TO: HONORABLE MAYOR FROM: Matt Loesch
AND CITY COUNCIL
SUBJECT: SEE BELOW DATE: February 21, 2023
Approved Date
3/3/2023
SUBJECT: S TATUS REPORT ON THE NOVEMBER 2018 BALLOT MEASURE T –
THE DISASTER PREPAREDNESS, PUBLIC SAFETY, AND
INFRASTRUCTURE GENERAL OBLIGATION BOND
RECOMMENDATION
(a) Accept the status report on the workplan and implementation updates for projects included in approved 2018 Measure T Bond Measure.
(b) Approve the proposed funding of projects identified in Table 3 of this report to:
a. Reallocate the remaining Environmental Protection Funds; b. Rescope the Fire Station 23 Project; and
c. Allocate $7.1 million that had been previously set aside for the cost of bond issuance.
SUMMARY AND OUT
COME
The approval of the recommendation provides the City Council with updated information on the status of projects and programs relating to the voter-approved 2018 Measure T – The Disaster Preparedness, Public Safety, and Infrastructure Bond, as well as the needed decision for funding of projects within the Public Safety Program. The memorandum provides status updates on all the Measure T projects as they are progressing through the feasibility, design, and construction phases. Additionally, this memorandum outlines the details of the funding needs for the Measure T – Public Safety Program and is requesting City Council to provide a policy decision to staff regarding the use of the Program Reserve for Public Safety and program savings and/or budgets to facilitate the design and construction of these projects.
COUNCIL AGENDA: 03/14/23
FILE: 23-365
ITEM: 3.5
HONORABLE MAYOR AND CITY COUNCIL
February 21, 2023
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety and Infrastructure General Obligation Bond
BACKGROUND
Measure T, approved by voters in November 2018, provides for the issuance of $650 million in General Obligation Bonds to fund a variety of important infrastructure projects throughout the City. As outlined in Attachment A (General Obligation Bond Project Categories & Budgets), which includes a brief summary of the initial projects and goals for each category, nearly half of this investment ($320 million) will be put towards the resurfacing and repair of City streets and bridges in the worst condition. The remaining $330 million is broken down into the following project categories:
1. Public Safety: $175 million.
2. Environmental Protection: $50 million
3. Storm Sewer Conveyance & Flood Protection: $35 million
4. Clean Water Projects (Green Stormwater Infrastructure): $25 million
5. LED Lighting (streetlights and City Facility): $20 million
6. Community Center Improvements: $12.95 million
Since the time voters approved the Bond Measure, the City Council has received annual updates and provided direction on the implementation of the Measure T program. Past updates are linked below for reference
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Most recently, on June 28, 2022, City Council approved a report and supplemental memorandum titled Status Report on the November 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond Item 3.4
9. The report included staff’s
update on the project workplans and implementation schedules, as well as outlined the projected funding needs for the Public Safety Program. As part of the June 28, 2022 supplemental memorandum, staff requested to defer the decision on the allocation of funding for the projects identified in Table 4 in the June 28, 2022, Measure T Status Report until early 2023, since more detailed cost estimates for the majority of the public safety projects would be available at this time.
ANALYSIS
In the most recent report to City Council, staff identified funding gaps in the Public Safety Program. Subsequently, $7.1 million which was set aside for the cost of issuing the bonds is now
1 http://files.constantcontact.com/7a210436601/dbd7436a-7b55-4264-b1e4-e25cc8a0b8a3.pdf 2 https://sanjose.legistar.com/LegislationDetail.aspx?ID=3847489&GUID=DCF04188-1A48-4F02-B12D-24873EAD82E5&Options=&Search= 3 https://sanjose.legistar.com/View.ashx?M=F&ID=7319023&GUID=A6FDC251-C03F-4AC5-BF59-75566033BBA0 4 https://sanjose.legistar.com/View.ashx?M=F&ID=7319022&GUID=0BE80643-A261-4A59-B22B-D50B649E3175 5 https://sanjose.legistar.com/View.ashx?M=F&ID=7930362&GUID=B1D89BAF-37DB-4CEB-A297-96E19FF240EE 6 https://sanjose.legistar.com/View.ashx?M=F&ID=8453769&GUID=CC323CC8-820D-408E-84B9-8C2C79491C75 7 https://sanjose.legistar.com/View.ashx?M=F&ID=8943050&GUID=A6F24606-B5B8-4514-A76F-3ACD0B667913 8 https://sanjose.legistar.com/LegislationDetail.aspx?ID=4970453&GUID=102628A4-C99B-407D-B9D5-E79441D5784A&Options=&Search= 9 https://sanjose.legistar.com/LegislationDetail.aspx?ID=5697307&GUID=04EADE87-A 463-4DBB-8A3E- EBB6D5C96AC0&Options=&Search=
HONORABLE MAYOR AND CITY COUNCIL
February 21, 2023
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety and Infrastructure General Obligation Bond
available for capital projects. The cost of issuing the bonds is paid from the premium generated.
With the available funding of $15,350,000 (Table 1) from the Public Safety Program Reserve, reallocation of the savings from the Environmental and Flood Protection project, and additional bond proceeds, staff requests the City Council approve the recommendation contained in this memorandum on how to allocate the remaining funding and address the funding shortfall in the Public Safety Program. It is important that the City Council give direction on this policy decision as the cost estimates for the public safety projects have risen drastically since the inception of the bond program with inflation; as we reach the final projects, the remaining Public Safety Program Reserve alone will not be sufficient. Given this, it is important that the City Council weigh in on the use of savings from other Measure T project categories to either keep the savings in the original appropriation or reallocate them to the Public Safety Program.
Attachment B (Public Safety Project Estimates Schedule) shows that five of the seven remaining public safety projects will have a 95% cost estimate completed by the beginning of May this year. The 95% cost estimates are based on construction documents that are nearly completed and include future escalation factors. Typically, during the 95% review period, staff will perform any additional value engineering with the consultants to dissect the cost estimate and, if possible, reduce or remove certain items as appropriate. Therefore, the 95% cost estimates are as close to what the final estimate of the project is expected to be. With the availability of several of the 95% cost estimates, staff now have a clearer understanding of the shortfall within the public safety program.
In order to continue with the timely construction of the needed Police Training and Academy Facility, 9-1-1 Call Center Upgrades, Police Headquarters Infrastructure Upgrades, Fire Station 36, and Police Air Support Unit Hangar projects, Table 2 identifies the additional funding needed for these projects and the funding gap. An estimated additional $23.3 million is necessary to design and construct the projects listed above meeting the needs to develop a functional facility and deliver on the promises made to the voters when the bond measure was passed, yet $15.4 million of funding has been identified, thus leaving a program shortfall of $7.9 million.
The tables below break down the available funding, the staff recommended use and the funding available, and the analysis of the funding needs which was used in developing staff’s recommendation.
In particular, staff is recommending to the City Council how to address the shortfall presented in Table 2.
HONORABLE MAYOR AND CITY COUNCIL
February 21, 2023
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety and Infrastructure General Obligation Bond
Table 1
Funding Sources Available
Available Funding
Remaining Program Reserve for Public Safety $5,100,000 Environmental and Flood Protection Project
Savings*
$3,200,000
Funding Remaining per the June 28, 2022
memorandum
$8,300,000
Bond Proceeds – Previously Reserved for Cost of
Issuance
$7,050,000
Total $15,350,000
*As identified in the Environmental and Flood Protection Project section later in this report. If this funding is not approved through staff’s recommendation as outlined below for the Public Safety Program, the total funding available will be $12,150,000.
Table 2
Staff Recommended Use and the Funding Available
Projects Funding Need* Description/Comments Notes
Police Training
and Academy
Facility
$9,828,000 This would increase the
current budget to match
the current estimate for a
full project build out.
An additional $9.8 million is
needed based on current
estimates to facilitate the full
build out of the project and
facilitate a Southern Patrol Unit
to occupy the Substation as well
as open the Substation to the
public.
Police Air
Support Unit
Hangar
$5,709,000 This would increase the
budget to match the
current estimate for the
build out of the base bid
and bid-alternate 1,
providing two hanger
bays for the Police Air
Support Unit.
Total current cost estimate is
$16.7 million for the base bid
and bid alternate 1 which will
build two aircraft bays. Deficit
is currently $5.7 million. This
hangar must be relocated prior
to the new terminal
construction.
9-1-1 Call Center
Renovation
$3,309,000 This would increase the
budget to match the
current estimate for the
build out of all phases of
construction.
An additional $3.3 million
would fund both phase I and
phase II of the 9-1-1 Call
Center Rehabilitation Project,
providing a functional space for
HONORABLE MAYOR AND CITY COUNCIL
February 21, 2023
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety and Infrastructure General Obligation Bond
Projects Funding Need* Description/Comments Notes
the end users. This project was
specifically named in the bond
language presented to voters.
