City Council Staff Report Page 1 of 3 January 13, 2026
Staff Report
Agenda Item No. 4.7
DATE: January 13, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt a Resolution Awarding a Construction Contract to SCC Electric, Inc., in the Amount of $167,500, Approving a Total Construction Budget of $185,000, Approving a Total Project Budget of $235,000, and Approving a Budget Transfer, in the Amount of $50,000, from the General Liability Self-Insurance Fund, for the City Hall – Mobile Generator Tap Box Project, City Project No. 22-29
EXECUTIVE SUMMARY
Staff recommends that the City Council adopt a resolution awarding a construction contract to SCC Electric, Inc., in the amount of $167,500, approving a total construction budget of $185,000, approving a total project budget of $235,000, and approving a budget transfer, in the amount of $50,000 from the General Liability Self-Insurance Fund, for the City Hall – Mobile Generator Tap box Project, City Project No. 22-29.
STRATEGIC PLAN ALIGNMENT
This agenda item is aligned with the following:
Goal D, Strategy 2: Environmental Sustainability and Infrastructure – Implement the City’s capital improvement plan.
BACKGROUND
City Hall is an essential facility that includes general administration and 24-hour Police Department operations. In the case of an emergency, City Hall has a dependable backup generator to ensure the building does not lose power. However, to safeguard public safety operations, staff recommend installing an electrical connection (tap box) to provide a connection to a mobile generator. This will accommodate a secondary backup power option if the primary generator malfunctions. The construction project includes the installation of manual electrical transfer switches, a distribution panel, a generator tap box, trenching, boring, and conduit and conductors. This will allow City Hall to run power from a mobile generator, if necessary, located in the Police Department parking lot.
DISCUSSION
Agenda Item No. 4.7
City Council Staff Report Page 2 of 3 January 13, 2026
The Request for Proposals (RFP) for the City Hall – Mobile Generator Tap Box Project, City Project No. 22-29, was advertised on the City’s website on September 22, 2025, and with the active builder exchanges listed in the California Uniform Construction Cost Accounting Commission’s Cost Accounting Policies and Procedures Manual 2019 Edition. Five bids were received and opened on October 31, 2025, at 10:00 a.m. PST at City Hall.
SCC Electric, Inc., submitted the lowest bid, which was deemed both responsive and responsible, and all reference checks were satisfactory. Staff recommends awarding the construction contract to SCC Electric, Inc., of Novato, California, in the amount of $167,500.
The lowest bid exceeds the engineer’s estimate of $110,000 ($100,000 plus a 10% contingency amount of $10,000) by $57,500. This difference from the estimate reflects developments that occurred after the Request for Proposals (RFP) was released, including both a revised cost for conduit boring under the Police Department parking lot and a revision to the location of the tap box to the opposite side of the parking lot, as well as significant cost increases from the previous contractor quotes used as the baseline for the RFP. The tap box would be located adjacent to the retaining wall near Royal Anne Drive, farther from the active entry and exit points of the parking lot and building. This will keep the area nearest to City Hall available for staging equipment that may be needed for repair work on the permanent generator or the building during an emergency. Staff requests an additional $50,000 to cover the funding shortage.
FISCAL IMPACT
The total project budget for this project is as follows:
Project Component Amount
Construction $167,500
Construction Contingency $17,500
Total Construction Budget $185,000
Construction Management $50,000
Total Project Budget $235,000
The current budget for this project is $185,801 in General Fund Account Number 110- 92229-57100, leaving a $49,199 shortfall. Therefore, a $50,000 budget transfer is being requested. Staff recommends that the $50,000 be transferred from Fund 614 – the General Liability Self-Insurance Fund to General Fund Account Number 110-92229- 57100. In the General Liability Self-Insurance Fund, the City requested $650,000 from the Bay Cities Joint Powers Insurance Authority (BCJPIA) to be returned to the City last September 2025. For the past several years, ERMA dividends have been accruing to the City’s Contingency Account at BCJPIA. The total in our Contingency Account was just over $700,000 as of March 31, 2025, and with the concurrence of the City Manager, the City requested that BCJPIA return $650,000 of those contingency funds to the City. Staff determined that the City did not need such a large amount in the Contingency Account at BCJPIA and that funds would be better utilized for critical capital projects. After this $50,000 transfer from the General Liability Self-Insurance Fund, $600,000 will remain for Agenda Item No. 4.7
City Council Staff Report Page 3 of 3 January 13, 2026
future City needs, such as other unfunded and needed CIP projects.
RECOMMENDATION
Staff recommends that the City Council adopt a resolution:
1. Awarding a construction contract to SCC Electric Inc., in the amount of $167,500;
2. Approving a total construction budget of $185,000 for the City Hall – Mobile Generator Tap Box Project, City Project No. 22-29;
3. Approving a total project budget of $235,000 for the City Hall – Mobile Generator Tap Box Project, City Project No. 22-29; and
4. Approving a budget transfer of $50,000 from Fund 614, the General Liability SelfInsurance Fund, to the City Hall – Mobile Generator Tap Box Project, City Project No. 22-29, General Fund Account Number 110-92229-57100.
Prepared by: Jose Gutierrez, Supervising Construction Inspector Submitted by: Marilou Ayupan, Public Works Director
Attachments
1. Attachment 1 – Notice Inviting Bids
2. Draft Resolution
3. Exhibit A – Bid Summary