REPORT TO COUNCIL
SUBJECT
Title
Action on Funding Agreement with 1220 Santa Clara PropCo, LLC, Relating to City Predesign Engineering Activities for the Memorex Junction Substation Project and Related Budget Amendment [Council Pillar: Deliver and Enhance Quality Efficient Services and Infrastructure]
Report
BACKGROUND
1220 Santa Clara PropCo, LLC, (SC PropCo) proposes to construct a four-story 470,920 square foot data center building at 1230 Memorex Drive that would house computer servers and supporting equipment for private clients. The datacenter facility is proposed to be served by a new single customer electric substation and a related 60kV transmission line extension to the substation.
SC PropCo has requested the City of Santa Clara's Electric Department, doing business as Silicon Valley Power (SVP), to perform predesign engineering activities in parallel with SC PropCo's development and construction approval process which is presently under California Environmental Quality Act (CEQA) review.
DISCUSSION
Under this Funding Agreement, SC PropCo will fund SVP's preparation of system impact studies and predesign activities on the substation, the substation's control building and the off-site 60kV transmission line interconnection, in a parallel path with SC PropCo's CEQA review process.
This Funding Agreement does not provide SC PropCo with any vested right to electric service, any assurance of approval of SC PropCo's project, any budget approvals relating thereto, permit application approvals, the environmental review or any other item relating or arising out of its project or any portion thereof. SVP shall not be liable to SC PropCo for failure to approve any such items.
ENVIRONMENTAL REVIEW
The actions being considered are exempt from the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines Article 20, Section 15378, (b) (4), "The creation of government funding mechanisms or other government fiscal activities which do not involv...
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