Police
Headquarters
Infrastructure
Upgrades
$2,693,000 This funding is necessary
to address the plumbing
need due to the aging
piping system which is
causing major clogging,
increased maintenance
calls/concerns, and
unsanitary working
conditions for employees.
If not approved, this
project would likely focus
on other lower priorities
such flooring
replacement, and
upgrades to security
systems, since replacing
only a portion of the
plumbing infrastructure is
not practical.
The current cost estimate is
$6.25 million, with an increase
of funding in the amount of
$2.7 million necessary. This
allocation would address the
primary concern, which is the
plumbing, and would include
replacement of the piping
systems throughout the
building.
As of the June 28, 2022
memorandum, approx. $2.27
million was allocated, providing
the project a total budget of
approx. $3.55 million. If the
funding need of approx. $2.7
million is not provided, staff
would likely focus on other
lower priorities.
Fire Station 32
Dual Company
Expansion
$518,000 This would increase the
current budget to match
the current estimate for
the build out of the dual
company expansion.
As of the June 28, 2022
memorandum, $2.5 million was
allocated from the Fire Station
Rehabilitation and Potential
Overages to cover a portion of
the identified shortfall at that
time. An additional $518,000 is
needed based on current
estimates to facilitate the full
build out of the project and
facilitate a second company to
be stationed at this location.
Fire Station 36 $1,475,000 Shortfall is assuming
future build and
escalation factors for
construction of the new
station in year 2024.
HONORABLE MAYOR AND CITY COUNCIL
February 21, 2023
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety and Infrastructure General Obligation Bond
Projects Funding Need* Description/Comments Notes
Fire Station 23 $2,463,000 Shortfall is assuming
future build and
escalation factors for
construction of the new
station in year 2027.
If project is rescoped to focus
on land purchase only, this
shortfall is no longer accounted
for within the funding need
outlined below in Table 3.
Fire Stations
Rehabilitation
and Potential
Overages and
Savings
(2,698,000) At the inception of the program,
$5 million was programed from
the Public Safety Reserve to
cover rehabilitation of existing
fire stations. As of June 28,
2022 memo, staff recommended
to use that funding to cover the
funding needs and potential
overages of the fire station
projects, including allocating
$2.5 million to Fire Station 32.
Remaining funds of $2.5
million and estimated project
savings of $198,000 are
recommended to be used to
offset costs.
Total Funding
Need
$23,297,000
Total Available
Funding as
Identified in
Table 1
$15,350,000
Program
Shortfall
($7,947,000)
*The funding need is based on current cost estimates. The actual funding need and allocation may change once bids are opened in the upcoming months. Refer to Attachment B for estimated bid opening dates for each project.
HONORABLE MAYOR AND CITY COUNCIL
February 21, 2023
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety and Infrastructure General Obligation Bond
Table 3
Staff Recommendation to Utilize the Funds Available of $15.4 million from Table 1 above
Projects Allocate
Funding
Notes
Police Training & Academy $9,828,000
Police Air Support Hanger 5,709,000
9-1-1 Call Center
Renovations
3,309,000
Police Headquarters
Infrastructure Upgrades
2,693,000
Fire Station 32 518,000
Fire Station 36 1,475,000
Fire Station Rehabilitations
and Potential Overages and
Savings
(2,698,000)
Rescoping Fire Station 23
(Land Purchase Only)
(12,434,000) If we purchase the land only, the funding need for this project is reduced from $16,509,000 to
$4,075,000.
Total Use of Funds $8,400,000
Total Available Funding $15,350,000 See Table 1 for details Funding Available for
Potential Overages and/or
Fire Station 23
$6,950,000 A total of $6,950,000 would remain in the
reserve with the goal of keeping it for the design
and construction of Fire Station 23 but shifting it
to priority projects pending bid results.
Staff’s recommendation to address the overall Public Safety Program shortfall:
1. Allocate $7.1 million that had been previously set aside for the cost of bond issuance;
2. Reallocate the remaining Environmental and Flood Protection project savings of $3.2 million; and
3. Rescope the Fire Station 23 project, focusing on the land acquisition only.
Fire Station 23 currently has a budget amount of $16.5 million, as established in the 2022-2023 Adopted Capital Budget. Staff recommends rescoping Fire Station 23 and using up to $4.1 million for the purchase of land and associated expenses, reallocating a portion of the remaining funding to cover the other critical public safety projects as identified in Table 3, and allocating $7.0 million in the Public Safety Program Reserve. The $7.0 million held in the Public Safety Program Reserve could be used to fund potential overages within the Public Safety Program pending bid results in spring and summer of this year or all or a portion of the funding could be used for the design and construction of Fire Station 23.
HONORABLE MAYOR AND CITY COUNCIL
February 21, 2023
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety and Infrastructure General Obligation Bond
If the $7.0 million is needed solely for other Public Safety project overages and the cost to buy the land and design and construct Fire Station 23 project is estimated to be $18.8 million, then the funding gap for Fire Station 23 would be approximately $15 million. Should funding be available for Fire Station 23, staff could potentially restart the project by June 2024, with a tentative contract award in 2027, pending the property has been purchased. Staff will seek to identify General Fund and Fire Construction and Conveyance Tax Fund sources for Measure T overages in the budget process.
Since the June 28, 2022 report, several significant activities have taken place. The following is a list of the progress made, activities currently underway in each of the major project categories, as well as additional information regarding the funding needs if a shortfall has been identified:
1) Community Oversight Committee (COC) – The COC has held three meetings since the June 28, 2022 report. During the meeting held on August 18, 2022, the COC members voted on a new chair and vice chair. The COC also discussed the plans and approved the creation of an ad hoc committee. The responsibility of the ad hoc committee is preparing the COC’s review of the Auditor’s report and the expenditures of the Measure T Bonds as reported in the City of San José Public Safety and Infrastructure Bond Projects Fund Annual Auditor’s Report. The COC’s report on the review and a copy of the Auditor’s Report will be presented to City Council on March 7, 2023. A second meeting was held on November 10, 2022 in which the COC reviewed the Auditor’s report for the year ending June 30, 2022. The COC also reviewed the schedule of events for the COC’s report and discussed plans for filling the COC vacancies. The third meeting was held on January 24, 2023 in which the ad hoc committee reviewed its final report to City Council with the greater COC and staff presented projected revised project costs.
The next meeting will be held in June 2023 to review the 2023-2024 Proposed Capital Budget and 2024-2028 Capital Improvement Program to ensure consistency between the budget for Measure T funds and the voter approved purposes for the funds. Currently, there are nine seats filled and six vacant positions from District 3, District 5, District 8, District 10, the at-large seat for the Citywide Finance role, and the at-large seat for environmental focus.
2) Public Safety Projects – The approved Measure T Program allocates $180.9 million to complete public safety projects. Site selection, land acquisition, and scoping are continuing for several projects and are significant factors in ensuring these projects are delivered within the funding allocation. A summary of current activities in the Public Safety category is described below. The updated schedules for all Measure T projects are described in Attachment C (Project Implementation Schedules).
(a) New Fire Station 37 – The project was awarded on June 30, 2020 to Gonsalves & Stronck, Inc. in the amount of $8,715,600 and began construction in September 2020.
HONORABLE MAYOR AND CITY COUNCIL
February 21, 2023
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety and Infrastructure General Obligation Bond
The project received a Temporary Certificate of Occupancy and has been fully operational since May 2022.
(b) Relocated Fire Station 8 – Staff completed the sale of the City’s 575/579 E. Santa Clara Street property to the Santa Clara Valley Transportation Authority in April 2022. The City utilized the sale proceeds to acquire the site located at 601 E. Santa Clara Street from the Santa Clara Valley Housing Authority with the intent to construct Fire Station 8 on this property, as approved by City Council on March 2, 202110. This location is envisioned to serve as a single-company station with the capability of expanding to a dual-company station to accommodate future service demands in the area. The design is nearly complete, and staff will proceed to solicit bids in May 2023 and anticipate beginning construction in September 2023.
(c) New Fire Station 32 – The City acquired the property located at 1138 Olinder Court along the northeast corner of Olinder Court and Felipe Avenue. This station was originally envisioned to be a single-company station, but after further evaluation, it was determined the new station would be better served as a dual-company station to accommodate the service demands in this area. Initial estimates, as reported in the June 28, 2022 memorandum to City Council, showed there was a $3.8 million shortfall for the full build out of the Fire Station 32 as a dual company station.
Because of this shortfall, staff proceeded with designing the dual company expansion as a bid alternate, and recommended in the June 28, 2022 memo to use $2.5 million of the $5.0 million set aside specifically for Fire Station Rehabilitation and Potential Overages to close the funding gap identified for the construction of the single company station.
Since the June update to Council, staff was able to reduce the shortfall by approximately $800,000. With the added $2.5 million from the Fire Station Rehabilitation and Potential Overages, the shortfall now identified to construct the dual company station expansion is $518,000, as identified in Table 2 above.
