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02-15-11 Bookmarked Packet.pdfTable of Contents Agenda 4 January 18 City Council minutes Draft Minutes 11 January 24 City Council minutes Draft Minutes 21 January 25 City Council minutes Draft Minutes 23 Accounts Payable for period ending January 28, 2011 Draft Resolution 25 Payroll for period ending February 4, 2011 Draft Resolution 35 Treasurer's Investment and Budget Report for quarter ending December 2010 Staff Report 36 Investment Portfolio 38 PARS Trust Report 39 Pie & Rate of Return Chart & Compliance Schedule 41 General Fund Budget Report 43 Expenditure & Revenue Charts 44 Treasurer and Deputy Treasurer Appointments Staff Report 48 Resolution 49 Grant of easement for sidewalk purposes, Apple Inc., a California corporation, 19333 Vallco Parkway, APN(s) 316-20- 075 and 316-20-076 Resolution 50 Grant of Easement 51 Map 56 Development Permit Process Staff Report 57 A: Public Engagement Process and Recommended Approval Authority 64 B: Matrix Consulting Group's report titled, "Management Study of the Permit Process," dated November 17, 2009 66 C: Summary table of recommendations in the Matrix report with staff comments 230 D: City Council Staff Report dated May 18, 2010 242 E: City Council minutes from May 18, 2010 meeting 247 F: Handouts to July 28, 2010 group workshop attendees 249 G: Transcribed notes from July 28, 2010 group workshop 250 H: Handouts to September 8, 2010 group workshop attendees 251 1 I: Tally of Approval Authority from September 8, 2010 group workshop 253 J: Transcribed notes from September 8, 2010 group workshop 256 K: Planning Commission minutes from November 9, 2010 meeting 260 L: Planning Commission Staff Report dated November 9, 2010 275 M: Comments from Subcommittee on administrative processes 282 N: Draft Process Workflow Chart of the Planning Permit Process 284 O: Comparison of current and recommended approval authorities for projects approved between 2007 and 2009 285 P: Draft standards and example for on-site signage related to development proposals 297 Petition for reconsideration of the City Council's January 4, 2011 decision to deny an appeal of a Director's Approval for a parking pad to be located at a duplex located at 965-967 Miller Avenue CC Reconsideration Report on DIR-2010-30 300 A. City Council Draft Resolution & Exhibit 1 303 B. Director's Minor Mod. DIR-2010-30 dated 9/23/10 307 C. Appeal by Erwin Wolf dated 10/5/10 312 D. PC Staff Report dated 12/14/10 314 E. Draft PC Meeting Minutes of 12/14/10 316 F. PC Resolution No. 6619 319 G. CC Staff Report dated 1/4/11 321 H. CC Meeting Minutes dated 1/4/11 324 I. Reconsideration Petition filed 1/18/11 325 Petition for reconsideration of the City Council's January 4, 2011 decision to deny an appeal of a personal wireless service facility at the Results Way Office Park CC Reconsideration Report on U-2010-03, EXC-2010- 04 &TR-2010-31 327 A. City Council Resolution & Exhibit 1 331 B. PC Resolution No. 6604 335 C. PC Staff Report dated 9/14/10 344 D. PC meeting minutes of 9/14/10 351 E. Appeal filed on 9/28/10 367 F. CC Staff Report dated 11/1/10 380 G. CC meeting minutes of 11/1/10 388 H. CC Staff Report dated 1/4/11 392 I. CC meeting minutes of 1/4/11 395 J. Reconsideration Petition filed 1/18/11 398 K. CC Action Letter dated 1/6/11 402 L. Approved Plan Set 405 2 Loan and Repayment Agreement between the City of Cupertino and the City of Cupertino Redevelopment Agency Staff Report 412 Redevelopment Agency Resolution 414 City Council Resolution 417 Loan and Repayment Agreement 420 Agreement between the Housing Trust of Santa Clara County, the Cupertino Redevelopment Agency (RDA), and the City of Cupertino for the use of housing funds Staff Report 424 A. agreement between the Housing Trust of Santa Clara County 426 B. Draft RDA Resolution approving the Affordable Housing Agreement 448 C. Draft City Council Resolution approving the Affordable Housing Agreement 451 Public Infrastructure Agreement with the Cupertino Redevelopment Agency, City of Cupertino, and Vallco Shopping Mall Staff Report Placeholder 454 RDA Draft Resolution Placeholder 455 Council Draft Resolution Placeholder 456 Joint Agreement Placeholder 457 Purchase of storm sewer trash capture devices Staff Report Placeholder 458 RDA Draft Resolution Placeholder 459 3 AGENDA CUPERTINO CITY COUNCIL & CUPERTINO REDEVELOPMENT AGENCY ~ JOINT SPECIAL MEETING CUPERTINO CITY COUNCIL ~ SPECIAL MEETING 10350 Torre Avenue, Community Hall Council Chamber Tuesday, February 15, 2011 4:00 PM JOINT CITY COUNCIL AND REDEVELOPMENT AGENCY SPECIAL MEETING CLOSED SESSION – 4:00 PM 1. Subject: Conference with Legal Counsel - Initiation of Litigation (one case)(Gov't Code 54956.9(c)) Page: No written materials in packet REDEVELOPMENT AGENCY ADJOURNMENT CITY COUNCIL SPECIAL MEETING CLOSED SESSION 2. Subject: Conference with Real Property Negotiator (Gov’t Code 54956.8); Property: 10800 Torre Ave, Cupertino, CA 95014; Negotiating Parties: City of Cupertino and potential lessee; Under Negotiation: Lease - price and terms of payment Page: No written materials in packet 3. Subject: Conference with legal counsel - Significant exposure to litigation - (One case) (Gov’t Code 54956.9(b)) Page: No written materials in packet PLEDGE OF ALLEGIANCE – 6:45 PM ROLL CALL 4 Tuesday, February 15, 2011 Cupertino City Council Cupertino Redevelopment Agency CEREMONIAL MATTERS – PRESENTATIONS 4. Subject: Proclamation recognizing the Santa Clara County Library, the Friends of the Cupertino Library, and the Cupertino Library Foundation for their support of the 9th Annual Silicon Valley Reads (continued from February 1) Recommended Action: Present proclamation Page: No written materials in packet 5. Subject: Presentation about the local branch of Hindu Swayamsevak Sangh (HSS), a voluntary, non-profit, social and cultural organization which aims at preserving and passing on ancient Hindu heritage and cultural values Recommended Action: Receive presentation Page: No written materials in packet 6. Subject: Recognition of the City of Cupertino Finance Department for its excellence in operating budgeting for Fiscal Year 09-10 from the California Society of Municipal Finance Officers (CSMFO) Recommended Action: Recognize Finance Department Page: No written materials in packet POSTPONEMENTS WRITTEN COMMUNICATIONS ORAL COMMUNICATIONS This portion of the meeting is reserved for persons wishing to address the council on any matter not on the agenda. Speakers are limited to three (3) minutes. In most cases, State law will prohibit the council from making any decisions with respect to a matter not listed on the agenda. CONSENT CALENDAR Unless there are separate discussions and/or actions requested by council, staff or a member of the public, it is requested that items under the Consent Calendar be acted on simultaneously. 7. Subject: January 18 City Council minutes Recommended Action: Approve minutes Draft Minutes Page: 11 8. Subject: January 24 City Council minutes Recommended Action: Approve minutes Draft Minutes Page: 21 6:50 (10) 7:00 (10) 7:10 (10) 7:20 (10) 7:30 (10) 5 Tuesday, February 15, 2011 Cupertino City Council Cupertino Redevelopment Agency 9. Subject: January 25 City Council minutes Recommended Action: Approve minutes Draft Minutes Page: 23 10. Subject: Accounts Payable for period ending January 28, 2011 Recommended Action: Adopt Resolution No. 11-017 Draft Resolution Page: 25 11. Subject: Payroll for period ending February 4, 2011 Recommended Action: Adopt Resolution No. 11-018 Draft Resolution Page: 35 12. Subject: Treasurer's Investment and Budget Report for quarter ending December 2010 Recommended Action: Accept the report Staff Report Investment Portfolio PARS Trust Report Pie & Rate of Return Chart & Compliance Schedule General Fund Budget Report Expenditure & Revenue Charts Page: 36 13. Subject: Treasurer and Deputy Treasurer Appointments Recommended Action: Adopt Resolution No. 11-019 Description: Extends the appointments of the current City Treasurer and Deputy Treasurer Staff Report Resolution Page: 48 14. Subject: Grant of easement for sidewalk purposes, Apple Inc., a California corporation, 19333 Vallco Parkway, APN(s) 316-20-075 and 316-20-076 Recommended Action: Adopt Resolution No. 11-020 Description: The property owner of this commercial development agrees to grant to the City an easement for public sidewalk purposes, together with the right to construct, operate, repair and maintain public utilities and improvements, over a portion of the property Resolution Grant of Easement Map Page: 50 ITEMS REMOVED FROM THE CONSENT CALENDAR (if any) 6 Tuesday, February 15, 2011 Cupertino City Council Cupertino Redevelopment Agency PUBLIC HEARINGS 15. Subject: Development Permit Process Recommended Action: a. Provide direction to staff on the list of recommended changes and any additional modifications/enhancements to the permit process and public engagement policy (see Attachment A); and b. Authorize Staff to work on modifications to the Zoning Ordinances as required by the above changes Description: Application: CP-2010-01; Applicant: City of Cupertino; Location: Citywide; Application Summary: Review of the Management Study of the Permit Process and opportunities to enhance the quality of the City’s permit services and organizational efficiency Staff Report A: Public Engagement Process and Recommended Approval Authority B: Matrix Consulting Group's report titled, "Management Study of the Permit Process," dated November 17, 2009 C: Summary table of recommendations in the Matrix report with staff comments D: City Council Staff Report dated May 18, 2010 E: City Council minutes from May 18, 2010 meeting F: Handouts to July 28, 2010 group workshop attendees G: Transcribed notes from July 28, 2010 group workshop H: Handouts to September 8, 2010 group workshop attendees I: Tally of Approval Authority from September 8, 2010 group workshop J: Transcribed notes from September 8, 2010 group workshop K: Planning Commission minutes from November 9, 2010 meeting L: Planning Commission Staff Report dated November 9, 2010 M: Comments from Subcommittee on administrative processes N: Draft Process Workflow Chart of the Planning Permit Process O: Comparison of current and recommended approval authorities for projects approved between 2007 and 2009 P: Draft standards and example for on-site signage related to development proposals Page: 57 UNFINISHED BUSINESS - None NEW BUSINESS 16. Subject: Petition for reconsideration of the City Council’s January 4, 2011 decision to deny an appeal of a Director's Approval for a parking pad to be located at a duplex located at 965- 967 Miller Avenue Recommended Action: Conduct a hearing and adopt Resolution No. 11-021 Description: Application: DIR-2010-30; Appellant: Erwin Wolf; Applicant: Linda Shen- Jung (GLSAA, LLC); Location: 965-967 Miller Avenue; APN: 369-19-052; Application Summary: Petition for Reconsideration of the City Council decision to deny an appeal of a 7:40 (60) 8:40 (45) 7 Tuesday, February 15, 2011 Cupertino City Council Cupertino Redevelopment Agency Director’s Minor Modification decision to allow paving in the front yard of an existing duplex for the purpose of a parking stall at 965-967 Miller Avenue CC Reconsideration Report on DIR-2010-30 A. City Council Draft Resolution & Exhibit 1 B. Director's Minor Mod. DIR-2010-30 dated 9/23/10 C. Appeal by Erwin Wolf dated 10/5/10 D. PC Staff Report dated 12/14/10 E. Draft PC Meeting Minutes of 12/14/10 F. PC Resolution No. 6619 G. CC Staff Report dated 1/4/11 H. CC Meeting Minutes dated 1/4/11 I. Reconsideration Petition filed 1/18/11 Page: 300 17. Subject: Petition for reconsideration of the City Council’s January 4, 2011 decision to deny an appeal of a personal wireless service facility at the Results Way Office Park Recommended Action: Conduct a hearing and adopt Resolution No. 11-022 Description: Application Nos: U-2010-03, EXC-2010-04, TR-2010-31; Applicant: Dave Yocke (AT&T); Petitioners: Grace Chen, Guo Jin; Address: Results Way (rear parking lot); APN: 357-20-042; Application Summary: Petition for Reconsideration of the City Council decision to deny the appeal of a Planning Commission approval of a personal wireless service facility consisting of twelve panel antennas to be mounted on a 74 foot tall monopine and associated base equipment to be located at the existing Results Way office park CC Reconsideration Report on U-2010-03, EXC-2010-04 &TR-2010-31 A. City Council Resolution & Exhibit 1 B. PC Resolution No. 6604 C. PC Staff Report dated 9/14/10 D. PC meeting minutes of 9/14/10 E. Appeal filed on 9/28/10 F. CC Staff Report dated 11/1/10 G. CC meeting minutes of 11/1/10 H. CC Staff Report dated 1/4/11 I. CC meeting minutes of 1/4/11 J. Reconsideration Petition filed 1/18/11 K. CC Action Letter dated 1/6/11 L. Approved Plan Set Page: 327 ORDINANCES STAFF REPORTS COUNCIL REPORTS 9:25 (90) 8 Tuesday, February 15, 2011 Cupertino City Council Cupertino Redevelopment Agency JOINT CITY COUNCIL AND REDEVELOPMENT AGENCY MEETING ROLL CALL 18. Subject: Loan and Repayment Agreement between the City of Cupertino and the City of Cupertino Redevelopment Agency Recommended Action: A. Redevelopment Agency action - Adopt Resolution No. 11-01 B. City Council action - Adopt Resolution No. 11-023 Description: Adopt corresponding resolutions authorizing the City and Agency to enter into the Agreement Staff Report Redevelopment Agency Resolution City Council Resolution Loan and Repayment Agreement Page: 412 19. Subject: Agreement between the Housing Trust of Santa Clara County, the Cupertino Redevelopment Agency (RDA), and the City of Cupertino for the use of housing funds Recommended Action: A. Redevelopment Agency action - Adopt Resolution No. 11-02 B. City Council action: 1) Increase RDA Housing set-aside fund expenditure budget by $1,000,000 2) Adopt Resolution No. 11-024 Description: Adopt corresponding resolutions authorizing the City and Agency to enter into the Agreement. Discuss an opportunity to fund the Housing Trust of Santa Clara County out of the RDA Housing set-aside Staff Report A. agreement between the Housing Trust of Santa Clara County B. Draft RDA Resolution approving the Affordable Housing Agreement C. Draft City Council Resolution approving the Affordable Housing Agreement Page: 424 20. Subject: Public Infrastructure Agreement with the Cupertino Redevelopment Agency, City of Cupertino, and Vallco Shopping Mall Recommended Action: A. Redevelopment Agency action - Adopt Resolution No. 11-03 B. City Council action - Adopt Resolution No. 11-025 Description: Includes installation of storm sewer trash capture devices and reimbursement for the construction of public street improvements Staff Report Placeholder RDA Draft Resolution Placeholder Council Draft Resolution Placeholder Joint Agreement Placeholder Page: 454 10:55 – 90 min total for Items 18-20 9 Tuesday, February 15, 2011 Cupertino City Council Cupertino Redevelopment Agency CITY COUNCIL ADJOURNMENT REDEVELOPMENT AGENCY MEETING 21. Subject: Purchase of storm sewer trash capture devices Recommended Action: Adopt Resolution No. 11-04 Description: Staff Report Placeholder RDA Draft Resolution Placeholder Page: 458 REDEVELOPMENT AGENCY ADJOURNMENT The City of Cupertino has adopted the provisions of Code of Civil Procedure §1094.6; litigation challenging a final decision of the City Council/Redevelopment Agency must be brought within 90 days after a decision is announced unless a shorter time is required by State or Federal law. Any interested person, including the applicant, prior to seeking judicial review of the city council’s decision with respect to quasi-judicial actions, must first file a petition for reconsideration with the city clerk within ten days after the council’s decision. Any petition so filed must comply with municipal ordinance code §2.08.096. In compliance with the Americans with Disabilities Act (ADA), the City of Cupertino will make reasonable efforts to accommodate persons with qualified disabilities. If you require special assistance, please contact the city clerk’s office at 408-777-3223 at least 48 hours in advance of the meeting. Any writings or documents provided to a majority of the Cupertino City Council after publication of the packet will be made available for public inspection in the City Clerk’s Office located at City Hall, 10300 Torre Avenue, during normal business hours and in Council packet archives linked from the agenda/minutes page on the Cupertino web site. 12:25 (10) 12:35 10 DRAFT MINUTES CUPERTINO CITY COUNCIL Regular Adjourned Meeting Tuesday, January 18, 2011 PLEDGE OF ALLEGIANCE At 3:07 p.m. Mayor Gilbert Wong called the regular meeting to order in the Council Chamber, 10350 Torre Avenue, Cupertino, California, and led the Pledge of Allegiance. ROLL CALL Present: Mayor Gilbert Wong, Vice-Mayor Mark Santoro, and Council members Barry Chang (3:11 p.m.), Orrin Mahoney, and Kris Wang. Absent: none. CLOSED SESSION Mayor Gilbert Wong announced the closed sessions and invited comments from the public. Michael McNutt stated that the bid process had taken a very long time and that Council’s decision on January 4 was reverse discrimination. He urged the Council to reverse their decision and sign the lease with Coffee Society. Darcy Paul stated that he had been retained as legal counsel for the Coffee Society. He stated that the lease negotiations had gone on long before the RFP process began and actually started in November 2009. He stated that it was Coffee Society’s position that the process has been unnecessarily long and some added good faith would be needed to restore them to the position they were in before January 4, 2011. Paula Davis, Chairwoman of the Cupertino Chamber of Commerce, spoke on behalf of the following individuals: Andrew Brumm Clare Brumm Stuart Chessen Peggy Griffin John Ishii Janice Ishii Linda Vincent John Vincent Wada Naniwada Mahesh Nihalani Roger Schindewolf Patty Robinson Kevin McClelland Ruby Elbogen Sonal Abhyanker 11 January 18, 2011 Cupertino City Council Page 2 Ms. Davis read a letter from the Chamber of Commerce dated January 18, and copies were distributed to the City Council members. The purpose of the letter was to express the Chamber’s disapproval of the City Council’s decision on January 4 to reopen the bid process for the Coffee Society property (item No. 3, below). Ms. Davis stated that it was the Chamber’s understanding that the bid process was well advertised and that all interested parties were clearly aware that the bid process was open and it was not the obligation of Council or City staff to walk specific businesses through the process. Ms. Davis also stated that it was critical for local government to exhibit fairness and consistency when dealing with business, and urged the Council to reconsider its latest position and award the lease to Coffee Society. At 3:14 p.m., Council went into closed session to discuss the following items: 1. Subject: Conference with Real Property Negotiator (Gov't Code 54956.8); Property: 10346 Scenic Blvd. Cupertino, CA 95014; Negotiator: Carol Atwood; under negotiation: terms Recommended Action: Provide direction to negotiator 2. Subject: Conference with legal counsel - Significant exposure to litigation - (Three cases) Gov't Code 54956.9(b) 3. Subject: Conference with Real Property Negotiator (Gov't Code 54956.8; Property: 10800 Torre Ave, Cupertino, CA 95014; Negotiating Parties: City of Cupertino and potential lessees; Under Negotiation: Lease - price and terms of payment At 6:50 p.m., Council reconvened in open session. Mayor Wong announced that the Council had done the following: 1. Met with the real property negotiator and gave direction. 2. Council was briefed by legal counsel and gave direction. No action was taken. 3. On January 4th, the City Council had concerns about the process. On further review of the RFP process, the Council is comfortable going forward with the lease. Therefore, the City Council directed the real property negotiator to re-offer the lease previously signed by the Coffee Society and considered at the January 4 meeting, and place the item on a future Council agenda for City action. CEREMONIAL MATTERS – PRESENTATIONS 4. Subject: Declare January 2011 to be National Blood Donor Month Recommended Action: Present proclamation to the American Red Cross, Northern California Blood Services Region Mayor Wong presented the proclamation to Barb Larkin, CEO of the American Red Cross Silicon Valley Chapter. She noted that the phone number for individuals to call for more information is 1-800-RED CROSS. 12 January 18, 2011 Cupertino City Council Page 3 Council member Wang stepped away from the dais before postponements. POSTPONEMENTS Mahoney moved and Chang seconded to continue Item No. 15 to February 1. The motion carried unanimously with Council member Wang absent. Santoro moved and Chang seconded to continue Item No. 10 to February 1. The motion carried unanimously with Council member Wang absent. WRITTEN COMMUNICATIONS Deputy City Clerk Grace Schmidt distributed the following written communications: · A letter dated January 18 expressing the Chamber of Commerce’s disapproval of the City Council’s decision to reopen the bid process for the Coffee Society property · Emails from Ross Heitkamp, President of the Friends of Stevens Creek Trail, supporting the current CIP (Item No. 17b) and supporting Alternative 4A for the Stevens Creek Corridor Project, Phase II (Item No. 17c) · Email from Leslie Fowler in favor of opening the Scenic Avenue Trail so that her son can bicycle through Blackberry Farm park to Monta Vista High School (Item 17) · A copy of the Capital Improvement Status Report prepared by staff (17b) · Emails from Gail Bower and from Donna Austin, representing the Cupertino Historical Society, in favor of Alternative 4A (17c) · Email from Geoffrey Sherman opposed to any encroachment onto any part of the Blackberry Farm golf course (item 17c) · Pictures from Barbara Stocklmeir showing the West Side of Stevens Creek Park (item 17c) ORAL COMMUNICATIONS Elise Gerson, Director of Resident Services at the Forum at Rancho San Antonio, said that cell phone coverage on their campus has very poor to no reception at all. She said she wanted to alert Council that they are starting the process with the Planning Department and AT&T to pursue a cell tower on the campus. She noted that they look forward to Council’s support when this item comes before them. Council member Wang returned to the dais before Consent Calendar. 13 January 18, 2011 Cupertino City Council Page 4 CONSENT CALENDAR Mahoney moved and Wang seconded to approve the items on the Consent Calendar as recommended. Ayes: Chang, Mahoney, Santoro, Wang, and Wong. Noes: None. Abstain: None. 5. Subject: December 7 City Council minutes Recommended Action: Approve minutes 6. Subject: December 21 City Council minutes Recommended Action: Approve minutes 7. Subject: Accounts Payable for period ending December 31, 2010 Recommended Action: Adopt Resolution No. 11-004 8. Subject: Phase IV of the Employee Wellness Program Recommended Action: Approve additional proposed enhancements to the Employee Wellness Program 9. Subject: Changes to the Selection of Classification that receive Automobile Allowance Recommended Action: Eliminate Automobile Allowance for selected classifications 10. Subject: Animals in Disaster Annex to Cupertino Emergency Plan Recommended Action: Approve as an Annex to the Cupertino Emergency Plan Description: Document addresses Cupertino’s role in caring for displaced pets and stray animals following a major emergency when the City’s Animal Control Service is overwhelmed 11. Subject: Fee waiver for St. Joseph’s Catholic School Athletic Teams Recommended Action: Deny fee waiver request 12. Subject: Quitclaim Deed and Authorization for Underground Water Rights, Steven A. Breinberg and Danna S. Breinberg, 10625 Cordova Road, APN 342-22-103 Recommended Action: Adopt Resolution No. 11-005 Description: The property owners of this residential development agree to grant to the City the right to extract water from the basin under the overlying property 13. Subject: Quitclaim Deed and Authorization for Underground Water Rights, Raman V. Mummidivarapu and Bhavani Mummidivarapu, 10134 South Tantau, APN 375-07-038 Recommended Action: Adopt Resolution No. 11-006 Description: The property owners of this residential development agree to grant to the City the right to extract water from the basin under the overlying property ITEMS REMOVED FROM THE CONSENT CALENDAR (above) - None 14 January 18, 2011 Cupertino City Council Page 5 PUBLIC HEARINGS 14. Subject: Annual renewal of bingo permits for St. Joseph of Cupertino Church and Cupertino Senior Center Coordinating Council Recommended Action: Conduct public hearing and renew permits Mayor Wong opened the public hearing at 7:00 p.m. There were no requests to speak, and the hearing was closed. Mahoney moved and Santoro seconded to renew the bingo permits. The motion carried unanimously. 15. Subject: Green Building Ordinance Recommended Action: Continue to February 1 Description: Application: MCA-2010-04; Applicant: City of Cupertino; Location: Citywide; Application Summary: Municipal Code Amendment to adopt a Green Building Ordinance Under “Postponements,” this item was continued to the meeting of February 1. UNFINISHED BUSINESS NEW BUSINESS 16. Subject: Abatement of a public nuisance (weeds) pursuant to provisions of Cupertino Municipal Code Chapter 9.08 and Resolution No. 10-224 Recommended Action: Note protest(s) and adopt Resolution No. 11-007 Deputy City Clerk Grace Schmidt reviewed the staff report. Council had questions regarding changing the deadline date for inspections and concurred to hold off on this item until the County representative arrived to answer questions. 17. Mid-Year Operating and Capital budget review: a. Subject: Mid-Year budget adjustment Recommended Action: Approve mid-year budget adjustment Written communications for Item No. 17 included: o Emails from Ross Heitkamp, President of the Friends of Stevens Creek Trail, supporting the current CIP (Item No. 17b) and supporting Alternative 4A for the Stevens Creek Corridor Project, Phase II (Item No. 17c) o Email from Leslie Fowler in favor of opening the Scenic Avenue Trail so that her son can bicycle through Blackberry Farm park to Monta Vista High School (Item 17) o A copy of the Capital Improvement Status Report prepared by staff (17b) o Emails from Gail Bower and from Donna Austin, representing the Cupertino Historical Society, in favor of Alternative 4A (17c) 15 January 18, 2011 Cupertino City Council Page 6 o Email from Geoffrey Sherman opposed to any encroachment onto any part of the Blackberry Farm golf course (item 17c) o Pictures from Barbara Stocklmeir showing the West Side of Stevens Creek Park (item 17c) Finance Director David Woo reviewed the staff report. Jennifer Griffin said she had a question about how the mayor would be handling the public input for all three items. She thought all the input would be at the end and said she doesn’t have anything to say for item a, but does for item b. Action: Mahoney moved and Santoro seconded to approve the mid-year budget adjustments as presented. The motion carried unanimously. b. Subject: Mid-Year Capital Improvement Program (CIP) Review and Status Report Recommended Action: Direct staff to proceed with the CIP as currently approved, with adjustments to the program to be proposed during the annual budget review in spring, 2011 Public Works Director Timm Borden reviewed the staff report via a PowerPoint presentation. He noted the changes made to the CIP status report that was handed out on the dais. Council asked questions from staff. Jennifer Griffin commended the City for the Sterling Barnhart Park acquisition and delivery. She said that she and her neighbors love the park and are very appreciative. She also thanked Council for keeping the Lawrence Mitty Park on the horizon for the future. Carol Stanek said that she wanted to reiterate all the great support from the community for the Scenic Circle access and hopes it will happen as soon as possible. Action: Mahoney moved and Chang seconded to accept the report with clarification that any items for potential reallocation would not move forward until Council sees them first. The motion carried unanimously. Mayor Wong reordered the agenda to return to item number 16 regarding weed abatement. Moe Kumre from the County answered questions about whether the deadline date could be moved back from April 15. He said that another courtesy letter would go out from the County regarding if the deadline date has changed, noting that the County would work with residents to get the weeds abated, and giving the contact information for the County. Mr. Kumre noted that all the property owners would need to be noticed again if the deadline were to be moved. He also said that Council could change the deadline date at any of its meetings. 16 January 18, 2011 Cupertino City Council Page 7 Mayor Wong noted one speaker card with the name of Sri, but the person wasn’t in the audience anymore. Mr. Kumre said he would look through the list and see if any person matched that name and contact the person if possible. Action: Santoro moved and Chang seconded to adopt Resolution No. 11-007 with the change to move the deadline date to April 30. Wang offered a friendly amendment to have the date change be for next year to avoid having to re-notice. Santoro accepted the friendly amendment. The motion carried unanimously. Council recessed from 8:38 p.m. to 8:50 p.m. Council continued with item number 17c. c. Subject: Stevens Creek Corridor Project, Phase II Recommended Action: 1. Authorize staff to initiate the design effort for Alternative 4A 2. Authorize the City Manager to negotiate and execute an amendment with SSA Landscape Architects for design services not to exceed $200,000 3. Authorize the City Manager to issue Letters of Intent to various granting agencies clarifying the City’s intent to proceed with Alternative 4A and creek restoration 4. Authorize staff to initiate an environmental clearance process for the project Public Works Director Timm Borden reviewed the staff report via a PowerPoint presentation. Patrick Kwok from the Santa Clara Valley Water District discussed the voter approved Measure B for open space. He noted that the measure provides funding for water quality, protection, trails and open space, and water restoration. He indicated that the water district had partnered with the City on Phase I of the project and that there was $100,000 remaining that the City must reapply for. A formal request to the Board is crucial and grant requests are due by March 15. He stated that the District supports staff recommendation of 4A and is willing to work with the City on the design. He introduced Deborah Cordo (staff member) who has also worked on this project. Ms. Cordo said that the $800,000 grant money was never in the budget. She indicated that there were three grants available in the trails category and three in the environmental category. She noted that these grants are competitive and urged Council to get the grant applications in. She also stated that letters of intent and support helps the Board in making its decision. Brad Allen thanked the City for supporting creeks and restoration and it shows in the quality of the parks. He said he supports 4A. Marianne Cali, board member of Stevens Creek Watershed Council, thanked the City for the beautiful job of Phase I restoration of the Stevens Creek Corridor and supports 4A. 17 January 18, 2011 Cupertino City Council Page 8 Mike Ferreira spoke on behalf of the Loma Prieta Sierra Club and was in favor of 4A. He stated that he was impressed with the job that the Parks and Recreation Commission did to come up with a feasible design and project that was not at the expense of interest groups. Shani Kleinhaus of the Santa Clara Valley Audubon Society supported 4A. James Robenolt expressed gratitude and admiration of Phase I of the Stevens Creek restoration through Blackberry Farm. He indicated that he would like to see the same level of excellence through Phase II and not lose the funding available. He supports 4A. Deborah Jamison said she supported 4A because it is the most cost effective and also creates a hydrological and ecological, friendly ecosystem which is the purpose of the restoration. She urged council to take advantage of all funding available and accept the $1.2 million grant. Dale Compton supported option 4A. Ann Ng, member of board of Friends of Stevens Creek Trail, said she thought it makes sense to fix the creek first before continuing with Phase II. She supported option 4A. Barbara Stocklmeir showed a picture from 1995 of what water can do to the creek. She stated that she agrees with option 4A. She stated that she has an issue with where the trail might end up on Stevens Creek as far as bicyclists go. She noted that there is a really hard, right turn down the driveway of a steep hill from the west side and that oil from cars might even make it worse. She stated that the bike path could just keep going the way it is which puts one on the other side of the creek to the golf course or it could go parallel to the home owners association on the back side of the creek restoration. She urged Council to consider the safety of children when considering the final destination of the bike path. Council asked questions of staff. Action: Santoro moved and Mahoney seconded the following: 1. Authorize staff to initiate the design effort for Alternative 4A 2. Authorize the City Manager to negotiate and execute an amendment with SSA Landscape Architects for design services not to exceed $200,000 3. Authorize the City Manager to issue Letters of Intent to various granting agencies clarifying the City’s intent to proceed with Alternative 4A and creek restoration 4. Authorize staff to initiate an environmental clearance process for the project The motion carried unanimously. Council member Chang stepped away from the dais before Ordinances. 18 January 18, 2011 Cupertino City Council Page 9 ORDINANCES 18. Subject: Municipal Code amendments to be consistent with the 2007-2014 Housing Element Recommended Action: Conduct second reading and adopt Ordinance No. 11-2073 Description: Municipal Code Amendments (MCA-2010-06) to Chapter 19.48 (Planned Development (P) Ordinance), Chapter 19.72 (Private Recreation (PF) Zone Ordinance), Chapter 19.124 (Planned Development Permits, Conditional Use Permits and Variances Ordinance) and Chapter 20.04 (Specific Plans Ordinance) of the Cupertino Municipal Code to be consistent with the 2007-2014 Housing Element; "An Ordinance of the City Council of the City of Cupertino amending to Chapter 19.48 (Planned Development (P) zones), Chapter 19.72 (Private Recreation (FP) zone), Chapter 19.124 (Planned Development Permits, Conditional Use Permits and Variances) and Chapter 20.04 (Specific Plans) of the Cupertino Municipal Code to be consistent with the 2010 Housing Element" Mahoney moved and Wang seconded to read the ordinance by title only and that the City Clerk’s reading would constitute the second reading thereof. Ayes: Mahoney, Santoro, Wang, and Wong. Noes: None. Absent: Chang. Mahoney moved and Wang seconded to enact Ordinance No. 11-2073. Ayes: Mahoney, Santoro, Wang, and Wong. Noes: None. Absent: Chang. Council member Chang returned to the dais. STAFF REPORTS Deputy City Clerk Grace Schmidt reported that an unusually large number of applications were received for the city’s advisory commissions. The City Council had already set aside Monday and Tuesday, January 25 and 26, at 6:00 p.m. to conduct the interviews, but the typical schedule of 8 minutes per interview resulted in the meetings going very late into the evening. She asked if the Council would like to retain the current schedule, which would result in the Tuesday meeting lasting until 11:50 p.m., or if they would like to adjust the schedule by starting earlier, shortening the interview time, or adding an additional day. The Council concurred to begin the interviews at 4:00 p.m. COUNCIL REPORTS Council members highlighted the activities of their committees and various community events. 19 January 18, 2011 Cupertino City Council Page 10 ADJOURNMENT At 10:30 p.m., the meeting was adjourned to Monday, January 24 beginning at 4:00 p.m. for Commission interviews, Cupertino City Hall Conference Room A, 10300 Torre Avenue. ____________________________ Grace Schmidt, Deputy City Clerk Staff reports, backup materials, and items distributed at the City Council meeting are available for review at the City Clerk’s Office, 777-3223, and also on the Internet at www.cupertino.org. Click on Agendas & Minutes, then click on the appropriate Packet. Most Council meetings are shown live on Comcast Channel 26 and AT&T U-verse Channel 99 and are available at your convenience at www.cupertino.org. Click on Agendas & Minutes, then click Archived Webcast. Videotapes are available at the Cupertino Library, or may be purchased from the Cupertino City Channel, 777-2364. 20 DRAFT MINUTES CUPERTINO CITY COUNCIL Regular Adjourned Meeting Monday, January 24, 2011 ROLL CALL At 4:10 p.m. Mayor Gilbert Wong called the regular adjourned meeting to order in Conference Room A, 10300 Torre Avenue, Cupertino, California. Present: Mayor Gilbert Wong, Vice Mayor Mark Santoro, and Council members Barry Chang Orrin Mahoney, and Kris Wang. Absent: none. ORAL COMMUNICATIONS - None BOARDS AND COMMISSIONS INTERVIEWS 1. Interview applicants for commission vacancies: § Planning The City Council interviewed Don Sun, Eric Rafia, Alain Dang, Alan Takahashi, Clinton Brownley, Muneesh Goomer, Rose Grymes, Daniel Nguyen, Rajeev Joshi, Annie Ho, Rajeev Raman, Sharon Saturnio, and Xiao Liu. The City Council appointed Don Sun and Clinton Brownley to full terms ending January 2015. § Housing The City Council interviewed Xiao Liu, Rajeev Raman, Annie Ho, and Sharon Saturnio. The City Council appointed Rajeev Raman to a full term ending January 2015. § Fine Arts The City Council interviewed Rajeswari Mahalingam, Joelle Lieb, Jessi Kaur, Russell Leong, Elizabeth Adler, Donna Bee-Gates, and Savita Vaidhyanathan. The City Council appointed Joelle Lieb and Jessi Kaur to full terms ending January 2015 and Russell Leong to a partial term ending January 2013 (counts as a full term). 21 January 24, 2011 Cupertino City Council Page 2 § Parks and Recreation The City Council interviewed Savita Vaidhyanthan, David Fung, Emma Wang, YuHong Tang, and David Lee. The City Council appointed David Fung and David Lee to full terms ending January 2015. ADJOURNMENT At 9:58 p.m. the meeting was adjourned to Tuesday, January 25 at 4:00 p.m. to conduct additional commission interviews. The meeting will be held in Cupertino City Hall Conference Room A, 10300 Torre Avenue. _________________________________ Grace Schmidt, Deputy City Clerk 22 DRAFT MINUTES CUPERTINO CITY COUNCIL Regular Adjourned Meeting Tuesday, January 25, 2011 ROLL CALL At 4:03 p.m. Mayor Gilbert Wong called the regular adjourned meeting to order in Conference Room A, 10300 Torre Avenue, Cupertino, California. Present: Mayor Gilbert Wong, Vice Mayor Mark Santoro, and Council members Barry Chang Orrin Mahoney, and Kris Wang. Absent: none. ORAL COMMUNICATIONS - None BOARDS AND COMMISSIONS INTERVIEWS 1. Interview applicants for commission vacancies: § Library The City Council interviewed Anne Ezzat, Rose Grymes, Thomas Wang, Janet Riddell, Sushma Anantharam, Adrian Kolb, Jane Otto, and Vijay Veeramachaneni. The City Council appointed Rose Grymes and Adrian Kolb to full terms ending January 2015. § Bicycle Pedestrian The City Council interviewed Jimmy Duarte, Jill Mitsch, William Chan, and Ashish Kolli. The City Council appointed Jill Mitsch, William Chan, and Ashish Kolli to a full term ending January 2015. § Technology, Information, & Communication The City Council interviewed Bhimachar Venkatesh, Jitendra Jadhav, Rajeev Joshi, Rod Livingood, Duleep Pillai, Vijay Veeramachaneni, Beverly Siegel, and Peter Friedland. The City Council appointed Jitendra Jadhav, Rod Livingood, and Peter Friedland to full terms ending January 2015. 23 January 25, 2011 Cupertino City Council Page 2 ADJOURNMENT The meeting was adjourned at 8:07 p.m. _________________________________ Grace Schmidt, Deputy City Clerk 24 25 26 27 28 29 30 31 32 33 34 35 ADMINISTRATIVE SERVICES DEPARTMENT CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3220 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: February 15, 2011 Subject Treasurer’s Investment and Budget Report for quarter ending December 2010 Recommended Action Accept the report Description Investments The market and book value of the City’s portfolio both totaled $51.2 million at December 31, 2010. The portfolio’s December yield of 0.28% was down from the September 2010 yield of 0.33% and the year ago rate of 0.46% due to the portfolio’s safe and liquid mix of investments and because of the temporary high portion of the portfolio in cash and money market positions due to maturities and tax deposits during the holiday office closure. The liquid positions were re- invested in January. The LAIF benchmark was at 0.46% for December, down from 0.50% in September and 0.57% a year ago, reflective of their move to a higher percentage of investments backed by the full faith and credit of the federal government. The portfolio increased from September to December by $5 million due to sales and property tax receipts. Maturing Treasuries and a certificate of deposit totaling $9.6 million were either re- invested into new Treasuries or temporarily left in the money market fund. Investments are in full compliance with the City investment policy and State law and are tiered to provide sufficient cash flows to pay City obligations over the next six months. Market values on individual securities in the investment portfolio are provided by Wells Fargo Bank Institutional Trust Services using valuations from Interactive Data Pricing and Reference Data, Inc. The retiree medical PARS trust market value grew from $7.1 million to $7.4 million during the quarter ending December 31, 2010. The portfolio of money market, fixed income and equity mutual funds returned 4.3% for the quarter and 6.67% since inception six months ago. Short- term volatility of market value is anticipated, with positive returns expected in the long run to fund future retiree medical obligations. 36 General Fund Budget Report Revenues are up five percent over last year, led by strong growth in sales taxes, transient occupancy taxes, property transfer taxes and charges for services. Grant revenues, fines and forfeitures are trailing results from last year while other categories are relatively steady. Growth will need to continue in order to achieve this year’s projections. Expenditures are on track with last year results and this year’s budget expectations. _____________________________________ Prepared by: David Woo, Deputy City Treasurer Reviewed by: David Woo for Carol A. Atwood, City Treasurer Approved for Submission by: David W. Knapp, City Manager Attachments: Investment Portfolio PARS Trust Report Pie & Rate of Return Chart & Compliance Schedule General Fund Budget Report Expenditure & Revenue Charts 37 City of Cupertino Investment Portfolio December 31, 2010 ACTIVITY DATE COUPON YIELD ADJUSTED MATURITY MARKET UNREALIZED PURCHASE MATURITY DESCRIPTION RATE To Maturity COST VALUE VALUE PROFIT/LOSS SECURITIES MATURED 09/23/10 10/28/10 US Treasury Bill 0.11%0.11%2,000,000 2,000,000 2,000,000 0 09/23/10 11/12/10 US Treasury Bill 0.12%0.12%1,000,000 1,000,000 1,000,000 0 09/23/10 12/09/10 US Treasury Bill 0.13%0.13%2,000,000 2,000,000 2,000,000 0 01/29/10 12/31/10 US Treasury Note 0.88%0.25%2,500,000 2,500,000 2,500,000 0 06/28/10 12/31/10 US Treasury Note 0.88%0.15%2,000,000 2,000,000 2,000,000 0 12/28/05 12/28/10 Natl Bnk of New York City, Flushing NY 4.90%4.90%97,000 97,000 97,000 0 SECURITIES PURCHASED 11/22/10 01/20/11 US Treasury Bill 0.11%0.11%2,999,820 3,000,000 2,999,940 120 12/17/10 10/31/11 US Treasury Note 1.00%0.26%2,012,099 2,000,000 2,011,720 (379) CITY PORTFOLIO CASH 12/31/10 Wells Fargo - Workers Comp Checking 16,086 16,086 16,086 0 12/31/10 Wells Fargo - Repurchase Agreements 0.10%0.10%5,557,479 5,557,479 5,557,479 0 5,573,565 5,573,565 5,573,565 0 LAIF 12/31/10 LAIF - State Pool 0.46%0.46%594,808 594,808 594,808 0 MONEY MARKET FUNDS 12/31/10 Wells Fargo 100% Treasury 0.01%0.01%8,313,987 8,313,987 8,313,987 0 8,313,987 8,313,987 8,313,987 0 US TREASURY SECURITIES 11/22/10 01/20/11 US Treasury Bill 0.11%0.11%2,999,820 3,000,000 2,999,940 120 01/29/10 01/31/11 US Treasury Note 0.88%0.28%2,501,254 2,500,000 2,501,275 21 04/26/10 02/28/11 US Treasury Note 0.88%0.39%5,003,891 5,000,000 5,005,250 1,359 03/26/10 03/31/11 US Treasury Note 0.88%0.44%5,005,321 5,000,000 5,008,200 2,879 04/29/10 04/30/11 US Treasury Note 4.88%0.43%6,087,449 6,000,000 6,090,720 3,271 05/27/10 05/31/11 US Treasury Note 4.88%0.41%5,092,073 5,000,000 5,095,500 3,427 06/28/10 06/30/11 US Treasury Note 1.13%0.33%2,007,822 2,000,000 2,009,220 1,398 07/28/10 07/31/11 US Treasury Note 1.00%0.32%2,007,921 2,000,000 2,008,900 979 08/27/10 08/31/11 US Treasury Note 1.00%0.28%2,009,569 2,000,000 2,010,080 511 09/28/10 09/30/11 US Treasury Note 1.00%0.25%2,011,158 2,000,000 2,010,780 (378) 12/17/10 10/31/11 US Treasury Note 1.00%0.26%2,012,099 2,000,000 2,011,720 (379) 36,738,377 36,500,000 36,751,585 13,208 Total Managed Portfolio 51,220,737 50,982,360 51,233,945 13,208 Average Yield 0.28% Average Length to Maturity (in years) 0.26 MONEY MARKET FUNDS Kester Trust 12/31/10 Wells Institutional Money Mkt Acct 0.15%0.15%48,404 48,404 48,404 0 BOND RESERVE PORTFOLIO Bond Reserve Acct Ambac Assurance Security Bond 1 1 1 Bond Payment Acct Wells Treasury Plus Money Mkt 0.01%0.01%1,015,072 1,015,072 1,015,072 0 Total Bond Reserve Portfolio 1,015,073 1,015,073 1,015,073 0 38 39 40 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% Rate of Return Comparison LAIF Cupertino LAIF 1%Cash 11% Money Market 16% US Treasuries 72% Investments by Type Managed Portfolio 41 Compliance Schedule COMPLIANCE WITH INVESTMENT POLICY City of Cupertino December 31, 2010 Category Standard Comment Treasury Issues No limit Complies US Agencies No limit Complies Medium Term Corporate Bonds 30% with A rating Complies LAIF $50 million Complies Money Market Funds 20%Complies Maximum Maturities Up to 5 years Complies Per Issuer Max 10% (except for Treasuries and US Agencies)Complies Bankers Acceptances 180 days & 40%Complies Commercial Paper 270 days & 25%Complies Negotiable Certificates of Deposit 30%Complies Repurchase Agreements 365 days Complies Reverse Repurchase agreements Prohibited Complies Page 2 42 City of Cupertino General Fund Budget Report December 31, 2010 2009/10 2010/11 12/31/2009 12/31/2010 Analysis of Trends Taxes: Sales Tax 11,249,000 12,036,000 7,814,643 8,463,831 Business to business improvement Property Tax 10,419,503 12,076,000 6,174,438 6,088,845 Flat real estate market and CPI Transient Occupancy 1,994,000 2,094,000 994,505 1,189,817 Occupancy rates up; delinquent taxes received this year Utility Tax 3,366,000 3,433,000 1,237,284 1,314,169 Electric, gas, non-wireless telecom improved Franchise Fees 2,630,000 2,656,000 505,123 590,165 Prior year revenue recorded this year Other Taxes 1,200,000 1,224,000 495,406 757,605 Transfer tax from N.Vallco property sale Licenses and Permits 3,210,000 2,610,000 1,519,991 1,495,901 Plan checks and inspections down Use of Money & Property 891,000 1,188,000 338,287 329,654 Intergovernmental 492,296 553,000 272,927 222,625 Different grants Charges for Services 1,434,000 1,652,000 720,299 845,665 Senior Center, planning fees up Fines & Forfeitures 902,000 920,000 331,803 244,138 Lower fine assessments in courts Other Revenue 100,000 100,000 52,028 36,086 Total Revenue 37,887,799 40,542,000 20,456,734 21,578,501 5% over year Operating Expenditures: Administrative 1,517,004 1,611,138 633,113 719,451 On track Law Enforcement 8,565,636 8,833,336 4,198,952 4,358,436 On track Public & Environ. Affairs 1,494,522 1,461,143 666,953 666,477 On track Administrative Service 4,062,641 4,234,559 1,904,993 1,735,503 On track & election off-year Recreation Service 4,289,549 4,444,052 1,904,514 1,928,869 On track Community Development 3,560,750 3,703,100 1,426,023 1,440,113 On track Public Works 11,803,700 12,216,022 5,207,046 5,234,688 On track Total Expenditures 35,293,802 36,503,350 15,941,594 16,083,537 Transfers In 991,512 265,000 0 132,498 CIP savings in adopted budget Transfers Out -9,374,885 -6,725,000 -3,786,498 -3,362,496 Debt service, capital, and retiree medical funding Net Gain/(Loss)-5,789,376 -2,421,350 728,642 2,264,966 Budget Actual 43 0 5,000 10,000 15,000 20,000 9/10 10/10 11/10 12/10Year-To-Date $ThousandsMonth General Fund Expenditures Projected vs. Actual Projected, per current budget Actual 44 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 9/10 10/10 11/10 12/10Year-To-Date $ThousandsMonth Property Tax Projections vs. Actual Projected, per current budget Actual $0 $2,000 $4,000 $6,000 $8,000 $10,000 9/10 10/10 11/10 12/10Year-To-Date $ThousandsMonth Sales Tax Projections vs. Actual Projected, per current budget Actual 45 0 1,000 2,000 9/10 10/10 11/10 12/10Year-To-Date $ThousandsMonth Licenses & Permits Projected vs. Actual Projected, per current budget Actual 0 400 800 1,200 1,600 9/10 10/10 11/10 12/10Year-To-Date $ThousandsMonth Transient Occupancy Tax Projected vs. Actual Projected, per current budget Actual 46 0 500 1,000 9/10 10/10 11/10 12/10Year-To-Date $ThousandsMonth Use of Money & Property Projected vs. Actual Projected, per current budget Actual 0 500 1,000 9/10 10/10 11/10 12/10Year-To-Date $ThousandsMonth Charges for Services Projected vs. Actual Projected, per current budget Actual 47 ADMINISTRATIVE SERVICES DEPARTMENT CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3227 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: February 15, 2011 Subject Treasurer and Deputy Treasurer Appointments Recommended Action Adopt Resolution Description Extends the appointments of the current City Treasurer and Deputy Treasurer. Discussion Chapter 730 of the statutes of 1976 Section 16429.1 was added to the California Government Code to create a Local Agency Investment Fund in the State Treasury. This Section requires government agencies to appoint a treasurer and deputy treasurer on an annual basis. The attached resolution extends the current appointments of Carol Atwood and David Woo as the City’s Treasurer and Deputy Treasurer, respectively. This legislation was intended to provide ongoing review of investment issues by the governing body. Fiscal Impact None _____________________________________ Prepared by: David Woo, Deputy Treasurer Reviewed by: Kelly Kline for Carol A. Atwood, City Treasurer Approved for Submission by: David W. Knapp, City Manager Attachments: Resolution 48 RESOLUTION NO. 11- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO RESCINDING RESOLUTION NO. 10-021 AND APPOINTING TREASURER AND DEPUTY TREASURER WHEREAS, the City has available funds to invest in accordance with principles of sound treasury management; and WHEREAS, the City annually adopts an investment policy; WHEREAS, the City invests funds in accordance with provisions of California Government Code Section 53600; and NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Cupertino hereby rescinds Resolution No. 10-021 and appoints Carol Atwood City Treasurer and David Woo as Deputy Treasurer; and BE IT FURTHER RESOLVED that the City Treasurer is empowered and specifically authorized to invest and reinvest City funds in accordance with California Government Code Section 53600; to buy, sell, trade and deal in authorized securities on margin or otherwise in connection therewith and to pledge any and all securities for future delivery thereof. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 15th day of February 2011 by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: APPROVED: Mayor, City of Cupertino ATTEST: City Clerk 49 RESOLUTION NO. 11- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ACCEPTING GRANT OF EASEMENT FOR SIDEWALK PURPOSES, FROM APPLE INC., A CALIFORNIA CORPORATION, 19333 VALLCO PARKWAY, APN 316-20-075 AND 316-20-076 WHEREAS, Apple Inc., a California corporation, has executed a Grant of Easement for sidewalk purposes, which is in good and sufficient form, granting the City of Cupertino, County of Santa Clara, State of California, easement over certain property for sidewalk purposes situate at 19333 Vallco Parkway, more particularly described in Exhibit “A” and Exhibit “B”, attached hereto and made a part hereof. NOW, THEREFORE, BE IT RESOLVED, that the City of Cupertino accept said grant so tendered; and IT IS FURTHER RESOLVED that the City Clerk is hereby authorized to record said grant and this resolution. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 15th day of February, 2011 by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: _________________________ ________________________ City Clerk Mayor, City of Cupertino 50 51 52 53 54 55 1913219146191601916119147191331010019161191471913310052 10162 10175 10149 10133 10123 10109 10039 10053 10067 10053 10123 10135 10149 10163 10191 10161 10163 10151 10153 10141 10143 10520 10480 1933319349193651924010100 10200 10108 10122 10134 10148 10025 10081 19333 19191 191601033010435 1011119230192601924419250193001928010121 19333 10131 10141 10160 1946019480 19472 1946919479 10055 10099 10 0 8 9 10 0 8 7 10166 19507 19503 1018119400 19505 19501 191101914019200 10080 10050 19330 1928610150 19450 10062 19480 193001937619400 10500 19550 19489 19482 19462 19450 19470 10130 10100 193151012110097 10 0 8 5 10080 10070 10060 10066 10080 10094 10067 10081 10095 10109 10123 1907019078190661908219088190801906819062100331002919052190601905019220 TANTAUVALLCO FINCHSTEVENS CREEK JUNIPERO SERRA MILLERWOLFEXXXPERIMETER CRAFT ANNE SORENSON COZETTEWOLFE ¯ Subject: Grant of Easement for Sidewalk Purposes, APPLE INC., a California corporation, 19333 Vallco Parkway. Recommended Action: Adopt Resolution No. 11-_____ 56 COMMUNITY DEVELOPMENT DEPARTMENT CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3308 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: February 15, 2011 Subject Development Permit Process Review Recommended Action 1. Provide direction to staff on the list of recommended changes and any additional modifications/enhancements to the permit process and public engagement policy (see Attachment A); and 2. Authorize Staff to work on modifications to the Zoning Ordinances as required by the above changes. Description Review of the Management Study of the permit process and opportunities to enhance the quality of the City’s development permit services and organizational efficiency. Background As part of the Council’s 2008-2009 work program, the Council directed a comprehensive review of the City's development review process. In 2009, the Matrix Consulting Group was hired to conduct a comprehensive organization and management analysis of the City’s development permit process and operations. Matrix began their research in March 2009 and completed the study on November 5, 2009 (see Attachment B for Matrix’s Management Study of the Permit Process Report). The study used a variety of sources for its analysis including: customer focus groups, a survey of City staff, and a review of the development process, permit data and the City’s website. Matrix compared Cupertino’s permit processes and organizational framework with other comparable cities and best management practices in the industry and made a list of recommendations to improve the City’s permit process and organizational efficiency. The Matrix Report recommendations fall in the following categories: · About 35 percent of the recommendations have already been implemented. · About 22 percent of the recommendations are being currently being implemented by staff. · About 35 percent of the recommendations need Planning Commission review/City Council action in the form of Ordinance/Policy amendments or funding. 57 · About four percent of the recommendations should not be considered either due to inconsistencies with City policies/department functions and/or potential liability concerns; and · About four percent of the recommendations were based on incorrect assumptions by the Consultant. Attachment C is a summary table of recommendations in the Matrix report with staff comments. City Council Review The Planning Commission reviewed the Matrix report on April 13, April 27 and May 11, 2010 and provided recommendations for the Council to consider (see Attachment D for Council staff report dated May 18, 2010). The City Council reviewed the report on May 18, 2010 (see Attachment E for minutes). The Council reviewed the recommendations of the Planning Commission and noted that they would specifically like to include input from single-family homeowners who have had experience with the permitting process and members of the public. The Council then directed staff to: 1. Conduct additional group workshops for the community to collect feedback regarding the permit process; 2. Send notices to all applicants, property owners, and developers who got permits from the City in the last five years. In addition, place appropriate notices in newspapers. Community Outreach Efforts Approximately 5,300 notices were mailed to invite permittees and property owners to comment on the development permit process. In addition, notices were placed in the Cupertino Courier, Cupertino Scene and the City’s website. Two group workshops (July 28, 2010 and September 8, 2010) were facilitated by Mr. Ken Rodriguez. The first meeting was focused on collecting comments on the main themes of the Matrix Report (See Attachment F). See Attachment G for comments from the first group meeting. At the second meeting, workshop attendees were given an opportunity to provide their opinion about the levels of approval for projects. Participants were provided a handout to indicate their opinion on what level approvals for different types of projects should be given (See Attachment H). The results of this exercise have been compiled in Attachment I. General comments from this meeting have been compiled in Attachment J. Staff has reviewed the group workshop input and has noted where recommendations create potential discrepancies and/or legal considerations. The discussion in the community workshops revolved around the following themes (See Attachments G and J for details): · The development process needs to be simplified. · A comprehensive online permitting system is key to simplifying both processing and tracking projects. 58 · While simplifying approval processes is desirable, the current level of public engagement should not be reduced. A detailed discussion of these issues is provided later in the report. Planning Commission Review On November 9, 2010, the Planning Commission reviewed the input from the group workshops (See Attachment K for minutes from the Planning Commission’s November 9, 2010 meeting). They generally agreed with all the changes recommended in the report (See Attachment L for Staff Report). Individual Commissioners also made additional recommendations noted later in the staff report. The Planning Commission agreed to forward the recommendations to the Council for consideration and direction. The Planning Commission appointed a subcommittee (composed of Commissioner Miller and Lee) to provide staff with ideas for additional improvements to internal administrative processes. The subcommittee met with staff on November 23, 2010 (see Attachment M for comments from the subcommittee). Staff is also working on a draft process workflow chart for the planning process for discussion with the subcommittee (see Attachment N). Staff will be refining the chart and providing it with the application forms on the City’s website. A second meeting with the subcommittee is scheduled for February 9, 2011. Subcommittee comments from the February 9, 2011 meeting will be forwarded to the Council as a desk item. Planning Commission Recommendations The following outlines recommendations from the Planning Commission after reviewing input from the group workshops. In cases where staff has made an alternative or additional recommendation, a specific notation has been provided. Specific comments provided by the public are also noted. 1. ORDINANCE/POLICY AMENDMENTS A. Simplifying Approval Authority: The Planning Commission supports simplification of approval authority as noted below: i. The City Council should review all projects that are “outside the box” of regulations – i.e. those that require a change to the General Plan, Zoning, and Ordinance and/or involve the preparation of an Environment Impact Report (EIR). Such projects and Tentative Maps are required to be reviewed by the City Council per State law. ii. Projects that fit “within the “box” of existing General Plan, zoning and other City regulations should be approved at the Planning Commission level. iii. Projects that are small, do not cause impacts, are exempt under California Environmental Quality Act (CEQA) and would have no environmental impacts should be reviewed by staff. Projects that typically are exempt under CEQA include new construction with six units or less and 10,000 square feet or less of new non- residential development or additions, façade improvements, site improvements including landscaping, replacement or reconstruction of non-residential buildings, etc. 59 Ø Project Approval Threshold Alternative for Council Consideration: o The current recommendation is to allow new construction exempt under CEQA to be approved at staff level. An alternate recommendation could be to allow new construction exempt under CEQA to be approved by the DRC. Single-family homes and other minor permits could still be approved at staff level per the current ordinance. Attachment A.1 shows the current and recommended levels for the projects and Attachment O provides a list of past projects and the level at which they would be approved under the recommended process. o Under the current recommendations, the Council will review all projects which require General Plan or Zoning Amendments and any project for which an EIR is prepared. An alternative for Council review would be projects that propose > 50 residential units and/or 50,000 square feet of commercial space and/or 100,000 square feet of industrial space. Comments from residents: A number of residents expressed concern about reducing thresholds of project approval and recommended enhancing public noticing in case the thresholds are reduced. A few residents commented if thresholds of approval were reduced, appeal fees should also be lowered or eliminated to remove deterrents to their right to appeal a lower level decision. The current appeal fee is set at $162 and is refunded if the appeal is upheld. B. Ordinance Amendments i. Single Family (R1) Ordinance – a few workshop attendees brought up the following issues related to the R1 ordinance. a. Design Review for two-story homes is onerous. b. Story Poles are expensive and not effective in conveying the shape of a house. c. Noticing is financially burdensome and intrusive since entire plan sets with floor plans have to be mailed. At the November 9, 2010 meeting, the Planning Commission discussed the requirements of the two story permit process and privacy planting requirements at length but did not make any recommendations. A Planning Commissioner noted that these requirements are onerous. Some Commissioners expressed concern about making changes to the R1 ordinance. Staff recommends that any changes to the R1 Ordinance should be part of a separate project to ensure that stakeholders interested specifically in the R1 Ordinance are included. Comments from residents: Some community members also expressed concern with changing the R1 ordinance. ii. Protected Tree Ordinance – At the November 9, 2010 meeting, the requirements of the Protected Tree ordinance were also discussed. A Planning Commissioner noted 60 that current requirements for restricting removals and requiring replacements were onerous. C. Communication: The group workshop attendees discussed the issue of noticing at length. Some members of the community who have previously obtained permits from the City and some Planning Commissioners felt that the requirements were onerous. Other community members felt that they like the improvements made by the City over the years to increase noticing and wanted to retain them. They additionally commented that any process streamlining should not result in reduction of public noticing and input. Based upon a review of past projects where notification was enhanced, the Planning Commission recommends a consistent policy for projects where expectations for the applicant as well as neighbors/residents would be clear from the start. A draft concept of this new public engagement process policy – Advise, Collaborate, Team up (ACT) is shown in Attachment A. The recommended ACT Public Engagement Process has the following three levels of engagement: i. Advise Level – Enhanced noticing shall be provided for all projects through on-site signage, and project links on the City’s website. The specific recommendations are provided in Attachment A. Additionally, to make project signs on the site providing notice of development proposals easily recognizable, staff is proposing a draft sign and standards based on a review of signs and standards in San Jose and Mountain View (see Attachment P). ii. Collaborate Level – This level incorporates requirements for the “Advise Level” noted above as well as additional notification for projects that have the potential to create neighborhood-level impacts. The Planning Commission recommends a threshold of 15 residential units, 25,000 square feet of retail/commercial use and 50,000 square feet of office/industrial use for this level. Projects at this level would be required to expand noticing to 1,000 feet and have a neighborhood meeting. The public engagement process at this level allows for dialogue between all parties and helps to discuss solutions that could be brought to decision-makers for their consideration. iii. Team Up Level – This is the highest level of public engagement for projects with city-wide implications. Staff recommends this level for large projects such as major General Plan amendments and zoning and Planned Development/Use permits that require an EIR. Projects at this level would require will require site signage, enhanced notification at the neighborhood or City-wide level depending on the type of project, and community workshops to allow for dialogue between interested parties. Examples of where the City has used this process include the South Vallco Master Plan and the North Vallco Master Plan. 61 D. Improving Readability and Consistency The Planning Commission agreed with staff’s recommendation to work on the following changes to improve consistency between various City documents and their readability: i. Review existing conceptual plans and area plans to make older documents consistent with the General Plan and update them with new graphics. No amendments to the plans are proposed as part of this review. An administrative update with new graphics is expected to cost about $5,000-7,500 per document. ii. Review the Zoning Ordinance for consistency and the use of tables to reduce repetition and optimize readability. The Sign Ordinance is an example of where this was done. Staff notes that we are currently working on a number of Council work program items and that these tasks will be done on a long-term basis as time permits. 2. INFRASTRUCTURE/TECHNOLOGY IMPROVEMENTS: Many workshop attendees indicated strong support for a comprehensive online permitting system (see Attachment G). Seven of the 15 attendees at the first workshop indicated support for the acquisition and implementation of an online permit system where they could submit applications, track the progress online and obtain permits online without having to submit paper plans. Based on the preliminary discussion, they also supported the idea of instituting a technology fee of roughly 4% in order to cover some of the costs of acquiring a new permitting system. On January 18, 2011, the Council preliminarily approved $350,000 to move forward with the acquisition of the first phase of an online permit system. The system is expected to cost a total of $500,000. Staff is currently coordinating with the departments expected to use this system to create an RFP, which will allow us to solicit bids for Phase 1 by Summer 2011. The Council will review a request for the remaining $150,000 for the online permitting system as part of the budget for FY 2011-12 and FY 2012-13. 3. INTERNAL PROCESS CHANGES: Staff is working on making improvements to inter-departmental communication by: A. Continually reviewing and evaluating changes and enhancements to internal processes on an ongoing basis. B. Preparing customized manuals and how-to guides to help homeowners, contractors and developers get the best information possible on preparation of application submittal materials and requirements/processes. C. Implementing suggestions from the Planning Commission subcommittee, applicants and staff. 62 NEXT STEPS: Once the Council provides direction on the general recommendation from the Planning Commission, staff will bring specific ordinance amendments to the Planning Commission for review and, upon recommendation for approval, to the City Council. As noted earlier, staff recommends that a review of specific ordinances such as the R1 ordinance and Protected Tree ordinance should be designated as a separate project. _____________________________________ Prepared by: Piu Ghosh, Associate Planner Reviewed by: Gary Chao, City Planner and Aarti Shrivastava, Community Development Director Approved for Submission by: David W. Knapp, City Manager Attachments: A: Public Engagement Process and Recommended Approval Authority B: Matrix Consulting Group’s report titled, “Management Study of the Permit Process,” dated November 17, 2009 C: Summary table of recommendations in the Matrix report with staff comments D: City Council Staff Report dated May 18, 2010 E: City Council minutes from May 18, 2010 meeting F: Handouts to July 28, 2010 group workshop attendees G: Transcribed notes from July 28, 2010 group workshop H: Handouts to September 8, 2010 group workshop attendees I: Tally of Approval Authority from September 8, 2010 group workshop J: Transcribed notes from September 8, 2010 group workshop K: Planning Commission minutes from November 9, 2010 meeting L: Planning Commission Staff Report dated November 9, 2010 M: Comments from Subcommittee on administrative processes N: Draft Process Workflow Chart of the Planning Permit Process O: Comparison of current and recommended approval authorities for projects approved between 2007 and 2009 P: Draft standards and example for on-site signage related to development proposals 63 CCCuuupppeeerrrtttiiinnnooo PPPuuubbbllliiiccc EEEnnngggaaagggeeemmmeeennnttt PPPrrroooccceeessssss ---AAACCCTTT Cupertino Public Engagement Process ACT BASIC PRINCIPLES OF PUBLIC ENGAGEMENT  A participation process must ensure that a participant’s time is well spent.  A participation process must be focused and participants’ needs should be fully aired and considered.  Project and participation expectations must be clear from the start. NOTE: Current and proposed approval authority and noticing requirements are further detailed in Attachment A.1 LEVELS OF ENGAGEMENT Advise  Inform the public  Listen to and consider concerns in the decision.  Enhance outreach and information dissemination.  Legal advertisements  Legal notices  Public hearings  Newspaper ads/Cupertino Scene (as needed)  Website  Site signage Collaborate  Work with the public to ensure that concerns and solutions are incorporated in the report to decision-makers.  For projects ≥25 units; 25,000 sq. ft. retail/commercial/50,000 sq. ft. office/industrial  Neighborhood notice (500’ min.)  Neighborhood meetings Team Up  Look to the public for input in formulating project alternatives and solutions for decision-makers to consider.  City-wide postcards  Focus groups /Workshops Project Type Public Engagement Policy (ACT) Advise Collaborate1 Team Up2 General Plan Amendment – Major   General Plan Amendment – Minor   Zoning Amendment (›5 acres)    Zoning Amendment (1-5 acres)    Zoning Amendment (‹ 1 acre)   Zoning Amendment - Minor  Tentative Map (≥ 5 parcels)  Parcel Map (< 5 parcels)  Planned Development Permit – Major   Planned Development Permit – Minor  Conditional Use Permit – Major   Conditional Use Permit – Minor  Architectural and Site Approval (PC)   Architectural and Site Approval (DRC)  Major Amendment   Variance/Exception   PROJECT CONTEXT Project Size Major Collaborate (Neighborhood) Team Up (City-wide/Area-wide) Minor Advise (Adjacent/Radius) Collaborate (Neighborhood) Community Impact Low High 1. “Collaborate” level ≥ 25 units; 25,000sq.ft. retail/commercial; 50,000 office/industrial. 2. All EIRs to be processed at “Team Up” level. 64 PROPOSED PROCESS (GROUP WORKSHOPS)ATTACHMENT A.1 1 of 1 Advise Collaborate (min. 500' radius noticing) Team Up (One City- wide notice) General Plan Amendment – Major1 CC 300‘ 1000’ General Plan Amendment – Minor2 CC 300‘ 1000’ Zoning Amendment (›5 acres)CC 300‘ 1000’ Zoning Amendment (1-5 acres)4 CC 300‘ 1000’4 Zoning Amendment (‹ 1 acre)4 CC 300‘ 500‘4 Zoning Amendment - Minor CC 300‘ Tentative Map (≥ 5 parcels)CC 300’5 4 Parcel Map (< 5 parcels)PC Admin.300’ Development Agreement CC 300'5 4 Planned Development Permit – Major 1 CC PC 300‘ 500‘5 4 Planned Development Permit – Minor 2 PC Admin.300‘ Conditional Use Permit – Major 6 PC/Admin. 