Policy Watch: Week of 7/31

City of San Jose

Deferred to 8/22: Disposition and Development Agreement, Lease Amendment, and related actions for Insight Realty’s Museum Place mixed-use project

Staff are recommending deferral of this item to August 22, 2017, pending Council approval. Staff are recommending that Council take multiple actions related to development activity at West San Carlos Street and South Market Street at 180 Park Avenue, including:

  • Adopt a resolution certifying the Museum Place Mixed-Use Project Supplemental Environmental Impact Report and making certain findings concerning significant impacts, mitigation measures, alternatives, and adopting a statement of overriding considerations and mitigation monitoring and reporting program, all in accordance with the California Environmental Quality Act, as amended.
  • Adopt a resolution:
    1. Approving the Disposition and Development Agreement with Insight King Wah LLC for the development of a mixed-use office, hotel, residential, Tech Museum expansion, and garage project;
    2. Authorizing the City Manager to negotiate and execute all documents related to the transfer of the City property to Insight King Wah LLC for the mixed-use project; and
    3. Authorizing the City Manager to negotiate and execute a Lease Amendment with the Tech Museum of Innovation for the construction and operation of the expansion space for the Tech Museum.
  • Adopt a resolution approving Vesting Tentative Map No. T16-024 to consolidate 25 parcels into three parcels, and to subdivide one parcel into a mixed-use project consisting of approximately 306 residential condominium units and 244 commercial condominium units and the remaining two parcels will consist of the Tech Museum and Civic Auditorium, on an approximately 2.5 gross acre site, located on the northwest corner of West San Carlos Street and South Market Street (180 Park Avenue) (City of San José, Owner).
  • Adopt a resolution approving Site Development Permit and Special Use Permit No. SP17-031 to allow the demolition of Parkside Hall, and to allow the construction of a 24 story mixed-use development with approximately 19,000 square feet of ground floor retail, approximately 214,000 square feet of office, approximately 60,000 square feet of museum space, 184 hotel rooms, and 306 residential units, the removal of 20 ordinance-sized trees.

Where: San Jose City Council

When: August 8, 2017, 6:00pm

Link to agenda: http://sanjose.granicus.com/GeneratedAgendaViewer.php?event_id=9c215a3f-9fda-4152-a6ee-ad65f2985576

Amending Agreement with Allied Waste Services to resolve living wage dispute & increasing commercial solid waste service rates to account for recyclery workers’ negotiated wage increase

Staff are recommending that Council:

  • Approve the Cooperative Agreement and Fourth Amendment to the Franchises Agreement with Allied Waste Services of North America, LLC to resolve a dispute about the living wage requirements in the Commercial Solid Waste and Recyclables Collection Franchises Agreement for sorters and housekeepers at the Newby Island Recyclery; and
  • Adopt a resolution setting Maximum Commercial Solid Waste Services Rates in the City of San José pursuant to the Cooperative Agreement and Fourth Amendment to the Commercial Solid Waste and Recyclable Materials Collection Franchises Agreement between the City of San José and Allied Waste Services of North America, LLC, dba Republic Services, including the total costs for organic processing services.

Approval of the recommendation will increase the maximum commercial solid waste service rates for fiscal year 2017-2018 by 1.79 percent to provide funding required to implement the Recyclery Workers’ Wage as per the Cooperative Agreement between the City of San Jose and Republic Services.

The proposed maximum rates (with an effective date of July 1, 2017) are detailed in the resolution accompanying this report. The 2017-2018 annual revenue requirement amount is proposed at $60,279,537 per the terms of the Cooperative Agreement between the City of San Jose and Republic Services to provide for a Recyclery Workers’ Wage. This revenue requirement adds $2,574,305 to the $57,705,232 revenue requirement calculated for 2017-2018 per the Franchises Agreement methodology. The proposed additional $2,574,305 will be retained by Republic Services and is for a modified cost of living adjustment and a base rate adjustment to recyclables processing costs.

