Policy Watch: Week of 6/24

City of San Jose

6/21 CARRASCO, LICCARDO, ARENAS, FOLEY MEMO – Direction on moderate-income housing strategy, including approving a forgivable loan program for ADU construction

6/21 Memo – The Mayor and 3 councilmembers recommend:

  • Directing staff to continue to pursue process improvements that can streamline the ADU permitting process
  • Adopt Councilmember Foley’s memorandum to the extent that a loan program or subsidy can feasibly be crafted in light of the substantial affordability gaps that remain. Consider targeting the very limited funding in the program strategically to support key City objectives, such as part of a retention strategy for teachers.

Staff will report on current strategies to support the creation of housing for moderate-income and other “missing middle” residents in San Jose, with an emphasis on a program to incentivize ADU development.

The Mayor as well as CMs Carrasco, Arenas, Foley propose developing a “Yes, In My Backyard” affordable housing program centered on streamlining and facilitating the construction and inhabitation of accessory dwelling units (ADUs).The program would waive fees and provide forgivable loans for homeowners in San Jose who build an accessory dwelling unit or convert a garage into a housing unit and agree to restrict rents to a level of affordability that enables the tenancy of a low-to moderate-income household for at least five years. The City will authorize staff to negotiate the development of a loan program administered by the Housing Trust.

Where:   San Jose City Council

When: June 25, 2019, 1:30pm

Link to item:   https://sanjose.legistar.com/LegislationDetail.aspx?ID=3980541&GUID=E3B0124D-9705-447C-BF69-C03707A27B24

Link to agenda:   https://sanjose.legistar.com/DepartmentDetail.aspx?ID=21676&GUID=ACCCCFF5-F14A-4E1A-8540-9065F45A8A90  

SUPPLEMENTAL MEMOs & Peralez/Carrasco MEMO Re: New ordinance requiring city-subsidized private developments to pay prevailing wage

Peralez/Carrasco 6/21 memo recommends to:

1. Direct staff to reconvene with labor representatives to produce an agreed upon list of potential consultants,

2. Request that the City Attorney’s Office provide guidance by the June 25th council meeting on whether the City can sole source from the aforementioned list using the scope of work as defined in section 14.10.220.c.2 of the proposed ordinance, and if not,

3. Direct staff to issue a Request for Proposal (REP) for a consultant contract to conduct a financial infeasibility assessment, using the scope of work as defined in section 14.10.220.c.2 of the proposed ordinance.

Supplemental memo posted 6/20 along with revisions to the draft ordinance.

2nd supplemental memo posted 6/20 – This supplemental memorandum states why City staff recommends using consultant Keyser Marston, in contravention to the agreement with Labor and the April 3, 2018 direction of City Council, to determine if extending the high rise incentive program to encourage housing production would not trigger the imposition of prevailing wages under the proposed ordinance being considered by Council (Item 4.5) on June 25, 2019 because such projects would be financially infeasible in the absence of an incentive program.

Staff anticipates completing the infeasibility assessment and bringing a recommendation on August 6 for extension of expired and expiring high-rise incentives for pipeline projects

Original item: Approve an ordinance amending the San José Municipal Code to add a new Chapter to Title 14, entitled “Additional Prevailing Wage Requirements for Certain Private Construction Projects.”

On April 3, 2018 Council directed the City Manager and City Attorney to draft an ordinance to require private development projects that receive a City subsidy to: (1) pay prevailing wages to construction workers and (2) have “goal – good faith effort” requirements for the use of apprentices, local workers and workers from underrepresented populations. This direction requires staff to address numerous complex and challenging policy, legal, administrative and resource issues.

The proposed ordinance provides for the following:

(1) A requirement to pay prevailing wage when the City provides a subsidy; and

(2) New definitions on what constitutes a City subsidy, including a process for City Council to declare a specific  tax or fee break provided as an economic incentive to not be a subsidy.

