Policy Watch: Week of 12/16

|| Santa Clara County ||

Cortese referral to adopt “support with amendments” position on SB50

“Equitable communities incentives” (ECI) are the bonuses that takes the form of relief from certain local develop controls for qualifying projects. Under SB 50, residential developments must meet a variety of conditions in order to receive ECI benefits. Developments must be proposed on a site zoned for housing, the site must not and has not contained housing by tenants within the past seven years prior to applying for the benefits, and the proposed development must not have been subject to Ellis Act eviction within the past fifteen years. Residential developments that meet SB 50’s criteria may be granted waivers on maximum controls on density or automobile parking requirements. Local governments may also award proposed developments up to three incentives or concessions as outlined under the Density Bonus Law. Moreover, residential developments receiving ECI benefits must contain affordable housing units depending on the size of the project.

Sup. Cortese’s referral is asking the Board to consider the following amendments: 

  • the definition of jobs-rich areas to identify areas that have a higher-than-average concentrations of jobs and result in shorter commutes;
  • allow for a density measure for transit-rich projects within ½-mile of rail or ferry stations to provide more flexibility than the bill’s minimum height allowances, 
  •  provide more flexibility related to local parking requirements within ½-mile radius of a major transit stop based on local conditions.

When: December 17, 2019, 7:00PM

Where: Santa Clara County Board of Supervisors

Cortese referral for urgent report on possible County actions to assist DACA recipients

On September 12, 2017, the Board of Supervisors approved the establishment of an emergency DACA program that provided up to $200,000 from the County’s General Fund Contingency Reserve to support applicants to file renewals by October 5, 2017 in response to the Federal Administration’s decision to terminate the DACA program. On October 8, 2019, the Board of Supervisors approved a referral that would provide financial assistance to DACA recipients who need support to cover their DACA renewal application fees.

On November 12, 2019, the U.S. Supreme Court began their review of the federal court cases challenging the Federal Administration’s termination of DACA. In the interim, DACA recipients face much uncertainty concerning their future.

Sup. Cortese’s referral is asking the County to anticipate the needs of our DACA community and address the matter before the Supreme Court issues their decision in 2020. Specifically, this referral is asking staff to meet with local stakeholders to provide a report within 30 days that explores the various ways that the County could further assist DACA recipients in these tumultuous times. The report should include actions that the Board can consider feasibly implementing and operationalizing: (a) within 30 days or less, (b) within 90 days or less, and (c) within 180 days or less.

When: December 17, 2019, 7:00PM

Where: Santa Clara County Board of Supervisors

Approving Management Agreement with FMC for 2-year management of the Fairgrounds, including developing a Master Plan for the site

This Board may approve no-cost Amended and Restated Management Agreement with FMC, 2020 Budget and Business Plan and 2018 Audit. Key business terms of the proposed Agreement include the following:

  1. A 20-year term, cancelable by the County upon ninety days prior written notice.
  2. FMC may not approve any license or other Use Agreement with a term longer than one (1) year without the prior written consent of the County and require all third-party uses of the Property to be subject to a written agreement, no longer than 1 year without consent
  3. On or before April 30, 2020, FMC shall submit a draft of the Fairgrounds Master Plan to the County for review and comment, including review and comment by the Director of the County’s Department of Planning and Development.
  4. Prepare and provide a preventative maintenance plan, an annual operations budget, and an annual capital budget by October 31st as well as an annual Business Plan for the Property and an independent Audit of the calendar year preceding 

It is also expected that work will have been completed in 2020 to allow consideration of the Board’s direction regarding certain components, including designation of 55 acres of the Fairgrounds as a County park or for park uses, and potential development of a Heritage Concourse of local historic neon signs at the Fairgrounds event space.

FMC estimates that it will end calendar year 2019 with Revenues exceeding Expenses by $53,000.  This is 2/3rds less than the 2019 Adopted Budget amount of $150,000. 2019 financial performance was impacted by the tragic event in Gilroy: expenses of the Annual County Fair exceeded revenues by $357,000 in 2019. The audit of 2017 and 2018 did not return any remarkable comments. 