The design is complete and the project will proceed to advertise for bidding in March 2023 with an anticipated award in late May 2023. Construction is expected to begin later in the summer of 2023 with a completion date in fall 2024.
(d) Relocated Fire Station 23 – Fire Station 23 is intended to replace the existing station located on Capitol Avenue at Via Cinco de Mayo. Staff anticipates acquiring a location further from the Milpitas border to improve coverage within City limits and planned developments in North San José. Fire Station 23 is the fourth priority station as approved by City Council in the June 18, 2019 memorandum Measure T – New Fire Station Placement Prioritization (Item 8.1).
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HONORABLE MAYOR AND CITY COUNCIL
February 21, 2023
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety and Infrastructure General Obligation Bond
This relocation project was intended to be a co-development partnership with Public Works and the Housing Department, constructing both a fire station and affordable housing complex on the shared lot. Due to limited availability of funds to purchase the property in its entirety, staff shifted the focus away from the shared use to solely focus on property acquisition for the future fire station.
This project currently has a budget of $16.5 million; however, due to construction price escalations, an additional $2.5 million is estimated to be needed for the full buildout of this fire station — sufficient funding may not be available to complete this project once a site is selected.
The effort to find a suitable site has proven to be the most difficult task associated with this relocation project. Properties that provide suitable travel times to the station’s service area are limited and tend to be large parcels that are fully developed or slated for development. Due to the limited supply of suitable sites, staff have approached property owners to find off-market opportunities for site acquisition. Staff has identified a potential site which fits the necessary parameters needed to comply with the Fire Department’s optimal travel time requirements. However, staff is actively negotiating with the property owner and will provide further updates to City Council as negotiations progress. Because this station does not have dedicated land to develop and will be the last to proceed forward to design, as part of the policy decision discussed further in this memorandum under the Program Reserve for Public Safety section, staff recommends rescoping the Fire Station 23 project and focusing funds solely on the purchase of a property for the future build of the relocated fire station.
If the policy decision outlined in this memorandum is approved by City Council and funding resources are available, staff could potentially restart the Fire Station 23 project in June of 2024 with a tentative contract award in 2027.
(e) New Fire Station 36 – Staff selected a site at the intersection of Capitol Expressway and Tuers Road for the construction of Fire Station 36. The City owns most of the property needed to construct the station, however a portion of the required buildable area is considered to be public right-of-way owned by the County of Santa Clara (County). After extensive negotiations with the County to acquire the needed property to assemble the City and County-owned lands, City Council approved the acquisition on December 13, 2022. The County’s Board of Supervisors approved the sale on January 24, 2023. Funds are currently in escrow and the property acquisition is expected to close escrow in late February. The Request for Proposals process will move forward in the upcoming months to hire a consultant for the design services.
Overall, this project is estimated to need an additional $1.5 million.
HONORABLE MAYOR AND CITY COUNCIL
February 21, 2023
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety and Infrastructure General Obligation Bond
(f) Fire Station 20 – Aircraft Rescue and Firefighting Facility – Fire Station 20, located at the southwest area of the Airport, replaced the older existing Aircraft Rescue and Firefighting Facility station in that area. During construction, the City took the opportunity to add a landside bay to the project, increasing operational efficiency to the Fire Department’s emergency response to the surrounding area. The project was completed at the end of March 2022, with the newly expanded fire station officially online and operational.
As directed by the City Council-approved Mayor’s March Budget Message for Fiscal Year 2020-2021, $4.6 million of Measure T funding initially allocated to expand Fire Station 20 to include landside operations with the expectation that the advanced cost would be reimbursed from other funding sources at a later date. Due to higher than anticipated costs, interest earnings generated from Measure T funds of $1.1 million were also allocated to Fire Station 20, bringing the total project cost to $5.7 million (for reference, an additional $3.6 million from interest earnings allocated to other Public Safety Measure T projects as described in the June 28, 2022 memorandum). A transfer of $2.3 million from the General Fund in 2021-2022 partially replenished the $4.6 million initially advanced for this project. As supplemental resources from the General Fund and the Construction Tax and Property Conveyance Tax Fund: Fire Protection Purposes will be needed in the near term for FF&E needs, the remaining $2.3 million is not currently scheduled for replenishment. The replenishment of the remaining $2.3 million may be considered as part of a future budget process, within the context of future additional interesting earnings and other funding needs of the program.
(g) Police Training and Academy Facility – The City acquired 300 Enzo as the site for the Police Training and Academy in March 2021. The design is 95% complete and staff expects the project to be advertised for bid in May 2023 and starting construction in late summer of 2023. The project budget as detailed in the 2022-2023 Adopted Capital Budget 2023-2027 Adopted Capital Improvement Program is $49.7 million.
As outlined in the June 28, 2022 memorandum, staff reported this project to have a shortfall of $11.1 million. The approved recommendation from City Council allocated $9 million to this project, increasing the allocation to $58.7 million. Staff have worked diligently to develop the project design since the last update to City Council but have continued to encounter increases in the construction costs, mainly due to inflation and material costs, specifically steel, electrical, and HVAC equipment.
Staff estimate an additional shortfall of $9.8 million is needed to complete the full build out of this project. The shortfall includes the Police Department requirements to fully open the South Substation for its intended purpose and to develop the needed space to accommodate two full concurrent academies and training spaces. Staff has
HONORABLE MAYOR AND CITY COUNCIL
February 21, 2023
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety and Infrastructure General Obligation Bond
committed to including the full academy as part of the base bid and placing the training spaces as bid alternates. With just the base bid, the project still anticipates a shortfall of $1.1 million. However, in order to facilitate the southern patrol division to occupy the Substation, the minimum project funding required is $5.7 million. This will fund the academy spaces and facilitate the move of the academy out of the Substation to 300 Enzo, but funds only a portion of the training spaces which are currently being conducted at the Substation. If all training functions cannot be fully transitioned from the Substation to 300 Enzo, the Police Department will not be able to open the Substation to the public due to space constraints. The Police Department will be able to open the Substation to the public only if training is completely moved to 300 Enzo, which means funding the entire $9.8 million shortfall. Therefore, Staff recommends adding $9.8 million as shown in Table 3 to fund the full build out of the project.
(h) Emergency Operations Center – The project, in conjunction with the Fire Department Training Center, was awarded on January 12, 2021 to Zovich Construction, Inc. in the amount of $54,105,000. Construction started March 2021.
Due to delays experienced by multiple utility coordination efforts, and supply chain delays, the new buildings and the remodel of building D4 are expected to be completed in mid to late summer of this year with beneficial occupancy occurring a month or two after.
(i) 9-1-1 Call Center Renovation –The project will provide improved working conditions in a more efficient space to handle the increasing number of calls and to take advantage of the changing methods and technologies the public utilize to call for 9-1-1 service. The 9-1-1 call center will assume the space currently occupied by the existing Emergency Operations Center; therefore, construction is expected to start after the Emergency Operations Center relocates to its new facility at the Central Service Yard.
As part of the delivery of this project, partial demolition, repairs/replacement of walls, floors, and ceiling, and changes to the associated mechanical and electrical components are required. The Measure T (Phase I) work currently includes (1) moving non-dispatch personnel to the space being vacated by the Office of Emergency Management, which includes installing new walls, private and open offices, and workstations; and (2) the addition of 14 new dispatch workstations by windows, which opens the area to natural light. The Phase I work is currently estimated to have a shortfall of approximately $1.1 million. Additionally, staff has identified a need for added phases of work requiring approximately $2.2 million in additional funding. These phases include upgrading the existing dispatch areas for the Fire and Police Department outside the expanded dispatch areas, relocation of the training room, two new quiet rooms, four office rooms, a lactation room, a copier room, and additional storage rooms. The design is 95% complete and staff expects to
HONORABLE MAYOR AND CITY COUNCIL
February 21, 2023
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety and Infrastructure General Obligation Bond
advertise the project for bidding by summer of this year, with an anticipated construction start date in fall of this year. The bid package will include the additional phases identified above as bid alternates, though the Fire and Police Departments have expressed the need to include these additional phases of the project in order to achieve a cohesive build-out of the facility.
To facilitate the full build out of the 9-1-1 Renovation Project, staff recommends increasing the allocation by $3.3 million as shown in Table 3.
(j) Police Air Support Unit Hangar – The location of this project is at the southwest corner of the Airport property, near Coleman Avenue and Airport Boulevard. This triangular site will also house the relocated Aircraft Rescue and Fire Fighting Facility (Fire Station 20) described above, as well as the Airport Facilities Division. The project budget is $10.1 million. In the June 28, 2022 memorandum, staff reported this project to have a shortfall of $780,000 for the base bid only, and the approved recommendation from City Council increased the funding to $10.9 million. The design is 95% complete and staff expects to issue the project out to bid in late summer of this year and begin construction in the fall. The project is currently designed with one bay to house the existing police helicopter and a bid alternate for a second bay for a fixed wing airplane. With the base bid alone, the project is anticipated to have a shortfall of $2.9 million, and a shortfall of $5.7 million for the build out of the base bid and bid alternate.
