REPORT TO COUNCIL
SUBJECT
Title
Action to (1) Adopt a Resolution Declaring an Urgency in Accordance with Charter Section 1310, Contracts on Public Works, to Allow for the Award of Contracts for Projects Implementing Security Measures to Mitigate Risks to Public Services and Facilities without Advertising for Bids, (2) Authorize the City Manager to Execute Agreements, Amendments, and Change Orders for Services, Equipment and Materials in connection with the Implementation of Security Measures to Mitigate Risks to Public Services and Facilities, (3) Approval of one full-time position to develop, implement, and manage Silicon Valley Power’s security measures and (4) Approve Related Budget Amendment
Report
BACKGROUND
On June 17, 2025, in closed session, the City Council received a presentation regarding security risks and vulnerabilities at certain City facilities; this included a presentation from a representative of the U.S. Department of Homeland Security, Cyber & Infrastructure Security Agency (CISA). With risk and threat levels on the rise, both here in the U.S. and internationally, and with the City scheduled to host high-profile international events in 2026, there is an urgent need to address these vulnerabilities. One important and necessary step in this process is to expedite the City’s public works procurement process. This item presents options to accomplish this, with the main recommendation being that the City Council make a declaration of urgency under Section 1310 of the City Charter (City Charter) in order to allow staff to procure the necessary services without the need to engage in the full, formal public works project bid process. In addition, staff is requesting additional authorization and funding for services, material, and equipment. Silicon Valley Power (SVP) will also require an additional position to develop, implement, and manage SVP’s security measures, including the CISA recommendations.
DISCUSSION
In general, the City follows multi-step procurement processes to award public works and other public contracts. These provisions include, but are not limited to, Section 1310 (Public Works) of the City Charter, and Chapter 2.105 (General Services and Products) of the Santa Clara City Code. Exceptions are allowed, however. One exception for public works is where the City Council determines there to be an urgent necessity for the preservation of life, health or property. This urgency exception is not frequently recommended or invoked. It can, however, be a useful tool in certain circumstances. For example, the urgency process was recently applied to expedite the improvements needed to re-open the City’s International Swim Center (ISC) facility. The City Council’s urgency declaration allowed amendments to an existing contract rather than a formal re-advertising for bids. In effect, a pre-qualified contractor was used for the work, and many months were saved. In that case, the City Council made the urgency finding in light of evidence that months of delay would likely have a material adverse impact on the long-term viability of aquatics user groups, the parents and youths participating in those groups, and the health and well-being of the City’s general population of youth, adults, and seniors who were being denied full access to City aquatics programs and facilities.
In current matter before the City Council in order to address, in a timely manner, the vulnerabilities identified by CISA as part of its formal risk assessment of certain City facilities, City staff is recommending that the City Council make a finding of “urgency” under the City’s Charter to allow for the expedited implementation of the projects necessary to mitigate such risks. For public safety and security reasons, the specific nature and locations of these risks are not being detailed in this report. In general, according to CISA’s standards, facility conditions that need to be addressed include: exterior walls and fencing; security mechanisms at ingress/egress points; and video and activity monitoring systems. If such conditions are not promptly addressed, City facilities supporting the continuous delivery of critical City services, both on a day to day basis, and during high profile events, would be vulnerable to damage or destruction perpetrated by bad actors. If staff were to pursue conventional public works procurement processes to address these issues, from start to finish, the process would likely take between four and six months to complete, excluding project design. Expedited procurement processes would reduce this project timeline by many months. With the reported rise in threat levels, both internationally and within the U.S., and high-profile events on the City’s near time horizon, this projected conventional procurement process timeline is too long to leave this situation unmitigated. Staff’s assessment is that this situation constitutes an urgent necessity justifying the use of expedited procurement processes for the preservation of life, health and property.
Procurement Options
To support the accelerated timeline, staff is recommending a combination of standard and modified procurement approaches:
• Utilize Existing Contracts. The City currently has active contracts that may be used for the procurement of services, materials, and equipment. For example, an agreement with Tucker Construction for fence installation and repairs can be amended to increase compensation and extend the term to cover the work required. Accordingly, as part of its recommendation, staff is requesting delegation of authority to the City Manager or their designee to amend the terms of existing City agreements in order to address the security risks of City facilities as soon as possible. Any amendment will include a revised scope of work, a budget for such work, provisions for change orders, an increase in the maximum compensation, term extensions, and other changes deemed necessary to complete the work in a timely manner in a form approved by the City Attorney.
