HomeMy WebLinkAboutStaff Report 2508-5045CITY OF PALO ALTO
CITY COUNCIL
Monday, October 06, 2025
Council Chambers & Hybrid
5:30 PM
Agenda Item
8.Approval of Construction Contract C25194006 with SCC Electric, Inc. in the Not-to-Exceed
Amount of $997,500, and Authorization for the City Manager or Their Designee to
Negotiate and Execute Change Orders Up to a Not-to-Exceed Amount of $99,750 for the
Utilities Control Center Generator Replacement Project as part of the Building Systems
Improvements Project (PF-01003); and Approve Amendment to the FY 2026 Budget in
the Capital Improvement and Electric Funds; CEQA Status - Exempt under CEQA Guideline
Sections 15301 and 15302
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: October 6, 2025
Report #:2508-5045
TITLE
Approval of Construction Contract C25194006 with SCC Electric, Inc. in the Not-to-Exceed
Amount of $997,500, and Authorization for the City Manager or Their Designee to Negotiate
and Execute Change Orders Up to a Not-to-Exceed Amount of $99,750 for the Utilities Control
Center Generator Replacement Project as part of the Building Systems Improvements Project
(PF-01003); and Approve Amendment to the FY 2026 Budget in the Capital Improvement and
Electric Funds; CEQA Status - Exempt under CEQA Guideline Sections 15301 and 15302
RECOMMENDATION
Staff recommends that the City Council:
1. Approve and authorize the City Manager or their designee to execute construction
contract C25194006 with SCC Electric, Inc. in the amount not to exceed $997,500 for the
Utilities Control Center Generator Replacement Project, part of the Building Systems
Improvements Project (PF-01003);
2. Authorize the City Manager or their designee to negotiate and execute one or more
change orders to the contract with SCC Electric, Inc. for related, additional but
unforeseen work which may develop during the contract period, the total value of
which shall not exceed $99,750;
3. Amend the Fiscal Year 2026 Capital Budget Appropriation for the Capital Improvement
Fund (requires two-thirds vote) by:
a. Increasing the expense appropriation for the Building Systems Improvements
Project (PF-01003) by $597,250; and
b. Increasing the estimate for Transfer in from Electric Fund for the Building
Systems Improvements Project (PF-01003) by $597,250; and
4. Amend the Fiscal Year 2026 Operating Budget Appropriation for the Electric Fund
(requires two-thirds vote) by:
a. Increasing the Transfer to Capital Improvement Fund appropriation by $597,250;
and
b. Decreasing the Electric Fund Operations Reserve by $597,250.
BACKGROUND
1, SCC Electric, Inc. will be responsible for this project.
ANALYSIS
Scope Overview
Table 1: Summary of Bid Process
1 UCC Generator Replacement Project Contract C26194006;
https://www.paloalto.gov/files/assets/public/v/1/public-works/public-services/contracts/c26194006-ucc-
generator-contract.pdf
Number of Bids Received 1
Bid Price Range $997,500
Staff has reviewed the submitted bid and recommends that the bid of $997,500 submitted by
SCC Electric, Inc. be accepted and that SCC Electric, Inc. be declared the lowest responsible
bidder. Although only one bid was received, the submitted bid closely aligns with the engineer’s
estimate of $1 million, indicating that the pricing remains reasonable and consistent with
current market conditions. The award of contract includes the base bid. The change order
amount of $99,750 (which equals 10% of the total contract) is requested for related, additional
but unforeseen work which may develop during the contract term.
Staff confirmed with the Contractor's State License Board that the contractor has an active
license on file. Staff also confirmed with the California Department of Industrial Relations (DIR)
that the contractor has an active DIR registration.
FISCAL/RESOURCE IMPACT
Partial funding for this work is available in the Fiscal Year 2026 Adopted Capital Budget for the
Building Systems Improvement Project (PF-01003). To fully fund the UCC Generator
Replacement Project, the Fiscal Year 2026 budget is recommended to be amended by
increasing the Building Systems Improvement Project (PF-01003) by $597,250, offset by a
transfer from the Electric Fund Operations Reserve in the same amount.
STAKEHOLDER ENGAGEMENT
City staff coordinated closely with Utilities personnel working at the UCC throughout the
planning of the Generator Replacement Project. Input from Utilities staff was incorporated to
ensure the project minimizes operational disruptions and aligns with facility needs. Staff will
continue to coordinate with UCC personnel during construction to maintain safety, access, and
continuity of operations.
ENVIRONMENTAL REVIEW
This contract is categorically exempt from the California Environmental Quality Act (CEQA)
under Sections 15301 and 15302 of the CEQA guidelines as an alteration to an existing facility
and no further environmental review is necessary.
ATTACHMENTS
None.
APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer