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
The existing emergency generator for the Utilities Control Center (UCC) at the Municipal Service Center (MSC) was installed in 1987 and is now 38 years old. Due to its age and outdated technology, the generator no longer complies with the current emissions standards set by the U.S. Environmental Protection Agency for non-road diesel engines. Additionally, sourcing replacement parts for the existing generator has become increasingly difficult, resulting in potential delays and increased maintenance costs. To meet these regulations and ensure reliable emergency power, the generator must be replaced. Under the recommended contract C251940061, SCC Electric, Inc. will be responsible for this project.
ANALYSIS
Scope Overview
The scope of work includes the installation of a new generator along with a new Automatic Transfer Switch (ATS), which is essential for automatically transferring electrical loads during power outages. A triple switch will also be installed to enable safe maintenance and testing operations. All components will be integrated into the existing electrical system.
In addition, the project includes the removal of the underground diesel fuel storage tank. Given its age, the tank poses potential environmental risks such as leakage and soil or groundwater contamination. Removing the tank will eliminate future liabilities and align the UCC with current environmental safety standards. In its place, the project will install a new Tier-4 compliant diesel generator with an integrated above-ground belly fuel tank. The tank is built directly into the generator base and serves as the primary on-site fuel storage. This configuration consolidates fuel storage within the generator system and eliminates the need for separate tanks or underground fuel infrastructure.
Outdoor lighting will also be installed to improve visibility and safety around the generator area, particularly during nighttime maintenance or emergency operations.
Solicitation Process
On April 2, 2025, a notice inviting formal bids for the UCC generator replacement was posted on the OpenGov Procurement website. Thirteen contractors attended the pre-bid meeting; one qualified bid was received by the June 30, 2025 deadline.
Table 1: Summary of Bid Process
Bid Name/Number UCC Generator Replacement Project
IFB #194006
Proposed Length of Contract 120 days
Total Days to Respond to Bid 90
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