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Council Agenda: 12/3/2024
Item No.: 8.2(a)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
RESOLUTION NO. ______________
A RESOLUTION OF THE COUNCIL OF THE CITY OF
SAN JOSE (1) RATIFYING THE CITY MANAGER’S
AUTHORIZATION TO EXECUTE A COLLABORATIVE USE
AGREEMENT WITH THE SANTA CLARA VALLEY WATER
DISTRICT ALLOWING FOR AN EMERGENCY INTERIM
SHELTER/HOUSING COMMUNITY ON THE DISTRICT’S
CHERRY AVENUE PROPERTY; (2) AUTHORIZING THE
CITY MANAGER, OR HER DESIGNEE, TO NEGOTIATE
AND EXECUTE ALL RELATED NECESSARY
AGREEMENTS: (I) SUPPORTING THE STATE OF
CALIFORNIA AND SANTA CLARA VALLEY WATER
DISTRICT IN THEIR EFFORTS TO FUND PORTIONS OF
THE PROJECT AND TO IMPLEMENT THE
REQUIREMENTS OF THE COLLABORATIVE USE
AGREEMENT; AND (II) EXERCISING ANY OPTION
PERIOD(S), AMENDMENTS OR AGREEMENTS TO
EXTEND THE TERM OF THE COLLABORATIVE USE
AGREEMENT UNDER SUBSTANTIALLY SIMILAR
TERMS; (3) DETERMINING THE CITY MAY AWARD A
PROJECT DELIVERY AGREEMENT TO DIGNITYMOVES
TO DELIVER THE EMERGENCY INTERIM HOUSING
PROJECT AT CHERRY AVENUE WITHOUT A
COMPETITIVE PROCUREMENT UNDER THE “IDLE ACT”
EXCEPTION IN SECTION 1217(I)(6) OF THE CITY OF SAN
JOSÉ CHARTER; (4) AUTHORIZING THE DIRECTOR OF
PUBLIC WORKS TO NEGOTIATE, AWARD AND
EXECUTE A PROJECT DELIVERY AGREEMENT AT A
MAXIMUM GUARANTEED AMOUNT NOT TO EXCEED
$15,000,000 FOR THE DEVELOPMENT OF AN
EMERGENCY INTERIM HOUSING PROJECT AT CHERRY
AVENUE WITH DIGNITYMOVES, IN ACCORDANCE WITH
THE REQUIREMENTS OF THE STAFF MEMORANDUM
AND SUBJECT TO THE APPROPRIATION OF FUNDS;
AND (5) AUTHORIZING THE DIRECTOR OF PUBLIC
WORKS TO APPROVE A TEN PERCENT CONTINGENCY
FOR THE PROJECT
WHEREAS, the City of San José (“City”) is committed to addressing unsheltered homelessness through the development of interim supportive housing solutions; and
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Council Agenda: 12/3/2024
Item No.: 8.2(a)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
WHEREAS, the Santa Clara Valley Water District (“Valley Water”) has identified property on Cherry Avenue as a suitable site for an emergency interim housing community under the Governor’s State Small Home Initiative; and
WHEREAS, the City has partnered with DignityMoves, a philanthropic organization, to expedite the development of emergency interim housing at the Cherry Avenue site; and
WHEREAS, the City seeks to ensure efficient project delivery and leverage State funding and philanthropic contributions to provide safe and supportive emergency interim housing for unsheltered individuals; and
WHEREAS, the City recognizes the philanthropic contributions and fundraising efforts by DignityMoves and authorizes the City Manager and Director of Public Works to coordinate efforts to complete design and develop a new emergency interim housing facility at Valley Water’s Cherry Avenue site;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE THAT:
1. The City Council hereby ratifies the City Manager’s authorization to execute a Collaborative Use Agreement with the Santa Clara Valley Water District allowing for an emergency interim shelter/housing community on the District’s Cherry Avenue property.
2. The City Manager or her designee is hereby authorized to negotiate and execute all related necessary agreements:
i. Supporting the State of California and Santa Clara Valley Water District in their efforts to fund portions of the project and to implement the requirements of the Collaborative Use Agreement; and
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Council Agenda: 12/3/2024
Item No.: 8.2(a)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
ii. Exercising any option period(s), amendments or agreements to extend the term of the Collaborative Use Agreement under substantially similar terms;
3. The City Council hereby makes the following findings of fact based on the memorandum from Director of Public Works Matt Loesch, Housing Director Erik L. Soliván, and Budget Director Jim Shannon for the December 3, 2024 City Council meeting (“Memorandum”):
a. DignityMoves has already secured over $2,400,000 in donations and fee discounts, which represents 18% of the current estimated construction costs.
b. DignityMoves will continue to fundraise to cover at least 20% of the total construction cost.
Based on the above facts, the City Council determines that publicly soliciting bids for construction of the project would likely not lead to the City obtaining a lower price for delivering the project and is unlikely to provide any significant value or benefit to the City. Accordingly, the City Council concludes the City may award a Project Delivery Agreement to DignityMoves to deliver the Emergency Interim Housing project at Cherry Avenue without a competitive procurement under the “idle act” exception in Section 1217(i)(6) of the City of San José Charter.
4. The Director of Public Works is authorized to negotiate, award, and execute a Project Delivery Agreement at a maximum guaranteed amount not to exceed $15,000,000 for the development of an Emergency Interim Housing project at Cherry Avenue with DignityMoves, in accordance with the requirements of the Memorandum and subject to the appropriation of funds.
5. The Director of Public Works is authorized to approve a ten percent (10%) contingency for the project.
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Council Agenda: 12/3/2024
Item No.: 8.2(a)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
ADOPTED this _____ day of ___________, 2024, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
MATT MAHAN
Mayor
ATTEST:
TONI J. TABER, MMC
City Clerk