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11-17-2015 Searchable packetCITY OF CUPERTINO AGENDA Tuesday, November 17, 2015 10300 Torre Avenue and 10350 Torre Avenue CITY COUNCIL 5:30 PM Non-televised Closed Session (5:30) Followed by Televised Meeting (6:45) NOTICE AND CALL FOR A SPECIAL MEETING OF THE CUPERTINO CITY COUNCIL NOTICE IS HEREBY GIVEN that a special meeting of the Cupertino City Council is hereby called for Tuesday, November 17, 2015, commencing at 5:30 p.m. in City Hall Conference Room A, 10300 Torre Avenue, Cupertino, California 95014. Said special meeting shall be for the purpose of conducting business on the subject matters listed below under the heading, “Special Meeting." The regular meeting items will be heard at 6:45 p.m. in Community Hall Council Chamber, 10350 Torre Avenue, Cupertino, California. SPECIAL MEETING ROLL CALL - 5:30 PM City Hall Conference Room A, 10300 Torre Avenue CLOSED SESSION 1.Subject: Conference with Labor Negotiators (54957.6). Agency designated representatives: Assistant to the City Manager and Jaime Bodiford. Appointed employee: City Manager. 2.Subject: Conference with Legal Counsel - Anticipated Litigation: Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Government Code Section 54956.9 - One case 3.Subject: Conference with Real Property Negotiators (Government Code 54956.8). Property: Cupertino Municipal Water System. Agency Negotiator: Timm Borden. Negotiating Parties: City of Cupertino and San Jose Water Company. Under Negotiation: Terms for City Leased Asset 4.Subject: Conference with Legal Counsel - Anticipated Litigation: Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Government Code Section 54956.9 - One case ADJOURNMENT Page 1 CITY OF CUPERTINO November 17, 2015City Council AGENDA REGULAR MEETING PLEDGE OF ALLEGIANCE - 6:45 PM Community Hall Council Chamber, 10350 Torre Avenue ROLL CALL STUDY SESSION 1.Subject: Study Session on the Civic Center Master Plan - Financing Alternatives and Affordability Analysis Recommended Action: Receive staff presentation and provide direction Staff Report A - Financing Alternatives and Affordability Analysis CEREMONIAL MATTERS AND PRESENTATIONS 2.Subject: Update from the Housing Commission Recommended Action: Receive update 3.Subject: Update from the Planning Commission Recommended Action: Receive the update POSTPONEMENTS 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. 4.Subject: Approve the November 3 City Council minutes Recommended Action: Approve the minutes A - Draft Minutes 5.Subject: Approve Treasurer's Investment Report for the Quarter ending June 30, Page 2 CITY OF CUPERTINO November 17, 2015City Council AGENDA 2015 Recommended Action: Accept the report Staff Report A - Investment Portfolio B - Supplemental Portfolio Analysis 6.Subject: Approve Treasurer's Investment Report for the Quarter ending September 30, 2015 Recommended Action: Accept the report Staff Report A - Investment Portfolio B - Supplemental Portfolio Analysis 7.Subject: Approval of the First Quarter adjustments for Fiscal Year 2015-16 as described in the First Quarter Financial Report Recommended Action: 1. Accept the City Manager's First Quarter Financial Report for Fiscal Year 2015-16; and 2. Adopt Resolution No. 15-100 approving the First Quarter budget adjustments Staff Report A - Draft Resolution B - First Quarter Financial Report FY15-16 C - Performance Measures - Clean Version D - Performance Measures - Redline Version 8.Subject: A resolution to allow the use of electronic signatures (E-signatures) on City documents Recommended Action: Staff recommends that the City Council adopt Resolution No. 15-101 to allow the use of electronic signatures (E-signatures) on applicable City documents Staff Report A - Draft Resolution B - California Secretary of State Letter C - Secretary of State’s website FAQ 9.Subject: Approve the Employment Contract for the City Manager, and amend the Appointed Employees’ Compensation Program Recommended Action: a.) Adopt Resolution No. 15-102 approving the Third Amendment to the Employment Contract for the City Manager; and b.) Adopt Resolution No. 15-103 amending the Appointed Employees’ Compensation Program Page 3 CITY OF CUPERTINO November 17, 2015City Council AGENDA Staff Report A - Redlined Third Amendement to City Manager Employment Contract B - Draft Resolution to Amend Employment Contract C - Draft Resolution Amending Appointed Employees Compensation Program D - Appointed Employees Compensation Program E - Redlined amended Appointed Employees Compensation Program 10.Subject: Amendment to an existing consultant services agreement with David J . Powers and Associates for environmental review for a Specific Plan and project in the Vallco Shopping District Planning Area for a total contract in the amount of $919,245, and authorization for further amendments. Recommended Action: 1.Authorize an amendment to the existing “Agreement between the City of Cupertino and David J. Powers & Associates, Inc for the CEQA Environmental Review for the Vallco Specific Plan Redevelopment Project” consultant services agreement with David J. Powers and Associates, Inc. (DJP&A) for preparation of an Environmental Impact Report (EIR) for the Council’s consideration, for an additional amount not to exceed $164,940, for a total cost of $919,245. (Attachment A). 2.Authorize the City Manager to negotiate and execute additional future amendments to Item 1 above to the extent that funds are appropriated for the amendments and the total expenditures are cost-recovered from the applicant. 3.Approve an increase to the Fiscal Year 2015-16 Planning and Community Development-Mid to Long Term Planning program budget of $181,434 ($164,940 plus 10% administrative fee) Staff Report A - Amendment #2 B - Contract & Amendment #1 11.Subject: Amendment to increase City funding for the Memorandum of Understanding (MOU) (Attachment A) with the Santa Clara Valley Water District (District) for their Landscape Conversion Rebate Program (Program) Recommended Action: Staff recommends Council adopt Resolution No. 15-104 amending Approved FY 15/16 Operating Budget (Attachment B) and Authorize the City Manager to execute an amendment to the MOU with the District in an increased amount of up to $115,000 to supplement the District’s Program for the benefit of Cupertino residents and businesses Staff Report A - Memorandum of Understanding B - Draft Resolution C - October 30, 2015 District Press Release 12.Subject: 2016 Pavement Maintenance Project, Project No. 2016-15 authority to award contract Page 4 CITY OF CUPERTINO November 17, 2015City Council AGENDA Recommended Action: Authorize the City Manager to award and execute the 2016 Pavement Maintenance Project contract, including a 10% contingency, if the lowest responsive bid is within the established budget and there are no unresolved bid protests Staff Report A - List of Streets to Receive Pavement Maintenance Treatment B - Draft Contract 13.Subject: Funding agreement between the City of Cupertino and the Santa Clara Valley Transportation Authority (VTA) for the I-280/Wolfe Road Interchange Improvements Project Recommended Action: Authorize the City Manager to negotiate and execute a Funding Agreement with the VTA to identify the City of Cupertino and VTA ’s respective obligations for the I-280/Wolfe Road Interchange Improvements Project to the extent that the City of Cupertino’s contributions are expected to be reimbursed from project applicants and funds are appropriated for such purpose Staff Report A - Draft Funding Agreement between the City of Cupertino and the Santa Clara Valley Transportation Authority (I-280/Wolfe Road Interchange Improvements Project) SECOND READING OF ORDINANCES 14.Subject: Second reading of Ordinance and adopt amendments to the City's Zoning Map to rezone a 0.98 acre parcel from Light Industrial with Special Development Conditions (ML-fa) to Planned Development Zoning District with Light Industrial And Commercial Uses P(ML, CG)). (Z-2015-01, 10950 N. Blaney Avenue, APN: 316 03 041) Recommended Action: Conduct the second reading and enact Ordinance No. 15-2135: “An Ordinance of the City Council of the City of Cupertino rezoning a 0.98 acre parcel from Light Industrial with Special Development Conditions (ML-fa) to Planned Development Zoning District with Light Industrial And Commercial Uses P(ML, CG)" Staff Report A - Ordinance 15-2135 15.Subject: Second reading of ordinance amending Section 2.12.040 of the Cupertino Municipal Code to clarify the number of votes required to pass ordinances, resolutions, and certain orders to ensure that the Municipal Code is consistent with State Law Recommended Action: Conduct the second reading and enact Ordinance No. 15-2136: An Ordinance of the City Council of the City of Cupertino amending Section 2.12.040 of the Cupertino Municipal Code regarding the number of votes required for Ordinances, Resolutions, and Certain Orders Page 5 CITY OF CUPERTINO November 17, 2015City Council AGENDA Staff Report A - Draft Ordinance PUBLIC HEARINGS ORDINANCES AND ACTION ITEMS 16.Subject: First reading of an Ordinance amending Section 2.04.010 of the Cupertino Municipal Code regarding regular City Council meetings that fall on Election Tuesday in even-numbered years Recommended Action: Conduct the first reading Ordinance No. 15-2137: “An Ordinance of the City Council of the City of Cupertino amending Section 2.04.010 of Chapter 2.04 of Title 2 of the Cupertino Municipal Code regarding regular City Council meetings that fall on Election Tuesday in even-numbered years" Staff Report A - Redline Draft Ordinance B - Clean Draft Ordinance REPORTS BY COUNCIL AND STAFF 17.Subject: Report on Committee assignments and general comments Recommended Action: Report on Committee assignments and general comments ADJOURNMENT Page 6 CITY OF CUPERTINO November 17, 2015City Council AGENDA The City of Cupertino has adopted the provisions of Code of Civil Procedure §1094.6; litigation challenging a final decision of the City Council must be brought within 90 days after a decision is announced unless a shorter time is required by State or Federal law. Prior to seeking judicial review of any adjudicatory (quasi-judicial) decision, interested persons must file a petition for reconsideration within ten calendar days of the date the City Clerk mails notice of the City’s decision. Reconsideration petitions must comply with the requirements of Cupertino Municipal Code §2.08.096. Contact the City Clerk’s office for more information or go to http://www.cupertino.org/index.aspx?page=125 for a reconsideration petition form. In compliance with the Americans with Disabilities Act (ADA), anyone who is planning to attend the next City Council meeting who is visually or hearing impaired or has any disability that needs special assistance should call the City Clerk's Office at 408-777-3223, 48 hours in advance of the Council meeting to arrange for assistance. Upon request, in advance, by a person with a disability, City Council meeting agendas and writings distributed for the meeting that are public records will be made available in the appropriate alternative format. Also upon request, in advance, an assistive listening device can be made available for use during 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. Members of the public are entitled to address the City Council concerning any item that is described in the notice or agenda for this meeting, before or during consideration of that item. If you wish to address the Council on any issue that is on this agenda, please complete a speaker request card located in front of the Council, and deliver it to the Clerk prior to discussion of the item. When you are called, proceed to the podium and the Mayor will recognize you. If you wish to address the City Council on any other item not on the agenda, you may do so by during the public comment portion of the meeting following the same procedure described above. Please limit your comments to three (3) minutes or less. Page 7 CITY OF CUPERTINO CITY OF CUPERTINO Legislation Details (With Text) File #: Version:115-1194 Name: Status:Type:Closed Session Agenda Ready File created:In control:10/26/2015 City Council On agenda:Final action:11/17/2015 Title:Subject: Conference with Labor Negotiators (54957.6). Agency designated representatives: Assistant to the City Manager and Jaime Bodiford. Appointed employee: City Manager. Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. Subject:Conference with Labor Negotiators (54957.6).Agency designated representatives: Assistant to the City Manager and Jaime Bodiford. Appointed employee: City Manager. CITY OF CUPERTINO Printed on 11/10/2015Page 1 of 1 powered by Legistar™ CITY OF CUPERTINO Legislation Details (With Text) File #: Version:115-1207 Name: Status:Type:Closed Session Agenda Ready File created:In control:11/4/2015 City Council On agenda:Final action:11/17/2015 Title:Subject: Conference with Legal Counsel - Anticipated Litigation: Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Government Code Section 54956.9 - One case Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. Subject:Conference with Legal Counsel -Anticipated Litigation:Significant exposure to litigation pursuant to paragraph (2)of subdivision (d)of Government Code Section 54956.9 - One case CITY OF CUPERTINO Printed on 11/10/2015Page 1 of 1 powered by Legistar™ CITY OF CUPERTINO Legislation Details (With Text) File #: Version:115-1208 Name: Status:Type:Closed Session Agenda Ready File created:In control:11/4/2015 City Council On agenda:Final action:11/17/2015 Title:Subject: Conference with Real Property Negotiators (Government Code 54956.8). Property: Cupertino Municipal Water System. Agency Negotiator: Timm Borden. Negotiating Parties: City of Cupertino and San Jose Water Company. Under Negotiation: Terms for City Leased Asset Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. Subject:Conference with Real Property Negotiators (Government Code 54956.8).Property: Cupertino Municipal Water System.Agency Negotiator:Timm Borden.Negotiating Parties: City of Cupertino and San Jose Water Company.Under Negotiation:Terms for City Leased Asset CITY OF CUPERTINO Printed on 11/10/2015Page 1 of 1 powered by Legistar™ CITY OF CUPERTINO Legislation Details (With Text) File #: Version:115-1209 Name: Status:Type:Closed Session Agenda Ready File created:In control:11/4/2015 City Council On agenda:Final action:11/17/2015 Title:Subject: Conference with Legal Counsel - Anticipated Litigation: Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Government Code Section 54956.9 - One case Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. Subject:Conference with Legal Counsel -Anticipated Litigation:Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Government Code Section 54956.9 - One case CITY OF CUPERTINO Printed on 11/10/2015Page 1 of 1 powered by Legistar™ CITY OF CUPERTINO Legislation Details (With Text) File #: Version:115-1050 Name: Status:Type:Study Session Agenda Ready File created:In control:8/20/2015 City Council On agenda:Final action:11/17/2015 Title:Subject: Study Session on the Civic Center Master Plan - Financing Alternatives and Affordability Analysis Sponsors: Indexes: Code sections: Attachments:Staff Report A - Financing Alternatives and Affordability Analysis Action ByDate Action ResultVer. City Council11/17/2015 1 Subject: Study Session on the Civic Center Master Plan - Financing Alternatives and Affordability Analysis Receive staff presentation and provide direction CITY OF CUPERTINO Printed on 11/10/2015Page 1 of 1 powered by Legistar™ - 1 - OFFICE OF THE CITY MANAGER CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3212 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: November 17, 2015 Subject Study Session on the Civic Center Master Plan – Financing Alternatives and Affordability Analysis Background On July 7, 2015, Council approved the Civic Center Master Plan along with the Initial Study/Mitigated Negative Declaration and gave direction to staff to proceed with design for implementation of the master plan. The major elements of the master plan are:  City Hall: construct a new replacement building of 40,000 square feet, in the same general location on the civic center site as the existing city hall; to be a two - story building including an Emergency Operations Center (EOC) and space for community functions;  Parking: to be located underground below the new City Hall with capacity to park approximately 118 vehicles;  Library Program Room Expansion to be the “Perch” option to seat up to 130 people. On August 18, 2015, the City Council heard an item recommending that implementation of the approved Civic Center Master Plan move forward by authorizing the City Manager to enter into a design consultant services contract, a master agreement for already-funded phases of work up to $5,500,000, and for other agreements for other professional services necessary for the implementation, not to exceed $2,000,000. A motion to approve these actions failed, with three Councilmembers requesting to add a future agenda item seeking additional information on conceptual financing for the project. Attached is the report for Council’s discussion and consideration. - 2 - ____________________________________ Prepared by: Katy Jensen, Capital Improvement Program Manager Reviewed by: Timm Borden, Director of Public Works Department Approved for Submission by: David Brandt, City Manager Attachments: A - City of Cupertino Civic Center Master Plan – Project Rationale and Financing Approach/Affordability Study        City  of  Cupertino  Civic  Center  Master  Plan   Project  Rationale  and  Financing  Approach/Affordability     Since  2012,  City  Staff,  at  the  direction  of  the  City  Council,  has  been  analyzing  options   to  address  a  myriad  of  challenges  associated  with  the  existing  City  Hall/Civic  Center   site.    