REPORT TO COUNCIL
SUBJECT
Title
Action on an Agreement for Services with SEL Engineering Services, Inc. (SEL ES) for Phase Shifting Transformer (PST) Controller Upgrades and Finalization
Report
BACKGROUND
In spring 2016, the Electric Department, Silicon Valley Power (SVP), placed in service a Phase Shifting Transformer (PST). The PST allowed SVP to increase its usage of the 230kV system which reduced the Transmission Access Charges (TAC) by approximately $5-$8 million per year. Since the PST's implementation, SVP has initiated minor design upgrades to the PST, including the PST controller, which will improve normal operation and further increase TAC savings. To accomplish this, additional programming and hardware is required to reconfigure the controller and devices. The proposed attached agreement will institute engineering and design services to implement these upgrades.
DISCUSSION
SEL ES is a licensed professional engineering firm and was retained by the City in May 2015 to assist with the implementation of the PST. SEL ES provided design and drafting services for SVP Switching Substation (SSS) PST and Northern Receiving Substation (NRS) 230kV relay upgrade projects, along with consulting services for the application of SEL ES's patented PST control system.
Based on SEL ES experience, proprietary design, and manufactured equipment, staff recommends that the City Council award a sole source contract to SEL ES to provide engineering services to upgrade and finalize the PST controller. Sole sourcing the Agreement is in accordance with Santa Clara City Code Section 2.105.330 (e)(2). This section provides for a sole source contract where the service or personnel is unique or the available contractors providing the service are few in number. The services described in the Agreement are only available from SEL ES as they are the manufacturers of the equipment and are solely authorized to perform programming in order for the City to maintain warranty an...
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