REPORT TO COUNCIL
SUBJECT
Title
Action to Waive Second Reading and Adopt Ordinance No. 2087 granting a non-exclusive franchise to LS Power Grid California, LLC on terms and conditions set forth in the ordinance for the Power the South Bay and Power the Valley Connector Projects for the purpose of transmitting electric service in the City's public rights-of-way
Report
BACKGROUND
At the July 7, 2026 Council meeting, proposed Ordinance No. 2087 was passed for the purpose of publication. Pursuant to City Charter Sections 808 and 812, a summary of proposed Ordinance No. 2087 was published to the Santa Clara Weekly on July 8, 2026, and copies were posted in three public places.
DISCUSSION
The proposed ordinance would authorize and grant LS Power Grid California, LLC ("LS Power"), and its successors and assigns, a franchise to install, construct, maintain, and operate underground electric transmission facilities within designated public rights-of-way in the City of Santa Clara.
The proposed franchise term is ten (10) years, with automatic renewals for successive ten-year terms, not to exceed a total term of forty (40) years, unless otherwise terminated in accordance with the franchise agreement and applicable law.
LS Power, and its successors and assigns, shall, during the life of the franchise, pay to the City an annual franchise fee equal to two-point-three percent (2.3%) of the gross revenue derived from operations within the City of Santa Clara, as specified in the franchise application and proposed franchise agreement. In the event such payment is not made, the franchise shall be subject to forfeiture as provided by law.
In addition to other terms and conditions, LS Power will also indemnify the City, post faithful performance security, and will provide adequate insurance throughout the duration of the franchise.
ENVIRONMENTAL REVIEW
The California Public Utilities Commission (CPUC) is the lead agency for the Power the South Bay Project. The CPUC prepared a...
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