RESPONSE TO COUNCIL QUESTIONS RE: 5/9/23 AGENDA
Agenda Item 4.F 23-104: Action on a Resolution Regarding the City of Santa Clara's Intention to Issue Tax- exempt Electric System Bonds for Reimbursement of Expenditures for Certain Capital Improvement Projects of Silicon Valley Power
Council Question:
How can these expansions be funded by major power users (future data centers) in the future? I think our data centers should share part of the expansion as they are getting discounted power in Santa Clara. As most of our power usage forecasted increase is due to data center expansions/additional, we should explore ways for these data centers to invest in capital improvements.
Staff Response:
The proposed projects are significantly funded by major power users. As presented as part of SVP quarterly reports, the proposed projects are both replacement of obsolete infrastructure (funded by ratepayers) and increase in capacity (funded by load development fee).
The load development fee, which will fund the expansion and capacity increase of these projects, was comprehensively updated and approved by Council on 04/19/22. The update increased the load development fee for dedicated 60kV customers (data centers) by 45.4% for and for dedicated 12kV customers (typically data centers) by 63.3%. As comparison the load development fee increase for an overhead line residential customer (typical) was 3.21%. In addition, these fees were updated again and approved by Council on April 18, 2023 for FY 2023/24. As part of this most recent update the fees increased for 60kV customers by an additional 48.0% and for dedicated 12kV customers by 42.8%.
For the ratepayer portion of the projects, industrial projects will fund 91.5% (approximately 60% data centers) and residential projects will fund approximately 6%.
Agenda Item 4.J 23-138: Waive First Reading and take Action on the Introduction of an Ordinance to Repeal Chapter 15.45 (Prevention of Flood Damage Code) and Adopt the New Floodplain Management Ordinance Establishing a New Chapter 15.45 (Floodplain Management Regulations) of the Santa Clara City Code. (CEQA:
Exempt Pursuant to CEQA Guidelines Section 15061(b)(3), Projects Which Do Not Have the Potential for Causing a Significant Effect on the Environment)
Council Question:
I see the date at the bottom of the ordinance as Rev 09/2019. Why?
Staff Response:
The revision language referenced is a clerical error, which will be corrected. This is a recently revised draft ordinance. The previous revision to this ordinance was done in 1987.
Council Question:
I see that building codes are upgraded for one foot freeboard above floodplain but what is the city doing to reduce flooding? Better pumps?
Staff Response:
The City has several mitigation projects, addressing the prevention of potential flooding impacts to the storm drain through the CIP budget. This ordinance specifically addresses private development and a coordination between FEMA regulations and Appendix G of the California Building Code (CBC).
2 Council Question:
It seems to me that a CRS Class 7 rating is pretty bad since 1 is best and 10 is worst. How is the Climate Change prediction of bigger storms accounted for?
Staff Response:
In California, only 24 communities have a better rating than Class 7, and most of those communities have a score of 6 and are frequently Counties.
Climate Change modeling is addressed through revised FEMA flood maps and those are adopted and included in the CBC. Effectively, more properties are included within flood zones and therefore required to comply with the additional provisions of the CBC and this Floodplain ordinance to minimize damage caused by flooding to the built environment.
Council Question:
Does that CRS rating account for sea level rise for properties near the Bay? Is that an average over the entire city?
Staff Response:
The CRS rating accounts for the city’s overall efforts to reduce risk of flooding and the associated discount will be applied across the City to all properties purchasing flood insurance, including properties in Special Flood Hazard Areas which have the highest probability of flooding.
Council Question:
What are the CRS ratings/targets for neighboring cities SJ, Mt View, Sunnyvale, PA?
Staff Response:
Most cities in Santa Clara County have a 7 rating including San Jose, Mountain View, & Sunnyvale. Palo Alto has the best rating in Santa Clara County with a rating of Class 6. Santa Clara County has a rating of class 10.
Agenda Item 6 23-556: Public Hearing: Waive First Reading and take Action on the Introduction of an Ordinance to Amend Zoning Code Section 18.60.050 to Permit Fuel Cells and Photovoltaic Panels as an Allowable Use without Need for a Use Permit, as well as Require Other Electric Power Plants to Adhere to State of California Emissions Requirements in MP - Planned Industrial, ML - Light Industrial, MH - Heavy Industrial, B - Public, Quasi-Public, and Public Park or Recreation, and PD - Planned Development Zoning Districts
Council Question:
Since Bloom boxes are baseload and rely on the SVP grid for backup, is there an interconnection charge or demand charge that is imposed in case the bloom box goes down and creates a sudden demand on SVP’s grid? • What is the rate?
Staff Response:
Yes there is a standby rate they are required to pay.
The Demand Rate Charge varies by schedule:
For CB-1 schedule its $9.62 per KW
For CB-3 schedule its $12.84 per KW
For CB-6 schedule its $23.40 per KW
There are additional calculations and analysis as described in the Schedule for each one.