Historically, the Police Department has had two aircrafts, one fixed-wing and one helicopter. The department’s ’s current helicopter, Air3, is being used for a multitude of missions and is cycling through its useful life at an accelerated pace, due to the lack of assistance that can be provided by the second aircraft. The primary duty for Air3 is to assist uniformed patrol, followed by surveillance, critical incident management, search and rescue, and transportation. There is need to supplement the Police Department’s Air Support Unit with a fixed-wing aircraft that would relieve Air3 of workload.
It is important to understand that because the eventual purchase of a replacement fixed-wing airplane is a departmental priority, this necessitates the completion of the second bay within the Measure T funded Hangar construction project. If the second bay is not completed at the time of construction of the larger project, additional cost implications will apply including additional costs to lease another, separate hangar on the San José Airport property or the additional costs to build the second bay after the fact.
HONORABLE MAYOR AND CITY COUNCIL
February 21, 2023
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety and Infrastructure General Obligation Bond
To facilitate the full build out of the Police Air Support Hanger (base bid and bid alternate), staff recommends increasing funding by $5.7 million for this project.
(k) Police Headquarters Infrastructure Upgrades – Staff completed preliminary scoping exercises working closely with the Police Department to identify potential projects to be completed at the Police Administration Building (PAB). Initial estimates identified a need of approximately $11.7 million to address all backlog infrastructure projects. The highest priority projects identified include improvements to the plumbing throughout the facility and improvements at the existing gun range.
To address these needs, the improvements require an estimated $6.3 million. Staff included $1 million in the 2022-2023 Adopted Capital Budget to upgrade the ventilation system and HVAC system in the gun range to provide adequate training space for officers, and at the June 28, 2022 City Council meeting, City Council approved allocating approximately $2.2 million to the PAB program.
The target system replacement for the existing range at PAB is currently being processed for procurement with the City’s Purchasing group leading the procurement.
The scope is currently being reviewed to go out to request bids.
As shown in Table 3, an additional $2.7 million is needed to ensure the high priority projects at the PAB can be addressed.
(l) Program Reserve for Public Safety – Originally $36.4 million of the Measure T funds was set aside in the reserve for various public safety projects including: Police Headquarters Infrastructure Upgrades, rehabilitation of various fire stations, as well as a contingency for Public Safety projects. Including the budget actions recommended in the June 28, 2022 memorandum, a total of $31.3 million of the reserve has been allocated to specific projects, with approximately $5.1 million remaining unallocated. As identified in the previous memorandum, the remaining funds in the reserve will not be enough to cover the shortfall for the existing projects or complete the remaining projects that have not begun. Additionally, as mentioned previously in this report, the continued cost escalations have now likely impacted the delivery of the final public safety project – Fire Station 23. Should the recommendations in the memorandum be approved, there would be $7.0 million in the Public Safety Program Reserve for Potential Overages and/or the construction of Fire Station 23.
3) Pavement and Bridge Maintenance
a) Street Resurfacing Projects – The City’s 2,519-mile pavement network includes 967 miles of “major streets”, and 1,552 miles of “local and neighborhood” streets.
HONORABLE MAYOR AND CITY COUNCIL
February 21, 2023
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety and Infrastructure General Obligation Bond
The Measure T Program designates $300 million for the repair or rehabilitation of local and neighborhood streets in the worst condition. Staff identified over 400 miles of streets dispersed throughout the City to be resurfaced or reconstructed with this funding.
The Department of Transportation (DOT) has resurfaced 294 miles since 2020 utilizing Measure T funds. A map that shows the locations of these 294 completed miles can be found in Attachment D (City of San José 2020-2023 Local Streets Measure T Streets). Combined with funding from Santa Clara Valley Transportation Authority’s 2016 Measure B, DOT has resurfaced a total of 319 miles of streets in poor condition since 2019.
Funds from Measure T, in combination with annual allocations from State gas taxes, 2016 Measure B, and other funding sources, are expected to ensure the appropriate and prescribed maintenance to all local and neighborhood streets in the City by 2028, while providing the appropriate maintenance to keep the Major Street Network in good condition. DOT continues to provide updated memoranda every spring to share tentative construction plans with the public.
In the 2022 construction season, DOT completed maintenance on 230 miles of San José streets, of which 134 miles were resurfaced and 1,755 associated curb ramps were constructed with the annual $37.5 million Measure T allocation. In the 2023 construction season, DOT plans to maintain 238 miles of San José streets, including 161 miles of local and neighborhood streets.
Currently, DOT remains on track to provide maintenance to each of the 1,552 miles of local and neighborhood streets by 2028.
(b) Bridge Repair and Rehabilitation Projects – The Measure T Program allocates $20 million for City-owned bridges that are designated as structurally deficient and could be vulnerable in an earthquake or other disaster. In order to address as many bridge projects as possible, staff is implementing a delivery strategy aimed at leveraging multiple funding opportunities such as Measure T and the Highway Bridge Program federal-aid funding which consists of Bridge Investment Credits. Staff programmed 45 Bridge Investment Credits eligible bridges to be structurally preserved or rehabilitated as part of four projects. The first two projects consisted of 27 bridges and were completed in June and November of 2020. The third project consisted of 15 bridges and was completed in December of 2021. The fourth project which addressed preserving or rehabilitating the remaining three bridges was completed in August 2022. These projects are expected to accumulate approximately $3 million in Bridge Investment Credits which will be distributed back, as the local match, into future prioritized bridge projects utilizing Highway Bridge Program grants along with Measure T funds.
HONORABLE MAYOR AND CITY COUNCIL
February 21, 2023
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety and Infrastructure General Obligation Bond
Staff recently submitted a new Bridge Investment Credits application package to Caltrans for 17 bridges and has received approval. This project is anticipated to accumulate approximately $1.3 million in Bridge Investment Credits. An additional deck treatment project on Story Road was completed in December 2022. An additional deck treatment project on Cropley Avenue is currently in the design phase with construction scheduled to begin in spring 2023.
In order to optimize Measure T funds and maximize the opportunity for grant funding, staff procured a consultant to assess the City’s bridge inventory using prioritization factors to provide major bridge rehabilitation project recommendations.
The consultant found that bridges in San José are in better condition than anticipated, and staff reviewed the consultant recommendations with respect to prioritization.
Due to oversubscription and recent funding shortfalls in the Highway Bridge Program, the eligibility criteria for bridge repairs and replacement have changed and funding is now limited to bridges that are either non-operational or need to be completely replaced. Because the City’s bridges all fall outside of this new eligibility criteria, the City’s original plan to leverage Measure T and Bridge Investment Credits for up to $80 million in grant funds is facing challenges. However, the Highway Bridge Program’s funding situation is evolving with the recent passage of the Infrastructure Investment and Jobs Act and staff will be ready to apply for grant funds as soon as funding becomes available. Staff will continue to work with counterparts at Caltrans to maximize grant opportunities and advocate for the increased availability of program funds. DOT will continue delivering bridge maintenance projects as scheduled and provide further information as they become available. 4) Light Emitting Diode (LED) Outdoor Lighting Projects
(a) City Facilities LED Lighting Projects – Staff continues to evaluate the actual outdoor lighting inventory and the number of fixtures that will be converted for City- owned facilities. Table 4 below provides the facilities listed in order of priority and an overview of the number of fixtures that have been converted using Measure T funding and the remaining number of fixtures to be completed. As mentioned in prior reports, Measure T funding is not sufficient to fully convert all the outdoor facility lights. Though $800,000 in the General Fund money was included in the 2022-2023 Adopted Operating Budget to replace the LED lighting at Municipal Stadium to comply with Major League Baseball requirements and $420,000 from the Service Yards Construction and Conveyance Tax Fund was also included in the budget to convert the exterior lighting at the service yards to LED lights, only 6,137 fixtures in parks, libraries, and community centers will be fully converted with Measure T funding. A funding shortfall of $4,000,000 has been identified if all outdoor lighting was to be converted to LED, and a budget request will likely be submitted for consideration during the 2023-2024 budget process.
HONORABLE MAYOR AND CITY COUNCIL
February 21, 2023
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety and Infrastructure General Obligation Bond
The conversion of the lighting in City parks and trails was completed in June 2022, with the exception of 45 fixtures located in St. James Park that need further evaluation due to their historic aspects. Staff has been coordinating this effort with DOT. The conversions for libraries and community centers will be completed by the summer of 2023.
