REPORT TO COUNCIL
SUBJECT
Title
Approve Budget Modification No. 17 to Appropriate $503,384 of the Silicon Valley Clean Energy (SVCE) Noncompetitive Member Agency Grant Funds for the Fire Station 2 - New Construction Project
Report
GRANT SUMMARY
The Environmental Services Department (ESD), in collaboration with the Department of Public Works (DPW), applied for SVCE’s Noncompetitive Member Agency Grant. In December 2025, the City was awarded $503,384 (Attachment 1) in addition to the $1,000,000 previously awarded through SVCE’s Competitive Member Agency Grant for the Fire Station 2 project (RTC 25-0613, Attachment 2).
The combined $1,503,384 in grant funding will support the installation of a solar photovoltaic (PV) system and battery energy storage system (BESS) at the new Fire Station 2, enhancing the facility’s energy resilience. The competitive grant funding will also support a ribbon cutting ceremony, digital dashboard display and printed building electrification outreach materials.
SVCE developed the Noncompetitive Member Agency Grant 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 energy resilience.
The new Fire Station 2 will be an all-electric facility consistent with the City’s Climate Action Playbook goal of eliminating non-electric sources of power in municipal buildings upon rebuild or significant remodel (Play 2.2, Move 2.E). The addition of the noncompetitive grant funding will support solar PV and BESS installations serving approximately 16,836 square feet of the fire station building (Plays 1.2 and 1.3).
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 documents are under development for permitting and construction. The design phase is anticipated to be completed in mid-2026 including permitting, followed by construction bid advertising. Staff has worked with the architect to add in scope and 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 and Training Center with a phased approach to minimize impacts to ongoing emergency response operations and allow a seamless transition to the new fire station building. After the fire station is occupied, the old fire station will be demolished, allowing for space for the new Training Center to be constructed. Construction contract award is anticipated in late 2026.
3. Opening and ongoing operation - After opening of the new Fire Station 2 and Training Center, DPW will work with the Department of Public Safety to operate and maintain the new facility.
ESD will manage grant administration and reporting, coordinating with SVCE and DPW.
Granting Agency
SVCE is a community choice energy provider. SVCE is a community-owned agency that is governed by thirteen cities, including Sunnyvale. SVCE provides carbon-free electricity to its customers and develops programs and policies that support the electrification of buildings and transportation.
EXISTING POLICY
Sunnyvale Charter Section 1305
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.
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 $250,000 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.
Climate Action Playbook, Plays 1.2, 1.3, and 2.2 Increase Local Solar, Energy Storage and Support Electrification of Existing Buildings.
Acceptance of these grant funds supports 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 Noncompetitive Member Agency Grant. The City will receive funds on a reimbursement basis for approved costs up to $503,384.
Required Local Match: None
Increased Cost To City Upon Grant Termination: None
Budget Modification No. 17 has been prepared to appropriate $503,384 of the Silicon Valley Clean Energy (SVCE) Noncompetitive Member Agency Grant funds in Fund 3101 - Infrastructure Fund - General Fund Assets under Project 835890 - Fire Station 2 -New Construction.
Budget Modification No. 17
FY 2025/26
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Current |
Increase/ (Decrease) |
Revised |
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Infrastructure Fund - General Fund Assets |
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|
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|
Revenues |
|
|
|
|
Silicon Valley Clean Energy Noncompetitive Member Agency Grant |
$1,000,000 |
$503,384 |
$1,503,384 |
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Expenditures |
|
|
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835890 - Fire Station 2 - New Construction |
$40,474,517 |
$503,384 |
$40,977,901 |
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall 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.
STAFF RECOMMENDATION
Recommendation
Approve Budget Modification No. 17 to appropriate $503,384 of the Silicon Valley Clean Energy (SVCE) Noncompetitive Member Agency Grant Funds for the Fire Station 2-New Construction Project.
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
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
___ Contract under $50,000 or non-fiscal
_X_ Contract between public agencies
___ 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: Madeline Khair, Environmental Programs Manager
Reviewed by: Stephen Ping, Senior Engineer, Department of Public Works
Reviewed by: Ramana Chinnakotla, Director, Environmental Services Department
Reviewed by: Dennis Ng, Acting Director of Public Works
Reviewed by: Matt Paulin, Director of Finance
Reviewed by: Connie Verceles, Deputy City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Noncompetitive Member Agency Grant Agreement with application
2. Competitive Member Agency Grant: Decarbonization Track Agreement with application