Memorandum — San Jose City Council, October 17, 2023

TO: HONOR ABLE MAYOR FROM: Matt Loesch

AND CITY COUNCIL
S
UBJECT: SEE BELOW DATE: September 25, 2023
Approved Date
10/5/ 23
S
UBJECT: S TATUS REPORT ON THE NOVEMBER 2018 BALLOT MEASURE T –

THE DISASTER PREPAREDNESS, PUBLIC SAFETY, AND

INFRASTRUCTURE GENERAL OBLIGATION BOND
RE

COMMENDATION
A
ccept the status report on the work plan and implementation updates for projects included in the approved 2018 Measure T – The Disaster Preparedness, Public Safety, And Infrastructure General Obligation Bond.

UMMARY AND OUT COME
T
he 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 (Measure T). The memorandum provides status updates on all the Measure T projects as they progress through the feasibility, design, and construction phases.

ACKGROUND
M
easure 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. Since the time voters approved the bond measure, the City Council has received annual COUNCIL AGENDA: 10/17/23
FILE: 23-1379
ITEM: 2.12

HONORABLE MAYOR AND CITY COUNCIL
September 25, 2023
Subject: Status Report on the November 2018 Ballot Measure T – The Disaster Preparedness, Public Safety and Infrastructure General Obligation Bond

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updates and provided direction on the implementation of the Measure T program. Past updates are linked below for reference123456789.

M
ost recently, on March 14, 2023, Item 3.410, the City Council approved a report titled Status Report on the November 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond. The report included staff updates on the project work plans and implementation schedules, as well as requested the City Council to make a policy decision about allocating the available funding sources. With $15,350,000 available from sources such as the Public Safety Program Reserve, unallocated interest earnings, reallocation of funds from the Critical Infrastructure projects, and the savings identified from the Environmental Protection projects, the City Council voted to allocate the funding to bridge the shortfalls within the Public Safety program leaving roughly $7 million in the Program Reserve for Public Safety.

These funds were specifically identified to be used for potential overages pending bid results for the remaining Public Safety projects, with the goal of using any remaining amounts for the design and construction of Fire Station 23. Subsequently, the construction award of Fire Station 8 occurred on August 15, 2023, and the Public Safety Program Reserve was reduced to $5.3 million to address the funding shortfall for that project.

ANALYSIS
S
ince the March 14, 2023 report, several significant activities have taken place. The updated schedules for all Measure T projects are described in Attachment A - Project Implementation Schedules. Attachment A is the master schedule list requested by the Measure T Community Oversight Committee at the last annual review and it was shared with the committee in June 2023. The following list provides current project statuses in each of the major program categories:
1) Mea
sure T Community Oversight Committee – The committee met on June 8, 2023 to approve the creation of an ad hoc committee and vote on a new chair and vice chair. The ad hoc committee is comprised of five members that will review and make recommendations to the larger Measure T Community Oversight Committee based on the annual independent auditor’s report and annual expenditures of the Measure T Bond funds. During this meeting, staff presented the 2023-2024 Adopted Capital Budget and 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=
10 https://sanjose.legistar.com/View.ashx?M=F&ID=11738576&GUID=66879752-3E11-49A0-8333-56C874716A49

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2024-2028 Capital Improvement Program to the Measure T Community Oversight Committee members.

T
he next meeting will be held in November 2023 to review the auditor’s report on the expenditures from fiscal year 2022-2023. Currently, there are 13 seats filled and two vacant positions from District 7 and District 10.
2) P
ublic Safety Projects – Pursuant to direction from the City Council on March 14, 2023, the current approved Measure T program allocates $207.1 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 public safety projects are described in Attachment B - Public Safety Projects Schedule.
(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. The project received the Certificate of Occupancy in July 2023 and has been fully operational since May 2022.
(b
) Relocated Fire Station 8 – The project was awarded on August 15, 2023, to the lowest responsive bidder, DL Falk Construction, Inc., in the amount of $10,526,000.

The project will begin construction in October 2023 with final completion anticipated in January 2025.
(
c) New Fire Station 32 – The City acquired 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.