These  challenges  include:     • A  City  Hall,  constructed  in  the  mid-­‐1960’s,  that  has  exceeded  its  useful  life,   and   o Is  in  need  of  significant  seismic  upgrades;   o Contains  mechanical  systems  that  no  longer  meet  Building  Codes;   o Has  an  inefficient  electrical  system  that  cannot  accommodate  current   usage  –  causing  unreliable  service;   o Does  not  meet  the  requirements  to  house  an  Emergency  Operations   Center;   o Lacks  accessibility;     o Has  a  compromised  public  service  interface,  creating  inefficiencies  in   providing  community  service;   o Contains  insufficient  space  for  current  staffing  –  requiring  the  City  to   lease  an  increasing  amount  of  commercial  space  for  certain   departments  and  offering  no  room  for  future  growth.   • A  Library  whose  existing  capacity  and  functionality  cannot  accommodate  its   current  and  growing  popularity  and  community  demand  for  more   programming  and  meeting  space,  and   • Inadequate  parking  to  meet  the  demands  of  Civic  Center  users.     After  almost  three  years  of  intensive  analysis,  which  included  extensive  public   outreach,  assessment  of  numerous  alternatives  with  detailed  budget  estimates,  and   regular  City  Council  feedback1,  the  City  Council  adopted  Resolution  No.  15-­‐060  on   July  7,  2015  approving  the  Civic  Center  Master  Plan  (the  “Plan”).    The  Plan  includes   the  following  key  elements:    a  new  two-­‐story  city  hall  building  of  up  to  40,000  gross   square  feet,  118-­‐space  underground  parking,  and  a  library  expansion  consisting  of  a   “perched”  addition  for  a  130-­‐seat  program  room.     The  City  Council  directed  staff  to  prepare  a  financing  plan  for  its  consideration   relating  to  the  implementation  of  the  approved  Civic  Center  Master  Plan.    This   report  is  in  response  to  that  directive.    This  report  has  three  parts.     • Part  I:    Reviews  the  implementation  costs  of  the  proposed  Civic  Center   Master  Plan  and  the  economic  rationale  for  that  approach  compared  with  the   alternatives.                                                                                                                   1  Council  either  discussed,  gave  direction  or  took  action  with  respect  to  the  Civic  Center  Master  Plan   approximately  nine  times  between  December  2012  and  August  2015.   Civic  Center  Master  Plan  –  Project  Rationale  and  Financing  Approach/Affordability   October  16,  2015     2  |  Page     • Part  II:    Reviews  the  proposed  financing  approach  for  the  Civic  Center  Master   Plan.   • Part  III:    Examines  the  financial  impacts  of  such  a  financing  on  the  City  in  the   context  of  its  general  affordability  and  debt  assessment  criteria  used  by  the   rating  agencies.       The  conclusion  of  this  report  is:     • The  Plan  provides  an  overall  cost-­‐effective  and  comprehensive  solution  to  the   needs  of  the  City  and  its  residents;   • The  Plan  satisfies  the  criteria  used  by  City  staff  in  evaluating  different  master   plan  schemes;   • The  Plan  is  in  line  with  the  size  and  cost  of  civic  center  projects  implemented  by   comparable  cities;  and   • The  Plan  can  be  financed  with  traditional  tax-­‐exempt  lease  financing  at  an   annual  cost  that  is  affordable  to  the  City.     Part  I    The  Civic  Center  Master  Plan      In  developing  the  recommended  approach  to  addressing  the  challenges  associated   with  the  existing  Civic  Center,  staff  sought  to  design  a  plan  that  would  achieve  the   following  goals:     • Establish  City  Hall  as  a  resilient  building,  designed  to  allow  immediate   occupancy  after  a  sizable  earthquake  and  to  house  an  Emergency  Operations   Center;   • Resolve  the  existing  parking  shortage  on  the  existing  site  and  provide   additional  parking  for  library  expansion;   • Provide  additional  program  space  for  the  library  which  frees  up  the   Community  Hall  for  other  users;   • Provide  more  community  meeting  space;  and   • Provide  for  a  more  customer-­‐friendly  interface  in  City  Hall.     In  principle,  the  City  could  achieve  these  goals  with  a  civic  center  plan  that  consists   of  a  variety  of  library  addition  configurations,  and  either  (a)  a  seismic  code  retrofit   of  City  Hall  and  a  separate  parking  garage,  or  (b)  a  new  City  Hall  and  underground   parking.         New  City  Hall  vs.  Seismic/Accessibility  Remodel  of  Existing  City  Hall   The  assessment  of  the  City  Hall  options  involved  a  cost  benefit  analysis.    Originally,   the  comparison  was  between  a  smaller  new  City  Hall  (recommended  by  staff)  and   the  remodel  of  existing  City  Hall.    However,  the  City  Council  approved  a  new  City   Hall  that  was  larger  than  the  staff-­‐recommended  approach  to  allow  for  additional   community-­‐programmed  space  and  growth  capacity.       Civic  Center  Master  Plan  –  Project  Rationale  and  Financing  Approach/Affordability   October  16,  2015     3  |  Page     The  table  below  provides  a  high  level  summary  of  the  benefits  and  costs  of  the  three   approaches:         We  note  the  following  with  respect  to  the  costs  for  each  of  these  options:     • The  costs  shown  in  the  chart  above  summarize  underlying  detailed  cost   elements  that  include:  demolition  and  construction;  site  work;  design   consultants;  direct  and  indirect  City  staff  costs;  construction  management;   financing  costs;  relocation  and  temporary  leasing  for  City  staff;  furniture,   fixtures  and  equipment  (“FFE”);  design  contingency  (15%  of  direct  costs);  hard   cost  contingency  (10%  of  direct  costs);  and  escalation  (3  years  to  project   midpoint).     • All  of  these  costs  are  “industry  standard”  for  budget  estimates  for  projects  at  the   high-­‐level  master  planning  stage.  The  estimates  were  prepared  by  a  professional   cost-­‐estimating  consultant,  TBD  Consultants  (http://www.tbdconsultants.com)   and  are  based  on  standard  industry  practice,  professional  experience  and   knowledge  of  the  local  construction  markets.  The  estimates  were  then  peer   reviewed  by  the  City’s  on-­‐call  estimating  consultant,  Cumming   (http://www.ccorpusa.com).  The  consultants  then  met  and  reconciled  their   New$City$Hall!!!!!!!!!!! Council$Approved!!!!!!!!!!!!!!!!! costs!as!of!07/07/15 New$City$Hall$$$$$$$$$$$$$$$$$$$$$ Staff$Recommendation!!!!!! costs!as!of!07/07/15 Seismic/Accessibility$ Remodel$of$Existing$ City$Hall!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! costs!as!of!10/21/14 Project$Benefits Useful'Life 50!years 50!years 25!years Square'Footage 40,000 35,000 26,000 EOC' Operations/Resilience State!of!Art!Emergency! Communication!System State!of!Art!Emergency! Communication!System Existing!Emergency! Communication!System Parking Underground Underground New!structure!east!!of!Library Sustainability Meets!LEED!Silver/Cupertino! Climate!Action!Plan,!including! lower!utility!costs!–!Projected! impacts!of!$1/sf/yr!in!energy! costs;!25!kBTU/sf/yr Meets!LEED!Silver/Cupertino! Climate!Action!Plan,!including! lower!utility!costs!–!Projected! impacts!of!$1/sf/yr!in!energy! costs;!25!kBTU/sf/yr Cannot!achieve!similar! efficiencies!–!Projected! impacts!of!$3.63/sf/yr!in! energy!costs;!106!kBTU!/sf/yr Public'Interface Improved!with!additional! community!space Improved!with!additional! community!space Improved!U!no!additional! community!space Functionality/Future' Growth'Accommodated Accommodated Not!accommodated!–!still! need!to!lease!satellite!space Estimated$Cost$($MM) City'Hall'Structure $56.20!$51.1 $14.30! EOC'Operations included included 3.7 Parking included included 9 Total'Costs $56.20!$51.1 $27.00! Civic  Center  Master  Plan  –  Project  Rationale  and  Financing  Approach/Affordability   October  16,  2015     4  |  Page     estimates  to  develop  what  was  ultimately  included  in  an  appendix  to  the   approved  Civic  Center  Master  Plan.     • Costs  for  completed  municipal  buildings  are  somewhat  helpful  for  comparison   purposes,  however  those  are  actual  costs  and  no  longer  include  design  and   construction  contingencies.  Published  private  construction  costs  are  typically  for   building  “shells”  and  also  do  not  include  design  and  construction  contingencies,   FF&E,  any  temporary  lease  costs,  design  costs,  construction  management  costs,   or  financial  advisors  or  bond  counsels.  Also,  private  contractors  typically  do  not   pay  prevailing  wage  labor  costs  –  which  can  account  for  a  significant  difference.         Focusing  on  the  Council-­‐approved  approach  vs.  the  remodel  approach,  the  table   suggests  that  the  new  City  Hall  would  be  approximately  twice  the  cost  of  a   seismic/accessibility  upgrade  of  existing  City  Hall  coupled  with  EOC  Operations  and   additional  parking.    While  the  cost  differential  between  the  two  approaches  would   narrow  if  the  remodel  costs  were  updated  from  the  October  2014  value,  the  new   City  Hall  clearly  entail  a  greater  outlay  of  funds.    However,  the  new  City  Hall   represents  a  prudent  use  of  funds  and  a  better  investment  by  the  City  for  the   following  reasons:     • The  new  City  Hall  will  house  an  Emergency  Operations  Center  that  can   provide  state  of  the  art  emergency  communication  systems  during  and  after   a  major  seismic  event.    This  need  is  a  major  driver  for  a  new  City  Hall.    With   the  remodel  approach,  the  City  must  rely  on  its  existing  and  outdated   systems.     • The  new  City  Hall  will  increase  square  footage  by  50%  over  the  remodel   approach.    The  new  City  Hall  will  be  able  to  house  its  existing  employees,   accommodate  future  staffing  growth,  and  will  eliminate  the  City’s  reliance  on   commercial  office  space  to  meet  overflow  needs  (as  is  the  case  with  the  City   Attorney’s  Office).     • The  underground  parking  at  a  new  City  Hall  preserves  the  site  east  of  the   Library  for  recreational  or  other  uses  or  as  a  potential  development   opportunity.    In  addition,  it  provides  for  better  circulation  around  the  Civic   Center  area.    By  not  constructing  an  above-­‐ground  parking  garage,  the  City   would  retain  the  softer  interface  between  the  Civic  Center  and  the   neighborhood  immediately  to  the  east,  and  meets  the  popular  desire  of  the   community  as  expressed  through  project  outreach.   • The  new  City  Hall  will  be  considerably  more  efficient  to  operate.    The  annual   energy  requirements  (kBTU/square  foot)  will  decline  by  more  than  75%  per   square  foot.   • The  new  City  Hall  will  provide  a  useful  life  of  50  more  years  –  double  the   useful  life  provided  by  a  remodeled  City  Hall.    Comparing  costs  of  the  two   approaches  today  ignores  the  financial  impacts  on  the  City  in  the  future.     Civic  Center  Master  Plan  –  Project  Rationale  and  Financing  Approach/Affordability   October  16,  2015     5  |  Page     The  Council-­‐approved  City  Hall  option  will  result  in  an  attractively  designed  facility   that  is  appropriately  sized  for  the  site,  is  highly  functional  and  efficient,  and  achieves   all  of  the  objectives  of  the  City.    It  is  also  in  keeping,  if  not  modest  by  comparison,   with  city  halls  in  other  Bay  Area  communities  with  similar  populations  to  the  City:         Library  Improvements   The  improvements  to  the  Library  represent  a  project  cost  that  is  separate  and   distinct  from  the  considerations  associated  with  the  City  Hall  analysis.    The  City   Council  evaluated  four  options  for  the  Library  with  the  goal  of  expanding  seating   capacity  from  30  to  130  people:     • Option  1  –  Expansion  of  the  existing  Library  Story  Room.    Estimated  cost  of  $5.1   million.   • Option  2  –  Single  story  expansion  to  add  a  new  room  with  a  seating  capacity  of   130  people  and  modify  the  interior  to  provide  support  elements  to  the  Program   Room.    Estimated  cost  of  $5.3  million.   • Option  3  –  Courtyard  infill  expansion  that  envisions  a  new  single  story  building   in  the  interior  courtyard  space.    Estimated  cost  of  $6.0  million   • Option  4  –  Perch  expansion  involving  the  new  construction  of  a  two  story   building  to  be  built  over  the  Children’s  Reading  Area.    Estimated  Cost:  $6.9   million.     The  City  Council  chose  to  pursue  Option  4  as  this  option  contains  optimal   proportions;  allows  seating  flexibility;  has  no  impact  on  Memorial  Grove;  retains  the   existing  Story  Room;  is  favored  by  Library  Staff,  the  Cupertino  Library  Foundation   and  Friends  of  the  Library;  and  entails  minimal  disruption  of  the  Library  during   construction.     Part  II    Financing  the  New  City  Hall       The  suggested  plan  of  finance  for  the  new  City  Hall  involves  a  tax-­‐exempt  fixed  rate,   long-­‐term  lease  financing  transaction.    The  source  of  repayment  would  be  annual   appropriations  from  the  City’s  General  Fund.    This  approach  is  well  established  in   California,  is  used  frequently  by  the  State  and  local  governments  to  finance  public   facilities,  and  is  the  same  approach  implemented  by  the  City  to  finance  the  public   library  and  animal  shelter  in  2002  and  other  public  improvements  in  the  1990’s  –   Jurisdiction Population FTE Operating5GF5Budget Year5Built Square5Feet Cupertino 61,00055555555 181 $68.25million 1960's 26,00055555555 Brentwood 56,00055555555 305 43.65million 2012 65,00055555555 Dublin 52,00055555555 94 63.35million 2000*53,00055555555 Milpitas 70,00055555555 328 76.65million 2002 68,00055555555 Redwood5City 80,00055555555 559 101.95million 1997 42,50055555555 Walnut5Creek 65,00055555555 348 77.65million 2002*70,00055555555 *Renovation5and5Addition Civic  Center  Master  Plan  –  Project  Rationale  and  Financing  Approach/Affordability   October  16,  2015     6  |  Page     which  obligations  were  refinanced  in  2012.    See  Appendix  A  for  a  listing  of  California   cities  that  have  lease  financed  city  hall  or  civic  center  improvements.     