Where: San Jose City Council

When: August 8, 2017, 1:30pm

Link to item: multiple

Link to agenda: http://sanjose.granicus.com/GeneratedAgendaViewer.php?event_id=9c215a3f-9fda-4152-a6ee-ad65f2985576

Reviewing draft implementation plan for San Jose Clean Energy & establishing SJCE as a separate department

Staff are recommending that Council take several actions related to establishing “San Jose Clean Energy” as a distinct city department providing energy services for the City. Specific actions include:

  • Approval of an ordinance establishing San Jose Clean Energy and amending Title 2 of the San Jose Municipal Code to add a new department within the City of San Jose, the Community Energy Dept;
  • Review draft San Jose Clean Energy Implementation Plan and Statement of Intent;
  • Review draft of the San Jose Clean Energy staffing plan;
  • Review draft of the San Jose Clean Energy funding strategy; and
  • Review draft Community Advisory Committee framework.

The City Manager will return with final documents, an ordinance to add a new title to the San Jose Municipal Code —Title 26 establishing SJCE operation procedures, and ordinance to amend Title 4 to establish the San Jose Clean Energy Operating Fund, and budget actions for Council approval in late August 2017. Staff is targeting an April 2018 launch for the first phase of SJCE customers (i.e. municipal customers). Once the City Manager has made a final selection for the Director ofthe Community Energy Department, the candidate will be brought forward to the City Council for confirmation in closed session. It is anticipated that this will occur in September 2017

In May 2017, City Council approved proceeding with the establishment of a San Jose CCE, referred to as San Jose Clean Energy (SJCE), under a single-jurisdiction model as a separate City department. It also established the following guiding framework:

  • Rates: Offer at least one power mix option with a rate equal to or less than PG&E’s rates
  • Power Mix:
    • Offer at least one power mix option at 10 percent or more renewables than PG&E
    • Offer at least one power mix option offering that is 100 percent GHG-free energy
  • Programs:
    • Establish San Jose-specific renewable energy and energy-efficiency programs
    • Maintain, at minimum, low-income programs at the same level as PG&E programs
    • Develop local renewable energy projects
  • Risk Management: Pose minimal or no adverse impacts to the City’s General Fund

The initial start-up costs of approximately $5-6 million will be funded through the issuance of taxable commercial paper through the lease revenue commercial paper program. A separate City Council/San Jose Financing Authority memorandum will be brought forward in late August 2017 to seek the Council/Financing Authority approval ofthe commercial paper issuance for this purpose. The planned issuance ofup to $6.5-7.5 million is projected to cover the initial start-up costs and 18 months of capitalizing the interest and commercial paper costs. The initial start-up costs include staffing and consultant services costs, operating costs, commercial paper costs, SJCE bond (posted with the CPUC), the PG&E service fee deposit, and reserves. A separate working capital financing will be required to support the phased-in implementation. It is estimated that up to $50 million will need to be financed in 2017-2018 and 2018-2019 to fund the City’s capital requirements for operations, including deposits, reserves and working capital as described in the Implementation Plan, and to repay the initial start-up funding.

Where: San Jose City Council

When: August 8, 2017, 1:30pm

Link to item: http://sanjose.granicus.com/MetaViewer.php?view_id=&event_id=2696&meta_id=646496

Link to agenda: http://sanjose.granicus.com/GeneratedAgendaViewer.php?event_id=9c215a3f-9fda-4152-a6ee-ad65f2985576

Approving Winchester and Santana Row/Valley Fair Urban Village Plans, including General Plan amendments modifying Plan boundaries and land use designations

Staff are recommending that Council adopt a resolution approving the Winchester and Santana Row/Valley Fair Urban Village (UV) Plans, and a General Plan Amendment modifying Plan boundaries and General Plan land use designations. Specific amendments to the UV plans include establishing Stevens Creek Boulevard as an “Innovation Corridor,” prioritizing improvements to the I-280/Winchester pedestrian and bike overcrossing to ensure access to Santa Row and Valley Fair Urban Villages, encouraging landscaping to improve pedestrian environment in areas sited for commercial uses, encouraging privately maintained open spaces to be made fully accessible to the public, modifying land use map changing 660 S. Winchester Blvd from “Urban Village Commercial” to “Urban Village” and including incentives for developers to include onsite affordable housing for new projects.

