Agreement with Silicon Valley/Santa Clara DMO, Inc./Exhibit A-Key Performance Indicators Page 1 of 20 Rev. 09/27/2021
EXHIBIT A
PERFORMANCE INDICATORS
A. KEY PERFORMANCE INDICATORS (KPIs)
Corporation shall be responsible for performing destination sales and marketing activities that increase visitation, group activity at the Convention Center, room night consumption, and the economic impact associated with increased tourism activity in Santa Clara. This Exhibit A defines the KPIs to measure the Corporation’s performance and the weighted percentage assigned to each KPI (“Weighted Percentage”).
1. Event Mix. Optimization indicates how effectively the physical space at the Convention Center is utilized. A Center optimization exercise shall be completed by Corporation to determine the target mix of convention/meeting types (P1, P2, P3, etc.) intended to maximize financial and economic results for the City. Corporation shall be evaluated on its rate of success in meeting annual event mix targets for P1 and P2 events. The assigned Weighted Percentage for this category is 10%.
2. Number of Definite Events. A “definite” event is a future event confirmed with a signed executed contract between an authorized agent of the event organizer and the Convention Center and at least one TID lodging business for event room blocks. Corporation shall be evaluated on its rate of success in meeting the target number of definite P1 and P2 events booked in the year for future years. The assigned Weighted Percentage for this category is 15%.
3. Convention Center Gross Revenue. It is expected that P1 and P2 events generate a certain level of gross revenue at the Convention Center. Corporation shall be evaluated on its rate of success in meeting Convention Center revenue projections for P1 and P2 consumed events (events took place in the current year). The assigned Weighted Percentage for this category is 15%.
4. Number of Room Nights Booked. The Corporation shall be evaluated on its rate of success in meeting the target number of room nights booked for future year P1 and P2 events at Santa Clara lodging businesses. The assigned Weighted Percentage for this category is 10%.
5. Number of Room Nights Consumed. The Corporation shall be evaluated on its rate of success in meeting the target number of total number of rooms occupied at Santa Clara lodging businesses for P1 and P2 events. The assigned Weighted Percentage for this category is 5%.
6. Number of Weeks Impacted
Defined as the number of weeks throughout the year where a P1 event, citywide or a combination of events positively impacts the host destination’s local economy. Corporation shall be evaluated on its rate of success in meeting target number of weeks impacted in the year. The assigned Weighted Percentage for this category is 15%.
7. Customer Service Survey Results
Customer service satisfaction surveys shall be administered by a third-party administrator to Convention Center meeting planners, clients, and attendees. The survey instrument shall Agreement with Silicon Valley/Santa Clara DMO, Inc./Exhibit A-Key Performance Indicators Page 2 of 20 Rev. 09/27/2021
measure the overall customer satisfaction with the Corporation’s performance in providing services and survey results shall be provided directly to City. City shall establish the target overall satisfaction rating with Corporation and the Corporation shall be evaluated on its rate of success on meeting the target rating. The assigned Weighed Percentage for this category is 10%.
8. Prospects. Prospects are potential customers who has been contacted and have been qualified by the sales team as having desirable criteria for an event in Santa Clara such as:
size of event fits in the venue, there is a history of hotel needs that can be provided by Santa Clara hotels, and they have expressed interest in holding an event in Santa Clara.
Corporation shall be evaluated on its rate of success on meeting the target number for new prospects. Corporation shall also be evaluated on the prospect conversion rate which will be based upon industry conversion averages. The total assigned Weighted Percentage for this category 15%.
9. Economic Impact. Economic impact is the amount of additional direct spending that occurs in the community by out of town and local attendees of events at the Convention Center.
Corporation shall be evaluated on its rate of success on meeting the target economic impact goal for P1 and P2 events. The assigned Weighted Percentage for this category is 5%.
B. KPI SCORECARD
Corporation shall achieve a minimum aggregate Scorecard of 85 points (85%) annually. The points for attainment of targets within each category are calculated on a proportionate basis.
The City shall meet monthly with Corporation to monitor and assess the Corporation’s progress toward achievement of the performance goals, including review of sales and marketing activity.
Example Calculation of Performance Measures
Key Performance Indicator Target Actual % Success
Rate
Weight Score
Event Mix - - 10% 6.29
Number of P1 events 3 2 40.00% 5% 2.00
Number of P2 events 7 6 85.71% 5% 4.29
Number of Definite Events 5 4 80% 15% 12.00
Convention Center Revenue $4 million $3.75 million 93.75% 15% 14.06 Number of Room Nights Booked 10,000 8,500 85% 10% 8.50 Number of Room Nights Consumed 12,000 9,250 77.08% 5% 3.84 Number of Weeks Impacted 4 2 50% 15% 7.50
Customer Service Survey Results 85% 88% 103.5% 10% 10.35 Prospects - - 15% 17.06
Prospects 100 130 130% 15% 19.50
Economic Impact $2 million $1.8 million 82.5% 5% 4.13 Scorecard Total 86.17
Agreement with Silicon Valley/Santa Clara DMO, Inc./Exhibit B-Insurance Requirements Page 3 of 20 Rev. 09/27/2021
EXHIBIT B
INSURANCE REQUIREMENTS
Without limiting the Corporation’s indemnification of the City, and prior to commencing any of the Services required under this Agreement, the Corporation shall provide and maintain in full force and effect during the period of performance of the Agreement and for twenty-four (24) months following acceptance by the City, at its sole cost and expense, the following insurance policies from insurance companies authorized to do business in the State of California. These policies shall be primary insurance as to the City of Santa Clara so that any other coverage held by the City shall not contribute to any loss under Corporation’s insurance. The minimum coverages, provisions and endorsements are as follows:
A. COMMERCIAL GENERAL LIABILITY INSURANCE
1. Commercial General Liability Insurance policy which provides coverage at least as broad as Insurance Services Office form CG 00 01. Policy limits are subject to review, but shall in no event be less than, the following:
$1,000,000 Each Occurrence
$2,000,000 General Aggregate
$2,000,000 Products/Completed Operations Aggregate
$1,000,000 Personal Injury
2. Exact structure and layering of the coverage shall be left to the discretion of Corporation; however, any excess or umbrella policies used to meet the required limits shall be at least as broad as the underlying coverage and shall otherwise follow form.
3. The following provisions shall apply to the Commercial Liability policy as well as any umbrella policy maintained by the Corporation to comply with the insurance requirements of this Agreement:
a. Coverage shall be on a “pay on behalf” basis with defense costs payable in addition to policy limits
1;
b. There shall be no cross-liability exclusion which precludes coverage for claims or suits by one insured against another; and
c. Coverage shall apply separately to each insured against whom a claim is made, or a suit is brought, except with respect to the limits of liability.
B. BUSINESS AUTOMOBILE LIABILITY INSURANCE
Business automobile liability insurance policy which provides coverage at least as broad as ISO form CA 00 01 with policy limits a minimum limit of not less than one million dollars ($1,000,000) each accident using, or providing coverage at least as broad as, Insurance Services Office form CA 00 01. Liability coverage shall apply to all owned (if any), non-owned and hired autos.
1 This requirement may make it difficult for Corporation to obtain such insurance. The DMO should confirm that such a policy type is available and obtain a premium cost estimate for such a policy.
Agreement with Silicon Valley/Santa Clara DMO, Inc./Exhibit B-Insurance Requirements Page 4 of 20 Rev. 09/27/2021
C. WORKERS’ COMPENSATION
1. Workers’ Compensation Insurance Policy as required by statute and employer’s liability with limits of at least one million dollars ($1,000,000) policy limit Bodily Injury by disease, one million dollars ($1,000,000) each accident/Bodily Injury and one million dollars ($1,000,000) each employee Bodily Injury by disease.
2. The indemnification and hold harmless obligations of Corporation included in this Agreement shall not be limited in any way by any limitation on the amount or type of damage, compensation, or benefit payable by or for Corporation or any subcontractor under any Workers’ Compensation Act(s), Disability Benefits Act(s), or other employee benefits act(s).
3. This policy must include a Waiver of Subrogation in favor of the City of Santa Clara, its City Council, commissions, officers, employees, volunteers, and agents.
D. PROFESSIONAL LIABILITY
Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against negligent acts, errors, or omissions of the Corporation. Covered services as designated in the policy must specifically include work performed under this agreement. Coverage shall be in an amount of not less than one million dollars ($1,000,000) per claim or two million dollars ($2,000,000) aggregate. Any coverage containing a deductible or self-retention must first be approved in writing by the City Attorney’s Office.
E. COMPLIANCE WITH REQUIREMENTS
All of the following clauses and/or endorsements, or similar provisions, must be part of each commercial general liability policy, and each umbrella or excess policy.
1. Additional Insureds. City of Santa Clara, its City Council, commissions, officers, employees, volunteers, and agents are hereby added as additional insureds in respect to liability arising out of Corporation’s work for City, using Insurance Services Office (ISO) Endorsement CG 20 10 11 85, or the combination of CG 20 10 03 97 and CG 20 37 10 01, or its equivalent.
2. Primary and non-contributing. Each insurance policy provided by Corporation shall contain language or be endorsed to contain wording making it primary insurance as respects to, and not requiring contribution from, any other insurance which the indemnities may possess, including any self-insurance or self-insured retention they may have. Any other insurance indemnities may possess shall be considered excess insurance only and shall not be called upon to contribute with Corporation’s insurance.
3. Cancellation.
a. Each insurance policy shall contain language or be endorsed to reflect that no cancellation or modification of the coverage provided due to non- payment of premiums shall be effective until written notice has been given
Agreement with Silicon Valley/Santa Clara DMO, Inc./Exhibit B-Insurance Requirements Page 5 of 20 Rev. 09/27/2021
to City at least ten (10) days prior to the effective date of such modification or cancellation. In the event of non-renewal, written notice shall be given at least ten (10) days prior to the effective date of non- renewal.
b. Each insurance policy shall contain language or be endorsed to reflect that no cancellation or modification of the coverage provided for any cause save and except non-payment of premiums shall be effective until written notice has been given to City at least thirty (30) days prior to the effective date of such modification or cancellation. In the event of non- renewal, written notice shall be given at least thirty (30) days prior to the effective date of non-renewal.
4. Other Endorsements. Other endorsements may be required for policies other than the commercial general liability policy if specified in the description of required insurance set forth in Sections A through E of this Exhibit C, above.
F. ADDITIONAL INSURANCE RELATED PROVISIONS
Corporation and City agree as follows:
1. Corporation agrees to ensure that subcontractors, and any other party involved with the Services is not an employee of Corporation, and who is brought onto or involved in the performance of the Services by Corporation, provide the same minimum insurance coverage required of Corporation, except as with respect to limits. Corporation agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this Agreement. Corporation agrees that upon request by City, all agreements with, and insurance compliance documents provided by, such subcontractors and others engaged in the project will be submitted to City for review.
2. Corporation agrees to be responsible for ensuring that no contract used by any party involved in any way with the providing Services reserves the right to charge City or Corporation for the cost of additional insurance coverage required by this Agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto.
3. The City reserves the right to withhold payments from the Corporation in the event of material noncompliance with the insurance requirements set forth in this Agreement.
G. EVIDENCE OF COVERAGE
Prior to commencement of any Services under this Agreement, Corporation, and each and every subcontractor (of every tier) shall, at its sole cost and expense, provide and maintain not less than the minimum insurance coverage with the endorsements and deductibles indicated in this Agreement. Such insurance coverage shall be maintained with insurers, and under forms of policies, satisfactory to City and as described in this
Agreement with Silicon Valley/Santa Clara DMO, Inc./Exhibit B-Insurance Requirements Page 6 of 20 Rev. 09/27/2021
Agreement. Corporation shall file with the City all certificates and endorsements for the required insurance policies for City’s approval as to adequacy of the insurance protection.
H. EVIDENCE OF COMPLIANCE
Corporation or its insurance broker shall provide the required proof of insurance compliance, consisting of Insurance Services Office (ISO) endorsement forms or their equivalent and the ACORD form 25-S certificate of insurance (or its equivalent), evidencing all required coverage shall be delivered to City, or its representative as set forth below, at or prior to execution of this Agreement. Upon City’s request, Corporation shall submit to City copies of the actual insurance policies or renewals or replacements.
Unless otherwise required by the terms of this Agreement, all certificates, endorsements, coverage verifications and other items required to be delivered to City pursuant to this Agreement shall be mailed to:
EBIX Inc.
City of Santa Clara City Manager’s Office
P.O. Box 100085 – S2
Duluth, GA 30096
Telephone number: 951-766-2280
Fax number: 770-325-0409
Email address: [email protected]
I. QUALIFYING INSURERS
All of the insurance companies providing insurance for Corporation shall have, and provide written proof of, an A. M. Best rating of at least A minus 6 (A- VI) or shall be an insurance company of equal financial stability that is approved by the City or its insurance compliance representatives.
2021-2026
SANTA CLARA TOURISM IMPROVEMENT DISTRICT
MANAGEMENT DISTRICT PLAN
Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq. January 6, 2021
CONTENTS
I. OVERVIEW ........................................................................................................................................ 2 II. BACKGROUND ................................................................................................................................ 4 III. BOUNDARY ....................................................................................................................................... 5 IV. BUDGET AND SERVICES ............................................................................................................. 6 A. Annual Service Plan ............................................................................................................ 6 B. Annual Budget .................................................................................................................... 8 C. California Constitutional Compliance .............................................................................. 10 D. Assessment ........................................................................................................................ 11 E. Penalties and Interest ........................................................................................................ 12 F. Time and Manner for Collecting Assessments ................................................................. 13
V. GOVERNANCE ............................................................................................................................... 14 A. Owners’ Association ......................................................................................................... 14 B. Brown Act and California Public Records Act Compliance ............................................ 14 C. Annual Report ................................................................................................................... 14
APPENDIX 1 – LAW .................................................................................................................................... 15
APPENDIX 2 – ASSESSED BUSINESSES ............................................................................................. 26
Prepared by
Civitas
(800)999-7781
www.civitasadvisors.com
••• • •
CIVITAS
PAATNEAS~IPS • PAOGAESS • PAOSPEAITV
SCTID Management Plan District Page 2 of 26
January 6, 2021
I. OVERVIEW
The Santa Clara Tourism Improvement District (SCTID) is an assessment district proposed to provide specific benefits to payors, by funding convention sales, incentives, and services and marketing and communication programs for assessed businesses. This approach has been used successfully in other destination areas throughout the country to provide the benefit of additional room night sales directly to payors.
Location: The proposed SCTID includes all lodging businesses with ten (10) rooms or more located within the boundaries of a portion of the City of Santa Clara, as shown on the map in Section III.
Services: The SCTID is designed to provide specific benefits directly to payors by increasing room night sales. Convention sales, incentives, and services and marketing and communication programs will increase overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing room night sales.
Budget: The total SCTID annual budget for the initial year of its five (5) year operation is anticipated to be approximately $610,936.
Cost: The a nnual assessment rate is one and one-half of one percent (1.5%) of gross short- term room rental revenue. After the initial year of the SCTID’s five (5) year term the assessment rate may be increased in any year by the Owners’ Association’s Board to a maximum of two percent (2%) of gross short-term room rental revenue as described in Section V. Based on the benefit received, assessments will not be collected on stays by any officer or employee of a foreign government who is exempt by reason of express provision of Federal law or international treaty. Additionally, assessments will not be collected on stays by any Federal or State of California officer or employee on official business who shall provide one of the following; a warrant or check drawn on the Treasury of the United States; a copy of the official travel orders indicating the issuing governmental agency and the employee’s full name; or, a copy of a letter on the official letterhead of an exempt governmental agency requesting exemption and listing the employee’s name and stating that the stay is for official government business. The dates of occupancy must also be included. These requirements must be demonstrated by the guest at the time of registration. Failure to satisfy these requirements will result in no assessment exemption. Copies of the documentation for each exemption claimed must be submitted to the Director of Finance with each remittance of assessments.
Collection: Each lodging business located in the boundaries of the SCTID shall be responsible for remitting the assessments to the City in accordance with this Management District Plan. The City will be responsible for collecting the assessment on a quarterly basis or at the close of any shorter reporting period as established by the Director of Finance (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the SCTID. The City shall take all reasonable efforts to collect the assessments from each lodging business.
SCTID Management Plan District Page 3 of 26
January 6, 2021
Duration: The proposed SCTID will have a five (5) year life, beginning July 1, 2021 through June 30, 2026. Once per year, beginning on the anniversary of SCTID formation, there is a thirty (30) day period in which owners paying fifty percent (50%) or more of the assessment may protest and initiate a City Council hearing on SCTID termination.
Management: Silicon Valley/Santa Clara DMO, Inc. (DMO) will serve as the SCTID’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs in accordance with this Plan and must provide annual reports to the City Council.
SCTID Management Plan District Page 4 of 26
January 6, 2021
II. BACKGROUND
TIDs are an evolution of the traditional Business Improvement District. The first TID was formed in West Hollywood, California in 1989. Since then, over 100 California destinations have followed suit. In recent years, other states have begun adopting the California model – Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TID laws. Several other states are in the process of adopting their own legislation. The cities of Wichita, Kansas and Newark, New Jersey used an existing business improvement district law to form a TID. And, some cities, like Portland, Oregon and Memphis, Tennessee have utilized their home rule powers to create TIDs without a state law.
California’s TIDs collectively
raise over $275 million
annually for local destination
marketing. With competitors
raising their budgets, and
increasing rivalry for visitor
dollars, it is important that
Santa Clara lodging businesses
invest in stable, lodging-
specific marketing programs.
TIDs utilize the efficiencies of
private sector operation in the
market-based promotion of tourism districts. TIDs allow lodging business owners to organize their efforts to increase room night sales. Lodging business owners within the TID pay an assessment and those funds are used to provide services that increase room night sales.
In California, TIDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key difference between TIDs and other benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district.
There are many benefits to TIDs:
• Funds must be spent on services and improvements that provide a specific benefit only to those who pay;
• Funds cannot be diverted to general government programs; • They are customized to fit the needs of payors in each destination; • They allow for a wide range of services;
• They are designed, created and governed by those who will pay the assessment; and • They provide a stable, long-term funding source for tourism promotion. 1 2 4 6 9 12 19 25 29 32 38 46
61 64 70 75
88 95 99 101104109
0 20
40 60
80 100
120
1989
1995
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Number of Districts Operating in California
SCTID Management Plan District Page 5 of 26
January 6, 2021
III. BOUNDARY
The SCTID will include all lodging businesses with ten (10) rooms or more, existing and in the future, available for public occupancy within the boundaries of a portion of the city of Santa Clara.
Lodging business means: any structure, or any portion of any structure, that is occupied or intended or designed for occupancy by transients for dwelling, lodging, or sleeping purposes, and includes, but is not limited to, any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home, or house trailer at a fixed location, or other similar structure or portion thereof.
The boundary, as shown in the map below, currently includes eleven (11) lodging businesses. A complete listing of lodging businesses within the proposed SCTID can be found in Appendix 2.
The Plaza
Suites
Ae Hotel
~ Hotels
Clara
Marr iott
Santa ela ra
Ava t a r Hote l
Marr iott
~ Convention Center
c.:J City of Santa Clara
• TID Boundaries
Santa Clara TID
Th e Elemen t
Biltmore
_+-+ ___ _
SCTID Management Plan District Page 6 of 26
January 6, 2021
IV. BUDGET AND SERVICES
A. Annual Service Plan
Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the City of conferring the benefits or granting the privileges. The privileges and services provided with the SCTID funds are convention sales, incentives, and services and marketing and communication programs available only to assessed businesses within the SCTID.
A service plan budget has been developed to deliver services that benefit the assessed businesses within the SCTID. A detailed annual budget will be developed and approved by the DMO. The table below illustrates the initial annual budget allocations. The total initial budget is $610,936.
Although actual revenues will fluctuate due to market conditions, the proportional allocations of the budget shall remain the same. However, the City and the DMO Board shall have the authority to adjust budget allocations between the categories by no more than twenty percent (20%) of the total budget per year. A description of the proposed improvements and activities for the initial year of operation is below. The same activities are proposed for subsequent years. In the event of a legal challenge against the SCTID, any and all assessment funds may be used for the costs of defending the SCTID. In the first year of operation, the costs of creating the SCTID may be repaid by deducting repayment funds proportionally from budget categories. All assets/funds collected by the District established under the 1989 Law will be transferred to the new 1994 District and additional funds may be allocated to each program as deemed necessary by the DMO Board and City Council during the budget development and approval process.
Each budget category includes all costs related to providing that service, in accordance with Generally Accepted Accounting Procedures (GAAP). For example, the marketing and communications budget includes the cost of staff time dedicated to overseeing and implementing the marketing and communications program. Staff time dedicated purely to administrative tasks is allocated to the administration portion of the budget. The costs of an individual staff member may be allocated to multiple budget categories, as appropriate in accordance with GAAP. The staffing Convention Sales,
Incentives &
Services
40%, $244,374
Marketing &
Communication
20%, $122,187
Administration
35%, $213,828
Contigency
Reserve
3%, $18,328
City Administration Fee
2%, $12,219
Initial Annual Budget = $610,936
SCTID Management Plan District Page 7 of 26
January 6, 2021
levels necessary to provide the services below will be determined by the DMO on an as-needed basis.
Convention Sales, Incentives, and Services
The Convention Sales, Incentives, and Services Program will promote sales activity for the booking of Convention Center events and increased room night sales of Convention Center attendees. The budget will be dedicated to sales activities to attract new meetings, conventions, sporting, and other events that have a significant impact on assessed lodging business room demand in the SCTID. The Program may include the provision of subsidies to attract new marquee events and conventions that have not previously hosted an event at the Convention Center. Program activities may include, but is not limited to, the following activities:
• Engage in sales activity for the effective booking of the Convention Center, for increased room night sales to Convention Center attendees and commensurate revenue for the Convention Center.
• Sell and coordinate the booking and reservation of convention, meeting and/or trade show space, hotel rooms and other off-site venues as necessary in connection with such convention, meeting, trade show or other group leisure events at the Convention Center and Santa Clara hotels in order to facilitate the seamless booking and servicing processes for space, food and beverage, audio/visual, and other group needs. • Conduct targeted sales calls to potential convention, tradeshow, and conference planners to generate prospects.
• Host exhibits at various targeted conference shows and special events as deemed necessary by Contractor to promote economic development and the visitor industry. • Conduct familiarization tours and product development tours and activities for agreed upon prospective clients.
• Host prospective meeting planners and other prospective clients in the City to promote business and industry development and the tourism industry. • Provide an incentive program in conjunction with the Convention Center and TID lodging businesses to generate new group or convention bookings.
Marketing & Communication
The Marketing and Communication Program will promote assessed lodging businesses as convention, meeting, and event destinations. The Program will have a central theme of promoting the destination as a desirable place for overnight meeting and convention attendees The program will have the goal of increasing overnight visitation and room night sales at assessed lodging businesses, and may include, but is not limited to, the following activities:
• Promote and market the Convention Center and Santa Clara, as a premier destination for conventions, meetings and trade shows, including utilization of digital media, online presence and social networks.
• Develop, produce, and distribute promotional convention sales materials specific to the Convention Center, Santa Clara lodging businesses, restaurants, entertainment and other amenities located in the City, and distribute said materials to event planners or coordinators. • Conduct coordinated advertising, publicity and promotion campaigns emphasizing attractions offered in the City for meetings and conventions groups.
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January 6, 2021
• Participate in appropriate convention and destination marketing association’s events and trade shows so that favorable and targeted publicity about the City and the Convention Center is continued and expanded.
• Solicit appropriate convention, tradeshow and meeting organizations to use the Convention Center and other venues throughout the City.
• Support destination planning services to associations, businesses, organizations and groups convening or holding conventions, meetings or events in the City. • Maintain a master set of bookings and schedules (and other related books and records) for conventions, tradeshows and other events at the Convention Center. • Create and maintain strategic relationships for the coordination of sales and services with the City and its business partners, including but not limited to the TID lodging businesses, Convention Center operator, and food and beverage service provider among others. • Engage in such other sales, marketing and promotion activities as Contractor deems appropriate and necessary to increase sales activity for conventions, meetings, trade shows and other events at the Convention Center.
• Maintain and continue to develop an appealing website that is designed to showcase the attributes of Santa Clara and market Santa Clara as a desirable destination.