The  reasons  that  governments  implement  tax-­‐exempt  lease  financing  for  public   facility  projects  include:     • Spread  the  cost  of  the  facility  over  its  useful  life;   • Allocate  the  cost  of  the  facility  among  the  generation  of  residents  that  will   benefit  from  it;  and     • Preserve  cash  for  other  projects  that  cannot  be  tax-­‐exempt  financed.     Unlike  General  Obligation  Bonds,  lease  financing  does  not  require  a  public  vote.     General  Obligation  Bonds  involve  a  pledge  of  the  City’s  “full  faith  and  credit”  and  its   taxing  power  and,  by  State  Constitution,  requires  a  two-­‐thirds  vote  of  the  electorate.     Lease  financing  involves  no  such  pledge  and  does  not  require  an  increase  in  taxes  or   any  pledge  to  obligate  tax  revenues.     A.  The  Lease  Financing  Structure     1.  Transaction  Overview     The  lease  financing  of  a  new  City  Hall,  which  likely  will  take  the  form  of  Certificates   of  Participation  (“COPs”),  involves  the  following  elements:     • The  City  will  cause  the  issuance  of  COPs  in  the  public  marketplace.   o COP  proceeds  will  be  held  by  a  trustee  representing  certificate  holders   (the  “Trustee”)  and  used  to  fund  construction  costs  of  the  new  City  Hall.     • Concurrently  with  the  sale  of  the  COPs,  the  City  will  enter  into  a  leasing   arrangement  with  the  Cupertino  Public  Facilities  Corporation  (the  “CPFC”)  with   respect  to  the  new  City  Hall  or  other  asset,  as  discussed  later  in  this  report  (the   “Asset”).   o Under  a  Site  or  Facilities  Lease,  the  City  will  convey  the  Asset  to  the  CPFC.   o Under  a  Lease  Agreement,  the  CPFC  will  lease  the  Asset  back  to  the  City.     • Under  the  Lease  Agreement,  the  City  will  make  semi-­‐annual  rental  payments  to   the  CPFC.   o The  CPFC  will  assign  those  rental  payments  to  the  Trustee.   o The  Trustee  will  apply  the  payments  to  make  principal  and  interest  (“P  &   I”)  payments  to  the  COP  holders.     See  Appendix  B  for  a  diagram  of  the  financing  structure.         Civic  Center  Master  Plan  –  Project  Rationale  and  Financing  Approach/Affordability   October  16,  2015     7  |  Page     2.  Rental  Payments     The  City’s  rental  payments  will  fund  the  principal  and  interest  payments  to  the  COP   Holders.    Rental  payments  will  be  subject  to  the  following  requirements  and   conditions:     • The  rental  payments  are  to  be  annually  appropriated  from  the  City’s  General   Fund.   o The  City  will  covenant  to  include  rental  payments  in  its  annual  budgets.   o Annual  rental  payments  will  be  fixed  throughout  the  COP  term.     • Rental  payments  may  not  exceed  the  fair  rental  value  of  the  Asset.     • If  the  Asset  is  damaged  or  condemned,  the  rental  payments  will  be  subject  to   abatement.     • The  obligation  to  make  rental  payments  is  annual.   o Under  California,  this  obligation  does  not  constitute  “debt”  that  is  subject   to  voter  approval.     • Failure  to  make  a  rental  payment  will  not  result  in  an  acceleration  of  the  COPs.   o The  City  may  be  sued  for  past  due  rental  payments  (on  an  annual  basis).   o The  Trustee  may  have  the  right  to  enter  and  re-­‐let  the  facilities.     3.  The  Leased  Asset     The  value  of  the  Asset  must  equal  or  exceed  the  par  amount  of  the  COPs.    The   outstanding  COPs  currently  have  leases  against  City  Hall,  the  Community  Hall,  the   Library,  and  the  land  on  which  all  three  facilities  are  located.    With  the  proposed   Project  and  the  lease  structure,  there  are  two  options:     • Lease  the  Asset  being  constructed,  expanded,  or  improved  (may  require   amendment  of  the  existing  lease  agreement)   o Requires  the  funding  of  interest  during  construction,   o Effect:    funded  interest  increases  the  COP  borrowing  amount  and  annual   rental  payments,  but  defers  payments  until  after  construction.     • Asset  Transfer   o Lease  an  alternate  asset  that  is  already  in  existence  and  unencumbered,   § Value  of  Asset  must  equal  or  exceed  COP  par,   o City  can  begin  rental  payments  in  first  year,  eliminating  the  need  to  fund   interest  during  construction,   o Effect:    lower  City’s  cost  of  borrowing.         Civic  Center  Master  Plan  –  Project  Rationale  and  Financing  Approach/Affordability   October  16,  2015     8  |  Page     C.  Credit  Matters     1.  Rating  Agency  Considerations       Rating  agencies  tend  to  rate  COPs  one  notch  lower  than  the  issuer’s  general   obligation  credit  or  issuer  credit  rating.    As  the  City  is  rated  AAA  by  Standard  &   Poor’s  (“S&P”),  the  COPs  will  likely  be  rated  “AA+”  similar  to  the  2012  Refunding   COP  transaction.    The  credit  analysis  will  focus  on  the  following  factors:     • City’s  General  Creditworthiness  –  This  will  be  evaluated  on  the  basis  of  the   following  factors:   o Overall  debt  structure  and  burden  –  rating  agencies  will  look  at   traditional  debt  (i.e,,  other  outstanding  financings)  and  unfunded   pension/OPEB  liabilities,   o Economic  and  tax  base  factors  –  these  refer  to  income  levels,  assessed   values,  unemployment  and  similar  metrics.    These  will  be  strong  for  the   City  (as  well  as  most  Bay  Area  cities),   o Financial  flexibility,  performance  and  position  –  these  generally  pertain  to   the  (a)  City’s  overall  reserves  and  liquidity  position,  and  (b)  trend  of   financial  operations  –  to  insulate  itself  from  unexpected  contingencies,   o Administrative  and  management  factors  –  these  are  more  qualitative   assessments  which  are  positively  impacted  by  the  existence  of  strong   financial  policies,  budgetary  practices  and  accuracy,  and  other  indications   of  fiscal  discipline.     • Documentation  and  Security  –  The  rating  agencies  will  consider  the  following   factors:   o Whether  the  financing  term  is  appropriate  for  the  asset  being  financed  or   leased,   o Inclusion  of  a  covenant  to  budget  and  appropriate  –  this  is  a  central   feature  of  California  leases,   o Timing  –  whether  payment  dates  accommodate  a  potential  delay  in   adopting  a  budget  for  the  following  fiscal  year   § Payment  dates  of  September/March  or  October/April  are  ideal,   § Alternatively,  the  City  can  fund  a  debt  service  reserve,   o Approach  to  abatement  risk   § During  construction  risk  –  either  capitalize  interest  or  use  the   asset  transfer  option,   § Rental  interruption  insurance  –  in  the  event  the  leased  asset  is   damaged  or  destroyed,   o Other  insurance  provisions  –  title  insurance,  and  property  &  casualty   (earthquake  insurance  is  not  required),   o Lease  remedies  –  is  the  remedy  of  re-­‐entering/re-­‐letting  available?     Civic  Center  Master  Plan  –  Project  Rationale  and  Financing  Approach/Affordability   October  16,  2015     9  |  Page     • Essentiality  of  the  Leased  Asset  –  this  is  an  important  consideration  for   Moody’s  (which  currently  does  not  rate  the  City),  but  it  is  less  important  to  S&P.     Buildings  that  perform  essential  government  functions  –  such  as  City  Halls,   Public  Safety  Buildings,  Courts  –  are  favored  as  their  essential  functions  increase   the  likelihood  that  an  appropriation  will  be  made  in  times  of  fiscal  stress.     D.  The  Financing  Process     The  financing  process  involves  the  following  basic  steps  once  a  decision  to  finance   the  City  Hall  project  is  made  among  the  City,  Bond  Counsel  and  Financial  Advisor.     1.  General  Timing  Considerations   • Generally,  the  financing  occurs  when  the  project  is  in  a  sufficient  state  of   readiness  with  the  project  fully  designed  and  costed,   o Approvals  obtained   o No  environmental  or  planning  issues   o Ideally,  contract  is  bid   • From  a  Federal  tax  law  standpoint,  the  City  must  have  the  reasonable   expectation  to  spend  85%  of  the  COP  proceeds  within  3  years.     2.  Threshold  Decisions   • Form  of  lease  financing  –  COPs  vs.  lease  revenue  bonds,   • Structure  –  Asset  transfer  or  lease  project  to  be  constructed,   • Manner  of  sale  –  Competitive  vs.  Negotiated  sale,   o Competitive  sale  –  All  underwriters  are  invited  to  bid  with  award   made  to  firm  bidding  the  lowest  true  interest  cost   o Negotiated  sale  –  Pre-­‐select  an  underwriter  to  pre-­‐market  the  COPs  to   investors  and  fine  tune  the  structure  based  on  market  inputs   o Key  factors:    stability  of  bond  market;  complexity  of  transaction   § The  City  could  likely  sell  the  COPs  through  a  competitive  sale.     3.  Documentation  Process   • Legal  documents  –  Resolution,  Lease  Agreement,  Assignment  and  Indenture,   • Sale  documents  –  Official  Statement,  Notice  of  Sale  (if  competitive  sale),   Purchase  Agreement  (if  negotiated  sale),   • Council  approval  of  substantially  final  documents.     4.  Rating  Process     • Submit  documents,  cash  flows,  and  City  CAFRs  to  rating  agencies,   • Prepare  credit  presentation,   • Receive  rating.     5.  Sale  Process   • If  competitive  sale:   o Publish  notice  of  intention  to  sell  COPs  in  Bond  Buyer     Civic  Center  Master  Plan  –  Project  Rationale  and  Financing  Approach/Affordability   October  16,  2015     10  |  Page     o Post  Preliminary  Official  Statement  and  Notice  of  Sale  to  I-­‐deal   website   o Receive  bids  electronically  through  PARITY  system   o Close  transaction  approximately  two  weeks  later     • If  negotiated  sale:   o Post  Preliminary  Official  Statement  to  printer’s  website   o Underwriter  pre-­‐markets  the  COPs   o Set  date  for  sale     § Underwriter  sets  initial  scale     § Underwriter  takes  orders  based  on  scale   § Underwrite  finalizes  scale  based  on  investor  demand   § Sign  Purchase  Agreement   § Close  transaction  two  weeks  later       Part  III  Financial  Impacts  on  the  City  and  Affordability       A  Financial  Impacts  of  a  Lease  Financing     1.  General     The  lease  financing  will  entail  annual  appropriations  from  the  City’s  General  Fund  to   pay  principal  and  interest  on  the  COPs.    The  amount  of  those  appropriations  will   depend  on  the  following  factors:     • Interest  rates   • Amount  borrowed   • Term  of  financing   • Amortization  structure   • Credit  rating     Interest  rates  are  set  at  the  time  of  the  COP  sale.    While  one  cannot  predict  future   interest  rate,  current  rates  remain  near  historic  lows.     Tax-­‐exempt  municipal  bonds  are  benchmarked  off  the  Municipal  Market  Data   (MMD)  index  for  high-­‐grade  bonds.    The  MMD  provides  yields  for  each  maturity   between  1  to  30  years.    The  chart  below  tracks  MMD  yields  for  5,  10,  and  30  years   since  1993.    Generational  lows  were  attained  in  the  early  part  of  2015  and  have  not   risen  materially.       Civic  Center  Master  Plan  –  Project  Rationale  and  Financing  Approach/Affordability   October  16,  2015     11  |  Page             The  chart  below  compares  recent  MMD  yields  (red  line)  with  historical  MMD  yields   over  a  2  year  (shorter  thick  gray  shaded  area)  and  a  20  year  period  (taller  dark   line).    In  addition,  the  chart  shows  the  lowest  year-­‐to-­‐date  MMD  yields  (broken   yellow  line).    While  current  interest  rates  exceed  year-­‐to-­‐date  lows,  they  remain   towards  the  low  end  of  their  two-­‐year  range  and  very  low  in  comparison  to  the   range  of  interest  rates  experienced  over  the  past  20  years.       The  conclusion  is  that  for  issuers  with  projects  to  be  financed,  the  current  market  is   extremely  favorable.    For  a  30-­‐year  lease  financing,  the  City’s  borrowing  rate  would   approximate  3.5%.     2.  Financial  Impacts  Under  Different  Scenarios     Any  of  the  approaches  the  City  may  take  with  respect  to  the  Civic  Center   improvements  likely  will  involve  a  lease  financing.    The  par  amount  issued  will  be   based  on  the  amount  projects  cost,  transaction  costs  and  debt  service  reserves  that   Historical MMD Yields 0% 2% 4% 6% 8% 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 5Y MMD 10Y MMD 30Y MMD Current Versus Historical MMD Yields (%) 0 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Current 20-Year Range 2-Year Range YTD Low   Civic  Center  Master  Plan  –  Project  Rationale  and  Financing  Approach/Affordability   October  16,  2015     12  |  Page     are  funded.    The  City  can  reduce  the  amount  it  borrows  by  cash  funding  a  portion  of   the  project  costs.     Assuming  the  City  cash  funds  from  existing  resources  a  portion  of  the  project  costs   to  reduce  the  amount  borrowed,  a  lease  financing  may  range  from  an  estimated  low   of  $30  million  (remodel  +  library  improvements  +  transaction  costs/reserves)  to  an   estimated  high  of  $60  million  (Council-­‐approved  new  City  Hall  +  library   improvements  +  transaction  costs/reserves).         The  table  below  shows  the  approximate  annual  impact  of  borrowing  these  amounts   –  and  a  middle  ground  of  $45  million  –  under  different  interest  rate  and  lease  term   assumptions:           If  the  City  were  to  consider  a  30-­‐year  financing,  similar  to  original  transaction   refunded  by  the  City’s  2012  Certificates  of  Participation,  the  annual  cost  would   range  between  approximately  $1.63  million  to  $3.26  million  in  the  current  market   and  between  $1.84  million  to  $3.68  million  if  rates  were  to  increase  100  basis  points   (1%)  at  the  time  of  actual  issuance.       A  critical  issue  relates  to  the  City’s  ability  to  afford  the  annual  debt  service   associated  with  any  of  these  scenarios.     B.    Affordability  of  the  City  Hall  Lease  Financing     1.  General       A  financing  of  up  to  approximately  $60  million  for  a  new  City  Hall/library   improvements  would  represent  a  significant  financial  undertaking  for  the  City.    The   City  is  in  the  fortunate  position  of  being  able  to  afford  such  an  undertaking  for  the   following  reasons:     20#years 25#years 30#years 20#years 25#years 30#years 20#years 25#years 30#years 3.00%3.25%3.50%3.00%3.25%3.50%3.00%3.25%3.50% $2,016,471 $1,771,180 $1,631,140 $3,024,707 $2,656,770 $2,446,710 $4,032,942 $3,542,360 $3,262,280 3.50%3.75%4.00%3.50%3.75%4.00%3.50%3.75%4.00% $2,110,832 $1,869,951 $1,734,903 $3,166,248 $2,804,926 $2,602,354 $4,221,665 $3,739,901 $3,469,806 4.00%4.25%4.50%4.00%4.25%4.50%4.00%4.25%4.50% $2,207,453 $1,971,436 $1,841,746 $3,311,179 $2,957,154 $2,762,619 $4,414,905 $3,942,871 $3,683,493 4.50%4.75%5.00%4.50%4.75%5.00%4.50%4.75%5.00% $2,306,284 $2,075,554 $1,951,543 $3,459,426 $3,113,331 $2,927,315 $4,612,569 $4,151,108 $3,903,086 $30,000,000 $45,000,000 $60,000,000 Civic  Center  Master  Plan  –  Project  Rationale  and  Financing  Approach/Affordability   October  16,  2015     13  |  Page     • The  City  has  limited  outstanding  debt  –  $37.925  million  of  the  2012  Certificates   of  Participation  remain,  with  an  annual  debt  service  requirement  of   approximately  $3.17  million.   • The  City  unfunded  pension  liability  ($28.3  million  as  of  the  most  recent  CalPERS   valuation)  is  relatively  small  and  highly  manageable  largely  because  the  City  has   contracted  out  public  safety.   • The  City’s  recurring  operating  revenues  have  exceeded  recurring  operating   expenses  (prior  to  payment  of  capital  expenditures)  by  more  than  1.05x  on   average  for  the  past  5  fiscal  years  and  are  projected  to  exceed  future  recurring   operating  expenses  by  more  than  $11  million/year  over  the  next  five  years.   • The  City  has  a  considerable  cash  balance  of  $91.8  million  as  a  result  of   conservative  budgeting  practices  and  the  collection  of  significant  impact  fees.     2.  Rating  Agency  Metrics     The  rating  agencies,  Government  Financial  Officers  Association,  and  State   Treasurer’s  Office  have  promulgated  several  specific  metrics  that  allow  for  an   objective  and  quantitative  assessment  of  debt  affordability 2 .  During  the  rating   process,  the  rating  agencies  will  develop  a  “local  government  scorecard”  which  also   includes  socio-­‐economic  and  management-­‐related  metric  in  additional  to  financial.   In  addition,  Moody’s  publishes  medians  for  cities  of  various  population  sizes  by   rating  category3.  The  City,  then,  can  measure  the  affordability  of  future  debt  by   reference  to  established  benchmarks.       a. Debt  Affordability  Metrics     The  debt  affordability  metrics  used  by  rating  agencies  to  score  a  local  government’s   finances  include  the  following:     • Fund  balance  as  %  of  Revenues  –  Fund  balance  refers  to  the  net  financial   resources  available  to  the  City  in  the  short  term.    It  includes  both  the  General   Fund  balance  and  any  other  reserves  available  for  operating  purposes.    Both   restricted  and  unrestricted  fund  balance  is  considered.     • Cash  Balance  as  %  of  Revenues  –  Cash  is  a  component  of  fund  balance  (which  is   an  accounting  concept)  and  is  the  ultimate  measure  of  liquidity.     • Debt/Pensions  -­‐  Within  this  category,  there  are  four  components:                                                                                                                     2  See:  Moody’s  Investors  Service,  US  Local  Government  General  Obligation  Debt  (January  15,  2014);   Standard  &  Poor’s  Rating  Services,  U.S.  Local  Governments  General  Obligation  Ratings:  Methodology   and  Assumptions  (September  12,  2013);  Rowan  Miranda  and  Ronald  Picur,  Benchmarking  and   Measuring  Debt  Capacity,  (GFOA  Budgeting  Series  2000);  California  Debt  and  Investment  Advisory   Committee  –  Municipal  Debt  Essentials  –  Accessing  the  Debt  Market  (February  2,  2011)   3  See:  Moody’s  Investors  Service,  US  Local  Government  –  Updated  2013  Medians  (August  13,  2015);   Civic  Center  Master  Plan  –  Project  Rationale  and  Financing  Approach/Affordability   October  16,  2015     14  |  Page     o Debt  to  Full  Assessed  Value  –  This  measures  a  local  government’s  debt   burden  relative  to  the  assessed  value  in  its  jurisdiction.     o Gross  Debt  to  Operating  Revenues  –  This  metric  reflects  the  potential   budgetary  impact  of  future  debt  service.    Moody’s  considers  all  operating   revenues,  not  just  General  Fund  revenues.   o Net  Pension  Liability  –  Rating  agencies  will  factor  the  magnitude  of  a  local   government’s  pension  obligations  in  a  manner  similar  to  debt  burden.       o Net  Pension  Liability  to  Operating  Revenues  –  This  metric  measures  the   net  pension  liability  relative  to  the  size  of  a  local  government’s  budget.     The  local  government  scorecard  includes  the  following  metrics,  as  well  as  socio-­‐ economic,  financial  and  management  factors:     Local  Government  Scorecard    Very  Strong  Strong  Moderate  Cupertino   Economy/Tax  Base   Full  Tax  Base  (Full  Value)  >$12B  $1.4B  to  $12B  $240M  to  $1.4B  $18.2  B   Full  Value/Capita  >$150M  $65M-­‐,  $150M  $35M  -­‐  $65M  $301M   Income  (%  US  Median)  >150%  90%  -­‐  150%  75%-­‐90%  300%   Finances   Fund  Balance  as  %  Revenues  >30%  15%-­‐30%  5%-­‐15%  76.7%*   Cash  Balance  as  %  of  Revenues  >25%  10%-­‐25%  5%-­‐10%  64.1%   Management   5  year  Avg  Rev  vs.  Oper  Exp  >1.05%  1.02%-­‐  1.05%  0.98%-­‐  1.02%  1.055%**   Debt/Pensions   Debt***/Full  Value  <0.75%  0.75%  -­‐  1.75%  1.75%  -­‐  4%  0.21%   Debt/Operating  Rev  <  33%  33%-­‐67%  67%-­‐  3x  26.7%   Net  Pension****/Full  Value  <0.9%  0.9%-­‐2.1%  2.1%-­‐4.8%  0.16%   Net  Pension/Rev  <40%  40%-­‐80%  80%-­‐3.6x  20.0%   *Projected  FYE  15  fund  balance  of  $109,790,874  vs.  overall  operating  revenues  of  $143,230,304   (excluding  capital  projects);  Project  FYE  15  cash  balance  is  $91,762,599.   **Based  on  aggregate  operating  revenues  from  FY11  to  FY15  divided  by  aggregate  expenditure  over   same  period   ***Debt  consists  of  $37,925,000  of  outstanding  certificates  of  participation   ****Based  on  unfunded  liability  of  $28,373,566  shown  in  October  2014  CalPERS  valuation       A  State  Treasurer’s  Office  presentation  on  debt  affordability  added  these  metrics  in:      High  Medium  Low  Cupertino     Debt  Per  Capita  >5,000  $2,000  -­‐  $5,000  <  $2,000  $626   Debt  Service  as  %  of  Operating  Expense  >15%  7%  -­‐  15%  <  7%  2.23%*   Debt  as  %  of  Assessed  Value  >8%  3%  -­‐  8%  <3%  0.21%   *$3.17  million  in  annual  debt  service  vs.  FY15  operating  expenses  of  approximately  $141,968,992   (excludes  capital  expenditures).     The  rating  agencies  will  evaluate  and  weigh  each  of  these  metrics,  adjust  for  such   factors  as  forecast  results,  management  practices,  major  contingent  liabilities  and   other  items,  and  may  consider  other  analytic  issues  not  addressed  in  the  above  list.     Based  on  anticipated  fiscal  year  end  2015  operating  results,  the  City’s  debt  metrics   exceed  those  in  the  “Very  Strong”  assessment  by  Moody’s  and  in  the  “Low”  category   by  the  State  Treasurer’s  Office.     Civic  Center  Master  Plan  –  Project  Rationale  and  Financing  Approach/Affordability   October  16,  2015     15  |  Page       The  increase  in  outstanding  debt  from  a  new  lease  financing  likely  would  move  the   City  out  of  the  “Very  Strong”  category  and  into  “Strong”  for  that  one  metric.    Using   projected  fiscal  year  end  revenues  as  the  benchmark,  the  City  would  stay  in  the   “Strong”  category  even  with  a  new  financing  of  approximately  $60  million.    A   decrease  in  fiscal  year  2016  operating  revenues  and  operating  expenses  could  lead   to  a  different  result  –  and  a  decision  for  greater  cash  infusion  to  reduce  the  amount   borrowed.     A  new  lease  financing  would  not  appear  to  materially  affect  the  other  categories   and,  on  an  overall  basis,  should  not  affect  the  assessment  of  such  debt  as  clearly   affordable.    An  analysis  of  Moody’s  medians  for  cities  with  similar  populations   confirms  this  conclusion.     b. Comparison  with  Other  Cities  with  Similar  Populations       As  noted,  Moody’s  published  its  medians  for  U.S.  local  cities  most  recently  on  August   13,  2015,  based  on  2013  data.    The  chart  below  shows:    (a)  the  medians  by  rating   category  (Aaa  and  Aa  ratings)  for  U.S.  cities  with  populations  between  50,000  to   100,000  and  (b)  the  current  metrics  for  the  City.    The  focus  is  primarily  on  General   Fund  revenues  and  balance.      Aaa  Aa  Cupertino     Total  General  Fund  (GF)  Revenues  $57,976M  $56,433M  $88.353M   GF  Balance  as  %  of  GF  Revenue  38.53%  32.66%  54.42%*   Available  GF  Balance  as  %  of  Revenue  36.09%  29.88%  52.32%**   Debt  as  %  of  Full  Value  0.69%  1.13%  0.21%   Overall  Debt  as  %  of  Full  Value  2.20%  3.04%  0.36%   Total  Full  Value  $9.976B  5.691B  $18.2B   Population  64,206  67,895  60,550   Full  Value  per  capita  $138,422  $82,268  $300,000   *Projected  FY15  General  Fund  balance  of  $48,082,756     **Reduces  forecast  General  Fund  balance  by  $1,860,396  reflecting  restricted  and  non-­‐spendable   funds     In  each  category,  the  City’s  metrics  are  superior  to  those  of  Aaa  rated  cities  with  a   similar  population  base.    Those  metrics  likely  would  not  change  following  a  lease   financing  for  City  Hall.     Civic  Center  Master  Plan  –  Project  Rationale  and  Financing  Approach/Affordability   October  16,  2015     16  |  Page     Part  IV  Conclusion       The  City  is  in  a  unique  position  among  its  peers.    It  has  compelling  demographics  in   terms  of  overall  assessed  value  and  median  income.  Its  debt  levels,  including   traditional  debt  and  unfunded  pension  liabilities,  are  low  relative  to  assessed  value   and  operating  revenues.  The  City  has  implemented  conservative  budgetary   practices  that  have  resulted  in  very  high  fund  balance  and  cash  balance  –  enabling  it   to  cash  fund  improvements  to  its  infrastructure  and  to  minimize  deferred   maintenance.    The  most  valuable  company  in  the  world  is  headquartered  in  the  City   and  is  in  the  process  of  making  an  extraordinary  investment  that  speaks  to  its  long-­‐ term  commitment  to  Cupertino.    In  short,  the  City’s  financial  present  is  strong  and   its  future  looks  even  stronger.    A  lease  financing  for  a  new  City  Hall  will  not  change   the  City’s  financial  profile  –  even  if  the  cost  of  the  project  is  more  expensive  than  any   other  project  undertaken  by  the  City.     If  the  City  Council  and  staff  can  conclude  that  a  new  City  Hall  of  40,000  square,  with   underground  parking  and  a  library  expansion,  is,  in  fact,  affordable,  the  question   becomes  whether  such  a  project  makes  sense  or  whether  the  City  should  simply  try   to  remodel  its  existing  facility.    Both  approaches  have  their  merits.  But  while  the   new  City  Hall  is  more  expensive,  it  solves  existing  problems  that  a  remodel  cannot,   including:    a  state  of  the  art  Emergency  Operations  Center,  more  space  for  existing   and  future  employees,  better  public  interface,  greater  operating  efficiency  per   square  foot  and  a  significantly  longer  useful  life.     In  conclusion,  the  City  Council  is  right  to  have  expressed  concern  over  the  cost   associated  with  this  and  any  potential  long-­‐term  investment.    However,  it  should   take  great  comfort  in  its  ability  to  afford  the  cost  of  the  debt  without  impacting  its   overall  credit  profile  or  the  services  it  currently  provides  to  the  community.    If  it   chooses  to  move  forward  with  a  financing,  the  City  Council  should  take  further   comfort  in  knowing  that,  absent  a  major  spike  in  interest  rates,  it  will  be  borrowing   at  near-­‐historically  low  interest  rates.             Civic  Center  Master  Plan  –  Project  Rationale  and  Financing  Approach/Affordability   October  16,  2015     17  |  Page         Appendix  A   Cities  That  Have  Financed  City  Hall  and  Civic  Center  Improvement  Projects   Through  Lease  Financing       • Arcata  • Moreno  Valley   • Agoura  Hills  • Mountain  View   • Auburn  • Murrieta   • Bellflower  • Newport  Beach   • Beverly  Hills  • Oakland   • Big  Bear  Lake  • Oakley   • Blythe  • Oceanside   • Brentwood  • Oxnard   • Brisbane  • Palmdale   • Calabasas  • Palo  Alto   • Campbell  • Pasadena   • Chino  Hills  • Pismo  Beach   • Chowchilla  • Rancho  Cordova   • Chula  Vista  • Rancho  Mirage   • Compton  • Rancho  Santa  Margarita   • Corona  • Redding   • Costa  Mesa  • Redwood  City   • Cypress  • Richmond   • Downey  • Ridgecrest   • Dublin  • Sacramento   • El  Cerrito  • San  Bernardino   • Escondido  • San  Fernando   • Fresno  • San  Dimas   • Gardena  • San  Francisco   • Grand  Terrace  • San  Jose   • Hayward  • San  Leandro   • Huntington  Beach  • Santa  Ana   • Inglewood  • Santa  Cruz   • La  Canada  Flintridge  • Sausalito   • La  Mesa  • Solana  Beach   • Laguna  Hills  • Suisun  City   • Lincoln  • Temecula   • Loma  Linda  • Tracy   • Los  Angeles  • West  Covina   • Lynwood  • West  Hollywood   • Malibu  • Westlake  Village   • Martinez  • Westminster   • Mission  Viejo  • Windsor     Civic  Center  Master  Plan  –  Project  Rationale  and  Financing  Approach/Affordability   October  16,  2015     18  |  Page     Appendix  B   Certificates  of  Participation  Diagram                                                           City  of  Cupertino     Cupertino  Public   Financing  Corp.     Trustee  Bank   Lease  Agreement   Rental  Payments     COP  Holders   COP  Proceeds  P  &  I  Payments   Assignment  of   Rental  Payments   Assigned  Rental   Payments   CITY OF CUPERTINO Legislation Details (With Text) File #: Version:115-1137 Name: Status:Type:Ceremonial Matters & Presentations Agenda Ready File created:In control:10/5/2015 City Council On agenda:Final action:11/17/2015 Title:Subject: Update from the Housing Commission Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. City Council11/17/2015 1 Subject: Update from the Housing Commission Receive update CITY OF CUPERTINO Printed on 11/10/2015Page 1 of 1 powered by Legistar™ CITY OF CUPERTINO Legislation Details (With Text) File #: Version:115-1141 Name: Status:Type:Ceremonial Matters & Presentations Agenda Ready File created:In control:10/5/2015 City Council On agenda:Final action:11/17/2015 Title:Subject: Update from the Planning Commission Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. City Council11/17/2015 1 Subject: Update from the Planning Commission Receive the update CITY OF CUPERTINO Printed on 11/10/2015Page 1 of 1 powered by Legistar™ CITY OF CUPERTINO Legislation Details (With Text) File #: Version:115-0699 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:2/18/2015 City Council On agenda:Final action:11/17/2015 Title:Subject: Approve the November 3 City Council minutes Sponsors: Indexes: Code sections: Attachments:A - Draft Minutes Action ByDate Action ResultVer. City Council11/17/2015 1 Subject: Approve the November 3 City Council minutes Approve the minutes CITY OF CUPERTINO Printed on 11/10/2015Page 1 of 1 powered by Legistar™ DRAFT MINUTES CUPERTINO CITY COUNCIL Tuesday, November 3, 2015 SPECIAL CITY COUNCIL MEETING PLEDGE OF ALLEGIANCE At 6:48 p.m. Mayor Rod Sinks called the Regular City Council meeting to order in Cupertino Community Hall Council Chambers, 10350 Torre Avenue and led the Pledge of Allegiance. ROLL CALL Present: Mayor Rod Sinks, Vice Mayor Barry Chang (6:55 p.m.) and Council members Darcy Paul and Gilbert Wong. Absent: Savita Vaidhyanathan. CEREMONIAL MATTERS AND PRESENTATION 1. Subject: Present Emerging Artist Award to Claire Kuan Recommended Action: Present Emerging Artist Award to Claire Kuan Claire Kuan was not present to receive the award in person. Council received a brief explanation about the award from Diane Matley, Vice Chair of the Fine Arts Commission. 2. Subject: a. Presentations from delegations to Toyokawa and Copertino Sister Cities and students who hosted Toyokawa delegates; and b. Presentation of Hsinchu Sister City delegation gift Recommended Action: Receive presentations a. Alysa Sakkas, President of Cupertino Toyokawa Sister City Committee and Helene Davis, President of Cupertino Copertino Sister City Association along with the student delegates made presentations; and b. Angela Chen, Vice President, Chia-Ching Lin, President, and Vice President Janice Sung of Cupertino Hsinchu Sister City Association presented gifts to Council from Hsinchu Sister City. Council received the presentations. City Council Minutes November 3, 2015 2 3. Subject: Update from the Public Safety Commission Recommended Action: Receive update Written communications for this item included a PowerPoint presentation. Chair of the Public Safety Commission Rob McCoy gave an update from the Commission via a PowerPoint presentation. Council received the update. 4. Subject: Update from the Technology, Information, and Communications Commission Recommended Action: Receive update This item was continued to a future Council meeting. 5. Subject: Update from the Bicycle Pedestrian Commission Recommended Action: Receive update Written communications for this item included a PowerPoint presentation. Chair of the Bicycle Pedestrian Commission Pete Heller gave an update from the Commission via a PowerPoint presentation. Council received the update. 