• Cooperative Purchasing Agreements. Where appropriate, staff may use cooperative purchasing agreements that have been competitively awarded by public agencies. This method allows the City to leverage existing contracts to procure services, materials, and equipment more quickly and efficiently while remaining compliant with the City’s procurement procedures.
• The Award of New Public Works Contracts Without the Full Bid Process. While some of the anticipated work will be classified as “general services” covered by the City Code, the City will also urgently require “public works” projects to address the security vulnerabilities. Under Section 1310 of the Santa Clara City Charter public works contracts exceeding $1,000 must be awarded to the lowest responsive and responsible bidder after notice by publication in an official newspaper by one or more insertions, the first of which shall be at least ten days before the time for opening bids. Based on a declaration of urgency by the City Council, this process can be substantially expedited by waiving certain formal bid requirements.
In support of this declaration, as discussed above, City Council received a presentation regarding security risks and vulnerabilities at certain City facilities; this included a presentation from a representative of the U.S. Department of Homeland Security, Cyber & Infrastructure Security Agency (CISA). With risk and threat levels on the rise, both here in the U.S. and internationally, and with the City scheduled to host high-profile international events in 2026, there is an urgent need to address these vulnerabilities. An expedited procurement process will reduce the time required to implement necessary improvements by many months.
Although the full, formal public works process will not be followed, whenever practical and possible, City public works staff will implement other practices to assure the award of contracts to qualified contractors at reasonable rates.
Additionally, the City will require services, materials, and equipment in connection with the implementation of security measures to mitigate risks to public services and facilities. The following will assist the City to timely complete the security measures.
• Services, Material and Equipment Purchases. Section 2.105.260 of the City Code authorizes the City Manager to purchase services materials or equipment when the there is a threat to the lives, property or welfare of City residents. The facts that support such a determination are similar to the facts that support the City Council determination of an “urgency” in the public works context. As mentioned, CISA identified risks and vulnerabilities at certain City facilities with risk and threat levels on the rise, both here in the U.S. and internationally, and with the City scheduled to host high-profile international events in 2026, there is an urgent need to address these vulnerabilities. Therefore, the City Manager does have enough facts to support a determination under 2.105.260 of the City Code so that he may award service, materials and equipment procurements without further compliance with the City Code in order to mitigate the security risks.
• Expedited Procurement Bidding Process. For solicitations valued $250,000 or more, Chapter 2.105 of the Santa Clara City Code requires certain posting requirements. Under section 2.105.260 of the City Code, the City Manager might need to choose not post solicitation under the City’s e-procurement system or otherwise post in accordance with any other provision of Chapter 2.105. However, under this expedited approach, staff would solicit bids by reaching out directly to qualified vendors. proposal.
Addition of 1.0 Full-Time Electric Program Manager Position
SVP requires an additional position, one (1) Electric Program Manager, to implement the CISA security recommendations and other facility security measures. Among other responsibilities, this position will oversee the immediate deployment of security measures at seven (7) critical SVP locations over the next six months and the completion of other security measures for other assets in the future. This Electric Program Manager will also develop additional security measures, further streamline SVP’s physical security assessments, and manage all physical security contracts in close coordination with SVP engineering/operations groups and other City departments.
Appropriation of Funding
To address the security vulnerabilities, it is anticipated improvements will encompass the addition of security camera systems, barrier/k-rails installations, and fencing and perimeter security. These categories reflect broad areas required to address the security vulnerabilities and are a preliminary list that may not represent all required projects. Work will be prioritized to address the most critical locations. Staff recommends setting aside $20.0 million as a preliminary estimate for security improvement costs at the seven sites. Funding is available to be appropriated from the Electric Utility Fund’s Infrastructure Reserve, which sets aside funding for unforeseen and unbudgeted capital costs. At the time of this report, cost estimates provided are based on limited available information and are subject to refinement as staff continues to gather site-specific details and obtain formal pricing proposals from vendors. Adjustments to the funding need will be brought forward to Council as needed as the projects are further refined.
Coordination with Purchasing Division
SVP and the Purchasing Division will work closely to ensure that the City conform to the procurement methods listed above. These procurement methods will allow staff to move quickly to select vendors, issue purchase orders, and execute agreements and amendments necessary to secure materials and equipment (i.e., software, surveillance systems, and network infrastructure) required for the installation and implementation of security measures.
