Policy Watch: Week of 1/1

City of San Jose

Direction on Worker’s Comp program; staff recommends continuing hybrid model until State audit is completed

The City of San Jose is currently in a multi-year Pilot Program to evaluate service delivery models for providing workers’ compensation benefits to employees. Under the Pilot, workers’ compensation claims are split between an In-House City team and Intercare, a Third-Party Administrator (TPA). The Pilot is scheduled to conclude in June 2018. However, given the potential serious repercussions of the pending State Audit of the In-House program, staff recommends continuing the Hybrid Model until the State Audit is concluded. Staff also recommends bringing forward additional analysis of the Pilot and making a recommendation regarding a permanent operational model within the City’s 2018-2019 Operating Budget Cycle next spring for implementation in 2019-2020.

The City’s options for administering workers’ compensation claims include: (1) bringing the program In-House; (2) administering the program through a Third-Party Administrator; or (3) continuing a Hybrid Model that includes both In-House and Third-Party claims administration (as is currently in place through the Pilot Program). This policy decision is difficult for any city, however, in San Jose’s case, the decision is further complicated by the facts surrounding a recent State Audit. In 2016, the State of California conducted a routine profile audit review of the City’s In-House program and its claims handling. The City failed this audit. Based on the failure, the City will be subject to another audit in December 2018. If the City does not pass a second time, under the State Labor Code, the State could take away the City’s ability to self-insure for workers’ compensation.

Bringing the entire program and caseload In-House is not recommended in the short-term due to the upcoming State re-Audit. Bringing the cases currently with the TPA in-house would subject those cases to the audit. Should the City Council wish to bring the program In-House, staff recommends waiting until after the State Audit is completed to ensure that the City passes the audit.

Recommended actions:

(a) Accept the evaluation of service delivery options for administering workers’ compensation claims, including providing services In-House with City staff, through a Third-Party Administrator, and a Hybrid Model that includes both In-House and Third Party claims administration.

(b) Direct the City Manager to:

(1) Continue the current Worker’s Compensation Pilot Program (Hybrid Model) through the completion of the State audit of the In-House program;

(2) Develop a work plan for bringing the entire worker’s compensation program In-House in stages upon successful completion of the State audit; and

(3) Return through the budget process with funding recommendations for bringing the program In-House in stages beginning in 2019-2020.

Where: San Jose City Council

When:  Jan. 9, 2018, 1:30 pm

Link to item: https://sanjose.legistar.com/LegislationDetail.aspx?ID=3299163&GUID=71D05538-0E69-47AD-8F55-C3EDF0815757

Link to agenda: http://www.sanjoseca.gov/index.aspx?NID=5897


City of Santa Clara

New community engagement effort around Levi’s Stadium impacts

The City of Santa Clara has begun a multi-phased effort to assess the impacts of events at Levi’s® Stadium in the surrounding neighborhood. On December 19, City staff and consultants presented an overview of the noise monitoring program, and the full presentation may be found by visiting www.santaclaraca.gov/scsa .

“I am happy that we have now launched a robust qualitative and quantitative community engagement effort to evaluate quality of life issues related to the Stadium,” said Mayor, Lisa M. Gillmor. “At this time, it would be premature to make any conclusions. This multi-phased process will include input from hundreds of residents and stakeholders and we will engage the public on a number of issues, including traffic, loitering, parking, etc.”

Where: City of Santa Clara

When:  n/a

Link to community outreach & polling: www.santaclaraca.gov/outreach


Valley Transit Authority

Adding Milpitas and Berryessa sites to Joint Development Portfolio for future public-private development

Authorize the addition of the following properties to the VTA’s Joint Development Portfolio: 1. the construction staging areas at the new Milpitas Transit Center and the Berryessa/North San Jose Transit Center, and 2. all future properties acquired for implementation of approved capital projects, including the BART to Silicon Valley Phase II Project, where VTA is the fee owner of the property and when such properties are no longer needed for construction purposes.

Properties identified for addition to the Joint Development Portfolio are real estate assets for revenue generation that have reasonable potential for Joint Development over time, with an emphasis on strong viability for Transit-Oriented Development (TOD) and/or long-term revenue potential through a ground lease or joint venture arrangement.

With the wrapping up of construction for the BART Silicon Valley Berryessa Extension Project (SVBX), the large sites at the new Milpitas and Berryessa Transit Centers are no longer needed to support SVBX construction activities. They have been identified as presenting a future opportunity for high value mixed-use Transit-Oriented Development.

The new Milpitas Transit Center site is approx. 1.7 acres. Pursuant to the City of Milpitas Transit Area Specific Plan, it is designated for high-density residential or commercial development. In addition, adjacent to South Milpitas Boulevard extension south of Montague Expressway, there are a couple of small remnant parcels from property acquisitions for the new roadway extension. These parcels are too small for development on their own; however, they are adjacent to privately owned parcels that staff expects private developers may wish to assemble in the near-term based on market activity. Designation of these remnant parcels for Joint Development would allow VTA to work with a future developer of the adjacent property and seek to encourage high-quality TOD at the east end of the Transit Center.

The Berryessa/North San Jose Transit Center site is approx. 2.5 acres. The City of San Jose intends to begin preparation of the Berryessa Urban Village Plan in mid-2018, and VTA will seek for the Plan to designate the area for mixed-use TOD. (The City’s General Plan currently designates it for Light Industrial.)

Addition of these properties to the Joint Development Portfolio would allow staff to 1) conduct analysis to identify and define Joint Development opportunities, 2) support Berryessa Urban Village Plan development, and 3) request the Board for authority to issue a Joint Development Request for Proposals (or in the case of the remnant parcels, request authority to negotiate with a developer on an assemblage).

Even after inclusion of the properties to the Joint Development Portfolio, no actions could be taken for any of these properties without additional authorization from the Board.

This item does not affect the Great Mall Transit Center, whose transit function will be relocated to the new Milpitas Transit Center when BART revenue service commences. At its December 7, 2018 meeting, the Board directed staff to conduct additional analysis and present the findings at a future Board meeting in order to inform any potential Board decision on whether to designate this property for permanent disposition or other action.

Where:  VTA Board of Directors

When:  Jan. 4, 2018, 5:30 pm

Link to agenda packet: http://vtaorgcontent.s3-us-west-1.amazonaws.com/Site_Content/bod_010418_packet_add.pdf


Santa Clara County Board of Education

Trustee Michael Chang resigns; Board must either order an election or make a provisional appointment

Area 2 Trustee Dr. Michael Chang announced his resignation from the Santa Clara County Board of Education effective December 19, 2017, due to family health issues.

The process for filling a vacancy on the Board of Education is governed by state law.  To fill the vacancy, the County Board has the option to either order an election or make a provisional appointment no later than 60 days from the date the seat becomes vacant.

Where: Santa Clara County Board of Education

When:  n/a

Link to item:   n/a

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