Agenda packet — City Council and Authorities Concurrent, February 21, 2023 (part 1 of 4)

City of Santa Clara
Joint Meeting Agenda of the
Council and Authorities Concurrent &
Santa Clara Stadium Authority
Hybrid Meeting
City Hall Council Chambers/Virtual
1500 Warburton Avenue
Santa Clara, CA 95050
7:00 PMTuesday, February 21, 2023
The City of Santa Clara is conducting City Council meetings in a hybrid manner (in-person and continues to have methods for the public to participate remotely). • Via Zoom:
o https://santaclaraca.zoom.us/j/99706759306
Meeting ID: 997-0675-9306 or
o Phone: 1(669) 900-6833
• Via the City’s eComment (located at the Legislative Public Meetings Page https://santaclara.legistar.com/Calendar.aspx)
Agendas, Staff Reports and some associated documents for City Council items may be viewed on the Internet at https://santaclara.legistar.com/Calendar.aspx All public records relating to an open session item on this agenda, which are not exempt from disclosure pursuant to the California Public Records Act, that are distributed to a majority of the legislative body will be available for public inspection at the Office of the City Clerk at Sana Clara City Hall, 1500 Warburton Avenue, Santa Clara, CA 95050 at the same time that the public records are distributed or made available to the legislative body. Any draft contracts, ordinances and resolutions posted on the Internet site or distributed in advance of the Council meeting may not be the final documents approved by the City Council. For the final document, you many contact the Office of the City Clerk at (408) 615-2220 or [email protected].

Closed Session - 4:00 PM | Regular Meeting - 7:00 PM
4:00 PM CLOSED SESSION
Call to Order in the Council Chambers
Roll Call

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Joint Council and Authorities Concurrent
& Stadium Authority Meeting
Meeting Agenda February 21, 2023

1.A Public Employment Appointment (Government Code §§ 54957, subd. (b)(1) and 54954.5, subd. (e))
Title: Interim City Manager
23-269

1.B Conference with Labor Negotiators (CC)
Pursuant to Gov. Code § 54957.6
City representative: City Manager’s designee
Employee Organization(s):

Unit #1-Santa Clara Firefighters Association, IAFF, Local 1171 Unit #2-Santa Clara Police Officer’s Association
Unit
#3-IBEW Local 1245 (International Brotherhood of
Electrical Workers)
Unit #4-City of Santa Clara Professional Engineers (Deferred from January 31, 2023)
Units #5, 7 & 8-City of Santa Clara Employees Association Unit #6-AFSCME Local 101 (American Federation of State, County and Municipal Employees)
Unit #9-Miscellaneous Unclassified Management Employees Unit #9A-Unclassified Police Management Employees
Unit #9B-Unclassified Fire Management Employees
Unit #10-PSNSEA (Public Safety Non-Sworn Employees
Association)
23-203

1.C Conference with Legal Counsel-Existing Litigation (CC)Pursuant to Gov. Code § 54956.9(d)(1)
Republic Metropolitan LLC v. City of Santa Clara, et al., Santa Clara County Superior Court Case No. 22CV393667
23-207

1.D Conference with Real Property Negotiators (CC)
Pursuant to Gov. Code § 54956.8
Property:
981 Fremont Street, Santa Clara, CA 95050; APN
984-12-011
City/Authority Negotiator: City Manager (or designee)
Negotiating Parties: Jeff Riser, Kappa Alpha Theta; Teresa Smith, Fraternity Housing Corporation
Under Negotiation: Purchase/Sale/Exchange/Lease of Real Property (provisions, price and terms of payment)
23-257

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Joint Council and Authorities Concurrent
& Stadium Authority Meeting
Meeting Agenda February 21, 2023

1.E Conference with Legal Counsel-Existing Litigation (CC) Pursuant to Gov. Code § 54956.9(d)(1)
Bloom
Energy Corporation, et al. v. City of Santa Clara, et al., Santa Clara County Superior Court Case No. 21CV383800
23-241
Public Comment
The public may provide comments regarding the Closed Session item(s) just prior to the Council beginning the Closed Session. Closed Sessions are not open to the public.

Convene to Closed Session (Council Conference Room)
7:00 PM JOINT COUNCIL/STADIUM AUTHORITY MEETING
*Open Session to begin at 7:00 PM or shortly thereafter Call to Order
Call to Order in the Council Chambers (Open to the Public) Pledge of Allegiance and Statement of Values

REPORTS OF ACTION TAKEN IN CLOSED SESSION MATTERS

CONTINUANCES/EXCEPTIONS/RECONSIDERATIONS

SPECIAL ORDER OF BUSINESS

2. Recognition of the Wilcox High School Robotics Team23-189

CONSENT CALENDAR
[Items listed on the CONSENT CALENDAR are considered routine and will be adopted by one motion. There will be no separate discussion of the items on the CONSENT CALENDAR unless discussion is requested by a member of the Council, staff, or public. If so requested, that item will be removed from the CONSENT CALENDAR and considered under CONSENT ITEMS PULLED FOR DISCUSSION.]

3.A Action on Joint Council and Authorities & Stadium Authority Meeting Minutes of October 18, 2022
23-212
Approve the Joint Council and Authorities & Stadium
Authority meeting minutes of October 18, 2022.

Recommendation:

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Joint Council and Authorities Concurrent
& Stadium Authority Meeting
Meeting Agenda February 21, 2023

3.B Board, Commissions and Committee Minutes23-07
Note and file the Minutes of:

Historical and Landmarks Commission - December 1,
2022
Cultural Commission - January 9, 2023 (Special
Meeting)
Neighborhood University Relations Committee -
December 12, 2022
Recommendation:

3.C Action on Monthly Financial Status and Investment Reports for December 2022 and Approve the Related Budget Amendments 23-149
Note and file the Monthly Financial Status and
Investment Reports for December 2022 as presented
and Approve the Related Budget Amendments (five
affirmative Council votes required to appropriate
additional revenue or for the use of unused balances).

Recommendation:

3.D Action on the Santa Clara Convention Center FY 2022/23 2nd Quarter Financial Status Report
23-55
Note and file the Santa Clara Convention Center
Financial Status Report for the 2nd Quarter ending
December 31, 2022, as submitted by OVG.

Recommendation:

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Joint Council and Authorities Concurrent
& Stadium Authority Meeting
Meeting Agenda February 21, 2023

3.E Action on Award of Contract for the Citywide Emergency G
enerator Replacement Phase 2 Project to Redwood
Engineering Construction, Related Budget Amendments, and Adopting a Class 1 CEQA Categorical Exemption
23-1463

1. Adopt a Class 1 Categorical Exemption under
CEQA Guidelines Section 15301;

2. Award the Public Works Contract for the Citywide
Emergency Generator Replacement Phase 2
Project to the lowest responsive and responsible
bidder, Redwood Engineering Construction, in the
amount of $2,739,000 and authorize the City
Manager to execute any and all documents
associated with, and necessary for the award,
completion, and acceptance of this Project;

3. Authorize the City Manager to execute change
orders up to approximately 15 percent of the
original contract price, or $410,850, for a total not
to exceed amount of $3,149,850; and

4. Approve the following FY 2022/23 Budget
Amendments:

A. In the Water Utility Capital Fund, establish a
Transfer to the Public Buildings Capital Fund and
decrease the Unrestricted Ending Fund Balance
in the amount of $1,263,050 (five affirmative
Council votes required for the use of
unused balances);
B. In the General Fund, establish a Transfer to the
Public Buildings Capital Fund and decrease the
Reserve for Programmed Capital Projects in the
amount of $80,000 (five affirmative Council
votes required for the use of unused
balances); and
C. In the Public Buildings Capital Fund, establish a
Transfer from the Water Utility Capital Fund in
the amount of $1,263,050 and a Transfer from
the General Fund - Reserve for Programmed
Capital Projects in the amount of $80,000 and
increase the Standby Stationary Generators
project in the amount of $1,343,050 (five
affirmative Council votes required to
appropriate additional revenue).

Recommendation:

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Joint Council and Authorities Concurrent
& Stadium Authority Meeting
Meeting Agenda February 21, 2023

3.F Action on Award of Contract for the Central Park Magical Bridge Playground
Project to Robert A Bothman Construction, S&H
Construction Bid Withdrawal, Related Budget Amendments, and Adopting a Class 1 CEQA Categorical Exemption
23-1529

1. Adopt the findings of Council contained in this
report, pursuant to California Public Contract Code
section 5103, et seq., and relieve S&H
Construction, Inc., of its bid for the Central Park
Magical Bridge All-Inclusive Playground Project;

2. Adopt a Class 1 Categorical Exemption under
CEQA Guidelines Section 15301;

3. Award the Public Works Contract for the Central
Park Magical Bridge All-Inclusive Playground
Project to the lowest responsive and responsible
bidder, Robert A Bothman Construction, in the
amount of $7,595,000 and authorize the City
Manager to execute any and all documents
associated with, and necessary for the award,
completion, and acceptance of this Project;

4. Authorize the City Manager to execute change
orders up to approximately 15 percent of the
original contract price, or $1,139,250, for a total not to exceed amount of $8,734,250; and

5. Approve the following FY 2022/23 budget
amendment in the Parks and Recreation Capital
Fund to increase the Central Park Magical Bridge
Playground project appropriation by $4,363,500
and increase the Parks and Recreation Capital
Fund Mitigation Fee Act revenue estimate by the
same amount (five affirmative Council votes
required to appropriate additional revenue).

Recommendation:

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Joint Council and Authorities Concurrent
& Stadium Authority Meeting
Meeting Agenda February 21, 2023

3.G Action on Agreements for Services with Stephens Mechanical Corporation,
Axis Mechanical Group, Inc, and Performance
Mechanical, Inc. for Millwright Services
23-96

1. Determine the proposed actions are exempt from
CEQA pursuant to Section 15301 of Title 14 of the
California Code of Regulations;

2. Authorize the City Manager to negotiate and
execute Amendment No. 1 to the Agreement with
Stephens Mechanical Corporation for as needed
millwright services increasing the maximum
compensation to $1,000,000 for a five-year term
ending on October 31, 2027;

3. Authorize the City Manager to negotiate and
execute Agreements for Services with Axis
Mechanical Group, Inc. and Performance
Mechanical Inc. for as needed millwright services
with a maximum compensation of $1,000,000
each and a five-year term ending on or around
March 31, 2028;

4. Authorize the City Manager to negotiate and
execute amendments to these agreements to (a)
add or delete services consistent with the scope of
services for the agreements (b) adjust future rates
subject to the appropriation of funds; (c) increase
maximum compensation up to an aggregate
maximum compensation of $15,000,000 over a
five-year period; and (d) extend the term of the
agreements and increase maximum
compensation by $15,000,000 for an aggregate
compensation of $30,000,000 over a ten-year
period, subject to the annual appropriation of
funds; and

5. Authorize the City Manager to take any actions as
necessary to implement and administer the
agreement
Recommendation:

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Joint Council and Authorities Concurrent
& Stadium Authority Meeting
Meeting Agenda February 21, 2023

3.H Action to Delegate Authority to the City Manager to Negotiate and
Execute an Agreement for Services with International
Cooling Tower to Overhaul a Cooling Tower and to Perform Ongoing As-needed Maintenance and Repair Services at the Donald Von Raesfeld Power Plant for Silicon Valley Power 23-1586

1. Determine that the proposed actions are
categorically exempt from CEQA pursuant to
Section 15301 of Title 14 of the California Code of
Regulations;

2. Authorize the City Manager to negotiate and
execute an Agreement for Services with
International Cooling Tower for a five-year term
beginning on or around March 1, 2023, with a
maximum compensation not to exceed $2,000,000
to perform ongoing as-needed maintenance and
repair services at the Donald Von Raesfeld Power
Plant for Silicon Valley Power; and

3. Authorize the City Manager take any and all actions
as are necessary or advisable to implement and
administer the Agreement and negotiate and
execute amendments to the Agreement to (a) to
add or delete services consistent with the scope of
the services for the Agreement, (b) incorporate
future rate adjustments, and (c) increase maximum
compensation up to a total maximum compensation
of $3,000,000 subject to the appropriation of funds.

Recommendation:

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Joint Council and Authorities Concurrent
& Stadium Authority Meeting
Meeting Agenda February 21, 2023

3.I Authorize the City Manager to Negotiate and Execute Amendment
No. 2 to the Agreement for Distributed Control
System Upgrade/Replacement Project with Emerson Process Management Power and Water Solutions
23-210

1. Determine the proposed actions are exempt from
CEQA
pursuant to Section 15301 of Title 14 of the
California Code of Regulations;

2. Authorize the City Manager to negotiate and
execute Amendment No. 2 to the Agreement for
Distributed Control System Upgrade/Replacement
Project with Emerson Process Management
Power and Water Solutions increasing maximum
compensation by $8,275,000 from $3,725,000 to
$12,000,000 and extending the term through
December 31, 2030;

3. Authorize the City Manager to negotiate and
execute additional amendments as needed to (a)
add or delete services consistent with the scope of
services for the agreement, (b) adjust future rates,
and (c) increase maximum compensation to a not
to exceed amount of $15,000,000, subject to the
appropriation of funds; and

4. Authorize the City Manager to take any actions as
necessary to implement and administer the
agreement.

Recommendation:

3.J Action on the Fourth Amendment to the Memorandum of Agreement
with Santa Clara Valley Municipalities to Allow for
the Continuation of the Santa Clara Valley Urban Runoff Pollution Prevention Program
23-43
Authorize the City Manager to execute the Fourth
Amendment to the Memorandum of Agreement with
Santa Clara Valley Municipalities to Allow for the
Continuation of the Santa Clara Valley Urban Runoff
Pollution Prevention Program
Recommendation:

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Joint Council and Authorities Concurrent
& Stadium Authority Meeting
Meeting Agenda February 21, 2023

3.K Action on the Schematic Design - Master Plan for the New Public
Mini Park at 2263 Calle Del Mundo (Ensemble
Investments/Rethink Development - Tasman East Specific Plan) 23-126
Approve the proposed Schematic Design - Master
Plan for the New Public Mini Park at 2263 Calle Del
Mundo.

Recommendation:

3.L Action on a Resolution Authorizing the Use of City Electric Forces at Various Locations
23-158
Determine the proposed actions are exempt from
CEQA pursuant to Sections 15302 (c) and 15303 of
Title 14 of the California Code of Regulations and
adopt a Resolution authorizing the use of City Electric Forces for work detailed in this Report to Council
located at Scott Boulevard and Harrison Street, 3402
El Camino Real, 4062 Davis Street, 5407 Stevens
Creek Boulevard, 2225 Calle de Luna, and 2620
Tuliptree Lane.

Recommendation:

3.M Action on the Proposed Schematic Design - Master Plan for a New Public Mini Park at 3000 Patrick Henry Drive (SummerHill) 23-129
Approve the proposed Schematic Design - Master
Plan for the New Public Mini Park at 3000 Patrick
Henry Drive.

Recommendation:

SANTA CLARA STADIUM AUTHORITY CONSENT CALENDAR

4. Action on Stadium Authority Bills and Claims for the Month of December 2022
23-56
Approve the list of Stadium Authority Bills and Claims
for December 2022.

Recommendation:

PUBLIC PRESENTATIONS
[This item is reserved for persons to address the Council or authorities on any matter not on the agenda that is within
the subject matter jurisdiction of the City or Authorities. The law does not permit action on, or extended discussion of, any item not on the agenda except under special circumstances. The governing body, or staff, may briefly respond to statements made or questions posed, and appropriate body may request staff to report back at a subsequent meeting. Although not required, please submit to the City Clerk your name and subject matter on the speaker card available in the Council Chambers.]

CONSENT ITEMS PULLED FOR DISCUSSION

PUBLIC HEARING/GENERAL BUSINESS

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Joint Council and Authorities Concurrent
& Stadium Authority Meeting
Meeting Agenda February 21, 2023

5. Action on Appointment to Cities Association of Santa Clara County
Board of Directors (Alternate Member) for the 2023
Calendar Year
23-263
Staff makes no recommendation.Recommendation:

6. Public Hearing: Adoption of a Resolution Ordering the Abatement
of a Nuisance Consisting of Growing Weeds in
Association with the County Weed Abatement Program for
2022-2023
23-182
Adopt a Resolution ordering the abatement of a
nuisance consisting of growing weeds in the City.

Recommendation:

7. Action on Agreement for Services with Wilson, Ihrig & Associates
for Noise Monitoring System and Services for the
Levi’s Stadium
23-157
Alternative 1:

Approve and authorize the City Manager’s Office,
consistent with properly delegated authority or existing policy, to execute an agreement with Wilson Ihrig for
Noise Monitoring System and Services for the Levi’s
Stadium, including the use of two fixed monitoring
sites, for a five year term starting on April 1, 2023 and ending on March 31, 2028 for a total maximum
compensation amount not to exceed $296,000,
subject to Santa Clara Stadium Authority
appropriation of funds.

Recommendation:

WRITTEN PETITION (COUNCIL POLICY 030) SUBMITTED BY THE PUBLIC/COUNCIL

8. Action on a Written Petition (Council Policy 030), Submitted by Laurel Anderson Requesting to Place an Agenda Item on a Future Council Meeting for Council to Discuss Approval of a Dog Park at Earl Carmichael Park on Benton Street
23-261
Staff makes no recommendation.Recommendation:

REPORTS OF MEMBERS AND SPECIAL COMMITTEES

CITY MANAGER/EXECUTIVE DIRECTOR REPORT
Update on City Council and Stadium Authority Staff Referrals22-906

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Joint Council and Authorities Concurrent
& Stadium Authority Meeting
Meeting Agenda February 21, 2023
Tentative Meeting Agenda Calendar (TMAC)23-255

ADJOURNMENT
The next regular scheduled meeting is on Tuesday, March 7, 2023 in the City Hall Council Chambers.

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Joint Council and Authorities Concurrent
& Stadium Authority Meeting
Meeting Agenda February 21, 2023
The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision. Under Section 1094.6, any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. If a person wishes to challenge the nature of the above section in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Santa Clara, at or prior to the meeting. In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies.

AB23 ANNOUNCEMENT: Members of the Santa Clara Stadium Authority, Sports and Open Space Authority and Housing Authority are entitled to receive $30 for each attended meeting.

Note: The City Council and its associated Authorities meet as separate agencies but in a concurrent manner. Actions taken should be considered actions of only the identified policy body.

Note: The public cannot participate in the meeting through these livestreaming methods; livestreaming capabilities may be disrupted at times, viewers may always view and participate in meetings via Zoom as noted on the agenda 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 [email protected] <mailto:[email protected]> or at the public information desk at any City of Santa Clara public library.

If a member of the public submits a speaker card for any agenda items, their name will appear in the Minutes. If no speaker card is submitted, the Minutes will reflect "Public Speaker." In accordance with the requirements of Title II of the Americans with Disabilities Act of 1990 ("ADA"), the City of Santa Clara will not discriminate against qualified individuals with disabilities on the basis of disability in its services, programs, or activities, and will ensure that all existing facilities will be made accessible to the maximum extent feasible. The City of Santa Clara will generally, upon request, provide appropriate aids and services leading to effective communication for qualified persons with disabilities including those with speech, hearing, or vision impairments so they can participate equally in the City’s programs, services, and activities. The City of Santa Clara will make all reasonable modifications to policies and programs to ensure that people with disabilities have an equal opportunity to enjoy all of its programs, services, and activities.

Agendas and other written materials distributed during a public meeting that are public record will be made available by the City in an appropriate alternative format. Contact the City Clerk’s Office at 1 408-615-2220 with your request for an alternative format copy of the agenda or other written materials.

Individuals who require an auxiliary aid or service for effective communication, or any other disability-related modification of policies or procedures, or other accommodation, in order to participate in a program, service, or activity of the City of Santa Clara, should contact the City’s ADA Coordinator at 408-615-3000 as soon as possible but no later than 48 hours before the scheduled event.

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MEETING DISCLOSURES
City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
23-269 Agenda Date: 2/21/2023

REPORT TO COUNCIL

SUBJECT
Public Employment Appointment (Government Code §§ 54957, subd. (b)(1) and 54954.5, subd. (e)) Title: Interim City Manager
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City of Santa Clara
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1500 Warburton Avenue
Santa Clara, CA 95050
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@SantaClaraCity
23-203 Agenda Date: 2/21/2023

SUBJECT
Conference with Labor Negotiators (CC)
Pursuant to Gov. Code § 54957.6
City representative: City Manager’s designee
Employee Organization(s):

Unit #1-Santa Clara Firefighters Association, IAFF, Local 1171 Unit #2-Santa Clara Police Officer’s Association
Unit #3-IBEW Local 1245 (International Brotherhood of Electrical Workers) Unit #4-City of Santa Clara Professional Engineers (Deferred from January 31, 2023) Units #5, 7 & 8-City of Santa Clara Employees Association Unit #6-AFSCME Local 101 (American Federation of State, County and Municipal Employees) Unit #9-Miscellaneous Unclassified Management Employees Unit #9A-Unclassified Police Management Employees
Unit #9B-Unclassified Fire Management Employees
Unit #10-PSNSEA (Public Safety Non-Sworn Employees Association) City of Santa Clara Printed on 2/16/2023Page 1 of 1
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City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
23-207 Agenda Date: 2/21/2023

SUBJECT
Conference with Legal Counsel-Existing Litigation (CC)Pursuant to Gov. Code § 54956.9(d)(1) Republic Metropolitan LLC v. City of Santa Clara, et al., Santa Clara County Superior Court Case No. 22CV393667
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City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
23-257 Agenda Date: 2/21/2023

SUBJECT
Conference with Real Property Negotiators (CC)
Pursuant to Gov. Code § 54956.8
Property: 981 Fremont Street, Santa Clara, CA 95050; APN 984-12-011 City/Authority Negotiator: City Manager (or designee)
Negotiating Parties: Jeff Riser, Kappa Alpha Theta; Teresa Smith, Fraternity Housing Corporation Under Negotiation: Purchase/Sale/Exchange/Lease of Real Property (provisions, price and terms of payment)
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City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
23-241 Agenda Date: 2/21/2023

SUBJECT
Conference with Legal Counsel-Existing Litigation (CC)
Pursuant to Gov. Code § 54956.9(d)(1)
Bloom Energy Corporation, et al. v. City of Santa Clara, et al., Santa Clara County Superior Court Case No. 21CV383800
City of Santa Clara Printed on 2/16/2023Page 1 of 1
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City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
23-189 Agenda Date: 2/21/2023

REPORT TO COUNCIL

SUBJECT
Recognition of the Wilcox High School Robotics Team

BACKGROUND
The FIRST Tech Challenge (FTC) is a robotics competition for upper middle and high-school students, working in teams of up to 15 members. It offers the traditional challenge of a FIRST Robotics Competition with the goal to reach young people with a lower-cost, more accessible opportunity to discover the excitement and rewards of science, technology, and engineering.

The Wilcox High School Robotics Team #8872, known as Robopocalypse, won two of the most prestigious awards at the Stratford Preparatory School FIRST Tech Challenge qualifier event on January 22, 2023. The team won all five matches with the best robot performance and entered the playoff rounds, which they won the finals round. The Wilcox High School Robopocalypse received a trophy for best overall team which included judging criteria based on teamwork, robot design and engineering journal.

The Wilcox High School Robotics Team #887 includes 13 students:Alexander Cameron, Yotam Dubiner, Jason Fischer, Melvin Huynh, Minseong Kang, Andrew Kay, Navneeth Krishna, Aubrianna Lee, Melvin Mathew, Saisumant Munagala, Yuxin Qin, Ayanuddin Syed and Brian Wang.

DISCUSSION
At the February 7, 2023 City Council meeting, the City Council recognize the Wilcox High School Robotics Team #8872 Roboocalypse for their recent awards.

ENVIRONMENTAL REVIEW
This is an information report only and no action is being taken by the City Council and no environmental review under the California Environmental Quality Act (“CEQA”) is required.

FISCAL IMPACT
There is no fiscal impact to the City other than staff time.

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 [email protected] <mailto:[email protected]> or at the public information desk at any City of Santa Clara public library.

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23-189 Agenda Date: 2/21/2023
Reviewed by: Maria Le, Assistant to the City Manager, Mayor and Council Offices Approved by: Office of the City Manager
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1500 Warburton Avenue
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@SantaClaraCity
23-212 Agenda Date: 2/21/2023

REPORT TO COUNCIL

SUBJECT
Action on Joint Council and Authorities & Stadium Authority Meeting Minutes of October 18, 2022

COUNCIL PILLAR
Enhance Community Engagement and Transparency

RECOMMENDATION
Approve the Joint Council and Authorities & Stadium Authority meeting minutes of October 18, 2022.

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City of Santa Clara
Meeting Minutes
Joint Council and Authorities Concurrent
& Stadium Authority Meeting
Draft
5:00 PM Hybrid Meeting
City Hall Council Chambers/Virtual
1500 Warburton Avenue
Santa Clara, CA 95050
10/18/2022
The City of Santa Clara will be conducting City Council meetings in a hybrid manner (in-person and continues to have methods for the public to participate remotely). Pursuant to Government Code Section 54953(e) and City of Santa Clara Resolution No. 22-9145 Councilmembers may teleconference from remote locations and the City continues to provide methods for the public to participate remotely:
• Via Zoom:
o https://santaclaraca.zoom.us/j/99706759306
Meeting ID: 997-0675-9306 or
o Phone: 1(669) 900-6833
• Via the City’s eComment
As always, the public may view the meetings on SantaClaraCA.gov, Santa Clara City Television (Comcast cable channel 15 or AT&T U-verse channel 99), or the livestream on the City’s YouTube channel or Facebook page.

Closed Session - 5:00 PM | Regular Meeting - 7:00 PM
5:00 PM CLOSED SESSION
Call to Order in the Council Chambers
Vice Mayor/Chair Jain called the meeting to order at 5:01 PM.

Roll Call
Council/Boardmember Kathy Watanabe, Council/
Boardmember Raj Chahal, Council/Boardmember Karen
Hardy, CouncilBoardmember Kevin Park,

Present: 6 -
Vice Mayor/Chair Suds Jain, and Council/Boardmember Anthony Becker

Absent: 1 - Mayor/Chair Lisa M. Gillmor

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10/18/2022Joint Council and Authorities Concurrent /
Stadium Authority Meeting
Meeting Minutes

1.A 22-1274 Conference with Labor Negotiators (CC)
Pursuant to Gov. Code § 54957.6
City representative: City Manager’s designee
Employee Organization(s):

Unit #1-Santa Clara Firefighters Association, IAFF, Local 1171 Unit #2-Santa Clara Police Officer’s Association
Unit #3-IBEW Local 1245 (International Brotherhood of Electrical Workers) Unit #4-City of Santa Clara Professional Engineers
Units #5, 7 & 8-City of Santa Clara Employees Association Unit #6-AFSCME Local 101 (American Federation of State, County and Municipal Employees)
Unit #9-Miscellaneous Unclassified Management Employees Unit #9A-Unclassified Police Management Employees
Unit #9B-Unclassified Fire Management Employees
Unit #10-PSNSEA (Public Safety Non-Sworn Employees Association)

1.B 22-1281
Conference with Real Property Negotiators (CC)
Pursuant to Gov. Code § 54956.8
Property: 1601 Civic Center Drive, Santa Clara, CA 95050; APN:
224-49-006
City/Authority Negotiator: Rajeev Batra, City Manager (or designee) Negotiating Parties: Charities Housing, Kathy Robinson
Under Negotiation: Purchase/Sale/Exchange/Lease of Real Property (provisions, price and terms)
Public Comment
None.

Convene to Closed Session (Council Conference Room)
Council convened to Closed Session at 5:02 PM.

Mayor Gillmor joined the meeting during the Closed Session. 7:00 PM JOINT COUNCIL/STADIUM AUTHORITY MEETING
Call to Order
Mayor/Chair Gillmor called the meeting to order at 7:01 PM.

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Pledge of Allegiance and Statement of Values
Council/Board recited the Pledge of Allegiance.

Council/Boardmember Chahal recited the Statement of Values.

Assistant City Clerk/Secretary Pimentel recited the AB23 Announcement and Behavioral Standards.

Assistant City Clerk/Secretary Pimentel also noted that any registered Lobbyists must identify themselves and whom they represent.

REPORTS OF ACTION TAKEN IN CLOSED SESSION MATTERS
Interim City Attorney Ngo reported that there was no reportable action from Closed Session.

CONTINUANCES/EXCEPTIONS/RECONSIDERATIONS
None.

SPECIAL ORDER OF BUSINESS

2.B 22-1116

2.C 22-1221
Proclamation of October 2022 as Community Planning Month Mayor Gillmor recognized and proclaimed October 2022 as Community Planning Month.

Director of Community Development Crabtree accepted the proclamation and provided comments of gratitude.

Council comments followed.

Recognize the 75th Anniversary of the Silicon Valley Central Chamber of Commerce
Mayor Gillmor recognized the 75th Anniversary of the Silicon Valley Central Chamber of Commerce and presented the Mayoral recognition to Christian Malesic (President/CEO), John Elwood (Board Chair), Preston Hoopes (Treasurer), and Kawser Jamal (Boardmember).

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2.D 22-1243

2.A 22-832

2.E 22-1242

CONSENT CALENDAR
Verbal Report from the Chief Emergency Services Officer regarding COVID-19 Pandemic
Chief Emergency Services Officer Schoenthal provided a verbal report regarding the COVID-19 pandemic.

Council comments followed.

City Manager Batra recognized Jennifer Guzman (Fire Department Management Analyst) for receiving her certification on Emergency Services certification.

Proclaim October 2022 as Hindu American Awareness and Appreciation Month
Mayor Gillmor proclaimed October 2022 as Hindu American Awareness and Appreciation month.

Satish Chandra Vale (Hindu American Foundation) and Dr. Romesh Japra (Festival of Globe Silicon Valley, Founder) provided comments of gratitude and accepted the proclamation.

Verbal Report Update from City Manager Regarding the Local Drought Emergency
Assistant Director of Water and Sewer Mehta provided a verbal update on the Local Water Drought Emergency.

Council comments followed.

Mayor Gillmor abstained from Item 3.J as her office is located in Franklin Square Mall.

Boardmember Watanabe pulled Item 4.B.

A motion was made by Vice Mayor/Chair Jain, seconded by Council/Boadmember Park, to approve the Balance of Consent Calendar (except Item 4.B).

Aye: Council/Boardmember Watanabe, Council/Boardmember Chahal, Council/Boardmember Hardy, Council/Boardmember Park, Vice Mayor/Chair Jain, Council/Boardmember Becker, and Mayor/Chair Gillmor
7 -

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3.A 22-337 Action on the Meeting Minutes of Special City Council Meeting of June 6, 2022, Joint Council & Authorities Concurrent and Stadium Authority Meeting of June 7, 2022, and Special City Council Meeting June 20, 2022 Recommendation:

Approve the Meeting Minutes of:

June 6, 2022 Special City Council Meeting;
June 7, 2022 Joint Council & Authorities Concurrent and Stadium Authority Meeting; and
June 20, 2022 Special City Council Meeting
A motion was made by Vice Mayor Jain, seconded by
Councilmember Park, to approve staff recommendation.

3.B 22-29
Board, Commissions and Committee Minutes
Recommendation: Note and file the Minutes of:

Downtown Community Task Force - May 20, 2021
Downtown Community Task Force - June 17, 2021
Downtown Community Task Force - August 18, 2022
Audit Committee - March 14, 2022
Cultural Commission - August 1, 2022
A motion was made by Vice Mayor Jain, seconded by
Councilmember Park, to approve staff recommendation.

3.C 22-375
Overview of the City Auditor’s Office Semi-Annual Status Report as of September 30, 2022
Recommendation: Note and file the City Auditor’s Office Semi-Annual Status Report as of September 30, 2022 as recommended by the Council Audit Committee.

A motion was made by Vice Mayor Jain, seconded by
Councilmember Park, to approve staff recommendation.

