Memorandum — San Jose City Council, February 25, 2025

TO: HONORABLE MAYOR

AND CITY COUNCIL
FROM: Matt Loesch

SUBJECT: See Below DATE: February 3, 2025

Approved

Date:
2/4/25

COUNCIL DISTRICT: Citywide

SUBJECT: Annual Report on the Measure T Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond Program Proceeds and Allocations for Fiscal Year 2023-2024

RECOMMENDATION

Accept the Measure T Community Oversight Committee Annual Report on the Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond Program proceeds and allocations for Fiscal Year 2023-2024.

SUMMARY AND OUTCOME

Consistent with its City Council-approved responsibilities, the Measure T Community Oversight Committee (COC) prepared the Fiscal Year (FY) 2023-2024 annual report for the Measure T - The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond Program (Measure T). (Attachment – San José Community Oversight Committee (COC) 2018 Measure T Disaster Preparedness, Public Safety, and Infrastructure Bond Program Annual Report for Fiscal Year 2023-2024.) The COC reviews and reports on the expenditure of Measure T bond proceeds to ascertain consistency with the voter-approved purposes for the funds and reviews and forwards the annual audit of the financial statements of the San José Public Safety and Infrastructure Bond Projects Fund as well as reviews the Director of Finance’s annual report on the amount of Measure T bonds issued (page 110 in the City of San José Annual Comprehensive Financial Report for the year ended June 30, 2024 1) and
reviews the amount of ad valorem tax collected for each prior FY ending June 30. In

1 https://www.sanjoseca.gov/home/showpublisheddocument/116553/638687454573570000

COUNCIL AGENDA: 2/25/25
FILE: 25-149
ITEM: 3.5

HONORABLE MAYOR AND CITY COUNCIL
February 3, 2025
Subject: Annual Report on the Measure T Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond Program Proceeds and Allocations for Fiscal Year 2023 -2024

Page 2 ends

addition, the COC reviews the status of projects funded with Measure T bonds and forwards a status report on the pending Measure T projects. In its report, the COC provided general observations, comments, and specific recommendations regarding the level of spending of the Measure T authorized funds.

Acceptance of this report concludes the COC’s review of the expenditure of proceeds of Measure T bonds and the status of projects funded by the bond program in FY 2023- 2024.

BACKGROUND

On November 6, 2018, the voters of San José passed Measure T with over 70% of the electorate voting yes. The measure authorizes the City to issue up to $650 million in general obligation bonds for infrastructure projects.

As part of the Measure T bonds program, City Council was required to appoint a committee comprised of residents of San José to provide community oversight over the expenditure of the Measure T bonds. The measure also required that the size, composition, and specific responsibilities of the committee be determined by a City Council action prior to the issuance of any Measure T bonds. On June 18, 2019, the City Council approved the resolution establishing the size, composition, and specific responsibilities of the committee. The responsibilities of the Measure T COC include the following:

1) Review the expenditure of the proceeds of Measure T bonds to ascertain consistency with the voter-approved purposes for the funds; 2) In connection with the review of expenditures of Measure T bonds, review and forward to the City Council an audit of the Measure T bonds financial statements as well as review the Director of Finance’s annual report on the amount of Measure T bonds issued, and review the amount of ad valorem tax collected for each prior FY ending June 30; and
3) Review the status of projects funded with the proceeds of Measure T bonds and forward a status report on the pending Measure T projects to the City Council.

The COC has been preparing and reviewing the annual report on the bond program proceeds and allocations through an ad hoc committee. The committee requested a motion to approve this report pending the format changes discussed during its meeting on January 16, 2025. The motion was passed by the committee unanimously.

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ANALYSIS

The attached annual report represents the COC report to City Council on the Measure T bonds program for City Council review and acceptance.

The COC provided general observations, recommendations, and comments regarding the authorized funds, status, and planning of Measure T projects. The major concerns highlighted in the report are the level of spending of Measure T authorized funds and the potential risk of public safety project overruns, given that as of June 2024, those projects were still in the early stages of design or development. The COC report also discussed further analysis of the allocation, status, and results of the Measure T expenditures as reported in the audited financial statements of the San José Public Safety and Infrastructure Bond Projects Fund.

The annual report from the COC also provides the following recommendations for City Council to consider.

1. Prioritize the public safety projects slated to receive Measure T funds.

2. Continue communication with COC district representatives to facilitate communication of the results of the COC’s Measure T oversight.

3. Continue to work to appoint individuals to the open committee seats, recognizing how important it is to have a full representation on the committee.

EVALUATION AND FOLLOW-UP

The bond program proceeds and allocations and the status reports on the project expenditures and performance of the Measure T bond program are reported on a bi- annual basis to the COC and City Council. The next Measure T bond program update will be presented to City Council in March 2025.

COORDINATION

This memorandum and the COC’s annual report on the Measure T bond program proceeds and allocations have been coordinated with the City Attorney’s Office, the City Auditor’s Office, the City Manager’s Budget Office, and the Finance Department.

PUBLIC OUTREACH

On November 7, 2024, the COC conducted a public hearing to review the expenditures and the audited financial statements for the FY ending June 30, 2024. Staff from the City Auditor’s Office, the Finance Department, and a representative from Macias Gini &

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O’Connell, the City’s external financial auditor, attended the public hearing to answer questions from the COC. Department of Public Works staff also presented the bond expenditures and the progress of projects. The COC conducted a second public meeting on January 16, 2025, to review and approve the COC report.

This memorandum will be posted to the City’s Council Agenda website for the February 25, 2025 City Council meeting.

COMMISSION RECOMMENDATION AND INPUT

The Measure T COC approved the audited Financial Statements as identified in its corresponding memo and annual report.

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
Director of Public Works

For questions, please contact Sal Kumar, Deputy Director, Public Works Department, at [email protected].

ATTACHMENT – San José Community Oversight Committee (COC) 2018 Measure T Disaster Preparedness, Public Safety, and Infrastructure Bond Program Annual Report for Fiscal Year 2023-2024

ATTACHMENT
FROM: Community Oversight Committee (COC)
for the Measure T: Disaster Preparedness,
Public Safety, and Infrastructure Bond Program.

Measure T COC FY2023-FY2024 Final Report V1a Page 1 of 8 16 January 2025
SUBJECT: San José Community Oversight Committee (COC) 2018 Measure T Disaster Preparedness, Public Safety, and Infrastructure Bond Program Annual Report for Fiscal Year 2023-2024
Accept this Fiscal Year 2023-2024 Community Oversight Committee (COC) report on the Measure T Disaster Preparedness, Public Safety, and Infrastructure Bond Program proceeds and allocations and its findings and recommendations.

1. COC FINDINGS AND CONCLUSIONS
The bond issuance and related expenditures for the fiscal year ended June 30, 2024 have been reviewed by the COC to ensure that the proceeds have been used within the spending categories defined and authorized by Measure T and have been expended on a timely basis to ensure that the municipal bonds issued retained their tax-exempt status.

2. COC REQUEST FOR ACTION
This report provides Measure T COC general observations, comments and specific recommendations regarding the level of spending of Measure T authorized funds, the status and planning of Measure T projects, and the number of unfilled seats for the COC.

3. GENERAL OBSERVATIONS AND COMMENTS
a. $440.4 million of the three-tranche, $650 million bond measure have been issued thus fa r
($239.9 million in 2019 and $200.5 million in 2021) with the remaining $209.6 million currently slated for issuance in July 2025. Through the first five years of Measure T’s existence and operation (July 2019 through June 2024), 79% (86% including encumbrances at fiscal year-end) of the issued bond proceeds have been spent while 54% (59% including encumbrances) of the overall contemplated $650 million issuance have been expended. Refer to Section 8, Table 8-1 for more information on category spending, expected expenditures and relevant percentages.

Whenever the city goes forward with the remaining bond issuance, it will be incumbent on DPW to ensure timely spending of proceeds to avoid any risk of running afoul of IRS regulations vis a vis the three-year spending requirement to maintain the issuance’s tax-exempt status. This issue has been addressed in considerable detail in prior COC reports to Council. b. Delays and/or deferrals of planned spending serve to push completion of affected Measure T projects further out into the future where cost projections and completion timing become less certain and more prone to serious cost overruns due to the simple passage of time coupled with the compounding impact of high inflation. As noted in last year’s COC report to council, one project has already been re-scoped (Charcot pump station) and repackaged into two pieces (Charcot storm drain packages 1 and 2) due to funding concerns while another designated Measure T project has been shelved due to site-location difficulties and Measure T funding unavailability (Fire Station 23 re-location). For further information on these projects, please refer to DPW’s most recent semi-annual report to Council dated September 3, 2024. Completion of the Charcot second package and Fire Station 23 will depend entirely on the city’s ability to secure alternative funding sources inasmuch as no Measure T funds will be available based on DPW’s current estimates.

Measure T COC FY2023-FY2024 Final Report V1a Page 2 of 8 c. A total of twenty-seven Measure T projects (twenty-two actual projects with general category “Admin” line items removed from the count) are statused in the Independent Accountant’s report (Attachment 1, FY 2023-2024 Independent Accountant's Report Statement of Revenues.

