Updates on negotiations for a development agreement between with Stanford University related to its General Use Permit
The October 16, 2018 (Item No. 9) Board meeting, the Board of Supervisors considered a report arising from a Board referral at the September 25, 2018 (Item No. 15) meeting requesting information about proceeding with a process to negotiate a possible development agreement with Stanford University relative to its General Use Permit application. The October 16, 2018 report provided recommendations about the parameters for entering into a possible negotiation with Stanford University on a development agreement.
At the same October 16, 2018 (Item No. 9) Board meeting, the Board authorized County staff to enter into a negotiation process and appointed two members of the Board to serve on an Ad Hoc Committee providing guidance to County staff. One of the approved actions by the Board was direction for the Administration to report monthly to the Housing, Land Use, Environment, and Transportation Committee (HLUET) on the status of the negotiations with Stanford University.
This item provides the third monthly report to HLUET. Administration and counsel convened a negotiation preparatory meeting with the Board’s appointed Ad Hoc Committee on November 5, 2018. Since then, parties met and agreed upon a set of ground rules for negotiations moving forward.
A second meeting is being scheduled to discuss respective goals and challenges relative to community benefit and the interest of the parties. The process is structured with the hope of having a draft term sheet available for the Board to consider late in the first quarter or early in the second quarter of 2019. One of the shared goals between the County and the University is to complete a negotiation process (or have one or both parties abandon the negotiations) so that the 2018 GUP may be considered by the Board in the second quarter of 2019.
Where: Santa Clara County Housing, Land Use, Environment, and Transportation Committee
When: February 21, 2019, 10:00AM
Link to item: http://sccgov.iqm2.com/Citizens/Detail_LegiFile.aspx?Frame=SplitView&MeetingID=11320&MediaPosition=&ID=95102&CssClass=
Link to agenda: http://sccgov.iqm2.com/Citizens/Detail_Meeting.aspx?ID=11320
City of San Jose
Approving fee waivers and marketing funds for Southwest & Alaska for six new airline routes at Airport
Council will hold a Public Hearing and vote on a resolution to provide the Air Service Support Program to two airlines. The Air Service Support Program is offered by San Jose Airport to airlines that are opening new routes. As this is a high-risk venture, the Airport offers a waiver of landing fees and also additional funds for marketing the new services for a limited period of time. The Director of Aviation is considering extending this Support Program to Southwest Airlines and Alaska Airlines as they open 6 new routes, each which will operate once daily: four different Southwest routes to Hawaii, one Southwest route to Nashville, and one Alaska Airlines route to Dallas. For a period of 18 months, the Airport will offer $174,521 per route in landing fee waivers as well as $75,000 per route in marketing funds (except for the Alaska Airlines route to Dallas: $89K in waiver and $25K in marketing).
Where: San Jose City Council
When: February 26, 2019, 1:30pm
Link to item: https://sanjose.legistar.com/LegislationDetail.aspx?ID=3859225&GUID=A659F302-AB5E-4F81-9B54-0786DD6CC770
Link to agenda: https://sanjose.legistar.com/DepartmentDetail.aspx?ID=21676&GUID=ACCCCFF5-F14A-4E1A-8540-9065F45A8A90
Staff will present a completed Downtown Airspace and Development Capacity Study. Staff recommends that the Council select Scenario 4, which means the City would use the Federal Aviation Administration’s obstruction evaluations to determine building height limits in Downtown Core and Diridon Station Area on a project-by-project basis. To facilitate this new process, they recommend modifying elements of the development review process, e.g. having a civil engineer prepare technical data on the FAA submittal forms identifying the location and elevation of the highest points of the building. They recommend additional planning-related items, such as developing a construction crane policy for the Downtown and Diridon Station areas as well as amending the General Plan to accommodate these changes.
Finally, staff recommends the City explore establishing a “Community Air Service Support Fund” to mitigate the financial impacts to airlines of these new changes.
The Airport Director has also issued a supplemental memo responding to the Airport Commission’s criticism of the proposed height increases.
Where: San Jose City Council
When: February 26, 2019, 1:30pm
Link to item: https://sanjose.legistar.com/LegislationDetail.aspx?ID=3859245&GUID=62B21903-3F67-4DDF-A072-C8C46B9DF1CB
Link to agenda: https://sanjose.legistar.com/DepartmentDetail.aspx?ID=21676&GUID=ACCCCFF5-F14A-4E1A-8540-9065F45A8A90
Update & next steps on Housing Workplan
Update on staffs’ progress implementing the City Council approved Housing Crisis Workplan. Staff will provide details on policy actions underway and completed, an update on the Housing Catalyst team, and market-rate and affordable housing production.
