Two recent Santa Clara City Council decisions will continue to bolster Silicon Valley Power’s (SVP) system expansion.
At its most recent meeting July 8, the council approved a contract for upgrades at SVP’s northern receiving station. The project would add five transformers — three 115 kilovolt and two 230 kilovolt — as part of SVP’s three-year growth plan.
“There are really four purposes for this project: upgrade SVP’s transmission system, support anticipated load growth, replace error aging infrastructure — so this is not unique to SVP; it is something a lot of utilities are dealing with — and then maintain system reliability,” said Nico Procost, director of SVP.
Two contractors bid on the project, both coming in under the engineer’s estimate and within 3% of each other. The city’s engineer estimated the project cost at $70.3 million. The lowest responsive bidder, Henkels & McCoy West, came in 32% lower than the engineer’s estimate at $47.78 million.
Allie Jackman, Silicon Valley Power’s electric division manager, told the council that SVP employees would need to dig into the details as to why the contractor came in so much lower than the engineer’s estimate.
She speculated that the contractor might be capable of performing work typically done by subcontractors in-house, limiting risk. Meanwhile, the city’s engineer likely built in more of a contingency for them.
Because both bidders’ estimates were close to each other, SVP employees are comfortable with the bid amount, she added.
The action also included $12.06 million in bid alternates for future work on a third 230 kilovolt transmission line. Those alternates will fund modifying foundations, replacing steel structures and demolishing existing infrastructure.
Those add-ons push the project cost up to $59.85 million, which is still 15% below the engineer’s estimate.
SVP also requested a $16 million budget amendment as part of the contract approval. That amendment would fund additional project and construction management, testing and commissioning, equipment and material costs and special testing.
The amendment increases the project’s budget from $115.43 million to $131.43 million.
The council unanimously approved the contract. Construction is slated to start later this year with completion in early 2028.
SVP Secures Eminent Domain Approval For Another Parcel
SVP also secured another of the 20 easements it needs to install a 2.24-mile, 115 kilovolt transmission line. The city has already secured approval to pursue eminent domain on two properties along the transmission line’s route, which links SVP’s northern and Kifer receiving stations.
The mostly above-ground transmission line proved divisive late last year, with many residents concerned it would diminish property values and cause adverse health effects despite a lack of scientific evidence.
Just as it did in late June, the council approved a resolution of necessity to enact eminent domain, this time on the property located at 3205 Bassett St.
Securing the easements for the transmission lines is necessary to increase SVP’s system capacity from 800 megawatts to 1,200 megawatts, Jackman said. She told the council that SVP has been negotiating with the property owner for nearly eight months.
“Our attempts to negotiate and reach out to them have kind of stalled at this point, so in order to meet our project timing and implementation requirements, we are now saying it is necessary to consider commencement of eminent domain,” she said.
Once eminent domain is enacted, which can take up to two years, the city can begin construction of the line within five months. SVP will continue to negotiate with the property owner until that window closes.
In a 6-1 vote, the council approved the resolution. Just as before, Council Member Kevin Park voted against the motion without explaining why.
Contact David Alexander at d.todd.alexander@gmail.com