Expenditures, and Change in Fund Balance by Fiscal Year for the Period from July 1,2023 through June 30, 2024). This COC report provides a further analysis of the allocations, status, and results of Measure T expenditures (refer to COC matrix, attachment 2, FY 2023-2024 COC Oversight Project Item Comparison Matrix).
d. DPW issued a June 30th semi-annual Measure T status update in a report to council dated September 3, 2024 (refer to attachment 3, The Director of Public Works Status Report on the November 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond dated September 3, 2024 ). COC observations and comments related thereto are summarized below:
(1) The number of Measure T projects, primarily public safety projects, that are in their very early stages or have yet to even commence, presents considerable risk to the city. With estimated projected overages of $70.3 M in total (currently covered by the reserves), further project rescoping, shelving and/or defunding continues to be a cause for concern. Most previously unallocated project category reserves have now been allocated and/or reallocated as per DPW’s reserve reconciliation (refer to Table 3-1 below) leaving little margin for error. Any further delays and/or future cost overruns are likely to have negative consequences for completion of the remaining scheduled projects. (2) The COC again recommends that the city council consider prioritizing the public safety projects slated to receive Measure T funds. As previously noted, DPW is in the very early stages of most of the twelve public safety projects originally approved and scoped for receipt of Measure T funds. Due to the risks of continued inflation, unexpected cost overruns, or other presently unforeseeable circumstances, there can be no assurances that all scheduled public safety projects will be completed on time and within budget.

Establishing public safety project priorities will enable the city council to make timely mid- course spending corrections, effect necessary project re-scoping, or make important project- shelving decisions, should such action(s) become necessary. The principal objective of the prioritized spending approach is to avoid arriving at the terminus of Measure T with a number of partially completed public safety projects without the necessary funding sources available for completion. DPW anticipates that the currently estimated cost overruns for each of these listed projects will be covered through the application and use of existing Measure T reserves. It is important to note, however, that as of June 30, 2024, after taking into account use of the reserves required to close currently estimated project cost gaps, DPW estimates that there remain only $15 million in public safety project reserves to cover any and all additional unidentified/unanticipated future cost overruns.

Measure T COC FY2023-FY2024 Final Report V1a Page 3 of 8 Table 3-1. FY 23-24 Measure Public Safety Reserves Status Project Name
19/20 Initial
Budget
Current Total
Project Budget
(FY 24/25)
Estimated
Projected
Overages Comments
Fire Station 8 16,500,000 20,390,000 -3,890,000
Fire Station 20 - 4,930,000 -4,930,000 Completed
Fire Station 32 17,000,000 22,093,000 -5,093,000
Fire Station 36 17,000,000 18,036,000 -1,036,000
Fire Station 37 6,680,000 8,011,000 -1,331,000 Completed Emergency
Operations Ctr
11,500,000 25,072,000 -13,572,000
PD Training
Center
45,000,000 59,042,000 -14,042,000
PD Hangar 8,400,000 17,742,000 -9,342,000
911 CC
Upgrades
- 6,181,000 -6,181,000
Police Admin
Bldg Upgrades
- 6,250,000 -6,250,000
Admin Fees - 2,762,000 -2,762,000 Admin fees and Public Art were not originally budgeted, but required as part of
the program.

Public Art - 1,898,000 -1,898,000
Total 122,080,000 192,407,000 -70,327,000
Reserves Sources
36,420,000 Initial Public Safety Reserve Budget
14,100,000 Transfers: Charcot Drainage, Critical Infrastructure, Envi Protection 24,503,000 FS 8 land sale, FS 20 GF reimbursement, FS 23 defund ($12.4M), COI Usage 10,381,000 Interest Earned thru 22/23
85,404,000 Total Sources (all funding is put into the Reserves bucket and then later transferred out to the individual project budgets)
15,077,000 Total Reserves Remaining (Year to Date)
Measure T COC FY2023-FY2024 Final Report V1a Page 4 of 8 e. $300 million of Measure T bond proceeds have been earmarked for street resurfacing. The city originally identified 420 miles out of San Jose’s 2,519-mile pavement network (1552 miles of local and neighborhood streets; 967 miles of major streets) that were in the worst condition and would be the recipient of Measure T funds. It is important, however, to point out that funding for the city’s ongoing street maintenance/resurfacing program is not limited to Measure T funds but is allocated resources from other funding sources in addition to Measure T. As a result, it is not possible for the COC to draw any conclusions as to the efficacy of actual Measure T spending as it relates specifically to the expected number of miles originally targeted for resurfacing usi ng
$300 million in Measure T funds. Nonetheless, it is important and worth noting that DOT has made substantial progress in achieving their stated resurfacing goals and expects to provide maintenance to all of San Jose’s local and neighborhood streets by 2028 as per DPW’s September 3, 2024 report to city council (attachment 3, The Director of Public Works Status Report on the November 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond dated September 3, 2024 ).

4. STATUS OF PRIOR YEAR RECOMMENDATIONS
a. In last year’s COC FY 2022-2023 Annual Report, the COC recommended that the city council consider prioritizing the public safety projects slated to receive Measure T funds. The risks of Inflation, unexpected cost overruns, or other presently unforeseeable circumstances, continue to be a concern that all scheduled public safety projects will not be completed on time and within budget. The prioritizing of the public safety projects is strongly recommended again in Section 3, GENERAL OBSERVATIONS AND COMMENTS of this year’s Annual Report. b. There are currently four vacancies (out of a total of fifteen appointed positions) – District 7, Citywide-business, Public Safety, and Citywide (Finance/Accounting). Once again, we emphasize the importance of having a fully-seated COC and are hereby encouraging the City Council to appoint four individuals to fill the remaining seats as soon as possible.

5. CONTINUING RECOMMENDATIONS
To ensure continued communication and liaison with their respective constituencies, District representatives to the COC will again be required to reach out to their respective Councilmembers to offer any support deemed necessary within their given Districts to facilitate communication of the results of the COC’s Measure T oversight to that District’s constituency. This also serves to reinforce the importance of restated prior recommendation in Section 4, item b, immediately above.

6. BACKGROUND/DETAILS ON MEASURE T
This report to the Mayor and Council provides the COC findings and recommendations for the Measure T Disaster Preparedness, Public Safety, and Infrastructure Bond Program for the period from July 1, 2023, through June 30, 2024.

On November 6, 2018, registered voters of the City of San José approved Measure T, the San José Public Safety, and Infrastructure Bonds, authorizing the issuance and sale of general obligation bonds (PSI Bonds) not to exceed $650,000,000 to be used to fund the cost of land or improvement of land of, without limitation, the following categories of projects: Traffic, Public Safety, Storm Sewer, Municipal Improvements, and Parks & Community Facilities.

The COC was authorized because of the approved San José City’s Measure T bond measure that provided for Community Oversight of the expenditure of the bonds.

On June 18, 2019, the City Council approved the resolution establishing the size, composition, and specific responsibilities of the COC.

Measure T COC FY2023-FY2024 Final Report V1a Page 5 of 8 The Measure T Community Oversight Committee serves as an advisory committee to the City Council, with responsibilities to include the following: (1) Review the expenditure of Measure T funds to ascertain consistency with the voter approved purposes for the funds; (2) In connection with the review of Measure T expenditures, review and forward to the City Council an audit of the Measure T Bonds Financial Statements for the fiscal year ending June 30th as well as the Director of Finance’s annual report on the amount of Bonds issued and the amount of ad valorem tax collected for each prior fiscal year ending June 30th; and (3) Review the status of projects funded with Measure T funds and forward a status report on the pending Measure T projects to the City Council.

7. BOND PROCEEDS AND TAX EXEMPTION REQUIREMENTS
IRS rules require 85% of the bond proceeds for the Measure T projects must be expended within the three years of bond-issuance to remain tax exempt. The three-year window was reached for the first bond-issuance in July 2022; the three-year window will be reached for the second bond-issuance in July 2024. DPW staff has been closely tracking Measure T expenditures to ensure the bond proceeds are spent in accordance with the IRS tax-exempt guidelines for municipal bonds. Table 7-1 provides the Measure T yearly bond history from 2018 through 2024.

Table 7-1. Measure T: Disaster Preparedness, Public Safety, and Infrastructure Bond Proceeds
2018 Bond Authorized $650.0 M
2019 Bond Issued ($239.9M)
2021 Bond Issued ($200.5M)
Total Bonds Issued to date ($440.4M)
Remaining Bond Issuance $209.6M
Measure T COC FY2023-FY2024 Final Report V1a Page 6 of 8

8. AUDITED USE OF FUNDS
San José City’s 2018 Measure T: Disaster Preparedness, Public Safety, and Infrastructure Bond Program Audited Use of Funds for FY 2023-2024 was $87,441,076. The Total Measure T Audited Use of Funds for FY 2019 through FY 2024 was $348,158,090.

The funds were allocated and expended for each of the Measure T program categories as detailed in Table 8-1, below.