3.D 22-965
Action on a Task Order for Professional and Technical Services for PeopleSoft Enhancements and Configurations with CherryRoad Technologies
Recommendation:

Authorize the City Manager to negotiate and execute Task Order No. 22.1 with CherryRoad Technologies for professional and technical services for PeopleSoft Human Capital Management Enhancements and
Configurations in the amount of $407,000.

A motion was made by Vice Mayor Jain, seconded by
Councilmember Park, to approve staff recommendation.

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3.E 22-165 Action on an Agreement for Services with Guidehouse, Inc. (Guidehouse) to Provide Consulting Services for North American Electric Reliability Corporation (NERC) and Western Electricity Coordinating Council (WECC) Regulatory Compliance
Recommendation:

1. Approve an Agreement for Services with Guidehouse, Inc. to provide consulting services for North American Electric Reliability Corporation (NERC) and Western Electricity Coordinating Council (WECC) Regulatory Compliance for an initial five-year term and up to five additional term years with a maximum compensation not to exceed $700,000 for the initial term and $900,000 for the optional term years for a total maximum compensation of $1.6 million and subject to the appropriation of funds;

2. Authorize the City Manager to execute the Agreement and related documents and to take such actions as reasonable or necessary to implement and administer the Agreement, including exercising options to extend the term of the Agreement; and

3. Authorize the City Manager to make minor changes to the attached Agreement subject to approval by the City Attorney as to form.

A motion was made by Vice Mayor Jain, seconded by
Councilmember Park, to approve staff recommendation.

3.F 22-1063
Action on an Agreement with Silicon Valley/Santa Clara DMO, Inc. d/b/a Discover Santa Clara® for the Administration of the Santa Clara Tourism Improvement District
Recommendation:

1. Approve and authorize the City Manager to execute an Agreement with Silicon Valley/Santa Clara DMO, Inc. d/b/a Discover Santa Clara® for the Administration of the Santa Clara Tourism Improvement District.

2. Authorize the City Manager to exercise the option to extend the Agreement for up to two five-year options to renew; and

3. Authorize the City Manager to make minor and administrative modifications to the Agreement if necessary.

A motion was made by Vice Mayor Jain, seconded by
Councilmember Park, to approve staff recommendation.

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3.G 22-1248 Action on the Amendment No. 1 to the Agreement with MIG, Inc. for Consultant Services to Update the City’s Adopted Housing Element and Related Budget Amendment
Recommendation:

1. Accept and approve the $102,684 in grant funding from the State of California Department of Housing and Community Development;

2. Authorize the City Manager to execute Amendment No. 1 to the Agreement with MIG, Inc. to provide Housing Element update Consultant Services for a term ending on December 31, 2023, for a maximum compensation not to exceed $233,568;

3. Authorize the City Manager to execute an amendment to increase maximum compensation in the event that additional services are required, subject to the annual appropriation of funds; and

4. Approve the related FY 2022/23 budget amendment in the Engineering Operating Grant Trust Fund to recognize grant revenue in the amount of $102,684 and establish an appropriation in the amount of $102,684 for preparation of the City’s Housing Element Update (five affirmative Council votes required to appropriate additional revenue).

A motion was made by Vice Mayor Jain, seconded by
Councilmember Park, to approve staff recommendation.

3.H 22-1078
Action on Amendment No. 2 to the Agreement with Townsend Public Affairs, Inc. for Legislative Advocacy Services
Recommendation: Authorize the City Manager to execute Amendment No. 2 to the Agreement with Townsend Public Affairs, Inc. to extend the term of the agreement through January 29, 2024 and increase the total not to exceed amount from $252,000 to $342,000.

A motion was made by Vice Mayor Jain, seconded by
Councilmember Park, to approve staff recommendation.

3.I 22-940
Informational Report on 2022 Q3 Legislative Updates
Recommendation: Note and file the informational report on 2022 Q3 legislative updates.

A motion was made by Vice Mayor Jain, seconded by
Councilmember Park, to approve staff recommendation.

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3.J 22-1204 Action on Amendment No. 3 with Wallace Roberts and Todd, LLC (WRT) for the City Hall Relocation Study and Related Budget Amendment Recommendation: 1. Authorize the City Manager to execute Amendment No. 3 to the Agreement with Wallace Roberts and Todd, LLC (WRT) for the City Hall Relocation Study at a total cost not to exceed $1,331,706.

2. Approve the following FY 2022/23 budget amendments:
a. In the General Government Capital Fund, recognize a transfer of $28,360 from the Electric Utility Capital Fund and increase the Precise Plan for Downtown project by $28,360 (five affirmative Council votes); and
b. In the Electric Utility Capital Fund, establish a transfer to the General Government Capital Fund in the amount of $28,360 and reduce the Electric Yard Buildings and Grounds project by $28,360 (five affirmative Council votes required).

Mayor Gillmor abstained from Item 3.J as her office is located in Franklin Square Mall.

A motion was made by Vice Mayor Jain, seconded by
Councilmember Park, to approve staff recommendation.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Vice Mayor Jain, and Councilmember Becker
6 -
Abstained: Mayor Gillmor1 -

3.K 22-1102
Adopt the Resolution Amending the City of Santa Clara Conflict of Interest Codes for Designated Positions as Required by the Political Reform Act Conflict of Interest Code Biennial Update
Recommendation:

Adopt the Resolution amending the City of Santa Clara Conflict of Interest Code required by the Political Reform Act and Regulations of the Fair Political Practices Commission
A motion was made by Vice Mayor Jain, seconded by
Councilmember Park, to adopt Resolution No. 22-9146, amending the City of Santa Clara Conflict of Interest Code required by the Political Reform Act and Regulations of the Fair Political Practices Commission.

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3.L 22-1121 Action to Authorize the City Manager to Negotiate, Execute, and Administer an Infrastructure Fee Credit and Fee Reimbursement Agreement with 2302 Calle Del Mundo, LLC and USA BH 26 for the Tasman East Specific Plan Area and Related Budget Amendment Recommendation:

1. Authorize the City Manager to negotiate, execute, and administer a three-party Infrastructure Fee Credit and Fee Reimbursement Agreement with 2302 Calle Del Mundo, LLC and USA BH 26 to allow for a reimbursement of $1,771,716 to 2302 Calle Del Mundo, LLC and $1,423,145 to USA BH 26;

2. Authorize the City Manager to execute any and all documents necessary for or associated with the Infrastructure Fee Credit and Fee Reimbursement Agreement, including payments to 2302 Calle Del Mundo, LLC and USA BH 26; and

3. Approve the FY 2022/23 budget amendment in the Tasman East Infrastructure Improvement Fund to recognize impact fee revenue in the amount of $2,413,605, increase the Tasman East Developer Reimbursement project in the amount of $345,177, and increase the unrestricted ending fund balance in the amount of $2,068,428 (five affirmative Council votes required to appropriate additional revenue).

A motion was made by Vice Mayor Jain, seconded by Councilmember Park, to approve staff recommendation.

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3.M 22-1013 Action on Adoption of a Resolution Establishing the Necessary Findings of Fact for Modifications to the California Building Standards; Action on Introduction of an Ordinance Amending Title 15 (“Buildings and Construction”) of “The Code of the City of Santa Clara, California” for the Adoption of the 2022 California Building Standards Code; and Setting November 1, 2022 for a Public Hearing on Adoption of such Ordinance Recommendation:

1. Introduce an Ordinance amending Chapter 15.05 ("Administrative Code"), Chapter 15.15 (“Building Code”), Chapter 15.17 (“Residential Code”), Chapter 15.18 ("Property Maintenance Code"), Chapter 15.20 (“Electrical Code”), Chapter 15.30 (“Mechanical Code”), Chapter 15.35 (“Plumbing Code”), Chapter 15.36 (“Energy Code”), Chapter 15.37 (“Historical Building Code”), Chapter 15.38 (“Green Building Code”), and Chapter 15.75 ("Existing Building Code") of Title 15 (“Buildings and Construction”) of “The Code of the City of Santa Clara, California” for the adoption of the 2022 California Building Standards Code;

2. Adopt a Resolution Making Findings of Fact Necessary for the Specified Modifications to the 2022 California Building Code and 2022 California Residential Code Reflected in the Proposed Ordinance; and

3. Set a public hearing on November 1st, 2022 pursuant to California Government Code Section 50022.3 for adoption of the Ordinance.

A motion was made by Vice Mayor Jain, seconded by
Councilmember Park, to pass to print Ordinance No. 2053 amending Chapter 15.05 ("Administrative Code"), Chapter 15.15 (“Building Code”), Chapter 15.17 (“Residential Code”), Chapter

15.18 ("Property Maintenance Code"), Chapter 15.20 (“Electrical Code”), Chapter 15.30 (“Mechanical Code”), Chapter 15.35 (“Plumbing Code”), Chapter 15.36 (“Energy Code”), Chapter

15.37(“Historical Building Code”), Chapter 15.38 (“Green Building Code”), and Chapter 15.75 ("Existing Building Code") of Title 15 (“Buildings and Construction”) of “The Code of the City of Santa Clara, California” for the adoption of the 2022 California Building Standards Code; to adopt Resolution No. 22-9147 Making Findings of Fact Necessary for the Specified Modifications to the 2022 California Building Code and 2022 California Residential Code Reflected in the Proposed Ordinance; and to approve staff recommendation.

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3.N 22-1020 Action to Adopt a Resolution Establishing the Necessary Findings of Fact for Amendments to the California Building Standards; Action to Waive First Reading and Approve Introduction of an Ordinance Adopting the 2022 California Fire Code, as Amended, as the 2022 Santa Clara Municipal Fire and Environmental Code (SCCC Chapter 15.60); and Setting November 1, 2022 for a Public Hearing on Adoption of Said Ordinance Recommendation:

1. Waive first reading and approve introduction of an ordinance amending Chapter 15.60 of the Santa Clara City Code (“Santa Clara Municipal Fire and Environmental Code”) to adopt the 2022 California Fire Code, as amended;

2. Adopt a Resolution establishing the findings of fact necessary for the specified amendments to the 2022 California Fire Code reflected in the proposed Ordinance, as a subset of the California Building Standards; and

3. Set a public hearing on November 1, 2022, for final adoption of the ordinance amending Chapter 15.60 of the Santa Clara City Code (“Santa Clara Municipal Fire and Environmental Code”) to adopt the 2022 California Fire Code, as amended.

3.O 22-1106
A motion was made by Vice Mayor Jain, seconded by
Councilmember Park, to pass to print Ordinance No. 2054 amending Chapter 15.60 of the Santa Clara City Code (“Santa Clara Municipal Fire and Environmental Code”) to adopt the 2022 California Fire Code, as amended; to adopt Resolution No. 22- 9148, establishing the findings of fact necessary for the specified amendments to the 2022 California Fire Code reflected in the proposed Ordinance, as a subset of the California Building Standards; and to approve staff recommendation.

Action on the Introduction of a Draft Ordinance (All-Electric Building Electrification Reach Codes Including EV Charging)
Recommendation: Staff recommend that City Council:

1. Introduce an Ordinance updating the 2022 Reach Code of Santa Clara to the 2022 California Code Cycle and

2. Set a public hearing on November 1st, 2022, pursuant to Government Code Section 50022.3, for adoption of the Ordinance.

A motion was made by Vice Mayor Jain, seconded by
Councilmember Park, to pass to print Ordinance No. 2056 updating the 2022 Reach Code of Santa Clara to the 2022 California Code Cycle; and to approve staff recommendation.

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3.P 22-1230 Action on Adoption of a Resolution of Intention to Approve an Amendment to the Contract Between the Board of Administration of the California Public Employees’ Retirement System and the City Council of the City of Santa Clara to Eliminate a Clause Relating to Temporary Employees; and to Waive First Reading and Approve the Introduction of an Ordinance Amending the Contract Between the Board of Administration of the California Public Employees’ Retirement System and the City Council of the City of Santa Clara to Eliminate a Clause Relating to Temporary Employees
Recommendation:

1. Adopt Resolution of Intention to Approve an Amendment to the Contract Between the Board of Administration of the California Public Employees’ Retirement System and the City Council of the City of Santa Clara to Eliminate a Clause Relating to Temporary Employees;

2. Waive First Reading and Approve the Introduction of an Ordinance Amending the Contract Between the Board of Administration of the California Public Employees’ Retirement System and the City Council of the City of Santa Clara to Eliminate a Clause Relating to Temporary Employees; and

3. Authorize City Manager to Execute Amendment to the Contract Between the Board of Administration of the California Public Employees’ Retirement System and the City Council of the City of Santa Clara.

A motion was made by Vice Mayor Jain, seconded by Councilmember Park, to adopt the Resolution of Intention to Approve an Amendment to the Contract Between the Board of Administration of the California Public Employees’ Retirement System and the City Council of the City of Santa Clara to Eliminate a Clause Relating to Temporary Employees; pass to print Ordinance No. 2055 amending the Contract Between the Board of Administration of the California Public Employees’ Retirement System and the City Council of the City of Santa Clara to Eliminate a Clause Relating to Temporary Employees; and to approve staff recommendation.

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3.Q 22-1279 Action to Waive Second Reading and Adopt Ordinance No. 2051 Approving the Schematic Design for the Central Park Entrance, Accessibility, and Parking Improvements Project, in Accordance with City Charter Section 714.1
Recommendation:

Waive Second Reading and Adopt Ordinance No. 2051 Approving the Schematic Design for the Central Park Entrance, Accessibility, and Parking Improvements Project, in Accordance with City Charter Section 714.1
A motion was made by Vice Mayor Jain, seconded by
Councilmember Park, to adopt Ordinance No. 2051 approving the Schematic Design for the Central Park Entrance, Accessibility, and Parking Improvements Project, in Accordance with City Charter Section 714.1.

3.R 22-1293
Action to Waive Second Reading and Adopt Ordinance No. 2052 Amending Chapter 12.35 (“Trees and Shrubs”) of Title 12 (“Streets, Sidewalks and Public Places”) of “The Code of the City of Santa Clara, California” to Modify the Process for Violation Appeals Recommendation:

Waive Second Reading and Adopt Ordinance No. 2052 Amending Chapter 12.35 (“Trees and Shrubs”) of Title 12 (“Streets, Sidewalks and Public Places”) of “The Code of the City of Santa Clara, California” to Modify the Process for Violation Appeals.

A motion was made by Vice Mayor Jain, seconded by
Councilmember Park, to adopt Ordinance No. 2052 amending Chapter 12.35 (“Trees and Shrubs”) of Title 12 (“Streets, Sidewalks and Public Places”) of “The Code of the City of Santa Clara, California” to Modify the Process for Violation Appeals.

SANTA CLARA STADIUM AUTHORITY CONSENT CALENDAR

4.A 22-1087 Action on Stadium Authority Bills and Claims for the Month of July 2022 Recommendation: Approve the list of Stadium Authority Bills and Claims for July 2022.

A motion was made by Vice Chair Jain, seconded by Boardmember Park, to approve staff recommendation.

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PUBLIC PRESENTATIONS
Public Speaker expressed comments of concern regarding the illegal food vendors at Levi's Stadium.

Betsy Megas expressed comments of concern regarding election mailers she has received.

Public Speaker expressed comments regarding the election and California Voting Rights Act.

CONSENT ITEMS PULLED FOR DISCUSSION

4.B 22-1103 Adopt the Stadium Authority’s Resolution Amending the Conflict of Interest Code for Designated Positions as Required by the Political Reform Act and Regulations of the Fair Political Practices Commission Recommendation:

Adopt the Resolution amending the Stadium Authority Conflict of Interest Code required by the Political Reform Act and Regulations of the Fair Political Practices Commission.

Boardmember Watanabe pulled this item for clarification.

Executive Director Batra addressed Board
questions.

Board questions followed.

Interim Stadium Authority Counsel Ngo address Board questions.

Public Speaker(s): Kirk Vartan
Harold (eComment)
Monica (eComment)
A motion was made by Boardmember Watanabe, seconded by
Boardmember Park, to adopt Stadium Authority's Resolution No. 22-1 amending the Conflict of Interest Code for Designated Positions as Required by the Political Reform Act and Regulations of the Fair Political Practices Commission.

Aye: Boardmember Watanabe, Boardmember Chahal, Boardmember Hardy, Boardmember Park, Vice Chair Jain, Boardmember Becker, and Chair Gillmor
7 -

PUBLIC HEARING/GENERAL BUSINESS

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5. Items related to Civil Grand Jury Reports
City Manager Batra and Interim City Attorney Ngo provided a brief verbal report on the transmittal of two Civil Grand Jury reports he submitted to the Council.

Council comments and questions followed.

Interim City Attorney Ngo and City Manager Batra addressed Council questions.

Vice Mayor Jain provided a verbal report on his Council Policy 030 request (Item 5.C).

Council discussion continued.

Mayor Gillmor provided a verbal report on her Council Policy 030 request (Item 5.B).

Council discussion ensued.

Interim City Attorney Ngo responded to Council questions.

A motion was made by Councilmember Park, to set a schedule to discuss and respond to the Grand Jury report; and deny Item 5.B and 5.C.

Council comments ensued.

Motion failed due to lack of a second.

A motion was made by Councilmember Watanabe, seconded by Mayor Gillmor, to request an Ethics Commission be formed to work with Council and staff to go over findings and recommendations and return with recommendations and Council having the ultimate decision on the response submitted to the Grand Jury.

A substitute motion was made by Councilmember Becker, seconded by Councilmember Hardy, to direct staff to schedule special meetings for Council feedback and consideration of Grand Jury findings and recommendations, and deny Items 5.B and 5.C.

Public Speaker(s): Public Speakers (4)
#8830
Name Voter Not required

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Council discussion on the motion continued.

Interim City Attorney Ngo addressed Council questions.

A motion was made by Councilmember Becker, seconded by
Councilmember Hardy, to consider the substitute motion.

Aye: Councilmember Chahal, Councilmember Hardy, Councilmember Park, Vice Mayor Jain, and Councilmember Becker
5 -
Nay: Councilmember Watanabe, and Mayor Gillmor2 -

5.A 22-1294 Transmittal Report on Grand Jury Reports (For Information Only):

1. “If You Only Read the Ballot, You're Being Duped,” dated October 7, 2022

2. “Unsportsmanlike Conduct: Santa Clara City Council,” dated October 10, 2022
Recommendation:

Staff makes no recommendation.

Council comments followed.

Public Speaker(s): Nancy Biagini (E-Mail)
A motion was made by Councilmember Becker, seconded by
Councilmember Hardy, to direct staff to schedule special meetings for Council feedback and consideration of Grand Jury findings and recommendations, and deny Items 5.B and

5.C.

Aye: Councilmember Chahal, Councilmember Hardy, Councilmember Park, Vice Mayor Jain, and Councilmember Becker
5 -
Nay: Councilmember Watanabe, and Mayor Gillmor2 -

5.B 22-1290 Action on a Council Written Request (Council Policy 030) Submitted by Mayor Gillmor Requesting to Place an Agenda Item at a Future Council Meeting to Take Action on the Mayor’s proposal for a Santa Clara Anti-Corruption Reform Plan in response to the Santa Clara County Grand Jury Report titled “Unsportsmanlike Conduct: Santa Clara City Council” Recommendation:

Staff makes no recommendation.

Item 5.B and 5.C were considered under Item 5.A.

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5.C 22-1289 Action on a Council Written Request (Council Policy 030) Submitted by Vice Mayor Jain Requesting to Place an Agenda Item at a Future Council Meeting to Discuss:

The Grand Jury Report and how to respond to the Findings and Recommendations and how the City might implement some of the Recommendations and Discuss Workplan and Schedule for the Governance and Ethics Committee
Recommendation:

Staff makes no recommendation.

Item 5.B and 5.C were considered under Item 5.A.

REPORTS OF MEMBERS AND SPECIAL COMMITTEES
Mayor Gillmor noted that ComicCon is coming to Central Park Library on Saturday, October 22, 2022.

Councilmember Park encouraged attendance at ComicCon and reported that there is a showing at the Triton Museum of Art on Thursday, October 20, 2022.

Mayor Gillmor also noted there was a successful family day at the Fire House and expressed gratitude to the Fire Department for hosting the event.

CITY MANAGER/EXECUTIVE DIRECTOR REPORT
City Manager Batra reported that the City was the recipient of the MISAC Award for Excellence in Technology and congratulated the Information Technology (IT) team on their accomplishment.
22-1280 Tentative Meeting Agenda Calendar (TMAC)

ADJOURNMENT
The meeting was adjourned at 9:33 PM.

A motion as made by Council/Boardmember Becker, seconded by Council/Boardmember Hardy, to adjourn the meeting.

Aye: Council/Boardmember Watanabe, Council/Boardmember Chahal, Council/Boardmember Hardy, Council/Boardmember Park, Vice Mayor/Chair Jain, Council/Boardmember Becker, and Mayor/Chair Gillmor
7 -
The next regular scheduled meeting is on Tuesday, November 1, 2022 in the City Hall Council Chambers.

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The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision. Under Section 1094.6, any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. If a person wishes to challenge the nature of the above section in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Santa Clara, at or prior to the meeting. In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies.

AB23 ANNOUNCEMENT: Members of the Santa Clara Stadium Authority, Sports and Open Space Authority and Housing Authority are entitled to receive $30 for each attended meeting.

Note: The City Council and its associated Authorities meet as separate agencies but in a concurrent manner. Actions taken should be considered actions of only the identified policy body.

LEGEND: City Council (CC); Stadium Authority (SA); Sports and Open Space Authority (SOSA); Housing Authority (HA); Successor Agency to the City of Santa Clara Redevelopment Agency (SARDA); Bayshore North Project Enhancement Authority (BNPEA); Public Facilities Financing Corporation (PFFC)
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 [email protected] <mailto:[email protected]> or at the public information desk at any City of Santa Clara public library.

If a member of the public submits a speaker card for any agenda items, their name will appear in the Minutes. If no speaker card is submitted, the Minutes will reflect "Public Speaker."
In accordance with the requirements of Title II of the Americans with Disabilities Act of 1990 ("ADA"), the City of Santa Clara will not discriminate against qualified individuals with disabilities on the basis of disability in its services, programs, or activities, and will ensure that all existing facilities will be made accessible to the maximum extent feasible. The City of Santa Clara will generally, upon request, provide appropriate aids and services leading to effective communication for qualified persons with disabilities including those with speech, hearing, or vision impairments so they can participate equally in the City’s programs, services, and activities. The City of Santa Clara will make all reasonable modifications to policies and programs to ensure that people with disabilities have an equal opportunity to enjoy all of its programs, services, and activities.

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MEETING DISCLOSURES
City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
23-07 Agenda Date: 2/21/2023

REPORT TO COUNCIL

SUBJECT
Board, Commissions and Committee Minutes

COUNCIL PILLAR
Enhance Community Engagement and Transparency

RECOMMENDATION
Note and file the Minutes of:

Historical and Landmarks Commission - December 1, 2022
Cultural Commission - January 9, 2023 (Special Meeting) Neighborhood University Relations Committee - December 12, 2022 City of Santa Clara Printed on 2/16/2023Page 1 of 1
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City of Santa Clara
Meeting Minutes
Historical & Landmarks Commission
Draft
6:00 PM Virtual Meeting12/01/2022
Pursuant to California Government Code section 54953(e) and City of Santa Clara Resolution 22-9145, the Historical and Landmarks Commission meeting will be held by teleconference only. No physical location will be available for this meeting; however, the City of Santa Clara continues to provide methods for the public to participate remotely:
• Via Zoom:
o https://santaclaraca.zoom.us/j/97233262035 or
o Phone: 1 (669) 900-6833
Webinar ID: 972 3326 2035
Public Comments prior to meeting may be submitted via email to [email protected] no later than noon on the day of the meeting.

Clearly indicate the project address, meeting body, and meeting date in the email.

PUBLIC PARTICIPATION IN ZOOM WEBINAR:

Please follow the guidelines below when participating in a Zoom Webinar:
- The meeting will be recorded so you must choose 'continue' to accept and stay in the meeting.
- If there is an option to change the phone number to your name when you enter the meeting, please do so as your name will be visible online and will be used to notify you that it is your turn to speak.
- Mute all other audio before speaking. Using multiple devices can cause an audio feedback. - Use the raise your hand feature in Zoom when you would like to speak on an item and lower when finished speaking. Press *9 to raise your hand if you are calling in by phone only. - Identify yourself by name before speaking on an item. - Unmute when called on to speak and mute when done speaking. If there is background noise coming from a participant, they will be muted by the host. Press *6 if you are participating by phone to unmute.
- If you no longer wish to stay in the meeting once your item has been heard, you may leave the meeting.

CALL TO ORDER AND ROLL CALL
Chair Leung called the meeting to order at 6:05 p.m.

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12/01/2022Historical & Landmarks Commission Meeting Minutes Commissioner Michael Celso , Commissioner Amy Kirby, Chair Patricia Leung, Commissioner Kathleen Romano, Commissioner Ed Stocks, and Vice Chair Ana Vargas-Smith
Present 6 -
Commissioner Megan SwartzwelderAbsent 1 -
A motion was made by Commissioner Vargas-Smith, seconded by Commissioner Stocks to excuse Commissioner Swartzwelder.

Aye: Commissioner Celso, Commissioner Kirby, Chair Leung, Commissioner Romano, Commissioner Stocks, and Vice Chair Vargas-Smith
6 -
Excused: Commissioner Swartzwelder1 -

CONSENT CALENDAR

1. 22-1432 Historical and Landmarks Commission Minutes of November 3, 2022 A motion was made by Commissioner Stocks, seconded by
Commissioner Vargas-Smith, to approve Staff Recommendation.

Aye: Commissioner Celso, Commissioner Kirby, Chair Leung, Commissioner Romano, Commissioner Stocks, and Vice Chair Vargas-Smith
6 -
Excused: Commissioner Swartzwelder1 -

PUBLIC PRESENTATIONS
Commissioner Romano discussed the ongoing construction at 712 Jefferson Street. She expressed concern that the item did not go before the HLC and was considered a Minor Significant Property Alteration Permit. She stated she was going to meet with staff to discuss further.

Commissioner Leung requested that a Stop Work Order for 712 Jefferson Street is agendized at the February 2, 2023 HLC meeting.

GENERAL BUSINESS

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12/01/2022Historical & Landmarks Commission Meeting Minutes

2. 22-1305 Consideration of a First and Second Story Addition at 1485 Bellomy Street that is located within 200 feet of a Historic Resource
Public Speakers:

Adam Thompson
Rob Mayer
Jonathon Evans
A motion was made by Commissioner Stocks, seconded by
Commissioner Vargas-Smith, to continue the item to the February 2, 2023 meeting with a recommendation for the following revisions:

1. Reduce the 25-foot stucco wall on the side property line

2. Correct project data calculation and plan dimensions

3. Provide roof plans

4. Provide sketch of the two-neighboring residences in similar scale in elevation
5 .Explore basement addition instead of above ground

6. Meet maximum 40% lot coverage

7. Change roof style to be compatible with the immediate neighborhood

8. Reduce the mass to be compatible with the adjacent HRI property

Aye: Commissioner Celso, Commissioner Kirby, Chair Leung, Commissioner Romano, Commissioner Stocks, and Vice Chair Vargas-Smith
6 -
Excused: Commissioner Swartzwelder1 -

3. 22-1422 Consideration of a Significant Property Alteration Permit for a Second Story Addition at 1540 Homestead Road (Continued from the May 5, 2022 HLC Meeting)
Public speakers:

Craig Mineweaser, Architectural Advisor to the HLC
Rob Mayer
Jonathon Evans
A motion was made by Commissioner Romano, seconded by
Commissioner Vargas-Smith to continue the item to the February 2, 2023 meeting with the recommendation to work with architect and reduce mass on the right side along the driveway.

Aye: Commissioner Celso, Commissioner Kirby, Chair Leung, Commissioner Romano, and Vice Chair Vargas-Smith
5 -
Excused: Commissioner Swartzwelder1 -
Recused: Commissioner Stocks1 -

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12/01/2022Historical & Landmarks Commission Meeting Minutes

4. 22-1451 Study Session: Discussion of Historical Preservation Topics to Recommend to the City Council for Council Consideration The Commission discussed historic preservation topics to be referred to the City Council at their Priority Study Session. Staff Liaison Rebecca Bustos will draft a memo to Council on behalf of the HLC with this information.

COMMISSIONERS REPORT

STAFF REPORT

1. Berryessa Adobe Maintenance
Staff Liaison Rebecca Bustos indicated there were no updates.

1. Subcommittee Reporting - 20 minutes
Commissioners present reported on subcommittee activities. The Marketing Subcommittee stated that they had not met. The Outreach and Education Subcommittee shared that they had met to discuss context statement and the potential use of grant funds.

2. Board and Committee Assignments - 15 minutes
Board/Committee Lead/Alternate Santa Clara Arts and Historic Consortium Leung / Romano Historic Preservation Society of Santa Clara Vargas-Smith / Leung Old Quad Residents Association Leung / Romano Development Review Hearing Romano / Vargas-Smith BART/ High Speed Rail/ VTA BRT Committee Vargas-Smith / Swartzwelder Zoning Ordinance Update Romano / Swartzwelder El Camino Real Specific Plan Community Advisory Committee Leung Downtown Revitalization Vargas-Smith / Romano

3. Announcements and Other Items - 10 minutes

4. Commissioner Travel and Training Requests - 10 minutes

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12/01/2022Historical & Landmarks Commission Meeting Minutes

ADJOURNMENT
A motion was made by Commissioner Vargas-Smith, seconded by Commissioner Romano, to adjourn the meeting.

The meeting adjourned at 11:13 p.m.

The next regular scheduled meeting is on February 2, 2023.

MEETING DISCLOSURES

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12/01/2022Historical & Landmarks Commission Meeting Minutes The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision. Under Section 1094.6, any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. If a person wishes to challenge the nature of the above section in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Santa Clara, at or prior to the meeting. In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies.

If a member of the public submits a speaker card for any agenda items, their name will appear in the Minutes. If no speaker card is submitted, the Minutes will reflect "Public Speaker."
In accordance with the requirements of Title II of the Americans with Disabilities Act of 1990 ("ADA"), the City of Santa Clara will not discriminate against qualified individuals with disabilities on the basis of disability in its services, programs, or activities, and will ensure that all existing facilities will be made accessible to the maximum extent feasible. The City of Santa Clara will generally, upon request, provide appropriate aids and services leading to effective communication for qualified persons with disabilities including those with speech, hearing, or vision impairments so they can participate equally in the City’s programs, services, and activities. The City of Santa Clara will make all reasonable modifications to policies and programs to ensure that people with disabilities have an equal opportunity to enjoy all of its programs, services, and activities.

Agendas and other written materials distributed during a public meeting that are public record will be made available by the City in an appropriate alternative format.

Contact the City Clerk’s Office at 1 408-615-2220 with your request for an alternative format copy of the agenda or other written materials.

Page 6 ends

City of Santa Clara
Meeting Minutes
Cultural Commission
Draft
7:00 PM Zoom Meeting01/09/2023
(Special Meeting)
Pursuant to California Government Code Section 54953(e) and City of Santa Clara Resolution 22-9175, the Cultural Commission meeting will be held by teleconference only. No physical location will be available for this meeting; however, the City of Santa Clara continues to have methods for the public to participate remotely:

Please click the link below to join the webinar:
https://santaclaraca.zoom.us/j/83222664367
Or join by phone: 1-669-900-6833

CALL TO ORDER AND ROLL CALL
Vice Chair Samara called the meeting to order at 7:06 p.m.

Commissioner Siddarth Sundaram, Vice Chair Louis Samara, Commissioner Debra von Huene, Chair Candida Diaz, Commissioner Jonathan Marinaro, and Commissioner Paul McNamara
Present 6 -

CONSENT CALENDAR
A motion was made by Commissioner von Huene, seconded by Chair Diaz, that the Consent Calendar be approved.

