REPORT TO BOND COMPLIANCE OVERSIGHT COMMITTEE
SUBJECT
Title
Measure I Program Update Fall 2026
Report
BACKGROUND
On November 5, 2024, City of Santa Clara voters approved Measure I, which authorized the issuance of up to $400 million in general obligation bonds to finance a backlog of unfunded infrastructure needs as specified in an attached “Expenditure Plan” (Attachment 1).
On August 22nd, 2025, the Bond Compliance Oversight Committee (BCOC) unanimously approved and acknowledged the Phase 1 Project List (Attachment 2 - First Tranche Approved Project List), which aligned with the voter-approved Expenditure Plan requirement. As contemplated by the Expenditure Plan, the Phase 1 Project List was developed through professional staff’s consideration and balancing of factors like project readiness, community benefit, operational needs, and available resources.
The first General Obligation Bond was issued in February 2026 and provided $97,125,000 to fund these initial projects. With these projects now progressing, staff is bringing forward updates to the BCOC.
DISCUSSION
Since the first Measure I bond issuance in February 2026, the City has continued advancing implementation of the 27 projects identified in the initial phase of the program. Projects are at various stages of implementation, including planning, design, procurement, construction, and completion.
This report highlights significant project milestones achieved to date, provides an update on program administration and public transparency efforts, and identifies upcoming activities associated with financial oversight, project implementation, and future bond funding.
A comprehensive project status summary is provided in Attachment 3, identifying; the report includes the anticipated next milestones for each of the 27 Phase 1 projects.
Measure I Project Updates
The Measure I program has reached several significant milestones, including completion of its first project and advancement of two parks and recreational facility improvements into construction.
Emergency Operations Center Security Improvements
The Emergency Operations Center (EOC) Security Improvements is the first Measure I-funded project completed under the program. This project had two funding sources and was completed within the $633,000 in total budgeted funding, of which $250,000 was funded by Measure I. This installation of the fencing and security gates for the EOC was completed prior to the 2026 Super Bowl and FIFA World Cup, providing enhanced security and supporting the facility's use during these major events.
International Swim Center
Phase 1 is progressing within the allocated amount of $22.2 M from Measure I. Phase 1 construction began in March 2026 and is advancing at the International Swim Center (ISC). The work includes the rehabilitation of pool decking, plumbing, boilers, perimeter gutter systems, the dive well, and the diving tower. To date, the dive tower has been formed, plastering for two of the three pools has been completed, tiling work is underway, and the mechanical building wall is being constructed.
Design activities for the new administrative building have also commenced for Phase 2 of the ISC rehabilitation. A total funding of $2M from Measure I was allocated to support the design phase, and additional funding will be required from the next bond issuance to support the construction of the administrative building. A consultant team was selected in May 2026 and is currently working on the design.
Phase 1 construction is anticipated to be completed by late 2027, and Phase 2 preliminary design to be completed in Summer 2027.
Henry Schmidt Park
Renovations to Henry Schmidt Park are nearing completion, with reopening anticipated in early 2027. Improvements include a new inclusive and accessible playground, updated picnic areas, outdoor recreation amenities, landscaping, irrigation, and utility upgrades. In addition, this park will have a water feature, an accessible connected walking path, and shade structures for the playground and picnic areas. Play equipment has been installed and stays true to the original train theme of Henry Schmidt Park.
This project is being funded by two funding sources with $4.325 M being funded by Measure I.
Other Phase 1 Projects
The remaining 23 projects under Phase 1 encompass improvements to fire stations, police facilities, parks, libraries, storm drain infrastructure, and historic facilities. These projects are in various stages of planning, design, and procurement.
Attachment 3 provides additional information on the status and upcoming milestones of each project.
Measure I Financial Status
The City completed its first Measure I general obligation bond issuance in February 2026, providing $97.125 million in bond funding for initial program implementation.
As of October 23rd, 2026, approximately $3.9 M, 4% of the first tranche budget has been expended on Measure I projects, with an additional $25.6 M committed through contracts and other outstanding obligations.
City staff continue to monitor expenditures and project commitments to support financial accountability and ensure the use of bond proceeds is consistent with applicable requirements and approved project purposes.
Measure I Webpage
On September 4, 2026, the City launched the Measure I webpage at Measure I <https://www.santaclaraca.gov/our-city/departments-a-f/city-manager-s-office/special-projects/measure-i> to provide the public with centralized access to information about the Measure I program, and the 27 projects approved for the initial phase of implementation.