Table 8-1. FY 2019-2020 Through FY 2023-2024 Measure T Audited Use of Funds Vs Planned Spending and Total Expected Expenditures by Major Category Measure T
Program
Category
Measure T
Audited Use of
Funds for
Fiscal Years
June 30, 2019
Through
June 30, 2024(1)
June 30, 2024
Encumbrances
by Program
Category(2)
Total Audited
Use of Funds
Plus
Encumbrances
at June 30,
2024(3)
Revised Life-
of-Category
Expected
Expenditures
per DPW as of
October 2024(4)
Percent of
Funds
Spent vs
Total
Expected
Spending(5)
Percentage
of Each
Measure T
Program
Category
Unspent as
of 6-30-24(6)
Traffic 188,544,836 6,539,037 195,083,873 328,824,000 59.2% 40.8% Public Safety 89,551,257 21,414,664 110,965,921 208,616,615(7) 53.1% 46.9% Storm Sewer 11,061,772 3,934,310 14,996,082 54,100,000(8) 27.7% 72.3% Municipal
Improvements 55,623,180 55,623,180 58,072,495(9) 95.6% 4.4% Parks & Comm
Facilities 3,377,045 1,840,525 5,217,570 12,947,000 40.3% 59.7% Total $348,158,090 $33,728,536 $381,886,626 $662,560,110(10) 57.6% 42.4% (1) The aggregate sum of the last five fiscal year’s audited financial statements by Measure T program category (2) Per the audited financial statements for June 30, 2024 – represents year-end contractual obligations/encumbrances by program category not included as a financial liability in the year-end audited use of funds calculation (3) The sum of columns 1 and 2
(4) Per Measure T COC matrix (see attachment 2, FY 2023-2024 COC Oversight Project Item Comparison Matrix) and DPW revised estimates as of October 2024
(5) Column 3 divided by column 4
(6) Column 4 minus column 3 divided by column 4 (or 100% minus column 5). (7) Planned spending revision due to defunding Fire station 23 and reallocation of available reserves to other program categories
(8) Planned spending revision due to Charcot project re-scoping (9) Planned spending revision due to environmental project savings and category reserve transfer to public safety (10) Increase in revised life-of-category expenditures from $656MM (last year’s number) to $663MM reflects the addition of interest earned on unspent bond proceeds
Measure T COC FY2023-FY2024 Final Report V1a Page 7 of 8

9. COC COMMITTEE MEMBERSHIP
A list of the COC members serving during FY 2023-2024 is provided in Table 9-1.

Table 9-1. COC Committee Members Serving During FY 2023-2024 Representing Committee Member Representing Committee Member D1 Gary Cunningham D9 Shruti Chandrasekhar*
D2 Carolyn Bauer D10 Open
D3 Michelle Brenot Citywide (Labor) Olivia Navarro
D4 Jai Srinivasan Citywide (Business) Open
D5 Enrique Arguello Citywide (Finance/Accounting) Open
D6 Nicholas Cochran** Public Safety Open
D7 Open Environmental Issues Lee Space
D8 Gilberto Torres
*Chair **Vice Chair

10. COC MEETINGS
COC meetings were conducted in accordance with SJ City and Brown Act requirements. The Program Manager from the San José City Director of Public Works provided support for meeting logistics including meeting rooms, Zoom calls, agendas, notices, and minutes.

11. AUDITED DATA AND STATUS REPORT
The San José City Director of Public Works provided the COC with the following:
• The Measure T Independent Auditor’s Report for the fiscal year ended June 30, 2024 and for the period from July 25, 2019 through June 30, 2024 (Measure T inception-to-date) The report was prepared by Macias Gini & O’Connell LLP (attachment 1). • The Director of Public Works Measure T, The Disaster Preparedness, Public Safety, and Infrastructure Bond Status Report, dated September 3, 2024 (attachment 3).

12. OVERSIGHT METHODOLOGY
Measure T requires community oversight of the measure’s bond proceeds. This includes reporting the measure’s planned proceeds allocation, actual allocations, and the result of the expenditure.

The FY 2023-2024 Independent Accountant's Report detailing the audited use of funds is used in the oversight process and is included as attachment 1.

The Director of Public Works Measure T, The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond Status Report, dated September 3, 2024, is used in the oversight process. The status report provides the status on budget, schedule, and results of the expenditures and is included as attachment 3.

Measure T COC FY2023-FY2024 Final Report V1a Page 8 of 8

13. OVERSIGHT PROJECT ITEM COMPARISON MATRIX AND ANALYSIS A matrix of the projects was developed and compares those items with data provided in the reports cited in section 12, Oversight Methodology. The results of the comparisons form the findings for each of the project’s planned use of funds, audited use of funds, and the results or outcomes of the expenditures. The matrix is provided as attachment 2 to this report.

The matrix lists all projects to be funded by Measure T set forth by Measure T category, as rows, and is aligned with the projects listed in attachments 2 and 3. For each project line item (matrix row) nine items of data are shown in the nine columns of the matrix described in Table 13-1. Some projects listed may not have had any planned effort for this fiscal year and are noted as such in the matrix.

Table 13-1. Title and Description of contents of each of the Nine Columns of the Comparison Matrix (attachment 3)
Column# Column Title Description of contents of the column 0 Projects Project item associated with each Measure T category 1 Project Location by Council
Districts
The districts in which this line item is physically located or the districts either impacted by or benefitted from this item 2 2023-2024 Planned Use of
Funds
Planned FY 2023-2024 funding for the item
3 2023-2024 Audited Use of
Funds
Audited FY 2023-2024 funds used for the item
4 Total Audited Use of Funds as
of June 30, 2024
Total of FY 2019-2020 through FY 2023-2024 Audited funds used for this item
5 Results of Expenditures Provides details of the accomplishments of the expended funds for the line item
6 Initial Life of Project Total
Estimated Expenditure
Provides Initial estimate of the Total Expenditure expected for completing line item
7 Revised Life of Project Total
Estimated Expenditure
Provides Revised/New estimate of the Total Expenditure
expected for completing line item
8 Potential Delta
(Expected overrun/underrun)
Provides the estimate of the Expected Overrun /Underrun for completing this line item. It is the difference between” Initial” and “Revised” Life of Project Total Estimated Expenditure ATTACHMENTS:

Attachment 1. FY 2023-2024 Independent Accountant's Report Statement of Revenues.

Expenditures, and Change in Fund Balance by Fiscal Year for the Period from July 1,2023 through June 30, 2024
Attachment 2. FY 2023-2024 COC Oversight Project Item Comparison Matrix Attachment. 3 The Director of Public Works Status Report on the November 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond dated September 3, 2024
Attachment 1
Table of Contents
Page
Government Auditing Standards
OpinionBasis for Opinion Government Auditing StandardsGovernment Auditing StandardsEmphasis of a Matter Management’s Responsibilities for the Financial Statements Auditor’s Responsibilities for the Audit of the Financial StatementsGovernment Auditing Standards Government Auditing Standards Supplementary Information
Government Auditing Standards Government Auditing StandardsGovernment Auditing Standards

Basis of Presentation
Basis of Accounting Restricted Cash and InvestmentsFund Balance Fund Balance Reporting and Governmental Fund Type DefinitionsUse of Estimates Credit Risk
Concentration Credit RiskInterest Rate Risk Fair Value Measurement Categorization

Government Auditing Standards Government Auditing StandardsGovernment Auditing Standardsdeficiency in internal controlmaterial weakness significant deficiencyGovernment Auditing Standards Government Auditing Standards

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Attachment 2
Final Version
Projects 0 Project Location by
Council Districts1
Carryover
Encumbrance
Balance 2
2023-2024
Planned Use of
Funds3
Total Carryover +
FY 23/24 Funding4
2023-2024
Audited Use of
Funds5
Total Audited Use of Funds as of June 30,
20246 Results of Expenditures 7 Initial Total Project
Estimates8
Updated Total Project
Estimates as of October 2024
Potential Delta (expected
overrun/underrun)10 Notes

1. Traffic

1.1 Bridges
CW 256,879$ 11,433,000$ 11,689,879$ 3,650,633$ 7,947,521$ Staff expenditures associated with completing
the construction of deck treatment project at
Story Road and Cropley Avenue, deck
replacement and installation of upgraded
bollards at a pedestrian bridge adjacent to
Millbrook Elementary School (including
paying out contractor's invoices). In addition,
maintenance was performed on 11 bridges,
addressing guardrail, concrete spall, soil
settlement, and seismic plate repairs.
$ 20,000,000 $ 19,977,000 $ 23,000

1.2 Pavement Maintenance
CW 12,734,857$ 50,451,000$ 63,185,857$ 55,184,512$ 177,103,063$ Completed maintenance on 108 miles of local
and neighborhood streets. Started design on
115 miles of local streets.
$ 300,000,000 $ 300,000,000 $ - The City originally identified 388 miles in 2017/2018 of local and neighborhood streets to be resurfaced or reconstructed using Measure T funding, with an annual budget of $37.5 million from 2020 to 2027. However, as pavement condition deteriorates over time, more streets fall into the rehabilitation category for the pavement treatment. Since then, in 2019, 420 miles were expected to be repaved during Measure T's lifespan.

Approximately 517 miles have been resurfaced, including 293 miles from the initial 388. The City is currently on track to meet its goals by the end of 2028.