T
he project was initially advertised in March 2023. However, three of the four bids were either deemed non-responsive or withdrawn and due to the high non- responsiveness, all bids were rejected. The project was re-advertised in July 2023 but again the bids received were deemed non-responsive and all bids were rejected. The project was advertised in late September 2023 and scheduled to be awarded in winter 2023-2024, with construction expected to begin in early spring 2024. (d
) Relocated Fire Station 23 – The Fire Station 23 project has a budget of $4 million, focusing the funds solely on the purchase of a property for the future build of the relocated fire station. The project will need an additional $15 million to continue with the design and construction. Staff will need to prioritize the remaining public safety projects and identify program savings, or identify other funding opportunities such as

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grants or funding in the General Fund and Fire Construction and Conveyance Tax Fund in order to proceed with the design of Fire Station 23. Should funding resources be identified, City staff could start the design in June 2024 with a tentative contract award in 2027.

F
ire 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 before the end of the fiscal year, as identified in the informational memorandum dated September 18, 2023 (See Attachment C - Measure T Fire Station 23 Land Acquisition). The relocation of Fire Station 23 will improve coverage within the city limits and accounts for 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).
(
e) New Fire Station 36 – The s ite has been selected at the intersection of Capitol Expressway and Tuers Road for the construction of Fire Station 36. The project is currently fully funded. However, as the estimates of the remaining public safety projects continue to increase due to construction price escalation, staff is concerned that sufficient funding may not be available to complete this project. Currently, the design process is on hold as staff focuses on progressing other public safety projects.

Staff anticipates starting the design process in early 2024, pending the bid results for the Police Training and Academy Facility, new Fire Station 32, Police Air Support Unit Hangar, and the 9-1-1 Call Center Renovation projects. Staff will continue to update the City Council on this project in future Measure T updates. (f) F
ire 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.

A
s directed by the City Council-approved Mayor’s March Budget Message for Fiscal Year 2020-2021, $4.6 million in Measure T funds were used to expand Fire Station 20 to include landside operations. Another $1.2 million of Measure T funds generated from interest earnings were allocated to this project in the 2019-2020 Annual Report due to higher than anticipated costs. A transfer of $2.3 million from the General Fund in 2021-2022 partially replenished the $4.6 million advanced for this project. The remaining $2.3 million may be replenished in a future budget process though a specific funding source has not yet been identified.

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(g) Police Training and Academy Facility – The City acquired 300 Enzo as the site for the Police Training and Academy in March 2021. The project is currently being advertised with bid opening scheduled to occur in October 2023. Staff expects to award the project in December 2023 with construction starting in January 2024.

As
part of the March 14, 2023 memorandum, the project budget was increased by $9.8 million to match the Engineer’s Estimate for the full build out of the project.

After this increase, there is now approximately $68.3 million allocated for the project.

As staff refined the estimates for the project prior to advertisement, it is anticipated that the project may have an additional shortfall of $5.5 million. The shortfall is due to the added need to incorporate repairs and replacement of the roof to the project scope highlighted and made worse by the intense storms that occurred earlier this year. Staff will return to City Council after bids are received for this project, to report on bids and potential funding needs. Staff is committed to ensuring all training and academy spaces are built at 300 Enzo to facilitate the full opening of the South Substation to the public as its original intended purpose. (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. The construction is nearing completion with the project reaching beneficial use in October 2023. (i
) 9-1-1 Call Center Renovation – This project will provide improved working conditions and a more efficient space to handle the increasing number of calls. This project will also allow the City to take advantage of the changing methods and technologies the public utilizes to call for 9-1-1 service. The 9-1-1 call center renovation will expand into the space currently occupied by the existing Emergency Operations Center; therefore, construction is expected to start after the Emergency Operations Center relocates to the new facility at the Central Service Yard. The project is anticipated to be awarded in winter of 2023-2024 and construction starting in the spring of 2024.
(j) P
olice Air Support Unit Hangar – The location of this project is at the southwest corner of the Airport property, near Coleman Avenue and Airport Boulevard, next to the recently completed Aircraft Rescue and Fire Fighting Facility (Fire Station 20) described above. The project is anticipated to be awarded in October 2023 with construction starting at the end of 2023.

A
s part of the March 14, 2023 memorandum, the project budget was increased by $5.7 million to match the Engineer’s Estimate for the build out of the base bid and Bid-Alternate No. 1, providing two hanger bays for the Police Air Support Unit. After

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this increase, there is now approximately $16.6 million allocated for the project. As staff refined the estimates for the project prior to the advertisement period, it was identified that the project may have an additional shortfall of $1 million to fully construct the project as identified in the March 14, 2023 report to City Council. Staff will return to City Council to report on bids in November 2023. (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. Initial estimates identified a need of approximately $11.7 million to address all backlogged infrastructure projects. The highest priority projects identified include improvements to the plumbing throughout the facility and improvements to the existing gun range target system. As part of the March 14, 2023 update, City Council approved increasing the project budget to $6.3 million to address these high priority projects.