6. Subject: Safe Routes to School Update Recommended Action: Receive update Written communications for this item included a PowerPoint presentation. Senior Civil Engineer David Stillman gave an update regarding Safe Routes to School via a PowerPoint presentation. Council received the update. Steven Scharf talked about the danger of cars parked in the bike lane on Blaney Avenue. POSTPONEMENTS - None ORAL COMMUNICATIONS Sandra James, President of Cupertino Veterans Memorial talked about the upcoming Veterans Day ceremony in Memorial Park and showed a video of the Memorial Dedication from 2007. City Council Minutes November 3, 2015 3 Aparna on behalf of Synopsys Silicon Valley Science and Engineering thanked Mayor Sinks for the presentations he gave to the students before the meeting. David Chang talked about Vallco Mall store owners receiving eviction notices. Moe Satter small business owner from Vallco Mall talked about the mall owners, Sand Hill telling him he needs to relocate his store. Donald Moore on behalf of Vallco Shop Owners and small business owner in Vallco Mall talked about having to relocate his store. John Willey talked about the Hills at Vallco project and compared the height of the current mall to the proposed project. He distributed written comments. Cathy Helgerson talked about the upcoming public information meeting hosted by Supervisor Simitian regarding Lehigh. She also talked about the concern over Vallco store owners being asked to relocate. Greg Schaffer talked about his opposition to the Hills at Vallco project. Jennifer Griffin talked about the Hills at Vallco project and concerns over the height of the proposed project and loss of retail in the mall. She also talked about concern over tagging of street trees on Stevens Creek Boulevard and Wolfe slated for removal. Lisa Warren talked about protected trees on Stevens Creek Boulevard and Wolfe that are tagged for removal. She also talked about concern over the store owners at Vallco being asked to relocate. Kim Vo small business owner at Vallco Mall talked about her store and its growing success and now being asked to relocate. Surinder Kaur small business owner at Vallco Mall talked about being asked to relocate. Ajay Jhigan talked about Sand Hill giving notice to store owners to relocate. Lynn Ly small business owner at Vallco Mall talked about being asked to relocate her business. City Council Minutes November 3, 2015 4 Mark Chen talked about parking issues on residential streets and not allowing space for parents to pick up their kids from school. Liang Chao talked about the Hills at Vallco project and concern over store owners being asked to relocate without compensation. Barry Feeley talked about Vallco Mall being a Cupertino icon and concern that it will be going away. Mariah Moscoso talked about concern over the shop owners in Vallco Mall having to relocate. Ruth Ashkenazi talked about concern over Sand Hill asking the Vallco shop owners to relocate without compensation. Raj Singh small business owner in Vallco Mall talked about having to relocate without compensation. CONSENT CALENDAR Wong moved and Chang seconded to approve the items on the Consent Calendar as presented with the exception of item number 13 which was pulled for discussion. Ayes: Sinks, Chang, Paul and Wong. Noes: None. Abstain: None. Absent: Vaidhyanathan. 7. Subject: Approve the October 20 City Council minutes Recommended Action: Approve the minutes 8. Subject: Accept Accounts Payable for the period ending September 25, 2015 Recommended Action: Adopt Resolution No. 15-094 accepting accounts payable for the period ending September 25, 2015 9. Subject: Accept Accounts Payable for the period ending October 2, 2015 Recommended Action: Adopt Resolution No. 15-095 accepting Accounts Payable for the period ending October 2, 2015 10. Subject: Accept Accounts Payable for the period ending October 9, 2015 Recommended Action: Adopt Resolution No. 15-096 accepting Accounts Payable for the period ending October 9, 2015 11. Subject: Accept Accounts Payable for the period ending October 16, 2015 City Council Minutes November 3, 2015 5 Recommended Action: Adopt Resolution No. 15-097 accepting Accounts Payable for the period ending October 16, 2015 12. Subject: Letter to the California Public Utilities Commission (CPUC) supp orting protections to its net energy metering program for rooftop solar customers Recommended Action: Authorize the Mayor to sign a letter to the CPUC to preserve its net energy metering program benefits for rooftop solar customers Written communications for this item included emails to Council. 13. Subject: Approve the destruction of records from the City Clerk, City Manager, Code Enforcement, Public Works, and Recreation and Community Services (Quinlan Community Center) departments Recommended Action: Adopt Resolution No. 15-098 approving the destruction of records Written communications for this item included an amended draft resolution. The Public Works records were removed from tonight’s resolution approval because of a records request and other interest in further viewing those records. Sinks moved and Wong seconded to adopt Resolution No. 15-098 as amended approving the destruction of records from the City Clerk, City Manager, Code Enforcement and Recreation and Community Services (Quinlan Community Center) departments. The motion carried with Vaidhyanathan absent. 14. Subject: Authorize a new Chief Technology Officer/Director of Information Services position in the salary schedule for Unrepresented Employees’ Compensation Program and approve corresponding budget amendments totaling $148,750 Recommended Action: Staff recommends the City Council approve the following: 1. Adopt Resolution No. 15-099 amending the Unrepresented Employees’ Compensation Program and salary schedule 2. Approve an increase to the FY 2015-16 Information Technology program budget of $61,875 (610-34-310) 3. Approve an increase to the FY 2015-16 Public Affairs program budget of $61,875 (100-30-300) 4. Approve an increase to the FY 2015-16 Human Resources program budget of $25,000 (100-44-412) City Council Minutes November 3, 2015 6 Written communications for this item included a redline draft of the Unrepresented Employees’ Compensation Program and salary schedule. 15. Subject: 2015 Concrete Improvements Project, Project No. 2016-14 Recommended Action: Authorize the City Manager to award and execute a contract with JJR Construction, Inc., in the amount of $1,396,245 and approve a construction contingency of $139,000, for a total of $1,535,245 SECOND READING OF ORDINANCES - None PUBLIC HEARINGS - None ORDINANCES AND ACTION ITEMS - None REPORTS BY COUNCIL AND STAFF 16. Subject: Construction Project Updates Recommended Action: Receive updates Director of Public Works Timm Borden gave a Construction Project update via a PowerPoint presentation. Council received the update. 17. Subject: Report on Committee assignments and general comments Recommended Action: Report on Committee assignments and general comments City Manager David Brandt noted there would be a meeting with regulatory agencies regarding Lehigh Quarry at Community Hall on November 4 at 7:00 p.m. Also, he noted that Lehigh will be servicing a large pour in San Francisco and there will be truck traffic going from Foothill to the freeway all night this Sunday and next. Council members highlighted the activities of their committees and various community events. ADJOURNMENT At 9:30 p.m., Mayor Sinks adjourned the meeting to Tuesday, November 17. _______________________________ Grace Schmidt, City Clerk City Council Minutes November 3, 2015 7 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, and then click Archived Webcast. Videotapes are available at the Cupertino Library, or may be purchased from the Cupertino City Channel, 777-2364. CITY OF CUPERTINO Legislation Details (With Text) File #: Version:115-1018 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:8/7/2015 City Council On agenda:Final action:11/17/2015 Title:Subject: Approve Treasurer's Investment Report for the Quarter ending June 30, 2015 Sponsors: Indexes: Code sections: Attachments:Staff Report A - Investment Portfolio B - Supplemental Portfolio Analysis Action ByDate Action ResultVer. City Council11/17/2015 1 Subject: Approve Treasurer's Investment Report for the Quarter ending June 30, 2015 Accept the report CITY OF CUPERTINO Printed on 11/10/2015Page 1 of 1 powered by Legistar™ 1 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: November 17, 2015 Subject Treasurer’s Investment Report for Quarter Ending June 30, 2015 Recommended Action Accept the report Discussion and Fiscal Impact The attached slides and investment portfolio listing comprise the Treasurer’s Investment Report. Together they show the composition of the portfolio; total portfolio yield in comparison to LAIF, the 1-year Treasury, and the 2-year Treasury; diversification within the government agency securities; and portfolio compliance with the City’s Investment Policy. For quarter ending June 30, 2015, the market value of the City’s portfolio totaled $126.6 million which is $8.4 million higher than last quarter. The portfolio’s average yield was 0.63%, which is an increase from its 0.53% yield of the previous quarter ending March 31, 2015. The average length to maturity increased from 0.96 to 1.13 years. The Local Agency Investment Fund’s (LAIF) yield rose slightly for 0.28% last quarter to 0.30% this quarter. LAIF’s balance was $34.5 million which is in compliance with City investment policy and State law. LAIF’s same- or next-day liquidity insures that the City is able to pay its obligations for the next six months and also provides strong liquidity in the short, intermediate and long-term horizons. 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. _____________________________________ Prepared by: Lisa Taitano, Deputy City Treasurer Reviewed by: Kristina Alfaro, City Treasurer Approved by: David Brandt, City Manager Attachments: A – Investment Portfolio B – Supplemental Portfolio Analysis City of Cupertino Investment Portfolio June 30, 2015 ACTIVITY DATE COUPONADJUSTEDMATURITYMARKETUNREALIZED PURCHASEMATURITYDESCRIPTIONRATEYTMCOSTVALUEVALUEPROFIT/LOSS SECURITIES MATURED 09/05/1305/31/15US Treasury Note 0.25%0.38%3,000,311 3,000,000 3,000,240 (71) SECURITIES PURCHASED 04/02/1504/02/18Agency notes - FFCB1.00%0.98%3,001,626 3,000,000 3,004,530 2,904 05/11/1505/11/18Agency notes - FFCB1.03%1.08%1,997,080 2,000,000 1,999,620 2,540 05/07/1508/07/18Agency notes - FHLB1.05%1.13%1,995,017 2,000,000 1,992,800 (2,217) 05/27/1512/27/18Agency notes - FNMA1.38%1.38%2,000,000 2,000,000 2,000,060 60 05/07/1502/27/19Agency notes - FNMA1.68%1.30%1,013,510 1,000,000 1,012,700 (810) 05/27/1511/27/19Agency notes - FNMA1.63%1.38%2,000,000 2,000,000 1,989,720 (10,280) 05/07/1504/30/20US Treasury Note 1.38%1.54%1,984,535 2,000,000 1,978,120 (6,415) CITY PORTFOLIO CASH 06/30/15Wells Fargo - Cash- - - - 06/30/15Wells Fargo - Workers Comp Checking74,988 74,988 74,988 - 06/30/15Wells Fargo - Regular Checking69,225 69,225 69,225 - 06/30/15Wells Fargo - Repurchase Agreem 0.02%0.02%1,471,230 1,471,230 1,471,230 - 1,615,443 1,615,443 1,615,443 - LAIF 06/30/15LAIF - State Pool0.30%0.30%34,491,965 34,491,965 34,491,965 - MONEY MARKET FUNDS 06/30/15Wells Fargo Advantage 100% Tre 0.00%0.00%112,800 112,800 112,800 - 112,800 112,800 112,800 - GOVERNMENT AGENCY NOTES 05/31/1307/17/15Agency notes - FHLMC4.38%0.32%3,005,639 3,000,000 3,005,700 61 05/31/1307/28/15Agency notes - FNMA2.38%0.32%3,004,701 3,000,000 3,004,890 189 05/31/1309/10/15Agency notes - FHLMC1.75%0.34%3,008,287 3,000,000 3,009,180 893 05/31/1309/11/15Agency notes - FHLB1.75%0.35%3,008,342 3,000,000 3,009,480 1,138 06/11/1310/15/15Agency notes - FNMA1.88%0.47%2,008,193 2,000,000 2,010,080 1,888 06/11/1310/26/15Agency notes - FNMA1.63%0.45%2,007,526 2,000,000 2,009,460 1,934 06/11/1311/16/15Agency notes - FFCB1.50%0.43%2,008,074 2,000,000 2,009,360 1,286 02/25/1403/15/16Agency notes - FNMA2.25%0.37%3,040,008 3,000,000 3,041,490 1,482 01/21/1405/13/16Agency notes - FHLMC0.50%0.50%1,000,000 1,000,000 1,001,360 1,360 06/23/1406/10/16Agency notes - FHLB2.13%0.51%3,045,536 3,000,000 3,048,690 3,154 02/25/1406/17/16Agency notes - FFCB0.52%0.45%3,002,021 3,000,000 3,005,910 3,889 01/21/1407/05/16Agency notes - FNMA0.38%0.51%998,625 1,000,000 999,750 1,125 12/31/1412/09/16Agency notes - FHLB1.63%0.70%3,039,678 3,000,000 3,045,870 6,192 09/30/1403/08/17Agency notes - FHLMC1.00%0.84%3,008,257 3,000,000 3,018,900 10,643 12/31/1403/10/17Agency notes - FHLB0.88%0.81%3,003,459 3,000,000 3,010,170 6,711 07/07/1407/07/17Agency notes - FHLMC1.00%1.00%2,989,284 3,000,000 3,011,250 21,966 10/03/1409/22/17Agency notes - FFCB1.13%1.12%3,000,327 3,000,000 3,012,000 11,673 12/31/1412/18/17Agency notes - FFCB1.13%1.14%999,733 1,000,000 1,003,980 4,247 09/30/1401/12/18Agency notes - FHLMC0.75%1.26%987,362 1,000,000 995,020 7,658 09/30/1403/07/18Agency notes - FHLMC0.88%1.32%988,344 1,000,000 996,520 8,176 03/30/1503/12/18Agency notes - FFCB1.13%0.95%2,009,275 2,000,000 2,007,400 (1,875) 04/02/1504/02/18Agency notes - FFCB1.00%0.98%3,001,626 3,000,000 3,004,530 2,904 05/11/1505/11/18Agency notes - FFCB1.03%1.08%1,997,080 2,000,000 1,999,620 2,540 07/23/1406/08/18Agency notes - FHLB1.25%1.39%2,987,929 3,000,000 3,011,670 23,741 05/07/1508/07/18Agency notes - FHLB1.05%1.13%1,995,017 2,000,000 1,992,800 (2,217) 05/27/1512/27/18Agency notes - FNMA1.38%1.38%2,000,000 2,000,000 2,000,060 60 05/07/1502/27/19Agency notes - FNMA1.68%1.30%1,013,510 1,000,000 1,012,700 (810) 05/27/1511/27/19Agency notes - FNMA1.63%1.38%2,000,000 2,000,000 1,989,720 (10,280) 64,157,831 64,000,000 64,267,560 109,729 US TREASURY SECURITIES 06/11/1311/15/15US Treasury Note 0.38%0.41%2,999,635 3,000,000 3,003,270 3,635 01/21/1403/15/16US Treasury Note 0.38%0.43%999,587 1,000,000 1,001,170 1,583 01/21/1404/15/16US Treasury Note 0.25%0.46%998,332 1,000,000 999,690 1,358 City of Cupertino Investment Portfolio June 30, 2015 ACTIVITY DATE COUPONADJUSTEDMATURITYMARKETUNREALIZED PURCHASEMATURITYDESCRIPTIONRATEYTMCOSTVALUEVALUEPROFIT/LOSS 02/25/1405/31/16US Treasury Note 1.75%0.42%3,036,467 3,000,000 3,039,150 2,683 01/21/1406/15/16US Treasury Note 0.50%0.53%999,750 1,000,000 1,001,880 2,130 01/21/1408/15/16US Treasury Note 0.63%0.60%1,000,275 1,000,000 1,002,810 2,535 04/11/1409/30/16US Treasury Note 1.00%0.57%2,010,619 2,000,000 2,015,160 4,541 04/11/1410/31/16US Treasury Note 1.00%0.62%2,009,980 2,000,000 2,015,160 5,180 04/11/1411/15/16US Treasury Note 0.63%0.64%1,999,502 2,000,000 2,005,160 5,658 04/11/1412/31/16US Treasury Note 0.88%0.70%2,005,355 2,000,000 2,011,720 6,365 06/23/1406/15/17US Treasury Note 0.88%0.95%2,995,835 3,000,000 3,013,590 17,755 07/23/1409/30/17US Treasury Note 0.63%1.08%2,969,535 3,000,000 2,991,090 21,555 05/07/1504/30/20US Treasury Note 1.38%1.54%1,984,535 2,000,000 1,978,120 (6,415) 26,009,409 26,000,000 26,077,970 68,561 Total Managed Portfolio126,387,448 126,220,208 126,565,738 178,290 Average Yield0.63% Average Length to Maturity (in years) 1.13 TRUST PORTFOLIO Institutional MM AccountWells Fargo Bank Secured0.07%0.07%48,585 48,585 48,585 BOND RESERVE PORTFOLIO Bond Lease Pymt AcctGoldman Sachs Financial Sq Mon 0.08%0.06%2,614,337 2,614,337 2,614,337 Bond Reserve Acct Goldman Sachs Financial Sq Mon 0.07%0.05%1,587,530 1,587,530 1,587,530 Total Bond Reserve Portfolio4,201,867 4,201,867 4,201,867 Treasurer’s Investment Report Quarter Ending June 30, 2015 City Council Meeting November 17, 2015 Total portfolio increased from last quarter by $8.4 million, from $118.1 to $126.6 million Average maturity increased from 0.96 years to 1.13 Average yield increased from 0.53% to 0.63% Portfolio Composition LAIF 27.29% Cash 1.28% Money Market 0.09% Agency Notes 50.76% US Treasuries 20.58% Yield Comparison 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% Av e r a g e Y i e l d 2Y Treasury Cupertino LAIF 1Y Treasury Debt issued by federal credit agencies and fully backed by U.S. government guarantee but not its full faith and credit High credit rating - second only to Treasury bonds Maturity periods from 1 month to 15 years Agencies that can issue: •FHLMC - Federal Home Loan Mortgage Association (Freddie Mac) •FHLB - Federal Home Loan Bank •FNMA - Federal National Mortgage Association (Fannie Mae) •FFCB - Federal Farm Credit Bureau Agency Diversification FHLB 26.6% FHLMC 23.4% FNMA 25.1% FFCB 25.0% Policy Compliance City of Cupertino June 30, 2015 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 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 Cash Flow – Coverage The LAIF investment is just under $34.5 million and yielding 2 basis points higher than the 1-year Treasury bill. The City is able to pay its obligations for the next 6 months and overall liquidity is strong. 