REPORT TO COUNCIL
SUBJECT
Title
Action on Authorizing the City Manager to Negotiate and Execute Amendment No. 1 to the Substation Agreement with Vantage Data Centers CA31, LLC for the Bowers Avenue Junction Substation
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
On September 27, 2022, City Council approved a Substation Agreement with Vantage Data Centers CA31, LLC (Vantage) for the Bowers Avenue Junction (BAJ) Substation (RTC 22-1061). Under the BAJ Substation Agreement (“Agreement” - Attachment 1) executed on October 12, 2022, Vantage constructed, at its own expense, BAJ Substation with a capacity of 99 megavolt-amps (MVA) to serve its data center. Costs incurred by SVP related to the design, procurement, construction, inspection, and testing associated with BAJ were paid in full by Vantage as required by the Agreement. The construction of BAJ is complete and Vantage is working on commissioning their facility.
DISCUSSION
The Agreement included Exhibit E (Available Capacity Schedule) and Exhibit G (Vantage Portfolio Operating Limit). Exhibit E details the load ramp and required payments for activities associated with the BAJ Substation. Exhibit G contains the load ramp at four Vantage Data Center locations. Vantage has requested a modification to Exhibit G to modify the load ramp by location without changing the total load of 192.5 MW for the four sites. Staff reviewed the proposal and is supportive of it as it maintains the total load and does not affect any of the California Independent System Operator (CAISO) transmission modeling and commitments. It also better utilizes SVP’s 60kV transmission loop system.
ENVIRONMENTAL REVIEW
The California Energy Commission (CEC) prepared and adopted an Environmental Impact Report (EIR) for the Vantage Data Centers CA31, LLC (Bowers Avenue Junction Substation) data center project in accordance with the California Environmental Quality Act (CEQA). On August 17, 2022, the City of Santa Clara Development Review Committee accepted the EIR, adopted the mitigation monitoring and reporting program, and approved the architectural review.
No additional environmental review is required by the proposed amendment.
FISCAL IMPACT
There are no fiscal changes with the proposed amendment.
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> or at the 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. 1 to the Substation Agreement with Vantage Data Centers CA31, LLC for the Bowers Avenue Junction Substation on the terms presented, subject to the review and approval as to form by the City Attorney; and
2. Authorize the City Manager or designee to take any actions as necessary to implement and administer the Agreement and to negotiate and execute amendments to the Agreement to make any additional modifications that do not result in increased costs or total capacity exceeding 192.5 MVA, subject to 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. Substation Agreement with Vantage Data Centers CA31, LLC
2. Proposed Amendment No. 1 to the Substation Agreement with Vantage Data Centers CA31, LLC