The Santa Clara City Council has approved enacting eminent domain on two properties sitting on land needed for a Silicon Valley Power (SVP) transmission line.
At its most recent meeting, June 24, the council approved two resolutions of necessity to secure easements for an SVP 115 kilovolt transmission line. The 2.24-mile line will run from the city’s Northern and Kifer receiving stations along Lafayette and Bassett Streets and Duane Avenue.
Allie Jackman, electric division manager overseeing system expansion for SVP, told the council that the line is needed for SVP’s load growth and reliability. Without the line, she said, the city’s capacity will be limited to 819 megawatts instead of increasing to 1,300 megawatts.
Twenty parcels along the route require easements.
Securing the easements located on properties at 3800 Bassett St. and 891 Laurelwood Rd. is the most tenable option. That is because it meets with the city’s schedule, is most feasible and allows for the best power delivery, Jackman said. Further, she added, it provides the most public good with the least private injury.
The city has been negotiating with each of the property owners for seven months.
“Today, we are here because our negotiations have reached an impasse,” Jackman said.
City Attorney Glen Googins told the council that its decision simply authorizes city employees to move forward with eminent domain. If necessary, a jury will determine the value of the property.
Eminent domain can take up to two years to fully enact. Once enacted, the city can begin construction of the line within five months.
The city recently received an offer from Bassett Street property owner, but Jackman said SVP still wanted to move forward with eminent domain in case that settlement offer didn’t pan out.
Googins told the council that city employees would continue to negotiate with both property owners. If the city is able to reach a settlement at any time in the process, he said, the use of eminent domain would become unnecessary.
Neither property owner — or anyone else — spoke during public comments. The council too made no comments except to ask a few questions of city employees.
Both motions passed 6-1, with Council Member Kevin Park dissenting on both votes. He didn’t explain why.
Large SVP Project Gets Green Light
The council also approved a $117.68 million contract to rebuild two of SVP’s receiving stations. DMZ Builders will overhaul SVP’s Kifer and Scott receiving stations, which were built in 1955 and 1975, respectively.
“The purpose of these projects is to upgrade our transmission system, support anticipated load growth, replace our end-of-life infrastructure and maintain our system reliability,” Jackman said. “We are definitely in need of an upgrade here.”
Because the two stations are near each other, it made sense to lump them together as one project, Jackman said. The project will increase the station’s capacity from 372 megavolt-ampere (MVA) to more than 600 MVA.
The city’s lone bid came in 3% less than the city engineer’s $121.2 million estimate. The contract includes a 15% contingency, which, if used, could bump the project’s total cost to $135.34 million.
Kenn Lee, the city’s finance director, said a second bond issuance later this year or early next year will fund the bulk project. Those bonds would be paid by all ratepayers, he added.
In a unanimous vote, the council approved the contract. Council Member Raj Chahal had to recuse himself. The project is slated for completion in early 2029.
Consent Calendar Spending
The council approved the following spending in one motion via the consent calendar:
- A $398,595 purchase order, through Dec. 14, 2030, with Bound Tree Medical, Inc. for the purchase of emergency medical services.
- $920,144 in purchase orders, through Nov. 8, 2029, to Stryker Corporation for emergency medical services equipment and supplies.
- A retroactive extension to an agreement with Smart Energy Systems through Jan. 31, 2026, with no change to $1.65 million compensation. The vote also extends the agreement through Feb. 1, 2036, with $5.05 million in compensation.
- An extension to an agreement with Ninyo and Moore Geotechnical & Environmental Sciences Consultants and Geocon Consultants, Inc. to provide on-call material testing and special inspection services for SVP. The agreement now goes through March 31, 2033. Total contract amount is now $2 million. The item also authorizes city employees to “adjust future rates based on market conditions.”
- A $56,000 amendment to a three-year contract with Integrated Communications Systems for fire alarm testing, inspection and maintenance at Levi’s Stadium. Total contract: $408,000.
- A one-year, $250,000 contract extension with Bear Electrical Services for on-call electrical maintenance and repair.
The next regularly scheduled meeting is 7 p.m. Tuesday, July 8 in the Council Chambers at City Hall, 1500 Warburton Ave. in Santa Clara.
Members of the public can participate in the City Council meetings on Zoom at https://santaclaraca.zoom.us/j/99706759306; Meeting ID: 997-0675-9306 or call 1 (669) 900-6833, via the City’s eComment (available during the meeting) or by email to PublicComment@santaclaraca.gov
Contact David Alexander at d.todd.alexander@gmail.com
Previous City Council Meetings:
Council Adopts Budget, Hikes Utility Rates
City Amends General Plan to Nix Areas Designated for Future Residential Development
Merchandise Vendor Secures Contract At Levi’s Stadium
Related Proposes Displacing Retail And Office Space In Favor Of Data Centers
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