Staff will refine and update the cost of development models created for the study session and will make them available to the Council and the community upon completion later this spring. In addition, staff has completed addition analysis on high-rise residential development in the Downtown to explore the impacts associated with the continuation of the Downtown Highrise Incentive. While extension of the Highrise Incentive has not been brought to Council (due to additional consideration related to Council direction on workforce standards for private projects receiving a public subsidy), staff has attached the additional analysis completed by Keyser Marston in September 2018 as a way of providing additional context on the current economic conditions for high-rise residential development.
Selected highlights of the workplan updates include:
• the deferral of fees to Certificate of Occupancy
• the appropriate level of fees and the use of incentives
• the impact of permit and entitlement timelines
• the predictability and transparency of City development and impact fees
Where: San Jose Community & Economic Development Cmte
When: Feb. 25, 2019, 1:30 pm
Link to item: https://sanjose.legistar.com/LegislationDetail.aspx?ID=3848476&GUID=B8E6B2C4-896A-407E-A4BE-B7FE6C5E2EB1
Link to agenda: https://sanjose.legistar.com/View.ashx?M=A&ID=669954&GUID=132EF457-4083-499D-B164-4C91C7CAB340
Report & direction on $1.5B infrastructure backlog & Measure T funding priorities
This status report provides updates on the City’s Deferred Maintenance and Infrastructure Backlog and near-term strategies to minimize increases to the backlog. The backlog for 2019 totals roughly $1.5B in unfunded costs with an additional $86.9M needed to maintain the City’s infrastructure. Transportation infrastructure continues to have the largest unfunded needs.
The passage of Measure T, the Disaster Preparedness, Public Safety, and Infrastructure Bond Measure, ensures that $300M of funding will be allocated to repair an estimated 388 miles of local streets in the worst condition starting in 2020. This investment will reduce the street backlog to approximately $600M (from $1.1B) by 2020. Other funding from Measure T is subject to Council approval. Priorities for Measure T funding are: $20M to repair and replace several bridges; $20M to convert outdoor lights to LED, and $35M to construct Storm System Conveyance and Flood Prevention Projects.
Where: San Jose City Council
When: February 26, 2019, 1:30pm
Link to item: https://sanjose.legistar.com/LegislationDetail.aspx?ID=3859207&GUID=2EED18EB-279D-4E7F-8752-CEB57C787336
Link to agenda: https://sanjose.legistar.com/DepartmentDetail.aspx?ID=21676&GUID=ACCCCFF5-F14A-4E1A-8540-9065F45A8A90
City of Cupertino
Seeking court determination of validity for one of the petitions challenging Vallco Project
The City Attorney recommends that council authorize the filing of litigation seeking a ruling from Santa Clara County Superior Court to determine the validity of a referendum petition against the General Plan Amendment for the Vallco Town Center Specific Plan Project. In addition, council is asked to reject another referendum against the Zoning Designations and Zoning Map for failure to comply with the Elections Code.
In September and October 2018, council adopted three resolutions and enacted three ordinances in connection with its approval of the Vallco Town Center Specific Plan Project. Opponents of the project filed four referendum petitions challenging two of the resolutions (No. 18-085, amending the City’s General Plan, and No. 18-086, adopting the Vallco Town Center Specific Plan) and two of the ordinances (No. 18-2178, adopting zoning designations and amending the City’s Zoning Map, and No. 18-2179, adopting a development agreement). Vallco’s attorneys sent letters in December 2018 claiming that that the referendum petition against the General Plan Amendment and the Zoning Amendment failed to include the full “text” of that Resolution as required by the Elections Code.
The City Clerk has concluded that one of the challenged referendum petitions (which protests the ordinance rezoning the Vallco property) is procedurally defective and must be rejected because it does not comply with the Elections Code’s requirement to include the full text of the challenged ordinance. The City Clerk believes that the other challenged referendum petition (which protests the General Plan Amendment for the Project) “substantially complies” with the “full text” requirement and all other Elections Code requirements. However, under the applicable case law, it is not clear whether the City Clerk (as opposed to a court) has discretion to make such a substantial compliance determination on her own. Accordingly, the City Attorney has recommended that the City Clerk file an action for declaratory relief in Santa Clara County Superior Court to establish whether this referendum petition substantially complies with the full text requirement.
Once the Court determines whether the referendum challenging the General Plan Amendment substantially complies with the Elections Code, staff will bring the two unchallenged referendum petitions (which protest approval of the development agreement and specific plan for the Project) back to the council for a determination whether to place them on the ballot or repeal them.
