Accept the report on Priority Response to SPUR and Staff Identified Work Items.

RULES COMMITTEE: 08/03/16 ITEM: G.3 CITY OF JCT Memorandum SAN JOSE CAPITAL OF SILICON VALLEY TO: RULES AND OPEN GOVERNMENT COMMITTEE FROM: Harry Freitas Jim Ortbal SUBJECT: PRIORITY RESPONSE TO SPUR AND STAFF IDENTIFIED WORK ITEMS Approved Tvr^l - DATE: July 27, 2016 Date RECOMMENDATION Accept the report on Priority Response to SPUR and Staff Identified Work Items. BACKGROUND At the request of the Rules Committee, staff prepared a workload assessment to address those SPUR recommendations that staff have also identified as a priority. This workload assessment was presented to the Committee at its June 8, 2016, meeting. The June 2. 2016 memo to the Committee provided more information. The items for which workload assessments were completed include: Zoning Code Revisions in Downtown and Urban Villages (Yellow Light) Citywide Urban Design Guidelines (Yellow Light) Downtown Historic Preservation (Yellow Light) Downtown Parking Management Plan and Code Reform (Yellow Light) Downtown Circulation & Access Study (Yellow Light) City Policies Regarding Transportation Impact Analysis and Evaluation (Green Light) At its June 8 meeting the Rules Committee requested that staff return with a determination of whether each of the items above are a 1); Green Light item, and can be added to the Departments' existing work program, 2); a Yellow Light item, and is recommended that the Council send the given item to the Priority Setting Process, or 3); a Red Light item and should be dropped from consideration. Attached are Priority Responses for each of the above six work items. /s/ HARRY FREITAS, DIRECTOR Planning, Building and Code Enforcement /s/ JIM ORTBAL, DIRECTOR Transportation For questions, please contact Rosalynn Hughey, Assistant Director, Planning, Building and Code Enforcement at (408) 535-7911. Attachment

Page 1 PRIORITY RESPONSE FROM: Harry Freitas Department of Planning, Building and Code Enforcement DATE: July 27, 2016 SUBJECT: DOWNTOWN AND URBAN VILLAGE ZONING CODE STAFF RECOMMENDATION Green (To Council for action or addition to Department Workplan) El Yellow (To Priority Setting) Red (Drop Idea) CRITERIA Priority Setting Checklist 1. Is the recommendation related to work already in the existing department workplan? Yes El No 2. Staff time required (including research and policy/ordinance development and implementation). El >40 hours < 40 hours 3. What is the magnitude of effort involved? Small El Medium Large 4. When will the department have capacity to address the recommendation? Now-6 months El 6-12 months out Future fiscal year 5. Feasibility: Low Medium 13 High

Page 2 BACKGROUND AND ANALYSIS As discussed at the June 8, 2016, Rules Committee meeting, and in the corresponding staff report (attached), SPUR has recommended code revisions for both Urban Villages and Downtown. These code revisions were designed to streamline the design review process, increase certainty for developers and the public, and raise the baseline level of urban design quality for every development project in these growth areas. Staff generally supports SPUR's recommended code revisions and believes that such revisions will simplify and clarify the City's expectations for the design of new development in areas planned for urban activity. Staff also regards that the code revisions will further the achievement of high quality development both within Downtown and Central San Jose's Urban Villages, helping to create a City of great places that will spur additional investment. The code revisions recommended by SPUR, however, do need to be more tailored for Urban Villages in areas of the City that are predominately auto oriented, and lacking an existing urban fabric. The Department of Planning, Building and Code Enforcement currently does not have the staff resources to develop proposed code revisions in Downtown or propose Urban Village zoning code districts that would have citywide applicability. This work item is therefore given a "yellow light" and it is recommended that Council sends this potential work item to the Priority Setting Process. If this item is identified as a priority, staff would address it, as other Priority items are completed. This work item includes the development of proposed Urban Village zoning districts but does not include the rezoning of property with the proposed new district or districts. Staff recommends that this work item include the rezoning of Urban Villages that have plans currently near completion or underway. These Urban Village areas include West San Carlos, South Bascom, Little Portugal, and the Tri-Village Area (Stevens Creek Boulevard, Winchester Boulevard, and Valley Fair/Santana Row). To complete these rezonings staff would need an estimated $275,000 for the preparation of legal descriptions and to conduct community outreach. While there are a number of grant funding opportunities for the preparation of Urban Village Plans, there is not currently funding opportunities for the rezoning of property to implement Urban Village Plans. As a result, funding would need to be secured from the General Fund or other City sources to cover this cost. For questions, please contact Rosalynn Hughey, Assistant Director, at (408) 535-7911.

