REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment No. 1 to the Agreement for Design Professional Services with Electrical Consultants Inc.
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), has provided dependable electric service for 125 years. SVP’s current peak load is about 600 MW and provides nearly 4,110 Gigawatt-hours (GWh) a year to SVP’s customers. Currently, eight additional projects have received entitlements with the City of Santa Clara which represents an increase of 618 MW. There is an additional 114 MW of planned Commercial and Residential development. This represents 732 MW of expansion over the next ten years. In addition, new developments have made initial requests for more than 400 MW of new load. Based on SVP’s experience with how new load develops, SVP is preparing for its system peak load to double over the next 10 years and increase the number of substations from twenty-three (23) to up to thirty-three (33) by 2026.
On October 13, 2020, City Council authorized the City Manager to execute an agreement with Electrical Consultants Inc. (ECI) for a System Expansion Plan. A System Expansion Plan consists of a short-term and long-term capital improvement plan to accommodate the additional electric load growth due to new development in Santa Clara (Data Centers and Residential Projects).
On September 28, 2021, staff presented the Three-Year System Growth Strategy Plan (Three Year Plan) which was prepared by ECI for SVP and includes an analysis of SVP’s transmission system. The purpose of the study is to identify near-term and long-term improvements for SVP to consider in order to maintain electric service reliability with consideration of significant load growth. The Three-Year Growth Strategy is intended to be a living document and will be reviewed and changed in the future to adapt for a number of factors including load ramp, project feasibility, delivery capacity, shifting needs, priorities, and finances.
DISCUSSION
The Three-Year Plan was the most significant of the tasks to be performed by ECI. ECI has a number of additional tasks outstanding including development of a twenty-year development plan of SVP’s electric system expansion to meet high, medium, and low load trajectory scenarios for future load. The focus of the twenty-year development plan is building a foundation for SVP to meet future load growth over the next twenty years while maintaining electric system reliability.
The current Agreement expires on December 31, 2021. Staff anticipated completing the System Expansion Plan within the fourteenth month term of the agreement, but due to a large number of development activities occurring that impacted the system expansion plan, only the three-year plan was completed. Staff recommends extending the term of the Agreement by two additional years, with the amended term ending on December 31, 2023. ECI has confirmed that rates will not increase and anticipates completing all tasks within the budget of the agreement.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378 (b)(4) in that it is a fiscal activity that does not involve commitment to a specific project which may result in potential significant impact on the environment.
FISCAL IMPACT
Funding for the agreement with ECI was included as part of the Adopted Biennial FY 2020/21 and 2021/22 Capital Improvement Program Budget in the New Business Estimate Work CIP project.
Appropriations needed in future years will be requested as part of the regular biennial budget process.
COORDINATION
This report has been coordinated with the Finance Department and 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 Amendment No. 1 to the Agreement with Electrical Consultants Inc to extend the term of the Agreement by two years, ending on December 31, 2023, with no change in the maximum compensation;
2. Authorize the City Manager to make minor changes to the attached Amendment subject to approval of the City Attorney as to form; and
3. Authorize the City Manager to add or delete services consistent with the scope of the agreements subject to request and justification by contractor, approval by the City, and the appropriation of funds and extend the term, if necessary, for a total term not to exceed five years.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Deanna J. Santana, City Manager
ATTACHMENT
1. Original Agreement for Design Professional Services
2. Proposed Amendment No. 1