Where: San Jose City Council

When: August 8, 2017, 6:00pm

Link to item: http://sanjose.granicus.com/MetaViewer.php?view_id=&event_id=2696&meta_id=646412

Link to agenda: http://sanjose.granicus.com/GeneratedAgendaViewer.php?event_id=9c215a3f-9fda-4152-a6ee-ad65f2985576

Approving Steven Creek Urban Village Plan, including General Plan amendments modifying Urban Village boundary and land use designations

The Planning Commission voted 6-0-1 (Commissioner Allen absent) to consider the Envision San José 2040 General Plan Final Program Environmental Impact Report and its supplemental report in conformance with CEQA. The Commission is recommending that Council adopt a resolution approving the Stevens Creek Urban Village Plan, including incorporating modifications to the Stevens Creek Urban Village boundary and land uses as shown on the Land Use Plan into the Envision San Jose 2040 General Plan Land Use/Transportation Diagram; including staff’s recommended text modifications to the pipeline policy (LU-1.7), movement of the Setback & Stepbacks Standard #3 to a guideline, addition of a standard for architectural projections and roof top equipment, and addition of a definition for the term commercial use.

Should the City Council approve the Urban Village Plan as recommended by the Planning Commission and staff, any proposed new commercial development within the Village boundaries would be analyzed for consistency with goals, policies, standards, and guidelines of the Urban Village Plan. Residential and residential mixed-use projects must wait until the residential capacity of Horizon 3 of the General Plan becomes available in order to move forward with entitlements. Alternatively, residential and residential mixed-use projects may use the residential pool policy in the General Plan that allows the City Council to approve residential development ahead of the opening of a Horizon.

Where: San Jose City Council

When: August 8, 2017, 6:00pm

Link to item: http://sanjose.granicus.com/MetaViewer.php?view_id=&event_id=2696&meta_id=646462

Link to agenda: http://sanjose.granicus.com/GeneratedAgendaViewer.php?event_id=9c215a3f-9fda-4152-a6ee-ad65f2985576

 

Submitting letter to Santa Clara County regarding recommendations for Measure A implementation

Staff are recommending that Council authorize the Director of Housing to submit a letter to the County of Santa Clara reflecting the City’s recommendations regarding Measure A implementation.

Voters of the County of Santa Clara County approved the landmark Measure A in November 2016 to support new affordable housing. Measure A authorizes the County to issue $950 million in general obligation bonds to be repaid by a new parcel tax for affordable housing.

The City’s role in Measure A-funded developments depends on whether it is a lender, a ground lessor, and/or a multifamily housing revenue bond issuer for the development. If the City is involved as a lender, the Housing Department will fully underwrite the transactions’ financial, physical, and operational feasibility, and will help to shape and drive the developers’ community outreach plan and execution. Regardless of whether the City contributes resources to Measure A-funded transactions, the City will be in control of land use entitlement approvals for all Measure A developments in San Jose. The Housing Department and Department of Planning, Building and Code Enforcement (“PBCE”) together will be actively involved in the siting and approval of these projects.

The City’s recommendations to the County address rapid use of funds to support the County’s lowest income, homeless, and most vulnerable residents; request for San Jose to serve as co-reviewer of all Measure A funded developers’ Community Engagement Plans; strengthened siting criteria to ensure equity and appropriate impacts on local area depending on socio-economic conditions; a preference for the City to be issuer of all bonds funding affordable housing developments located in San Jose; a preference to be owner and ground lessor to Measure A-funded affordable housing developments within San Jose; a suggestion to convene local government representatives to discuss and coordinate affordable housing production countywide; a suggestion to work cooperatively with the County to identify developments that may be candidates for Affordable Housing and Sustainable Communities (“AHSC”) funding; flexible County underwriting guidelines in order to permit subordinate lenders to enforce their own rules and guidelines; a suggested minimum of one-third of units within mixed-income developments to serve former chronically homeless or rapid rehousing residents; provision of on-site services for residential developments serving formerly homeless; regular County reporting on affordability restrictions and approved services plans for all developments within San Jose; coordinated compliance monitoring – by contracting out to City for Measure A-funded development projects; development and use of a universal application for affordable housing so that residents can fill out one application to be eligible for any Measure A-funded development; careful development and implementation of a moderate income and first-time homebuyer strategy, given that Measure A funds are uniquely available for these populations.

The County issued revised Draft Loan Program Guidelines on February 7, 2017, May 9, 2017 and the most recent draft on July 5, 2017. Public comment is open until July 30, 2017. The County Board of Supervisors is scheduled to consider the Guidelines at its August 15, 2017 meeting.

Where: San Jose City Council

When: August 8, 2017, 1:30pm

Link to item: http://sanjose.granicus.com/MetaViewer.php?view_id=&event_id=2696&meta_id=646488

Link to agenda: http://sanjose.granicus.com/GeneratedAgendaViewer.php?event_id=9c215a3f-9fda-4152-a6ee-ad65f2985576

 

City of Milpitas

Extending temporary moratorium on demolition of affordable housing

Staff are recommending that Council hold a public hearing to adopt an Interim Urgency Ordinance extending the temporary moratorium on the issuance of demolition permits for structures providing affordable housing.

