Policy Watch: Week of 11/20

City of San Jose

Approving five-year airport concession agreement with PRI-San Jose LLC

On April 19, 2017, the City released an RFP for a prime operator to develop, design, fund, construct, operate, and manage a Retail Merchandising Unit (“RMU”) Concession Program at the Airport. Nine companies expressed interest, but only one, PRI, submitted a proposal. On August 25, 2017, the City sent notice to PRI that the City had accepted its proposal and intended to award the agreement to PRI.

Staff recommend approving the Airport Retail Merchandising Unit Concession Agreement with PRI-San Jose, LLC (PRI) for a term of five years from the Commencement Date, with a concession fee payable to the City of San Jose of the greater of a minimum annual guarantee (“MAG”) or an annual percentage fee of 2.25% for a minimum of $286,695 over five years.

The Concession Agreement includes the Airport Living Wage Ordinance and Concessionaire’s Labor Peace Assurances provision.

Where: San Jose City Council

When: November 28, 2017, 1:30 pm

Link to item: http://sanjose.legistar.com/gateway.aspx?M=F&ID=8e5cf9a1-b8ae-4046-83c6-ed5292630fd4.pdf

Link to agendahttps://sanjose.legistar.com/View.ashx?M=A&ID=561255&GUID=65875E09-19B4-4896-88EC-ADE083F66AEA

 

Reviewing and providing feedback on proposed approach to Urban Village implementation

Staff are recommending that Council accept the progress report on the implementation of the Urban Village component of the Envision San José 2040 General Plan, and provide comments on the proposed approach for implementation.

The Envision San Jose 2040 General Plan includes Major Strategy #5 – Urban Villages, as one of its primary strategies to accommodate projected job and population growth. This Strategy includes a policy framework to transform many of San Jose’s auto-oriented commercial corridors and nodes into more urban, walkable and mixed use communities, where many of one’s daily needs could be met by walking, biking, riding transit, or making a shorter drive. To achieve the General Plan’s Regional Employment Center, Measurable Sustainability/Environmental Stewardship, and Fiscally Strong City Major Strategies, the Urban Village Strategy plans for significant employment growth to be added to the existing commercial uses within these established commercial areas, while also planning for the integration of significant high density and mixed use residential development.

California state law limits the authority of local government to raise taxes, establish and increase fees, and require other exactions from property owners and developers. Upon review of various appropriate methods of funding development related urban village improvements, staffs recommended approach is to establish an Urban Village Zoning District that would establish minimum design standards and identify allowable uses. Given the diversity of built environments in San Jose, there would likely not be a one-size fits all zoning district, but instead two UVC zoning districts. The first would be crafted for Villages largely developed prior to the second world war that have an existing urban form. The second would be crafted for more suburban Villages, which are beginning the process of transitioning into a more urban landscape. The allowable uses under these Urban Village zoning districts would generally align with those uses allowed in the existing commercial zoning districts and would not allow residential uses; staff will, however, explore an approach that will allow deed restricted affordable housing within a UVC zoning district, precluding the need for a rezoning.

Staff also proposes the creation of an Urban Village Mixed-Use Zoning District (UVMU). This district would be similar in design standards and allowable uses to the corresponding Urban Village Commercial district, but would allow residential in a mixed-use format. Staff are not proposing, however, to initiate the rezoning of private property to this district. The rezoning of property to a UVMU district would occur as part of the entitlement process as individual mixed-use residential projects come forward.

Additionally, staff are proposing a set of additional required contributions from residential mixed-use development within urban village areas, including a surcharge on base impact fees, on-site village enhancements, and community facilities districts off-site from urban village zoning areas.

This item was originally introduced on May 23, 2017; Mayor Liccardo’s memo asked to defer it to August, and then it was postponed until November. As stated in the original memo, the timeline for the first step is to bring General Plan Text Amendments to Council this fall, as part of the General Plan Annual Review. Between the Summer and Fall of 2017, staff will be bring to Council the implementation strategies for the East Santa Clara, Stevens Creek, Winchester, and Santana Row/Valley Fair Urban Villages, as well updated strategies, for Little Portugal and Roosevelt Park. For the second step, staff anticipates bringing the proposed new zoning districts to the Council Committee for Community and Economic Development, along the codified requirements for residential mixed use development, in the Spring of 2018.