Aye: Commissioner Sundaram, Vice Chair Samara, Commissioner von Huene, Chair Diaz, Commissioner Marinaro, and Commissioner McNamara
6 -

1.A 23-1555
Cultural Commission Regular Meeting Minutes of November 7, 2022 Recommendation: Approve the Cultural Commission Regular Meeting Minutes of November 7, 2022

1.B 23-861
Cultural Commission Regular Meeting Minutes of December 5, 2022 Recommendation: Approve the Cultural Commission Regular Meeting Minutes of December 5, 2022

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01/09/2023Cultural Commission Meeting Minutes

PUBLIC PRESENTATIONS
None.

GENERAL BUSINESS

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01/09/2023Cultural Commission Meeting Minutes

2. 23-311 Discussion of Cultural Commission Work Plan Goals and Activities for FY 2022/23
Recommendation: Develop, discuss and recommend Cultural Commission work plan goals and activities for FY 2022/23.

Commissioners reported the following updates to the Cultural Commission Work Plan Goals and Activities for FY 2022/23.

GOAL #1: Host and enhance multicultural events to encourage and acquaint Santa Clara residents with cultural diversity.

Concerts: Vice Chair Samara reported that GFI Entertainment was awarded the bid for sound and production for the Concerts and Street Dance. The committee will meet and discuss venues, dates and bands for the year.

Proposed dates are: June 9, June 23, July 21, Aug. 18 and Sept. 29.

Street Dance: Vice Chair Samara mentioned that the Street Dance will be held on Aug. 4.

Sponsorship: The committee will begin securing sponsors to help cover expenses.

GOAL #2: Develop and encourage interactive, art opportunities to provide temporary, performing, cultural, and public art in the City.

Public Art-Commissioner von Huene reported that she began discussion with two (2) artists about temporary art installation. One (1) option is a Rainbow Portal and the other is a Horse Sculpture. Recreation Manager Castro mentioned it would be efficient to do a Call for Artists.

Approximately $10,000 is left in the budget to accommodate this project.

Commissioner von Huene will work on a Call for Artists.

Utility Box Art-Chair Diaz mentioned that another Utility Box has been completed. It is located across the street from Schmidt Park (Los Padres/Saratoga Ave). Photos of the artist and the completed box was shared. Feedback was received from artists about the difficulty of the process. Next round will include FAQs about the process and insurance amount to assist the artists. Four (4) artists are in the process of painting.

Chair Diaz thanked staff for their work.

Holiday Home Decorating Contest- 21 entries were received.

Commissioners Marinaro and von Huene delivered the winning signs to the homes. Judging rubric was used and saved for reference if needed.

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01/09/2023Cultural Commission Meeting Minutes
Vice Chair Samara mentioned that there isn't interest from District 5. He wants to meet with the committee to see the future of the program moving forward and if changes are needed.

Commissioner McNamara suggested using Print Media, ie: SC Weekly to advertise the contest.

Map-Completed Utility Boxes will be added by Chair Diaz.

GOAL #3: Raise the visibility of commemorative months.

Vice Chair Samara and Chair Diaz will provide a updated proposal at the Feb. meeting of new days, months and an updated coloring book.

Commissioner von Huene will provide commemorative month posts for Jan. and Feb.

GOAL #4: Enhance communication and media strategy to increase community awareness of the Cultural Commission.

Marketing Strategies-Commissioners Marinaro and McNamara will meet on marketing strategies. Goal will be to have more outreach and investment in events. Will provide update next month.

Report to Council-Recreation Manager Castro will meet with Chair Diaz on a date for Commission to report to Council in 2023.

GOAL #5: Prepare for Citywide Arts Master Plan Process
Patrick Henry Drive Development-Recreation Manager Castro reported there was a public meeting held on Dec.12. The Park will be discussed at the Parks & Recreation Commission Meeting on Jan. 17.

Consultant interviews will be held on Friday for public outreach and design process. 155 people participated in the survey.

Arts Master Plan-Santa Clara University is currently on break.

Commissioner von Huene will set up a meeting to draft the grant for the Arts Master Plan. Commissioners Marinaro and McNamara are working on securing consultants to assist with writing the grant and reviewing the Arts Master Plan.

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01/09/2023Cultural Commission Meeting Minutes

STAFF REPORT
Recreation Manager Castro thanked the Commissioners who attended the Holiday Tree Lighting event. She mentioned winter recreation classes began today after a two week facility closure. The Emergency Operations Center has been partially activated to respond to resident needs, outreach and supply efforts in response to the storm. She stated that staff is working on sponsorship packages for the whole year and starting to solicit artists for the Art & Wine Festival.

COMMISSIONERS REPORT
Commissioner von Huene mentioned she is a member of the SC Chorale. They held three (3) concerts in Dec. One (1) was free and two (2) were ticketed shows at the Santa Clara Mission. Shows were well attended. She has a rehearsal tonight for the new season for a show in March and there will be two (2) concerts in June. At end of June the concert will be held at the Carnegie Hall in New York.

Commissioner McNamara shared that he graduated with a Master of Fine Arts in Writing from San Jose State University. He was congratulated by the commission.

Chair Diaz shared that she had a difficult time applying for college programs.

ADJOURNMENT
A motion was made by Commissioner von Huene, seconded by Commissioner McNamara, That the meeting be adjourned at 8 p.m.

Aye: Commissioner Sundaram, Vice Chair Samara, Commissioner von Huene, Chair Diaz, Commissioner Marinaro, and Commissioner McNamara
6 -

MEETING DISCLOSURES

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01/09/2023Cultural Commission Meeting Minutes
The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision. Under Section 1094.6, any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. If a person wishes to challenge the nature of the above section in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Santa Clara, at or prior to the meeting. In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies.

If a member of the public submits a speaker card for any agenda items, their name will appear in the Minutes. If no speaker card is submitted, the Minutes will reflect "Public Speaker."
In accordance with the requirements of Title II of the Americans with Disabilities Act of 1990 ("ADA"), the City of Santa Clara will not discriminate against qualified individuals with disabilities on the basis of disability in its services, programs, or activities, and will ensure that all existing facilities will be made accessible to the maximum extent feasible. The City of Santa Clara will generally, upon request, provide appropriate aids and services leading to effective communication for qualified persons with disabilities including those with speech, hearing, or vision impairments so they can participate equally in the City’s programs, services, and activities. The City of Santa Clara will make all reasonable modifications to policies and programs to ensure that people with disabilities have an equal opportunity to enjoy all of its programs, services, and activities.

Agendas and other written materials distributed during a public meeting that are public record will be made available by the City in an appropriate alternative format.

Contact the City Clerk’s Office at 1 408-615-2220 with your request for an alternative format copy of the agenda or other written materials.

Page 6 ends

City of Santa Clara
Meeting Minutes - Draft
Neighborhood-University Relations Committee
Draft
6:00 PM Virtual Meeting12/12/2022
Pursuant to California Government Code section 54953(e) and City of Santa Clara Resolution 22-9150, the Neighborhood-University Relations Committee meeting will be held by teleconference only. No physical location will be available for this meeting; however, the City of Santa Clara continues to provide methods for the public to participate remotely:

Via Zoom:
https://santaclaraca.zoom.us/j/82990496428
Phone: 1 669 900 6833
Webinar ID: 829 9049 6428
Public Comments prior to meeting may be submitted via email to [email protected] no later than noon on the day of the meeting.

Clearly indicate the project address, meeting body, and meeting date in the email.

CALL TO ORDER AND ROLL CALL
Chair Raj Chahal called the meeting to order at 6:00 p.m.

Present 3 - Mayor Lisa Gillmor, Councilmember Raj Chahal (Chair), Councilmember Anthony Becker

CONSENT CALENDAR

1.A Neighborhood University Relations Committee Minutes of May 23, 2022 A motion was made by Mayor Gillmor, seconded by Councilmember Becker to approve the Neighborhood University Relations Committee Minutes of May 23,2022. Motion was approved 3-0.

PUBLIC PRESENTATIONS
Mark Kelsey spoke requesting the Committee to direct staff to create a work plan to mitigate the impact of the University’s growth on the

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12/12/2022Neighborhood-University Relations
Committee
Meeting Minutes - Draft
surrounding neighborhoods.

GENERAL BUSINESS

2. Reports and Discussion: Presentations by Community Development Department, Santa Clara University, and Police Department followed by community questions
Community Development, Lesley Xavier, Planning Manager, presented Code Enforcement statistics and activity, current development projects in the area, and Zoning Code update status and timeline.

Councilmember Becker expressed concern about the 2655 The Alameda development project and its previous operation as a gas station and he would like to hear from the residents about the project.

Santa Clara University, Kimberly Gilkey, Assistant Dean for Off Campus Living mentioned that the students are concerned with parking in the area around 2655 The Alameda and wants to provide the students with engagement opportunities.

Santa Clara University, Kimberly Gilkey, Assistant Dean for Off Campus Living, presented on Student Educational Outreach including the Annual Walkabout and First Year event, and updates on the monthly Joint Agency Coordination Committee meetings. Santa Clara University, John Ottoboni, Senior Legal Counsel, also spoke on the goal and process of the Joint Agency meetings. Kimberly Gilkey presented on the SCU Sustainability Plan, input from the community is encouraged.

Mayor Gillmor asked about involvement from the Property Managers and their participation in the monthly meetings.

Mark Kelsey commented on the monthly meetings and mentioned the opportunity for the City to engage additional property managers and formalize a method to coordinate communication.

Councilmember Chahal agreed with Mark Kelsey and suggests City staff look for additional ways to coordinate communication with more property managers.

Santa Clara Police Department, Sergeant Deger, gave updates on proactive steps, violation statistics, incident reports, behavior of the students, enforcement model, and Blue Tag process update.

Mayor Gillmor expressed concern over the increase in violations.

Councilmember Becker mentioned there are many factors that contribute

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12/12/2022Neighborhood-University Relations
Committee
Meeting Minutes - Draft
to student activity and thanked the Police Department for their work.

Mark Kelsey thanked the Police Department for their Enforcement Policy and requested the Committee develop a work plan to mitigate the impact on surrounding neighborhoods.

Councilmember Chahal agreed with Mark Kelsey and thanked the Committee for the improvements and recognized the Committee’s need to be proactive.

ADJOURNMENT
Motion to adjourn was made by Mayor Gillmor, seconded by Councilmember Becker. Motion was approved 3-0.

The meeting adjourned at 7:00 p.m. The next regular scheduled meeting is February 6, 2023.

MEETING DISCLOSURES

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12/12/2022Neighborhood-University Relations
Committee
Meeting Minutes - Draft
The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision. Under Section 1094.6, any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. If a person wishes to challenge the nature of the above section in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Santa Clara, at or prior to the meeting. In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies.

If a member of the public submits a speaker card for any agenda items, their name will appear in the Minutes. If no speaker card is submitted, the Minutes will reflect "Public Speaker."
In accordance with the requirements of Title II of the Americans with Disabilities Act of 1990 ("ADA"), the City of Santa Clara will not discriminate against qualified individuals with disabilities on the basis of disability in its services, programs, or activities, and will ensure that all existing facilities will be made accessible to the maximum extent feasible. The City of Santa Clara will generally, upon request, provide appropriate aids and services leading to effective communication for qualified persons with disabilities including those with speech, hearing, or vision impairments so they can participate equally in the City’s programs, services, and activities. The City of Santa Clara will make all reasonable modifications to policies and programs to ensure that people with disabilities have an equal opportunity to enjoy all of its programs, services, and activities.

Agendas and other written materials distributed during a public meeting that are public record will be made available by the City in an appropriate alternative format.

Contact the City Clerk’s Office at 1 408-615-2220 with your request for an alternative format copy of the agenda or other written materials.

Page 4 ends

City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
23-149 Agenda Date: 2/21/2023

REPORT TO COUNCIL

SUBJECT
Action on Monthly Financial Status and Investment Reports for December 2022 and Approve the Related Budget Amendments

COUNCIL PILLAR
Enhance Community Engagement and Transparency

BACKGROUND
In compliance with the Charter of the City of Santa Clara and the adopted Investment Policy, the monthly financial report and monthly investment report for December 2022 are submitted for your information. The financial review as of December 31, 2022 provide a year-to-date financial update to the City Council for the current fiscal year. The analysis of the revenues collected and all expenditures measures the level of adherence to the annual budget and allows the City to monitor and project revenues and expenditures throughout the year.

The Adopted Budget incorporates the estimated revenues and planned expenditures for all funds.

The attached Financial Status Report provides the budget to actual revenue and expenditure summaries for the General Fund, Special Revenue Funds and Enterprise Operating Funds, as well as expenditure summary for Capital Improvement Funds and Fund Reserve Balances. Any significant variances are explained in the report.

In accordance with City Council Policy 051 - Donations to the City, included in this report is a monthly activity and annual summary of donations received by department. Although the requirement of the policy is to report quarterly, in its ongoing effort to streamline reporting, the City includes this information monthly in the financial status report.

DISCUSSION
Monthly Financial Status Report (Attachment 1)
The attached report summarizes the City’s financial performances as of December 31, 2022.

Financial analysis is provided for the General Fund, select Special Revenue Funds, Enterprise Operating Funds, and Capital Improvement Funds.

Attachment 1 shows that General Fund revenues (excluding transfers) were at 40.7% of the budget through December 2022 and are tracking to end the year above budget.

General Fund departmental expenditures were at 45% of budget through December 2022. Several cost-control measures that were implemented in FY 2019/20 remain in place to generate expenditure savings. These measures include a hiring freeze and controls around overtime, as-needed staff, City of Santa Clara Printed on 2/16/2023Page 1 of 4
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marketing, travel, technology and vehicle purchases. With these measures, expenditures are expected to end the year below budget.

As shown in Attachment 1, total revenues for Enterprise Funds (Electric, Water, Sewer, Cemetery, Solid Waste, and Water Recycling) were at 44.8% of the budget through December 2022, while total expenses were at 43% of the budget.

In the month of December, the City received $1,000 in donations, bringing total donations for FY 2022/23 to $33,647.

Concerns remain regarding the state of the economy, and there is a tremendous amount of uncertainty. Given this level of uncertainty, the December 2022 UCLA Forecast presented a two- scenario economic forecast: a recession scenario and a no recession scenario. The U.S. Chamber of Commerce Chief Economists Committee projects a mild and short recession in mid-2023 due to a reduction in consumer and business spending resulting from rising interest rates. In addition, consumers are expected to exhaust the historic savings built up during the COVID-19 pandemic and would no longer have that source of money to keep spending at a pace with inflation. The Conference Board also forecasts a recession starting in early 2023, with projections for three quarters of negative GDP growth starting in the first quarter of 2023. Their projections call for a relatively brief and mild downturn with the expectation that growth should rebound in 2024 as inflation ebbs further and the Fed begins to loosen monetary policy.

On a national level, the unemployment rate remained fairly flat at 3.4% in January 2022, compared to

3.5% in December 2022. This rate was well below the record setting high of 14.7% in April 2020, and consistent with the pre-pandemic unemployment rate of 3.5%. In January, the number of unemployed persons remained unchanged at 5.7 million. This unemployment figure matched the pre-pandemic level of 5.7 million. In the fourth quarter 2022 advance estimate, the Gross Domestic Product (GDP) increased by 2.9% as a result of deceleration in nonresidential fixed investment, decreases in exports and consumer spending as well as downturns in State and local government spending.

At the State level, the UCLA December 2022 Forecast for California includes soft-landing and recession scenarios given the current economic uncertainly. In both scenarios, a milder impact is expected for the California economy.

After the State’s largest increase in the unemployment rate in April 2020, the California unemployment rate remained flat at 4.1% between November and December 2022. The December 2022 rate is lower compared to the 5.8% rate in December 2021. California has now regained all of the 2.76 million nonfarm jobs lost due to COVID-19 in March and April 2020. The State has also now outpaced the country as a whole in terms of job growth by 0.6%. The unadjusted unemployment rate in the San Jose-Sunnyvale-Santa Clara Metropolitan Statistical Area (MSA) decreased slightly from

2.4% in November 2022 to 2.1% in December 2022.

Staff will continue to closely monitor the General Fund revenues and the City’s overall financial performance as the fiscal year progresses.

Monthly Investment Report (Attachment 2)
All securities held by the City of Santa Clara as of December 31, 2022, were in compliance with the City’s Investment Policy Statement regarding current market strategy and long-term goals and City of Santa Clara Printed on 2/16/2023Page 2 of 4
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objectives. All securities held are rated “A” or higher by two nationally recognized rating agencies.

There is adequate cash flow and maturity of investments to meet the City’s needs for the next six months.

The City’s investment strategy for December 2022 was to invest funds not required to meet current obligations in securities listed in the prevailing Investment Policy Statement, with maturities not to exceed five years form the date of purchase. This strategy ensures safety of the City’s funds, provides liquidity to meet the City’s cash needs, and with a reasonable portfolio return of 1.70% in December.

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)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.

FISCAL IMPACT
From time to time, adjustments to the budget are required to reflect new information, align budgets with actual revenues and expenses, and correct for inadvertent errors. Recommended budget amendments are detailed in Attachment 3.

In the General Fund, a transfer to the Public Buildings Capital Fund is recommended to fund a fence replacement for the Gianera property as well as improvements to the Berman building, including an electrical panel upgrade and the installation of a security gate at the lower parking level. A transfer from the General Fund’s Advanced Planning Fee Reserve to the Prefunded Plan Review Fund is recommended to cover eligible contractual services costs related to the formation of a Community Facilities District for the Patrick Henry Drive Specific Plan Area. In addition, a reduction to estimated General Fund revenues and the Parks and Recreation budget is recommended to reflect the impact of waiving fees for the Wilcox High School baseball fundraising tournaments as approved by the City Council on January 31, 2023 (RTC 23-89).

Attachment 3 also includes amendments recognizing and appropriating revenue for a new capital improvement program project in the Streets and Highways Capital Fund as well as adding funding in the Electric Utility Capital Fund to cover unanticipated costs associated with two major engine overhauls. A transfer from the Water Utility Fund to the Vehicle Replacement Fund is recommended to cover the higher than budgeted costs for planned vehicle replacements.

COORDINATION
This report has been coordinated with 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 [email protected] mailto:[email protected] or at the public information desk at any City of Santa Clara public library.

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RECOMMENDATION
Note and file the Monthly Financial Status and Investment Reports for December 2022 as presented and Approve the Related Budget Amendments (five affirmative Council votes required to appropriate additional revenue or for the use of unused balances).

Reviewed by: Kenn Lee, Director of Finance
Approved by: Office of the City Manager

ATTACHMENTS

1. Monthly Financial Status Report December 2022

2. Monthly Investment Report December 2022

3. FY 2022/23 Budget Amendments
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_____________________________________________________________________

MONTHLY FINANCIAL STATUS REPORT

December 2022

City of
Santa Clara
The Center of What 's Possible

1 City of Santa Clara
Financial Status Report as of December 31, 2022

This report summarizes the City’s financial performance for the month ended December 31, 2022.

Financial analysis for the report is provided for the General Fund, select Special Revenue Funds, Enterprise Operating Funds, and Capital Improvement Funds. Financial information included in this report is unaudited.

General Fund
The General Fund is the major operating fund for the City and includes multiple programs, services, and activities for the residents and businesses of the City. The adopted budget for operating revenues and expenditures for fiscal year 2022/23 was $272.4 million. The amended budget for revenues and expenditures was adjusted to $284.0 million to reflect various budget amendments approved by the City Council through December 2022.

General Fund revenues are currently tracking to end the year above the budgeted level. Through December, departmental expenditures are tracking below budget and this trend is expected to continue as departments continue to control expenditures through various cost control measures.

Economic indicators are mixed, and there is a tremendous amount of uncertainty. Given this level of uncertainty, the December 2022 UCLA Forecast presented a two-scenario economic forecast. “One scenario is no recession, where economic growth is “just right”, inflation ebbs, labor market constraints loosen, and the Federal Reserve takes a less aggressive approach to monetary policy tightening. The second scenario is a recession, where inflation would have continued to run hot if not for aggressive Federal Reserve action. In this scenario, the Federal Reserve forces a recession and accepts an economic contraction and higher unemployment to combat inflation. Importantly, the difference in the two scenarios is the exogenous decision of the Federal Reserve is setting monetary policy.”1 The U.S.

Chamber of Commerce projects a mild but short recession in 2023. The consensus of its Chief Economists Committee is that “the U.S. will experience a mild but short recession in the middle of 2023 caused by consumer and business spending falling because of rising interest rates.2 The Conference Board also forecasts a recession starting in early 2023, with projections for three quarters of negative GDP growth starting in the first quarter of 2023. Their projections call for a relatively brief and mild downturn with the expectation that growth should rebound in 2024 as inflation ebbs further and the Fed begins to loosen monetary policy.3 The Conference Board Consumer Confidence Index decreased in January after gaining ground in December. “Consumers’ assessment of present economic and labor market conditions improved at the start of 2023. However, the Expectations Index retreated in January reflecting their concerns about the economy over the next six months. Consumers were less upbeat about the short-term outlook for jobs. They also expect business conditions to worsen in the near term.”4

1 UCLA Anderson Forecast, December 2022, Goldilocks or Bust: Will the Economy by “Just Right” or Will We have a Recession?
2 What to Expect for the Economy in 2023 | U.S. Chamber of Commerce (uschamber.com) 3 Economic Forecast for the US Economy (conference-board.org) 4 https://www.conference-board.org/topics/consumer-confidence

2 City of Santa Clara
Financial Status Report as of December 31, 2022

On a national level, the unemployment rate remained fairly flat in January 2023 at 3.4%, compared to

3.5% in December 2022. This rate was well below the record setting high of 14.7% in April 2020, and slightly below the pre-pandemic unemployment rate of 3.5%. In January, the number of unemployed persons stayed at 5.7 million, which is consistent with the pre-pandemic level of 5.7 million.5

In the fourth quarter 2022 advance estimate, the Gross Domestic Product (GDP) increased by 2.9%, following a GDP increase of 3.2% in the third quarter. The GDP decelerated in the fourth quarter compared to the third due to downturns in exports, State and local government spending as well as a slowing in consumer spending.6

5 https://www.bls.gov/news.release/pdf/empsit.pdf
6 https://www.bea.gov/sites/default/files/2023-01/tech4q22_adv.pdf Chart 1. Unemployment rate, seasonally adjusted ,
January 2021 - January 2023
Percent

7.0 6.5

6.0 5.5

5.0 4.5

4.0 3.5
Chart 2. Nonfarm payroll employment over-the-month change, seasonally adjusted, January 2021 - January 2023
Thousands
1,000
900
800
700
600
500
400
300
200
100
0 I- - 1---11-------- -1
Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Real GDP: Percent change from preceding quarter
40 30
20 10
0 -10
-20
-30
-40
Ql Q2 QJ Q4 Ql
2019
U.S. Bureau of Economic Analysi,s
Q2 QJ
2020
Q4 Ql Ql QJ Q4 Ql
2021
Q2 QJ
2022
Q4
Seasonally adju st ed annual rat es

3 City of Santa Clara
Financial Status Report as of December 31, 2022

The December 2022 UCLA Anderson Forecast projects strong GDP performance in the 4th quarter 2022 driven by consumption and business investment. After that point, the Forecast has differing projections based on the recession or no-recession scenarios as illustrated below. The real GDP gap between these scenarios totals $490 billion by the end of 2023 and $330 billion by 2024.

The December 2022 UCLA Forecast for California includes soft-landing and recession scenarios given the current economic uncertainly. In both scenarios, a milder impact is expected for the California economy. In the soft-landing scenario, California continues to grow at a faster rate than the US, led by more construction, ample state government rainy day funds, and increased demand for defense goods as well as labor saving equipment and software. In the recession scenario, the California economy declines but by less than the US.7
The State and local employment levels remain strong. After the State’s largest increase in the unemployment rate in April 2020, the California unemployment rate remained flat at 4.1% between November and December 2022. This rate is lower compared to the 5.8% rate in December 2021.

California has now regained all of the 2.76 million nonfarm jobs lost due to COVID-19 in March and April 2020 and has outpaced the country’s job growth as a whole by 0.6%.8 The unadjusted unemployment rate in the San José-Sunnyvale-Santa Clara Metropolitan Statistical Area (MSA) slightly decreased to 2.1% in December 2022, from a revised 2.4% in November 2022, and is below the December 2021 level of 2.9% and the February 2020 pre-pandemic level of 2.6%.

Between December 2021 and December 2022, employment in this region increased by 47,100 jobs, or

7 UCLA Anderson Forecast, A Tale of Two Scenarios: The California Report, December 2022 8 https://edd.ca.gov/en/about_edd/news_releases_and_announcements/unemployment-december-2022/ Real GDP Levels, US$ Trillions, Chained 2012 Prices, Seasonally Adjusted Annual Rates US$ Trillions

21.0 20 .9

20.8 20.7

20.6 20.5

20.4 20.3

20.2 20 .1
20 .0

19.!12
F o r eca s t ➔

19.9<1

20.90 0 .0 =----------- +------------ -'-----------Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023 2024
Source_- UCLA Anderson Forecast and US. Bureau of Economic Analysis No-Recession
Recess ion

4 City of Santa Clara
Financial Status Report as of December 31, 2022

4.1%.9 The largest increases were in professional and business services (up 12,200 jobs), private educational and health services (up 9,800 jobs), and leisure and hospitality (up by 8,600 jobs).

Staff will continue to closely monitor the economic environment and the City’s financial performance and provide updates through the Monthly Financial Reports.

9 https://labormarketinfo.edd.ca.gov/file/lfmonth/sjos$pds.pdf

5 City of Santa Clara
Financial Status Report as of December 31, 2022

General Fund Revenues
As of December 31, 2022, $97.2 million or 40.7% of the General Fund estimated revenue (excluding transfers) was received. Transfers and use of reserves of $45.0 million have occurred as budgeted.

Revenue collections are tracking to end the year above budget and are higher when compared to collections last fiscal year.

Adopted Budget
Amended
Budget
Actual Through
12/31/2022
Percentage
Received
Actual Through
12/31/2021
$
Change From
Prior Year
Percentage
Change
TAXES
Sales Tax 60,173,000$ 60,173,000$ 21,401,195$ 35.57% 18,592,585$ 2,808,610$ 15.11% Property Tax 75,261,000 75,261,000 24,964,596 33.17% 19,061,389 5,903,207 30.97% Transient Occupancy Tax 12,600,000 12,600,000 6,270,863 49.77% 2,497,314 3,773,549 151.10% Other Taxes 6,260,000 6,260,000 1,907,136 30.47% 1,714,502 192,634 11.24% Total Taxes 154,294,000 154,294,000 54,543,790 35.35% 41,865,790 12,678,000 30.28%

LICENSES & PERMITS
Business Licenses 900,000 900,000 430,508 47.83% 414,741 15,767 3.80% Fire Operation Permits 2,100,000 2,358,000 957,531 40.61% 930,380 27,151 2.92% Miscellaneous Permits 72,000 72,000 33,136 46.02% 36,200 (3,064) -8.47% Total Licenses & Permits 3,072,000 3,330,000 1,421,175 42.68% 1,381,321 39,854 2.89% FINES & PENALTIES 1,465,000 1,615,000 122,618 7.59% 166,995 (44,377) -26.57% INTERGOVERNMENTAL 310,000 310,000 253,516 81.78% 157,731 95,785 60.73% CHARGES FOR SERVICES 31,258,098 31,258,098 15,834,348 50.66% 14,226,218 1,608,130 11.30% SILICON VALLEY POWER TRANSFER 26,170,000 26,170,000 14,321,943 54.73% 12,886,688 1,435,255 11.14%

USE OF MONEY & PROPERTY
Interest 2,532,000 2,532,000 521,055 20.58% 567,271 (46,216) -8.15% Rent 10,584,266 10,584,266 5,216,896 49.29% 4,811,471 405,425 8.43% Total Use of Money & Property 13,116,266 13,116,266 5,737,951 43.75% 5,378,742 359,209 6.68% MISCELLANEOUS REVENUES 150,000 189,099 1,869,738 988.76% 308,331 1,561,407 506.41%

LAND PROCEED - - - N/A - - N/A

OTHER FINANCING SOURCES
Operating Transfer In - Storm Drain 1,454,000 1,454,000 1,454,000 100.00% 1,454,000 - 0.00% Operating Transfer In - Reserves 25,812,244 36,719,079 36,719,079 100.00% 32,742,785 3,976,294 12.14% Operating Transfer In - Fund Balances(2) 4,484,726 4,484,726 4,484,726 100.00% 4,817,658 (332,933) -6.91% Operating Transfer In - Miscellaneous 2,127,374 2,370,374 2,370,374 100.00% 5,427,399 (3,057,025) -56.33% Total Other Financing Sources 33,878,344 45,028,179 45,028,179 100.00% 44,441,842 586,336 1.32%

STADIUM OPERATION
Charges for Services 7,889,147 7,889,147 2,447,480 31.02% 1,616,734 830,746 51.38% Rent and Licensing 752,500 752,500 629,787 83.69% 39,691 590,096 1486.72% Total Stadium Operation 8,641,647 8,641,647 3,077,267 35.61% 1,656,425 1,420,842 85.78% TOTAL GENERAL FUND 272,355,355$ 283,952,289$ 142,210,525$ 50.08% 122,470,084$ 19,740,441$ 16.12% (1) The Operating Transfer In - Fund Balances includes the carryover encumbrances of open purchase orders as of June 30, 2022 and mid year budget amendment from reserves.

Function

CITY OF SANTA CLARA

GENERAL FUND

REVENUES OVERVIEW AND COMPARISON BY TYPE
FISCAL YEAR 2022/23 PY REVENUE COMPARISON

6 City of Santa Clara
Financial Status Report as of December 31, 2022

General Fund Revenues
Sales Tax: The City of Santa Clara sales tax rate is 9.0%, of which the City receives 1.0%. As of December 31, 2022, approximately $21.4 million has been collected. This reflects an increase of $2.8 million when compared to collections through the same period last fiscal year. After a decline of 8.6% percent in the second quarter of calendar year 2022, sales tax receipts increased 15.7% in the third quarter when compared to the same quarter last year. The third quarter 2022 experienced growth in all sectors as follows: Transportation (up 31.2%), Food Products (up 20.7%), Construction (up 17.3%), General Retail (up 10.0%), and Business to Business (up 3.5%). Growth of 3% is needed in the remaining three quarters of Fiscal Year 2022/23 to meet the budgeted estimate of $59.4 million.

Internet sales represents a sizeable amount of the City’s sales tax revenue. The County pool, which includes internet sales, accounts for approximately 20% of the sales tax the City receives.

Property Tax: Through December, 33.2% of the property tax budgeted estimate has been received.

The majority of property tax revenue is collected in February and April each year. Based on information from the County of Santa Clara, property tax receipts are projected to end the year above the Adopted Budget estimate of $75.3 million.

Transient Occupancy Tax (TOT): TOT is calculated as a percentage of City hotel/motel room charges. The City’s TOT rate is 11.5%. Through December 31, 2022, approximately $6.3 million has been received, which is significantly higher than receipts through the same period last fiscal year of $2.5 million. As businesses continue to recover from the COVID-19 impacts, it is anticipated that TOT will increase compared to last fiscal year. Based on current collection trends, TOT receipts are expected to exceed the budgeted estimate of $12.6 million.

Other Taxes: Includes franchise tax and documentary transfer tax. The City has collected $1.9 million through December, which higher than prior year collection levels. Receipts through December reflect higher collections in the franchise tax category that is partially offset by lower receipts in the documentary transfer tax category. Based on current collection trends, Other Taxes collections are projected to exceed the budgeted estimate of $6.3 million.

Licenses & Permits: Includes business licenses, fire operation permits, and miscellaneous permits and fees. Effective FY 2021/22, building, electric, plumbing, and mechanical permits are budgeted in the Building Development Services Fund, which is reflected in the Special Revenue section of this report. Licenses and permits revenue collections are tracking below par with receipts totaling $1.4 million, or 42.7% of the budget of $3.3 million, through December. This collection level is slightly above the prior fiscal year level.