T
he target system replacement for the existing range at the Police Administration Building has completed the procurement process and staff issued a purchase order to InVeris Training Solutions for $147,850. This work is expected to be completed within this fiscal year. Staff will start the preliminary design for the plumbing system improvements at the end of this year. Staff may need to re-scope or re-evaluate the commitments for the plumbing system project pending bid results for the Police Training and Academy Facility, new Fire Station 32, Police Air Support Unit Hangar, and 9-1-1 Call Center Renovation projects.
(l
) Program Reserve for Public Safety – Originally, $36.4 million of the Measure T funds were 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. After the budget actions and policy decisions made on March 14, 2023, approximately $6.95 million remained unallocated. Subsequently, the bids for the Fire Station 8 Relocation Project came in higher than anticipated and the funding gap of $1.7 million was addressed by utilizing the Program Reserve for Public Safety. The 2022-2023 Annual Report contains a recommendation to allocate $4.5 million in unallocated interest earnings from the various Measure T Capital Programs to this reserve to ensure there is additional funding available to award the remaining public safety projects, bringing the total amount in the reserve to $9.7 million. Staff will return to City Council to seek approval on the use of the reserve should there be a shortfall once the bids are open for the Police Training and Academy Facility, new Fire Station 32, 9-1-1 Call Center Renovation, and Police Air Support Unit Hangar projects.

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3) P avement 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. The Measure T program designates $300 million for the repair or rehabilitation of local and neighborhood streets in the worst condition. Staff identified over 700 miles of streets dispersed throughout the city to be resurfaced or reconstructed with this funding.

The Department of Transportation (DOT) has resurfaced 342 miles since 2020 utilizing Measure T funds. A map that shows the locations of these 342 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 2016 Measure B, DOT has resurfaced a total of 369 miles of streets in poor condition since 2019.

Funds from Measure T, in combination with annual allocations from State Gas Taxes, Santa Clara Valley Transportation Authority 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 memorandums every spring to share tentative construction plans with the public.

In the 2023 construction season, DOT planned to complete maintenance on 157 miles of San José local and neighborhood streets, of which 107 miles were programmed to be resurfaced and 995 associated curb ramps were constructed with the annual $37.5 million Measure T allocation. In the 2024 construction season, DOT plans to maintain 266 miles of San José streets, including 182 miles of local and neighborhood streets.

Out of the 182 miles of local and neighborhood streets, 110 miles will be funded by Measure T.

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 recently submitted a new Bridge Investment Credits application package to Caltrans for 17 bridges and has received approval. This project is anticipated to

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accumulate approximately $1.3 million in Bridge Investment Credits. A deck treatment project on Story Road was completed in December 2022. In addition, a deck treatment project on Cropley Avenue was recently awarded and the project reached beneficial use in September 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 program’s funding situation is evolving with the recent passage of 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 it becomes available. 4) L
ight Emitting Diode (LED) Outdoor Lighting Projects
a) C
ity Facilities LED Lighting Projects – As staff evaluated the actual outdoor lighting inventory, the number of fixtures needing to be converted for City-owned facilities grew by over 1,000. In addition, the cost for the fixtures is higher than originally anticipated. Table 1 below lists the City-owned facilities in conversion priority order and provides details about the total number of fixtures as well as the number of fixtures that have been converted for each category utilizing Measure T funding totaling $8.8 million. As mentioned in prior reports, Measure T funding is not sufficient to fully convert the remaining 1,194 outdoor facility lights. A funding shortfall of $2.7 million has been identified if all existing outdoor lighting were to be converted to LED. Staff will continue to seek alternative funding solutions as well as work with respective departments such as the Fire Department and the Parks, Recreation, and Neighborhood Services Department. Staff is also coordinating with project managers to ensure all new future developments are scoped to include the new LED lighting and controllers in the base design.

