REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to Increase the Purchase Order Authorization and Extend the Rental Term with Atlas Copco Rental for the Rental of an Air Compressor at the Donald Von Raesfeld Power Plant, for Additional Compensation Not-to-Exceed $321,168, for a Total Aggregate Maximum Compensation Not-to-Exceed $921,168, Inclusive of $600,000 Previously Authorized by the City Council
Report
BACKGROUND
The City of Santa Clara’s Electric Department, Silicon Valley Power (SVP), operates two power plants in Santa Clara: the Donald Von Raesfeld Power Plant (DVR) and the Gianera Generating Station (Gianera), as well as other power generating assets. These facilities rely on compressed air systems to supply clean, dry air that is essential for the control and operation of critical equipment, including turbines, pumps, and pressure vessels.
DVR is designed to operate with two air compressors to provide the reliability and redundancy necessary to support plant operations. In August 2023, one of the two air compressors failed. To address this immediate need, SVP secured a rental air compressor from Atlas Copco Rental (Atlas), the original equipment manufacturer (OEM) of DVR’s existing compressors. Atlas was identified as the sole vendor offering trailer-mounted rental air compressors. The rental unit provides necessary backup capacity for DVR’s instrument air system and reduces the risk associated with relying on a single functioning permanent air compressor.
In January 2025, the City Council authorized the issuance of Purchase Orders to Atlas for the rental of an air compressor at DVR for a total amount not to exceed $600,000, through September 30, 2026 (Attachment 1, RTC 25-1019).
SVP now seeks City Council authorization to increase the total purchase order authorization and extend the rental term through March 31, 2028.
DISCUSSION
In October 2025, the City Council approved an agreement with ACCO Engineered Systems, Inc....
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