On May 22, 2017, Milpitas City Council participated in a study session on affordable housing issues within the City. After hearing from staff and the public, Council directed staff to research and bring back options for City action to facilitate the preservation of existing and production of new affordable housing in Milpitas. Subsequently, at the June 20, 2017 City Council meeting, the City Attorney’s office gave a presentation on some options for protecting existing affordable housing, including an urgency ordinance imposing a temporary moratorium on the issuance of demolition permits to structures that provided affordable housing as of that date.

The ordinance:

  • Imposed a moratorium on the issuance of demolition permits for structures that currently provide affordable housing units in order to preserve existing affordable housing stock while the City evaluates and takes action on comprehensive affordable housing preservation and production mechanisms.
  • Applied to affordable housing units, which (for purposes of the ordinance) are defined as residential dwellings with rental rates either (1) restricted by a recorded document to levels affordable to extremely low, very low, lower, or moderate income households, or (2) subsidized by the state or federal government. It provided that no structure containing such units would be permitted to be demolished during the term of the urgency ordinance, with a few exceptions.
  • Offered the potential for relief from the moratorium in four circumstances: where (1) projects were approved prior to the adoption of the ordinance, (2) structures were found to be unsafe or a public nuisance, (3) projects could demonstrate that the issuance of a demolition permit would not result in the loss of affordable housing units (through, for example, the planned replacement of such units by a new development on the site of the existing affordable housing site), or (4) through the use of a petition process, an applicant demonstrated that the application of the ordinance to the applicant’s project would be unlawful.

The temporary moratorium put in place on June 20 by Ordinance No. 294 will expire by operation of law 45 days after its adoption (August 4, 2017). If Council wishes to extend the moratorium beyond that date, it must affirmatively vote to do so by a 4/5 majority. An extension may last for up to a maximum of ten months and fifteen days before it becomes subject to the need to extend again. In no event could an urgency ordinance last more than two years. Staff recommends the City Council extend the moratorium ten months and fifteen days. The extension presented provides that it would expire either at the end of said period, or earlier, if the City elects to take long-term action rendering further operation of the moratorium unnecessary.

Where: Milpitas City Council

When: August 1, 2017, 7:00pm

Link to item: http://www.ci.milpitas.ca.gov/_pdfs/council/2017/080117/attachment.pdf

Link to agenda: http://www.ci.milpitas.ca.gov/_pdfs/council/2017/080117/Agenda.pdf

 

VTA

Board to support Caltrain sales tax ballot measure

This item would indicate support for a ballot measure enacting a sales and use tax up to 0.125% (1/8 cent) to help create a dedicated funding source for Caltrain which currently relies on contributions from transit systems in the West and South Bay and fare revenue. The measure would appear on ballots in City and County of San Francisco and the Counties of San Mateo and Santa Clara. The net revenues to be used by Caltrain for operating and capital purposes. This regional measure requires a 2/3 voter approval.

Since 1992, Caltrain has relied on farebox revenue, various grants and contributions from the three funding partners to support its operations and annual capital program. The partner shares are fixed by formula. At various times over the past several years one or the other of the partners, who fund this through their local transit operations, experienced financial challenges and been unable to provide the level of funding Caltrain staff requested. With an annual operating budget of $150 million and a capital budget of $65 million the majority share of Caltrain’s operating budget is derived from farebox returns, parking and rentals. The combined partner share of the operating budget is 14%. The combined partner share of the annual capital budget is 23%. VTA’s contribution is $9 million for the operating budget and $5 million for the capital budget. This dedicated sales tax would introduce greater financial stability for Caltrain and is projected to generate approximately $100 million a year.

Where: VTA Board of Directors

When: County Building 70 West Hedding St, August 3rd 5:30PM

Link to agenda:   http://vtaorgcontent.s3-us-west-1.amazonaws.com/Site_Content/bod_080317_packet.pdf

 

City of Cupertino

Deciding whether to allow 3 General Plan amendment apps to proceed – 2 hotels & Oaks mixed-use

Staff are recommending that Council adopt a resolution formally determining whether to authorize or deny 3 applicants for General Plan amendments.