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Table 1
City Facility Lighting Conversion Status as of August 2023 Facilities Converted Remaining Total
Parks and Trails 3,481 45 3,526
Community Centers 1,216 67 1,283
Libraries 1,328 0 1,328
Fire Stations 293 398 691
Cultural Facilities 212 509 721
San José Police Department 534 60 594
Corporation Yards 419 0 419
Lighted Sports Facilities 165 115 280
Number of Fixtures 7,648 1,194 8,842
Lighting Controls for City Facilities – To date there have been 3,465 nodes installed. Staff is working to install the remaining 4,224 nodes, for a total of 7,689 nodes citywide of which Measure T has funded a large portion of these controllers.

These nodes are currently being installed at the existing retrofitted sites listed in Table 1 as well as new City facility projects as they come online. There are roughly 1,100 exterior fixtures at new City facilities (i.e., the Emergency Operation Center, Fire Training Center, Municipal Water office buildings, new parks, and fire stations), and staff anticipates purchasing the remaining controllers as sites are completed and as funding becomes available.
b) L
ED Streetlight Conversion Projects – Previous status reports identified that the City owns and maintains approximately 64,400 streetlights. Most of the streetlights have been successfully converted either by City crews or through Pacific Gas and Electric’s (PG&E) “Turnkey Conversion” project. There are roughly 5,000 lights remaining to be converted, which are unique ornamental (or “post-top”) lights, primarily in the downtown neighborhood and business districts.

W
ith the completion of the PG&E streetlight inventory audit, in July 2021, there is also a billing records review under way of over 27,000 streetlight records. The billing records are reviewed as a joint effort with PG&E and City staff. Once the billing records review is confirmed by PG&E by the end of 2023, it is likely to result in an increase in the City’s streetlight inventory.

A
s discussed in previous status reports, 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 began its investigations of determining how many streetlight poles have a ground wire within the system by developing a map outlining areas that were upgraded or built within the timeframe

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from when the City of San José standard specifications were updated. Based on this initial investigation, roughly 42,000 streetlights were built or converted under the current standard specifications. This leaves roughly 22,000 lights that will require historical plan reviews prior to performing field investigations. Staff will need to identify resources to assist in the continuation of the investigation.

S
treetlight Replacement by City Crews - Approximately $1 million of Measure T funds have been allocated to purchase LED fixtures that have been used by City crews to replace low-pressure sodium and high-pressure sodium streetlight fixtures as the bulbs burn out.

T
his 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 $8.2 million of Measure T funding was included in the 2024-2028 Adopted Capital Improvement Program to address burn outs as they occur. This funding was also identified to be potentially shifted to assist in the grounding and lighting controls investigation work that staff continue to pursue.

L
ighting 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 investigation mentioned above. Over the next year, staff will evaluate whether to recommend utilizing the funding for the controllers or for 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 emergency response and management, energy conservation, and public safety. The Internet of Things describes the network of physical objects—“things”—that are embedded with sensors, software, and other technologies for the purpose of connecting and exchanging data with other devices and systems over the internet. It is anticipated that the cost to install controllers on all streetlights, as well as complete the work necessary to bring the streetlights up to current National Electrical Code standards, will be substantially more than what is currently available in the Measure T budget, therefore staff have been diligently looking into alternative funding strategies, such as grants, to supplement the funding available through the Measure T program. 5) C
lean Water and Green Stormwater Infrastructure 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 Green Stormwater Infrastructure Plan that was approved by the City Council on September 10, 2019. Staff identified the River Oaks Regional Stormwater Capture Project as one of the top priority projects in the Green Stormwater Infrastructure Plan. The project was awarded on June 13, 2023, to Andrew

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M. Jordan Inc. dba A & B Construction, in the amount of $10,999,618. The project started construction in September 2023 and is anticipated to be completed in June 2024.

A
dditionally, the City Land South of Phelan Regional Stormwater Capture Project was identified as the next priority project to be completed under Measure T and was approved by City Council in the June 28, 2022 Measure T update. Preliminary design for the project has been completed and staff are now in the process of selecting a consultant for final design.

St
aff anticipates utilizing approximately $12 million of Measure T funds for the River Oaks Regional Stormwater Capture Project and approximately $13 million for the City Land South of Phelan Project. As scoping and design of the project progress, and cost estimates are developed for the City Land South of Phelan Project, staff may need to evaluate either reducing the scope or obtaining additional funding if estimates exceed the available budget for the clean water program. If needed, staff will return to the City Council to make a specific project and funding recommendation. 6) S
torm Drain Improvement Projects for the Charcot Area – Design has progressed for the Storm Drain Improvement Projects for the Charcot area, which will provide flood protection in the area east of Zanker Road between Trimble Road and Brokaw Road.

