REPORT TO COUNCIL
SUBJECT
Title
Action to Amend Prior Authorization to Allow Issuance of Purchase Orders to Cooper Power Systems, a Wholly Owned Subsidiary of Eaton Corporation, for the Purchase of Switchgear Within the Previously Authorized Maximum Amount of $1,500,000
Report
BACKGROUND
On March 7, 2023, pursuant to Section 2.105.280(b)(2) of the Santa Clara City Code, the City Council authorized the sole source purchase of switchgear from Eaton Corporation (RTC #23-101). The purchase supported, among other things, the interconnection of a new photovoltaic and battery storage facility at West Valley Mission Community College (Mission College) with Silicon Valley Power's distribution system.
The authorization included an amount not-to-exceed $400,000 for switchgear and associated equipment for the Mission College facility, as well as authority to purchase additional switchgear from Eaton Corporation for Silicon Valley Power (SVP), up to a total amount not-to-exceed $1,500,000.
DISCUSSION
Staff have been notified by Eaton Corporation that the switchgear to be procured is manufactured by its wholly owned subsidiary, Cooper Power Systems. As a result, purchase orders and payments for the switchgear must be issued to Cooper Power Systems rather than to Eaton Corporation. Because Cooper Power Systems is a separate legal entity from Eaton Corporation, it is recommended that the existing City Council authorization be amended to reflect the correct vendor's name.
In addition to the vendor's name change, Eaton Corporation requires the City to accept its standard Terms and Conditions for any purchase orders issued. Staff, in coordination with the City Attorney's Office, have negotiated modifications to these Terms and Conditions and is recommending approval of the attached Terms and Conditions for use on all purchase orders issued to Eaton Corporation and/or Cooper Power Systems.
Approval of the recommendations does not increase the previously authorized maximum co...
Click here for full text