Page 3 PRIORITY RESPONSE FROM: Harry Freitas Department of Planning, Building and Code Enforcement DATE: July 27, 2016 SUBJECT: CITYWIDE DESIGN GUIDELINES STAFF RECOMMENDATION Green (To Council for action or addition to Department Workplan) IE Yellow (To Priority Setting) Red (Drop Idea) CRITERIA Priority Setting Checklist 1. Is the recommendation related to work already in the existing department workplan? Yes E No 2. Staff time required (including research and policy/ordinance development and implementation). [X > 40 hours < 40 hours 3. What is the magnitude of effort involved? Small Medium E Large 4. When will the department have capacity to address the recommendation? Now-6 months 6-12 months out E Future fiscal year 5. Feasibility: Low Medium IE High

Page 4 BACKGROUND AND ANALYSIS The City has residential and commercial design guidelines that were adopted in 1997 and 1992 respectively, and are outdated. The guidelines do not reflect contemporary building types or best practices, and often provide design direction that is inconsistent with the urban and pedestrian oriented vision for San Jose, as set forth in the Envision San Jose 2040 General Plan. Staff believes that that there is the opportunity and significant stakeholder "appetite" to develop an Urban Design Agenda for the City that would include updated design guidelines consistent with the City General Plan's goals and policies. The Department of Planning, Building and Code Enforcement currently does not have the staff resources to update the City's residential and commercial design guidelines. This work item is therefore given a "yellow light" and it is recommended that Council send this potential work item to the Priority Setting Process. If the item is identified as a Council Priority, staff would address it as other Priority items are completed. In addition to the staff time needed to complete this work item, it is estimated minimally $150,000 would need to be identified to hire an urban design consultant to assist staff. For questions, please contact Rosalynn Hughey, Assistant Director, at (408) 535-7911.

Page 5 PRIORITY RESPONSE FROM: Harry Freitas Department of Planning, Building and Code Enforcement DATE: My 27, 2016 SUBJECT: DOWNTOWN HISTORIC SURVEY AND GUIDELINES STAFF RECOMMENDATION Green (To Council for action or addition to Department Workplan) 3 Yellow (To Priority Setting) Red (Drop Idea) CRITERIA Priority Setting Checklist 1. Is the recommendation related to work already in the existing department workplan? Yes 3 No 2. Staff time required (including research and policy/ordinance development and implementation). 13 > 40 hours < 40 hours 3. What is the magnitude of effort involved? Small 13 Medium Large 4. When will the department have capacity to address the recommendation? Now-6 months 6-12 months out 3 Future fiscal year 5. Feasibility: Low Medium 3 High

Page 6 BACKGROUND AND ANALYSIS Consistent with SPUR recommendations in its "Future of Downtown San Jose" report, staff has identified a need to complete a comprehensive survey of historic resources in Downtown. Given all of the current development interest in Downtown,, staff also agrees that the design guidelines for the existing historic districts need to be updated and that historic guidelines should be developed for those historic resources that are not located within existing districts. As discussed in the attached June 2, 2016, Rules Committee Memo, PBCE has $597,500 collected as fines and/or mitigation for the demolition of historic structures. This money would be more than sufficient to pay for a consultant to conduct a historic survey for Downtown. However, upon further investigation it was determined that the expectation of the Historic Landmarks Commission and the historic preservation community was that this fine/mitigation money was to be used for historic survey work. Given this, staff is not proposing to use these funds to hire a consultant to develop/update historic guidelines nor hire a consultant project manager to manage the preparation of both the survey and the guidelines. PBCE currently does not have historic preservation staff person to manage this work item. Staff therefore recommends that Council send this potential work item to the Priority Setting Session. If the item is identified as a Council Priority, staff would address it as other Priority items are completed. In addition to staff time, it is estimated that $200,000 would need to be secured to hire a consultant to complete the historic design guidelines work. For questions, please contact Rosalynn Hughey, Assistant Director, at (408) 535-7911.