1.3 LED Streetlight Conversion
CW - 5,414,827$ 5,414,827$ 876,787$ 3,299,965$ With the completion of the PG&E streetlight
inventory audit, in July 2021, there is a billing
records review under way of over 27,000
streetlight records. Staff time associated with
reviewing billing records as a joint effort with
PG&E and City Staff. Staff converted 670
fixtures in various areas of the City (mainly in
Council District's 3, 4, and 6).
$ 13,000,000 $ 8,578,000 $ 4,422,000 $4.3M of this funding has been transferred to City Facilities LED (Line item 4.1) to cover expenses that were spent
benefitting both programs.

1.4 Admin – Traffic
N/A - 29,000$ 29,000$ 28,288$ 194,288$ Administration costs

1.5 Admin Reserve – Traffic
N/A - 64,000$ 64,000$ - - Administration costs Total Traffic $ 12,991,735 $ 67,391,827 $ 80,383,562 $ 59,740,219 $ 188,544,836 $ 333,000,000 $ 328,824,000 $ 4,176,000 Tranferred to the City Facilities LED project in the Muni program

2. Public Safety

2.1 Fire Station 37
6 126,196$ 50,000$ 176,196$ 32,743$ 7,867,561$
Staff costs and final Contractor's payments to
finalize the project closeout. Construction
began in September 2020 and fully operational
since May 2022.
$ 6,680,000 $ 8,011,000 $ (1,331,000) Actual Bid Results came in higher. Allocation from Public Safety Reserve

2.2 Fire Station 8 Relocation
3 322,197$ 13,010,660$ 13,332,857$ 3,789,806$ 10,464,132$ Awarded to DL Falk Construction, Inc.

Construction began Oct. 2023 and anticipated
to be completed Spring 2025. Staff charges for
managing the construction, including pay
letters and and change orders.
$ 16,500,000 $ 20,390,000 $ (3,890,000) Actual Bid Results came in higher. Allocation from Public Safety Reserve

2.3 Fire Station 23 Relocation
4 9,500 3,028,000$ 3,037,500$ 32,359$ 142,131$ Staff has identifed a suitable site for the
relocation project and have been in
negotiations with the property owners.

Expenditures for staff time as it relates to the
site search process and required environmental
review as part of site selection.
$ 16,500,000 $ 4,147,000 $ 12,353,000 Project was defunded to cover other public safety projects and the remainder was placed in a the Public Safety Reserve. Note:

Money has been set aside for land aquisition.

2.4 New Fire Station 32
7 430,255$ 12,833,375$ 13,263,630$ 236,692$ 5,678,941$
Project had staff charges to coordinate with
Consultant on design plans and prepare bid
documents for procurement. Bids were rejected
three times due to non-responsive bids. Staff
had to prepare bid documents multiple times to
put out for advertisement. Awarded to
Gonsalves and Stronck Construction Company
June 2024.
$ 17,000,000 $ 22,093,000 $ (5,093,000) Difference in costs are associated with projected inflation rates as well as the expanded scope to include the dual company per Council direction from June 2022. Additional funding allocated from the Public Safety Reserve.

2.5 New Fire Station 36
7 - 17,225,000$ 17,225,000$ 9,319$ 434,779$ Staff charges associated with the preparation of
the master agreement for the consultant for
design services.
$ 17,000,000 $ 18,036,000 $ (1,036,000) Difference in costs are associated with projected inflation rates.

2.6 Fire Station 20
CW - - - - 4,929,731$ Project completed. $ - $ 4,929,731 $ (4,929,731) Landside serving fire station located at the San Jose Airport.

Only $2.3M was replenished by the General Fund. Total Cost of Project: $4,929,731

2.7 Emergency Ops Ctr. Relocation
(EOC) CW 2,350,479$ 2,782,000$ 5,132,479$ 2,636,828$ 22,578,628$ Staff charges associated with managing the
construction and project close out, including
paying out contractor's invoices and change
orders.
$ 11,500,000 $ 25,072,000 $ (13,572,000) Allocation from Public Safety Reserve Measure T Public Safety and Infrastructure Bond Fund Planned and Audited Use of Funds FY2023-FY2024 $ 269,000 $ (269,000) Funds only the Senior Analyst and Accountant positions – all other positions are direct charge to the capital project. General obligation bonds have a 5% cap on administrative costs.

The total Measure T admin costs are less than 1% of the entire bond.

2.8 Police Training Ctr. Relocation
CW 820,433$ 46,177,000$ 46,997,433$ 6,021,328$ 27,009,278$ Awarded to Midstate Construction December
2023 and anticipated to be completed Spring
2026. Staff finished the design and for both the
academy and training spaces; construction
commenced in March 2024 . Expenditures
account for staff time, consultant design
services and construction/change order
invoices.
$ 45,000,000 $ 59,042,000 $ (14,042,000) A portion of this overrun has been reimbursed from the savings obtained from Storm Sewer program and public safety reserves.

The Total Estimated Expenditures is for full build out of the Police Training & Academy spaces.

2.9 Police Air Support Unit Hangar
CW 349,134$ 15,803,000$ 16,152,134$ 4,862,039$ 6,447,224$ Construction started January 2024. Staff
charges, consultant design services and
construction/change order invoices.
$ 8,400,000 $ 17,742,000 $ (9,342,000) Difference in costs are associated with projected inflation rates as well as the expanded scope to build an essential building.

Additional funding allocated from the Public Safety Reserve.

Additional funding will be required for the fire foam suppresion system and design services.

2.10 Public Safety Reserve
N/A - 8,798,884$ 8,798,884$ - - Reserve funds carried over from previous issuance. $ 36,420,000 $ 15,077,000 $ 36,420,000 There is currently $15.1M remains in the reserve. Interest earning from all programs have been placed into the Public Safety reserve to help with funding shortfalls.

2.11 Future 911 Call Center Upgrade
CW 188,205$ 5,240,000$ 5,428,205$ 219,446$ 972,917$ Staff charges and consultant services for the design of this project. $ - $ 6,181,000 $ (6,181,000) Initial estimates were not established at the time of the bond passing. This project is funded from Public Safety Reserve

2.12 Future PD Headquarters
Upgrade CW - 6,158,870$ 6,158,870$ 258,390$ 349,556$ Expenditures associated with procuring a
vendor to upgrade the gun range and staff
charges for preliminary design of the HVAC
upgrades and plumbing improvements at the
$ - $ 6,250,000 $ (6,250,000) Initial estimates were not established at the time of the bond passing. This project is funded from Public Safety Reserve

2.13 Public Art – Public Safety
N/A 105,077$ 937,000$ 1,042,077$ 208,343$ 1,041,805$ Funding to cover the public art requirement for this bond $ - $ 1,898,000 $ (1,898,000) Required funding for public artwork no less than 1% of the total amount budgeted for the City’s capital improvement project. Exceptions are non-construction or rehabilitation

2.14 Admin – Public Safety N/A - 318,030$ 318,030$ 313,031$ 1,634,575$ Administration costs

2.15 Admin Reserve – Public Safety N/A - 1,082,000$ 1,082,000$ - - Administration costs Total Public Safety
$ 4,701,476 $ 133,443,819 $ 138,145,295 $ 18,620,323 $ 89,551,257 $ 175,000,000 $ 211,630,731 $ (21,553,731) The delta is being covered by some of savings obtained in the Muni Improvements (roughly $8.2M), the bond issuance fee ($7.05M), the revenue from selling property to VTA
($2.8M), interest earnings ($10.4 M), partial reimbursement of FS 20 ($2.3M), and the transfer from the storm sewer program ($5.9M).

3. Storm Sewer

3.1 Charcot Storm Drain (originally
called Charcot Pump Station)
4 1,406,789$ 23,620,000$ 25,026,789$ 1,473,416$ 3,327,061$ Staff continued to progress the design of the
rescoped project (from a pump station to a
storm drain system). Expenditures account for
staff time and consultant services for project
design.
$ 35,000,000 $ 28,264,000 $ 6,736,000 Project was re-scoped to construct a less costly storm drain system rather than a pump station. The project savings were reallocated to the Public Safety program.

The project will be built in two phases. The funding is available to build phase 1 and to design phase 2.

3.2 Clean Water Projects
CW 207,117$ 17,014,739$ 17,221,856$ 4,844,308$ 7,105,057$ Staff continued to progress with the scoping, com
$ 25,000,000 $ 24,422,000 $ 578,000 Two projects currently in design/construction phases are the River Oaks Regional Stormwater Capture Project & Vintage Heritage Gardens (to be renamed)
. Staff in the process of
exploring 5 additional sites.

To supplement bond funds the City continues to pursue federal and state grants for Green Stormwater Improvements.

