To:   HONORABLE MAYOR AND                   From:   Sara L. Hensley

                        CITY COUNCIL                                                        Larry D. Lisenbee

 

   Subject:   SEE BELOW                                               Date:   07-30-03

 

COUNCIL DISTRICT:     4      

 

 

SUBJECT:    AUTHORITY TO EXECUTE AGREEMENTS WITH THE SANTA CLARA COUNTY OPEN SPACE AUTHORITY FOR USE OF 20 PERCENT PROGRAM FUNDS FOR THE FURTADO PROPERTY ACQUISITION AND REACH 1 & 2 OF PENITENCIA CREEK TRAIL AND ADOPTION OF APPROPRIATION ORDINANCE AND FUNDING SOURCE RESOLUTION AMENDMENTS IN THE COUNCIL DISTRICT 4 CONSTRUCTION AND CONVEYANCE TAX FUND FOR THE PENITENCIA CREEK REACH 1 & 2 TRAIL MASTER PLAN PROJECT WITH A NET IMPACT TO THE FUND OF $200,000.

 

 

RECOMMENDATION

 

a.  Adopt a resolution authorizing the City Manager to negotiate and execute an agreement with the Santa Clara County Open Space Authority (OSA) and to submit all necessary documents to effectuate funding actions connected to the 20 Percent Open Space Funding Program:

 

1.      To reimburse OSA for the City contribution of $400,000 toward the Furtado Property Acquisition by OSA.

 

2.      To fund the partial acquisition of land in Reach 1 adjacent to Penitencia Creek Road and associated survey work to determine the trail alignment in Reach 1 and part of Reach 2 of the Penitencia Creek Trail along with preparation of the master plan documents and environmental review and clearance in an amount not to exceed $400,000.

 

 

b.  Adoption of the following appropriation ordinance and funding source resolution amendments in the Council District 4 Construction and Conveyance Tax Fund:

 

1.      Establish the appropriation to the Parks, Recreation and Neighborhood Services Department for the Penitencia Creek Reach 1 & 2 Trail Master Plan Project for $200,000.

 

2.      Increase the Earned Revenues estimate by $200,000.

 

 

 

Background

 

OSA was created through State legislation in response to efforts by citizens and local governments of Santa Clara County.  Funding for the OSA is from a benefit assessment imposed on properties within the OSA’s boundaries. 

 

The 20 Percent Funds are divided among participating jurisdictions based on the jurisdiction’s percentage of parcels within the assessment district.  The City of San José has 74 percent of the parcels being assessed, which generates approximately $450,000 annually to the 20 Percent Fund for open space acquisitions and development.  The remaining 80 percent are used to fund OSA’s acquisition program and operations.   If the OSA’s Board of Directors approves the City’s requests, funds for acquisitions are deposited directly into escrow accounts by OSA.  Non-acquisition funds are transferred to the City by OSA under the terms of the agreement. 

 

On June 26, 2001, the City Council approved the submittal of a $400,000 contribution toward the acquisition of the Furtado Property by OSA and the Penitencia Creek Reach 1 acquisition to the OSA’s Board of Directors for funding consideration.  On April 5, 2001, the OSA Board closed on the acquisition of the Furtado Property with the acknowledgement that the City would contribute $400,000 to this purchase by OSA.  On December 12, 2002, the OSA Board of Directors approved the City’s request for the Penitencia Creek Reach 1 acquisition and Reach 1 and part of Reach 2 Master Plan Project to determine the trail alignment.      

 

 

Analysis

 

Resolution Number 70517 authorized the City to submit sites to the Santa Clara County Open Space Authority for possible acquisition by either the City or the OSA under the 20 Percent Funding Program.   The Resolution did not authorize the City Manager to negotiate and execute the agreements and all necessary documents to effectuate funding from the 20 Percent Program Fund established by OSA.

 

On June 26, 2001, the City Council made a commitment to OSA to provide $400,000 toward the acquisition of the Furtado Property by OSA.  Today’s action would permit the City to execute a reimbursement agreement with OSA for the $400,000 associated with the Furtado Property Acquisition along with an agreement for the Penitencia Creek Reach 1 Acquisition and Trail Master Plan Project in Reach 1 and the eastern half of Reach 2 in an amount not to exceed $400,000 of 20 Percent Program Funds.  Half of the Penitencia Creek request of $400,000 is for land acquisition associated with the Penitencia Creek Trail in Reach 1, or $200,000.  As indicated above, this portion of the funding would be provided by OSA through an escrow account to be expended for acquisition and would not come to the City.   The remaining $200,000 of the request would pay for City surveying work associated with the determination of the trail alignment in Reach 1 and the eastern part of Reach 2, along with the preparation of the master plan documents and the necessary environmental review and clearance for the trail project.  This portion would be supplied to the City by OSA as revenue and support the requested appropriation action.

 

The City and OSA will enter into an agreement for the Penitencia Creek Reach 1 and part of Reach 2 Trail Master Plan Project as part of the use of 20 Percent Program Funds for Penitencia Creek.  In order to access these funds, we are requesting the City Council authorize an appropriation of $200,000 in Council District 4’s Construction and Conveyance Tax Fund for FY 2003-2004.  The revenue from the OSA will support this appropriation.

  

 

PUBLIC OUTREACH

 

Staff has met with the aeffected landowners and they have indicated a willingness to sell road frontage to accommodate the trail in Reach 1.  Public outreach for this action included review and discussion of the two projects at the February 14, 2001 Parks and Recreation Commission meeting.  This was a publicly noticed meeting with the Department of Parks, Recreation and Neighborhood Services placing display ads for this item in the San José Post-Record and the San José Mercury News.  On June 26, 2001, the Council also considered and approved these projects for funding under the 20 Percent Program Funds by OSA.  

 

 

COORDINATION

 

This memorandum has been coordinated with the City Attorney’s Office, Planning, Building and Code Enforcement, and the Department of Public Works.

 

 

COST IMPLICATIONS

 

The OSA’s 20 Percent Funding Program provides the City with an alternative funding source to acquire and/or develop lands.   The $400,000 to reimburse the OSA acquisition for the Furtado Property is from funds collected by OSA, but earmarked for City use.  This action validates the use of those funds for the Furtado Property acquisition by OSA.  The City is not responsible for any of the maintenance and operation costs associated with that property.  The City will be the owner of the Penitencia Creek Trail through Reach 1.  Staff estimates that it will cost approximately $600,000 to construct a paved trail through Reach 1 and part of Reach 2.  If these elements are desired, funding would need to be identified and appropriated at a later date.  Maintenance cost for this section of the trail is estimated at $10,000 annually.    

 

 

CEQA

 

Furtado Property Acquisition by OSA – Exempt - PP03-06-215

Penitencia Creek Grant Funding – Exempt - PP03-06-216

 

 

SARA L. HENSLEY                                                               LARRY D. LISENBEE

Director, Parks, Recreation                                                       Director, Budget Office

and Neighborhood Services

 

 

I hereby certify that there will be available $200,000 for appropriation in the Council District 4 Construction and Conveyance Tax Fund (381) in Fiscal Year 2003-2004.  These moneys are in excess of those heretofore appropriated therefrom.

 

 

LARRY D. LISENBEE

Director, Budget Office