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103-2. Planning Commission Subcommittee report on process improvements.pdfEX14-11BITi lanning Commission Subcommittee Report on Process Improvements the approval of the Planning Commission, Planning Commission Chair Winnie Lee and Chair Marty Miller formed a subcommittee to meet with staff for the purpose of identifying and recommending efficiency improvements to the current permit approval process. The effort is not yet complete. However, a request was made of the subcommittee to provide a report on efforts to date for the February 15th Council hearing. This report is in response to that request. To date, the subcommittee focused mostly on residential permitting. Based on comments from past residential applicants this report proposes ways in which the efficiency of Cupertino's permit approval process can be substantially improved. These improvements are intended to reduce processing time, staff costs, and project approval costs without reducing important noticing alerts to neighbors. The City, the staff, and the applicant will all benefit. A more efficient and business friendly process will help the City attract desirable businesses and needed development to Cupertino. This will ultimately improve the City's finances as desirable businesses are attracted to the City and more retail dollars are spent here. At the last Process Workshop, a participant testified that a business owner, who originally planned to locate in Cupertino, switched to Sunnyvale instead because of the difficulty in obtaining the necessary permits from Cupertino. A more efficient process will reduce staff time and cost spent working on issues that add little value to the process or the end result. Finally, a more efficient process will reduce uncertainty and business risk leading to lower project costs and better rapport with the business community. Some proposed changes only require a modification to the current process. Others require a modification to an Ordinance, including the R l Ordinance as well. While some may be concerned about revisiting the R1 Ordinance, it has been opened up successfully in a limited way twice in the past 3 years. Recommended changes to the R1 and the BMR program will have an immediate positive impact. Please give it serious consideration. A list of changes and additions recommended to date include the following: 1. Provide comprehensive documentation of the entire process written from the applicant's point of view, including examples of filled in forms, detailed requirements, and expected deliverables for -each step. The current process is not fully documented. It is complex and daunting to first time applicants, requiring a great deal of personal interaction with the staff. The lack of documentation on the complete process results in lots of questions and sometimes inconsistent interpretation by members of the staff leading to further confusion. The applicant must contend with requirements from Public Works, Planning and Building. In some cases these requirements appear to overlap or conflict. For example, the Building Department reviews site improvement plans that were already approved as part of the Final Map approval, requiring additional sets of plans to do so. February 14, 2011 Planning Commission Subcommittee Report Page 1 2. Allow more parallel processing and reduce sequential processing where possible. There are many different tasks that must be completed by the applicant on the way to obtaining a building permit. The current process requires many of these tasks to be completed in sequence. This is true even when there are no interdependencies. For example, architectural approval is not given until after Final Map approval is achieved. Yet these two activities are not, or should not, be interdependent and can be completed separately. Allowing more parallel processing will reduce processing time. Staff approvals that can be delayed until later in the process should be conditioned and delayed. For example, final approval of landscaping plans could be delayed and conditioned on the granting of a Certificate of Occupancy. 3. Eliminate Unnecessary and redundant steps. As an example, requiring an evaluation of trees that are either inside a building footprint, or requested for removal by the Public Works Department because they interfere with required site improvements seems unnecessary. 4. Eliminate staff review of architecture. In most cases, homes in Cupertino are designed by licensed architects. In those instances where they are not, they could be reviewed by the City's architect, or an independent architect chosen by the applicant. Large and prominent projects should continue to be reviewed by the City's architect. However, staff in general does not have architectural training. Consequently, staff comments tend to include personal preferences and biases. Some architectural mandates and design criteria lead to conformity and the pallet of the City becomes very dull as a result. For example, limitations on the size of the second story led to the proliferation of the "wedding cake" design across the City. By comparison, Mountain View does not do architectural review on any single family homes. Yet, Cupertino's two story homes do not exhibit any better architecture than Mountain View's. The section of the RI Ordinance permitting; second stories with square footage greater than 45% of the first story is particularly onerous. Four sided architectural review is required and staff reviews these homes at great length and in great detail. The amount of relief that staff expects is especially challenging for smaller lots where space and flexibility is limited. Meeting staff s exterior relief requirements often results in poor interior functionality of the home itself. Yet, after considerable time and expense on architectural details, privacy landscaping requirements essentially hide the sides and rear yard from neighborhood view. Staff has also required that a tree be planted in the center of the front yard to obscure the architecture