REPORT TO COUNCIL
SUBJECT
Title
Action on Substation Service Agreement with Related Santa Clara, LLC for Esperanca Substation
Report
BACKGROUND
On July 12, 2016, the City Council approved the adoption of Ordinance No. 1956 which authorized the City Manager to enter into a Development Agreement with Related Santa Clara, LLC (Related) for the development of the 240-acre City Place Santa Clara project ("City Place"). As part of this Development Agreement, the City has agreed to provide new electric capacity and power transmission facilities to Related for City Place. The City Place development will require certain increased and/or special electric service facilities that will be provided by the City's electric utility provider, Silicon Valley Power (SVP). The City and Related have negotiated a Substation Service Agreement to address the rights and obligations of the parties with respect to providing interim electric capacity and service at full build-out. This Substation Service Agreement addresses such matters as the construction obligations of the City for the additional substation and off-site distribution facilities, electrical service requirements to be provided by the City, construction and payment obligations of Related, and the granting of easements or other property rights.
DISCUSSION
Electric service to City Place will be provided from Esperanca Substation under the terms of this Substation Service Agreement. In addition, SVP will provide interim service capacity of 9MVA which will enable Related to begin construction and operate without interruption until the Esperanca Substation is fully constructed and operational. SVP will design, procure, construct, test and commission all substation equipment necessary and required per SVP's specifications to provide electric service to City Place. Since Esperanca Substation is a general distribution substation, Related will be responsible for their prorated portion of the total cost incurred by SVP relat...
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