Fines & Penalties: Includes vehicle, parking, court fines, and miscellaneous penalty fines. The revenue of approximately $0.1 million collected through December is tracking to end the year well below the budgeted estimate of $1.6 million largely due to the waiving of late fees implemented in response to COVID-19.

7 City of Santa Clara
Financial Status Report as of December 31, 2022

Intergovernmental: Includes motor vehicle fees, state homeowner tax relief, state mandated reimbursement and redistribution of land sale proceeds and ground leases from the Successor Agency.

Through December 31, 2022, $0.3 million has been received, which is higher than the prior year collection level.

Charges for Services: Includes various plan check and zoning-related fees, engineering fees, administrative fees, and community service revenue from various recreational activities. Through December 31, 2022, collections are tracking within the budgeted estimate at $15.8 million, or 50.7% of the budget. This reflects an 11% increase compared to last year’s collections through the same period of $14.2 million. This increase is a result of higher collections for planning and zoning fees, technology fee, engineering fees, and Fire EMS fees.

Silicon Valley Power Transfer: In accordance with the City’s charter, Silicon Valley Power pays 5.0% of gross revenues to the General Fund. As of December 31, 2022, $14.3 million has been received.

Transfers throughout the year are based on the budgeted estimate and will be trued up at the end of the fiscal year based on actual performance.

Use of Money & Property: Includes realized investment income and rental income. Interest income and rent revenue collections totaled $5.7 million, or 43.8% of the budget. These collections are higher than collections through last fiscal year of $5.4 million. Collections are expected to meet or exceed the budgeted estimate of $13.1 million.

Miscellaneous Revenues: Includes developer fees, donations, damage recovery, sale of surplus, and one-time miscellaneous revenues. Through December 31, 2022, collections of $1.9 million are higher than collections through the same period last fiscal year of $0.3 million. This increase is primarily attributable to the settlement between the City, the Santa Clara Stadium Authority, and the Forty-Niners SC Stadium Company LLC and Forty Niners Stadium Management Company LLC (collectively, the Forty-Niners).

Stadium Operation: As of December 31, 2022, charges for services collected through the Stadium totaled $3.1 million, which is below par for this time of year. This is still significantly higher than collections through the same period last year resulting from the reopening of Stadium for events.

8 City of Santa Clara
Financial Status Report as of December 31, 2022

General Fund Expenditures
As of December 31, 2022, $136.1 million or 47.9% of the General Fund operating budget had been expended. This is significantly lower than last fiscal year due to lower budgeted transfers to other funds; last year i ncluded a one-time transfer of the Bu ilding Inspection Reserve to the new Bui lding Development Services Fund as well as h igher transfers to Capital Funds. Overall, expenditures in the General Fund are within budgeted levels through December. Departmental expenditures totaled $119.4 million, or 45% of the budget, which is below the par level of 50% of the budget . Several cost-control measures that were implemented in FY 2019/ 20 remain in place to generate expendi ture savings.

These measures include a hiring freeze and controls around o vertime, as-needed staff, mark eting, travel, technology and vehicle purchases. With these measures, expenditures are expected to end the year below budget.

Adopted Budget
Amended
Budget
Actual Through
12/31/2022
Percentage
Use d
Actual Through
12/31/2021
$
Change From
Prior Year
Percentage
Change

GENERAL GOVERNMENT
Non-Departmental 7,514,334$ 9,689,394$ 2,682,366$ 27.68% 2,421,655$ 260,711$ 10.77% City Council 861,105 862,396 313,572 36.36% 407,898 (94,326) -23.12% City Clerk 2,076,112 2,093,661 855,306 40.85% 703,916 151,390 21.51% City Manager 6,085,321 6,292,428 2,140,300 34.01% 2,405,646 (265,346) -11.03% City Attorney 3,202,735 3,690,974 1,536,461 41.63% 1,144,623 391,838 34.23% Human Resources 4,508,710 4,828,451 1,763,387 36.52% 1,750,963 12,424 0.71% Finance 19,045,131 20,272,300 8,327,242 41.08% 7,670,152 657,090 8.57% Total General Government 43,293,448 47,729,604 17,618,634 36.91% 16,504,853 1,113,781 6.75% PUBLIC WORKS 24,021,840 25,092,840 10,800,847 43.04% 10,858,986 (58,140) -0.54% COMMUNITY DEVELOPMENT 5,398,007 5,665,420 2,198,022 38.80% 2,264,899 (66,877) -2.95% PARKS AND RECREATION 21,695,302 22,287,115 10,131,751 45.46% 8,901,614 1,230,137 13.82%

PUBLIC SAFETY
Fire 62,298,852 65,944,826 33,457,347 50.74% 30,530,572 2,926,775 9.59% Police 84,615,023 85,779,549 40,014,699 46.65% 36,552,061 3,462,638 9.47% Total Public Safety 146,913,875 151,724,375 73,472,046 48.42% 67,082,633 6,389,413 9.52% LIBRARY 11,889,451 12,277,870 5,142,282 41.88% 4,181,209 961,073 22.99% DEPARTMENTAL TOTAL 253,211,923 264,777,224 119,363,582 45.08% 109,794,194 9,569,387 8.72%

OTHER FINANCING USES
Operating Transfer Out - Miscellaneous 38,809 38,809 38,809 100.00% 23,250,142 (23,211,333) -99.83% Operating Transfer Out - Debt Services 1,402,275 1,402,275 1,402,275 100.00% 2,501,439 (1,099,164) -43.94% Operating Transfer Out - Maintenance Dtrct 842,700 842,700 842,700 100.00% 771,349 71,351 9.25% Operating Transfer Out - Cemetery 870,000 870,000 870,000 100.00% 850,000 20,000 2.35% Operating Transfer Out - CIP 8,625,501 8,641,613 8,641,613 100.00% 11,773,925 (3,132,312) -26.60% Operating Transfer Out - Reserves - - - N/A 3,309,009 (3,309,009) -100.00% Total Other Financing Uses 11,779,285 11,795,397 11,795,397 100.00% 42,455,864 (30,660,467) -72.22% STADIUM OPERATION 7,364,147 7,379,668 4,969,509 67.34% 4,039,345 930,164 23.03% TOTAL GENERAL FUND 272,355,355$ 283,952,289$ 136,128,487$ 47.94% 156,289,403$ (20,160,916)$ -12.90% Function

CITY OF SANTA CLARA

GENERAL FUND

EXPENDITURES OVERVIEW AND COMPARISON BY FUNCTION
FISCAL YEAR 2022/23 PY EXPENDITURES COMPARISON

9 City of Santa Clara
Financial Status Report as of December 31, 2022

General Fund Expenditures
Below is an explanation of certain budget to actual expenditure variances by department.

Non-Departmental: Includes expenditures that are not attributable to a single department, but a function of the City in general. As of December 31, 2022, expenditures totaled $2.7 million, or 27.7% of the budget. These expenditures are below the par level of 50% but are higher than the prior year levels, primarily as a result of higher expenditures in the contractual services as well as salaries and benefits categories.

City Attorney: Through December, actual expenditures totaled approximately $1.5 million, which is below expected levels at 41.6% of the budget. Spending is 34% above the total expenditures through the same time last fiscal year due to higher contractual legal services costs and salaries and benefits.

City Clerk: Through December, actual expenditures were tracking below budget at $0.9 million or approximately 40.8% of the budget. This reflects a 25% increase in spending compared to prior year spend levels. This is a result of higher salaries and benefits costs in addition to one-time special election and Granicus costs that are paid every other year.

City Council: Through December, expenditures were at 36.4% of budget, which is below par.

Compared to the same period through last fiscal year, this reflects a spending decrease of approximately 23%, which is primarily the result of savings due to vacancies within the department.

City Manager: Expenditures through December totaled $2.1 million, or 34% of the budget, which is below par for this time of the year. Expenditures are also 11% lower compared with the spending level through the same period last fiscal year. This decrease reflects lower spending in contractual services and salaries and benefits; however, this is offset by higher spending in the as-needed category.

Community Development Department: This department consists of three divisions: Planning, Building, and Housing and Community Services. The Building division of this department is reflected in the Building Development Services Fund, which falls under the special revenue section of this report.

Through December, departmental expenditures for the Planning and Housing and Community Services divisions totaled $2.2 million, or 38.8% of budget, which is below the par level of 50%. Expenditures were slightly below the spending through the same period last fiscal year due to lower non-personnel expenditures.

Finance Department: Through December, the Department’s expenditures totaled $8.3 million, or

41.1% of the budget, which is below par. This expenditure level was approximately 8.6% higher than expenditure levels through the same period last year. This is a result of higher expenditures primarily in the salaries and benefits categories, which is partially offset by lower spending in the contractual services category.

Fire Department: Through December 31, 2022, expenditures totaled $33.5 million, or 50.7% of the budget, which is at par. These expenditures reflect a 10% increase from expenditures through the same period last fiscal year. This increase in spending reflects higher costs in the salaries and benefits,

10 City of Santa Clara
Financial Status Report as of December 31, 2022

as-needed, contractual services and capital outlay categories. Overtime expenditures are tracking at

87.7% of the budget, which is well above par for this time of year. While this overtime figure is high, it is important to note that overtime is used to backfill for vacant positions and the vacancy savings offset a portion of the overtime costs. In addition, overtime costs are higher due to mutual aid efforts that will be reimbursed. It is currently anticipated that the City will receive approximately $0.5 million in mutual aid funds, and a budget amendment will be brought forward in a future Monthly Financial Report to recognize and appropriate those funds once received.

Library Department: Through December, actual expenditures totaled $5.1 million, or 42% of the budget, which is below par, but nearly 23% higher than expenditure levels last fiscal year. This is a result of the resuming of full operations which began earlier this calendar year.

Parks and Recreation Department: Through December, actual expenditures totaled approximately $10.1 million, or 45.5% of the budget, which is below par, but above the prior year actuals of $8.9 million. This is due to the department resuming activities that were previously impacted by COVID-19 restrictions.

Police Department: Expenditures through December are tracking at expected levels at $40.0 million, or 46.7% of the budget. This is approximately 9.5% higher when compared to spending levels through the same period last fiscal year, primarily reflecting higher charges in the salaries and benefits, as- needed, and contractual services categories.

Stadium Operation: Stadium operating expenditures are incurred first and billed on a reimbursement basis creating a timing difference in revenue recognition. Stadium expenditures totaled approximately $5.0 million through December and are tracking above budgeted levels at 67.3%. This is 23% higher than expenditures through the same period last year, as a direct result of the reopening of the Stadium for events. While spending is above par, it is anticipated that spending will be slowing down for the remainder of the fiscal year.

11 City of Santa Clara
Financial Status Report as of December 31, 2022

Special Revenue Funds
The table below is a summary of revenues and expenditures of select Special Revenue Funds as of December 31, 2022. The amended budget reflects carryover encumbrances from fiscal year 2021/22 and budget amendments approved by the City Council through December 2022. Effective July 1, 2021, all Building Division revenues and expenditures are budgeted and accounted for in the Building Development Services Fund, which is included in the table below.

Revenues totaled $12.9 million, or 47.7% of budget, while expenditures totaled $12.5 million, or 35.7% of budget through the end of December. Overall, revenues and expenditures are tracking below par of 50%. The negative expenditure in the City Affordable Housing Fund reflects an accounting change in the special disbursements category. Originally, the full loan amount was charged; however, the charges now only reflect the progress through the construction period.

Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 12/31/2022 received 12/31/2021 Prior Year Change Housing Authority Fund 280,000$ 252,495$ 41,515$ 16.44% 220,990$ (179,475)$ -81.21% City Affordable Housing Fund 682,000 7,162,700 207,347 2.89% 1,027,194 (819,847) -79.81% Housing Successor Fund 350,000 1,306,326 447,082 34.22% 374,483 72,599 19.39% Housing and Urban Development 1,810,000 3,924,461 647,100 16.49% 1,331,527 (684,427) -51.40% Building Development Services Fee
Fund
14,112,000 14,464,458 11,578,359 80.05% 7,817,065 3,761,294 48.12% TOTAL 17,234,000$ 27,110,440$ 12,921,403$ 47.66% 10,771,259$ 2,150,144$ 19.96% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 12/31/2022 use d 12/31/2021 Prior Year Change Housing Authority Fund 380,363$ 559,503$ 109,233$ 19.52% 61,853$ 47,380$ 76.60% City Affordable Housing Fund 1,685,731 5,499,145 (363,050) -6.60% 485,686 (848,736) -174.75% Housing Successor Fund 1,242,599 6,049,148 5,320,890 87.96% 391,199 4,929,691 1260.15% Housing and Urban Development 2,355,815 5,199,984 987,424 18.99% 1,440,356 (452,932) -31.45% Building Development Services Fee
Fund
13,360,809 17,682,237 6,444,779 36.45% 5,011,011 1,433,768 28.61% TOTAL 19,025,317$ 34,990,017$ 12,499,276$ 35.72% 7,390,105$ 5,109,171$ 69.14%

PRIOR YEAR EXPENDITURE COMPARISON

CITY OF SANTA CLARA

SPECIAL REVENUE FUNDS

REVENUE AND EXPENDITURE - OVERVIEW AND COMPARISON BY FUND REVENUES - FISCAL YEAR 2022/23 PRIOR YEAR REVENUE COMPARISON EXPENDITURES - FISCAL YEAR 2022/23

12 City of Santa Clara
Financial Status Report as of December 31, 2022

Governmental Capital Improvement Funds
The table below lists the revenue for selected capital improvement funds. The amended budget reflects current year appropriations, prior year carryover, and budget amendments approved through December 2022. As of December 31, 2022, the capital fund revenue totaled $31.5 million. In the Parks and Recreation Capital Fund, $25.6 million has been collected, which includes $25.2 million in Mitigation Fee Act revenue.

The table below lists the total amended budgeted amounts for expenditures in the Capital Improvement Funds. Similar to the revenue table, the amended expenditure budgets consist of current year appropriations, prior year carryover encumbrance balances in Governmental Capital Improvement Funds, and budget amendments approved through December 2022. As of December 31, 2022, capital fund expenditures totaled $18.4 million, or 13.1% of the amended budget.

As part of the adoption of the FY 2022/23 and FY 2023/24 capital improvement program budget, some capital funds were carried over for projects that were not anticipated to be completed by June 30, 2022.

Necessary additional adjustments to the capital carryover amounts were included as part of the Budgetary Year-End Report for FY 2021/22 approved on December 6, 2022. These adjustments are reflected in the table below.

The carryover of prior year budget amounts is necessary when services or projects are started but not completed at the end of the fiscal year. This is especially true for the Capital Improvement Program REVENUES - FISCAL YEAR 2022/23
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 12/31/2022 Use d Parks & Recreation 1,075,000$ 3,301,620$ 4,376,620$ 25,611,393$ 585.19% Streets & Highways 4,594,003 15,921,680 20,515,683 1,873,323 9.13% Storm Drain 1,454,000 - 1,454,000 725,879 49.92% Public Buildings - 100,000 100,000 - 0.00% Related Santa Clara Developer 2,908,317 1,118,024 4,026,341 643,021 15.97% Patrick Henry Drive
Infrastructure Improvement
Fund
69,205 - 69,205 - 0.00% Tasman East Specific
Infrastructure Improvement
Fund
2,413,605 - 2,413,605 2,419,501 100.24% TOTAL 12,514,130$ 20,441,324$ 32,955,454$ 31,467,927$ 95.49%

CITY OF SANTA CLARA

REVENUE - OVERVIEW AND COMPARISON BY SELECTED FUND

GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS

13 City of Santa Clara
Financial Status Report as of December 31, 2022

(CIP) that typically spans several years. The table below displays the expenditure budget for the General Government capital funds excluding transfers.

EXPENDITURES - FISCAL YEAR 2022/23
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 12/31/2022 Use d Parks & Recreation 8,316,782$ 20,913,971$ 29,230,753$ 1,920,233$ 6.57% Streets & Highways 24,525,308 53,175,624 77,700,932 9,514,320 12.24% Storm Drain 5,181,209 2,745,531 7,926,740 2,611,141 32.94% Fire 1,506,478 395,077 1,901,555 196,651 10.34% Library 413,111 35,747 448,858 26,535 5.91% Public Buildings 2,859,686 2,439,492 5,299,178 431,884 8.15% General Gov't - Other 3,687,314 6,158,460 9,845,774 1,109,274 11.27% City Affordable Housing Capital - 1,600,000 1,600,000 - Related Santa Clara Developer 3,506,699 - 3,506,699 1,171,581 33.41% Patrick Henry Drive
Infrastructure Improvement
Fund
69,205 - 69,205 30,056 43.43% Tasman East Specific
Infrastructure Improvement
Fund
3,221,395 - 3,221,395 1,434,638 44.53% TOTAL 53,287,187$ 87,463,902$ 140,751,089$ 18,446,313$ 13.11%

EXPENDITURE - OVERVIEW AND COMPARISON BY FUND

CITY OF SANTA CLARA

GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS

14 City of Santa Clara
Financial Status Report as of December 31, 2022

Enterprise Funds
The table below is a summary of revenues and expenses for the Enterprise Operating Funds as of December 31, 2022. Overall, revenues and expenditures are tracking below budgeted levels.

Revenues and expenditures are tracking above last fiscal year levels. Expenditures are tracking higher in the Water Recycling Fund as a result of higher spending in the resources category.

Revenues in the electric (which also includes the Electric Debt Service Fund), water, and sewer utility (which also includes the Sewer Debt Service Fund) and water recycling funds are primarily from customer service charges. The activity levels for these customer service charges also impact the resource and production costs on the expenditure side for these funds. The lower the revenue from customer service charges, the lower the expenditures in the resource and production category.

Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 12/31/2022 received 12/31/2021 Prior Year Change Electric Utility Fund 615,818,445$ 629,425,236$ 277,321,538$ 44.06% 245,381,152$ 31,940,386$ 13.02% Water Utility Fund 48,358,520 48,358,520 24,538,107 50.74% 23,625,102 913,005 3.86% Sewer Utility Fund 40,459,345 40,459,345 19,318,094 47.75% 18,569,928 748,166 4.03% Cemetery Fund 600,000 600,000 295,966 49.33% 331,620 (35,654) -10.75% Solid Waste Utility Fund 37,245,092 37,245,092 16,160,274 43.39% 15,139,208 1,021,066 6.74% Water Recycling Fund 5,708,446 5,708,446 3,322,223 58.20% 3,269,040 53,183 1.63% TOTAL REVENUE 748,189,848$ 761,796,639$ 340,956,202$ 44.76% 306,316,050$ 34,640,152$ 11.31% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 12/31/2022 Use d 12/31/2021 Prior Year Change Electric Utility Fund 603,681,580$ 606,426,798$ 259,330,458$ 42.76% 244,227,199$ 15,103,259$ 6.18% Water Utility Fund 46,797,065 48,768,438 22,803,607 46.76% 21,105,473 1,698,134 8.05% Sewer Utility Fund 30,825,023 32,220,466 15,015,739 46.60% 14,343,157 672,582 4.69% Cemetery Fund 1,539,796 1,545,944 727,474 47.06% 714,955 12,519 1.75% Solid Waste Utility Fund 36,626,118 40,169,992 14,293,681 35.58% 14,138,060 155,621 1.10% Water Recycling Fund 5,729,413 5,739,135 3,601,549 62.75% 2,982,662 618,887 20.75% TOTAL - Operating
Appropriations
725,198,995$ 734,870,773$ 315,772,508$ 42.97% 297,511,506$ 18,261,002$ 6.14% PRIOR YEAR EXPENSE COMPARISONEXPENSES - FISCAL YEAR 2022/23

CITY OF SANTA CLARA

ENTERPRISE OPERATING FUNDS

REVENUES AND EXPENSES - OVERVIEW AND COMPARISON BY FUND REVENUES - FISCAL YEAR 2022/23 PRIOR YEAR REVENUE COMPARISON

15 City of Santa Clara
Financial Status Report as of December 31, 2022

A summary of revenue and expenses in the Enterprise Capital Improvement Funds are detailed in the tables below. Actual revenue through December 31, 2022 totaled $21.8 million, consisting primarily of developer contributions in the Electric Utility Fund and transfers from operating in the Sewer Utility Fund. Enterprise capital fund expenses totaled $24.0 million, or 8.8% of the amended budget. Similar to the general government capital funds, capital funds were carried over into next fiscal year as part of the FY 2022/23 and FY 2023/24 budget adoption process for those projects that have not yet been completed. Adjustments to the capital carryover amounts based on actual year-end expenditures were approved as part of the Budgetary Year-End Report for FY 2021/22 on December 6, 2022 and are reflected below.

(1) Street Lighting fund is part of Electric Capital Improvement Funds Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 12/31/2022 Use d Electric Utility Fund 37,850,877$ 14,554,461$ 52,405,338$ 13,048,564$ 24.90% Street Lighting (1) - - - 35,493 N/A Sewer Utility Fund - - - 8,675,392 N/A Solid Waste Utility Fund 250,000 65,000 315,000 4,333 1.38%

TOTAL - CIP
Appropriations
38,100,877$ 14,619,461$ 52,720,338$ 21,763,782$ 41.28% Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 12/31/2022 Use d Electric Utility Fund 130,291,189$ 80,191,903$ 210,483,092$ 18,568,951$ 8.82% Street Lighting (1) 239,338 5,637,312 5,876,650 58,857 1.00% Water Utility Fund 8,012,986 - 8,012,986 1,228,137 15.33% Sewer Utility Fund 22,399,877 23,316,657 45,716,534 3,821,650 8.36% Cemetery Fund 53,642 233,980 287,622 17,092 5.94% Solid Waste Utility Fund 891,521 4,488 896,009 284,758 31.78% Water Recycling Fund 29,774 - 29,774 - - Convention Center
Capital Fund
- 2,691,883 2,691,883 - -

TOTAL - CIP
Appropriations
161,918,327$ 112,076,223$ 273,994,550$ 23,979,445$ 8.75% EXPENSES - FISCAL YEAR 2022/23
REVENUES - FISCAL YEAR 2022/23

REVENUE - OVERVIEW AND COMPARISON BY SELECTED FUND

ENTERPRISE CAPITAL IMPROVEMENT FUNDS

CITY OF SANTA CLARA

ENTERPRISE CAPITAL IMPROVEMENT FUNDS

EXPENDITURE - OVERVIEW AND COMPARISON BY FUND

16 City of Santa Clara
Financial Status Report as of December 31, 2022

Fund Reserves
By policy, City Council established the City’s General Contingency Reserve, under which reserves for Budget Stabilization and Capital Projects were established. • Budget Stabilization Reserve is set aside for weathering economic downturns, emergency financial crisis, or disaster situations. The reserve target is equal to the expenditures of the City’s General Fund operations for three months (90-day or 25% General Fund Adopted Operating Budget). In FY 2022/23, the City Council approved an exception to the policy to allow the Reserve to drop below the 25% level.
• Capital Projects Reserve earmarks funds for the Capital Improvement Program.

Other General Reserves and Enterprise Fund Reserves included in this report are highlighted as follows:
• Technology Fee Reserve is set aside to update and/or replace the City’s aging technology and to ensure internal controls are in compliance with current business standard and legal requirements.
• Land Sale Reserve is net proceeds from the sale of City-owned land, with interest earned on these funds available to be appropriated for General Fund operating expenditures. This reserve is available for appropriation by City Council action.
• The Electric Utility Rate Stabilization Reserve and Operations and Maintenance Reserve ensure sufficient operating cash is available to cover day-to-day expenses, address unforeseen cost increases or revenue shortfalls, and ensure debt service coverage. • The Replacement and Improvement Reserve in the Water and Sewer Utility Funds is for future capital improvement.

The table below summarizes select reserve balances.

17 City of Santa Clara
Financial Status Report as of December 31, 2022

DETAIL OF SELECTED FUND RESERVE BALANCES:

GENERAL

FUND ELECTRIC WATER
Budget Stabilization Reserve 40,843,152$
Capital Projects Reserve 11,959,656
Land Sale Reserve 12,882,822
Technology Fee Reserve 1,925,791
Electric Rate Stabilization Fund Reserve 48,776,613$
Electric Operations and Maintenance Reserve 118,765,556 Replacement & Improvement 303,090$
TOTALS 67,611,421$ 167,542,169$ 303,090$

CITY OF SANTA CLARA

RESERVE BALANCES
December 31, 2022

18 City of Santa Clara
Financial Status Report as of December 31, 2022

Long-Term Interfund Advances
The funds below have made advances/loans which are not expected to be repaid within the next year.

The balances reflected in the table are through December 2022. The loan from the General Fund to Parks and Recreation Facilities reflects proceeds from the Land Sale Reserve for the purchase of property at the Reed and Grant Sports Park. This loan is anticipated to be repaid by 25% of future Mitigation Fee Act revenue until the loan is paid in full.

DETAIL OF LONG TERM INTERFUND ADVANCE BALANCES:

Fund Receiving Advance/Loan
Fund Making
Advance/Loan Type
Amount of
Advance/
Commitment
Parks and Recreation Facilities General Fund Loan 5,539,540 TOTALS 5,539,540$
Donations to the City of Santa Clara
Donations received by department during the month of December 2022 and for fiscal year 2022/23 are shown in the table below.

Department Dec-22
Fis cal Year
2022/23
Year To Date Designated Use
City Manager's Office -$ 50$ Help Your Neighbor Parks & Recreation 1,000 1,249 Case Management Parks & Recreation - 1,748 Roberta Jones Jr. Theatre Parks & Recreation - 30,600 Wade Brummal TOTALS 1,000$ 33,647$

_____________________________________________________________________

MONTHLY INVESTMENT REPORT

December 2022

City of
Santa Clara
The Center of What 's Possible
City of Santa Clara
Monthly Investment Report

TABLE OF CONTENTS
Page #
1 Summary of Investment Portfolio 1
2 Summary of Investments 5
3 Investment Maturity Distribution Schedule 6
4 Attachment A: Investment Inventory With Market Value 7 1 CITY OF SANTA CLARA

SUMMARY OF INVESTMENT PORTFOLIO

All securities held by the City of Santa Clara as of December 31, 2022 were in compliance with the City's Investment Policy Statement regarding current market strategy and long-term goals and objectives. All securities held are rated A or higher by two nationa lly recognized rating agencies. There is adequate cash flow and maturity of investments to meet the City’s needs for the next six months.

The following table provides the breakdown of the total portfolio among the City, the Sports and Open Space Authority (SOSA), and the Housing Authority (HA) as of December 31, 2022.

On December 31, 2022 the cost value and market value of the City's unrestricted pooled investment portfolio were $870,740,974 and $829,649,827 respectively.

Investment Strategy and Market Update
There are accumulating signs of a slowdown, including the steeply inverted yield curve, a sharp reversal in the housing market, weakening in both the manufacturing and services sectors, declining personal savings, tepid consumer confidence, retreating commodity prices and a now falling U.S. dollar. On the positive side, employment remains strong, household income is rising, and inflation has begun to moderate. The latter forces are significant and may keep the economy out of a deep recession, but uncertainty is high.

At its December meeting, the Federal Open Market Committee (FOMC) raised the fed funds rate by 50 basis points (bps) to a new target range of 4.25% to 4.50%, which was a downshift following four consecutive 75 bp hikes. The updated summary of economic projections points toward lower growth, higher inflation and a higher unemployment rate in 2023. Chair Jerome Powell commented that the Federal Reserve (Fed) has “more work to do” and that “restoring price stability will likely require maintaining a restrictive policy stance for some time.”

The year-over-year change in the Consumer Price Index (CPI) fell to 6.5% in December, down from 7.1% a month earlier. Overall prices declined for the month, the first such decrease since May 2020. Falling gasoline, fuel oil and car prices were the largest contributors. Shelter costs remained elevated, but they typically lag. After peaking at 9.1% in June, headline CPI has now moderated for six consecutive months.

The benchmark 3-month, 2-year, and 10-year U.S. Treasury yields finished December at 4.34%, 4.43%, and 3.88%, up 5 bps, up 12 bps, and up 27 bps for the month, respectively.

COST VALUE PERCENTAGE
City $866,555,083 99.52%
SOSA 5,322 0.00%
HA 4,180,569 0.48% Unrestricted $870,740,974 100.00%
Restricted Bond Proceeds 2,179,741
Total Investments $872,920,715
2 The City's investment strategy for December 2022 was to invest funds not required to meet current obligations, in securities listed in the prevailing Investment Policy Statement, with maturities not to exceed five years from date of purchase. This strategy ensures safety of the City’s funds, provides liquidity to meet the City’s cash needs, and earns a reasonable portfolio return. PFM Ass et Management LLC began actively managing the City’s securities portfolio on September 1, 2020.

As of December 31, 2022, 43.33% of the City’s portfolio consists of U.S. Treasury Notes, 21.05% consists of Federal Agencies,

19.65% consists of investment grade Corporate Notes, 8.05% cons ists of Local Agency Investment Fund (LAIF), 2.89% consists of California Asset Management Program (CAMP), 2.11% consists of investment grade Supranational Obligations, 0.83% consists of Negotiable Certificates of Deposit, 1.30% consists of investment grade Asset-Back Securities, and 0.47% consists of investment grade Municipal Bonds. In addition, City bond proceeds are invested in separate funds and are not included in the calculation of the City’s portfolio yield.

U.S. Treasury Notes

43.33%
Federal Agency Notes

21.05%
Corporate Notes

19.65%
Municipal Bonds

0.47%
Supranational Obligations

2.11%
Asset‐Backed Securities

1.30%
Negotiable Certificates of Deposit

0.83%
Money Market Fund

0.07%
Local Agency Investment
Fund (LAIF)

8.05%
California Asset Management
Program (CAMP)

2.89% Mutual Fund ‐ Traffic
Mitigation Bond Proceeds

0.25%
3 The City’s securities portfolio is benchmarked against the ICE BAML 1-5 US Treasury Index.

1.70%

1.77%

1.88%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

2.00%
Sep‐20 Dec ‐20 Mar ‐21 Jun ‐21 Sep ‐21 Dec ‐21 Mar ‐22 Jun ‐22 Sep ‐22 Dec ‐22 Securities Portfolio Yield at Cost vs Index 24‐Month Average of Yield at Market December 2022
Securities Portfolio (yield at cost)
City's Benchmark Index (24‐month rolling average market yield) BofA 1‐5 AAA‐A Corp & Gov't Index (24‐month rolling average market yield) T T T
4 The following table summarizes the investment yields other information of the City’s investment portfolio components, along with comparable-maturity market indices. Also shown are the monthly interest income and aggregate year-to-date income.