from the street. A better approach is needed. February 14, 2011 Planning Commission Subcommittee Report Page 2 5. Eliminate requirements that add very little in value in comparison to their cost in time and dollars. Staff requires that story poles outlining the ;second floor are placed in exactly the location that the walls and corners they represent will be built. Staff also requires that the poles define corners and roof elements in great detail. These requirements are very expensive to implement. They require an engineering survey and a time consuming construction process. The poles stay up for about 6 weeks and are: then torn down and disposed of. But, the level of detail that they represent is nearly impossible to visualize in practice. Because they only outline second story elements, they have the potential to give a misleading impression of the actual size of the home. Also required are renderings that are much more effective in giving residents an appreciation of what will actually be built. While renderings are very effective, story poles are very costly and add little value, They should be eliminated. When new Ordinance rules are recommended, a cost benefit analysis should be performed and their impact on existing rules should be evaluated before formal approval. 6. Staff requirements for landscaping should be reviewed by the Planning Commission and City Council and modified. Staff currently requires that the entire parcel be landscaped before a Certificate of Occupancy is given unless the applicant can unequivocally demonstrate that 2500 square feet of landscaping will never be exceeded. As an alternative, staff will accept the posting of an expensive bond to cover hypothetical landscaping costs. This requirement cannot be found anywhere in the Landscape Water Efficiency Ordinance. In fact, the Landscape Water Efficiency Checklist states that if no landscaping is being proposed, then nothing more need be done by the applicant. In most cases, a builder will landscape the front yard for curb appeal, but not landscape the backyard. Even when the backyard is landscaped, the landscaping is minimal and as inexpensive as possible. Backyard landscaping is a loss leader for a builder because new home buyers typically want to design the backyard landscaping personally. Even if the builder puts landscaping in, it is usually replaced within a short period of time. Staff s landscape requirements are very expensive and are not an effective solution to insuring adherence to the Landscape Water Efficiency Ordinance. 7. Eliminate unnecessary requirements for copies of architectural and engineering plans. As an example, a separate and full set of plans are required for a minor exception. This is true even though the minor exception plan set is no different than the plan set required for the home itself. If the new Permitting software enables the submittal of plans electronically, it will address this issue. However, until that software is implemented, unnecessary paper generation requirements should be eliminated. rebruary 14, 2011 Planning Commission Subcommittee Report Page 3 8. Review and modify fees and the fee structure Fees should be based, as much as possible, on Planner time spent. For large projects that require more time than a benchmark project, additional fees should be charged on a time and materials basis to ensure cost recovery. Currently, Cupertino does not charge for time spent with potential applicants until they fill out an application and make an actual submittal. The City should answer preliminary questions without charge. However, if an applicant wants staff to review a preliminary site plan, or design, and give meaningful feedback, Council could consider charging a modest fee for that service. San Jose follows a similar process and offers several upfront fee options for preliminary reviews. Once Council approves changes to the current permitting process, individual fees should be reduced or increased as appropriate. Consider collecting impact fees at the issuance of a Certificate of Occupancy, or Close of Escrow, instead of when the building permit is issued. Buildings do not have an impact on the City until after they are built. Consequently, it doesn't cost the City anything to delay the fee collection until after construction is complete. However, in the current economic environment, obtaining construction loans is very challenging. Because impact fees are a significant expense, delaying their collection until later in the project will reduce loan requirements and make obtaining a construction loan easier. 9. Review the BMR programs and reduce, eliminate, or offer an in lieu fee option. The BMR program is not the most effective: way to provide affordable housing and has been subject to abuse. It is a very expensive program and the burden of that expense is completely borne by the land owner, builder, and buyers of the homes on a particular site. Yet it is a City wide benefit. In the current economic environment, costly BMR programs have stopped projects from moving forward in Bay Area cities. Mountain View has an affordable housing program which permits the builder to pay an in lieu fee instead of building the units if the difference between the market sales price and the affordable sales price is greater than a threshold amount. Consider evaluating this program for implementation in Cupertino. The Matrix Report and the Community Workshops were helpful in identifying areas of opportunity to improve the application permitting process. This report, as a supplement to those efforts, has briefly outlined progress to date on identifying additional opportunities for process improvement. The current process is not well understood and consequently leads to confusion, time wasted, and less than optimal results. It is our recommendation that the Council allow the subcommittee's review process to continue to completion. Winnie Lee, Planning Commission Chair Marty Miller, Planning Commission Vice Chair February 14, 2011 Planning Commission Subcommittee Report Page 4