30,000,000 35,000,000 40,000,000 45,000,000 50,000,000 06 / 2 9 / 1 5 07 / 1 3 / 1 5 07 / 2 7 / 1 5 08 / 1 0 / 1 5 08 / 2 4 / 1 5 09 / 0 7 / 1 5 09 / 2 1 / 1 5 10 / 0 5 / 1 5 10 / 1 9 / 1 5 11 / 0 2 / 1 5 11 / 1 6 / 1 5 11 / 3 0 / 1 5 12 / 1 4 / 1 5 12 / 2 8 / 1 5 6-Month Liquidity Including LAIF CITY OF CUPERTINO Legislation Details (With Text) File #: Version:115-1212 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:11/6/2015 City Council On agenda:Final action:11/17/2015 Title:Subject: Approve Treasurer's Investment Report for the Quarter ending September 30, 2015 Sponsors: Indexes: Code sections: Attachments:Staff Report A - Investment Portfolio B - Supplemental Portfolio Analysis Action ByDate Action ResultVer. City Council11/17/2015 1 Subject: Approve Treasurer's Investment Report for the Quarter ending September 30, 2015 Accept the report CITY OF CUPERTINO Printed on 11/10/2015Page 1 of 1 powered by Legistar™ 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: November 17, 2015 Subject Treasurer’s Investment Report for Quarter Ending September 30, 2015 Recommended Action Accept the report Discussion and Fiscal Impact The attached slides and investment portfolio listing comprise the Treasurer’s Investment Report. Together they show the composition of the portfolio; total portfolio yield in comparison to LAIF, the 1-year Treasury, and the 2-year Treasury; diversification within the government agency securities; and portfolio compliance with the City’s Investment Policy. For quarter ending September, 2015, the market value of the City’s portfolio totaled $119.8 million which is $6.7 million lower than last quarter. The portfolio’s average yield was 0.65%, which is an increase from its 0.63% yield of the previous quarter ending June 30, 2015. The average length to maturity decreased from 1.13 to 1.02 years. The Local Agency Investment Fund’s (LAIF) yield rose slightly for 0.30% last quarter to 0.32% this quarter. LAIF’s balance was $38.5 million which is in compliance with City investment policy and State law. LAIF’s same- or next-day liquidity insures that the City is able to pay its obligations for the next six months and also provides strong liquidity in the short, intermediate and long-term horizons. 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. _____________________________________ Prepared by: Lisa Taitano, Deputy City Treasurer Reviewed by: Kristina Alfaro, City Treasurer Approved by: David Brandt, City Manager Attachments: A – Investment Portfolio B – Supplemental Portfolio Analysis 1 City of Cupertino Investment Portfolio September 30, 2015 ACTIVITY DATE COUPONADJUSTEDMATURITYMARKETUNREALIZED PURCHASEMATURITYDESCRIPTIONRATEYTMCOSTVALUEVALUEPROFIT/LOSS SECURITIES MATURED 05/31/1307/17/15Agency notes - FHLMC4.38%0.32%2,975,123 3,000,000 3,005,700 30,577 05/31/1307/28/15Agency notes - FNMA2.38%0.32%2,989,255 3,000,000 3,004,890 15,635 05/31/1309/10/15Agency notes - FHLMC1.75%0.34%2,997,698 3,000,000 3,009,180 11,482 05/31/1309/11/15Agency notes - FHLB1.75%0.35%2,997,829 3,000,000 3,009,480 11,651 SECURITIES PURCHASED N/AN/AN/AN/A CITY PORTFOLIO CASH 09/30/15Wells Fargo - Cash- - - - 09/30/15Wells Fargo - Workers Comp Checking52,896 52,896 52,896 - 09/30/15Wells Fargo - Regular Checking539,399 539,399 539,399 - 09/30/15Wells Fargo - Repurchase Agreements0.02%0.02%2,316,056 2,316,056 2,316,056 - 2,908,351 2,908,351 2,908,351 - LAIF 09/30/15LAIF - State Pool0.32%0.32%38,515,558 38,515,558 38,515,558 - MONEY MARKET FUNDS 09/30/15Wells Fargo Advantage 100% Treasury0.00%0.00%36,250 36,250 36,250 - 36,250 36,250 36,250 - GOVERNMENT AGENCY NOTES 06/11/1310/15/15Agency notes - FNMA1.88%0.47%2,001,148 2,000,000 2,001,340 192 06/11/1310/26/15Agency notes - FNMA1.63%0.45%2,001,658 2,000,000 2,002,000 342 06/11/1311/16/15Agency notes - FFCB1.50%0.43%2,002,730 2,000,000 2,003,300 570 02/25/1403/15/16Agency notes - FNMA2.25%0.37%3,025,796 3,000,000 3,027,780 1,984 01/21/1405/13/16Agency notes - FHLMC0.50%0.50%1,000,000 1,000,000 1,001,070 1,070 06/23/1406/10/16Agency notes - FHLB2.13%0.51%3,033,428 3,000,000 3,035,430 2,002 02/25/1406/17/16Agency notes - FFCB0.52%0.45%3,001,494 3,000,000 3,004,680 3,186 01/21/1407/05/16Agency notes - FNMA0.38%0.51%998,966 1,000,000 1,000,020 1,054 12/31/1412/09/16Agency notes - FHLB1.63%0.70%3,032,765 3,000,000 3,038,970 6,205 09/30/1403/08/17Agency notes - FHLMC1.00%0.84%3,007,026 3,000,000 3,019,080 12,054 12/31/1403/10/17Agency notes - FHLB0.88%0.81%3,002,945 3,000,000 3,008,190 5,245 07/07/1407/07/17Agency notes - FHLMC1.00%1.00%2,990,619 3,000,000 3,012,510 21,891 10/03/1409/22/17Agency notes - FFCB1.13%1.12%3,000,290 3,000,000 3,017,370 17,080 12/31/1412/18/17Agency notes - FFCB1.13%1.14%999,761 1,000,000 1,007,260 7,499 09/30/1401/12/18Agency notes - FHLMC0.75%1.26%988,616 1,000,000 999,160 10,544 09/30/1403/07/18Agency notes - FHLMC0.88%1.32%989,437 1,000,000 1,000,850 11,413 03/30/1503/12/18Agency notes - FFCB1.13%0.95%2,008,409 2,000,000 2,011,220 2,811 04/02/1504/02/18Agency notes - FFCB1.00%0.98%3,001,478 3,000,000 3,013,860 12,382 05/11/1505/11/18Agency notes - FFCB1.03%1.08%1,997,336 2,000,000 2,004,780 7,444 07/23/1406/08/18Agency notes - FHLB1.25%1.39%2,988,963 3,000,000 3,019,290 30,327 05/07/1508/07/18Agency notes - FHLB1.05%1.13%1,995,422 2,000,000 1,998,280 2,858 05/27/1512/27/18Agency notes - FNMA1.38%1.38%2,000,000 2,000,000 2,008,720 8,720 05/07/1502/27/19Agency notes - FNMA1.68%1.30%1,012,581 1,000,000 1,017,430 4,849 05/27/1511/27/19Agency notes - FNMA1.63%1.38%2,000,000 2,000,000 2,009,980 9,980 52,080,869 52,000,000 52,262,570 181,701 US TREASURY SECURITIES 06/11/1311/15/15US Treasury Note 0.38%0.41%2,999,878 3,000,000 3,000,750 872 01/21/1403/15/16US Treasury Note 0.38%0.43%999,734 1,000,000 1,001,000 1,266 01/21/1404/15/16US Treasury Note 0.25%0.46%998,861 1,000,000 1,000,350 1,489 02/25/1405/31/16US Treasury Note 1.75%0.42%3,026,482 3,000,000 3,029,970 3,488 01/21/1406/15/16US Treasury Note 0.50%0.53%999,815 1,000,000 1,001,740 1,925 01/21/1408/15/16US Treasury Note 0.63%0.60%1,000,213 1,000,000 1,002,290 2,077 04/11/1409/30/16US Treasury Note 1.00%0.57%2,008,486 2,000,000 2,012,100 3,614 04/11/1410/31/16US Treasury Note 1.00%0.62%2,008,103 2,000,000 2,012,820 4,717 04/11/1411/15/16US Treasury Note 0.63%0.64%1,999,593 2,000,000 2,004,500 4,907 04/11/1412/31/16US Treasury Note 0.88%0.70%2,004,459 2,000,000 2,010,020 5,561 06/23/1406/15/17US Treasury Note 0.88%0.95%2,996,371 3,000,000 3,014,580 18,209 07/23/1409/30/17US Treasury Note 0.63%1.08%2,972,940 3,000,000 2,998,590 25,650 05/07/1504/30/20US Treasury Note 1.38%1.54%1,985,341 2,000,000 2,005,320 19,979 City of Cupertino Investment Portfolio September 30, 2015 ACTIVITY DATE COUPONADJUSTEDMATURITYMARKETUNREALIZED PURCHASEMATURITYDESCRIPTIONRATEYTMCOSTVALUEVALUEPROFIT/LOSS 26,000,278 26,000,000 26,094,030 93,752 Total Managed Portfolio119,541,306 119,460,159 119,816,759 275,454 Average Yield0.65% Average Length to Maturity (in years) 1.02 TRUST PORTFOLIO Institutional MM AccountWells Fargo Bank Secured0.07%0.07%48,585 48,585 48,585 BOND RESERVE PORTFOLIO Bond Lease Pymt AcctGoldman Sachs Financial Sq Money Mkt0.08%0.06%141 141 141 Bond Reserve Acct Goldman Sachs Financial Sq Money Mkt0.07%0.05%1,587,976 1,587,976 1,587,976 Total Bond Reserve Portfolio1,588,117 1,588,117 1,588,117 Treasurer’s Investment Report Quarter Ending September 30, 2015 City Council Meeting November 17, 2015 Total portfolio decreased from last quarter by $6.7 million, from $126.6 to $119.8 million Average maturity decreased from 1.13 years to 1.02 Average yield increased from 0.63% to 0.65% Portfolio Composition LAIF 32.22% Cash 2.43% Money Market 0.03% Agency Notes 43.57% US Treasuries 21.75% Yield Comparison 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% Av e r a g e Y i e l d 2Y Treasury Cupertino LAIF 1Y Treasury Debt issued by federal credit agencies and fully backed by U.S. government guarantee but not its full faith and credit High credit rating - second only to Treasury bonds Maturity periods from 1 month to 15 years Agencies that can issue: •FHLMC - Federal Home Loan Mortgage Association (Freddie Mac) •FHLB - Federal Home Loan Bank •FNMA - Federal National Mortgage Association (Fannie Mae) •FFCB - Federal Farm Credit Bureau Agency Diversification FHLB 27.0% FHLMC 17.2% FNMA 25.0% FFCB 30.7% Policy Compliance City of Cupertino September 30, 2015 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 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 Cash Flow – Coverage The LAIF investment is just under $38.5 million and yielding 1 basis point lower than the 1-year Treasury bill. The City is able to pay its obligations for the next 6 months and overall liquidity is strong. 30,000,000 35,000,000 40,000,000 45,000,000 50,000,000 09 / 2 8 / 1 5 10 / 0 5 / 1 5 10 / 1 2 / 1 5 10 / 1 9 / 1 5 10 / 2 6 / 1 5 11 / 0 2 / 1 5 11 / 0 9 / 1 5 11 / 1 6 / 1 5 11 / 2 3 / 1 5 11 / 3 0 / 1 5 12 / 0 7 / 1 5 12 / 1 4 / 1 5 12 / 2 1 / 1 5 12 / 2 8 / 1 5 01 / 0 4 / 1 6 01 / 1 1 / 1 6 01 / 1 8 / 1 6 01 / 2 5 / 1 6 02 / 0 1 / 1 6 02 / 0 8 / 1 6 02 / 1 5 / 1 6 02 / 2 2 / 1 6 02 / 2 9 / 1 6 03 / 0 7 / 1 6 03 / 1 4 / 1 6 03 / 2 1 / 1 6 6-Month Liquidity Including LAIF CITY OF CUPERTINO Legislation Details (With Text) File #: Version:115-1019 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:8/7/2015 City Council On agenda:Final action:11/17/2015 Title:Subject: Approval of the First Quarter adjustments for Fiscal Year 2015-16 as described in the First Quarter Financial Report Sponsors: Indexes: Code sections: Attachments:Staff Report A - Draft Resolution B - First Quarter Financial Report FY15-16 C - Performance Measures - Clean Version D - Performance Measures - Redline Version Action ByDate Action ResultVer. City Council11/17/2015 1 Subject:Approval of the First Quarter adjustments for Fiscal Year 2015-16 as described in the First Quarter Financial Report 1.Accept the City Manager's First Quarter Financial Report for Fiscal Year 2015-16;and 2. Adopt Resolution No. 15-100 approving the First Quarter budget adjustments CITY OF CUPERTINO Printed on 11/10/2015Page 1 of 1 powered by Legistar™ 1 ADMINISTRATIVE SERVICES CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3220 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: November 17, 2015 Subject Approval of the First Quarter Financial Report for Fiscal Year 2015-16 Recommended Action 1. Accept the City Manager’s First Quarter Financial Report for Fiscal Year 2015-16 2. Adopt a resolution approving First Quarter budget adjustments Fiscal Impact On June 2, 2015 as part of the Final Budget Hearing and Adoption, the City Council approved the following changes to the FY 2015-16 Proposed Budget: BUDGET ACTIONS AMOUNT Proposed Budget 113,649,638 Final Budget Hearing & Adoption Remove Mary Avenue Complete Streets Project -3,662,000 Remove transfer out from Capital Reserve to fund Mary Avenue Complete Streets Project -3,662,000 Add Homestead Road Sidewalk Project 90,000 Add transfer out of Capital Reserve to fund Homestead Road Sidewalk Project 90,000 Street Pavement Maintenance 6,000,000 Transfer out of General Fund fund balance to fund Street Pavement Maintenance 3,000,000 Transfer out of Capital Reserve to fund Street Pavement Maintenance 3,000,000 Contract legal costs related to State Route 85 60,000 FY 2015-16 Final Adopted Budget $118,565,638 The FY 2015-16 Final Budget was balanced at $118,565,638 and used the combination of $98,798,270 in revenue and $19,767,368 in fund balance and one time funding sources. 2 Final Adopted Budget by Fund, $118,565,638 General Fund 66,184,983 57% Special Revenue 18,558,953 16% Debt Service 3,167,538 3% Capital Projects 9,522,000 8% Enterprise 9,588,709 8% Internal Service 8,516,016 8% As part the of FY 2014-15 year end close additional funds were carried forward through encumbrances of $17,486,574, carryover appropriation from fiscal year 2014-15 of $15,565,653, in addition there were Council approved budget amendments between July 1 to September 30, 2015 that totaled $773,733, resulting in the Amended Budget for the current fiscal year. The Amended Budget as of the end of the first quarter is $152,391,598 and is funded with $98,798,270 in revenue and $53,593,328 in fund balance and one-time funding sources. Fund Budget Adjustment Type Expenditures Revenue Fund Balance General Carryforward Appropriations 2,550,765 - (2,550,765) Special Revenue Carryforward Appropriations 2,359,001 - (2,359,001) Enterprise Carryforward Appropriations 43,193 - (43,193) Internal Service Carryforward Appropriations 988,734 - (988,734) Carryforward Appropriations Total 5,941,693 - (5,941,693) Special Revenue CIP Carryforward Appropriations 3,093,757 - (3,093,757) Capital CIP Carryforward Appropriations 5,609,187 - (5,609,187) Enterprise CIP Carryforward Appropriations 921,016 - (921,016) CIP Carryforward Appropriations Total 9,623,960 - (9,623,960) General Council Action 752,524 - (752,524) Enterprise Council Action 21,209 - (21,209) Council Action Total 773,733 - (773,733) General Encumbrance Carryover 6,997,542 - (6,997,542) Special Revenue Encumbrance Carryover 9,102,429 - (9,102,429) Capital Encumbrance Carryover 1,106,226 - (1,106,226) Enterprise Encumbrance Carryover 183,786 - (183,786) Internal Service Encumbrance Carryover 96,591 - (96,591) Encumbrance Carryover Total 17,486,574 - (17,486,574) Grand Total 33,825,960 - (33,825,960) 3 2014-15 Fiscal Year End The City of Cupertino is expected to end FY 2014-15 with total expenditures of $130.6 million, $30.6 million lower than budgeted primarily due to a deferral of major expenditures associated with capital projects and savings in the appropriations for contingencies, salary and benefits due to vacancies and contract cost savings. Total revenue of $151.9 million, $8.7 million higher than estimated primarily due to increased sales, property, and transient occupancy taxes. The City ended FY 2014-15 with an increase to fund balance across all funds of $21.6 million. The table below compares by fund total budgeted and actual expenditures and revenues and the resulting changes to fund balance as of the FY 2014-15 year end close. FY 2014-15 Year End Estimates (Revenue, Expenditures and Fund Balance in millions) (20.00) - 20.00 40.00 60.00 80.00 100.00 General Fund Special Revenue Fund Debt Service Capital Project Enterprise Internal Service Revenue Expenditures Fund Balance Discussion The primary focus of the First Quarter Financial Report is to provide an update on the current status of the City budget; the report also reviews current revenue and expenditure patterns to ensure that budgets are on track to end the year in a positive fiscal position and reviews any significant variances in expenditures from the prior fiscal year. General Fund Update Revenue As of the first quarter the General Fund revenue is projected to end the year within projections. Sales tax is tracking significantly higher by $1.8 million or 33% than last year due to higher sales tax receipts from the Board of Equalization. Staff will continue to monitor all revenue categories and as part of Mid-Year make any necessary revenue projection adjustments. 