Where: Cupertino City Council
When: Tuesday, February 19, 2019, 5:30pm
Link to item: https://cupertino.legistar.com/LegislationDetail.aspx?ID=3861291&GUID=9AB9FB98-79ED-4EDC-B9FB-112AA3A1C928&Options=&Search=
Link to agenda: https://cupertino.legistar.com/MeetingDetail.aspx?ID=655490&GUID=10C6016A-460F-4BAD-9B36-FE5660545CA3&Options=&Search=
Direction on potential regulation of residential short-term rentals
Council will discuss and provide direction regarding potential regulation for residential short-term rentals.
The City Council has the authority to regulate or prohibit STRs within City limits. The municipal code currently defines STRs as hotels. They are currently prohibited from operating in all five of the City’s residential zoning districts, but may operate, via conditional use or by-right, in all three mixed-use zoning districts, and are conditionally allowed in three out of the five commercial zoning districts and in all three industrial zoning districts. The City’s current code also requires STRs to obtain a business license and regulates STRs by requiring the operators to collect and remit transient occupancy tax (TOT).
To proactively enforce the current code requirements for STRs or to move forward with a new regulatory program could require additional staff effort, primarily because STR services do not provide basic information like an operator’s full name, exact address, or occupancy rates for their listings. Regulations for STRs can be tailored to fit the unique needs of the community. Thus far, there is no standard practice amongst municipalities, although the variables are relatively consistent. Municipalities in Santa Clara County have followed suit by taking different stances on the regulation of STRs. The cities of Cupertino, Los Altos Hills, Los Gatos, Mountain View, San Jose, and Sunnyvale are either actively regulating STRs or considering the regulation of STRs, while the cities of Campbell, Gilroy, Monte Sereno, Morgan Hill, Palo Alto, Santa Clara, and Saratoga have no regulation or prohibit the use of STRs entirely
There were approximately 341 STRs available within Milpitas as of November 2018. Of the 341 STRs available within Milpitas, roughly 235 STRs (69 percent) are single-family, 85 STRs (25 percent) are multi family, and 21 STRs (6 percent) are unknown property types. Furthermore, of the 341 STRs available about 197 STRs (58 percent) are considered a partial home rental while 126 STRs (37 percent) are listed as an entire home. Moreover, of the 341 STRs available within Milpitas, roughly 220 or 64.5 percent are listed with Airbnb as of July 2018, according to Airbnb officials. With the majority of STR operators in Milpitas utilizing Airbnb, City staff engaged Airbnb regarding entering into a voluntary tax collection agreement with the City that would result in Airbnb collecting 517 3 TOT on behalf of its users and remitting the revenue directly to the City. Over 45 California municipalities have executed a tax collection agreement with Airbnb, including the cities of Cupertino, Morgan Hill, Palo Alto, San Jose, Santa Clara, and Sunnyvale. With City Council direction, staff will begin exploring a voluntary tax collection agreement with Airbnb for the collection and remittance of the City’s TOT. Staff estimates that the City could generate an additional $237,000 in TOT revenue annually by executing a voluntary tax collection agreement with Airbnb.
Where: Milpitas City Council
When: Tuesday, February 19, 7pm
Link to agenda packet: http://www.ci.milpitas.ca.gov/_pdfs/council/2019/021919/package.pdf
Approving polling for public safety special sales tax measure
Staff recommend that council approve conducting communitywide polling through EMC Research on community support for a public safety special sales tax measure on the March 2020 ballot.
During the last Study Session on February 11, 2019 Council received a report on the progress the City is making to address the gap between service demand and existing service levels. The report identified that the City primarily provides basic services (as opposed to optimum or enhanced) to citizens, particularly as it relates to public safety.
The City is particularly challenged with addressing increased service demands on public safety, while also generating revenue to enhance service levels into the future. To achieve these goals, the Strategic Plan’s Implementation Action Plan identifies a potential ballot measure. In 2018, council approved and directed staff to proceed with a community poll that would provide data to gauge the voter support for a potential revenue measure.
Through a competitive proposal process, staff engaged EMC Research to serve as the opinion research firm to conduct the polling. The consultant recommended that the City should proceed with the polling, but modify the approach to include an assessment of customer satisfaction with the City, value assessment of City services, tax measures, homeless issues, parks, cost recovery, and other pressing issues. This would form a baseline for any future ballot measure process and enable the City to develop a strategy and outreach plan for such a potential measure. Additionally, it would provide information that may assist in the FY 20/21 budget process and gain feedback concerning Council’s adopted strategic plan initiatives. Therefore, Council directed staff not to proceed with a potential sales tax measure for the November 2018 election, but continue to proceed with a community-wide poll for a revenue ballot initiative in a near-future election.
