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Legislative Public Meetings

File #: 25-0613   
Type: Report to Council Status: Consent Calendar
Meeting Body: City Council
On agenda: 7/1/2025
Title: Approve Budget Modification No. 1 to Appropriate $1,000,000 of the Silicon Valley Clean Energy (SVCE) Competitive Member Agency Grant: Decarbonization Track Funds for the Fire Station 2 Energy Resilience Project and Educational Dashboard
Attachments: 1. SVCE Standard Grant Agreement Template with Resources (Decarb) SUNNYVALE

REPORT TO COUNCIL

SUBJECT

Title

Approve Budget Modification No. 1 to Appropriate $1,000,000 of the Silicon Valley Clean Energy (SVCE) Competitive Member Agency Grant: Decarbonization Track Funds for the Fire Station 2 Energy Resilience Project and Educational Dashboard

 

Report

GRANT SUMMARY

The Environmental Services Department (ESD), in collaboration with the Department of Public Works (DPW), applied for SVCE’s Competitive Member Agency Grant: Decarbonization Track. In April 2025, the City was awarded $1,000,000 for the addition of a solar photovoltaic (PV) system and a battery energy storage system (BESS) to support the energy resilience of the new Fire Station 2. The funding will also support the installation of an educational digital display in the facility to showcase the all-electric attributes and energy resilience features of the station.

 

SVCE developed the Competitive Member Agency Grant: Decarbonization Track program to fund capital projects for building and transportation electrification and/or energy resilience projects that demonstrate the feasibility of all-electric technology to the community within their service territory. Grant funds support capital investment in: electric vehicles and infrastructure; building electrification; or building & electric vehicle infrastructure (EVI) energy resilience. Each project must also have a community education and public access plan to demonstrate both the direct emission reductions from the project and the potential for replicability at other sites.

 

Sunnyvale applied for the installation of solar PV and BESS at the new Fire Station 2 and a digital dashboard display to be supported through the grant program. The new fire station will be an all-electric building following the City’s Climate Action Playbook goal of achieving all-electric new construction (Play 2.2). The competitive grant funding will support the purchase of a solar PV system and BESS to support roughly 15,845 square feet of the building’s energy needs and an educational digital dashboard display to showcase the all-electric attributes and energy resilience features of the fire station (Play 1.2 and 1.3). These components of the building will utilize $990,000 of the grant. City staff time is ineligible to be reimbursed through this grant.

 

DPW will oversee the capital project, which includes three phases:

 

1.                     Design - The project is actively under design and is developing documents for permitting and construction. The design phase is anticipated to be completed in early 2026, followed by construction bid advertising. Staff is working with the architect to add in scope and to ascertain overall schedule impacts to both design and construction related to incorporating solar panels, a battery system, and an overall micro-grid system to integrate with an emergency generator into the project.

2.                     Construction - Once the construction contract is awarded, DPW staff will oversee and manage the construction of Fire Station 2 with a phased approach to minimize impact to ongoing emergency response operations and allow a seamless transition to the new fire station. After the fire station is occupied, the old station will be demolished, allowing for space for the new joint training center to be constructed. Construction contract award is anticipated in mid to late 2026.

 

3.                     Opening and ongoing operation - After opening of the new Fire Station 2 and Joint Training Center, DPW work with the Department of Public Safety to operate and maintain the new facility.

 

ESD will oversee the development and implementation of the educational materials showcased on the digital dashboard display. This component of the plan will utilize up to $10,000 of the grant funds. The educational element of this project has three components:

 

1.                     Digital display: will feature an ongoing slideshow of the electric components of the building, highlight benefits to the community, and building energy information.

2.                     Printed Materials: will exemplify the benefits of home and business electrification and energy resilience. The educational outreach materials will be folded into ESD operations and staffing; no additional staff resources are required.

3.                     Ribbon Cutting Ceremony: will highlight the project’s successes in being all-electric and the energy resilience features funded through this grant. Local community members will be invited to attend the ribbon cutting ceremony along with regional partners, including SVCE, the media and Sunnyvale elected officials.

 

In addition to the competitive grant funding, ESD and DPW will submit a proposal to stack the competitive funding with a portion of the $594,923 of SVCE’s Non-Competitive Member Agency Grant funding allocated specifically for the City of Sunnyvale. Stacking the two funding streams will supplement the additional expected costs for the solar PV, BESS and Battery Enclosure. Project proposals for SVCE’s Non-Competitive Member Agency Grant are due December 5, 2025. If SVCE approves that proposal, ESD and DPW staff will submit another request to Council to approve a budget modification to appropriate the non-competitive grant funds.