Administration
Administration provides management, coordination and support to all organizational services and functions. Administration is responsible for the general oversight and fiscal health of the organization and budget will be used to support administrative staffing costs, office costs, policy development, and other general administrative costs such as insurance, legal, and accounting.
Contingency/Reserve
The budget includes a contingency line item to account for uncollected assessments, if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, administration or renewal costs at the discretion of the DMO Board. Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies from the reserve fund shall be set by the DMO Board. Contingency/reserve funds may be spent on District programs or administrative and renewal costs in such proportions as determined by the DMO Board. The reserve fund may be used for the costs of renewing the SCTID.
City Administration Fee
The City of Santa Clara shall be paid a fee equal to 2% of the amount of assessment collected to cover its costs of collection and administration which may include but are not limited to: staffing costs, legal services, and operational costs for rent, telephone, supplies, postage, and other general office expenses.
B. Annual Budget
The total five (5) year improvement and service plan budget is projected at approximately $610,936 annually, or $5,525,122 through 2026 if the maximum assessment rate increases are adopted. This budget is expected to fluctuate as room sales change and if the assessment rate is increased. If the maximum annual assessment increases are adopted by the DMO’s Board, the annual budget may increase to an estimated $1,174,623 in 2022-23.
The initial annual assessment rate is one and one-half of one percent (1.5%) of gross short-term room rental revenue. After the initial year, the DMO Board may propose to increase the assessment
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January 6, 2021
up to a maximum increment of one-half of one percent (0.50%), to a maximum assessment rate of two percent (2%) of gross short-term room rental revenue. If the DMO’s Board votes to increase the assessment, the DMO shall propose the assessment increase to the City of Santa Clara for City Council approval.
The table below demonstrates the maximum with the assumption that the rate will be increased in 2022-23 as it is a required disclosure, it may not be the final course of action. Additionally, a three percent (3%) annual increase in the total budget is shown to account for estimated increased room night sales as a result of SCTID efforts. This three percent (3%) annual increase is a conservative estimate based on the effects of similarly sized TID budgets. Finally, it is anticipated revenues will increase by forty percent (40%) as the economy begins to recover from the COVID-19 pandemic.
Due to the unprecedented nature of the COVID-19 pandemic, this is an estimation based on available data and may be subject to change. This anticipated forty percent (40%) increase has been implemented in the year 2022-23 in the chart below, in addition to the anticipated three percent (3%) annual increases and the assessment increase. This amount may fluctuate as sales and revenue increase at assessed businesses but is not expected to change significantly over the term.
Estimated Annual Budget If Maximum Assessment Rates Are Adopted 2021-2026
Year Convention
Sales,
Incentives,
and Services
Marketing &
Communication
Administration Contingency /
Reserve
City
Administration
Fee
Total
2021-22 $244,374 $122,187 $213,828 $18,328 $12,219 $610,936 2022-23 $469,849 $234,925 $411,118 $35,239 $23,492 $1,174,623 2023-24 $483,945 $241,972 $423,452 $36,296 $24,197 $1,209,862 2024-25 $498,463 $249,232 $436,155 $37,385 $24,923 $1,246,158 2025-26 $513,417 $256,709 $449,240 $38,506 $25,671 $1,283,543 Total $2,210,049 $1,105,024 $1,933,793 $165,754 $110,502 $5,525,122
The table below illustrates the annual improvement and service plan budget with the assumption that the rates will not be increased during the district’s five (5) year term. Additionally, a three percent (3%) annual increase in the total budget is shown, to account for estimated increased room night sales as a result of SCTID efforts. Finally, the aforementioned projection of a forty percent (40%) increase in revenue due to economic recovery from the COVID-19 pandemic is reflected in the chart below for year 2022-23.
Estimated Annual Budget If Maximum Assessment Rates Are Not Adopted 2021-2026
Year Convention
Sales,
Incentives, and
Services
Marketing &
Communication
Administration Contingency /
Reserve
City
Administration
Fee
Total
2021-22 $244,374 $122,187 $213,828 $18,328 $12,219 $610,936 2022-23 $352,388 $176,194 $308,339 $26,429 $17,619 $880,970 2023-24 $362,960 $181,480 $317,590 $27,222 $18,148 $907,399 2024-25 $373,848 $186,924 $327,117 $28,039 $18,692 $934,621 2025-26 $385,064 $192,532 $336,931 $28,880 $19,253 $962,659 Total $1,718,634 $859,317 $1,503,805 $128,898 $85,932 $4,296,585
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C. California Constitutional Compliance
The SCTID assessment is not a property-based assessment subject to the requirements of Proposition 218. Courts have found Proposition 218 limited the term ‘assessments’ to levies on real property.1 Rather, the SCTID assessment is a business-based assessment, and is subject to Proposition 26. Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions. Two of these exceptions apply to the SCTID, a “specific benefit” and a “specific government service.” Both require that the costs of benefits or services do not exceed the reasonable costs to the City of conferring the benefits or providing the services.
1. Specific Benefit
Proposition 26 requires that assessment funds be expended on, “a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.”
2 The services in this Plan are designed to provide targeted benefits directly to assessed businesses, and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public, businesses in general, or parcels of land, but rather to serve the specific businesses within the SCTID. The activities described in this Plan are specifically targeted to increase room night sales for assessed lodging businesses within the boundaries of the SCTID and are narrowly tailored. SCTID funds will be used exclusively to provide the specific benefit of increased room night sales directly to the assessees.
Assessment funds shall not be used to feature non-assessed lodging businesses in SCTID programs, or to directly generate sales for non-assessed businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses.
The assessment imposed by this SCTID is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in room night sales. The specific benefit of an increase in room night sales for assessed lodging businesses will be provided only to lodging businesses paying the district assessment, with marketing and sales programs promoting lodging businesses paying the SCTID assessment. The Marketing and Sales Program will be designed to increase room night sales at each assessed lodging businesses. Because they are necessary to provide the Convention Sales, Incentives, and Services and Marketing and Communication programs that specifically benefit the assessed lodging businesses, the administration and contingency/reserve services also provide the specific benefit of increased room night sales to the assessed lodging businesses.
Although the SCTID, in providing specific benefits to payors, may produce incidental benefits to non-paying businesses, the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that, “A specific benefit is not excluded from classification as a ‘specific benefit’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor.”
3 2. Specific Government Service
1 Jarvis v. the City of San Diego 72 Cal App. 4th 230
2 Cal. Const. art XIII C § 1(e)(1)
3 Government Code § 53758(a)
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The assessment may also be utilized to provide, “a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.”4 The legislature has recognized that marketing and promotions services like those to be provided by the SCTID are government services within the meaning of Proposition 265. Further, the legislature has determined that “a specific government service is not excluded from classification as a ‘specific government service’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor.” 6 3. Reasonable Cost
SCTID services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein.
Funds will be managed by the DMO, and reports submitted on an annual basis to the City. Only assessed lodging businesses will be featured in marketing materials, receive sales leads generated from SCTID-funded activities, be featured in advertising campaigns, and benefit from other SCTID-funded services. Non-assessed lodging businesses will not receive these, nor any other, SCTID-funded services and benefits.
The SCTID-funded programs are all targeted directly at and feature only assessed businesses. It is, however, possible that there will be a spill over benefit to non-assessed businesses. If non-assessed lodging businesses receive incremental room nights, that portion of the promotion or program generating those room nights shall be paid with non-SCTID funds. SCTID funds shall only be spent to benefit the assessed businesses and shall not be spent on that portion of any program which directly generates incidental room nights for non-assessed businesses.
D. Assessment
The annual assessment rate is one and one-half of one percent (1.5%) of gross short-term room rental revenue. Based on the benefit received, assessments will not be collected on stays by any officer or employee of a foreign government who is exempt by reason of express provision of Federal law or international treaty. Additionally, assessments will not be collected on stays by any Federal or State of California officer or employee on official business who shall provide one of the following; a warrant or check drawn on the Treasury of the United States; a copy of the official travel orders indicating the issuing governmental agency and the employee’s full name; or, a copy of a letter on the official letterhead of an exempt governmental agency requesting exemption and listing the employee’s name and stating that the stay is for official government business. The dates of occupancy must also be included. These requirements must be demonstrated by the guest at the time of registration. Failure to satisfy these requirements will result in no assessment exemption.
Copies of the documentation for each exemption claimed must be submitted to the Director of Finance with each remittance of assessments.
After the initial year, the assessment rate may be increased by the DMO’s Board, subject to City Council approval, to a maximum of two percent (2%) of gross short-term room rental revenue. If the assessment rate is increased, it may subsequently be decreased but shall not be decreased below a minimum of one and one-half of one percent (1.5%) of gross short-term room rental revenue. The
4 Cal. Const. art XIII C § 1(e)(2)
5 Government Code § 53758(b)
6 Government Code § 53758(b)
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assessment may be increased up to a maximum increment of one half of one percent (0.50%) and may be decreased down to a maximum increment of one-half of one percent (0.50%).
The term “gross room rental revenue” as used herein means: the consideration received, whether or not actually charged by the lodging business, for the occupancy of space in a lodging business valued in money, whether said gross room rental revenue is received in money, goods, labor, or otherwise, including all receipts, cash, credits, and property and services of any kind or nature. A lodging business may provide complimentary non-assessable rooms for employee use, guest satisfaction or charitable purposes (by a qualified 501(c)(3) charity) and a lodging business shall detail all complimentary non-assessable rooms in its regular reporting. Failure to accurately report complimentary rooms shall result in assessment of the rooms in question. Gross room rental revenue shall not include any federal, state or local taxes collected, including but not limited to transient occupancy taxes.
The assessment is levied upon and a direct obligation of the assessed lodging business. However, the assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. If the SCTID assessment is identified separately it shall be disclosed as the “SCTID Assessment.” As an alternative, the disclosure may include the amount of the SCTID assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act, Government Code §13995 et seq. and shall be disclosed as the “Tourism Assessment.” The assessment is imposed solely upon and is the sole obligation of the assessed lodging business even if it is passed on to transients. The assessment shall not be considered revenue for any purpose, including calculation of transient occupancy taxes.
Bonds or any debt obligation shall not be issued.
E. Penalties and Interest
The SCTID shall reimburse the City of Santa Clara for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent SCTID assessment are sought to be recovered in the same collection action by the City, the SCTID shall bear its pro rata share of such collection costs. Assessed businesses which are delinquent in paying the assessment shall be responsible for paying:
1. Delinquency Interest: Any lodging business that fails to remit any assessment imposed within the time required shall pay interest as described in subparagraph 3 below.
2. Penalty for Willful Noncompliance or Repeated Delinquencies: If the City determines that the nonpayment of any remittance due is due to willful noncompliance or repeated delinquencies, a penalty of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the interest as required by subparagraph 3 below.
3. Calculation of Interest: In addition to the penalties imposed, any lodging business that fails to remit any assessment imposed shall pay interest at the rate of the United States government T-Bills sold at the latest sale prior to the date of the delinquency plus three percent (3%) prorated per month or fraction thereof on the amount of the assessment, exclusive of penalties, from the date on which the remittance first became delinquent until paid.
4. Penalties and Interest Merged with Assessment: Except for the purpose of calculation of interest and penalties, every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the assessment herein.
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F. Time and Manner for Collecting Assessments
The SCTID assessment will be implemented beginning July 1, 2021 and will continue for five (5) years through June 30, 2026. On or before the last day of the month following the close of each calendar quarter, or at the close of any shorter reporting period as established by the Director of Finance, each assessed business shall remit to the City all assessments collected through the last day of the previous quarter, including any delinquencies, penalties, and interest, which have not previously been remitted to the City. Each lodging business located in the boundaries of the SCTID shall be responsible for remitting the assessments to the City in accordance with this Management District Plan. The City will be responsible for collecting the assessment on a quarterly basis or at the close of any shorter reporting period as established by the Director of Finance (including any delinquencies, penalties and interest) from each assessed lodging business. The City shall take all reasonable efforts to collect the assessments from each assessed lodging business. The City shall forward the assessments collected to the Owners’ Association.
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V. GOVERNANCE
A. Owners’ Association
The City Council, through adoption of this Management District Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the SCTID as defined in Streets and Highways Code §36612. The City Council has determined that Silicon Valley/Santa Clara DMO, Inc. (DMO), a nonprofit corporation, will serve as the Owners’ Association for the SCTID.
B. Brown Act and California Public Records Act Compliance An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose.
The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of the DMO Board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. The Owners’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act. Accordingly, the Owners’ Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action.
C. Annual Report
The DMO shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include:
• Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district.
• The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year. • The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year.
• The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
• The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
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APPENDIX 1 – LAW
*** THIS DOCUMENT IS CURRENT THROUGH THE 2018 SUPPLEMENT *** (ALL 2017 LEGISLATION)
STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994
CHAPTER 1. General Provisions
ARTICLE 1. Declarations
36600. Citation of part
This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.”
36601. Legislative findings and declarations; Legislative guidance
The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property. (2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed.
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Therefore, for special benefits to exist as a separate and distinct category from general benefits, the incidental or collateral effects of those special benefits are inherently part of those special benefits.
The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits.
(3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits.
Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined.
36602. Purpose of part
The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act. This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes.
36603. Preemption of authority or charter city to adopt ordinances levying assessments
Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)).
36603.5. Part prevails over conflicting provisions
Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part.
36604. Severability
This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes.
ARTICLE 2. Definitions
36606. “Activities”
“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district.
36606.5. “Assessment”
“Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district.
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36607. “Business”
“Business” means all types of businesses and includes financial institutions and professions.
36608. “City”
“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California.
36609. “City council”
“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part.
36609.4. “Clerk”
“Clerk” means the clerk of the legislative body.
36609.5. “General benefit”
“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5.
36610. “Improvement”
“Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.
36611. “Management district plan”; “Plan”
“Management district plan” or “plan” means a proposal as defined in Section 36622.
36612. “Owners’ association”
“Owners’ association” means a private nonprofit entity that is under contract with a city to admi nister or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners’ association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), for all records relating to activities of the district.
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36614. “Property”
“Property” means real property situated within a district.
36614.5. “Property and business improvement district”; “District”
“Property and business improvement district,” or “district,” means a property and business improvement district established pursuant to this part.
36614.6. “Property-based assessment”
“Property-based assessment” means any assessment made pursuant to this part upon real property.
36614.7. “Property-based district”
“Property-based district” means any district in which a city levies a property-based assessment.
36615. “Property owner”; “Business owner”; “Owner”
“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient.
36615.5. “Special benefit”
“Special benefit” means, for purposes of a property- based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value.
36616. “Tenant”
“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.
ARTICLE 3. Prior Law
36617. Alternate method of financing certain improvements and activities; Effect on other provisions
This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.
CHAPTER 2. Establishment
36620. Establishment of property and business improvement district
A property and business improvement district may be established as provided in this chapter.
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36620.5. Requirement of consent of city council
A county may not form a district within t he territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city.
36621. Initiation of proceedings; Petition of property or business owners in proposed district
(a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district.
The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623.
36622. Contents of management district plan
The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries.
(b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part.
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(d) The improvements, maintenance, and activities proposed for each year of operation of the district and the maximum cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a des cription of the first year’s proposed improvements, maintenance, and activities and a statement that the same improvements, maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision.
(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision.
(f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against his or her property or business. The plan also shall state whether bonds will be issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k) (1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof. (2) In a property-based district, the proportionate spec ial benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property -based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a property -based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel. (l) In a property -based district, the total amount of all special benefits to be conferred upon the properties located within the property-based district.
(m) In a property-based district, the total amount of general benefits, if any. (n) In a property- based district, a detailed engineer’s report pr epared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (o) Any other item or matter required to be incorporated therein by the city council.
36623. Procedure to levy assessment
(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code , except that notice shall be mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each
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written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice a nd protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners.
36624. Changes to proposed assessments
At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627.
36625. Resolution of formation
(a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following:
(1) A brief de scription of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an o wner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district.
(4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district.
Notwithstanding the foregoing, improvements and activities that must be provided outside the district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district. (7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by
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the proposed assessments, and, for a property- based district, that property within the district will receive a special benefit.
(8) In a property- based district, the tota l amount of all special benefits to be conferred on the properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.
36626. Resolution establishing district
If the city council, following the public hearing, desires to establish the proposed property and business improvement district, and the city council has not made changes pursuant to Section 36624, or has made changes that do not substantially change the proposed assessment, the city council shall adopt a resolution establishing the district. The resolution shall contain all of the information specified in Section 36625.
36627. Notice and assessment diagram
Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625 or Section 36626, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part.
36628. Establishment of separate benefit zones within district; Categories of businesses
The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be lev ied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone.
36628.5. Assessments on businesses or property owners
The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any property- based assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622.
36629. Provisions and procedures applicable to benefit zones and business categories
All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district.
36630. Expiration of district; Creation of new district
If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.
CHAPTER 3. Assessments
36631. Time and manner of collection of assessments; Delinquent payments
The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and
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penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties.
36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property
(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the imp rovements and activities provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part.
(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusive ly presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part.
36633. Time for contesting validity of assessment
The validity of an assessment levied under this part shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36626. Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.
36634. Service contracts authorized to establish levels of city services
The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed.
36635. Request to modify management district plan
The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter.
36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention
(a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the propos ed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the p ublic hearing, to each business owner or property owner affected by the proposed modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.
36637. Reflection of modification in notices recorded and maps
Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627.
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CHAPTER 3.5. Financing
36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments
(a)The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks -Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part.
(b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt.
CHAPTER 4. Governance
36650. Report by owners’ association; Approval or modification by city council
(a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.
The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district.
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36651. Designation of owners’ association to provide improvements, maintenance, and activities
The management district plan may, but is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services.
CHAPTER 5. Renewal
36660. Renewal of district; Transfer or refund of remaining revenues; District term limit
(a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or business es in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.
CHAPTER 6. Disestablishment
36670. Circumstances permitting disestablishment of district; Procedure
(a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment. (2) During the operation of the district, there shall be a 30 -day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30- day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment. (b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention.
36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district
(a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district
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is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.
APPENDIX 2 – ASSESSED BUSINESSES
Lodging Business Name Lodging Business Address City, State, ZIP AC Hotel 2970 Lakeside Dr Santa Clara, CA 95054
Avatar Hotel 4200 Great America Pkwy Santa Clara, CA 95054 Biltmore Hotel &Suites 2151 Laurelwood Rd Santa Clara, CA 95054 Embassy Suites 2885 Lakeside Dr Santa Clara, CA 95054
Hilton Santa Clara 4949 Great America Pkwy Santa Clara, CA 95054 Hyatt House 3915 Rivermark Plaza Santa Clara, CA 95054
Hyatt Regency 5101 Great America Pkwy Santa Clara, CA 95054 Marriott Santa Clara 2700 Mission College Blvd Santa Clara, CA 95054 The Element 1950 Wyatt Dr Santa Clara, CA 95054
The Plaza Suites 3100 Lakeside Dr Santa Clara, CA 95054 TownePlace Suites by
Marriott 2877 Lakeside Dr Santa Clara, CA 95054
City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
22-1248 Agenda Date: 10/18/2022
REPORT TO COUNCIL
SUBJECT
Action on the Amendment No. 1 to the Agreement with MIG, Inc. for Consultant Services to Update the City’s Adopted Housing Element and Related Budget Amendment
COUNCIL PILLAR
Promote and Enhance Economic, Housing and Transportation Development
BACKGROUND
The City is in the process of completing the Housing Element Update, including all necessary environmental review, as required under State law in a manner consistent with the Regional Housing Needs Allocation 6 (RHNA 6) for the planning period 2023-2030 as set forth by the State Department of Housing and Community Development (HCD) and further administered by the Association of Bay Area Governments/ Metropolitan Transportation Commission (ABAG/MTC).
Having completed a procurement process consistent with the City’s procurement requirements, the City awarded an agreement to MIG, Inc. to act as the City’s consultant to assist with preparation of the Housing Element Update. For efficiency, City staff is undertaking several portions of the Housing Element Update, but is utilizing the consultant services where they provide particular expertise and staffing capacity as needed to complete the Update process. The Housing Element Update scope of work for MIG includes community engagement, drafting of the housing element document, and participation in public hearings.
DISCUSSION
The original scope of work did not include preparation of an environmental review document required for the adoption of the project, because the initial assessment by the City was that the City would have sufficient time and expertise inhouse to prepare such a document. However, as other jurisdictions proceed through the HCD review process, it is becoming apparent that HCD has substantial expectations for the environmental review for each jurisdiction’s housing element. In light of this increasingly stringent review process from HCD and additional HCD requirements which compress the timeframe to develop the Housing Element, City staff are proposing that the City’s consultant, MIG, prepare the environmental documentation for the housing element project. The City has received a grant that will be used to fund this additional consultant work.
The required environmental documentation for the Housing Element Update will be in the form of an addendum to the General Plan EIR, which will also recognize the environmental analysis done for all of General Plan Amendments related to housing capacity since 2010, including the Lawrence Station Area Plan EIR, the Tasman East Specific Plan EIR, the Patrick Henry Drive Specific Plan EIR, and the Freedom Circle Focus Area / Greystar General Plan Amendment EIR.
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22-1248 Agenda Date: 10/18/2022
MIG has prepared a proposal at the request of the City to complete this additional environmental work. The cost of the addendum to the EIR will be $33,600. The City has been awarded a Regional Early Action Planning (REAP) grant for $102,684 that will fully fund the addendum to the General Plan EIR, in addition to other Planning projects, as detailed below.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
To fund the addendum to the General Plan EIR, the City has received a Regional Early Action Planning (REAP) reimbursable grant from the State of California Department of Housing and Community Development. The total maximum amount granted and reimbursable to the City may not exceed $102,684. Of this amount, $33,600 is allocated to the Housing Element update, $10,000 is allocated to the Tasman East Infrastructure Fee update, and the remaining $59,084 is allocated for the additional work needed for the zoning code update.
The recommended budget action below recognizes the grant funding from the State of California Department of Housing and Community Development and establishes an appropriation in the Engineering Operating Grant Trust Fund.
Budget Amendment
FY 2022/23
Current Increase/
(Decrease)
Revised
Engineering Operating Grant
Trust Fund
Revenue
Grant Funding $0 $102,684 $102,684
Expenditure
Regional Early Action Planning
Grant
$0 $102,684 $102,684
COORDINATION
This report has been coordinated with the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board City of Santa Clara Printed on 10/14/2022Page 2 of 3
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22-1248 Agenda Date: 10/18/2022
outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> .
RECOMMENDATION
1. Accept and approve the $102,684 in grant funding from the State of California Department of Housing and Community Development;
2. Authorize the City Manager to execute Amendment No. 1 to the Agreement with MIG, Inc. to provide Housing Element update Consultant Services for a term ending on December 31, 2023, for a maximum compensation not to exceed $233,568;
3. Authorize the City Manager to execute an amendment to increase maximum compensation in the event that additional services are required, subject to the annual appropriation of funds; and
4. Approve the related FY 2022/23 budget amendment in the Engineering Operating Grant Trust Fund to recognize grant revenue in the amount of $102,684 and establish an appropriation in the amount of $102,684 for preparation of the City’s Housing Element Update (five affirmative Council votes required to appropriate additional revenue).
Reviewed by: Andrew Crabtree, Director of Community Development Approved by: Rajeev Batra, City Manager
ATTACHMENTS
1. Amendment No. 1 to Agreement with MIG, Inc.
2. Original Agreement with MIG, Inc. and RTC 22-1693
3. Regional Early Action Planning (REAP) Grant Award
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Amendment No. 1 to Agreement/MIG- Housing Element Page 1 Rev. 10/25/19
Ebix Insurance No. S200003902
AMENDMENT NO. 1
TO THE AGREEMENT FOR SERVICES
BETWEEN THE
CITY OF SANTA CLARA, CALIFORNIA,
AND
MOORE IACOFANO GOLTSMAN, INC.
PREAMBLE
This agreement (“Amendment No. 1”) is entered into between the City of Santa Clara, California, a chartered California municipal corporation (City) and Moore Iacofano Goltsman, Inc., a California corporation (Contractor). City and Contractor may be referred to individually as a “Party” or collectively as the “Parties” or the “Parties to this Agreement.”
