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APPROVE MOTION TO AUTHORIZE THE PACIFIC GAS AND ELECTRIC AGREEMENT FOR THE INDUSTRIAL DRIVE EXTENSION PROJECT
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RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.
2. Approve and authorize the City Manager to execute the Gas and Electric Agreement with Pacific Gas and Electric in the amount of $154,446.39 for a new electrical service for the Industrial Drive Extension, Project No. WT21015.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this motion.
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Summary
The Industrial Drive Extension project is located in south Stockton on Industrial Drive between B Street and Pock Lane (Attachment A). The project will construct a new roadway segment along Industrial Drive, which includes sidewalks, curb and gutter, pavement, streetlighting, a new traffic signal, striping, and signage.
The project requires Pacific Gas and Electric (PG&E) to establish new electrical service for the new traffic signal at Industrial Drive and Pock Lane and new street lighting along Industrial Drive. A Gas and Electric Agreement (Attachment B) needs to be executed for PG&E reimbursement of any necessary materials and electrical upgrades. It is recommended that Council approve a motion to authorize the City Manager to execute the Gas and Electric Agreement with PG&E in the amount of $154,446.39. Construction of the Industrial Drive Extension project is anticipated to begin in winter 2026 and is anticipated to be completed by summer 2027.
DISCUSSION
Background
The Industrial Drive Extension project is located in south Stockton on Industrial Drive between B Street and Pock Lane (Attachment A). The project will construct a new roadway segment along Industrial Drive, which includes sidewalks, curb and gutter, pavement, streetlighting, a new traffic signal at Pock Lane, striping and signage.
The Industrial Drive Extension project will require new electrical service to accommodate the new traffic signal at Industrial Drive and Pock Lane and new street lighting along Industrial Drive. PG&E requires the project to include the installation of necessary conduits, transformer pads, and pull boxes per PG&E standards. PG&E will complete the new electrical service design and install a new transformer and energize the system.
Present Situation
New electrical power service will be coordinated with PG&E, once the project begins construction and has a contractor aboard. PG&E has provided a Gas and Electric Agreement for their scope of work. PG&E payment for this type of project is a Traffic Control Non-Refundable Payment in the amount of $154,446.39. PG&E offers two payment options for this type of project: the 10-year refundable advance option and the non-refundable 50 percent discount option. The 10-year refundable advanced option for electric is for development or subdivision projects and is not applicable to this project. Therefore, the non-refundable 50 percent discount option in the amount of $154,446.39 is being processed for this project. Project design is currently in progress and is anticipated to be completed by summer 2026. Project construction is anticipated to be completed by summer 2027.
It is recommended that Council approve a motion authorizing the City Manager to execute the Gas and Electric Agreement with PG&E in the amount of $154,446.39 for a new electrical service for the Industrial Drive Extension, Project No. WT21015.
Findings
Pursuant to Stockton Municipal Code section 3.68.070, Council may approve findings which support an exception to the competitive bidding process. These findings include:
1. The City does not have sufficient staff resources to perform the installation required for this project.
2. PG&E is the sole provider for electricity for the City of Stockton.
FINANCIAL SUMMARY
Sufficient funding is available in the Industrial Drive Extension, Project No. WT21015, to fund the Gas and Electric Agreement with PG&E in the amount of $154,446.39.
Attachment A - Vicinity Map
Attachment B - Gas and Electric Agreement