3.3 Public Art – Storm Sewer N/A 165,000 187,000$ 352,000$ 121,548$ 246,867$ Funding to cover the public art requirement for this bond
$ - $ 527,000 $ (527,000) See Note for item 2.3

3.4 Admin – Storm Sewer N/A - 143,000$ 143,000$ 141,064$ 382,788$ Administration costs

3.5 Admin Reserve – Storm Sewer N/A - 382,000$ 382,000$ - - Administration costs Total Storm Sewer $ 1,778,906 $ 41,346,739 $ 43,125,645 $ 6,580,335 $ 11,061,772 $ 60,000,000 $ 54,100,000 $ 5,900,000 Transferred to Public Safety Program to help shortfall

4. Municipal Improvements

4.1 City Facilities LED Lighting
CW 299,200$ 227,312$ 526,512$ 477,266$ 8,751,258$
Staff expenditures associated with completing
the conversion of Park & Trail lights to LED
and continued to progress on the conversion of
Community Centers & Libraries.
$ 7,000,000 $ 11,201,000 $ (4,201,000) Shortfall covered by Streetlight LED item 1.3 budget adjustment

4.2 Critical Infrastructure
N/A - - - - - Funding has been shifted to the Public Safety program $ 5,000,000 $ - $ 5,000,000 Funding was reallocated to the Public Safety Program

4.3 Admin – Muni Improvements N/A - - - - 80,379$ Administration costs Admin Reserve – Muni N/A - - - - - Administration costs

4.4 Environment Protection
2 - - - - 46,791,543$
Planned expenses due to the purchase of the
Coyote Valley Property and for the relocation
of the tenants.
$ 50,000,000 $ 46,791,543 $ 3,208,457 Savings was reallocated to the Public Safety Program Total Municipal Improvements $ 299,200 $ 227,312 $ 526,512 $ 477,266 $ 55,623,180 $ 62,000,000 $ 58,072,495 $ 3,927,505

5. Parks & Community Facilities

5.1 Community Centers/Emergency
Shelters
CW 2,186,277$ 7,670,977$ 9,857,254$ 1,993,071$ 3,252,169$ Staff continued to progress the design of
Camden community centers and construction at
Priority Projects 1&3. Expenditures account
for staff time, design consultant services and
construction costs.
$ 12,950,000 $ 12,631,000 $ 319,000 See note for item 1.4 & 1.5
$ - $ 2,762,000 $ (2,762,000) See note for item 1.4 & 1.5 See note for item 1.4 & 1.5 $ - $ 887,000 $ (887,000) $ - $ 79,952 $ (79,952) Attachment 2
Final Version
Projects 0 Project Location by
Council Districts1
Carryover
Encumbrance
Balance 2
2023-2024
Planned Use of
Funds3
Total Carryover +
FY 23/24 Funding4
2023-2024
Audited Use of
Funds5
Total Audited Use of Funds as of June 30,
20246 Results of Expenditures 7 Initial Total Project
Estimates8
Updated Total Project
Estimates as of October 2024
Potential Delta (expected
overrun/underrun)10 Notes
Measure T Public Safety and Infrastructure Bond Fund Planned and Audited Use of Funds FY2023-FY2024

5.2 Public Art – Parks N/A - 74,000$ 74,000$ - 36,802$ Funding to cover the public art requirement for this bond $ - $ 126,000 $ (126,000) See Note for item 2.3

5.3 Admin – Parks N/A - 30,000$ 30,000$ 29,861$ 88,074$ Administration costs Admin Reserve Parks N/A - 65,000 65,000 - - Administration costs Total Parks & Community Facilities $ 2,186,277 $ 7,839,977 $ 10,026,254 $ 2,022,932 $ 3,377,045 $ 12,950,000 $ 12,947,000 $ 3,000 Bond Issuance Fee $ 7,050,000 $ 7,050,000 Transferred to Public Safety Program to help shortfall Total Planned Expenditures
$ 21,957,594 $ 250,249,674 $ 272,207,268 $ 650,000,000 $ 665,574,226 $ (497,226) The additional funding added to the overall program comes from the interest revenue earned on the bond (roughly
$10.4M), partial reimbursement for FS 20 ($2.3M) and the additional funding obtained from the sale of the FS 8
property to VTA ($2.8M). This funding was added to the
Public Safety Program to help cover the remaining shortfall.

Total Audited Use of Funds $ 87,441,076 $ 348,158,091 Ending Fund Balance
Sources
0 Project name / description
1 Within the project dashboard located in the Construction Projects and Record Search on the City's website 2 Carryover encumbrace balance from prior year.
3 Located in the Adopted Capital Budget under the Measure T 5-year Source and Use 4 Carryover encumbrace balance plus the FY 23/24 Source & Use Amount equals the total funding available for the fiscal year. 5 Auditor's Report ending June 30, 2024
6 Total expenditures from 2019-2024 from the Auditor's Report (total project expenses through 06/30/24) 7 Information on expenditures for the FY 23/24 (referencing how column G was spent) 8 Original budget identified for the project
9 Revised budgets and estimates to complete the project as of October 24, 2024 (includes prior expenditures) 10 Expected Overrun/underrun (Difference between item# 6 and item# 7) Highlighted amount will increase following revision.

See note for item 1.4 & 1.5 $ - $ 190,000 $ (190,000)

TO: HONORABLE MAYOR

AND CITY COUNCIL
FROM: Matt Loesch

SUBJECT: See Below DATE: September 3, 2024

Approved

Date:
9/18/24

COUNCIL DISTRICT: Citywide

SUBJECT: Status Report on the November 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

RECOMMENDATION

Accept the bi-annual 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.

SUMMARY AND OUTCOME

The approval of the recommendation provides the City Council with updated information on the status of projects and programs related to the voter-approved 2018 Measure T – The Disaster Preparedness, Public Safety, and Infrastructure Bond, including updates to funding projects within the Public Safety Program. The memorandum provides status updates on all Measure T projects as they progress through the feasibility, design, and construction phases.

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. Since the voters approved the bond measure, the City Council has COUNCIL AGENDA: 10/1/24
FILE: 24-197289
ITEM: 2.10

Attachment 3

HONORABLE MAYOR AND CITY COUNCIL
September 3, 2024
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

Page 2 ends

received annual updates and provided direction on the implementation of the Measure T program. Past updates are linked below for reference1234567891011.

Most recently, on March 26, 2024, Item 2.18
12, the City Council approved a bi-annual
report and supplemental memorandum titled Status Report on the November 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond. The report included the staff update on project work plans and implementation schedules, as well as outlined the projected funding needs for the public safety program.

ANALYSIS

Since the March 26, 2024 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, and it will be shared with the Measure T Community Oversight Committee at its November 2024 meeting. The following list provides current project statuses in each of the major program categories.

1) Measure T Community Oversight Committee – The committee met on May 9, 2024, to review the 2024-2025 Proposed Capital Budget and 2025-2029 Capital Improvement Program, 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.

The next meeting will be held in November 2024, to review the auditor’s report on the expenditures from fiscal year 2023-2024.

Currently, there are 12 committee seats filled and three vacant seats from District 7, the Citywide - Business, and the Citywide - Finance/Accounting.

1 http://files.constantcontact.com/7a210436601/dbd7436a-7b55-4264-b1e4-e25cc8a0b8a3.pdf 2 https://sanjose.legistar.com/LegislationDetail.aspx?ID=3847489&GUID=DCF04188-1A 48-4F02-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-C 99B-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 11 https://sanjose.legistar.com/View.ashx?M=F&ID=12354332&GUID=E97EAD34-02C1-4B15-8D4A-3FAEF3C0D996 12 https://www.sanjoseca.gov/home/showpublisheddocument/112066/638520560075330000

HONORABLE MAYOR AND CITY COUNCIL
September 3, 2024
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

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2) Public Safety Projects – Pursuant to direction from the City Council on March 26, 2024, the Measure T program allocates $211.6 million to complete public safety projects. Site selection, land acquisition, and scoping for majority of projects have been completed and many of the projects are either in design or construction. Now that many projects have moved into the construction phase, staff has a clear understanding of the spending and funding need. A summary of current activities in the Public Safety category is below. The updated schedules for all Public Safety projects are shown in Attachment B - Public Safety Project Estimated Schedules.

(a) New Fire Station 37 – The construction project was awarded on June 30, 2020 to Gonsalves & Stronck Construction Company, in the amount of $8,715,600 and began construction in September 2020. The project has been fully operational since May 2022 and received its Certificate of Occupancy in July 2023.

(b) Relocated Fire Station 8 – The construction 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 began construction in October 2023 with final completion anticipated in spring of 2025.

(c) New Fire Station 32 – The project was awarded to the lowest responsive bidder, Gonsalves & Stronck Construction Company, on June 18, 2024, in the amount of $12,867,777 which includes space for a dual company as well as the installing a rooftop solar photovoltaic system. The project required an additional $3 million from the Public Safety program reserve to cover the additional costs for the dual company area of the project. The project began construction in August 2024 with final completion anticipated to be spring of 2026.

(d) Relocated Fire Station 23 (Land Acquisition Only) – This project includes a budget of $4.1 million, dedicated solely to the purchase of a property for the future relocated fire station. A suitable site for Fire Station 23 has been identified and staff have engaged the landowner in negotiations. To support property acquisition, the project needs to complete an environmental review under the California Environmental Quality Act and gain approval from City Council. California Environmental Quality Act review will begin upon completion of the project schematic design package, which is anticipated to be completed by October 2024. The California Environmental Quality Act review process is estimated to take up to 12 months. Staff anticipates returning to City Council with recommendations for the potential acquisition of the property once the project’s California Environmental Quality Act analysis is complete, which is anticipated in the calendar year 2025.

