REPORT TO COUNCIL
SUBJECT
Title
Action on Delegation of Authority to the City Manager to Negotiate and Execute Amendment No. 7 to the Agreement with Applied Power Technologies, Inc. for Electrical Power Monitoring Systems Support and Maintenance Services
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City of Santa Clara’s Electric Utility, Silicon Valley Power (SVP), uses an Electrical Power Metering System (EPMS) to monitor and analyze power quality. The EPMS collects energy usage and disturbance data using distributed power-quality meters, which are installed throughout SVP’s substations. This data is logged in an on-site database and used to generate reports, display real-time single-line human-machine interface views, and trigger alarms for critical power events. The EPMS sends customized notifications to SVP’s teams including engineering, operations, and SVP key customer representatives. The notifications provide details about the magnitude, duration, and location of disturbances enabling a prompt response, root-cause analysis, and timely customer notification. EMPS also plays a key role in identifying events that originate from PG&E’s system but affect SVP’s service territory.
The EPMS system was originally installed over 20 years ago by Applied Power Technologies, Inc. (Applied Power) and has since undergone regular upgrades to stay aligned with current utility standards and SVP operational needs. During that time, Applied Power provided support under various arrangements prior to the current agreement. The EPMS software and database are securely hosted on-site, while power-quality meters are distributed across multiple substations, including six recently commissioned substations. The EPMS will also be installed in other substations which have yet to be commissioned. Integrating meters from these new sites into the existing EPMS will require additional programming, configuration, and licensing work.
The current agreement with Applied Power was executed on June 28, 2018. Since then, six amendments have been executed under the City Manager’s authority of $250,000. These amendments addressed annual maintenance and upgrades, and they also extended the agreement’s term, increased the maximum compensation, and updated the rates.
DISCUSSION
To address the ongoing integration of new substations and maintain reliable monitoring of SVP’s electrical network, staff recommend that the City Council authorize the City Manager to negotiate and execute Amendment No. 7 to the agreement with Applied Power to increase the maximum compensation by $750,000, for a revised total maximum compensation of $1,000,000, and to extend the term through December 31, 2031. While the current agreement and previous amendments were within the City Manager’s authority, the proposed increase exceeds the City Manager’s authority and therefore requires City Council approval.
The estimated costs associated with the amended agreement are outlined in Table 1 below.
Table 1 - Compensation Summary
|
Cost Element |
Estimated Amount |
|
Approved Agreement: |
|
System Maintenance (2018 - 2023, ~$35,000 per year) and support services through June 30, 2025 |
$250,000 |
|
Future System Maintenance and Service Needs: |
|
Ongoing Monitoring Support and Maintenance Services (2025-2031, ~$50,000 per year) |
$300,000 |
|
Integration of New Substations and Meters (~$15,000 per substation) |
$150,000 |
|
Purchase of 250 Additional Licenses (~$10,000 for 25 licenses) |
$100,000 |
|
Additional Support Services for Upgrades, Customizations, and Training |
$200,000 |
|
Subtotal (Proposed Increase) |
$750,000 |
|
Maximum Total Compensation |
$1,000,000 |
Specific tasks under the amended agreement, including annual system support and maintenance, will be authorized through a work authorization process outlined in the agreement.
Approval of these recommendations will enable SVP to integrate new substations and maintain the reliability of its critical power monitoring infrastructure.
ENVIRONMENTAL REVIEW
The actions being considered do not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulation in that it can be seen with certainty that there is no possibility that the proposed actions may have a significant effect on the environment.
FISCAL IMPACT
Sufficient funds are available in the FY2025/26 Adopted Operating Budget in the Electric Utility Operating Fund. Funding for future years will be requested through the normal 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 to: clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager or designee to negotiate and execute Amendment No. 7 to the Agreement with Applied Power Technologies, Inc. (Agreement) for Electrical Power Monitoring Systems Support and Maintenance Services to increase the maximum compensation to $1,000,000 and extend the term through December 31, 2031, subject to the appropriation of funds and approval as to form by the City Attorney; and
2. Authorize the City Manager to take any actions necessary to implement and administer the Agreement, and negotiate and execute amendment(s) to (a) add or delete services associated with the services; (b) adjust future rates based on market conditions, and (c) make de minimis changes, subject to appropriation of funds, and the review and approval as to form by the City Attorney.
Staff
Reviewed by: Nico Procos, Director of Silicon Valley Power
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Agreement with Applied Power Technologies, Inc.
2. Amendment No. 1 to the Agreement with Applied Power Technologies, Inc.
3. Amendment No. 2 to the Agreement with Applied Power Technologies, Inc.
4. Amendment No. 3 to the Agreement with Applied Power Technologies, Inc.
5. Amendment No. 4 to the Agreement with Applied Power Technologies, Inc.
6. Amendment No. 5 to the Agreement with Applied Power Technologies, Inc.
7. Amendment No. 6 to the Agreement with Applied Power Technologies, Inc.