Current Month
12/31/2022
Investment Yield
Liquidity Portfolio1 2.76%
LAIF average monthly yield 2.17%

Securities Portfolio2 1.70%
ICE BAML 1‐5 US Treasury Index (24‐month rolling average market yield) 1.77% ICE BAML 1‐5 AAA‐A US Corporate & Government Index (24‐month rolling average market yield) 1.88%

City Portfolio (Liquidity + Securities) 1.82%

Investment Total Return*
Securities Portfolio 0.05%
ICE BAML 1‐5 US Treasury Index 0.06%
ICE BAML 1‐5 AAA‐A US Corporate & Government Index 0.09%

Average Maturity of Investments (in years)
Liquidity Portfolio1 0.08
Securities Portfolio2 2.21
City Portfolio (Liquidity + Securities) 1.95
ICE BAML 1‐5 US Treasury Index 2.62
ICE BAML 1‐5 AAA‐A US Corporate & Government Index 2.65

Interest Income Current Month3 $820,394
Interest Income Fiscal Year To Date3 $5,867,994

1. Consists of CAMP, LAIF, Dreyfus Traffic Mitigation Fund, & Principal Sweep Account

2. Core long term portfolio managed by PFM Asset Management

3. Cash basis
* Total rate of return including earnings, distributions, and capital appreciation/depreciation of all portfolio assets

5 CITY OF SANTA CLARA
SUMMARY OF INVESTMENTS DECEMBER 31, 2022
PER
COST % OF INVESTMENT

INVESTMENT TYPE VALUE PORTFOLIO POLICY
U.S. Treasury Notes 378,278,500 43.33% No Limit Federal Agency Notes 183,754,337 21.05% 80%
Corporate Notes 171,517,009 19.65% 25%
Municipal Bonds 4,145,000 0.47% 20%
Supranational Obligations 18,376,628 2.11% 20% Asset-Backed Securities 11,362,441 1.30% 10%
Negotiable Certificates of Deposit 7,270,000 0.83% 30% Money Market Fund 589,290 0.07% 10% Per Fund Local Agency Investment Fund (LAIF) 70,258,380 8.05% $75 M California Asset Management Program (CAMP) 25,189,389 2.89% No Limit Mutual Fund - Traffic Mitigation Bond Proceeds 2,179,741 0.25% 10% Per Fund TOTAL INVESTMENTS 872,920,715$ 100.00%
,.
.. ..
,.
6 INVESTMENT MATURITY DISTRIBUTION
AS OF DECEMBER 31, 2022

UNRESTRICTED POOLED PORTFOLIO

MATURITY
(IN MONTHS) COST VALUE
DEMAND 96,037,060$ (a) 3 11.03%
0 TO 6 38,798,323 5 4.46%
7 TO 12 117,786,492 22 13.53%
13 TO 18 111,764,630 23 12.84%
19 TO 24 86,110,814 13 9.89%
25 TO 30 134,504,774 23 15.45%
31 TO 36 65,192,397 14 7.49%
37 TO 42 88,129,507 19 10.12%
43 TO 48 28,751,552 5 3.30%
49 TO 54 61,446,503 14 7.05%
55 TO 60 42,218,922 6 4.84%
TOTAL 870,740,974$ 147 100.00%
Aver age Mat ur it y of Unr est r ict ed Pool: 1.95 Year s (a) $20 million is earmarked for the City's Electric Utility power-trading.

NUMBER OF

INVESTMENTS DISTRIBUTIO N
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
22%
24%

INVESTMENT MATURITY DISTRIBUTION

UNRESTRICTED POOLED PORTFOLIO
AS OF DECEMBER 31, 2022
Maturity (Months)
Distribution Percentage
..._'l,
-<,_0
'\
City of Santa Clara Monthly Report
12/31/2022
Description Issue Date Coupon Rate Maturity Date CUSIP Par Value S&P Rating Settle Date Cost Value YTM at Cost Market Value Unrealized G/L UNITED STATES TREASURY 6/30/2016 1.375% 6/30/2023 912828S35 20,000, 000.00 AA+ 1/17/2019 20,053,710.95 1.31% 19,685,200.00 -368,510.95 UNITED STATES TREASURY 7/31/2018 2.750% 7/31/2023 912828Y61 10,000, 000.00 AA+ 9/18/2018 9,918,710.94 2.93% 9,891,400.00 -27,310.94 UNITED STATES TREASURY 8/31/2016 1.375% 8/31/2023 9128282D1 5, 000,000.00 AA+ 9/12/2018 4,657,031.25 2.87% 4,888,100.00 231,068.75 UNITED STATES TREASURY 9/30/2016 1.375% 9/30/2023 912828T26 7, 500,000.00 AA+ 11/13/2018 6,947,167.97 3.01% 7,317,225.00 370,057.03 UNITED STATES TREASURY 10/15/2020 0.125% 10/15/2023 91282CAP6 5,260, 000.00 AA+ 3/26/2021 5,248,288.28 0.21% 5,074,479.80 -173,808.48 UNITED STATES TREASURY 10/31/2016 1.625% 10/31/2023 912828T91 5, 000,000.00 AA+ 1/25/2019 4,787,695.31 2.58% 4,876,000.00 88,304.69 UNITED STATES TREASURY 11/30/2018 2.875% 11/30/2023 9128285P1 9,745, 000.00 AA+ 6/23/2021 10,349,875.20 0.32% 9,585,864.15 -764,011.05 UNITED STATES TREASURY 11/30/2016 2.125% 11/30/2023 912828U57 10,000, 000.00 AA+ 2/28/2019 10,251,562.50 1.57% 9,766,400.00 -485,162.50 UNITED STATES TREASURY 1/3/2017 2.250% 12/31/2023 912828V23 5,000, 000.00 AA+ 3/13/2019 4,957,812.50 2.44% 4,876,800.00 -81,012.50 UNITED STATES TREASURY 1/15/2021 0.125% 1/15/2024 91282CBE0 5,000, 000.00 AA+ 3/26/2021 4,981,445.31 0.26% 4,767,450.00 -213,995.31 UNITED STATES TREASURY 1/15/2021 0.125% 1/15/2024 91282CBE0 2,510, 000.00 AA+ 3/31/2021 2,497,744.14 0.30% 2,393,259.90 -104,484.24 UNITED STATES TREASURY 1/15/2021 0.125% 1/15/2024 91282CBE0 11,000, 000.00 AA+ 6/11/2021 10,972,500.00 0.22% 10,488,390.00 -484,110.00 UNITED STATES TREASURY 1/15/2021 0.125% 1/15/2024 91282CBE0 5,525, 000.00 AA+ 7/14/2021 5,497,375.00 0.33% 5,268,032.25 -229,342.75 UNITED STATES TREASURY 1/31/2019 2.500% 1/31/2024 9128285Z9 5,000, 000.00 AA+ 4/14/2020 5,407,421.88 0.34% 4,881,850.00 -525,571.88 UNITED STATES TREASURY 2/28/2017 2.125% 2/29/2024 912828W48 1,625, 000.00 AA+ 4/15/2021 1,637,941.42 0.31% 1,577,582.50 -60,358.92 UNITED STATES TREASURY 4/15/2021 0.375% 4/15/2024 91282CBV2 5,415, 000.00 AA+ 10/15/2021 5,397,443.55 0.51% 5,123,943.75 -273,499.80 UNITED STATES TREASURY 4/30/2019 2.250% 4/30/2024 9128286R6 3,825, 000.00 AA+ 3/25/2022 3,827,838.87 2.21% 3,703,671.00 -124,167.87 UNITED STATES TREASURY 5/1/2017 2.000% 4/30/2024 912828X70 5,000, 000.00 AA+ 5/16/2019 4,952,734.38 2.20% 4,824,200.00 -128,534.38 UNITED STATES TREASURY 5/15/2014 2.500% 5/15/2024 912828WJ5 6,050, 000.00 AA+ 8/16/2019 6,332,174.65 1.48% 5,872,311.50 -459,863.15 UNITED STATES TREASURY 6/30/2019 1.750% 6/30/2024 9128286Z8 7,250, 000.00 AA+ 12/12/2019 7,253,398.44 1.74% 6,947,530.00 -305,868.44 UNITED STATES TREASURY 6/30/2017 2.000% 6/30/2024 912828XX3 5,000, 000.00 AA+ 8/29/2019 5,136,328.13 1.41% 4,808,800.00 -327,528.13 UNITED STATES TREASURY 7/15/2021 0.375% 7/15/2024 91282CCL3 5, 250,000.00 AA+ 9/10/2021 5,246,718.75 0.40% 4,917,990.00 -328,728.75 UNITED STATES TREASURY 7/31/2017 2.125% 7/31/2024 9128282N9 5,000, 000.00 AA+ 9/10/2019 5,133,315.75 1.56% 4,809,200.00 -324,115.75 UNITED STATES TREASURY 8/31/2017 1.875% 8/31/2024 9128282U3 2,985, 000.00 AA+ 3/10/2020 3,149,640.66 0.62% 2,855,092.80 -294,547.86 UNITED STATES TREASURY 8/31/2019 1.250% 8/31/2024 912828YE4 4,750, 000.00 AA+ 1/5/2021 4,928,867.19 0.21% 4,496,730.00 -432,137.19 UNITED STATES TREASURY 10/31/2017 2.250% 10/31/2024 9128283D0 10,000, 000.00 AA+ 11/18/2019 10,290,625.00 1.64% 9,604,700.00 -685,925.00 UNITED STATES TREASURY 11/30/2017 2.125% 11/30/2024 9128283J7 5,000, 000.00 AA+ 1/6/2020 5,118,945.31 1.62% 4,786,150.00 -332,795.31 UNITED STATES TREASURY 1/2/2018 2.250% 12/31/2024 9128283P3 10,000, 000.00 AA+ 1/7/2020 10,300,781.25 1.62% 9,583,600.00 -717,181.25 UNITED STATES TREASURY 1/15/2022 1.125% 1/15/2025 91282CDS7 2, 095,000.00 AA+ 4/12/2022 2,007,026.37 2.71% 1,960,542.90 -46,483.47 UNITED STATES TREASURY 1/31/2020 1.375% 1/31/2025 912828Z52 5,000, 000.00 AA+ 4/22/2020 5,238,671.88 0.37% 4,699,200.00 -539,471.88 UNITED STATES TREASURY 1/31/2020 1.375% 1/31/2025 912828Z52 1,950, 000.00 AA+ 5/7/2021 2,013,146.48 0.50% 1,832,688.00 -180,458.48 UNITED STATES TREASURY 2/28/2018 2.750% 2/28/2025 9128283Z1 6,200, 000.00 AA+ 3/6/2020 6,850,757.82 0.61% 5,990,750.00 -860,007.82 UNITED STATES TREASURY 8/31/2020 0.250% 8/31/2025 91282CAJ0 4, 120,000.00 AA+ 8/2/2021 4,075,581.25 0.52% 3,704,786.40 -370,794.85 UNITED STATES TREASURY 10/31/2020 0.250% 10/31/2025 91282CAT8 5, 400,000.00 AA+ 10/7/2021 5,285,882.83 0.78% 4,828,572.00 -457,310.83 UNITED STATES TREASURY 10/31/2020 0.250% 10/31/2025 91282CAT8 5, 510,000.00 AA+ 6/7/2022 5,024,216.02 3.00% 4,926,931.80 -97,284.22 UNITED STATES TREASURY 11/30/2020 0.375% 11/30/2025 91282CAZ4 4, 450,000.00 AA+ 11/4/2021 4,327,625.00 1.07% 3,980,302.50 -347,322.50 UNITED STATES TREASURY 12/31/2020 0.375% 12/31/2025 91282CBC4 3, 820,000.00 AA+ 5/3/2021 3,751,956.25 0.76% 3,413,972.20 -337,984.05 UNITED STATES TREASURY 1/31/2021 0.375% 1/31/2026 91282CBH3 8, 025,000.00 AA+ 11/30/2021 7,817,478.52 1.01% 7,140,083.26 -677,395.26 UNITED STATES TREASURY 1/31/2021 0.375% 1/31/2026 91282CBH3 4, 050,000.00 AA+ 1/6/2022 3,906,351.56 1.27% 3,603,406.50 -302,945.06 UNITED STATES TREASURY 1/31/2021 0.375% 1/31/2026 91282CBH3 7, 735,000.00 AA+ 2/25/2022 7,305,949.22 1.84% 6,882,061.54 -423,887.68 UNITED STATES TREASURY 1/31/2021 0.375% 1/31/2026 91282CBH3 8, 710,000.00 AA+ 5/3/2022 7,905,345.70 3.00% 7,749,548.30 -155,797.40 UNITED STATES TREASURY 2/28/2021 0.500% 2/28/2026 91282CBQ3 3, 575,000.00 AA+ 8/31/2021 3,574,577.43 0.70% 3,185,539.50 -389,037.93 UNITED STATES TREASURY 2/28/2021 0.500% 2/28/2026 91282CBQ3 5, 175,000.00 AA+ 12/7/2021 5,035,517.58 1.15% 4,611,235.50 -424,282.08 UNITED STATES TREASURY 5/31/2021 0.750% 5/31/2026 91282CCF6 5, 860,000.00 AA+ 3/21/2022 5,520,989.84 2.20% 5,226,182.40 -294,807.44 UNITED STATES TREASURY 5/31/2021 0.750% 5/31/2026 91282CCF6 9, 250,000.00 AA+ 6/8/2022 8,477,480.47 2.99% 8,249,520.00 -227,960.47 UNITED STATES TREASURY 8/15/2016 1.500% 8/15/2026 9128282A7 5,350, 000.00 AA+ 8/15/2022 5,033,388.67 3.08% 4,876,418.00 -156,970.67 UNITED STATES TREASURY 9/30/2021 0.875% 9/30/2026 91282CCZ2 8, 500,000.00 AA+ 4/5/2022 7,878,769.53 2.61% 7,547,405.00 -331,364.53 1/13/2023 4:48 PM 1 of 4
Attachment A
City of Santa Clara Monthly Report
12/31/2022
Description Issue Date Coupon Rate Maturity Date CUSIP Par Value S&P Rating Settle Date Cost Value YTM at Cost Market Value Unrealized G/L UNITED STATES TREASURY 10/31/2021 1.125% 10/31/2026 91282CDG3 5, 700,000.00 AA+ 8/8/2022 5,267,601.56 3.05% 5,098,137.00 -169,464.56 UNITED STATES TREASURY 11/15/2016 2.000% 11/15/2026 912828U24 8,840, 000.00 AA+ 6/8/2022 8,472,242.19 3.01% 8,173,198.80 -299,043.39 UNITED STATES TREASURY 12/31/2021 1.250% 12/31/2026 91282CDQ1 5, 340,000.00 AA+ 4/14/2022 5,000,617.97 2.69% 4,782,023.40 -218,594.57 UNITED STATES TREASURY 2/15/2017 2.250% 2/15/2027 912828V98 2,100, 000.00 AA+ 4/20/2022 2,040,691.41 2.88% 1,954,239.00 -86,452.41 UNITED STATES TREASURY 2/15/2017 2.250% 2/15/2027 912828V98 5,400, 000.00 AA+ 6/13/2022 5,159,109.38 3.29% 5,025,186.00 -133,923.38 UNITED STATES TREASURY 2/15/2017 2.250% 2/15/2027 912828V98 7,910, 000.00 AA+ 7/7/2022 7,705,452.34 2.85% 7,360,966.90 -344,485.44 UNITED STATES TREASURY 3/31/2022 2.500% 3/31/2027 91282CEF4 940,000.00 AA+ 11/30/2022 883,159.38 4.03% 882,096.00 -1,063.38 UNITED STATES TREASURY 4/30/2020 0.500% 4/30/2027 912828ZN3 7,000, 000.00 AA+ 8/3/2022 6,262,812.50 2.89% 6,027,420.00 -235,392.50 UNITED STATES TREASURY 5/15/2017 2.375% 5/15/2027 912828X88 5,400, 000.00 AA+ 8/8/2022 5,248,546.88 3.01% 5,034,474.00 -214,072.88 UNITED STATES TREASURY 6/30/2020 0.500% 6/30/2027 912828ZV5 5,675, 000.00 AA+ 8/15/2022 5,034,789.06 3.00% 4,854,338.25 -180,450.81 UNITED STATES TREASURY 7/31/2022 2.750% 7/31/2027 91282CFB2 10, 800,000.00 AA+ 9/14/2022 10,392,046.88 3.60% 10,218,204.00 -173,842.88 UNITED STATES TREASURY 8/15/2017 2.250% 8/15/2027 9128282R0 11,115, 000.00 AA+ 9/6/2022 10,537,975.20 3.40% 10,281,819.60 -256,155.60 UNITED STATES TREASURY 9/30/2022 4.125% 9/30/2027 91282CFM8 3, 785,000.00 AA+ 11/3/2022 3,760,308.79 4.27% 3,799,193.75 38,884.96 UNITED STATES TREASURY 10/31/2022 4.125% 10/31/2027 91282CFU0 10, 930,000.00 AA+ 12/8/2022 11,081,995.31 3.81% 10,970,113.10 -111,882.21 UNITED STATES TREASURY 10/31/2022 4.125% 10/31/2027 91282CFU0 5, 100,000.00 AA+ 12/13/2022 5,165,343.75 3.83% 5,118,717.00 -46,626.75 U.S. Treasury Bond / Note Subtotal 384,500,000.00 378,278,499.60 361,661,225.25 -16,617,274.35 FANNIE MAE 11/25/2020 0.250% 11/27/2023 3135G06H1 4,950,000. 00 AA+ 11/25/2020 4,944,357.00 0.29% 4,754,920.50 -189,436.50 FANNIE MAE 11/25/2020 0.250% 11/27/2023 3135G06H1 5,225,000. 00 AA+ 1/22/2021 5,230,799.75 0.21% 5,019,082.75 -211,717.00 FANNIE MAE 7/8/2019 1.750% 7/2/2024 3135G0V75 15,000,000.00 AA+ 12/18/2019 15,566,089.75 0.90% 14,358,750.00 -1,207,339.75 FANNIE MAE 1/10/2020 1.625% 1/7/2025 3135G0X24 7,500,000. 00 AA+ 1/22/2020 7,499,025.00 1.63% 7,084,800.00 -414,225.00 FANNIE MAE 4/24/2020 0.625% 4/22/2025 3135G03U5 10,000,000. 00 AA+ 5/7/2020 10,050,600.00 0.52% 9,187,400.00 -863,200.00 FANNIE MAE 11/12/2020 0.500% 11/7/2025 3135G06G3 1,860,000. 00 AA+ 12/29/2020 1,864,929.00 0.44% 1,672,605.00 -192,324.00 FNMA Medium Term Note Subtotal 44,535,000.00 45,155,800.50 42,077,558.25 -3,078,242.25 FEDERAL FARM CREDIT BANKS 6/19/2018 2.890% 6/19/2023 3133EJSD2 5,000,000.00 AA+ 11/28/2018 4,980,250.00 2.98% 4,959,050.00 -21,200.00 FEDERAL FARM CREDIT BANKS 1/17/2020 1.600% 7/17/2023 3133ELHZ0 5,000,000.00 AA+ 1/16/2020 4,998,200.00 1.61% 4,919,050.00 -79,150.00 FEDERAL FARM CREDIT BANKS 8/14/2018 2.900% 8/14/2023 3133EJWV7 5,000,000.00 AA+ 9/17/2018 4,977,050.00 3.00% 4,943,800.00 -33,250.00 FEDERAL FARM CREDIT BANKS 10/2/2018 3.050% 10/2/2023 3133EJD48 7,575,000.00 AA+ 11/27/2018 7,583,620.35 3.02% 7,474,252.50 -109,367.85 FEDERAL FARM CREDIT BANKS 11/1/2017 2.200% 11/1/2023 3133EHN25 2 ,965,000.00 AA+ 6/26/2019 3,006,094.90 1.87% 2,903,980.30 -102,114.60 FEDERAL FARM CREDIT BANKS 2/27/2019 2.610% 2/27/2024 3133EKBW5 5,000,000.00 AA+ 3/20/2019 5,033,150.00 2.47% 4,877,700.00 -155,450.00 FEDERAL FARM CREDIT BANKS 4/22/2019 2.450% 7/22/2024 3133EKHV1 5,000,000.00 AA+ 9/4/2019 5,250,650.00 1.38% 4,844,700.00 -405,950.00 FEDERAL FARM CREDIT BANKS 11/1/2019 1.650% 11/1/2024 3133EK4Y9 5,000,000.00 AA+ 11/8/2019 4,962,850.00 1.81% 4,752,300.00 -210,550.00 FEDERAL FARM CREDIT BANKS 1/23/2020 1.650% 1/23/2025 3133ELJM7 7,320,000.00 AA+ 5/18/2020 7,689,367.20 0.56% 6,904,956.00 -784,411.20 FEDERAL FARM CREDIT BANKS 5/14/2020 0.500% 5/14/2025 3133ELZM9 10,000,000.00 AA+ 5/15/2020 9,982,800.00 0.53% 9,134,500.00 -848,300.00 FEDERAL FARM CREDIT BANKS 6/9/2020 0.500% 6/9/2025 3133ELH23 10,000,000.00 AA+ 6/12/2020 9,997,540.00 0.50% 9,119,600.00 -877,940.00 FFCB Medium Term Note Subtotal 67,860,000.00 68,461,572.45 64,833,888.80 -3,627,683.65 FEDERAL FARM CREDIT BANKS 7/2/2020 0.500% 7/2/2025 3133ELR71 10,000,000.00 AA+ 7/14/2020 10,017,640.00 0.46% 9,089,200.00 -928,440.00 FFCB Coupon Note Subtotal 10,000,000.00 10,017,640.00 9,089,200.00 -928,440.00 FEDERAL HOME LOAN BANKS 10/17/2014 2.375% 9/8/2023 3130A3DL5 5,000,000.00 AA+ 9/5/2019 5,164,135.00 1.53% 4,917,100.00 -247,035.00 FEDERAL HOME LOAN BANKS 12/9/2013 3.375% 12/8/2023 3130A0F70 5,000,000.00 AA+ 1/8/2019 5,147,870.00 2.73% 4,928,050.00 -219,820.00 FEDERAL HOME LOAN BANKS 1/16/2015 2.250% 12/8/2023 3130A3VC5 5,000,000.00 AA+ 3/12/2020 5,282,425.00 0.72% 4,883,350.00 -399,075.00 FEDERAL HOME LOAN BANKS 5/8/2014 2.875% 6/14/2024 3130A1XJ2 5,000,000.00 AA+ 11/20/2019 5,270,205.00 1.64% 4,884,500.00 -385,705.00 FEDERAL HOME LOAN BANKS 11/6/2014 2.750% 12/13/2024 3130A3GE8 5,000,000.00 AA+ 3/12/2020 5,461,300.00 0.77% 4,839,850.00 -621,450.00 1/13/2023 4:48 PM 2 of 4
Attachment A
City of Santa Clara Monthly Report
12/31/2022
Description Issue Date Coupon Rate Maturity Date CUSIP Par Value S&P Rating Settle Date Cost Value YTM at Cost Market Value Unrealized G/L FHLB Medium Term Note Subtotal 25,000,000.00 26,325,935.00 24,452,850.00 -1,873,085.00 FREDDIE MAC 5/7/2020 0.375% 5/5/2023 3137EAER6 5,000,000. 00 AA+ 5/8/2020 5,014,545.00 0.28% 4,930,850.00 -83,695.00 FREDDIE MAC 9/4/2020 0.250% 9/8/2023 3137EAEW5 1,640,000. 00 AA+ 9/4/2020 1,640,761.21 0.24% 1,590,652.40 -50,108.81 FREDDIE MAC 9/4/2020 0.250% 9/8/2023 3137EAEW5 4,295,000. 00 AA+ 9/4/2020 4,293,582.65 0.26% 4,165,763.45 -127,819.20 FREDDIE MAC 10/16/2020 0.125% 10/16/2023 3137EAEY1 3,270,000. 00 AA+ 10/16/2020 3,257,802.90 0.25% 3,153,882.30 -103,920.60 FREDDIE MAC 2/14/2020 1.500% 2/12/2025 3137EAEP0 5,000,000. 00 AA+ 5/20/2020 5,226,960.00 0.53% 4,711,400.00 -515,560.00 FREDDIE MAC 8/30/2022 4.050% 8/28/2025 3134GXS54 5,000,000. 00 AA+ 8/30/2022 4,998,000.00 4.06% 4,919,000.00 -79,000.00 FREDDIE MAC 9/25/2020 0.375% 9/23/2025 3137EAEX3 9,390,000. 00 AA+ 9/25/2020 9,361,736.10 0.44% 8,449,873.20 -911,862.90 FHLMC Medium Term Note Subtotal 33,595,000.00 33,793,387.86 31,921,421.35 -1,871,966.51

INTER-AMERICAN
DEVELOPMENT BANK 9/23/2021 0.500% 9/23/2024 4581X0DZ8 11,065,000.00 AAA 9/23/2021 11,056,811.90 0.52% 10,307,822.05 -748,989.85

INTL BANK OF
RECONSTRUCTION AND DEV 4/20/2021 0.125% 4/20/2023 459058JV6 7,335,000.00 AAA 4/20/2021 7,319,816.55 0.23% 7,236,417.60 -83,398.95 Supranational Subtotal 18,400,000.00 18,376,628.45 17,544,239.65 -832,388.80

CALIFORNIA EARTHQUAKE
AUTHORITY 11/24/2020 1.477% 7/1/2023 13017HAK2 1,430,000.00 NR 11/ 24/2020 1,430,000.00 1.48% 1,405,875.90 -24,124.10

LOS ANGELES COMMUNITY
COLLEGE DISTRICT C 11/10/2020 0.773% 8/1/2025 54438CYK2 2,715,000.00 AA+ 11/10/2020 2,715,000.00 0.77% 2,454,930.15 -260,069.85 Municipals Subtotal 4,145,000.00 4,145,000.00 3,860,806.05 -284,193.95 3M COMPANY 9/14/2018 3.250% 2/14/2024 88579YBB6 5,000,000. 00 A+ 11/29/2021 5,241,250.00 1.03% 4,906,900.00 -334,350.00 3M COMPANY 3/27/2020 2.650% 4/15/2025 88579YBM2 2,560,000. 00 A+ 4/25/2022 2,511,616.00 3.32% 2,445,721.60 -65,894.40 ADOBE INC 1/26/2015 3.250% 2/1/2025 00724FAC5 4,000,000.00 A+ 1/26/2022 4,183, 680.00 1.68% 3,887,120.00 -296,560.00 ALPHABET INC 4/27/2016 3.375% 2/25/2024 02079KAB3 5,330,000. 00 AA+ 11/23/2021 5,642,444.60 0.75% 5,335,223.40 -307,221.20 AMAZON.COM INC 5/12/2021 0.450% 5/12/2024 023135BW5 245, 000.00 AA 5/12/2021 302,801.19 0.50% 230,765.50 -72,035.69 AMAZON.COM INC 5/12/2021 0.450% 5/12/2024 023135BW5 4,000, 000.00 AA 3/14/2022 3,874,280.00 1.94% 3,767,600.00 -106,680.00 AMAZON.COM INC 4/13/2022 3.300% 4/ 13/2027 023135CF1 6,715,000.00 AA 4/25/2022 6, 672,964.10 3.44% 6,372,535.00 -300,429.10 APPLE INC 11/13/2017 2.750% 1/13/2025 037833DF4 5,000,000.00 AA+ 3/9/2021 5,340,100.00 0.94% 4,814,500.00 -525,600.00 APPLE INC 11/13/2017 2.750% 1/13/2025 037833DF4 5,000,000.00 AA+ 3/29/2021 5,355,200.00 0.84% 4,814,500.00 -540,700.00 BANK OF AMERICA 7/23/2013 4.100% 7/ 24/2023 06053FAA7 4,070,000.00 A- 9/15/2020 4,482,494.50 0.52% 4,052,295.50 -430,199.00 BANK OF AMERICA CORP 3/22/2022 3.384% 4/2/2026 06051GKM0 5, 000,000.00 A- 3/22/2022 5,005,100.00 3.36% 4,775,200.00 -229,900.00 BANK OF AMERICA CORP 4/22/2021 1.734% 7/22/2027 06051GJS9 1, 420,000.00 A- 8/10/2022 1,281,251.80 3.92% 1,244,090.40 -37,161.40 BANK OF NY MELLON CORP 1/28/2021 0.750% 1/28/2026 06406RAQ0 9, 000,000.00 A 2/10/2021 9,025,920.00 0.69% 7,970,130.00 -1,055,790.00 BLACKROCK INC 3/28/2017 3.200% 3/15/ 2027 09247XAN1 4,140,000.00 AA- 5/18/2022 4,085,352.00 3.50% 3,911,844.60 -173,507.40 BLACKROCK INC 3/28/2017 3.200% 3/15/ 2027 09247XAN1 4,140,000.00 AA- 5/18/2022 4,086,055.80 3.50% 3,911,844.60 -174,211.20 BRISTOL-MYERS SQUIBB CO 11/13/2020 0.750% 11/13/2025 110122DN5 5, 725,000.00 A+ 6/30/2021 5,672,673.50 0.96% 5,144,370.50 -528,303.00

CATERPILLAR FINANCIAL SERVI
C 1/10/2022 0.950% 1/10/2024 14913R2S5 2,535,000.00 A 1/10/2022 2,534,594.40 0.96% 2,445,438.45 -89,155.95 CATERPILLAR FINANCIAL SERVIC 1/10/2022 0.950% 1/10/2024 14913R2S5 3,100,000.00 A 3/14/2022 3,045,409.00 1.94% 2,990,477.00 -54,932.00 ELI LILLY & CO 3/5/2015 2.750% 6/1/2025 532457BH0 5,415,000. 00 A+ 2/10/2022 5,559,255.60 1.91% 5,175,927.75 -383,327.85 HERSHEY COMPANY 8/21/2015 3.200% 8/21/2025 427866AU2 3,000, 000.00 A 3/30/2022 3,014,040.00 3.05% 2,889,360.00 -124,680.00 HONEYWELL INTERNATIONAL 5/18/2020 1.350% 6/1/2025 438516CB0 5,000,000.00 A 9/8/2021 5,097,900.00 0.82% 4,622,200.00 -475,700.00 HONEYWELL INTERNATIONAL 5/18/2020 1.350% 6/1/2025 438516CB0 2,255,000.00 A 3/22/2022 2,181,960.55 2.41% 2,084,612.20 -97,348.35 JOHN DEERE CAPITAL CORP 6/17/2021 1.050% 6/17/2026 24422EVR7 5 ,000,000.00 A 12/8/2021 4,908,600.00 1.47% 4,437,050.00 -471,550.00 JOHNSON & JOHNSON 8/25/2020 0.550% 9/1/2025 478160CN2 5,000,000.00 AAA 9/3/2020 5,023,550.00 0.45% 4,515,450.00 -508,100.00 1/13/2023 4:48 PM 3 of 4
Attachment A
City of Santa Clara Monthly Report
12/31/2022
Description Issue Date Coupon Rate Maturity Date CUSIP Par Value S&P Rating Settle Date Cost Value YTM at Cost Market Value Unrealized G/L JPMORGAN CHASE & CO 9/16/2020 0.653% 9/16/2024 46647PBS4 2,675, 000.00 A- 9/16/2020 2,675,000.00 0.65% 2,579,636.25 -95,363.75 JPMORGAN CHASE & CO 8/10/2021 0.768% 8/9/2025 46647PCM6 2,340,000.00 A- 8/10/2021 2,340,000.00 0.77% 2,159,703.00 -180,297.00 JPMORGAN CHASE & CO 3/13/2020 2.005% 3/13/2026 46647PBH8 2, 800,000.00 A- 3/22/2022 2,712,500.00 2.84% 2,591,568.00 -120,932.00 JPMORGAN CHASE & CO 4/22/2021 1.578% 4/22/2027 46647PCB0 4, 100,000.00 A- 8/10/2022 3,710,746.00 3.80% 3,602,506.00 -108,240.00 MASTERCARD INC 12/3/2019 2.000% 3/3/2025 57636QAN4 5,000, 000.00 A+ 3/9/2021 5,213,450.00 0.91% 4,729,800.00 -483,650.00 MASTERCARD INC 12/3/2019 2.000% 3/3/2025 57636QAN4 5,000, 000.00 A+ 3/10/2022 4,990,800.00 2.06% 4,729,800.00 -261,000.00 MERCK & CO INC 3/7/2019 2.900% 3/7/2024 58933YAU9 5,375, 000.00 A+ 11/23/2021 5,623,916.25 0.85% 5,251,213.75 -372,702.50 MICROSOFT CORP 2/6/2017 2.875% 2/6/2024 594918BX1 5,000,000. 00 AAA 11/29/2021 5,202,600.00 1.00% 4,911,350.00 -291,250.00 MICROSOFT CORP 2/12/2015 2.700% 2/12/2025 594918BB9 5,000,000. 00 AAA 3/9/2021 5,341,700.00 0.92% 4,803,350.00 -538,350.00 QUALCOMM INC 5/20/2015 3.450% 5/20/2025 747525AF0 5,850,000. 00 A 5/19/2022 5,860,588.50 3.39% 5,694,448.50 -166,140.00 STATE STREET BANK & TR 2/7/2022 1.746% 2/6/2026 857477BR3 1,115,000.00 A 2/7/2022 1,115,000.00 1.75% 1,037,641.30 -77,358.70 STATE STREET BANK & TR 10/29/2020 2.901% 3/30/2026 857477BM4 4, 250,000.00 A 3/14/2022 4,275,372.50 2.74% 4,041,920.00 -233,452.50 TARGET CORP 1/24/2022 1.950% 1/15/2027 87612EBM7 990,000.00 A 1/24/2022 988,317.00 1.99% 898,712.10 -89,604.90 TARGET CORP 1/24/2022 1.950% 1/15/2027 87612EBM7 4,595,000. 00 A 2/1/2022 4,567,889.50 2.08% 4,171,295.05 -396,594.45 TOYOTA MOTOR CREDIT CORP 1/11/2021 0.450% 1/11/2024 89236THU2 6,100,000.00 A+ 1/11/2021 6,099,634.00 0.45% 5,835,321.00 -264,313.00 UNILEVER CAPITAL CORP 9/14/2020 0.375% 9/14/2023 904764BJ5 660,000.00 A+ 9/14/2020 659,155.20 0.42% 638,761.20 -20,394.00 WAL-MART STORES INC 6/27/2018 3.550% 6/26/2025 931142ED1 5, 700,000.00 AA 2/8/2022 6,011,847.00 1.87% 5,577,222.00 -434,625.00 Corporate Note Subtotal 169,200,000.00 171,517,008.99 159,999,404.65 -11,517,604.34 CARMAX AUTO OWNER TRUST 4/21/2021 0.520% 2/17/2026 14314QAC8 2,287,689.54 AAA 4/21/2021 2,287,196.55 0.52% 2,201,466.52 -85,730.03

DISCOVER CARD EXECUTION
NOTE TRUST 9/27/2021 0.580% 9/15/2026 254683CP8 2,100,000.00 AAA 9/27/2021 2,099,550.39 0.58% 1,953,147.00 -146,403.39

HONDA AUTO RECEIVABLES
OWNER T 11/24/2021 0.880% 1/21/2026 43815GAC3 1,615,000.00 NR 11/ 24/2021 1,614,659.56 0.89% 1,532,618.85 -82,040.71

HYUNDAI AUTO RECEIVABLES
TRUST 4/28/2021 0.380% 9/15/2025 44933LAC7 1,471,678.13 AAA 4/28/2021 1,471,523.31 0.38% 1,423,245.20 -48,278.11

HYUNDAI AUTO RECEIVABLES
TRUST 11/17/2021 0.740% 5/15/2026 44935FAD6 1,245,000.00 AAA 11/17/2021 1,244,722.12 0.75% 1,175,964.75 -68,757.37

TOYOTA AUTO RECEIVABLES
OWNER 9/27/2021 0.430% 1/15/2026 89239BAC5 2,645,000.00 AAA 9/27/2021 2,644,789.19 0.43% 2,508,279.95 -136,509.24 Asset-Backed Security Subtotal 11,364,367.67 11,362,441.12 10,794,722.27 -567,718.85 TORONTO DOMINION BANK NY 10/31/2022 5.470% 10/25/2024 89115B6F 2 7,270,000.00 A 10/31/2022 7,270,000.00 5.44% 7,377,450.60 107,450.60 Certificate of Deposit Subtotal 7,270,000.00 7,270,000.00 7,377,450.60 107,450.60

PRINCIPAL PUBLIC DEPOSIT
SWEEP PROGRAM 2.00% 1/1/2023 992995944 589,290.29 9/1/2020 589,290.29 589,290.29 -

LOCAL AGENCY INVESTMENT
FUND 2.01% 1/1/2023 70,258,380.49 9/30/1997 70,258,380.49 70,258,380.49 -

CALIFORNIA ASSET
MANAGEMENT PROGRAM 3.90% 1/1/2023 25,189,389.12 10/4/2022 25,189,389.12 25,189,389.12 - DREYFUS TREASURY 3.62% 1/1/2023 2,179,740.97 10/31/1997 2,179,740.97 2,179,740.97 - Cash Equivalent Subtotal 98,216,800.87 98,216,800.87 98,216,800.87 - Grand Total Count 148 874,086,168.54
872,920,714.84 831,829,567.74 (41,091,147.10)
1/13/2023 4:48 PM 4 of 4
Attachment A
Attachment 3
Department/Item
Source of
Funds
Use of
Funds Explanation
Transfer to the Prefunded Plan
Review Fund
60,000 Establishes a transfer to the Prefunded Plan Review Fund to cover contractual services costs
related to the formation of a Community Facilities
District for the Patrick Henry Specific Plan (five
affirmative votes for the use of unused
balances).