The webpage includes an interactive project map, project descriptions, implementation phases, and a dashboard that allows residents to explore individual projects and track their progress. The project dashboard allows users to explore the different project categories and see the phases the projects are in. It also provides information on the anticipated funding timeline for each project. To track project progress, the map leads to individual project information on the current project implementation phase, which is updated as the project moves along.
The webpage represents an important step in the City's commitment to transparency and public accountability regarding the use of Measure I bond funds.
Staff will provide the BCOC with a demonstration of the webpage during the meeting, including how committee members and residents can access project information. Staff anticipate continuing to enhance the webpage as additional project and financial information become available.
Measure I Program Staffing
As implementation of the Measure I program advances, the City continues to expand staffing capacity to support project delivery, program coordination, and public accountability. In June 2026, a Management Analyst was brought on board to join the Measure I team in the City Manager’s Office. They have been supporting program transparency by leading the development of the public-facing Measure I webpage and creating a communications plan for distributing important Measure I project updates.
The Public Works Department is in the recruitment process to hire a new Senior Engineer and an Associate Engineer to provide additional project management and support for Measure I projects.
These staffing efforts are intended to provide the additional technical and administrative capacity necessary to advance projects and maintain effective program oversight.
Next Steps
Over the next six months, staff will focus on advancing Phase 1 projects, strengthening financial and project reporting, and preparing for future phases of Measure I implementation.
Measure I Program Audit
The City is preparing for the initial Measure I program audit. Staff anticipates the first audit report being completed later this year.
To comply with the audit requirements of Ordinance 2069, the following procedures will be performed:
• Obtain the Official Statement for the 2024 General Obligation Bonds, 2026 Series A and B, dated February 10, 2026.
• Obtain Ordinance No. 2069, which includes the Bond Expenditure Plan.
• Obtain Resolution No. 24-9341, which authorized the application of costs incurred prior to the issuance of the General Obligation Bonds to the bond proceeds.
• Obtain amendments to the Bond Expenditure Plan and documentation that amendments were submitted to the Bond Compliance Citizens’ Oversight Committee and approved by unanimous vote of the City Council.
• Obtain the general ledger detail of expenditures by project for the period July 1, 2025, to June 30, 2026, which includes any costs incurred prior to July 1, 2025, that were applied to the bond proceeds via journal entry.
• Summarize the expenditures of the Bond proceeds by Project Area and Project listed in the Bond Expenditure Plan.
• Calculate the ratio of administrative costs to total costs to date (shall not exceed 5% of the proceeds from the sale of the Bonds).
• Select a sample of expenditure transactions from each active project during the fiscal year and obtain supporting documentation to test compliance
The audit results will be presented to the BCOC when available to support the Committee's oversight responsibilities.
Phase 1 Project Implementation
Staff will continue advancing Phase 1 projects through planning, design, procurement, and construction.
Phase 2 Project Planning
Staff will begin developing the proposed Phase 2 project list in preparation for the anticipated second bond issuance in 2028. The project selection process will consider project readiness, infrastructure needs, available funding, and consistency with the voter-approved Expenditure Plan.
Staff anticipate presenting additional information regarding the proposed Phase 2 project list and implementation schedule to the appropriate City decision-makers and the BCOC as the planning process progresses.
Financial Reporting and Public Transparency
Staff will continue providing periodic financial and project status updates and enhancing the Measure I webpage to support public access to program information.
The City is preparing for the initial Measure I program audit. The audit results will be presented to the BCOC when available to support the Committee's oversight responsibilities.
Future Meeting Date
Staff plan to have the next BCOC meeting in early 2027.
BCOC Current Vacancies and Recruitment
Current recruitment efforts include the following vacancies:
• Large Business Representative (50+ Employees) - Active Recruitment
• Large Business Representative (50+ Employees) Alternate - Active Recruitment
• Small Business Representative Alternate - Active Recruitment
ENVIRONMENTAL REVIEW
The action being considered 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 it is an administrative activity that will not result in direct or indirect physical changes in the environment.
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
Note and file this report.
Staff
Reviewed by: Marc Freitas, Deputy City Manager
Approved by: Jōvan D. Grogan, City Manager
ATTACHMENTS
1. Expenditure Plan
2. First Tranche Approved Project List
3. Phase 1 Project Status Summary