Originally envisioned as a new pump station, this project was 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. The project will be constructed in two packages, due to its size and complexity. Package one will install approximately 4,200 feet of 60- inch to 96-inch diameter storm pipe along Charcot Ave and Bering Drive. Package two will install approximately 3,100 feet of 60-inch to 96-inch diameter storm pipe along East Brokaw Road and Rodgers Avenue.

S
taff received recent estimates for package one and the current estimate requires utilizing all the Measure T budget available for this project. Package two will finish design at the end of this year, however, there will not be budget available for construction. Therefore, staff will reach out to Valley Water on a potential partnership to complete the construction of package two. Staff will also look into pursuing grant opportunities to obtain funding.

S
taff 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. Currently, package one is anticipated to be awarded late spring 2024 and construction starting in summer 2024. Package two is anticipated to complete design at the end of this year but the construction will be on hold until funding is identified.

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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.

After the purchase of the property, there was approximately $3.2 million remaining in the Measure T budget. As approved by City Council as part of the March 14, 2023 memorandum recommendation, these funds were shifted 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.

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.

The priority 1 project, which includes the Roosevelt, Mayfair, Bascom, and Seven Trees Community Centers, was awarded on April 4, 2023 to the lowest responsive bidder, City Building, Inc., in the amount of $1,938,436. The project started construction in June 2023 with final completion anticipated in November 2024.

The priority 3 project, which includes the Berryessa, Almaden, and Evergreen Community Centers, was awarded on June 13, 2023 to the lowest responsive bidder, City Building, Inc., in the amount of $1,198,780. The project started construction in September 2023 with final completion anticipated in January 2025.

Staff continues to progress the design for the priority 2 project, Camden Community Center, and anticipates awarding the project in early 2024. Additionally, staff plan to start designing the priority 4 project, Cypress Community Center, after the Camden Community Center has been awarded. The Cypress Community Center may still be considered as part of a public-private partnership housing redevelopment project site; however, Parks, Recreation, and Neighborhood Services Department is currently not pursuing that option and will reevaluate this option in the future.

9) Public Art – The public art budget for each capital program is shown in Table 2 below and included in the 2023-2024 Adopted Capital Budget and the 2024-2028 Adopted Capital Improvement Program. The allocation for public art may be refined as the scopes for the projects are completed. The artwork on the exterior of the Fire Department Training Center/Emergency Operations Center has already been completed by Bay Area artist Johanna Poethig. A second phase of public art projects at the Fire Department Training Center/Emergency Operations Center will address the building interior and will seek to commission up to 30 local artists. The installation of the public art by Bay Area artist Gordon Huether for the Police Department Memorial was also recently completed.

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Additional public art projects are in the planning phase for Fire Stations, 8, 32, and 36 as well as a series of projects at the River Oaks Regional Stormwater Capture Project and at parks and community center facilities.

T
able 2
Public Art Budget Allocation
Program Total
Public Safety $ 1,897,000
Storm Sewer $ 527,000
Parks and Community Facilities $ 126,000
Total $ 2,550,000

EVALUATION AND FOLLOW-UP
S
taff will provide City Council with a biannual update, with the next update on the program to occur in early to mid-2024. Construction bids for the Police Training and Academy Facility, new Fire Station 32, Police Air Support Unit Hangar, and the 9-1-1 Call Center Renovation projects are expected to be opened within the next six months. Staff will return to City Council to report on the bids received and award construction contracts for each projects separately. During this time, should the bids come in higher than anticipated and a funding shortfall is identified, staff will seek approval on the use of the remaining unallocated funding of $5.3 million in the Program Reserve for Public Safety Program.

COST SUMMARY/IMPLICATIONS
A
s shown in Attachment E - 2024-2028 Adopted Capital Improvement Program – Measure T Public Safety and Infrastructure Bond Fund, Statement of Sources and Use of Funds, Measure T funding in the amount of $150.1 million has been programmed in the 2023-2024 Adopted Capital Budget and a total of $359.7 million has been programmed for the five-year 2024-2028 Adopted Capital Improvement Program. The third and final bond issuance is anticipated to occur in fiscal year 2024-2025, in the amount of $209.6 million, which 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’s rules, 85% of the bond proceeds issued for the Measure T projects must be expended within 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 IRS 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

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Bonds in the amount of $200.5 million to provide funds for the continuation of projects.