If staff’s recommendation is approved by Council, staff will continue working with EMC Research to enter into a standard agreement, revise the polling approach, and discuss proposed polling questions with Council.
Where: Gilroy City Council
When: Tuesday, February 19, 2019, 6pm
Link to item: http://gilroyca.iqm2.com/Citizens/Detail_LegiFile.aspx?Frame=&MeetingID=1757&MediaPosition=&ID=1968&CssClass=
Link to agenda: http://gilroyca.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1757
Update on High-Speed Rail project
At this study session, California High-Speed Rail Authority staff will provide an update on the California High-Speed Rail (CHSR) project. The study session will include an overview of the current status of the project including the environmental review schedule for various phases of the project, alignments under consideration through Santa Clara, future public outreach, construction activities in the Central Valley, and the 2018 CHSR Business Plan.
Where: Santa Clara City Council
When: Tuesday, February 19, 2019, 4:30pm
Link to item: https://santaclara.legistar.com/LegislationDetail.aspx?ID=3862944&GUID=4F71729A-FBC7-43BB-9CF3-B2BB991EA168&Options=&Search=
Link to agenda: https://santaclara.legistar.com/MeetingDetail.aspx?ID=640619&GUID=2C696A4F-4F60-42F7-B398-2DBA494A0CE7&Options=&Search=
Santa Clara County Board of Education
Revoking the Legacy Academy’s charter via voluntary relinquishment
Over the last few months, the SCCOE staff became aware that The Legacy Academy charter school had engaged in fiscal mismanagement, was in violation of the law (specifically the Charter Schools Act of 1992), and had committed a material violation of the conditions, standards, or procedures set forth in its Amended Charter. Each of these matters constituted cause for revocation of Legacy’s Charter, and so on December 12, 2018, the SCCBOE approved issuing a Notice of Violations. On February 6, 2019, the SCCBOE issued to The Legacy Academy, Inc., a Notice of Intent to Revoke, and set a public hearing on the revocation of Legacy’s Charter for the SCCBOE’s February 20, 2019, meeting. On February 13, 2019, the Board of Directors of The Legacy Academy, Inc. voted 4-1 to close Legacy Academy by March 15, 2019. On February 14, 2019, Legacy’s Executive Director informed the County Superintendent in writing of the Legacy Board’s action voluntarily relinquishing the Legacy Charter and closing The Legacy Academy on or before March 15, 2019.
It is the recommendation of the SCCOE’s Charter staff that the SCCBOE accept the Voluntary Relinquishment of the Charter for and Closure of The Legacy Academy Charter School on or before March 15, 2019. Alternatively, if the SCCBOE does not adopt accept the voluntary relinquishment of the Charter for and closure of The Legacy Academy charter school in the manner provided for by Legacy’s Board, SCCOE’s Charter staff recommends that the SCCOE hold a public hearing on the revocation of the Legacy Charter as specified in the NIR.
Where: Santa Clara County Board of Education
When: Wednesday 5pm, February 20, San Jose Room, 1290 Ridder Park Drive, San Jose, CA 95131
Link to item: http://www.boarddocs.com/ca/sccoe/Board.nsf/goto?open&id=B9K25B6401DC
Link to agenda: https://www.boarddocs.com/ca/sccoe/Board.nsf/Public
Approve ENA with Republic/Swenson/EAH for 300-unit residential development at the Blossom Hill light rail station
The board will consider approving an Exclusive Negotiation Agreement with Green Republic Blossom Hill LLC ( a joint venture of Republic Urban, Swenson, and EAH Housing ) for a proposed development at the Blossom Hill Light Rail station. The proposal from the Joint Venture calls for 300 new rental residential units and 12,580 square feet of retail space, plus 382 spaces of new shared project parking. Sixty-eight (22.5%) of the apartments would be affordable rentals, and 232 would be market-rate units. GRBH (the joint venture) proposes a ground lease with a term of 65 years.
The 232 market-rate units and approximately 10,000 square feet of commercial space are proposed for a single building owned and developed by a 50-50 partnership comprising Republic Urban and Swenson. The proposed 68 affordable units would be in a connecting building with approximately 2,850 square feet of commercial space owned and developed by EAH Housing. Within the affordable apartment building, 10% of the units would be for families earning up to 30% of Area Median Income (Extremely Low Income); the remaining apartments would be for families earning up to 50% of Area Median Income (Very Low Income).
Where: VTA Administration and Finance Committee
When: Thursday, February 21, 2019 12:00 PM VTA Conference Room B-106 3331 North First Street San Jose, CA
Link to agenda: http://vtaorgcontent.s3-us-west-1.amazonaws.com/Site_Content/af_022119_packet.pdf
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