Table 4
City Facility Lighting Conversion Status as of February 2023
Facilities Converted Remaining Total
Parks & Trails 3,481 45 3,526
Community Centers 1,216 67 1,283
Libraries 1,328 0 1,328
Fire Stations 119 572 691
Cultural Facilities 212 509 721
San José Police Department 511 83 594
Corporation Yards 219 200 419
Lighted Sports Facilities 0 300 300
Number of Fixtures 7,086 1,776 8,862
(b) Lighting Controls for City Facilities - The solicitation for lighting controllers for City facilities is continuing to move forward to procure a controller with Internet of Things capabilities for potential future implementation of the Internet of Things functionality. The award memorandum was approved by City Council on December 14, 2021, and staff anticipates acquiring the first order of the products by March 2023 using Measure T funds.
(c) LED Streetlight Conversion Projects – Previous status reports identified that the City owns and maintains approximately 64,400 streetlights. The majority of the streetlights have been successfully converted either by City crews or through the Pacific Gas & Electric (PG&E) “Turnkey Conversion” project as described below.
Roughly 5,500 lights remain which includes approximately 5,000 ornamental (or “post-top”) lights, primarily in the downtown neighborhood and business districts.
With the completion of the PG&E streetlight inventory audit there is also a PG&E billing records review under way of over 27,000 streetlight records. Once the PG&E billing records review is complete in the spring of 2023, it is likely to result in an increase in the City’s streetlight inventory.
(d) Streetlight Replacement by City Crews - Approximately $1 million of Measure T funds has been allocated to purchase LED fixtures which are being used by City crews to replace Low-Pressure Sodium and High-Pressure Sodium streetlight fixtures as the bulbs burn out. The City is also replacing approximately 5,000 ornamental fixtures in its streetlight inventory.
HONORABLE MAYOR AND CITY COUNCIL
February 21, 2023
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety and Infrastructure General Obligation Bond
This is being accomplished in a similar manner as described above, where City crews replace burned out lights with new LED fixtures rather than just replacing the bulbs.
A total of $8.5 million of Measure T funding was included in the 2023-2027 Adopted Capital Improvement Program to accomplish this goal by the end of 2024.
(e) PG&E “Turnkey” LED Streetlight Conversion – On June 25, 2019, the City Council authorized the City Manager to negotiate and execute agreements with PG&E for the financing and installation of up to 27,000 LED streetlights. PG&E contractors started the conversion process at the end of December 2020 and completed the majority of the conversion in February 2022. In the previous update to City Council, PG&E still had roughly 450 lights to convert which required unique “shoebox” fixtures that are located around the airport and other areas around the City.
PG&E completed those conversions at the end of 2022. Through this turnkey program, the total number of lights converted by PG&E was less than anticipated due to burn outs that City electricians converted to address resident concerns. PG&E converted 18,500, while City crews converted 8,500.
As part of the PG&E conversion program, a comprehensive inventory of the streetlight assets has been completed. Findings of the PG&E program indicate that a significant portion of the current streetlight poles do not have a ground wire at the fixture head. Staff will have to undergo additional research to determine the presence of ground wire at the base of the streetlights which is the minimum requirement to ensure the poles are bonded and grounded within the system. When the existing poles were installed, the National Electric Code (NEC) standard considered the metal pole to be an acceptable grounding path; however, the NEC specifications have been updated to require a separate grounding wire (NEC section 410.44). Therefore, staff will be undergoing office and field investigations utilizing as-built information to determine the required scope for this effort which includes identifying the presence of ground wire at the base of the streetlights. Staff have been able to identify that 70% of the streetlight network were installed or activated after 1971 when the City standards required a ground wire in the base of the pole. The other 30%, more than 20,000 streetlights, need further plan review or field investigation to determine if the ground wire is identified in the plans or present in the field.
(f) Lighting Controls for Streetlights - The solicitation for lighting controllers for streetlights is currently on hold pending staff gaining a better understanding of the scope, costs, and benefits of the grounding wire situation mentioned above. Staff will be evaluating whether to recommend utilizing the funding earmarked for the controllers or the grounding installation. In the meantime, staff will use this opportunity to conduct further research on the lighting controller market and work with the industry to develop a solution that meets the City’s need for efficient management of the streetlight network and takes advantage of the emerging Internet of Things functionality to provide additional community-serving benefits such as
HONORABLE MAYOR AND CITY COUNCIL
February 21, 2023
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety and Infrastructure General Obligation Bond
emergency response and management, energy preservation, and public safety. It is anticipated that the cost of installing these controllers on all the lights, as well as work necessary to get the streetlights up to current NEC code, will be substantially more than what is currently available in the Measure T budget, therefor staff have been diligently looking into alternative funding strategies, such as grants to supplement the available funding through the Measure T program.
5) Clean Water and Green Stormwater Infrastructure (GSI) Projects – The Measure T Program has dedicated $25 million for this category of projects. Each of the projects are being developed in conjunction with the GSI Plan that was approved by the City Council on September 10, 2019. Staff advanced the design phase for the River Oaks Regional Stormwater Capture Project, one of the top priority projects identified in the GSI Plan, which is anticipated to cost roughly $13.7 million, with $3.2 million to be funded by a state grant. The project is anticipated to start construction summer of 2023 and be completed by summer of 2024.
Additionally, staff have been working with a consultant to determine the feasibility of the short-term projects provided in Table 5 below which were identified in the last Measure T status report. Staff prepared a feasibility study of the five remaining potential sites.
Using evaluation criteria that consider cost effectiveness, potential partnership, technical feasibility, social/community/equity benefits, and water supply/flood protection, staff prioritized two locations to proceed further to the preliminary design, City Land South of Phelan and Monterey Road Green Street Project. However, even though Monterey Road is moving forward with preliminary design, staff is performing additional analysis on water quality benefits and cost effectiveness before recommending this project.
Among these locations, it has been identified that the City Land South of Phelan Regional Stormwater Capture Project is the best candidate to be completed under Measure T and as approved by City Council in the June 28, 2022 Measure T update. Staff has been proceeding with this as the next GSI project site for Measure T. Located on east side of Coyote Creek and south of Yerba Buena High School, the site collects runoff from a large portion of the East San José neighborhood, approximately 639 acres of primary residential land use, with a mix of commercial, agricultural, industrial, and institutional land uses. Treating up to 466 acres of impervious surface, the City Land South of Phelan Regional Stormwater Capture Project offers a high degree of water quality benefit and is likely the most cost-effective project when measuring capital cost of implementation per treated impervious acre along with potential for community benefit if it were to become a more accessible open space.
The Sycamore Terrace and Kelley Park Gravel Parking lot sites are also potential future sites, but, as previously reported, they present significant development challenges such as property control and utility interferences. The Sycamore Terrace site, an undeveloped and unpaved area at the northwest corner of the Coleman Road and Almaden Expressway
HONORABLE MAYOR AND CITY COUNCIL
February 21, 2023
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety and Infrastructure General Obligation Bond
intersection, would require additional lands from Valley Water. The Kelley Park Gravel lot, located adjacent to the stables site, has significant technical constraints related to constructability and utility conflicts. Because these locations are not as optimal candidates as the City Land South of Phelan Regional Stormwater Capture Project, they are not being recommended for implementation at this time.
The Hellyer Avenue Property is also not recommended because this site is highly challenging with significant pumping requirements, utility conflicts, and lack of available space to capture 80% of annual average runoff.
Staff anticipates utilizing the Measure T funding for the River Oaks Regional Stormwater Capture Project (approximately $10 million) and City Land South of Phelan site (approximately $15 million). After further scoping and refinement of the cost estimate for the City Land South of Phelan site, staff may need to evaluate either reducing the scope or obtaining additional funding if estimates exceed the available budget for the Clean Water program. Staff will return to the City Council later to make a specific project and funding recommendation, if needed.
Story/Keyes is a viable option but a lower priority since the cost per acre treated is not as significant as the River Oaks Regional Stormwater Capture Project and City Land South of Phelan. Therefore, it is not recommended to be funded under Measure T at this time.
Table 5
List of Near Term GSI/Clean Water Projects*
Recommended Measure T Funded Projects Project Type
River Oaks Regional Stormwater Capture Project Regional City Land South of Phelan Regional Stormwater Capture Project Regional Potential Projects (pending funding availability and other factors) Project Type Story / Keyes (only funding green street components) Green Street Monterey (from Umbarger Road to Lewis Road) Green Street Not-Recommended Projects Project Type
Hellyer Avenue Property (minimal water quality benefits) Regional Sycamore Terrace Regional
Kelley Park Gravel Lot Regional
*Table has been updated from previous City Council updates to reflect prior information shared regarding recommended projects and potential sites are listed in priority order based on feasibility.
6) Storm Drain Improvement Projects for the Charcot Area – Design has begun for the Storm Drain Improvement Projects for the Charcot area, which will provide flood
HONORABLE MAYOR AND CITY COUNCIL
February 21, 2023
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety and Infrastructure General Obligation Bond
protection in the area east of Zanker Road between Trimble Road and Brokaw Road.