Attachment F - Measure T Expenditures shows the actual year-to-date Measure T expenditures through June 2023.

A
s mentioned previously, there is concern that the Program Reserve for Public Safety may not be sufficient to complete the remaining public safety projects due to the impact of continued cost escalations. Staff will continue to research and pursue grants to help fund the remaining public safety projects and will return to City Council to seek approval on the use of the reserve should there be a shortfall.

S
taff also identified that there is not enough funding to complete the construction of package two of the Storm Drain Improvement Projects for the Charcot Area as mentioned above. Staff is working diligently to identify scopes of the project that can be separated out as bid alternates.

This will give staff the flexibility to award the project and possibly bid alternates based on the received bids. To help identify additional funding sources, staff continues to research and pursue grant opportunities and have been directed to reach out to Valley Water to try to form a partnership such that the City can complete the project in its entirety.

As
noted in the 2024-2028 Five-Year Forecast and Revenue Projections, released March 1, 2023, 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 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 range from approximately $500,000 in 2023-2024 to $21.7 million in 2027-2028, when the majority of the Measure T projects will be completed.

T
he preliminary annual operating and maintenance costs for Fire Station 32 and 36 (approximately $11.0 million and $6.0 million respectively), and the Police Training Center ($2.0 million) and corresponding activation of the South San José Substation ($2.7 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 scopes have been refined.

A
side 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 8 and 36, Police

Page 15 ends

Training Facility and Academy, and the Police Hangar is estimated to cost over $4.5 million 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
T
his memorandum, work plan, and implementation schedules have been coordinated with the City Attorney’s Office, City Manager’s Budget Office, the 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.

PUBLIC OUTREACH
T
his memorandum will be posted on the City's Council Agenda website for the October 17, 2023 City Council meeting.

COMMISSION RECOMMENDATION AND INPUT
T
he Community Oversight Committee will be holding the next meeting in November 2023 to review the Auditor’s Report for the expenditures that occurred in fiscal year 2022-2023.

CEQA
N
ot 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
T
his 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
Director of Public Works

Page 16 ends

For questions, please contact Katherine Brown, Interim Assistant Director of Public Works, at (408) 795-1679.

ATTA
CHMENTS:

A
ttachment A – Project Implementation Schedules
Attachment B – Public Safety Projects Schedule
Attachment C – Measure T Fire Station 23 Land Acquisition Attachment D – City of San José 2020-2023 Local Streets Measure T Streets Attachment E – 2024-2028 Adopted Capital Improvement Program Measure T Public Safety and Infrastructure Bond Fund, Statement of Sources and Use of Funds Attachment F – Measure T Expenditures
Attachment A
Project Implementation Schedules
Bond Project List Category Proposed Projects Scope and Locations 911 Center - Upgraded/New
Emer. Operations Ctr. - Upgraded/New
LED Lighting - Streetlights COMPLETED
LED Lighting - City Facilities
Priority 1 (Roosevelt, Mayfair, Bascom, Seven Trees)
Priority 2 (Camden)
Priority 3 (Berryessa, Almaden, Evergreen)
Priority 4 (Cypress)
ON HOLD: Project is on hold due to funding constraints
PROJECT SELECTION PROCESS AND IDENTIFICATION: Evaluation of Options SCOPING/CEQA/PROPERTY ACQUISITION: Consultant Process, Feasibility & Envir Studies DESIGN: Consultant Selection, Design and Bid/Award
CONSTRUCTION: Construction, Commissioning, Beneficial Use / Occupancy, Acceptance

RESCOPED
Upgrading community centers/emergency shelters and
parks facilities to support public safety.

COMPLETED

COMPLETED
Charcot Area Storm Drain Improvement Phase II
Fire Station No. 36 - New
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
City Land South of Phelan
Environmental Protection
Projects
Charcot Area Storm Drain Improvement Phase I
Police Headquarters - Infrastructure needs
Community
Center/Emergency Shelters
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.

