REPORT TO: BOND COMPLIANCE OVERSIGHT COMMITTEE
SUBJECT
Title
Review and Confirmation of the Proposed Project Alignment with the Voter-Approved Expenditure Plan for Measure I
Report
BACKGROUND
On June 5th, 2025, the Bond Compliance Oversight Committee (Committee) for Measure I, the Public Facilities and Infrastructure Bond Measure, convened its inaugural public meeting. During this meeting Committee members were provided training on their authority, role, and governing rules.
• City Attorney - provided training on: Brown Act, Bylaws, Conflict of Interest & Ethics.
• Outside Bond Legal Counsel Jones Hall - provided training on Bonds 101: Summary covering the Bond Issuance Process including roles, responsibilities, and compliance.
Committee Responsibilities Under Measure I, Section 13
Under Ordinance No. 2069, Section 13 (Transparency and Accountability Requirements), the Committee is charged with ensuring that bond proceeds are expended only for the purposes described in the voter-approved measure. The Committee’s specific responsibilities include:
• Ensuring that project implementation is consistent with the Expenditure Plan.
• Reviewing and reporting on annual performance and financial audits.
• Providing recommendations to City Council on any proposed amendments to the Expenditure Plan.
• Informing the public concerning expenditure of bond proceeds.
The first formal action of the Committee is to review the proposed first phase of projects to be financed with Measure I bonds, and confirm their conformity with the voter-approved Expenditure Plan.
DISCUSSION
Measure I Leadership Team
The City Manager has appointed a Capital Projects Program Manager to lead the program and coordinate administration of Measure I with the Director of Public Works and Finance Director. This leadership team, with the assistance of staff from various departments, will oversee program delivery, project implementation, financial compliance and strategic priorities for the Measure I program.
Capital Projects Delivery Program
Since the passage of Measure I, city staff have been working with stakeholders to support efforts to advance existing and future programmed projects and activities.
City staff have developed the Phase 1 Proposed Project List with a description of each project (Attachment 1), drawn directly from the voter-approved Expenditure Plan (Attachment 2).
Projects have been prioritized to balance readiness, community benefit, and resource availability. As provided in Section 4 of the Expenditure Plan, staff have developed a list of proposed Infrastructure Projects to be included in Phase 1. The factors that are considered in the development and timing of the initial Phase, and the sequencing of projects within each Project Phase time period include:
a) the need to balance available staff and contractor resources;
b) the length of the planning, design, and construction phases of each project;
c) disruption to the public as City services and facilities are removed from service to undergo renovations;
d) legal requirements for the expenditure of Infrastructure Bond proceeds (in general, under current federal tax law, the City must expect to spend 85% of each series of Infrastructure Bond funds within three years of their date(s) of issuance );
e) the timing and availability of alternate and supplemental funding sources;
f) local, regional, state or federal permitting requirements;
g) the need to coordinate with outside agencies.
A summary of the proposed projects is listed below:
Phase #1 Proposed Projects & Total Cost $98,634,500
(includes $2M in estimated bond costs)
1. Streets and Transportation - $27,370,000
Street Resurfacing and Rehabilitation - $16,000,000
ADA Improvements - $5,000,000
Creek Trail Rehabilitation - $2,500,000
Bicycle Wayfinding - $300,000
Contingency/Escalation/Administration - $3,570,000
2. Fire Stations and Emergency Response - $12,285,450
Fire Station 5 Replacement - $4,000,000
Fire Training Tower Renovation - $783,000
Fire Station Security Upgrade - $1,900,000
Fire Station 7 Replacement - $4,000,000
Contingency/Escalation/Administration - $1,602,450
3. Police Facilities - $805,000
Real Time Intelligence Center (RTIC) Feasibility - $150,000
Police Training Facility Feasibility & Assessment - $250,000
Police Department Drone First Responder Infrastructure - $50,000
Emergency Operations Center Infrastructure - $250,000
Contingency/Escalation/Administration - $105,000
4. Parks, Library, Senior Center, and Aquatics Facilities - $38,438,750
Community ISC Aquatic Facility Renovation/Replacement (Phase 1) - $22,200,000
Community ISC Aquatic Facility Renovation/Replacement (Phase 2) - $2,000,000
Warburton Park Playground Renovations $3,000,000
Henry Schmidt Playground Renovations $4,325,000
Central Library Restrooms Remodeling & Access Control Redesign - $250,000
Central Library Lighting Control System Replacement - $250,000
Central Library Entry Auto Door System Replacement - $200,000
Central, Mission, and Northside Libraries Renovation Designs - $1,200,000
Contingency/Escalation/Administration - $5,013,750
5. Storm Drain System Improvements - $16,585,300
Storm Drain System Improvements - $5,000,000
Green Storm Drain Infrastructure Design & Construction - $6,645,000
Bowers Ave Underpass SDPS Rehabilitation - $2,030,000
SDPS Motor and Control Replacement - $347,000
Storm Drain Pump Station Outfall Reconstruction Program - $250,000
Storm Drain Renovations - $150,000
Contingency/Escalation/Administration - $2,163,300
6. Historic Buildings and Beautification - $1,150,000
Triton Museum Renovation - $1,000,000
Contingency/Escalation/Administration - $1,500,000
The Committee is tasked with confirming that these projects are consistent with the voter-approved Expenditure Plan. The Committee’s role is to review the proposed allocations, ensure they align with Measure I’s purposes, and provide confirmation to the City Council.
Next Steps: Bond Issuance Timeline
The Department of Finance is preparing the first phase bond issuance process. The anticipated timeline of key milestones is as follows:
• September 2025 - City Council Consideration/Approval of Phase #1 Project List
• Fall of 2025 - Update City’s Debt Management Policy
• November - December 2025 - Credit Rating Agency presentation and feedback
• December 2025 - January 2026 - Finalize bond structure, Preliminary Official Statement (POS), and disclosure documents
• January 2026 - City Council Consideration/Approval of Bond documents
• February 2026 - Bond sale, closing, and availability of funds for Phase #1 project reimbursement and implementation
Next Committee Meeting
The Committee will meet again in early 2026 for an update of the Measure I program, including a financial update, and to develop the committee’s process for the development of the Annual Report and Audit.
ENVIRONMENTAL REVIEW
The action being taken does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that this is an administrative activity that will not result in direct or indirect physical changes in the environment.
FISCAL IMPACT
There is no fiscal impact for oversight of the Measure I Bond program other than staff time.
COORDINATION
This report has been coordinated with the Finance Department, Department of Public Works, and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
The Bond Compliance Oversight Committee take the following action:
1. Approve confirmation that the Phase 1 Proposed Project List is consistent with the voter-approved Expenditure Plan for Measure I.
Staff
Reviewed by: Marc Freitas, Deputy City Manager
Approved by: Elizabeth Klotz, Assistant City Manager
ATTACHMENTS
1. Proposed Project List Phase #1
2. Expenditure Plan