description of Work: Removal of existing 750 conductors and installing new 1,100 conductor, bushings, splice at Central Substation and several underground manholes to add additional electrical capacity for Intel.
Estimated Cost: $96,534
Appropriation: Electric Utility Capital Fund (591) Project 2005 - New Business Estimate Work
Source of Revenue: Customer/Developer Contribution
Estimate Number: 38085
Location: 2900 Semiconductor Drive
Type of Service: New Business (2005)
Description of Work: Install 2 vacuum disconnect switches, pull 12kv cable, and reroute existing 12kv service into new vacuum disconnect switch.
Estimated Cost: $432,456
Appropriation: Electric Utility Capital Fund (591) Project 2005 - New Business Estimate Work
Source of Revenue: Customer/Developer Contribution
Estimate Number: 39644
Location: 2330 Monroe Street
Type of Service: New Business (2005)
Description of Work: Install 2 streetlight poles, 2 luminaries, ±75' service conductor, and ±300' streetlight conductor.
Estimated Cost: $11,571
Appropriation: Electric Utility Capital Fund (591) Project 2005 - New Business Estimate Work
Source of Revenue: Customer/Developer Contribution
Estimate Number: 39485
Location: 3800 Bassett Street - Pole 76A01
Type of Service: Capacity/Reliability (2006)
Description of Work: Remove and install air switch.
Estimated Cost: $18,020
Appropriation: Electric Utility Capital Fund (591) Project 2006 - Transmission and Distribution Capital Maintenance Betterments
Source of Revenue: Customer Service Charges
ENVIRONMENTAL REVIEW
Staff recommends that the City Council determine that the action being considered is exempt from the California Environmental Quality Act (“CEQA”) pursuant to the following sections of Title 14 of the California Code of Regulations: (1) section 15302 (Class 2 - Replacement or Reconstruction) as the proposed work involves the replacement or reconstruction of existing utility systems and/or facilities involving negligible expansion of capacity; and section 15303 (Class 3 - New Construction or Conversion of Small Structures) as the proposed work involves the construction or installation of a limited number of small electric utility facilities.
FISCAL IMPACT
The funds to support the staff time for work performed by Silicon Valley Power (SVP) and related construction materials for the work detailed in this report totaling $560,729, are included in the Fiscal Year 2024/25 Capital Budget, as indicated by each project appropriation. Out of the total amount, $542,709 is in New Business Estimate Work (CIP 2005) and $18,020 is in Transmission and Distribution Capital Maintenance Betterments (CIP 2006) in the Electric Utility Capital Fund. All referenced work will be performed by City SVP staff. Some work associated with encroachment permits may be performed by the Department of Public Works (DPW). DPW costs are recovered through payment of permit fees.
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> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Determine the proposed action is exempt from CEQA pursuant to Section 15302 (Class 2 - Replacement or Reconstruction) and Section 15303 (Class 3 - New Construction or Conversion of Small Structures) of Title 14 of the California Code of Regulations; and
2. Declare and determine in accordance with Section 1310 of the City Charter that the public works located at 3276 San Juan Avenue, Central Substation at Bowers Avenue and Scott Boulevard, 2900 Semiconductor Drive, 2330 Monroe Street, and Pole 76A01 at 3800 Bassett Street are better performed by the City with its own employees based on the information set forth in this Report to Council and authorize the performance of these public works consistent with this authorization.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Jovan D. Grogan, City Manager