Where: San Jose City Council

When:  Nov. 28, 2017, 1:30 pm

Link to item: http://sanjose.legistar.com/gateway.aspx?M=F&ID=abb3603c-e6da-498d-9578-2157ed421ee2.pdf

Link to Liccardo memo: http://sanjose.legistar.com/gateway.aspx?M=F&ID=d3c6195c-5742-4182-80ec-0aaa4a123e4c.pdf

Link to agenda: https://sanjose.legistar.com/View.ashx?M=A&ID=561255&GUID=65875E09-19B4-4896-88EC-ADE083F66AEA

 

Direction on Greenprint and assessing potential revenue sources such as bonds, parcel or soda taxes & others

Staff recommends accepting report on Greenprint update and the funding feasibility. Documents that will provide direction for the Department of Parks, Recreation and Neighborhood Services (PRNS) over the next 20 years, including both aspirational goals and a workplan to deliver them and identified 12 key topics: Community Engagement Themes • Equitable Park Access • Access to Nature • Conservation and Resilience • Interconnected Park System • Regional Parks as Iconic Destination Points (Grand Parks) • Recreation Facility Needs • Support Public Fife • Methodology to Evaluate Park Quality • Approach to Plants/Landscape • Age-appropriate, Healthy, Fun, Programs and Services • Need for Reinvestment.

PRNS is exploring alternative sustainable funding sources which can support maintenance, operations, programs and projects. The initial Report for the Funding Feasibility Study is attached to this memorandum & provides initial estimates of the revenues that could be generated through several of the most popular funding options, such as general obligation bonds, parcel and soda taxes, special financing districts, and also includes overviews of less common financing tools.

FM3 has conducted public opinion polling, and analysis of the results is now underway. The polling questions were designed to evaluate public appetite for a variety of taxation levels, support for priorities, and general electability of key mechanisms.

Where: San Jose City Council

When: November 28, 2017, 1:30 pm

Link to item:  http://sanjose.legistar.com/gateway.aspx?M=F&ID=9bb948e2-1620-408c-be9f-6730d61aa9dd.pdf

Link to agenda: https://sanjose.legistar.com/View.ashx?M=A&ID=561255&GUID=65875E09-19B4-4896-88EC-ADE083F66AEA

 

City of Cupertino

Approving consultant agreements to prepare a new Specific Plan & EIR for Vallco / Sand Hill Properties

On October 4, 2017, Reed Moulds, Managing Director of Sand Hill Property Company, submitted a letter to request that the City of Cupertino initiate a specific plan process for the Vallco Shopping District Special Area. The letter further requested a suspension of work on the previous project submitted for the site and stated that Sand Hill Property Company would not submit any new project design until adoption of a Specific Plan.

Staff recommends that the City Council:

  1. Authorize the City Manager to:
    1. Execute a consultant agreement with Opticos Design to provide services to the City for the preparation of a specific plan for the Council’s consideration, for an amount not to exceed $850,000.
    2. Execute a consultant agreement with David J. Powers and Associates, Inc. to provide services to the City for the preparation of an Environmental Impact Reports (EIR) for the Council’s consideration, for an amount not to exceed $821,940.
    3. Execute a consultant agreement with EPS to provide services to the City for economic impact analysis for an amount not to exceed $147,000.
    4. Negotiate and execute additional future amendments to the agreements listed in Items 1a. – c. above, up to a total of $2,405,549, which includes the contract amounts listed above, 15% administrative fee on consultant contracts and a 15% contingency, to the extent that funds are appropriated for the amendments and the total expenditures are cost-recovered from the applicant.
  2. Approve an increase to the Fiscal Year 2017-18 Planning and Community Development – Mid to Long Term Planning program budget of $2,405,549.

Where: Cupertino City Council

When: 11/21/2017 6:45 pm, 10350 Torre Avenue

Link to item: https://cupertino.legistar.com/LegislationDetail.aspx?ID=3213438&GUID=DFD1108D-E142-4AB8-9351-34EEF14430B4&Options=&Search=

Link to agenda:  https://cupertino.legistar.com/MeetingDetail.aspx?ID=508242&GUID=E436F2EF-88B1-4976-8054-F1B8B2543D29&Options=info&Search=

 

City of Milpitas

Appointment of City Manager

City Council will take a closed session action to appoint a new city manager.

Where:   Milpitas City Council

When:  11/21, 7:00pm at Milpitas City Hall

Link to item:  n/a

Link to agenda:   http://www.ci.milpitas.ca.gov/_pdfs/council/2017/112117/Agenda.pdf.

 

Approving staff time to study feasibility of Enhanced Infrastructure Financing Districts (EIFD’s)

Staff are recommending that Council authorize staff to spend more than fours hours of staff time to study the feasibility of establishing Enhanced Infrastructure Financing Districts (EIFD’s) within the City of Milpitas and return to Council with a report.

