REPORT TO COUNCIL
SUBJECT
Title
Action on Approval of Three (3) New Full-time Positions to Support Silicon Valley Power’s System Expansion Program
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure.
BACKGROUND
In November 2019, the City of Santa Clara’s Electric Department, Silicon Valley Power (SVP), management team met to discuss the strategic priorities for SVP. At that time, it was identified that SVP was going to experience significant continued electric load growth and SVP needed to develop a capital improvement strategy to meet this growth. Staff determined the need to develop both near-term and long-term strategies to accommodate approved growth and to develop the necessary infrastructure plan options. The City Council has taken many actions in support of this growth as a part of SVP’s System Expansion Plan, including approving master service agreements with engineering consulting firms (RTC’s #20-854, #22-166, and #23-737), accepting SVP’s Three-Year System Growth Plan Strategy (RTC #21-871), and adopting SVP’s system plan for California Independent System Operator’s (CAISO) Transmission Planning Process (TPP) FY2023/24 (SVP System Expansion Plan CAISO TPP FY2023/24) (RTC #22-1172).
SVP staff has worked non-stop on a number of projects required to increase electric capacity in Santa Clara to meet the needs of SVP’s customers. The City Council has also taken some actions to increase staff, but additional staffing is needed to support the delivery of required infrastructure projects as these projects move into the construction phase.
SVP issued public works bid packets to support the Electric Utility Capital Improvement Program (CIP) Kifer Receiving Station (KRS) and Scott Receiving Station (SRS) Rebuild and Replacement Project, Projects No. 2453 and 2456, respectively and the Northern Receiving Station Upgrade and Expansion Project, Project No. 2454. The proposed projects were identified in SVP’s Three-Year System Growth Plan Strategy that was accepted by the City Council on September 28, 2021, (RTC #21-871) to support anticipated system growth and to replace end-of-life equipment for system reliability. Currently, staff supporting the System Expansion Program include one Electric Division Manager, one Principal Electric Utility Engineer, one Electric Program Manager, and two Senior Electric Utility Engineers, or five total staff members. The team has only once been completely staffed over the past four years for a period of less than two-weeks’ time and has been operating on average more typically with two to three team members.
DISCUSSION
Staff has completed a preliminary review of the large capital improvement projects and their needs and is requesting the addition of critical positions for SVP. These additional positions align with current strategic objectives. SVP is currently undertaking an organizational assessment that is scheduled to be completed in October 2025. Even though the addition of these positions is in advance of the overall organizational review, starting recruitment as soon as possible will align new resources to support these major expansion projects, which is critical. Staff expects recruitment to require at least six months.
SVP has a team that focuses on the $400+ million System Expansion Plan projects (NRS, KRS, SRS, 115 kV Transmission Line). The SRS and KRS projects begin construction in September of 2025 and will stretch an already thin staff that has been focused on project design, land acquisition, and procurement activities associated with all System Expansion Projects. Construction and outage coordination in an energized receiving station creates an entirely different set of challenges that requires dedicated and focused staff to work in conjunction with SVP staff, construction contractors, and the many consulting staff providing project management. In addition to the currently approved projects, there are a number of anticipated additional projects that staff is working on to bring to the City Council that require additional full-time employees for successful design and delivery. These include:
• Four 60kV reconductor projects
• Breaker replacement projects
• Phase Shifting Transformer project
• Construction of seven substations
• Two additional distribution substation expansions
Staff recommend the addition of the following three full-time positions to expand the System Expansion Program delivery team supporting over $400+ million worth of projects and additional projects coming as identified above, transfer institutional knowledge, and increase the technical depth for critical positions (some key job activities are listed):
1. One Senior Electric Utility Engineer
a. Planning, design, analysis, and studies for upcoming and ongoing projects;
b. Oversee construction of the three (3) concurrent receiving station projects and one (1) 115kV transmission line;
c. Formulate, prepare or direct preparation of general operating procedures and guidelines including system outage coordination;
d. Coordinate and oversee onsite testing and commissioning of new and existing equipment; and
e. Act as the point of contact for the contractor for SVP for construction related issues or information.
2. One Electric Utility Engineer
a. Designs, assists in coordinating the design of, and manages upcoming and ongoing projects;
b. Prepares and/or assists in the preparation of design and construction standards, equipment procurement specifications, construction specifications and drawings, design procedures, test procedures, and safety procedures; and
c. Prepares contracts, agreements, technical specifications, reports, minutes and other related documents.
3. One Management Analyst
a. Oversee Procurement efforts totaling approximately $163M for the current and future projects;
i. Track material dates and coordination with contractors for delivery of SVP procured equipment;
b. Manage budget reviews, cycles, tracking for consultant and construction contracts including invoice reviews;
c. Contract management support ($205+ million value construction contracts) including:
i. Amendments;
ii. Request For Information database and tracking;
iii. Purchase Orders; and
iv. Change Orders.
d. Oversee and track easement acquisition process including legal review and eminent domain process;
e. Create Call for Proposals, Scopes of Work; and
f. Reports to Council creation/tracking/management.
The two engineering positions are in Unit 4 (classified) and the Management Analyst Position is in Unit 9 (unclassified).
If the positions are approved, SVP and the human resources department will collaborate on next steps to recruit and hire these positions.
ENVIRONMENTAL REVIEW
The proposed staffing changes are not a project subject to the California Environmental Quality Act (CEQA) pursuant to section 15378(b)(5) of Title 14 of the California Code of Regulations as they are administrative activities that will not result in direct or indirect physical changes to the environment.
FISCAL IMPACT
The annual cost of the three (3) full-time positions listed is approximately $785,000 and will be funded by the Electric Utility Fund. The projected system growth will result in a net revenue increase sufficient to cover these additional personnel expenditures. Considering potential hiring timelines and the anticipated vacancy savings from other existing unfilled positions, sufficient budget is available for the additional positions in FY 2025/26 and a budget action is not recommended at this time. As positions are hired, SVP staff will monitor the operations budget, and if budget actions are needed for FY 2025/26, will coordinate operating budget adjustments, typically through monthly financial reports submitted by the Finance Department. Future budgets, revenue projections, and rate adjustment calculations will include the costs of these new positions. For future years, the annual cost will be incorporated into the operating budget through the regular process.
COORDINATION
The report has been coordinated with the Finance Department, Human Resources 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 or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Approve the addition of three (3) full-time positions for Silicon Valley Power to support Silicon Valley Power’s System Expansion Program as follows: (a) One Senior Electric Utility Engineer; (b) One Electric Utility Engineer; and (c) One Management Analyst
Staff
Reviewed by: Nico Procos, Director of Silicon Valley Power
Approved by: Jovan D. Grogan, City Manager