Originally envisioned as a new pump station, this project has been re-scoped to construct a new and less costly storm drain system that connects to the existing Rincon Pump Station II, which outfalls to the Guadalupe River. This revised project approach provides similar level of flood protection while saving the City significant costs for building, operating, and maintaining a new pump station. Funding of $5.9 million has been shifted from the Storm Sewer infrastructure projects to public safety projects due to the acceleration and funding needs of critical projects. Efforts will be made to replenish the funds in this program as necessary.
Staff has informed Valley Water of the change in scope and the future use of the existing Rincon Pump Station II and continues to work with Valley Water in moving forward with the project. Staff has procured consultants and is evaluating constructing the project in two packages considering the large scope and complexity of the project. Staff anticipates completion of both packages to be in early 2025.
7) Environmental and Flood Protection Projects – On November 6, 2019, City Council approved the purchase of approximately 672 acres of real property in Coyote Valley.
Currently approximately $3.2 million remains in the Measure T budget following the completion of this project. During the June 2, 2021 City Council meeting, former Councilmember Sylvia Arenas recommended, and the City Council approved, that staff keep these savings in this project appropriation for additional water quality projects. Lake Cunningham Regional Park was specifically discussed as a potential project.
Additionally, during the June 15, 2021 City Council meeting, the direction provided by City Council was for the City Manager to return to City Council with the results of the above-referenced study and analysis around potential paths forward for water quality improvements at Lake Cunningham and seek City Council approval before allocating any funding for implementation of specific projects.
A study was funded to evaluate the water quality conditions at Lake Cunningham Regional Park and to determine alternatives and potential costs to expand recreational opportunities at the lake. The goals of the project are to study the existing conditions, including water quality and shoreline erosion, identify actions to address these issues, and develop an adaptive management process. The findings of this study will be presented to City Council on March 14, 2023, as directed by the Neighborhood Services and Education Committee.
Conceptual estimates from the water quality study indicate a need of $27 million to make all the necessary enhancements to Lake Cunningham, over a five-year period, to make the lake water quality viable for recreational use. The $3.2 million allocation could fund several different projects to start the process of enhancing water quality and user experience, such as vegetated bioswales along shoreline path to intercept sediments and nutrients before they enter the lake or shoreline pathway repairs.
HONORABLE MAYOR AND CITY COUNCIL
February 21, 2023
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety and Infrastructure General Obligation Bond
At this time, staff recommends shifting the environmental protection funds to the Public Safety Program to offset the significant shortfalls that are being experienced on multiple projects due to inflation since the inception of the Measure T Program. Though the remaining funds in the Environmental Protection program ($3.2 million) will not cover the full Public Safety Program shortfall as identified in Table 2 above, it will be sufficient to help offset the shortfalls to build out all of the public safety projects in which full build out is necessary for the projects to be fully functional. Should City Council approve staff’s recommendation, the utilization of these funds will also decrease the burden on the General Fund, and Fire Construction and Conveyance Tax Fund later when Fire Station 23 project is restarted and ready to enter into construction.
Additionally, grants are widely more available for projects that are environmentally focused or clean water than those for public safety. Staff have tried several times to obtain Earmark funds for public safety projects and each time have been informed that only those with positive environmental impacts have been successful in progressing forward.
8)
Community Center/Emergency Shelters – The City’s Emergency Operations Plan includes the coordination of mass care and sheltering facilities. These facilities will be retrofitted to provide basic human needs including food, water, shelter, and security. While the operation of an emergency shelter is considered an emergency protective measure under the Stafford Act, facilities identified for such a purpose are required to meet basic facility standards. These standards include per capita allowances for space, feeding, and personal hygiene.
Staff continues to move forward with the design for the community centers that were approved during the June 15, 2021 City Council meeting on the Measure T Status Report.
The report also mentioned that the projects will be built to the budget focusing on priority groupings 1, 2, and 3 since the Southside and Cypress Community Centers had been identified to be part of a private public partnership redevelopment and would not likely need improvements using Measure T funding. However, since the previous update to City Council, the timeline for the potential private public partnership at the Cypress Community Center has been delayed and staff reprioritized this site to proceed with the improvements as part of the Measure T program. The table below provides the projected schedules for each community center. Staff expects that there will be sufficient Measure T funding to complete groupings 1, 2,3 and the Cypress Community Center.
HONORABLE MAYOR AND CITY COUNCIL
February 21, 2023
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety and Infrastructure General Obligation Bond
Table 6
Priority Sites in Order of Completion
Priority Grouping Award Date Construction
Completion
Funded Projects
1 Roosevelt, Mayfair, Bascom, Seven
Trees
March 2023
Summer 2024
2 Camden
End of 2023
Beginning of
2025
3 Berryessa, Almaden, Evergreen Summer 2023 Fall 2024 4 Cypress Winter 2024 Winter 2025
Unfunded Projects – Potential for Public Private Partnership * Southside End of 2023 Beginning of 2025
*Southside is no longer a priority site for measure T, and is progressing forward as a private public partnership Housing redevelopment project site for affordable housing with new community center space on the ground floor.
9) Public Art – The public art budget for each program capital program is shown in Table 7 below and included in the 2022-2023 Adopted Capital Budget 2023-2027 Adopted Capital Improvement Program. The allocation for public art may be refined as the scopes for the projects are completed. Staff is working on finalizing the design by Bay Area artist Johanna Poethig for the exterior at the Fire Training Center/Emergency Operations Center. A second phase of public art projects at the Fire Training Center/Emergency Operations Center will address the building interior and will seek to commission up to 30 local artists. Staff has also completed the public art for the Police Department Memorial with Bay Area artist Gordon Huether and is waiting for the construction of the landscaping component to the memorial to be completed in which the public art will be installed and displayed. Public art projects are in the planning phase for Fire Stations, 8, 32, 36 as well as a series of projects at the River Oaks Regional Stormwater Capture Project and at Parks and Community Facilities.
HONORABLE MAYOR AND CITY COUNCIL
February 21, 2023
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety and Infrastructure General Obligation Bond
Table 7
Public Art Estimated Allocation
Program Total
Public Safety $ 1,606,000
Storm Sewer $ 523,000
Parks and Community Facilities $ 128,000
Total $ 2,257,000
EVALUATION AND FOLLOW-UP
Staff will provide City Council with an annual update and will return to City Council in early to mid-2024 with an update on the progress of the program.
COST SUMMARY/IMPLICATIONS
As shown in Attachment E (2023-2027 Adopted Capital Improvement Program – Measure T Fund), Measure T funding in the amount of $218.7 million was included in the 2022-2023 Adopted Capital Budget and a total of $423.5 million was included in the 2023-2027 Adopted Capital Improvement Program. The next bond issuances are expected to occur in 2023-2024 and 2025-2026, for $127.5 million and $75.0 million, respectively, and these amounts will be programmed in future years. As the Measure T program is evolving, project budgets may be recommended for modification, as appropriate, in future years as they proceed through site selection, design, and construction. In order to maintain a tax-exempt status, per Internal Revenue Service rules, 85% of the bond proceeds issued for the Measure T projects must be expended within the three years of issuance. As such, staff is tracking Measure T expenditures on a monthly basis to ensure the bond proceeds are spent in accordance with the Internal Revenue Service tax-exempt guidelines for municipal bonds.
City Council authorized the first issuance of $239.9 million in General Obligation bonds on June 25, 2019, for the purpose of providing funds for Measure T projects for the first two years of the program. On June 22, 2021, City Council authorized the second issuance of General Obligation bonds in the amount of $200.5 million to provide funds for the continuation of projects.
Attachment F (YTD Measure T Expenditures) shows the actual year-to-date Measure T expenditures through January 2023.
As previously discussed, the Public Safety Program Reserve will not be sufficient to complete the remaining public safety projects and there is a shortfall of $7.9 million. This memorandum recommends the use of the remaining available funds and to address the funding shortfall in Table 3. Actions approved in this memorandum will be reflected in the 2023-2024 Proposed Capital Budget and the 2024-2028 Proposed Capital Improvement Program which will be released in late April. Staff has also strategized to place the shortfalls in the project scopes
HONORABLE MAYOR AND CITY COUNCIL
February 21, 2023
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety and Infrastructure General Obligation Bond
identified the Police Training and Academy, Police Air Support Hanger, and 9-1-1 Call Center Renovations as bid alternatives and originally planned to determine at time of bid if funding would be available to fund the additional scope. Staff’s recommendation, if approved, would allow for these projects to proceed forward with the full build out of the base bid and bid alternates creating better functional facilities for the end users.