Storm System Conveyance &
Flood Prevention Projects
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 20282023 2024 2025
Attachment B
Public Safety Projects 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
Nov-23Sep-23 Oct-23Jun-23 Jul-23 Aug-23
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
Fire Station No. 36 - New
Jan-24 Feb-24 Mar-24
Police Air Support Unit Hangar -
New at Airport
Dec-23
1 1
TO: HONORABLE
MAYOR FROM: Matt Loesch
AND CITY COUNCIL Nanci Klein
SUBJE
CT: MEASURE T FIRE STATION DATE: September 18, 2023
23 LAND ACQUISITION
Approved Date
9/19/23

INFORMATION
The purpos
e of this memorandum is to update the City Council on City staff’s efforts to acquire a property suitable to relocate Fire Station 23.

BACKGRO
UND
Meas
ure T, approved by voters in November 2018, provides for the issuance of $650 million in general obligation bonds to fund various important infrastructure projects throughout the City, including $175 million for the Public Safety Program.

The re
located Fire Station 23 is intended to replace the existing station located on Capitol Avenue at Via Cinco de Mayo. City staff anticipates acquiring a location further from the Milpitas border to improve coverage within City limits and better serve planned developments in North San José. Fire Station 23 is the fourth highest priority station as approved by the City Council in the June 18, 2019 memorandum Measure T – New Fire Station Placement Prioritization

1. This r
elocation project was initially intended to be a co-development partnership with the Departments of Public Works and Housing, constructing both a fire station and an affordable housing complex on the shared lot. Due to the limited availability of funds to purchase the property in its entirety, City staff shifted the focus away from the shared use to solely focusing on property acquisition for a future fire station.
1 https://sanjose.legistar.com/View.ashx?M=F&ID=7296426&GUID=8097B35E -F3AA-441B-A951- 9B6135862F50
Attachment C

HONORABLE MAYOR AND CITY COUNCIL
September 18, 2023
Subject: Measure T Fire Station 23 Land Acquisition

Page 2 ends

O
n March 14, 2023, the City Council approved a report titled Status Report on the November 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond Item 3.52. The report included City staff’s recommendation of rescoping the Fire Station 23 project to focus on land acquisition only, using up to $4.1 million for the purchase of land and associated expenses, and reallocating the remaining funding to cover the other critical public safety projects as needed.

P
otential Site Selection
Effo
rts 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 worked with brokers to find off-market opportunities for site acquisition. City staff identified a potential site located at 1500 Lundy Avenue which fits the necessary parameters needed to comply with the Fire Department’s optimal travel time requirements. Previously, the City considered attempting to acquire the entire 1500 Lundy Avenue property for a project that would have included housing and a fire station. However, the City’s offer is for a portion of the parcel area, approximately 28,350 square feet, located at the southwest corner of Frost Drive and Vennum Drive. This area is unimproved with permanent structures. City staff have been actively negotiating with the property owners since the beginning of 2023. The latest offer package was sent on July 10, 2023, for the purchase price of $3,360,000, based on a City-commissioned appraisal. The property owners have not yet accepted the offer, but have retained counsel and are in the process of having the property appraised, with an expected completion date of the end of October.

N
ext Steps
N
egotiations are ongoing. Once the property owners receive an appraisal, City staff will meet with them to discuss the terms of a potential property acquisition. If funding resources are identified, City staff would start the design in June 2024 with a tentative contract award in 2027.

/s/ /s/

MATT LOESCH NANCI KLEIN
Director, Public Works Director, Economic Development
and Cultural Affairs
F
or questions, please contact Katherine Brown, Interim Assistant Director of Public Works, at (408) 795-1679, or Kevin Ice, Senior Manager of Real Estate Services, Office of Economic Development and Cultural Affairs, at (408) 535-8197.
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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
Attachment E
Program 2023-2024 2024-2025 2025-2026 2026-2027 2027-2028 5-Year Total

SOURCE OF FUNDS
Beginning Balance* $150,117,114 ($78,727,329) $76,592, 671 $38,592,671 $592,671 $150,117,114 Financing Proceeds
Traffic 159,000,000 159,000,000
Public Safety 28,870,000 28,870,000
Storm Sewer 15,700,000 15,700,000
Parks & Community Facilities 6,000,000 6,000,000
Total Financing Proceeds $209,570,000 $209,570,000
Total Sources $150,117,114 $130,842,671 $76,592,671 $38,592,671 $592,671 $359,687,114

