REPORT TO COUNCIL
SUBJECT
Title
Action on a Substation Expansion Agreement with CoreSite Real Estate Limited Partnerships on Coronado Drive and Stender Way and Approval of Budget Amendment
Report
BACKGROUND
On December 6, 2011, Council approved a Special Facilities Agreement for Electric Services with CoreSite Coronado Stender, L.L.C. and CoreSite Real Estate 2901 Coronado, L.L.C., (CoreSite L.L.C.) for the CoreSite Data Center Development. The City's Electric Department, Silicon Valley Power (SVP), agreed to design, construct and operate the substation facilities to service CoreSite L.L.C., including the anticipated expansion of the CoreSite data center development, as well as other retail electric customers. A 60kV distribution substation was constructed and the 60kV sub-transmission system was modified. CoreSite L.L.C. paid their pro rate share of the development fees for the 40 MVA of capacity reserved at that time.
On January 8, 2013, Council approved Amendment No. 1 to the Special Facilities Agreement in order to provide interim power to the CoreSite facility at 2972 Stender Way and temporary power to 2900 Stender Way.
On May 22, 2018, Council approved Amendment No. 2 to the Special Facilities Agreement in order to increase the amount of electric capacity that CoreSite may receive from SVP for the CoreSite Campus. The total amount of electric capacity to be made available to the CoreSite Campus increased by 10 MVA, from 40 MVA to 50 MVA.
DISCUSSION
CoreSite will be constructing a new data center at 3045 Stender Way (SV8) and this facility will be served by SVP under the terms of this agreement. Coresite anticipates that their energy demand for their expanded campus will increase by 30 MVA after the construction of SV8. Based on the anticipated increase in electric load capacity, the addition of a third transformer bank ("Substation Expansion") at Fairview Substation is required. Upon completion of the Substation Expansion, the total capacity av...
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