Advanced Planning Fee
Reserve
(60,000) Decreases the Advanced Planning Fee Reserve to offset the transfer to the Prefunded Plan Review
Fund (five affirmative votes for the use of
unused balances).

Transfer to the Public Buildings
Capital Fund
176,000 Establishes a transfer to the Public Buildings Capital Fund of $176,000. Funding of $150,000 will
establish the Berman Building Gate and Electrical
Panel Upgrades project and $26,000 will fund the
fence replacement at the Gianera House in the
Repairs-Modifications to City Buildings Project
(majority affirmative Council votes required).

Non-Departmental (176,000) Reduces Non-Departmental in the amount of $176,000 to offset a transfer to the Public Buildings
Capital Fund for needed repairs (majority
affirmative Council votes required).

Charges for Services/Parks
and Recreation Department
(19,000) (19,000) Reduces the Fees for Services revenue estimate and the Parks and Recreation Department budget
by $19,000 to account for the impact of waiving fees
for the Wilcox High School baseball fundraising
tournaments at the Washington Park Ballfield as
approved by the City Council on January 31, 2023
(RTC 23-89). It is also anticipated that the
tournament organizers will contribute $1,500 to
offset City fees and the organizers would also
qualify for a community grant of up to $10,000
(majority affirmative Council votes required).
(19,000) (19,000)
FY 2022/23 Budget Amendments
General Fund (001)
1 Attachment 3
FY 2022/23 Budget Amendments
Department/Item
Source of
Funds
Use of
Funds Explanation
Major Engine Overhaul and
Repair Project
8,300,000 Increases the Major Engine Overhaul and Repair Project to cover additional costs for unanticipated
work. Two major engine overalls at Donald Von
Raesfeld (DVR) power plant exceeded estimates by
$4.9 million. Additional findings were discovered
while these engines were being serviced and
service bulletins were issued by the manufacturer
that required unanticipated work to be completed.

An additional engine at DVR is recommended for an
unanticipated overhaul anticipated to cost $2.2
million due to turbine blade erosion discovered
during ongoing inspections. At the Gianera power
plant, one engine is recommended for a complete
unanticipated maintenance costing $1.2 million due
to a rotor imbalance that cannot be addressed in
the field (five affirmative votes for the use of
unused balances).

Unrestricted Ending Fund
Balance
(8,300,000) Decreases the unrestricted ending fund balance to offset the action recommended above (five
affirmative votes for the use of unused
balances).
- -
Department/Item
Source of
Funds
Use of
Funds Explanation
Transfer from the General
Fund Advanced Planning Fee
Reserve / Community
Development - Planning
60,000 60,000 Recognizes a transfer from the General Fund Advanced Planning Fee Reserve and increases the
materials, services, and supplies allocation to cover
additional contractual services costs related to the
formation of a Community Facilities District for the
Patrick Henry Drive Specific Plan area (five
affirmative votes to appropriate additional
revenue).
60,000 60,000
Electric Utility Capital Fund (591)
Prefunded Plan Review Fund (157)
2 Attachment 3
FY 2022/23 Budget Amendments
Department/Item
Source of
Funds
Use of
Funds Explanation
Transfer from the General
Fund
176,000 Recognizes a transfer from the General Fund of
$176,000. Funding of $150,000 will establish the
Berman Building Gate and Electrical Panel
Upgrades project and $26,000 will fund fence
replacement at the Gianera House in the Repairs-
Modifications to City Buildings Project (five
affirmative votes to appropriate additional
revenue).

Berman Building Gate and
Electrical Panel Upgrades
Project
150,000 Establishes the Berman Building Gate and
Electrical Panel Upgrades Project in the amount of
$150,000. This project would fund the installation of
a security gate at the lower parking level and
upgrade the electrical panel to address security
concerns at that building (five affirmative votes to
appropriate additional revenue).

Repairs-Modifications to City
Buildings Project
26,000 Increases the Repairs-Modifications to City
Buildings Project in the amount of $26,000 to fund
the replacement of a failing fence at Gianera House
(five affirmative votes to appropriate additional
revenue).
176,000 176,000
Department/Item
Source of
Funds
Use of
Funds Explanation
Other Agencies Revenue /
Citywide Priority Curb Ramp
Project
309,078 309,078 Increases the estimate for Other Agencies Revenue and establishes the Citywide Priority Curb Ramp
project in the amount of $309,078 to receive funds
from the Metropolitan Transportation Commission
(MTC) that is administered through the Santa Clara
Valley Transportation Authority (VTA) which is the
County of Santa Clara Congestion Management
Agency. In RTC 22-192 on May 10, 2022, Council
approved the filing of an application for allocation of Transportation Development Act (TDA) Article 3
funding for FY 2022/23. On September 28, 2022,
the MTC approved an allocation of TDA funds. This
action appropriates the funding for a project that will install high priority curb ramps within the City. The
location of the placement of the curb ramps will be
taken from projects listed within the City’s adopted
Pedestrian Master Plan (five affirmative Council
votes required to appropriate additional
revenue).
309,078 309,078
Streets and Highways Capital Fund (533)
Public Building Capital Fund (538)
3 Attachment 3
FY 2022/23 Budget Amendments
Department/Item
Source of
Funds
Use of
Funds Explanation
Transfer from Water Utility
Fund / Capital Outlay
300,000 300,000 Recognizes a transfer from the Water Utility Fund and increases the Capital Outlay allocation to
account for higher than anticipated costs for the
replacement of two water utility crew trucks (five
affirmative Council votes required to
appropriate additional revenue).
300,000 300,000
Department/Item
Source of
Funds
Use of
Funds Explanation
Transfer to Vehicle
Replacement Fund
300,000 Establishes a transfer to the Vehicle Replacement Fund for costs associated with the replacement of
two water utility crew trucks. There is $502,000
allocated for these replacements in the Vehicle
Replacement Fund; however, the Department has
received a new quote for the replacements, totaling
$802,000, resulting in a funding need of $300,000
for the higher than anticipated costs (five
affirmative Council votes required for the use of
unused balances).

Unrestricted Ending Fund
Balance
(300,000) Decreases the unrestricted ending fund balance to offset the action recommended above (five
affirmative Council votes required for the use of
unused balances).
- -
Water Utility Fund (092)
Vehicle Replacement Fund (050)
4 City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
23-55 Agenda Date: 2/21/2023

REPORT TO COUNCIL

SUBJECT
Action on the Santa Clara Convention Center FY 2022/23 2nd Quarter Financial Status Report

COUNCIL PILLARS
Promote and Enhance Economic, Housing and Transportation Development Enhance Community Engagement and Transparency
Promote Sustainability and Environmental Protection

BACKGROUND
On February 5, 2019, the City approved an agreement with Global Spectrum L.P. dba Spectra Venue Management (Spectra) to operate the Santa Clara Convention Center (SCCC). Spectra began management of the SCCC on March 18, 2019. In November 2021, Spectra merged with Oak View Group (OVG) but continues to operate under the same legal entity.

Staff is transmitting OVG’s, formerly known as Spectra, SCCC status report to Council for compliance with agreement terms.

DISCUSSION
This report transmits for Council information, the SCCC Financial Status Report for the 2nd quarter ending December 31, 2022, as submitted by OVG. This report is unaudited and, therefore, subject to change.

As OVG’s 2nd quarter report indicates, there were 56 events hosted at the SCCC, 45 less than the budgeted 101 events. There were 25 events in October 2022, 17 events in November 2022, and 14 events in December 2022.

Historically the 2nd quarter activity is strong. However, November and December were not as robust as previous years. Holiday parties that used to be a staple in December did not materialize to the pre -pandemic activity level. Event planners were reluctant to book events in late 2022 based upon the COVID surge experienced during December 2021. Based on event needs, OVG staffing levels varied from 24 to 26 throughout the quarter.

As discussed in the Quarterly report, budget to actual financial results are as follows:

Financial Summary - 2nd Quarter Ended December 31, 2022 Projected in
Budget
Actual Budgeted Overage
(Underage)
Gross Revenue $3,990,335 $3,664,200 ($326,135)
Total Expense $3,764,452 $3,306,462 ($457,990)
Net Income $225,883 $357,738 $131,855
City of Santa Clara Printed on 2/16/2023Page 1 of 2
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23-55 Agenda Date: 2/21/2023
Financial Summary - 2nd Quarter Ended December 31, 2022 Projected in
Budget
Actual Budgeted Overage
(Underage)
Gross Revenue $3,990,335 $3,664,200 ($326,135)
Total Expense $3,764,452 $3,306,462 ($457,990)
Net Income $225,883 $357,738 $131,855
For the 2nd quarter ending December 31, 2022, OVG reported a net operating gain of $357,738. Total revenues were $3,664,200, or $326,135 less than the budgeted revenues of $3,990,335. Total expenses for the quarter were $3,306,462, or $457,990 less than the budgeted amount of $3,764,452. Additionally, OVG recognized $69,530 of other revenues in the 2nd quarter primarily from cancelation fees.

As of December 31,2022, OVG reported a year-to-date net operating income of $710,255, which consists of $6,422,061 in revenues and $5,711,806 in expenses.

FISCAL IMPACT
The net operating gain incurred by the Convention Center for the 2nd quarter of FY 2022/23 is $357,738. This amount does not include any fiscal impact related to TOT, TID, and/or sales tax activity.

RECOMMENDATION
Note and file the Santa Clara Convention Center Financial Status Report for the 2nd Quarter ending December 31, 2022, as submitted by OVG.

Reviewed by: Kenn Lee, Director of Finance
Approved by: Office of the City Manager

ATTACHMENTS

1. SCCC Activity Report for Second Quarter FY 2022/23
City of Santa Clara Printed on 2/16/2023Page 2 of 2
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FY 2022/23 QUARTERLY REPORT – 2nd Quarter Ended December 31, 2022 January 25, 2023
N"G 60

Santa Clara Convention Center FY 2022/23 2nd Quarter Report Page 1 of 15

Table of Contents

2nd Quarter Highlights ................................................................................................... 2 Strategic Highlights ................................................................................................... 2 Financial Highlights ................................................................................................... 2 Event Highlights ......................................................................................................... 3 Operational Highlights .............................................................................................. 4 Other Noteworthy Highlights .................................................................................... 4 Financial Summary ....................................................................................................... 5 Financial Results ....................................................................................................... 5 Income Statement ...................................................................................................... 6 Event Statistics .......................................................................................................... 7 Event Revenue ........................................................................................................... 7 Partners ...................................................................................................................... 8 Indirect Expenses ...................................................................................................... 8 Other Activities .............................................................................................................. 9 Key Performance Indicators (KPIs) ........................................................................... 10 Forecast ....................................................................................................................... 11 FY 2022/23 Capital Improvement Projects (CIP) Budget .......................................... 12 CIP Project Updates ................................................................................................. 12 CIP Project Budget .................................................................................................. 12 Community Involvement ............................................................................................. 13

Santa Clara Convention Center is strategically located in the heart of Silicon Valley, a prime location for conventions, trade shows and exhibitions. The Santa Clara Convention Center is minutes from hotels, restaurants, Levi’s Stadium, California’s Great America Theme Park, and many of the largest and most influential technology companies in the world, with easy access to freeways and Norman Y.

Mineta San Jose International Airport and only 45 miles south of San Francisco. The Convention Center features 100,000 square feet of exhibit space, a 22,400 square foot ballroom, 31 breakout rooms and a 607-seat theater and attracts over 350,000 visitors annually. The facility is an integral economic component of Santa Clara, generating economic benefits through attendee direct and indirect spending and sustaining over 500 local jobs.

For more information, visit www.santaclaraconventioncenter.com .

Santa Clara Convention Center FY 2022/23 2nd Quarter Report Page 2 of 15

2nd Quarter Highlights

This quarterly report covers fiscal operations of the Santa Clara Convention Center for the second quarter ended December 31, 2022. This report is unaudited and, therefore, subject to change.

80,959
Total Attendance

56 Total Events

$3,664,200
Total Revenue

Strategic Highlights

Oak View Group (OVG) continues to be actively involved with the City and its consultant, Jones Lang LaSalle (JLL) on the development of the Silicon Valley/Santa Clara DMO, Inc dba Discover Santa Clara
®. In the second quarter, the OVG General
Manager, as a board member of Discover Santa Clara ®, participated in the onboarding of the new Chief Executive Officer, studied, and analyzed the interim booking policy, and provided input on the submission of multiple proposals to potential clients.

OVG and its partners from Levy, Smart City and Encore continued utilizing the interim booking policy and prospecting new business focused on bringing high impact events to the destination. Sales efforts were aligned with OVG, Levy and the DMO’s overlapping key performance indicators (KPIs). Bookings are steady, but still below pre-pandemic levels. The recent economic slowdown and continued fears inflation have led to several cancellations. OVG and its leadership continue to monitor the on-going layoffs within the tech industry and are watching for any trends that may impact the overall business at the Convention Center.

OVG continued to phase in and out employees. Employee totals varied from 24 to 26 based on event load and projected revenue generation. All employees were brought back in accordance with SB 93, California’s Rehiring and Retention Law.

Financial Highlights

The second quarter started strong with a very robust October, however the event load diminished significantly in November and December as banquets and meetings continued to lag behind the projected feed-in numbers. Holiday parties remained low as businesses are still navigating the impacts of the post-pandemic world. Gross revenue October through December was $3,664,200 representing 91.83% of the overall budget for revenue. Conversely, expenses totaled $3,306,462, 87.83% of the budgeted expenses for the quarter, resulting in an overall profit of $357,738 for second quarter. ffl fflfl
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Santa Clara Convention Center FY 2022/23 2nd Quarter Report Page 3 of 15

Event Highlights

Fifty-six events took place during the quarter, 45 less than the budgeted number of 101.

In the quarter, 20 events canceled, two events rescheduled their dates later in the fiscal year, six events canceled citing concerns with COVID-19 and non-availability at local SCTID hotels. A total of 12 clients did not move forward with their proposal. Budgeted meetings continue to underperform, while banquets were impacted by a low request for holiday parties.

In October, the Center hosted the Taiwan Semiconductor Manufacturing Company (TSMC) North America Fall event. Over 1,700 attendees took place in the single day event. In November, the SJ Holiday Craft Fair returned for its second year. The event that was previously held in San Jose attracted over 5,000 holiday shoppers to the building over Thanksgiving weekend. December was highlighted by the Global Semiconductor Alliance Awards Dinner. Essentially, the Oscars® of the semiconductor industry. Over 1,500 attendees took part in this event that returned to the center for the first time since before the pandemic.

TSMC North America Fall event
Global Semiconductor Alliance Awards Dinner
SJ Holiday Craft Fair

Santa Clara Convention Center FY 2022/23 2nd Quarter Report Page 4 of 15

Operational Highlights

 As mentioned above, 56 events took place in the second quarter. Twenty-five in October 17 in November, and 14 in December.
 The General Manager (GM) continued to monitor event load and scheduled staffing levels based on business quantity and projected revenue generation. Therefore, employee levels varied from 24 to 26 throughout the quarter.  The GM continued negotiations with the Teamsters, Local 853 on a new two-year Collective Bargaining Agreement. The entities met several times to discuss more productive ways to provide needed labor for events. Negotiations are progressing.  GM continued to oversee the Convention Center Safety Committee. During the quarter, the GM and the Safety Committee team updated and issued a new evacuation policy and plan for the Convention Center.
 OVG’s senior management met to review the current operations at the center and to discuss strategies on how to streamline processes and procedures for upcoming fiscal years.

Other Noteworthy Highlights

 In Q2, OVG hosted 37 site tours for potential future events at the Convention Center.  The OVG GM, with input from OVG Operations reviewed the previous 5-year capital plan, added new jobs, and discussed reprioritizing the list of the projects.  OVG held multiple interviews for the vacant position of Sales Coordinator, a role OVG has been trying to fill since June of 2022. OVG also held interviews for the open Operations Supervisor job. The acquisition of talent continues to be extremely challenging as many applicants do not respond to requests for interviews. Those that do typically lack the required experience or ask for salaries that are not in line with those for the position.
 The OVG GM along with the Sr. Sales Manager, Levy and the DMO hosted a meeting with the Santa Clara Tourism Improvement District (SCTID) hotel GM’s and Director of Sales. Conversations focused on new ideas and concepts of how to provide a more streamlined process for clients and review of the current Convention Center Booking Policy. Another meeting is scheduled for February.  Began the budgeting process for the next two-year operating budget by meeting with Levy, Encore (AV) and Smart City (IT) to discuss their projected revenue budgets.

Santa Clara Convention Center FY 2022/23 2nd Quarter Report Page 5 of 15

Financial Summary

Financial Results

Historically, the second quarter has tended to be one of the stronger quarters of the fiscal year. October of FY 2022/23 followed the pre-pandemic pattern with solid revenues despite a diminished event load. Conversely, November and December were not as robust as previous years. There were multiple cancelations in November that led to lower revenues. Holiday parties that used to be a staple in December are still not materializing at the rate anticipated. As a result, OVG and its partners generated $3,664,200
in gross revenue during the quarter missing the budgeted amount by $326,135. Net income for Q2 was $357,738 or $131,855 more than the budgeted amount of $225,883.

Financial Summary – 2nd Quarter Ended December 31, 2022 Projected in Budget Actual Difference
Gross Revenue $3,990,335 $3,664,200 ($326,135) Total Expense $3,764,452 $3,306,462 $457,990 Net Income $225,883 $357,738 $131,855

Total expenses for the quarter were $3,306,462 or $457,990 less than the budgeted amount of $3,764,452. There was $69,530 of other revenue recognized in Q2 primarily from cancelation fees.

The year-to-date expenses were $5,711,806, a year-to-date positive variance of $881,708 versus budgeted expenses.

Santa Clara Convention Center FY 2022/23 2nd Quarter Report Page 6 of 15

Income Statement

SANTA CLARA CONVENTION CENTER

QUARTERLY GROSS INCOME STATEMENT
For the quarter ending December 31, 2022

QUARTER 2 TO DATE YEAR TO DATE

BUDGET ACTUAL VARIANCE BUDGET ACTUAL VARIANCE

Number of Events 101 56 (45)

166 107 (59)
Number of Event Days 196 124 (72)

341 233 (108)
Attendance 52,540 80,959 28,419

92,540 127,024 34,484

Event Revenue

Rental 956,230 855,514 (100,716)

1,466,660 1,439,101 (27,559)
Services 31,800 133,704 101,904

57,400 204,467 147,067
IT/Telecom 174,250 209,756 35,506

469,150 423,527 (45,623)
Food & Beverage 2,369,370 1,619,940 (749,430)

3,384,300 2,794,300 (590,000)
Electrical 85,448 172,780 87,332

168,948 305,655 136,707
Audio Visual 355,000 602,976 247,976

530,000 992,303 462,303
Total Event Revenue 3,972,098 3,594,670 (377,428)

6,076,458 6,159,353 82,895

Event Expenses

Services - 29,132 (29,132)

- 42,063 (42,063)
IT/Telecom 128,945 142,634 (13,689)

347,171 287,998 59,173
Food & Beverage 1,908,341 1,382,356 525,985

2,922,426 2,261,804 660,622
Electrical 64,086 129,192 (65,106)

126,711 234,958 (108,247)
Audio Visual 237,850 420,740 (182,890)

355,100 690,977 (335,877)
Total Event Expenses 2,339,222 2,104,054 235,168

3,751,408 3,517,800 233,608

Net Event Income (Loss) 1,632,876 1,490,616 (142,260)

2,325,050 2,641,553 316,503

Other Revenue 18,237 69,530 51,293

36,475 262,708 226,233

Total Net Event & Other Revenue 1,651,113 1,560,146 (90,967)

2,361,525 2,904,261 542,736

Indirect Expenses

Executive 90,596 75,685 14,911

181,192 147,729 33,463
Finance 90,447 74,833 15,614

180,894 140,952 39,942
Event Services 111,475 113,176 (1,701)

214,596 206,422 8,174
Sales/Marketing 95,866 93,617 2,249

191,731 157,297 34,434
Operations 683,581 557,332 126,249

1,367,164 1,007,548 359,616
Overhead 353,265 287,765 65,500

706,529 534,058 172,471
Total Indirect Expenses 1,425,230 1,202,408 222,822

2,842,106 2,194,006 648,100

Net Operating Income 225,883 357,738 131,855

(480,581) 710,255 1,190,836

Other Income/(Expense)

Net Income 225,883 357,738 131,855

(480,581) 710,255 1,190,836

Santa Clara Convention Center FY 2022/23 2nd Quarter Report Page 7 of 15

Event Statistics

There were 56 events scheduled in Q2 with $3,594,670 in revenue and $2,104,054 in expenses. ‘Conventions’ and ‘Trade Shows’ generated the largest amount of revenue in the quarter.

Event Revenue

Event Net Revenue – 2
nd Quarter Ended December 31, 2022
Event Types Gross Revenue Cost of Sales Net Revenue
Banquets $944,554 $751,260 $193,294
Meetings 82,400 19,021 63,379
Consumer Shows 346,387 137,247 209,140
Trade Shows 504,560 190,535 314,025
Conventions 1,519,934 931,590 588,344
Special Events 99,255 29,279 69,976
Miscellaneous Events - - -
Sporting Events 97,580 45,122 52,458
Totals $3,594,670 $2,104,054 $1,490,616

This quarter, there was a profit of $1,490,616 even though the gross event revenue was lower than anticipated. This was in spite of a lower number of events being contracted, 56 compared to the 101 budgeted. The benefit of fewer events is that it usually leads to a decrease in overall event expenses which was the case in the second quarter.

Santa Clara Convention Center FY 2022/23 2nd Quarter Report Page 8 of 15

Partners

Partner Revenue – 2nd Quarter Ended December 31, 2022
Partner Gross
Revenue
Cost of
Sales
Net
Revenue
Levy Restaurants $1,619,940 $1,382,356 $237,584
Smart City (IT services) 209,756 142,634 67,122
ENCORE-AV (AV services) 602,976 420,740 182,236
Electrical 172,780 129,192 43,588
Totals $2,605,452 $2,074,922 $530,530

Partner revenue for Q2 was $2,605,452. The cost of sales was $2,074,922 for a net profit of $530,530. Year-to-date, net partner revenue is showing a $1,040,048 profit versus budget.

Indirect Expenses

Total indirect expenses were $1,202,408 for the quarter.

Departments Expense Description Indirect
Cost
Executive Senior personnel $75,685
Marketing Sales and marketing related 93,617
Finance Finance and Human Resources 74,833
Events Staffing to manage events 113,176
Operations
Engineering, building services, security, and
all other related expenses to operate the
building
557,332
Overhead Non-departmental expenses 287,765
Transition Costs Costs related to the transition to OVG - Totals $1,202,408

Santa Clara Convention Center FY 2022/23 2nd Quarter Report Page 9 of 15

Other Activities

OVG produced and submitted the Building Condition System and Maintenance Report for the City in the quarter. The document provides a narrative on any challenges with operating systems and a recap of continuing and preventative maintenance of the facility.

Working in conjunction with Levy, the DMO, the City and JLL, the sales team reconfirmed its prospect goals for FY 2022/23. OVG’s goal for the year is to average 204 active business prospects throughout the fiscal year. At of the end of the second quarter, OVG’s sales team is actively working 236 sales prospects. Applying the goals of the booking strategy, OVG has put an emphasis on prospecting and generating leads for Priority 3 business. OVG is aiming to convert 20% of those prospects into tentative 1 business. Of those tentative events, OVG will work to reach a conversion rate of 20% into definite2 business throughout the fiscal year. With a full year of data, the sales team is reviewing the conversion ratios. The partners and sales team continue to discuss and identify ideas or concepts that will differentiate the Santa Clara Convention Center from its competitors.

In the second quarter, the GMs of OVG and Levy, in tandem with the DMO’s new CEO continued to review and examine new marketing materials to drive sales for the destination. Mock-ups of the proposed social media campaign were presented by the marketing firm. Review of the proposed ads will take place at the beginning of the third quarter. In addition, OVG’s GM remained working with the DMO CEO on obtaining room block pick-ups from events sending requests to the SCTID hotels for submission.

1 A tentative is defined as having dates held and/or proposals issued to the client. 2 A definite is realized when a client signs its Use License Agreement for an event at Convention Center.

Santa Clara Convention Center FY 2022/23 2nd Quarter Report Page 10 of 15

Key Performance Indicators (KPIs)

Gross revenue was $3,664,200 and net income was $357,738 for Q2. Through the second quarter, the event mix shows the Convention Center hosted eight of its targeted P3’s, 20 of its P4 goal and 79 of its P5 mark. Prospecting numbers remain strong as the Sales Manager continues to focus on bringing new business to the facility. KPI Q2 and YTD results are reported below.

Performance Measures
2022/23
Target YTD October November December NOTES
$13,603,635 $6,422,061 $2,183,790 $609,028 $871,382

2. Net Income ($217,715) $710,255 $621,162 ($193,451) ($69,973) 14,755 7,960 1,822 115 1,347

4. Economic Impact $17,234,704 $20,203,115 $4,612,778 $3,548,563 $2,155,887 85% - - - - Reported at year-end
1% 0.00% 0.00% 0.00% 0.00%
3 0 0 0 0
2% 0.00% 0.00% 0.00% 0.00%
6 0 0 0 0
6% 7.48% 8.00% 5.88% 7.14%
24 8 2 1 1
18% 18.69% 28.00% 23.53% 7.14%
67 20 7 4 1
73% 73.83% 64.00% 70.59% 85.71%
274 79 16 12 12
Total Events 374 107 25 17 14

7. Community Benefit
2 1 0 0 1
60% 0% - - - Reported at year-end
20% 0% - - - Reported at year-end
220 245 244 244 236 Average for the year of P3, P4, P5
Percent of small, local and M/WBE businesses/vendors

8. Number of Prospects (active) (non-cumulative)
Percent of P4 Events
Number of P4 Events
Percent of P5 Events
Number of P5 Events
Number of collaborative, community-based events hosted at the Center Percent of Center employees that volunteer in the community Percent of P1 Events
Number of P1 Events
Percent of P2 Events
Number of P2 Events
Percent of P3 Events
Number of P3 Events
OVG Venue Management – Santa Clara Convention Center

1. Convention Center Gross Revenue

3. Number of Room Nights Consumed

5. Customer Service Survey Results (overall satisfaction)

6. Event Mix at the Convention Center (consumed)

Santa Clara Convention Center FY 2022/23 2nd Quarter Report Page 11 of 15

Forecast

The Center operated at a profit of $357,738 through Q2 as a result of larger than anticipated revenues in the month of October. For the remainder of FY 2022/23, revenues are projected at a $564,064 loss resulting in an overall profit of $146,191 for the fiscal year. If these projections hold, the Center will beat its budgeted loss of $217,715 by $363,907. While it is the midway point of the fiscal year, short term bookings continue to be active, the event numbers are expected to grow.