HONORABLE MAYOR AND CITY COUNCIL
September 3, 2024
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

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The project will need an additional $15 million to continue with the design and construction. In order to proceed with the design of Fire Station 23, staff will need to prioritize the remaining public safety projects and identify program savings or other funding opportunities, such as grants or funding in the General Fund and Fire Construction and Conveyance Tax Fund. 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 fire station approved by City Council in the June 18, 2019 memorandum Measure T – Ne
w Fire Station Placement Prioritization (Item

8.1), and is the last fire station in need of land acquisition.

(e) New Fire Station 36 – The site has been selected and land has been acquired at the intersection of Capitol Expressway and Tuers Road for the construction of Fire Station 36. The project is currently fully funded. Staff anticipates starting the design process once an architect consultant is selected in fall of 2024.

(f) Fire Station 20 – Aircraft Rescue and Firefighting Facility – Fire Station 20, located at the southwest portion of the San José Mineta International Airport, replaced the older existing Aircraft Rescue and Firefighting Facility station. The project was completed at the end of March 2022, with the newly expanded fire station officially online and operational. Project acceptance occurred in September 2022.

(g) Police Training and Academy Facility – The City acquired 300 Enzo as the site for the relocated Police Training and Academy in March 2021. The project was awarded on December 5, 2023, to the lowest responsive bidder, Midstate Construction, in the amount of $28,748,000. The project construction start date was March 11, 2024 and final completion is anticipated for spring 2026. Originally, the project was expected to be completed late 2025, however the project schedule has been impacted due to unforeseen conditions within the existing building discovered during the course of construction.

Through project planning and design, the project funds were augmented from program reserves and other projects in the amount of $24.7 million. The project bids came in lower than expected. Therefore, roughly $9.3 million has been replenished to the program reserve for Public Safety.

(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 project received a temporary Certificate of Occupancy in February 2024 and was extended

HONORABLE MAYOR AND CITY COUNCIL
September 3, 2024
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

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through November 2024, with minor punch list items remaining to be completed prior to final project acceptance. The City Manager’s Office of Emergency Management staff has relocated to their new offices in Building 1.

Building system trouble shooting is underway for Building 2, prior to being fully operational to support emergency events. The Emergency Operations Center is anticipated to be fully operational by end of September 2024. The ribbon-cutting ceremony occurred on March 28, 2024.

(i) 9-1-1 Call Center Renovation – This project will provide improved working conditions and a more efficient space for dispatch personnel 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 previously used for the Emergency Operations Center. The 9-1-1 Call Center renovation project is anticipated to be awarded in January 2025 with construction starting in March 2025 and reaching substantial completion by early 2026 calendar year.

(j) Police Air Support Unit Hangar – The location of this project is 1114 Coleman Avenue, at the southwest corner of the airport property, on the corner of Coleman Avenue and Airport Boulevard, next to the recently completed Aircraft Rescue and Fire Fighting Facility (Fire Station 20) described above. The project was awarded on November 7, 2023, to the lowest responsive bidder, DL Falk Construction, Inc., in the amount of $12,660,000, and included the bid alternate for the construction of the second aircraft hangar bay for a future fixed-wing aircraft. The project began construction in January 2024 with final completion anticipated in spring 2025.

Later this year, Staff will bring forward a council memorandum requesting approval to increase the construction contingency for the work associated with the installation of a foam fire suppression system. This will enable the Police Department to conduct maintenance and repair work within the hangar as needed.

A third hangar space could be added to house the possible acquisition of a second fixed-wing aircraft. As a separate project, staff will examine the third hangar space expansion in the future should funding be identified and pending prioritization of resources with other Measure T public safety projects.

(k) Police Headquarters Infrastructure Upgrades – Staff completed preliminary scoping exercises, working closely with the Police Department to

HONORABLE MAYOR AND CITY COUNCIL
September 3, 2024
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

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identify potential projects to be completed at the Police Administration Building. The highest priority projects identified include improvements to the plumbing throughout the facility and 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.

The target system replacement for the existing gun range at the Police Administration Building has been completed. Staff is currently working on the preliminary design for the plumbing system and HVAC improvements at the existing gun range. The goal is to advance to the comprehensive design phase in November 2024. Both projects are expected to begin construction in March 2026 and achieve substantial completion by the end of April 2027.

(l) Program Reserve for Public Safety – Initially, $36.42 million of the Measure T Public Safety and Infrastructure Bond funds were set aside in the reserve for various projects, including: Police Administration Building Upgrades, 9-1-1 Call Center Upgrades, rehabilitation of various fire stations, as well as a contingency for Public Safety projects. Subsequently, funding has been allocated to various public safety projects once the scopes were defined or to offset higher costs of construction awards. Offsetting the use of the reserve was $9.3 million of savings from the Police Training Center construction bids coming in lower than anticipated, prior year's interest earnings of $4.5 million and project savings ($231,000). A total of $11.1 million was added to the reserve, bringing it to $18.1 million. The goal of the reserve will be allocated for the design and construction of Fire Station 23; however, these funds could potentially be used for Measure T priority projects pending bid results.

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. The Measure T program designated $300 million for the repair or rehabilitation of local and neighborhood streets in the worst condition. In 2019, 420 miles were originally expected to be repaved during Measure T’s lifespan. However, as pavement condition deteriorates over time, more streets fall into the rehabilitation category for pavement treatment.

To deliver the pavement program efficiently, staff divided stretches of roadways into zones and prioritized these zones based on overall conditions.

This has proven to have significant benefits by reducing mobilization costs and shortening the project delivery timeline.

The Department of Transportation has resurfaced 517 miles of roadway since 2020 utilizing Measure T funds. A map that shows the locations of these 517 completed miles can be found in Attachment C – City of San José 2020-

HONORABLE MAYOR AND CITY COUNCIL
September 3, 2024
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

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2024 Local Streets Measure T Streets. Department of Transportation continues to provide updated memoranda every spring to share tentative construction plans with the public.

In the 2024 construction season, the Department of Transportation plans to complete maintenance on 183 miles of San José local and neighborhood streets, of which 116 miles are programmed to be resurfaced and 1,160 associated curb ramps are to be constructed with the annual $37.5 million Measure T allocation. In the 2025 construction season, the Department of Transportation plans to maintain 212 miles of San José streets, including 178 miles of local and neighborhood streets. Out of the 178 miles of local and neighborhood streets, 90 miles will be funded by Measure T.

(b) Bridge Repair and Rehabilitation Projects – The Measure T program allocated $20 million for City-owned bridges that are designated as structurally deficient and could be vulnerable in an earthquake or other disaster. 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.

Caltrans has approved $2,994,130 in Bridge Investment Credits for the City.

The City can use the credits as a matching fund for any future federal-aid bridge projects. Staff anticipates additional approval of approximately $2 million in 2025. Staff completed the rehabilitation work for 45 bridges and plan to rehabilitate an additional nine bridges by the end of summer 2024 and apply for Bridge Investment Credits upon completion of the projects.

To optimize Measure T funds and maximize the opportunity for grant funding, staff engaged 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’s recommendations with respect to prioritization. Staff established a three-year Bridge Maintenance Program with a budget of $14.8 million. Maintenance work includes deck overlay, deck rehabilitation, deck replacement, joint replacement, and substructure preservation. The three-year plan is to help spend down the funding from the bridge program in compliance with bond issuance and expenditure requirements of Measure T funds.

The Highway Bridge Program funding is evolving with the recent passage of the federal Infrastructure Investment and Jobs Act. Staff will be ready to apply for grant funds as soon as funding becomes available, as the bridge investment credits do not expire. Staff will continue to work with counterparts

HONORABLE MAYOR AND CITY COUNCIL
September 3, 2024
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

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at Caltrans to maximize grant opportunities and advocate for the increased availability of program funds. The Department of Transportation will continue delivering bridge maintenance projects as scheduled and provide further information as it becomes available.

4) Light Emitting Diode (LED) Outdoor Lighting Projects

(a) City Facilities LED Lighting Projects – As staff evaluated the 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, provides details about the total number of fixtures, as well as the number of fixtures that have been converted to date for each category utilizing Measure T funding. The Public Works Department was able to find two funding sources to cover the remaining 1,045 outdoor facility lights.

Staff was able to secure $500,000 from the Community Development Block Grant program through the Housing Department to address the exterior and interior lighting at the following 10 fire stations; 3, 5, 7, 16, 18, 20, 26, 30, 34, and 35. An additional $2.4 million was shifted from the LED Streetlights Conversion project to complete the conversion of all City facilities. This work is estimated to be completed by June 2026. Staff will continue to coordinate with project managers to ensure all new future developments are scoped to include the new LED lighting and controllers in the base design.

Table 1
City Facility Lighting Conversion Status as of August 2024

Facilities Converted Remaining Total
Parks and Trails 3,488 38 3,526
Community Centers 1,229 54 1,283
Libraries 1,328 0 1,328
Fire Stations 422 269* 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 7,797 1,045 8,842
*Lighting conversion funded by the Community Development Block Grant. All other conversions will be funded by Measure T.

