REPORT TO COUNCIL
SUBJECT
Title
Action to Award a Public Works Contract for the Juliette Substation Expansion Project CIP No. 2462 to Par Western Line Contractors, LLC, for a Not-to-Exceed Amount of $12,889,123, Inclusive of a 15% Contingency, Funded by the Electric Utility Capital Fund, and Approve a Related Budget Amendment
Report
BACKGROUND
The City of Santa Clara's Electric Department, Silicon Valley Power (SVP), issued a public works bid packet to support its Capital Improvement Program (CIP) for the Juliette Substation Expansion Project CIP No. 2462 (Project).
The Juliette Substation was constructed by SVP in the mid-1990s to serve Intel Corporation (Intel) as a single-customer substation. Intel funded the construction of the original facility, which consisted of two transformers. In recent years, Intel has experienced a significant increase in electrical demand due to the continued expansion of its data center operations at this location. Intel requested additional electric capacity to accommodate its load growth which resulted in negotiation and execution of a new Substation Agreement approved by the City Council back in June 2025 (RTC# 25-80). This Substation Agreement establishes the terms under which SVP will increase the electric capacity available to Intel.
To implement the Substation Agreement, the Juliette Substation must be expanded. Intel will fund the substation expansion, including all SVP costs associated with design, procurement, construction, inspection, and testing. To expedite procurement, Intel will procure a third transformer, while the City will contract for the installation of that transformer and for the construction of the required substation improvements. In addition, Intel will pay applicable load development fees for the increased capacity in accordance with the City's Municipal Fee Schedule in effect at the time fees are due, currently estimated at approximately $10 million.
DISCUSSION
In accordance with Section 131...
Click here for full text