RECITALS
A. The City previously entered into an agreement with “MIG, Inc.,” whose registered business name is Moore Iacofano Goltsman, Inc., entitled “Agreement for Services between the City of Santa Clara, California, [and] MIG, Inc.”, dated February 22, 2022 (Agreement); and
B. The Parties entered into the Agreement for the purpose of having Contractor provide professional consultant services to update the City’s adopted Housing Element, and the Parties now wish to amend the Agreement to create an addendum to the General Plan Environmental Impact Report for the Housing Element Update.
NOW, THEREFORE, the Parties agree as follows:
AMENDMENT TERMS AND CONDITIONS
1. Exhibit A of the Agreement, entitled “Scope of Services,” is updated by appending the attached “Addendum to Scope of Services” to add new tasks to the original scope.
2. Exhibit B of the Agreement, entitled “Schedule of Fees,” is amended to reflect a revised maximum compensation value of two hundred thirty-three thousand five hundred sixty-eight dollars ($233,568).
3. Except as set forth herein, all other terms and conditions of the Agreement shall remain in full force and effect. In case of a conflict in the terms of the Agreement and this Amendment No. 1, the provisions of this Amendment No. 1 shall control.
Amendment No. 1 to Agreement/MIG- Housing Element Page 2 Rev. 10/25/2019
The Parties acknowledge and accept the terms and conditions of this Amendment No. 1 as evidenced by the following signatures of their duly authorized representatives.
CITY OF SANTA CLARA, CALIFORNIA
a chartered California municipal corporation
Approved as to Form: Dated:
Office of the City Attorney
City of Santa Clara
Rajeev Batra
City Manager
1500 Warburton Avenue
Santa Clara, CA 95050
Telephone: (408) 615-2210
Fax: (408) 241-6771
“CITY”
MOORE IACOFANO GOLTSMAN, INC.
a California Corporation
Dated:
By (Signature):
Name: Daniel Iacofano
Title: President/CEO
Principal Place of
Business Address: 800 Hearst Avenue, Berkeley, CA 94710 Email address: [email protected]
Telephone: 510-845-7549
Fax: 510-845-8750
“CONTRACTOR”
I:\PLANNING\Admin\Contracts\M.I.G. - Moore Iacofano Goltsman, Inc\Housing Element\Amend 1\Amendment No. 1 MIG HE 2022.doc
Amendment No. 1 to Agreement/MIG – Housing Element Addendum to Scope of Services Page 1 Rev. 10/25/2019
Addendum to Scope of Services
The following tasks are to be included as additional services. A detailed description of these tasks is included in the attached proposal dated August 24, 2022.
Addendum Tasks Cost
1. Initiate Project/Data Collection $6,200
2. Prepare Admin Draft Addendum $15,000
3. Prepare Final Addendum $4,500
4. Notice of Determination $1,000
5. Meetings and Hearings $3,600
6. Project Management $3,100
Labor Cost Subtotal
$33,400
Expenses $200
GRAND TOTAL (labor +expenses)
$33,600
In no event shall the maximum compensation under this Agreement as Amended for any and all services exceed two hundred thirty-three thousand five hundred sixty-eight dollars ($233,568), subject to annual budget appropriations.
PLANNING AND ENVIRONMENTAL SERVICES
August 24, 2022
John Davidson, Principal Planner
Community Development Department
City of Santa Clara
1500 Warburton Ave
Santa Clara, CA 95050
Re: Revised Proposal for Added Services to Provide CEQA Documentation for the 6th Cycle Housing Element and Zoning Ordinance Update, City of Santa Clara
Dear Mr. Davidson:
We are pleased to submit this revised proposal for added services to provide environmental analyses and documentation to comply with the California Environmental Quality Act for the City’s 6th Cycle Housing Element and Zoning Ordinance update. These services would be provided through an amendment to MIG’s existing agreement with the City of Santa Clara to prepare the 6th Cycle Housing Element.
Based on our earlier conversations , the City intends to provide CEQA documentation through an Environmental Impact Report (EIR) Addendum that would tier off the 2010 General Plan Update EIR and several other EIRs that have been adopted after the 2010 update. We have provided a scope of work and fee to provide for the preparation and processing of an EIR Addendum
The MIG team is well qualified to provide environmental services for this project. Over the past two years , our environmental team has worked in close cooperation with our general plan team and client cities on more than a dozen CEQA documents in support of Housing Element upd ates, including EIR,s Negative Declarations, and EIR Addendums. We are familiar with the unique challenges of preparing CEQA documents for Housing Element updates. I will serve as the Principal-in-Charge for this project, and our team will be led by Bob Prasse, our Director of Environmental Services.
The statutory deadline for Housing Element adoption is January 31, 2023. To meet this deadline, we will need authorization to proceed with the Addendum by early September, 2022.
We will work closely with the City to ensure a thorough and efficient environmental review process. If you have any questions or need additional information, please contact Bob Prasse at 909-519-5871 or [email protected], or me at 626-744-9876 ext. 3090 or [email protected]. Thank you for the opportunity to assist in the preparation of environmental documentation for your project.
Regards,
Laura Stetson
Principal
PLANN I NG ! DESIGN ! COMMUN I CATIONS ! MANAGEMENT ! SC I ENCE ! TECHNOLOGY 537 5. Raymond Avenue • Pasadena, CA 91 105 • USA • 626-744 -9872 • www.migcom.com Offices in: California • Colorado • Oregon • Texas • Washington Added Environmental Services, 6th Cycle Housing Element August 24, 2022 City of Santa Clara, California
2 SCOPE OF WORK
PROJECT UNDERSTANDING
MIG is currently under contract with the City to prepare the 6th Cycle Housing Element. City staff has now asked us to prepare the CEQA documentation for this update , as well a s several amendments to the general plan and zoning ordinance; many, but not all of these amendments, are related to implementation of the Housing Element update. CEQA documentation would be in the form of an EIR Addendum that would tier off the 2010 General Plan EIR and the EIRs listed below.
- Lawrence Station Area Plan EIR (2016)
- Tasman East EIR (2018)
- Gateway Crossings (2019)
- Patrick Henry Drive EIR (2022)
- Freedom Circle EIR (2022)
We anticipate that key initial steps for the Addendum will be: 1) clearly demonstrating that there is excess capacity, based on existing development level s and development projections/assumptions in the 2010 EIR and other EIRs, and 2) thoroughly evaluating the many zoning ordinance changes contemplated to ensure that they will fit into the CEQA Guidelines requirements for Addendums that a qualifying project does not increase the severity of impacts or create new impacts that were not analyzed in an earlier CEQA document. The approach we are proposing in our scope (see Task 1) is to address these items early on with a thorough and comprehensive description of each project element.
Finally, since this project will be an EIR Addendum that will not involve any increase in development potential beyond what was analyzed in the 2010 General Plan EIR or other late r EIRs, no technical studies or analyses (i.e., air quality, noise, etc.) are included in our scope of work. If for some reason it is later determined that such studies are necessary or desirable, additional scope and budget approval will be needed.
SCOPE OF WORK
.
Task 1 – Project Initiation and Project Description
A project initiation/kick -off meeting (teleconference) w ill be held with City staff and MIG to review the scope of work, schedule, project tasks, and work products. This meeting will also be an opportunity to discuss key project issues and concerns and establish communication protocols.
Another key element of this task will be the preparation of a thorough and comprehensive project description. As part of this effort, the kick-off meeting should include an in-depth discussion with City staff about the various components of the project including the Housing Element, amendments to the General Plan including: deletion of three Future Focus Areas (Lawrence Station Phase II, Central Expressway, and De la Cruz); General Plan text amendments to reflect current use patterns in industrial districts including in the LO-RD and HO-RD (low and high-intensity office). Also included is a zoning code update which involves an extensive list of re visions whose primary function is to create use districts that align with and implement the General Plan . Following the kick-off meeting, MIG will prepare a draft project description for City review and comment. MIG will then provide a revised draft for City approval; once approved, the project description will provide the foundation for analysis of potential project impacts (or lack thereof).
Added Environmental Services, 6th Cycle Housing Element August 24, 2022 City of Santa Clara, California
3 Task 2 – Prepare Administrative Draft Addendum
The potential impacts identified in the 2010 EIR and other EIRs will be compared to the potential impacts of the proposed project to determine if new or more severe impacts may occur. To document this evaluation/comparison, an “Appendix G” Initial Study checklist will be used to briefly summarize findings and conclusions reached for each issue area (i.e., air quality, traffic, land use, etc.), a discussion of the impacts of the proposed project compared to the originally approved EIR (s) will be provided for each checklist question. At the end of the discussion for each issue area, conclusions will be made regarding whether the impacts of the project will be greater than the impacts identified in the EIR(s).
The administrative draft Addendum will be provided to the City for review and comment. We have budgeted for one round of comments and review with the City. Following comments/revisions by the City, MIG will prepare a final version of the Addendum for use during the public hearing process for the project.
Task 3 – Prepare Final Addendum
Following receipt of city comments (in a single consolidated comment document) on the administrative draft Addendum. MIG will prepare a screen check addendum that incorporates the city revisions and comments. MIG will then submit the screen check draft for final review and comment by the city. Upon approval of the screen check document, MIG will finalize the Addendum.
Task 4 – Notice of Determination
No later than the first business day following the city’s approval of the project, MIG will provide for the city’s review a Notice of Determination (NOD) consistent with Section 15094 of the CEQA Guidelines.
Task 5 – Meetings and Hearings
This task assumes MIG’s participation in up to two virtual meetings with City staff and two public hearings for the adoption of the Addendum. The meetings and hearings will be attended by MIG team members responsible for the preparation of the Addendum. The budget for this task does not include the project kick-off meeting which is covered under Task 1.
Task 6 – Project Management
MIG recognizes that frequent, immediate, and clear communication with the project team is essential to keep the environmental review phase of the project on track. MIG has allocated budget for communication and coordination with the City and other project team members to ensure we can communicate clearly and effectively. Additionally, this budget covers contractual matters, case administration, and our quality control review process.
Added Environmental Services, 6th Cycle Housing Element August 24, 2022 City of Santa Clara, California
4 BUDGET
The base cost for this project is estimated at $33,400. Costs are provided on a not -to-exceed basis, although we request that we be permitted to re -allocate costs among tasks, provided the total project budget is not exceeded. Expenses will be billed at cost plus ten percent . Invoicing will occur monthly , based on time and materials. Payments are due and payable within 30 days of receipt of invoice to MIG, 800 Hearst Avenue, Berkeley, CA 94710. As the project progresses, if there is a change in scope or additional time and efforts are needed, an amendment to the budget will be requested before proceeding.
A summary budget is provided below.
Addendum Tasks Cost
1. Initiate Project/Data Collection $6,200
2. Prepare Admin Draft Addendum $15,000
3. Prepare Final Addendum $4,500
4. Notice of Determination $1,000
5. Meetings and Hearings $3,600
6. Project Management $3,100
Labor Cost Subtotal $33,400
Expenses $200
GRAND TOTAL (labor +expenses) $33,600
EBIX Insurance No. S200003902
AGREEMENT FOR SERVICES
BETWEEN THE
CITY OF SANTA CLARA, CALIFORNIA,
MIG,INC.
PREAMBLE
This Agreement is entered into as of the City's execution date (Effective Date) between the City of Santa Clara, California. This Agreement is entered into between the City of Santa Clara, California, a chartered California municipal corporation (City) and MIG, Inc., a California corporation (Contractor). City and Contractor may be referred to individually as a "Party" or collectively as the "Parties" or the "Parties to this Agreement."
RECITALS
A. City desires to secure the services more fully described in this Agreement, at Exhibit A, entitled "Scope of Services";
B. Contractor represents that it, and its subcontractors, if any, have the professional qualifications, expertise, necessary licenses and desire to provide certain goods and/or required services of the quality and type which meet objectives and requirements of City; and,
C. The Parties have specified herein the terms and conditions under which such services will be provided and paid for.
The Parties agree as follows:
AGREEMENT TERMS AND CONDITIONS
1. AGREEMENT DOCUMENTS
The documents forming the entire Agreement between City and Contractor shall consist of these Terms and Conditions and the following Exhibits, which are hereby incorporated into this Agreement by this reference:
Exhibit A - Scope of Services
Exhibit B - Schedule of Fees
Exhibit C - Insurance Requirements
This Agreement, including the Exhibits set forth above, contains all the agreements, representations and understandings of the Parties, and supersedes and replaces any previous agreements, representations and understandings, whether oral or written. In the event of any inconsistency between the provisions Agreement with MIG, Inc.
Rev. 07-01-18
of any of the Exhibits and the Terms and Conditions, the Terms and Conditions shall govern and control.
2. TERM OF AGREEMENT
Unless otherwise set forth in this Agreement or unless this paragraph is subsequently modified by a written amendment to this Agreement, the term of this Agreement shall begin on the Effective Date and terminate on December 31, 2023.
3. SCOPE OF SERVICES & PERFORMANCE SCHEDULE
Contractor shall perform those Services specified in Exhibit A within the time stated in Exhibit A. Time is of the essence.
4. WARRANTY
Contractor expressly warrants that all materials and services covered by this Agreement shall be fit for the purpose intended, shall be free from defect and shall conform to the specifications, requirements and instructions upon which this Agreement is based. Contractor agrees to promptly replace or correct any incomplete, inaccurate or defective Services at no further cost to City when defects are due to the negligence, errors or omissions of Contractor. If Contractor fails to promptly correct or replace materials or services, City may make corrections or replace materials or services and charge Contractor for the cost incurred by City.
5. QUALIFICATIONS OF CONTRACTOR -STANDARD OF CARE
Contractor represents and maintains that it has the expertise in the professional calling necessary to perform the Services, and its duties and obligations, expressed and implied, contained herein, and City expressly relies upon Contractor's representations regarding its skills and knowledge. Contractor shall perform such Services and duties in conformance to and consistent with the professional standards of a specialist in the same discipline in the State of California.
6. CONFLICT OF INTEREST (FORM 700)
In accordance with the California Political Reform Act (Government Code section 81000 et seq.) and the City's Conflict of Interest Code, Contractor shall cause each person who will be principally responsible for providing the service and deliverables under this Agreement as having to file a Form 700 to do each of the following:
A. Complete and file the Form 700 no later than thirty (30) calendar days after the date the person begins performing services under the Agreement Agreement with MIG, Inc.
Rev. 07-01-18
and an subsequent Form 700s in conformance with the requirements specified in the California Political Reform Act; and
B. File the Form 700 with the City's Clerk Office.
7. COMPENSATION AND PAYMENT
In consideration for Contractor's complete performance of Services, City shall pay Contractor for all materials provided and Services rendered by Contractor in accordance with Exhibit B, entitled "SCHEDULE OF FEES." The maximum compensation of this Agreement is set forth in Section 1 of Exhibit B and is subject to budget appropriations, which includes all payments that may be authorized for Services and for expenses, supplies, materials and equipment required to perform the Services. All work performed or materials provided in excess of the maximum compensation shall be at Contractor's expense.
Contractor shall not be entitled to any payment above the maximum compensation under any circumstance.
8. TERMINATION
A. Termination for Convenience. City shall have the right to terminate this Agreement, without cause or penalty, by giving not less than Thirty (30) days' prior written notice to Contractor.
B. Termination for Default. If Contractor fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided by law, City may terminate this Agreement immediately upon written notice to Contractor.
C. Upon termination, each Party shall assist the other in arranging an orderly transfer and close-out of services. As soon as possible following the notice of termination, but no later than ten (10) days after the notice of termination, Contractor will deliver to City all City information or material that Contractor has in its possession.
9. ASSIGNMENT AND SUBCONTRACTING
City and Contractor bind themselves, their successors and assigns to all covenants of this Agreement. This Agreement shall not be assigned or transferred without the prior written approval of City. Contractor shall not hire subcontractors without express written permission from City.
Contractor shall be as fully responsible to City for the acts and omissions of its subcontractors, and of persons either directly or indirectly employed by them, as Contractor is for the acts and omissions of persons directly employed by it.
Agreement with MIG, Inc.
Rev. 07-01-18
10. NO THIRD PARTY BENEFICIARY
· This Agreement shall not be construed to be an agreement for the benefit of any third party or parties and no third party or parties shall have any claim or right of action under this Agreement for any cause whatsoever.
11. INDEPENDENT CONTRACTOR
Contractor and all person(s) employed by or contracted with Contractor to furnish labor and/or materials under this Agreement are independent contractors and do not act as agent(s) or employee(s) of City. Contractor has full rights to manage its employees in their performance of Services under this Agreement.
12. CONFIDENTIALITY OF MATERIAL
All ideas, memoranda, specifications, plans, manufacturing procedures, data, drawings, descriptions, documents, discussions or other information developed or received by or for Contractor and all other written information submitted to Contractor in connection with the performance of this Agreement shall be held confidential by Contractor and shall not, without the prior written consent of City, be used for any purposes other than the performance of the Services nor be disclosed to an entity not connected with performance of the Services. Nothing furnished to Contractor which is otherwise known to Contractor or becomes generally known to the related industry shall be deemed confidential.
13. OWNERSHIP OF MATERIAL
All material, which shall include, but not be limited to, data, sketches, tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps, calculations, photographs, reports, designs, technology, programming, works of authorship and other material developed, collected, prepared or caused to be prepared under this Agreement shall be the property of City but Contractor may retain and use copies thereof. City shall not be limited in any way or at any time in its use of said material. However, Contractor shall not be responsible for damages resulting from the use of said material for work other than Project, including, but not limited to, the release of this material to third parties.
14. RIGHT OF CITY TO INSPECT RECORDS OF CONTRACTOR
City, through its authorized employees, representatives or agents shall have the right during the term of this Agreement and for four (4) years from the date of final payment for goods or services provided under this Agreement, to audit the books and records of Contractor for the purpose of verifying any and all charges made by Contractor in connection with Contractor compensation under this Agreement, including termination of Contractor. Contractor agrees to maintain sufficient books and records in accordance with generally accepted accounting principles to establish the correctness of all charges submitted to City. Any expenses not so recorded shall be disallowed by City. Contractor shall bear the Agreement with MIG, Inc.
Rev. 07-01-18
cost of the audit if the audit determines that there has been a substantial billing deviation in excess of five (5) percent adverse to the City.
Contractor shall submit to City any and all reports concerning its performance under this Agreement that may be requested by City in writing. Contractor agrees to assist City in meeting City's reporting requirements to the State and other agencies with respect to Contractor's Services hereunder.
15. HOLD HARMLESS/INDEMNIFICATION
A. As regards claims arising from the performance of professional services covered by the Professional Liability or Errors and Omissions Insurance policy, Contractor agrees to hold harmless and indemnify City, its City Council, commissions, officers, employees, volunteers and agents from and against any claim, injury, liability, loss, cost, and/or expense or damage, including reimbursement of all costs and reasonable attorney's fees in providing a defense to any such claim or other action, and whether sounding in law, contract, tort. or equity, to the extent determined by final judgment or settlement to arise from a negligent act, error, omission or willful misconduct in the Services performed by Contractor pursuant to this Agreement. The indemnification obligation in this paragraph shall not extend to third parties performing services for the Project.
8. As regards all other claims, Contractor agrees to protect, defend, hold harmless and indemnify City, its City Council, commissions, officers, employees, volunteers and agents from and against any claim, injury, liability, loss, cost, and/or expense or damage, including all costs and attorney's fees in providing a defense to any such claim or other action, and whether sounding in law, contract, tort, or equity, in any manner arising from, or alleged to arise in whole or in part from, or in any way connected with Contractor's operations in the course of providing the Services pursuant to this Agreement- including claims of any kind by Contractor's employees or persons contracting with Contractor to perform any portion of the Scope of Services. However, the obligation to indemnify shall not apply if such liability is ultimately adjudicated to have arisen through the sole active negligence or sole willful misconduct of City; the obligation to defend is not similarly limited.
C. Contractor's obligation to protect, defend, indemnify, and hold harmless in full City and City's employees set forth in Paragraph B above, shall specifically extend to any and all employment-related claims of any type brought by employees, contractors, subcontractors or other agents of Contractor, against City (either alone, or jointly with Contractor), regardless of venue/jurisdiction in which the claim is brought and the manner of relief sought.
Agreement with MIG, Inc.
Rev. 07-01-18
D. To the extent Contractor is obligated to provide health insurance coverage to its employees pursuant to the Affordable Care Act ("Act") and/or any other similar federal or state law, Contractor warrants that it is meeting its obligations under the Act and will fully indemnify and hold harmless City for any penalties, fines, adverse rulings, or tax payments associated with Contractor's responsibilities under the Act.
16. INSURANCE REQUIREMENTS
During the term of this Agreement, and for any time period set forth in Exhibit C, Contractor shall provide and maintain in full force and effect, at no cost to City, insurance policies as set forth in Exhibit C.
17. WAIVER
Contractor agrees that waiver by City of any one or more of the conditions of performance under this Agreement shall not be construed as waiver(s) of any other condition of performance under this Agreement. Neither City's review, acceptance nor payments for any of the Services required under this Agreement shall be constructed to operate as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement.
18. NOTICES
All notices to the Parties shall, unless otherwise requested in writing, be sent to City addressed as follows:
City of Santa Clara
Attention: Community Development Department
1500 Warburton Avenue
Santa Clara, CA 95050
and by e-mail at [email protected] and
[email protected]
And to Contractor addressed as follows:
MIG, Inc.
537 S. Raymond Avenue
Pasadena, CA 91105
and by e-mail at
[email protected]
The workday the e-mail was sent shall control the date notice was deemed given.
An e-mail transmitted after 1 :00 p.m. on a Friday shall be deemed to have been transmitted on the following business day.
Agreement with MIG, Inc,
Rev. 07-01-18
19. COMPLIANCE WITH LAWS
Contractor shall comply with all applicable laws and regulations of the federal, state and local government, including but not limited to "The Code of the City of Santa Clara, California" ("SCCC"). In particular, Contractor's attention is called to the regulations regarding Campaign Contributions (SCCC Chapter 2.130), Lobbying (SCCC Chapter 2.155), Minimum Wage (SCCC Chapter 3.20), Business Tax Certificate (SCCC section 3.40.060), and Food and Beverage Service Worker Retention (SCCC Chapter 9.60), as such Chapters or Sections may be amended from time to time or renumbered. Additionally Contractor has read and agrees to comply with City's Ethical Standards (http://santaclaraca.gov/home/showdocument?id=58299).
20. CONFLICTS OF INTEREST
Contractor certifies that to the best of its knowledge, no City officer, employee or authorized representative has any financial interest in the business of Contractor and that no person associated with Contractor has any interest, direct or indirect, which could conflict with the faithful performance of this Agreement. Contractor is familiar with the provisions of California Government Code section 87100 and following, and certifies that it does not know of any facts which would violate these code provisions. Contractor will advise City if a conflict arises.
21. FAIR EMPLOYMENT
Contractor shall not discriminate against any employee or applicant for employment because of race, sex, color, religion, religious creed, national origin, ancestry, age, gender, marital status, physical disability, mental disability, medical condition, genetic information, sexual orientation, gender expression, gender identity, military and veteran status, or ethnic background, in violation of federal, state or local law.
22. NO USE OF CITY NAME OR EMBLEM
Contractor shall not use City's name, insignia, or emblem, or distribute any information related to services under this Agreement in any magazine, trade paper, newspaper or other medium without express written consent of City.
23. GOVERNING LAW AND VENUE
This Agreement shall be governed and construed in accordance with the statutes and laws of the State of California. The venue of any suit filed by either Party shall be vested in the state courts of the County of Santa Clara, or if appropriate, in the United States District Court, Northern District of California, San Jose, California.
Agreement with MIG, Inc.
Rev. 07-01-18
24. SEVERABILITY CLAUSE
In case any one or mare of the provisions in this Agreement shall, for any reason, be held invalid, illegal or unenforceable in any respect, it shall not affect the validity of the other provisions , which shall remain in full force and effect.
25. AMENDMENTS
This Agreement may only be modified by a written amendment duly authorized and executed by the Parties to this Agreement.
26. COUNT ERPARTS
This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but both of which shall constitute one and the same instrument.
The Parties acknowledge and accept the terms and conditions of this Agreement as evidenced by the following signatures of their duly authorized representat ives .
CITY OF SANTA CLARA, CALIFORNIA
a chartered California municipal corporation
Approved as to Form:
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Digitallysig nedby A\exander
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Date: 2022.02.1713:38 :39 -08'00'
Office ofthe City Attorney
City of Santa Clara
"CITY"
MIG, INC.