6 300’/500‘5 4 Conditional Use Permit – Minor 6 PC/Admin. 6 300’ Architectural and Site Approval (PC)PC Adjacent/1000’ 7 5 4 Architectural and Site Approval (DRC) (Admin) DRC Admin.Adjacent  Major Amendment PC/CC 300’5 4 Yard Interpretation PC Admin.Adjacent  Variance/Exception - PC/CC PC/CC 300’ 500‘5 4 Variance/Exception – DIR Admin.300‘ Sign Exceptions DRC/PC Admin./PC 8 Adjacent/300' 8  Fence Exceptions DRC Admin.Adjacent  R1 Exceptions DRC 300' R1 Ordinance permits Admin.Adjacent/300' Tree Removal Admin./PC 9 300' Extensions CC/PC Admin.None 10  NOTES: 3.  Projects with combined applications shall be processed at the highest level of requirement. 5.  Collaborate Level - 25 units; 25,000 square feet retail/commercial; 50,000 office/industrial. Min. noticing radius - 500'. 7.  1000’ requirement for wireless and personal communications facilities. 8.  Exceptions for Readerboard and Freeway Oriented signs approved by Planning Commission with 300' radius. 9. Heritage Tree Removals to be approved by Planning Commission. 10. One year extensions approved on consent with no noticing. 4.  All EIRs to be processed at Team Up level and approved by City Council. 6. Conditional Use Permits – Major/Minor determined by size of project as noted above. Approval body determined by use per ordinance. 2. Minor (CEQA Exempt) ‹ 5,000 sq.ft. commercial; 10,000 sq.ft. commercial/office/industrial non-residential; eight six residential units. Project Type CC/PC/Admin. Proposed Noticing radius (unless requiring Collaborate or Team Up Public Engagement Policy (ACT) 3 1. Major ≥ 5,000 sq.ft. commercial; 10,000 sq.ft. commercial/office/industrial non-residential; eight six residential units. 65 Management Study of the Permit Process CITY OF CUPERTINO, CALIFORNIA 721 Colorado Avenue, Suite 101 Palo Alto, California 94303 v.650.858.0507 f.650.858.0509 November 17, 2009 66 Table of Contents 1.  EXECUTIVE  SUMMARY  1   2.  ANALYSIS  OF  PERMIT  STAFFING  8   3.  ANALYSIS  OF  THE  PERMIT  PROCESS  17   4.  ANALYSIS  OF  THE  AUTOMATED  PERMIT  INFORMATION  SYSTEM  71   5.  ANALYSIS  OF  THE  PERMIT  CENTER  80   6.  ANALYSIS  OF  PERMIT  ADMINISTRATION  81   7.  ANALYSIS  OF  THE  PLANNING  COMMISSION  AND  DESIGN  REVIEW  COMMITTEE  100   APPENDIX  1  -­‐  PROFILE  107   APPENDIX  2  -­‐  FOCUS  GROUPS  133   APPENDIX  3  -­‐  COMPARATIVE  SURVEY  143   APPENDIX  4  –  SUMMARY  OF  RECOMMENDATIONS  156   67 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 1 1. EXECUTIVE SUMMARY The report, which follows, presents the results of the organization and management analysis of the permit process conducted by the Matrix Consulting Group. This first chapter introduces the analysis – outlining principal objectives and how the analysis was conducted, and the executive summary. 1. AUDIT SCOPE AND OBJECTIVES. The project team conducted a comprehensive organization and management analysis of the permit process in Cupertino including the existing operations, process, service levels, and staffing levels. The analysis was to be fact based and include all aspects of service provision by the City. The analysis focused on: • Organizational structure, including the division of labor and manager/supervisor spans of control; • Effectiveness of staffing and service levels including, but not be limited to, staff assignments, workload, training, and cost-effectiveness of service levels and service delivery; • Opportunities to streamline the permit process; and • Benchmarks and other objective indicators of program effectiveness. The approach of the project team in meeting this scope is portrayed below. • Develop an in-depth understanding of the key issues impacting the permit process. The Matrix Consulting Group conducted interviews with City staff involved in the permit process at all levels. Interviews focused on goals and objectives, management systems, the use of technology, the levels of service provided by the City, the resources available to provide those services, etc. • Develop a profile of the divisions involved in the permit process. The Matrix Consulting Group conducted interviews with City staff and other key staff in the City to document the current organization of services, the structure and functions of the Department, budgets, workload data, management systems, inventory of the infrastructure, etc. 68 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 2 • Conduct a comparison of the permit processes, program, and practices to ‘best management practices.’ • Conduct focus groups to elicit feedback from customers of the City’s permit processes regarding the adequacy of the levels of service provided by the City. • Evaluate the staffing, organization structure, and service levels in the divisions involved in the permit process. This included interviews with key staff to develop an understanding of the current service delivery model, evaluation of the adequacy of current service levels, work practices, work planning and scheduling systems, productivity and staffing levels, the plan of organization, and asset management. The objective of this assessment was to identify opportunities for improvement in the operational and economic efficiency of the City in the delivery of permit services and practicable opportunities for enhancing the quality of its product and services. 2. FOCUS GROUP PARTICIPANTS VIEWED CUPERTINO’S PERMIT PROCESS AS ONE OF THE BEST IN SILICON VALLEY. As part of the management study of the permitting process, the Matrix Consulting Group conducted three focus group meetings with a representative sample of customers of the process. The purpose of the focus group meetings was to obtain development industry perceptions of Cupertino’s permitting process and to assess overall customer satisfaction. Overall, the response of the participants in the focus groups regarding the Cupertino permitting process was quite positive. Most of the participants were involved in development in many Silicon Valley cities, and they gave Cupertino high grades relative to their experiences in nearby communities. With respect to staff attitude, helpfulness, accessibility and reasonableness, the focus group participants ranked Cupertino among the top three cities, along with Sunnyvale and Santa Clara. They 69 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 3 generally felt that Cupertino was substantially better than San Jose, Menlo Park and Palo Alto, and slightly better than Mountain View, Milpitas and Fremont. The “small town atmosphere” was cited as a Cupertino advantage. Staff members were generally available when needed, and they exhibited a friendly and positive attitude. Most participants knew staff members of all departments by name, and they appreciated the fact that, for any given project, they generally dealt with the same planner, plan checker, inspector and engineer throughout the entire process. The word “excellent” was used several times in describing the attitude and professionalism of staff. The groups were nearly unanimous, however, in identifying two major problems with the Cupertino permitting process: (1) lack of an effective automated on-line permitting information system, and (2) the City’s politically-charged atmosphere relative to development and growth. Participants felt that Cupertino lagged far behind adjacent jurisdictions in providing an efficient, reliable and user-friendly automated/on-line system. They cited hand-written applications, difficulties in checking the status of an application, and delays in receiving staff comments and corrections as problems that could be solved by such a system. While the politically charged atmosphere was not part and parcel of the permitting system, it is a major determinant of the overall perception of Cupertino’s attitude toward development and the development industry. Participants recognized the sharp division of opinion within the community-at-large with regard to development and growth, which division was reflected within the City Council and between the Council 70 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 4 and the Planning Commission. The result of this atmosphere for developers was less predictability, greater risk, greater frustration and unanticipated time delays. 3. THE CITY EMPLOYS A NUMBER OF BEST PRACTICES. An organizational and management analysis by its nature focuses on opportunities for improvement. However, there are a number of strengths in the City. Examples of these strengths are portrayed below. • The City Council conducts an annual goal setting session to establish the annual work program for the City – including items related to the land use planning of the City. • The Planning Commission members are provided the opportunity to attend the annual League of California’s Cities Planner Institute. Newly appointed Commission members are provided an orientation by City staff. • Staff reports provide a discussion of the staff recommendation to the Planning Commission and identified, where appropriate, alternatives to be considered. • Planning Commission meetings are televised and prior meetings are archived and available for viewing of the City’s web site. • The Planning Division is the sole point of contact for the applicant. All planning permit applications are submitted to the Planning Division counter in the permit center and routed to other divisions by the Division. • Building permit plan checks for zoning compliance are typically completed by the Planning Division on the same day (or within one business day) of receipt from the Building Division. • All major planning ordinances and regulations, including the general plan, the zoning ordinance, and design guidelines are available on-line through the City’s web site. Additionally, Planning Commission agendas (current and prior) and minutes are available to the public on the website. • The Building Official conducts weekly training with inspections personnel to update on new codes, convey code interpretations, etc. • Over-the-counter building permit plan check service is generally available for very small residential projects (250 sq. ft. or less) that can be reviewed by Building Division staff in less than thirty (30) minutes, and for very small commercial projects which can be reviewed by Building Division and Fire District 71 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 5 staff in less than thirty (30) minutes. Commercial over-the-counter plan checks are made only on Tuesdays, Wednesdays and Thursdays, between the hours of 1:30 and 2:30 p.m. Fire District staff is available only at these times. • Over 40% of building permits are issued over the counter. • The Building Division has published “target dates” for plan review submittals, including for express (5 business days), new construction (10 business days), and tenant improvement (10 business days). • A one-stop shop exists for submittal of permit applications. • Building inspection requests are responded to by a Building Inspector within one workday of request. • Inspections can be requested online, via fax, e-mail, and telephone. • Combination inspectors are assigned to general geographical locations and conduct all types of inspections within their respective area. • Inspectors utilize hand-held devices to record and upload inspection results. • The Building Division allows the phased permits such as foundation-only permits. • The Engineering Division publishes commercial and residential guides on-line that identify how the development process works (including cycle times), and the types of information that need to be submitted, and to whom. These strengths provide a sound basis for further enhancements. 4. AGENDA FOR IMPROVEMENT OF THE COMMUNITY DEVELOPMENT DEPARTMENT. In developing recommendations for the improvement of the permit process, the project team was guided by a philosophy that Cupertino should be the “best of the best.” That philosophy, and its impact on the permitting process, is reflected in a publication of the American Planning Association entitled The Development Review Process: A 72 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 6 Means To A Nobler and Greater End.1 The publication indicated that to be the “best of the best”, a City’s permitting process needs to deliver: • Predictability including clear expectations, no surprises, and a clear decision process with decision points; • Fair treatment with rules that are the same for everyone with the offering of trust to applicants by the City and the demonstration of trustworthy behavior by the City; • Accurate and accessible information that is easy to find and understand, with clear applicant requirements and standards; • Timely processing that establishes early tentative dates for hearings, guaranteed review turnaround times. And published commission and council meeting dates; • Reasonable and fair costs for application fees, impact fees, and development commitments; • Competent staff with a team that possesses a balance of “hard” technical skills and “soft” people skills; • Elegant regulations that fit the circumstances of Cupertino, are easy to navigate, are rational, and that contain desired outcomes not requiring “herculean” efforts top attain. The report itself contains over 100 recommendations. It is important for the City, as it begins to implement these recommendations, not to get lost in the volume and number of recommendations. One of the first steps should be that the Community Development Director develop a plan of implementation for the recommendations contained within this report for the review and approval of the City Manager. The recommendations contained within the report are summarized in the appendix. 1 American Planning Association, Zoning Practice, The Development Review Process: A Means To A Nobler and Greater End, January 2005. 73 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 7 The principal opportunities for improvement that apply to all aspects of the permit process address the City’s need for better technology management accountability, a streamlined process, enhanced training for employees. To that end, the top five recommendations regarding the permit process are presented below. (1) A fully functional automated permit information system. Use of technology to enhancer the management of the building, planning, and engineering permit processes including: • Acquire and fully deploy an automated permit information system; and • Fund technology expenditures with a technology fee to be assessed on building, planning, and engineering permits. (2) Clarity of regulations - Strive for clear and understandable regulations that provide developers real guidance and direction at the very conception of their project (e.g., Heart of the City Specific Plan). (3) Simplification of the permit process - streamline the planning and building permit plan check processes by simplifying a complicated process for minor permits, and empowering staff and the Planning Commission with additional decision making authority. Overall, the City’s permit process is one of the more convoluted processes observed by the Matrix Consulting Group. (4) Accountability – Develop and deploy management controls and reporting systems that enable the City Manager to hold the Community Development Director, Public Works Director, and Planning, Building, and Engineering division- heads accountable for meeting cycle time objectives for plan checking. (5) Training - Staff development in the Building Division, Engineering Division, and Planning Division so that the staff has the necessary set of skills to effectively serve the applicant and the community. * * * ` * * * The chapters that follow present these recommendations in more detail. 74 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 8 2. ANALYSIS OF PERMIT STAFFING This chapter presents an analysis of the staffing requirements for the Community Development Department and the Engineering Division of the Public Works Department as it pertains to the processing of planning, building, and engineering permits. 1. STAFFING IN THE PLANNING DIVISION IS SUFFICIENT TO HANDLE EXISTING CURRENT PLANNING WORKLOAD. The project team reviewed the recent workload of the current planning function to determine the appropriateness of existing staffing levels. The first table below outlines the estimated hours available by a current planner for review activities – assumptions are made regarding time spent on non-planning functions such as leave time (vacation, sick, holidays), training, and staff meetings. Element Hours Total Annual Hours 2,080 Holidays 88 Vacation 80 Sick Leave 80 Training 80 Staff Meetings (8 hours per month) 96 Administrative Duties/Projects (8 hours per month) 96 Total Annual Available Hours Per FTE to Conduct Reviews 1,560 These assumptions show that each full-time employee has, on average, 1,560 hours per year to devote to planning activities. Since the City has made a decision to have employees involved in both current planning and advanced planning, a portion of these hours would be allocated to the advanced planning and current planning. The following tables outlines the current workload experienced by the City of Cupertino over the last three years. Workload has clearly been declining, a pattern found in California as a whole. The first table outlines the number of applications, by type, for the City Planning Division. The second table summarizes applications by 75 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 9 approval level (to show the workload associated with applications considered at the staff, Planning Commission, Design Review and City Council approval levels. Application Workload By Type of Application / Permit Application Type 2006 2007 2008 3 Year Average Architectural Site Approval 25 19 9 17.7 City Project Applications 3 4 2 3.0 Development Agreements 0 0 0 0.0 Director's Minor Modifications / Temporary Use Permits 36 38 37 37.0 Environmental Assessments 20 10 10 13.3 Exceptions 14 11 17 14.0 General Plan Amendments 0 0 1 0.3 Interpretations 0 1 0 0.3 Minor Residential Permit 38 34 37 36.3 Modified/Amended 7 3 5 5.0 Municipal Code Amendment 3 1 4 2.7 R-1 Design Review 62 44 32 46.0 Specific Plan Amendments 1 0 1 0.7 Tentative Map 12 12 2 8.7 Tree Removal Permit 17 14 16 15.7 Use Permit 14 11 4 9.7 Variance 2 3 1 2.0 Zoning 6 0 1 2.3 Application Workload Sorted by Approval Level Applications by Approval Level 2006 / 07 2007 / 08 2008 / 09 (estimated based on 6 month data) 3 year Average Planning Commission Application (INT, M, TM, V) 26 8 12 15.3 City Council Applications (CP, GP, MCA, SPA, TR, U, Z) 34 32 32 32.7 Design Review Committee Applications (ASA, EXC) 45 29 14 29.3 Staff Level (DIR, R, RM) 160 100 90 116.7 Environmental Assessments 12 8 8 9.3 TOTAL 277 177 156 203.3 76 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 10 The project team evaluated staffing levels based upon the 2008 workload. The following table summarizes the annual workload for current planning functions based upon 2008 and applying an estimated number of hours per review for each category of application based upon user fee studies conducted by the project team with significant increases in the staff hours per type of permit made for Cupertino based upon the staff- intensive permit processes used by the City for these types of permits. Application Type 2008 Workload Hours to Review Hours Required Minor Architectural Site Approval 5 24 120 Major Architectural Site Approval 4 32 128 City Project Applications 2 30 60 Director's Minor Modifications / Temporary Use Permits 37 16 592 Environmental Assessments 10 60 600 Exceptions 17 32 544 Minor Residential Permit 37 32 1,184 Modified/Amended 5 32 160 Municipal Code Amendment 4 200 800 R-1 Design Review 32 32 1,024 Specific Plan Amendments 1 300 300 Tentative Map 2 32 64 Tree Removal Permit 16 10 160 Minor Use Permit 2 40 80 Major Use Permit 2 120 240 Variance 1 32 32 Zoning 1 150 150 TOTAL 6,238 Important pints to note regarding the data presented in the table are presented below. • There is an estimated need for 6,238 hours of current planning activity or the equivalent of almost 4.0 full-time equivalent professional planners. • Additional staff hours would be required for the coverage of the counter and building permits. This should not be a significant amount of hours beyond that required for the planning permit workload. • In evaluating this balance of workload to available staff, it should be recognized that the City Planner should not allocate more than one-half of his available work 77 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 11 hours to current or to long-range planning workload; the remainder should be allocated to management of the Division. • This would suggest that only 5.0 full-time equivalent positions authorized for the Planning Division are actually available for processing planning permits. This excludes the temporary and unbudgeted Assistant Planner position. The workload data clearly indicates that the Planning Division has adequate number of authorized positions to deal responsively with planning permit workload. The remaining 1.0 planner position within the Planning Division should be utilized to address the advanced planning services that are necessary to develop and update regulations that fit the circumstances of Cupertino, are easy to navigate, are rational, and that contain desired outcomes not requiring “herculean” efforts top attain. In addition, the City Planner Recommendation #1: Staffing in the Planning Division is sufficient to handle existing current planning workloads. 2. THE NUMBER OF BUILDING INSPECTORS IN THE BUILDING DIVISION IS MORE THAN SUFFICIENT GIVEN CURRENT INSPECTION WORKLOAD. The primary objective of the Building Inspectors is to conduct building permit field inspections to ensure commercial and residential construction projects are being conducted to various codes and standards. Inspectors spend the majority of their time in the field, with the following outlining a typical day: • 6:30 to 7:30: plan inspection route, provide 2-hour window to customers, etc. • 7:30 to 11:30: conduct field stops and inspections • 11:30 to 12:30: lunch • 12:30 to 4:00: conduct field stops and inspections • 4:00 to 4:30: enter and / or upload results of field inspections using the Palm Pilot and Pentamation 78 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 12 The project team analyzed workload data to determine the number of inspections and amount of time spent on inspections for staff within this Division. The level of inspections workload within the Division has fluctuated over the last three years – averaging approximately 22,120 total inspections per year based on data obtained from the City, as shown below for the past three fiscal years: Year Number of Inspections 2006 / 2007 24,816 2007 / 2008 20,147 2008 / 2009 21,398 It is important to note these figures represent the total number of inspections, not inspection “stops”. Typically, each inspection stop includes a multiple number of inspections. Based on our experience working with other cities, building inspectors average a little less than 3 (2.95) inspections per inspection stop. Applied to number of Division inspections above, this equates to approximately 8,655 stops made by inspectors in FY 2006 / 2007, 6,741 inspection stops in FY 2007 / 2008, and an estimated 7,169 inspection stops in FY 2008 / 2009. The benchmark utilized by the project team for the number of inspection stops per inspector is an average between 12 and 16 on a daily basis. Utilizing an average personnel availability of 208 working days per year (or 1,664 available hours per employee after leaves, training time, etc.) for each of the Divisions four (4) building inspectors, the following table estimates the number of daily inspections stops: Year # of Inspections # of Inspection Stops (Estimate) # of Inspection Stops per Day (Estimate) # of Daily Stops / Inspector @ (3.5 Inspectors) 2006 / 2007 24,816 8,655 41.6 11.9 2007 / 2008 20,147 6,741 32.4 9.3 2008 / 2009 21,398 7,169 34.5 9.9 79 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 13 Based on this assessment, there are opportunities to reallocate resources and enhance the utilization of Division building inspectors. As overall development activity fluctuates in the City, this directly impacts the number of inspections required. At the staffing level of three and one-half inspectors, the average daily number of stops ranged between 10 and 11. Recommendation #2: Maintain current building inspection staffing levels and, when workload permits, utilize Building Inspectors for other duties such as plan checking of residential interior remodels, over-the-counter plan checking, etc. 3. AUTHORIZED STAFFING FOR BUILDING PERMIT PLAN CHECKING AND COUNTER SERVICES IN THE BUILDING DIVISION IS SUFFICIENT GIVEN EXISTING WORKLOAD. The Building Division allocates one Building Inspector to review and process over-the-counter plan check applications (supported / backed-up by other Building Inspector personnel as needed), and one Plan Check Engineer to review plans for small projects (remodels, small additions, etc.), mid-size projects (larger additions, remodels, etc.), and large-size projects (brand-new homes, major tenant improvements, etc.) The Counter Technician utilizes a routing sheet during the intake process that includes: • Basic contact information; • Project description and number; and • Routing sheet (for other departments such as public works, fire department, etc.) Overall, the application review process involves knowledge and activities associated with the uniform building codes, national electronic codes, plumbing and mechanical codes, energy and Title 24, sending out correction notices, structural plan checks, and issuing building permits, and the permit process include reviewing applications, attending pre-application meetings, and recommending conditions. 80 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 14 (1) The Building Permit Plan Check Function is Adequately Staffed. The City has authorized a number of various staff to support the building permit application process as needed, including the following: • Building Division: 2 (1 dedicated front-counter building inspector and 1 plan check engineer, and other building inspectors as back-up when necessary) • Planning Division: 5 full-time plus 2 interns • Public Works: 3 technician and engineering positions • Fire: 2 offsite positions (with designated counter hours on a weekly basis) • Sanitary: 1 off-site position During FY 2007 / 2008, the Building Division received and processed 2,177 total building permits (703 commercial permits and 1,474 residential permits), with 42% being approved over the counter by the designated front-counter building inspector – equaling approximately 1,262 building permits requiring routing and approval. Based on previous user fee studies conducted by the firm for building permits, the average staff hours required for plan checking a building permit plan is 4.1 hours (ranging from a high of 30 – 35 hours for large family dwelling, hotels, motels, churches, etc., to a low of 1 to 4 hours for signs, demos, etc.). Based on this data, the following table estimates the staffing requirements for the building permit plan check process. Hours # of Permits Reviewed 1,262.0 Avg. Hours to Process 4.1 Hours Required 5,174.3 FTE Availability (Available Hours per Staff 1,560.0 FTEs Required 3.3 As shown above, over 5,000 hours are utilized to review building permit applications, or approximately 3.3 full-time equivalent positions. Given the number of 81 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 15 personnel allocated for possible building permit application review, as well as the number of contractors being utilize to complete their current workload, the number of staffing is appropriate given the workload. Recommendation #3: Continue with the staffing levels that are allocated to building permit plan checking in the Building Division. (2) Building Division Staffing Levels for the Front-Counter Are Appropriate. The full time Building Inspector positions serve as the primary points of contact for the front counter, provide public information, respond to inquiries regarding application status and timing, intake applications and plans for review, calculate plan review and permit fees, and perform over-the-counter plan review for projects with standard plans and/or simple scope. The administrative support positions primarily assist with the processing of new permit application submittals, including data entry of project application information, creation of project files, coordination of sending and receiving plans that are routed to the appropriate reviewing departments (i.e., public works, fire, sanitation, etc.), processing plan check fees, collecting fee balances, and issuing permits. In addition, these positions provide back up support to the counter function due to absence of either of the primary contacts. The Building Division’s staffing level for its permit intake and processing function is consistent with jurisdictions of similar permit processing workloads and development climates. However, the workload of permit counter staff is exacerbated by the lack of an automated permit information system. Inefficiencies in the current intake and processing function include: • Applicants typically complete an application using a paper-based system. 82 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 16 • The Office Specialist position then inputs the handwritten application information into the Division’s permit information system (Pentamation) Although existing staffing levels for the Division’s permit counter are adequate for existing workload, an improved permit information system may work to reduce wait time at the counter, elimination of duplication of effort on data entry, better internal financial control, and increase the number of over-the-counter project reviews. Further evidence that suggests adequate staffing is the focus group participants’ perception that plan check turnaround time is more than satisfactory. Recommendation #4: Continue the adequate level of staffing dedicated to the Building Division’s permit counter. 4. THE AMOUNT OF STAFF AUTHORIZED FOR THE ENGINEERING DIVISION FOR BUILDING, PLANNING, AND ENGINEERING PERMITS IS APPROPRIATE. Currently, the Engineering Division allocates various personnel, as needed, toward processing the building permits that are routed from the Community Development Building Division for review. The project team documented the number of permit applications processed by the Engineering Division for review and approval. The level of staffing allocated to the Division is sufficient for permit plan checking of engineering permits, building permits, and planning permits. Recommendation #5: The Engineering Division should maintain the staffing authorized for the permit plan check process. 83 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 17 3. ANALYSIS OF THE PERMIT PROCESS This chapter presents an analysis of the permit process including planning, building, and engineering permits. The analysis identifies opportunities to (1) streamline the process for minor permits, and (2) enhance the management of the process. Overall, the City’s permit process for minor planning permits and minor building permits is much more complicated than necessary and than that found in the City’s peers. The recommendations of the project team to simplify and streamline the process are presented in the following sections of this chapter. 1. THE PROCESS FOR MINOR PLANNING PERMITS SHOULD BE STREAMLINED THROUGH THE DEVELOPMENT AND APPLICATION OF PERFORMANCE STANDARDS. One of the “building blocks” of the permit system is the regulatory framework. The zoning ordinance is the regulatory framework that drives the planning permit process. There are a number of tradeoffs in the development and administration of zoning ordinances including: • Flexibility versus predictability; • Flexibility versus administrative cost; • Development cost versus quality; • Preservation versus development; and • Under-regulation versus over-regulation. In considering these tradeoffs, there are a number of lessons to be learned from other cities. These lessons include striking the right balance between discretionary review and “as-of-right” development. 84 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 18 The Matrix Consulting Group does not believe that the City has struck that right balance. While the Community Development Director is authorized to approve, conditionally approve, or deny minor planning permits, the minor permit process is complicated, more so than other comparable cities. Cupertino, for example, requires a planning permit for: • Construction of a two-story residence; it is not an “as-of-right” permit; • All new or expanded second story decks for single family residences with views into neighboring residential side or rear yards; • Changing a wood fence to a wrought iron fence in front of a fifteen (15) unit residential project; and • Minor landscaping and exterior enhancements for a condominium project. The Matrix Consulting Group recommends that the process for minor planning permits be streamlined. There are several alternatives to streamline the minor planning permit process. These alternatives are presented below. • Increase the types and extent of minor projects approved at the Director-level. This could include: – R2/R3/ML/PD – minor architectural and site modifications – Sign, fence, deck, R1 exceptions; – R1 front yard interpretation; – Tandem garage review; – Minor building less than 5,000 square feet including commercial/office/industrial and four (4) residential units or less – equivalent to a Director’s Architectural and Site Application; and – Minor use permits. • Increase the approval authority of the Planning Commission; 85 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 19 • Reduce projects requiring City Council review such as conditional use permit extensions, appeals of the Director’s decision, etc.; • Permit outright the uses that are currently permitted with minor planning permits by the Community Development Director, where appropriate, using performance- based development standards; or • Permit outright the uses that are currently permitted with minor planning permits by the Community Development Director with limitations with specific performance-based development standards). Many of the conditional uses in the existing zoning ordinance are appropriate considering the circumstances such as hotels, full-service restaurants, theaters, etc. This is because site-specific impacts can be considered based upon neighborhood concerns expressed at public hearings, and appropriate conditions of approval then applied to minimize impacts. The reasons for requiring minor planning permits for all new or expanded second story decks for single family residences with views into neighboring residential side or rear yards are far less clear. Potential impacts can be addressed with performance standards. These performance standards are designed to deal with two basic concerns: • How to minimize the adverse effects that new construction or the use of one’s property can have on its neighbors; and • How to encourage optimal development patterns and activities within a community, as expressed in planning policies. The Matrix Consulting Group recommends a new “limited” designation concept that would impose standards and performance requirements that recognize the types of uses and the project conditions that generate adverse effects while streamlining the minor planning permit process. The use of performance standards would simplify the use regulations, avoid extensive reliance on minor planning permits, and streamline approvals by deeming 86 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 20 such uses permitted subject to codified performance standards. These codified performance standards would need to be tailored to the type of use. The streamlining of the process, based upon the application of performance standards, would expand the number of permits that are permitted, if performance standards are met. For example: • Ministerial Review (e.g., plot plan or Director’s Review). No discretionary review and no conditions of approval; subject to codified performance standards. • Quasi-ministerial review (e.g., tree removal permit). Discretionary review for CEQA document; conditions of approval may be required; subject to codified performance standards. No conditions of approval or public hearing; approved by the Community Development Director The Matrix Consulting Group believes that the City’s processing of minor planning permits should be streamlined, using performance standards. The process should be streamlined so that these types of minor development are treated as a permitted use that would only require a building permit, not a minor planning permit. This modification to the process would require the development of effective design guidelines for all of the types of residential development that occur within the City (single-family and multi-family) and the development of performance standards for this type of development. Recommendation #6: The City should streamline the process for minor planning permits by increasing the number of permitted uses that require quasi-ministerial review and are subject to codified performance standards. Recommendation #7: The Planning Division should develop codified performance standards and requirements for these minor permits for consideration and approval of the City Council. Recommendation #8: The approval of these codified performance standards and requirements by the City Council should be sequenced to the conversion of these minor planning permits to permitted uses. 87 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 21 2. THE PLANNING COMMISSION SHOULD BE THE FINAL APPROVAL AUTHORITY FOR CONDITIONAL USE PERMITS AND VARIANCES. Section 19.124.060 of the City’s zoning ordinance provides that upon receipt of a recommendation of the Planning Commission pursuant to Section 19.124.050, the City Council may approve, modify, or disapprove the recommendation of the Planning Commission for conditional use permits and variances. This is a highly unusual level of approval for these types of permits. In each of the peer cities included in the comparative survey, the zoning administrator was approving conditional use permits and variances. None of the peer cities required the approval of a Planning Commission and a City Council. This process is also unusual in that the City Council rarely reverses a decision made by the Planning Commission. Section 19.124.060 of the zoning ordinance should be modified. The Planning Commission should be the final decision-making authority with the City Council having the right of appeal. This is the role of a planning commission that was envisioned when these commissions were originally created in the United States: to provide for a public hearing for land use decisions to enable the input of adjacent property owners and consideration of that input in land use decisions. Recommendation #9: Section 19.124.060 of the zoning ordinance should be modified. The Planning Commission should be the final decision-making authority for conditional use permits and variances with the City Council having the right of appeal. 88 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 22 3. THE PLANNING DIVISION SHOULD NOT WRITE STAFF REPORTS FOR MINOR PLANNING PERMITS OR MAIL PLAN SETS TO ADJACENT RESIDENTS. With or without the streamlining of the minor permit process, there are other steps that the City should take to simplify that process. These steps are presented below. • The staff of the Planning Division should not write staff reports for minor permits. At the present time, staff arte writing 3-page staff reports for such types of minor permits as: – Constructing a 42 square foot addition to an existing 2-story SFR; modification to a use permit; – Minor modification to re-landscape the front of an apartment complex; – Minor architectural landscaping and outdoor patio enhancements at an existing bank; – Allowing a portion of a 2-car garage to encroach by 1-foot into the 19-foot front-yard setback; and – Enclose an existing sunroom that is setback 17' from the rear property line. This is an inefficient use of the time of the staff of the Planning Division. Staff should document the findings and conditions of approval for these minor permits into the automated permit information system. Written reports should not be developed for these minor permits. This is the typical approach used by the City’s peers; staff in the planning divisions in these peer cities are not writing staff reports for minor permits. • The Planning Division should not mail the plan sets for minor permits to those adjacent property owners that are noticed. These adjacent property owners should still be noticed. However, these plan sets should be made available at City Hall if requested. Most other planning divisions in these peer cities do not even notice these minor permits. Overall, the process utilized for minor planning permits should be simpler than the process used for major planning permits. At the present time, the difference is indistinguishable. Second story residential decks are being treated as if they were major 89 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 23 land development. While the impact on and interest of adjacent property owners should not be ignored, the process should be simplified to reflect the scope of the proposed development. Recommendation #10: The staff of the Planning Division should not write staff reports for minor permits. Recommendation #11: The Planning Division should not mail the plan sets for minor permits to those adjacent property owners that are noticed. 4. APPEALS OF DECISIONS REGARDING PLANNING PERMITS SHOULD BE LIMITED TO ONE APPEAL. At the present time, decisions regarding planning permits may be appealed as much as two times. These decisions can be appealed to the Planning Commission and to the City Council. This is an unusual appeal process not utilized in peer cities. The appeal process should be modified so that only one appeal is possible. The City Council itself, however, should continue to be able to appeal decisions to the Council-level itself. Recommendation #12: The number of appeals that are possible for planning permits should be limited to one appeal. 5. ELIMINATE THE REQUIREMENT FOR A COVENANT. An obstacle to permit streamlining is the requirement for the filing of covenants subsequent to approval of a planning application. This was a common practice in the 1980’s and some cities continued this practice to ensure that future owners of property or tenants were aware of the conditions of approval. However, in a 1987 decision, Anza Parking Corp. vs. City of Burlingame (1987), courts have determined that conditions of approval “run with the land.” As a consequence, most cities have discontinued requiring of the recording of the 90 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 24 conditions of approval. It is unnecessary. Recommendation #13: Eliminate the requirement for a filing of covenants subsequent to approval of a planning application. 6. THE CYCLE TIME OBJECTIVES FOR PLANNING PERMITS SHOULD BE REDUCED. The Planning Division does not utilize a set of established plan review cycle objectives that differ based upon the nature of the application. The Division is following the statutory requirements that are in place requiring approval or denial of submitted applications. The ability to evaluate actual review times and performance data is difficult because the Planning Division is not utilizing the Pentamation system for tracking of plan review actions and the existing database that is utilized only captures initial application date and date of final action (approval or denial by staff, the Planning Commission, or the City Council). It does not track other relevant dates for applications such as date application deemed complete, date of first and subsequent reviews (if applicable), or dates for individual reviews completed by other departments. The following table summarizes the total processing times for various application types processed in calendar year 2008, based upon the project team’s review and analysis of the available data in the Planning Division database. This table shows the average time, in calendar days, from the date of submittal to the date of decision (either approval or denial). The database also groups items together in broad categories making evaluation of subsets of applications by type more difficult. 91 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 25 Type of Application Cycle Time Director’s Minor Modifications / Temporary Use 35.0 Exception Applications 17.0 R-1 Design Review 45.1 Minor Residential Permit 32.0 Tree Removal 32.7 The Matrix Consulting Group recommends that differential plan review times be established based upon the size and complexity of the application submission as follow. Possible calendar date targets for processing different types of applications, based upon the experience of progressive cities and counties, are presented in the table below. The City should establish cycle time objectives for all planning applications for the length of time -- in calendar days -- required to process applications from the date of submittal to the date of the applicant's initial public hearing or the approval / disapproval of the application by staff (for those applications subject to administrative approval). Possible calendar date benchmarks for processing different types of planning applications are presented in the table below. Application Type Review Times in Calendar Days Architectural Site Approval 90 Director’s Minor Modifications / Temporary Use 30 Exception Applications 30 Minor Residential Permits 30 R-1 Design Review 30 Minor Residential Permit 30 Tree Removal 7 Conditional use permit 60 Variance 60 Parcel Map 60 These possible targets for processing applications are based upon the project team’s experience, and should be reviewed by the City Planner, Community Development Director, and the City Manager, modified as necessary, and adopted by 92 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 26 the City Council. Within these processing times, differential time periods for review for the first submission and re-reviews should also be established. Typically, the re- submittal plan review timeframe should be established at no more than one-half of the time review period for initial review. For the Planning Division to effectively set cycle time objectives and meet them, it is important to have an effective public education effort and the availability of application guides that identify, in detail, submittal requirements and that provide guidance to the applicant. Case managers accepting applications must conduct a thorough review to ensure that applications are complete (have all required elements for a review to be conducted) or to inform the applicant of the missing items. Recommendation #14: The timelines for processing of planning permits by the City should be reviewed and revised to provide differential time periods for review based upon project size and complexity and to differentiate between initial and re-submittal reviews. Plan review timeframes for re-submittals should be established at no more than one-half the timeframe required for the initial review. Recommendation #15: Adopted cycle time objectives for planning permits should be published to the Department website and prominently displayed in the Department’s application materials. 7. THE PLANNING DIVISION SHOULD MAKE THE TENTATIVE PLANNING PERMIT APPLICATION SCHEDULE MORE VISIBLE ON ITS WEB PAGE. The Planning Division has developed a tentative application schedule for planning permits. However, this schedule is “hidden” in a 34-page planning application form. The Division should separate this schedule from the 34-page application form, and publish it separately to its first web page for the Planning Division in the Planning “sidebar.” The “sidebar” should contain a link to the tentative application schedule. 93 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 27 Recommendation #16: The Planning Division should separate the tentative application schedule from the 34-page planning application form, and publish it separately to its first web page for the Planning Division in the Planning “sidebar.” 8. DEVELOP AND ADOPT PLANNING PERMIT CYCLE TIME AGREEMENTS WITH APPLICANTS FOR HIGH PRIORITY PROJECTS. Effective planning permit services are able to provide services in a way that is quick, consistent and predictable. The recommendations to change the way the Planning Division provides its planning permit plan check services will help the City enhance its services. This is particularly important as the City competes against its peers for commercial development. A tool that the Cupertino could utilize to enhance its effectiveness in competing against its peers for commercial development is the use of cycle time agreements with applicants for high priority projects. These agreements, which should be used selectively to further the City’s economic development objectives, are simple and highly effective. The agreements are non-binding and typically are limited to 2-pages in length. The City could choose, for example, to offer cycle time agreements for: • Commercial projects in the City’s commercial centers; • Industrial projects that generate or retain over 50 employment opportunities; • Commercial projects that generate significant new sales tax revenue; and • Affordable housing projects of 10 units or more. The City should discuss and decide the types of projects that should be afforded cycle time agreements and the exact content of the agreement. Cycle time agreements should include basic project information and a schedule for processing of the planning 94 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 28 permit plan that includes a schedule for the City and for the applicant. Recommendation #17: Develop and adopt planning permit cycle time agreements with applicants for high priority projects. 9. THE PLANNING DIVISION SHOULD NOT REQUIRE ALL OF THE PLANNING PERMIT APPLICATIONS TO GO THROUGH A PRE-APPLICATION REVIEW. At the present time, a pre-application conference is required prior to submittal on all planning permit applications. The purpose of the pre-application conference is to determine if the application is ready for submittal. The applicant is required to call the case manager to schedule a time for the review of their application materials. The Planning Division recommends that the applicant allow enough time prior to the application deadline to prepare additional information or make changes in case any are needed. This practice should be utilized only for complex applications such as conditional use permits, parcel maps, and architectural and site review permits. It should not be utilized for routine planning permit applications approved by the Community Development Director, for example. The applicant should be able to submit an application in the permit center without pre-application review for routine planning permit applications. This will require that the Division develop and deploy measures to control the submittal of incomplete applications other than the pre-application conference. Recommendation #18: Pre-application conferences should not be required for routine planning permit applications approved by the Community Development Director. 10. THE PLANNING DIVISION SHOULD TAKE MEASURES TO REDUCE THE EXTENT OF INCOMPLETE APPLICATIONS. In the absence of a pre-application conference, the Planning Division could encounter a significant number of planning permit applications being deemed 95 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 29 incomplete thirty days after submittal. The Division needs to take steps to assure that the proportion of applications deemed incomplete after the thirty-day review is relatively small. (1) The Planning Division Should Develop and Adopt a Written Policy On Planning Application Completeness. This policy should be developed to clarify the responsibility of the Planning Division staff assigned to the permit center for checking planning applications for completeness at submittal and rejecting the application if incomplete, the essential submittal requirements for each type of application to be deemed complete, timelines for all divisions / departments involved in the 30-day completeness review to provide comments back to the Planning Division, etc. Recommendation #19: The Planning Division should develop and adopt a written policy on planning application completeness and the basis for rejecting incomplete applications. Recommendation #20: Training should be provided to the Planning Division staff assigned to the Permit Center regarding the basis for rejecting planning applications as incomplete. (2) The Application Guides Should Be Tailored For Each Type of Planning Permit and Include All Of The City’s Requirements For An Applicant To Achieve A Complete Submittal. The Planning Division has developed application forms and guides for its application types such as conditional use permits, variances, etc. The Planning Application form, for example, is for all non-residential applications. It contains a list of all fees charged by the Planning Department. It also contains information required by the Public Works Department for meeting the C3 requirements for water retention on site etc. It is 34-pages long. These application guides need to be customized to each type of permit (i.e., 96 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 30 conditional use permit, variance, etc.). The guides should define the required submittal and application information for the applicant to aid in the development of a complete application for each specific type of permit. These application guides should not be 34- pages long. These guides should be approximately 4 to 6 pages in length. The City Planner should assemble a team of staff for those divisions / departments involved in the planning permit process and update all of the City’s application guides for planning permits. These guides should include the whole gamut of application requirements, but the City Planner should exercise authority to assure these requirements are realistic. These application guides should include a checklist of submittal requirements that an applicant has to check off and that requires the applicant’s signature. This is designed to have the applicant self-certify the application includes all of the information required to achieve a complete submittal. The Division has developed a limited number of such checklists for parking, for hillside exception applications, tentative maps, variances, and the CEQA initial study. These checklists should be expanded to included each application type, and be integrated with the application guide itself for each type of permit, which is not the case at the present time. Recommendation #21: Planning application guides should be developed for each specific type of planning permit to include all of the City’s requirements for an applicant to achieve a complete submittal. Recommendation #22: These planning permit application guides should be approximately 4 to 6 pages in length. 97 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 31 (3) The Case Manager Should Meet With The Applicant To Discuss Issues That Have Been Found During The Initial Thirty-Day Completeness Review Of The Application Applicants for planning permit applications, or their representatives, should be invited to meet with the case manager and other necessary staff to discuss their application if it will be deemed incomplete at 30-days. The case manager would inform the applicant face-to-face about basic problems, if any, with the application being deemed complete, preliminary environmental findings, basic conditions that might be imposed, and timing for processing of the application. The meeting would allow the applicant to meet staff members that are working on the application, and staff could hear what goals the applicant might have, and what problems the conditions might cause. Recommendation #23: The case manager in the Planning Division should meet with the applicant to discuss issues that have been found during the initial 30-day completeness review of the application. (4) The Planning Division Should Provide Training To Consulting Planners, Architects, Engineers And Developers Regarding Its Planning Permit Submittal Requirements. The Planning Division should be proactive and periodically meet with consulting planners, architects, engineers, and with developers that prepare discretionary permit applications for submittal to the City and discuss planning permit submittal requirements. As part of this training, the staff should identify for consulting planners, architects, and engineers and with developers the most common factors that delay projects. These discussions should also occur after each submittal when consulting planners, architects, and engineers are involved in the development of the application and when they encountered particular problems meeting submittal requirements. The 98 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 32 training of the consulting planners, architects, engineers and developers should be viewed as an ongoing responsibility, almost like preventive medicine. The intent is to prevent a recurring pattern of incomplete submittals. It is in the Division’s best interests to educate applicants, make them aware of how the City interprets regulations, provide them with examples of acceptable work, and otherwise help them navigate the process. Recommendation #24: The Planning Division should provide training to consulting planners, architects, engineers and developers regarding its planning permit submittal requirements. Recommendation #25: The Planning Division should provide training after each submittal when consulting planners, architects, and engineers are involved in the development of the application and when they encountered particular problems meeting submittal requirements. 11. UTILIZE THE AUTOMATED PERMIT INFORMATION SYSTEM TO MANAGE THE PLANNING, BUILDING, AND ENGINEERING PERMIT APPLICATION PROCESS. There are a number of important objectives for the City in the management of the planning, building, and engineering permit process. These objectives include the following: • Consistent interpretation of regulations; • Clear communication of the process and the requirements; • The predictability of the process; • Staff responsiveness; • Consistency; and • Accountability for decisions and the management of the process. The automated permit information system, when fully deployed, should be utilized to enhance the accountability for management of the process. The approach to 99 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 33 the use of the automated permit information system to enhance accountability is presented below. (1) Monitor and Maintain Case Assignment and Case Status Information in the Automated Permit Information System. The current approach to monitoring and maintenance of planning, building, and engineering permit cases could be improved by effective case management, supervision, and monitoring using an automated permit information system including: • Improving management’s ability to track project staff’s progress; • Improving staff’s ability to track concurrent project developments; and • Improving the ability of management to manage workload within their division. Accurate data on workload, by permit type, cyclical variances in activity, and workload activity by team and by planner are all essential management tools. With this information, management can make informed, logical decisions regarding staffing, budgeting, procedures, and organizational structure. This will necessitate managers, supervisors, and staff to be held accountable for the timely input and updating of data into the automated permit information system. This is one of the biggest challenges that cities face in the deployment of these systems. Recommendation #26: Develop and adopt a written City policy and procedure for the maintenance of case status information in the automated permit information system by managers, supervisors, and staff assigned to processing planning, building and engineering permit applications. Recommendation #27: Develop and adopt a written City policy and procedure that assigns responsibility to the division-heads for assuring ongoing maintenance of case status information in the automated permit information system and that requires the division-heads to audit the caseload assigned to staff to determine whether the case is active, is inactive as a result of applicant inaction and should be terminated, or has been closed and the case should be updated in the automated permit information system. 100 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 34 (2) Track And Monitor The Success Or Failure Of Staff Assigned To Processing Planning, Building, and Engineering Permit Applications In Meeting Cycle Time Objectives. The City, once it has established cycle time objectives for planning, building, and engineering permit applications, should utilize the automated permit information system to measure and monitor staff performance in meeting these objectives. It is important for the division-heads to have quantifiable tools to: regulate performance, identify training, staffing needs, and detect organizational deficiencies. The cycle time objectives can serve as fair and accurate means to gauge staff performance for the following reasons: • Staff will know and be familiar with the standards; • Standards are easily understandable; • Standards are flexible; • Standards have been created through their input. The management reports defined and discussed in a later section of this chapter, if generated on a regular basis, would track both individual and overall staff performance. Recommendation #28: The City should hold division-heads in Planning, Building and Engineering accountable for tracking and monitoring the success or failure of their staff in meeting cycle time objectives through regular management information reports generated on a monthly basis by the automated permit information system. Recommendation #29: The ability of the staff in the Planning, Building and Engineering divisions to consistently meet the cycle time objectives should be integrated into their performance evaluation. (3) The Division-Heads Should Be Held Accountable For Formally Planning and Scheduling Planning, Building, and Engineering Permit Applications Processed By Their Staff Using the Automated Permit Information System. The division-heads in the Planning, Building and Engineering divisions should be held accountable for preparing and maintaining a schedule for processing of planning, 101 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 35 building, and engineering permit applications by their staff. The purpose of the schedule is to make visible the amount of calendar days required to analyze and reach a decision on the permit application. The specific objectives related to the design and development of this system should be as follows: • To establish a process whereby specific calendar day targets are set for each application based upon cycle time objectives established by the City; • To utilize the proposed automated permitting systems to ease the tracking of the timeliness of the processing of planning permit applications and enable the division-heads to hold their staff accountable; and • To generate data sufficient to assist in the assessment of the performance of these staff in comparison to those cycle time objectives; Major elements of the system are presented below. • The division-heads would review incoming applications and analyze application characteristics, focusing in particular on potential processing difficulties. Once difficulties are identified, the division-heads would (1) set calendar day targets for completing the analysis of the application, and (2) set overall staff hours allocated to the staff for processing the application. The division-head would review the most recent open case inventory report and note the workload of their plan checking staff. Cases would then be assigned as appropriate. The division- head would then enter the cycle time target dates and the name of the staff in the automated permit information system. • When projects are first assigned, the staff to whom the permit application is assigned would review the calendar day and staff hour target established for the case. If the staff believe that the targets are unreasonable after a review of the application, those staff should discuss them with the division-head and negotiate appropriate changes. • The automated permit information system should be utilized to track the extent to which the specific cycle time objectives are met, and to ‘red flag’ permits that exceed these guidelines. The division-heads should be held accountable for the ongoing maintenance of this open case inventory and the completion of the processing of permits in accordance 102 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 36 with the cycle time objectives. The planning and scheduling system should be utilized to: • Evaluate employee performance; • Balance workload among different staff; and • Quantify the anticipated completion date of various applications given all work in progress. The planning and scheduling system should be designed to manage the workload including reviewing actual progress versus scheduled deadlines and facilitate the shifting of work assignment and schedules in the face of changing priorities or workload. Recommendation #30: The division-heads in Planning, Building and Engineering should formally plan and schedule the permit applications processed by their staff using the automated permit information system. Recommendation #31: The division-heads in Planning, Building and Engineering should be held accountable for the ongoing maintenance of this open case inventory and the completion of the processing of permits by their staff in accordance with the cycle time objectives. (4) Generate Ongoing Monthly Management Information Reports Using the Automated Permit Information System To Track Performance Against Cycle Time Objectives And Monitor The Case Workload And Performance of Staff Assigned To Processing Permit Applications. The division-heads in Planning, Building and Engineering must receive reliable information on workload and individual staff workload to use in scheduling. In addition, overall information on staff efficiency and productivity should be available for staff evaluation. Management information reports capture the detailed information about staff productivity and performance to monitor workload, balance assignments and evaluate internal operations. After several discussions with management and staff, we 103 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 37 recommend the automated permit information system be utilized to track and report the following information: • Division Workload; • Case Tracking; • Elapsed Processing Times; • Work in Backlog; • Personnel Productivity; and • Project Management Measures. The division-heads are not currently provided with the type of reliable information necessary to manage the processing of permits. The Matrix Consulting Group believes it is imperative that management be provided with reliable case information to manage, direct and enhance the operations and the processing of permits. Once these initial management information reports are implemented and used routinely. These management reports focus more on staff performance and workload monitoring necessary for management to evaluate the efficiency and effectiveness of the divisions. Recommendation #32: The City should utilize the automated permit information system to generate ongoing monthly management information reports to track performance against cycle time objectives and monitor the case workload and performance for staff assigned to the processing of these permits. 12. THE ROLE OF THE CASE MANAGER IN THE PLANNING DIVISION SHOULD BE CLARIFIED. The City currently utilizes a quasi-case manager approach in processing planning permit applications in which the assigned case planner takes the lead in shepherding the application through the planning process. The purpose of this case 104 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 38 manager system is to provide applicants with a single point of contact as their permit goes through the multi-department (or Division) plan check process and to coordinate the development of a unified set of comments and corrections for applicants. Assigned case managers currently perform some of the functions of a comprehensive case manager – though additional expansion of these duties is necessary. There are three key aspects of case management that leading organizations use to support an organized approach to permit administration. These are: (1) providing a single point of contact for applicants, (2) having dedicated project managers, and (3) monitoring internal timelines. These are described below: • Single Point of Contact – A single point of contact is having one person assigned to a particular permit or permit type, and having that individual accessible to the applicant for any questions regarding permit application, review, and issuance. • Dedicated Case Managers – Similar to a single point of contact, dedicated project managers (also known as application facilitators, case managers) are typically assigned only for large or complex projects. A project manager is different from the single point of contact, in that the project managers take an active role in managing the permit application through the permit process. • Monitoring Internal Timelines – These are the approaches used to monitor the time it takes to process a permit from the time of permit application. The case manager in the Planning Division should be responsible for managing all aspects of a planning permit application submitted to the Planning Division, including being the single point of contact for applications submitted, monitoring internal timelines and each reviewer (whether within the Planning Division or external to it), and taking an active role in managing the permit application and moving it through the permit process. The case manager should be empowered to manage the review of these permit applications by all staff in the various divisions/departments that are conducting reviews. 105 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 39 The project manager should further be empowered as the team leader of a multi- discipline team comprised of staff from all reviewing entities but particularly from Planning, Engineering, Fire and Building. While the Planning Division already utilizes a quasi-case manager system, the parameters and authority of the case manager should be clarified and defined in writing. The parameters or authority of the project or case manager should include those aspects defined in the following paragraphs. (1) The Case Manager Should Be Responsible for Making Sure the Applicant Gets to a Clear Decision Point in Accordance with Adopted Timelines. The case manager position is designed to make sure that the review of the permit application submitted to the Planning Division proceeds in a timely and predictable fashion. The current process utilized by the Planning Division for processing development permits includes the following: • Applicants have available, under the current process, the ability to attend a pre- submittal meeting with representatives of the various reviewing Departments. Submission requirements and the general conception of the proposed development are discussed. • Once an application is submitted, it is assigned to a current planner who becomes the “project manager” for that project. • Development plans are routed to several departments, including Building, Public Works/Engineering, etc. Reviewing divisions / departments are provided a deadline for returned comments. • After the review meeting, the case manager assigned to the project summarizes the comments and sends them to the applicant. • If revisions are required, based on division / department comments, it is the applicant’s responsibility to work out issues with individual departments / divisions. 