Page 7 PRIORITY RESPONSE FROM: Harry Freitas Department of Planning, Building and Code Enforcement Jim Ortbal Department of Transportation DATE: July 27, 2016 SUBJECT: DOWNTOWN PARKING MANAGEMENT PLAN AND CODE REFORM STAFF RECOMMENDATION Green (To Council for action or addition to Department Workplan) M Yellow (To Priority Setting) Red (Drop Idea) CRITERIA Priority Setting Checklist 1. Is the recommendation related to work already in the existing department workplan? 13 Yes No 2. Staff time required (including research and policy/ordinance development and implementation). 13 > 40 hours < 40 hours 3. What is the magnitude of effort involved? Small 13 Medium Large 4. When will the department have capacity to address the recommendation? Now-6 months 13 6-12 months out Future fiscal year 5. Feasibility: Low Medium 3 High

Page 8 BACKGROUND AND ANALYSIS As discussed at the June 8, 2016, Rules Committee meeting, and in the corresponding staff report (attached), SPUR has recommended code and parking management revisions for Downtown. SPUR recommends making it easier to get to and through downtown without a car - making the most of limited downtown real estate, maximizing public investment in transit infrastructure, and using downtown and Central San Jose as the model for achieving the city's goal of reduced driving. Moreover, as SPUR points out in Getting to Great Places, "less parking means more room for residents and workers" as real estate is a finite and precious resource, particularly within Downtown. Staff supports exploring SPUR's recommendations regarding parking and further evaluating the right mix of parking code revisions and management strategies to support the City's goals for Downtown. Staff does not have resources to update the parking-related zoning codes, but proposes to wrap those changes into the general Zoning Code Revisions for Downtown being recommended as a "yellow light" (see "Priority Response: Zoning Code Revisions in Downtown and Urban Villages). Regarding the parking management strategies, staff proposes to hire a consultant with expertise in urban parking management and policy to advise on these strategies, as well as a point person to manage the project and coordinate across departments, with stakeholders, and with decisionmaking bodies (expected to include at least the Downtown Parking Board, Planning Commission, and City Council). The City's Parking Fund may be able to support this work, but supplemental resources will be needed to manage the project (estimated at roughly 16 hours a week of professional project management staff/consultant time). This work item is therefore given a "yellow light" and it is recommend that Council sends this potential work item to the Priority Setting Process. For questions, please contact Jessica Zenk, Division Manager, at (408) 535-3543.

Page 9 PRIORITY RESPONSE FROM: DATE: SUBJECT: Harry Freitas Department of Planning, Building and Code Enforcement Jim Ortbal Department of Transportation July 27, 2016 DOWNTOWN CIRCULATION & ACCESS STUDY STAFF RECOMMENDATION Green (To Council for action or addition to Department Workplan) IE! Yellow (To Priority Setting) Red (Drop Idea) CRITERIA Priority Setting Checklist 1. Is the recommendation related to work already in the existing department workplan? El Yes No 2. Staff time required (including research and policy/ordinance development and implementation). M> 40 hours < 40 hours 3. What is the magnitude of effort involved? Small IE] Medium Large 4. When will the department have capacity to address the recommendation? Now-6 months IE] 6-12 months out Future fiscal year 5. Feasibility: Low Medium IE! High

