REPORT TO COUNCIL
SUBJECT
Title
Authorize the City Manager to Negotiate and Execute an Amendment to the Agreement between the City of Santa Clara and Delta Star, Inc., to Upgrade Transformers at the Juliette Substation, and Related Budget Amendment
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
To meet increasing energy demands and the need for improved reliability, Silicon Valley Power (SVP) requires periodic upgrades to transformers at its substations. Delta Star, Inc. (Delta Star) is the Original Equipment Manufacturer (OEM) for HK Porter Transformers that are installed at various substations. Currently, there is a need to upgrade transformers at the Juliette Substation in order to meet the customer's (Intel's) projected increased demand for power.
DISCUSSION
This recommendation is consistent with Santa Clara Code 2.105.160(b)(2) where a single source procurement is allowable "when required to ensure operation of function to match other products with respect to the repair, expansion or completion of a system.."
Although there are other transformer manufacturers, each transformer's design and assembly are unique and will not interchange or be compatible with other manufacturer's equipment and mounting hardware. As part of any operational system, it is necessary to limit the standard to be able to manage operations and repairs, especially during power outages.
The City Manager has previously authorized an agreement to initiate a study to identify the tasks and estimated costs to upgrade these transformers. At the conclusion of the study, specific scope had been identified including the replacement of the obsolete LTC required to accommodate the increased load request by Intel and a small amendment was executed to accommodate that work. Staff is now seeking authorization to amend the agreement to implement the manufacturer's recommendations.
Staff requests that the City Manager is autho...
Click here for full text