106 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 40 While the initial stages of this process are consistent with a good case manager system, the latter stages lack clear guidelines, and sometimes follow-through, on how quickly divisions / departments should respond to revisions made by the applicant and when an ultimate decision will be made. The case manager from the Planning Division assigned to the project should facilitate the resolution of issues between the applicant and reviewing divisions / departments. However clear rules have not been established. As a result, the Matrix Consulting Group recommends that the case manager’s role throughout the process be clarified. Some concerns were identified regarding the ability to get timely responses to voice mail and phone messages left by applicants with reviewing departments/divisions or the assigned planner. To remedy this, all interactions with an applicant should be noted in a Planning Division policy regarding timeframes for responding to inquiries on projects (i.e. – within 24 hours) should be established. If a formal response cannot be given to the applicant within the established time frame, they should at least be contacted and provided a time by which a response will be issued. Recommendation #33: The Planning Division should establish guidelines for reviewing departments to respond to all submissions by applicants and establish clear timelines at each step. This would include the 30-day initial completeness review and subsequent reviews. Recommendation #34: A formal written policy should be established for response times by Planning Division staff to inquiries from applicants that are received via email and/or voice mail. Planning Division staff should be held accountable for meeting these guidelines. 107 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 41 (2) The Case Manager Should Be Responsible for Complete and Timely Communication Among the Multi-Disciplinary Team. The case manager should make sure communication occurs among the multi- disciplinary team, and that complex issues are resolved, such as when conditions of approval issued by individual departments imposed conflicting requirements on the applicant. During the focus groups conducted by the project team, a number of comments were received regarding conditions of approval imposed on projects. Two specific areas of concern were: • Not all conditions appeared to be related to code requirements but were preferences of specific individuals conducting the review; and • Staff reports often contained conditions of approval that differed from those previously discussed between staff and the applicant. While the case manager is not expected to be the technical expert on reviews conducted by other Departments, the project manager project manager should lead any discussions that focus on resolving conflicting conditions of approval or competing code requirements. His or her job is to keep the review process of the permit application submitted to the Planning Division coordinated and predictable. Additionally, the case planner should ensure that all conditions of approval distributed to applicants clearly identify the code or regulation that imposes the condition to prevent conditions being imposed that are “personal preferences”. To ensure that there is no lack of understanding between the applicant and staff, all conditions of approval should be documented in writing and provided to the applicant. Additionally, a copy of the staff’s draft report should be provided to the applicant when developed – ideally with sufficient time for the applicant’s review prior to the meeting at which it is being considered. 108 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 42 Recommendation #35: The case planner in the Planning Division should serve as the project manager and be responsible for the communication among the multi- disciplinary team and the resolution of conflicting conditions of approval or competing code requirements. Recommendation #36: The case manager should ensure that all conditions of approval are provided to the applicant in writing and that each condition references the specific code or regulation that imposes / regulates the issues. Additionally, a copy of the staff report should be provided to the applicant once completed. (3) The Role and Authority of the Case Manager Should Be Clarified in a Written Policy. The responsibility and the authority of the project manager should be clearly spelled out in a written policy developed by the Planning Division, and approved by the Community Development Director. The responsibility and authority, in addition to that previously identified, should include: • Conducting pre-application meetings and reviews as appropriate; • Collecting and integrating comments from other divisions and departments; • Resolving inter-division or inter-departmental problems, such as conflicting conditions of approval; • Assuring that the conditions of approval suggested by other divisions or departments are reasonable, specific to the project under review (and not blanket conditions of approval that are inapplicable), and reference specific regulations; • Analyzing the application in regards to compliance with zoning regulations and the general plan; • Coordinating citizen input and comments; • Working with the applicant to resolve problems and revise the project as appropriate; • Managing the processing of the permit application in accordance with adopted timelines and seeing that they are met; • Promptly reviewing and issuing notifications of omissions or problems with the project; 109 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 43 • Coordinating with key decision makers; • Signing the staff reports; and • Following up on enforcement of conditions. The role of the case manager should be that of a team leader; if there are problems with one of the members of the team, it would not be the role of the project manager to resolve this problem directly with that member, but rather with the supervisor of that member of the team. It also does not suggest that the project manager has the authority to override code requirements or adopted standards. However, if the project manager has a problem with the conditions of approval suggested by the team member, it should be the role of the project manager to resolve that problem working with the member of the team or the supervisor of that member of the team. In summary, the case manager is a team leader for a multi-disciplinary team who is responsible for keeping the review of a permit application on track, who makes sure issues involving conflicting code or regulatory issues are resolved, who charts a clear course for the applicant through the review process, and who makes sure issues regarding the application are identified early in the review process. Recommendation #37: The authority of the case manager should be clearly spelled out in a written policy developed by the Planning Division and approved by the Community Development Director. 13. THE CONDITIONS OF APPROVAL UTILIZED BY ALL OF THE DIVISIONS AND DEPARTMENTS IN THE REVIEW OF PLANNING, BUILDING, AND ENGINEERING PERMITS SHOULD BE DOCUMENTED. In the experience of the Matrix Consulting Group, one of the primary methods for assuring consistency in the completion of plan check activities, whether it is a building 110 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 44 permit plan check, final development permit plan check, or conditional use plan check, or any other type of planning application review, is to document and publicize in writing the standard conditions of approval that staff will be utilizing. The Planning Division should take the lead in the development of this effort. Other divisions and departments involved in the permit activities should follow suit and develop, in writing, their own standard conditions of approval. This would include Engineering, Fire Prevention, and Building. These standard conditions of approval (related to land development applications) should be posted on the Planning Division’s web site for use by the general public and the development community to aid them in knowing what will be expected from them when applying for permits. They should be developed in “plain English” so they are suitable for use by both seasoned developers and individual citizens undertaking a small project or who do not routinely utilize the planning process. The Planning Division should take lead responsibility in facilitating and publicizing the development of these standard conditions of approval by all of the divisions and departments. Recommendation #38: The conditions of approval utilized by all of the divisions and departments in the review of planning, building, and engineering permits should be documented and posted to the City’s web site. Recommendation #39: The Planning Division should take lead responsibility in facilitating the development of these written conditions of approval by all of the divisions and departments. 111 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 45 14. THE PLANNING DIVISION SHOULD DEVELOP AND UTILIZE A FULL RANGE OF CHECKLISTS FOR THE REVIEW AND PROCESSING OF PLANNING PERMIT APPLICATIONS BY ITS OWN STAFF. To increase consistent application of the enabling ordinances among all staff, and to provide a means for the applicant to pre-evaluate an application prior to submission, the Planning Division staff should review and update the current checklists that are available as part of the application handouts. The Division has developed a limited number of such checklists for parking, for hillside exception applications, tentative maps, variances, and the CEQA initial study. These checklists should be expanded to included each application type, and be integrated with the application guide itself for each type of permit, which is not the case at the present time. These checklists should be designed to ensure that staff (and applicants) are reviewing all critical areas of each application for a common series of compliance factors with the Zoning Ordinance and General Plan. Given the various modifications to the Zoning Ordinance that take place over time and the myriad of situations that can arise when trying to apply and interpret the code, this can reduce uncertainty and inconsistent application of the principal regulations. These checklists should be posted on the departmental web site when available; and when completed as part of a plan review, should become a part of the application file. For example, for a preliminary development plan application, the checklist could include such aspects as the following: • Setting up the file; • Reviewing for consistency with zoning guidelines, parking standards, setback and height requirements, compliance with requirements for drainage, downstream sanitary sewer analysis, traffic impact analysis, etc.; 112 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 46 • Working with the applicant to obtain an adequate design for either staff approval or the Planning Commission; • Coordinating the resolution of revisions required by other divisions / departments; and • Conditional clearance prior to the building permit plan check. The checklists should be utilized in all project reviews to ensure consistency and completeness of the reviews conducted. These checklists also provide important guidance to individuals, contractors, design professionals, and developers that are doing work for the first time in the City to fully understand how the codes are applied in Cupertino, specific requirements that must be met, and generally detail the type and level of detail of the information necessary for submittal in order to gain approval. Recommendation #40: The Planning Division should develop and utilize checklists for the review and processing of discretionary and administrative applications by its own staff. Recommendation #41: The Planning Division should publish its checklists to its web site for use by those individuals submitting plans. 15. THE PLANNING DIVISION SHOULD DEVELOP MULTI-FAMILY, COMMERCIAL AND SIGN DESIGN GUIDELINES. The purpose of design guidelines should be to guide, educate and motivate homeowners, developers and designers to create projects that contribute to community design objectives and provide the tools needed for staff, the Design Review Committee and other decision-makers to properly evaluate development proposals. The City has developed residential design guidelines, but other design guidelines either have not been developed (multi-family) or not fully developed (signs). There are a number of issues that would need to be considered in the development of commercial design guidelines, for example, such as the following: 113 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 47 • How to maintain a commercial area consistent with the existing neighborhoods with regard to bulk, size, height, and scale of structures? Will the commercial development be consistent with the scenic character of the City and enhance the appearance of the specific commercial area? The guidelines should encourage design to maintain and reinforce the unique scale and character of Cupertino. • What methods for controlling size, bulk and scale are preferred? How compatible is the structure’s mass, bulk and scale with neighboring structures’ mass, bulk and scale? How does a large expanse of wall contribute to a structure’s appearance of bulk? How can a structure’s mass be articulated to minimize large expanses of walls? Do building plate heights create wall, window and door details that are of a human scale? The design guidelines should provide a richness of architectural façade depth and detail, provide a unified design around all sides of the building, avoid blank walls and service areas that are visible from adjacent streets and projects, and utilize high quality building materials and details, • Are the guidelines easy to understand and based upon transparent rationale? • Do the guidelines work to ensure that the beauty of commercial areas is preserved with consideration of structure placement, use of materials, landscaping, exterior lighting, etc? • Can the design guidelines be crafted to make the review process proceed more efficiently? The commercial design guidelines should cover a number of topics including the following: • Site planning; • Site layout, development pattern, building orientation, etc.; • Relationship to surrounding development; • Vehicular and pedestrian access and circulation; • Parking; • Landscaping and screening; • Lighting; • Hotels and motels (building materials, internal circulation, building form, building architecture, etc.); and 114 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 48 • Signage. The challenge in the development of these guidelines will be to crafting clear quantitative review standards that are easy to administer and offer certainty to developers and citizens alike while maintaining a requisite degree of design flexibility to allow and encourage creative site and building design. Recommendation #42: The Planning Division should develop design guidelines for multi-family, commercial, and signs. 16. CODE INTERPRETATIONS SHOULD BE DOCUMENTED AND PUBLISHED TO THE PLANNING, BUILDING, AND ENGINEERING DIVISION’S WEB SITES. Another tool to help the Planning, Building, and Engineering divisions achieve consistency in plan checking is an “interpretations log” that records how various provisions of the zoning ordinance, subdivision ordinance, and building codes are interpreted and applied in cases where the application of certain regulations is not entirely clear. Interviews with personnel within the Planning Division indicate that a number of code interpretations have already been documented and are contained within a binder in the office for use by staff. However, these interpretations are not disseminated beyond the Division and are not available for use by the public to better understand how to comply with the City’s regulations. The Planning, Building, and Engineering divisions should begin documenting code interpretations of the zoning ordinance, subdivision ordinance, and building codes and publish these interpretations on the City’s web site. These interpretations should be reviewed at least annually (and whenever the referenced regulation is modified or 115 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 49 adjusted) to ensure continued applicability. Only interpretations that are not “site specific” should be included. Recommendation #43: The Planning, Building, and Engineering divisions should document interpretations of the zoning ordinance, subdivision ordinance, and building codes and make these available to the public on their web sites. 17. ENHANCE THE MANAGEMENT OF THE BUILDING PERMIT PLAN CHECK PROCESS. The length of time taken to process building permit plans cannot be managed or controlled in any meaningful way unless certain conditions exist: • Targets are set for the length of time each organizational unit should take to process building permit plans. • Actual processing times are systematically collected and monitored. • On-going processing time performance is visible to all concerned parties. The City should utilize the automated permit information system so that these conditions can be met and control exercised over the length of time expended in processing building permit applications and plans. The steps that should be taken for improving the control over the length of the time required for processing building permit plans are presented in the sections below. (1) Revise the Cycle Time Goals for the Length of Time Required to Process Building Permit Plans to Serve as a Performance Guideline for All Organizational Units. The Building Division has already adopted cycle time goals for building permit plan checking. These goals include the following: These cycle times include: Residential Plan Review Cycle Times: • Over the Counter: small projects (250 sq. ft. or less) within 30 minutes 116 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 50 • Express Plan Check: medium sized projects (500 sq. ft. or less) within 5 business days • Standard Plan Check: initial review within 10 working days, second review within 5 working days • Large / Major Projects: apartments and subdivisions (over 10 units) is a minimum of 4 weeks. Commercial Plan Review Cycle Times • Over the Counter: less than 30 minutes only on Tuesday, Wednesday, and Thursday between 1:30 and 2:30 • Express Plan Check: medium sized projects (10,000 sq. ft. or less) within 5 working days • Standard Plan Check: initial review within 10 working days, rechecks within 5 working days • Large / Major Projects: minimum 4 weeks. There are a number of problems with these cycle time objectives. First, these goals do not identify the types of permits that should be plan checked over-the-counter. The Residential Plan Review Process Workbook, for example, merely states that “this process is for very small residential projects (250 sq. ft. or less) that can be reviewed by Building Department staff in less than thirty (30) minutes. It does not specify the specific types of permits that can be approved over-the-counter. Other cities that provide responsive over-the-counter services will identify the specific types of building permits that can be approved over-the-counter such as electrical lights, HVAC replacements, reroofs, sewer line replacement, water heater replacement, kitchen remodel, new windows, portable spas, solar systems, decks, The Division should clarify those types of permits that will be plan checked over- the-counter in these plan check objectives. Secondly, some types of minor residential 117 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 51 remodel projects and additions should be plan checked in less than five (5) working days. Examples of these types of permits are presented in the table below. Balcony Remodel – Major (SFD) Addition (SFD) Accessory Building – Detached Accessible Ramps Fences w/Calculations. Garage – Detached (SFD) Patio Enclosure (SFD) Third, the commercial cycle time goals the plan check cycle goals for tenant improvements are too long based upon the experience of the firm with other cities. The Building Division should revise these cycle time benchmarks and include a number of features. These features are presented below. • The benchmarks should identify those organizations that should receive the building permit plans. For example, pools, decks, and spas should be plan checked only by Building, simple tenant improvements should be plan checked only by Building, and commercial shells by Building, Planning, Fire, and Engineering. • These benchmarks should be established as a joint effort by each of these units. Ultimately, however, the Chief Building Official needs to review these targets to determine whether processing targets are not unacceptably long. • The benchmarks need to be differentiated according to the type of plan being processed and its complexity. The target for processing a plan for a residential interior remodel should be different than that of a custom single-family residence. • These benchmarks should be designed to enable the Chief Building Official to hold each organizational unit involved in the plan checking process accountable for the length of time the unit takes to review and approve plans. 118 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 52 The attainment of these benchmarks is dependent upon streamlining a number of the existing processes, the effective use of the automated permit information system to document actual cycle time versus these objectives, the effective and expanded use of over-the-counter plan checking by the Building Inspector, etc. Recommendation #44: Revise the building permit plan check cycle time goals for the length of time required to process building permit plans to serve as a performance guideline for all organizational units. (2) Utilize the Automated Permit Information System to Assure the Status of Each Plan Check Is Readily Visible. The automated permit information system should be used to make visible the amount of calendar time required to check building permit plans and enable an easy comparison with targets for processing these plans. The specific objectives related to the system include: • To establish a process whereby specific calendar data targets are set for each building permit plan. • To generate data sufficient to assess the performance of each division or department (Planning, Building, Engineering, Fire, etc.) in comparison to those targets. • To enable automated feedback to the Chief Building Official when plan checking by these divisions exceeds targets. Major elements of the system are as follows: • The Building Division would enter the appropriate data for processing each building permit plan including the divisions to which the plan is distributed, the date of distribution, and the due dates. • The Division would enter the actual date the plans were returned by all units after completing the plan check. • The Chief Building Official, or his / her designee, on a weekly basis – would access the system to determine which plans are still being checked and exceeded the targets. The Senior Plans Examiner would then contact the manager or supervisor of those units to prompt the completion of those plan 119 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 53 checks. • The Division would utilize the automated permit information system to generate reports regarding actual processing time versus targets. The automated permit information system should be the tool which the Division utilizes to manage the plan check process and assure the time required to process building permit plans consistently meet targets. Recommendation #45: The Building Division should utilize the automated permit information system to assure the status of each plan is readily visible. (3) The Chief Building Official Should Be Given the Written Authority and Responsibility to Interface with Other Organizational Units to Resolve Delays in Processing Building Permit Plans. This authority should include the following elements: • Scheduling of the plan check of building permit plans by the various organizational units. • Identification of the timing and priorities for plan checking of building permit plans by the various organizational units involved in commenting and analyzing the plans. • Monitoring the timely plan check of building permit plans and contacting the managers or supervisors of these units to prompt the completion of the plan check if the guidelines for completion are exceeded. This authority and responsibility should be clearly spelled out to other organizational units involved in processing building permit plans by the Community Development Director. Recommendation #46: The Chief Building Official should be given the written authority and responsibility to interface with other organizational units to resolve delays in processing building permit plans in a formal written policy published by the Community Development Director. 120 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 54 18. SIMPLIFY AND STREAMLINE THE BUILDING PERMIT PLAN CHECK PROCESS. This section presents an analysis of the plan review and permitting services provided by the Building Division. Similar to other sections in this chapter, this section focuses on issues related to: • Levels of service provided by the plan review and permitting programs; • Ability to increase services to the public; and, • Ability to increase customer service to the public. The following are summaries of improvement opportunities in the plan review and permitting programs of the Building and Safety Division. (1) The Extent of Building Permits Provided On-line Should Be Expanded. Permits that do not require a plan check, such as single trade permits (i.e., water heater change-out, furnace change-out, re-roofs, and even simple kitchen remodels), often known as over-the-counter permits, are well suited to on-line permit processing. Similar to e-commerce transactions, such as buying products from a web site, this activity involves credit card processing and the printing of a permit. On-line processing of permit applications can be as basic as automating only the front-end information collection process or as complete as full automation of the entire over-the-counter permit transaction. At their own personal computer, applicants can apply for a building permit, schedule an inspection, and print the permit and receipt. Credit card payments are secured through the use of encryption technology. Applicants can setup their access so that basic information does not need to be re-entered for multiple transactions. The City has the capability to allow applicants to complete a permit application via the Internet. 121 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 55 Applicants, for example, can complete on-line forms and hit a “send” button to transmit the application to the City’s permit database. The on-line system can process, review, approve, and stores completed permits. The permit system then generates a permit for the applicant. Applicants can pay for permits using a credit card. The Division should expand this feature. In the first month – mid-September to mid- October – 10% of the building permits were issued on-line. The objective of the Division should be to issue 20% of its building permits over the Internet. This should include simple kitchen remodel, re-roofs, skylights, masonry chimney repair, swimming pool removal, gas lines, irrigation sprinklers, sewer lines, tub and shower replace/repair, water heaters, water piping, water service lines, air conditioning, chimney, electrical panes, furnace, gas line, lighting, and spas. Some of these permits are already issued on-line; the range of the types of permits issued on- line should be expanded. Recommendation #47: The Building Division should issue not less than 20% of its building permits over the Internet. (2) Expand the Extent of Building Permits Issued Over-the-Counter. For the past several fiscal years, the Division has plan checked from 42% to 45% of the building permit applications over-the-counter, as noted below. Year # of Over-the-Counter Plan Checks # of Other Plan Checks % Over-the-Counter 2006 / 2007 1,069 1,306 45% 2007 / 2008 923 1,275 42% 2008 / 2009 1,104 1,104 43% The best practice target for this practice is 50% to 75% of total building permits being checked over the counter. The project team does not expect that over-the-counter building permits would be 122 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 56 issued for such permits as new multi-family, new commercial, or new single family. However, the project team does expect that over-the-counter permits can be issued for such building permits as the following: • Single family addition. Single story room addition not to exceed 600 square feet; • Single family Outdoor Pools and Spas; • Single family Patio Enclosures; • Single family New Roof Framing Over Existing Roof (without major structural work); • Office Space: Tenant Improvements for office space less than 4,000 square feet. For commercial projects to be issued over-the-counter, the following restrictions should apply: • There will be no storage of hazardous materials of any amount in the space; • The proposed tenant improvement should not contain any alterations to the structural system of the building (e.g. openings into bearing or shear walls, changes to floor system, etc.). Structural modifications required to install roof mounted mechanical equipment should be exempted pending plans examiner verification; • The proposed tenant improvement should not contain any alterations or modification to fire-rated walls; and • The application does not require any special Planning, or Fire District processing. The project team should expect that the Division should be able to increase the number of building permits issued over-the-counter from 42% to 45% of total plan checks to 60% using these criteria. The Counter Technician, when the position is filled, should be utilized for the plan checking and issuance of these types of minor and miscellaneous building permits. This assignment should recognize the impact of this additional skill and knowledge 123 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 57 requirements. The Counter Technician should be required to obtain certification by the International Code Council as a Permit Technician to enable this position to the provide over-the-counter plan checking. This would increase the responsibility of the Counter Technician and will also benefit the Division by enabling the Division to enhance the Building Inspector assigned to counter duty to plan checking of residential and commercial plans of a more significant nature, such as tenant improvements. This reassignment could be achieved by the following method: • The Division should provide the support, funding, and work hours necessary for the Counter Technician to obtain certification as an ICC-certified Permit Technician. • The Building Official should function as a team leader for the Counter Technician and train the incumbent in the performance of plan checking of minor and miscellaneous building permit plans. • The Plan Check Engineer should provide code and practical plan check training to the Counter Technician for an appropriate period of time. • The Division should establish a time period for training and implement the program on a target date. The Division should confer with the Counter Technician to establish the implementation date. The Division should establish the target date realizing that some of the quality expertise will only occur with practice. A comfort level can be achieved by realizing that support by the Plan Check Engineer is available. This method will produce quality performing Counter Technician that is fully capable of plan checking miscellaneous and minor building permit plans. Recommendation #48: The Building Division should increase the number of building permits issued over-the-counter to 60% of all building permits issued. Recommendation #49: The Counter Technician position should be reclassified to Building Technician. Recommendation #50: The Building Technician position, when filled, should be utilized to provide over-the-counter plan checking of minor and miscellaneous building permits. 124 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 58 Recommendation: #51 The Building Technician classification should be revised to require certification as an ICC-certified Permit Technician within 12 months of hire. Recommendation #52: The Building Division should provide support, funding, and training to the Building Technician to obtain as an ICC-certified Permit Technician. (3) Develop Standard Plans For Use By The Public In The Construction Of Minor Residential Improvements. A number of residents in Cupertino and other communities are do-it-yourselfers in terms of constructing minor retaining walls, residential patio covers, detached storage sheds, and outdoor fireplaces. In other instances, residents will pull building permits rather than their contractors for construction such as spas. The City should assist these “do it yourselfers” meet building permit plan check requirements by developing standard plans. These standard plans, if utilized by the “do it yourselfers” in applying for their building permit, would allow avoiding the retention of an architect or designer for the preparation of these plans, as long as the homeowner utilized these standard plans. In addition, the Building Division should develop a “Home Improvement Center” web page on the City’s web site to assist the homeowner navigate through the building permit plan check and inspection process. Recommendation #53: Develop standard building permit plans for use by the public in minor residential improvements. Recommendation #54: Develop a “Home Improvement Center” web page on the Town’s web site to assist the homeowner navigate through the building permit plan check and inspection process. 125 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 59 (4) The Division Has Developed a Number of Cycle Time Objectives for Plan Review, But Actual Cycle Time Exceeds the Objectives. The Division has established cycle times for both residential and commercial plan reviews. This information is identified within the guidebooks published by the Division and available on the Division’s web site. The project team analyzed plan check cycle time data provided by the Division that identified the number of building permit plan checks completed during FY 2007 / 2008 (showing the permit number, permit type, apply date, date in, revision, date out, reviewer, and permit issue date). The following exhibit shows the calculation of the number of days between the “date out” and the “apply date,” and utilizes a sampling of 3,932 permits received by the Division. As indicated in the exhibit, the average time between the application date and the date of review completion was 33 days (and a median of 24 days). For the top ten permit types in terms of volume (excluding single trade permits), the average days from “application date” to “date out” was 40 days. The data provided does not allow for the calculation of elapsed time between re-submittals. Additionally, it is a challenge for the Division, given current technology limitations, to identify and publish more comprehensive data that will allow the project team or the Division to better manage its cycle time performance. However, based on this available data, actual cycle times are generally longer than the cycle time objectives (e.g., for large projects the cycle time objective is 28 days, however, the average for all types of permit applications is 33 days). 126 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 60 Exhibit 1 (1) Building Division Plan Check Cycle Time Type # of Permits # of Days (Apply Date to Date Out) # of Reviews TELECOMFAC 27 78.3 1.7 SOLAR-RES 49 11.4 1.1 SFDWL-REM 189 24.3 1.3 SFDWL-NEW2 2 2.0 1.0 SFDWL-NEW1 237 59.5 1.6 SFDWL-DEM 56 40.1 1.1 SFDWL-ADD1 345 38.0 1.5 RMB1 1 2.0 1.0 MFDWL-REM 9 21.4 1.4 MFDWL-NEW1 4 4.8 1.0 FURN/AC 106 48.4 1.5 COMML-TI 259 32.8 1.3 COMML-NEW 15 14.9 1.1 COMML-DEM 3 1.0 1.0 CMB6 2 14.5 1.0 CMB1 8 16.1 1.4 CMAP2 8 18.8 1.4 CELECTRICA 1 9.0 1.0 CEAP5 10 19.6 1.1 1SOLARRES 51 13.6 1.1 1SOLARCOMM 5 10.8 1.0 1SHELLBLDG 42 82.5 1.9 1SFDWLREM 8 25.6 1.3 1SFDWLNEW1 7 16.9 1.0 1SFDWLDEM 103 41.4 1.1 1SFDWLADD1 21 30.3 1.3 1RPSS 8 32.4 1.5 1RBSP 6 10.2 1.2 1R3SFDW 454 73.5 1.7 1R3SFDREM 173 23.0 1.3 1R3SFDALT 5 19.8 1.4 1R3SFDADD 662 48.5 1.5 1R3SFD 5 22.6 1.8 1R1APTRM 37 177.7 1.3 1R1APT 116 125.2 1.6 1M TI 54 54.7 1.5 1I TI 7 16.1 1.3 1GENRES 182 26.9 1.2 1GENCOM 122 43.9 1.4 1E TI 11 29.7 1.8 1COMMLTI 1 9.0 1.0 1COMMLADD 4 10.0 1.0 1CMAP2 1 2.0 1.0 1CEAP6 5 37.0 1.4 127 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 61 Exhibit 1 (2) Type # of Permits # of Days (Apply Date to Date Out) # of Reviews 1CEAP5 19 13.6 1.4 1BOFF 16 45.7 1.9 1B TI 371 30.9 1.4 1A3 34 53.4 1.8 1A TI 71 42.9 1.4 Average 33.2 1.3 Median 24.3 1.3 128 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 62 The project team also calculated the cycle time from the application date to the actual permit “issue date,” and found the average number of days was 68, while the median number of days between application date and the permit issuance date was 54 days. This suggests that once the Building Division completes plan checking, there is a lag time between the final plan review, and when the applicant actually picked up and paid for the permit. The Division cannot and should not be held accountable for this lag. Once a mechanism is in place to more comprehensively measure actual cycle time performance, monthly reports should be developed for reporting the actual time required to plan check building permit plans versus the targets. The information contained in this report would be used for several purposes: • To identify where processing delays are occurring, in what step of the process, and the organizational unit responsible • To trigger questions regarding the causes of the delays so that corrective action can be take • To provide a more reliable and readily available record on what happened to each building permit plan. It should be underscored that the scheduling and monitoring system proposed is not intended to replace the responsibility and accountability of staff in other organizational units who actually plan check the building permit plans. This system has been designed only to provide important and more accurate, comprehensive and uniform information regarding the plan checking of building permit plans and to pinpoint the manager that owns the process: the Building Official. Without this information and this ownership, it is virtually impossible to control the number of days required for processing of these building permit plans. Recommendation #55: The Building Division should improve the building permit plan check performance to meet its stated plan check cycle time objectives. 129 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 63 (5) Reduce The Number Of Organizational Units That Plan Check Some Types Of Building Permit Plans. In many instances, the divisions / departments that plan check building permit plans in Cupertino is different than patterns used in other cities. For example: • Single-family additions are routed to the Planning Division, the Engineering Division, Building Division, Sanitary, and Fire Prevention; • Patios and decks are routed to the Planning Division and Building Division; and • Tenant improvements are routed to the Planning Division, Building Division, Sanitary, and Fire Prevention. Other cities have reallocated responsibility for zoning clearance with their Building Division. This eliminates the need for building permit plan checking of simpler building permit plans by the Planning Division such as patios and decks, single family additions, or tenant improvements Other cities, such as Pasadena, only route single-family additions and remodels and new single family residences to the Fire Department for plan checking if located in the Hillside District Overlay. The City should take steps to reduce the number of divisions / departments that plan check building permit plans. The project team recommends the City review the routing of building permit plans to assess if all organizational units need to review these plans. For example, the City could consider the following: • The City should eliminate the routing for single-family remodels/additions to the Planning Division, Fire Prevention, and to the Engineering Division. This will require the Building Division to check for zoning clearances, and easements. • Tenant improvements should not be routed to the Planning Division. This will require the Building Division to check for zoning clearances. • Minor permits, such as awnings, spas, and pools, should be plan checked solely by the Building Division. 130 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 64 The project team believes the routing of building permit plans can be reduced. The Chief Building Official should develop a proposal for review of the City Manager’s Office and the affected departments. With the effective deployment of the automated permit information system, the responsibility for zoning clearance should be reassigned to the Building Division. The automated permit information system should enable the plan checking staff of the Building Division to determine the zoning of the property. This would enable the staff of the Division to determine the development standards (e.g., setbacks) for the applications. This transition should not occur until the Building Division staff has been trained in the use of the system, and Building Division staff has been trained in applying the development standards. Recommendation #56: The Building Division should reduce the number of divisions and departments that are routed building permit plans. Recommendation #57: The City should assign responsibility to the Building Division for zoning clearance of simple building permits. 19. CONTRACTORS SHOULD BE ABLE TO SCHEDULE BUILDING INSPECTIONS UP TO 7:00 AM OF THE DAY OF THE REQUESTED INSPECTION. The leading industry practice for customers to schedule an inspection is up to 7:00 AM the morning of the desired date and time. Inspection requests are processed until 3:30 PM the day before the scheduled inspection. This is due the highly manual nature of the scheduling process, which involves the following: • The administrative staff print out the listing of requested inspections at the end of the afternoon 131 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 65 • The Senior Building Inspector then reviews and manually assigns the various inspections staff based on geographical location, workload, areas of interest / expertise, etc. • The Senior Building Inspector then prints the master copy and distributes to inspections staff in the morning, printing a specific copy for each building inspector. • The Building Inspector staff then determines the windows of time they will conduct the inspection (typically 2-hour windows). The Building Inspector notes these windows of time on the master copy and makes copies for the division’s administrative staff to enable these staff to respond to telephone inquiries about time window. Because of these processes, the ability to accommodate inspections requests up to 7:00 AM the same day is challenging, as the schedule is confirmed by that time. As such, the Division should utilize more automated processes in order to better accommodate same-day inspection requests. Recommendation #58: The Building Division should adopt a policy to accommodate inspection requests up to 7:00 AM for same day inspection request service. 20. THE ENGINEERING DIVISION IS MEETING THEIR CYCLE TIME OBJECTIVE FOR PLAN CHECKING BUILDING PERMIT PLANS IN 5 TO 10 DAYS. The project team obtained Engineering Division data for building permit plan checking. Using a sample of 19 building permit applications, the plan check cycle time of the Division is presented in the table below. 132 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 66 1st Review # Date In Date out Days 1 2/2/09 2/2/09 0 2 10/15/08 10/16/08 1 3 10/20/08 10/21/08 1 4 10/23/08 10/27/08 4 5 11/14/08 11/18/08 4 6 10/16/08 10/21/08 5 7 10/7/08 10/13/08 6 8 11/19/08 11/25/08 6 9 2/13/09 2/19/09 6 10 10/20/08 10/28/08 8 11 1/5/09 1/13/09 8 12 3/2/09 3/11/09 9 13 3/2/09 3/11/09 9 14 11/12/08 11/21/08 9 15 10/8/08 10/22/08 14 16 2/2/09 2/17/09 15 17 1/9/09 1/25/09 16 18 2/6/09 2/23/09 17 19 12/16/08 1/9/09 24 Average 9 Median 8 As shown above, the average number of days for this sample was nine (9) days of review time, with a median of eight (8) days. It is important to note, however, that this was just a sampling of over 159 building permit reviews conducted over a 3-month period, including the following: Plan Type Number Arch 108 Arch / IMP 2 Arch / RGP 1 IMP 43 Parcel Map 3 RGP 1 Structural 1 3-Month Total 159 133 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 67 Annualized, the Engineering Division conducts approximately 636 permit application plan checks that are routed from the Community Development Department, which equates to approximately 12 per week, or 2.5 per day. Based on this assessment, the Engineering Division should better track the intake dates of building permits being routed from the Community Development Department, and continuously monitor their cycle time performance of reviews. 21. THE ENGINEERING DIVISION SHOULD DEVELOP APPLICATION GUIDES FOR ENGINEERING PERMITS. The Engineering Division has an important role in the planning and building permit processes. In these instances, the Division is most often not the lead in the process: the Community Development Department is the lead in the process. The Division, however, is the lead with some permits. This could include grading permits, improvement plans, utility joint trench permits, encroachment permits, heavy haul permits, sewer lateral or water service permits, etc. A guide for a grading permit could include such aspects as the following: • The purpose of the permit • The process for plan checking the permit • The required material that must be submitted with the application such as grading plan, preliminary landscape and irrigation plan, etc. • A checklist to assure the applicant is aware of submittal requirements • General grading notes / conditions of approval In each of these instances, the Engineering Division should develop an application guide. Recommendation #59: The Engineering Division should develop application guides for those permits in which the Division is the lead. 134 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 68 22. THE ENGINEERING DIVISION SHOULD PUBLISH ITS CYCLE TIME OBJECTIVES FOR PLAN CHECKING TO ITS WEB PAGE. To provide better customer service, the Engineering Division has a number of items available on the web site, including the following: • Engineering Standards - which includes guidelines as the City of Cupertino Standard Details, the Best Management Practice Plan Sheet, and Guidelines and Standards for Land Use Near Streams (user manual). • Pavement Management Program – which is a comprehensive description of the program, maintenance techniques, and overall condition of Cupertino’s streets • Fee Schedule (effective July 1, 2008) – which summarizes the user fees for engineering, planning, building, and recreation • Maps and Data – which provides a city map guide and a Water Service Boundary Map • Permit Applications – which allow users to download various types of applications, including an encroachment permit, grading permit, permit parking, streamside modification, and block party / special event permit. The Engineering Division should also develop cycle time objectives for all permit applications for the length of time -- in calendar days -- required to process applications from the date of submittal to the date of the applicant's initial public hearing or the approval / disapproval of the application by staff. Possible calendar date benchmarks for processing different types of permit applications are presented in the table below. Type of Permit Proposed Cycle Time Objective (Calendar Days) At The Median Tentative maps / Parcel Maps 21 calendar days to complete for the first plan check, and 10 calendar days for rechecks Final Subdivision Map Improvement Plans 21 calendar days to complete for the first plan check, and 10 calendar days for rechecks Final Parcel Map Improvement Plans 14 calendar days to complete for the first plan check, and 7 calendar days for rechecks Grading Plans 14 calendar days to complete the first check, and 7 calendar days for rechecks. 135 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 69 For the Engineering Division to set cycle time objectives from the date of submittal of the application, as opposed to the date the application is deemed complete, the Engineering Division staff will need to be rigorous in checking applications at submittal to assure the applications contain all of the essential information required to achieve a complete submittal, and rejecting applications that do not contain this essential information. It will also require that the application guides developed that clearly identify the elements of a complete application. As a general policy, the Engineering Division has an objective of reviewing the first submission within 5 to 10 days for building permit review, however, this should be stated in the residential development guidebook and the commercial development guidebook, as well as made available on the Division web-site. Recommendation #60: The Engineering Division should publish its cycle time objectives to the Division’s web site and identify these cycle time objectives in the Division’s application guides. 23. THE ENGINEERING DIVISION SHOULD DEVELOP APPLICATION GUIDES FOR ENGINEERING PERMITS. The Engineering Division has an important role in the planning and building permit processes. In these instances, the Division is most often not the lead in the process: the Community Development Department is the lead in the process. The Division, however, is the lead with some permits. This could include grading permits, improvement plans, utility joint trench permits, encroachment permits, heavy haul permits, sewer lateral or water service permits, etc. A guide for a grading permit could include such aspects as the following: • The purpose of the permit • The process for plan checking the permit 136 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 70 • The required material that must be submitted with the application such as grading plan, preliminary landscape and irrigation plan, etc. • A checklist to assure the applicant is aware of submittal requirements • General grading notes / conditions of approval In each of these instances, the Engineering Division should develop an application guide. Recommendation #61: The Engineering Division should develop application guides for those permits in which the Division is the lead for plan checking. 137 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 71 4. ANALYSIS OF THE AUTOMATED PERMIT INFORMATION SYSTEM The acquisition of a fully functional and easy-to-use automated permit information system should be viewed as a high priority by the City of Cupertino. However, If the City is to obtain an effective return on its investment, there are a number of features that should be included with the system. 1. ALL OF THE CITY’S DIVISIONS AND DEPARTMENTS THAT ARE INVOLVED IN THE ISSUANCE OF PERMITS SHOULD UTILIZE THE AUTOMATED PERMIT INFORMATION SYSTEM TO MEET ALL OF THEIR PERMIT REQUIREMENTS. It is apparent that not all of the divisions and departments involved in the permit, plan check, and inspection process do not utilize an automated permit information system or do not fully utilize the existing automated permit information system.. The City will be making a significant investment in an automated permit information system. The system will be capable of a broad range of tasks including the following: • Plan review tracking; • Permitting including the issuance and tracking of permits; • Inspections scheduling and tracking; • Workflow management; • Fee calculation and collection; • Customer communications through web-based customer services; • Telephone-based voice response services; and • Inter- and intra-departmental communication and management. 138 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 72 All of the departments and divisions involved in the issuance of permits need to utilize the automated permit information system for all aspects of the planning, building permit, and engineering permit process. Recommendation #62: All of the departments and divisions should utilize the automated permit information system for all aspects of the planning, building permit, and engineering permit process. Recommendation #63: Modules, applications and reports should be developed within the automated permit information system to support the work of these departments and divisions. Recommendation #64: Training should be provided to staff as appropriate in the use of the automated permit information system. 2. THE PUBLIC AND APPLICANTS SHOULD BE PROVIDED WITH ACCESS TO THE AUTOMATED PERMIT INFORMATION SYSTEM OVER THE INTERNET. Automating the permit process opens the door for customer self-service. Simple e-permitting capabilities allow citizens and businesses to use both the Internet and the telephone to check the status of their permit application or comment on new development projects. The use of standard Web development technologies and relational databases make permit information available through the Internet. A fully functional automated permit process provides the capacity for the public and for applicants to access the automated permit information system through the Internet. This capacity would make information from the City’s permit database accessible via the Internet by permit applicants, residents, and other interested parties. In this instance, the City’s web site would provide a search form where citizens enter a property address or permit number to receive current information on that permit, 24 hours a day, seven days a week, from any computer with Internet access. The City can control the amount of information that is accessible by the public and can limit the 139 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 73 amount of users by incorporating password protection, if it chooses to do so. This feature of the automated permit information system should be utilized to enable applicants to check the status of their permits. Giving applicants the ability to check the status online reduces telephone and walk-in traffic and allows applicants and city residents to review this information even when City Hall is closed. It should also be utilized to enable citizens to review proposed projects online. By placing information about proposed developments on the web, citizens have increased opportunity to participate in the extent and type of development occurring in their neighborhood. Overland Park, Kansas, for example, enables citizens to access development activity in their neighborhood through a marriage of their permitting software and geographical information system. The City’s Web site contains “What’s Happening In My Neighborhood.” Recommendation #65: The City should utilize the automated permit information system to provide the capacity for the public and for applicants to access data through the Internet or for the public and applicants to subscribe to information. 3. THE AUTOMATED PERMIT INFORMATION SYSTEM SHOULD INCLUDE THE CAPACITY TO INTERFACE WITH AN INTERACTIVE VOICE RESPONSE. Interactive Voice Response systems (IVR) systems are used widely throughout the customer service industry. When calling a bank, credit card company or utility company, most customers interact with an automated voice system before reaching a live person. An IVR system is available 24 hours a day and can simultaneously handle multiple callers. When connected to an automated permit system, IVR enables permit applicants and other interested parties to receive information such as permit status and the expected date of completion, schedule an inspection, or obtain the results of an 140 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 74 inspection. An IVR system can be programmed to adapt to an organization’s specific needs. For example, announcements can be incorporated into the IVR system notifying external customers of changes in the permit process, important dates, and events of concern to permit applicants. City employees are responsible for maintaining the system and providing back- up customer service when callers indicate the need to speak directly with Permit Center/counter staff or other city staff. Both internal and external customers use the IVR at any time, night or day. An IVR system is a “black box” (a self-contained computing system that can be plugged into other systems) that interfaces with a host computer(s) and telephone system through various communications protocols. Calls come into the system through the telephone switch or are routed by an Automated Call Distributor (ACD). The system prompts callers to select the information they want from a menu. The caller makes a selection either by using the touch-tone keypad or by speaking into the telephone receiver. The system then retrieves the requested information from the host system and “delivers” it to the caller. Recommendation #66: The automated permit information system should include the capacity to interface with an Interactive Voice Response system. Recommendation #67: The City should acquire an Interactive Voice Response (IVR) System. 4. THE AUTOMATED PERMIT INFORMATION SYSTEM SHOULD HAVE WIRELESS CAPABILITIES. Using a handheld computer, inspectors in the field should be able to access the City’s permit database. They should be able to download a list of scheduled inspections, 141 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 75 enter inspection results, and even print a certificate using a small, wireless printer. Inspectors should also be able to collect information in the field and load this information into the permit database. Building inspectors in the Building Division have mobile “laptop” systems for field use. These mobile systems should be used in field. Recommendation #68: The automated permit information system should have wireless capabilities. 5. THE AUTOMATED PERMIT INFORMATION SYSTEM SHOULD HAVE THE CAPABILITY FOR AUTOMATED WORKFLOW. Complex planning and building permits often have to be routed to several employees at different departments and divisions within the City. Automating the permit process using the automated permit information system means that the planning and building permit will not sit on a desk too long or get misplaced as it is being reviewed. The system itself operates according to business tasks and rules defined by the City. Automated workflow systems encompass role/relationship definition, security, auditing, and tracking capabilities. Users have the ability to know who has taken what actions on what date and where a particular task is in a sequence of steps. In addition, the system may have the ability to effectively archive required data and recreate representations of data. Managers and permit staff use automated workflow to track a variety of documents, plans and attachments associated with a planning and building permits permit application. External customers do not usually access the agency’s workflow system. Recommendation #69: The automated permit information system should have an automated workflow capacity. 142 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 76 6. THE AUTOMATED PERMIT INFORMATION SYSTEM SHOULD HAVE THE CAPACITY FOR ONLINE PROJECT MANAGEMENT AND COLLABORATION TOOLS. The City should host project management and collaborative Web tools on their own Web site. Both city employees and external permit participants from the design and building community work together via electronic communication to share documents. A password should be required to enter the Web site, but be accessed from any computer. Architects, consultants, developers, and contractors should be able to use this tool to participate with City plan checking staff on complex projects involving a large number of plans and details. Recommendation #70: The automated permit information system should have the capacity for online project management and collaboration tools. 7. THE AUTOMATED PERMIT INFORMATION SYSTEM SHOULD HAVE THE CAPACITY FOR INTERFACING WITH GEOGRAPHIC INFORMATION SYSTEMS (GIS). GIS links maps of an area with information from a database to generate maps and reports, allowing users to display, analyze, maintain, and model location-based information to support decision making. GIS systems have the capability to combine disparate sets of data (maps, aerial photographs, land coordinates) from various departments and agencies (such as water, electric, gas, land use) to graphically display data in any combination, for many purposes. For permitting, GIS can be used to search for addresses and features such as poles, utility mains or pipes below or above ground, water table and seismic information, and find its location in relation to any other location such as a freeway, or residential, commercial, or flood zone. 143 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 77 Recommendation #71: The automated permit information system should have the capacity to interface with ESRI GIS. 8. STAFF REPORTS AND ARCHITECTURAL PLANS SHOULD BE STORED IN PERMITS PLUS. Document management tools within the automated permit information system will offer the capacity to transform paper documents into digital documents and files, allowing staff to store, manage, and access documents and applicants and the public to access these documents using a standard interface – the automated permit information system. Using these document management tools, any information associated with the permit process is digital and indexed to the permit application. In addition to the electronic documents that can be stored in the automated permit information system, hard copy documents, photos and drawings can be scanned and converted to digital files in the automated permit information system. Organizations are beginning to integrate document management tools into their permit processes because this technology improves the linkages between related information and provides a single point of access to multiple sources of permit information. The City should accomplish this goal using a number of approaches. These approaches are presented in the paragraphs below. • All documents created by staff regarding permits, plan checks, and inspections should be archived in the automated permit information system so that they can be stored and located more easily and efficiently. The automated permit information system will have the capacity to store electronic documents (such as those created by Microsoft Word or Excel), legacy documents imaged or scanned from paper or microfiche, and documents and images from databases. In addition, city staff can scan non-electronic documents to add them to the document management database. • The City should scan architectural plans submitted to the City electronically or require the applicant to submit electronic copies of these architectural plans. This is not an uncommon approach. Other cities and 144 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 78 counties have already taken this step. • Architectural plans that are scanned should be archived in the automated permit information system. All plans should be labeled and archived for future reference. There are a number of public agencies that are not only archiving these architectural plans, but also receiving these plans from applicants over the Internet. Recommendation #72: All documents created by staff regarding permits, plan checks, and inspections should be archived in the automated permit information system. Recommendation #73: Architectural plans should be archived in the automated permit information system once the permit is finalized. 9. PLAN CHECK AND PERMIT ANNOTATIONS, CORRECTIONS AND COMMENTS SHOULD BE STORED IN THE AUTOMATED PERMIT INFORMATION SYSTEM. Once planning and building permits are plan checked, annotations and comments could be added within the automated permit information system, shared among the review team, and forwarded to the applicant. This is an essential element of the automated permit information system: to facilitate collaboration, integration, and cooperation among staff, applicants, architects, and the neighborhoods. Use of the automated permit information system for these annotations and comments provides the potential for 24/7 access to staff, applicants, architects, and the neighborhoods. The City should fully utilize the capacity of the automated permit information system storing comments and corrections. All of the divisions and departments that utilize the automated permit information system should enter and store their annotations, comments, and conditions in this system. Recommendation #74: All of the divisions and departments that utilize the automated permit information system should enter and store their annotations, comments, and conditions in the system. 145 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 79 10. THE CITY SHOULD ACQUIRE A FULLY FUNCTIONAL COMMERCIAL-OFF- THE-SHELF AUTOMATED PERMIT INFORMATION SYSTEM. The City is now working with Pentamation to develop a fully functional automated permit information system. This process has been ongoing for several years and the automated permit information system has not yet reached its full development and conclusion. The Planning Division is still using a Microsoft Access database to track permit applications, while the Engineering Division is using a Microsoft Excel spreadsheet to track permit applications. Various features of the Pentamation permit system have yet to be implemented. The Matrix Consulting Group recommends that the City provide Pentamation with the opportunity to identify the total installed cost for the development and deployment of a fully functional automated permit information system. Regardless of that effort, the Matrix Consulting Group believes that the City should acquire a fully developed commercial-off-the-shelf automated permit information system. Given the costs of the Pentamation permit system to-date, the Matrix Consulting Group believes that the City would be better served by acquiring a system that has already been fully developed and deployed, with a significant installed customer base, rather than continuing to allocate additional funds for the development of the automated permit information system by Pentamation. Recommendation #75: The City should provide Pentamation with the opportunity to identify the total installed cost for the development and deployment of a fully functional automated permit information system. Recommendation #76: The City should acquire a fully developed commercial-off- the-shelf automated permit information system. 146 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 80 5. ANALYSIS OF THE PERMIT CENTER The Matrix Consulting Group evaluates permit centers from the context of sufficient space for receiving and serving customers; sit-down counters for customers; computers that customers can access for application preparation and review of zoning, building materials, reading material; maps (general plan/zoning) available for customer access; application guides and forms; toys for children; etc. 1. THE CITY SHOULD REMODEL THE PERMIT CENTER. In the evaluating the ability of the downstairs permit center to effectively serve the City’s customers in this context, the Matrix Consulting Group noted numerous problems from a customer service perspective regarding the permit center as presented below. • The space available in the permit center is limited and at peak hours the center is crowded. Our national experience is that the best permit centers have extremely large waiting areas so customers do not feel they are in such a hectic environment. Given the number of permit center customers, the lobby is too small. A few of our recommendations can help this. • There is an absence of sit-down work space for customers. • There is a shortage of conference rooms for staff to have meetings with permit center customers to discuss their applications. • The permit center is not staffed during the lunch hour. The Matrix Consulting Group recommends that the City remodel the permit center. The permit center should provide sit-down counters for customers, computers that customers can access, better access to small conference rooms for staff to meet with applicants and discuss their applications, etc. Recommendation #77: The City should remodel the permit center. 147 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 81 6. ANALYSIS OF PERMIT ADMINISTRATION This chapter presents an analysis of the administrative practices of the permit process such as staff training, customer service in the permit center, etc. 1. A GREATER FOCUS SHOULD BE PLACED ON ENSURING THE AVAILABILITY OF PLANNERS TO SERVE THE FRONT COUNTER DURING ALL HOURS OF OPERATIONS AND INCREASE THE SERVICES PROVIDED TO THE PUBLIC ON A WALK-IN BASIS. At the present time, all planners are assigned (on a rotating basis) to works shifts at the front counter. The staff member assigned to the counter is not required to remain at the counter, but is provided a pager to carry so that they can be located when a customer arrives and needs assistance. While generally this approach is effective in utilizing staff time and freeing them up to work on projects at their desk, some issues with this approach were identified including periodic inability to locate the planner in a timely manner, and the wait time for customers during the location of the planner by the receptionist in the permit center. Additionally, the counter is not staffed during lunch hours as the entire City organization takes a coordinated lunch period and services to the public (at the permit center) are closed from noon to 1:00 p.m. While this approach typically works well for staff, it often eliminates a key time period for many applicants who may need or desire to conduct permit processing during their lunch period. The Division should provide a greater focus on ensuring that a planner is available during all hours of operation, including the lunch hour, to address issues and answer questions at the front counter. This can be easily accomplished through efforts such as the following: 148 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 82 • Rotating lunch hours so that front counter service can be provided throughout all hours of operations; and • Increasing the time spent at the front counter during the shift by physically basing a planner at the front counter and utilizing the computer at the counter for planners to conduct other work activities when an applicant is not present. This approach will increase the availability of staff to handle customer issues promptly, and eliminate the perception, shared with the project team, that Planning staff is not always readily available or easily located to handle counter functions. Additionally, the project team recommends that the Planning and Development Department institute a set schedule for providing review of minor corrections over the counter to expedite the approval process. This can be undertaken on a pilot basis to determine the usefulness to the applicants and gauge the workload that is generated by this approach. Individual planners assigned to current planning should have a set number of hours, on a recurring weekly basis, where they are available in the office to review minor corrections on planning related issues outstanding. The hours for each current planner should be posted in the Permit Center and on the Department’s web site. The Department should establish guidelines for what constitutes “minor corrections” and should inform applicants when they qualify to utilize this service by noting this when comments are issued for a particular plan review. Recommendation #78: A greater focus should be placed by the Planning Division on ensuring availability of a professional staff member at the front counter during all hours of operation including during the lunch hour. Recommendation #79: The Planning Division should conduct a pilot program of providing scheduled hours for “walk in” reviews of minor corrections to expedite the approval process. 