Policy Watch: Week of 1/8

County of Santa Clara

Provide direction regarding 10-year Capital Improvement Program, including possible GO bond or other revenue strategies

The Board will receive a report on the 10-year Capital Improvement Program Development. It is estimated that current capital needs over the 10-year horizon is approximately $4 to 5 billion. The administration has identified an approximately $2 billion funding gap between 1) a reasonable estimate of future facility development costs based on a high-altitude assessment, and 2) a reasonable estimate of future funding capacity based on recent funding trends.  To close this gap, the County may need to explore the possible issuance of general obligation bonds (subject to voter approval), a curtailment of services / service expansion, and other strategies.

Based on the Administration’s space planning efforts, review of space needs identified by departments as well as Board-identified priorities, Capital Projects likely needed and/or pursued within the 10-year capital planning horizon include:


  • New Jail Facility: This project consists of the replacement of an outdated jail facility at the County’s Main Jail Complex with a new jail building immediately adjacent to the existing Main Jail North facility.


  • Adolescent Inpatient Psychiatric Facility: Currently, there is limited inpatient psychiatric hospital capacity in Santa Clara County for children under 18 who require acute psychiatric inpatient treatment.


  • Vietnamese-American Service Center: This project will construct a new medical office building, approximately 50,000 to 60,000 square feet and a parking structure at 2410 Senter Road, dedicated to serving the needs of the Vietnamese-American population.


  • New Julian Campus Social Services Agency Building (Tenant Improvements): The County is entering into a twelve-year lease for a newly-constructed 204,000 square foot building located at 353 W. Julian Street that will be occupied by SSA.


  • Public Safety and Justice Center Phase of the Civic Center Master Plan: This project will provide the opportunity to improve public safety and justice services and the client and employee experience through shared resources, increased collaboration, and efficiencies with extensive integration of public safety and justice services.


  • East Valley Clinic / Receiving, Assessment, and Intake Center (RAIC): The County is actively pursuing a vision and plans for an integrated and accessible health model that will provide high quality care to those in need while actively promoting health and wellness for all at the East Valley Health Center campus.


  • South County Animal Services (Shelter) Center: This project will provide a new space to effectively care for animals by increasing the sheltering capacity and improvement of critical animal care services.


  • SCVMC Emergency Department: Currently, the Emergency Department (ED) at SCVMC is the busiest ED in Santa Clara County. This project will provide funding for the expansion and critical improvements.


  • Women’s and Children’s Center: This project will consolidate all the Women and Children’s services to one building at the SCVMC campus to improve upon patient care and increase staffing efficiencies.


  • Ambulatory Specialty Center: This new facility on the SCVMC Campus would allow for outpatient surgical procedures to be performed in an outpatient surgery center and will reserve the primary use of the hospital’s main operating room for inpatient surgical procedures.


  • Burn Unit Upgrade: The current SCVMC Regional Burn Center is one of the only 60 verified burn centers in the United States, as designated by the American Burn Association and American College of Surgeons.


  • County Communications Building: As the current facility for County Communications reaches the end of its useful life, this project would identify a replacement facility that meets the departments future operational needs.


  • Office of the County Clerk-Recorder and/or other 70 West Hedding Department Relocations: There are currently significant space constraints at the County Government Center located at 70 West Hedding Street. A planning study undertaken this year of the East Wing identified a gap of 100,000 sq. ft. of needed space.


Other needs identified by service model and operational planning (SMOP) efforts and campus planning efforts:

  • Other Phases of the Civic Center Master Plan
  • Berger Campus Projects
    • ROV Facility Acquisition or Improvement Project
    • ISD Data Center and Administrative Services Consolidation
  • Other Health and Hospital System Projects
  • Elmwood Campus Projects
  • Fairgrounds Infrastructure Projects
  • Other Facility and Infrastructure Projects


Where:  Santa Clara County Board of Supervisors

When:  January 9, 2018 9:30 AM County Government Center 70 West Hedding Street

Link to item:   http://sccgov.iqm2.com/Citizens/Detail_LegiFile.aspx?Frame=&MeetingID=9430&MediaPosition=&ID=89203&CssClass=

Link to agendahttp://sccgov.iqm2.com/Citizens/Detail_Meeting.aspx?ID=9430


City of San Jose

Approving FIFA Airport Agreement as part of bid for 2026 World Cup

World Cup Soccer 2026 presents an opportunity for the City of San Jose to be part of a tri-city (San Jose, San Francisco and Santa Clara) Host City bid. To be a Host City candidate, the City of San Jose must execute the proposed Airport Agreement by January 18, 2018.

There are currently 32 Host City candidates from North America, which will be narrowed in the final submission of the North American Bid after review of the bids.  San Jose is participating as one of the three Bay Area Host Cities. The matches would be held at Levi’s Stadium, with Avaya Stadium, Stanford University, Santa Clara University, and San Jose State serving as team training facilities.