SANTA CLARA CONVENTION CENTER

ROLLING FORECAST
FY 2022/23

ACTUAL YTD FORECAST TOTAL ORIGINAL
July - Dec Jan - June PROJECTION BUDGET VARIANCE FY 2023 FY 2023 FYE 6/30/23 FYE 6/30/23

# OF EVENTS 107

114

221

374

(153)

DIRECT EVENT INCOME $ 1,737,033

$ 1,937,002

$ 3,674,035

$ 3,519,063

$ 154,972
ANCILLARY INCOME 904,520

844,407

1,748,927

1,693,161

55,766
TOTAL NET EVENT INCOME 2,641,553

2,781,409

5,422,962

5,212,224

210,738

OTHER INCOME 262,708

262,708

72,950

189,758

EXECUTIVE 147,729

182,351

330,080

339,385

9,305
MARKETING 140,952

204,444

345,396

346,281

885
FINANCE 206,422

223,624

430,046

429,193

(853)
EVENTS OPERATIONS 157,297

201,513

358,810

359,017

207
OPERATIONS 1,007,548

1,630,473

2,638,021

2,615,957

(22,064)
OVERHEAD 534,058

903,068

1,437,126

1,413,057

(24,069)

INDIRECT EXPENSES 2,194,006 3,345,473 5,539,480 5,502,889 (36,589)

OPERATING NET INCOME (LOSS) 710,255

(564,064)

146,191

(217,715)

363,907

NET INCOME (LOSS) $ 710,255

$ (564,064)

$ 146,191

$ (217,715)

$ 363,907

Santa Clara Convention Center FY 2022/23 2nd Quarter Report Page 12 of 15

FY 2022/23 Capital Improvement Projects (CIP) Budget

CIP Project Updates

• OVG worked with Levy and Sixth Dimension, the center’s third-party project management team, on revising the agreement with the architectural firm to provide updated design documents for kitchen upgrades at the Center. • Partition Specialties, Inc. (PSI) provided unexpected maintenance on the Grand Ballroom air wall system. A full report and recommendations are expected to be submitted to in Q3.
• The final punch list item from the Carpet/Flooring project was completed in December.
• The agreement for the Levy refrigeration project was reviewed, updated, and forwarded to the vendor for review.
• Idibri submitted a proposal for the Digital Signage project. After review and acceptance of the proposal, during contract negotiations, Idibri was unable to agree to the full terms of the agreement.
• It was determined that AVI-SPL was part of a global procurement co-op, so contract documents were produced for AVI-SPL, submitted, and signed to continue moving the Digital Signage project forward. Installation is expected to begin in Q4 of this fiscal year.

CIP Project Budget

• OVG reviewed, revised, and produced an updated 5-year Capital Plan. The document, that was submitted within the quarter, is currently under review by the City.

SANTA CLARA CONV ENTION CENTER - OV G

CAPITAL PROJECTS
Proj. # Project Name Phase CITY/SPECTRA

REV ISED BUDGET
L EV Y TOTAL BUDGET YTD E xp. Balance
001 Convention Center HVAC Study - $ - $ - $ - $ - $ - 002 Convention Center HVAC - Duct Work - $ - $ - $ - $ - $ - 003 Convention Center HVAC - BMS System Completed FY 2019/20 $ 20,450 $ - $ 20,450 $ 20,450 $ - 004 Convention Center HVAC Portable A/C Units Completed FY 2020/21 $ 75,350 $ - $ 75,350 $ 75,350 $ - 005 Convention Center Security System Completed FY 2021/22 $ 177,381 $ - $ 177,381 $ 172,831 $ 4,550 006 Convention Center Lobby Roof (Glass
Pyramids) Assessment and R epair
Completed FY 2021/22 $ 480,787 $ - $ 480,787 $ 479,300 $ 1,487 007 Convention Center Building E nvelope Repair
- Terrace Building Front
- $ - $ - $ - $ - $ - 008 Convention Center Interior Digital Signage
and Display System
Planning $ 855,386 $ - $ 855,386 $ 45,999 $ 809,387 009 Convention Center Interior Paint Completed FY 2021/22 $ 694,994 $ - $ 694,994 $ 648,052 $ 46,942 010 Convention Center Door Replacements - $ - $ - $ - $ - $ - 011 Convention Center Facility Lighting Project - $ - $ - $ - $ - $ - 012 Convention Center Riding Vacuum Purchase Completed FY 2019/20 $ 31,238 $ - $ 31,238 $ 31,238 $ - 013 Convention Center Carpet Replacement Completed FY 2021/22 $ 1,628,720 $ 241,856 $ 1,870,576 $ 1,751,725 $ 118,851 014 Balance - Contingency - $ 145,694 $ - $ 145,694 $ 32,924 $ 112,770 015 Kitchen/Tech Café/Stand B Planning $ - $ 1,757,065 $ 1,757,065 $ 214,901 $ 1,542,164 TOTAL $ 4,110,000 $ 1,998,921 $ 6,108,921 $ 3,472,770 $ 2,636,151

Santa Clara Convention Center FY 2022/23 2nd Quarter Report Page 13 of 15

Community Involvement

In the 2nd quarter the OVG team, with its partners Levy, Encore and Smart City hosted their inaugural Community Event, “Frosty Fest”.

Here are some details about the event:

• Promoted solely on social media
• Free registration hosted on Eventbrite
• Sold out registration of 300

• Event included the following activities:
o Gingerbread men decorating
o Treasure Hunt
o Winter-themed movies
o Games and crafts
• Levy provided complimentary snacks

• Sourdough Sam (49ers mascot) visited for one hour
• Heavy rains on event day decreased attendance to approximately 150

Santa Clara Convention Center FY 2022/23 2nd Quarter Report Page 14 of 15

In October, the GM and Sr. Sales Manager volunteered for the Academy of Travel & Tourism (ATT) program at Milpitas High School as mentors and judges. ATT is a small learning community focusing on Hospitality, Tourism and Recreation in partnership with local businesses. Teachers integrate class subjects and projects. The GM and Sr. Sales Manager conducted mock interviews and discussed resume tips with students.

The GM continued to serve as a volunteer Board Member for the Extended Opportunity Programs and Services program at Mission College (EOPS). EOPS is a state-funded, services-oriented program. It combines financial assistance with support services designed to inform, recruit, admit, and academically motivate low-income and educationally disadvantaged full-time students to pursue a college education. In December the GM attended the Fall Meeting recap.

Santa Clara Convention Center FY 2022/23 2nd Quarter Report Page 15 of 15

Santa Clara Convention Center
5001 Great America Parkway
Santa Clara, CA 95054
Tel: (408) 748-7000
www.santaclaraconventioncenter.com
General Manager: Kelly Carr
City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
23-1463 Agenda Date: 2/21/2023

REPORT TO COUNCIL

SUBJECT
Action on Award of Contract for the Citywide Emergency Generator Replacement Phase 2 Project to Redwood Engineering Construction, Related Budget Amendments, and Adopting a Class 1 CEQA Categorical Exemption

COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure

BACKGROUND
The Department of Public Works manages 35 generators at various facilities city-wide. The average age of the emergency generators is increasing, resulting in higher maintenance costs and decreased reliability. Staff performed an initial evaluation of the generators based on maintenance and repair costs, current locations, service logs, and service vendor’s input. Since City facilities are considered critical operations, generator evaluation and replacement has been prioritized through a multi-phase project in compliance with regulatory agency requirements.

On August 18, 2020, City Council approved award of construction contract for the Citywide Emergency Generator Replacement Phase 1 Project. The Phase 1 project consisted of removal and replacement of emergency stand-by generators at nine City facilities.

On February 9, 2021, City Council approved a design professional services agreement with Lee+Ro, Inc. for the Citywide Emergency Generator Replacement Phase 2 Project (Project). At the request of Water & Sewer Utilities Department, the Project includes generator replacement at water well sites that they oversee. Based on available funding and the condition of existing generators, four facilities were prioritized for the Project, including the Fairway Glen and Freedom Circle Storm Drain Pump Stations and Water Wells 15 and 28. The Project scope of work includes installation of new generators, automatic transfer switches, fuel tanks, associated raceways and cables, foundations, and other related necessary work.

DISCUSSION
In November 2022, a competitive Request for Bids (RFB) for construction of the Project was published on the City’s bid notification system, Periscope S2G (formerly BidSync). The RFB was viewed by over 70 vendors on Periscope S2G, which included contractors, suppliers, plan rooms, builder exchanges, and more. Beyond the contractors and suppliers who viewed the RFB through Periscope S2G, additional vendors were also able to view the RFB as members of various plan rooms and builder exchanges. Staff also reached out directly to distribute the RFB to contractors and vendors who have previously viewed similar past projects.

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23-1463 Agenda Date: 2/21/2023
On December 22, 2022, bids for the Project were opened via video conference. Three bids were received ranging from $2,739,000 to $5,439,642. The Bid Summary is included as Attachment 1. The lowest bid, submitted by Redwood Engineering Construction (“Redwood”) in the amount of $2,739,000, is 24 percent below the Engineer’s Estimate (EE) of $3,582,000.

Redwood’s bid was reviewed by DPW staff and the City Attorney’s Office for compliance with the terms and conditions of the bid documents and has been determined to be the lowest responsive and responsible bid. Staff recommends awarding the construction contract to Redwood Engineering Construction, Inc.

Award of contract will enable construction of the Project to begin in summer 2023, with substantial completion anticipated by summer 2025. These dates are subject to change based on the latest issues related to the COVID-19 pandemic and if any unforeseen conditions are discovered during construction. The contract includes prevailing wage requirements.

ENVIRONMENTAL REVIEW
This project being considered is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15301 (c), “Existing Facilities,” as the activity consists of the repair, maintenance or minor alteration of existing facilities involving no or negligible expansion of the use beyond that presently existing

FISCAL IMPACT
The approximate cost of the contract is $2,739,000, plus a 15 percent contingency of $410,850 for any potential change orders, for a total not-to-exceed contract amount of $3,149,850. Staff recommends including 15 percent contingency to cover any potential unforeseen issues that may arise when working with existing buildings and infrastructures. To fully fund the construction work and other miscellaneous project delivery costs for the two storm drain pump stations, additional funding of $80,000 is required. Funding of $1,191,000 was set aside in the FY 2023/24 budget for Phase 3 as part of the FY 2022/23 and FY 2023/24 Adopted Capital Improvement Program (CIP) Budget. Of that funding, $80,000 is recommended to be advanced to help fund Phase 2 construction. An adjustment of scope and/or funding for Phase 3 will likely be necessary for future consideration.

Staff also recommends transferring $1,263,050 from the Water Utility Capital Fund to the Standby Stationary Generators Project in the Public Buildings Capital Fund for the portion of the Project cost associated with the Water Utility sites. This includes the cost associated with the construction contract ($1,056,850) and project delivery costs, which include inspection and construction management ($206,200).

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23-1463 Agenda Date: 2/21/2023
Budget Amendment
FY 2022/23
Current Increase/
(Decrease)
Revised
Water Utility Capital Fund
Transfers To Public Buildings
Capital Fund - Standby Stationary
Generators
$0 $1,263,050 $1,263,050
Ending Fund Balance
Unrestricted Fund Balance $15,268,620 ($1,263,050) $14,005,570 General Fund
Transfers To Public Buildings
Capital Fund
$1,189,532 $80,000 $1,269,532
Ending Fund Balance
Reserve for Programmed Capital
Project
$5,364,314 ($80,000) $5,284,314
Public Buildings Capital Fund
Transfers From
Water Utility Capital Fund $0 $1,263,050 $1,263,050
General Fund (Reserve for
Programmed Capital Projects)
$1,189,532 $80,000 $1,269,532
Expenditure
Standby Stationary Generators $2,087,911 $1,343,050 $3,430,961

COORDINATION
This report has been coordinated with the Water & Sewer Utilities Department, 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 or at the public information desk at any City of Santa Clara public library.

RECOMMENDATION

1. Adopt a Class 1 Categorical Exemption under CEQA Guidelines Section 15301;

2. Award the Public Works Contract for the Citywide Emergency Generator Replacement Phase 2 Project to the lowest responsive and responsible bidder, Redwood Engineering Construction, in the amount of $2,739,000 and authorize the City Manager to execute any and all documents associated with, and necessary for the award, completion, and acceptance of this Project;

3. Authorize the City Manager to execute change orders up to approximately 15 percent of the original contract price, or $410,850, for a total not to exceed amount of $3,149,850; and City of Santa Clara Printed on 2/16/2023Page 3 of 4
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23-1463 Agenda Date: 2/21/2023

4. Approve the following FY 2022/23 Budget Amendments:

A. In the Water Utility Capital Fund, establish a Transfer to the Public Buildings Capital Fund and decrease the Unrestricted Ending Fund Balance in the amount of $1,263,050 (five affirmative Council votes required for the use of unused balances); B. In the General Fund, establish a Transfer to the Public Buildings Capital Fund and decrease the Reserve for Programmed Capital Projects in the amount of $80,000 (five affirmative Council votes required for the use of unused balances); and
C. In the Public Buildings Capital Fund, establish a Transfer from the Water Utility Capital Fund in the amount of $1,263,050 and a Transfer from the General Fund - Reserve for Programmed Capital Projects in the amount of $80,000 and increase the Standby Stationary Generators project in the amount of $1,343,050 (five affirmative Council votes required to appropriate additional revenue ).

Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Office of the City Manager

ATTACHMENTS

1. Bid Summary
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City of Santa Clara

Attachment 1
Bid Summary

22-1463

REPORT TO COUNCIL

SUBJECT
Action on Award of Contract for the Citywide Emergency Generator Replacement Phase 2 Project (CE 20-21-10)

BID SUMMARY Bid Opening Date: December 22, 2022
ENGINEER’S ESTIMATE: $ 3,582,000
Contractor Total Bid ($) Percentage above/below
Engineer’s Estimate
Redwood Engineering Construction $2,739,000.00 -24%
ADC Construction Management $3,839,001.00 7%
Rosendin $5,439,642.00 52%

City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
23-1529 Agenda Date: 2/21/2023

REPORT TO COUNCIL

SUBJECT
Action on Award of Contract for the Central Park Magical Bridge Playground Project to Robert A Bothman Construction, S&H Construction Bid Withdrawal, Related Budget Amendments, and Adopting a Class 1 CEQA Categorical Exemption

COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure and Enhance Community Sports, Recreational and Arts Assets

BACKGROUND
The Central Park Magical Bridge Playground Project (Project) is located in Central Park, bounded by Saratoga Creek to the east and south, Kiely Boulevard to the west, and the Community Recreation Center to the north. The Project proposes to replace the existing Central Park Arbor Playground, built in the 1960s, which is in poor condition and requires replacement to meet current building codes and playground standards per the Facility Condition Assessment report prepared in 2018.

The Project scope of work includes demolition of the existing playground, installation of a new all- inclusive playground, technology-related equipment, a playhouse, pathways, site furnishings, landscaping, and utilities. The work also includes rehabilitation of an existing restroom to meet accessibility standards. All-inclusive playgrounds help to improve the physical, social, emotional, and mental health of everyone in the community, regardless of age or ability. The playgrounds are designed to be socially inclusive and physically accessible to all including those living with physical and cognitive disabilities, autism, visual and hearing impairments, and those who are aging or medically fragile.

On March 29, 2019, the City was awarded an All-Inclusive Playground Grant from the County of Santa Clara in the reimbursable amount of $1,765,020 to construct the Project; the grant term expires in April 2024. On June 25, 2019, City Council approved two agreements with the Magical Bridge Foundation and Groundswell Landscape Architects for the design of the Project and licensing, community outreach, and fundraising. On January 12, 2021, City Council approved the Magical Bridge All-Inclusive Playground Schematic Design and the design consultant moved forward with developing design documents for construction. In FY 2022/23, the City was awarded a specified grant from the State of California in the reimbursable amount of $800,000, which was appropriated on December 6, 2022 in RTC 22-1449. To date, the Magical Bridge Foundation has reportedly raised approximately $500,000 of their $1,000,000 expected total funding. To the extent the fundraising falls below the budgeted $1.0 million level, it is anticipated that park in-lieu fees would be used to cover the difference.

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23-1529 Agenda Date: 2/21/2023

DISCUSSION
In December 2022, a competitive Request for Bids (RFB) for construction of the Project was published on the City’s bid notification system, Periscope S2G. The RFB was viewed by over 90 vendors, including contractors, suppliers, plan rooms, and builder exchanges, among others.

Additional vendors were able to view the RFB as members of various plan rooms and builder exchanges. Staff also reached out directly to contractors and vendors who had viewed similar past projects.

On January 19, 2023, bids for the Project were opened via video conference. Three bids were received ranging from $5,647,315 to $7,724,852. The Bid Summary is included as Attachment 1. The lowest bid submitted by S&H Construction (S&H) was in the amount of $5,647,315. Immediately following the bid opening S&H submitted a letter requesting relief of their bid for the Project. S&H sent a follow-up letter on January 26, 2023 stating that due to an error in filling out the bid, S&H’s bid was materially different ($700,000) from what the company had intended to submit.

S&H’s request to withdraw (Attachment 2) was received within the required statutory period, and reviewed by the Department of Public Works and City Attorney’s Office, which determined it met the necessary grounds for relief criteria stated in the California Public Contract Code section 5103.

To relieve S&H of its bid under Section 5103, the bidder must establish the following four elements:
(a) A mistake was made.
(b) He or she gave the public entity written notice within five working days, excluding Saturdays, Sundays, and state holidays, after the opening of the bids of the mistake, specifying in the notice in detail how the mistake occurred. (c) The mistake made the bid materially different than he or she intended it to be. (d) The mistake was made in filling out the bid and not due to error in judgment or to carelessness in inspecting the site of the work, or in reading the plans or specifications.

After reviewing S&H’s request and written explanation, staff recommends that the City Council consent to S&H’s written request for relief of the bid based on the following findings:
(a) That S&H made a mistake in its bid for the Project; (b) That Bids on the Project were opened on January 19, 2023, and S&H gave sufficient notice of its mistake to the City on January 26, 2023 (Attachment 2), which was within five (5) working days of January 19, 2023 after factoring in the weekend of January 21-22, and S&H’s notice specified in detail how the mistake occurred; (c) That S&H’s mistake made its bid materially different than they intended it to be, by an amount of approximately $700,000; and
(d) That S&H’s mistake was made in filling out the bid, specifically by transcribing incorrect unit costs on the City’s Bid Schedule form that was submitted with the bid, and S&H’s mistake was not due to any error in judgment or to carelessness in inspecting the site of the work, or in reading the plans or specifications.

The second lowest bid was submitted by Robert A Bothman Construction (“Bothman) in the amount of $7,595,000, which is 27 percent higher than the Engineer’s Estimate (“EE”) of $5,980,000. Several factors could have contributed to the bid being higher than the EE. Regionally, there has been an City of Santa Clara Printed on 2/16/2023Page 2 of 4
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23-1529 Agenda Date: 2/21/2023
upward trend in industry pricing for some construction components with materials being more expensive and taking longer to obtain. Furthermore, due to COVID-19, there have been more requirements for employers to follow and impacts to the labor force due to worker exposure or testing positive. Staff recommends awarding the contract as there is no guarantee that re-bidding the Project will produce additional bidders or a substantially lower bid result. Additionally, re-bidding the Project will delay the start of construction, which may increase project costs and jeopardize the County grant.

Bothman’s bid was reviewed by Public Works staff and the City Attorney’s Office for compliance with the terms and conditions of the bid documents and has been determined to be a responsive and responsible bid. Staff recommends awarding the construction contract to Robert A Bothman Construction. Award of contract will enable construction of the Project to commence with substantial completion anticipated later in 2024. The date is subject to change based on any unforeseen conditions discovered during construction. The contract includes prevailing wage requirements.

FISCAL IMPACT
The approximate cost of the contract is $7,595,000, plus a 15 percent contingency of $1,139,250 for any potential change orders, for a total not-to-exceed contract amount of $8,734,250. Staff recommends including the 15 percent contingency to cover any potential unforeseen issues that may arise when working with existing park infrastructure.

The Central Park Magical Playground project has a current budget of $4,520,500 in the Parks & Recreation Capital Fund. The recommended budget amendment would increase the budget by $4,363,500 to $8,884,000 to cover the anticipated construction costs as well as other project costs, such as permitting and plan review. The additional funding would be provided from Mitigation Fee Act funds received in FY 2022/23. As discussed above, this project is also partially funded from County of Santa Clara All Inclusive Playground grant funds, state grant funds and donations raised by the Magical Bridge Foundation. If any of the budgeted funds from these sources are not received, it is anticipated that park in-lieu fees would be needed to cover the difference.

Budget Amendment
FY 2022/23
Parks and Recreation Capital Fund Current Increase/
(Decrease)
Revised
Revenues
Mitigation Fee Act $0 $4,363,500 $4,363,500
Expenditures
Central Park Magical Bridge $4,520,500 $4,363,500 $8,884,000 Playground
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23-1529 Agenda Date: 2/21/2023

COORDINATION
This report has been coordinated with the Finance Department, Parks and Recreation Department, and City Attorney’s Office.

RECOMMENDATION

1. Adopt the findings of Council contained in this report, pursuant to California Public Contract Code section 5103, et seq., and relieve S&H Construction, Inc., of its bid for the Central Park Magical Bridge All-Inclusive Playground Project;

2. Adopt a Class 1 Categorical Exemption under CEQA Guidelines Section 15301;

3. Award the Public Works Contract for the Central Park Magical Bridge All-Inclusive Playground Project to the lowest responsive and responsible bidder, Robert A Bothman Construction, in the amount of $7,595,000 and authorize the City Manager to execute any and all documents associated with, and necessary for the award, completion, and acceptance of this Project;

4. Authorize the City Manager to execute change orders up to approximately 15 percent of the original contract price, or $1,139,250, for a total not to exceed amount of $8,734,250; and

5. Approve the following FY 2022/23 budget amendment in the Parks and Recreation Capital Fund to increase the Central Park Magical Bridge Playground project appropriation by $4,363,500 and increase the Parks and Recreation Capital Fund Mitigation Fee Act revenue estimate by the same amount (five affirmative Council votes required to appropriate additional revenue).

Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Office of the City Manager

ATTACHMENTS

1. Bid Summary

2. S&H Letter to Withdraw
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City of Santa Clara

Attachment No. 1
Bid Summary

22-1529

REPORT TO COUNCIL

SUBJECT
Action on Award of Contract for the Central Park Magical Bridge All-Inclusive Playground Project to Robert A Bothman Construction, Related Budget Amendments, and Adopting a Class 1 CEQA Categorical Exemption

BID SUMMARY Bid Opening Date: January 19, 2023
ENGINEER’S ESTIMATE: $ 5,980,000
Contractor Total Bid ($) Percentage above/below
Engineer’s Estimate
S&H Construction $5,647,315.00 -6%
Robert A Bothman Construction $7,595,000.00 27%
Suarez and Munoz Construction $7,724,852.00 29%

VARELA, LEE, METZ & GUARINO , LLP
333 BUSH STREET, SUITE 1500, SAN FRANCISCO, CA 94104
415.623.7000 (T) | 415.623.7001 (F)

Andrew Van Ornum
[email protected]

January 26, 2023

VIA EMAIL c/o (Amanda Lopez [email protected])
Luis Haro, Esq.

Deputy City Attorney
City of Santa Clara
1500 Warburton Ave.

Santa Clara, CA 95050

Re: S&H Construction Inc.

Central Park Magical Bridge All-Inclusive Playground Project Project No. CE 19-20-06

Dear Mr. Haro:

The undersigned is legal couns el to S&H Construction, Inc. (“S&H”). Mr. Anand has provided me your January 24, 2023 letter responding to his lette r on S&H’s behalf requesting that S&H withdraw its bid for the Central Park Magical Bridge All-Inclusive Playground Project (“Project”) put out to bid by City of Santa Clar a (“City”). As detailed below in the Affidavit from Harmeet Anand, there were two significant mistakes that warrant the City permitting S&H to withdraw its bid.

Under Public Contract Code section 5103, S&H is entitled to withdraw its bid based on demonstration of satisfaction of the following elements:

(a) A mistake was made.

(b) S&H gave the public entity writte n notice within five working days … after the opening of th e bids of the mistake, specifyi ng in the notice in detail how the mistake occurred.

(d) The mistake was made in filling out the bid and not due to error in judgment or to carelessness in inspecting the site of th e work, or in reading the plans or specifications.

Luis Haro, Esq.

January 26, 2023

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The attached affidavit of Mr. Anand demonstrates that S&H made two si gnificant errors that justify withdrawal of the bid and mandate that the bid be declared non-responsive.

As to the timing, the bids were opened on January 19 and S&H submitted its request to withdraw the bid on January 20. You requested a further response by 3:00 pm on January 26, 2023, and this is submitted timely according to that re quest. S&H has been timely and diligent in seeking the withdrawal.

As to the mistake, and its significance, th e error was significant and should have been obvious. In evaluating this mistake, the context of the bid must be considered. The bid form for the Project contract contains a whopping 175 separate line items for prici ng, with each required to be filled out and tabulated to reach a bid total for the base bid amount. In this lengthy process, one of the 175 lines was the line item for the “Playhouse”, which corresponds to the bid line item #15 for “Playhouse.” The “Playhouse” is detailed on plan sheets 13.1-13.9 as an extensive two story structure with theater stage of over 6 00 square feet. Associated components were separately listed items in lines 56-61. In s hort, S&H wrote the wrong price for the large Playhouse. It wrote $30,000 for an item that wa s intended to have been more than 25 times higher.

The mistake was material and obvious. S&H’s bid was a total of $5,737,315, which compared with the other two bids of almost $7.6 million and over $7.7 million indicates that S&H made an obvious error in tabulating the playhouse.

The second mistake relates to S&H’s safety rating inform ation. S&H completed this portion of the bid form listing its “Interstate E xperience Modification Rate” for the prior three years. It listed its rates as 1.28, 1.33, and 1.04. According to the instruction on the bid form, any rating above 1.25 for a single year disquali fies a bid as non-responsive. Under Valley Crest Landscape, Inc. v. City Council (1996) 41 Cal.App.4
th 1432, any aspect of a bid that fails to
conform to the bid documents renders the bid non-conforming.

Based on the foregoing errors, S&H respectfu lly requests that its bid be withdrawn.

Kindly confirm this withdrawal at your earliest convenience.

Very truly yours,

VARELA, LEE, METZ
& GUARINO, LLP

Andrew Van Ornum
Enclosure

cc: Harmeet Anand (via email)

AFFIDAVIT IN SUPPORT OF REQUEST TO WITHDRAW BID
Re: Central Park Magical Bridge All-Inclusive Playground Project City of Santa Clara
S&H Construction Inc.'s Withdrawal of Mistaken Bid
I, Harmeet Anand, declare under penalty of perjury under the laws of the State of California as follows:
l. I am President and sole shareholder of S&H Construction, Inc. ("S&H "). I make this declaration from personal knowledge and if called to testify before any court of competent jurisdiction, I would and could competently testify to the facts of this affidavit.

2. I supervised the bidding process , including the completion of the bid forms for the instant Project. During the completion of the bid form for the Playhouse component , I made an error in directing my staff to insert the value of $30,000 for that item. I intended to bid $730,000 for that item and misdirected by staff to enter the incorrect number , which resulted in S&H's total bid being too low.

3. I also must clarify that the Rates my staff wrote in for the "Interstate Experience Modification Rate" in the safety portion of the bid form are accurate rates assigned to S&H for the last three years.

Signed this 26th day of January , 2023, at Fremont, California. ~l ....:r:= ~
f
Harmeet Anand
City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
23-96 Agenda Date: 2/21/2023

REPORT TO COUNCIL

SUBJECT
Action on Agreements for Services with Stephens Mechanical Corporation, Axis Mechanical Group, Inc, and Performance Mechanical, Inc. for Millwright Services

COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure

BACKGROUND
Silicon Valley Power (SVP), the City’s Electric Utility Department, operates three gas fired power generation facilities within the City limits. These power plants are critical to SVP’s continued energy generation operations. As peak power demand in the City continues to grow, these generators become more important to maintain grid stability and reliability and support load growth in the City.

The Donald Von Raesfeld Power Plant (DVR), the main facility, is a 2x1 combined cycle power plant rated at 147 Megawatts of electrical power. It is powered by two 50-Megawatt General Electric (GE) LM6000PC gas turbine engines and one Mitsubishi steam turbine rated at 47 Megawatts. The steam turbine and associated equipment require routine inspection, maintenance, and repair services in order to keep them operating at an optimal level. Major overhauls typically occur after 40,000 - 50,000 hours of service (approximately four to five years), based on routine inspections. These services are only performed by millwright or mechanical contractors with extensive experience providing maintenance and overhaul services on steam turbines and associated equipment.

The Gianera power plant uses two General Electric Frame 5 gas turbine engines (Unit 1 and Unit 2).

These turbines were installed in 1986 and SVP completed major overhauls on both engines in 2021 and 2022. In addition, SVP purchased a spare rotor for Gianera in 2022. Like the equipment at DVR, these engines and associated equipment require routine inspection, maintenance, repair, and overhaul services in order to keep them operating at an optimal level. These services are required to be performed by millwright or mechanical contractors with extensive experience providing maintenance and overhaul services of General Electric Frame 5 gas turbine engines.

DISCUSSION
The City published a Statement of Qualifications (SOQ) #21-22-63 to solicit proposals from qualified firms for as needed millwright support including turbine inspection, maintenance, repair, and overhaul services. The SOQ was published using the City’s bid notification system, and three proposals were received from Stephens Mechanical Corporation (SMC), Axis Mechanical Group, Inc. (AMG), and Performance Mechanical, Inc. (PMI).

Evaluation Process: Proposals were evaluated by a three-member evaluation team against the criteria published in the SOQ. Staff determined that all three firms met the minimum requirement City of Santa Clara Printed on 2/16/2023Page 1 of 4
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specified in the SOQ.

Award Recommendation:

Staff recommends the award of three master agreements to SMC, AMG, and PMI for millwright services. At such time that services are required, staff will initiate a secondary bid process and issue task order(s) for specific scopes of work, with award based on factors such as experience with specific equipment, schedule availability, and price.

Notice of Intended Award: A Notice of Intended Award announcing the City’s recommended vendor was issued on June 8, 2022.

Term of Agreement: The term of the proposed agreement will be five years. The City reserves the right to exercise up to five (5) one-year options to extend the agreement, for a total of ten years.

Summary of Agreement:

The proposed agreement will include a high-level scope of services. Specific projects with defined work scopes will be authorized using a work authorization process outlined in the final agreement.

In order to complete an overhaul at DVR, staff executed an Agreement with SMC within staff’s contract authorization threshold to support the fall 2022 maintenance outage. Staff requests authorization for the City Manager to negotiate and execute Amendment No. 1 to the Agreement increasing maximum compensation from $125,000 to $1,000,000. Staff seeks authorization for the City Manager to negotiate and execute Master Agreements for Services with AMG and PMI.

Services performed by SMC, AMG, and PMI may be performed at the plant or at the contractor’s depot and include:
· Borescope and visual inspections, to be performed every six months or as needed such as when the engine operations indicate a fault.
· Package inspections and calibrations: air filter inspections; foreign object debris (FOD) inspections; accessory inspections; and checks and calibrations on all instrumentation that drive the sequencing and operation of the engine. Package inspections are typically performed every six months and package calibrations are typically performed annually. · Swapping engines such as swapping the spare engine for an engine needing major service or repair.
· Engine overhauls.
· Other field repairs and modifications to the engines to be performed in accordance with Original Equipment Manufacturers (OEM) recommendations, inspection findings, and recommended service bulletins.
· Project management and other associated services.

The initial term for each agreement will be five years, with five additional one-year options to extend the Agreements at the discretion of the City. Compensation shall be paid on a per-project basis and shall not exceed an aggregate maximum amount of $15,000,000 during the initial five-year term.

Staff from SVP and the City Attorney’s Office will coordinate in negotiating additional specific terms and conditions with each contractor. In order to best manage the aggregate maximum compensation, staff recommends executing initial agreements with a maximum compensation of $1,000,000 each, and then amending those agreements as needed for specific projects.

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The master agreement approach aligns with SVP’s new proactive maintenance approach and also with the recent Council approved maintenance master agreements for the turbines at DVR and Cogen.