The proposed ordinance does not include provisions for apprentices, local hiring and targeted workers as these provisions need further analysis.

Where:   San Jose City Council

When: June 25, 2019, 1:30pm

Link to item:   https://sanjose.legistar.com/LegislationDetail.aspx?ID=3980540&GUID=D9FB568E-0AF4-4840-94FF-4D344362CC97

Link to agenda:   https://sanjose.legistar.com/DepartmentDetail.aspx?ID=21676&GUID=ACCCCFF5-F14A-4E1A-8540-9065F45A8A90

City of Sunnyvale

Study session on criteria for council district boundaries

Council will hold a study session about success criteria for determining council district boundaries. No memo or attachments have been included yet.

Where: Sunnyvale City Council

When: Tuesday, June 25, 2019, 5pm

Link to item: https://sunnyvaleca.legistar.com/LegislationDetail.aspx?ID=3991722&GUID=2572CAEF-D025-4632-A997-05D8B71BA6A2&Options=&Search=

Link to agenda: https://sunnyvaleca.legistar.com/MeetingDetail.aspx?ID=672122&GUID=72EDB649-3056-465E-996E-EEC3FBCABA4C&Options=info&Search=

City of Mountain View

Direction on East Whisman Precise Plan and DEIR

Council will provide direction on the East Whisman Precise Plan Public Draft and Draft Environmental Impact Report. The DEIR will close its public review period on July 22. The Precise Plan adoption is expected in fall 2019.

The East Whisman Precise Plan process started in March 2016 and has included multiple community workshops, stakeholder meetings, and Environmental Planning Commission (EPC) and City Council Study Sessions.

City Council directed the project team to study two Precise Plan development alternatives. The Draft Precise Plan Alternative is 2.3 million net new square feet of office in the entire Precise Plan, and the Reduced Office Alternative is 1.7 million net new square feet of office in the entire Precise Plan. After the Precise Plan process started, the City began studying two projects in the South Employment Area based on the Los Altos School District Transfer of Development Rights Program. The alternatives now include a new TDR Bonus Alternativethat takes into account the proposed LASD TDR projects in the South Employment Character Area

Jobs-to-employed-resident equality. The Reduced Office Alternative generates a higher ratio of units to office square feet, and results in closer jobs-housing balance in the area. The 5,000 units would likely house about 6,700 employed residents. The Draft Precise Plan Alternative would likely generate about 9,000 jobs, while the Reduced Office Alternative would likely generate about 6,700 jobs, roughly the same as the number of employed residents. Council is being asked which office growth alternative it supports. The EPC recommended the TDR Bonus Alternative. While Commissioners were concerned about the amount of office growth, the jobs-housing imbalance, and impacts that may result from development in the South Employment Area, they agreed that it was important to facilitate the LASD TDR process.

At the last Study Session, the City Council requested additional information about how public facilities, such as libraries and community centers, may be created by the Plan. In addition, the City Council requested more discussion of the menu of community benefits that could be provided by applicants.

Community benefits are defined in the Plan as features provided in excess of other Plan or City requirements. The list includes floor area for neighborhood commercial uses/nonprofits/community facilities, affordable housing, district transportation and utility improvements, new public park space, support for small local businesses, shared public parking, dedication of land for schools, and an “other” category for other creative ideas. A request for public facilities as community benefits should be associated with an analysis of the long-term funding obligations of the additional City facilities. Also, these facilities are usually constructed through the Capital Improvement Program process so management and details of the spaces are fully within the City’s control. However, the Precise Plan can specify that the City could request land and/or funding for these facilities as a community benefit.

Staff recommends revising the community benefits list to add “land for public facilities.” The City Council may also use this opportunity to provide other ideas for community benefits. The EPC supported the staff recommendation. In addition, EPC members supported community centers and community gardens as community benefits.

