REPORT TO COUNCIL
SUBJECT
Title
Action on Authorizing the City Manager to Negotiate and Execute a Lease Agreement for the Commercial and Warehouse Property Located at 751 Nuttman Street, Santa Clara, for Materials Storage and Construction Support Purposes
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City of Santa Clara's Electric Department, Silicon Valley Power (SVP), continues to experience significant electric load growth driven by increased demand from customers. SVP has a long-term capital improvement strategy to expand and modernize its electric infrastructure to meet this growth and will need ongoing resources to maintain the expanded system. As previously discussed with the City Council, SVP's customer demand for electric power is expected to nearly double over the next decade.
In 2024, SVP reached a new system peak demand of 722MW, surpassing the 2022 peak of 703MW. With planned system expansion projects, including the California Independent System Operator (CAISO) transmission line to be constructed by LS Power, SVP's peak demand is expected to reach approximately 1,300MW by 2030. To support this growth, SVP has a robust capital program that includes the following large projects with construction scheduled to begin in 2025:
* Expansion of the Northern Receiving Station (NRS), Scott Receiving Station (SRS), and Kiefer Receiving Station (KRS)
* Construction of a 115kV Transmission Line
To successfully implement these projects and manage the associated materials, equipment, and contractors, SVP requires additional space for storage and logistics. The existing Central Warehouse located at 1705 Martin Avenue, Santa Clara, is insufficient to accommodate the large-scale materials and equipment required for upcoming capital projects and ongoing maintenance needs, including contractor staging areas and laydown areas. Moreover, other SVP construction projects also add to demands regarding ...
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