REPORT TO COUNCIL
SUBJECT
Title
Action on Award of a Public Works Contract for the Laurelwood Junction Transmission Line Extension Project to Henkels & McCoy West, LLC, for a Not-to-Exceed Amount of $883,183, Inclusive of a 15% Contingency, Funded by the Laurelwood Substation Capital Improvement Project (CIP No. 2443) Budget
Report
BACKGROUND
The City of Santa Clara's electric utility, Silicon Valley Power (SVP), issued a public works bid packet for the Laurelwood Way Junction Transmission Line Extension Project (Project). The Project will extend approximately 0.3 miles of an existing 60-kilovolt (kV) overhead transmission line to deliver high voltage power to the Laurelwood Junction Substation (Laurelwood Substation), which is located approximately 0.25 miles east of the intersection of Lafayette Street and Walsh Avenue.
The Laurelwood Substation will serve a Digital Realty data center pursuant to a Substation Agreement between the City and 651 Walsh Partners, LLC. On March 22, 2022, the City Council authorized the City Manager to negotiate and execute a Substation Agreement with 651 Walsh Partners, LLC (RTC #22-1704). Walsh Partners is a Digital Realty Trust data center. The data center consists of a 435,050-square-foot, four-story facility that will house servers and associated electrical equipment, along with an attached three-story power base building fronting Walsh Avenue.
Project work includes installation of two new transmission structures to connect the Laurelwood Substation to the existing SVP transmission line, rebuilding of four existing transmission spans, and installation of two custom tubular steel monopoles supported on drilled concrete piers.
DISCUSSION
On November 24, 2025, in accordance with Section 1310 of City of Santa Clara Charter, which governs the competitive bidding for public works, a competitive Request for Bids (RFB) for the Project was published on the City's e-procurement system.
On January 8, 2026, bids for the Project w...
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