Where: Mountain View City Council

When: Tuesday, June 25, 2019, 6:30pm

Link to item: https://mountainview.legistar.com/LegislationDetail.aspx?ID=3992837&GUID=5C504B9F-C839-41CF-9273-2927D5791929&Options=&Search=

Link to agenda: https://mountainview.legistar.com/MeetingDetail.aspx?ID=655815&GUID=C213FF7D-E2F1-4E93-9279-8B83926186E2&Options=info&Search=

Approving reimbursement of $3.1M to Google for design of Charleston Road Improvements

Staff recommend that council transfer $3,142,000 from the Shoreline Regional Park Community Fund for a feasibility study on the Charleston Road Improvements Project. Council would also approve a reimbursement agreement with Google in an amount not to exceed $2,950,000 for design services for the Charleston Road Improvements.

The Charleston Corridor Transit Boulevard is identified as a Priority Transportation Improvement in the North Bayshore Precise Plan. Charleston Road is envisioned as an east-west corridor through the North Bayshore Area where transit, bicycles, and pedestrians are prioritized over single-occupant vehicles. Improvements include transit stops to serve corporate and Transportation Management Agency shuttles. Two segments are currently under construction by Google. The remaining phases will likely be funded by a combination of Transportation Impact Fees and Shoreline Regional Park Community funds.

Google has offered to continue design of the improvements and be reimbursed by the City. Google’s request for reimbursement is only for out-of-pocket costs, including design, cost estimating/constructability, and project management. Contract and other administrative costs would be borne by Google. The total estimated cost of the design phase is approximately $3,800,000. Staff recommends accepting Google’s offer because:

• The Charleston Corridor improvements would support transit and active transportation today and become more important as development continues to occur in North Bayshore (both commercial and residential);

• Considering its large scale, this project will take a number of years to complete. The first phase is already under construction, and staff recommends continuing design on the remainder. Construction can then be phased in accordance with available resources;

• Having Google manage the design is more efficient from a staff resource standpoint. While staff will continue to review plans and specifications, contract management will be performed by Google’s contract project management staff.

• Designing major projects during good economic times can enable construction during slower times when prices are better.

Where: Mountain View City Council

When: Tuesday, June 25, 2019, 6:30pm

Link to item: https://mountainview.legistar.com/LegislationDetail.aspx?ID=3992856&GUID=91C79CD4-E676-432F-BCF1-DA3387E276D1&Options=&Search=

Link to agenda: https://mountainview.legistar.com/MeetingDetail.aspx?ID=655815&GUID=C213FF7D-E2F1-4E93-9279-8B83926186E2&Options=info&Search=

Approving scope and direction for Downtown Precise Plan

Staff recommend that council approve the general scope and direction for updating aspects of the Downtown Precise Plan.

Staff is recommending the following phased approach to this Precise Plan update work based on council direction. This general direction will be further refined over the coming summer months and that staff will return to Council for formal authorization in fall 2019 with a more detailed scope of work.

Scoping—Summer/Fall 2019

Staff will create a detailed scope of work and prepare a RFP for consulting firms. Staff will then bring forward a formal scope of work and recommended consultant for the Downtown Precise Plan update to the City Council in the fall for formal approval. The scope of work will include proposed Precise Plan updates in addition to any required California Environmental Quality Act (CEQA) documentation, including an overall community outreach plan.

Phase I

This phase of the Precise Plan update process will focus on potential revisions to the goals, policies, and/or development standards for only Precise Plan Sub-Areas A, G, and H which would include: potential revisions to design guidelines, including consideration of a form-based code approach; feasibility of a historic district overlay; and minimal ground-floor land use changes. Study Sessions with the EPC and City Council, as well as public outreach, would take place during this period. Phase I is anticipated to take approximately 18 months.

Phase II

Staff would return to Council after completion of the first phase of Precise Plan amendments and the Downtown Parking Strategy and RPP Program reports for direction on any desired additional amendments which were previously identified at the Study Session in March 2019, such as amendments to other Precise Plan Sub-Areas and parking.