4 Expenditures As of the first quarter a few departments are requesting budget adjustments to ensure they end the year within budget appropriations. The recommended adjustments are summarized below: Fund Department Description Expenditure Revenue Fund Balance General Fund Rec. and Comm. Services (500,000) - 500,000 Transfer out of Parks Master Plan to Non-Depart. General Fund Non Departmental 500,000 - (500,000) Transfer in of Parks Master Plan General Fund Public Works 933,712 1,027,083 93,371 Budget Authority for 4 Leaf contract amendment approved by Council on July 7 General Fund Public Works 47,810 - (47,810) Emergency storm drain analysis 981,522 1,027,083 45,561 Special Revenue Public Works 460,986 460,986 - Budget Authority for increased Bubb, Elm & McClellan Storm Drain/Sanitary Sewer Improvement Project contract amendment approved by Council on May 19 Capital Fund Capital Projects 500,000 500,000 - Transfer in of Parks Master Plan from the General Fund 960,986 960,986 - 1,942,508 1,988,069 45,561 Recommended Adjustment Total General Fund Total Other Funds TOTAL ALL FUNDS In addition, some departments have identified the nee d for potential adjustments at Mid-Year as well. These preliminary requests are summarized below: Fund Department Description Expenditure Revenue Fund Balance General Fund Law Enforcement 34,805 72,500 37,695 Addition of a part time Code Enforcement Officer General Fund Rec. and Comm. Services 20,000 - (20,000) AED unit replacement General Fund Rec. and Comm. Services unknown - - Relocation of staff to Quinlan Community Center General Fund Administration unknown - - Postage for Cupertino Scene General Fund Public Works unknown - - Turf reduction at public buildings General Fund Public Works unknown - - Office space lease or trailer rental Special Revenue Public Works 200,000 - - Additional funds for the Storm Drain Master Plan Update Project Internal Service Public Affairs unknown - - Contract Services 254,805 72,500 17,695 Recommended Adjustment TOTAL ALL FUNDS All issues will be reviewed as part of Mid-Year and a determination made at that time if a request for adjustment is necessary. Fund Balance The FY 2014-15 Amended Budget anticipated the General Fund would end FY 2014-15 with $35.9 million in total fund balance, of which $11.3 million would be unassigned fund balance. Updated projections anticipate the City will end FY 2015-16 with $48.14 million in General Fund fund balance. 5 Amended Y/E Projection Final Budget First Quarter 2014-15 2014-15 2015-16 2015-16 Non Spendable 1.10 1.10 1.10 1.10 Restricted 0.76 0.76 0.76 0.76 Assigned 22.83 31.83 23.83 32.83 Unassigned 11.30 14.45 10.89 13.45 TOTAL FUND BALANCE 35.99 48.14 36.58 48.14 CLASSIFICATION To date the City has yet to have it books audited and revenue, expenditure, and fund balance totals listed in this report are preliminary and subject to change after a full review by the City’s auditors. City staff does not anticipate many if any changes from the auditors. Staffing As part of the final budget, Council approved 180.75 FTEs. On September 15, 2015, Council approved the addition of one Senior Planner bringing the total FTEs for the City to 181.75 as of the first quarter. Performance Measures This year’s budget included updated and new performance measures that align with government and private industry best practices. Going forward staff will begin updating Council with the status of performance measures as part of the quarterly budget reports and the proposed and final budgets. Attachment C represents the status of the performance measures as of first quarter. Conclusion The First Quarter Financial Report shows the City is well-positioned to move forward. City staff recommends adjustments of $1.9 million in appropriations and $2 million in projected revenue resulting in an increase use of fund balance of $45,561 across all funds. As of first quarter, there are limited Mid-Year adjustments anticipated, these and any additional requests will be reviewed at Mid-Year. To date, staff has received estimates for only three out of the eight requests. At that time, staff will identify if these requests can be offset with savings or proceed with the request for an adjustment. If more urgent budget adjustments need to be made before the Mid-Year Budget Report, staff will bring appropriate and timely recommendations to the City Council for consideration. Prepared by: Karen Bernard-Guerin, Senior Management Analyst Reviewed for submission by: Kristina Alfaro, Director of Administrative Services Approved for Submission by: David Brandt, City Manager Attachments: A - Draft Resolution B - First Quarter Financial Report for Fiscal Year 2015-16 C - Performance Measures - Clean Version for each Department D - Performance Measures - Redline Version for each Department RESOLUTION NO. 15- Attachment A A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING THE OPERATING BUDGET FOR FISCAL YEAR 2015-16 BY RATIFYING THE ADEQUACY OF ESTIMATED AMENDED REVENUES TO THE GENERAL AND SPECIAL FUNDS TO COVER AMENDED APPROPRIATED MONIES AND APPROPRIATING MONIES THEREFROM FOR SPECIFIED ACTIVITIES AND ACCOUNTS WHEREAS, the orderly administration of municipal government is dependent on the establishment of a sound fiscal policy of maintaining a proper ratio of expenditures within anticipated revenues and available monies; and WHEREAS, the extent of any project or program and the degree of its accomplishment, as well as the efficiency of performing assigned duties and responsibilities, is likewise dependent on the monies made available for that purpose; and WHEREAS, the City Manager has submitted his estimates of amended anticipated revenues, has determined that estimated amended revenues are adequate to cover amended appropriations, and has recommended the allocation of monies for specified program activities NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby ratify that the attached anticipated amended resources are to be received in the General and Special Funds listed in the attachment during fiscal year 2015-16 and that such resources are sufficient to cover the attached amended appropriations. BE IT FURTHER RESOLVED that there is appropriated from the General and special funds the sum of money set forth as amended expenditures for those funds, to be used for the purposes as expressed and estimated in the report before the City Council. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 17th day of November 2015, by the following vote: Page 2 Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: Grace Schmidt, City Clerk Rod Sinks, Mayor, City of Cupertino Page 3 Attachment A1 Expenditure Adjustments by Fund Fund Expenditure Amount GENERAL FUND $10,300,831 SPECIAL REVENUE FUNDS 14,555,187 CAPITAL PROJECT FUNDS 6,715,413 ENTERPRISE FUNDS 1,169,204 INTERNAL SERVICE FUNDS 1,085,325 TOTAL EXPENDITURE ADJUSTMENTS ALL FUNDS $33,825,960 ¹ To date the City has yet to have it books audited and revenue, expenditure, and fund balance totals listed in this report are preliminary and subject to change after a full review by the City’s auditors. City staff does not anticipate many if any changes from the au ditors. ² The additional $9.3 million in fund balance as of first quarter is to provide a funding source for prior year encumbrances and carryover appropriations and Council approve budget actions of $9.3 million. FIRST QUARTER REPORT The following is the First Quarter Financial Report, submitted by the Administrative Services Department for the period of July 1, 2015 to September 30, 2015 for the 2015-2016 Fiscal Year. It has been prepared to inform the City Council, City leadership and the public of the City’s fiscal status. First Quarter Actuals Amended Budget Year End Actuals First Quarter Actuals Amended Budget Year End Actuals First Quarter Actuals Amended Budget Year End Estimates First Quarter Actuals Final Budget Amended Budget FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 Revenue $10.3 $66.7 $54.7 $8.3 $52.2 $73.9 $8.3 $88.4 $89.3 $10.2 $68.2 $68.2 Expenditures $4.8 $66.0 $44.7 $4.8 $59.4 $64.4 $10.7 $99.0 $87.3 $4.4 $67.6 $77.5 Fund Balance $5.5 $0.7 $9.9 $3.5 $(7.2)$9.5 $(2.5)$(10.6)$2.0 $5.9 $0.6 $(9.3) $(20.0) $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 In M i l l i o n s BACKGROUND On June 2, 2015, the City Council adopted the Fiscal Year 2015-16 Final Budget for the City of Cupertino. This spending plan of $118,565,638 for all funds reflected a 4% or $4,916,000 increase from the 2015 -16 Proposed Budget of $113,649,638. This is due to changes recommended by Council at the final budget hearing and adoption, mainly as a result of the $6 million in additional funding for pavement projects and the removal of $3.7 million in capital projects. The Final Budget is adjusted throughout the year. These adjustments include carrying forward appropriations and encumbrances for obligations from the previous fiscal year, adjustments as part of Mid-Year Financial Report, as well as adjustments approved as part of any separate Council agenda item. Combined, these adjustments result in the amended operating budget of $152,391,598. FY 2015-16 Proposed Budget thru the First Quarter | Amended Budget FY 2015-16 | Flow of Funds Chart (in Millions) General Fund Revenue, Expenditures and Fund Balance GENERAL FUND UPDATE ¹ Am e n d e d B u d g e t $ 1 5 3 . 2 Am e n d e d B u d g e t 1 5 2 . 4 First Quarter Actuals Amended Budget Year End Actuals First Quarter Actuals Amended Budget Year End Actuals First Quarter Actuals Amended Budget Year End Actuals First Quarter Actuals Final Budget Amended Budget FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 Revenue $10.3 $66.7 $54.7 $8.3 $52.2 $73.9 $8.3 $88.4 $89.3 $10.2 $68.2 $68.2 Expenditures $4.8 $66.0 $44.7 $4.8 $59.4 $64.4 $10.7 $99.0 $87.3 $4.4 $67.6 $77.5 Fund Balance $5.5 $0.7 $9.9 $3.5 $(7.2)$9.5 $(2.5)$(10.6)$2.0 $5.9 $0.6 $(9.3) $(20.0) $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 In M i l l i o n s ² SUMMARY General Fund Revenue and Expenditure Trends As of September 30, 2015, General Fund expenditures are $4.4 million; this represents 6% of the budgeted appropriations. Expenditures at the first quarter point of the prior three years were between 7% and 12% of the final actual expenditures, placing this year slightly below the range. General Fund revenues are at $10.2 million; this represents 15% of the budgeted revenue. Revenues at the first quarter point of the prior three years were between 9% and 19%, placing this year within this range. The First Quarter Financial Report shows the City is well-positioned to move forward. City staff recommends adjustments of $1.9 million in appropriations and $2 million in projected revenue resulting in an increase use of fund balance of $45,561across all funds. As of first quarter, there are limited mid-year adjustments anticipated, these and any additional requests will be reviewed at mid-year. To date, staff has received estimates for only two out of the five requests. At that time, staff will identify if these requests can be offset with savings or proceed with the request for an adjustment. If CURRENT ISSUES & CHALLENGES, RECOMMENDED FIRST QUARTER ADJUSTMENTS Are General Fund Revenues and Expenditures on Trend? GENERAL FUND UPDATE (continued) General Fund Classification of Fund Balance POTENTIAL MID-YEAR ADJUSTMENTS 19% 12% 9% 7% 15% 6% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Revenue Expenditures High Low FY 15-16 Amended Y/E Projection Final Budget First Quarter 2014-15 2014-15 2015-16 2015-16 Non Spendable 1.10 1.10 1.10 1.10 Restricted 0.76 0.76 0.76 0.76 Assigned 22.83 31.83 23.83 32.83 Unassigned 11.30 14.45 10.89 13.45 TOTAL FUND BALANCE 35.99 48.14 36.58 48.14 CLASSIFICATION Fund Department Description Expenditure Revenue Fund Balance General Fund Rec. and Comm. Services (500,000) - 500,000 Transfer out of Parks Master Plan to Non-Depart. General Fund Non Departmental 500,000 - (500,000) Transfer in of Parks Master Plan General Fund Public Works 933,712 1,027,083 93,371 Budget Authority for 4 Leaf contract amendment approved by Council on July 7 General Fund Public Works 47,810 - (47,810) Emergency storm drain analysis 981,522 1,027,083 45,561 Special Revenue Public Works 460,986 460,986 - Budget Authority for increased Bubb, Elm & McClellan Storm Drain/Sanitary Sewer Improvement Project contract amendment approved by Council on May 19 Capital Fund Capital Projects 500,000 500,000 - Transfer in of Parks Master Plan from the General Fund 960,986 960,986 - 1,942,508 1,988,069 45,561 Recommended Adjustment Total General Fund Total Other Funds TOTAL ALL FUNDS Fund Department Description Expenditure Revenue Fund Balance General Fund Law Enforcement 34,805 72,500 37,695 Addition of a part time Code Enforcement Officer General Fund Rec. and Comm. Services 20,000 - (20,000) AED unit replacement General Fund Rec. and Comm. Services unknown - - Relocation of staff to Quinlan Community Center General Fund Administration unknown - - Postage for Cupertino Scene General Fund Public Works unknown - - Turf reduction at public buildings General Fund Public Works unknown - - Office space lease or trailer rental Special Revenue Public Works 200,000 - - Additional funds for the Storm Drain Master Plan Update Project Internal Service Public Affairs unknown - - Contract Services 254,805 72,500 17,695 Recommended Adjustment TOTAL ALL FUNDS ATTACHMENT C ADMINISTRATION – KEY PERFORMANCE MEASURES BY DIVISION: SUSTAINABILITY GOAL Establish indicators for sustainability that will enable short and long-term Climate Action monitoring reporting and continuous improvement. FY 14-15 Adopted 1st Quarter Each of Sustainability Division's programs has an effective data collection and management tool. Reporting on program metrics is simplified by having templates and data collection system in place. Each City department considers sustainability-related metrics for their projects. Hired staff to lead environmental and utilities tool development and staff engagement. Strategy Lead data gathering, assessment and reporting of metrics of sustainability measures for the purpose of driving accountability and improvements across municipal operations and the community at large. Measure Reporting templates, open data platform. Metric Number of programs out of total for which an effective data collection and management tools has been found and is in use across all departments/divisions. 2015/16 Outcome Data for each program is efficiently collected and easily analyzed; results of programs are efficiently reported out to Council and community, and synched to open data platform. Status Hired a Sustainability Coordinator to lead all Climate Action Plan (CAP) implementation, associated data gathering and greenhouse gas emissions inventories. Coordinator developing a work plan to envision the most cost and environmentally effective implementation plan and tools to collect relevant staff-level information. Hired Efficiency Coordinator to lead utilities management efforts citywide. Efforts to streamline utilities data 1 ATTACHMENT C entry and analysis underway, alongside ground-truthing meters and associated costs working both in the field and within new asset management tools. GOAL Demonstrate technologies and municipal practices that promote sustainability both in the City’s own operations and in those of its suppliers. FY 14-15 Adopted 1st Quarter Develop employee survey to assess needs and define use cases. Design and pilot procurement tool. Refine based upon feedback. Finalized update to 2008 green purchasing policy to drive this action inside and outside the organization. Hosting departmental trainings. Strategy Develop planning tools to enable comparative analysis of procurement decisions and to support long-term economic, environmental, and socially responsible decision-making. Measure Employee survey. Planning tools and user guide. Metric Number of employees using or inputting into the tool. Number of employees accessing the user guide. 2015/16 Outcome Survey administered to employees and baseline results calculated. Pilot users become power users and champions to other purchasing staff. Status Finalized updated Green Purchasing Policy and developed a User Guide and 1-page Cheat Sheet to support staff policy implementation. Leading customized trainings of all departments to ensure effective use of these resources during all procurement decision-making. 2 ATTACHMENT C GOAL Build Cupertino as sustainability leader among comparable cities through innovative, cost-effective, resource-saving initiatives and partnerships. FY 14-15 Adopted 1st Quarter EPP and Demonstration internal policies finalized. Tracking tool and database developed and relevant staff trained on its use. Researching certification programs (e.g. STAR Communities) and awards (e.g. Beacon Award) to benchmark and/or recognize city sustainability leadership efforts and identify new environmental actions. Strategy Continue and expand collaborative procurement, grant, technical assistance and fellowships efforts to grow programs and enable advanced technology acquisition Measure Updated Green Purchasing Policy, new Technology Demonstration Policy, tracking tools. Metric Policies and tracking tools developed. 