D /XNNA J. SANT
C y Manager
1500 Warburton Avenue
Santa Clara; CA 95050
Telephone : (408) 615-2210
Fax: (408) 241-6771
a California corporation
Dated: -lil'lc-:~ ......:..,c-:1.&-11i'-~F
By (Signature) : ➔.f-\::i,.,Jl~f:A'i~!fr----t......,~F---3,f--='-"""'--- Name: .....c.t, ~ ...,;;,,::;,,;=:.c.,_:__c..c... _ _ _.,_ __ ___...,,---- -\--- - --- T it I e: - ----- --------- - - -Pr inc i pa I Place of Business Address: 800 Hearst Avenue, Berkeley, CA 94710 Email Address: [email protected]
Telephone: 510-845-7549
Agreement with MIG, Inc.
Rev. 07-01-18
Agreement with MIG, Inc.
Rev. 07-01-18
Fax: 510-845-8750
"CONTRACTOR"
1. INTRODUCTION
EXHIBIT A
SCOPE OF SERVICES
1.1. Consultant shall provide all necessary services to update the City's adopted housing element in a manner consistent with current State law, ensuring submittal of a final adopted element to HCD by January 2023.
2. TASK 1: PROJECT INITIATION, MANAGEMENT, AND COORDINATION
2.1. Task 1.1: Project Initiation and Project Schedule Development
2.1.1. At the outset of the project, Consultant shall meet with City staff to kick off the project, gather data and information, finalize protocols and communications, discuss the public engagement activities, and outline overall expectations and desired outcomes. This will include refining the work program, preparing a detailed revised project schedule, and reviewing the management structure that will ensure the program is completed on time and within budget. The detailed timeline schedule will include milestones leading toward adoption of the Housing Element before the January 2023 deadline.
2.1.2. As part of the kick-off meeting, Consultant will tour the City with City staff. City will determine if the meeting will be conducted on line or in person.
2.2. Task 1.2: Project Management, Project Team Meetings, and Phone Calls
2.2.1. The purpose of this subtask is to ensure project management meets the City's expectations and keeps the program moving forward, including contract administration, invoicing, scheduling, and the timely delivery of products. Consultant shall have a biweekly phone call with the City's project manager to monitor and review project progress and results, including discussing options for policy implementation and preferred direction and to review draft work products.
2.3. Deliverables
2.3.1. Kickoff Meeting Agenda
2.3.2. Refined Work Program and Schedule
2.3.3. Project Management Call Agenda and Summaries
3. TASK 2: COMMUNITY OUTREACH AND ENGAGEMENT
Agreement with MIG./Exhibit A
Rev. 07-01-18
3.1. Develop a program that effectively reaches, educates, and engages the community throughout the Housing Element update. The program must include strategies to ensure broad inclusion, particularly of hard to reach groups and special needs populations, with special attention given to communicating information so it is accessible and easy to understand.
Outreach is expected to begin early in the process and continue throughout for feedback on important topics such as draft ideas, site options, the draft Housing Element, and environmental review. Consultant must lead the engagement, create the presentation materials, as well as compile and summarize the input from the community. At a minimum, outreach must consist of:
3.1.1. Initial presentation to City Council and presence at all City Council study sessions or meetings (three total study sessions/meetings anticipated)
3.1.2. Two potential Planning Commission study sessions
3.1.3. One community meeting
3.1.4. Two stakeholder focus group meetings
3.1.5. Preparation of materials that the City will post on its website on a page dedicated to the Housing Element
3.1.6. One online survey
3.2. The City is expecting to maximize the use of existing outreach opportunities, including multHurisdiction efforts supported by either ABAG or the Santa Clara County Planning Collaborative.
3.3. Assume the Collaborative will provide a jurisdiction-specific newsletter and general housing element documents (e.g. what is a housing element).
4. TASK 3: ADMINISTRATIVE DRAFT AND DRAFT HOUSING ELEMENT
4.1. Task 3.1: Housing Element Assessment Memorandum
4.1.1. Consultant shall prepare a Housing Element Assessment memorandum that will outline key specific changes to be incorporated into the 6th Cycle Housing Element update. The memorandum shall include the following:
4.1.1.1. A discussion of the effectiveness of the housing program and policies
4.1.1.2. A comparison of projected results from the adopted Housing Element to actual accomplishments
Agreement with MIG./Exhibit A Page 11 of 23
Rev. 07-01-18
4.1.1.3. A summary of how these results are important to the Housing Element update
4.1.1.4. A preliminary assessment on the number of housing units at different income levels that may need to be accommodated
4.1.1.5. An evaluation of existing Housing Element in comparison to current State housing law, which includes an assessment of the effectiveness and appropriateness of the current
Housing Element policies and programs and identification of any barriers to implementation
4.1.1.6. Fair housing conditions in the City to understand how current policies do or do not perpetuate conditions
unfavorable to disadvantaged communities and other
populations that are the focus of fair housing laws. This preliminary analysis will be based on information provided to MIG by the Santa Clara County Planning Collaborative.
This memorandum will be the basis for the Housing Element performance chapter required by State law.
4.2. Task 3.2: Housing Element Outline
4.2.1. Consultant shall prepare a detailed outline of the proposed Housing Element. The outline will be the framework to guide preparation of the various components of the Housing Element. Consultant shall focus the body of the Housing Element on housing strategies and programs, with appendices containing the extensive background data and analysis required by State law.
4.3. Task 3.3: Administrative Draft Housing Element
Consultant shall prepare the following sections per the State law, with the ultimate organization to comport with the outline developed in task 3.2.
Consultant shall prepare a complete administrative draft for City staff review.
City staff will compile all of its comments into one document indicating revisions using Word's track-changes tool.
4.3.1. Needs Analysis. Consultant shall complete a housing assessment and needs analysis to comply with Government Code Section 65583(a) and other applicable State statutes. Consultant shall update the Housing Needs Assessment with population and housing data based on the latest U.S. Census and three- and five-year estimates from the American Community Survey, and other up-to-date City data available related to existing housing units and recent development projects. The Needs Analysis will include, but not be limited to, the following:
Agreement with MIG./Exhibit A
Rev. 07-01-18
4.3.1.1. Population, demographic, and employment trends with the accompanying analysis of the existing and projected share of regional housing needs for all income levels
4.3.1.2. Housing cost, affordability, housing characteristics, housing stock, and market conditions (including overcrowding and overpayment)
4.3.1.3. Housing stock characteristics, including at-risk units and vacant and underutilized land
4.3.1.4. Potential for increased residential development under existing zoning requirements and General Plan policies
4.3.1.5. Housing needs for special population groups such as large families, seniors, homeless, etc.
4.3.1.6. Number of existing assisted housing units at risk of conversion to market rate housing over the next 10 years
4.3.2. Housing Resources and Opportunities. Consultant shall focus on site suitability for housing to address the RHNA. As the supply of vacant land in the City is limited, future development will involve the redevelopment or reuse of properties zoned for multiple-family use, infill development on vacant parcels, and an emphasis on accessory dwelling units.
4.3.2.1. City staff has initiated work on the sites inventory and determined that the RHNA can be achieved within the
context of existing land use policy and zoning, particularly with the increased densities to be allowed by pending
specific plans. Consultant shall examine if rezoning and/or land use policy changes are required to satisfy the RHNA.
4.3.2.2. Consultant shall reflect all updated State laws, such as AB 1397, which makes numerous changes to how a jurisdiction establishes its housing element sites inventory. Consultant shall provide guidelines for the identification of sites and shall prepare the Sites Inventory GIS map and parcel
specific listing (table) of individual sites. Consultant shall then provide the required justifications that these sites can facilitate the development of housing given existing site, market, and development conditions. As needed,
Consultant shall coordinate with City staff to contact
property owners and real estate representatives regarding their intentions for particular properties.
Agreement with M IG./Exhibit A Page 13 of 23
Rev. 07-01-18
4.3.3. Housing Constraints. Consultant shall identify potential and actual governmental and nongovernmental (e.g. physical or financial) constraints to housing production, including land use controls such as code requirements, permitting fees, and permitting processes; physical/environmental constraints; infrastructure; financial; and market constraints. Consultant shall reflect new laws concerning changes to the housing constraints analysis, such as AB 879.
Consultant shall reflect all updated State laws, such as AB 1397, which makes numerous changes to how a jurisdiction establishes its housing element sites inventory.
4.3.4. Housing Goals, Policies, and Quantified Objectives.
4.3.4.1. Consultant shall prepare a Housing Plan ( eight-year implementation plan) with goals, policies, and programs relative to the maintenance, preservation, improvement, and development of housing to cover this new planning
period. Consultant shall also prepare a Review of Past
Performance analysis that builds on the analysis of the previous Housing Element's policy programs.
4.3.4.2. Contractor shall establish quantified objectives to address housing needs for all income groups, including extremely low-income households. Consultant shall prepare a
Housing Element that responds to State law requirements that ensure housing opportunities are available to all
persons in the City; preserve and improve the existing stock of affordable housing; facilitate development of adequate housing to meet the needs of low- and moderate-income
households, meeting regional share of goals; and mitigate any governmental constraints to housing production,
improvement, and/or maintenance.
4.3.5. Affirmatively Furthering Fair Housing (AFFH).
4.3.5.1. Based on detailed information provided by the Santa Clara County Housing Collaborative (Collaborative), consultant shall prepare a summary of fair housing issues in the
community, assess the City's fair housing enforcement and outreach capacity, report segregation patterns and
disparities in access to housing opportunities, report factors contributing to undesired conditions, and identify fair housing goals and actions. Consultant shall rely upon maps provided by the Collaborative to identify demographic
conditions (e.g., locations of minority populations and special needs households) and compare that to the sites Agreement with MIG./Exhibit A Page 14 of 23
Rev. 07-01-18
inventory to determine whether housing policies will relieve or perpetuate past discriminatory practices.
4.3.5.2. The City has indicated that HCD has approved the AFFH approach undertaken by the Collaborative as consistent
with HCD and State law requirements. Consultant shall use the analysis to inform/refine the sites inventory and the appropriate goals and policies to include in the Housing Plan.
4.4. Task 3.4: Draft Housing Element
4.4.1. Consultant shall prepare and submit an administrative draft Housing Element for City staff review. City staff will provide a comprehensive set of desired changes. Once edits are complete, Consultant shall prepare a draft Housing Element to be made available to the public and present to both the Planning Commission and City Council at public hearings. Based on the Commission and Council's input, Consultant shall prepare a HCD review draft and submit to HCD for the mandated review ..
4.4.2. Consultant shall prepare a notice/flyer announcing the release of the Draft Housing Element for public review and produce and an electronic copy of the Draft Housing Element. The City is responsible for making the Draft Housing Element available to the public on the City's website.
4.5. Task 3.5: HCD Review and Coordination
4.5.1. Consultant shall keep in contact with HCD staff to facilitate review and anticipate/respond to any specific concerns or questions. Consultant shall provide HCD with any requested supplemental data or information on proposed programs, policies, and strategies to meet the RHNA and otherwise comply with State law. Consultant has allocated 122 hours for this subtask which includes submittal of the Housing Element to HCD, conference calls with HCD staff and City staff to discuss comments, preparation of written responses to HCD comments, and revisions to the Housing Element to reflect HCD comments. This allowance provides for at least two rounds of review.
If additional hours are required beyond this allowance, Consultant shall be compensated on a time and materials basis as set forth in Section_ of Exhibit B. Consultant must receive prior authorization from the City.
4.5.2. Deliverables
4.5.2.1. Housing Element Assessment Memorandum
Agreement with MIG./Exhibit A Page 15 of 23
Rev. 07-01-18
4.5.2.2. Housing Element Outline - Draft and Final
4.5.2.3. Administrative Draft Housing Element
4.5.2.4. Draft Housing Element
4.5.2.5. HCD Review Draft Housing Element
5. TASK 4: CEQA (CITY TASK)
6. TASK 5: PUBLIC HEARINGS AND FINAL HOUSING ELEMENT
6.1. Task 5.1: Planning Commission Hearing (One public hearing)
6.1.1. Consultant shall present to the Planning Commission to recommend Housing Element adoption once comments from HCD have been received and addressed.
6.1.2. Consultant shall prepare a PowerPoint presentation for the hearing and present it to the Planning Commission. City staff will prepare all required staff reports and provide hearing notice.
6.2. Task 5.2: City Council Public Hearing (One public hearing)
6.2.1. Following the conclusion of the Planning Commission hearing, Consultant shall present to the City Council to adopt the Housing Element.
6.2.2. Consultant shall prepare a PowerPoint presentation for the hearing and present it to the Council. City staff will prepare all required staff reports and provide hearing notice.
6.3. Task 5.3: Final Housing Element
6.3.1. Following Council adoption of the Housing Element, Consultant make any directed revisions. Consultant shall prepare a memorandum to be transmitted to HCD documenting the hearing process and any final changes made per the City Council and in particular, in response to HCD's comments on the draft element.
6.3.2. Consultant shall prepare the memo and final Housing Element for City staff to submit to HCD for the 60-day certification period.
6.3.3. If HCD, during its review, requests further revisions, this work and any associated hearing tasks will be billed as additional services.
6.4. Deliverables
6.4.1. Planning Commission Presentation (PowerPoint)
Agreement with MIG./Exhibit A
Rev. 07-01-18
6.4.2. City Council Presentation (PowerPoint)
6.4.3. Final Housing Element
6.4.4. HCD Transmittal Memorandum
Agreement with MIG./Exhibit A
Rev. 07-01-18
EXHIBIT B
SCHEDULE OF FEES
1. MAXIMUM COMPENSATION
The maximum compensation the City will pay the Consultant for all professional fees, costs and expenses provided under this Agreement shall not exceed one hundred ninety-nine thousand nine hundred sixty-eight dollars ($199,968) during the term of the Agreement, subject to the annual appropriation of funds.
Any additional professional fees, costs and expenses requested by the City that would exceed the preceding maximum amount will be addressed in an Amendment to the Agreement.
2. FEES
Consultant shall complete the tasks for the amount set forth in the table below.
Cost Element Amount
Task 1: Project Management $26,380
Task 2: Community Engagement $60,290
Task 3: Draft HousinQ Element $74,555
Task 4: CEQA (City Task) Not aoolicable
Task 5: Public Hearings and Final Housing Element $10,160 Total (Tasks 1-5) $171,385
Direct Costs Allowance: Travel Printino, and Mailinq $2,500 Contingency $26,083
Grand Total $199,968
3. PAYMENT SCHEDULE
The Consultant will bill on a monthly basis for all work performed within that time period.
Travel, Printing, and Mailing shall be billed as expenses are incurred.
4. RATES FOR ADDITIONAL SERVICES
For the personnel specifically assigned to the project, the following hourly rates will only be utilized to the extent the City requests Consultant to perform services outside the defined scope of services, including additional public hearings and effort to address HCD comments.
Classification
Princi al
Agreement with MIG, lnc./Exhibit B
Rev. 07-01-18
Project Manaqer $185 per hour
Senior Associate/Deputy Project ManaQer $145 per hour
Engagement Specialist $125 per hour
Associate $110 per hour
Administrative Support $95 per hour
The above hourly rates shall be fixed for the term of the agreement.
5. INVOICING
City will pay Consultant within thirty (30) days of City's receipt of an approved invoice.
Agreement with MIG, lnc./Exhibit B
Rev. 07-01-18
EXHIBIT C
INSURANCE REQUIREMENTS
Without limiting the Contractor's indemnification of the City, and prior to commencing any of the Services required under this Agreement, the Contractor shall provide and maintain in full force and effect during the period of performance of the Agreement and for twenty-four (24) months following acceptance by the City, at its sole cost and expense, the following insurance policies from insurance companies authorized to do business in the State of California. These policies shall be primary insurance as to the City of Santa Clara so that any other coverage held by the City shall not contribute to any loss under Contractor's insurance. The minimum coverages, provisions and endorsements are as follows:
A. COMMERCIAL GENERAL LIABILITY INSURANCE
1. Commercial General Liability Insurance policy which provides coverage at least as broad as Insurance Services Office form CG 00 01. Policy limits are subject to review, but shall in no event be less than, the following:
$1,000,000 Each Occurrence
$2,000,000 General Aggregate
$2,000,000 Products/Completed Operations Aggregate
$1,000,000 Personal Injury
2. Exact structure and layering of the coverage shall be left to the discretion of Contractor; however, any excess or umbrella policies used to meet the required limits shall be at least as broad as the underlying coverage and shall otherwise follow form.
3. The following provisions shall apply to the Commercial Liability policy as well as any umbrella policy maintained by the Contractor to comply with the insurance requirements of this Agreement:
a. Coverage shall be on a "pay on behalf' basis with defense costs payable in addition to policy limits;
b. There shall be no cross liability exclusion which precludes coverage for claims or suits by one insured against another; and c. Coverage shall apply separately to each insured against whom a claim is made or a suit is brought, except with respect to the limits of liability.
B. BUSINESS AUTOMOBILE LIABILITY INSURANCE
Business automobile liability insurance policy which provides coverage at least as broad as ISO form CA 00 01 with policy limits a minimum limit of not less than one million dollars ($1,000,000) each accident using, or providing coverage at Agreement with MIG, lnc./Exhibit C
Rev. 07-01-18
least as broad as, Insurance Services Office form CA 00 01. Liability coverage shall apply to all owned (if any), non-owned and hired autos.
C. WORKERS' COMPENSATION
1. Workers' Compensation Insurance Policy as required by statute and employer's liability with limits of at least one million dollars ($1,000,000) policy limit Bodily Injury by disease, one million dollars ($1,000,000) each accident/Bodily Injury and one million dollars ($1,000,000) each employee Bodily Injury by disease.
2. The indemnification and hold harmless obligations of Contractor included in this Agreement shall not be limited in any way by any limitation on the amount or type of damage, compensation or benefit payable by or for Contractor or any subcontractor under any Workers' Compensation Act(s), Disability Benefits Act(s) or other employee benefits act(s).
3. This policy must include a Waiver of Subrogation in favor of the City of Santa Clara, its City Council, commissions, officers, employees, volunteers and agents.
D. PROFESSIONAL LIABILITY
Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against negligent acts, errors or omissions of the Contractor. Covered services as designated in the policy must specifically include work performed under this agreement. Coverage shall be in an amount of not less than one million dollars ($1,000,000) per claim or two million dollars ($2,000,000) aggregate. Any coverage containing a deductible or self-retention must first be approved in writing by the City Attorney's Office.
E. COMPLIANCE WITH REQUIREMENTS
All of the following clauses and/or endorsements, or similar provisions, must be part of each commercial general liability policy, and each umbrella or excess policy.
1. Additional Insureds. City of Santa Clara, its City Council, commissions, officers, employees, volunteers and agents are hereby added as additional insureds in respect to liability arising out of Contractor's work for City, using Insurance Services Office (ISO) Endorsement CG 20 10 11 85, or the combination of CG 20 10 03 97 and CG 20 37 10 01, or its equivalent.
2. Primary and non-contributing. Each insurance policy provided by Contractor shall contain language or be endorsed to contain wording making it primary insurance as respects to, and not requiring contribution Agreement with MIG, lnc./Exhibit C
Rev. 07-01-18
from, any other insurance which the indemnities may possess, including any self-insurance or self-insured retention they may have. Any other insurance indemnities may possess shall be considered excess insurance only and shall not be called upon to contribute with Contractor's insurance.
3. Cancellation.
a. Each insurance policy shall contain language or be endorsed to reflect that no cancellation or modification of the coverage provided due to non-payment of premiums shall be effective until written notice has been given to City at least ten (10) days prior to the effective date of such modification or cancellation. In the event of non-renewal, written notice shall be given at least ten (10) days prior to the effective date of non-renewal.
b. Each insurance policy shall contain language or be endorsed to reflect that no cancellation or modification of the coverage provided for any cause save and except non-payment of premiums shall be effective until written notice has been given to City at least thirty (30) days prior to the effective date of such modification or cancellation. In the event of non-renewal, written notice shall be given at least thirty (30) days prior to the effective date of non renewal.
4. Other Endorsements. Other endorsements may be required for policies other than the commercial general liability policy if specified in the description of required insurance set forth in Sections A through E of this Exhibit C, above.
F. ADDITIONAL INSURANCE RELATED PROVISIONS
Contractor and City agree as follows:
1. Contractor agrees to ensure that subcontractors, and any other party involved with the Services, who is brought onto or involved in the performance of the Services by Contractor, provide the same minimum insurance coverage required of Contractor, except as with respect to limits. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements· of this Agreement. Contractor agrees that upon request by City, all agreements with, and insurance compliance documents provided by, such subcontractors and others engaged in the project will be submitted to City for review.
2. Contractor agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Contractor for the cost of additional insurance coverage required Agreement with MIG, lnc./Exhibit C
Rev. 07-01-18
by this Agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto.
3. The City reserves the right to withhold payments from the Contractor in the event of material noncompliance with the insurance requirements set forth in this Agreement.
G. EVIDENCE OF COVERAGE
Prior to commencement of any Services under this Agreement, Contractor, and each and every subcontractor (of every tier) shall, at its sole cost and expense, provide and maintain not less than the minimum insurance coverage with the endorsements and deductibles indicated in this Agreement. Such insurance coverage shall be maintained with insurers, and under forms of policies, satisfactory to City and as described in this Agreement. Contractor shall file with the City all certificates and endorsements for the required insurance policies for City's approval as to adequacy of the insurance protection.
H. EVIDENCE OF COMPLIANCE
Contractor or its insurance broker shall provide the required proof of insurance compliance, consisting of Insurance Services Office (ISO) endorsement forms or their equivalent and the ACORD form 25-S certificate of insurance (or its equivalent), evidencing all required coverage shall be delivered to City, or its representative as set forth below, at or prior to execution of this Agreement.
Upon City's request, Contractor shall submit to City copies of the actual insurance policies or renewals or replacements. Unless otherwise required by the terms of this Agreement, all certificates, endorsements, coverage verifications and other items required to be delivered to City pursuant to this Agreement shall be provided by email to: [email protected].
Or by mail to:
EBIX Inc.
City of Santa Clara - Community Development Department
P.O. Box 100085- S2
Duluth, GA 30096
Telephone number: 951-766-2280
Fax number: 770-325-0409
I. QUALIFYING INSURERS
All of the insurance companies providing insurance for Contractor shall have, and provide written proof of, an A. M. Best rating of at least A minus 6 (A- VI) or shall be an insurance company of equal financial stability that is approved by the City or its insurance compliance representatives.
Agreement with MIG, lnc./Exhibit C
Rev. 07-01-18
City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
22-1693 Agenda Date: 1/25/2022
REPORT TO CITY COUNCIL
SUBJECT
Action on the Award of Agreement to MIG, INC for Consultant Services to Update the City’s Adopted Housing Element and Related Budget Amendment
COUNCIL PILLAR
Promote and Enhance Economic, Housing and Transportation Development
BACKGROUND
The City is in the process of completing the Housing Element Update, including all necessary environmental review, as required under State law in a manner consistent with the Regional Housing Needs Allocation 6 (RHNA 6) for the planning period, 2023-2030 as set forth by the State Department of Housing and Community Development (HCD) and further administered by the Association of Bay Area Governments/Metropolitan Transportation Commission (ABAG/MTC). ABAG/MTC encourages local jurisdictions to utilize the services of consultants from a consultant bench established by ABAG/MTC. As such, the City invited consultants seated on the ABAG/MTC Regional Planning Consulting Bench to submit proposals to assist the City in completing the Housing Element Update.
The ABAG/MTC consulting bench selection process is consistent with the City's procurement rules.
DISCUSSION
The Metropolitan Transportation Commission conducted a formal Request for Qualifications (RFQ) process to prequalify firms for the regional planning bench. Pursuant to City Code Section 2.105.290 (b)(3), which states that the City may “direct purchases from vendors on terms obtained pursuant to formal bidding processes,” the City utilized the bench to issue a mini-RFP for consultant services related to the Housing Element Update along with the creation of an Environmental Justice General Plan Element. A total of sixteen firms were contacted as a part of the mini-RFP process, which resulted in no responsive proposals. City staff then narrowed the proposal to only include the Housing Element Update work, and contacted the firm Moore, Iacofano and Goltsmann (MIG) Inc. directly from the bench.