The FMC Board of Directors is expected to consider the proposed 2020 Budget and Business Plan at a special meeting, tentatively scheduled for December 11, 2019.

This item was on the agenda for the Finance and Government Operations Committee (FGOC) meeting on December 12, 2019. Since the FGOC meeting is after the publication of the agenda for this Board meeting, Administration will provide any recommendations from FGOC to the Board once they are known.

When: December 17, 2019, 7:00PM

Where: Santa Clara County Board of Supervisors

|| City of Santa Clara ||

Delegating authority for Santa Clara Stadium Authority to contract for goods and services for Redbox Bowl following revocation in November 2019

Through the Stadium Management Agreement (Management Agreement), the Stadium Authority has engaged the Forty Niners Stadium Management Company LLC (Stadium Manager) to provide management services for the Stadium, including overseeing the day-to-day operations and maintenance of the Stadium as well as the marketing and booking of Non-NFL Events.

As a result of the City’s revocation of the Executive Director’s authority to procure good and services on behalf of the SCSA as of November 8, 2019, the Stadium Manager must now seek approval from the Santa Clara Stadium Authority Board (Board) and demonstrate that the Stadium Manager has properly and legally procured goods and services before Stadium Authority contracts may be executed.

The Stadium Manager is requesting the ability to procure goods and services through the Executive Director as detailed in the report that the Stadium Manager submitted. The Executive Director must provide the following corrections or clarifications before the Board considers the Stadium Manager’s request. 

  • The Stadium Manager cites the emergency provision of the Code as a justification for some of its procurement requests, but it does not apply. 
  • Redbox Bowl is, and has been, a money losing event.
  • The Stadium Authority believes that an improved procurement strategy on the part of the Stadium Manager could have mitigated the need for this request.
  • Stadium Authority Counsel has demanded unredacted copies of the Title Sponsorship Agreement and Broadcast Agreement. 

If this action is approved by the Board, the Stadium Manager should be required to provide all procurement documents showing that their procurement activity was proper and according to the City’s Code before public funds are authorized for release by the Executive Director. The Executive Director request that will provide a report summarizing procurements approved by the Executive Director to the Board by March 2020.

The City Council or Stadium Authority Board may delegate authority to the City Manager/Executive Director for Santa Clara Stadium Authority to procure and contract for goods and services (public works excluded) from December 17, 2019 to December 30, 2019 consistent with Table 1 as may be necessary to implement the Red Box Bowl to be held at Levi’s Stadium on December 30, 2019 and requiring the Stadium Manager to submit a report on actions taken at a Stadium Authority meeting in February 2020.

When: December 17, 2019, 4:30PM

Where: Santa Clara City Council

|| City of Cupertino||

Adopting Emergency Ordinance to require just cause evictions and rent cap to prevent circumvention of AB1482

Assembly Bill 1482 was signed by the Governor on October 8, 2019 and becomes effective on January 1, 2020. AB 1482 implements two major tenant protections for renters in California: (1) a cap on rent increases beyond a statutory maximum, and (2) a prohibition on evicting tenants without “just cause.” Rent Cap AB 1482 imposes a cap on rent increases that would prevent landlords from raising rents by more than 5% per year plus the percentage change in the cost of living, or 10%, whichever is lower. The “just cause” provisions of AB 1482 protect tenants who have lived in a unit for 12 months or more, or, if additional persons have been added to the lease, at least one tenant must have lived in the unit for 24 months.

At the Council’s Regular Meeting on December 3, 2019, members of the public commented during oral communications that some landlords in the region are attempting to evict tenants and significantly increase rents during the brief window ahead of the January 1, 2020 effective date of AB 1482. The City Attorney’s Office has drafted an emergency ordinance that mirrors the tenant protection measures in AB 1482 to take effect immediately. It includes both the just cause requirements (including the relocation assistance for no fault evictions) and the rent cap.