149 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 83 2. SEVERAL COMMUNITY OUTREACH AND EDUCATION EFFORTS SHOULD BE UNDERTAKEN TO EDUCATE AND ENHANCE RELATIONSHIPS WITH THE DEVELOPMENT COMMUNITY. One of the easiest, least expensive and most effective opportunities to enhance the service provided to the customer is to ensure that frequent, timely, and meaningful dialogue is undertaken. These interactions should be designed to increase the customer’s understanding of existing procedures and policies, and to provide a mechanism for staff to receive ongoing feedback regarding issues from the development community. The following sections outline some specific recommendations. (1) A “How to Develop in the City of Cupertino” Guide Should Be Developed. A comprehensive how to guide should be developed that covers the entire permit process from project concept through the final certificate of occupancy. In developing this guide, the City needs to ensure that it is developed in a “plain English” approach that is understandable by a variety of audiences and not just those that work within the development arena on a daily basis. The City currently has in place many elements that would be included within this document. These would simply need to be updated and refined for inclusion. This document needs to be more than a simple recitation of the ordinances, but clearly explain the steps of the process, how to comply and appropriately submit an application, and identify the review that will be conducted by staff. Within this document, it would be appropriate to include copies of checklists for each phase of the process that clearly identify to the applicant the information that must be submitted and why it is 150 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 84 required. A section that clearly outlines the review time standards that have been adopted by the City should also be included within the document. Another critical component of the guide should be a section outlining the standard conditions of approval for each of the reviewing departments (as discussed previously in this chapter). Recommendation #80: The City should develop a comprehensive “How-to Manual” or “Development Guide” for use by the public and publish this document to their web site. (2) The Level of Ongoing Dialogue Between the Community Development Department and the Development Community Should Be Increased. The Community Development Department should focus on increasing the amount and type of communication, dialogue and interaction with the development community in a proactive manner – not simply working with them when problems arise. This should be initiated by publishing a periodic newsletter (either 2 or 4 times per year) that addresses changing requirements, code interpretations, a discussion of emerging issues, or an informational discussion of a particular policy or requirement. These newsletters should be posted on the City’s web site and emailed directly to all individuals who sign-up to receive them. Additionally, at least annually, the Community Development Department should host a meeting with the development community to discuss issues of general interest, solicit input for consideration on specific regulations under consideration for revision, and provide an opportunity to receive feedback regarding service levels. Most communities that implement this approach utilize a one and a half hour to two-hour meeting that is focused on a specific topic and held in a community center. 151 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 85 Finally, the Community Development Department should conduct an annual survey of the development community to evaluate the Community Development Department’s level of performance. This can easily be accomplished through the use of a short online survey. Staff should consider whether there are a significant number of customers that wouldn’t be able to respond online and if so, hard copy forms of the survey should be available in the permit center. Additionally, comment postcards should be made available to all applicants following the completion of the application review (approval or denial), asking them to evaluate the level of services provided on their case. The City of San Jose has developed a customer satisfaction survey; the Matrix Consulting Group has provided a copy to the Community Development Department. Recommendation #81: The Community Development Department should institute a periodic (two to four times per year) newsletter that is distributed to the development community containing code or interpretation updates, training information, and general discussion of relevant topics. Recommendation #82: The Community Development Department should conduct at least an annual meeting to engage the development community in a discussion of general issues regarding permit matters in Cupertino, solicit input regarding service levels, and seek input regarding potential changes to the enabling legislation (general plan, subdivision ordinance, zoning ordinance, and building codes). Recommendation #83: The Community Development Department should conduct an annual and ongoing customer satisfaction survey. (3) New Ordinance and Code Requirements Should Be Implemented After Communication With The Development Community. When Building Inspectors bring new information into the field for building inspection that was acquired at outside training or realize that something that they have not been requiring is, in fact, required by the codes, Building Inspectors immediately call for 152 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 86 corrections. On other occasions they may decide to change requirements after meeting together. This causes hardship for owners and contractors when construction has to be dismantled and it impacts their costs and job completion deadlines. Owners and contractors are entitled to notice time in order to prepare for requirements not previously imposed. The Building Division should provide 60-days notice regarding any changed requirements not previously invoked, and should not impact jobs under construction. Recommendation #84: The City should require that any new ordinance and code requirements not previously imposed will not be enforced on current construction and future jobs until the industry is informed and a 60-day waiting period is put in place. Recommendation #85: The City should communicate any new plan review and inspection requirements to developers, contractors, architects, engineers, and the construction community through issuance of information bulletins and a newsletter. Distribute information bulletins describing the new requirements, and show effective date of implementation. 3. ADDITIONAL TRAINING SHOULD BE PROVIDED TO STAFF OF THE PLANNING, BUILDING, AND ENGINEERING DIVISIONS. During the conduct of the study, the project team concluded that, as a general rule, the staff assigned to the Planning, Building, and Engineering divisions were generally well-versed and trained regarding their assigned duties and in professional planning techniques There are several areas where the project team recommends that the City focus additional efforts to further enhance the training of staff of the Planning Division. These include: • Supporting and encouraging staff to achieve the AICP certification available from the American Planning Association. This is the nationally recognized certification for professional planners, and it ensures that staff stay both current in the planning profession and maintain a broad understanding of applicable planning techniques and practices, including emerging and developing aspects of the profession. Achievement of the AICP certification should be 153 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 87 strongly considered as a requirement for advancement within the Planner job family. • The utilization of the current bi-weekly departmental staff meeting to increase staff’s understanding of difficult compliance issues related to implementation of the General Plan and Zoning Ordinance. At each meeting an individual staff member should be responsible for leading a short training session on a particular topic. The focus of this training should be to increase the staff ability to make decisions at the lowest appropriate level in the organization. This will also have an added benefit of increasing consistency among staff. Staff who have attended external training sessions should also share the training information received during these departmental staff meetings. • Coordinating the training that staff attend annually to ensure that the limited training funds are most effectively utilized. Priority should be given to ensuring that all staff attend sufficient training in order to maintain their AICP certification. Additionally, training should be coordinated so that staff attend a variety of training sessions and generally do not all attend the same training session (which may be appropriate on certain topics). An enhanced focus on these areas of training will increase and maintain the professional knowledge and skills of the planning professionals in the City. Sending individual Building Inspectors to classes presented outside of the City is also encouraged. It is equally important that the staff share the information received from seminars and classes, and that all agree on the use of each subject. Individual Building Inspectors that receive information learned from outside the organization need to verify how it is going to be utilized in the City through team learning and sharing. Placing priority on training, sharing of information, and agreement on interpretations should contribute to the issue of consistency. Coordination and consistency can be enhanced by periodic meetings between fire inspectors, Plan Check Engineer, Building Inspectors, Counter Technician, and all personnel who participate in the development process, to review operations and contribute to efficient delivery of services. Involving everyone who serves in the 154 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 88 development process will assure that all good ideas are heard and will allow everyone to participate and take advantage of resolution of all matters. If consensus cannot be achieved, supervision and management may have to make decisions and publish their findings. This kind of effort will give all personnel the opportunity to be involved, provide input and take ownership for the process. Recommendation #86: All full-time planners should be encouraged to attain the AICP certification from the American Planning Association. The City of Cupertino should consider requiring achievement of this certification to progress through the Planner job family. Recommendation #87: The Planning, Building and Engineering division-heads should develop annual training programs for each employee in the division. Recommendation #88: The Planning, Building and Engineering divisions should provide additional training to increase their ability to make decisions regarding subdivision ordinance, zoning ordinance, and building codes to increase consistency of interpretation among staff. Recommendation #89: Provide not less that 40-hours of job-related training annually for each employee of the Planning, Building and Engineering divisions. Recommendation #90: Establish and publish quarterly training agendas. Assign all employees as presenters, and have them prepare outlines for their presentation. Bring in outside industry training where appropriate. Recommendation #91: The Building Division should implement quarterly training sessions with Fire Prevention Inspectors, Building Inspectors, the Plan Check Engineer, the Counter Technician, and all employees involved in the development process (Planning, Engineering, Fire Prevention, etc.) to review operations, eliminate overlap or duplication, and improve coordination for efficient delivery of services. Allow each discipline to present matters of concern for decision and resolution. Recommendation #92: The Building Division should involve the District Fire Inspectors, at least monthly, in the building code training to achieve consistency. 155 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 89 4. THE CITY SHOULD UNDERTAKE A COMPREHENSIVE USER FEE STUDY. The Matrix Consulting Group recommends that the City conduct a comprehensive development fee study that covers the planning, engineering and building permit plan review and inspection fees within the next several years. While the Planning Division has a goal of covering 100% of their current planning processes through related fees, the City has not undertaken a fee study of the planning land development fees in recent years. The fees associated with the building permits were last reviewed in 2007. The best practice is to undertake a comprehensive fee analysis at least every five years. The City should ensure that all planning, building, and engineering permit fees related to land development are included in the next fee study conducted. The inclusion of these fees in the study at the same time the building fees are evaluated will not increase the cost of the study significantly and should require an additional expenditure within the range of $10,000 to no more than $15,000. Recommendation #93: The City of Cupertino should ensure that all planning, building, and engineering permit fees are reviewed and evaluated when the next review of development fee schedules is conducted to ensure fees are appropriately calculated and assessed. 5. THE CITY SHOULD CHARGE A TECHNOLOGY FEE TO PROVIDE FUNDING FOR THE DEPLOYMENT OF THE AUTOMATED PERMIT INFORMATION SYSTEM AND GEOGRAPHIC INFORMATION SYSTEMS. A key tenet of the City’s development services is that the costs of these services should be recovered through user fees. In fact, one of the City’s financial policies states, “we will pursue cost recovery for services funded by governmental funds incorporating defined budgets, specific goals, and measurable milestones.” 156 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 90 The City should charge a technology fee as a surcharge on its planning and building permits. This fee should be based upon the actual costs to fund the deployment of the automated permit information systems, the accessory technologies such as wireless devices, the ongoing licensing fees, and the replacement funding for the system. The funding should also be utilized to deploy the geographic information system within the Community Development Department. Other cities, such as Sacramento and Culver City, already charge such a technology fee. In both instances, it amounts to a 4% surcharge. Recommendation #94: The City should charge a technology fee as a surcharge to its building permits. 6. THE COMMUNITY DEVELOPMENT DEPARTMENT AND THE ENGINEERING DIVISION SHOULD DEVELOP AND MAINTAIN A POLICIES AND PROCEDURES MANUAL FOR PERMIT PROCESSING. The division-heads in the Planning, Building, and Engineering divisions should develop a central desk manual for employees which lists office management duties and who is responsible. The manual should include instructions on how to use the manual, detailed definitions of procedures or processes, direction about when and where to get help, and any other necessary resources and references (software manuals, important phone numbers, etc.). Examples of items to be included in the manual are shown below. Function Policies and Procedure Information Permit Processing • Overview of processes required from start to finish on application submittals • Application submittal checklists and requirements • Protocol for answering the phones, scheduling appointments • Policies for rejecting incomplete submittals • Process for fee calculations and collecting money • Procedures for packaging and routing plan submittals • Plan routing matrix by type of project and department requiring review 157 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 91 Function Policies and Procedure Information Plan Review • Plan Review Checklists • Case management duties for plan review staff • Cycle review times by type of project • Customer service goals such as response times for email and phone inquiries • Frequently Asked Questions • Common Code interpretations • Policies regarding communication with customers about vacation and 9/80 schedules An employee desk manual will provide a quick reference for employees to get questions answered, back each other up in the case of absence, and gain a comprehensive understanding of the Division’s operations. In addition, it provides the division-heads a method for standardizing operating procedures and developing measures of accountability for those procedures for staff. The division-heads should also work closely with lead workers, supervisors and managers in the Division to update the manuals on at least an annual basis. Recommendation #95: A comprehensive desk manual should be developed for all major work functions and services provided by the Planning, Building and Engineering divisions. A copy of the manual should be available to each employee, and updated at a minimum on an annual basis. The manual should be published to the Intranet. 7. THE MANAGEMENT OF ADVANCED PLANNING SHOULD BE IMPROVED. The Planning Division already develops an annual work program for advanced planning projects for each fiscal year. For example, the advanced work program for fiscal year 2009-10 includes the development of a green building policy / sustainable land use policy, a long-term assessment of the City’s jobs / housing balance, etc. The annual work program includes a bar chart schedule for each project included in the annual work program. This is a good step. Additional improvements are required to enhance 158 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 92 accountability. (1) The Annual Work Program Should be Expanded. The annual work program should be expanded. The program should be include such information as the following: • A description of the project (already included in the existing program); • The priority of the project (already included in the existing program); • A summary of previous work performed on the project; • The tasks to be performed for the project in the next fiscal year; • The milestone dates for each project; • The name of the project manager; • The proposed allocation of staff hours per Planner per month to the various projects; • The month-by-month allocation of staff hours by planner; • The proposed consulting budget for the project, if appropriate) in the next fiscal year including the source of funding, appropriation status, and proposed expenditures by major component; • A summary month-by-month Gantt chart for the year that provides an overall summary of the tasks to be performed for each project ((already included in the existing program). This expanded annual work program will likely require one to two pages per project. Recommendation #96: The Planning Division should expand the annual work program. (2) A Project Work Plan Should Be Prepared Prior to the Initiation of Each Advanced Planning Project. At the inception of a project, the project may be loosely defined. For example, the initial request may be for a zoning ordinance amendment that presents legal or policy issues. If potential project issues are identified early, the City Planner can determine 159 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 93 whether alternatives need to be developed to achieve the desired result. If the project is not adequately defined, the estimated time requirements are likely to be understated. The projects should be formally defined, in writing, via a project work plan. This project work plan is, in essence, a scoping document. The Planning Division should not initiate an advanced planning project until this scoping document has been developed. The project work plan should include the components enumerated below. • The project title; • A general project description including a narrative summary description of the project; • The project objectives; • The planning process to be utilized that would be utilized (such as the tasks and activities involved in the study startup, data collection an analysis, development of study alternatives, environmental assessment, and final study report); • The study data needs and sources (maps, soil studies, etc.); • A budget covering the project management or Planning Division staffing including the staff costs, consulting costs and other related costs such as traffic analysis, environmental impact report preparation, etc.; • The responsibility for completing the various components of the advanced planning project including the manager, supervisor or lead worker, and planning staff; • The extent of coordination necessary, listing the inter-agency coordination by outside agency with whom coordination will be required in the completion of the advanced planning project, the nature of the coordination, and the key contacts; • The preliminary schedule for completing the advanced planning project • A document control procedure and record-keeping system including contract documents; • Project team organizational structure and staffing levels required throughout the advanced planning project, including the estimated staffing required in terms of person hours required for each task; and 160 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 94 • Community relation and public information requirements including public hearings or meetings and how the public will be informed and involved in the advanced planning project and informed about the progress of the project. A project work plan should be completed before commencement of an advanced planning project. It should be reviewed with the Planning Commission prior to the commencement of the project. Recommendation #97: The Planning Division should complete a project work plan prior to commencement of an advanced planning project. (3) A Quarterly Report Should Be Prepared Reporting Progress Against the Project Work Plan The Planning Division should prepare a quarterly narrative statement regarding each advanced planning project. The following information should be included in this status report. • The advanced planning project name; • The project manager assigned to the project; • A comparison of actual project costs to date versus planned including – Budget for the project including staff costs, consultant costs, and other related costs; and – Project expenditures to date separately identifying staff expenditures from consulting expenditures; • A comparison of actual project schedule to date versus planned including: – The date the advanced planning project was scheduled to begin and actually begun; and – The current status of the project containing explanations such as 30% complete. These should be simple reports. The reports should be published quarterly, on- line on the Internet. Each project should be presented on a single line with information 161 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 95 regarding the project number, project title, project description, budget amount, current balance, the project manager, the date for completion, and comments (e.g., project is 50% complete). Recommendation #98: The Planning Division should publish a quarterly report regarding the status of advanced planning projects. (4) A Final Report Should Be Prepared on Completion of an Advanced Planning Project. Without a formal analysis and distribution for review, the mistakes and weaknesses of one project will almost certainly be repeated on others. The final report should focus on analyzing the good and bad aspects of the completed project, transmitting that information to the staff of the Advanced Planning Section, and providing a convenient summary of the project. At the completion of the project, the project manager assigned to the project should complete a final report including: • Project name, and a description of the project. • Costs – planned versus actual with an identification of reasons for the variances; • The staff hours allocated to the project - planned versus actual; • The schedule for completion of the project - planned versus actual; • Whether the project at completion met the expectations of the community, the appropriate Boards and Commissions and City Council; • Comments and discussion regarding the project as necessary including unusual conditions encountered during the project. This report should be circulated to the other staff within the Planning Division, the City Planner, and the Community Development Director. Recommendation #99: At the completion of an advanced planning project, a final report should be published good and bad aspects of the completed project, 162 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 96 transmitting that information to the staff of the Planning Division, and providing a convenient summary of the project. (5) The Vacant Senior Planner Position Should be Filled and Dedicated to Advanced Planning. Regardless of the project management practices for advanced planning, the City needs to dedicate staff to advanced planning. At the present time, the Planning Division is allocated a temporary Assistant Planner position. There is sufficient ongoing advanced planning workload to warrant a full-time authorized position. The vacant Senior Planner position should be filled and dedicated to advanced planning. To help pay for the costs of advanced planning, the City should charge a zoning ordinance update fee. This fee is permissible, and utilized by a number of cities to enable the fiscal sustainability of advanced planning. Recommendation #100: The vacant Senior Planner position should be filled and dedicated to advanced planning. Recommendation #101: The City should charge a zoning ordinance update fee to enable the fiscal sustainability of advanced planning as a surcharge to its building permits. 8. THE SENIOR PLANNERS SHOULD BE UTILIZED AS LEAD PROFESSIONALS IN THE PLANNING DIVISION. In evaluating the current plan of organization for the Planning Division in comparison to the principles noted above, a number of issues are apparent. These issues, presented as advantages and disadvantages, are presented in the table below. 163 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 97 Advantages Disadvantages • The current structure provides clear lines of accountability, but at the City Planner level. • The current approach to organizing long-range planning and current planning promotes resource sharing, scalability (ability to manage peaks and valleys), and adaptability (cross functional capability) since staff can be utilized for both advanced planning and current planning. • The spans of control for the City Planner are reasonable, and not too broad. • The lines of accountability and functional cohesion are muddled in regards to the provision of advanced planning and current planning below the level of City Planner. • The spans of control are too narrow for the Senior Planners if the Senior Planners are to be utilized as first-line supervisors. • The “handoffs” for advanced planning projects can be a problem given the absence of staff dedicated to this function. • The current structure impedes workload management, resource sharing, scalability, and adaptability since different Senior Planners are responsible for current and for advanced planning. • The current structure does not aid performance management, quality control checks, and consistency of policy/procedure application since different Senior Planners are responsible for current and for advanced planning. • The current structure impedes the sharing of knowledge and understanding due to the lack of lead workers. The current plan of organization clearly offers a number of advantages. The current plan of organization has worked for the Division. However, the current plan of organization has a number of issues associated with it as noted previously. The Matrix Consulting Group recommends a modified plan of organization for the Division that provides for career growth for the Senior Planners by utilizing these three Senior Planners as lead professionals for distinct services within the Division. Important points to note regarding the proposed role of the Senior Planners are presented below. • The City Planner would continue as the division-head for the Planning Division. • The Three Senior Planners would be responsible for taking the lead a distinct function. One of the Senior Planners should take the lead for Current Planning, the other should take the lead for Advanced Planning, and the third for CEQA. These three Senior Planners would be the lead practitioners in these areas. 164 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 98 • In this role, the Senior Planner would be responsible for being a lead professional for a team of other professionals. This team could include Assistant and Associate Planners or staff from other divisions, as appropriate. These three Senior Planner positions should be trained and utilized as lead professionals. Recommendation #102: The Senior Planners should be utilized as lead professionals within the Planning Division. This role should be clarified in a written division policy and procedure. 9. THE ENGINEERING DIVISION SHOULD UPDATE THE STORMWATER MASTER PLAN. The stormwater master plan was prepared in the 1980’s. Master plans typically have a 20-year life span at the maximum given changes in the regulatory environment and the implementation of the capital projects contained in the master plan. The Engineering Division should update the stormwater master plan in the next two years using a consulting engineering firm. The pricing in this economic environment should be advantageous to the City. Recommendation #103: The Engineering Division should update the stormwater master plan in the next two years using a consulting engineering firm. 10. THE MAYOR AND CITY COUNCIL SHOULD DEVELOP ALTERNATIVES FOR THE CONSIDERATION OF THE CITY COUNCIL TO AVOID CONDUCTING PUBLIC HEARINGS FOR CITY COUNCIL MEETINGS IN THE EARLY MORNING. A number of different types of planning permits require the consideration and decision of the City Council. This includes such types of permits as conditional use permits and variances. The project team, in studying the permit process, also reviewed the decision- making process. A review of this process found that the decisions made by the City Council sometimes occur in the early morning. This is unusual and not commonly found 165 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 99 in Cupertino’s peer cities. The decisions made in the early morning by the City Council defeat the purpose of public hearings since few members of the public can afford to participate in the public process in the early morning. The Mayor and the City Manager should develop alternatives for the consideration of the City Council to avoid conducting public hearings after a certain hour in the evening such as 11 pm. Implementation of these alternatives would enable viable public comment and participation. Recommendation #104: The Mayor and City Manager should develop alternatives for the consideration of the City Council to avoid conducting public hearings for City Council meetings in the early morning. 166 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 100 7. ANALYSIS OF THE PLANNING COMMISSION AND DESIGN REVIEW COMMITTEE This section presents an analysis of the Planning Commission and staff interactions with the Commission, as well as approaches that could be utilized by the Community Development Department to enhance the effectiveness of the operations and planning efforts of the Planning Commission and the Design Review Committee. The Planning Commission is appointed by the City Council and is designed to review and make recommendations on major planning permits and to provide feedback and review of changes to enabling legislation affecting the planning process. The Design Review Commission is a subset of the Planning Commission and includes members of the Planning Commission acting on behalf of the full Commission. 1. THE PLANNING COMMISSION AND DESIGN REVIEW COMMITTEE SHOULD CONDUCT AN ANNUAL RETREAT WITH STAFF. The staff of the Community Development Department Planning Division should conduct a retreat with the Planning Commission and the Design Review Committee annually. The purpose of the retreats is to enable the Commission and Committee to get away from the ordinary routine and discuss strategic issues such as the annual work program, for example. One city’s annual retreat agenda for its Planning Commission consisted of the following: • The Commissions’ role in implementing City Council policy; • Review of variances and planned unit developments zoning regulations; and • The code enforcement process, coordination with Planning and case studies. Other cities utilize these annual retreats to discuss zoning regulations, the 167 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 101 grounds upon which applications can be denied, future planning efforts and developing issues, transportation issues, housing policy, etc. It is important to keep the commission fully aware of changing requirement, trends in the industry, and specific challenges that may be faced in the coming year. Similar topics should be covered with the Design Review Committee to ensure a clear vision and the development of an agreed upon annual work program that is in conformance with the adopted City Council policy goals. Managerial and supervisory staff of the Planning Division should participate in this annual retreat with the Commission and Committee. An important part of the annual retreat is to define the relationship between the Planning Commission and the Design Review Committee and the staff of the Planning Division. This includes the expectations the two entities have of staff and, similarly, what expectations staff has of the Planning Commission and Design Review Committee. Without discussing the expectations each has of the other, misunderstandings can result. This, in turn, can lead to publicly aired disagreements on critical planning issues that reflect poorly on the City as a whole. To enhance the working relationships between the Planning Commission and the City Council, the Planning Division should conduct joint retreat sessions with the Planning Commission and the City Council annually. The purpose of these joint work sessions is to discuss matters involving planning, land use, and community change management issues. To avoid being haphazard and disjointed, an agenda should be developed by the Department and followed through the retreat to ensure an orderly and comprehensive session. 168 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 102 The Planning Division should designate one individual, such as the City Planner, to serve as the facilitator to keep this annual retreat on track, develop the agenda, coordinate the meeting, and conclude the retreat by developing an agreed upon list of actions or next steps. Recommendation #105: The Planning Commission should conduct annual retreats with staff. 2. THE CITY COUNCIL SHOULD CONDUCT A JOINT MEETING EACH YEAR WITH THE PLANNING COMMISSION AND DESIGN REVIEW COMMITTEE. It is extremely critical for the effective implementation of the general plan and the zoning regulations that the City Council and the Planning Commission speak from the same basis on a common vision for the city and development activities. The Commission and the City Council need to discuss their expectations of each other. Regular meetings, not less than once annually, keep lines of communication open between the bodies, preventing rifts and misunderstandings. The Planning Commission functions as an extension of the City Council in implementing land development within the City of Cupertino. It is critical that all entities are proceeding in their review and approval (or denial) with a common vision and understanding of what is trying to be achieved. In addition, these meetings are a good time to discuss potential changes (at a high level) in the Zoning Ordinance utilized by the City. This session can include a joint visioning exercise between the Planning Commission and the City Council to provide guidance to staff in making changes in the enabling ordinances and setting work priorities for the coming year. By conducting this joint visioning exercise for the updating of the zoning ordinance (and the design review regulations), listening to ideas 169 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 103 (and complaints) about a range of neighborhood and citywide issues, the City Council and these two Commissions can provide early input and direction to these critical policy documents, to assure the document incorporates the important perspectives and concerns of all interested parties and present a common vision for the future of Cupertino. This will reduce the chances of being “blind-sided” by critical comments at the end of the process or the City Council and the Commissions proceeding in different directions. Recommendation #106: The City Council and the Planning Commission should conduct joint meetings at least annually. Recommendation #107: The City Council and Planning Commission should conduct a joint visioning exercise early in the process of any updating of the Zoning Ordinance. 3. COMMISSION MEMBERS SHOULD BE PROVIDED WITH ONGOING ANNUAL TRAINING AND EDUCATIONAL RESOURCES. The Planning Division should provide members of the Planning Commission with ongoing training. This issue is so important that the states of Kentucky and Tennessee have passed legislation in the past few years that mandates orientation for new Planning Commissioners and continuing education for these commissioners (as well as staff). This training ensures that members serving on this critical commission are provided a common base of knowledge of the planning profession and the enabling ordinances and regulations adopted by the City of Cupertino. The ongoing training that should be provided by the Planning Division to commission members should include such topics as the following: • The legal basis for the Commission; • The duties, roles and responsibilities of the Commission, including the kinds of decisions that the Commission makes, and the required legal basis for making 170 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 104 those decisions; • The structure and staffing of the Planning Division, and the duties, roles and responsibilities of staff; • Recent significant issues, significant applications, and advanced planning program initiatives that the Commission and City Council have considered; • The comprehensive plan, the Zoning Ordinance, and any design guidelines that have been developed by the City, and the overall planning and land use framework; • The bylaws of the Commission and the City Council, meeting management and procedures; • Public participation, both in terms of noticing and at Commission and City Council meetings; • Environmental regulations and environmental issues; • Sources of funding for the Planning Division and the most recent adopted annual budget for the division – both revenues and expenditures; • The most recent advanced planning work program adopted by the City Council; and • Publications available from the Planning Division. In addition, each member of the Planning Commission should be provided with membership in the American Planning Association. The American Planning Association provides information specifically for Planning Commissioners including a Commissioner newsletter, a CD-ROM and video training package series for planning commissioners, audio training packages, a planning commissioner training resource center, a planners book service and a series of retreats at the annual American Planning Association annual conference, the monthly Planning magazine, and other relevant material. This membership is available at a discounted rate for planning board members. Recommendation #108: Planning Commission members should be provided with ongoing training of no less than four hours a year. 171 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 105 Recommendation #109: The members of the Planning Commission should continue to be provided with membership in the American Planning Association. 4. AN ANNUAL REPORT OF THE PLANNING COMMISSION SHOULD BE PREPARED AND SUBMITTED THE CITY COUNCIL. As part of ensuring ongoing communications and interaction, the City Planning Commission, with the assistance of staff from the Planning Division, should prepare an annual report. This report should be formally submitted to the City Council. The report should outline the activities performed by the Planning Commission including information such as: • Workload data, including the number of cases processed and summaries of the outcome; • Major issues faced during the year; and • Identification of potential areas for future revision in the enabling ordinances (drawn from both cases where the commission had difficulty in applying it during the prior year, or from areas identified as potentially conflicting or problematic). This report should be reviewed during the annual meeting held between the City Council and the Planning Commission. Recommendation #110: The Planning Commission should prepare an annual report summarizing their activities and submit it to the City Council. 5. THE CITY SHOULD TAKE A NUMBER OF STEPS TO REDUCE THE LENGTH OF PLANNING COMMISSION MEETINGS. It is clear from a review of agendas and minutes of the Planning Commission that these meetings are lengthy. The Planning Division should work with the Chairperson of the Commission to develop and implement steps to reduce the length of these meetings. The recommendations of the Matrix Consulting Group to address this challenge are presented below. 172 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 106 • Amend Planning Commission Bylaws To Clarify the Responsibility of the Chairperson To Manage Commission Meetings. The clarification of the responsibility of the chairperson should include presiding over all commission deliberations and having the authority to preserve order, enforcing rules of the commission, assuring commission meetings are conducted in accordance with commission bylaws, and determining the commission order of business. The bylaws should clarify that one of the main duties of the chairperson is to preside over meetings of commission and ensure these meetings are well-run, prompt, that its membership is respectful of each other and staff, that these meetings do not consistently end at the early hours of the morning, and a pleasant atmosphere exists at these meetings. The role and responsibility of the chairperson should include monitoring Commissioner comments to assure these comments are pertinent to the matter and concise, that Commissioners avoid issues that it cannot use to base its decisions, and provide direction to the public about what issues are germane to the Commission. Recommendation #111: Amend the Planning Commission bylaws to clarify the responsibility of the Planning Commission chairperson to manage Commission meetings. • Amend Planning Commission Bylaws To Reduce the Amount of Time Available to Public Speakers to the Same Amount As Provided by the City Council. The amount of time provided for applicants, appellants, and the public should be the same for the Planning Commission as the public. The issues considered by the City Council are equally as serious and complex as those before the Planning Commission. The amount of time provided for public speakers by both bodies should be the same. Recommendation #112: Amend the bylaws of the Planning Commission to reduce the amount of time available to public speakers to the same amount as that provided at City Council meetings. 173 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 107 APPENDIX 1 - PROFILE This section of the profile provides organizational and operational information for the resources allocated to the City permit process, including the Administrative, Planning, Economic Development and Housing, and Building Divisions of the Community Development Department, and the Engineering Division of the Public Works Department. The information in this profile is based upon interviews conducted with Division personnel, collection of workload statistics from various information management systems, and review of budget and other documentation, and is organized as follows: • Administrative Division; • Planning Division; • Economic Development and Housing Division; • Building Division; and • Public Works Engineering Division. For each of these areas, the project team provides the organizational structures, the key roles and responsibilities of staff involved in the permit process, and a summary of workload and service levels where available. 1. THE ADMINISTRATION SERVICES DIVISION IS AUTHORIZED 6 POSITIONS. The Administrative Services provides overall direction to the Community Development Department and general administrative support to the department's other divisions (the Planning Division, Economic Development and Housing Division, and the Building Division). Its activities include staff support to top and mid-level management, and the Planning Commission, Design Review Commission, Environmental Review 174 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 108 Commission, and the Housing Commission. It is involved in the overall direction and coordination of department's different programs and work processes. The Division accomplishes a number of ongoing tasks including the following: • Provides overall support to the department in the areas of budget management, purchasing and personnel recruitments; • Monitors contracts and payments for professional consultants (such as Arborist, Architectural Advisor, and Geologist) hired by the department; and • Oversees and monitors work plan items of the department’s different programs including completion of the annual work plan items adopted by the City Council. The fiscal year 2008 / 09 work plan adopted by the City Council included the following projects and tasks related to the Community Development Department. • Major Developments: Periodic updates and analysis regarding major development projects including: Cupertino Square, HP Property, The Oaks, Rose Bowl, North Vallco Parkway Retail, and California Pizza Kitchen. • E-Services: Implementation of enhanced E-Services including online building permitting and inspection scheduling, on-line issuance of basic permitting functions, and redesign of website. • Housing: Implement various affordable housing efforts including: develop and encourage development of housing opportunities for Cupertino workers, creation of a teacher housing assistance program, and implementation of Cleo Avenue Affordable Housing. • Economic Development / Redevelopment: Several Council priorities were established including: - Encourage, retain and support health environment for retail growth. - Consider retail in reviewing new developments. • Planning: Specific projects adopted by the City Council as priorities in the Planning area included: - Review the Heart of the City plan. - Development of Green Building Standards. 175 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 109 - Preparation of Historic Preservation Policy. - Develop policy for tree topping under property maintenance standards. - Place sign code review on Planning Commission work program. - Update of General Plan Housing Element The plan of organization for the Administration Division is presented in the first exhibit at the end of this chapter. The Division is authorized 6 full-time equivalent positions. The number of staff by classification is presented in the table below. Class Title Number of Authorized Positions Director of Community Development 1 Administrative Assistant 1 Senior Office Assistant 2 Administrative Clerk 2 The roles and responsibilities of the staff assigned to this Division are presented in the second exhibit at the end of this chapter. The following table outlines the overall budget, by division, for the Community Development Department. 2005-06 Actual 2006-07 Actual 2007-08 Adopted 2008-09 Adopted % Change 05/06 to 08/09 Administration $209,148 $194,606 $211,184 $265,068 26.7% Planning $1,024,561 $1,166,623 $1,674,265 $1,750,428 70.8% Housing $1,394,794 $375,568 $555,828 $740,553 -46.9% Building $2,438,731 $2,230,732 $2,107,466 $2,365,653 -3.0% TOTAL $5,067,234 $3,967,529 $4,548,743 $5,121,702 1.1% As noted in the chart above, the overall budget for the Community Development Department has increased only 1.1% over the last four years. A review of the budget detail shows that the major areas of change during this time period are the amount of funds allocated for contractual services and special projects. 176 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 110 2. THE PLANNING DIVISION IS AUTHORIZED 5.5 PROFESSIONAL PLANNING POSITIONS. The Planning Division is responsible for long-range planning and current planning. The plan of organization for the Planning Division is presented in the third exhibit at the end of this chapter. The Division is authorized 5.5 full-time equivalent professional planning positions. One of these positions – A Senior Planner - is vacant; a temporary Assistant Planner position has been authorized. Important points to note concerning the plan of organization are presented below. • The Planning Division is organized in one section. All planners carry both an advanced planning and a current planning workload. Senior Planner typically are assigned those projects that are more complex, have unique characteristics, or are otherwise more difficult. The Assistant and Associate Planners handle more routine applications. • The City Planner serves as the division-head for the Planning Division, and reports to the Community Development Director. The City Planner provides overall guidance to the Division, supervises all staff of the division, and is responsible for assigning applications to staff planners. • The Associate Planner is shared between the Planning Division and the Economic Development and Housing Division. • The Planning Intern works 24 hours per week and is responsible for handling counter functions, processing of simple planning applications, and special projects as assigned. • Daily counter / phone duties are shared between two planners. • The authorized Planning Division staffing is presented in the table below. Class Title Number of Authorized Positions Number of Vacant Positions City Planner 1.0 0 Senior Planner 3.0 1 Associate Planner 0.5 0 Assistant Planner 1.0 0 Assistant Planner - Temporary 1.0 TOTAL 6.5 1 The table shows 6.5 positions; one of these 6.5 positions is a 1.0 temporary Assistant Planner. 177 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 111 The roles and responsibilities of the staff assigned to the Planning Division are presented in the fourth exhibit at the end of this chapter. The fifth exhibit presented at the end of this chapter presents the workload for the Planning Division, while the sixth exhibit presents service levels and other important operational characteristics for the Planning Division. The Planning Division supports three commissions: the Planning Commission, the Design Review Commission (a subset of the Planning Commission) and the Environmental Review Commission. The make up and roles of the Commissions are presented in the paragraphs below. • Planning Commission. The Planning Commission consists of five members appointed by the City Council to carry out a variety of assigned and delegated functions. State law sets out the major areas over which the Planning Commission has authority, either as a decision-making or advisory body to the City Council. The Commission is responsible for recommending various development policies to the City Council, and once adopted in the form of the City's General Plan or other ordinances (such as sign ordinance), for reviewing development applications for their conformance to the adopted plans and policies. The Commission acts as an advisory body to the City Council on applications for subdivision of land, and the approval or denial of tentative parcel maps (four parcels or greater) and, making recommendations to the City Council on a variety of discretionary development applications (Conditional Use Permits, Development Plan Review Permits, etc.), variances from the zoning regulations and for the environmental assessment of such applications, as proscribed by law or municipal ordinance. • Design Review Committee. The Design Review Commission consists of the Planning Commission Vice-Chair and one additional Planning Commission member appointed by the Planning Commission. An alternate member is designed in the absence of the Planning Commission member and is also selected by the Planning Commission. The Design Review Committee is charged with reducing the Planning Commission’s workload by addressing design review responsibilities and incorporating professional architectural advice into the process. • Environmental Review Committee. The Environmental Review Commission consists of the following members: one City council person, one Planning 178 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 112 Commission, the City Manager, the Director of Public Works and the Director of Community Development (or their designated alternatives). The Chair of the Committee may appoint one at-large nonvoting citizen member to the committee. The Environmental Review Commission is responsible for reviewing all discretionary projects, not otherwise exempted from environmental assessment, for evaluation under the California Environmental Quality Act. The Committee will evaluate the initial study of a project to determine whether the project will have a significant effect on the environment. 3. THE ECONOMIC DEVELOPMENT AND HOUSING DIVISION IS AUTHORIZED 2.5 EMPLOYEES. The Economic Development and Redevelopment Division is responsible for managing the City’s overall economic development efforts (including business attraction, retention and assistance), CDBG administration, housing programs and related services. Primary goals related to housing include: • Encourage a balanced community by improving local availability of affordable housing opportunities; and • Maintain existing housing through correction of housing deficiencies and building code violations. • Prepare updates or modifications to the Housing Element of the General Plan when necessary. • Prepare and submit approved Consolidated Plan to HUD. • Coordinate the Request for Proposals process for CDBG funds and Affordable Housing Funds annually. Present CDBG proposals to the Housing Commission for their recommendation to the City Council. • Develop and monitor contracts with all CDBG sub-recipients on a quarterly basis. • Present funding applications and coordinate meetings of the Cupertino Housing Commission. Conduct quarterly monitoring of housing program accounts and affordable housing loan / rent payments to the Affordable Housing Fund. Work with local developers to encourage development of 30 affordable housing units. • Monitor existing Housing Rehabilitation Program loan collections, payoffs, foreclosures and program income for a $100,000 loan portfolio. • Facilitate Mortgage Credit Certificate funding in the amount of $100,000. 179 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 113 • Work with school district to provide teacher housing opportunities. The plan of organization for the Economic Development and Housing Division is presented in the seventh exhibit at the end of this chapter. The Division is authorized 2.5 full-time equivalent positions. Important points to note concerning the plan of organization are presented below. • The Division is managed by the Economic Development / Redevelopment Manager. • One staff member, the Senior Planner CDBG, is responsible for administration and oversight of all CDBG, public service and housing programs. • The Division shares an Associate Planner with the Planning Division. While staffing is shown as split 50% between the two Divisions, current planning functions take priority over non-planning activities. • The authorized Economic Development and Housing Division staffing is presented in the table below. Class Title Number of Authorized Positions Economic Development/Redevelopment Manager 1 Senior Planner CDBG 1 Associate Planner .5 TOTAL 2.5 The eighth exhibit at the end of this chapter presents the roles and responsibilities of the staff of the Division. 3. THE BUILDING DIVISION IS ALLOCATED 10.0 FULL-TIME EQUIVALENTS The Building Division safeguards the health and safety of residents, workers, and visitors to the City of Cupertino through the administration and enforcement of building codes and ordinances adopted by the City, by providing field inspections and plan checking, and overall regulating the design, construction, use, occupancy, location and maintenance of all buildings and structures. The Division service objectives include: 180 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 114 • Assist customers in meeting their deadlines and objectives • Increase the knowledge of staff through in-house training, meetings, and seminars. • Provide useful and informative data on the City’s website. The plan of organization for the Building Division is presented at the end of this profile. The Division is authorized 10.0 full-time equivalent positions. Important points to note concerning the plan of organization are presented below. • The personnel of the Division are primarily organized within building inspections and plan checking. • The authorized Building Division staffing is presented in the table below: Class Title Number of Authorized Positions Building Official 1 Senior Building Inspector 1 Building Inspector 6 Plan Check Engineer 1 Counter Technician 1 • The Building Official is the overall manager of the Division, providing general guidance and leadership and represents the Division in meetings with elected City officials, executives, and the community. • The administrative support is responsible for routing plans and entering data regarding permit applications and inspections into the computer application. • The Building Inspection section is responsible for conducting required field inspections at various points of residential and commercial building projects, address citizen complaints, enforce building codes, conduct community education, etc. • The Plan Check section is responsible for reviewing residential and commercial building, remodel, and tenant improvement plans for conformance to State and Municipal building codes. The key roles and responsibilities of the personnel assigned to the Building Division are presented in an exhibit at the end of this profile. Other exhibits for the Division presents service level information. 181 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 115 4. THE PUBLIC WORKS ENGINEERING DIVISION ALLOCATES APPROXIMATELY 1.25 FULL-TIME EQUIVALENTS TO THE PERMIT PROCESS The Public Works Engineering Division reviews plans for private residential and commercial developments to ensure conformance with City standards. Public Works Engineering staff involved in the permit process are co-located with the Community Development Department personnel (within the same office space) with the following positions providing some level of involvement in the building permit approval process: • The Assistant Director of Public Works oversees the review of building and discretionary permits (encroachment, grading, etc.), commercial development, land division, single family dwelling, room additions, etc., including those projects which impact the right of way and on additions resulting in 25% or more square footage • An Engineering Technician is routed the plans from the Building Division and enters the information into an excel spreadsheet for tracking purposes. This position will route to an engineer for review. • Engineer positions provide all the permit review (1 position is dedicated, 1 other position to a much lesser extent), processing the drawings, conducting site visits utilizing field checklists, reviewing plans, spending time with developers and owners to make sure public works issues are being addressed. For the past three months, the Engineer Division conducted approximately 159 plan checks for permits. Annualized, the Public Works Engineering Division conducts plan reviews routed from Community Development for approximately 636 permits (or 53 per week). 182 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 116 Exhibit 2 Plan of Organization of the Administration Division 183 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 117 Exhibit 3 (1) Roles and Responsibilities of the Staff of the Administrative Division Position Number of Positions Description of Responsibilities Community Development Director 1.0 • Supervises the City Planner, Building Official, Economic Development/Redevelopment Manager, and the Administrative Assistant. • Represent the City in development and land use matters. • Plans, organizes, controls, and evaluates the work activities of the Community Development Department. • Research, analyze and recommend policies for development and land use matters. • Implements and monitors long-term plans, goals and objectives focused on achieving the Department’s mission and City Council priorities and annual workplan. • Directs the development of and monitors performance against the annual department budget. • Participate in numerous public meetings including City Council meetings and Planning Commission meetings. • Oversees the development, implementation and evaluation of plans, policies, systems and procedures to achieve the Department’s goals, objectives and work standards • Provides leadership to develop and retain highly competent, service-oriented staff through selection, training and day-to- day management practices that support the Department’s mission and values Administrative Assistant 1.0 • Reports to the Community Development Director. • Assists the Community Development Director by providing administrative and technical support in the planning, direction and operation of the department. • Serves as Office Manager and supervisor for all Administrative support staff. Assigns, prioritizes and evaluates work efforts of assigned staff. • Oversees departmental records retention program. • Assists with department budget development and ongoing administration and monitoring of budget. • Performs all accounts payable and payroll functions for the Department. • Manages on-going and project specific contracts for external consultants and resources (i.e. - architectural/design consultant, arborist resources, geologist/soils consultant, traffic consultant, and environmental assessments. • Handles bond processing, recordkeeping and tracking. • Manages Planning Commission agenda process including drafting Director’s report. • Drafts Development Activity Report. • Oversees and updates departmental website. • Serves as project manager for eGov implementation. 184 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 118 Exhibit 3 (2) Position Number of Positions Description of Responsibilities Senior Office Assistant 2.0 • Provides back up support to administrative staff assigned to the Planning Division, including the front lobby counter to help with minor questions about plan check, issue permits and collect fee balances. • Processing the plan checks, including data entry, checking for fees, routing them to different departments based on scope off work, filing the charts, etc.) • Other general administrative duties include filing, scanning and microfilming, printing out the daily schedule, handling phone calls, and consensus reports. • One Sr. Office Assistant assigned to serve as receptionist / front counter staff. • Enters applications into permitting software, accepts and processes permit payments, and issues receipt to applicant. • Answers incoming calls and walk-ins and directs to appropriate division / staff member. • Conducts research of permits as requested. Administrative Clerk 1.0 • Reports to the Administrative Assistant. • Provides administrative support to Planning staff including preparation and distribution of agenda packets for Planning Commission (PC), Design Review Commission (DRC), and Environmental Review Commission (ERC). • Prepares minutes of DRC and ERC meetings. • Handles noticing of property owners within applicable radius for planning applications. • Assists in entering new planning applications into Planning Database. • Coordinates efforts between IT and Pentamation on implementation of planning module and e-services. • Responsible for developing reports from data maintained in Pentamation utilizing Cognos. • Oversees records storage and retention efforts of Community Development Department. • Performs application and permit electronic filing program including indexing and organizing of microfilm that has been converted to electronic format. Conducts scanning of records. • Maintains all planning application files (paper copies). • Provides backup for issuance of building permits. 185 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 119 Exhibit 3 (3) Position Number of Positions Description of Responsibilities Administrative Clerk 1.0 • Takes phone calls regarding inspection requests and schedules inspections in Pentamation. • Processing the incoming and outgoing plan checks, including entering the permit information into Pentamation (permit number, intake date, due date, department route, etc.). • Delivering documents to planners and the respective Departments, including Public Works, Fire, and Sanitation • Processing address changes and sending out letters to the affected agencies (Assessor’s Office, utilities, school districts, etc.) of the change, and sending out letters for expired permits • Printing out the master inspection log report on a daily basis and updating it to include the assigned inspector and time of inspection. • Entering into Pentamation the field inspection results and comments, if any. • Other general administrative duties such as ordering supplies, handing customer phone calls, handling the Quarterly Construction Tax report, etc. • Answers phones and assists callers directly or by transferring them to appropriate staff member. 186 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 120 Exhibit 4 Plan of Organization of the Planning Division 187 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 121 Exhibit 5 (1) Roles and Responsibilities of the Staff of the Planning Division Position Number of Positions Description of Responsibilities City Planner 1.0 • Manages the Planning Division including supervision of all planning staff (6.1 full time equivalents). • Ensures current planning operations meet all federal, state, and local rules and regulations for processing times, public disclosure, compliance with codes, environmental assessments, etc. • Coordinates divisions efforts with other agencies (including Fire and Health) and adjoining communities. • Maintains a small current planning workload as necessary. • Reviews all work of assigned staff including staff reports, administrative approvals, etc. • Responsible for case assignments to planners. • Drafts policies and procedures related to current and advanced planning and ensures the adherence of the Division to adopted policies and procedures. • Develops goals and objectives for the Division, and monitors performance. • One Senior Planner supervises work efforts of the contracted Assistant Planner and the Planning Intern. Senior Planner 3.0 (1 vacant) • Reports to City Planner. • Carry both a current planning and advanced planning workload. Generally assigned more complex current planning projects. • Conducts zoning studies; analyzes land use issues; recommends resolutions to land use problems; directs proposed ordinances through review process. • Reviews assigned planning applications to ensure compliance with General Plan, Zoning Ordinance, Specific Plans, and City Development Standards. Ensures appropriate environmental reviews are conducted. • Serves as case manager for planning applications and coordinates review with other departments and external agencies. Prepares staff reports to Planning Commission and City Council for assigned projects. • Coordinates development review meetings with reviewing departments/agencies and applicants. • Assists with development of special and specific plans. • Perform building permit plan checks for zoning compliance. • Manages, supervises or prepares reports for special planning projects and studies. • Handles zoning code enforcement cases based upon complaints received. Conducts investigations and works with residents to reach compliance. 188 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 122 Exhibit 5 (2) Position Number of Positions Description of Responsibilities Associate Planner 0.5 • Reports jointly to City Planner and Economic Development / Redevelopment Manager. • Has assigned counter duty in rotation with other City planners. • Assigned both a current and advanced planning case load. • Current planning work activities include review and processing of applications for single family applications, building permit plan check approvals (for zoning compliance), basic residential and non-residential applications. • Handles zoning code enforcement cases based upon complaints received. Conducts investigations and works with residents to reach compliance. • Conducts tree removal permit reviews – conducts site visits and coordinates with arborist to determine appropriateness of request. Assistant Planner (1 budgeted; 1 unbudgeted and temporary) 2.0 • Reports to one of the Senior Planners. • Assigned to counter duty schedule in rotation with other Planners. • Provides information and guidance to applicants submitting a variety of projects including: small residential, 2nd story additions, processing of covenants, and building permit plan checks (zoning compliance), • Ensures applications meet City codes and requirements including compliance with Zoning Ordinance and standard conditions of approval. Where required develops staff reports, issuance of public notices, and development of staff recommendation for approval/denial. • Developing Historical Ordinance for consideration by the City Council. • Handles zoning code enforcement cases based upon complaints received. Conducts investigations and works with residents to reach compliance. 189 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 123 Exhibit 6 Workload For the Planning Division Application Workload By Type of Application / Permit Application Type 2006 2007 2008 Architectural Site Approval 25 19 9 City Project Applications 3 4 2 Development Agreements 0 0 0 Director's Minor Modifications / Temporary Use Permits 36 38 37 Environmental Assessments 20 10 10 Exceptions 14 11 17 General Plan Amendments 0 0 1 Interpretations 0 1 0 Minor Residential Permit 38 34 37 Modified/Amended 7 3 5 Municipal Code Amendment 3 1 4 R-1 Design Review 62 44 32 Specific Plan Amendments 1 0 1 Tentative Map 12 12 2 Tree Removal Permit 17 14 16 Use Permit 14 11 4 Variance 2 3 1 Zoning 6 0 1 TOTAL 260 205 179 Application Workload Sorted by Approval Level Applications by Approval Level 2006/07 2007/08 2008/09 (6 months) Planning Commission Application (INT, M, TM, V) 26 8 6 City Council Applications (CP, GP, MCA, SPA, TR, U, Z) 34 32 16 Design Review Committee Applications (ASA, EXC) 45 29 7 Staff Level (DIR, R, RM) 160 100 45 Environmental Assessments 12 8 4 TOTAL 277 177 78 190 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 124 Exhibit 7 Service Levels For the Planning Division Characteristic Description Hours of Operation and Schedule • Office hours are from 7:30 a.m. to 5:30 p.m., Monday through Thursday, and Fridays from 7:30 a.m. to 4:30 p.m. Office closed from Noon to 1:00 p.m. daily. • Individual work hours for each Planner varies. Some staff are on AWP schedule which includes every other Friday off and others are on a traditional work schedule. Starting and ending times vary to provide office and counter coverage. Coverage Area • For all processing of discretionary and administrative permit applications assuring the applications meet the requirements of the general plan and the zoning ordinance. • Staff provide support to Planning Commission, Environmental Review Commission, and Design Review Commission. • All planners have assigned counter duty shifts. Counter service is provided in two shifts: 7:30 a.m. to Noon and 1:00 p.m. to 5:30. Planners have pagers so they do not remain at counter unless customer is present. • Responsible for the preparation and maintenance of the General Plan, Zoning Ordinance and any Specific or Area Plans. • Specific and Master Plans overseen include: - Heart of the City Specific Plan - N. De Anza Blvd. Specific Plan - South Vallco Master Plan - North Vallco Master Plan - Wireless Facilities Master Plan Training and Certification • The planning series classification descriptions do not require AICP certification. • There are three AICP certified members on staff. Codes Administered and Enforced • General Plan • Zoning ordinance • Sign Ordinance • Subdivision Map Act • California Environmental Quality Act 191 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 125 Exhibit 8 Plan of Organization of the Economic Development and Housing Division 192 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 126 Exhibit 9 (1) Roles and Responsibilities of the Staff of the Economic Development and Housing Division Position Number of Positions Description of Responsibilities Economic Development / Redevelopment Manager 1.0 • Reports to the Director of Community Development. • Directly supervises the Senior Planner CDBG and Associate Planner (half time assignment). • Oversees the City’s economic development and redevelopment activities including recruitment/retention efforts, identification of available space for business locations/relocations. • Maintains, compiles and/or analyzes data regarding community demographics. • Oversees City TIF district. • Serves as liaison with variety of organizations and committees including Chamber of Commerce and Economic Development Committee. • Conducts City branding/marketing efforts. • Develops various publications and brochures including Restaurant Guide. • Develops and maintains redevelopment plan for the City. • Oversees City’s CDBG and housing programs. • Drafts / updates relevant sections of General Plan and assists with development of specific plans (i.e. – Heart of the City Plan). Senior Planner CDBG 1.0 • Reports to Economic Development / Redevelopment Manager. • Oversees the City’s CDBG program (including public service grant allocations); assisting with development of staff recommendation to CDBG Committee for action and recommendation to City Council. • Serves as staff liaison to Housing Commission. • Performs all grant administration functions and sub- recipient monitoring for allocated funds. • Oversees and coordinates funds allocated to affordable housing received from Housing Mitigation fee charged on new developments. • Enters required data into HUD’s IDIS system and prepared requests for fund drawdowns. • Responsible for development of Housing Element of the General plan. Coordinates and oversees efforts of consultant. 