Lighting Controls for City Facilities – To date, there have been 4,836 nodes installed. Staff is working to install the remaining 4,006 nodes, for a total of 8,842 nodes citywide, of which Measure T has funded a large portion

HONORABLE MAYOR AND CITY COUNCIL
September 3, 2024
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

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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) LED Streetlight Conversion Projects – Most of the streetlights have been successfully converted either by City crews or through Pacific Gas and Electric Company’s (PG&E) “Turnkey Conversion” project. There are roughly 3,000 lights remaining to be converted, which are unique ornamental, or post- top lights, primarily in the downtown neighborhoods and business districts.

With 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.

The billing records are to be reviewed and confirmed by PG&E in 2024. It is likely to result in a decrease in the City’s streetlight inventory.

A total of $2.4 million of the funding from the LED Streetlight Conversion project was reallocated as part of the 2024-2025 Adopted Budget to fund the completion of the LED conversion of the City-owned facility lighting. The total funding remaining within the LED Streetlight Conversion project will be $5.3 million and utilized to convert the ornamental lights as the bulbs burn out. To date, just under 1,000 ornamental lights have been converted in various areas throughout the City. In addition, staff will continue to perform investigations to determine how many streetlight poles require ground wire within the system.

Once those locations are determined, the work will fall into the deferred maintenance infrastructure backlog and funding will need to be identified. Staff will also continue 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. This research will also include taking 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. Staff will explore alternative funding strategies and availability, such as potential grants, to fund the lighting controls once an appropriate product is identified.

5) Clean 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

HONORABLE MAYOR AND CITY COUNCIL
September 3, 2024
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

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one of the top priority projects in the Green Stormwater Infrastructure Plan. The project was awarded on June 13, 2023, to Andrew M. Jordan Inc., dba A & B Construction, in the amount of $10,999,618. The project started in September 2023 and is anticipated to be completed in winter 2024.

Initially, 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. In January 2024, City staff further evaluated the remaining amount of Measure T funds, constructability, construction costs, and long-term operation and maintenance costs of this project. It was estimated the project could cost upwards of $29 million and require another 1.5 years of design and permitting before starting construction in late 2025. With the extended schedule, design constraints, increase in cost, and the complexity of the project, staff determined that the City Land South of Phelan project was no longer feasible. Instead, staff is pursuing a smaller regional project that requires less permitting with a more straightforward design located within Kelley Park near the Happy Hollow parking lot, known as the Vintage Heritage Regional Stormwater Capture Project.

To evaluate the viability of the Vintage Heritage Regional Stormwater Capture Project, staff used the previously established evaluation criteria that consider cost effectiveness, potential partnership, technical feasibility, social/community/equity benefits, and water supply/flood protection. After evaluating the project, staff found, when comparing this project to the City Land South of Phelan, the construction costs and operation and maintenance costs will be significantly less while simultaneously meeting goals set in the Green Stormwater Infrastructure Plan. This project will collect runoff from approximately 80 acres of the surrounding neighborhood. The project offers a high degree of water quality benefit addressing pollutant reduction and trash reduction, while also expanding usable green space for the public. This smaller Regional Stormwater Capture Facility started design in May 2024, with anticipated construction completion in November 2025.

Staff developed a feasibility study that identified five new regional stormwater capture facilities to clean stormwater run-off in the City of San José. From these five sites, two have been prioritized to proceed forward to being design. These projects will collect a combined total runoff of up to approximately 300 acres within the San José region. Similar to the Vintage Heritage Regional Stormwater Capture Project, these projects will provide green stormwater infrastructure benefits to the community, ranging from water quality to flood reduction while reducing generated pollutants. These projects are anticipated to begin design in fall 2024 with construction completed in summer 2027. Staff anticipates utilizing approximately $12 million of Measure T funds for the River Oaks Regional Stormwater Capture Project, approximately $3.5 million for the Vintage Heritage

HONORABLE MAYOR AND CITY COUNCIL
September 3, 2024
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

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Regional Stormwater Capture Project location, and approximately $9 million for one or two smaller regional stormwater capture facilities.

6) Storm Drain Improvement Projects for the Charcot Area – The Storm Drain Improvement Projects for the Charcot area will provide flood protection in the area east of Zanker Road between East Trimble Road and East Brokaw Road.

Originally envisioned as a new storm pump station at Charcot Avenue and Hartog Drive, 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 levels of flood protection while saving the City significant costs for building, operating, and maintaining a new pump station. The project will be constructed under two packages, due to its size and complexity. Package one will install approximately 4,200 linear feet of a combination of 54-inch fiberglass-reinforced concrete pipe and 72-inch to 96-inch diameter storm pipe along Charcot Avenue and Bering Drive. Package two will be designed to install approximately 3,100 feet of 60-inch to 96-inch diameter storm pipe along East Brokaw Road and Rodgers Avenue.

Staff is in the process of executing the contract for package one, which will use all the available Measure T budget for this project at approximately $24 million.

Package two design is scheduled to be completed by the end of calendar year 2024; however, there will not be sufficient funding available for construction.

Package one alleviates approximately 60% of flooding in the area and package two will increase that by 20% of the total amount by redirecting flow to Rincon II Pump Station. There is currently a temporary pump station at Charcot Avenue and Hartog Drive that will provide relief to the storm system in the package two project boundaries that will be in operation until additional funding is identified to complete the construction of package two. Staff has discussed with Valley Water the need for the temporary pump station and will continue to seek a potential partnership to complete the construction of package two. Staff will also look into pursuing grant opportunities to obtain funding.

Package one was awarded on June 18, 2024 with the construction bid amount of $18.2 million. This project is scheduled to begin construction in November 2024, with an anticipated completion end of 2025. Package two is currently at 60% progress design with anticipated design completion by the end of calendar year 2024; the construction will be on hold until funding is identified.

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.

8) Community Center/Emergency Shelters – The City Emergency Operations Plan includes the coordination of mass care and sheltering facilities. These

HONORABLE MAYOR AND CITY COUNCIL
September 3, 2024
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

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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 and is anticipated to be completed in November 2024.

The Priority 2 project, which includes Camden Community Center, was awarded on June 18, 2024, to the lowest responsive bidder, City Building Inc., in the amount of $4,599,178. The project is anticipated to start construction October 2024 and is anticipated to be complete in July 2025.

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 began construction in September 2023 and is anticipated to be completed in January 2025.

After further review of the improvements needed at Cypress Community Center, the Priority 4 project, staff put the design on hold until after the Camden Community Center Project was awarded, due to the anticipated costs exceeding the current budget. The Camden Community Center Project was awarded on June 18, 2024. The Parks, Recreation, and Neighborhood Services Department decided to focus on Camden Community Center rather than Cypress Community Center. The focus shift on Camden Community Center is due to it being the largest community center, will be the department’s dedicated Department Operations Center, and is historically one of the most used shelter sites during emergency situations. Cypress Community Center may still be considered as part of a public-private partnership housing redevelopment project site that will build a new facility; however, the Parks, Recreation, and Neighborhood Services Department is currently not pursuing that option and will reevaluate in the future. Any emergency shelter work would be added to the scope of the project, if and when the public-private partnership housing redevelopment project is completed.

9) Public Art – The public art budget for each capital program is shown in Table 2 below and included in the 2024-2025 Adopted Capital Budget and the 2025-2029 Adopted Capital Improvement Program. The allocation for public art may be refined as the scopes for the projects are completed. The first public art project

HONORABLE MAYOR AND CITY COUNCIL
September 3, 2024
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

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completed was an exterior ceramic mural and interior window treatment for Fire Station 37 by artist Sam Tubiolo. The artwork on the exterior of the Fire Department Training Center/Emergency Operations Center has also been completed by Bay Area artist Johanna Poethig, as well as the second phase of public art projects at the Fire Department Training Center/Emergency Operations Center that addressed the building interior, which commissioned 31 local artists.

The installation of public art by Bay Area artist Gordon Huether for the Police Department Memorial was completed in November of 2023. Additional public art projects are in the planning phase for Fire Stations 8, 32, and 36 as well as a perimeter fencing project at the River Oaks Regional Stormwater Capture Project and mural projects at parks and community center facilities, such as the memorial mural at the Mayfair Community Center by artist Jessica Sabogal.

Table 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

Staff will provide City Council with the next bi-annual program update in spring 2025.

COST SUMMARY/IMPLICATIONS

As the Measure T program evolves, project budgets are recommended for modification, as appropriate, as they proceed through site selection, design, and construction.

Attachment D - 2025-2029 Adopted Capital Improvement Program – Measure T Fund demonstrates Measure T funding of $131.0 million in the 2024-2025 Adopted Capital Budget and $284.5 million for the five-year 2025-2029 Adopted Capital Improvement Program. Vis-à-vis Measure T debt, $440.4 million of the three-tranche, $650 million in Measure T bonds have been issued thus far ($239.9 million in 2019 and $200.5 million in 2021). It is anticipated the third and possibly final tranche of the Measure T bonds will be issued in summer 2025, but it will be dependent on estimated project activities.

With regard to Internal Revenue Service rules that tax-exempt bonds expend 85% of the respective tranche within three years of issuance, staff is making a good faith effort to progress with various projects and have been diligently documenting the project

HONORABLE MAYOR AND CITY COUNCIL
September 3, 2024
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

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delays that have occurred since the beginning of the program. Staff is also working to expedite spending by reviewing projects that can move forward faster. Staff will evaluate actual spending and anticipated project expenditures to determine the timing of the third and final tranche of Measure T bonds.

