REPORT TO COUNCIL
SUBJECT
Title
Action on Authorizing the City Manager to Negotiate and Execute Amendment(s) to the Agreement with Rosendin Electric, Inc. for As-Needed Specialized Electrical Maintenance and Repair Services for Silicon Valley Power
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City of Santa Clara’s Electric Utility, Silicon Valley Power (SVP), operates and maintains two power generation plants, Donald Von Raesfeld Power Plant (DVR) and Gianera, along with multiple substations and other facilities that support electric transmission, distribution, and generation. To ensure the reliability and efficiency of these critical electrical systems, which are vital to ensuring the delivery of electricity to its customers, SVP uses contractors for specialized electrical maintenance and repair services for complex electrical systems, including control systems, power circuits, relays, instrumentation, and other critical electrical equipment at these facilities. Additionally, general electrical services are needed for administrative facilities to support daily operations and staff workspaces.
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.”
On August 4, 2023, the RFP for Specialized Electrical Maintenance and Repair Services was published on the City’s e-procurement system. In addition, the City reached out directly to companies in the industry to inform them of the RFP. A total of 45 companies viewed the RFP and two companies responded by the September 14, 2023, deadline. Rosendin Electric, Inc. (Rosendin Electric) submitted a responsive proposal, while another company submitted a no-bid response indicating prior commitment that prevented them from preparing a proposal.
The evaluation panel reviewed the sole proposal and recommended entering into a master agreement with Rosendin Electric. Staff compared Rosendin Electric’s proposed rates with other City electrical contracts, prevailing wage rates, and Rosendin Electric's historical rates, determining that the proposed rates are fair and reasonable. Rosendin Electric has demonstrated experience and expertise in specialized electrical maintenance and repair services, including installing lighting controls, conduits, pull boxes, wiring, switchgear, low and medium-voltage systems, and other critical electrical work necessary to support SVP’s power generation plants and substation facilities.
On June 1, 2024, following the evaluation committee’s recommendation, staff executed an Agreement for Services with Rosendin Electric, Inc. (Agreement) under the City Manager’s signature authority of $250,000. This action was to ensure the availability of Rosendin Electric to perform critical repair services while awaiting City Council approval for an amount exceeding $250,000. Staff did not authorize any work under this agreement that exceeded the City Manager’s authority.
The term of the agreement with Rosendin Electric is for five years, through May 31, 2029, with a one-year option to extend the term through May 31, 2030. Staff is seeking City Council authorization for the City Manager to negotiate and execute amendments to the Agreement to increase compensation by up to $2,750,000 for a total maximum compensation of $3,000,000. This amount represents SVP’s estimate for specialized electrical maintenance and repair services. Staff is further seeking authorization for the City Manager to negotiate and execute an amendment if staff recommends exercising the one-year term extension option period.
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 mechanical equipment.
FISCAL IMPACT
The maximum compensation for the agreement with Rosendin Electric, Inc. is not anticipated to exceed $3,000,000 over a five-year period. Sufficient funds are available in the FY 2024/25 Operating Budget in the Electric Utility Operating Fund. Funds required for future years will be requested through 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.
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 to negotiate and execute an amendment to the Agreement for Services with Rosendin Electric to increase the maximum compensation up to $2,750,000 for a total maximum compensation of $3,000,000, subject to the appropriation of funds and the review and approval as to form by the City Attorney; and
3. Authorize the City Manager or designee to take any actions as necessary to implement and administer the agreement with Rosendin Electric, Inc. for as-needed specialized electrical maintenance and repair services with a five-year term ending on May 31, 2029, and to negotiate and execute future amendments to the agreement to (a) exercise a one-year option to extend the term of the agreement through May 31, 2030, (b) add or delete services consistent with the scope of services, and (c) make other amendments that do not increase the maximum compensation with all costs to be funded by the Silicon Valley Power Operating or Capital Fund as applicable and subject to the appropriation of funds and the review and approval as to form by the City Attorney.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Agreement for Services with Rosendin Electric, Inc.