193 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 127 Exhibit 9 (2) Roles and Responsibilities of the Staff of the Economic Development and Housing Division Associate Planner 0.5 • Reports to both City Planner and Economic Development / Redevelopment Manager. • Prepares economic data and analysis to support Economic Development efforts. • Conducts data analysis on sales tax receipts generated – restaurant program. • Works on special projects as assigned (i.e. – preferred caterer list). • Develops a variety of reports and brochures as requested to support programs and efforts of the Division. Dining guide is one recent example. 194 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 128 Exhibit 10 Plan of Organization of the Building Division 195 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 129 Exhibit 11 (1) Roles and Responsibilities of the Staff Of the Building Division Position Number of Positions Description of Responsibilities Building Division Administration Building Official 1.0 • Serves as Chief Building Code Official for the City of Cupertino. • Oversees operation of the Building Division including performance of the building inspectors, plan check staff, and permit processing. • Develops and monitors the budget for the Division. • Conducts selective plan reviews for complex, high-profile or otherwise difficult projects. • Assigns, evaluates and monitors work activities of assigned staff. • Responsible for making all final City decisions regarding code applicability, approval of alternative methods/materials, etc. Building Inspection Senior Building Inspector 1.0 • Reports to the Building Official. • Conducts inspections on complex, sensitive or problematic projects. • Serves as working supervisor for Field Inspectors and counter plan check personnel. Assigns and evaluates work activities. • Prepares daily inspection schedule and assignment of inspections to inspectors. • Conducts non-structural building permit plan checks (tenant improvements, small additions with conventional framing). • Handles some code interpretation issues. • Handles customer complaints. 196 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 130 Exhibit 11 (2) Roles and Responsibilities of the Staff Of the Building Division Building Inspector 6.0 • Primary responsibility is conducting inspections for projects at various stages requiring a building permit (construction and remodels) that affect a structure’s electrical, plumbing, and / or mechanical systems, including initial inspection and any necessary follow up for re-inspections, writing correction notices, issuing permits, etc. • Responding to citizen complaints and addressing building code violations (including those resulting from proactive enforcement). • Answering questions and providing education to developers, contractors, architects and the general community regarding building and development, including non-point source environmental initiatives, etc. • 1 position is assigned to the front counter and is responsible for the intake, review, routing and / or approval of over-the- counter plan checks, express plan checks, standard plan checks, and large/major projects. Plan Check Plan Check Engineer 1.0 • Primary responsibility is reviewing building plans for small (remodels, minor additions), mid-size (larger additions, significant remodels), and large (major tenant improvements, new homes) projects. • Verifying that plans for construction or alteration to commercial, residential, and industrial structures comply with State and municipal codes and ordinances. • Works with architects, engineers, and contractors to address questions and issues regarding structural design, zoning, grading, energy standards, etc. • Other duties include checking plans over the counter for smaller projects and attending development meetings. Counter Technician 1.0 • This position is vacant. 197 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 131 Exhibit 12 (1) Service Levels for the Building Division Characteristic Description Hours of Operation and Schedule • Counter operation is open between 7:30 AM to 4:00 PM (closed between 12:00 PM and 1:00 PM) • Building inspections may be scheduled between the hours of 7:30 AM to 12:00 PM, and from 1:00 PM to 5:00 PM by phone, with customers given a 2-hour window. • To schedule an inspection for the next day requires the inspection to be requested by 3:00 PM the previous day. • Inspectors provide on-call roofing inspections for tear-off and ply-wood nail and will be there within an hour. Service / Turnaround Targets Residential Plan Review Cycle Times: • Over the Counter: small projects (250 sq. ft. or less) within 30 minutes • Express Plan Check: medium sized projects (500 sq. ft. or less) within 5 business days • Standard Plan Check: initial review within 10 working days, second review within 5 working days • Large / Major Projects: apartments and subdivisions (over 10 units) is a minimum of 4 weeks. Commercial Plan Review Cycle Times: • Over the Counter: less than 30 minutes only on Tuesday, Wednesday, and Thursday between 1:30 and 2:30 (these are the hours when Fire Plan Reviewers are available at the counter). • Express Plan Check: medium sized projects (10,000 sq. ft. or less) within 5 working days • Standard Plan Check: initial review within 10 working days, rechecks within 5 working days • Large / Major Projects: minimum 4 weeks. Coverage Area • Building Inspector work schedule is M-F from 6:30 AM to 4:30 PM, and typically work schedule is as follows: - 6:30 to 7:30: plan inspection route, provide 2-hour window to customers, etc. - 7:30 to 11:30: conduct field stops and inspections - 11:30 to 12:30: lunch - 12:30 to 4:00: conduct field stops and inspections - 4:00 to 4:30: enter and / or upload results of field inspections using the palm pilot and Pentamation • Personnel are combination inspectors and generally perform all types of inspections. • Building inspectors are not generally assigned to one of five “regions” but are reassigned, as needed, based upon workload and specific expertise. 198 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 132 Exhibit 12 (2) Characteristic Description Training and Certification • Team conducts staff meetings each Tuesday from 730 – 900 for building code updates, training, etc. • Building Inspector position require an ICBO certification. Codes Administered and Enforced • Latest approved by the State of California 199 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 133 APPENDIX 2 - FOCUS GROUPS As part of the management study of the permitting process, the Matrix Consulting Group conducted three focus group meetings with a representative sample of customers of the process. The purpose of the focus group meetings was to obtain development industry perceptions of Cupertino’s permitting process and to assess overall customer satisfaction. Participants in the three focus groups included developers (30%), major landowners / businesses (30%), contractors (10%), and professionals (e.g., architects) (30%). Almost all of the participants had worked with Planning, Building and Public Works/Engineering; one participant had worked only with Planning. They were selected based upon their knowledge and experience with the City’s permitting process. The focus groups were intended to elicit views and opinions on positive and negative aspects of relevant development service activities and to seek ideas for change that would improve and streamline the process. In considering the results, the reader must bear in mind that unlike technical research and statistics, the views expressed by individuals are subjective and may reflect personal biases. In addition, there will be conflicting perspectives between the developer, residents and businesses surrounding the proposed development, the City’s permit staff. These conflicting perspectives are inevitable in a democratic society, and result in compromise. Not everyone will get everything they want, and sometimes this generates negative perspectives (i.e., developers believe staff are too regulatory; residents feel that staff are too friendly to developers). 200 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 134 Nonetheless, these perspectives are important as the objective material because it is these people, with their feelings and prejudices, who establish the users’ perception of the strengths and weaknesses of the process. It is not important to determine whether or not a particular response is “correct”: rather each response is accepted as a perception, recognizing that perception is reality to the person holding the perception. The reader should also be aware that although the participants were questioned on both positive and negative aspects of the process, the tendency of respondents was to dwell upon those negative aspects that they felt could be improved upon. 1. THE CUPERTINO PERMITTING PROCESS WAS VIEWED BY THE FOCUS GROUP PARTICIPANTS AS ONE OF THE BEST IN SILICON VALLEY Overall, the response of the participants in the focus groups to the Cupertino permitting process was quite positive. Most of the participants were involved in development in many Silicon Valley cities, and they gave Cupertino high grades relative to their experiences in nearby communities. With respect to staff attitude, helpfulness, accessibility and reasonableness, the focus group participants ranked Cupertino among the top three cities, along with Sunnyvale and Santa Clara. They generally felt that Cupertino was substantially better than San Jose, Menlo Park and Palo Alto, and slightly better than Mountain View, Milpitas and Fremont. The “small town atmosphere” was cited as a Cupertino advantage. Staff members were generally available when needed, and they exhibited a friendly and positive attitude. Most participants knew staff members of all departments by name, and they appreciated the fact that, for any given project, they generally dealt with the same planner, plan checker, inspector and engineer throughout the entire process. The 201 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 135 word “excellent” was used several times in describing the attitude and professionalism of staff. The groups were nearly unanimous, however, in identifying two major problems with the Cupertino permitting process: (1) lack of an effective automated on-line permitting information system, and (2) the City’s politically-charged atmosphere relative to development and growth. Participants felt that Cupertino lagged far behind adjacent jurisdictions in providing an efficient, reliable and user-friendly automated/on-line system. They cited hand-written applications, difficulties in checking the status of an application, and delays in receiving staff comments and corrections as problems that could be solved by such a system. While the politically charged atmosphere was not part and parcel of the permitting system, it is a major determinant of the overall perception of Cupertino’s attitude toward development and the development industry. Participants recognized the sharp division of opinion within the community-at-large with regard to development and growth, which division was reflected within the City Council and between the Council and the Planning Commission. The result of this atmosphere for developers was less predictability, greater risk, greater frustration and unanticipated time delays. 2. PLANNING STAFF WAS VIEWED AS FRIENDLY AND HELPFUL, BUT CAUTIOUS AND SUBJECTIVE The Planning staff was complimented on its professionalism, its friendliness, and its sincere effort to be helpful. Focus group participants found planners to be generally accessible, particularly at the permit counter. Some focus group participants cited the slow response to telephone calls and e-mails as a negative factor. 202 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 136 Most participants felt that planners tried to anticipate the reactions of the Planning Commission and City Council to a proposed project, and advised developers accordingly. Some felt that this advice was merely a cover to “push their own agenda.” One participant noted that the “ebb and flow of public opinion” makes it nearly impossible to predict Planning Commission and City Council responses. Developers reported that they were routinely advised by planners to meet early in the process with those in the public most likely affected by the proposed project. They found this advice to be sound and the meetings with the public to be useful. Most participants saw plan review turn-around time and consistency as acceptable. Some had a sense that the plan review planner had to go back and get direction from “someone else,” creating unnecessary delay and uncertainty. The overall turn-around time for processing a development application was seen as long, but not unnecessarily so given the public notice and other legal requirements built into the system. There was no sense that turn-around time in Cupertino suffered relative to other communities. On the negative side, some focus group participants felt that Cupertino planners are too rigid, exercising less of a “how can we make this work” attitude than staff of other City departments. This caution and lack of flexibility was attributed to fear that they might “get nailed politically” when they appeared before the Commission or Council if they strayed too far from a rigid interpretation of the code. On the other hand, some participants found Cupertino planners to be too subjective. This was particularly true with regard to architectural and landscape design review. The feeling was that recommendations and conditions of approval were often 203 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 137 based upon the individual planner’s taste and prejudices, rather than upon sound principles of design. Required plan changes at times appear arbitrary, based upon opinion rather than upon code. Some developers stated that they are often “surprised” when they receive a copy of the staff report, because conditions of approval bear little resemblance to their prior discussions with staff. “Where is the nexus between the required plan change and the alleged negative impact?” asked one developer. Recommended Improvements: The focus group participants offered numerous recommended improvements for Planning, more than for any other department. They are listed below in no particular order of priority. • The Planning Commission should hold public “study sessions” on potentially controversial projects well before the formal public hearing. This would expose community concerns early in the process and allow developers to anticipate the Planning Commission’s major issues with the project. • In their communication with developers, planners should always emphasize facts over opinions. For instance, instead of saying “There’s no way City Council will ever approve that!”, they should report the specific actions of Council on similar projects over the past year. • Planners should be careful to link a recommended plan change or condition of approval to a specific code section or Council policy, or should explain the nexus to the negative impact being addressed. • Planning managers should nurture a department culture which consistently produces the best professional recommendations as opposed to the recommendations that will most likely satisfy the Planning Commission or City Council, and be prepared to support and defend those recommendations in the public forum. • Applicants should be given the opportunity to review and comment on a draft staff report on their project before it is released to the public. This would eliminate factual errors in the report (and discussion of them at the public hearing) and allow for negotiation on conditions of approval. 204 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 138 3. BUILDING STAFF IS VIEWED AS KNOWLEDGEABLE, REASONABLE, AND EXHIBITING A PROBLEM-SOLVING ATTITUDE Focus group participants expressed a very positive perception of the Building function in Cupertino --- “one of the best around.” Building staff were seen as friendly, always accommodating, accessible, and willing to “sort through the gray areas” to come up with a reasonable solution. Participant’s felt that the consistency in building plan checking has improved since plan checking was moved in-house. They appreciated the fact that the same plan checker is in charge of a particular project throughout the entire process. Plan corrections were considered to be clear and specific. Plan check turn-around time was seen to be good, although some felt that comments are delayed by a slower response time by fire prevention. Complex issues are apparently routinely referred to the Building Official for resolution. Participants seemed to respect the Building Official’s rulings, but they felt that he is often too busy to render a prompt decision. There was strong consensus that the Cupertino Building staff places unusually strong emphasis on Title 24 accessibility requirements, and that the interpretation of these requirements was noticeably less flexible than interpretation of the overall building code. Inspectors were charged with enforcing Title 24 requirements, and they seemed to be overly cautious and exacting in requiring corrections. Overall, participants felt that the Building staff was too fearful of being sued over Title 24 and were therefore unwilling to take reasonable risk in interpreting the requirements. Building inspectors are generally seen to be helpful, reasonable and consistent. They almost always show up on the job when they say they will. A developer noted one 205 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 139 exception; the developer lost a whole day’s work when an inspection request was apparently not properly entered into the system. It was reported that inspectors occasionally give oral direction rather than writing corrections on the inspection card. Recommended Improvements: • The Building Official should explain in detail his rulings on new and complex issues to the Building plan checkers, and delegate to them responsibility for ruling on similar issues when they arise. • Applicants should be permitted to substitute pages in approved plans when minor modifications are made, rather than be required to submit a new full set of plans. • Inspection requests should be confirmed with the contractor by e-mail to insure that the requests are properly and accurately logged into the system. 4. PUBLIC WORKS/ENGINEERING STAFF WAS VIEWED AS PROFESSIONAL AND HELPFUL Focus group participants had limited, but largely positive comments with regard to Public Works/Engineering. They felt that the staff was knowledgeable, helpful, accessible and easy to work with. Turn-around time was good, although final resolution of some issues was often delayed by the slow response time of public utilities. Engineering codes and guidelines are consistently interpreted. One participant expressed concern that traffic engineering requirements appeared to lack sufficient nexus to the anticipated project impacts. This was likened to alleged similar subjectivity and personal bias in the recommendations of the Planning staff. 206 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 140 5. FIRE PREVENTION IS VIEWED AS FRIENDLY AND HELPFUL, BUT NOT AS FLEXIBLE AND READILY ACCESSIBLE AS CUPERTINO IN-HOUSE STAFF Cupertino contracts with Santa Clara County for provision of Fire Prevention services. Because the workload does not require a full-time plan checker, Fire Prevention staff is scheduled for limited hours at the public counter. Focus group participants felt that the limited availability of Fire Prevention staff made the Cupertino development permitting process less smooth and less expeditious than it might otherwise be. They felt that this often made it difficult for Cupertino staff to set up interdepartmental meetings to review and comment on development applications, adding delay to the process. One developer indicated that he somewhat overcame the accessibility problem by meeting with Fire Prevention staff in their Los Gatos office. None saw this as an attitude problem on the part of Fire Prevention, but merely as a scheduling problem. Fire Prevention plan check was viewed as being very consistent, and inspection was viewed to be consistent with plan check. The groups noted, however, “huge swings” in the priorities of Fire Prevention with changes in the Fire Marshall. The current Fire Marshall is a firefighter, as opposed to a codes person, and relies heavily upon his inspection staff to discover violations requiring correction. As a result, field inspection often requires changes that were not anticipated through plan check. Despite these concerns, the participants seemed quite accepting of the present Fire Prevention system, and made no specific recommendations for improvement. 207 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 141 6. THE ROLE OF ECONOMIC DEVELOPMENT IN THE DEVELOPMENT PERMITTING PROCESS IS NOT CLEARLY UNDERSTOOD Focus group participants had little experience in relating to Economic Development staff. Those that did had positive comments, noting ready availability, good input, and “very good at connecting the dots in the process.” One developer was grateful for Economic Development’s assistance in community outreach. The majority of the participants, however, did not realize that Economic Development was available to assist them navigate through the development permitting process. 7. THE CREATION OF AN EFFICIENT AND USER-FRIENDLY ON-LINE PERMIT PROCESSING AND TRACKING SYSTEM IS VIEWED AS THE SINGLE MOST NEEDED IMPROVEMENT The focus group participants had numerous negative comments about the public counter, noting that it is “dungeon-like,” “uninviting,” and “with the Wizard behind the wall!” Nevertheless, none thought that modernization of the public counter should be high priority for the expenditure of limited funds. Rather, they unanimously agreed that any available resources should be directed toward the acquisition of a user-friendly on- line permit information system. When asked if they would utilize an on-line system, focus group participants responded with a resounding “absolutely!” They felt that such a system should, at a minimum, offer its public users the following on-line operations: • Permit application; • Inspection request scheduling; • Status of application within the system; and • Comments of various departments on the application as they are completed by each department (i.e., not withheld until all departments had completed their review). 208 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 142 The focus group participants felt that Cupertino lags far behind other Silicon Valley communities in not having an automated, on-line permit information system. In their opinion, this is the single most important improvement that the City could make to its development permitting process. 209 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 143 APPENDIX 3 - COMPARATIVE SURVEY This chapter presents the results of the comparative survey conducted as part of the management study of the Community Development Department. Seven cities were selected for this comparative survey. The cities are presented below. • Novato; • Dublin; • Mountain View; • Petaluma; • Palo Alto; • Pleasanton; and • San Ramon. Of the seven cities, three did not respond including Petaluma, Palo Alto, and Pleasanton. 1. BACKGROUND INFORMATION The table, below, presents the population and estimated geographical size (square miles) of the city for each of the four responding cities and Cupertino. City 2008 Population Estimated Size of the City Dublin 46,934 12.6 Mountain View 73,932 12.2 Novato 52,737 27.7 San Ramon 59,002 11.6 Cupertino 55,551 10.9 Important points to note concerning the data presented in the table are presented below. • The population of the cities ranged form a low of 46,934 for Dublin to a high of 73,932 for Mountain View. 210 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 144 • The geographical size of the cities ranged from a low of 10.9 square miles for Cupertino to a high of 27.7 square miles for Novato. 2. PLANNING DIVISIONS The first section of the survey asked questions regarding the planning department / division. The following sections present a summary of the information collected. (1) Staffing Levels The cities provided data concerning the number of staff authorized for advanced and current planning. The table, below, presents a summary of the responses among the comparative cities. City Staff Allocated to Advanced Planning Staff Allocated to Current Planning Dublin 1.0 6.0 Mountain View 2.0 8.0 Novato 1.5 8.5 San Ramon 1.5 2.5 Cupertino 1.0 4.5 Important points to note concerning the data contained in the table are presented below. • The number of staff allocated to advanced planning ranged from a low of 1 in Dublin to a high of 2 in Mountain View. • The number of staff allocated to current planning ranged from a low of 2.5 in San Ramon to a high of 8.5 in Novato. Overall, the cities were mixed in terms of dedicating staff to Advanced Planning on a full-time basis. Novato and Mountain View indicated that these cities dedicated staff to Advanced Planning. Dublin, San Ramon, and Cupertino did not dedicate staff to Advanced Planning. 211 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 145 (3) Interdepartmental Development Review Committee The cities were asked if an interdepartmental committee is utilized to review and critique planning permit applications after submittal, the departments or divisions that participate, and how the Committee meets. The table, below, presents a summary of the responses from the cities. City Interdepartmental Committee Divisions/Departments Meetings Dublin Yes Engineering, Planning, Building, Fire, Police, Water District As needed Mountain View Yes Engineering, Planning, Building, Fire, Urban Forestry Once a month Novato Yes Planning, Building, Engineering As Needed San Ramon Yes Engineering, Transportation, Fire, Police, Building, Planning As Needed Cupertino Yes Planning, Building, Engineering All of the cities use an interdepartmental development review committee. The most commonly included divisions / departments were Engineering, Planning, Fire, and Building. (4) Architectural Review Board Information was requested regarding the role and responsibilities of the Architectural Review Board including whether the cities had an Architectural Review Board, whether the Board considers an application before or after the Planning Commission, and the types of applications requiring the approval of the Board. The following table presents a summary of information gathered. 212 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 146 City Architectural Review Board Before or After the Planning Considers Same Application Types of Applications (Approved or Recommended) Dublin No N / A N / A Mountain View Yes Before Single family structures on lots less than 5,000 square feet or in subdivisions with 5 or more lots, new single family and 2 family units in the R-3 zone, 2 single family dwellings on a single lot in an R 2 zone, buildings and site improvements in multi-family, commercial, and industrial districts, minor setback and FAR exceptions, etc. Novato Yes Before All commercial, office, industrial and most residential construction. San Ramon Yes Before All new construction, including signs, but excluding TI’s Cupertino Yes; a sub- committee of the Planning Commission Before 2-story residential development with a FAR over 35% located in a single-family residential zoning district, single-family home in a PD zoning district, minor modifications to buildings, landscaping, signs, and lighting for new development, redevelopment, or modification in such zones where such review is required. Exceptions to the R1 Ordinance, minor architectural and site changes, minor development proposals located in a Planned Development zone, minor modifications and exceptions to buildings, landscaping, signs, and lighting for new development, redevelopment, or modification in such zones where such review is required. 213 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 147 (5) Formal Design Guidelines The cities were asked if they have formal written design guidelines and the year the guidelines were developed. The table, below, presents a summary of the responses among the comparative cities. City Formal Design Guidelines Dublin Yes Mountain View Yes Novato Yes San Ramon Yes Cupertino Yes All of the cities have developed formal design guidelines. Mountain View has developed design guidelines for small lot development, row houses, and town houses, (6) Role of A Zoning Administrator The cities were asked if a zoning administrator is utilized and the type of applications approved by a zoning administrator. The table, below, presents a summary of the responses of the cities. City Zoning Administrator? Applications Dublin Yes Conditional use permits and variances Mountain View Yes Conditional use permit, density bonus, sign permits, sign programs, variances, temporary use permits Novato Yes Temporary use permits, use permits and variances San Ramon Yes Use permits, variances, home occupation permits, parcel maps Cupertino No N / A All of the cities, with the exception of Cupertino, utilize a zoning administrator to approve / deny a variety of planning permits including conditional use permits, variances, temporary use permits, etc. 214 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 148 (7) Planning Applications Approved at the Staff Level The cities included in the comparative survey were asked to provide information in regards to the types of application that may be approved at the staff level. The table, below, presents a summary of the responses of the cities. City Applications Dublin No response Mountain View No response Novato Minor design review San Ramon Minor design review, minor exceptions Cupertino Minor design review, exceptions All of the cities empower staff to approve minor planning permit applications at staff level. (8) Use of the Case Manager Concept The cities were asked if they use a case manager concept in processing planning permit applications, and his / her responsibility in managing the processing of these applications. The table, below, presents a summary of the responses of the cities. City Case Manager Concept Processing (from receipt through Architectural Review Board to Planning Commission and City Council) Dublin Yes Yes Mountain View Yes N/A Novato No N/A San Ramon Yes- Yes Cupertino Yes Yes All of the cities, including Cupertino, use the case manager concept for managing the processing of planning permits. (9) Standard Conditions of Approval and Correction Lists for Planning Permits The cities were asked if all of the divisions / departments that are involved in the processing of planning permits had developed written conditions of approval, written 215 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 149 correction lists, and whether these conditions of approval and correction lists had been published to the City’s Internet. The table, below, presents a summary of the responses of the cities. City Written Conditions of Approval Written Correction Checklists Internet Availability Dublin Yes No No Mountain View Yes No No Novato Yes Yes No San Ramon Yes Yes No Cupertino Yes Yes No All of the cities have written conditions of approval, only Novato and San Ramon have developed written correction lists, and none of the cities have published these conditions of approval or correction lists to the Planning Division’s web site. (10) Cycle Time Objectives For the Processing of Planning Permits. The cities were asked if they have developed cycle time objectives for the processing of planning permits, the cycle time objectives and the degree of success in meeting these objectives. The table, below, presents a summary of the responses of the cities. City Processing Targets How Successful in Meeting Targets Dublin No N/A Mountain View No N/A Novato No N/A San Ramon Yes 90% Cupertino Yes 90% Only two cities reported having processing targets: San Ramon and Cupertino. (11) One-Stop Permit Center The cities were requested to provide information regarding their one-stop center for development permits. The cities were also asked what functions were co-located at 216 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 150 the one-stop center and the hours the center was open for business. The table, below, presents a summary of the responses of the cities. City One-Stop Center Functions Co-located Hours of Operations Dublin No N / A N / A Mountain View Yes Planning and Building 8 am to 5 pm; closed for lunch Novato Yes Planning, Building, and Engineering 9 am to 12 noon San Ramon Yes Planning, Building, Engineering, and Fire 8 am to 5 pm, 3 days a week Cupertino Yes Planning, Building, and Engineering 7:30 am to 12 noon; 1 pm to 5 pm The following points present a summary of information in the table above. • All of the cities report having one-stop centers except Dublin. • Those cities with one-stop centers co-located Planning and Building in each instance, and Planning, Building, and Engineering in the instance of Novato, San Ramon, and Cupertino. • The hours of operations of the one-stop permit centers were dissimilar amongst all cities. 3. BUILDING AND SAFETY DIVISION The cities were asked to provide information regarding their building and safety division. The following sections provide a summary of the responses. (1) Valuation and Number of Permits The cities were asked to provide the total building permit valuation and the total number of building permits. The table, below, presents a summary of the responses. City Total Building Permit Valuation Dublin $306,000,000 Mountain View No Response Novato $78,000,000 San Ramon $65,300,000 Cupertino $222,500,000 Overall, the total building permit valuation ranged from a low of $65,000,000 in San Ramon to a high of $306,000,000 in Dublin. 217 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 151 (2) Staffing Levels The cities were asked to provide the number of plan checking staff authorized for building permit plan checking. The table, below, presents a summary of the responses. City Total Staffing Dublin 0.0; outsourced Mountain View Novato 2.5 San Ramon 2.0 Cupertino 2.5 The total number of plan checking staff authorized for building permit plan checking ranged from a low of 0 in Dublin (all plan checking that cannot be approved over-the-counter is outsourced) to 2.5 staff in Novato. (3) Utilization of Plan Check Consultants The cities were asked to indicate the proportion of their building permit plans that were plan checked by consulting plan checkers. The table, below, presents a summary of the responses among the comparative cities. City % Of Permits Plans Checked by Consultants Dublin 50% Mountain View 90% Novato 30% to 40% San Ramon <5% Cupertino 0% Dublin had the highest proportion of permits that were outsourced: 50%. Mountain View, San Ramon, and Cupertino all had little to none of their building permit plan checking outsourced. 218 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 152 (4) Plan Checking of Simple Building Permits Plan The cities were asked to describe alternatives for plan checking building permit plans including the proportion of their building permit plans checked over the counter that require plan checking (excluding MEP permits), whether partial permits were issued, and requirements for plan checking of retrofit window replacements. The table, below, presents a summary of the responses among the comparative cities. City Over the Counter Partial Permits Retrofit Window Replacement Dublin 10% No / rarely Yes Mountain View 10% Yes No Novato 20% Yes Yes San Ramon >50% Yes Yes Cupertino 44% Yes Yes Important points to recognize concerning the data contained in the table are presented in the paragraphs below. • Most of the cities reported that 10% to 25% of their building permit plans were plan checked over the counter. San Ramon plan checked over 50% of its building permit plans over-the-counter.. • Dublin was the only city that did not issue partial permits. • Only Mountain View did not require building permits for retrofit window replacements in which the framing was not altered. (5) Plan Check Cycle Time Targets The cities were asked if they had developed cycle time targets for the building permit plan checking, the cycle time in terms of days or weeks, and the degree of success in meeting those targets. City Processing Targets Targets Dublin Yes 98% Mountain View Yes 95% Novato Yes 90% San Ramon Yes 95% Cupertino Yes 98% 219 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 153 As the table indicates, all of the cities have adopted cycle time objectives for building permit plan checking. All of the cities are highly successful in meeting these objectives. For Cupertino, it is not possible to determine the success rate in meeting these cycle time objectives given the limitations in the reporting module of the automated permit information system. (6) Standard Conditions of Approval and Correction Lists for Building Permits The cities were asked if all of the divisions / departments that are involved in the processing of building permits had developed written conditions of approval, written correction lists, and whether these conditions of approval and correction lists had been published to the City’s Internet. The table, below, presents a summary of the responses of the cities. City Written Conditions of Approval Written Correction Checklists Internet Availability Dublin Yes No No Mountain View Yes No No Novato Partial Yes No San Ramon Yes No No Cupertino Yes Yes No All of the cities have written conditions of approval with the exception of Novato, only Novato and Cupertino have developed a written correction list, and none of the cities have published these conditions of approval or correction lists to the Building Division’s web site. (7) Building Permit Plans Approvals The cities were asked to identify the type of building permit plans that were plan checked over the counter. The following table presents a summary of the information gathered. 220 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 154 City Over-the-Counter Dublin Single trade permits, commercial signs w/o calcs, residential bathroom repair, residential fireplace, residential repair / in-kind, residential spa, residential skylights Mountain View Single trade and minor building permits including kitchen / bath remodels without structural modifications Novato Single trade permits and kitchen and bath remodels. San Ramon Residential improvements and minor tenant improvements Cupertino Residential: Over the Counter: small projects (250 sq. ft. or less) within 30 minutes Commercial: Over the Counter: less than 30 minutes only on Tuesday, Wednesday, and Thursday between 1:30 and 2:30 (these are the hours when Fire Plan Reviewers are available at the counter). Overall, the types of building permit plans that were plan checked over-the-counter was not extensive besides single trade permits. (8) Combination Building Inspectors The cities were asked about their utilization of combination inspectors. The following table presents a summary of the information gathered. City Combination Inspectors Dublin Yes Mountain View Yes Novato Yes San Ramon Yes Cupertino Yes All of the cities use combination inspectors as a normal practice. (9) Percentage Of Building Inspection Requests Responded To The Next Day The cities also provided responses regarding the percentage of inspection requests that were inspected the next working day. City % Of Inspection Requests Inspected the Next Working Day Dublin 100% Mountain View 100% Novato 100% San Ramon 100% Cupertino 100% 221 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 155 The majority of the cities reported responding to inspection requests within the next working day. (10) Use of A Case Manager For Building Permits The cities were asked if a case manager was utilized for processing of building permits. The following table presents a summary of the information gathered. City Case Manager Dublin No Mountain View No Novato No San Ramon No Cupertino Yes Only Cupertino uses a “case manager” concept in its Building Division. 222 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 156 APPENDIX 4 – SUMMARY OF RECOMMENDATIONS Recommendation # Recommendation Page Number* Chapter 2 - Analysis of Permit Staffing 1 Staffing in the Planning Division is sufficient to handle existing current planning workloads. 8 2 Maintain current building inspection staffing levels and, when workload permits, utilize Building Inspectors for other duties such as plan checking of residential interior remodels, over-the-counter plan checking, etc. 11 3 Continue with the staffing levels that are allocated to building permit plan checking in the Building Division. 14 4 Continue the adequate level of staffing dedicated to the Building Division’s permit counter. 15 5 The Engineering Division should maintain the staffing authorized for the permit plan check process. 16 Chapter 3 - Analysis of the Permit Process 6 The City should streamline the process for minor planning permits by increasing the number of permitted uses that require quasi- ministerial review and are subject to codified performance standards. 17 7 The Planning Division should develop codified performance standards and requirements for these minor permits for consideration and approval of the City Council. 17 8 The approval of these codified performance standards and requirements by the City Council should be sequenced to the conversion of these minor planning permits to permitted uses. 17 9 Section 19.124.060 of the zoning ordinance should be modified. The Planning Commission should be the final decision-making authority for conditional use permits and variances with the City Council having the right of appeal. 21 10 The staff of the Planning Division should not write staff reports for minor permits. 22 11 The Planning Division should not mail the plan sets for minor permits to those adjacent property owners that are noticed. 22 12 The number of appeals that are possible for planning permits should be limited to one appeal. 23 13 Eliminate the requirement for a filing of covenants subsequent to approval of a planning application. 23 14 The timelines for processing of planning permits by the City should be reviewed and revised to provide differential time periods for review based upon project size and complexity and to differentiate between initial and re-submittal reviews. Plan review timeframes for re-submittals should be established at no more than one-half the timeframe required for the initial review. 24 15 Adopted cycle time objectives for planning permits should be published to the Department website and prominently displayed in the Department’s application materials. 24 223 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 157 Recommendation # Recommendation Page Number* 16 The Planning Division should separate the tentative application schedule from the 34-page planning application form, and publish it separately to its first web page for the Planning Division in the Planning “sidebar.” 26 17 Develop and adopt planning permit cycle time agreements with applicants for high priority projects 27 18 Pre-application conferences should not be required for routine planning permit applications approved by the Community Development Director. 28 19 The Planning Division should develop and adopt a written policy on planning application completeness and the basis for rejecting incomplete applications. 29 20 Training should be provided to the Planning Division staff assigned to the Permit Center regarding the basis for rejecting planning applications as incomplete. 29 21 Planning application guides should be developed for each specific type of planning permit to include all of the City’s requirements for an applicant to achieve a complete submittal. 29 22 These planning permit application guides should be approximately 4 to 6 pages in length. 29 23 The case manager in the Planning Division should meet with the applicant to discuss issues that have been found during the initial 30-day completeness review of the application. 31 24 The Planning Division should provide training to consulting planners, architects, engineers and developers regarding its planning permit submittal requirements. 31 25 The Planning Division should provide training after each submittal when consulting planners, architects, and engineers are involved in the development of the application and when they encountered particular problems meeting submittal requirements. 31 26 Develop and adopt a written City policy and procedure for the maintenance of case status information in the automated permit information system by managers, supervisors, and staff assigned to processing planning, building and engineering permit applications 33 27 Develop and adopt a written City policy and procedure that assigns responsibility to the division-heads for assuring ongoing maintenance of case status information in the automated permit information system and that requires the division-heads to audit the caseload assigned to staff to determine whether the case is active, is inactive as a result of applicant inaction and should be terminated, or has been closed and the case should be updated in the automated permit information system. 33 28 The City should hold division-heads in Planning, Building and Engineering accountable for tracking and monitoring the success or failure of their staff in meeting cycle time objectives through regular management information reports generated on a monthly basis by the automated permit information system. 34 29 The ability of the staff in the Planning, Building and Engineering divisions to consistently meet the cycle time objectives should be integrated into their performance evaluation. 34 30 The division-heads in Planning, Building and Engineering should formally plan and schedule the permit applications processed by their staff using the automated permit information system. 34 224 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 158 Recommendation # Recommendation Page Number* 31 The division-heads in Planning, Building and Engineering should be held accountable for the ongoing maintenance of this open case inventory and the completion of the processing of permits by their staff in accordance with the cycle time objectives 34 32 The City should utilize the automated permit information system to generate ongoing monthly management information reports to track performance against cycle time objectives and monitor the case workload and performance for staff assigned to the processing of these permits. 36 33 The Planning Division should establish guidelines for reviewing departments to respond to all submissions by applicants and establish clear timelines at each step. This would include the 30- day initial completeness review and subsequent reviews. 39 34 A formal written policy should be established for response times by Planning Division staff to inquiries from applicants that are received via email and/or voice mail. Planning Division staff should be held accountable for meeting these guidelines. 39 35 The case planner in the Planning Division should serve as the project manager and be responsible for the communication among the multi-disciplinary team and the resolution of conflicting conditions of approval or competing code requirements. 41 36 The case manager should ensure that all conditions of approval are provided to the applicant in writing and that each condition references the specific code or regulation that imposes / regulates the issues. Additionally, a copy of the staff report should be provided to the applicant once completed. 41 37 The authority of the case manager should be clearly spelled out in a written policy developed by the Planning Division and approved by the Community Development Director. 42 38 The conditions of approval utilized by all of the divisions and departments in the review of planning, building, and engineering permits should be documented and posted to the City’s web site. 43 39 The Planning Division should take lead responsibility in facilitating the development of these written conditions of approval by all of the divisions and departments. 43 40 The Planning Division should develop and utilize checklists for the review and processing of discretionary and administrative applications by its own staff. 45 41 The Planning Division should publish its checklists to its web site for use by those individuals submitting plans. 45 42 The Planning Division should develop design guidelines for multi- family, commercial, and signs. 46 43 The Planning, Building, and Engineering divisions should document interpretations of the zoning ordinance, subdivision ordinance, and building codes and make these available to the public on their web sites. 48 44 Revise the building permit plan check cycle time goals for the length of time required to process building permit plans to serve as a performance guideline for all organizational units. 49 45 The Building Division should utilize the automated permit information system to assure the status of each plan is readily visible. 52 225 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 159 Recommendation # Recommendation Page Number* 46 The Chief Building Official should be given the written authority and responsibility to interface with other organizational units to resolve delays in processing building permit plans in a formal written policy published by the Community Development Director. 53 47 The Building Division should issue not less than 20% of its building permits over the Internet. 54 48 The Building Division should increase the number of building permits issued over-the-counter to 60% of all building permits issued. 55 49 The Counter Technician position should be reclassified to Building Technician. 55 50 The Building Technician position, when filled, should be utilized to provide over-the-counter plan checking of minor and miscellaneous building permits. 55 51 The Building Technician classification should be revised to require certification as an ICC-certified Permit Technician within 12 months of hire. 55 52 The Building Division should provide support, funding, and training to the Building Technician to obtain as an ICC-certified Permit Technician. 55 53 Develop standard building permit plans for use by the public in minor residential improvements. 58 54 Develop a “Home Improvement Center” web page on the Town’s web site to assist the homeowner navigate through the building permit plan check and inspection process. 58 55 The Building Division should improve the building permit plan check performance to meet its stated plan check cycle time objectives. 59 56 The Building Division should reduce the number of divisions and departments that are routed building permit plans. 63 57 The City should assign responsibility to the Building Division for zoning clearance of simple building permits. 63 58 The Building Division should adopt a policy to accommodate inspection requests up to 7:00 AM for same day inspection request service. 64 59 The Engineering Division should develop application guides for those permits in which the Division is the lead. 67 60 The Engineering Division should publish its cycle time objectives to the Division’s web site and identify these cycle time objectives in the Division’s application guides. 68 61 The Engineering Division should develop application guides for those permits in which the Division is the lead for plan checking. 70 Chapter 4 - Analysis of the Automated Permit Information System 62 All of the departments and divisions should utilize the automated permit information system for all aspects of the planning, building permit, and engineering permit process. 71 63 Modules, applications and reports should be developed within the automated permit information system to support the work of these departments and divisions. 71 64 Training should be provided to staff as appropriate in the use of the automated permit information system. 71 226 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 160 Recommendation # Recommendation Page Number* 65 The City should utilize the automated permit information system to provide the capacity for the public and for applicants to access data through the Internet or for the public and applicants to subscribe to information. 72 66 The automated permit information system should include the capacity to interface with an Interactive Voice Response system. 73 67 The City should acquire an Interactive Voice Response (IVR) System. 73 68 The automated permit information system should have wireless capabilities. 74 69 The automated permit information system should have an automated workflow capacity. 75 70 The automated permit information system should have the capacity for online project management and collaboration tools. 76 71 The automated permit information system should have the capacity to interface with ESRI GIS. 76 72 All documents created by staff regarding permits, plan checks, and inspections should be archived in the automated permit information system. 77 73 Architectural plans should be archived in the automated permit information system once the permit is finalized 77 74 All of the divisions and departments that utilize the automated permit information system should enter and store their annotations, comments, and conditions in the system. 78 75 The City should provide Pentamation with the opportunity to identify the total installed cost for the development and deployment of a fully functional automated permit information system. 79 76 The City should acquire a fully developed commercial-off-the-shelf automated permit information system. 79 Chapter 5 - Analysis of the Permit Center 77 The City should remodel the permit center. 80 Chapter 6 - Analysis of Permit Administration 78 A greater focus should be placed by the Planning Division on ensuring availability of a professional staff member at the front counter during all hours of operation including during the lunch hour. 81 79 The Planning Division should conduct a pilot program of providing scheduled hours for “walk in” reviews of minor corrections to expedite the approval process. 81 80 The City should develop a comprehensive “How-to Manual” or “Development Guide” for use by the public and publish this document to their web site. 83 81 The Community Development Department should institute a periodic (two to four times per year) newsletter that is distributed to the development community containing code or interpretation updates, training information, and general discussion of relevant topics. 84 227 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 161 Recommendation # Recommendation Page Number* 82 The Community Development Department should conduct at least an annual meeting to engage the development community in a discussion of general issues regarding permit matters in Cupertino, solicit input regarding service levels, and seek input regarding potential changes to the enabling legislation (general plan, subdivision ordinance, zoning ordinance, and building codes). 84 83 The Community Development Department should conduct an annual and ongoing customer satisfaction survey 84 84 The City should require that any new ordinance and code requirements not previously imposed will not be enforced on current construction and future jobs until the industry is informed and a 60-day waiting period is put in place. 85 85 The City should communicate any new plan review and inspection requirements to developers, contractors, architects, engineers, and the construction community through issuance of information bulletins and a newsletter. Distribute information bulletins describing the new requirements, and show effective date of implementation. 85 86 All full-time planners should be encouraged to attain the AICP certification from the American Planning Association. The City of Cupertino should consider requiring achievement of this certification to progress through the Planner job family. 86 87 The Planning, Building and Engineering division-heads should develop annual training programs for each employee in the division. 86 88 The Planning, Building and Engineering divisions should provide additional training to increase their ability to make decisions regarding subdivision ordinance, zoning ordinance, and building codes to increase consistency of interpretation among staff. 86 89 Provide not less that 40-hours of job-related training annually for each employee of the Planning, Building and Engineering divisions. 86 90 Establish and publish quarterly training agendas. Assign all employees as presenters, and have them prepare outlines for their presentation. Bring in outside industry training where appropriate. 86 91 The Building Division should implement quarterly training sessions with Fire Prevention Inspectors, Building Inspectors, the Plan Check Engineer, the Counter Technician, and all employees involved in the development process (Planning, Engineering, Fire Prevention, etc.) to review operations, eliminate overlap or duplication, and improve coordination for efficient delivery of services. Allow each discipline to present matters of concern for decision and resolution. 86 92 The Building Division should involve the District Fire Inspectors, at least monthly, in the building code training to achieve consistency. 86 93 The City of Cupertino should ensure that all planning, building, and engineering permit fees are reviewed and evaluated when the next review of development fee schedules is conducted to ensure fees are appropriately calculated and assessed. 89 94 The City should charge a technology fee as a surcharge to its building permits. 89 228 CITY OF CUPERTINO, CALIFORNIA Management Study of the Permit Process Matrix Consulting Group Page 162 Recommendation # Recommendation Page Number* 95 A comprehensive desk manual should be developed for all major work functions and services provided by the Planning, Building and Engineering divisions. A copy of the manual should be available to each employee, and updated at a minimum on an annual basis. The manual should be published to the Intranet. 90 96 The Planning Division should expand the annual work program. 92 97 The Planning Division should complete a project work plan prior to commencement of an advanced planning project. 92 98 The Planning Division should publish a quarterly report regarding the status of advanced planning projects. 94 99 At the completion of an advanced planning project, a final report should be published good and bad aspects of the completed project, transmitting that information to the staff of the Planning Division, and providing a convenient summary of the project. 95 100 The vacant Senior Planner position should be filled and dedicated to advanced planning. 96 101 The City should charge a zoning ordinance update fee to enable the fiscal sustainability of advanced planning as a surcharge to its building permits. 96 102 The Senior Planners should be utilized as lead professionals within the Planning Division. This role should be clarified in a written division policy and procedure. 96 103 The Mayor and City Manager should develop alternatives for the consideration of the City Council to avoid conducting public hearings for City Council meetings in the early morning. 98 104 The Engineering Division should update the stormwater master plan in the next two years using a consulting engineering firm. 98 Chapter 7 - Analysis of the Planning Commission and Design Review Committee 105 The Planning Commission should conduct annual retreats with staff 100 106 The City Council and the Planning Commission should conduct joint meetings at least annually. 102 107 The City Council and Planning Commission should conduct a joint visioning exercise early in the process of any updating of the Zoning Ordinance. 102 108 Planning Commission members should be provided with ongoing training of no less than four hours a year. 102 109 The members of the Planning Commission should continue to be provided with membership in the American Planning Association. 103 110 The Planning Commission should prepare an annual report summarizing their activities and submit it to the City Council. 103 111 Amend the Planning Commission bylaws to clarify the responsibility of the Planning Commission chairperson to manage Commission meetings. 105 112 Amend the bylaws of the Planning Commission to reduce the amount of time available to public speakers to the same amount as that provided at City Council meetings. 105 * The page number reference indicates the page where the discussion regarding the recommendation commences, not necessarily the actual page location of the recommendation itself. 229 SUMMARY TABLE OF RECOMMENDATIONS WITH STAFF COMMENTS No. Matrix Recomm. # Matrix Recommendation Staff Comments Pg. No.* Corrections 1 1 Staffing in the Planning Division is sufficient to handle existing current planning workloads. The workload table on page 10 does not include time required to serve the counter functions and other miscellaneous tasks which amount to an additional 1.0FTE 8 2 14 The timelines for processing of planning permits by the City should be reviewed and revised to provide differential time periods for review based upon project size and complexity and to differentiate between initial and re- submittal reviews. Plan review timeframes for re- submittals should be established at no more than one-half the timeframe required for the initial review. Cycle times noted on page 25 include multiple submittals. A more accurate measure of cycle time would be to count the time between when an application is deemed complete and the approval date for the project. It should be noted that this distinction is harder to capture since the City’s data management system is not currently able to provide this information – a situation that can be remedied with improved permitting software. 24 3 55 The Building Division should improve the building perm it plan check performance to meet its stated plan check cycle time objectives (Table on Pg 60) The cycle times noted on page 60 are not accurate because they also include multiple resubmittals. The correct way to note cycle times would be to get the difference between the last submittal and the permit date. The current permitting software does not capture this distinction. As noted on page 152, even with these numbers, the Building Division meets its cycle time objectives 98% of the time. 59 Currently in Place 1 2 Maintain current building inspection staffing levels and, when workload permits, utilize Building Inspectors for other duties such as plan checking of residential interior remodels, over-the-counter plan checking, etc. 11 2 3 Continue with the staffing levels that are allocated to building permit plan checking in the Building Division. 14 3 4 Continue the adequate level of staffing dedicated to the Building Division’s permit counter. 15 4 5 The Engineering Division should maintain the staffing authorized for the permit plan check process. 16 5 15 Adopted cycle time objectives for planning permits should be published to the Department website and prominently displayed in the Department’s application materials. Already posted with application forms 24 6 19 The Planning Division should develop and adopt a written policy on planning application completeness and the Checklist included in application forms and customized for each application by project planner 29 ATTACHMENT C 230 No. Matrix Recomm. # Matrix Recommendation Staff Comments Pg. No.* basis for rejecting incomplete applications. 7 20 Training should be provided to the Planning Division staff assigned to the Permit Center regarding the basis for rejecting planning applications as incomplete. Ongoing 29 8 23 The case manager in the Planning Division should meet with the applicant to discuss issues that have been found during the initial 30-day completeness review of the application. Ongoing 31 9 29 The ability of the staff in the Planning, Building and Engineering divisions to consistently meet the cycle time objectives should be integrated into their performance evaluation. Ongoing 34 10 31 The division-heads in Planning, Building and Engineering should be held accountable for the ongoing maintenance of this open case inventory and the completion of the processing of permits by their staff in accordance with the cycle time objectives Included in review 34 11 33 The Planning Division should establish guidelines for reviewing departments to respond to all submissions by applicants and establish clear timelines at each step. This would include the 30-day initial completeness review and subsequent reviews. 39 12 35 The case planner in the Planning Division should serve as the project manager and be responsible for the communication among the multi-disciplinary team and the resolution of conflicting conditions of approval or competing code requirements. 41 13 36 The case manager should ensure that all conditions of approval are provided to the applicant in writing and that each condition references the specific code or regulation that imposes / regulates the issues. Additionally, a copy of the staff report should be provided to the applicant once completed. Applicant is informed of the staff recommendation as well as all the conditions of approval ahead of time. Staff report is provided to applicant when the packet is ready for public review. 41 14 37 The authority of the case manager should be clearly spelled out in a written policy developed by the Planning Division and approved by the Community Development Director. 42 15 38 The conditions of approval utilized by all of the divisions and departments in the review of planning, building, and engineering permits should be documented and posted to the City’s web site. 43 16 39 The Planning Division should take lead responsibility in facilitating the development of these written conditions of approval by all of the divisions and departments. 43 231 No. Matrix Recomm. # Matrix Recommendation Staff Comments Pg. No.* 17 40 The Planning Division should develop and utilize checklists for the review and processing of discretionary and administrative applications by its own staff. 45 18 41 The Planning Division should publish its checklists to its web site for use by those individuals submitting plans. 45 19 44 Revise the building permit plan check cycle time goals for the length of time required to process building permit plans to serve as a performance guideline for all organizational units. 49 20 45 The Building Division should utilize the automated permit information system to assure the status of each plan is readily visible. 52 21 46 The Chief Building Official should be given the written authority and responsibility to interface with other organizational units to resolve delays in processing building permit plans in a formal written policy published by the Community Development Director. Building Official already has authority to interface with other departments and agencies to resolve delays in processing building permits 53 22 56 The Building Division should reduce the number of divisions and departments that are routed building permit plans. We already keep routing to the minimum required. Routing is only done to departments that have conditions of approval or review authority over projects. 23 58 The Building Division should adopt a policy to accommodate inspection requests up to 7:00 AM for same day inspection request service. We accommodate requests up to 7:00AM based on availability. 64 24 79 The Planning Division should conduct a pilot program of providing scheduled hours for “walk in” reviews of minor corrections to expedite the approval process. Our current policy allows us to schedule appointments at the applicant’s convenience and communicate through email in addition to having the counter staffed from 7:30-5:30 every day. This allows us to provide better service than having availability only during scheduled hours. 81 25 85 The City should communicate any new plan review and inspection requirements to developers, contractors, architects, engineers, and the construction community through issuance of information bulletins and a newsletter. Distribute information bulletins describing the new requirements, and show effective date of implementation. We currently do this with mailed notices, our website, flyers at the counter and newspaper notices. 85 26 86 All full-time planners should be encouraged to attain the AICP certification from the American Planning Association. The City of Cupertino should consider requiring achievement of this certification to progress through the Planner job family. 86 27 87 The Planning, Building and Engineering division-heads should develop annual training programs for each employee in the division. 86 232 No. Matrix Recomm. # Matrix Recommendation Staff Comments Pg. No.* 28 88 The Planning, Building and Engineering divisions should provide additional training to increase their ability to make decisions regarding subdivision ordinance, zoning ordinance, and building codes to increase consistency of interpretation among staff. 86 29 89 Provide not less that 40-hours of job-related training annually for each employee of the Planning, Building and Engineering divisions. 86 30 91 The Building Division should implement quarterly training sessions with Fire Prevention Inspectors, Building Inspectors, the Plan Check Engineer, the Counter Technician, and all employees involved in the development process (Planning, Engineering, Fire Prevention, etc.) to review operations, eliminate overlap or duplication, and improve coordination for efficient delivery of services. Allow each discipline to present matters of concern for decision and resolution. The City has a Pre-hearing Committee consisting of departments and agencies involved in the development process that discusses issues as they arise. 86 31 92 The Building Division should involve the District Fire Inspectors, at least monthly, in the building code training to achieve consistency. 86 32 96 The Planning Division should expand the annual work program. The Planning Division prepares an annual work program with the Planning Commission and Council. 92 33 97 The Planning Division should complete a project work plan prior to commencement of an advanced planning project. The scope and schedule for large projects are reviewed and approved by the Council 92 34 98 The Planning Division should publish a quarterly report regarding the status of advanced planning projects. 94 35 102 The Senior Planners should be utilized as lead professionals within the Planning Division. This role should be clarified in a written division policy and procedure. Our flat organizational setup allows us to handle a large workload with a comparatively small staff of 4.5 planners. We already utilize this system of having planners become “experts” on an issue and train other staff. 96 36 105 The Planning Commission should conduct annual retreats with staff The Planning Commission attends an annual conference that also serves as an opportunity for discussion. Staff plans to add a retreat to the Planning Commission agenda for 2010 100 37 108 Planning Commission members should be provided with ongoing training of no less than four hours a year. The Planning Commission attends a three-day annual conference and is provided additional opportunities to train throughout the year. 102 38 109 The members of the Planning Commission should continue to be provided with membership in the American Planning Association. 103 233 No. Matrix Recomm. # Matrix Recommendation Staff Comments Pg. No.* Can Be Implemented Administratively 1 16 The Planning Division should separate the tentative application schedule from the 34-page planning application form, and publish it separately to its first web page for the Planning Division in the Planning “sidebar.” 26 2 17 Develop and adopt planning permit cycle time agreements with applicants for high priority projects 27 3 21 Planning application guides should be developed for each specific type of planning permit to include all of the City’s requirements for an applicant to achieve a complete submittal. 29 4 22 These planning permit application guides should be approximately 4 to 6 pages in length. 29 5 24 The Planning Division should provide training to consulting planners, architects, engineers and developers regarding its planning permit submittal requirements. 31 6 25 The Planning Division should provide training after each submittal when consulting planners, architects, and engineers are involved in the development of the application and when they encountered particular problems meeting submittal requirements. 31 7 30 The division-heads in Planning, Building and Engineering should formally plan and schedule the permit applications processed by their staff using the automated permit information system. 34 8 34 A formal written policy should be established for response times by Planning Division staff to inquiries from applicants that are received via email and/or voice mail. Planning Division staff should be held accountable for meeting these guidelines. The City has a policy of returning inquiries within 24-hour period. 