REPORT TO COUNCIL
SUBJECT
Title
Action on Award of Contract for Construction of the South Loop Project to Hotline Construction, Inc. and Related Budget Amendment
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
On December 8, 2021, Silicon Valley Power (SVP) opened bids for the South Loop Project (Contract No. 2124B). The primary objective of the South Loop Project (Project) is to shift the electrical load demand from the South Loop Circuit to the East Loop Circuit while increasing the power transfer capability of the 60 kilovolt (kV) electric system. The system capacity that is gained from the implementation of this project is needed to maintain system reliability as the electrical demands of the City continues to increase. The project is also critical to maintaining project timelines for new data center customers as well as allowing for load growth at existing data center sites.
The scope of the Project is to construct approximately 3.5 miles of new single and double circuit 60 kilovolt (kV) overhead transmission line within the northeastern area of the city (Attachment 1). The proposed construction contract consists of all labor and equipment required to install and energize the proposed overhead transmission lines. The major materials for the Project including overhead conductor and steel poles were separately procured by SVP.
The Project was first advertised for bid on August 9, 2021. After an eleven (11) week advertisement period, and two pre-bid meetings, no bids were received. Staff modified the contract documents to allow flexibility in standard working hours and reduce the liquidated damages (i.e., penalty amounts imposed for delay) from $10,000 a day to $2,500 a day. SVP advertised the project a second time on November 11, 2021 for a four (4) week period. Staff also contacted several qualified contractors directly in an effort to encourage bids. On December 8, 2021, the City opened ...
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