Where: Mountain View City Council

When: Tuesday, June 25, 2019, 6:30pm

Link to item: https://mountainview.legistar.com/LegislationDetail.aspx?ID=3992844&GUID=DBA7AF6A-7645-4E97-9531-808DCD073428&Options=&Search=

Link to agenda: https://mountainview.legistar.com/MeetingDetail.aspx?ID=655815&GUID=C213FF7D-E2F1-4E93-9279-8B83926186E2&Options=info&Search=

Forming subcommittee to consider revisions to Community Stabilization and Fair Rent Act

Staff recommend that council form a subcommittee to consider revisions to the Community Stabilization and Fair Rent Act and select three councilmembers to serve on the subcommittee.

In November 2016, the voters approved the Community Stabilization and Fair Rent Act (CSFRA) as a Charter amendment. The CSFRA enacts stabilization of rents and just-cause termination protections to residential rental units constructed prior to 1995. The Charter amendment states that the purpose of the CSFRA is to promote neighborhood and community stability, healthy housing, and affordability for renters in the City of Mountain View by controlling excessive rent increases and arbitrary evictions to the greatest extent allowable under California law, while ensuring landlords a fair and reasonable return on their investment and guaranteeing fair protections for renters, homeowners, and businesses.

In 2018, the “The Mountain View Homeowner, Renter, and Taxpayer Protection Initiative” was put forward by John Inks and Bryan Danforth proposing to modify the CSFRA. Council has the option to place this initiative on either the March 3, 2020 or November 3, 2020 ballot.

The purpose of the subcommittee is to facilitate council exploration or consideration of potential revisions to the CSFRA that could be placed on the ballot as a City-sponsored Charter amendment. A City-sponsored ballot measure may also be placed on either the March or November 2020 ballot.

Where: Mountain View City Council

When: Tuesday, June 25, 2019, 6:30pm

Link to item: https://mountainview.legistar.com/LegislationDetail.aspx?ID=3992845&GUID=0477739A-2F92-469A-8AB1-7CD882168482&Options=&Search=

Link to agenda: https://mountainview.legistar.com/MeetingDetail.aspx?ID=655815&GUID=C213FF7D-E2F1-4E93-9279-8B83926186E2&Options=info&Search=

Franklin- McKinley School District

Update & direction on potential March 2020 bond measure; poll indicates 73% support

At the Board meeting on April 9, 2019, the Board of approved Isom Advisors to conduct a survey to determine the feasibility of FMSD to pass a bond measure in March of 2020. The future bond measure would address facility needs of the District as it relates to creating 21st Century Learning Environments, energy efficiency, renewable energy with power storage, restroom upgrades, replacement of temporary portable classrooms with permanent classrooms and other initiatives. The district needs $80M to Address Needs. Staff and a consultant from Isom Advisors will be presenting the results of this Bond Measure.

Take-away points from the survey (400 households) include:

  • Majority of voters believe the District provides an “Excellent” or “Good” education.
  • Initial support for the measure was 74.8% Yes (2.0% Lean Yes), with 5.5% Undecided; after education support for the measure was 73.5% Yes (2.8% Lean Yes), with 4.3% Undecided.
  • All projects tested received over 75% (more likely to vote yes for this type of project)
  • Voters were supportive of all tax rates tested.
  • Support is above the 55% voter approval threshold;

Isom recommend the District continue to reach out to and educate the community and plan on placing a bond measure on an upcoming 2020 ballot. 

Where:    Franklin-McKinley School District

When:  Jun 25, 2019, 7:00 p.m.

Link to item:   http://go.boarddocs.com/ca/fmsd/Board.nsf/goto?open&id=BD3RHA6DD887

Link to agenda:   https://go.boarddocs.com/ca/fmsd/Board.nsf/vpublic?open

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