ENVIRONMENTAL REVIEW
Staff recommends that the City Council determine that the actions being considered are exempt from the California Environmental Quality Act (“CEQA”) pursuant section 15301 of Title 14 of the California Code of Regulations as the services involve operation, maintenance, and repair of existing facilities and mechanical equipment.

FISCAL IMPACT
The total proposed authorization in the Master Agreements is $15,000,000 over a five-year period. In addition, there are five one-year options to extend the terms of the agreements with an increase in the maximum compensation to $30,000,000 over a ten-year period. The costs associated with these proposed agreements are primarily budgeted as part of SVP’s capital budget with smaller maintenance intervals as well as unanticipated services budgeted in the operations budget associated with each power plant.

For Fiscal Year 2022 / 2023 sufficient funding is available in SVP’s capital budget in project 2127 - Major Engine Overhaul and Repair.

Funds required for these agreements in future years will be included in proposed budgets for corresponding years.

COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.

RECOMMENDATION

1. Determine the proposed actions are exempt from CEQA pursuant to Section 15301 of Title 14 of the California Code of Regulations;

2. Authorize the City Manager to negotiate and execute Amendment No. 1 to the Agreement with Stephens Mechanical Corporation for as needed millwright services increasing the maximum compensation to $1,000,000 for a five-year term ending on October 31, 2027;

3. Authorize the City Manager to negotiate and execute Agreements for Services with Axis Mechanical Group, Inc. and Performance Mechanical Inc. for as needed millwright services with a maximum compensation of $1,000,000 each and a five-year term ending on or around March 31, 2028;

4. Authorize the City Manager to negotiate and execute amendments to these agreements to (a) add or delete services consistent with the scope of services for the agreements (b) adjust future rates subject to the appropriation of funds; (c) increase maximum compensation up to an aggregate City of Santa Clara Printed on 2/16/2023Page 3 of 4
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23-96 Agenda Date: 2/21/2023
maximum compensation of $15,000,000 over a five-year period; and (d) extend the term of the agreements and increase maximum compensation by $15,000,000 for an aggregate compensation of $30,000,000 over a ten-year period, subject to the annual appropriation of funds; and

5. Authorize the City Manager to take any actions as necessary to implement and administer the agreement
Reviewed by: Manuel Pineda, Chief Electric Utility Officer Approved by: Office of the City Manager

ATTACHMENTS
Agreement with Stephens Mechanical
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EBIX Insurance No. S200004803

AGREEMENT FOR SERVICES

BETWEEN THE

CITY OF SANTA CLARA, CALIFORNIA,
AND

STEPHENS MECHANICAL CORPORATION

PREAMBLE
This Agreement is entered into between the City of Santa Clara, California, a chartered California municipal corporation (City) and Stephens Mechanical Corporation, a California corporation, (Contractor). City and Contractor may be referred to individually as a "Party" or collectively as the "Parties" or the "Parties to this Agreement."

RECITALS
A. City desires to secure the services more fully described in this Agreement, at Exhibit A, entitled "Scope of Services";
B. Contractor represents that it, and its subcontractors, if any, have the professional qualifications, expertise, necessary licenses and desire to provide certain goods and/or required services of the quality and type which meet objectives and requirements of City; and,
C. The Parties have specified herein the terms and conditions under which such services will be provided and paid for.

The Parties agree as follows:

AGREEMENT TERMS AND CONDITIONS

1. AGREEMENT DOCUMENTS
The documents forming the entire Agreement between City and Contractor shall consist of these Terms and Conditions and the following Exhibits, which are hereby incorporated into this Agreement by this reference:

Exhibit A - Scope of Services
Exhibit B - Schedule of Fees and Payment Provisions
Exhibit C - Insurance Requirements
Exhibit D - Labor Compliance Exhibit
This Agreement, including the Exhibits set forth above, contains all the agreements, representations and understandings of the Parties, and supersedes and replaces any previous agreements, representations and understandings, Agreement with Stephens Mechanical Corporation Page 1 of 42 Rev. 07-01-18
whether oral or written. In the event of any inconsistency between the provisions of any of the Exhibits and the Terms and Conditions, the Terms and Conditions shall govern and control.

2. TERM OF AGREEMENT
A. Unless otherwise set forth in this Agreement or unless this paragraph is subsequently modified by a written amendment to this Agreement, the term of this Agreement shall begin on November 1, 2022 and terminate on October 31, 2027.

B. After the Initial Term, City reserves the right, at its sole discretion, to extend the term of this Agreement for up to five (5) additional one-year terms through October 31, 2032 ("Option Periods"). Such extensions of term shall be authorized through an Amendment to this Agreement executed by the Parties.

3. SCOPE OF SERVICES & PERFORMANCE SCHEDULE
Contractor shall perform those Services specified in Exhibit A within the time stated in Exhibit A. Time is of the essence.

4. WARRANTY
Contractor expressly warrants that all materials and services covered by this Agreement shall be fit for the purpose intended, shall be free from defect and shall conform to the specifications, requirements and instructions upon which this Agreement is based. Contractor agrees to promptly replace or correct any incomplete, inaccurate or defective Services at no further cost to City when defects are due to the negligence, errors or omissions of Contractor. If Contractor fails to promptly correct or replace materials or services, City may make corrections or replace materials or services and charge Contractor for the cost incurred by City.

5. QUALIFICATIONS OF CONTRACTOR. STANDARD OF CARE
Contractor represents and maintains that it has the expertise in the professional calling necessary to perform the services, and its duties and obligations, expressed and implied, contained herein, and city expressly relies upon contractor's representations regarding its skills and knowledge. Contractor shall perform such services and duties in conformance to and consistent with the professional standards of a specialist in the same discipline in the State of California.

6. COMPENSATION AND PAYMENT
In consideration for Contractor's complete performance of Services, City shall pay Contractor for all materials provided and Services rendered by Contractor in accordance with Exhibit B, entitled "SCHEDULE OF FEES." The maximum compensation of this Agreement is one hundred twenty-five thousand dollars Agreement with Stephens Mechanical Corporation
Rev. 07-01-18
Page2 of42
($125,000.00), subject to budget appropriations, which includes all payments that may be authorized for Services and for expenses, supplies, materials and equipment required to perform the Services. All work performed or materials provided in excess of the maximum compensation shall be at Contractor's expense. Contractor shall not be entitled to any payment above the maximum compensation under any circumstance unless an amendment has been executed by both Parties.

7. TERMINATION
A. Termination for convenience. City shall have the right to terminate this agreement, without cause or penalty, by giving not less than thirty (30) days' prior written notice to contractor.

B. Termination for default. If contractor fails to perform any of its material obligations under this agreement, in addition to all other remedies provided by law, city may terminate this agreement immediately upon written notice to contractor.

C. Upon termination, each party shall assist the other in arranging an orderly transfer and close-out of services. As soon as possible following the notice of termination, but no later than ten (10) days after the notice of termination, contractor will deliver to city all city information or material that contractor has in its possession.

8. ASSIGNMENT AND SUBCONTRACTING
City and Contractor bind themselves, their successors and assigns to all covenants of this Agreement. This Agreement shall not be assigned or transferred without the prior written approval of City. Contractor shall not hire subcontractors without express written permission from City.

Contractor shall be as fully responsible to City for the acts and omissions of its subcontractors, and of persons either directly or indirectly employed by them, as Contractor is for the acts and omissions of persons directly employed by it.

9. NO THIRD-PARTY BENEFICIARY
This Agreement shall not be construed to be an agreement for the benefit of any third party or parties and no third party or parties shall have any claim or right of action under this Agreement for any cause whatsoever.

10. INDEPENDENT CONTRACTOR
Contractor and all person(s) employed by or contracted with contractor to furnish labor and/or materials under this agreement are independent contractors and do not act as agent(s) or employee(s) of city. Contractor has full rights to manage its employees in their performance of services under this agreement.

Agreement with Stephens Mechanical Corporation
Rev. 07-01-18

Page 3 of 42 ends

11. CONFIDENTIALITY OF MATERIAL
All ideas, memoranda, specifications, plans, manufacturing procedures, data, drawings, descriptions, documents, discussions or other information developed or received by or for contractor and all other written information submitted to contractor in connection with the performance of this agreement shall be held confidential by contractor and shall not, without the prior written consent of city, be used for any purposes other than the performance of the services nor be disclosed to an entity not connected with performance of the services. Nothing furnished to contractor which is otherwise known to contractor or becomes generally known to the related industry shall be deemed confidential.

12. OWNERSHIP OF MATERIAL
All material, which shall include, but not be limited to, data, sketches, tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps, calculations, photographs, reports, designs, technology, programming, works of authorship and other material developed, collected, prepared or caused to be prepared under this Agreement shall be the property of City but Contractor may retain and use copies thereof. City shall not be limited in any way or at any time in its use of said material. However, Contractor shall not be responsible for damages resulting from the use of said material for work other than Project, including, but not limited to, the release of this material to third parties.

13. RIGHT OF CITY TO INSPECT RECORDS OF CONTRACTOR
City, through its authorized employees, representatives or agents shall have the right during the term of this Agreement and for four (4) years from the date of final payment for goods or services provided under this Agreement, to audit the books and records of Contractor for the purpose of verifying any and all charges made by Contractor in connection with Contractor compensation under this Agreement, including termination of Contractor. Contractor agrees to maintain sufficient books and records in accordance with generally accepted accounting principles to establish the correctness of all charges submitted to City. Any expenses not so recorded shall be disallowed by City. Contractor shall bear the cost of the audit if the audit determines that there has been a substantial billing deviation in excess of five (5) percent adverse to the City.

Contractor shall submit to City any and all reports concerning its performance under this Agreement that may be requested by City in writing. Contractor agrees to assist City in meeting City's reporting requirements to the State and other agencies with respect to Contractor's Services hereunder.

14. HOLD HARMLESS/INDEMNIFICATION
A. To the extent permitted by law, Contractor agrees to protect, defend, hold harmless and indemnify City, its City Council, commissions, officers, employees, volunteers and agents from and against any claim, injury, Agreement with Stephens Mechanical Corporation Page 4 of 42 Rev. 07-01-18
liability, loss, cost, and/or expense or damage, including all costs and attorney's fees in providing a defense to any such claim or other action, and whether sounding in law, contract, tort, or equity, to the extent arising out of, pertaining to, or related to the negligence, recklessness, or willful misconduct of the Contractor, its employees, subcontractors, or agents in the performance, or non-performance, of Services under this Agreement.

B. Contractor's obligation to protect, defend, indemnify, and hold harmless in full City and City's employees, shall specifically extend to any and all employment-related claims of any type brought by employees, contractors, subcontractors or other agents of Contractor, against City (either alone, or jointly with Contractor), regardless of venue/jurisdiction in which the claim is brought and the manner of relief sought.

C. To the extent Contractor is obligated to provide health insurance coverage to its employees pursuant to the Affordable Care Act ("Act") and/or any other similar federal or state law, Contractor warrants that it is meeting its obligations under the Act and will fully indemnify and hold harmless City for any penalties, fines, adverse rulings, or tax payments associated with Contractor's responsibilities under the Act.

15. INSURANCE REQUIREMENTS
During the term of this Agreement, and for any time period set forth in Exhibit C, Contractor shall provide and maintain in full force and effect, at no cost to City, insurance policies as set forth in Exhibit C.

16. WAIVER
Contractor agrees that waiver by City of any one or more of the conditions of performance under this Agreement shall not be construed as waiver(s) of any other condition of performance under this Agreement. Neither City's review, acceptance nor payments for any of the Services required under this Agreement shall be constructed to operate as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement.

17. NOTICES
All notices to the Parties shall, unless otherwise requested in writing, be sent to City addressed as follows:

City of Santa Clara
Attention: Electric Department
1500 Warburton Avenue
Santa Clara, CA 95050
and by e-mail at [email protected]
Agreement with Stephens Mechanical Corporation
Rev. 07-01-18

Page 5 ends

And to Contractor addressed as follows :

Stephens Mechanical Corporation
497 Edison Court , Suite D
Fairfield , CA 94534
[email protected]
The workday the e-mail was sent shall control the date notice was deemed given.

An e-mail transmitted after 1 :00 p.m. on a Friday shall be deemed to have been transmitted on the following business day.

18. COMPLIANCE WITH LAWS
Contractor shall comply with all applicable laws and regulations of the federal, state and local government , including but not limited to "The Code of the City of Santa Clara, California" ("SCCC"). In particular, Contractor's attention is called to the regulations regarding Campaign Contributions (SCCC Chapter 2.130), Lobbying (SCCC Chapter 2.155) , Minimum Wage (SCCC Chapter 3.20), Business Tax Certificate (SCCC section 3.40.060), and Food and Beverage Service Worker Retention (SCCC Chapter 9.60), as such Chapters or Sections may be amended from time to time or renumbered . Additionally, Contractor has read and agrees to comply with City's Ethical Standards at
http://santaclaraca .gov/home/showdocument? id=58299 ).

19. CONFLICTS OF INTEREST
Contractor certifies that to the best of its knowledge , no City officer , employee or authorized representative has any financial interest in the business of Contractor and that no person associated with Contractor has any interest, direct or indirect, which could conflict with the faithful performance of this Agreement. Contractor is familiar with the provisions of California Government Code section 87100 and following and certifies that it does not know of any facts which would violate these code provisions. Contractor will advise City if a conflict arises.

20. FAIR EMPLOYMENT
Contractor shall not discriminate against any employee or applicant for employment because of race, sex, color, religion, religious creed, national origin, ancestry , age, gender, marital status, physical disability, mental disab ility, medical condition , genetic information , sexual orientation, gender expression , gender identity, military and veteran status, or ethnic background , in violation of federal , state or local law.
21 . NO USE OF CITY NAME OR EMBLEM
Contractor shall not use City's name, insignia , or emblem , or distribute any information related to services under this Agreement in any magazine , trade paper , newspaper or other medium without express written consent of City.

Agreement with Stephens Mechanical Corporation
Rev. 07-01-18

Page 6 of 42 ends

22. GOVERNING LAW AND VENUE
This Agreement shall be governed and construed in accordance with the statutes and laws of the State of California. The venue of any suit filed by either Party shall be vested in the state courts of the County of Santa Clara, or if appropriate, in the United States District Court, Northern District of California, San Jose, California.

23. SEVERABILITY CLAUSE
In case any one or more of the provisions in this Agreement shall, for any reason, be held invalid, illegal or unenforceable in any respect, it shall not affect the validity of the other provisions, which shall remain in full force and effect.

24. AMENDMENTS
This Agreement may only be modified by a written amendment duly authorized and executed by the Parties to this Agreement.

25. COUNTERPARTS
This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but both of which shall constitute one and the same instrument.

26. LIMITATION OF DAMAGES
Notwithstanding anything to the contrary, in any of the Contract Documents, neither Party shall be liable to the other for any consequential, indirect, incidental, special, liquidated, or punitive damages (including but not limited to loss of use, revenue or profits, inventory or use charges, cost of capital or claims of customers) howsoever caused.
[SIGNATURES ON FOLLOWING PAGE]
Agreement with Stephens Mechanical Corporation
Rev. 07-01-18

Page 7 ends

The partie s acknowledge and accept the terms and conditions of this agreement as evidenced by the following signatures of their duly authorized representatives.

CITY OF SANTA CLARA, CALIFORNIA
a chartered California municipal corporation
Approved as to Form:

D . 1 8 11 . Digitally signed by Daniel Ballin
a n I e a I n Dale: 2022.12.02 11 :06:44
-08'00'
Office of the City Attorney
City of Santa Clara
Afr) eev Batra
...,. f - 1ty _Manager
"CITY"
1500 Warburton Avenue
Santa Clara, CA 95050
Telephone: (408) 615-221 0
Fax: (408) 241-6771

STEPHENS MECHANICAL CORPORATION
a California corporation
Dated:
~~~~~==~----- -
8 y (Signature): ----4~"{,,.,,L-f--7'(,L..,.L~'-----"'L-=------- - Name: -----'-'-'-- ------- ------
Title : President and CEO
Principal Place of 497 Edison Court, Suite D
Business Address: Fairfield, CA 94534
Email Address: 2,[email protected],hensmec hanical.com
Telephone: (707) 747-5847
"CONTRACTOR"
Agreement with Stephens Mechanical Corporation
Rev. 07-01-18

Page 8 of 42 ends

The parties acknowledge and accept the terms and conditions of this agreement as evidenced by the following signatures of their duly authorized representatives.

CITY OF SANTA CLARA, CALIFORNIA
a chartered California municipal corporation
Dated: Approved as to Form: - ------ - ------
Office of the City Attorney
City of Santa Clara
"CITY"
Rajeev Batra
City Manager
1500 Warburton Avenue
Santa Clara, CA 95050
Telephone: (408) 615-2210
Fax: (408) 241-6771

STEPHENS MECHANICAL CORPORATION
a California corporation
Title: President and CEO
Principal Place of 497 Edison Court, Suite D
Business Address : Fairfield, CA 94534
Email Address : paul@stephensmechan ical.com
Telephone: (707) 747-5847
"CONTRACTOR "
Agreement with Stephens Mechanical Corporation
Rev. 07-01-18

Page 8 of 42 ends

EXHIBIT A

SCOPE OF SERVICES
The Services to be performed for the City by the Contractor under this Agreement are.

As needed millwright services including turbine inspection, maintenance, repair, and overhaul services as further described in this Exhibit A for the City's Electric Utility, Silicon Valley Power (SVP).

1. GENERAL

1.1. Contractor shall furnish all labor, materials, tools, equipment, and associated services necessary to provide Millwright Support and Turbine Inspection, Maintenance, Repair and Overhaul Services as detailed in Exhibit A.

1.2. Contractor shall perform both field and depot services.

1.3. Contractor shall be available to perform routine I scheduled and emergency services.

1.4. Each scope being quoted and performed on an as-needed basis should be considered turnkey including final testing and start up.

1.5. Contractor will manage and coordinate the service in accordance with the Original Equipment Manufacturer (OEM) standards and
recommendations, established maintenance cycle of the equipment, International Organizations for Standardization (ISO) requirements, generally accepted industry and manufacturer best practices, applicable equipment specifications, policies, procedures, and applicable federal, state or local regulations and laws.

1.6. Contractor shall secure approval from City before using alternate methods for performing services. Such as but not limited to:

1.6.1. Oils, lubricants, and parts tolerances other than those generally accepted by manufacturer

1.6.2. Method or order of disassembly or reassembly

1.6.3. Contractor shall maintain payment and/or performance bond equal the 100% of the value of the work authorization throughout the term of the agreement.

2. SERVICES TO BE PERFORMED

2.1. Turbine inspection, maintenance, repair, and overhaul services Agreement with Stephens Mechanical Corporation
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2.2. Perform inspections on GE Frame 5 Turbines, Vertical & Horizontal Hydroelectric Turbines, and Mitsubishi Steam Turbines; and other turbine technologies pursuant to Original Equipment Manufacturer (OEM) guidelines such as, but not limited to borescope and visual inspection, review of results and report on recommendations for specific maintenance and repair activities to be performed.

2.3. Prior to performance of services, review recommendations, improvements, and Technical Information Letters (TIL) to identify which should be implemented in the performance of work.

2.4. Review borescope results and plan for next borescope or any required maintenance.

2.5. Perform any required maintenance work defined in the Original Equipment Manufacturer (OEM) Operation and Maintenance Manual.

2.6. Perform scheduled maintenance on GE Frame 5 Turbines, Vertical & Horizontal Hydroelectric Turbines, and Mitsubishi Steam Turbines; and other turbine technologies such as, but not limited to:

2.6.1. Oil flush and replacement, clean oil tank, replace oil, and resolution of any outstanding Technical Information Letters (TIL) for equipment serviced

2.6.2. Implementation of recommendations included in product bulletins, service bulletins, and other OEM documentation

2.6.3. Perform any required on-site or shop maintenance in accordance with OEM Manuel or other documentation.

2.7. Scheduled maintenance timelines will be identified by SVP in each request for services.

2.8. Remedial Measures: Remedial measures are defined as services performed beyond normal O&M services to address issues discovered during inspections of the turbines including any services that may be performed to restore the system to optimal operating condition.

2.9. Perform repairs on GE Frame 5 Turbines, Vertical & Horizontal Hydroelectric Turbines, and Mitsubishi Steam Turbines, other turbine technologies and turbine auxiliary equipment including, but not limited to

2.9.1. Pump or motor repair or refurbishment

2.9.2. Bearing refurbishment or replacement,

2.9.3. Repair of system auxiliaries
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2.9.4. Replacement and repair of package and enclosure components

2.10. Perform minor and major overhauls on GE Frame 5 Turbines, Vertical & Horizontal Hydroelectric Turbines, and Mitsubishi Steam Turbines: and other turbine technologies including disassembly and reassembly of turbines and auxiliaries. Key features of an overhaul are: (a) complete tear down and inspection, (b) rebuild with new, refurbished, and serviceable parts as required, and (c) functionality and performance demonstration.

2.11. Perform turbine and generator alignments

2.12. Other Rotating Equipment Maintenance including, but not limited to:

2.12.1. Replacing/repairing rotating equipment and parts

2.12.2. Repair and replacement of pumps and motors

2.12.3. Aligning rotating equipment

2.13. Fabricate or install varying types of equipment or components including, but not limited to:

2.13.1. Turbines

2.13.2. Structural supports for equipment or components; and

2.13.3. Mounting adapters.

2.14. Supply parts as required to maintain, repair, and otherwise perform services including supply of specialized parts and materials

2.15. Procurement of Rotable or rebuilt equipment

2.16. Other millwright services including, but not limited to:

2.16.1. Non-Destructive Examination (NDE) services

2.16.2. Valve and actuator inspections and repairs

2.16.3. Coupling checks, repairs, and replacements.

2.16.4. Reverse engineering of parts.

2.16.5. Providing adequate part substitutions for obsolete parts.

2.16.6. Rigging and crane support.

2.16.7. Other mechanical work as needed.

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2.17. Assist City in developing and implementing routine, preventive and condition-based maintenance programs.

2.18. Institute comprehensive reporting procedures to ensure close communications with Customer

3. INCLUDED SERVICES

3.1. Project Management,

3.2. Providing logistical planning and personnel scheduling,

3.3. Managing major project evolutions and interfacing with SVP, and

3.4. Managing necessary subcontractors.

3.5. Contractor shall provide any certifications required by City associated with each service.

3.6. Waste Removal: Contractor shall be responsible for disposing of all hazardous material generated by the contractor during the performance of services under this agreement.

3. 7. Contractor shall recycle all scrap material.

3.8. Contractor shall be responsible for providing all required tools and equipment including shipping to SVP's site as required.

3.9. Contractor shall perform site safety audits at the City's request.

4. SERVICE LOCATIONS

4.1. Contractor services will primarily be performed in the City of Santa Clara at the following locations.

4.1.1. Donald Von Raesfeld Power Plant (DVR), 850 Duane Ave. Santa Clara, CA 95054;

4.1.2. Gianera Generating Station, 2339 Gianera St. Santa Clara, CA 95054; and

4.1.3. Cogen, 524 Robert Ave. Santa Clara, 95050

4.2. Contractor may be requested to perform services at the following remote locations:

4.2.1. Stony Creek Hydroelectric System near Orland, CA; Agreement with Stephens Mechanical Corporation
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4.2.2. Grizzly Hydroelectric Project System located in Plumas County, CA; and

4.2.3. Additional City and SVP facilities as needed.

5. PROCESS FOR REQUESTING AND APPROVING AS NEEDED MILLWRIGHT

SERVICES

5.1. When millwright services are needed, the City will request a quote from one or multiple contractors (Work Request).

5.2. Contractor shall submit a quote for the services requested. The quote shall include the following details:

5.2.1. The specific service(s) to be performed. Detail of the services should have a level of detail reflective of the scope, timeline, and cost of the specific project.

5.2.2. Estimated cost for the requested services, including:

5.2.2.1. Labor costs (prevailing wage and non-prevailing wage);

5.2.2.2. Project management costs (if applicable);

5.2.2.3. Subcontractors, including subcontractor DIR number;

5.2.2.4. Tools and materials;

5.2.,2.5. Rental Equipment (scaffolding, vehicles; crane rentals, etc.);

5.2.2.6. Applicable reimbursable expenses (travel; lodging; etc.) including the expected number of workers eligible for subsistence and travel related charges as outlined in Exhibit B;

5.2.2.7. Any additional costs (facilities trailer; tool trailer; shipping, etc.); and

5.2.2.8. Any drawings or documents required.

5.2.2.9. Proposed schedule to be approved by City. The schedule agreed upon between City and Contractor shall be the Established Shift as defined in Exhibit B.

5.2.2.10. Total not to exceed price

5.2.3. Items not included in the quote are assumed to be included in the hourly rate.

5.3. When requested by City, Contractor shall include a proposed project schedule including expected start and end dates. The project schedule Agreement with Stephens Mechanical Corporation
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shall indicate any activities, products, or materials that may impact the project timeline, including, but not limited to, lead times for material sourcing, shipping and receiving delays, or other sources of potential schedule risk. SVP and Contractor may negotiate final schedule which shall be included in final Work Authorization.

5.4. When requested by City, a project logistics plan for the site shall be included.

5.5. The City shall review the quote and, if there are no issues or concerns, City will approve the quote from the awarded contractor and provide written authorization for Contractor to begin work (Work Authorization).

5.6. The terms of this Agreement shall prevail over any and all contractor terms and conditions including, but not limited to any terms listed on a quote.

5.7. Except in the case of emergency work which shall follow the process in Section 5.10 or the circumstance described in Section 5.11.3, at no time shall Contractor begin work before the City has provided written authorization.

5. 7 .1. Written authorization by e-mail is acceptable.

5.7.2. Authorization may only be given by a Division Manager, Senior Division Manager, Assistant Director, Chief Electric Utility Operating Officer, or Chief Electric Utility Operating Officer or (email is acceptable).

5.8. If quotes are requested from multiple contractors, each contractor will be notified of award to the selected contractor.

5.9. City shall not be required to pay a deposit or any other form of pre payment prior to the Contractor beginning work.

5.10. Alternate authorization process for emergency work.

5.10.1. An emergency service shall be defined as an unforeseen event, circumstance, or combination thereof that the City reasonably determines to require immediate action, presents an ongoing danger to public health and safety, and/or imperils SVP facilities and equipment.

5.10.2. Emergency services may only be authorized, by an Assistant Director of the Electric Utility, Electric Utility Chief Operating Officer, or Chief Electric Utility Officer. (Written authorization by e-mail is acceptable.)

5.10.3. Emergency services may be approved verbally, where appropriate, only by the SVP staff identified above. When verbal authorization is Agreement with Stephens Mechanical Corporation
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given, Contractor shall follow up with City for written confirmation within three (3) calendar days.

5.10.4. When emergency services are required, Contractor shall send a quote to the City for the required services as soon as possible, but no later than three (3) business days after starting work. The quote shall be detailed in accordance with this Section 4 and shall also include any completed work.

5.11. Changes

5.11.1. Contractor shall notify the City immediately when a situation occurs that may result in a change to the quoted project cost. Contractor shall provide reason for the change specific to each Work Authorization.

5.11.2. In the event that unanticipated site conditions or other issues result in costs that exceed the approved quote, Contractor shall submit to the City an updated quote for review and approval from the City in advance of performing the work. Written authorization may only be provided by a Division Manager, Senior Division Manager, Assistant Director of the Electric Utility, Electric Utility Chief Operating Officer, or Chief Electric Utility Officer.

5.11.3. In the event that issues are identified that can be most efficiently and economically resolved while on site, changes may be approved verbally (in the field), by telephone, or e-mail by the following authorized individuals: Assistant Director of the Electric Utility, Electric Utility Chief Operating Officer, or Chief Electric Utility Officer.

Contractor shall provide an updated quote within two (2) business days so that such changes can be documented in a written authorization within four (4) business days.

5.11.4. Contractor shall not initiate any work which will extend past the term in Section 2 of the Agreement or exceed the maximum compensation in Section 6 of the Agreement.

6. REPORTING AND DOCUMENTATION

6.1. As required by each Work Authorization, Contractor shall provide regular status updates on services performed during the term of the agreement.

Depending on work activity, status updates may be required daily, weekly, or monthly at the direction of City.

6.2. Reports may include cost and schedule updates for services Contractor is providing to the City.

6.3. Information required in reports may include, but is not limited to the following:

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6.3.1. Pictures of job progress,

6.3.2. Serial number of all parts removed and installed,

6.3.3. Preliminary and final NDE reports,

6.3.4. All equipment data taken (as-found/as-left),

6.3.5. Material test reports as applicable,

6.3.6. Summary of job steps,

6.3.7. Mechanical test reports,

6.3.8. Drawings used to complete project,

6.3.9. New drawings as applicable, and

6.3.10. Any optional work completed.

6.3.11. Final project report for each turbine upon completion of work.

7. E-BUILDER

7.1. When required by City, Contractor shall use e-Builder for submission of data and documents throughout the term of this agreement, as requested by the City.

7.2. e-Builder is a web-based construction management application hosted by a-Builder, Inc. For certain projects to be defined by the City, a-Builder shall be the primary means of project information submission and management or as otherwise agreed upon with the City.
7 .3. The City will establish the Contractor's access to a-Builder by providing licenses to Contractor's personnel at City's cost. The Contractor's designated users will be required to set up their computers/systems to use e-Builder in accordance with the a-Builder User Training Guider. The City reserves the right to limit the licenses issued to Contractor in the future.

7.4. Contractor is required to obtain all necessary training to use the software.

The City will provide one classroom training or a web-based seminar. A training session is 1 - 2 hours.
7 .5. e-Builder is a web-based environment and therefore it is subject to the inherent speed and connectivity limitations of the Internet. The Contractor is responsible for its own connectivity to the Internet. e-Builder's response time is dependent on the Contractor's equipment, including processor speed, Internet access speed, etc. and current traffic on the Internet. The City will not be liable for any delays associated from the usage of a-Builder Agreement with Stephens Mechanical Corporation Page 16 of 42 Rev. 07-01-18
including, but not limited to: slow response time, down time periods, connectivity problems, or loss of information. The Contractor shall ensure connectivity to the e-Builder system whether at the home office or job site.

Under no circumstances will usage of e-Builder be grounds for a time extension or cost adjustment to the Contract.

7.6. Data entered in a collaborative mode (entered with the intent to share as determined by permissions and workflows within thee-Builder system) by the City and the Contractor will be jointly owned.

7.7. The Contractor is responsible for managing, tracking, and documenting the work to comply with the requirements of this Agreement. The City's acceptance via automated system notifications or audit logs extends only to the face value of the submitted documentation and does not constitute validation of the Contractor's submitted information.

7.8. At the City's sole discretion, project documents may be processed and distributed digitally over the internet or may be required to be presented in hard copy format.

7.9. While regular email may still be used for communication, when requested by the City, e-Builder shall be utilized as much as possible in connection with all document and information management required in the performance of projects where City has directed the use of e-Builder.

Contractor shall be responsible for scanning or otherwise converting to electronic format all project submittals and Contractor correspondence, drawings, sketches, etc., and uploading them to the e-Builder web site and shall be responsible for the validity of its information placed in e-Builder.

The Contractor shall utilize the existing forms and processes in e-Builder to the maximum extent possible. If a required form does not exist in e Builder, the Contractor shall include a form of its own or one provided by the City (if available) as an attachment to a submittal or process.

Documents and information to be submitted electronically include, but are not limited to:
7 .9.1. Correspondence;
7 .9.2. Meeting Minutes;

7.9.3. Submittals and Shop Drawings;

7.9.4. Product Data, reports, certifications, etc. must be submitted in PDF format. (If a sample is able to be scanned, it is requested a scanned PDF copy is submitted with the sample.);
7 .9.5. Requests for Information (RFl's);
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City Council and Authorities ConcurrentFebruary 21, 2023

City Council and Authorities Concurrent
February 21, 2023