39 9 43 The Planning, Building, and Engineering divisions should document interpretations of the zoning ordinance, subdivision ordinance, and building codes and make these available to the public on their web sites. 48 10 49 The Counter Technician position should be reclassified to Building Technician. We have a Counter Technician position that can be renamed Building Technician 55 11 50 The Building Technician position, when filled, should be utilized to provide over-the-counter plan checking of minor and miscellaneous building permits. Already in the job description for the Counter Technician 55 12 51 The Building Technician classification should be revised to require certification as an ICC-certified Permit Technician within 12 months of hire. Already in the requirements for the Counter Technician 55 234 No. Matrix Recomm. # Matrix Recommendation Staff Comments Pg. No.* 13 52 The Building Division should provide support, funding, and training to the Building Technician to obtain as an ICC-certified Permit Technician. Same as above 55 14 54 Develop a “Home Improvement Center” web page on the Town’s web site to assist the homeowner navigate through the building permit plan check and inspection process. 58 15 59 The Engineering Division should develop application guides for those permits in which the Division is the lead. 67 16 60 The Engineering Division should publish its cycle time objectives to the Division’s web site and identify these cycle time objectives in the Division’s application guides. 68 17 61 The Engineering Division should develop application guides for those permits in which the Division is the lead for plan checking. 70 18 78 A greater focus should be placed by the Planning Division on ensuring availability of a professional staff member at the front counter during all hours of operation including during the lunch hour. Can open counter at lunch hour. Having permanent staff at the counter not recommended since this would require additional staff, which would be more expensive. 81 19 80 The City should develop a comprehensive “How-to Manual” or “Development Guide” for use by the public and publish this document to their web site. 83 20 81 The Community Development Department should institute a periodic (two to four times per year) newsletter that is distributed to the development community containing code or interpretation updates, training information, and general discussion of relevant topics. Can be implemented as an email flyer/website resource 84 21 82 The Community Development Department should conduct at least an annual meeting to engage the development community in a discussion of general issues regarding permit matters in Cupertino, solicit input regarding service levels, and seek input regarding potential changes to the enabling legislation (general plan, subdivision ordinance, zoning ordinance, and building codes). 84 22 83 The Community Development Department should conduct an annual and ongoing customer satisfaction survey The City has survey cards at the Development Permit Center that people can fill out. In addition, the City conducts periodic Godbe surveys. 84 23 90 Establish and publish quarterly training agendas. Assign all employees as presenters, and have them prepare outlines for their presentation. Bring in outside industry training where appropriate. Staff has begun to identify items for training and plans to begin this shortly. 86 24 95 A comprehensive desk manual should be developed for all major work functions and services provided by the Planning, Building and Engineering divisions. A copy of 90 235 No. Matrix Recomm. # Matrix Recommendation Staff Comments Pg. No.* the manual should be available to each employee, and updated at a minimum on an annual basis. The manual should be published to the Intranet. 25 100 The vacant Senior Planner position should be filled and dedicated to advanced planning. Already in the budget (position is vacant). Can be implemented if workload indicates more staff is needed. 96 26 99 At the completion of an advanced planning project, a final report should be published good and bad aspects of the completed project, transmitting that information to the staff of the Planning Division, and providing a convenient summary of the project. 95 27 110 The Planning Commission should prepare an annual report summarizing their activities and submit it to the City Council. 103 236 Requires Council Review for Implementation (Budget/Ordinance) No. Matrix Recomm # Matrix Recommendation Staff Comments Pg. No.* Category 1 6 The City should streamline the process for minor planning permits by increasing the number of permitted uses that require quasi-ministerial review and are subject to codified performance standards. Requires Ordinance change 17 Streamline 2 7 The Planning Division should develop codified performance standards and requirements for these minor permits for consideration and approval of the City Council. Requires Ordinance change 17 Streamline 3 8 The approval of these codified performance standards and requirements by the City Council should be sequenced to the conversion of these minor planning permits to permitted uses. Requires Ordinance change 17 Streamline 4 9 Section 19.124.060 of the zoning ordinance should be modified. The Planning Commission should be the final decision-making authority for conditional use permits and variances with the City Council having the right of appeal. Requires Ordinance change 21 Streamline 5 10 The staff of the Planning Division should not write staff reports for minor permits. Requires policy change 22 Streamline 6 11 The Planning Division should not mail the plan sets for minor permits to those adjacent property owners that are noticed. Requires Ordinance/policy change 22 Streamline 7 12 The number of appeals that are possible for planning permits should be limited to one appeal. Requires Ordinance change 23 Streamline 8 26 Develop and adopt a written City policy and procedure for the maintenance of case status information in the automated permit information system by managers, supervisors, and staff assigned to processing planning, building and engineering permit applications. We already implement this without our permitting system. A well-designed online permitting system (which requires funding) will help automate many of the functions that currently need manual checks. 33 Infrastructure/Technology 9 27 Develop and adopt a written City policy and procedure that assigns responsibility to the division-heads for assuring ongoing maintenance of case status information in the automated permit information system and that requires the division-heads to audit the caseload assigned to staff to determine whether the case is active, is inactive as a result of applicant inaction and should be terminated, or has been closed and the case should be updated in the automated permit information system. Same as above 33 Infrastructure/Technology 237 No. Matrix Recomm. # Matrix Recommendation Staff Comments Pg. No.* Category 10 28 The City should hold division-heads in Planning, Building and Engineering accountable for tracking and monitoring the success or failure of their staff in meeting cycle time objectives through regular management information reports generated on a monthly basis by the automated permit information system. Same as above 34 Infrastructure/Technology 11 32 The City should utilize the automated permit information system to generate ongoing monthly management information reports to track performance against cycle time objectives and monitor the case workload and performance for staff assigned to the processing of these permits. Same as above 36 Infrastructure/Technology 12 42 The Planning Division should develop design guidelines for multi-family, commercial, and signs. Requires funding for consultants/outreach 46 Readability and Consistency 13 47 The Building Division should issue not less than 20% of its building permits over the Internet. Our current online permitting system allows about 10% of our permits to be processed. A more robust permitting system (which requires funding) will increase the type and number of permits that can be handled online. 54 Infrastructure/Technology 14 48 The Building Division should increase the number of building permits issued over-the-counter to 60% of all building permits issued. Same comment as above. It should be noted that the complexity of the permit types will determine whether they can be handled online. 55 Infrastructure/Technology 15 62 All of the departments and divisions should utilize the automated permit information system for all aspects of the planning, building permit, and engineering permit process. Requires funding for new automated permitting system 71 Infrastructure/Technology 16 63 Modules, applications and reports should be developed within the automated permit information system to support the work of these departments and divisions. Same as above 71 Infrastructure/Technology 17 64 Training should be provided to staff as appropriate in the use of the automated permit information system. Same as above 71 Infrastructure/Technology 18 65 The City should utilize the automated permit information system to provide the capacity for the public and for applicants to access data through the Internet or for the public and applicants to subscribe to information. Same as above 72 Infrastructure/Technology 19 66 The automated permit information system should include the capacity to interface with an Interactive Voice Response system. Same as above 73 Infrastructure/Technology 20 67 The City should acquire an Interactive Voice Response (IVR) System. Same as above 73 Infrastructure/Technology 238 No. Matrix Recomm. # Matrix Recommendation Staff Comments Pg. No.* Category 21 68 The automated permit information system should have wireless capabilities. Same as above 74 Infrastructure/Technology 22 69 The automated permit information system should have an automated workflow capacity. Same as above 75 Infrastructure/Technology 23 70 The automated permit information system should have the capacity for online project management and collaboration tools. Same as above 76 Infrastructure/Technology 24 71 The automated permit information system should have the capacity to interface with ESRI GIS. Same as above 76 Infrastructure/Technology 25 72 All documents created by staff regarding permits, plan checks, and inspections should be archived in the automated permit information system . Same as above 77 Infrastructure/Technology 26 73 Architectural plans should be archived in the automated permit information system once the permit is finalized Same as above 77 Infrastructure/Technology 27 74 All of the divisions and departments that utilize the automated permit information system should enter and store their annotations, comments, and conditions in the system. Same as above 78 Infrastructure/Technology 28 75 The City should provide Pentamation with the opportunity to identify the total installed cost for the development and deployment of a fully functional automated permit information system. Same as above 79 Infrastructure/Technology 29 76 The City should acquire a fully developed commercial-off- the-shelf automated permit information system. Same as above 79 Infrastructure/Technology 30 77 The City should remodel the permit center. Requires funding 80 Infrastructure/Technology 31 93 The City of Cupertino should ensure that all planning, building, and engineering permit fees are reviewed and evaluated when the next review of development fee schedules is conducted to ensure fees are appropriately calculated and assessed. Requires funding for Fee Study 89 Fees/Cost Recovery 32 94 The City should charge a technology fee as a surcharge to its building permits. Requires funding for Fee Study 89 Fees/Cost Recovery 33 101 The City should charge a zoning ordinance update fee to enable the fiscal sustainability of advanced planning as a surcharge to its building permits. Requires funding for Fee Study 96 Fees/Cost Recovery 34 103 The Mayor and City Manager should develop alternatives for the consideration of the City Council to avoid conducting public hearings for City Council meetings in the early morning. Council Policy 98 Other 239 No. Matrix Recomm. # Matrix Recommendation Staff Comments Pg. No.* Category 35 104 The Engineering Division should update the stormwater master plan in the next two years using a consulting engineering firm. Requires funding for Stormwater Master Plan 98 Streamlining 36 106 The City Council and the Planning Commission should conduct joint meetings at least annually. Council Policy 102 Other 37 107 The City Council and Planning Commission should conduct a joint visioning exercise early in the process of any updating of the Zoning Ordinance. Council Policy 102 Other 38 111 Amend the Planning Commission bylaws to clarify the responsibility of the Planning Commission chairperson to manage Commission meetings. Requires change to bylaws 105 Other 39 112 Amend the bylaws of the Planning Commission to reduce the amount of time available to public speakers to the same amount as that provided at City Council meetings. Requires change to bylaws/policy 105 Other Not Recommended No. Matrix Recomm. # Matrix Recommendation Staff Comments Pg. No.* 1 13 Eliminate the requirement for a filing of covenants subsequent to approval of a planning application. The City uses covenants to ensure that critical conditions of approval are recorded against the property to ensure that the intent of a decision remains as properties change owners. 23 2 18 Pre-application conferences should not be required for routine planning permit applications approved by the Community Development Director. Pre-application conferences help applicants provide complete applications before submittals and reduce cycle times. 28 3 53 Develop standard building permit plans for use by the public in minor residential improvements. Not recommended due to liability associated with providing plans, which typically need to be customized for a particular situation. 58 4 57 The City should assign responsibility to the Building Division for zoning clearance of simple building permits. Not recommended because many planning applications have conditions of approval that require detailed review that is best done by a planner. This also allows multiple reviews to be done in a shorter time instead of having one person follow up on all issues. 63 240 Notes 1. The recommendations are listed using Matrix numbering system (for easy reference) and not in the order of priority. 2. * The page number reference indicates the page where the discussion regarding the recommendation commences, not necessarily the actual page location of the recommendation itself. No. Matrix Recomm. # Matrix Recommendation Staff Comments Pg. No.* 5 84 The City should require that any new ordinance and code requirements not previously imposed will not be enforced on current construction and future jobs until the industry is informed and a 60-day waiting period is put in place. We already provide adequate notice of public hearings, first and second readings for ordinance amendments through the newspaper, mailed notices and our website. In addition the ordinance goes into effect 30-days after the second reading. This provides more than 60 days notice for potential applicants. 85 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 Cupertino Planning Commission 11 November 9 2010 Piu Ghosh Associate Planner presented the staff report Said that the current ordinance amendments presented are proposed to make the zoning ordinance consistent with the housing element adopted in 2010 the environmental determination is that it is CEQA impacted because there are no environmental impacts In April 2010 the City Council adopted the housing element and also adopted some associated Municipal Code amendments however since then additional changes have been identified related to consistency or conformance with both the housing element and also with other chapters of the Municipal Code The layout is also being changed to improve readability and trying to eliminate redundancies or discrepancies She reviewed the amendment details for Chapter 1948 Planned Development P Zones Chapter 19124 Planned Development Permits Conditional Use Permits and Variances Chapter 1972 Private Recreation FP Zones and Chapter 2004 Specific Plans as outlined in the staff report Staff recommends that the Planning Commission recommend that the City Council approve the recommended amendments Chair Brophy opened the public hearing as no one was present to speak the public hearing was closed Motion Motion by Com Miller second by Com Kaneda and unanimously carried 5 0 0 to approve Application MCA 2010 06 per the model resolution 5 CP 2010 01 Review of the Management study of the Permit process and City of Cupertino opportunities to enhance the quality of the Citys permit Citywide Location services and organizational history Continued from the May 8 2010 City Council meeting Tentative City Council date February 2011 Chair Brophy noted that the presentation is for discussion purposes only no motions will be made discussions will include what should be covered and establish a formal public hearing to discuss what recommended changes will be made Aarti Shrivastava Said that the Council reviewed the documentation that staff provided the Planning Commission as part of the matrix report and they wanted staff to conduct two workshops where everybody who had gone through the permitting process were noticed as well as interested parties in the last five years Two different workshops were held Consultant Ken Rodriguez will discuss what input was heard from the workshops and what the compilation of the data is and Piu Ghosh will review the technical details Ken Rodriguez Consultant Reported on the two workshops held and applauded staff on the excellent job of documenting the workshops Piu Ghosh Associate Planner presented the staff report Reviewed the staff report relative to the development process review Matrix Consulting Group prepared a comprehensive analysis of the citys development permit process in November 2009 Planning Commission reviewed it in April and May and the City Council also reviewed the item in May City Council directed staff to conduct additional outreach into the community and sent notices to all property owners contractors and developers who 260 Cupertino Planning Commission 12 November 9 2010 received permits within the last 5 years Outreach efforts included the mailing of 5300 notices and notices were also placed in Cupertino Courtier Scene and the citys website The first workshop was held on July 28 2010 19 attendees including 4 Planning Commissioners Different themes were identified within the Matrix report including streamlining technology and communication The main comment from the meeting was that the development process needs to be streamlined a comprehensive online permitting system is key and that streamlining is desirable as long as there is no reduction in the level of public engagement that the city currently does The second workshop was held on September 8 2010 a group exercise and free discussion was held details are outlined in the staff report Page 5 3 the only change recommended related to parcel maps that those could be approved administratively No changes were suggested to the single family review process however changes were suggested to the exception processes She reviewed the recommended changes as outlined in the staff report Relative to communication the attendees at the second workshop discussed at length the noticing process Some members of the community especially applicants felt that the requirements were onerous while others were satisfied with the level of communication and felt that any streamlining should not result in reduction of public noticing and input Staff is suggesting a new enhanced public engagement process called ACT Advise Collaborate and Team Up which was explained in detail on Page 5 5 of the staff report Relative to technology at the first workshop 7 of the 15 attendees indicated support for a new online permitting system preliminary discussion held indicated support for roughly a 4 increase in fees to cover the cost of the system Staff recommends that the Planning Commission comment on the proposed changes and submit any other proposed modifications or recommendations to be forwarded to City Council Com Miller Said that lowering the level of approvals is a good idea which is one way to improve efficiency Also staff suggested an online system to improve efficiency The Matrix report has a number of suggestions in terms of reducing some work which they felt was unnecessary It was suggested that two story residences be treated the same as one story as far as the approval process is concerned One area that wasnt adequately addressed is the actual processes that staff currently has in place and how they can be improved Aarti Shrivastava Noted that the flow chart in the staff report outlines the processes which change depending on what the applicant provides every one of the processes follow the flow chart except for Rl which staff can provide Staff is also looking at many of the administrative changes and to make those in house improvements The flow chart except for the R1 doesnt include story poles and the tree removal process is different The process is what you see in front of you changes depending on who is applying how much information they provide Com Miller Said that he felt the flow chart does not help an applicant in terms of what steps he has to take and that is where the exercise could be valuable because the output of the exercise could be put online for clear understanding None of the steps are clear in the ordinance or guidelines it is very confusing for a new applicant He suggested addressing it as a Planning Commission and make improvements and submit something to the Council 261 Cupertino Planning Commission 13 November 9 2010 Aarti Shrivastava Said she was attempting to differentiate between ordinance amendments and internal processes The application packet addresses many of the questions and staff is looking to improve it and customize it for R1 vs all other applications The flow charts describe the steps in a process and what meetings are needed to go through it and the application packet walks the applicant through each paper to provide in order to complete the application Com Miller Said he felt the application packet was not fully complete as to the current requirements Chair Brophy opened the public hearing Jennifer Griffin Rancho Rinconada resident Said she has followed the process from the beginning and felt there was too much change happening She said the way Cupertino does business now protects and maintains strong neighborhoods and asked why would they want to change it Cupertinos process has evolved over a number of years to be uniquely Cupertinos The city has politically active residents who are trying to maintain the true nature and strength of their neighborhoods and she saw no reason for change She said she felt there were many outside forces beyond Cupertino that dont like the way that Cupertinians do thing3 and she had concerns that some of those people are influencing this beyond the point they should such as the anonymous focus groups in the Matrix report Relative to the many reports she did not want a lower level of authority but things to stay as is She wanted to make sure the neighborhood notification continues and that the neighbors remain involved as they are the heart and soul of Cupertino Kevin McClelland representing the Board of the Cupertino Chamber of Commerce In favor of application Applauded the review of the process and the work that has been done so far it is a step in the right direction He disagreed with the previous speaker regarding her comment about standards being lowered to make it easier for people to conduct business in Cupertino he saw no evidence where standards are being lowered He suggested having a better timeframe on some of the approvals and response times to help keep projects moving along many times information can be missing or there can be snags that stall or slow down a process He also suggested having better timeframes and perhaps alternatives for the Planning Commission and City Council meetings to ensure that everyone is heard and the meetings have a distinct timeframe and be completed in a shorter timeframe They support the online system which would help to not only save the city money but also streamline and help the process Bob McVie Cupertino resident Said he supported the online system as it would save staff time and provide access to the public on a readymade basis Item 3 is important where overwhelmingly the group members were looking at streamlining but didnt want a reduction in the level of public engagement they do not want to revert back to the 1990s after going through 10 years of developing what they now have Referring to Attachment 1 Collaborate level it mentions greater than 25 units 25000 sq ft of retail commercial industrial all three categories are major developments in Cupertino Cupertino is a small city He recommended those be reduced to a lower level of 10 to 15 units 10000 sq ft of retail and about 25000 sq ft of office industrial He recommended 262 Cupertino Planning Commission 14 November 9 2010 increasing the neighborhood notice which is at 500 feet minimum to 1000 feet because in the past notifications wouldnt get to the citizens of Cupertino but only to the developed commercial properties He said he appreciated the process it was informative for all and allowed the public to provide input at those meetings Darcy Paul Cupertino resident Said he supported the streamlining process for development permitting Relative to noticing he applauded the Commission for considering expanding the general notice which will benefit public input He said he felt the three minute limit for each speaker makes it arduous because some meetings go until 2 or 3 am which is not necessarily an effective process He said he was not suggesting eliminating the public input process at meetings but try to make it more efficient if there are comments prior to the meeting being processed by the city He said with respect to being able to integrate some modern technologies and using online tools he supported being more creative about how to process public input in that manner Chair Brophy closed the public hearing Chair Brophy Reiterated that the purpose of the meeting was to put together an agenda for formal consideration Aarti Shrivastava Said that a major or minor permit depends on the size of the project and that decides whether the Commission or Council hears the items If it is a conditional use or CG ordinance it has certain uses that could be approved at staff level and certain uses for Commission approval everything cannot be put in one box They could say the more intense or more controversial uses get reviewed at the Planning Commission and the larger projects get reviewed at the Council level She noted that they have taken every project individually but if they are combined in one application the highest approval body will review it She said when it was first brought to the Planning Commission the Planning Commission did not want to open up the R1 but they heard in meetings some comments from people saying that it was onerous and they thought they would bring it back to see if the Planning Commission did have any comments to move forward The last time the R1 was looked at was in 2009 it has been through three or four reviews in the last 8 to 10 years and the last set went through a fair amount of vetting by the community as well as Planning Commission and Council There is also design review story poles and noticing and comments can be forwarded to staff Chair Brophy Relative to tree removals especially in the case of owner occupied houses there were opinions that the process is onerous What are the thoughts on tree removal whether or not the problems arise are greater than what the social benefits are Aarti Shrivastava The ordinance states that if a tree is dead or in a very hazardous situation if staff can determine the condition and not have to see an arborist there is no requirement for an arborist report 263 Cupertino Planning Commission 15 November 9 2010 On occasion there are reports that the tree appears healthy but there is something going on inside the tree and more information is needed if staff cannot make a determination an arborist report is required There is no charge if it is determined dead or hazardous and a replacement schedule per the tree ordinance is worked out at no charge If it is a protected tree per the ordinance the ordinance requires tree replacement if it is non protected tree they do not require replacement Com Miller Relative to the tree ordinance if a tree dies of natural causes whether protected or not it has lived and died on its own and there should not be a requirement that you have to replace it with two more protected trees He said he had difficulty with that concept Said that staff spends an inordinate amount of time on architectural review it is not done for one story buildings but is done extensively for two story buildings Suggested that it is an area where significant improvements could be made in efficiency and how to do things with no loss of quality in eliminating or changing the process The new ordinance that allows square footages on the second floor greater than 45 of the first floor have requirements that it would have to be a definable style and need to have four sided architectures It may make sense but then it is required that all those sides be hidden behind privacy protection He said he was at a loss to see where the benefit is of spending time and effort on getting very detailed architecture particularly when the buildings are small and lots are tight and then hiding that beautiful architecture behind a barrier of landscaping He said it was an area that should be looked at Many cities require story poles but Cupertino takes it a level that no other city does requiring that an engineer go out and survey the exact location where the story poles are to be planted in the ground which is an expensive proposition from 2000 to 5000 for poles that will stay up for a month The city also requires that all the corners and ridgelines be detailed in plastic He said when looking at the plan and looking at the story poles he could not distinguish all the detail and doubted that anyone else could He questioned the value of the expenditure which is another area to look into Relative to noticing he said he did not see a reason to send out detailed floor plans to neighbors what goes on in the interior of the building is a private matter of the homeowner and does not have to be disclosed to the neighbors It is appropriate to put a four sided elevations to see the site plan the grading drainage but not floor plans why should the neighbor have the right to comment on the location of someone elses bathroom The other issue with the R1 ordinance that creates much conflict is the concept of compatibility with the neighborhood and mass and bulk they are very subjective and it causes endless discussions and arguments Relative to compatibility and conformity he referred to the Willow Glen neighborhood in San Jose where every house is different than the neighbors yet the neighborhood look good and one couldnt argue about conformity or compatibility there One of the reasons Cupertino is now allowing a larger second story is because people have said that Cupertino has the wedding cake look and they want to get away from that The compatibility stipulation in the ordinance goes to the same question and it does not allow for creativity for designs that could fit in with the neighborhood or are not allowed because they dont look like the ranch house next door It is another area where it is right to look at the R1 ordinance He cautioned about reopening the RI ordinance because it is a risky thing however it could be opened in a limited way and agree to address certain things and agree to send that request onto City Council 264 Cupertino Planning Commission 16 November 9 2010 Aarti Shrivastava Said staff would like to get comments on Attachment 1 and 1A which are the heart of the recommendations Attachment 1 tries to put a level of certainty into projects where both the applicants as well as people understand what the requirements are The second takes it to the technical level and compiles data received from the group workshops along with the recommended public strategy The site signage is a great idea it addresses people who may not have been in the noticing radius renters people who moved in new and werent updated on the metro scan it addresses a lot of issues and we have looked at this from all angles and tried to find the best way to inform the public as well as a creative way to get input We believe for larger projects the neighborhood workshops are a better way than the three minute input at meetings Com Giefer Said she was part of the development of the current R1 over the past 8 years and many of the points that Com Miller brought up were the things that were put in the R1 because that was what the public was most fearful of they felt a lack of control they felt they didnt know what was going on in residential development they had no way of understanding what was going to happen in properties adjacent and across from them She recalled that they sent out the floor plans because some peoples living rooms or family rooms would be facing a neighbors master bedroom and they discussed what the appropriate level of information given out should be She suggested that if they reopen the R1 they tie it in with the they had with green building where they lowered the overall FAR and the greener the building is the more FAR you are entitled to She said that story poles do work but if there is new information to make the process easier for the developer they should consider it Said that no more angry groups are coming to meetings which happened during the two story development issues because neighbors know what is going on and she said she did not want the future Planning Commissions to have to deal with that She said if they are going to look at R1 or send it to Council then they should look at FAR and reducing the overall FAR in the city if you want to increase your FAR back up to the current levels then build a greener home She said it would be helpful to know exactly what information is required for various permits and try to transpose a timeline Com Kaneda Said he did not like the fact that two stories are treated separately from one story the argument for not having a stricter review on one story buildings is that you have a fence in between and it more or less blocks the view between houses but at the street level architecture is architecture and it can get ugly or nice He recalled his personal experience when his architect told him not to try to do a two story house in Cupertino because he would have to go through an architectural review and it is not worth the hassle He decided on a one story although he preferred a two story home Com Giefer Said during her remodel they did not experience major problems her pool plans were lost three times and they had to make one phone call about a framing issue but it was worked out Ken Rodriguez Said he was interested in peoples experiences with the R1 On a commercial level the Matrix report is very accurate extremely cooperative and very organized Said he liked the idea of computer permit streamlining and suggested that the Council go to Apple and partner with them and beta test the whole system with them 265 Cupertino Planning Commission 17 November 9 2010 Cupertino is a place where people want to locate because of the school system and a nice community and building a single family home is probably the only time they will do that The process is confusing it could be simpler for first timers and with the help of technology staff will be able to put many of those printed documents on the computer He said he was hopeful that all the things discussed will be translated into that process and it will make it easier for the first time person He said some communities because of budget cuts are forced to cut down on staff and people going to their city hall are forced to locate the staff through phone lines in the lobby area which is impersonal Aarti Shrivastava Noted that the planning department hours have been extended to improve customer service Com Giefer Said that having a process online similar to R1 For Dummies would make it simple for people going through the process Details explaining what the documents consist of etc and what to expect when attending a design review meeting or Planning Commission meeting would be extremely helpful to people because not everyone utilizes an architect Ken Rodriguez Once you get the process online people could study the process and complete the paperwork in their own homes it is a daunting process for people to appear before a Planning Commission meeting or City Council meeting Com Kaneda Suggesting making available a set of drawings for the public to look at as part of the process Staff said she would discuss it offline with Corn Kaneda Com Miller He said a detailed flow chart was needed showing each step including the deliverables what the city is expecting you to submit what the dependencies are for doing those submittals going through it step by step would provide a birds eye view of exactly what each process involves and where When it is laid out you can see where improvements can be made and staff can possibly make some modifications afterwards and that could be the basis of documentation to go online for an applicant to look at and get a better idea up front of what needs to be done It is a valuable process to go through and they can find places to make improvements Provided an example of an RI approval requirement of providing the interior square footage of the proposed house Staff requires the applicant to provide drawings of squares inside the house which would indicate the total square footage If the application was designed on a CAD system it is a more efficient and accurate way to provide the information There are other similar areas where improvements can be made and by flow charting it out and seeing all the requirements staff can then look at them individually and make suggestions for improvement Reiterated that they were asked to look at the process and he felt he could not do an evaluation of the process without knowing exactly what the process is and asked for more detail to better understand the process where it works and where improvements can be made He said if applicants have to go through it the commissioners should also Chair Brophy Said that the Commissions role is to focus on things related to the ordinance and some of these issues brought up are not ordinance matters but work processes and he was not sure 266 Cupertino Planning Commission 18 November 9 2010 they were set up for resolving those types of issues If it is not in an ordinance it shouldnt be a matter for the Commission to resolve Said they need to resolve the RI issue he agreed with Coms Giefer and Miller that some of the process is unduly complicated but to the extent that they have generous FAR scores he was not sure they were willing to reopen that issue They reviewed in in detail and the Council expressed their opinion in no uncertain terms and notwithstanding the Commissions unanimous view that they were not going to touch the FAR matter Said he was reluctant to reopen R1 unless there are specific ordinance problems such as the story poles not requiring a formal engineering survey or the corner and ridgelines detail because he did not feel they were providing much value Piu Ghosh Said they do require story pole certification however it does not have to be by a surveyor and can be done by a contractor They must be presented at the correct height and location which has been a contentious point in past RI appeals Aarti Shrivastava Story poles requirements are part of the ordinance and staff will implement whatever the Planning Commission and City Council decide should be implemented as part of the ordinance If the story pole requirement is removed they wont have to do it any longer Whatever requirements the Council decides staff wants to ensure that the applicant is able to self certify without staff having to go and check every detail because that takes extra staff time She said she understood the issues and perhaps they could be argued in relation to the ordinance to say that many of the story pole requirements are onerous and that people who have gone through the process are best able to bring those comments in Com Miller Suggested a subcommittee of two commissioners to meet with staff and present findings to the Planning Commission Com Giefer Suggested that it be Planning Commissioners who were not involved with the original RI so their discovery would be original and not be tainted by prior hearings and feedback which would provide unbiased information Com Miller Said he felt they would lose experience and knowledge that is valuable in the process if they took that approach Aarti Shrivastava Having gone through the Rl process recently it is appropriate to bring a lot of this staff was hoping to get more comments on Attachment 1 and 1A I am not saying that other changes dont have to be made but if we could get some of that to see if we are in the right direction or not and then we can look at R1 we will bring the comments to the Council about generally trying to streamline the RI requirements Chair Brophy Said he was not sure he agreed with the comment about noticing as they were already covered under zoning amendments up to 1000 ft and to the extent you have an industrial parcel in Vallco 267 Cupertino Planning Commission 19 November 9 2010 Com Giefer There are special cases where you have the best intentions with 300 500 or 1000 square feet but only one neighbor would actually get notice but others are interested with RHS adjacent property owners were included because the parcels were so large that notice may have been sent to only one resident Valerie Armento Said that an ordinance sets the minimum standard that is going to apply uniformly throughout the city there is nothing that prohibits noticing extra or additionally in those types of situations but it sets the minimum requirement which is going to apply across the board so you want to set something that is reasonable and not overly burdensome in the grand scheme of things recognizing that in special cases you can always notice in addition Keep in mind that going to the the 500 or 300 foot level know as they drive or walk by the site It will be another requirement that will end up in the handout The Wireless Ordinance states that it should be a specific radius noticing or two properties on either side of the subject property Com Miller Said feedback from neighbors said the most effective thing when changing the ordinance was putting up the renderings people walking by can see them and get a good visual idea of exactly what the house is going to look like which is far superior to the story poles and anything else done Com Kaneda Expressed concern about the issue of whether or not to allow balconies on homes in Cupertino He said he did not personally care whether or not balconies were permitted but he noted the inconsistencies in some neighborhoods where balconies were permitted and within a five block area balconies were not permitted in another neighborhood because of complaints from neighbors Chair Brophy Said he did not want the Planning Commission involved with gates and fences Aarti Shrivastava Said that the ordinance remains as is Com Miller Suggested having a subcommittee to look at R1 and bring it back to the Commission Aarti Shrivastava Said they did not address R1 because it was heard loud and clear that the Planning Commission did not want to open up the RI Relative to the R1 staff hoped it would be more of a streamline process for revenue producing projects in the city Having just gone through an R1 they werent excited about reopening it again one of the things people value is certainty and if the R1 is reopened every year it is not providing the best service to their customers However if there are things that both the Commission and Council think should be removed staff will address it but their focus is going to be on trying to make the ordinance clear about the process trying to make it clear for the commercial developments and the larger projects providing that protection to neighbors to add noticing 268 Cupertino Planning Commission 20 November 9 2010 Chair Brophy Said he would like to avoid getting involved with second story decks because they cant be addressed without going into the whole R1 ordinance He was not opposed to minor landscaping and exterior enhancements for condos but not interested in working on changing wood fences to wrought iron fences etc He said he would rather not deal with the core of the R1 but focus more on internal work processes rather than ordinance processes Aarti Shrivastava Said staff was looking at internal work processes and working with applicants and any comments from commissioners would be welcomed Staff is not looking at all Matrix recommendations relative to the R1 specific ordinance amendments they have gone to the two public meetings and are bringing back the recommendations for the ordinance amendments Staff is also working on the internal staff improvements as well as the online permitting process They have received a lot of positive feedback on the online permitting we are seeking funding for it Staff is looking for direction from the Planning Commission Com Giefer Concurred with Chair Brophy but does not feel as part of Matrix they should open it up Com Miller Said he disagreed the architectural review is such a huge resource and expensive process for both the city and the applicant that it screams out for review It is an area they could save countless hours of staff time and thousands of dollars of applicant time by doing a better job It is such a sore point with every applicant who comes in and has to go through it There is no better time for improvement than now Chair Brophy Said if there are large homes on small lots there is an inherent potential for being intrusive to the adjoining houses and he preferred not to reopen it Com Miller Said there were two separate processes one for one story and a different one for two story houses There are actually duplicate processes going on because the two story homes have to be reviewed by the city architect and then reviewed again by staff the applicant gets two sets of changes one from the architect and another one from city staff It is a problem particularly for an applicant who hires an architect who has an opinion they go and get reviewed by the city architect and he may have a slightly different opinion and then they get reviewed by the staff who may or may not have architectural experience All this has to go into a mix and come out and it is a very long expensive process and I dont see where it adds any quality whatsoever to the end result We can let it go on but that is not my preference my preference is when there is a problem fix it Aarti Shrivastava Said the homes that are above 45 are because of specific guidelines the ones below are not Staff comments along with the architects comments are integrated as early as possible the idea being to integrate all comments from different departments as well as the consultants the person is always working with one staff planner Com Kaneda Said he was concerned about trying to balance two things if you totally let it go it reverts back 269 Cupertino Planning Commission 21 November 9 2010 to the reason they started trying to put controls on it in the first place which is the monster homes where you build a straight wall up to the edge of the allowable property envelope The other option is to follow Palo Alto which has a DRC and they look at everything it is overly onerous but they have beautiful homes He said he did not like the past layer cake architecture which encouraged one style of building which is not particularly attractive the Spanish style development architecture that developers use up and down the peninsula He said he did not like seeing every house in Cupertino looking like that Said his sense was to give it some time and see if the problem looks like it has been taken care of to see what the results are before tweaking it more Com Miller The two story process that people have been complaining about has been in place for five years the way to put controls on it is to be more prescriptive and put more guidelines and requirements in the ordinance but give the applicants architect flexibility to choose among them Presently they are subject to staff saying they know there is a set of guidelines but this is the one they want you to follow He said he would like to eliminate that issue as well Com Giefer Said they just changed the first to second FAR to specifically address architectural differentiation last year Chair Brophy Com Miller gave the example of the Willow Glen neighborhood where you have homes quite different from one another and where there is no problem The reason why that worked and is not working as well any longer is because the homes were much smaller relative to the size of the lots when you were building homes at 15 or 20 of lot size you could build whatever you wanted and your neighbor may not like it but it didnt overwhelm him In Willow Glen today homes are being torn down and large homes are being built Said he did not feel the process addresses the issue one ordinance says you can put a very large home on very small lot but it has to be good architecture and the reason clients are unhappy is because you cannot build 45 homes that are good architecture on a standard lot in a California suburb Com Miller Said he had no objection to lowering the FAR and if other commissioners feel the same way and want to do that with other recommendations send them to the Council for their reaction Relative to story poles he said he questioned their value but was willing to get input from the residents He said he felt the use of renderings provided a very clear picture of what is going in there There is a height limit and story poles are intended to see mass bulk and height and they have setbacks and height limits to address those issues If someone is building something within those guidelines then they have a strong argument for getting approval even if their neighbor doesnt like it otherwise they can change the guidelines which is what is being discussed Com Giefer Said she would not support a minute order because it is outside of the matrix She said they should focus on things such as policy the feedback received and the direction they started out with on the project 270 Cupertino Planning Commission 22 November 9 2010 Com Miller Said he understood the direction was to look at the permitting process and suggest improvements and that is why he wanted to see flow charts and deliverables From that they may decide that there are some changes to the ordinance that make sense based on that review Com Giefer Said she had no problem with the flow charts and looking at the process That is something they can handle as they have discussed wanting to review that Said she heard Com Millers ideas on this as a developer and recalled sitting through long meetings where the community felt the city had abandoned them and people who have lived here their entire lives didnt have a say in things which was a concern in terms of where they are headed Com Miller Commented that open hearings have been held where the public can attend and give their input Following discussion there was a straw vote 4 1 not to forward a minute order to the Council Com Miller Said he understood the objective was to look at the permitting process but felt he could not do so without knowing what the process is He suggested a subcommittee be formed to address it and bring it back to the Commission He volunteered to serve on the subcommittee and suggested another commissioner also serve on the subcommittee Com Giefer Cautioned the Commission on bias and suggested they get fresh ideas and let people who havent dealt with this before review it and see what they come up with to get a new perspective Com Miller Said he felt there was no substitute for having someone who understands it to begin with who has been through it followed it and gone into detail and doesnt have to spend a month getting up to speed Vice Chair Lee Volunteered to be on the subcommittee Aarti Shrivastava Recommended that staff bring the Commissions input on Attachments 1 2 and a recommendation that two commissioners would work with staff to provide their input on processes staff will continue to take input from applicants throughout the process and look at improving it offline Next step would be to go to the Council with Commissions recommendation on the broad brush area to say they have heard your comments on Attachments 1 and 2 on the collaborative process reducing the number of units to 15 in order to require neighborhood meeting didnt hear any changes to the retail or office there wasnt a majority vote to make any changes to the R1 and that we work with two commissioners and involve applicants in trying to make the process more user friendly 271 Cupertino Planning Commission 23 November 9 2010 Chair Brophy Suggested waiving the 162 appeals fee since it doesnt cover the costs associated with an appeal and sends the wrong message to residents Aarti Shrivastava Said the appeals fee was established to discourage frivolous appeals and it doesnt begin to cover the costs which range between 5000 to 6000 Staff feels having a nominal fee helps but if the Planning Commission wants to make a recommendation they will bring it forward to Council She noted that if the appeal is upheld the appeal fee is returned to the appellant Com Kaneda Said he felt the fee discourages frivolous appeals and is warranted Chair Brophy Said that in the interest of democracy the few frivolous appeals they receive is worth not having a fee Com Giefer Said she was neutral on charging an appeals fee Vice Chair Lee People appeal because they are upset so it is not likely that charging them a fee of 162 given will generate a large number of new appeals Com Miller Said there should be an appeals fee even if it is a small barrier to frivolous appeals If the appeal is granted the fee is not charged to you which seems to be reasonable and the appeals are usually done by several people or an entire neighborhood and the 162 fee divided amongst neighbors would not seem to be a hardship in Cupertino The Council decided on the fee not long ago Vice Chair Lee Relative to signs for tree removal the draft states that a sign needs to be up and if it with another application they need to have an ASA and have to remove a number of trees A TR could be put up however if it is one person in the home that wants to cut down one tree it should not be required if not associated with a major sign approval Aarti Shrivastava This wasnt an addition by staff it is a current requirement in the ordinance the tree ordinance was reviewed in 2007 and it was added at that time Any recommendation can be brought forward to the Council Com Giefer Said her experience is it is usually a planned development because somebody moves in and doesnt understand there was a landscaping pan approved as part of the overall development even if it is 5 homes If a home is a part of a planned development a replacement plan is needed in order to remove a tree People may be caught off guard because they did not realize the planting was approved as part of the development 272 Cupertino Planning Commission 24 November 9 2010 Valerie Armento Cautioned the Commission that they were conducting a process study to focus on the process and discussion should not drift into regulations Aarti Shrivastava Reviewed the tree removal process If a heritage tree is removed it is to be replaced by one 48 inch box tree The heritage trees are specific historic trees that are mapped in the city with tags on them protected trees are five species used for landscape plans approved as part of a planned development An arborist is consulted to determine the best replacement for the site because of possible overcrowding If the homeowner does not agree with the tree replacement they would have to appeal to the Planning Commission or decision maker Explained the different options relative to tree replacement for various reasons Com Miller The Director has the discretion to do what she wants including not replacing the tree If the reason for removing a tree is because there is crowding among the trees it would be better for the remaining trees to have that one tree removed does the ordinance require the replacement of the tree that was removed In general the tree ordinance is somewhat onerous on the homeowners We view the trees as a community good but it is an individual cost and there is some level of unfairness and some of the expense associated with permanent removal and the replacement by more trees tends to be costly Requiring signage is just another expense that may not be necessary I think we should look at single family residences and planned development He explained the requirements for tree replacement when trees are removed Chair Brophy Said it seemed unreasonable to have to replace a large tree that has died of natural causes trees grow from small to large and it is expecting a lot to replace a tree that has died of natural causes Com Kaneda Said he agreed with Com Miller that if you require privacy planting and then in later years when the trees are overgrown they have to be thinned out the person who was originally required to plant all the trees should not have to pay an in lieu fee in addition to removing the tree it adds insult to injury Aarti Shrivastava Said that the R1 process allows a neighbor to waive a planting requirement if the neighbor says they dont need the new trees planted it is still part of the waiver and is acceptable Aarti Shrivastava summarized All the ordinance recommendations have been identified in the packets relative to the administrative process staff is redoing the handouts Lunch time counter has been implemented and there will be an internal meeting to see if the process can be streamlined and staff will meet with the subcommittee as well There are specific ordinance issues that are identified that the staff will bring it back to the full Commission for consideration She confirmed the 15 unit reduction in the collaboration section as well 273 Cupertino Planning Commission 25 November 9 2010 NEW BUSINESS None REPORT OF THE PLANNING COMMISSION Environmental Review Committee No meeting Housing Commission Meeting scheduled for November 10 2010 Manors Monthly Meeting With Commissioners Meeting scheduled for November 10 2010 Economic Development Committee Meeting Com Miller provided the following summary The commercial environment has been decimated there is concern that there is something like a couple of trillion dollars worth of building loans coming due over the next three years and some people felt that they would be taken care of in some way other people thought they would create another crisis Aside from that though most of the participants felt they were cautiously optimistic that we had reached bottom and that in various places around the Bay Area we were starting to see some small evidence of new development going on particularly in the East Bay there was some concerns about the legislation coming out of Sacramento and the amount that it was adding to the cost of construction specifically new EPA requirements from the federal level as well as SB375 and AB332 and they even attached a number to it indicating that that would cost at least 6 per square foot to everything they did Also they are hoping as we move forward that the money situation loosens up because it presently is extremely difficult to get loans REPORT OF THE DIRECTOR OF COMMUNITY DEVELOPMENT Aarti Shrivastava reported The Council reviewed the appeal of the wireless facility on Results Way Nov 1s and directed staff to work with the applicant to find an alternate location on the front portion of the site closer to McClellan to see if that could be identified If they could the item would come back to the Planning Commission for review and recommendation If they cant identify an alternate location then they would go back to the Council On the modification to the Shashi hotel the Council approved the modification but they raised the parking ratio to 75 per room the Commission had recommended 6 The valet service would stay in place and they also wanted the Council to get an update of the parking annually for the first three years of operation Adjournment The meeting was adjourned to the next regular Planning Commission meeting scheduled flilr v 23 2010 at 645 pm C f Respectfully Submitted Elizabet is Recording Secretary Approved as presented December 14 2010 274 OFFICE OF COMMIJNITY DEVELOPMENT CITY HALL 10300 TORRE AVENJE CUPERTINO CA 950143255 u PT N 408 7773308 FAX 408 7773333 plannin@cupertinoor PLANNING COMM SSION STAFF REPORT Agenda Item No J Agenda Date November 9 2010 Application CP201001 Applicant City of Cupertinc Property Location Citywide Application Summary Review of the Vlanagement Study of the Permit Process and opportunities to enhance the quality of the Citys development permit services and organizational efficiency RECOMMENDATION Staff recommends that the Planning Con provide Comments on the list of recommendfd changes to the permit process and public engagement policy see Attachments 11A and 15 and Provide any additional modifications andor recommendations related to permit process enhancements BACKGROUND In 2009 the Matrix Consulting Grou was asked to conduct a comprehensive organization and management analysi of the development permit process and operations The objective of the analysis vas to identify opportunities for enhancing the quality of the Citys permit services ani improve organizational efficiency Matrix began their research in March 2009 and cmpleted the study on November 5 2009 see Attachment 2 The study used a variety of sources for it analysis including customer focus groups a survey of City staff and a review of th development process permit data and the Citys website Matrix then compared Cu pertinos permit processes and organizational framework with other comparable cities a nd best management practices in the industry A list of recommendations was presentE d to improve the Citys permit process and organizational efficiency The recommendations fall in the followin categories About 35 percent of the recommendations have already been implemented 275 CP201001 Matrix Project Recommendations November 9 2010 Page 2 About 22 percent of the recommendati ns are being currently being implemented by staff About 35 percent of the recommendations need Planning Commission reviewCity Council action in the form of OrdinancePolicy amendments or funding About four percent of the recommendations should not be considered either due to inconsistencies with City policies deartment functions and or potential liability concerns and About four percent of the recommendtions were based on incorrect assumptions by the Corisultant Attachment 3 is a summary table of recc mmendations in the Matrix report with staff comments The Planning Commission reviewed the item on April 13 April 27 and May 11 2010 see Attachments 4 5 6 7 8 9 for staff reports and minutes The City Council reviewed the item on May 18 2010 se Attachments 10 11 for staff report and minutes The Council reviewed the recommendaticns of the Planning Commission and directed staff to 1 Conduct additional workshops for the community to collect feedback regarding the permit process 2 Send notices to all applicants propez ty owners and developers who got permits from the City in the last five years Iz addition place appropriate notices in local newspapers Approximately 5300 notices were mailec to invite permittees and property owners to participate in workshops on the developrlent permit process In addition notices were placed in the Cupertino Courier Cupertino Scene and the Citys website Two group workshops were held one cn July 28 2010 and another on September 8 2010 The first meeting was focused on ccllecting comments on the main themes of the Matrix Report At the second meeting wrkshop attendees were given an opportunity to provide their opinion about the levels oE approval for different types of projects Group Workshop 1 Nineteen residents and property ownei sincluding four Planning Commissioners attended the group workshop on July 23 2010 At the first meeting the grou was asked to comment on three main categories indentified from the Matrix Report streamlining technology and communiction The attendees were provided with six key recommendations made by Matrix in each category for discussion see Attachment 12 Participants were also given an oppcrtunity at the end of the meeting to have an open discussion on all items that were not covered by the three main categories Comments from the group are summarized in Attachment 13 i2 276 CP201001 Matrix Project tecommendations November 9 2010 Page 3 Group Worksho 2 Twenty eight community members nd developers including two Planning Commissioners and one Councilmember attended the September 8th group workshop The attendees were provided with hanouts that compared Cupertinos approval authority with three neighboring cities Mcuntain View Sunnyvale and Santa Clara see Attachment 14 Each category was discus ed and following the discussion participants were asked to indicate on the handout what their opinion was The results of this exercise have been tallied and are sumrr arized in Attachment 15 and the comments from the group have been summarized in ttachment 16 The main points brought up by the groups at the workshops were The majority of the group agreed ihat the development process needs to be streamlined A comprehensive online permitting sstem is key to streamlining both processing and tracking projects An overwhelming majority of the grcup members agreed that while streamlining approval processes is desirable they did not want a reduction in the level of public engagement that the current processes llow Also staff has reviewed the input to see if there are discrepancies or legal requirements that would require changes to the recomnendations provided in the group workshops In cases where changes have been proposed staff has noted the change A chart is attached that shows projects approved between 2006 and 2009 see Attachment 1 It compares how the roject would have been reviewed per the workshop attendees recommendation staffs recommendations and the current ordinance requirements Following the two group workshops staff has compiled the input received at the group workshops into the following categories 1 Ordinance Policy Amendments 2 InfrastructureTechnology ImprovemEnts DISCUSSION The following is a compilation of input received at the group workshops In cases where staff has made a different reccmmendation or where staff has provided additional recommendations they are speifically noted in each section 1 ORDINANCFPOLICY AMENDMENTS Based on the results of the group workshcps staff has attached its recommendations in Attachment 1 A Streamlining Aproval AuthoritU The comments from the first group wcrkshop and the results of the tally of the responses from the second group woikshop indicates support for reducing the 3 277 CP201001 Matrix Project ecommendations November 9 2010 Page 4 thresholds of the approval level for prcjects that are smaller and do not have far reaching impacts The majority of thE group discussion included the following concepts The City Council should review all prcjects that are outside the box of regulations ie those that require a change to the General Plan or Zoning Staff notes that these projects Ordinance amendments and Teltative Maps are required to be reviewed by the City Council per State law Staff would like to add a recommendation that any project that requires an Environmental Impact Report EIR should also be reviewed by Council Projects that fit within the box of thE existing General Plan zoning and other City regulations should be approved at the lanning Commission level Projects that are small and do not caue impacts should be reviewed by staff Staff notes that such projects could include thos that are exempt under California Environmental Quality Act CEQA and would not have an environmental impact Projects that typically are exempt under CEQA include new contruction with six units or less and 10000 square feet or less of new nonresidential develpment or additions faade improvements site improvements including landscaping rEplacement or reconstruction of nonresidential buildings etc Staff would additionally like to recommend that any project that uses the California Environmental Quality Act CEQA infill exemption Section 15332 of Categorical Exemptions of CEQA require Planning Commission approvall A number of residents expressed co ncern about reducing thresholds of project approval and recommended enhancin g public noticing in case the thresholds are reduced A few residents commented if thresholds of approval were reduced appeal fees should also be lowered or eliminated to remove deterrents to their right to appeal a lower level decision The current apeal fee is set at 162 and is refunded if the appeal is upheld Single Family R1 Ordinance While th Planning Commissin had indicated at their meeting on April 27 2010 that they dd not want to review amendments to the R1 Ordinance it is important to note tht some workshop attendees brought up the issue that R1 requirements were onero xs The two story permit application involves the following three steps o Design Review o Story Poles expensive and not alw ays effective if not properly installed o Noticing financially burdensome a nd could cause potential security issues since entire plan sets with floor plans hav e to be mailed While staff does not have specifi reconmendations the Planning Commission may have comments or recommendations tYey wish the Council to consider 1 The Infill Development Exemption under CEQ is used typically for larger developments that are on urbanized sites of up to 5 acres in size Since uch projects may be larger than what other CEQA exemptions allow staff recommends that they be rEviewed by the Planning Commission c4 278 CP201001 Matrix Project Recommendations November 9 2010 Page 5 B Communication The group workshop attendees discussed he issue of noticing at length Some members of the community who have previously btained permits from the City felt that the requirements were onerous Other commtinity members liked the improvements made by the City over the years to increase noticing and wanted to retain them The participants additionally commented that any process streamlining should not result in reduction of public noticing and input In response to the comments received in he group workshops staff is recommending an enhanced public engagement process bsed on the following key principles A participation process must ensure tht a participants time is well spent A participation process must be focu ed and participants needs should be fully aired and considered Project and participation expectations rnust be clear from the start Staff has reviewed past projects where n otification was enhanced and would like to recommend a consistent policy for project where expectations for the applicant as well as neighborsresidents would be clear fom the start A draft concept of this new public engagement process policy Advise Collaborate Team up ACT is shown in Attachment 1 with further details of current policy and proposed changes in Attachment 1A The recommended ACT lublic Engagement Process has the following levels of engagement Advise Staff is recommending enharcing noticing for all projects by requiring on site signage and providing link on the Citys website The specific recommendations are provided in Attachment 1A Additionally to make project signs on the site providing notice of development proposals easily recognizable staff is proposing a draft sign and tandards based on a review of signs and standards in San Jose and Mountain Vi w see Attachment 18 Collaborate This level incorporates ethanced notification for projects that have the potential to creae neighborhood imacts Staff is suggesting a threshold of 25 residential units 25000 square feet of retailcommercial use and 50000 square feet of officeindustrial use since project at this level have the potential to create neighborhood level impacts Project at this level would be required to expand noticing to 500 feet and have a neigllborhood meeting The public engagement process at this level allows for dialogue between all parties and helps to discuss solutions that could be brought to deciionmakers for their consideration Team Up This is the highest level of ublic engagement for projects with citywide implications Staff recommends this l vel for large projects such as major General Plan amendments and zoning and Planned DevelopmentUse permits that require an EIR Projects at this level would require expanded or citywide noticing and focus groups workshops Examples o where the City has used this process include the South Vallco Master Plan and the Iorth Vallco Master Plan E5 279 CP201001 Matrix Project Recommendations November 9 2010 Page 6 Staff would also like to note that we ae working on improving interdepartmental communication Internal processes that can be improved upon by simple policy changes are also being evaluated and instituted Frthermore efforts are being made to prepare additional manuals and howto guides to help homeowners contractors and developers get the best information possible on prep ration of application submittal materials and requirements processes C Improving Readabilitu and Consistenc In order to improve consistency between various City documents and improve readability of documents staff recommenis the following Review existing conceptual plans nd area plans to make older documents consistent with the General Plan and to update them with new graphics No amendments to the plans are proposd as part of this review An administrative update with new graphics is expected o cost about 50007500 per document Review the Zoning Ordinance for consistency and the use of tables to reduce repetition and optimize readability The Sign Ordinance is an example of where this was done Staff notes that we are currently working on a number of Council work program items and that the abovementioned tasks will be done on a longterm basis as time permits 2 INFRASTRUCTURFTECHNOLOGY IMPRO VEMENTS Many workshop attendees indicated srong support for a comprehensive online permitting system see Attachment 13 Sven of the 15 attendees at the first workshop indicated support for the acquisition anc implementation of an online permit system where they could submit applications track the progress online and obtain permits online without having to submit paper plans Based on the preliminary discussion while many of the attendees supported the idea of instituting a technology fee of roughly 4 in order to cover some of thE costs of acquiring a new permitting system some attendees wanted to keep access to aper plans NEXT STEPS The Planning Commission comments ancl recommendations will be forwarded to City Council for consideration Once the Council provides direction on issues to focus on staff will bring related ordinance amE ndments to the Planning Commission for consideration Prepared by Piu Ghosh Associate P1annEr Reviewed by Approved by Gary C ao Aarti S vastava City Planner Community Development Director i6 280 CP201001 Matrix Project Recommendations November 9 2010 Page 7 ATTACHMENTS Attachment 1 Recommended Approval Authority and Public Engagement Process ACT Attachment 1A Current and pioposed noticing requirements Attachment 2 Matrix Consuling Groups report titled Management Stcdy of the Permit Prcess dated November 17 2009 Attachment 3 Summary tabl of recommendations in the Matrix report with staff conunerts Attachment 4 Planning Convnission Staff Report dated April 13 2010 Attachment 5 Planning Corrunission minutes from Apri113 2010 meeting Attachment 6 Plaruzing Corrunission Staff Report dated Apri127 2010 Attachment 7 Planning Comnission minutes from Apri127 2010 meeting Attachment 8 Planning Corrunission Staff Report dated May 11 2010 Attachment 9 Planning Con minutes from May 11 2010 meeting Attachment 10 City Council St aff Report dated May 18 2010 Attachment 11 City Council rrinutes from May 18 2010 meeting Attachment 12 Handouts to Ju ly 28 2010 group workshop attendees Attachment 13 Summarized r otes and analysis from July 28 2010 group workshop Attachment 14 Handouts to SEptember 8 2010 group workshop attendees Attachment 15 Tally of Apprcval Authority from September 8 2010 group workshop anc comparison of current level of approval authority and group recommendation to the cities of Mountain Viev Sunnyvale and Santa Clara Attachment 16 Transcribed notes from September 8 2010 group workshop Attachment 17 Comparison oE approval authority on projects approved between 2006 a nd 2009 and group recommendations Attachment 18 Draft standards and example for onsite signage related to development p roposals G Planning PDREPORT pc CP reports 2010 CPreport P201001 PC 110910doc j7 281 ATTACHMENT M Comments from November 23, 2010 from Subcommittee on process changes Comments from the subcommittee related to internal administrative processes focused on the following key principles: 1. Customer service comes first. 