REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the Use of City Electric Forces for New Dark Fiber Installations from 3080 Raymond Street to 1101 Space Park, from Centennial Boulevard and Tasman Drive to Levi Stadium, and from 1111 Comstock Street to 2972 Stender Way, with an Estimated Cost of $8,961
Report
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.”
Since 2014, Silicon Valley Power (SVP) developed a Fiber Splicing Technician position as an in-house position to primarily perform maintenance and repairs to meet the performance standards of fiber customers, which includes City departments and commercial customers. Fiber Splicing Technician activities include basic splicing and distribution changes to fiber optic cables. The technician can also perform duties such as pulling, laying, aligning, and positioning fiber optic equipment for new connections to SVP’s fiber network. Fiber Splicing Technicians also perform fusion splicing at building entrances and in maintenance spaces. Currently, SVP employs two Fiber Splicing Technicians.
DISCUSSION
Currently, the SVP fiber optic network serves SVP, other City departments, and various commercial customers. The Fiber Splicer Technician performs a variety of specialized activities from maintenance and repair to new or re-spliced interconnections to SVP’s network. Each interconnection can be unique, involving different hours of labor depending on the number of fibers required to be spliced and the particular location within the network.
Large or extensive projects involving extending fiber cable being laid along new paths or significant distances or adding conduit or related infrastructure are performed by a construction contractor through a public works contract. SVP spends up to $1 million per year on these public works contracts.
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, maintaining and repairing the fiber optic 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 recommend that the City Council declare and determine that City forces can better perform the following fiber optic projects and approve the use of City forces for such projects:
Estimate Number: FWM#01782
Location: From 3080 Raymond Street to 1101 Space Park Drive
Type of Service: Fiber
Description of Work: Splice, terminate and test fibers for a new route from 3080 Raymond Street to 1101 Space Park Drive for a fiber lease customer.
Estimated Cost: $1,948
Appropriation: Electric Utility Capital Fund (591) Project 2004 - Fiber Development Design & Expansion
Source of Revenue: Developer Contribution
Estimate Number: FWM#01758
Location: From Centennial Boulevard at Tasman Drive to Levi Stadium
Type of Service: Fiber
Description of Work: Splice, terminate and test fibers for a new route from the SVP box at Centennial Boulevard and Tasman Drive to Levi Stadium.
Estimated Cost: $2,338
Appropriation: Electric Utility Capital Fund (591) Project 2004 - Fiber Development Design & Expansion
Source of Revenue: Developer Contribution
Estimate Number: FWM#01772
Location: From 1111 Comstock Street to 2972 Stender Way
Type of Service: Fiber
Description of Work: Splice, terminate and test fibers for a new route from 1111 Comstock Street to 2972 Stender Way.
Estimated Cost: $4,675
Appropriation: Electric Utility Capital Fund (591) Project 2004 - Fiber Development Design & Expansion
Source of Revenue: Developer Contribution
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 Section 15303 (Class 3 - New Facilities) of Title 14 of the California Code of Regulations, as the proposed work consists of the installation of new small fiber optic 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 $8,961, are included in the Fiscal Year 2025/26 Budget, Fiber Development, Design, and Expansion project in the Electric Utility Capital Fund. All referenced work will be performed with City Electric Forces (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 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 15303 (Class 3 - New Facilities) 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 with an estimated cost of $8,961 located from 3080 Raymond Street to 1101 Space Park Drive, from Centennial Boulevard at Tasman Drive to Levi Stadium, and from 1111 Comstock Street to 2972 Stender Way 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: Nico Procos, Director of Silicon Valley Power
Approved by: Jovan D. Grogan, CEO Silicon Valley power