Having completed a procurement process consistent with the City’s procurement requirements, staff is recommending award of an agreement to MIG, Inc. to act as the City’s consultant to assist with preparation of the Housing Element Update. After reviewing the qualifications of several consultants on the ABAG/MTC bench and discussing with them their availability to take on the scope of work needed for the City of Santa Clara, staff identified MIG as the preferred consultant. MIG was selected for their experience preparing Housing Elements for other communities and because of their familiarity with the City of Santa Clara growth plans, having also been the City’s consultants supporting the Freedom Circle Focus Area Plan and Patrick Henry Drive Specific Plan. For efficiency City staff will undertake several portions of the Housing Element Update, but will utilize the consultant services where they provide particular expertise and staffing capacity as needed to complete the City of Santa Clara Printed on 1/28/2022Page 1 of 3
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22-1693 Agenda Date: 1/25/2022
Update process. The Housing Element Update scope of work for MIG includes community engagement, drafting of the housing element document, preparation of an environmental clearance, and participation in public hearings. The Agreement for Services, including the detailed scope of work, is attached to this report.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
To fund the Housing Element update work, the City has received a Local Early Action Planning (LEAP) reimbursable grant from the State of California Department of Housing and Community Development. The maximum total amount granted and reimbursable to may not exceed $499,150, and all grant funds must be expended on or before December 31, 2023. Of this grant funding, $199,968 will be used to fund a consultant and the remaining $299,182 will be used to fund City staff expenses.
The recommended budget action below recognizes the grant funding from the State of California Department of Housing and Community Development and establishes an appropriation in the Engineering Operating Grant Trust Fund for the Housing Element update.
Budget Amendment
FY 2021/22
Current Increase/
(Decrease)
Revised
Engineering Operating Grant
Trust Fund
Revenue
Grant Funding $0 $499,150 $499,150
Expenditure
Housing Element Update $0 $499,150 $499,150
COORDINATION
This report has been coordinated with the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> .
RECOMMENDATION
City of Santa Clara Printed on 1/28/2022Page 2 of 3
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22-1693 Agenda Date: 1/25/2022
1. Accept and approve the $499,150 in grant funding from the State of California Department of Housing and Community Development;
2. Authorize the City Manager to execute an agreement with MIG, INC to provide Housing Element update Consultant Services for a term ending on December 31, 2023, for a maximum compensation not to exceed $199,968; and
3. Consistent with City Charter Section 1305, “At any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative votes of at least five members so as to authorize the transfer of unused balances appropriated for one purpose to another purpose, or to appropriate available revenue not included in the budget,” approve the related FY 2021/22 budget amendment in the Engineering Operating Grant Trust Fund to recognize grant revenue in the amount of $499,150 and establish an appropriation in the amount of $499,150 for preparation of the City’s Housing Element Update (five affirmative Council votes required to appropriate additional revenue).
Reviewed by: Andrew Crabtree, Director of Community Development Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Agreement with MIG, INC
City of Santa Clara Printed on 1/28/2022Page 3 of 3
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________ __, 2021
Rajeev Batra, City Manager
City of Santa Clara
1500 Warburton Avenue
Santa Clara, CA 95050
RE: REGIONAL EARLY ACTION PLANNING (REAP) GRANT SUBALLOCATION
AGREEMENT, CITY OF SANTA CLARA
Dear Mr. Batra:
This letter, effective as of October 15, 2022 (“Effective Date”) is the agreement between the City of Santa Clara (“Recipient”) and the Association of Bay Area Governments (“ABAG”) to support the performance of consultant services relating to the preparation of the City’s 6
th Cycle Housing Element Update, including environmental clearance for the project, and implementing actions, including the adoption of the City’s Zoning Code Update, which creates additional opportunities for by-right approvals of residential development projects, and for an amendment to the Tasman East Specific Plan, which will allow an additional 1,500 units of Housing in the Tasman East area of the City of Santa Clara (“the Agreement”).
WHEREAS, ABAG has received grant f unds awarded by the State of California Department of Housing and Community Development (“HCD”) Grant Agreement No. 19- REAP-13915 (“REAP Grant Agreement”), attached hereto and incorporated herein by this reference as Attachment B, pursuant to the Notice of Funding Availability – REAP (“REAP NOFA”), attached hereto and incorporated herein by this reference as Attachment C. Accordingly, any applicable clauses in Attachments B and C are hereby imposed upon Recipient; and
WHEREAS, ABAG has obtained funds from the California Department of Housing and Community Development (“HCD”), the state-required clauses in Attachment D, State- Required Clauses, are attached hereto and incorporated herein; and WHEREAS, ABAG has suballocated RE AP funding to support the Project.
Pursuant to Article 4 below, Recipient has opted to receive the funds directly to administer a contract to complete the Project. Payments will be made directly to the Recipient based on the conditions in Article 4.
Jesse Arreguin, President
Mayor, City of Berkeley
Belia Ra-mos, Vice President
Supervisor, Napa County
David Rabbitt
Immediate Past President
Supervisor , Sonoma County
Karen Mitcbojf
Chair, Regional
Planning Committee
Supervisor, Contra Costa County
Jesse Arreguin
Chair, Legislation Committee
Mayor, City of Berkeley
Karen Mitchoff,
Chair, Finance Committee
Supervisor , Contra Costa County
0 ASSOCIATION
OF BAY AREA
GOVERNMENTS
Bay Area Metro Center
375 Beale Street, Suite 700
San Francisco, CA 94105
415.820.7900
www.abag.ca.gov
Regional Early Action Planning (REAP),
Grant Suballocation Agreement,
City of Santa Clara
1. It is agreed that Recipient either has or will perform all the services specified in Attachment A- 1, Scope of Work, according to the schedule in Attachment A-2, Project Payment Schedule, both attached hereto and incorporated herein by this reference, and in compliance with the requirements of all other attachments to this Agreement, which are also incorporated herein by this reference.
2. Work will be reviewed by Heather Peters or a designated representative (herein “ABAG Project Manager”) for compliance with the terms of this agreement including the terms of Attachments B and C hereto. Eligible activities must be related to housing planning and facilitate the streamlining and acceleration of housing production. Ineligible activities include:
a) RHNA appeals;
b) Activities unrelated to accelerating housing production; c) Activities unrelated to preparation and adoption of planning documents, and process improvements to accelerate housing production;
d) Activities that obstruct or hinder housing production, e.g., moratoriums, downzoning, planning documents with conditional use permits that significantly impact approval certainty and timing, planned development, or other similarly constraining processes; e) Capital financing, operation or funding related to programs of individual housing development projects; and
f) Administrative costs of persons employed by the grantee for activities not directly related to the preparation and adoption of the proposed Activity or Activities.
3. ABAG has developed a project management platform with City Innovate, Inc. (City Innovate) to assist in the procurement, contracting, and invoicing process. The Terms & Conditions of use for the City Innovate platform are attached hereto and incorporated as Attachment F-1 and the Software as a Service Agreement by City Innovate and ABAG dated April 15, 2021, is attached hereto and incorporated as Attachment F-2. Accordingly, Recipient shall comply with any and all applicable clauses in Attachment F-1 and Attachment F-2.
4. ABAG has suballocated one hundred two thousand six hundred eighty-four dollars and zero cents ($102,684.00) (“Maximum Payment”), which Recipient has elected to receive directly.
Expenses shall not exceed the Maximum Payment. Recipient will be compensated for the work in accordance with Attachment A-2. ABAG shall make payments to Recipient in accordance with the provisions described in Attachment A-2. Contingent upon Recipient’s satisfactory completion of work products or milestones, as applicable, required under Attachment A-1, Recipient shall submit invoices to ABAG for reimbursement of that portion of the funds available to Recipient that have been expended or are due to third parties. These invoices will refer to the deliverables listed in Attachment A-2 to allow for expenditure tracking at the task level. Invoices shall be provided no more frequently than prescribed by ABAG in Attachment A-2. In addition, all supporting documentation must accompany Regional Early Action Planning (REAP),
Grant Suballocation Agreement,
City of Santa Clara
expenditures included on Recipient invoices. Payment shall be made by ABAG within thirty (30) days of receipt of an acceptable invoice, which shall be subject to the review and approval of ABAG’s Project Manager or a designated representative. Recipient should submit invoices electronically via email to ABAG at [email protected] or as directed by the ABAG Project Manager.
5. To the extent requested by the ABAG Project Manager, Recipient, or consultant procured by ABAG on behalf of Recipient (if any), shall submit communications and progress reports no more frequently than quarterly and required documentation, including but not limited to invoices, requests for agreement modifications, and information on payments received and made to subrecipients, subrecipient utilization, and if applicable, certified payrolls, to the ABAG Project Manager or their designee via one or more web-based systems designated by ABAG to which ABAG will provide Recipient with system access. ABAG may withhold payment of invoices and/or require consultant procured by ABAG on behalf of Recipient to cease or suspend work pending receipt of such communications, progress reports and required documentation via the applicable web-based system.
6. Recipient acknowledges that a goal of ABAG’s Regional Housing Technical Assistance Program is to share work product funded in whole or in part by REAP widely to achieve economies of scale and to avoid inefficient duplication of effort. To further this goal, Recipient shall provide a copy of the final work product described in Attachment A-1 to ABAG via email to [email protected] within 10 days of completion. If completion of a task contained in Attachment A-1 does not result in the production of a document, then Recipient shall submit a short summary of the work completed to the reasonable satisfaction of ABAG, including lessons learned, to MTC/ABAG via email to [email protected] within 10 days of completion.
Additionally, Recipient acknowledges that all work product created pursuant to this Agreement is subject to the joint ownership requirements of Section 12, State-Owned Data, of Exhibit D, REAP Terms and Conditions, of Attachment B, REAP Grant Agreement, as work product is defined therein, and Recipient shall take all necessary actions to comply and have its subcontractors and/or subconsultants comply with such requirements.
7 All work product described in Attachment A-1 shall comply with federal accessibility requirements, as specified in Section 508 of the Rehabilitation Act (29 U.S.C. § 798 SECTION 508”).
Compliance encompasses both website structure (design, layout, function), and website content (text, images, documents).
8. Recipient acknowledges that a goal of ABAG’s Regional Housing Technical Assistance Program is to facilitate statewide, regional, and subregional collaboration on housing planning. To further this goal, at all times through the term of this Agreement, Recipient shall designate at least one person who is currently responsible for providing housing planning services to it to receive communications from ABAG, HCD and subregional Planning Collaboratives and their representatives Regional Early Action Planning (REAP),
Grant Suballocation Agreement,
City of Santa Clara
regarding available technical assistance at the state, regional and subregional levels. Recipient designates the following person(s) to receive these communications and shall notify ABAG via email at [email protected] of a replacement designee in the event of a change in personnel within 10 days:
Rajeev Batra, City Manager
[email protected]
408-615-2210
9. The term of the Agreement shall begin on th e Effective Date and conclude on December 31, 2023, unless ABAG terminates this Agreement earlier as provided below.
10. If Recipient fails to perform as specified in the Agreement, or if HCD terminates REAP funding to ABAG due to failure of the California Legislature to appropriate sufficient funds for the REAP program, ABAG may terminate the Agreement for cause by advance 10-day written notice, providing Recipient with the opportunity to cure the default or present an acceptable plan for cure within the 10-day period. At the end of the 10-day period, if the default has not been cured or an acceptable plan of cure presented, ABAG may issue a notice of termination for default, effective immediately, and Recipient will be entitled only to costs incurred for acceptable work performed in accordance with the Agreement, not to exceed the maximum amount payable under the Agreement for such work.
11. Recipient agrees to re quire any consultant contracted to perform work related to the completion of the Scope of Work after the effective date of this Agreement to name the ABAG Indemnified Parties (as defined in Paragraph 14 below) and California Department of Housing and Community Development (HCD) as additional insureds in the same manner as Recipient in any agreement that requires the consultant to obtain and maintain insurance and to name Recipient as an additional insured.
Upon request by ABAG, Recipient shall deliver to ABAG insurance documentation (including Certificates of Liability Insurance, Evidences of Property Insurance, endorsements, etc.) verifying the coverages. Such evidence of insurance shall make reference to all provisions and endorsements as required by the agreement between Recipient and consultant and shall be signed by the authorized representative of the Insurance Company shown on the insurance documentation. The Project name shall be clearly stated on the face of each Certificate of Liability Insurance and/or Evidence of Property Insurance. ABAG reserves the right to require copies of all required policy declarations pages or insurance policies, including endorsements, required by these specifications, at any time.
12. Except for invoices and any co mmunications required to be submitted by Recipient via web- based system, all notices or other communications to either party by the other shall be deemed given when made in writing and delivered, mailed, or emailed to such party at their respective addresses as follows:
Regional Early Action Planning (REAP),
Grant Suballocation Agreement,
City of Santa Clara
To ABAG: Attention: Heather Peters
Association of Bay Area Governments
375 Beale Street, Suite 700
San Francisco, CA 94105
Email: hpeters
@bayareametro.gov
To RECIPIENT: Attention: Rajeev Batra, City Manager
City of Santa Clara
1500 Warburton Avenue
Santa Clara, CA 95050Email:
[email protected]
13. In performing work under the Agreement, Recipien t will be acting as an independent contractor and not as an agent or employee of ABAG. Recipient will have no authority to contract in the name of ABAG, and Recipient will be responsible for its own acts and those of its agents and employees.
14. Recipient shall inde mnify, defend, and hold harmless ABAG, MTC, and their respective board members, representatives, agents and employees (“ABAG Indemnified Parties”) from and against all claims, injury, suits, demands, liability, losses, damages and expenses, whether direct or indirect (including any and all costs and expenses in connection therewith), incurred by reason of any act or failure to act of Recipient, its officers, employees or agents, or subconsultants or any of them in connection with this Agreement.
15. Recipient agrees to establish and maintain an accounting system conforming to generally accepted accounting principles (GAAP) that is adequate to accumulate and segregate reasonable, allowable, and allocable project costs. Recipient further agrees to keep all records pertaining to the Project(s) being funded for audit purposes for a minimum of: (a) three (3) years following final payment to Recipient, (b) four (4) years following the fiscal year of last expenditure under the Agreement; or (c) until completion of any litigation, claim or audit, whichever is longest; and ABAG may inspect and audit such records during that period of time.
16. Any claim or controversy concerning the interp retation, application, or implementation of this Agreement between ABAG and Recipient that cannot be resolved through the informal, good faith efforts of the parties may, by specific agreement of the parties, be submitted to alternative dispute resolution (that is, mediation or arbitration) with the parameters for such dispute resolution being agreed to by the parties at the time. If a dispute is not resolved through discussion or the parties do not agree to alternative dispute resolution, either party may pursue available legal remedies in a California State or Federal court of competent jurisdiction. Recipient must file a government claim pursuant to Government Code section 910 et seq. in order to initiate a civil action. The prevailing party in any Regional Early Action Planning (REAP),
Grant Suballocation Agreement,
City of Santa Clara
dispute shall be entitled to payment of its attorneys’ fees and costs. This section shall survive the termination or expiration of the Agreement.
17. All questions pertaining to the validity and interpretation of the Agreement shall be determined in accordance with the laws of the State of California applicable to agreements made and to be performed within the State.
18. Recipient may subcontract to consultants or co ntractors for performance of portions of the work required under this Agreement, without the prior written consent of ABAG, provided Recipient complies with any other applicable requirements of this Agreement and the applicable Attachments hereto, and applicable federal and state requirements.
19. For purposes of this Agreement, “subconsultant ” shall mean any consultant or contractor under contract with the Recipient to perform Project work. Any subconsultants must be engaged under written contract with Recipient with provisions allowing Recipient to comply with all requirements of this Agreement. Failure of a subconsultant to provide any insurance required under this Agreement shall be at the risk of Recipient. ABAG’s Project Manager shall be notified in writing of any substitution or addition of subconsultants.
20. Nothing contained in this Agr eement or otherwise, shall create any contractual relationship between ABAG and any subconsultants, and no subcontract shall relieve Recipient of his/her responsibilities and obligations hereunder. Recipient agrees to be as fully responsible to ABAG for the acts and omissions of its subconsultants and of persons either directly or indirectly employed by any of them as it is for the acts and omissions of persons directly employed by Recipient. Recipient 's obligation to pay its subconsultants is an independent obligation from ABAG's obligation to make payments to Recipient.
21. Applicable provisions of this Agreement shall be included in any subcontract or subconsultant agreement entered into under of this Agreement. If the Recipient already has a subconsultant in place performing applicable work, then Recipient is responsible for communicating to its subconsultant of all applicable provisions of this Agreement.
22. This Agreement constitutes the complete agre ement between the parties and supersedes any prior written or oral communications. Any changes to this agreement may only be amended by mutual agreement of ABAG and Recipient at any time during the term of the Agreement. All such changes shall be incorporated in written amendments, which shall specify the changes in work performed and any adjustments in compensation and schedule. All amendments shall be executed by the authorized Executive or a designated representative of ABAG and Recipient and specifically identified as amendments to the Agreement. The ABAG Project Manager is not a designated representative, for purposes of executing an amendment.
23. If any term or condition of this Agreement is found to be illegal or unenforceable, such term or Regional Early Action Planning (REAP),
Grant Suballocation Agreement,
City of Santa Clara
condition shall be deemed stricken and the remaining terms and conditions shall remain valid and in full force and effect.
24. This Agreement is not for the benefit of a ny person or entity other than the parties.
If you agree, please sign this letter in the space provided below.
Very truly yours,
Therese W. McMillan
Metropolitan Transportation Commission
Executive Director
Acting pursuant to the Contract for Services dated May 30, 2017
Accepted and A
greed to this:
Date:
__________________
Rajeev Batra
City Manager
City of Santa Clara
Regional Early Action Planning (REAP),
Grant Suballocation Agreement,
City of Santa Clara
ATTACHMENT A-1
SCOPE OF WORK FOR CITY OF SANTA CLARA (“RECIPIENT”)
All work will support the overarching goals of the REAP program to support planning activities that (1) accelerate housing production or (2) facilitate compliance in implementing the sixth cycle of the RHNA.
Funds will only be used for planning activities and will not be used to support RHNA appeals or the development of specific housing projects, including capital financing, building operation costs, or resident services.
Task 1 – ADDENUM TO THE GENERAL PLAN EIR FOR THE HOUSING ELEMENT UPDATE
The City intends to provide CEQA documentation for the 6th cycle Housing Element through an Environmental Impact Report (EIR) Addendum that would tier off the 2010 General Plan Update EIR and several other EIRs that have been adopted after the 2010 update. This document would provide environmental clearance for the City’s RHNA allocation of 11,632 housing units.
Task 1 Deliverables:
1.1 Addendum to the General Plan EIR for the Housing Element (see attached scope of work)
Task 2 – AMENDMENT TO THE TASMAN EAST INFRASTRUCTURE FEE The City of Santa Clara is processing a Specific Plan Amendment to add 1,500 units to the previously approved 4,500 units in the Tasman East plan area, for a total of 6,000 units. The amendment to the infrastructure fee would allow the City to charge developers for the expanded infrastructure required.
Task 2 Deliverables:
2.1 Amendment to the Tasman East Infrastructure Impact Fee Study, originally adopted November, 2020
Task 3 – ZONING CODE UPDATE
The City is requesting re-imbursement for work on the City’s Zoning Code Update. The Zoning Code Update creates by-right approval processes for the units called out in the City’s 6th cycle housing Element.
Task 3 Deliverables:
3.1 Finalized, Updated Zoning Code, to be adopted February 2023.
ATTACHMENT A-1
SCOPE OF WORK FOR THE CITY OF SANTA CLARA (“RECIPIENT”)
All work will support the overarching goals of the REAP program to support planning activities that (1) accelerate housing production or (2) facilitate compliance in implementing the sixth cycle of the RHNA.
Funds will only be used for planning activities and will not be used to support RHNA appeals or the development of specific housing projects, including capital financing, building operation costs, or resident services.
Recipient seeks reimbursement of the following expenses for work done on REAP- eligible activities after October 1, 2018:
REAP-Eligible Activity Dates Amount to be reimbursed
Produce Addendum to the
City’s General Plan EIR to
provide environmental
clearance for the City’s 6
th
Cycle Housing Element
10/1/2022 to 1/31/2023 $33,400
Produce an update to the
Infrastructure Impact Fee
for the Tasman East
Specific plan to account for
the changed costs created
by adding 1,500 additional
units to the plan area
10/1/2022 to 1/31/2023 $10,000
Complete a
comprehensive update to
the City’s Zoning Code,
which will create zoning
districts consistent with the
City’s General plan to
facilitate by-right approvals
of residential projects
10/1/2018 to 1/31/2023 $59,284
Total $102,684
Regional Early Action Planning (REAP),
Grant Suballocation Agreement,
City of Santa Clara
ATTACHMENT A-2
PROJECT PAYMENT SCHEDULE FOR INSERT NAME OF GRANTEE ORGANIZATION (“RECIPIENT”)
All work described in this Agreement must be completed by December 31, 2023, and properly invoiced, to ABAG no later than September 30, 2023. ABAG will reimburse Recipient for all expenses deemed reasonable and necessary by ABAG incurred by Recipient in the performance of this Agreement. Recipient shall submit invoices for:
DELIVERABLE DUE DATE AMOUNT
Task 1 – [INSERT NAME OF TASK]
1.1 [INSERT DESCRIPTION OF DELIVERABLE] [INSERT] [INSERT]
1.2 [INSERT DESCRIPTION OF DELIVERABLE] [INSERT] [INSERT]
1.3 [INSERT DESCRIPTION OF DELIVERABLE] [INSERT] [INSERT] Task 2 - [INSERT NAME OF TASK IF MORE THAN ONE]
2.1 [INSERT DESCRIPTION OF DELIVERABLE] [INSERT] [INSERT]
2.2 [INSERT DESCRIPTION OF DELIVERABLE] [INSERT] [INSERT]
2.3 [INSERT DESCRIPTION OF DELIVERABLE] [INSERT] [INSERT] Task 3 -[INSERT NAME OF TASK IF MORE THAN TWO]
3.1 [INSERT DESCRIPTION OF DELIVERABLE] [INSERT] [INSERT]
3.2 [INSERT DESCRIPTION OF DELIVERABLE] [INSERT] [INSERT]
3.3 [INSERT DESCRIPTION OF DELIVERABLE] [INSERT] [INSERT]
INSERT AS MANY ADDITIONAL TASKS AND RELATED DELIVERABLES AS NEEDED
I I I I
I I I I
I I I I
I I I I
I I I I
I I I I
I I I I
I I I I
I I I I
ATTACHMENT A-2
PROJECT PAYMENT SCHEDULE FOR CITY OF SANTA CLARA (“RECIPIENT”)
ABAG will reimburse Recipient for all expenses deemed reasonable and necessary by ABAG incurred by Recipient in the performance of this Agreement.
Recipient shall submit invoices for:
DELIVERABLE DUE DATE AMOUNT
Reimbursement for REAP-Eligible Expenditures
Addendum to the General
Plan EIR, which provides
environmental clearance
for the Housing element
Update
Deliverables shall be
provided by Recipient to
ABAG with an invoice for
reimbursement no later
than September 30, 2023.
Invoice shall be reviewed
and processed by ABAG in
the normal course of
business.
$33,400
Update to the
Infrastructure Impact Fee
for the Tasman East
Specific Plan, necessary to
account for the changed
costs created by adding
1,500 additional units to
the plan area
$10,000
Complete a
comprehensive update to
the City’s Zoning Code,
which will create zoning
districts consistent with the
City’s General plan to
facilitate by-right approvals
of residential projects
$59,284
Total $102,684
Regional Early Action Planning (REAP),
Grant Suballocation Agreement,
City of Santa Clara
ATTACHMENT B
STATE OF CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT GRANT AGREEMENT NO. 19-REAP-13915 (INCLUDES AMENDMENTS)
Regional Early Action Planning (REAP),
Grant Suballocation Agreement,
City of Santa Clara
ATTACHMENT C
NOTICE OF FUNDING AVAILABILITY – REAP
Regional Early Action Planning (REAP),
Grant Suballocation Agreement,
City of Santa Clara
ATTACHMENT D
STATE REQUIRED CLAUSES
FAIR EMPLOYMENT PRACTICES ADDENDUM
1. In the performance of this agreement, Recipient shall not discriminate against any employee for employment because of sex, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (e.g., cancer), age (over 40), marital status, and denial of family care leave. Recipient shall take affirmative action to ensure that employees are treated during employment without regard to their race, sex, sexual orientation, color, religion, ancestry, or national origin, physical disability, medical condition, marital status, political affiliation, family and medical care leave, pregnancy leave, or disability leave. Such action shall include, but not be limited to, the following: employment; upgrading; demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. Recipient shall post in conspicuous places, available to employees for employment, notices to be provided by the State of California (“STATE”) setting forth the provisions of this Fair Employment section.