2. Coordinate the development process so that projects are processed in parallel among all departments to make for a seamless and efficient experience. 3. Provide consistency among staff and across departments to allow for certainty in the process. 4. Provide online resources, training and workshops to applicants, contractors and the public to help them understand the permit process. 5. Use feedback from participants in the process including applicants, the public, staff and decision-makers to make continuous improvements to internal processes. The following are specific comments related to the abovementioned principles: A. Promote Case Manager approach to projects B. Avoid inconsistency related to project requirements or code interpretations among staff members – by having regular staff discussion and sessions on project conditions and requirements. C. Improve consistency and clarity in the review process (i.e., clarify interpretations and definitions) – for example, what items need to be completed before final occupancy is granted and what items can be deferred with bonds, agreements, etc.? D. Clarify and/or simplify dependencies of the development review process – for example – is a tentative map application required before architectural site approval for home design for a subdivision can be approved? E. Promote parallel processes where possible F. On-site signage for projects is a good idea G. Improve inter-departmental coordination H. Provide online training resources and links for information such as the Water Efficient Landscape Ordinance requirements, Green Building resources, etc. I. Host “how to” workshops, especially for first-time users of the permitting process – for example, single-family homeowners considering an addition/remodel or building a new home. J. Create “how-to” manuals K. Allow flexibility (i.e., tree selection for privacy protection trees and/or mitigation for removal of protected trees)1 282 L. Streamline process and approval requirements (i.e., remove architectural review for two story home approvals1 M. Consider eliminating onerous requirements (i.e., story poles, noticing, landscaping requirements, tree removal process) 1 N. Review ways to get input on improvements from users of the process including survey cards for applicants, discussions with staff, Commissioners, Council, etc. Notes: 1. May require ordinance amendment(s). 283 Application Flowchart to Approval 2/3/2011 Flowchart does not account for the applicant's response times and/or multiple reviews Preliminary Review (15 Days). Pre hearing Review (~14 Days). Plans routed to Building, Planning, Public Works, Fire and Sanitary District and departments such as Health, Sheriff, Water District etc. as necessary. Provide Applicant Comments on issues and changes. May be iterative. Turnaround depends on applicant completeness and turnaround Does it need Arborist/Geotechnical/Traffic Impact/Acoustical Review? Comments to applicant Contact applicant outlining issues and changes required Pre-hearing meeting: 1. Any issues or concerns? 2. Preliminary conditions of approval Noticing 21 days prior to hearing Applicant to make changes to plans and resubmit and/or respond to comments. Must receive plans 3-4 weeks prior to hearing date to allow review time. Building Department Planning Departmen Environmental considerations? Architectural considerations? Land Use/Zoning considerations? Public Works Department Fire Department Yes No Draft Staff Report to Planning Manager due 12 days prior to Draft Staff Report to CDD due 10 days prior to Neighborhood meeting, if Report to CM due 6 days prior to hearing date PC hearing Initital consultation with planner Collect deposit and initiate contract Consultant review (3 weeks, more for complicated projects) Consultant draft report to planner Planner review (3-5 days) Applicant to update plans Formal Submittal File to admin for file preparation File to City Planner for review and File to Planner for review Plans to admin for routing (1 week max) Sanitary District Water Companies Water District Health Departmen Sheriff's Department School District Alcohol and Beverage Control Other State and County Agencies ERC Packet to DRC/PC 4 days prior to meeting Packet to CC 5 days prior to meeting date Final Decision? Building Permit DRC or PC or CC? No Yes Any modifications required//made? No Additional staff or consultant review Yes DRC/PC CC CC hearing Reconsideration? Appeal? Yes No Talk to Bldg/Public Works and Fire Finalize technical review scop e and budget Additional Review/clarification? Yes No One week max. 2nd round of review if necessary. Yes 284 Comparison of Current and Recommended Approval Authorities for projects between 2007 and 2009 1 of 12 ASA-2007-01, U-2007-01, TM-2007-01, EA-2007-01 Frank Ho Four lot subdivision, four new houses (Linnet homes) Architectural Site Approval and Use Permit for four single family residences in a planned development PC PC ASA-2007-02 Steve Peterson Exterior signs, façade details (California Pizza Kitchen) Architectural Site Approval for exterior signs, canopy and awnings for California Pizza Kitchen (Vallco Fashion Park)DRC Admin. ASA-2007-03, TR-2007-02, EXC-2007-06, V-2007-02, EA- 2007-02 Michael Ducote 117 apartment units, park, parking exception, variance from side, front and rear yard setbacks (Villa Serra) pp 117 apartment units, a public park, a recreational facility, and leasing office within an existing apartment complex (Villa Serra/The Grove),for a total of 505 units with exception to side, front and rear setback, a parking variance and associated tree removals.CC PC ASA-2007-04, U-2007-02, TM-2007-05, EA-2007-03, TR-2007-09 Metro Planning Group 6 unit single family PD Architectural Site Approval, Use Permit and Tentative Map for a new six-unit single family residential planned development with associated Tree Removals.CC CC ASA-2007-05, U-2007-03, TM-2007-08, TR-2007-03, EXC-2007-08, EA-2007-05 Clifford Chang Retail building, parking garage (Tantau Retail) Architectural Site Approval of a proposed 10,650 square foot retail building and one-level parking garage on an existing office site, Tentative Map to subdivide a parcel into two with associated Tree Removals and an exception to the front setback in the Heart of the City Specific Plan Area.CC CC CC approval since Heart of the City Exception required. ASA-2007-06, U-2007-04, TM-2007-09, EA-2007-06 Karen Ngo 4 story hotel, 3 story mixed use retail (Oaks Hotel & Retail bldgs) Architectural and Site approval and Use Permit for a proposed 4-story, 122 room hotel, 3-story 56,194 square foot mixed use retail/office/convention center building over an underground parking podium and site improvements at an existing shopping center. Tentative Map to subdivide one parcel into two and condominiumizing one parcel further.CC CC ASA-2007-07 Strike, Inc.Exterior signs Architectural and Site Approval for exterior signs at Cupertino Square (formerly Vallco Fashion Park)DRC Admin. Comments Group RecommendationApplication(s)Name Brief Description Current Approval Description 285 Comparison of Current and Recommended Approval Authorities for projects between 2007 and 2009 2 of 12 Comments Group RecommendationApplication(s)Name Brief Description Current Approval Description ASA-2007-08 Susan Chen Outdoor dining area along SCB Architectural Site Approval for an outdoor dining area at an existing restaurant DRC Admin. ASA-2007-09, U-2007-05, TM-2007-10 Terry Brown 2 unit single family PD on Pasadena Architectural Site Approval, Use Permit and Tentative Map for two single family residences, 2,838 square feet each, in a planned development zoning district PC Admin. ASA-2007-10, U-2007-06, EA-2007-08 Brian Replinger 2 single story retail bldgs, parking garage (Cupertino Village) Architectural Site Approval and Use Permit for two one-story retail buildings totaling 24,455 square feet and a two-level parking deck CC PC ASA-2007-12, TM-2007-11, U- 2007-08 Jyan-Ping Lily Chang 2 new houses on Pasadena Architectural Site Approval, Use Permit and Tentative Map for two, two-story 2,193 square foot single family residences PC Admin. ASA-2007-14, U-2007-09, TR-2007-06, EA-2007-10 Tantau Investments, LLC 2 story office building Architectural Site Approval and Use Permit for a 100,000 square foot, two-story office building and site improvements with associated tree removals.CC PC ASA-2007-15, U-2007-10 Jody Chan New daycare center (Legend Learning Ctr) Architectural Site Approval for site modifications and Use Permit for a Day Care Center/Specialized School PC PC ASA-2007-16 Mahesh Patel Landscaping, parking modifications (Furniture 2000) Architectural Site Approval for façade, landscaping and parking lot modifications for an existing commercial building PC PC ASA-2007-17 Keith Kolkar Final Architectural details and Landscape improvements (Las Palmas) Architectural Site Approval for final building and landscaping plans for an approved residential development DRC Admin. ASA-2007-18, M-2007-03 Union Church of Cupertino New 5,000 s.f. building Architectural Site Approval and Modification of a Use Permit for a new 5,000 square foot building PC Admin. ASA-2007-19 Li-Sheng Fu New 2 story duplex Architectural Site Approval for a new two-story 3,676 duplex DRC Admin. EXC-2007-01 Jonathan Hobbs Sign exception (Symantec) Sign Exception to exceed the allowed height for a wall sign DRC Admin. 286 Comparison of Current and Recommended Approval Authorities for projects between 2007 and 2009 3 of 12 Comments Group RecommendationApplication(s)Name Brief Description Current Approval Description EXC-2007-02 Jennifer Jodoin Hillside Exception for 2nd story addition (DeCarli home) Hillside Exception to construct a 689 square foot second story addition to an existing residence for a total of 6,870 square feet, which exceeds the 6,500 square feet allowed, and an exception to build on a prominent ridgeline PC PC EXC-2007-03, DIR-2007-05 Aaron Kelsey Sign exception (Marketplace) Sign Exception to exceed the allowed sign height for sign on a tower element DRC Admin. EXC-2007-04 Amar Gupta Fence exception Fence Exception to construct a driveway gate at an existing single family residence DRC Admin. EXC-2007-07 Whole Foods Sign exception Sign Exception for two additional wall signs, with two on one wall face, and an exception to exceed the allowed height of 48" inches DRC Admin. EXC-2007-09, EA-2007-07 Kathy Yates Hillside exception Hillside Exception to construct a new 5,765 sq. ft. residence on slopes greater than 30% slope PC PC EXC-2007-10 Sasha Cukic Fence exception Fence exception to construct a fence in the front setback area of a single-family residence DRC Admin. INT-2007-01 Greg Malley Car wash consistent w/ PD, Rec & Ent zone (Homestead Lanes) Interpretation that a proposed car washing facility is consistent with the Planned Development, Recreation/Entertainment Zoning District PC Admin. M-2007-01 Masayoshi Fujioka Extend hours of operation (Kiku Sushi) Modification to a Use Permit (20-U-99) to extend the hours of operation of an existing restaurant to 9:30 PM (with patrons/employees leaving by 11 PM) Monday through Friday and 10 PM on Friday and Saturday (with patrons/employees leaving by 1AM)PC PC M-2007-02, U-2007-11 Evershine Clarify food services allowance at Marketplace Modification to an existing Use Permit (16-U-76) to modify the conditions under which food services businesses will be allowed in the Marketplace Shopping Center along the rear service corridor CC PCTM-2007-02, ASA-2006-22, U-2006-13, Z-2006-05, EA- 2006-18 Lawrence Guy 22 residential units (Las Palmas) Tentative Map to subdivide a 1.1 acre parcel into 21 parcels and one common parcel CC CC 287 Comparison of Current and Recommended Approval Authorities for projects between 2007 and 2009 4 of 12 Comments Group RecommendationApplication(s)Name Brief Description Current Approval Description TM-2007-03, V-2007-03 Tracy Hsu 2 lot subdivision Tentative Map to subdivide a .46 acre parcel into two parcels, 8,375 square feet and 11,470 square feet respectively CC PC TM-2007-04 Rick Bleszynski 3 lot subdivision Tentative Map to subdivide two parcels into three parcels, ranging from 6,650 to 7,047 square feet PC Admin. TM-2007-06 Terry Brown 3 parcel condominiums (Hu) Tentative Map to subdivide an approved mixed use development into three parcels PC Admin. TM-2007-07 Terry Brown 3 parcel condominiums (Peng) Tentative Map to subdivide an approved mixed use development into three parcels PC Admin. TM-2007-12 Terry Brown 3 parcel condominiums (Ghazvini) Tentative Map to create three condominiums units, one commercial and two residential, on a previously approved mixed-use development PC Admin. V-2007-01, EXC-2006-14, TM- 2006-12 Jitka Cymbal 2 lot subdivision with variance to allow 50 foot wide lots where 60 foot is required Tentative Map to subdivide one lot into two with variance to allow 50 foot wide lots where 60 foot is required.PC PC ASA-2008-02, EXC-2008-09 Ray Newcomer Exterior changes (TGI Friday) Architectural and Site approval for a new exterior entrance and minor exterior changes to an existing restaurant (TGI Friday's) located at Cupertino Square Shopping Center DRC Admin. ASA-2008-03 Mike Ducote Landscape improvements and final green building measures (Villa Serra) Architectural and Site approval of a landscape street improvement plan and final details of the Green Building measures according to the conditions of approval as directed by the City Council at their meeting of July 3, 2007 DRC Admin. ASA-2008-04 Brian Replinger Final building and landscape details (Cupertino Village) Architectural and Site approval to finalize the architectural, site and landscaping plans for an approved Use Permit (U-2007-06)DRC Admin. 288 Comparison of Current and Recommended Approval Authorities for projects between 2007 and 2009 5 of 12 Comments Group RecommendationApplication(s)Name Brief Description Current Approval Description ASA-2008-05, EA-2008-06, TR-2008-06, M-2008-03 Tim Kelly 3 new two story office buldings (Results Way) Architectural and Site approval and Modification of an existing Use Permit for the demolition of five buildings containing about 139,632 square feet and the development of three new, two-story office buildings containing 155,500 sqaure feet, a two-level, 204 space parking garage, surface parking lot and landscaping improvements at an existing 19.8 acre office park (Results Way Campus) and associated Tree Removals.CC PC ASA-2008-06, EA-2008-07, U-2008-01, TR-2008-08, TM- 2008-01 Kevin Dare/500 Forbes LLC Mixed use- retail, commercial, hotel, housing (Main Street) Architectural and Site Approval for a master plan for a mixed-use development consisting of approximately: 147,000 square feet of retail commercial, 100,000 square feet of office, a 150 room hotel, a 160 unit senior (age restricted) housing, facility, 145,000 square foot athletic club, a four level parking garage and a 1.6 acre park/town square. (A project alternative consists of approximately 205,000 square feet of office and a 250 room hotel in place of the athletic club).CC CC ASA-2008-07, EA-2008-08, U-2008-02, TR-2008-09 Rajeev Chopra 5 story hotel (Shashi Hotel) Architectural and Site Approval for a proposed 5- story, 138-room hotel of approximately 82,000 square feet that includes a restaurant, bar, lounge, and conference rooms built over a two-level underground parking podium that contains tandem parking.CC PC ASA-2008-08 Tom Dyer Landscape and minor building improvements (St.Jude’s) Architectural and Site Approval for landscaping, parking improvements, and accessory structures at an existing church.DRC Admin. ASA-2008-09 Christine Liang New chiller bldg, seismic upgrades (HP) Architectural and Site Approval for the addition of a new chiller building to support a new lab, seismic upgrades to the existing building, a building façade change, tree removal and upgraded landscaping plan for Building 47.DRC Admin. 289 Comparison of Current and Recommended Approval Authorities for projects between 2007 and 2009 6 of 12 Comments Group RecommendationApplication(s)Name Brief Description Current Approval Description EXC-2008-01 Evershine Sign exception (Marketplace) Sign Exception to exceed the number of allowed tenant names on a monument sign, to exceed the allowed maximum sign height and to exceed the number of allowed signs for several tenants as part of a sign program DRC Admin. EXC-2008-02, RM-2008-07 Michael Abler R1 setback exception Single Family Residential Exception to construct a portion of a side-yard addition to within five feet of the north, side property line DRC DRC EXC-2008-03 Tenny Tsai Sign exception (Civic Park, LLC) Sign Exception for a monument sign in the public right of way and second wall sign DRC Admin. EXC-2008-04 Barbara Ford Sign exception (Jiffy Lube) Sign Exception for a proposed logo to exceed the allowed height (Jiffy Lube)DRC Admin. EXC-2008-05 Karen Ngo Sign exception (Cupertino Landing former Any Mountain) Sign Exception for a ground sign more than 8 feet tall measuring from the sidewalk grade and a ground sign area exceeding 100 square feet DRC Admin. EXC-2008-06 Susan Chen R1 setback exception Single Family Residential Exception to construct a portion of a single story addition to within five feet of the non-cornforming side yard setback DRC DRC EXC-2008-10 John Jeong R1 setback exception Exception to the Single Family Residential Development regulations to reduce the front yard setback on an irregularly shaped lot by approximately one foot resulting in an approximately 19 foot front yard setback for a portion of a new two car garage at an existing home DRC DRC EXC-2008-11, R-2008-18 Sabrina Ellis 2nd floor exposed wall exception in R1 Residential Design Exception to allow more than 50% of a second floor, exposed wall height to exceed 6 feet Admin.Admin. EXC-2008-12, R-2008-19 Mohsen Jalili Setback exception Residential Design Review Exception to reduce the required 10 foot surcharge to 4.5 feet for a new DRC DRC 290 Comparison of Current and Recommended Approval Authorities for projects between 2007 and 2009 7 of 12 Comments Group RecommendationApplication(s)Name Brief Description Current Approval Description EXC-2008-13 Breanna Chamberlin Set back exception Residential Design Exception for a portion of a 910 square foot single story addition to encroach into the required front yard setback DRC DRC 291 Comparison of Current and Recommended Approval Authorities for projects between 2007 and 2009 8 of 12 Comments Group RecommendationApplication(s)Name Brief Description Current Approval Description EXC-2008-14, TR-2008-05 Amy Cheng Hillside exception for a home Hillside Exception for a new two story, 3304 square foot, single family residence on a slope greater than 30%.PC PC EXC-2008-15 Kyi Chow Shar Sign exception (Evertrust Bank at Crossroads Shopping Center) Sign Exception request to allow signs to exceed the number and maximum hight limitations at an existing commercial building (EverTrust Bank) located at 20510 Stevens Creek Boulevard.DRC Admin. EXC-2008-16 Quynh Tran Garage exception Exception request to construct a one-car garage where a two-car garage is required by ordinance at an existing single family residence.DRC DRC EXC-2008-17, V-2008-01, DIR-2008-37 Dayna Aguirre Height exception for a wireless antenna/personal communication facility (T-Mobile) Height Exception to allow 8 panel antennas to be mounted at a height of 94 feet 4 inches and a microwave dish to be mounted at a height of 85 feet 6 inches on a lattice tower where 55 feet is allowed.PC PC M-2008-01, TR-2008-04 Jennifer Jodoin Modification to hillside exception (De Carli home) Modification of a Hillside Exception (EXC-1995-06) to allow a 328 square foot second story addition to an existing residence on a prominent ridgeline PC PC M-2008-04 Mike Ducote Modification to required fees (Villa Serra Apts) Modification of the Architecture and Site approval (ASA-2007-03) to amend the fees required by the conditions of approval.CC CC M-2008-05 Jackie Horton Modification to parking agreement (Apple) Modification to a Use Permit (11-U-77) to allow a shared parking agreement between two office buildings at 20400 Mariani Avenue and 10500 North De Anza Boulevard.PC Admin. TM-2008-02 Terry Brown 3 parcel condominiums Tentative Map to divide a new mixed-use building into 2 commercial units and 1 residential condominium unit.PC Admin. 292 Comparison of Current and Recommended Approval Authorities for projects between 2007 and 2009 9 of 12 Comments Group RecommendationApplication(s)Name Brief Description Current Approval Description ASA-2009-01, U-2009-01 Eugene Sakai New commercial, modification to existing bldg (Learning Game) Architectural and Site Approval and Use Permit for construction of a 2,159 square foot retail commercial building, conversion of an existing 2,917 square foot former auto repair buidling into retail commercial and associated site improvements.PC Admin. ASA-2009-02, U-2009-02 Muthana Ibrahim New car wash (Valero Gas Station) Architectural and Site and Use Permit to allow the construction of a new automated carwash tunnel, a new trash enclosure and enhancements to the parking lot, and new landscaping features at an existing gas station.PC PC ASA-2009-03 Barre Barnes New house in Oak Valley Architectural & Site Approval for a proposed new 5,202 square foot, two-story, single family residence in a Planned Development Residential DRC Admin. ASA-2009-04, EXC-2009-02 Dayna Aguirre Height exception for a wireless antenna/personal communication facility (T-Mobile) Architectural & Site Approval and Height Exception to allow the replacement of an existing 60-foot tall baseball field light pole with a wireless telecommunications facility, consisting of a base equipment enclosure and a 75-foot tall monopole that will carry six panel antennas and the baseball field lights.PC PC ASA-2009-05, U-2009-05 Tim Raduenz Set back exception & addition Architectural & Site Approval and Use Permit for a 441 square foot garage within 3 feet of the sideyard setback and a 368 square foot residential addition with a reduced rearyeard setback located in a light industrial zone.DRC DRC ASA-2009-06, TR-2009-17 Greg Murakami Exterior modification to office building Architectural & Site Approval for exterior building modifications and landscaping improvements and Tree Removals at an existing office building.DRC Admin. 293 Comparison of Current and Recommended Approval Authorities for projects between 2007 and 2009 10 of 12 Comments Group RecommendationApplication(s)Name Brief Description Current Approval Description ASA-2009-07, U-2009-07, TM-2009-05 Terry Brown 2 new houses on Pasadena (Adzich) Architectural & Site Approval and Use Permit to construct two new, two-story single family residences with two new detached granny units in a Planned Development District.Tentative Map to subdivide a parcel in to two.PC Admin. ASA-2009-08, U-2009-08, EA-2009-11, TR-2010-08 Ken Rodrigues 4 new commercial bldgs (PW Market) Architectural and Site Approval and Use Permit to allow the demolition of 95,666 square feet of existing commercial space and the construction of 146,458 square feet of new commercial space consisting of four new commercial satellite buildings and three new major tenant spaces in an existing shopping center. The approval also allows a 24-hour drive-through pharmacy and a second drive-through at one of the satellite buildings to operate from 6:00 a.m. to 11:00 p.m including associated Tree Removals.CC PC EXC-2009-07, DIR-2009-20 Gordon Bell Height exception for a wireless antenna/personal communication facility (Clearwire) Height Exception to allow three panel antennas to be mounted at a height of 149 feet and three microwave dishes mounted at a height of 148 feet where 55 feet is the maximum height allowed.PC PC PC approval since height exception was requested. EXC-2009-08, DIR-2009-21 Gordon Bell Height exception for a wireless antenna/personal communication facility (Clearwire) Height Exception to allow three panel antennas to be mounted at a height of about 158 feet and three microwave dishes mounted at a height of about 157 feet on a PG&E lattice tower extension where 55 feet is the maximum height allowed.PC PC PC approval since height exception was requested. 294 Comparison of Current and Recommended Approval Authorities for projects between 2007 and 2009 11 of 12 Comments Group RecommendationApplication(s)Name Brief Description Current Approval Description EXC-2009-09, DIR-2009-36 Gordon Bell Height exception for a wireless antenna/personal communication facility (Clearwire) Height exception for antennas to be mounted at a height of 97 & 98 feet where 55 feet is the maximum.PC PC PC approval since height exception was requested. M-2009-01 Tenny Tsai Modification of uses (Civic Park) Modification to an existing Use Permit (U-2002-06) to amend the conditions to allow specialized tutorial or studio uses, and the amount of office/retail uses along De Anza Boulevard. Includes a reassessment of the shared parking arrangement within the parking structure.CC PC M-2009-02 Tim Kelly Modification to Use Permit to extend permit for five years, phasing, clarifying conditions and modification of traffic and signal conditions (Results Way) Major Amendment modifying the Architectural and Site Approval (ASA-2008-05), Use Permit Modification (M-2008-03), Director’s Minor Modification (DIR-2008-32) and Tree Removal Permit (TR-2008-06) for the purpose of extending the expiration date of these approvals for six years, phasing construction, clarifying conditions of approval, and modifying the traffic and signal improvement condition.CC PC M-2009-03 Suna Lai New Childcare facility (Growing Tree) Modification to a Use Permit (49-U-87) to allow an approximately 6,670 square foot preschool & daycare facility to operate at an existing commercial building. The application also includes a new outdoor play area in a section of the existing rear parking lot.CC PC M-2009-05 Anjali Arora New afterschool program (Bethel Lutheran) Modification to the Use Permit (6-U-86) to allow an afterschool program for children at the existing Bethel Lutheran Church PC PC 295 Comparison of Current and Recommended Approval Authorities for projects between 2007 and 2009 12 of 12 Comments Group RecommendationApplication(s)Name Brief Description Current Approval Description M-2009-06 Elaine Chong Remove a condition of approval re: easement (Metropolitan) Modification of Use Permit (U-2003-04, Condition #22) to remove the Public Pedestrian Easement at the Metropolitan at Cupertino.CC PC M-2009-07 Catherine Chen Modification of uses to remove "retail only" condition (Adobe Terrace) Modification to an existing Use Permit (U-2004-01) to amend the conditions to allow commercial/office uses where only retail had been allowed.CC PC M-2009-08 Kevin Pasquinelli Modification of uses to allow a private school (West Valley Presbyterian Church) Modification to a previously approved Use Permit (25- U-83) to allow the operation of a Mandarin Immersion grammar school.PC PC TM-2009-02, EA-2009-06 Bigler 4 lot subdivision Tentative Map to subdivide a 13.47 acre parcel into four parcels ranging from 2.86 acres to 3.65 acres each.PC PC TM-2009-03 Brian Kelly 3 lot subdivision (Amelia Ct) Tentative Map to subdivide an approximately 42,925 square foot parcel into three parcels ranging from 12,049 to 14,470 square feet.PC Admin. TM-2009-04 Terry Brown 3 lot subdivision - condo Tentative Map request to subdivide one parcel into three commercial condominium units, one residential condominium unit, and a common area lot.PC Admin. U-2009-04 David O’Mara Full bar in a restaurant (Aqui) Use Permit to allow a full bar to operate inside an existing restaurant.PC PC U-2009-09 Cindy Cheng Daycare center (Kiddie Academy) Use Permit to allow an 8,400 square foot daycare facility to operate at an existing commercial building. The application also includes a new outdoor play area in the existing rear parking lot.CC PC 296 297 298 299 COMMUNITY DEVELOPMENT DEPARTMENT CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3308 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: February 15, 2011 Subject Reconsideration petition for a City Council denial of an appeal of an approved parking pad to be located at a duplex located at 965-967 Miller Avenue. Recommended Action Conduct a hearing on a petition for reconsideration regarding the City Council’s decision on the duplex parking pad at 965-967 Miller Avenue. Adopt the draft resolution, Denying the Petition of Erwin Wolf seeking Council reconsideration of its decision to approve the duplex parking pad at 965-967 Miller Avenue (See Attachment A). Description Petition to reconsider a City Council decision to deny an appeal of a Director’s Minor Modification Approval to allow a parking pad in front of a duplex located at 965-967 Miller Avenue. Discussion Background The following is a summary of the various events that occurred regarding this project leading up to the reconsideration request: Sept. 23, 2010 Community Development Director approved the duplex parking pad with a Director’s Minor Modification, DIR-2010-30 (Attachment B). Oct. 5, 2010 Project approval appealed by adjacent property owner Erwin Wolf (Attachment C). Dec. 14, 2010 Appeal heard by Planning Commission who recommended approval of the appeal on a 3-2-0 vote (Attachment D, E, & F). Jan. 4, 2011 Appeal heard by City Council, who denied the appeal on a 5-0 vote (Attachment G, H). Jan. 18, 2011 Appellant Erwin Wolf files petition for reconsideration (Attachment I). 300 Basis for the Reconsideration The City’s Municipal Code, section 2.08.096, provides procedures for interested parties to petition the City Council to reconsider its decisions. A petition for reconsideration shall specify in detail each and every ground for reconsideration. Failure of a petition to specify any particular ground or grounds for reconsideration precludes that particular omitted ground or grounds from being raised or litigated in a subsequent judicial proceeding. The grounds for reconsideration are limited to the following: 1) An offer of new relevant evidence which, in the exercise of reasonable diligence, could not have been produced at any earlier city hearing. 2) An offer of relevant evidence which was improperly excluded at any prior city hearing. 3) Proof of facts which demonstrate that the City Council proceeded without, or in excess of its jurisdiction. 4) Proof of facts which demonstrate that the City Council failed to provide a fair hearing. 5) Proof of facts which demonstrate that the City Council abused its discretion by: a) Not preceding in a manner required by law; and/or b) Rendering a decision which was not supported by findings of fact; and/or c) Rendering a decision in which the findings of fact were not supported by the evidence. The petition for reconsideration consists of one page. Reconsideration of this item constitutes the third full hearing of this matter conducted by the City. The petitioner has made claims for reconsideration under the above referenced criteria #5b and #5c. The City’s findings of fact on each of these criteria are delineated below. Finding: With respect to grounds 5b and 5c, the petitioner has not provided any proof of facts that demonstrate the Council abused its discretion by rendering a decision which was not supported by findings of fact, or rendering a decision in which the findings of fact were not supported by the evidence. Petition Response The petitioner alleges that there are errors in the City staff report: 1) Staff states there are numerous Miller Avenue duplexes with parking in the front setback. However, there is only one other set of Miller Ave. duplexes like this one with the parking in the rear. In both cases, there are no parking pads in the landscaped front setback. Driveways of other duplexes are not front setbacks. This proposed pad would be the only one on the front setback. 2) The assumption that no vehicle/pedestrian/bicycle accidents happened is that this design is safe- is 1) There are 32 duplexes that front on Miller Avenue between Atherwood Avenue & Bollinger Road. 28 duplexes have direct garage access to Miller Avenue or a side street and four duplexes have parking in the rear. The petitioner misunderstands what a front setback means, which is a designated building setback from a front property line, regardless if that front setback area is used for landscaping, driveways or parking. 2) It is a fact that there have been no reported accidents of vehicles backing into pedestrians or bicyclists along this stretch of Miller Avenue over the last 5 years. Most single-family and two-family residential houses in Cupertino require 301 wrong. 3) Duplexes with garages that front Miller Avenue have cars that park much closer to the garage door, leaving ample room for safe passage. The proposed pad with car parked therein would totally obstruct the view of the sidewalk and of any pedestrian or bicyclist for vehicles exiting from the driveway. vehicles to back into the public street. Based on the statistics and the proposed design, staff noted that the project didn’t appear to create a significant safety risk. 3) At its January 4, 2011 hearing, the City Council lengthened the parking pad by incorporating the abutting pedestrian path, increasing its length from 17 feet to about 21feet. The longer length meets City standards for parking stall length. The parking pad would not hang over the public sidewalk. It is illegal for a parked vehicle to park over a public sidewalk. _____________________________________ Prepared by: Colin Jung, AICP, Senior Planner Reviewed by: Gary Chao, City Planner; Aarti Shrivastava, Community Development Director; Carol Korade, City Attorney Approved for Submission by: David W. Knapp, City Manager Attachments: A. City Council draft Resolution and Exhibit 1 B. Director’s Minor Modification Approval dated Sept. 23, 2010 C. Appeal by Erwin Wolf dated Oct. 5, 2010 D. Planning Commission Staff Report dated Dec. 14, 2010 E. Draft Planning Commission Meeting Minutes of Dec. 14, 2010 F. Planning Commission Resolution No. 6619 G. City Council Staff Report dated Jan. 4, 2011 H. City Council Meeting Action Minutes of Jan. 4, 2011 I. Petition for Reconsideration filed Jan. 18, 2011 302 ATTACHMENT A RESOLUTION NO. 11-___ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO DENYING THE PETITION OF ERWIN WOLF SEEKING COUNCIL RECONSIDERATION OF ITS DECISION TO DENY AN APPEAL OF DIR-2010-30, A DIRECTOR’S MINOR MODIFICATION TO ALLOW A PARKING PAD IN FRONT OF A DUPLEX AT 965-967 MILLER AVENUE WHEREAS, on January 4, 2011, the Cupertino City Council received a staff report and recommendation to deny an appeal of a Director’s Minor Modification approval of a parking pad in front of an existing duplex at 965-967 Miller Avenue. WHEREAS, the Cupertino City Council held a public hearing and at the conclusion of the hearing denied the appeal filed by Erwin Wolf on a 5-0 vote at its meeting of January 4, 2011 . WHEREAS, the Cupertino City Council's decision was within its discretion and made at a properly noticed public meeting. WHEREAS, Erwin Wolf requested that the City Council reconsider its decision under the provisions of Section 2.08.096 of the City's municipal code; and WHEREAS, the City Council has considered all relevant evidence presented by the parties at all hearings, including evidence presented at the February 15, 2011 reconsideration hearing. NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: 1. The petitioners' Reconsideration Petition is defective on its face in that it does not offer proof of facts as required by Municipal Code Section 2.08.096. 2. The petitioners have failed to demonstrate that the City Council abused its discretion by denying the appeal of a Director’s approval (file no. DIR-2010-30) of a parking pad for an existing duplex at 965-967 Miller Avenue. (See Municipal Code § 2.08.096(B)(5).) Specifically, the City Council determines that: a. The City Council's decision is supported by findings of fact attached as Exhibit 1. b. The findings of fact related to the City Council's decision were supported by substantial evidence in the record of proceedings. 3. The petitioners' Petition for Reconsideration of the City Council's decision of January 4, 2011 on item __ is DENIED, thereby affirming the original decision. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 15th day of February 2011, by the following vote: 303 Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: ____________________ _______________________ City Clerk Mayor, City of Cupertino 304 EXHIBIT 1 CITY COUNCIL FINDINGS IN RESPONSE TO PETITION FOR RECONSIDERATION Cupertino Municipal Code section 2.08.096 states: “A petition for reconsideration shall specify in detail each and every ground for reconsideration. Failure of a petition to specify any particular ground or grounds for reconsideration precludes that particular omitted ground or grounds from being raised or litigated in a subsequent judicial proceeding. The grounds for reconsideration are limited to the following: 1) An offer of new relevant evidence which, in the exercise of reasonable diligence, could not have been produced at any earlier city hearing. 2) An offer of relevant evidence which was improperly excluded at any prior city hearing. 3) Proof of facts which demonstrate that the City Council proceeded without, or in excess of its jurisdiction. 4) Proof of facts which demonstrate that the City Council failed to provide a fair hearing. 5) Proof of facts which demonstrate that the City Council abused its discretion by: a) Not proceeding in a manner required by law; and/or b) Rendering a decision which was not supported by findings of fact; and/or c) Rendering a decision in which the findings of fact were not supported by the evidence.” Original Petition The petition for reconsideration consists of one page. Reconsideration of this item constitutes the third full hearing of this matter conducted by the City. The petitioner has made claims for reconsideration under the above referenced criteria #5b and #5c. The City’s findings of fact on each of these criteria are set forth below. Finding: With respect to grounds 5b and 5c, the petitioner has not provided any proof of facts that demonstrate the Council abused its discretion by rendering a decision which was not supported by findings of fact, or rendering a decision in which the findings of fact were not supported by the evidence. Petition Response The petitioner alleges that there are errors in the City staff report: 1) Staff states there are numerous Miller Avenue duplexes with parking in the front setback. However, there is only one other set of Miller Ave. duplexes like this one with the parking in the rear. In both cases, there are no parking pads in the landscaped front setback. Driveways of other duplexes are not 1) There are 32 duplexes that front on Miller Avenue between Atherwood Avenue & Bollinger Road. 28 duplexes have direct garage access to Miller Avenue or a side street and four duplexes have parking in the rear. The petitioner misunderstands what a front setback means, which is a designated building setback from a front property line, regardless if that front setback area is used for landscaping, driveways or parking. 305 front setbacks. This proposed pad would be the only one on the front setback. 2) The assumption that no vehicle/pedestrian/bicycle accidents happened is that this design is safe- is wrong. 3) Duplexes with garages that front Miller Avenue have cars that park much closer to the garage door, leaving ample room for safe passage. The proposed pad with car parked therein would totally obstruct the view of the sidewalk and of any pedestrian or bicyclist for vehicles exiting from the driveway. 2) It is a fact that there have been no reported accidents of vehicles backing into pedestrians or bicyclists along this stretch of Miller Avenue over the last 5 years. Most single-family and two-family residential houses in Cupertino require vehicles to back into the public street. Based on the statistics and typical designs, staff noted that the project didn’t appear to create a significant safety risk. 3) At its January 4, 2011 hearing, the City Council lengthened the parking pad by incorporating the abutting pedestrian path, increasing its length from 17 feet to about 21 feet. The longer length meets City standards for parking stall length. The parking pad would not hang over the public sidewalk. It is illegal for a parked vehicle to park over a public sidewalk. 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 COMMUNITY DEVELOPMENT DEPARTMENT CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3308 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: February 15, 2011 Subject Reconsideration petition for a City Council denial of an appeal of an approval for a personal wireless service facility consisting of antennas mounted on a monopine and an equipment enclosure in the rear parking lot of the Results Way Business Park. Recommended Action Conduct a hearing on the petition for reconsideration regarding the City Council’s decision on the personal wireless service facility at the Results Way Business Park. Adopt the draft resolution, Denying the Petition of Grace Chen and Guo Jin seeking Council reconsideration of its decision to deny the appeal, and thus approve the personal wireless service facility at the Results Way Business Park (See Attachment A). Description Petition to reconsider a City Council decision to deny an appeal of the Planning Commission approvals of the following: Use Permit (U-2010-03) request to allow a personal wireless service facility, consisting of twelve panel antennas mounted on a 74 foot tall monopine and associated base equipment located at the Results Way office park. Height Exception (EXC-2010-04) request to allow antennas to be mounted on a monopine at a height of 67 feet or less where 55 feet is allowed. Tree Removal (TR-2010-31) request to allow the removal and replacement of four Coastal Redwood trees associated with the proposed personal wireless service facility. Property Location: Results Way (rear parking lot)/APN 357-20-042 Applicant: Dave Yocke, Trillium Telecom (for AT&T Mobility) Petitioners: Grace Chen & Guo Jin Property Owner: ECI Two Results, LLC 327 Discussion Background The following is a summary of the various events that occurred regarding this project leading up to the reconsideration request: Sept. 14, 2010 Planning Commission approved the entitlements for the personal wireless service facility on a 4-1 vote (Attachments B, C, D & L). Sept. 28, 2010 Project approval appealed by three adjacent neighbors, Allen Wang, Grace Chen, Guo Jin (Attachment E). Nov. 1, 2010 Appeal heard by City Council at two meetings who denied the Jan. 4, 2011 appeal on a 4-1 vote (Attachments F, G, H & I). Jan. 18, 2011 Appellants Grace Chen & Guo Jin file petition for reconsideration (Attachment J). Basis for the Reconsideration The City’s Municipal Code, section 2.08.096, provides procedures for interested parties to petition the City Council to reconsider its decisions. A petition for reconsideration shall specify in detail each and every ground for reconsideration. Failure of a petition to specify any particular ground or grounds for reconsideration precludes that particular omitted ground or grounds from being raised or litigated in a subsequent judicial proceeding. The grounds for reconsideration are limited to the following: 1) An offer of new relevant evidence which, in the exercise of reasonable diligence, could not have been produced at any earlier city hearing. 2) An offer of relevant evidence which was improperly excluded at any prior city hearing. 3) Proof of facts which demonstrate that the City Council proceeded without, or in excess of its jurisdiction. 4) Proof of facts which demonstrate that the City Council failed to provide a fair hearing. 5) Proof of facts which demonstrate that the City Council abused its discretion by: a) Not preceding in a manner required by law; and/or b) Rendering a decision which was not supported by findings of fact; and/or c) Rendering a decision in which the findings of fact were not supported by the evidence. The petition for reconsideration consists of three pages. Reconsideration of this item constitutes the fourth full hearing of this matter conducted by the City. The grounds for the reconsideration are summarized below. It should be noted that three out of the four claims do not bear any relationship to the criteria referenced above. The City’s findings of fact on each of claims and the criterion are delineated below. 328 Finding: There are three claims that do not bear any relationship to the Reconsideration criteria found in municipal code section 2.08.096(B). Petition Response Screening landscaping for the monopine needs to follow strict aesthetic guidelines. We request the addition of a condition to the approval that the “additional screening trees at the northern property line” will conform to that of the approved redevelopment plans of the Results Way office park and any revisions or modifications of those plans. Landscape screening plans are unclear and should be open for public view. Petitioners seek to add and refine development conditions that have already been adopted by the City Council (Attachment K) which does not relate to the reconsideration criteria. Petitioners’ interests are already addressed by Council’s added condition #6: “require that tree planting conform to the approved development plans of the results way office park.” In addition to #6, City Council added six more conditions pertaining to landscaping. Staff has already agreed to allow Astoria Townhome owners to informally review the landscape plans when they are submitted. Request to add a new condition to the approval requiring applicant to pay $30,000 to the Astoria Homeowners Association for additional irrigation, trees, fencing and related matters connected to the visual screening of the wireless facility. Petitioners seek to add new development condition to City Council approval, which does not relate to the reconsideration criteria. There are no legal grounds to add this condition. We are talking to the property owners of 10340 & 10420 Bubb Road to explore a lease for a cell site. This alternative site should have similar criteria as compared to the approval with less impact to residents. We request additional time allowance There is no evidence or facts that relate to the reconsideration criteria. The request for continuance should be denied. The applicant already evaluated 10420 Bubb Road in its alternative site analysis (PC staff report). Applicant cited a lack of room and proximity to the freeway where AT&T already has coverage. Finding: The petitioners have not offered any new evidence to demonstrate that Monta Vista High School has become a viable alternative site for wireless facilities - Cupertino Municipal Code, section 2.08.096(1). Petition Response The Fremont Union High School District has recently entered into leases for cell sites at several other high schools in the District. More than 5 years have passed since AT&T approached FUHSD about Monta Vista High School (H.S.). Given what has happened at other area high schools, AT&T should go back and check about antenna opportunities at The petitioners have not presented any evidence that FUHSD would be willing to consider Monta Vista H.S. for cell sites again. The 2005 City approval of a wireless facility at Monta Vista H.S. expired in 2007, so the applicant would need to go through another public entitlement process again. A request to place a wireless facility at a school site is not 329 Monta Vista since District criteria may have evolved. before the Council. Based on the above findings and the fact that the petitioners failed to provide relevant grounds/evidence for the reconsideration, staff recommends that the City Council deny the reconsideration request and uphold the Planning Commission's decision. ____________________________________ Prepared by: Colin Jung, AICP, Senior Planner Reviewed by: Gary Chao, City Planner; Aarti Shrivastava, Community Development Director, Carol Korade, City Attorney Approved for Submission by: David W. Knapp, City Manager Attachments: A. City Council draft Resolution and Exhibit 1 B. Planning Commission Resolution No. 6604 C. Planning Commission Staff Report dated 9/14/10 D. Planning Commission meeting minutes from 9/14/10 E. Appeal filed by Allen Wang, Grace Chen & Guo Jin on 9/28/10 F. City Council staff report dated 11/1/10 G. City Council meeting action minutes of 11/1/10 H. City Council staff report dated 1/4/11 I. City Council meeting action minutes of 1/4/11 J. Petition for Reconsideration filed Jan. 18, 2011 K. City Council Action Letter dated 1/6/11 L. Approved plan set 330 ATTACHMENT A RESOLUTION NO. 11-___ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO DENYING THE PETITION OF GRACE CHEN & GUO JIN SEEKING COUNCIL RECONSIDERATION OF ITS DECISION TO DENY AN APPEAL OF U-2010-03, EXC- 2010-04 & TR-2010-31, A USE PERMIT, HEIGHT EXCEPTION & TREE REMOVAL TO FACILITATE THE DEVELOPMENT OF A PERSONAL WIRELESS SERVICE FACILITY AT THE RESULTS WAY OFFICE PARK WHEREAS, on January 4, 2011, the Cupertino City Council received a staff report and recommendation to deny an appeal of a Use Permit, Height Exception and Tree Removal approvals to facilitate the development of a personal wireless service facility at the Results Way Office Park. WHEREAS, the Cupertino City Council held a public hearing and at the conclusion of the hearing denied the appeal filed by Allen Wang, Grace Chen and Guo Jin on a 4-1 vote at its meeting of January 4, 2011 . WHEREAS, the Cupertino City Council's decision was within its discretion and made at a properly noticed public meeting. WHEREAS, Grace Chen and Guo Jin requested that the City Council reconsider its decision under the provisions of Section 2.08.096 of the City's municipal code; and WHEREAS, the City Council has considered all relevant evidence presented by the parties at all hearings, including evidence presented at the February 15, 2011 reconsideration hearing. NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: 1. The petitioners' Reconsideration Petition is defective on its face in that it does not offer proof of facts as required by Municipal Code Section 2.08.096. 2. The petitioners have failed to offer any new evidence that there are any feasible alternative sites to the project that are less intrusive. (See Municipal Code § 2.08.096(B)(1).) Specifically, the City Council determines that: a. The City Council's decision is supported by findings of fact attached as Exhibit 1. b. The findings of fact related to the City Council's decision were supported by substantial evidence in the record of proceedings. 3. The petitioners' Petition for Reconsideration of the City Council's decision of January 4, 2011 on item __ is DENIED, thereby affirming the original decision. PASSED AND ADOPTED at a regular meeting of the City Council of the City of 331 Cupertino this 15th day of February 2011, by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: ____________________ _______________________ City Clerk Mayor, City of Cupertino 332 EXHIBIT 1 CITY COUNCIL FINDINGS IN RESPONSE TO PETITION FOR RECONSIDERATION Cupertino Municipal Code section 2.08.096 states: “A petition for reconsideration shall specify in detail each and every ground for reconsideration. Failure of a petition to specify any particular ground or grounds for reconsideration precludes that particular omitted ground or grounds from being raised or litigated in a subsequent judicial proceeding. The grounds for reconsideration are limited to the following: 1) An offer of new relevant evidence which, in the exercise of reasonable diligence, could not have been produced at any earlier city hearing. 2) An offer of relevant evidence which was improperly excluded at any prior city hearing. 3) Proof of facts which demonstrate that the City Council proceeded without, or in excess of its jurisdiction. 4) Proof of facts which demonstrate that the City Council failed to provide a fair hearing. 5) Proof of facts which demonstrate that the City Council abused its discretion by: a) Not proceeding in a manner required by law; and/or b) Rendering a decision which was not supported by findings of fact; and/or c) Rendering a decision in which the findings of fact were not supported by the evidence.” Original Petition The petition for reconsideration consists of three pages. Reconsideration of this item constitutes the fourth full hearing of this matter conducted by the City. The grounds for the reconsideration are summarized below. It should be noted that three out of the four claims do not bear any relationship to the criteria referenced above. The City’s findings of fact on each of claims and the criterion are delineated below. Finding: There are three claims that do not bear any relationship to the Reconsideration criteria found in municipal code section 2.08.096(B). Petition Response Screening landscaping for the monopine needs to follow strict aesthetic guidelines. We request the addition of a condition to the approval that the “additional screening trees at the northern property line” will conform to that of the approved redevelopment plans of the Results Way office park and any revisions or modifications of those plans. Landscape screening plans are unclear and should be open for public view. Petitioners seek to add and refine development conditions that have already been adopted by the City Council (Attachment K) which does not relate to the reconsideration criteria. Petitioners’ interests are already addressed by Council’s added condition #6: “require that tree planting conform with the approved development plans of the results way office park.” In addition to #6, City Council added six more conditions pertaining to 333 landscaping. Staff has already agreed to allow Astoria Townhome owners to informally review the landscape plans when they are submitted. Request to add a new condition to the approval requiring applicant to pay $30,000 to the Astoria Homeowners Association for additional irrigation, trees, fencing and related matters connected to the visual screening of the wireless facility. Petitioners seek to add new development condition to City Council approval, which does not relate to the reconsideration criteria. There are no legal grounds to add this condition. We are talking to the property owners of 10340 & 10420 Bubb Road to explore a lease for a cell site. This alternative site should have similar criteria as compared to the approval with less impact to residents. We request additional time allowance There is no evidence or facts that relate to the reconsideration criteria. The request for continuance should be denied. The applicant already evaluated 10420 Bubb Road in its alternative site analysis (PC staff report). Applicant cited a lack of room and proximity to the freeway where AT&T already has coverage. Finding: The petitioners have not offered any new evidence to demonstrate that Monta Vista High School has become a viable alternative site for wireless facilities - Cupertino Municipal Code, section 2.08.096(1). Petition Response The Fremont Union High School District has recently entered into leases for cell sites at several other high schools in the District. More than 5 years have passed since AT&T approached FUHSD about Monta Vista High School (H.S.). Given what has happened at other area high schools, AT&T should go back and check about antenna opportunities at Monta Vista since District criteria may have evolved. The petitioners have not presented any evidence that FUHSD would be willing to consider Monta Vista H.S. for cell sites again. The 2005 City approval of a wireless facility at Monta Vista H.S. expired in 2007, so the applicant would need to go through another public entitlement process again. A request to place a wireless facility at a school site is not before the Council. 334 335 336 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 Attachment A COMMUNITY DEVELOPMENT DEPARTMENT CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3308 • FAX: (408) 777-3333 STAFF REPORT Agenda Item No. ____ Meeting Date: November 1, 2010 Subject Appeal of an approval of a wireless service facility Recommendation Deny an appeal of a Planning Commission approval for a personal wireless service facility consisting of twelve panel antennas to be mounted on a 74 foot tall monopine and associated base equipment to be located at the existing Results Way office park Description Appeal of the following Planning Commission Approvals: Use Permit (U-2010-03) request to allow a personal wireless service facility, consisting of twelve panel antennas mounted on a 74-foot tall monopine and associated base equipment located at the Results Way office park. Height Exception (EXC-2010-04) request to allow antennas to be mounted on a monopine at a height of 67 feet or less where 55 feet is allowed. Tree Removal (TR-2010-31) request to allow the removal and replacement of four Coastal Redwood trees associated with the proposed personal wireless service facility. Property Location: Results Way (rear parking lot)/ APN 357-20-042 Applicant: Dave Yocke, Trillium Telecom (for AT&T Mobility) Appellant: Allen Wang, Grace Chen, Guo Jin Property Owner: ECI Two Results, LLC Background On September 14, 2010, the Planning Commission reviewed and approved (4-1 vote; Miller voting no) a proposal for a 74-foot tall AT&T wireless service monopine located in the northwest corner of the parking lot at the Results Way office park (Attachments B-resolution, C-hearing minutes, D- Commission staff report & L- approved plan set) The Commission noted that most of residents’ concerns related to perceived hazards of RF energy, and a radio frequency study determined that the 380 2 cumulative radio frequency exposure (existing and proposed emissions) were well below federal safety standards. The commissioners noted that federal law prohibits cities from making wireless facility decisions based on the environmental effects of radio frequency emissions that met federal standards. Generally, the Commissioners felt that the monopine was well-designed and given its location and context, the facility would not be visually obtrusive. Commissioner Miller voted no on the project. He felt the monopine was too visible at the proposed location, being over twice the height of the existing trees. The Planning Commission hearing was well attended and comments were received from both supporters, as well as those who opposed the project. Please see Attachment I for the numerous emails and letters received. For a detailed Planning Commission hearing discussion, please refer to the September 14, 2010 Commission meeting minutes (Attachment C). The Planning Commission decision was appealed by three residents on September 28, 2010 (Attachment A – Appeal Request). Discussion The basis of the appeal is described below followed by staff comments in italics. Where the applicant has provided the response, at the request of staff, the comments are so noted: 1. The application does not meet the minimum aesthetic requirement established in City of Cupertino’s Wireless Facilities Master Plan. Appeal Point 1(a): It violates the following policy: Policy 6-1: Personal wireless service facilities should be sited to avoid visually intrusive impacts as viewed from the public right-of-way and from residential neighborhoods. “The artificial tree will be highly visible especially from nearby residents and pedestrians, passersby and commuters who traverse Bubb Road and McClellan Road.” Staff Response: The Glossary of the City’s Wireless Master Plan (p. 38) describes a visually “intrusive” impact as a wireless facility “that visually contrasts with its surroundings to the point of conflicting with it, but not to the extent of visually dominating the surroundings.” The project does not visually contradict its surroundings as it has been camouflaged as a tree and it is sited in a large landscape strip with other trees of similar shape. The Facilities Master Plan Siting and Design Guidelines for Lattice Towers and Monopoles recommends that: “Intrusive and Obtrusive monopoles should be camouflaged as artificial trees. Since such artificial trees appear more authentic when placed next to real trees, the planting of larger trees near the monopole may be a project requirement.” The project is already sited in a wide landscape berm with other trees of similar form (Coastal Redwoods). The Planning Commission approval included the rehabilitation of the irrigation system and the planting of three 24” box Coastal Redwoods in the northwest corner of the property. Trees planted in this location would have the most beneficial effect in screening views of the project for nearby Astoria residents. 381 3 The monopine is most visible in the vicinity of Imperial Avenue and Olive Avenue. It has limited visibility to McClellan Road as it is separated by over 1,400 feet of landscaping with tall, mature trees and over 650 feet of intervening landscaping and buildings to Bubb Road. Appeal Point 1(b): It violates the following policy: Policy 6-2: Personal wireless service facilities shall be appropriately scaled to fit harmoniously with the surrounding elements of the site and neighborhood. The proposed 74’ tall cellular phone tower will be significantly taller than its surrounding buildings. Existing surrounding structures do not exceed 30 feet; the proposed monopole will be more than 40 feet taller than existing structures. The proposed tower will be an eyesore, as it is significantly taller. Existing landscaping has a height similar to the surrounding buildings of approximately 30 feet. Staff Response: It is more appropriate to make height comparisons between the proposed monopine with the existing vegetation, rather than the buildings. The project lot is large and the topography varies. While the redwood trees (25-35 feet tall) immediately around the monopine (74 feet) are much shorter, the closest building is 265 feet away and is on a grade 10 feet higher than the proposed facility. Ideally to make the monopine blend better with the surrounding, it should be located near those existing trees of comparable height in the landscape strip; however, those taller trees directly abut residences and the 75-foot setback requirement between a wireless facility and a residential property line could not be met. The 74-foot height for the monopine is needed for two reasons: 1) The monopine must be tall enough to see over the buildings in order to provide cell coverage to residential neighborhoods and schools south of the project site; and 2) Provide an opportunity for another wireless carrier to collocation its antennas on the monopine. The City requires wireless carriers to consider collocation opportunities when they propose new monopoles in order to reduce the proliferation of new wireless facilities and if it will reduce the visual intrusiveness of having more new facilities in the area. Given the difficulty of finding suitable wireless facility sites in this area and the fact that two other wireless carriers are looking for a Monta Vista location, makes this monopine a strong candidate for collocation. AT&T has indicated to staff that the 74-foot height is the minimum height needed for the carrier to meet its coverage objectives for the area, regardless if whether the collocation of antennas is permitted in the future or not. Appeal Point 1(c ): It violates the following policy: Policy 6-3: Personal wireless service facilities shall be compatible with their surroundings so that their shape, size, color, material, and texture blend with their surroundings. It does not blend in with the current landscape. Existing landscapes have height similar to the 382 4 surrounding buildings, of approximately 30 feet….The proposed cell tower will be significantly taller, does not visually integrated, and does not enhance the natural appearance. Current Cupertino City Ordinance – and specifically the Monta Vista neighborhood – does not allow structures or buildings exceeding 30 feet. Staff Response: The difference in height between the monopine and surrounding structures has been answered in the previous response. The Wireless Communications Facilities Ordinance (CMC Section 19.108, Attachment G) permits a maximum structure height of 55 feet. Taller structure heights may be allowed with a height exception approval. New wireless facilities with similar heights have been approved by the City in the past. The wireless facility has been designed to be compatible with its surroundings with faux bark, branching limbs and needle covers on the antennas to hide the antennas (Attachment F- photosimulations). Additional conditions were approved by the Planning Commission to give the monopine a more natural appearance. They include mottling the green color of the artificial needles and shaping and adding branching to give it a more natural appearance. Another condition requires the applicant to perform regular maintenance to maintain the appearance of the monopine. 2. The application does not meet the safety requirement established in the City of Cupertino’s Wireless Facilities Master Plan. It violates the following policies: Policy 7-1: The City reserves the right to require applicants to prepare radio frequency radiation assessments for personal wireless service facilities when the general public is in reasonably close proximity to such a facility and to determine compliance with FCC Guidelines. Policy 7-2: The City shall require a radio frequency radiation assessment for all co-located antennas. (The concern is for cumulative emissions exceeding the FCC Guidelines). The radio frequency radiation study done by Hammett & Edison, Inc. Consulting Engineers, dated August 20, 2010 is outdated and was based on twelve antennas mounted at an effective height about 65 feet above ground. A new study should be done based on the bottom elevation (about 56’ above ground) of the lower tier of the antennas proposed and also the bottom elevation of future antennas proposed at lower elevations. A radio frequency radiation study should be done to calculate the combined emission by all carriers and sources at the proposed location and future towers planned by AT&T and other carriers. AT&T has not established the need for twelve antennas for this application. In last year’s application, AT&T had proposed six antennas. The City should not approve more antennas than actually needed to improve coverage. Staff Response: A last minute design change lowered the height of six of the twelve proposed antennas from 65 feet to 56 feet. An updated radio frequency study for the revised 12-antenna design (Attachment J) with the lowered tier of antennas demonstrates that the radio frequency energy exposure plus the contribution from the existing, next door, Sprint-Nextel personal wireless service facility is still well within the Federal safety standard. The maximum calculated cumulative level of radio frequency emissions at ground is 0.73% of the maximum permissible exposure (MPE). 383 5 At the second floor elevation of any nearby residence, the exposure is 0.92% of the MPE. On the rooftop of any nearby non-residential building, the exposure is estimated to be 2.4% of the MPE. According to the applicant, the number of antennas has changed from the initial six requested in the 2009 application to the 12 requested as part of this application because it would allow AT&T the flexibility to add additional antennas as new technology is deployed. The proposed 12 antennas have been included on all drawings, photo-simulations, project descriptions and in the City staff report. Furthermore the Hammett & Edison radio frequency energy report based its analyses and conclusions of the facility utilizing all 12 antennas operating at maximum power levels. Also, as stated in the Planning Commission staff report, staff will require a new radio frequency energy study when a future antenna collocation proposal is made. Staff normally requires a new radio frequency study whenever an antenna collocation occurs, but the City Council may add it as a requirement to its action on the appeal. 