Reporting to Council
At the time this Report to Council was prepared, the full list of projects and overall scope of work was still being finalized. Staff will report back to the City Council as soon as possible, and periodically thereafter, with a summary of all agreements executed under the delegated authority, and the status of project implementation.
ENVIRONMENTAL REVIEW
The actions being considered are categorically exempt from the California Environmental Quality Act (“CEQA”) pursuant to the following sections of Title 14 of the California Code of Regulations: Section 15302 (Class 2 - Replacement or Reconstruction), in that the project would replace and reconstruct existing facilities on the same site and with substantially the same purpose and capacity as the structure replaced and Section 15303 (Class 3 - New Construction or Conversion of Small Structures), in that the project will construct limited numbers of new, small facilities or structures and equipment.
FISCAL IMPACT
The budget amendment below allocates funding from the Electric Utility Fund Infrastructure Reserve Ending Fund Balance to the Electric Utility Capital Fund Substation Physical Security Improvements Project to address security risks and vulnerabilities as recommended in this memorandum.
The annual cost of one full-time Electric Program Manager is approximately $301,000 and will be funded by the Electric Utility Fund. Considering potential hiring timelines and the anticipated vacancy savings from other existing unfilled positions, sufficient budget is available for the additional position and a budget action is not recommended at this time. As positions are hired, SVP staff will monitor the operations budget, and if budget actions are needed for FY 2025/26, will coordinate operating budget adjustments, typically through monthly financial reports submitted by the Finance Department. Future budgets, revenue projections, and rate adjustment calculations will include the costs of these new positions. For future years, the annual cost will be incorporated into the operating budget through the regular process.
Budget Amendment
FY 2025/26
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Electric Utility Fund (091) |
|
|
|
|
Transfers To |
|
|
|
|
Electric Utility Capital Fund |
$50,541,000 |
$20,000,000 |
$70,541,000 |
|
|
|
|
|
|
Ending Fund Balance |
|
|
|
|
Infrastructure Reserve |
$50,000,000 |
($20,000,000) |
$30,000,000 |
|
|
|
|
|
|
Electric Utility Capital Fund (591) |
|
|
|
|
Transfers From |
|
|
|
|
Electric Utility Fund |
$50,541,000 |
$20,000,000 |
$70,541,000 |
|
|
|
|
|
|
Expenditures |
|
|
|
|
Substation Physical Security Improvements Project |
$709,951 |
$20,000,000 |
$20,709,951 |
COORDINATION
This report has been coordinated with the Finance Department and 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 <mailto:clerk@santaclaraca.gov>.
RECOMMENDATION
Recommendation
1. Determine that the proposed actions are exempt from CEQA pursuant to Section 15302 (Class 2 - Replacement or Reconstruction) and Section 15303 (Class 3 - New Construction or Conversion of Small Structures) of Title 14 of California Code of Regulations.
2. Adopt a resolution declaring an urgency in accordance with City Charter Section 1310 to allow for the award of contracts to various contractors to implement public facility security measures without advertising for bids.
3. Authorize the City Manager to negotiate and execute agreements, amendments, change orders, and/or purchase orders with various vendors in connection with the implementation of security measures at various City public facility sites, for a maximum aggregate compensation amount not-to-exceed $20,000,000, subject to the review and approval as to form by the City Attorney.
4. Authorize the City Manager or designee to (a) take any actions as necessary to implement and administer the agreements and/or purchase orders, and (b) negotiate and execute amendments to the agreements or purchase orders for (i) project scope changes/additions, (ii) any unanticipated conditions or requirements, (iii) extensions of the agreement term, and (iv) de minimis revisions, all subject to the above maximum aggregate compensation amount and review and approval as to form by the City Attorney.
5. Approve the addition of one (1) Electric Program Manager in the Electric Utility Department.
6. Approve the following FY 2025/26 budget amendments:
a. In the Electric Utility Fund, decrease the Infrastructure Reserve Ending Fund Balance and increase the transfer to the Electric Utility Capital Fund in the amount of $20.0 million (five affirmative Council votes required for the use of unused balances) and
b. In the Electric Utility Capital Fund, increase the transfer from the Electric Utility Fund and increase the Substation Physical Security Improvements Project in the amount of $20.0 million (five affirmative Council votes required to appropriate additional revenue).
Staff
Reviewed by: Nico Procos, Director of Silicon Valley Power
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. Declaration of Urgency Resolution