2. Recipient, its contractor(s) and all subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code Section 12900 et seq.), and the applicable regulations promulgated thereunder (California code of Regulations, Title 2, Section 7285.0 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code, Section 12900(a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations are incorporated into this agreement by reference and made a part hereof as if set forth in full. Each of the Recipient’s contractors and all subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreements as appropriate.
3. Recipient shall include the nondiscrimination and compliance provisions of this clause in all contracts and subcontracts to perform work under this agreement.
4. Recipient shall permit access to the records of employment, employment advertisements, application forms, and other pertinent data and records by STATE, the State Fair Employment and Housing Commission, or any other agency of the State of California designated by STATE, for the purposes of investigation to ascertain compliance with the Fair Employment section of this agreement.
5. Remedies for Willful Violation:
(a) STATE may determine a willful violation of the Fair Employment provision to have occurred upon receipt of a final judgment to that effect from a court in an action to which Recipient was a party, or upon receipt of a written notice from the Fair Employment and Housing Commission that it has investigated and determined that Recipient has violated the Fair Employment Practices Act and had issued an order under Labor Code Section 1426 which has become final or has obtained an injunction under Labor Code Section 1429.
Regional Early Action Planning (REAP),
Grant Suballocation Agreement,
City of Santa Clara
(b) For willful violation of this Fair Employment Provision, STATE shall have the right to terminate funding either in whole or in part, and any loss or damage sustained by STATE in securing the goods or services thereunder shall be borne and paid for by AGENCY and by the surety under the performance bond, if any, and STATE may deduct from any moneys due or thereafter may become due to Recipient, the difference between the price named in the Agreement and the actual cost thereof to STATE to cure Recipient’s breach of this agreement.
Regional Early Action Planning (REAP),
Grant Suballocation Agreement,
City of Santa Clara
ATTACHMENT E
Not Used
Regional Early Action Planning (REAP),
Grant Suballocation Agreement,
City of Santa Clara
ATTACHMENT F-1
TERMS & CONDITIONS OF USE FOR CITY INNOVATE PLATFORM
The Association of Bay Area Governments (“ABAG”) has entered into a Software as a Service Agreement with City Innovate, Inc. dated April 15, 2021 (the “ABAG Agr eement” which is attached to this Agreement as Attachment F-2), to provide access to a proprietary online platform (the “Platform”) that is intended to allow government agencies to:
Search profiles of consultants that have b een pre-approved to sit on the Regional Planning Consulting Bench, review their pricing, experience, work samples and DBE/SBE status. Streamline the informal vendor bi dding process when local rules allow, including functionality allowing for drafting and submitting requests for bids and addendums. Track progress on project milestones; and
Route invoices for approval.
During the term of the ABAG Agreement, ABAG will provide Recipient with one (1) set of logs in credentials for the Platform free of charge to utilize the features of the Platform listed above subject to the terms and conditions set forth in th is Attachment. Recipien t acknowledges that use of the Platform is provided only for Recipient’s own use and agrees not to use the Platform for the benefit of any third party.
Use of the Platform by Recipient will be subject to the terms and conditions of the ABAG Agreement which is incorporated herein by this reference.
ABAG makes no express or implied warranty regarding the Platform. Recipient assumes all risk of using the Platform and shall in demnify, hold harmless and defend ABAG against any claims made related to Recipient’s use of the Platform that was not required by ABAG.
ABAG reserves the right to require Recipient, through written notice of no less than 30 days, to utilize the Platform to track the proj ect milestones and submit i nvoices related to this Agreement as set forth in Attachments A-1 and A-2 and to assi st in the procurement of consulta nts to perform said services if Recipient elects to have ABAG administer that amount on behalf of Recipient to deliver the work outlined in Attachment A-1 in the timeframes outlined in A ttachment A-2. Said notice, if given, shall include information on how Recipient can obta in training in the use of the Pl atform and contact information for Recipient to request assistance with any questions about use of th e Platform. If at any time the Platform is unavailable through no fault of R ecipient, then Recipient may submit any progres s reports on project milestones and invoices required by this Agreement that are due during the time of said unavailability of the Platform via email to [email protected].
Recipient is responsible for enforcing its own procurement rules when directly procuring consultants using the Platform. ABAG makes no representation of the lega lity of procurements issued by Recipient using the Platform. ABAG’s procurement rules shall apply to all procurements by made by ABAG to perform Regional Early Action Planning (REAP),
Grant Suballocation Agreement,
City of Santa Clara
services if Recipient elects to ha ve ABAG administer that amount on be half of Recipient to deliver the work outlined in Attachment A-1 in the timeframes outlined in Attachment A-2.
Recipient acknowledges that the Platform is not intended for the storage of Sensitive Data, and Recipient agrees not to solicit or encourage the submission of Sensitive Data or itself submit Sensitive Data in connection with the Platform. “Sensitive Data” means: (i) Social Security or other tax identification numbers; (ii) account, credit or de bit card numbers, with or without any required security code, access code, PIN or password that woul d permit access to an individual’s financial account, and account information, including balances and transaction data; (iii) user names, passwords or other credentials for accessing any accounts on any third party systems or platforms; (iv) any personally-identifiable information or PII as defined by appl icable law; and (v) any other information with respect to which the unauthorized use or disclosure thereof would be reasonably likely to cause material loss or damage to any third party.
The Platform is not intended to be a data repository or archiving tool. Recipient is solely responsible for maintaining records of its direct procurements on the Platform and is required to comply with the California Public Records Act (Government Code §6250 et seq.).
Regional Early Action Planning (REAP),
Grant Suballocation Agreement,
City of Santa Clara
ATTACHMENT F-2
SOFTWARE AS A SERVICE AGREEMENT BY AND BETWEEN CITY INNOVATE, INC.
AND THE ASSOCIATION OF BAY AREA GOVERNMENTS DATED APRIL 15, 2021
City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
22-1078 Agenda Date: 10/18/2022
REPORT TO COUNCIL
SUBJECT
Action on Amendment No. 2 to the Agreement with Townsend Public Affairs, Inc. for Legislative Advocacy Services
COUNCIL PILLAR
Enhance Community Engagement and Transparency
BACKGROUND
The City of Santa Clara engages in a variety of legislative efforts that is consistent with Council Policy 052 Legislative Advocacy Position (LAP) Policy, including developing an annual legislative platform through annually adopted LAPs, advancing the City’s goals and policy positions with regional, state, and federal elected officials and agencies, participating in regional and state committees, boards, and commissions, responding to requests for legislative support or comments for bills, ballot measures, and initiatives, identifying budget opportunities and applying for grant funding to support City programs and infrastructure. In the absence of fulltime legislative City staff, consulting services enhances staff’s ability to continue to successfully implement the City’s legislative program and corresponding LAP Policy. The City Council (Council) approved ongoing funding in the amount of $95,000 in the City’s Fiscal Year (FY) 2021/22 and FY 2022/23 Biennial Operating Budget for consultant services to track and monitor proposed State and federal legislation that may impact the City.
In Fall 2019, the City conducted a competitive Request for Qualifications process and selected Townsend Public Affairs, Inc. (Townsend) out of seven firms that submitted proposals to provide the City with state and federal legislative advocacy services. Townsend is a state and federal legislative advocacy and grant writing firm that provides lobbying and funding services to public agencies and non-profit organizations throughout California. Townsend has represented over 200 public agencies, including cities, counties, transportation agencies, water and sanitation districts, school districts, community college districts, park and recreation districts, and other special districts, as well as non- profit organizations. The firm has secured over $2.5 billion in public sector funding for its clients and has had over 100 client-sponsored bills signed into law.
In January 2020, the City entered into a one-year agreement with Townsend (Attachment 1) for state and federal legislative advocacy services, including the following:
· Conducting detailed orientation
· Developing legislative strategy
· Implementing the legislative strategy
· Building and strengthening relevant relationships
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· Leveraging relationships for strategic advocacy plan
· Coordinating advocacy trips and legislative appointments · Tracking legislation of importance to the City and its many services · Budget funding opportunities and advocacy for the City’s interests · Grant application development and support
· Post-grant submittal advocacy
· Crafting testimony and position letters
· Drafting bill language
· Providing progress reports
· Preparing and filing lobbying disclosure reports
The agreement allows the City to exercise four (4) additional one-year options after the initial term for a total of five years. On January 26, 2021, the Council approved an Amendment No. 1 which extended the term of agreement by two years and increased the total not to exceed amount from $90,000 to $252,000. The agreement will term out on January 29, 2023 without any additional action.
DISCUSSION
Since the start of their engagement, Townsend has performed a wide range of advocacy services for the City. Townsend’s vast knowledge about the state and federal legislative processes, long standing relationships with elected officials and agencies, and experienced staff, including a team of grant writers, have provided staff with significant support in both legislative and operational areas of work.
Their support has resulted in saving countless hours of staff time, funding of City projects, and ensuring that the City is aware of and compliant with new state and federal regulations and corresponding deadlines.
Townsend’s 2021 and 2022 Deliverables and Future Work Efforts Below are notable work efforts that Townsend has completed for the City since their agreement was extended in January 2021:
· $2.725M for Bicycles Projects: Provided guidance and assisted with the preparation and submittal of 2021 federal Community Project Funding requests which resulted in the City being awarded $2,725,000 for the De La Cruz Blvd, Lick Mill Blvd, and Scott Blvd Bicycle Projects.
The City’s 2021 Community Project Funding request was submitted by Congressman Khanna. · $800K for Magical Bridge All-Inclusive Playground: Notified staff about the 2022 State of California budget earmark process, provided guidance and assisted with the submittal of four funding requests to Assembly Member Alex Lee and Senator Bob Wieckowski’s Offices, and provided post-submittal advocacy. As result of Townsend’s efforts, the City will receive $800,000 for the Magical Bridge All-Inclusive Playground at Central Park. The City’s funding request was submitted by Assembly Member Lee.
· $3.5M Pending for Flood Protection Project ($3M) and Microgrid Project ($500K):
Provided guidance and assisted with the submittal of four 2022 federal Community Project Funding requests to Congressman Ro Khanna and Senators Dianne Feinstein and Alex Padilla’s Offices. At the time of writing this report, the City has two Community Project Funding projects that are moving forward as part of the 2022 House and Senate appropriations City of Santa Clara Printed on 10/14/2022Page 2 of 5
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22-1078 Agenda Date: 10/18/2022
processes: A $3,000,000 request for an Anna Drive Neighborhood Flood Protection Project that is included in the House Transportation, House, and Urban Development appropriations bill that was approved by the House earlier this summer; and a $500,000 request for a Fire Station Microgrid Project in the Senate Appropriations earmark list that was approved by the Senate Appropriations Committee earlier this fall. Townsend is providing post-submittal advocacy for these requests. At the time of writing this report in late September, Congress has approved a Continuing Resolution that will fund the government until December 16, by which a full budget can be adopted. If Congress is able to reach a budget agreement during the post- election lame duck session, then the City’s earmarks should be incorporated into the final budget agreement, consistent with last year’s practice of accepting all approved earmarks from both Houses. The City’s Community Project Funding requests were submitted by Congressman Khanna and Senator Feinstein. It should be noted that Townend notified staff about Senators Feinstein and Padilla’s application process and all four of the City’s submitted projects were selected to move forward by one or more of the elected officials in the initial stage of the federal process which speaks to the quality of Townsend’s guidance to staff. · Provide quarterly legislative updates to the Council. · Meet with Councilmembers and departments to develop annual LAPs. · Provided daily COVID-19 updates during height of the pandemic. · Prepare bill summaries and recommendations for assigned Councilmember participation in the monthly Cities Association of Santa Clara County Legislative Action Committee meetings. · Prepare analysis and recommendations for annual League of CA Cities Conference resolutions which assigned Council voting delegates use to vote on behalf of the City. · Provide weekly state and federal legislative updates on priority bills. · Notify staff of potential grant opportunities.
· Advise staff and Council on all legislative matters and prepare corresponding documents like agenda reports, letters of support, etc.
Townsend’s services in the last few years have helped the City advance its goals and policy positions, including obtaining much needed funding for key projects like the De La Cruz Blvd, Lick Mill Blvd, and Scott Blvd Bicycle Projects and the Magical Bridge All-Inclusive Playground. With Townsend’s assistance, staff will continue to pursue funding opportunities for City projects, especially those without current funding sources.
There has also been a steady increase in legislative activity at the regional, state, and federal levels of government in recent years. For reference, over 4,500 bills were introduced by State legislators during the 2021-22 Regular Legislative Session and over 14,000 bills were introduced in the House of Representative and US Senate during the 117
th Congress. Staff anticipates this level of legislative activity to continue into 2023, which Townsend would advise and provide support for. Barring any unforeseen circumstances, Townsend expects the 2023-24 Regular Legislative Session and 118 th
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Congress to introduce a similar number of bills as have been in the current sessions.
After the General Election, it is anticipated that Congress will return to session to complete the work of the 117th Congress, which may include consideration of key legislation, as well as approving a series of appropriations bills that comprise the federal budget. Depending upon the outcome of the national election, when the 118th Congress is sworn into office, there will be significant work to be done. If the Democrats maintain their majorities in the House and Senate, then it is likely that they will continue to pursue an aggressive policy agenda that is largely aligned with the work they have done over the previous two years. Additionally, if Democrats maintain control, it is likely that there will be another round of Congressionally Directed Spending as part of the annual budget process. This process would likely be very similar to the federal earmark process that has occurred over each of the last two fiscal years.
Regardless of the outcome of the November General Election, Townsend anticipates that there will be opportunities to engage in the federal appropriations process next year. Additionally, Townsend anticipates that there will be a number of policy bills that will be introduced that will have the potential to impact states and local governments, including in the areas of environmental protection, transportation, housing, and economic development. Townsend and the City Manager’s Office plan to meet with Councilmembers and key departmental staff later this year to discuss and identify new legislative priorities in preparation for the 2023 legislative year.
For these reasons, staff recommends amending Townsend’s agreement to extend the term through January 29, 2024 and increase the total not to exceed amount by $90,000 to fund the extension.
Townsend’s current annual rate for Year 3 (January 30, 2022 through January 29, 2023) of the Agreement totals $90,000 and is based on a monthly retainer fee of $7,500 that is inclusive of all services and any related travel. Townsend has agreed to apply the same rate to Year 4 of the Agreement (January 30, 2023 through January 29, 2024). If approved by Council, this would bring the total four-year agreement amount to $342,000.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
The existing agreement with Townsend has a total not to exceed amount of $252,000. Staff proposes to increase the value of the contract by $90,000 so the amended agreement would have a revised not to exceed amount of $342,000. Existing funds ($95,000) are available in the FY 2022/23 Adopted Operating Budget under the City Manager’s Office’s Intergovernmental Relations and Advocacy budget.
COORDINATION
This report has been coordinated with the City Attorney’s Office and Finance Department.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website City of Santa Clara Printed on 10/14/2022Page 4 of 5
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22-1078 Agenda Date: 10/18/2022
and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> .
RECOMMENDATION
Authorize the City Manager to execute Amendment No. 2 to the Agreement with Townsend Public Affairs, Inc. to extend the term of the agreement through January 29, 2024 and increase the total not to exceed amount from $252,000 to $342,000.
Reviewed by: Christine Jung, Assistant to the City Manager Approved by: Rajeev Batra, City Manager
ATTACHMENTS
1. Original Agreement with Townsend
2. Amendment No. 1 to the Agreement with Townsend
3. Proposed Amendment No. 2 to the Agreement with Townsend City of Santa Clara Printed on 10/14/2022Page 5 of 5
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EBIX Insurance No. *S200004470
AGREEMENT FOR SERVICES
BETWEEN THE
CITY OF SANTA CLARA, CALIFORNIA,
AND
TOWNSEND PUBLIC AFFAIRS, INC.
PREAMBLE
This Agreement is enter~d into between the City of Santa Clara, California, a chartered California municipal corporation (City) and Townsend Public Affairs, Inc·., a California corporation, (Contractor). City and Contractor may be referred to individually as a "Party" or collectively as the "Parties" or the "Parties to this Agreement."
RECITALS
A City desires to secure the services more fully described in this Agreement, at Exhibit A, entitled "Scope of Services";
B. Contractor represents that it, and its subcontractors, if any, have the professional qualifications, expertise, necessary licenses and desire to provide certain goods and/or required services of the quality and type which meet objectives and requirements of City; and,
C. The Parties have specified herein the terms and conditions under which such services will be provided and paid for.
The Parties agree as follows:
AGREEMENT TERMS AND CONDITIONS
1. AGREEMENT DOCUMENTS
The documents forming the entire Agreement between City and Contractor shall consist of these Terms and Conditions and the following Exhibits, which are hereby incorporated into this Agreement by this reference:
Exhibit A - Scope of Services
Exhibit B - Schedule of Fees
Exhibit C - Insurance Requirements
Exhibit D- Labor Compliance Addendum (if applicable)
This Agreement, including the Exhibits set forth above, contains all the agreements, representations and understandings of the Parties, and supersedes and replaces any previous agreements, representations and understandings, Agreement with Townsend Public Affairs, Inc.
Rev. 07-01-18
whether oral or written. In the event of any inconsistency between the provisions of any of the Exhibits and the Terms and_ Conditions, the Terms and Conditions shall govern and control.
2. TERM OF AGREEMENT
Unless otherwise set forth in this Agreement or unless this paragraph is subsequently modified by a written amendment to this Agreement, the term of this Agreement shall begin on January 30, 2020 and terminate on January 29, 2021. The City reserves the right to exercise four (4) additional one-year options after the initial term for a total of five years. The selected consultant may request adjustments to the compensation rates after the initial term. Compensation adjustments shall be subject to the City's approval and must be tied to a relevant price index.
3. SCOPE OF SERVICES & PERFORMANCE SCHEDULE
Contractor shall perform those Services specified in Exhibit A within the time stated in Exhibit A. Time is of the essence.
4. WARRANTY
Contractor expressly warrants that all materials and services covered by this Agreement shall be fit for the purpose intended, shall be free from defect and shall conform to the specifications, requirements and instructions upon which this Agreement is based. Contractor agrees to promptly replace or correct any incomplete, inaccurate or defective Services at no further cost to City when defects are due to the negligence, errors or omissions of Contractor. If Contractor fails to promptly correct or replace materials or services, City may make corrections or replace materials or services and charge Contractor for the cost incurred by City.
5. QUALIFICATIONS OF CONTRACTOR- STANDARD OF CARE
Contractor represents and maintains that it has the expertise in the professional calling necessary to perform the Services, and its duties and obligations, expressed and implied, contained herein, and City expressly relies upon Contractor's represehtations regarding its skills and knowledge. Contractor shall perform such Services and duties in conformance to and consistent with the professional standards of a specialist in the same discipline in the State of California.
6. COMPENSATION AND PAYMENT
In consideration for Contractor's complete performance of Services, City shall pay Contractor for all materials provided and Services rendered by Contractor in accordance with Exhibit B, entitled "SCHEDULE OF FEES." The maximum compensation of this Agreement is ninety thousand dollars ($90,000), subject to Agreement with rownsend Public Affairs, Inc. Page 2
Rev. 07-01-18 ·
budget appropriations, which includes all payments that may be authorized for Services and for expenses, supplies, materials and equipment required to perform the Services. All work perfonned or materials provided in excess of the maximum compensation shall be at Contractor's expense. Contractor shall not be entitled to any payment above the maximum compensation under any circumstance.
7. TERMINATION
A Tennination for Convenience. City shall have the right to tenninate this Agreement, without cause or penalty, by giving not less than Thirty (30) days' prior written notice to Contractor.
B. Termination for Default. If Contractor fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided by law, City may terminate this Agreement immediately upon written notice to Contractor.
C. Upon termination, each Party shall assist the other in arranging an orderly transfer and close-out of services. As soon as possible following the notice of tennination, but no later than ten (1 0) days after the notice of termination, Contractor will deliver to City all City information or material that Contractor has in its possession.
8. ASSIGNMENT AND SUBCONTRACTING
City and Contractor bind themselves, their successors and assigns to all covenants of this Agreement. This Agreement shall not be assigned or transferred without the prior written approval of City. Contractor shall not hire subcontractors without express written permission from City.
Contractor shall be as fully responsible to City for the acts and omissions of its subcontractors, and of persons either directly or indirectly employed by them, as Contractor is for the acts and omissions of persons directly employed by it.
9. NO THIRD PARTY BENEFICIARY
This Agreement shall not be construed to be an agreement for the benefit of any third party or parties and no third party or parties shall have any claim or right of action under this Agreement for any cause whatsoever.
10. INDEPENDENT CONTRACTOR
Contractor and all person(s) employed by or contracted with Contractor to furnish labor and/or materials under this Agreement are independent contractors and do not act as agent(s) or employee(s) of City. Contractor has full rights to manage its employees in their perfonnance of Services under this Agreement.
Agreement with Townsend Public Affairs, Inc.
Rev. 07-01-18
11. CONFIDENTIALITY OF MATERIAL
All ideas, memoranda, specifications, plans, manufacturing procedures, data, drawings, descriptions, documents, discussions or other information developed or received by or for Contractor and all other written information submitted to Contractor in connection with the performance of this Agreement shall be held confidential by Contractor and shall not, without the prior written consent of City, be used for any purposes other than the performance of the Services nor be disclosed to an entity not connected with performance of the Services. Nothing furnished to Contractor which is otherwise known to Contractor or becomes generally known to the related industry shall be deemed confidential.
12. OWNERSHIP OF MATERIAL
All material, which shall include, but not be limited to, data, sketches, tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps, calculations, photographs, reports, designs, technology, programming, works of authorship and other material developed, collected, prepared or caused to be prepared under this Agreement shall be the property of City but Contractor may retain and use copies thereof. City shall not be limited in any way or at any time in its use of said material. However, Contractor shall not be responsible for damages resulting from the use of said material for work other than Project, including, but not limited to, the release of this material to third parties.
13. RIGHT OF CITY TO INSPECT RECORDS OF CONTRACTOR
City, through its authorized employees, representatives or agents shall have the right during the term of this Agreement and for four (4) years from the date of final payment for goods or services provided under this Agreement, to audit the books and records of Contractor for the purpose of verifying any and all charges made by Contractor in connection with Contractor compensation under this Agreement, including termination of Contractor. Contractor agrees to maintain sufficient books and records in accordance with generally accepted accounting principles to establish the correctness of all charges submitted to City. Any expenses not so recorded shall be disallowed by City. Contractor shall bear the cost of the audit if the audit determines that there has been a substantial billing deviation in excess of five (5) percent adverse to the City.
Contractor shall submit to City any and all reports concerning its performance under this Agreement that may be requested by City in writing. Contractor agrees to assist City in meeting City's reporting requirements to the State and other agencies with respect to Contractor's Services hereunder.
14. HOLD HARMLESS/INDEMNIFICATION
A. To the extent permitted by law, Contractor agrees to protect, defend, hold harmless and indemnify City, its City Council, commissions, officers, employees, volunteers and agents from and against any claim, injury, Agreement with Townsend Public Affairs, Inc.
Rev. 07-01-18
liability, loss, cost, and/or expense or damage, including all costs and attorney's fees in providing a defense to any such claim or other action, and whether sounding in law, contract, tort, or equity, in any manner arising from, or alleged to arise in whole or in part from, or in any way connected with the Services performed by Contractor pursuant to this Agreement - including claims of any kind by Contractor's employees or persons contracting with Contractor to perfonn any portion of the Scope of Services - and shall expressly include passive or active negligence by City connected with the Services. However, the obligation to indemnify shall not apply if such liability is ultimately adjudicated to have arisen through the sole active negligence or sole willful misconduct of City; the obligation to defend is not similarly limited.
B. Contractor's obligation to protect, defend, indemnify, and hold harmless in full City and City's employees, shall specifically extend to any and all employment-related claims of any type brought by employees, contractors, subcontractors or other agents of Contractor, against City (either alone, or jointly with Contractor), regardless of venue/jurisdiction in which the claim is brought and the manner of relief sought.
