ROS Ayeruia Date : June 4.2002
Acjoncla Uem No. 22

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Agency Administration
Facilities

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Prepared by: Duane Oberquell
Director, Facilities
Reviewed by: Linda Mowry
Director, Professional &

Support Services
Submitted by: Susan Murphy
Director, Santa Clara
Valley Medical Center
DATE:

June 4, 2002

TO:

Board of Supervisors

FROM:

Robert Sillcn

Executive Director, Santa Clara Valley Health Sc Hospital System
SUBJECT:

First Amendment to Service Agreement vvitii Cupertino Electric Inc. for Professional Consulting Services
Related to Co-Gcncration Plant

RF.rOTVTiVIF-NnFD ACTION

Board of Supervisors: Donald F. Gage, Blanca Alvarado. Pete McHugh,Jim Bsal!, Liz Kniss
County Executive: Richard Wittenberg

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BOS fttjetKJa Date; June 4.2002
Agenda Item No. 22

Approve Delegation of Authority to Director of Procurement to execute the First Amendment to the Service Agreement
with Cupertino Electric, Inc. relating to technical and economic feasibility study consulting services, increasing the
amount by $100,000, modifying the scope of service, and extending the term through June 30, 2003,following approval
by County Counsel as to form and legality.
FISCAL IMPLICATIONS

There is no fiscal impact to the General Fund as a result of this action. The funding for tliis agreement is included in
Santa Clara Valley Medical Center's FY 02 Approved Budget and FY 03 Recommended Budget.
CONTRACT HISTORY

The Facilities Division established a Service Agreement with Cupertino Electric, Inc.(CEI)in the amount of$95,000 for

period August 23, 2001 through June 30, 2002 to provide a technical, economic feasibility, and environmental

permitting study of a Central Power Plant(Co-Generation Plant) on the Santa Clara Valley Medical Center(SCVMC)
Campus.

This is a Type I contract, subject to the Resolution of Contracting Principles adopted by the Board of Supervisors

on

October 28,1997, The declaration of the contractor is on file with the department.

REASONS FOR RECOMMENDATION

In February 2002, the Finance and Government Operations Committee(FGOC)requested a more detailed analysis of the
existing
proposed Co-Generation Plant on the SCVMC campus. This analysis is beyond the scope of services of the payable
to
delegation
of
authority
because
the
total
compensation
agreement. The Board is being asked to approve this
this consultant will exceed $100,000 in the current fiscal year.

is familiar with
Cupertino Electric developed and completed the study presented to the FGOC in February of 2002, and infrastructure
the contents and requirements for this analysis. CEI is experienced in providing sophisticated electrical the detailed
and reliable power for critical use facilities, and has the capability and knowledge to continue and complete

study. This additional analysis will be presented to the FGOC at its meeting in June of 2002.
BACKGROUND

In April 2001, the CounW’s Emergency Energy Task Force(EETF)requested a report

on

the potential for developing a

sclf-gencration;co-generation plant on the SCVMC campus. At the time, the EETF was interested m mitigatingm the
the cost
potential power shortages forecasted for California. Additionally, the EETF was anticipating further increases
of electricity.

The County contracted with Cupertino Electric, Inc. to develop an economic study to examine the potential feasibility of
then
a co-gencration facility on the SCVMC campus. The preliminary study was completed in July of 2001. The EETF
was
directed GSA to obtain a second opinion/pcer review of the SCVMC study. At the direction of GSA,the study

Board of Supetvisors; Donald F, Gage, Blanca Alvarado, Pete McHugh,Jim Beall, Liz Kniss
County- Executive: Richard Vflttenberg

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BOS Aflettda Date: Ju«ie 4,2002
Agenda Item No. 22

forwarded to Kuhn and Kuhn(K&K)of San Francisco, for a peer review of the feasibility analysis and verification of
assumptions. The K&K report was submitted for consideration to the EETF on October 21, 2001.
At that time, the EETF requested the study be expanded to develop a feasibility sensitivity analysis to include the

spectrum of alternatives within the economic model. This report was presented to the Financial and Government
Operations Committee(FGOC)on February 13, 2002, which had taken over the responsibilities of the EETF.
benefits of
The FGOC requested additional economic information and directed SCVMC/GSA to consider the economic
at
its
June
including the heat recovery system as part of the final study. This analysis will be presented to the FGOC
2002 meeting.

CONSEQUENCES OF NEGATIVE ACTION
Failure to

approve the recommended action will delay the evaluation of a possible Co-Generation Plant on the SCVMC

campus.

ATTACHMENTS

.(Transmittal submitted on May 22, 2002 11:10;15 AM - PDF Version)
* first amendment(Agreements and Amendments)

• Original Agreement(Agreements and Amendments)

Board of Supervisors; Donald F. Gage, Blanca .Alvarado, Pete McHugh,Jim Beall, Liz Kniss

Counh'Executive: Richard Wittenberg

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