Where: Milpitas City Council

When: November 21, 2017, 7:00pm

Link to item: http://www.ci.milpitas.ca.gov/_pdfs/council/2017/112117/attachments.pdf

Link to agenda: http://www.ci.milpitas.ca.gov/_pdfs/council/2017/112117/Agenda.pdf

 

Authorizing the operation of four PACE programs in Milpitas – including Ygrene, HERO, CSCDA, and Figtree

Staff are recommending that Council adopt six resolutions authorizing the operation of PACE Clean Energy financing programs in the City of Milpitas, and authorize the City Manager to execute agreements with each program as necessary to implement the programs.

The resolutions include:

  1. Adopt two resolutions authorizing the inclusion of properties within the City’s jurisdiction in the Ygrene program through the California Home Finance Authority Community Facilities District No. 2014-1 (Clean Energy) under SB 555 and under AB 811 and approving an amendment to the California Home Finance Authority/Golden State Finance Authority’s Joint Powers Agreement (formerly the California Rural Home Mortgage Finance Authority) adding the City of Milpitas as an Associate Member, and authorize the City Manager to execute the amendment to the California Home Finance Authority/Golden State Finance Authority’s Joint Powers Agreement adding Milpitas as an Associate Member.
  2. Adopt a resolution authorizing the inclusion of properties within the City’s jurisdiction in the California Home Energy Renovation Opportunity Program and approving an amendment to the Western Riverside Council of Governments Joint Powers Agreement adding the City of Milpitas as an Associate Member, and authorize the City Manager to execute the Associate Member Agreement with the Western Riverside Council of Governments.
  3. Adopt a resolution approving, authorizing, and directing execution of an amended and restated joint exercise of powers agreement relating to the California Statewide Communities Development Authority, and adopt a resolution authorizing the inclusion of properties within the territory of the City of Milpitas in the California Statewide Communities Development Authority Open PACE Program for those providers signing the City’s Letter of Agreement and the ABAG Regional Agreement.
  4. Adopt a resolution authorizing the City to join the FigTree Property Assessed Clean Energy Program, authorizing the California Enterprise Development Authority to conduct contractual assessment proceedings and levy contractual assessments within the territory of the City of Milpitas.
  5. Find that the actions are Exempt from Environmental Review under CEQA Guidelines Section 15378(b)(4).

On September 19, 2017, the City Council directed staff to establish a greater level of consumer protection for Property Assessed Clean Energy (PACE) providers and establish these conditions as requirements for PACE Financing Programs in the City of Milpitas. The City shall only authorize those providers that have signed agreements. The City Council may adopt resolutions authorizing the operation of PACE Financing Programs within the City of Milpitas.

PACE programs provide property owners with a financing option to underwrite energy efficiency retrofits and renewable energy installations. PACE programs allow for the financing of these types of improvements without requiring a down payment or payment of the upfront capital cost of the improvement. The property owner repays the cost of the improvement “PACE loan” through their property tax bills over time for up to 20 years. In California, PACE programs are enabled through two different laws, Assembly Bill 811 (AB 811, 2008) and Senate Bill 555 (SB 555, 2011), with additional laws clarifying and expanding program parameters.

The City has no direct role in PACE program implementation or in the assessment transactions. Instead, the PACE provider arranges capital, administers programs, partners with a pre-approved contractor, and places special tax assessments in coordination with county tax collectors. To date, the only PACE provider authorized to operate in Milpitas is the California Statewide Communities Development Authority sponsored CaliforniaFIRST program. This was enabled through a resolution adopted by Council on January 5, 2010.

During the month of July 2017, city staff were approached by two PACE providers expressing interest in operating in Milpitas. Since then, staff have identified four possible PACE programs already authorized to operate in several nearby local jurisdictions. Should the City Council decide to add additional PACE programs to Milpitas, the Council must take actions to adopt a resolution to sponsor the program and join the associated Joint Powers Agreement, per the requirements of AB 811 and SB 555.

The City established operating conditions for PACE providers to successfully enable the City to achieve the greatest level of consumer protection. The conditions would be included in a Letter of Agreement, called the Letter of Agreement Regarding Operational Requirements for Property Assessed Clean Energy (PACE) Programs in the City of Milpitas, to be signed by the PACE providers in order for the City to sponsor the program.

Where: Milpitas City Council

When: November 21, 2017, 7:00pm

Link to item: http://www.ci.milpitas.ca.gov/_pdfs/council/2017/112117/attachments.pdf

Link to agenda: http://www.ci.milpitas.ca.gov/_pdfs/council/2017/112117/Agenda.pdf

 

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