C. To the extent Contractor is obligated to provide health insurance coverage to its employees pursuant to the Affordable Care Act ("Act") and/or any other similar federal or state law, Contractor warrants that it is meeting its obligations under the Act and will fully indemnify and hold harmless City for any penalties, fines, adverse rulings, or tax payments associated with Contractor's responsibilities under the Act.
15. INSURANCE REQUIREMENTS
During the term of this Agreement, and for any time period set forth in Exhibit C, Contractor shall provide and maintain in full force and effect, at no cost to City, insurance policies as set forth in Exhibit C.
16. WAIVER
Contractor agrees that waiver by City of any one or more of the conditions of performance under this Agreement shall not be construed as waiver(s) of any other condition of performance under this Agreement. Neither City's review, acceptance nor payments for any of the Services required under this Agreement shall be constructed to operate as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement.
Agreement with Townsend Public Affairs, Inc.
Rev. 07-01-18
17. NOTICES
All notices to the Parties shall, unless otherwise requested in writing, be sent to City addressed as follows:
City of Santa Clara
Attention: Christine Jung, City Manager's Office
1500 Warburton Aven·ue
Santa Clara, CA 95050
and by e-mail at [email protected], and
[email protected]
And to Contractor addressed as follows:
Townsend Public Affairs, Inc.
Attention: Christopher Townsend, President
925 L Street, Suite 1404
Sacramento, CA 95814
and by e-mail at [email protected], and [email protected]
The workday the e-mail was sent shall control the date notice was deemed given.
An e-mail transmitted after 1 :OO p.m. on a Friday shall be deemed to have been transmitted on the following business day.
18. COMPLIANCE WITH LAWS
Contractor shall comply with all applicable laws and regulations of the federal, state and local government, including but not limited to "The Code of the City of Santa Clara, California" ("SCCC"). In particular, Contractor's attention is called to the regulations regarding Campaign Contributions (SCCC Chapter 2.130), Lobbying (SCCC Chapter 2.155), Minimum Wage (SCCC Chapter 3.20), Business Tax Certificate (SCCC section 3.40.060), and Food and Beverage Service Worker Retention (SCCC Chapter 9.60), as such Chapters or Sections may be amended from time to time or renumbered. Additionally Contractor has read and agrees to comply with City's Ethical Standards (http://santaclaraca.gov/home/showdocument7id=58299).
19. CONFLICTS OF INTEREST
Contractor certifies that to the best of its knowledge, no City officer, employee or authorized representative has any financial interest in the business of Contractor and that no person associated with Contractor has any interest, direct or indirect, which could conflict with the faithful performance of this Agreement. Contractor is familiar with the provisions of California Government Code section 87100 anq Agreement with Townsend Public Affairs, Inc.
Rev. 07-01-18
following, and certifies that it does not know of any facts which would violate these code provisions. Contractor will advise City if a conflict arises.
20. FAIR EMPLOYMENT
Contractor shall not discriminate against any employee or applicant for employment because of race, sex, color, religion, religious creed, national origin, ancestry, age, gender, marital status, physical disability, mental disability, medical condition, genetic information, sexual orientation, gender expression, gender identity, military and veteran status, or ethnic background, in violation of federal, state or local law.
21. NO USE OF CITY NAME OR EMBLEM
Contractor shall not use City's name, insignia, or emblem, or distribute any information related to services under this Agreement in any magazine, trade paper, newspaper or other medium without express written c~nsent of City.
22. GOVERNING LAW AND VENUE
This Agreement shall be governed and construed in accordance with the statutes and laws of the State of California. The venue of any suit filed by either Party shall be vested in the state courts of the County of Santa Clara, or if appropriate, in the United.States District Court, Northern District of California, San Jose, Califqrnia.
23. SEVERABILITY CLAUSE
In case any one or more of the provisions in this Agreement shall, for any reason, be held invalid, illegal or unenforceable in any respect, it shall not affect the validity of the other provisions, which shall remain in full force and effect.
24. AMENDMENTS
This Agreement may only be modified by a written amendment duly authorized and executed by the Parties to this Agreement.
Agreement with Townsend Public Affairs, Inc.
Rev. 07-01-18
25. COUNTERPARTS
This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but both of which shall constitute one and the same instrument.
The Parties acknowledge and accept the terms and conditions of this Agreement as evidenced by the following signatures of their duly authorized representatives.
Approved as to Form:
BRIAN DOYLE
City Attorney
CITY OF SANTA CLARA, CALIFORNIA
a chartered California municipal corporation
"CITY"
AJ. SANTANA
City Manager
1500 Warburton Avenue
Santa Clara, CA 95050
Telephone: (408) 615-2210
Fax: (408) 241-6771
TOWNSEND PUBLIC AFFAIRS, INC.
A CALIFORNIA CORPORATION
By (Sign~;:~: ~~:.l
Title: President
Principal Place of 925 L Street, Suite 1404, Sacramento, CA Business Address: 95814 ----------------
Em a i I Address: [email protected]
Telephone: (916) 447-4086
Fax: (916) 244-0209
"CONTRACTOR"
Agreement with Townsend Public Affairs, Inc.
Rev. 07-01-18
EXHIBIT A
SCOPE OF SERVICES
The Services to be performed for the City by the Contractor under this Agreement are set forth below.
Contractor shall provide state and federal legislative advocacy service.s, including:
• Conduct detailed orientation
• Develop legislative strategy
• Implement the legislative strategy
• Build and strengthen relevant relationships
• Leverage relationships for strategic advocacy plan
• Coordinate advocacy trips
• Track legislation
• Budget funding opportunities
• Grant application development and support
• Post-grant submittal advocacy
• Craft testimony and position letters
• Draft bill language
• Provide progress reports
• Prepare and file lobbying disclosure reports
Agreement with Townsend Public Affairs, lnc./Exhibit A-Scope of Services Rev. 07-01-18
EXHIBIT B
SCHEDULE OF FEES
The maximum compensation the City will pay the Consultant for all professional fees, costs, and expenses provided under this Agreement shall not exceed ninety thousand dollars ($90,000) during the term of the Agreement.
Contractor will bill City on a monthly basis for Services provided by Contractor during the preceding month on an invoice and in a format approved by City and subject to verification and approval by City. City will pay Contractor within thirty (30) days of City's receipt of an approved invoice.
The monthly fee for the full scope of services detailed under Exhibit A shall be seven thousand and five hundred dollars ($7,500). The monthly fee shall include all reasonable business and travel expenses.
Agreement with Townsend Public Affairs, lnc./Exhibit 8-Schedule of Fees Page 1 Rev. 07-01-18 ·
EXHIBITC
INSURANCE REQUIREMENTS
Without limiting the Contractor's indemnification of the City, and prior to commencing any of the Services required under this Agreement, the Contractor shall provide and maintain in full force and effect during the period of performance of the Agreement and for twenty-four (24) months following acceptance by the City, at its sole cost and expense, the following insurance policies from insurance companies authorized to do business in the State of California. These policies shall be primary insurance as to the City of Santa Clara so that any other coverage held by the City shall not contribute to any loss under Contractor's insurance. The minimum coverages, provisions and endorsements are as follows:
A. COMMERCIAL GENERAL LIABILITY INSURANCE
1. Commercial General Liability Insurance policy which provides coverage at least as broad as Insurance Services Office form CG 00 01. Policy limits are subject to review, but shall in no event be less than, the following:
$1,000,000 Each Occurrence
$2,000,000 General Aggregate
$2,000,000 Products/Completed Operations Aggregate
$1,000,000 Personal Injury
2. Exact structure and layering of the coverage shall be left to the discretion of Contractor; however, any excess or umbrella policies used to meet the required limits shall be at least as broad as the underlying coverage and shall otherwise follow form.
3. The following provisions shall apply to the Commercial Liability policy as well as any umbrella policy maintained by the Contractor to comply with the insurance requirements of this Agreement:
a. Coverage shall be on a "pay on behalf' basis with defense costs payable in addition to policy limits;
b. There shall be no cross liability exclusion which precludes coverage for claims or suits by one insured against another; and c. Coverage shall apply separately to each insured against whom a claim is made or a suit is brought, except with respect to the limits of liability.
B. BUSINESS AUTOMOBILE LIABILITY INSURANCE
Business automobile liability insurance policy which provides coverage at least as broad as ISO form CA 00 01 with policy limits a minimum limit of not less than one million dollars ($1,000,000) each accident using, or providing coverage at least as broad as, Insurance Services Office form CA 00 01. Liability coverage shall apply to all owned (if any), non-owned and hired autos.
In the event that the Work being performed under this Agreement involves transporting of hazardous or regulated sub~tances, hazardous or regulated wastes and/or hazardous or regulated materials, Contractor and/or its subcontractors involved in such activities shall provide coverage with a limit of one million dollars ($1,000,000) per accident covering transportation of such materials by the addition to the Business Auto Coverage Policy of Environmental Impairment Endorsement MCS90 or Insurance Services Office endorsement form CA 99 48, which amends the pollution exclusion in the standard Business Automobile Policy to cover pollutants that are in or upon, being transported or towed by, being loaded onto, or being unloaded from a covered auto.
C. WORKERS' COMPENSATION
1. Workers' Compensation Insurance Policy as required by statute and employer's liability with limits of at least one million dollars ($1,000,000) policy limit Bodily Injury by disease, one million dollars ($1,000,000) each accident/Bodily Injury and one million dollars ($1,000,000) each employee Bodily Injury by disease.
2. The indemnification and hold harmless obligations of Contractor included in this Agreement shall not be limited in any way by any limitation on the amount or type of damage, compensation or benefit payable by or for Contractor or any subcontractor under any Workers' Compensation Act(s), Disability Benefits Act(s) or other employee benefits act(s).
3. This policy must include a Waiver of Subrogation in favor of the City of Santa Clara, its City Council, commissions, officers, employees, volunteers and agents.
D. PROFESSIONAL LIABILITY
Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against negligent acts, errors or omissions of the Contractor. Covered services as designated in the policy must specifically include work performed under this agreement. Coverage shall be in an amount of not less than one million dollars ($1,000,000) per claim or two million dollars ($2,000,000) aggregate. Any coverage containing a deductible or self-retention must first be approved in writing by the City Attorney's Office.
E. COMPLIANCE WITH REQUIREMENTS
All of the following clauses and/or endorsements, or similar provisions, must be part of each commercial general liability policy, and .each umbrella or excess policy.
1. Additional Insureds. City of Santa Clara, its City Council, commissions, officers, employees, volunteers and agents are hereby added as additional insureds in respect to liability arising out of Contractor's work for City, using Insurance Services Office (ISO) Endorsement CG 20 10 11 85, or the combination of CG 20 1 0 03 97 and CG 20 37 1 0 01, or its equivalent.
2. Primary and non-contributing. Each insurance policy provided by Contractor shall contain language or be endorsed to contain wording making it primary insurance as respects to, and not requiring contribution from, any other insurance which the indemnities may possess, including any self-insurance or self-insured retention they may have. Any other insurance indemnities may possess shall be considered excess insurance only and shall not be called upon to contribute with Contractor's insurance.
3. Cancellation.
4. a. Each insurance policy shall contain language or be endorsed to reflect that no cancellation or modification of the coverage provided due to non-payment of premiums shall be effective until written notice has been given to City at least ten (10) days prior to the effective date of such modification or cancellation. In the event of non-renewal, written notice shall be given at least ten (10) days prior to the effective date of non-renewal.
b. Each insurance policy shall contain language or be endorsed to reflect that no cancellation or modification of the coverage provided for any cause save and except non-payment of premiums shall be effective until written notice has been given to City at least thirty (30) days prior to the effective date of such modification or cancellation. In the event of non-renewal, written notice shall be given at least thirty (30) days prior to the effective date of non renewal.
Other Endorsements. Other endorsements may be required for policies other than the commercial general liability policy if specified in the description of required insurance set forth in Sections A through E of this Exhibit C, above.
F. ADDITIONAL INSURANCE RELATED PROVISIONS
Contractor and City agree as follows:
1. Contractor agrees to ensure that subcontractors, and any other party involved with the Services, who is brought onto or involved in the performance of the Services by Contractor, provide the same minimum insurance coverage required of Contractor, except as with respect to limits. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this Agreement. Contractor agrees that upon request by City, all agreements with, and insurance compliance documents provided by, such subcontractors and others engaged in the project will be submitted to City for review.
2. Contractor agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Contractor for the cost of additional insurance coverage required by this Agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto.
3. The City reserves the right to withhold payments from the Contractor in the event of material noncompliance with the insurance requirements set forth in this Agreement. ·
G. EVIDENCE OF COVERAGE
Prior to commencement of any Services under this Agreement, Contractor, and each and every subcontractor (of every tier) shall, at its sole cost and expense, provide and maintain not less than the minimum insurance coverage with the endorsements and deductibles indicated in this Agreement. Such insurance coverage shall be maintained with insurers, and under forms of policies, satisfactory to City and as described in this Agreement. Contractor shall file with the City all certificates and endorsements for the required insurance policies for City's approval as to adequacy of the insurance protection.
H. EVIDENCE OF COMPLIANCE
Contractor or its insurance broker shall provide the required proof of insurance compliance, consisting of Insurance Services Office (ISO) endorsement forms or their equivalent and the ACORD form 25-S certificate of insurance (or its equivalent), evidencing all required coverage shall be delivered to City, or its representative as set forth below, at or prior to execution of this Agreement.
Upon City's request, Contractor shall submit to City copies of the actual insurance policies or renewals or replacements. Unless otherwise required by the terms of this Agreement, all certificates, endorsements, coverage verifications and other items required to be delivered to City pursuant to this Agreement shall be mailed to:
EBIX Inc.
City of Santa Clara City Manager's Office
P.O. Box 100085- S2 or 1 Ebix Way
Duluth, GA 30096 John's Creek, GA 30097
Telephone number: 951-766-2280
Fax number: 770-325-0409
Email address: [email protected]
I. QUALIFYING INSURERS
All of the insurance companies providing insurance for Contractor shall have, and provide written proof of, an A M. Best rating of at least A minus 6 (A- VI) or shall be an insurance company of equal financial stability that is approved by the City or its insurance compliance representatives.
Ebix Insurance No. S200004470
AMENDMENT NO. 1
TO THE AGREEMENT FOR SERVICES
BETWEEN THE
CITY OF SANTA CLARA, CALIFORNIA,
AND
TOWNSEND PUBLIC AFFAIRS, INC.
PREAMBLE
This agreement ("Amendment No. 1 ") is entered into between the City of Santa Clara, California, a chartered California municipal corporation (City) and Townsend Public Affairs , Inc., a California corporation , (Contractor) . City and Contractor may be referred to individually as a "Party" or collectively as the "Parties" or the "Parties to this Agreement."
RECITALS
A. The Parties previously entered into an agreement entitled "Agreement for Services between the City of Santa Clara, California, and Townsend Public Affairs , Inc.", dated February 5, 2020 (Agreement); and B. The Parties entered into the Agreement for the purpose of having Contractor provide legislative advocacy services, and the Parties now wish to amend the Agreement to (a) extend the term of the Agreement through January 29, 2023; and (b) to increase the maximum compensation of this Agreement by $162,000 for a total of $252 ,000.
NOW, THEREFORE , the Parties agree as follows :
AMENDMENT TERMS AND CONDITIONS
1. Section 2 of the Agreement, entitled "TERM OF AGREEMENT" is amended to read as follows:
Unless otherwise set forth in this Agreement or unless this paragraph is subsequently modified by a written amendment to this Agreement , the term of this Agreement shall begin on January 30, 2020 and terminate on January 29, 2023. The City reserves the right to exercise two (2) additional one-year options after the initial term for a total of five years. The selected consultant may request adjustments to the compensation rates after the initial term. Compensation adjustment shall be subject to the City's approval and must be tied to a relevant price index.
2. Section 6 of the Agreement, entitled "COMPENSATION AND PAYMENT" is amended to read as follows :
Amendment No. 1 to Agreement/Townsend Public Affairs Inc.
Rev. 10/25/19
In consideration for Contractor's complete performance of Services, City shall pay Contractor for all materials provided · and Services rendered by Contractor in accordance with Exhibit B, entitled "SCHEDULE OF FEES." The maximum compensation of this agreement is two hundred and fifty-two thousand dollars ($252,000), subject to budget appropriations, which includes all payments that may be authorized for Services and for expenses, supplies, materials, and equipment required to perform the Services . All work performed of materials provided in excess of the maximum compensation shall be at Contractor's expense. Contractor shall not be entitled to any payment above the maximum compensation under any circumstance.
3. Exhibit B of the Agreement, entitled "SCHEDULE OF FEES" is amended to read as follows:
The maximum compensation the City will pay the Contractor for all professional fees, costs, and expenses provided under this Agreement shall not exceed two hundred and fifty-two thousand dollars ($252,000) during the term of the Agreement. In no event shall the amount billed to City by Contractor for services under this Agreement exceed ninety thousand dollars ($90,000) for Year One of the initial term; seventy-two thousand dollars ($72,000) for Year Two of the initial term; and ninety thousand dollars ($90,000) for Year Three of the initial term, subject to annual budget appropriations .
Contractor will bill City on a monthly basis for Services provided by Contractor during the preceding month on an invoice and in a format approved by City and subject to verification and approval by City. City will pay Contractor within (30) days of City's receipt of an approved invoice.
The monthly fee for the full scope of services detailed under Exhibit A for Year One of the initial term (January 30, 2020 - January 29, 2021) shall be seven thousand and five hundred dollars ($7,500); for Year Two of the initial term (January 30, 2021 - January 29, 2022) shall be six thousand dollars ($6,000); and for Year Three of the initial term (January 30, 2022 - January 29, 2023) shall be seven thousand and five hundred dollars ($7,500) . The monthly fee shall include all reasonable and travel expenses.
4. Except as set forth herein, all other terms and conditions of the Agreement shall remain in full force and effect. In. case of a conflict in the terms of the Agreement and this Amendment No. 1, the provisions of this Amendment No. 1 shall control.
Amendment No. 1 to Agreement/Townsend Public Affairs, Inc.
Rev. 10/25/2019
The Parties acknowledge and accept the terms and conditions of this Amendment No. 1 as evidenced by the following signatures of their duly authorized representatives .
SRI N DOYLE
City Attorney
CITY OF SANTA CLARA, CALIFORNIA
a chartered California municipal corporation
h./ DEANN J SANTANA
'J City Man er
"CITY"
1500 Warburton Avenue
Santa Clara , CA 95050
Telephone: (408) 615-2210
Fax: (408) 241-6771
TOWNSEND PUBLIC AFFAIRS, INC.
a California corporation
By (Signature):/
Dated : Jan~r~, 2021 1
Name: _C_h __ · _-o~p-~I _T_o_w-1_n=s=e=n-d_ -_ -_-_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ -_ Title : President
Principal Place of 925 L Street, Suite 1404,
Business Address : Sacramento, CA 95814
Email Address : [email protected]
Telephone: (916) 447-4086
Fax: (916) 244-0209
"CONTRACTOR"
Amendment No. 1 to Agreement/Townsend Public Affairs, Inc.
Rev. 10/25/2019
Amendment No. 2 to Agreement/Townsend Public Affairs, Inc. Page 1 Rev. 10/25/19
Ebix Insurance No. S200004470
AMENDMENT NO. 2
TO THE AGREEMENT FOR SERVICES
BETWEEN THE
CITY OF SANTA CLARA, CALIFORNIA,
AND
TOWNSEND PUBLIC AFFAIRS, INC.
PREAMBLE
This agreement (“Amendment No. 2”) is entered into between the City of Santa Clara, California, a chartered California municipal corporation (City) and Townsend Public Affairs, Inc., a California corporation, (Contractor). City and Contractor may be referred to individually as a “Party” or collectively as the “Parties” or the “Parties to this Agreement.”
RECITALS
A. The Parties previously entered into an agreement entitled “Agreement for Services between the City of Santa Clara, California, and Townsend Public Affairs, Inc.”, dated February 5, 2020 (Agreement);
B. The Agreement was previously amended by Amendment No. 1, dated January 29, 2021, and is again amended by this Amendment No. 2. The Agreement and all previous amendments are collectively referred to herein as the “Agreement as Amended”; and
C. The Parties entered into the Agreement as Amended for the purpose of having Contractor provide legislative advocacy services, and the Parties now wish to amend the Agreement as Amended to (a) extend the term of the Agreement through January 29, 2024; and (b) to increase the maximum compensation of tis Agreement by $90,000 for a total of $342,000.
NOW, THEREFORE, the Parties agree as follows:
AMENDMENT TERMS AND CONDITIONS
1. Section 2 of the Agreement as Amended, entitled “TERM OF AGREEMENT” is amended to read as follows:
Unless otherwise set forth in this Agreement or unless this paragraph is subsequently modified by a written amendment to this Agreement, the term of this Agreement shall begin on January 30, 2020 and terminate on January 29, 2024. The City reserves the right to exercise one (1) additional one-year option after the initial term for a total of five years. The selected consultant may request adjustments to the compensation rates after the initial term. Compensation -82:1547Ā.7;36893Ā0-*Ā#)"!/'#%Ȁ)$#,Ȁ$ ##Ȁ+ ,,Ȁ)('$!"&!(+.) Amendment No. 2 to Agreement/Townsend Public Affairs, Inc. Page 2 Rev. 10/25/2019
adjustment shall be subject to the City’s approval and must be tied to a relevant price index.
2. Section 6 of the Agreement. Entitled “COMPENSATION AND PAYMENT” is amended to read as follows:
In consideration for Contractor's complete performance of Services, City shall pay Contractor for all materials provided and Services rendered by Contractor in accordance with Exhibit B, entitled "SCHEDULE OF FEES." The maximum compensation of this agreement is three hundred and forty-two thousand dollars ($342,000), subject to budget appropriations, which includes all payments that may be authorized for Services and for expenses, supplies, materials, and equipment required to perform the Services. All work performed of materials provided in excess of the maximum compensation shall be at Contractor's expense. Contractor shall not be entitled to any payment above the maximum compensation under any circumstance.
3. Exhibit B of the Agreement, entitled "SCHEDULE OF FEES" is amended to read as follows:
The maximum compensation the City will pay the Contractor for all professional fees, costs, and expenses provided under this Agreement shall not exceed three hundred and forty-two thousand dollars ($342,000) during the term of the Agreement. In no event shall the amount billed to City by Contractor for services under this Agreement exceed ninety thousand dollars ($90,000) for Year One of the initial term; seventy-two thousand dollars ($72,000) for Year Two of the initial term; ninety thousand dollars ($90,000) for Year Three of the initial term; and ninety thousand dollars ($90,000) for Year Four of the initial term, subject to annual budget appropriations.
Contractor will bill City on a monthly basis for Services provided by Contractor during the preceding month on an invoice and in a format approved by City and subject to verification and approval by City. City will pay Contractor within (30) days of City's receipt of an approved invoice.
The monthly fee for the full scope of services detailed under Exhibit A for Year One of the initial term (January 30, 2020 - January 29, 2021) shall be seven thousand and five hundred dollars ($7,500); for Year Two of the initial term (January 30, 2021 - January 29, 2022) shall be six thousand dollars ($6,000); for Year Three of the initial term (January 30, 2022 - January 29, 2023) shall be seven thousand and five hundred dollars ($7,500); and for Year Four of the initial term (January 30, 2023- January 29, 2024) shall be seven thousand and five hundred dollars ($7,500). The monthly fee shall include all reasonable and travel expenses.
-82:1547Ā.7;36893Ā0-*Ā#)"!/'#%Ȁ)$#,Ȁ$ ##Ȁ+ ,,Ȁ)('$!"&!(+.) Amendment No. 2 to Agreement/Townsend Public Affairs, Inc. Page 3 Rev. 10/25/2019
4. Except as set forth herein, all other terms and conditions of the Agreement as Amended shall remain in full force and effect. In case of a conflict in the terms of the Agreement as Amended and this Amendment No. 2, the provisions of this Amendment No. 2 shall control.
The Parties acknowledge and accept the terms and conditions of this Amendment No. 2 as evidenced by the following signatures of their duly authorized representatives.