FIFA requires several mandatory contracts be part of the Host City bid proposal. One of those contracts is the Airport Agreement, which would impose certain FIFA requirements on the Airport. Operationally, the Agreement requires that the Airport provide retail space, office space, welcoming space, and security and other VIP treatment for FIFA officials, teams and volunteers. The retail space, subject to a future agreement, is to be at “market rate.” Other services, including the welcome desk and VIP service, are to be reimbursed by the United States Soccer Federation, Inc. There is expected lost revenue or out-of-pocket costs, such as for increased security, which may or may not be reimbursed by the local area host committee. If the Bay Area is selected as one of the Host City finalists, separate agreements will be negotiated to address allocation and/or reimbursement of expenses.

The Airport Agreement requires the Airport to defend and indemnify FIFA for any claims arising out of or attributable to any breach of the Agreement by the Airport, and further requires the Airport to waive claims against FIFA. The Agreement is subject to the laws of Switzerland.

Several provisions of the Airport Agreement may conflict with the Airport’s duties under Federal law. As a result, the Airport Council International (ACI) negotiated with UBC to modify the proposed agreement to include a savings clause, that nothing in the Agreement is understood or interpreted to conflict with applicable law.

Recommended action: Adopt a resolution to authorize the City Manager to:

  1. Negotiate and Execute the Airport Agreement between the City of San Jose and the United States Soccer Federation, Inc., United Bid Committee 2026, or other appropriate entity, regarding participation in hosting and staging the 2026 FIFA World Cup; and
  2. Cooperate in the negotiation and execution of documents necessary for the City of San Jose’s participation in the United 2026 Bid for the FIFA World Cup.

The City Manager also requests the authority to negotiate and execute any other documents necessary for the City to secure its status as a proposed host city by January 19, 2018.

Where: San Jose City Council

When:  Jan. 9, 2018, 1:30 pm

Link to item:   https://sanjose.legistar.com/LegislationDetail.aspx?ID=3303337&GUID=11434DA4-4FC1-4633-A68C-40D5078859A4

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


DEFERRED: Direction on Worker’s Comp program


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 Gilroy

Deciding on process to fill Council vacancy created when CM Paul Kloecker passed away

Following the unfortunate passing of Council Member Paul Kloecker on December 15, 2017, his Council seat with a term ending in November, 2020 has become vacant.

Per the City Charter, Council must either fill the vacant seat by appointment within 30 days, or call a special election to fill the seat.

To fill the seat by appointment, the City Council can appoint a member to Council at this meeting, or opening a recruitment period to take applications for appointment at the February 5. An appointed Council member would fill the vacancy until a successor is elected at the next general municipal election of November 6, 2018.

If the Council chooses to forgo an appointment, causing a special election to fill the seat, costs to hold a stand-alone special election are estimated at over $300,000.

Where: Gilroy City Council

When: January 8, 2018, 6:00pm

Link to item: http://www.cityofgilroy.org/AgendaCenter/ViewFile/Item/2887?fileID=6967

Link to agenda:http://www.cityofgilroy.org/AgendaCenter/ViewFile/Agenda/_01082018-1451?html=true


Cupertino Union School District

Considering alternate project delivery methods for construction projects, such as Lease/Lease-Back and CM Multi-Prime

School facilities construction projects can be contracted by using a variety of procurement methods. The District has historically used “Design-Bid-Build” (low bidder) as the method of hiring contractors.

The presentation will review construction contracts, and staff will discuss alternate project delivery methods such as “Lease/Lease-Back” and “CM Multi-Prime”.

The staff recommendation is that the staff may bring a resolution to the Board for the purpose of approving an alternate project delivery method.

Where: Cupertino Union School District

When: January 9, 2018, 6:00pm

Link to item: https://drive.google.com/file/d/1gBCOPtYnC-sL4yzTXLXPrJgMVE2eiqYV/view

Link to agenda: https://drive.google.com/file/d/1gBCOPtYnC-sL4yzTXLXPrJgMVE2eiqYV/view


Santa Clara Unified School District

Facility Needs Summary draft for potential new GO Bond

The Facility Needs Task Force and staff have been working over the last year on an assessment of the current and pending condition of District facilities and the resources needed to maintain, preserve and improve them to meet regulatory requirements and educational goals in the most cost-effective manner.

Staff will present a draft of the Facilities Needs Summary document that will be the basis for an informational outreach effort to the community and also for a Bond Projects List for a possible future General Obligation Bond.

Where:  Santa Clara Unified School District Governing Board

When:  January 11, 2018 5:00PM Santa Clara Unified School District Board Room

Link to item:   http://agendaonline.net/public/Meeting.aspx?AgencyID=209&MeetingID=49861&AgencyTypeID=1&IsArchived=False

Link to agenda:   http://agendaonline.net/public/Meeting.aspx?AgencyID=209&MeetingID=49861&AgencyTypeID=1&IsArchived=False



Curtner Station Joint Development Community Meeting

VTA will host a community meeting about a proposed transit oriented development (TOD), located on VTA’s Curtner Transit Center Parking. The meeting will seek feedback from community members.

Where:  VTA

When:  Thursday, January 11, 2018, 6:00 – 7:30 p.m.

San Jose Scottish Rite, 2455 Masonic Drive, San Jose, 95125

Link to item:  http://vtaorgcontent.s3-us-west-1.amazonaws.com/Site_Content/Curtner%20Mailer.pdf

Link to agendahttp://www.vta.org/real-estate/joint-development-portfolio/curtner-station-joint-development

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