REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to execute Amendment No. 2 to an Agreement with Claris Strategy Inc. to Provide Additional Electric Utility Security Consulting Services for Silicon Valley Power, for a Total Not-to-Exceed Compensation of $489,088
Report
BACKGROUND
In 2014, California Senate Bill 699 was adopted in response to the 2013 Metcalf Substation attack. The bill directed the California Public Utilities Commission (CPUC) to establish regulations to enhance the physical security of electrical distribution systems.
In January 2019, the CPUC issued Decision 19-01-018 establishing physical security requirements for California investor-owned utilities in California. The decision also purported to extend its reach to publicly owned utilities (POUs) such as Silicon Valley Power (SVP). Although the CPUC Decision’s application to POUs is an overextension of CPUC jurisdiction and regulatory power, SVP and other publicly owned utilities have good reason to voluntarily participate in the program in that it will assist SVP and other utilities to keep up with industry standards with regard to physical security.
Under this decision, electric utilities are required to develop a comprehensive physical security plan for its electric systems, have the plan reviewed by a third party, and submit the plan to the CPUC for review and acceptance by July 10, 2021. SVP completed and submitted its Utility Security Plan in 2021, and the plan was subsequently reviewed and accepted by the CPUC.
The CPUC also requires utilities to review and update their physical security plans every five years. Accordingly, SVP’s next update is due to the CPUC by August 10, 2026.
To assist with its participation in the program, SVP initiated a competitive solicitation to retain a qualified consultant to perform a Threat and Vulnerability Assessment (TVA), prepare standard security designs for future substations, and update SVP’s 2021 Utility Security Plan. The plan covers thirty-nine (39) SVP facilities, including the Donald Von Raesfeld, Gianera Generation Station, and multiple substations.
DISCUSSION
Consultant Selection and Initial Agreement
Pursuant to Section 2.105.140 of the City of Santa Clara Code (City Code), a formal Request for Proposals (RFP) was conducted, with the award recommendation based on “best value.”
Staff published the RFP for Consulting Services for Electric Utility Security on the City’s e-procurement system. Six responsive proposals were received from the following firms:
• 4Liberty, Inc.
• AESI-US, Inc.
• CelPlan Wireless Global Solutions
• Salas O’Brien
• Claris Strategy Inc.
• TRC Solutions, Inc.
A five-member evaluation panel reviewed and scored the proposals based on the evaluation criteria and weights published in the RFP, including experience, technical capability, and cost. Following the evaluation, the panel determined that the proposal from Claris Strategy Inc. (Claris) provided the best value and fully met the requirements of the RFP.
In accordance with Section 2.105.300(a) of the City Code, the City Manager is authorized to execute purchase orders and agreements on behalf of the City in amounts up to and including two hundred fifty thousand dollars ($250,000.00). On July 28, 2025, the City Manager executed an agreement with Claris in the amount of $246,352 for a term of two years, beginning on August 1, 2025.
U.S. Department of Homeland Security, Cyber & Infrastructure Agency (CISA) Findings (Amendment No. 1)
On July 8, 2025, the City Council adopted Resolution No. 25-9463 to authorize the City Manager to amend existing agreements, as necessary, to add services that address urgent security risks and vulnerabilities identified by the U.S. Department of Homeland Security, Cyber & Infrastructure Agency. Under this authority, SVP engaged Claris to develop an Event Specific Security Plan (ESSP) for its critical facilities in preparation for upcoming international events in 2026. On October 28, 2025, the City Manager executed Amendment No. 1 with Claris in the amount of $128,887, increasing the total compensation to $375,239. This amendment did not require further City Council action because it was covered under the authority granted by Resolution No. 25-9463.
CPUC-Related Additional Scope (Proposed Amendment No. 2)
Following further review of the original scope of work for the TVA and updated Utility Security Plan, SVP staff determined that five additional sites should be incorporated into agreement:
• Cogen Power Plant #1
• Space Park Interconnection Station
• Office and Storage Facilities at 881 Martin Avenue
• Municipal Services Yard at 1705 Martin
• 60 kV Storage Yard
Because most of these sites are not directly related to the CISA findings, the work does not fall under the emergency authority of Resolution No. 25-9463. The cost for these additional services is $33,849, bringing the total for the original CPUC-related scope to $280,201.
As this total now exceeds the City Manager’s approval limit of $250,000 under Section 2.105.300(a) of the City Code, City Council approval is required. With Amendments No. 1 and No. 2 (including both CPUC- and CISA-related scope), the total contract amount is $409,088, plus a 20% contingency of $80,000, for a total not-to-exceed compensation of $489,088. Compensation under the agreement is based on fixed fees tied to the specific deliverables outlined in the scope of work.
ENVIRONMENTAL REVIEW
The actions being considered do not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulation in that it can be seen with certainty that there is no possibility that the proposed actions may have a significant effect on the environment as they sole involve the preparation of an updated Utility Security Plan. Any capital improvements which the plan may recommend will require additional environmental analysis.
FISCAL IMPACT
The maximum compensation under the proposed Agreement with Claris is $489,088. Sufficient funds are available in the Substation Physical Security Improvement project budget in the Electric Utility Capital Fund.
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 or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager or designee to execute Amendment No. 2 to the Agreement with Claris Strategy Inc. for the Threat and Vulnerability Assessment and updated Utility Security Plan, with a maximum compensation of $409,088, to be funded by the Electric Utility Capital Fund, subject to final review and approval as to form by the City Attorney; and
2. Authorize the City Manager or designee to take any actions necessary to implement and administer the agreement with Claris Strategy Inc., and negotiate and execute future amendment(s) to (a) add or delete services associated with the services, (b) extend the term as needed to complete the project, (c) increase the maximum compensation by approximately 20% for contingencies for a revised not-to-exceed amount of $489,088, and (d) make de minimis changes, subject to the final review and approval as to form by the City Attorney.
Staff
Reviewed by: Nico Procos, Director of Silicon Valley Power
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Agreement for Services with Claris Strategy Inc.
2. Amendment No. 1 to the Agreement for Services with Claris Strategy Inc.
3. Resolution No. 25-9463
4. Proposed Amendment No. 2 to the Agreement for Services with Claris Strategy Inc.