3. Planning commissioners, city staffs and residents have never seen a correct coverage map based on the proposed location. An updated coverage map with the proposed monopole correctly placed on the mentioned site should be studied and reviewed. The City should not approve a wireless facility application without even seeing a correct coverage map based on actual proposed location. Three different coverage maps have been available: • The first coverage map included with the Planning Commission staff report shows the proposed facility near the intersection of Imperial Avenue and McClellan Road. If the facility is incorrectly placed on the map, then the proposed coverage area is likely wrong too. • The second coverage map from AT&T’s website (www.wireless.att.com/coverageviewer/, with zip code 95014) shows good coverage for most of Monta Vista. • The third coverage map was presented by AT&T’s representative at the September 14, 2010 Planning Commission Hearing shows that at the proposed facility site that there is no/limited coverage. Staff Response: Please see Attachment K for the updated coverage maps (showing existing and proposed coverage) with the location of the facility accurately depicted. The applicant states that its website (www.wireless.att.com/coverageviewer) coverage maps were developed to allow existing and potential AT&T customers the ability to view the general level of coverage in a geographic area. AT&T included a statement on the website to ensure viewers understand the limitations of the website, noting that actual coverage area may differ substantially from map graphics, and coverage may be affected by such things as terrain, weather, foliage, buildings and other construction, signal strength, customer equipment and other factors. AT&T also noted that the maps shown on the AT&T web page are intended for use for the general public and are not as detailed as the radio frequency engineering maps submitted to the city and discussed at the planning commission public hearing. The radio frequency coverage maps are based on data taken in the field and sophisticated computer programs and models that provide a graphical representation of existing coverage as well as coverage if the proposed facility is built. Wireless 384 6 networks are dynamic and their performance is influenced by a number of factors including the geography of the surrounding area, heights of existing trees and buildings, locations of surrounding sites and the number of users accessing the network. The level of coverage in a geographic area served by a wireless facility is also impacted by these factors. 4. It was mentioned at the Planning Commission hearing that at times cell coverage was good in Monta Vista. It was also mentioned that there was a significant degradation in coverage especially during after-school hours and after-work hours when many parents are calling their children. More than 4,400 students plus teachers and administrators arrive at school and are dismissed within a 30-60 minutes interval. Given this, if this is the problem, then capacity issues may be misconstrued as “poor coverage.” This issue still needs to be explored and discussed. The need for the facility is not clear-cut, perhaps other alternatives can resolve this issue. Staff response: The applicant states that the level of coverage in a geographic area served by a wireless facility is impacted by numerous factors, including the geography of the surrounding area, heights of existing trees and buildings, locations of surrounding (wireless facility) sites and the number of users accessing that facility at any given time. For instance, sites located near freeways usually have peak times that correspond to the peak traffic hours on the freeway. As traffic increases on the freeway, more people in the same geographic area are attempting to make calls and once the wireless network reaches capacity, no more calls can be initiated and existing calls may be dropped. So, even though there may be “coverage” in an area, the level of service may be lower than expected due to an increase in network traffic. Staff notes that the 2007 Technology, Information and Communications Commission survey of cell phone users in Cupertino documented that the Monta Vista/Kennedy Schools/Bubb Road/McClellan Road area was the number one poor cell phone coverage area in Cupertino Staff also believes that the perception of “good” cell phone coverage has also evolved over the years. Historically, consumers used cell phones when they were mobile (i.e. outdoors). Nowadays, consumers expect their cell phones to operate at work and at home (i.e. in buildings). In general, low-power radio signals are inadequate to provide good in-building coverage and wireless networks must be built-up and expanded in order to provide better in-building cell phone coverage. 5. Alternative locations and structures should expand to larger areas. Since the proposed location will not improve coverage effectively, it is necessary to study alternative locations, at nearby parks, near freeways and existing office buildings. It is also clear that a smaller structure, such as roof-mounted antennas at the center of coverage gap may suffice in improving the coverage in this area, instead of the 74-foot tall treepole. Half of Monta Vista area has good coverage, namely from Sprint-Nextel & Verizon Wireless, and yet there is no Sprint or Verizon cell phone tower near the residential area. Why is a 74-foot tall monopole the only viable solution to improve AT&T coverage? Had AT&T really explored all alternatives? Can roof-mounted antennas serve as a potential solution? 385 7 Staff Response: Sprint-Nextel’s wireless facility is located on Imperial Avenue next door to the Astoria Townhomes; the closest Verizon Wireless site is on the De Anza College campus. Staff has summarized AT&T’s and city staff’s 5-year search and evaluation for a suitable Monta Vista wireless facility site in the Planning Commission staff report (Attachment D). As part of their due diligence, AT&T also approached other property owners in the general area including, the following: Potential Co-Location Opportunity: • 10420 Bubb Road, Cupertino – The property owner and AT&T were not interested in pursuing a lease due to lack of room for a facility. Other Alternative Locations Explored: • Monta Vista High School - The project was subsequently approved by the city however, due to concerns raised by parents and neighbors, the school board declined to enter into a lease agreement to permit the facility to be constructed. At that time, suggestions were made by opponents of the project and city staff to move the location of the facility out of the residentially-zoned areas and look at commercial properties to the northeast that had sufficient space to accommodate the proposed use. • 21495 McClellan Road, Cupertino –The property owner and AT&T were not interested in lease due to lack of room for a facility. • Industrial Areas to the East-These were reviewed and had no available space (without taking up parking spaces) or were too close to the freeway where AT&T currently has coverage from existing facilities to the northeast and southeast. • Utility Poles – these are used in extreme locations where a standard wireless facility cannot be built (steep hillsides, public right-of-way, etc.). If utility poles are used, height is compromised and it would take multiple facilities to obtain the same coverage that one standard facility (such as the one proposed) can obtain. • Sites on Results Way - The applicant submitted an application to the city in 2008 to place the proposed facility near the southwest corner of the office park. This initial site was rejected by staff, so the applicant sought an alternate location in the rear parking lot landscape strip near the building. This site was reviewed at a Planning Commission hearing but the application was ultimately withdrawn because of conflicts with a utility easement. A third location on the property was proposed by the applicant in June 2010 (current proposal). Due to future development plans on the subject property and proximity to existing utility easements and overhead power lines, the current location was ultimately selected as a compromise location that met the requirements of the city while allowing AT&T to meet most of the original coverage objectives. 386 8 Staff notes that the Results Way Office Park consists of three separate parcels. The entire focus of the current application has been on the rear parcel that is furthest away from McClellan Road. Most other alternative sites on the properties were not feasible because of the property owner’s approved redevelopment plans, utility easements and closer proximity to residential properties. Selection of an alternative site on the other two parcels would require a separate City review. Prepared by: Colin Jung, AICP, Senior Planner Reviewed by: Gary Chao, City Planner; Aarti Shrivastava, Community Development Director Approved for Submission by: David W. Knapp, City Manager Attachments A. Appeal of U-2010-03, EXC-2010-04 and TR-2010-31 dated 9/28/10 B. Letter to Applicant & Planning Commission Resolution No. 6604 C. Planning Commission Meeting Minutes from 9/14/10 D. Planning Commission Staff Report dated 9/14/10 E. Santa Clara County Sheriff’s Letter dated 6/23/10 F. Photosimulations of monopine (3) G. AT&T Facility Alternate Sites Aerial Map H. Communications from TIC Commissioners I. Public Correspondence: Emails and Letters J. AT&T Mobility Proposed Base Station (Site No. CN3242A)/Results Way, Cupertino, California/Statement of Hammett & Edison, Inc., Consulting Engineers, dated 10/26/10 K. Existing and Proposed Coverage Maps (updated) L. Planning Commission-approved Plan Set 387 388 389 390 391 392 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 409 410 411 ADMINISTRATIVE SERVICES DEPARTMENT CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3227 www.cupertino.org CITY COUNCIL/REDEVELOPMENT AGENCY STAFF REPORT Meeting: February 15, 2011 Subject Loan and Repayment Agreement between the City of Cupertino and the City of Cupertino Redevelopment Agency Recommended Action A. Redevelopment Agency action - Adopt Resolution No. 11-01 B. City Council action - Adopt Resolution No. 11- Description Adopt corresponding resolutions authorizing the City and Agency to enter into the Agreement. Discussion In order to receive property taxes, State law requires that the Cupertino Redevelopment Agency (RDA) file an annual report showing the obligations of the RDA. RDA obligations consists of City advance funding of RDA expenditures, low and moderate income housing fund contributions, State payments, property taxes passed-through to local jurisdictions, and tax reassessments due back to taxpayers. The RDA can pay back the City after the property taxes are received. The RDA finances the Vallco project area’s public improvements and administrative programs described in the redevelopment implementation plan. The implementation plan includes public infrastructure improvements such as construction and installation of street modifications, access ramps, drainage facilities, and street trees in the Vallco project area. Vallco Shopping Mall has not been able to move forward with the construction of these improvements due mainly to the economic recession. These infrastructure improvements are within the Cupertino Redevelopment Agency boundaries and meet redevelopment law criteria regarding funding of public infrastructure. In order to provide a potential catalyst to development in the Redevelopment area, the City and RDA could finance the public improvements at the Mall with the RDA reimbursing the City for any advancement of funds. Staff will provide a supplemental staff report to the Council regarding the infrastructure improvements by February 11, 2011. 412 The City General Fund will advance $650,000 toward public infrastructure improvements in 2010-11 with the RDA reimbursing the General Fund once the taxes are received this fiscal year. The RDA has a $350,000 tax roll reassessment obligation which the General Fund can carry until the RDA receives and pays back the tax by next year. Lastly, RDA has $252,000 in 2010-11 administrative costs (including contract and legal costs) that the General Fund is fronting and which the RDA will reimburse with taxes later this year. The total of these is $1,252,000. To formally document the arrangement, staff recommends that the Redevelopment Agency and the City execute a Loan and Repayment Agreement. Redevelopment counsel recommended this routine procedure to support annual reporting requirements. Fiscal Impact Executing the Agreement allows the RDA to receive $1,252,000 in property taxes in fiscal year 2010-11. The City General Fund currently budgeted $500,000 for RDA advances, but can increase the advance to $1,252,000 using undesignated reserves. It is anticipated that the Agency will pay back the advances after the taxes are received. _____________________________________ Prepared by: David Woo, Finance Director Reviewed by: Aarti Shrivastava, Director of Community Development Approved for Submission by: David W. Knapp, City Manager and RDA Executive Director Attachments: Redevelopment Agency Resolution City Council Resolution Loan and Repayment Agreement 413 1 394\01\942281.2 RESOLUTION NO. 11-01 RESOLUTION OF THE CITY OF CUPERTINO REDEVELOPMENT AGENCY AUTHORIZING THE CHAIRPERSON TO EXECUTE A LOAN AND REPAYMENT AGREEMENT BETWEEN THE CITY OF CUPERTINO (CITY) AND THE CITY OF CUPERTINO REDEVELOPMENT AGENCY (AGENCY) WHEREAS, the Agency is vested with the responsibility for formulating and carrying out necessary redevelopment projects within the Cupertino Vallco Redevelopment Project Area (the "Project Area"); and WHEREAS, to assist with the Agency's implementation of the redevelopment program in the Project Area, the Agency and the City desire to enter into a Loan and Repayment Agreement (the "Agreement", on file with the City Clerk and the Agency Secretary) in which the City agrees to provide staff services to the Agency, to construct improvements of benefit to the redevelopment program under specified circumstances and to address tax roll reassessment liability issues, subject to reimbursement by the Agency as provided in this Agreement; and WHEREAS, implementation of the Agreement will assist the Agency to accomplish the stated goals in the Redevelopment Plan and its current Implementation Plan as described in the staff report accompanying this Resolution (the "Staff Report”); and WHEREAS, under the California Redevelopment Law (Health and Safety Code Section 33100 et seq.; the "Law"), before the Agency can expend money for public improvements, the Agency and the City must make specified findings pursuant to Health and Safety Code Section 33445; and WHEREAS, pursuant to the Law, the Agency is authorized, with the consent of the City Council to pay for part, or all, of the costs of public improvements that are of benefit to the Project Area; and WHEREAS, no other reasonable means of financing the estimated cost of the public improvements are available to the City or the community; and WHEREAS, the Staff Report, the Redevelopment Plan, the report to City Council accompanying the Redevelopment Plan, and the Implementation Plan provide additional information upon which the findings and actions set forth in this Resolution are based. 414 2 394\01\942281.2 NOW, THEREFORE, BE IT RESOLVED by the City of Cupertino Redevelopment Agency as follows: 1. In compliance with Section 33445 of the Law, the Agency hereby finds that: (a) the installation or construction of the public improvements listed in the Agreement that are publicly owned are of benefit to the Project Area by helping to eliminate blight within the Project Area or providing housing for low- or moderate- income persons; (b) no other reasonable means of financing the installation or construction of the public improvements listed in the Agreement that are publicly owned are available to the community; and (c) the appropriation and payment of funds by the Agency for the cost of the public improvements listed in the Agreement that are publicly owned is consistent with the Agency's current Implementation Plan. 2. The Agency hereby approves the Agreement and authorizes the Agency Chairperson to enter into and execute the Agreement on behalf of the Agency, substantially in the form on file with the City Clerk and the Agency Secretary, with such revisions as are reasonably determined necessary by the Agency signatory, such determination to be conclusively deemed to have been made by the execution of the Agreement by the Agency signatory. The Agency Executive Director is authorized to implement the Agreement and take all further actions and execute all other documents which are necessary or appropriate to carry out the Agreement. 3. The Agency hereby approves and appropriates (to the extent not already appropriated) the amounts necessary to fund the Agency's obligations under the Agreement as a lawful expenditure of Agency funds under the Law. The Agency's current fiscal year budget is hereby amended to the extent necessary to implement the foregoing appropriation. 4. The Agency Executive Director is hereby authorized to take such further actions as may be necessary or appropriate to carry out the Agency’s obligations pursuant to this Resolution and the Agreement. 5. The Agency Secretary shall certify to the adoption of this Resolution. 6. This Resolution shall take effect immediately upon adoption. 415 3 394\01\942281.2 PASSED AND ADOPTED at a regular meeting of the Redevelopment Agency of the City of Cupertino this 15th day of February, 2011, by the following vote: Vote Members of the Redevelopment Agency YES: NOES: ABSENT: ABSTAINED: ATTEST: APPROVED: Secretary, City of Cupertino Chairperson, City of Cupertino Redevelopment Agency Redevelopment Agency 416 1 394\01\942280.2 RESOLUTION NO. 11-________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AUTHORIZING THE CITY MANAGER TO EXECUTE A LOAN AND REPAYMENT AGREEMENT BETWEEN THE CITY OF CUPERTINO (CITY) AND THE CITY OF CUPERTINO REDEVELOPMENT AGENCY (AGENCY) WHEREAS, the Agency is vested with the responsibility for formulating and carrying out necessary redevelopment projects within the Cupertino Vallco Redevelopment Project Area (the "Project Area"); and WHEREAS, to assist with the Agency's implementation of the redevelopment program in the Project Area, the Agency and the City desire to enter into a Loan and Repayment Agreement (the "Agreement", on file with the City Clerk and the Agency Secretary) in which the City agrees to provide staff services to the Agency, to construct improvements of benefit to the redevelopment program under specified circumstances and to address tax roll reassessment liability issues, subject to reimbursement by the Agency as provided in this Agreement; and WHEREAS, implementation of the Agreement will assist the Agency to accomplish the stated goals in the Redevelopment Plan and its current Implementation Plan as described in the staff report accompanying this Resolution (the "Staff Report”); and WHEREAS, under the California Redevelopment Law (Health and Safety Code Section 33100 et seq.; the "Law"), before the Agency can expend money for public improvements, the Agency and the City must make specified findings pursuant to Health and Safety Code Section 33445; and WHEREAS, pursuant to the Law, the Agency is authorized, with the consent of the City Council to pay for part, or all, of the costs of public improvements that are of benefit to the Project Area; and WHEREAS, no other reasonable means of financing the estimated cost of the public improvements are available to the City or the community; and WHEREAS, the Staff Report, the Redevelopment Plan, the report to City Council accompanying the Redevelopment Plan, and the Implementation Plan provide additional information upon which the findings and actions set forth in this Resolution are based. 417 2 394\01\942280.2 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Cupertino as follows: 1. In compliance with Section 33445 of the Law, the City hereby finds that: (a) the installation or construction of the public improvements listed in the Agreement that are publicly owned are of benefit to the Project Area by helping to eliminate blight within the Project Area or providing housing for low- or moderate-income persons; (b) no other reasonable means of financing the installation or construction of the public improvements listed in the Agreement that are publicly owned are available to the community; and (c) the appropriation and payment of funds by the Agency for the cost of the public improvements listed in the Agreement that are publicly owned is consistent with the Agency's current Implementation Plan. 2. The City hereby approves the Agreement, consents to the Agency's expenditures under the Agreement and authorizes the City Manager to enter into and execute the Agreement on behalf of the City, substantially in the form on file with the City Clerk and the Agency Secretary, with such revisions as are reasonably determined necessary by the City signatory, such determination to be conclusively deemed to have been made by the execution of the Agreement by the City signatory. The City Manager is authorized to implement the Agreement and take all further actions and execute all other documents which are necessary or appropriate to carry out the Agreement. 3. The City Manager is hereby authorized to take such further actions as may be necessary or appropriate to carry out the City’s obligations pursuant to this Resolution and the Agreement. 4. The City Clerk shall certify to the adoption of this Resolution. 5. This Resolution shall take effect immediately upon adoption. 418 3 394\01\942280.2 PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 15th day of February, 2011, by the following vote: Vote Members of the City Council YES: NOES: ABSENT: ABSTAINED: ATTEST: APPROVED: City Clerk, City of Cupertino Mayor, City of Cupertino 419 1 c:\docume~1\graces\locals~1\temp\loan and repayment agreement.docx LOAN AND REPAYMENT AGREEMENT The following is a Loan and Repayment Agreement, dated February 15, 2011, by and between the City of Cupertino (the "City") and the City of Cupertino Redevelopment Agency (the "Agency"). W I T N E S S E T H A. WHEREAS, the City and the Agency caused the adoption of the Redevelopment Plan for the Cupertino Vallco Redevelopment Project (the "Redevelopment Plan"); and B. WHEREAS, the Agency is vested with the responsibility for formulating and carrying out necessary redevelopment projects within the City and implementing the Redevelopment Plan; and C. WHEREAS, the parties desire to contract for the City to provide staff services to the Agency and to construct improvements of benefit to the redevelopment program under specified circumstances, subject to reimbursement by the Agency as provided in this Agreement; and D. WHEREAS, the City and the Agency are each ready and willing to assume the relationship described herein. NOW, THEREFORE, BE IT RESOLVED that the City and the Agency, for and in consideration of the mutual promises and agreements herein contained do agree as follows: 1. PURPOSES The purposes of this Agreement are: a. To establish a mechanism for reimbursement of specified future administrative costs incurred by the City in furtherance of the redevelopment program for the Cupertino Vallco Redevelopment Project Area (the "Project Area"), as more fully set forth in Section 3. b. To provide a mechanism for reimbursement of specified future public works improvement costs or other costs related to implementing the Redevelopment Plan incurred by the City in furtherance of the redevelopment program for the Project Area or related to tax roll actions by the County, as more fully set forth in Section 4. 2. TERM OF AGREEMENT This Agreement shall be in full force and effect for a period beginning as of the date first above written and continuing until all repayment and reimbursement obligations of the Agency to the City are satisfied in full in accordance with the terms of this Agreement. 420 2 c:\docume~1\graces\locals~1\temp\loan and repayment agreement.docx 3. REIMBURSEMENT OF CITY ADMINISTRATIVE COSTS The Agency agrees to reimburse the City for all administrative costs incurred by the City in furtherance of the redevelopment program for the Project Area (the "Administrative Costs"). Such Administrative Costs may include, but are not limited to, costs to the City for consulting services, legal services, City staff time and other related administrative expenses. The City and Agency shall, at the end of each fiscal year, set forth in a schedule to be attached to this Agreement as Exhibit A the amount of such Administrative Costs incurred by the City for the applicable fiscal year. The Agency shall thereupon become indebted to reimburse the City for such Administrative Costs. This debt shall bear no interest, and shall be repayable as provided in Section 5. 4. REIMBURSEMENT TO CITY FOR PUBLIC IMPROVEMENTS AND OTHER COSTS The City may incur costs for public improvements in the Project Area on behalf of the Agency. In addition, the City may incur costs for other activities related to implementation of the Redevelopment Plan or related to tax roll actions by the County. These costs shall become a debt of the Agency and shall be set forth in an Exhibit B, which shall be attached to this Agreement and made a part hereof as if fully set forth herein. These costs shall bear no interest, and shall be repayable as provided in Section 5. Such Exhibit B shall specify the date from which the Agency's reimbursement obligation to the City shall begin to bear interest. 5. REPAYMENT TERMS; SUBORDINATION Each repayment or reimbursement obligation of the Agency pursuant to this Agreement shall be repayable solely from tax increment funds, if any, generated within the Project Area. It is understood that if tax increment funds from the Project Area fail to yield sufficient revenue to pay the repayment or reimbursement obligations of the Agency under this Agreement, the Agency is under no obligation to make such repayment or reimbursement to the extent tax increment funds are insufficient. It is agreed by the parties hereto that all repayments and reimbursements to the City pursuant to this Agreement are hereby subordinated to any and all payments necessary to satisfy existing debt of the Agency and to any and all payments necessary to satisfy the Agency's obligations in connection with any existing or future bonded indebtedness or obligation which may be incurred by the Agency for the benefit of the redevelopment program or to the extent necessary for any bonded indebtedness for which the Agency has pledged as a security or source of repayment tax increment generated within the Project Area. 6. VALIDITY OF AGREEMENT If any provisions of this Agreement, or the application thereof to any person, party, transaction, or circumstance, is held invalid, the remainder of this Agreement, or the application of such provision to other persons, parties, transactions or circumstances, shall not be affected thereby. 421 3 c:\docume~1\graces\locals~1\temp\loan and repayment agreement.docx CITY OF CUPERTINO CITY OF CUPERTINO REDEVELOPMENT AGENCY By: ____________________________ By: ______________________________ Chairperson City Manager City of Cupertino City of Cupertino Redevelopment Agency Approved as to form: By: ______________________________ City Attorney 422 4 c:\docume~1\graces\locals~1\temp\loan and repayment agreement.docx EXHIBIT A TO LOAN AND REPAYMENT AGREEMENT BETWEEN CITY OF CUPERTINO AND CITY OF CUPERTINO REDEVELOPMENT AGENCY: LOAN FOR ADMINISTRATIVE COSTS Fiscal Year Loan Proceeds Interest Due Payments Made Loan Balance 2010/11 252,000 - - 252,000 EXHIBIT B TO LOAN AND REPAYMENT AGREEMENT BETWEEN CITY OF CUPERTINO AND CITY OF CUPERTINO REDEVELOPMENT AGENCY: LOAN FOR PUBLIC IMPROVEMENTS AND OTHER COSTS Fiscal Year Loan Proceeds Purpose Interest Due Payments Made Loan Balance 2010/11 650,000 Public Improvements - - 650,000 2010/11 350,000 Tax roll reassessment 350,000 423 COMMUNITY DEVELOPMENT DEPARTMENT CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3308 www.cupertino.org CITY COUNCIL/REDEVELOPMENT AGENCY STAFF REPORT Meeting: February 15, 2011 Subject Agreement between the Housing Trust of Santa Clara County (Trust), the City of Cupertino Redevelopment Agency (RDA) and the City of Cupertino (City) for the use of housing funds. Recommended Action Action of City of Cupertino RDA: 1. Adopt the Draft Resolution a. Approving an Agreement between the RDA and the Housing Trust of Santa Clara County to allocate $1,000,000 from RDA Housing set-aside funds. b. Directing the City Manager to negotiate and execute the agreement between the Housing Trust of Santa Clara County and the City of Cupertino and the City of Cupertino RDA. 2. Increase RDA Housing set-aside fund expenditure budget by $1,000,000. Action of City of Cupertino: 1. Adopt the Draft Resolution a. Approving an Agreement between the City and the Housing Trust of Santa Clara County allocating $1,000,000. b. Directing the City Manager to negotiate and execute the agreement between the the Housing Trust of Santa Clara and the City of Cupertino and the City of Cupertino RDA. Description Discuss an opportunity to fund the Housing Trust of Santa Clara County out of the RDA Housing Set-Aside. Discussion Pursuant to a settlement agreement between the City of Cupertino and Bay Area Legal Aid (BALA), 25% of the City of Cupertino’s RDA tax increment must be set-aside for affordable housing. There is currently $1,005,000 in the housing set-aside fund available for affordable housing. To date, the RDA has not allocated any funding for affordable housing projects. The Housing Trust of Santa Clara County has requested funding from the City of Cupertino RDA to serve Cupertino residents. Money that is invested in the Housing Trust is highly leveraged. Over the past ten years, the City of Cupertino has granted the Trust $350,000 which 424 the Trust has reinvested in Cupertino by more than double. Since 2001, the Trust has invested $38 million and leveraged over $1 billion in County of Santa Clara housing projects and programs. Below are a list of just some of the programs that the Housing Trust offers to Cupertino residents and non-profit developers: · Developer Loans (i.e., Senior Housing Solutions, Habitat for Humanity, Maitri, etc.) · First Time Homebuyer Programs – including down payment assistance, equity share, or closing cost loans; and · Homeless Prevention –assistance to the local homeless population through agencies such as West Valley Community Services. Staff believes that investing the $1,000,000 with the Housing Trust of Santa Clara County would not only be a multi-year investment that would benefit Cupertino residents in the provision of affordable housing throughout the City of Cupertino but would also leverage additional funds that could be spent in the community. Findings In order to utilize RDA funds outside of the Vallco project area the City and the RDA must make findings in the resolutions detailing why it is a hardship to provide affordable housing inside the project area. In the case of the Vallco Project Area, there are limited residential sites on which to provide affordable housing. There are only two existing vacant parcels in the redevelopment area. One of them does not have housing allowed as a use under the General Plan and was a subject of a referendum that has reversed City Council approval of a housing project. The other currently serves as parking for the existing Vallco Mall. For these reasons, it makes sense to provide the affordable housing outside the project area within the City, where sufficient residentially zoned land exists and is in relatively close proximity to the redevelopment area. Fiscal Impact The RDA currently has $1,890,000 in reserves, with $1,005,000 in the housing set-aside fund and $885,000 in redevelopment project area funds. The $1,000,000 would come from the housing set-aside fund. _____________________________________ Prepared by: Vera Gil, Senior Planner Reviewed by: Aarti Shrivastava, Director of Community Development; Carol Korade, City Attorney; David Woo, Finance Manager, Kelly Kline, Economic Development & Redevelopment Manager Approved for Submission by: David W. Knapp, City Manager Attachments: Attachment A: Draft agreement between the Housing Trust of Santa Clara County and the City of Cupertino and the City of Cupertino Redevelopment Agency Attachment B: Draft RDA Resolution approving the Affordable Housing Agreement Attachment C: Draft City Council Resolution approving the Affordable Housing Agreement 425 1 394\01\941447.4 AFFORDABLE HOUSING AGREEMENT FOR THE CUPERTINO VALLCO REDEVELOPMENT PROJECT AREA This Affordable Housing Agreement (the "Agreement") is for purposes of funding affordable housing projects and programs to be developed and/or administered by the Housing Trust of Santa Clara County, a California nonprofit public benefit corporation (the "Trust"), and is entered into as of February 15, 2011 by and among the Trust, the City of Cupertino, a municipal corporation (the "City") and the City of Cupertino Redevelopment Agency, a public body, corporate and politic (the "Agency"), on the basis of the following facts, understandings and intentions of the parties: RECITALS A. Pursuant to the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.; the "Redevelopment Law"), the City Council of the City has adopted and the Agency is responsible for implementing the Redevelopment Plan (the "Redevelopment Plan") for the Cupertino Vallco Redevelopment Project Area (the "Project Area"). B. To assist in implementing the Redevelopment Plan, the Agency has adopted a five (5)-year implementation plan (the "Implementation Plan") pursuant to Section 33490 of the Redevelopment Law. C. The Agency and the City are parties to a Settlement Agreement, dated as of January 22, 2002, relative to Santa Clara Superior Court Case No. CV793260, under which the Agency agreed to meet certain affordable housing obligations which are more stringent than otherwise required under the Redevelopment Law, attached as Exhibit A and incorporated into this Agreement (the "Settlement Agreement"). D. Pursuant to Health and Safety Code Sections 33334.2 and 33334.3 and the Settlement Agreement, the Agency has the obligation to establish a Low and Moderate Income Housing Fund (the "Housing Fund") and to expend monies in the Housing Fund for the purposes of increasing, improving, and preserving the community's supply of housing available at affordable housing cost to low and moderate income households, lower income households, very low income households, and extremely low income households. E. Pursuant to Health and Safety Code Section 33125, the Agency has authority to execute contracts necessary or convenient to the exercise of its powers. F. Pursuant to Health and Safety Code Section 33220(e), the City is authorized to enter into this Agreement to assist the Agency in performing powers and obligations under the Redevelopment Law. ATTACHMENT A 426 2 394\01\941447.4 G. The tasks the Trust has agreed to undertake under this Agreement support the Trust's corporate purposes and mission. H. The Agency desires to contract with the Trust to provide Housing Funds to the Trust for use by the Trust to increase, improve, and preserve the supply of affordable housing in the Project Area or within the territorial jurisdiction of the City, consistent with the Redevelopment Plan, the Redevelopment Law, the Settlement Agreement, the Implementation Plan, and the Housing Element of the General Plan of the City of Cupertino (the "Housing Element"). I. The Housing Element includes an assessment of the existing and projected housing needs of the community, including the City's regional fair share allocation of the regional housing need. The housing needs assessment in the Housing Element in effect as of the date of this Agreement indicates a need in the City for 171 housing units affordable to extremely low income households, 148 housing units affordable to very low income households, 213 housing units affordable to lower income households, and 185 housing units affordable to moderate income households, after accounting for units approved for construction. J. The parties desire that the Agency will provide Housing Fund monies to the Trust for the Trust to utilize to finance Housing Fund-eligible activities to increase, improve, and preserve the supply of affordable housing within the Project Area and the territorial jurisdiction of the City, consistent with the Redevelopment Plan, the Redevelopment Law, the Implementation Plan, the Settlement Agreement and the Housing Element, as they currently exist or as they may be amended from time to time. K. The parties have set forth in Exhibit B attached to and incorporated in this Agreement by this reference, a list of potential projects and programs that the Trust may undertake utilizing funds provided pursuant to this Agreement. Exhibit B in its entirety is referred to in this Agreement as the "Affordable Housing Plan" and the projects and programs listed in the Affordable Housing Plan from time to time are referred to individually as an "Affordable Housing Project" or "Affordable Housing Program", as applicable, and collectively as the "Affordable Housing Projects and Programs." The Affordable Housing Plan set forth in Exhibit B is subject to modification as provided in Section 2.2. L. The Affordable Housing Projects and Programs are consistent with the Redevelopment Plan, the Settlement Agreement, the Housing Element and the Implementation Plan. Implementation of the Affordable Housing Projects and Programs will benefit the Project Area and will assist in the elimination of blight in the Project Area and the provision of affordable housing in the community. The use of funds as provided in this Agreement is authorized by the Redevelopment Law, and the Agency and City Council have made all findings required under the Redevelopment Law for such use. M. Pursuant to State CEQA Guidelines Section 15378(b)(4), approval of the Agreement is not a project subject to the California Environmental Quality Act (“CEQA”), 427 3 394\01\941447.4 because this Agreement consists of the creation of a governmental funding mechanism for various affordable housing projects and programs, but does not commit funds to any specific project or program, in that environmental review required by CEQA shall be completed prior to the commencement of any Affordable Housing Project or Affordable Housing Program listed in the Affordable Housing Plan contained in Exhibit B. N. The City will provide on-going monitoring and provide all required reporting requirements to the State of California. O. By approving and entering into this Agreement, the Agency has pledged a portion of the tax increment revenue from the Project Area to fund the Affordable Housing Plan. The obligations set forth in this Agreement are contractual obligations that, if breached, will subject the parties to damages or other liabilities or remedies. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Trust, the City and the Agency agree as follows: ARTICLE 1 AGENCY GRANT Section 1.1 Agency Grant. Subject to the terms and conditions of this Agreement, the Agency hereby grants to the Trust, and the Trust hereby accepts from the Agency, a grant (the "Grant") in an annual amount not to exceed the amounts set forth in Sections 1.2 (a) and (b) for the applicable fiscal year. The Trust shall use the Grant to complete the Affordable Housing Plan as further provided in Article 2. Section 1.2 Grant Source. The sources of the Grant from the Agency to the Trust consist of: (a) All funds currently held by the Agency in the Housing Fund and not previously encumbered by binding contract for other activities, projects, or programs, in the amount One Million Dollars ($1,000,000) for fiscal year 2010-11 (the "Available Funds"); and (b) All future tax increment revenue allocated to, made available to, or otherwise received by the Agency or any Successor, to the extent such tax increment revenue (1) is or would be required pursuant to the Redevelopment Plan, the Settlement Agreement and the Redevelopment Law in effect as of the date of this Agreement to be deposited in the Housing Fund, and (2) is available to the Agency or Successor after the Agency or Successor makes all necessary annual payments required to be made with Housing Fund monies with respect to then existing debt obligations of the Agency, including, without limitation, bonded indebtedness and written agreements with other persons or entities, if any, in an amount not to exceed Two Hundred Fifty Thousand Dollars ($250,000) annually for the next fifteen (15) fiscal years commencing in fiscal year 2011-12 (the "Pledged Funds"). 428 4 394\01\941447.4 As used in this Agreement, "tax increment revenue" means and includes taxes allocated to, or made available to, or otherwise received by the Agency or a Successor pursuant to Health and Safety Code Section 33670 et seq. or other provision of the Redevelopment Law, or pursuant to any applicable constitutional provision, statute, or other provision of law now existing or adopted in the future to pay the debts and obligations of the Agency. As used in this Agreement, "Successor" includes any lawful successor of the Agency, and/or any lawful successor to any powers and rights of the Agency, pursuant to any applicable constitutional provision, statute or other provision of law now existing or adopted in the future. Section 1.3 Payment Procedure. The Agency shall pay the Available Funds to the Trust within sixty (60) days of the date of this Agreement. The Agency shall pay the Pledged Funds to the Trust within sixty (60) days after receipt of each installment of tax increment revenue in an amount equal to the portion of such tax increment revenue constituting Pledged Funds. Until needed to fund an Affordable Housing Project or Affordable Housing Program, the Trust shall invest all Grant funds received from the Agency in an investment vehicle acceptable to all parties, and shall apply all interest earned thereon toward the cost of the Affordable Housing Projects and Programs. Section 1.4 Indebtedness of the Agency. The obligation of the Agency to pay the Grant funds from the sources set forth in Section 1.2 to the Trust pursuant to this Agreement shall constitute an indebtedness of the Agency incurred in carrying out the Redevelopment Plan and a pledge of tax increment revenue received by the Agency or Successor from the Project Area to repay such indebtedness under the provisions of Article XVI, Section 16 of the Constitution of the State of California, the Redevelopment Law, and the Redevelopment Plan, or under any applicable constitutional provision, statute, or other provision of law now existing or adopted in the future. Section 1.5 Subordination. The parties agree that the obligation of the Agency to make payments pursuant to this Agreement is subordinate to any obligation of the Agency to utilize Housing Fund monies to pay debt service on tax increment bonds, or any other loans or agreements, heretofore or hereafter issued and secured by a pledge of and a lien upon tax increment revenue generated by the Agency in the Project Area and required by Redevelopment Law and Settlement Agreement to be deposited in the Agency's Housing Fund. ARTICLE 2 AFFORDABLE HOUSING PROJECTS AND PROGRAMS Section 2.1 Use of Grant and Term. The Trust shall use the Grant exclusively for the purposes of increasing, improving, and preserving the community's supply of housing available at affordable housing cost to low and moderate income households, lower income households, very low income households, and extremely low income households in accordance with the requirements of the Redevelopment Law, the 429 5 394\01\941447.4 Settlement Agreement and the terms and conditions of this Agreement. The Trust shall use the Grant to pay any costs which are eligible Housing Fund costs pursuant to Health and Safety Code Section 33334.2 et seq., including without limitation eligible costs of the Affordable Housing Projects and Programs shown in the Affordable Housing Plan and reasonable staff, consultant and other administrative costs in connection therewith (provided that administrative expenses will not exceed three percent (3%) annually unless modified pursuant to Section 2.4). In addition, the Trust understands and agrees that the Grant funds shall not pay for more than fifty percent (50%) of the total development costs for any Affordable Housing Project. The Trust shall expend the Grant funds and undertake the Affordable Housing Plan in accordance with all applicable laws and regulations, including without limitation, laws and regulations related to the permissible uses of Housing Fund monies, monitoring of housing assisted with Housing Funds, statutorily-required findings by the Agency Board and City Council, where applicable, prior to expenditures of Housing Funds, payment of prevailing wages (to the extent applicable), non-discrimination, and all applicable requirements of the Redevelopment Law, the Housing Element and the Settlement Agreement. The Trust further understands and agrees that each Affordable Housing Project funded with Grant proceeds must be subject to a restriction regulating certain of the units in the project to affordable housing cost for specified income levels, in a form to be provided and recorded by the Agency or its Successor, and effective for forty-five (45) years for ownership housing and fifty-five (55) years for rental housing. The Trust shall use the Grant funds for the various Affordable Housing Projects and Programs by not later than the earlier of (a) fifteen (15) years from the date of this Agreement, which date may be extended by written agreement of all the parties in the same manner as provided for modification of the Affordable Housing Plan as set forth in Section 2.2; and (b) the deadline for effectiveness of the Redevelopment Plan (the "Plan Effectiveness Deadline"), as set forth in the Redevelopment Plan (the "Term"). Within ninety (90) days following the City's fiscal year end (June 30th) throughout the Term of this Agreement, the Trust agrees to provide the Agency and the City annual reports regarding the amount of Grant funds unused to date, interest earned on Grant funds during that preceding fiscal year and information on the use of the Grant funds to date with specific details as reasonably requested by the City as needed for any reports required under the Redevelopment Law or the Settlement Agreement. Section 2.2 Consultation; Modification of Improvement Plan. The parties shall confer periodically to establish priorities and timing for funding and completion of the various Affordable Housing Projects and Programs, to review the scope and design of each Affordable Housing Project and Program, and to determine any mutually acceptable modifications in the cost estimates and budgets for the various Affordable Housing Projects and Programs. The parties may modify the Affordable Housing Plan from time to time: to provide for the use of additional federal, state and local funds; to account for unexpected revenues, whether greater or lesser; to modify, add, or delete an Affordable Housing Project or Program from the Affordable Housing Plan; to modify the cost estimate for individual Affordable Housing Projects and Programs; to maintain consistency with the City's General Plan, the Redevelopment Plan and the Settlement Agreement; or to take into consideration unforeseen circumstances, including without limitation circumstances that may come to light as a result of subsequent environmental 430 6 394\01\941447.4 review required by CEQA, as further described in Section 2.3. The Affordable Housing Plan may be modified by the Executive Director on behalf of the Trust, the City Manager on behalf of the City and the Executive Director on behalf of the Agency; provided, however, in no event shall the total Grant to be paid by the Agency to the Trust exceed the Maximum Grant Amount without a formal amendment of this Agreement approved by the Trust's board of directors, the City Council and the Agency Board; and, provided further, however, that any addition of any Affordable Housing Project or Program to the Affordable Housing Plan shall be conditioned upon the making of all required Redevelopment Law findings and CEQA findings by the City Council and the Agency Board in their policy discretion. Section 2.3 CEQA Review. Prior to the approval, use of Grant funds, and commencement of construction of any Affordable Housing Project or the implementation of any Affordable Housing Program (other than preliminary feasibility work that is exempt from the requirements of CEQA), all necessary environmental review required by CEQA shall be completed. All Affordable Housing Projects and Programs to be funded with Grant funds from the Agency pursuant to this Agreement must be consistent with CEQA. This Agreement in no way limits the discretion of the Planning Commission, the Agency, and City Council in completing environmental review of the Affordable Housing Projects. Section 2.4 Payment of Fees. The City shall provide any ongoing monitoring of Affordable Housing Projects and the Trust's activities under this Agreement, consultations regarding the Affordable Housing Plan and Programs under this Agreement, and all reporting to the State of California as required under the Redevelopment Law for as long as required under the Redevelopment Law, or any successor provisions of law. The Trust shall pay the City an administration fee of Twenty-Five Thousand Dollars ($25,000) for each of fiscal years 2011-12 and 2012-13 to cover these services. The Trust and the City may mutually agree in the future to additional administrative fees or other payments to be paid to the Trust or to the City, to the extent warranted at such times. Section 2.5 Ongoing Trust Obligations. The Trust shall be responsible for ongoing administration of the Housing Funds comprising the Grant. The Agency's grant and the Trust's acceptance of the Grant shall not imply any ownership or responsibility for the Affordable Housing Projects and Programs by the Agency or the City. Section 2.6 Indemnity. The Trust shall indemnify, defend, and hold the Agency, the City and their officers, board members, council members, agents, and employees, harmless against all claims, demands, damages, losses, costs, expenses, including without limitation, attorneys' fees and costs of litigation, or liabilities made against them which arise out of, or in connection with the Affordable Housing Projects and Programs; provided, however, that this indemnity shall not extend to any claim arising solely from the Agency's or City's negligence or the Agency's or City's negligent failure to perform its obligations under this Agreement. 431 7 394\01\941447.4 ARTICLE 3 GENERAL PROVISIONS Section 3.1 Notices, Demands and Communications. Formal notices, demands, and communications among the parties shall be sufficiently given if, and shall not be deemed given unless, dispatched by certified mail, return receipt requested, or delivered by an express delivery service with a receipt showing date of delivery, or hand delivered with a receipt showing date of delivery, to the principal offices of the parties as follows: Agency: City of Cupertino Redevelopment Agency 10300 Torre Avenue Cupertino, CA 95014 Attn: Executive Director City: City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 Attn: City Manager Trust: Housing Trust of Santa Clara County 95 S. Market St, Suite 610 San Jose, CA 95113 Attn: Executive Director Such written notices, demands and communications may be sent in the same manner to such other addresses as the affected party may from time to time designate by mail as provided in this Section. Delivery shall be deemed to have occurred at the time indicated on the receipt for delivery or refusal of delivery. Section 3.2 Relationship of Parties. Nothing contained in this Agreement shall be interpreted or understood by any of the parties, or by any third persons, as creating the relationship of employer and employee, principal and agent, limited or general partnership, or joint venture among the Agency, the City and the Trust or its agents, employees or contractors, and the Trust shall at all times be deemed an independent contractor and shall be wholly responsible for the manner in which it or its agents, or both, perform the services required of it by the terms of this Agreement. The Trust has and retains the right to exercise full control of employment, direction, compensation, and discharge of all persons assisting in the performance of services under the Agreement. The Trust shall be solely responsible for all matters relating to payment of its employees, including compliance with Social Security, withholding, and all other laws and regulations governing such matters, and shall be solely responsible for its own acts and those of its agents and employees. Section 3.3 No Claims. Nothing contained in this Agreement shall create or justify any claim against the Agency or the City by any person that the Trust may have 432 8 394\01\941447.4 employed or with whom the Trust may have contracted with respect to the Affordable Housing Projects. Section 3.4 Non-Liability of Officials. No member, official, employee or agent of the Agency or the City shall be personally liable to the Trust or any successor in interest, in the event of any default or breach by the Agency or City for any amount which may become due to the Trust or successor or on any obligation under the terms of this Agreement. Section 3.5 Actions of the Parties. Except as otherwise provided in this Agreement, whenever this Agreement calls for or permits a party's approval, consent, or waiver, the written approval, consent, or waiver of the Agency's Executive Director, the City's City Manager and the Trust's Executive Director (or their respective designees) shall constitute the approval, consent, or waiver of the Agency, City and the Trust, respectively, without further authorization required from the governing board of the party; provided, however, that the person vested with such authority may seek such further advice or authorization from the applicable governing board when she/he deems it appropriate. Section 3.6 Nondiscrimination. (a) In Performance of Agreement. The Trust and its contractors, subcontractors, agents, and employees shall not, because of the race, color, creed, religion, sex, sexual orientation, marital status, national origin, ancestry, familial status, source of income, age, or disability of any person, refuse to hire or employ the person, or refuse to select the person for a training program leading to employment, or bar or discharge the person from employment or from a training program leading to employment, or discriminate against the person in compensation or in terms, conditions or privileges of employment with respect to performance of this Agreement. (b) With Respect to Use of the Affordable Housing Projects. The Trust covenants by and for itself and its successors and assigns that there shall be no discrimination against or segregation of a person or of a group of persons on account of race, color, creed, religion, sex, sexual orientation, marital status, national origin, ancestry, familial status, source of income, age, or disability in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Affordable Housing Projects and programs. Section 3.7 Discretion Retained. The City's execution of this Agreement in no way limits the discretion of the City in the permit and approval process in connection with development of any Affordable Housing Project. In addition, the Agency retains the right to cease providing funding to the Trust from the source identified in Section 1.2(b) of this Agreement upon thirty (30) days written notice to the other parties and provided the Trust shall not be required to return any funds previously paid to the Trust under this Agreement, except to the extent required by court order. 433 9 394\01\941447.4 Section 3.8 No Third Party Beneficiaries. No person or entity other than the Agency, the City, the Trust and their permitted successors and assigns, shall have any right of action under this Agreement. Section 3.9 State Law. This Agreement, and the rights and obligations of the parties hereto, shall be construed and enforced in accordance with the laws of the State of California. Section 3.10 Records. The Trust shall maintain complete and accurate financial accounts, documents and records with respect to the performance of its obligations under this Agreement, and shall make same available to the Agency's or City's authorized agents for copying and auditing upon reasonable prior notice. Such accounts, documents and records shall be retained by the Trust for ten (10) years following completion of any applicable Affordable Housing Project. Section 3.11 Inspection of Documents. During the regular office hours and upon reasonable prior notice, the City and the Agency, by their duly authorized representatives, shall have the right to inspect and make copies of any books, records or reports of the Trust pertaining to this Agreement. Section 3.12 Additional Acts. The parties each agree to take such other and additional actions and execute and deliver such other and additional documents as may be reasonably requested by the other party for purposes of consummating the transactions contemplated in this Agreement. Section 3.13 Litigation Regarding Agreement Validity. In the event litigation is initiated attacking the validity of this Agreement, each party shall in good faith defend and seek to uphold the Agreement. Section 3.14 Validity of Agreement. If any provisions of this Agreement, or the application thereof to any person, party, transaction, or circumstance, is held invalid, the remainder of this Agreement, or the application of such provision to other persons, parties, transactions, or circumstances, shall not be affected thereby. Section 3.15 Entire Agreement; Modification and Amendment. This Agreement contains all of the agreements and understandings of the parties pertaining to the subject matter contained herein and supersedes all prior or contemporaneous agreements, representations and understandings of the parties. Except as otherwise provided in Section 2.2, this Agreement cannot be amended or modified except by written agreement of the parties. Section 3.16 Defaults and Remedies. If any party breaches any other material provision of this Agreement, one of the other parties shall first notify the breaching party and the other party in writing of the purported breach or failure, giving the breaching party thirty (30) days from receipt of such notice to cure or, if cure cannot be accomplished within thirty (30) days, to commence to cure such breach, failure, or act. In the event the breaching party does not then so cure within such thirty (30) days, or if the breach or failure is of such a nature that it cannot be cured within thirty (30) days, 434 10 394\01\941447.4 the breaching party fails to commence to cure within such thirty (30) days and thereafter diligently complete such cure within a reasonable time thereafter but in no event later than one hundred twenty (120) days, then the non-breaching parties shall be afforded all of their rights at law or in equity, by taking all or any of the following remedies: (a) terminating in writing this Agreement (provided, however, that the indemnification provisions of this Agreement shall survive such termination); (b) return of unused or improperly used Grant funds; and (c) prosecuting an action for damages or specific performance. Section 3.17 Binding Upon Successors. This Agreement shall be binding upon and inure to the benefit of the heirs, administrators, executors, successors in interest and assigns of each of the parties to this Agreement, whether by agreement or operation of law, and including, without limitation, any Successor to the Agency. Any reference in this Agreement to a specifically named party shall be deemed to apply to any successor, heir, administrator, executor or assign of such party who has acquired an interest in compliance with the terms of this Agreement, or under law. Section 3.18 Time Of The Essence. Time is of the essence in the performance of all duties and obligations under this Agreement. 435 11 394\01\941447.4 IN WITNESS WHEREOF, this Agreement has been executed as of the date set forth in the opening paragraph of this Agreement. CITY OF CUPERTINO REDEVELOPMENT AGECNY Approved as to Form __________________________ ____________________________________ Agency Counsel _____________, Chairperson CITY OF CUPERTINO Approved as to Form __________________________ ____________________________________ City Attorney _____________, City Manager HOUSING TRUST OF SANTA CLARA COUNTY ____________________________________ _____________, Executive Director 436 A-1 394\01\941447.4 EXHIBIT A 437 A-2 394\01\941447.4 438 A-3 394\01\941447.4 439 A-4 394\01\941447.4 440 A-5 394\01\941447.4 441 A-6 394\01\941447.4 442 A-7 394\01\941447.4 443 A-8 394\01\941447.4 444 A-9 394\01\941447.4 445 A-10 394\01\941447.4 446 B-1 394\01\941447.4 EXHIBIT B AFFORDABLE HOUSING PLAN I. Affordable Housing Projects and Programs. A. Types of Projects · Developer Loans for development of affordable rental housing · First Time Homebuyer Program consistent with Redevelopment Law – including down payment assistance, equity share or closing cost loans · Transitional Housing to assist with homeless prevention · Housing Rehabilitation consistent with Redevelopment Law B. Required Income Levels Pursuant to current Redevelopment Law and the Settlement Agreement, the Housing Fund monies provided to the Trust under this Agreement must be spent in the following percentages on the identified income levels, which percentages may be modified from time to time as the City's Regional Housing Needs Allocations are modified: · 24% on Extremely Low Income Units · 21% on Very Low Income Units · 30% on Low Income Units · 16% on Moderate, Low, Very Low or Extremely Low Income Units 447 1 394\01\941908.2 DRAFT RESOLUTION A RESOLUTION OF THE CITY OF CUPERTINO REDEVELOPMENT AGENCY APPROVING AN AFFORDABLE HOUSING AGREEMENT AND MAKING CERTAIN FINDINGS RELATED THERETO WHEREAS, the City Council of the City of Cupertino (“City”) has adopted the Redevelopment Plan (the "Redevelopment Plan”) for the Cupertino Vallco Redevelopment Project Area (the “Project Area"); and WHEREAS, the City of Cupertino Redevelopment Agency (the “Agency”) is engaged in various activities in its efforts to provide affordable housing and to remove the blighting conditions that still remain in the Project Area; and WHEREAS, in keeping with the goals of the Agency to eliminate blight and reduce physical and economic blight and to provide affordable housing in accordance with the Redevelopment Plan and Agency’s current Implementation Plan (the “Implementation Plan”), the City and Agency have been working cooperatively regarding the development of affordable housing and certain public improvements in the Project Area; and WHEREAS, due to the complexity of affordable housing projects with varying funding sources, the Agency and the City desire to enter into an Affordable Housing Agreement (the “Agreement”, a copy of which is on file with the City Clerk and Agency Secretary), with the Housing Trust of Santa Clara County (the "Trust") through which the Agency shall provide funding to the Trust from the Agency’s Low and Moderate Income Housing Fund (the “Housing Fund”), the City shall provide monitoring and reports to the state and the Trust shall work with developers to develop and provide funding for projects to increase, improve, and preserve the supply of affordable housing within the Project Area and the territorial jurisdiction of the City, and WHEREAS, implementation of the Agreement will assist the Agency to accomplish the stated goals in the Redevelopment Plan and its current Implementation Plan as described in the staff report accompanying this Resolution (the "Staff Report"); and WHEREAS, under the California Redevelopment Law (Health and Safety Code Section 33100 et seq.; the "Law"), before the Agency can expend money from its Housing Fund outside the area of the Redevelopment Plan, the Agency and the City must make specified findings pursuant to Health and Safety Code Section 33334.2(g); and WHEREAS, pursuant to State CEQA Guidelines Section 15378(b)(4), approval of the Agreement is not a project subject to the California Environmental Quality Act (“CEQA”), because the Agreement consists of the creation of a governmental funding mechanism for affordable housing projects, but does not commit funds to any specific affordable housing ATTACHMENT B 448 2 394\01\941908.2 project, in that environmental review required by CEQA shall be completed prior to the commencement of any affordable housing project pursuant to the Agreement; and WHEREAS, the Staff Report, the Redevelopment Plan, the report to City Council accompanying the Redevelopment Plan, and the Implementation Plan provide additional information upon which the findings and actions set forth in this Resolution are based. NOW, THEREFORE BE IT RESOLVED by the City of Cupertino Redevelopment Agency as follows: 1. All the Recitals above are true and correct and incorporated herein. 2. In compliance with Section 33334.2(g) of the Law, the Agency hereby finds that: assistance to affordable housing projects described in the Agreement and located outside the Project Area will be of benefit to the Redevelopment Plan, in that there is essentially no residential property within the Project Area and providing the funds would be a multi-year investment that would benefit Cupertino residents in the provision of affordable housing throughout the City of Cupertino. This finding is further based on the facts and analysis in the Staff Report incorporated in this Resolution. 3. The Agency agrees to make the Agency expenditures as called for in the Agreement for affordable housing projects pursuant to the Agreement, subject to completion of any environmental review required by CEQA prior to the commencement of any project pursuant to the Agreement. 4. The Agency hereby approves the Agreement and authorizes the Agency Chairperson to enter into and execute the Agreement on behalf of the Agency for the funding and completion of affordable housing projects pursuant to the Agreement, substantially in the form on file with the City Clerk and the Agency Secretary, with such revisions as are reasonably determined necessary by the Agency signatory, such determination to be conclusively deemed to have been made by the execution of the Agreement by the Agency signatory. The Agency Executive Director is authorized to implement the Agreement and take all further actions and execute all other documents which are necessary or appropriate to carry out the Agreement. 449 3 394\01\941908.2 5. The Agency hereby approves and appropriates (to the extent not already appropriated) the amounts necessary to fund the Agency's obligations under the Agreement as a lawful expenditure of Agency funds under the Law. The Agency's current fiscal year budget is hereby amended to the extent necessary to implement the foregoing appropriation. 6. The Agency Executive Director is hereby authorized and directed to file Notices of Exemption with respect to the Agreement in accordance with the applicable provisions of CEQA. 7. The Agency Executive Director is hereby authorized to take such further actions as may be necessary or appropriate to carry out the Agency’s obligations pursuant to this Resolution and the Agreement. 8. The Agency Secretary shall certify to the adoption of this Resolution. 9 . This Resolution shall take effect immediately upon adoption. PASSED AND ADOPTED at a regular meeting of the City of Cupertino Redevelopment Agency this 15th day of February, 2011, by the following vote: Vote Members of the Agency YES: NOES: ABSENT: ABSTAINED: ATTEST: APPROVED: __________________________ Agency Secretary, Chairperson, City of Cupertino Redevelopment Agency City of Cupertino Redevelopment Agency 450 1 394\01\941901.2 DRAFT RESOLUTION A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO APPROVING AN AFFORDABLE HOUSING AGREEMENT AND MAKING CERTAIN FINDINGS RELATED THERETO WHEREAS, the City Council of the City of Cupertino (“City”) has adopted the Redevelopment Plan (the "Redevelopment Plan”) for the Cupertino Vallco Redevelopment Project Area (the “Project Area"); and WHEREAS, the City of Cupertino Redevelopment Agency (the “Agency”) is engaged in various activities in its efforts to provide affordable housing and to remove the blighting conditions that still remain in the Project Area; and WHEREAS, in keeping with the goals of the Agency to eliminate blight and reduce physical and economic blight and to provide affordable housing in accordance with the Redevelopment Plan and Agency’s current Implementation Plan (the “Implementation Plan”), the City and Agency have been working cooperatively regarding the development of affordable housing and certain public improvements in the Project Area; and WHEREAS, due to the complexity of affordable housing projects with varying funding sources, the Agency and the City desire to enter into an Affordable Housing Agreement (the “Agreement”, a copy of which is on file with the City Clerk and Agency Secretary), with the Housing Trust of Santa Clara County (the "Trust") through which the Agency shall provide funding to the Trust from the Agency’s Low and Moderate Income Housing Fund (the “Housing Fund”), the City shall provide monitoring and reports to the state and the Trust shall work with developers to develop and provide funding for projects to increase, improve, and preserve the supply of affordable housing within the Project Area and the territorial jurisdiction of the City, and WHEREAS, implementation of the Agreement will assist the Agency to accomplish the stated goals in the Redevelopment Plan and its current Implementation Plan as described in the staff report accompanying this Resolution (the "Staff Report"); and WHEREAS, under the California Redevelopment Law (Health and Safety Code Section 33100 et seq.; the "Law"), before the Agency can expend money from its Housing Fund outside the area of the Redevelopment Plan, the Agency and the City must make specified findings pursuant to Health and Safety Code Section 33334.2(g); and WHEREAS, pursuant to State CEQA Guidelines Section 15378(b)(4), approval of the Agreement is not a project subject to the California Environmental Quality Act (“CEQA”), because the Agreement consists of the creation of a governmental funding mechanism for affordable housing projects, but does not commit funds to any specific affordable housing ATTACHMENT C 451 2 394\01\941901.2 project, in that environmental review required by CEQA shall be completed prior to the commencement of any affordable housing project pursuant to the Agreement; and WHEREAS, the Staff Report, the Redevelopment Plan, the report to City Council accompanying the Redevelopment Plan, and the Implementation Plan provide additional information upon which the findings and actions set forth in this Resolution are based. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Cupertino as follows: 1. All the Recitals above are true and correct and incorporated herein. 2. In compliance with Section 33334.2(g) of the Law, the City Council hereby finds that: assistance to affordable housing projects described in the Agreement and located outside the Project Area will be of benefit to the Redevelopment Plan, in that there is essentially no residential property within the Project Area and providing the funds would be a multi-year investment that would benefit Cupertino residents in the provision of affordable housing throughout the City of Cupertino. This finding is further based on the facts and analysis in the Staff Report incorporated in this Resolution. 3. The City Council consents to the Agency expenditures as called for in the Agreement for the affordable housing projects pursuant to the Agreement, subject to completion of any environmental review required by CEQA prior to the commencement of any project pursuant to the Agreement. 4. The City Council hereby approves the Agreement and authorizes the City Manager to enter into and execute the Agreement on behalf of the City for the funding and completion of affordable housing projects pursuant to the Agreement, substantially in the form on file with the Agency Secretary and the City Clerk, with such revisions as are reasonably determined necessary by the City signatory, such determination to be conclusively deemed to have been made by the execution of the Agreement by the City signatory. The City Manager is authorized to implement the Agreement and take all further actions and execute all other documents which are necessary or appropriate to carry out the Agreement. 5. The City Manager is hereby authorized and directed to file Notices of Exemption with respect to the Agreement in accordance with the applicable provisions of CEQA. 6. The City Manager is hereby authorized to take such further actions as may be necessary or appropriate to carry out the City’s obligations pursuant to this Resolution and the Agreement. 7. The City Clerk shall certify to the adoption of this Resolution. 8 . This Resolution shall take effect immediately upon adoption. 452 3 394\01\941901.2 PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 15th day of February, 2011, by the following vote: Vote Members of the City Council YES: NOES: ABSENT: ABSTAINED: ATTEST: APPROVED: City Clerk, City of Cupertino Mayor, City of Cupertino 453 STAFF REPORT TO BE DELIVERED ON FRIDAY, FEBRUARY 11 454 RDA RESOLUTION TO BE DELIVERED ON FRIDAY, FEBRUARY 11 455 COUNCIL RESOLUTION TO BE DELIVERED ON FRIDAY, FEBRUARY 11 456 AGREEMENT TO BE DELIVERED ON FRIDAY, FEBRUARY 11 457 STAFF REPORT TO BE DELIVERED ON FRIDAY, FEBRUARY 11 458 RESOLUTION TO BE DELIVERED ON FRIDAY, FEBRUARY 11 459