REPORT TO COUNCIL
SUBJECT
Title
Action on the Award of a Purchase Order to Charles Electric for Electrical Support Services
Report
BACKGROUND
The Water & Sewer Utilities Department (Department) is responsible for maintaining 26 water well sites, four water storage tank sites, and seven sewer pump station sites. The associated components supporting the operation of the utility sites include electronic control panels, generators, motors, pumps, communication equipment, and various electrical devices, such as wiring, conduit, relays, switches, and breakers. The Department requires the use of a licensed electrical contractor to assist staff in troubleshooting, testing, calibrating, and repairing site equipment and controls to ensure proper operation.
DISCUSSION
On May 3, 2019, staff issued a Request for Bid (RFB) to procure the services of a qualified vendor to provide as-needed electrical support services for the City’s water and sewer assets using BidSync, the City’s e-procurement system. A total of 46 companies viewed the RFB and three bids were received as follows:
|
Vendor Name |
Bid Price |
|
Charles Electric |
$225,500 |
|
True Blue Automation Services |
$309,250 |
|
Mongoose Electric Incorporated |
$344,500 |
It is estimated that the annual aggregate spend will be $225,500 based on 1,500 hours of work annually. Staff recommends issuing a purchase order to Charles Electric in the amount of $225,500 as the lowest responsive and responsible bidder.
The initial term of the purchase order (Attachment 1) is approximately 12 months starting on or about November 1, 2019 and ending on October 31, 2020, with four one-year options to extend the purchase order.
The hourly rates are detailed in the Bid Pricing Form (Attachment 2). In addition, there is a materials markup of 10% over cost for as-needed electrical parts such as relays, breakers, switches, and wiring. Charles Electric may request annual adjustments to the compensation after the initial 12-month term, subject to the vendor demonstrating that the requested increases are justified.
ENVIRONMENTAL REVIEW
The action being considered is exempt from formal environmental review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15301(b) (Class 1 - “Existing Facilities”) as the activity consists of the operation, repair, and maintenance of existing public structures, facilities, and mechanical equipment, including publicly-owned utilities, involving negligible or no expansion of the existing use.
FISCAL IMPACT
The cost of the proposed work shall not exceed $225,500 during the initial one-year term. There is sufficient funding in the Water & Sewer Utilities Department’s adopted operating budget to cover this agreement. The Sewer Utility Fund will cover 60% ($135,300) of the cost, while the remaining 40% ($90,200) will be funded by the Water Utility Fund.
COORDINATION
This 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, 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. Authorize the City Manager to execute a purchase order with Charles Electric for an initial term starting on or about November 1, 2019 and ending on October 31, 2020, for a maximum compensation not-to-exceed $225,500 during the initial term; and
2. Authorize the City Manager to exercise up to four one-year options to renew the purchase order through October 31, 2024, subject to the annual appropriation of funds.
Staff
Reviewed by: Gary Welling, Director, Water & Sewer Utilities Department
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Sample Purchase Order for Charles Electric
2. Bid Pricing Form for Charles Electric