Attachment E – Measure T Expenditures shows the actual year-to-date Measure T expenditures through June 2024. As previously discussed, the Program Reserve for Public Safety may not be sufficient to complete the remaining public safety projects.

Staff will need to prioritize the remaining public safety projects and identify program savings or identify other funding opportunities such as grants.

As noted in the 2025-2029 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, and the 9-1-1 Call Center Renovation. This would also necessitate adding staff in the Fire, Police, and Public Works 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 next five years range from approximately $7.3 million in 2025-2026 to $26.0 million in 2028-2029 when the majority of the Measure T projects will be completed.

The preliminary annual operating and maintenance costs for Fire Station 32 (approximately $12.0 million for dual company), Fire Station 36 ($7.0 million for single company), the Police Training Center, and corresponding activation of the South San José Substation ($7.0 million) will be brought forward for City Council certification prior to awarding a contract for construction or recommended for certification as part of the Proposed Capital Improvement Program. In March 2008, the City Council approved Budget Principle #8 that stated 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.

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, 9-1-1 Call Center Renovation, and Emergency Operations Center is estimated to cost approximately $6.0 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.

HONORABLE MAYOR AND CITY COUNCIL
September 3, 2024
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

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COORDINATION

This memorandum, work plan, and implementation schedules have been coordinated with the City Attorney’s Office, the City Manager’s Budget Office, Office of Economic Development and Cultural Affairs, the City Manager’s Office of Emergency Management, and the departments of Finance, Fire, Parks, Recreation, and Neighborhood Services, Police, Transportation.

PUBLIC OUTREACH

This memorandum will be posted on the City's Council Agenda website for the September 24, 2024 City Council meeting.

COMMISSION RECOMMENDATION AND INPUT

The Measure T Community Oversight Committee will hold its next meeting in November 2024 to review and discuss the 2023-2024 external audit report fundings.

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
Director of Public Works

HONORABLE MAYOR AND CITY COUNCIL
September 3, 2024
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

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For questions, please contact Sal Kumar, Deputy Director of Public Works Department, at [email protected].

ATTACHMENTS:

Attachment A – Project Implementation Schedules
Attachment B – Public Safety Project Estimated Schedules Attachment C – City of San José 2020-2023 Local Streets Measure T Streets Attachment D – 2025-2029 Adopted Capital Improvement Program – Measure T Fund Attachment E – 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

Priority 3 (Berryessa, Almaden, Evergreen)
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 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
Vintage Heritage Regional Stormwater Capture Project
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
LED Lighting - City Facilities
LED Lighting - Streetlights
Upgrading community centers/emergency shelters and
parks facilities to support public safety.

Charcot Area Storm Drain Improvement Phase II
Priority 1 (Roosevelt, Mayfair, Bascom, Seven Trees)
Priority 2 (Camden)
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

COMPLETED

COMPLETED
2029

NOT APPLICABLE

COMPLETED
2026 2027 20282024 2025

1 Public Safety Project Estimated Schedules Attachment B Projects First Estimate Adv Bid Opening Award Const Beneficial Use Comments Fire Station 8 - 4/26/23 6/1/23 8/15/23 10/5/23 Mar-25 Awarded to DL Falk. Currently in Construction.

Police Air Support Unit Hangar - 7/12/23 9/7/23 11/7/23 1/16/24 Mar-25 Awarded to DL Falk. Currently in Construction.

Police Training and Academy Facility
- 8/30/23 10/19/23 12/5/23 2/27/24 Mar-26
Awarded to Midstate
Construction. Currently in
Construction
Fire Station 32 Re-Bid 4
- 3/20/24 4/25/24 6/18/24 Aug-24 Mar-26
Awarded to Gonsalves & Stronck
Construction Company. Currently
in Construction
9-1-1 Call Center Renovation - 10/23/24 12/4/24 1/21/25 3/3/25 Feb-26 Fire Station 36 Mar-25 Jan-26 Feb-26 Mar-26 July-26 Apr-28 RFP to be issued Fall 2024.

Dates in grey shaded area are actual dates that occur in the past Dates italicized are the estimated dates
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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
2020-2024 LOCAL STREETS

MEASURE T STREETS
:

Legend
2024 Local Streets Measure T Streets
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 C
Attachment D
Program 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 5-Year Total

SOURCE OF FUNDS
Beginning Balance* $74,927,084 ($56,097,000) $61,977,000 $6,104,000 $3,901,000 $74,927,084 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 $74,927,084 $153,473,000 $61,977,000 $6,104,000 $3,901,000 $284,497,084

USE OF FUNDS
Traffic
Bridges 3,300,000 2,600,000 1,900,000 1,900,000 3,901,000 13,601,000 Pavement Maintenance 39,898,200 37,500,000 37,500,000 114,898,200 LED Streetlight Conversion 1,500,000 1,500,000 2,297,000 5,297,000 Admin – Traffic 22,000 22,000
Admin Reserve – Traffic 42,000 42,000
Total Traffic $44,762,200 $41,600,000 $41,697,000 $1,900,000 $3,901,000 $133,860,200 Public Safety
Emergency Operations Center 1,200,000 1,200,000
Fire Station 37 8,000 8,000
Fire Station 8 Relocation 2,928,000 2,928,000
Fire Station 23 Relocation 330,000 3,539,000 3,869,000 New Fire Station 32 7,430,000 2,483,000 9,913,000 New Fire Station 36 1,200,000 8,040,000 8,000,000 303,000 17,543,000 Police Training Center Relocation 23,363,000 10,557,000 33,920,000 Police Air Support Unit Hangar 2,490,000 100,000 2,590,000 911 Call Center Upgrades 4,927,000 108,000 5,035,000 Police Administration Building Upgrades 473,000 5,084,000 5,557,000 Public Safety Reserves 18,092,884 0 18,092,884
Public Art - Pub Safety 676,000 0 676,000
Admin WC - Public Safety 372,000 0 372,000 Admin Reserve - Public Safety 710,000 0 710,000 Total Public Safety $64,199,884 $29,911,000 $8,000,000 $303,000 $102,413,884 Storm SewerStorm Drain Improvements at Charcot
Ave 11,723,000 12,748,000 24,471,000
Clean Water Projects 2,600,000 4,450,000 6,171,000 13,221,000 Public Art – Storm Sewer 40,000 5,000 5,000 50,000 Admin – Storm Sewer 132,000 132,000
Admin Reserve – Storm Sewer 250,000 250,000 Total Storm Sewer $14,745,000 $17,203,000 $6,176,000 $38,124,000

CITY OF SAN JOSE
2025-2029 ADOPTED CAPITAL IMPROVEMENT PROGRAM

STATEMENT OF SOURCE AND USE OF FUNDS
Measure T Public Safety and Infrastructure Bond Fund (498) 1 Attachment D
Program 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 5-Year Total

CITY OF SAN JOSE
2025-2029 ADOPTED CAPITAL IMPROVEMENT PROGRAM

STATEMENT OF SOURCE AND USE OF FUNDS
Measure T Public Safety and Infrastructure Bond Fund (498) Municipal Improvements
City Facilities LED Lighting 1,200,000 1,200,000 2,400,000 Total Municipal Improvements $1,200,000 $1,200,000 $2,400,000 Parks & Community Facilities
Community Centers/Emergency
Shelters $6,000,000 $1,582,000 $7,582,000
Public Art – Parks 15,000 15,000
Admin – Parks 29,000 29,000
Admin Reserve Parks 73,000 73,000
Total Parks & Community Facilities $6,117,000 $1,582,000 $7,699,000 Total Expenditures $131,024,084 $91,496,000 $55,873,000 $2,203,000 $3,901,000 $284,497,084 Ending Fund Balance** ($56,097,000) $61,977,000 $6,104,000 $3,901,000 $ - $ - Total Uses $74,927,084 $153,473,000 $61,977,000 $6,104,000 $3,901,000 $284,497,084 Originally, the final bond issuance was planned for 2023-2024 but will be deferred to summer 2025. This results in a 2023-2024 Ending Fund Balance over-expended on a budgetary basis by $56.1 million; however, there is a sufficient cash balance in this fund to cover expenditures in 2024-2025 and once the bonds are issued in 2025-2026, the Ending Fund Balance becomes positive. *The 2025-2026 through 2028-2029 Beginning Fund Balances are excluded from the FIVE-YEAR TOTAL SOURCE OF FUNDS to avoid multiple counting of the same funds.
**The 2024-2025 through 2027-2028 Ending Fund Balances are excluded from the FIVE-YEAR TOTAL USE OF FUNDS to avoid multiple counting of the same funds.
2 Attachment E - YTD Measure T Expenditures

Fiscal Year 2019-2020 2020-2021 2021-2022 2022-2023

2023-2024
Expenditures* $52,143,312 $75,472,897 $75,736,192 $60,341,925

$93,838,949
*excludes encumbrances

-
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
400,000,000
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
Measure T Expenditures
(through June 2024)

San Jose City CouncilFebruary 25, 2025

San Jose City Council
February 25, 2025