CITY OF SANTA CLARA, CALIFORNIA
a chartered California municipal corporation
Approved as to Form: Dated:
Office of the City Attorney
City of Santa Clara
Rajeev Batra
City Manager
1500 Warburton Avenue
Santa Clara, CA 95050
Telephone: (408) 615-2210
Fax:
(408) 241-6771
“CITY”
TOWNSEND PUBLIC AFFAIRS, INC.
a California corporation
Dated:
By (Signature):
Name: Christopher Townsend
Title: President
Principal Place of
Business Address:
925 L Street, Suite 1404
Sacramento, CA 95814
Email Address: ChristopherTownsend @townsendpa.com
Telephone: (916) 447-4086
Fax: (916) 244-0209
“CONTRACTOR”
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City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
22-940 Agenda Date: 10/18/2022
REPORT TO COUNCIL
SUBJECT
Informational Report on 2022 Q3 Legislative Updates
COUNCIL PILLAR
Enhance Community Engagement and Transparency
BACKGROUND
On October 9, 2018, the City Council adopted Resolution No. 18-8611 to approve a Legislative Advocacy Position (LAP) Policy (Attachment 1). The LAP Policy establishes clear guidelines for advancing City goals and positions through legislative review and advocacy at the regional, state, and federal levels of government. The policy also provides guidance for City officials who serve on regional, state, and national boards, committees, and commissions when they are asked to review public policy matters and issues.
The Council is required to annually adopt or update LAPs at the beginning of the calendar year to identify specific legislative priorities outside of the LAP Policy’s legislative guiding principles. On April 20, 2022, the City Council adopted ten (10) LAPs for 2022 on the following key issues:
· Broadband, Cable Services, and Wireless Facilities
· COVID-19 Legislation
· Energy Legislation, Regulations and Issues
· Housing
· Human Resources and Public Sector Employment
· Public Safety
· Regional Issues and Collaboration
· Sustainability and Environmental Protection
· Transportation Issues
· Water Supply and Conservation
The LAP Policy also requires staff to provide quarterly legislative updates on public policy items of interest to the Council and provide Council copies of letters or summary of actions on legislative items.
The City has an existing agreement with Townsend Public Affairs (Townsend) for state and federal legislative advocacy services, which includes tracking and monitoring legislation and advocating the City’s position on various legislation at the State and federal levels of government. This update provides information on such legislation.
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DISCUSSION
Since the start of the calendar year, staff and Townsend Public Affairs have been tracking and monitoring various legislative items. The 2022 Q3 legislative tracking matrix summarizes State priority legislation (Attachment 2). The bills are grouped by their aligned LAP, guiding principle for legislative advocacy or approved City policy (e.g., City Council Goals and Priorities), and a summary has been provided for each bill.
The LAP Policy outlines the following procedures which have streamlined the City’s legislative review and advocacy process:
· If Council has previously adopted a policy directly relevant to the legislation or the proposed legislation is generally consistent with the City’s overall guiding principles for legislative advocacy or LAP, the Mayor or City Manager may sign a letter supporting or opposing legislation on behalf of the city as further detailed below. · If a Council policy relative to the legislation does not exist, the issue is politically controversial, or there is significant local interest in the issue, the proposed legislation including a recommendation to support, remain neutral, or not support the legislation is brought to Council for consideration.
· Letters and other communications expressing the City’s position on legislation will customarily bear the signature of the Mayor in accordance with City Charter Section 704.2 - 704.3. If the legislation’s principal impact affects the City’s operation, the communication may be signed by the City Manager.
· In order to keep the Council informed of all City communications on legislation, copies of the letter or summary of actions will be distributed to the City Council as information items in the Council Meeting Agendas.
The City has taken action on some of the issues outlined below (e.g. submitted a letter of support, opposition, or oppose unless amended, voted at a Cities Association Legislative Action Committee meeting, etc.), consistent with a previously adopted policy directly relevant to the legislation or the City’s overall guiding principles for legislative advocacy or LAP. Those actions are documented in the 2022 Q3 Legislative Action Summary (Attachment 3).
Below are State legislative updates from Townsend:
2022 Legislative Session Final Outcomes
Following the end of the 2022 Legislative Session on August 31st, the Governor had until September 30th to sign or veto legislation. The Legislature introduced a total of 2,055 bills this year - 672 in the Senate and 1,383 in the Assembly. Of those bills, the Governor signed 997 into law and vetoed 169.
The Governor’s consideration of bills during the month of September was very sporadic, with several flurries of activity separated by days of inactivity. This pattern of activity can largely be attributed to other pressing matters before the Governor in September, including grid strain during the moth’s unprecedented heat wave, activities in response to wildfires, and the Governor’s travels out of state.
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Another standout for this year’s final legislative actions was the Governor’s high veto rate. In 2021, the Governor vetoed a total of 66 bills, constituting a 7.8% veto rate. In contrast, this year the Governor vetoed 169 bills, a veto rate of roughly 16%, which is well beyond his typical veto rate.
Notably, a large number of the Governor’s veto messages point to a lack of planned budget funding to accomplish the goals set forth within the measures. While this messaging is not uncommon, it does point to the Governor’s regimented spending practices for the budget’s one-time spending allocations.
The Governor largely followed his previous bill-signing trends and packaged bills with other similar measures for signing into law. These packages include measures that address housing and land use, behavioral health supportive services, climate change and energy, and Brown Act Modernization, among others.
Below is an overview of a few of the bills the Governor signed into law, organized by issue area:
Housing and Land Use
Throughout the 2022 Legislative Session, lawmakers were once again keenly focused on land use and zoning reform. These efforts build upon the passage of major land use reform bills from 2021, including SB 9 (Atkins), which requires the ministerial approval of urban lot splits and two-unit developments on single-family zoned parcels.
This year’s Session ended with the passage of several notable land use reform measures, including AB 2011 (Wicks) and SB 6 (Caballero), both of which authorize housing development projects in sites zoned for retail, office, parking, or along transit-rich corridors, so long as developers utilize stricter labor standards or adhere to stricter affordability requirements. Despite their similarities, both bills passed into law - a strategy that legislative leadership has touted as a method to give developers the choice to decide which strategy to use when approaching a housing development project in a non- residential zone: comply with stricter labor standards or stricter affordability standards. AB 2011 and SB 6 were signed into law by the Governor and go into effect July 1, 2023.
Another major land use reform measure that passed this year was AB 2097 (Friedman), which prohibits public agencies from imposing minimum automobile parking requirements on specified residential, commercial and other developments located within one-half mile of public transit. Notably, this bill is the second iteration of the legislation, which failed in the Appropriations Committee during the 2021 Legislative Session. AB 2097 was signed into law by the Governor and will become effective January 1, 2023.
In addition to land use reform measures, the Legislature passed a handful of bills relating to Accessory Dwelling Unit (ADU) requirements. These include SB 897 (Wieckowski), which makes various changes to existing ADU laws, including adjustments to the minimum height limitations that a local agency may impose. Another ADU reform measure is AB 916 (Salas), which prohibits a city or county from requiring a public hearing as a condition of reconfiguring existing space to add up to two bedrooms within an existing dwelling unit. SB 897 and AB 916 were signed into law and included in the Governor’s housing package of bills. These measures will go into effect January 1, 2023.
Brown Act Reform
The COVID-19 pandemic necessitated reforms to the Brown Act to provide remote flexibilities to adhere to social distancing orders. During the 2021 Legislative Session, the Legislature passed, and City of Santa Clara Printed on 10/14/2022Page 3 of 9
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the Governor signed, AB 361 (Rivas) into law, which allows local agencies to use teleconferencing without complying with specified Ralph. M Brown Act restrictions in certain state emergencies.
Following the passage of AB 361, it was thought there would be no appetite to modify its provisions or looks toward additional Brown Act modernization requirements. However, this Session, three measures addressing public meetings requirements were passed by the legislature.
These include AB 2449 (Rubio), which, subject to meeting certain requirements, allows members of a legislative body of a local agency to use teleconferencing without identifying each teleconference location in the notice and agenda of the meeting, and without making each teleconference location accessible to the public. AB 2647 (Levine) allows writings that have been distributed to members of a legislative body of a local agency less than 72 hours before an open, regular meeting to be exempt from specified requirements of the Ralph M. Brown Act (Brown Act), if the agency meets certain requirements. Both AB 2449 and AB 2647 were signed into law and become effective January 1, 2023.
An additional measure, SB 1100 (Cortese), has already been signed into law. This bill authorizes the presiding member of a legislative body conducting a meeting, or their designee, to remove an individual for disrupting the meeting, and defines “disrupting” for these purposes.
Each of these three measures reflect modest changes to the Brown Act to allow for additional flexibilities for local agencies. Continued remote teleconferencing for all members of a legislative body is currently provided via the provisions established under AB 361, which are set to expire January 1, 2024, or when the COVID-19 state of emergency is lifted - whichever comes first.
Catalytic Converter Theft Prevention
Following a notable uptick in crimes associated with catalytic converter theft, the Legislature introduced nearly ten measures during the Legislative Session to address the issue. From these bills, two passed through the legislative process and were signed into law: AB 1740 (Muratsuchi) and SB 1087 (Gonzalez). Both bills establish robust tracing requirements for the purchase and sale of vehicle catalytic converters. Both measures impose civil and criminal penalties associated with negligence in adhering to the tracing standards and will likely curb catalytic converter crimes with increased enforcement. AB 1740 and SB 1087 were signed into law and become effective January 1, 2023.
Behavioral Health Reform
This Session, Governor Newsom and Legislative Leaders made it clear that overhauling the State’s existing behavioral healthcare infrastructure was a top priority. On March 3, 2022, Governor Newsom unveiled his CARE (Community Assistance, Recovery, and Empowerment) Court proposal framework, which was later packaged into SB 1338 (Umberg). This bill would offer court-ordered individualized interventions and services, stabilization medication, advanced mental health directives, and housing assistance to individuals struggling with behavioral health crises. Plans would last anywhere up to 12-24 months. In addition to their full clinical team, the client-centered approach also includes a public defender and a supporter to help individuals make self-directed care decisions.
County behavioral health departments would be responsible for carrying out the care plans. Those who don't comply with their plans could be subject to California's existing system of involuntary hospital stays and conservatorships. Such programs have been in place since the 1960s, following the state's shift away from mental health hospitals and toward community-oriented care. Since California dismantled the hospital system, the state has primarily made use of the Lanterman-Petris- City of Santa Clara Printed on 10/14/2022Page 4 of 9
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Short Act and Laura's Law to care for people who suffer from severe mental illnesses. According to an October 2021 Department of Health Care Services report, only 218 people received treatment through Laura's Law during the 2018-19 fiscal year - a statistic that many supporters of the program have referenced as an example for new programming.
After numerous iterations of amendments, SB 1338 was passed by the Legislature on the final night of Session. Notably, the bill includes staggered implementation and additional funding resources to allow counties and other local agencies time to implement the program. SB 1338 was signed into law by the Governor and will become effective January 1, 2023.
Climate and Energy
In mid-August, reports began swirling about the Governor convening meetings with Legislative leaders and the Democratic Caucus to push forward last-minute legislation to address the climate crisis. These priorities materialized into a memo presented to the Legislature, outlining climate change mitigation tactics the Governor wanted to see pushed forward in legislation before the end of Session. These included to laws set interim targets for 100 percent clean energy, regulate projects to remove carbon from the atmosphere and smokestacks, and end new oil drilling near communities.
Ultimately, these efforts resulted in six legislative proposals, five of which passed the Legislature and have been signed into law by the Governor. These five measures include the following:
Greenhouse Gas Emission Reductions
Measures contained within the package relating to greenhouse gas emissions include AB 1279 (Muratsuchi), which codifies the State’s existing goal of carbon neutrality by 2045. For context, the State enacted another greenhouse gas bill, AB 32, in 2006, requiring the State to set a target for emissions to drop to 1990 levels by 2020. While AB 1279 passed, another, more aggressive measure that would have set California’s target at 55% below the state’s 1990 emissions up from the current 40% target, failed in the Assembly on the final night of session.
Clean Energy and Grid Reliability
Another measure relating to the Governor’s climate proposals is SB 1020 (Laird), which sets interim targets for generating clean energy. A current law already requires 100% of retail electricity to be fueled by renewables such as wind and solar by 2045. The new law would add 90% by 2035 and 95% by 2040. In addition, all State agencies must source their energy from 100% renewable sources by 2035, ten years sooner than law now requires.
The question remains, however, if California’s electrical grid can handle the surge in energy demand.
The State is expected to see a 68% increase in energy consumption by 2045, according to the California Air Resources Board. To handle that increase, the Agency estimates that the state needs to expedite renewable energy projects.
The issue of grid reliability was addressed in SB 846 (Dodd) which aims to keep the state’s last remaining nuclear power plant in Diablo Canyon operating until 2030 and gives its operator, Pacific Gas & Electric, a $1.4 billion loan to do so. This bill was viewed as one of the most contentious bills of the final night of session - with proponents arguing the need to keep the power plant functioning in the face of increase grid demand, and opponents concerned about accidents, nuclear waste issues, and a perceived “PG&E bailout.”
Carbon Sequestration
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SB 905 (Caballero) directs the California Air Resources Board to develop a program and set regulations for carbon capture, utilization and storage projects at polluting industries, such as oil refineries. The practice is supported by the oil industry, but environmentalists say it has the potential to do more harm than good and prolongs the lives of fossil fuels. The State has yet to see a large- scale carbon capture and storage development seen to fruition.
Oil Well Setbacks
The 2022 Legislative Session saw several attempts to establish buffer zones around oil and gas wells and other large-scale industrial equipment, to prevent their encroachment on “sensitive receptors” like residential zones and schools.
SB 1137 (Gonzalez), which requires 3,200-foot setbacks between new oil and gas wells and sensitive receptors, narrowly passed the Legislature on the final night of session. The bill also requires operators to take certain steps at the thousands of existing wells within that buffer zone.
Included is a plan to monitor toxic leaks and emissions and install alarm systems. In addition, new requirements would include limits on noise, light, dust and vapors.
Looking Forward
In addition to the new laws that will go into effect, next year will be one of significant change in the State Legislature. The decennial redistricting process saw the district boundaries for numerous lawmakers to shift, meaning they need to introduce themselves to a new set of voters. This, coupled with a large class of legislators scheduled to term out of office in 2024, prompted many legislators to not seek reelection. As such, when the Legislature convenes for the 2023-24 legislative session, there will be 10 new Senators and 19 new Assembly Members, representing nearly a 25% turnover in the makeup of the Legislature.
This dramatic change is likely to spark new leadership changes, bill ideas, and shift the makeup of factions within the Democratic Caucus. For instance, Assembly Member Robert Rivas has already signaled his intentions of battling Incumbent Speaker Anthony Rendon for the coveted Assembly Speakership. It will likely be January before the Assembly and Senate make announcements on the new committee chairs and vice chairs, as well as any changes being made to the caucus leadership team.
Below are federal legislative updates from Townsend:
Update on FY23 Appropriations
Congress avoided a partial government shutdown by passing a stopgap funding measure on September 30th. The Continuing Resolution (CR) extends funding at FY22 levels until December 16th when Congress will need to act by passing either another CR or an omnibus funding bill.
On September 27th, the House and Senate came together on a CR proposal that would provide funding through December 16th, allowing for Congress to pull together the final FY23 funding package prior to the new year. The package passed the Senate on September 29th and the House on September 30th, averting a government shutdown just hours before the midnight deadline.
The funding package includes $12.3 billion in economic and military support for Ukraine; $1 billion for the Low-Income Home Energy Assistance Program (LIHEAP); $2.5 billion in funding for New Mexico to recover from the Hermit’s Peak/Calf Canyon fire in April; $2 billion in additional disaster aid; $20 City of Santa Clara Printed on 10/14/2022Page 6 of 9
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million for water infrastructure in Jackson, Mississippi; and a five-year reauthorization of Food and Drug Administration user fees, among other high-profile provisions.
A key controversial provision was the inclusion of Senator Joe Manchin’s Energy Independence and Security Act of 2022. The Manchin proposal would have dramatically reduced the length of time required to complete federal environmental reviews. Manchin claimed that this legislation would bring the United States in line with other advanced countries and is needed to help provide the energy resources American companies require to compete globally. Manchin was also seeking to authorize the immediate approval of the Mountain Valley Pipeline, a controversial multi-billion-dollar project to bring natural gas from West Virginia to southern Virginia. Federal agencies would have 30 days to issue the necessary permits for the pipeline if Manchin’s proposal had been enacted, and all court cases challenging the pipeline would be consolidated in the D.C. Circuit Court of Appeals.
After garnering little support from Republicans and some opposition from Democrats, Sen. Joe Manchin requested that Majority Leader Chuck Schumer remove his energy bill from the package.
The decision removed the main obstacle to securing 60 votes in the Senate for the bill (H.R. 6833) to fund the government through December 16th.
Aside from funding expiring on September 30th, the upcoming midterm elections provided an additional motivation for lawmakers to come to an agreement, allowing them to return home and finish out the final few weeks of campaigning for reelection. Lawmakers are already talking about a fresh round of aid for Florida and Puerto Rico following the deadly hurricanes there, but that will have to wait until after the elections.
SMART Grants Program
The U.S. Department of Transportation announced the Strengthening Mobility and Revolutionizing Transportation (SMART) Grants Program. The program will offer up to $100 million in grants annually over the next five years and will fund projects that use data and technology to solve real-world challenges facing communities today. The SMART program will fund purpose-driven innovation with a focus on building data and technology capacity and expertise. The program seeks proposals from public sector entities that will carry out demonstration projects in the three following domains to address key transportation priorities:
· Vehicle technology, such as automation and connectivity · Systems innovation, such as delivery and logistics, traffic signals, smart grid, and data integration
· New ways to monitor and manage infrastructure, such as sensors and UAS The SMART Notice of Funding (NOFO) is open now and applications must be submitted by 5:00 PM EDT on Friday, November 18, 2022.
White House Student Debt Relief Program
President Biden announced his Administration’s plan for student debt relief this August. On September 20, the White House released more information, announcing that it expects its debt relief program to provide more breathing room to borrowers in all 50 states as well as Washington, D.C., and Puerto Rico. The debt relief plan would provide up to $20,000 in debt relief to Pell Grant recipients and up to $10,000 to other borrowers. The Biden-Harris Administration expects more than City of Santa Clara Printed on 10/14/2022Page 7 of 9
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40 million borrowers will be eligible for this student debt relief. California is currently listed as the state and/or jurisdiction with the highest number of eligible borrowers. The White House has recorded an estimated 3,549,300 eligible borrowers eligible for student debt relief and 2,340,600 Pell borrowers who are eligible.
The idea is that the student debt relief program will help borrowers and families continue to recover from the pandemic and be prepared to resume student loan payments in January 2023. Nearly 90% of the relief dollars will go to individuals earning less than $75,000 per year. By targeting the debt relief program to borrowers with higher economic needs, the Biden-Harris Administration hopes to address the neediest population and address the racial wealth gap.
The application for student debt relief is set to be released in early October. The Department is advising that borrowers apply before November 15th to receive relief before the payment pause expires on December 31, 2022
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
The City has an existing three-year agreement with Townsend Public Affairs for state and federal legislative advocacy services in an amount not-to-exceed $252,000, which includes developing and implementing a legislative strategy. These services are included at no additional cost as part of the consultant’s monthly service fee.
COORDINATION
This report has been coordinated with Townsend Public Affairs and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> or at the
public information desk at any City of Santa Clara public library.
RECOMMENDATION
Note and file the informational report on 2022 Q3 legislative updates.
Prepared by: Christine Jung, Assistant to the City Manager Approved by: Rajeev Batra, City Manager
ATTACHMENTS
1. Legislative Advocacy Position Policy
2. 2022 Q3 Legislative Tracking Matrix
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3. 2022 Q3 Legislative Action Summary
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City of Santa Clara
Policy and Procedure Manual
LEGISLATIVE ADVOCACY POSITION POLICY
PURPOSE To establish clear guidelines for advancing City goals and positions through legislative review and advocacy at the regional, state, and federal levels of government and to provide guidance for City officials who serve on regional, state, and nati
onal boards, committees, and commissions
when they are asked to review public policy matters and issues.
POLICY To attain a comprehensive review of legislation affecting cities, to obtain the Council position on proposed legislation, to make the City’s position known, and to maintain a record of pertinent information, the following guidelines shall be followed.
All legislative reviews are to be made on the basis of the effect on the City and citizens as a whole, and taking into account existing City posi tions, policies, or goals, rather than on the individual’s personal feelings.
The guiding principles for legislative advocacy include and are not limited to:
• Support the League of California Cities and National League of Cities positions on priority bills that benefit Santa Clara. • Protect local revenue sources and prevent unfunded mandates. • Protect and/or increase funding for specific programs and services. • Protect and/or increase local government discretion.
• Advance approved policies such as the City’s St atement of Values, the General Plan, or the Climate Action Plan.
Annually, Legislative Advocacy Positions ( LAP) shall be adopted or updated by the City Council at the beginning of the calendar year to identify specific legislative priorities outside of the legislative guiding principles listed above and posted on the City’s website.
PROCEDURE
FOR
EVALUATING
AND
SUPPORTING
LEGISLATIVE
ADVOCACY
Legislation and issues of interest are brought to the City’s attention through several means: the League of Cali
fornia Cities, the National League of
Cities, the Cities Association of Santa Clara County, Council Members, city staff, citizens, and professional or governmental organizations and legislators. All legislation or issues of interest are to be referred to the City Manager’s Office.
1. City Manager’s Office (CMO) reviews the proposed legislation and, if warrants, requests assistance from one or more departments.
Adopted 10/9/2018
Resolution No. 18-8611
P&P 052 Page 1 of 2
City of
Santa Clara
The Center of What's Possible
LEGISLATIVE ADVOCACY POSITION POLICY (cont.)
2. CMO/Department evaluates the bill for its impact upon Santa Clara, recommends a position and potential action, and drafts a position statement or support/opposition letter.
3. If Council has previously adopted a policy directly relevant to the legislation or the proposed legislation is generally consistent with the City’s overall guiding principles for legislative advocacy or LAP, the Mayor or City Manager may sign a letter supporting or opposing legislation on behalf of the city as further detailed below.
4. If a Council policy relative to the legislation does not exist, the issue is politically controversial, or there is significant local interest in the issue, the proposed legislation including a recommendation to support, remain neutral, or not support the legislation is brought to Council for consideration.
5. Letters and other communications expressing the City’s position on legislation will customarily bear the signature of the Mayor in accordance with City Charter Section 704.2 – 704.3. If the legislation’s principal impact affects the City’s operation, the communication may be signed by the City Manager.
6. In order to keep the Council informed of all City communications on legislation, copies of the letter or summary of actions will be distributed to the City Council as information items in the Council Meeting Agendas.
7. Staff will provide and/or coordinate quarterly legislative updates on public policy items of interest to Council and departments.
Adopted 10/9/2018
Resolution No. 18-8611
P&P 052 Page 2 of 2
RESOLUTION NO. 18-8611
A RESOLUTION OF THE CITY OF SANTA CLARA, CALIFORNIA
ADOPTING A LEGISLATIVE ADOVACY POSITION POLICY AND
RESCINDING COUNCIL POLICY 018 POSITION ON NON-CITY
RELATED ISSUES
BE IT RESOLVED BY THE CITY OF SANTA CLARA AS FOLLOWS:
WHEREAS, establishing a Legislative Advocacy Position Policy will provide guidelines for advancing City goals and positions through legislative review and advocacy at the regional, state, and federal levels of government; and,
WHEREAS, establishing a Legislative Advocacy Position Policy will provide guidance for City officials who serve on regional, state, and national boards, committees, and commission when they are asked to review public policy matters and issues; and, WHEREAS, the Legislative Advocacy Position Policy, attached hereto as Attachment 1, will expedite and streamline the City of Santa Clara's legislative advocacy processes.
NOW THEREFORE, BE IT FURTHER RESOLVED BY THE CITY OF SANTA CLARA AS FOLLOWS:
1. That the Legislative Advocacy Position Policy, attached hereto as Attachment 1, is hereby approved and adopted, and the City Manager is directed to number (and renumber, as appropriate) the Council Policy Manual such that they are organized in a logical fashion.
2. That Council Policy 018 Position on Non-City-Related Issues is hereby rescinded.
II
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Resolution/Adoption of Legislative Advocacy Position Policy Rev: 11 /22/17