As noted in the 2024-2028 Five-Year Forecast and Revenue Projections, several of the Measure T projects will incur significant operating and maintenance costs in the future, including the new fire stations, the Police Training Center and corresponding activation of the South San José Police Substation, the 9-1-1 Call Center Renovation, and the Emergency Operations Center. This would also include adding new staff in the Fire, Police, Public Works, and Information Technology Departments to help support the additional facilities and expansions. Preliminary estimates for the operating and maintenance costs for the Measure T projects coming online during the forecast period ranges from $463,000 in 2023-2024 to $21.7 million in 2027-2028, when the majority of the Measure T projects will be completed.
The preliminary annual operating and maintenance costs for Fire Stations 32 and 36 (over $11.0 million and approximately $6.0 million respectively), and the Police Training Center (over $2.0 million) and corresponding activation of the South San José Substation (over $2.6 million) will be brought forward for City Council certification prior to awarding a construction. In March 2008, the City Council approved Budget Principle #8 that states capital improvement projects “shall not proceed for projects with annual operating and maintenance costs exceeding $100,000 in the General Fund without City Council certification that funding will be made available in the applicable year of the cost impact.” Annual costs for other Measure T projects such as the upgrades at the Police Headquarters will be brought forward as part of future budget processes once their scope has been refined.
Aside from the operating and maintenance costs, future funding is required to outfit the new facilities with the necessary furnishings, fixtures, and equipment – including new fire apparatus – that are not eligible to be paid with Measure T general obligation bonds. Based on preliminary information, the furnishings, fixtures, and equipment for the fire stations, Police Training Facility and Academy, Police Hangar, and 9-1-1 Call Center is estimated to have significant costs within the next five years. It is anticipated that refinements of these estimates, as well as determining funding for furnishings, fixtures, and equipment will be completed prior to bringing them forward for consideration by the City Council in any given year.
COORDINATION
This memorandum, workplan, and implementation schedules have been coordinated with the City Attorney’s Office, City Manager’s Budget Office, City Manager’s Office of Economic Development and Cultural Affairs, City Manager’s Office of Emergency Management, and the departments of Finance, Fire, Parks, Recreation and Neighborhood Services, Police, and Transportation.
HONORABLE MAYOR AND CITY COUNCIL
February 21, 2023
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety and Infrastructure General Obligation Bond
PUBLIC OUTREACH
This memorandum will be posted on the City's Council Agenda website for the March 14, 2023 City Council meeting.
COMMISSION RECOMMENDATION AND INPUT
No commission recommendation or input is associated with this action.
CEQA
Not a Project, File No. PP17-009, Staff Reports, Assessments, Annual Reports, and Informational Memos that involve no approvals of any City action.
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.
/s/
MATT LOESCH
Acting Director of Public Works
For questions, please contact Katherine Brown, Interim Assistant Director of Public Works, at (408) 795-1679.
Attachments:
A – General Obligation Bond Project Categories & Budgets B – Public Safety Project Estimates Schedule
C – Project Implementation Schedules
D – City of San José 2020-2023 Local Streets Measure T Streets E – 2023-2027 Adopted Capital Improvement Program – Measure T Fund F – YTD Measure T Expenditures
Attachment A
General Obligation Bond Project Categories Budgets
Bond Project List Original Dollar
Amount
Revised Dollar
Amount as of
2/2023
Description of Projects Status
Pavement Projects 300,000,000$ 300,000,000$ Repair/replacement of neighborhood streets in worst condition
In progress
Build new Fire Station 37 Completed
Rebuild/relocate or build five Fire Stations, including property acquisition
In progress
Rehabilitation of various stations Not Started
Upgraded 911 Call Center and build new Emergency
Operations Center
In progress
Public Safety Headquarters Infrastructure Needs Not Started New police training center (land acquisition and
rehabilitation of an existing building)
In progress
New police dept. Air Support Unit Hangar helicopter
terminal on existing city property at Mineta SJIA
In progress
Environmental
Protection Projects
50,000,000$ 50,000,000$ Water supply, flood control, open space and environmental protection of lands such as Coyote Valley Completed
Storm System
Conveyance & Flood
Prevention Projects
35,000,000$ 29,100,000$ Initally planned to be the construction of a pump station.
It has been re-scoped to construct a storm drain diversion along Charcot Avenue
In progress
Bridge Repair and
Rehab Projects
20,000,000$ 20,000,000$ Initially planned to leverage up to or more than $80 million in outside funds for bridge overpasses to be
seismically retrofitted or repaired. The program is
currently being re-assessed
In progress
LED Lighting 20,000,000$ 20,000,000$ Replacement of both streetlights and other outdoor lights in city facilities, such as the parks, libraries, community centers and corporation yards to reduce ongoing General Fund impacts.
In progress
Community
Center/Emergency
Shelters
12,950,000$ 12,950,000$ Upgrading community centers/emergency shelters and parks facilities to support public safety
In progress
Other Priority Critical
Infrastructure
$ 5,000,000 $ - Priority critical infrastructure repairs to reduce ongoing General Fund impacts
Funding was shifted to Public
Safety per June 2022 Memo
Bond Issuance Fee $ 7,050,000 $ 7,050,000 Requesting Council Policy decision to shift funding to Public Safety per
this memorandum
Total 650,000,000$ 650,000,000$
Priority projects would be partnerships to simultaneously provide clean water to our Bays and beautify existing
City owned open space. River Oaks Pump Station has
already been identified as one potential project
In progress
Public Safety Projects $ 175,000,000 $ 185,900,000 Clean Water and Green
Stormwater
Infrastructure (GSI)
Projects
25,000,000$ 25,000,000$
Attachment B
Public Safety Project Estimates Schedule
Public Safety Projects
SCOPING/CEQA/PROPERTY ACQUISITION: Consultant Selection, Programming/Feasibility and Environmental Studies DESIGN: Consultant Selection, Design, Review, Permitting AWARD AND CONSTRUCTION: Advertise, Bid Opening, Council Award & Contract Execution, Construction ESTIMATES: Including refined cost estimates throughout design and final est (1 = initial estimate, 2 = 50% estimate, 3 = 95% estimate, 4 = final estimate/VE) BID OPENING: Final project cost will be determined
ESTIMATED CONSTRUCTION START DATE
Notes
- 95% cost estimates are the closest to the final estimate. Staff will perform some value engineering (VE) in between 95% estimate and the final estimate prior to issuing the project for advertisement. - The red line denoted within the above schedule is identifying that five of the seven public safety projects will have 95% cost estimates by the May 2023.
Nov-23Sep-23 Oct-23Dec-22 Jun-23 Jul-23Oct-22 Nov-22 Jan-23 Aug-23Feb-23 May-23Mar-23 Apr-23 Fire Station No. 36 - New
Police Air Support Unit Hangar -
New at Airport
911 Call Center Renovation -
Upgraded/New
Fire Station No. 8 - Relocated
Fire Station No. 23 - Relocated
Fire Station No. 32 - New
Police Training and Academy -
New/Relocated from South
Substation
3 2 3
3 4
4 4
4 4
1 Attachment C
Project Implementation Schedules
Bond Project List Category Proposed Projects Scope and Locations
911 Center - Upgraded/New
Emer. Operations Ctr. - Upgraded/New
`
LED Lighting - Streetlights
LED Lighting - City Facilities
(See Table 6 in the memorandum)
PROJECT SELECTION PROCESS AND IDENTIFICATION: Evaluation and Prioritization of Options SCOPING/CEQA/PROPERTY ACQUISITION: Consultant Selection, Programming/Feasibility and Environmental S DESIGN: Consultant Selection, Design and Bid/Award
CONSTRUCTION: Construction, Commissioning, Beneficial Use / Occupancy, Acceptance Charcot Area Storm Drain Improvement Phase II
Storm System Conveyance &
Flood Prevention Projects
Pavement Projects
Bridge Repair and Rehab
Projects
Flood Control, open space and environmental
protection of lands such as Coyote Valley
Public Safety Projects
Clean Water and Green
Stormwater Infrastructure (GSI)
Projects
River Oaks Regional Stormwater Capture Project
Provide clean water to our Bays and beautify
existing City owned open space.
Environmental Protection
Projects
Charcot Area Storm Drain Improvement Phase I
Fire Station No. 36 - New
Police Headquarters - Infrastructure needs
Community Center/Emergency
Shelters
Upgrading community centers/emergency shelters
and parks facilities to support public safety.
Replacement of both standard and decorative
streetlights to LEDs to reduce ongoing General Fund
impacts.
Replacement of outdoor lights in city facilities to
reduce ongoing General Fund impacts.
388 Miles of Street Repair (approx. 58 mi./year)
Various bridge overpasses to be seismically
retrofitted or repaired.
