REPORT TO COUNCIL
SUBJECT
Title
Authorize the City Manager to Execute the 3MTM ACCR Terms and Conditions of Sale and to Issue Future Purchase Orders to 3M Company for 3M 715 Aluminum Conductor Composite Reinforced (ACCR) Conductors and Accessories
Report
COUNCIL PILLAR
Deliver and Enhance Quality Efficient Services and Infrastructure
BACKGROUND
In 2008, the City of Santa Clara’s Electric Department, Silicon Valley Power (SVP) evaluated several options for reconductoring its electric lines within the city. Based on the performance of the 715 Aluminum Conductor Composite Reinforced (ACCR) on an existing 60kV line, SVP’s Electric Engineering Division adopted 3M’s ACCR as the standard conductor for SVP transmission lines. In its evaluation of 3M’s ACCR, SVP considered ampacity rating, line clearance, compatibility with existing equipment (e.g., poles and insulators), resistance to damage (e.g., tree branches), and performance history.
As with any operational system, it is necessary to limit equipment variability in order to manage operations and repairs, especially during outages. Since 2008, SVP has exclusively utilized 3M ACCR.
DISCUSSION
Section 2.105.280 of the City Code of the City of Santa Clara (City Code) provides that the City may not write its specification in a manner that limits a procurement to a single manufacturer. The Purchasing Division Manager has determined that the proposed procurement of 3M’s ACCR meets the single source criteria in Section 2.105.280(b)(2) of the City Code. This section provides, “[w]hen required to ensure operation or function to match other products with respect to repair, expansion, or completion of a system, existing structure or program currently in use by the City, including, but not limited to, utility and technology purchases required to achieve interoperability with existing systems or programs.” Therefore, it is recommended that purchases for the ACCR are sourced directly from 3M.
SVP has several upcoming projects requiring 3M ACCR conductors. During the last two years, SVP has faced a number of supply chain and pricing issues. In order to save time, SVP is seeking approval in advance for the purchase of 3M conductors through 2030, up to an aggregate total amount of $2,500,000, and subject to the appropriation of funds. This will permit SVP to quickly issue purchase orders after receipt of a quote, ensuring sufficient inventory for maintenance and adherence to project schedules that are important to completing capital projects critical to SVP’s growth. Upcoming projects requiring 3M conductors include: (1) Northwest Loop Capacity Upgrade (CIP 2444), (2) NRS-KRS 115kV Line (CIP 2455), (3) Walsh-Uranium 60kV Reconductor (CIP 2458), (4) Duane-Scott 115kV Reconductor (CIP 2465), (5) South Loop Reconductor (CIP 2466), and (6) other projects currently being evaluated.
3M requires that the City accept their standard terms and conditions, referred to herein as the 3MTM ACCR Terms and Conditions of Sale. These terms have been reviewed and approved as to form by the City Attorney’s Office.
ENVIRONMENTAL REVIEW
The approval of this action is exempt from the California Environmental Quality Act (“CEQA”) pursuant to Section 15378(b)(2) of Title 14 of the California Code of Regulations in that the proposed action solely involves the procurement of supplies.
FISCAL IMPACT
There is no budgetary impact associated with this authorization. Funding for conductors and accessories associated with this 3MTM ACCR Terms and Conditions of Sale are included in SVP capital or operating budgets where applicable. Budget for projects occurring in the future will be requested through the budget process.
COORDINATION
This report has been coordinated with the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov>.
RECOMMENDATION
Recommendation
1. Authorize the City Manager to execute the 3MTM ACCR Terms and Conditions of Sale and issue associated Purchase Orders to 3M Company with an aggregate total amount of $2,500,000 through December 31, 2030, for 715 Aluminum Conductor Composite Reinforced conductors and related accessories, subject to the appropriation of funds; and
2. Authorize the City Manager to (a) take any actions as necessary to implement and administer the 3MTM ACCR Terms and Conditions of Sale and purchase orders, and (b) negotiate and execute amendments to the 3MTM ACCR Terms and Conditions of Sale and purchase orders, subject to the review and approval as to form by the City Attorney.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. 3MTM ACCR Terms and Conditions of Sale