City Council authorization is required prior to allowing submission of an application for General Plan Amendments and staff commencing environmental and project review. Council evaluates General Plan Amendment proposals as follows prior to determining whether to authorize or not:

  • GPA applications would be considered by the Council twice every year;
  • The Council may allow applications to be re-considered at a continued hearing by the City Council to submit revisions/additional information within 30 days.
  • Applications that are rejected would wait for a year before re-applying (i.e. they would not be allowed to re-apply in the six-month subsequent cycle).

The deadline to apply for consideration in the 2017 Second Cycle by the City Council was May 15, 2017. The City received three applications for General Plan amendments. These include proposals for:

  1. A hotel at Cupertino Village (at the Duke of Edinburgh and adjacent commercial building),
  2. A hotel at the Good Year Tire site (next to Homestead Square), and
  3. Two mixed-use alternatives to replace the Oaks Shopping Center (at Highway 85 and Stevens Creek Boulevard).

Where: Cupertino City Council

When: August 1, 2017, 5:00pm

Link to item: https://cupertino.legistar.com/LegislationDetail.aspx?ID=3111588&GUID=F921C2B9-7B59-490F-ADD3-647699196C14&Options=&Search=

Link to agenda: https://cupertino.legistar.com/View.ashx?M=A&ID=558309&GUID=CF35A017-F649-40FD-97D7-AF3E89C8EB82

Reviewing General Plan amendment app for 185-room boutique hotel

Council will determine whether to authorize an application from Michael Strahs (Kimco Realty) for a General Plan amendment. The application is to demolish two commercial buildings that are currently part of the Cupertino Village shopping center at 10765 N. Wolfe Road in order to construct a full-service boutique hotel with 185 rooms, conference space, and restaurant.

Where: Cupertino City Council

When: August 1, 2017, 5:00pm

Link to item: https://cupertino.legistar.com/LegislationDetail.aspx?ID=3111736&GUID=F525CCBA-244D-4353-9559-7E89D5F398A4&Options=&Search=

Link to agenda: https://cupertino.legistar.com/View.ashx?M=A&ID=558309&GUID=CF35A017-F649-40FD-97D7-AF3E89C8EB82

 

Reviewing General Plan amendment app for 156-room hotel

Staff are recommending that Council utilize the criteria established in the above resolution to determine whether to authorize an application from Claudia Bono (De Anza Properties) for a General Plan amendment. The application is to redevelop the Goodyear Tire site at 10931 N. De Anza Boulevard by demolishing 8,323 square feet of an automobile service station and construct a 156-room, five-story hotel, approximately 58’ in height with over 5,000 square feet of conference space and restaurant.

Where: Cupertino City Council

When: August 1, 2017, 5:00pm

Link to item: https://cupertino.legistar.com/LegislationDetail.aspx?ID=3111729&GUID=908A5B65-7451-4CB3-B876-EC6D1884080F&Options=&Search=

Link to agenda: https://cupertino.legistar.com/View.ashx?M=A&ID=558309&GUID=CF35A017-F649-40FD-97D7-AF3E89C8EB82

 

Reviewing General Plan amendment app for KT Urban redevelopment of Oaks Shopping Center into 1 of 2 mixed use scenarios – up to 600 units, hotel, cinema, office and/or retail

Staff are recommending that Council utilize the criteria established in the above resolution to determine whether to authorize an application from KT Urban (Mark Tersini) for a General Plan amendment. The application is to demolish an existing 71,000+ sf commercial shopping center and construct one of two alternative mixed-use development scenarios at the Oaks Shopping Center site. Both alternatives would include 69,500 square feet of commercial space, a 27,500 square feet movie theater, 42,000 square feet of ground floor retail space, a 4,000 square foot community center transit center, and three levels of underground parking, and some amount of below-market rate housing units. In addition, Alternative 1 would include 605 residential units while Alternative 2 would include 270 residential units, a 170-room hotel, and 280,000 square feet of office space.

Where: Cupertino City Council

When: August 1, 2017, 5:00pm

Link to item: https://cupertino.legistar.com/LegislationDetail.aspx?ID=3111737&GUID=B5F3FCA2-848C-41F4-839E-E1BD9A2F3DEB&Options=&Search=

Link to agenda: https://cupertino.legistar.com/View.ashx?M=A&ID=558309&GUID=CF35A017-F649-40FD-97D7-AF3E89C8EB82

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