Page 10 BACKGROUND AND ANALYSIS As discussed at the June 8, 2016, Rules Committee meeting, and in the corresponding staff report (attached), SPUR makes numerous recommendations related to Downtown Access and Circulation in the Future of Downtown and Freedom to Move reports. Fundamentally, SPUR recommends making it easier to get to and through downtown without a car - making the most of limited downtown real estate, maximizing public investment in transit infrastructure, and using downtown and Central San Jose as the model for achieving the city's goal of reduced driving. As part of this work, SPUR argues that San Jose should enhance the downtown street network - and all street design guidelines - for pedestrians, expand the existing network of paseos, make central San Jose a bike paradise, champion a great vision for BART station areas, create a seamless experience across transportation modes, and improve wayfmding and signage. The City is already working on many projects and programs that advance this vision. Staff supports integrating many of the recommendations with a comprehensive study of Downtown Access & Circulation. Staff does not have resources to undertake such a study at this time, and therefore gives this effort a "yellow light" and recommends that Council sends this potential work item to the Priority Setting Process. If this item is identified as a priority, staff would address it, as other Priority items are completed. For questions, please contact Jessica Zenk, Division Manager, at (408) 535-3543.

Page 11 PRIORITY RESPONSE FROM: Harry Freitas Department of Planning, Building and Code Enforcement Jim Ortbal Department of Transportation DATE: July 27, 2016 SUBJECT: CITY POLICIES REGARDING TRANSPORTATION IMPACT ANALYSIS AND EVALUATION STAFF RECOMMENDATION M Green (To Council for action or addition to Department Workplan) Yellow (To Priority Setting) Red (Drop Idea) CRITERIA Priority Setting Checklist 1. Is the recommendation related to work already in the existing department workplan? M Yes No 2. Staff time required (including research and policy/ordinance development and implementation). M> 40 hours < 40 hours 3. What is the magnitude of effort involved? Small Medium Kl Large 4. When will the department have capacity to address the recommendation? Now-6 months 3 6-12 months out & ^ Future fiscal year 5. Feasibility: Low Medium M High

Page 12 BACKGROUND AND ANALYSIS As discussed at the June 8, 2016, Rules Committee meeting, and in the corresponding staff report (attached), SPUR recommends that the City update its transportation impact analysis guidelines to emphasize, monitor and evaluate multimodal access and transportation demand management (TDM). This includes revising transportation impact analysis standards and practices in line with San Jose's multimodal goals and State law. This change is expected to transition the City to a vehicle miles traveled (VMT) based metric to assess the environmental impact of projects under CEQA per Senate Bill 743 (SB 743), guidance from the State's Office of Planning and Research, and direction from the City Council in 2015. Perhaps even more importantly, the change poses an opportunity to update the City's transportation impact policies and guidance, transportation demand management (TDM), and congestion monitoring programs to align with the sustainable transportation and development goals set forth in the Envision 2040 General Plan. This effort also should explore the use of impact fees to replace existing transportation mitigation expenditures to make needed investments in the multimodal transportation system and incent development that advances adopted policy goals, without hindering the financial feasibility of desired development. Finally, on an ongoing basis, SPUR recommends that the City - in concert with VTA - articulate shared goals and mobility objectives and track progress against those goals. Staff from the Departments of Planning, Building and Code Enforcement (PBCE), Department of Transportation (DOT), Department of Public Works (DPW), Housing, and Office of Economic Development (OED) has begun to study the implications of and the City's options under SB 743, with the help of a small contract with the consulting firm Nelson Nygaard. This initial scoping study has demonstrated two important realities: 1) First, the shift from measuring and assessing automobile level of service (LOS) to vehicle miles traveled (VMT) fundamentally aligns with the City's General Plan and Green Vision goals, making the type of development, area planning, and transportation system we want easier to realize. 2) Second, making an effective transition in CEQA and related policies will require significant and thoughtful effort by staff and consultants, particularly given San Jose's geographic diversity and infrastructure, programmatic, and administrative needs. Some funding and staff time is being devoted to this effort already, and the State requires that new transportation impact policies for CEQA be adopted per SB 743 (timeline: estimated to be in early 2019, two years after statewide guidance is formally adopted). Staff therefore recommends that the work be given a "green light." However, additional resources (more focused staff time and specialized consultants) will be required; if these resources are devoted sooner, this effort could be completed more quickly to the City's benefit. For questions, please contact Jessica Zenk, Division Manager, at (408) 535-3543.