USE OF FUNDS
Traffic
Bridges $8,000,000 $4,000,000 $12,000,000
Pavement Maintenance 37,651,000 37,500,000 $37,500,000 $37,500,000 $150,151,000 LED Streetlight Conversion 5,036,827 3,138,000 $8,174,827 Admin – Traffic 29,000 $29,000
Admin Reserve – Traffic 64,000 $64,000
Total Traffic $50,780,827 $44,638,000 $37,500, 000 $37,500,000 $170,418,827 Public Safety
Emergency Operations Center $2,500,000 $2,500,000
Fire Station 8 Relocation $12,014,000 $388,000 $12,402,000 Fire Station 23 Relocation 3,013,000 1,000,000 $4,013,000 Fire Station 37 50,000 $50,000
New Fire Station 32 12,867,000 371,000 $13,238,000
New Fire Station 36 17,136,000 386,000 $17,522,000
Police Training Center Relocation 46,034,000 385,000 $46,419,000 Police Air Support Unit Hangar 14,625,000 $14,625,000
911 Call Center Upgrades 5,174,000 $5,174,000
Police Administration Building Upgrades 5,785,870 $5,785,870 Public Safety Reserves 6,950,000 $6,950,000
Public Art - Pub Safety 970,000 22,000 $992,000
Admin WC - Public Safety 318,030 $318,030
Admin Reserve - Public Safety 1,082,000 $1,082,000
Total Public Safety $128,518,900 $2,552,000 $131,070,900 Storm Sewer
Storm Drain Improvements at Charcot
Ave $23,335,000 $1,492,000 $24,827,000
Clean Water Projects 17,201,739 3,961,000 $495,000 $495,000 $22,152,739 Public Art – Storm Sewer 189,000 40,000 5,000 5,000 $239,000 Admin – Storm Sewer 143,000 $143,000
Admin Reserve – Storm Sewer 382,000 $382,000
Total Storm Sewer $41,250,739 $5,493,000 $500,000 $500,000 $47,743,739

CITY OF SAN JOSE
2024-2028 ADOPTED CAPITAL IMPROVEMENT PROGRAM
Measure T Public Safety and Infrastructure Bond Fund (498)

STATEMENT OF SOURCE AND USE OF FUNDS
1 Attachment E
Program 2023-2024 2024-2025 2025-2026 2026-2027 2027-2028 5-Year Total

CITY OF SAN JOSE
2024-2028 ADOPTED CAPITAL IMPROVEMENT PROGRAM
Measure T Public Safety and Infrastructure Bond Fund (498)

STATEMENT OF SOURCE AND USE OF FUNDS
Municipal Improvements
City Facilities LED Lighting $415,000 $415,000
Total Municipal Improvements $415,000 $0 $0 $0 $415,000 Parks & Community Facilities
Community Centers/Emergency
Shelters $7,709,977 $1,515,000 $9,224,977
Public Art – Parks 74,000 15,000 $89,000
Admin – Parks 30,000 29,000 $59,000
Admin Reserve Parks 65,000 8,000 $73,000
Total Parks & Community Facilities $7,878,977 $1,567,000 $9,445,977 Total Expenditures $228,844,443 $54,250,000 $38,000,000 $38,000,000 $0 $359,094,443 Ending Fund Balance** ($78,727,329) *** $76,592,671 $38,592,671 $592,671 $592,671 $592,671 Total Uses $150,117,114 $130,842,671 $76,592,671 $38,592,671 $592,671 $359,687,114 ***Originally, the final bond issuance was planned for 2023-2024 but will be deferred to summer 2024. This results in the 2023- 2024 Ending Fund Balance over-expended on a budgetary basis by $78.7 million; however, there is a sufficient cash balance in this fund to cover expenditures in 2023-2024 and once the bonds are issued in 2024-2025, the Ending Fund Balance becomes positive. *The 2024-2025 through 2027-2028 Beginning F und Balances are excluded from the FIVE-YEAR TOTAL SOURCE OF FUNDS to avoid multiple counting of the same funds.
**The 2023-2024 through 2026-2027 Ending Fund Balances are excl uded from the FIVE-YEAR TOTAL USE OF FUNDS to avoid multiple counting of the same funds.
2 Fiscal Year 2019-2020 2020-2021 2021-2022 2022-2023
Expenditures* 52,143,312 75,472,897 75,736,192 60,341,925 *excludes encumbrances
-
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
2019-2020 2020-2021 2021-2022 2022-2023
Measure T Expenditures
(through June 2023)
1

San Jose City CouncilOctober 17, 2023

San Jose City Council
October 17, 2023