Fire Station No. 37 - New
Police Dept. Training Center - New/Relocated
from South Substation
Various Fire Stations - Rehabilitation
Police Dept. Air Support Unit Hangar - New at
Airport
Fire Station No. 8 - Relocated
Fire Station No. 23 - Relocated
Fire Station No. 32 - New
2026 2027 20282022 2023 2024 2025
Priority Critical Infrastructure repairs to reduce
ongoing General Fund impacts
Other Priority Critical
Infrastructure
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Harwood Rd
Umbarger Rd
Kirk Av
McKean Rd
Vistapark Dr
Race St
Allen Av
San
Antonio St
Saddle
Brook Dr
Lucretia Av
Sierra
Rd
Sierra Rd
Skyway Dr
Snell Av
Gish Rd
Nieman Bl
Penitencia
Creek Rd
San Felipe Rd
Fleming Av
Ringwood Av
Foxworthy Av
Clayton Rd
Payne Av
Wayland Av
Curtner Av
San Antonio St
Curtner Av
McKee Rd
Johnson Av
Gold St
Toyon Av
Ruby Av
Leyland Park Dr
Morrill Av
Yerba Buena Rd
Cottle Rd
Old Tully Rd
Almaden Rd
Murillo Av
Willow St
Ruby Av
The Alameda
Willow St
Park Victoria Dr
Lean Av
Minnesota Av
Calero Av
Sierra Rd
Chynoweth Av
Lawrence Ex
Mt Pleasant Rd
Trinidad Dr
Coyote Rd
Los Gatos-Almaden Rd
McAbee Rd
Doyle Rd
Redmond Av
Sanchez Dr
Blaney Av
Pedro St
Westmont Av
Pine Av
Zanker
Rd
Via
Valiente
Cherry Av
LittleOrchard St
Fruitdale Av
2nd St
Delta Rd
Rainbow Dr
McKay Dr
Coe Av
San Vicente Av
Tantau Av
Blossom Av
Humboldt St
Steinbeck Dr
O'Toole
Av
Edenvale Av
CommunicationsHill Bl
Grand BlTaylor St
Beswick Dr
Montague Ex
Coyote
Rd
Clovercrest
Dr
Suncrest Av
7th St
17th St
Central Ex
13th St
Research
Pl
Almaden Rd
Zanker Rd
Mt Hamilton Rd
Mabury Rd
Rainbow Dr
Winfield Bl
1st St
Adrian Wy
Caribbean Dr
Coleman Rd
Old Bayshore Hy
Innovation Dr
Almaden Ex
Almaden Ex
Matrix
Bl
Lawrence Ex
Communications Hill Bl
Capitol Ex
Alma Av
Cornish Ln
Hellyer Av
Plumeria Dr
Commercial St
San Tomas Ex
Piercy Rd
Silver
Creek RdCamden
Av
Farnsworth Dr
Embedded Wy
Los Esteros Rd
Capitol Ex
Auto Mall
Fortini Rd
87 237
17 680
101
85 280
880
Santa Teresa Bl
680
680
680
680
87 237
17 680
101
85 280
880
17 680
880
101
85 85
101
87 237
280
280
101
87 280
87 101
87 680
101
680
880
101
101
101
101
101
CITY OF SAN JOSE
2020-2023 LOCAL STREETS
MEASURE T STREETS
:
Legend
2023 Local Streets Measure T Streets
2022 Local Streets Measure T Streets
2021 Local Streets Measure T Streets
2020 Local Streets Measure T Streets
Attachment D
SOURCE OF FUNDS
Beginning Balance* $218,698,710 $39,835,710 $56,830,680 $3,199,680 $40,687,979 $218,698,710 Replenish Funds for Fire Station 20** 2,300,000 2,300,000 Financing Proceeds
Traffic 84,000,000 75,000,000 159,000,000
Public Safety 16,822,000 16,822,000
Storm Sewer 15,700,000 15,700,000
Municipal Improvements 5,000,000 5,000,000
Parks & Community Facilities 6,000,000 6,000,000
Total Financing Proceeds $127,522,000 $75,000,000 $202,522,000 Total Sources $218,698,710 $169,657,710 $56,830,680 $78,199,680 $40,687,979 $423,520,710
USE OF FUNDS
Traffic
Bridges $8,000,000 $3,000,000 $4,000,000 $15,000,000
Pavement Maintenance 53,500,000 37,500,000 37,500,000 37,500,000 37,500,000 203,500,000 LED Streetlight Conversion 5,000,000 3,528,000 8,528,000 Admin – Traffic 31,000 31,000
Admin Reserve – Traffic 93,000 93,000
Total Traffic $66,624,000 $44,028,000 $41,500,000 $37,500,000 $37,500,000 $227,152,000 Public Safety
Fire Station 20 ARFF $100,000 $100,000
Fire Station 8 Relocation 14,000,000 408,000 383,000 14,791,000 Fire Station 23 Relocation 5,383,000 9,999,000 993,000 16,375,000 New Fire Station 32 10,007,000 566,000 382,000 10,955,000 New Fire Station 36 2,112,000 13,874,000 386,000 16,372,000 New Fire Station 37 200,000 200,000
Emergency Operations Center Relocation 3,288,000 3,288,000 Police Training Center Relocation 26,006,000 1,765,000 386,000 28,157,000 Police Air Support Unit Hangar 8,400,000 100,000 8,500,000 911 Call Center Upgrades 1,978,000 198,000 2,176,000
PD Headquarters Upgrades 1,010,000 1,010,000
Public Safety Reserves 3,700,000 9782000 650,000 14,132,000 Public Art - Pub Safety 926,000 222,000 22,000 1,170,000 Admin WC - Public Safety 411,000 12,030 423,030
Admin Reserve - Public Safety 1,388,000 1,388,000
Total Public Safety $78,909,000 $36,926,030 $3,202,000 $119,037,030 Storm Sewer
Storm Drain Improvements at Charcot Ave $15,216,000 $10,988,000 $392,000 $26,596,000 Clean Water Projects 7,007,000 10,546,000 4,949,000 22,502,000 Public Art – Storm Sewer 292,000 118,000 51,000 461,000 Admin – Storm Sewer 31,000 33,000 64,000
Admin Reserve – Storm Sewer 492,000 492,000
Total Storm Sewer $23,038,000 $21,685,000 $5,392,000 $50,115,000
CITY OF SAN JOSE
2023-2027 ADOPTED CAPITAL IMPROVEMENT PROGRAM
Measure T Public Safety and Infrastructure Bond Fund (498)
STATEMENT OF SOURCE AND USE OF FUNDS
Program 2022-2023 2023-2024 2024-2025 2025-2026 2026-2027 5-Year Total Attachment E
Program 2022-2023 2023-2024 2024-2025 2025-2026 2026-2027 5-Year Total
USE OF FUNDS
Municipal Improvements
Environmental Protection Projects $400,000 $2,800,000 $3,200,000 City Facilities LED Lighting 2,800,000 2,800,000
Critical Infrastructure 2,955,000 1,970,000 4, 925,000 Admin – Muni Improvements 6,000 6,000
Admin Reserve – Muni Improvements 96,000 96,000
Total Municipal Improvements $3,302,000 $5,755,000 $1,970,000 $11,027,000 Parks & Community Facilities
Community Centers/Emergency Shelters $6,868,000 $4,306,000 $1,515,000 $11,701 $12,700,701 Public Art – Parks 69,000 44,000 15,000 128,000
Admin – Parks 41,000 28,000 29,000 98,000
Admin Reserve Parks 12,000 55,000 8,000 75,000
Total Parks & Community Facilities $6,990,000 $4,433,000 $1,567,000 $11,701 $13,001,701 Total Expenditures $178,863,000 $112,827,030 $53,631,000 $37,511,701 $37,500,000 $420,332,731 Ending Fund Balance*** $39,835,710 $56,830,680 $3,199,680 $40,687,979 $3,187,979 $3,187,979 Total Uses $218,698,710 $169,657,710 $56,830,680 $78,199,680 $40,687,979 $423,520,710 *The 2023-2024 through 2026-2027 Beginning Fund Balances ar e excluded from the FIVE-YEAR TOTAL SOURCE OF FUNDS to avoid multiple counting of the same funds.
**Measure T Public Safety and Infrastructure Bond funds ($4.6 million) have been used for the reconstruction and expansion of Fire Station 20, which was not part of the original list of projects identified to be funded through Measure T. The transfer of $2.3 million from the General Fund was included in the 2021-22 Adopted Capital Budget to partially replenish funding for Fire Station 20 with the remaining $2.3 million budgeted to be transferred in 2023-2024.
***The 2022-2023 through 2025-2026 Ending Fund Balances ar e excluded from the FIVE-YEAR TOTAL USE OF FUNDS to avoid multiple counting of the same funds.
CITY OF SAN JOSE
2023-2027 ADOPTED CAPITAL IMPROVEMENT PROGRAM
Measure T Public Safety and Infrastructure Bond Fund (498)
STATEMENT OF SOURCE AND USE OF FUNDS
Attachment F
YTD Measure T Expenditures
*Totals above do not include any encumbrances.
-
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
2019-2020 2020-2021 2021-2022 2022-2023
Measure T Expenditures
(through January 2023)