 

ESD will be responsible for the management of the grant and coordination between SVCE and the two departments implementing the grant. ESD will also lead the development and publicizing of the outreach and education materials.

 

Granting Agency

Silicon Valley Clean Energy (SVCE) is a community choice energy provider. SVCE is a community-owned agency that thirteen cities, including Sunnyvale, govern. SVCE provides carbon-free electricity to their customers and develops programs and policies that support electrification of buildings and transportation.

 

EXISTING POLICY

Council Policy 7.1.5 Donations, Contributions and Sponsorships:

The City Manager may apply for grants of any dollar amount but shall notify the Council when grants are being pursued. Council approval of a budget modification to appropriate grant monies is required before funds can be expended by staff. Such a budget modification shall include the use to which the grant would be placed; the objectives or goals of the City which will be achieved through use of the grant; the local match required, if any, plus the source of the local match; any increased cost to be locally funded upon termination of the grant; and the ability of the City to administer the grant. For grants under the amount of $5,000 that do not have any external reporting requirements or any local match requirement, Council approval of a budget modification is not required. The City Manager is authorized to accept and administratively appropriate the grant funds.

 

This grant does not meet all of the criteria to be administratively appropriated by the City Manager; therefore a budget modification is required.

 

Pursuant to Sunnyvale Charter Section 1305, at any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by affirmative votes of at least four members so as to authorize the transfer of unused balances appropriated for one purpose to another, or to appropriate available revenue not included in the budget.

 

Climate Action Playbook, Plays 1.2, 1.3 and 2.3 Achieve All-Electric New Construction and Play 5.1 Enhance Community Awareness and Engagement:

Acceptance of these grant funds support the goals of the City’s Climate Action Playbook to help reduce the greenhouse gas emissions generated in the Sunnyvale community.

 

ENVIRONMENTAL REVIEW

This activity does not require environmental review because it can be seen with certainty that there is no possibility that it may have a significant effect on the environment. CEQA Guidelines Section 15061(b)(3).

 

FISCAL IMPACT

Funding Source: Silicon Valley Clean Energy Member Agency Grant. The City will receive funds on a reimbursement basis for approved costs up to $1,000,000.

 

Required Local Match: None

 

Increased Cost To City Upon Grant Termination: None

 

Budget Modification No. 1 has been prepared to appropriate SVCE Competitive Member Agency Grant: Decarbonization Track funds in the amount of $1,000,000 for solar PV and BESS to Project 835890 - Fire Station 2-New Construction.

 

Budget Modification No. 1

FY 2025/26

 

 

Current

Increase/ (Decrease)

Revised

Infrastructure Fund

 

 

 

Funding Source Category

 

 

 

Silicon Valley Clean Energy Competitive Member Agency Grant: Decarbonization Track in 835890 - Fire Station 2-New Construction

$0

$1,000,000

$1,000,000

 

 

 

 

Funding Use Category

 

 

 

835890 - Fire Station 2-New Construction

$40,292,906

$1,000,000

$41,292,906

 

PUBLIC CONTACT

Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, and at the Sunnyvale Public Library. In addition, the agenda and this report are available at the NOVA Workforce Services reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.

 

RECOMMENDATION

Recommendation

Approve Budget Modification No. 1 to appropriate $1,000,000 of the Silicon Valley Clean Energy (SVCE) Competitive Member Agency Grant: Decarbonization Track funds for the Fire Station 2 Energy Resilience Project and Educational Dashboard.

 

 

 

Levine Act

LEVINE ACT

The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html <http://www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html>

 

An ”X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:

 

SUBJECT TO THE LEVINE ACT

___ Land development entitlements

___ Other permit, license, or entitlement for use

___ Contract or franchise

 

EXEMPT FROM THE LEVINE ACT

___ Competitively bid contract*

___ Labor or personal employment contract

___ Contracts under $50,000 or non-fiscal

_X_ Contracts between public entities

___ General policy and legislative actions

 

*“Competitively bid” means a contract that must be awarded to the lowest responsive and responsible bidder.

 

 

Staff

Prepared by: Christina Raby, Environmental Engineering Coordinator

Reviewed by: Stephen Ping, Senior Engineer, Department of Public Works

Reviewed by: Madeline Khair, Environmental Programs Manager

Reviewed by: Ramana Chinnakotla, Director, Environmental Services Department

Reviewed by: Chip Taylor, Director, Department of Public Works

Reviewed by: Matt Paulin, Director of Finance
Reviewed by: Sarah Johnson-Rios, Assistant City Manager

Approved by: Tim Kirby, City Manager

ATTACHMENTS  

1. Competitive Member Agency Grant: Decarbonization Track Agreement with application