The proposed ordinance would require a landlord to have just cause in order to serve an eviction notice. To protect tenants who receive rent increase notices after December 17, 2019, the ordinance states that such notices are void as to any rent increases above allowed amounts. The ordinance also provides tenants with a legal defense to an unlawful detainer action, and the right to bring a civil suit for violation of the ordinance, if they are evicted for failing to pay the increased rent.

The City would not directly enforce the ordinance. A tenant could raise the ordinance as a defense to an unlawful detainer action, or file a private civil lawsuit against the landlord to enforce the provisions of the ordinance.

If adopted by a vote of at least four Councilmembers, the urgency ordinance would be in effect immediately, and expire on January 1, 2020, when AB 1482 goes into effect.

When: December 17, 2019, 6:45 PM

Where: Cupertino City Council

|| City of San Jose ||

NEW MEMO: Award $2.3M design-build contract for Community Energy Department office to Solex Construction; no PLA for project

New memo 12/12: Makes recommendation to accept the staff report and award a design/build contract for the tenant improvement project at the 4th Street and San Fernando Garage for office space for the Community Energy Department and other City operations to the lowest responsive bidder, Solex Construction Inc., in the amount of $2,342,563 and approve a contingency in the amount of 15 percent of the contract amount.  The winning bid is below the Engineer’s Estimate of $2,900,000.

The bid submitted by CWS Construction Group, Inc. was lower, but is deemed non-responsive because it failed to submit a properly executed bidder’s bond that included the required notary acknowledgement.

A Project Labor Agreement is not applicable to this project because more than 50% of the total cumulative value of construction is maintenance or rehabilitation.

Staff recommend council award a Design-Build contract to construct improvements at the 4th Street and San Fernando Garage for office space for the Community Energy Department and other City operations.
This Design/Build project renovates the existing 6,100 square foot, City-owned space on the 4th Street side of the parking garage. The contract will require the design-build entity to finalize the design package including fire sprinkler system, Mechanical, Electrical, Plumbing, Information Technology; and cubicle assemblies.

When:Tuesday, December 17, 2019, 1:30PM

Where: San Jose City Council

Closed session review of WPUSA/First Amendment Coalition Google lawsuit

Closed session review of WPUSA/First Amendment Google Public Records Act case against the City of San Jose.

When: December 17, 2019, 9:30AM

Where:San Jose City Council – Closed Session

New LICCARDO/DAVIS Memo regarding ground lease: Approve County $15M purchase option for ac/rehab of Curtner Studio Apts

NEW DAVIS/LICCARDO MEMO 12/13: Davis/Liccardo recommend directing staff to return to Council in February 2020 with underwriting guidelines that require City ownership of a parcel if City investment exceeds a specified threshold. The full text of the memo: 

Last August, City Council updated the City’s Underwriting Guidelines and its Ground Lease Policies. The guidelines state that when newly constructed affordable housing projects are built on land owned by the City, they are leased back to the project developers through a ground lease. This was to ensure that when an affordability restriction expires on a City affordable housing project, the land will continue to be dedicated to affordable housing. 

We would like to thank the County for partnering with us on the Curtner Studios affordable housing project and providing funding to address the problems at Curtner Studios. The City first funded this development in the 1990s and partially again in the mid-2000s. Had the underwriting guidelines been in place upon initial City investments, the City would have retained the ground lease regardless of future contributions. Moving forward, it is important that we have a policy in place to address the question of land ownership when both the City and the County contribute funding to an affordable housing project. 

Original item: Staff recommend council approve Santa Clara County’s option to purchase Curtner Studio Apartments, a 179 affordable unit housing project. This will enable the county to invest up to $14,950,000 in the project to rehab the building.

Curtner Studios has evolved to house primarily at-risk individuals with incomes between 30% to 50% AMI. However, the building lacks sufficient resident services and onsite communal space for the tenants. The County recently approved funding and a plan for addressing the project’s operational issues. This plan includes the creation of an Enhanced Service Area (ESA) to support homeless populations while addressing the impacts of homelessness in neighborhoods.

When:Tuesday, December 17, 2019, 1:30PM

Where: San Jose City Council

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