2015/16 Outcome City staff has an approved IT-endorsed green purchasing policy and PW-endorsed technology demonstration policy with which to make decisions. Grant, award, technical/fellowship assistance database and tracking tool in place and utilize across relevant departments. Status Developing an awards/certification program database with timelines to ensure acknowledgement of leading City sustainability efforts. Finalized green purchasing policy and researching existing technology demonstration policies as a next step. 3 ATTACHMENT C GOAL Lead outreach to ensure that all community members acquire the knowledge, skills, and tools to meet current and future sustainability challenges. FY 14-15 Adopted 1st Quarter Development and roll out of resident and business surveys. Polling is forthcoming as part of the community survey and updated Cupertino green website. Strategy Elevate awareness of and participation in existing and pilot sustainability initiatives among residents and businesses, to advance ecological citizenship models. Measure Number of new surveying tools that produce meaningful or actionable results; program participation, satisfaction, retention. Metric How many people take the surveys; number/percent of people aware of each program/service/survey question. Number of program participants from baseline, over time. 2015/16 Outcome Have baseline idea of how knowledgeable residents and businesses are of programs, services, technologies. Produce list of discrepancies between services offered and results of community interest surveys. Initiate outreach campaign development. Status Researching other agency models for this type of exercise that are the most cost effective and achieve the highest response rate. CITY CLERK GOAL Streamline information processing for Council, staff, and public. FY 14-15 Adopted 1st Quarter 50% of employees sign acknowledgement and answer questions successfully. Records Retention policy and procedures 4 ATTACHMENT C packet to be included in the new employee hiring package given out by HR and this PM will not be included in the next budget cycle for the City Clerk’s division. Strategy All employees receive Records Retention policy and procedures. Measure Clerk's office receives signed acknowledgement that employee received and reviewed policy and procedures. Also, employee will answer two questions about the policy and/or procedures. Metric Percentage of employees who sign acknowledgement and answer questions successfully. 2015/16 Outcome Success enabled by having simple, clear instructions and/or policies for records retention, formatting staff reports and attachments, and drafting agenda items in Legistar; training individuals on these instructions/policies; support from City Manager and Department Heads to respect packet deadlines. Status Worked with Administrative Services and agreed that the Records Retention policy and procedures packet will be included in the new employee hiring package given out by HR. For current employees one time only in this budget cycle, the City Clerk’s office will email the Records Retention policy and procedures packet to the Department Admins to forward to each employee in the department. This Performance Measure will not be included in the next budget cycle for the City Clerk’s division. FY 14-15 Adopted 1st Quarter 75% of users sign acknowledgment City Clerk’s office will contact Department 5 ATTACHMENT C Admins and Commission staff liaisons to identify all employees who draft Council agenda items and/or create commission agendas. Strategy Identify employees who draft Council agenda items and/or create commission agendas and train them on Granicus Legistar/Insite. Measure Clerk's office receives signed acknowledgement from employee and trainer that instructions were received and employee was trained. Metric Percentage of users who sign acknowledgement. 2015/16 Outcome All users trained and proficient in program. Status City Clerk’s office will contact Department Admins and Commission staff liaisons to identify all employees who draft Council agenda items and/or create commission agendas. Each of those individuals will receive written instructions and either be trained personally by the Department Admin or the City Clerk or Deputy City Clerk. Once trained, the individual and trainer will sign an acknowledgment form. FY 14-15 Adopted 1st Quarter 50% of the time, each Dept. Head and City Manager will have Council agenda items approved and Clerk's office will have packet prepared by specified deadline. Departments are already aware of the agenda deadlines and PM will not be included in the next budget cycle 6 ATTACHMENT C for the City Clerk’s division. Strategy Final approval of Council agenda items by 4:00 p.m. on packet day. Clerk's office will post packet and send information to Council members no later than 6:30 p.m. on packet day. Measure Clerk's office will track when each department's Council agenda items were approved by the Dept. Head and City Manager. Metric Percentage of time each department's Council agenda items are approved and packet ready by specified deadline. 2015/16 Outcome All departments aware of and adhere to deadlines. Packets processed no later than 5pm on packet day. Status This Performance Measure strategy and outcome relies on the performance of other departments getting their agenda items in the system in a timely manner for the City Manager’s approval. Departments are already aware of the deadlines and the City Clerk’s office can only begin processing the packet once all agenda items are in the system and approved. This PM will not be included in the next budget cycle for the City Clerk’s division. FY 14-15 Adopted 1st Quarter NEW: 100% of Public Record Act requests responded to by the deadline date. 100% of Public Record Act requests responded to by the deadline date. Strategy Public Record Act requests responded to in a timely manner. Measure Public Record Act requests log “due date” column (including any “extension”) and “date fulfilled” column match. Metric Percentage of Public Record Act requests responded to by the deadline date. 2015/16 Outcome 100% of Public Record Act requests responded to by the deadline date. Status 36 Public Record Act requests have been logged for first quarter FY 2015-16 and 36 have been responded to by the deadline date. 7 ATTACHMENT C FY 14-15 Adopted 1st Quarter NEW: 80% of City Council minutes for regular meetings presented for Council approval by the following regular meeting. 71% of minutes for regular Council meetings submitted for approval at the next regular Council meeting. Strategy City Council minutes prepared and presented for City Council approval in a timely manner. Measure Clerk’s office will track the date of each regular Council meeting and when the draft minutes were presented for approval. Metric Percentage of regular Council meeting minutes approved by the next regular Council meeting. 2015/16 Outcome 80% of minutes for regular Council meetings submitted for approval at the next regular Council meeting. Status Seven regular Council meetings and one special Council meeting occurred in first quarter including two meetings that went past 11:00 p.m. Five sets of minutes for regular Council meetings were submitted for approval by the next regular meeting. FY 14-15 Adopted 1st Quarter NEW: 90% of adopted City Council resolutions and ordinances processed and scanned to Laserfiche within a week of Clerk’s office receipt of final, signed documents. 100% of adopted City Council resolutions and ordinances were processed and scanned to Laserfiche within a week of 8 ATTACHMENT C Clerk’s office receipt of final, signed documents. Strategy Adopted City Council resolutions and ordinances signed and scanned to Laserfiche in a timely manner. Measure Clerk’s office will track time it takes to process adopted resolutions and ordinances after a City Council meeting until the time they are scanned to Laserfiche. Metric Percentage of City Council adopted resolutions and ordinances signed and uploaded to Laserfiche for public viewing within a week of Clerk’s office receipt of final, signed documents. 2015/16 Outcome 100% of adopted City Council resolutions and ordinances were processed and scanned to Laserfiche within a week of Clerk’s office receipt of final, signed documents. Status 34 resolutions and three ordinances were adopted in first quarter and 100% were processed and scanned to Laserfiche within a week of Clerk’s office receipt of final, signed documents. 9 ATTACHMENT C ADMINISTRATIVE SERVICES – KEY PERFORMANCE MEASURES BY DIVISION: FINANCE GOAL Deploy tools to empower and boost the efficiency of our employees. FY 14-15 Adopted 1st Quarter Allow our customers the ability to quickly and securely make payments using their devices. N/A 25% Strategy Launch state-of-art online payment portal (cloud based). Measure Attain banking expansion with Wells Fargo. Track user experience in payment portal through user survey. Metric Positive customer experience surveys. # of payments processed via old system (online/in person ratio). # of payments processed in new system (online/in person ratio). 2015/16 Outcome Payment system implementation complete. Customer payment process simplified. Status Initial Meeting with Wells Fargo completed. On target for fiscal year end implementation. FY 14-15 Adopted 1st Quarter Employee dashboard to complete time cards, review leave balances, and initiate personal and benefit changes. N/A 100% Strategy Launch Full-Service Employee portal. Measure New World Systems, time card entry purchased, implementation in-progress. User survey pre-and-post implementation to learn time savings, ease of use, change in capabilities. Metric Positive customer experience surveys. # of users, click through rate. HR/Admin services survey pre-and-post implementation to learn # of requests addressed in-person vs. new tool. 2015/16 Outcome New World Systems implementation complete. Employees trained and utilizing tool. 10 ATTACHMENT C Status Completed, All City users are trained on the portal. Training manual is available on the intranet and training videos are expected before fiscal year end. FY 14-15 Adopted 1st Quarter Develop a City Telework policy that allows flexibility to work outside City offices in a productive and environmentally- beneficial manner. N/A 50% Strategy Implement Telework policy and associated technology needs to enable remote working options for City employees. Measure Develop draft policy for review by Department Heads. Work with IT to determine and source technology needs. Pilot policy. Adjust where needed and deploy globally. Metric # of employees approved to participate. # of hours logged @ home. GHG and fuel savings cataloged. 2015/16 Outcome Build a flexible work arrangement that reduces commutes and associated emissions, benefits the employee, departments and customers by making more efficient use of staff time. Status 50% complete. Launched pilot program with policy in September. If pilot is successful anticipate full roll out by fiscal year end. FY 14-15 Adopted 1st Quarter Consistent hardware and software technology at each workstation for improved efficiencies. Conference rooms equipped consistently with same audio/video technology. N/A 75% Strategy Establish standard departmental workstations and conference room set-up to expand technology access and user experience. Measure Standard established. User experience surveys administered pre- and-post deployment. 11 ATTACHMENT C Metric # of workstations upgraded. # of conference rooms upgraded. Positive user experience recorded and improvement recommendations prioritized. 2015/16 Outcome Employee productivity improved. Technology staff time reduced for workstation and conference room trouble-shooting. Status 75% Complete. All workstations in Administrative Services are utilizing the Virtual Desktop Integrator (VDI). Staff continues to test the speed of the system. VDI console also install in conference room. HUMAN RESOURCES GOAL Diversify employee training opportunities across all work classifications. FY 14-15 Adopted 1st Quarter Explore internal opportunities for mentorship (mentee- driven). N/A +-10% Strategy Offer web or computer- based supervisory trainings; intra- departmental mentorships and cross-trainings; explore personal and professional growth opportunities. Measure Send out surveys to learn employee training needs. Compile training rosters and offer evaluation forms to provide feedback. Metric Training needs survey received from all employees. Attendee satisfaction. Training roster attendance. 2015/16 Outcome Create training catalog/schedule Status In progress, anticipate training survey in early 2016. 12 ATTACHMENT C COMMUNITY DEVELOPMENT – KEY PERFORMANCE MEASURES BY DIVISION: ADMINISTRATION GOAL Improve customer service experience and relationships. FY 14-15 Adopted 1st Quarter Enhance website functions and usability/searchability. Enhance access to online documents. In progress Strategy Provide the public and customers with the ability and tools to answer questions online resources. Measure Updated website with survey prompts. Track Comcate tickets/utilize services through alternative Customer Relationship Management (CRM) Software if/when piloted. Metric Track number of website views, hits, and/or downloads. Survey responses. 2015/16 Outcome Customers are empowered to get the information and tools they are seeking easily to increase transparency and efficiency. Status Building website reorganized for better usability. Planning website reorganization in progress. City-wide website re-design in progress, but not complete. FY 14-15 Adopted 1st Quarter Develop curriculum and presentations to achieve specific and targeted learning outcomes. Once administered, convert workshop content into online sessions to heighten information sharing and access. Create tools to enable text survey/polling. In progress Peak Democracy’s Open Town Hall utilized 13 ATTACHMENT C Strategy Increase community outreach and education to foster greater awareness and build community knowledge of the planning and development process by organizing, hosting, and recording local training or informational workshops and presenting to relevant stakeholder groups. Measure Updated website with survey prompts. (Paper, Text, Online) Surveys provided to workshop attendees to gauge knowledge before and after session as well as satisfaction to information delivery. Metric Customer Relationship Management (CRM) Software (if/when piloted by department) or community outreach tracking tool (excel) denoting # of workshops hosted, # of attendees, # of survey responses (text or CRM) on the quality/usefulness of materials presented. Number of page views/downloads of online community workshop videos. 2015/16 Outcome Online public education and public information (articles, tips, fact sheets) generate greater customer support and education and serve as a more efficient and effective community outreach. Increased connectivity between the public and department builds community engagement and trust, thereby enabling expanded community input from broader participants. Model effective private-sector customer engagement and interactions where applicable. Status Conducted Economic Development Strategic Business Plan Roundtable community meeting Vallco, The Oaks, and The Hamptons developers sponsored several community outreach meetings to provide information and gather public comments. Utilized Peak Democracy’s Open Town Hall as an online forum to engage the public for the General Plan Amendment. GOAL Build, Support, Sustain Workforce Performance Excellence. FY 14-15 Adopted 1st Quarter Strengthen employee development opportunities to encourage professional growth and improvements and Ongoing 14 ATTACHMENT C stronger understanding of processes within and among Department. Strategy Improve teamwork and employee satisfaction to foster stronger customer service experience. Measure Expand professional development opportunities to include training and career enrichment courses/seminars, cross training with other departments, special topics or learning from guest speakers /educators. Metric Track/schedule numbers of special sessions and topics each year. Employee survey responses. 2015/16 Outcome Professional development efforts build a cadre of better trained and efficient staff and improve the quality of public service. Status Planning Division staff attended annual California American Planning Association conference for continuing education and professional development. Building Division provided four Title 24 training sessions at Staff meetings. Building Division staff attended annual Calbo conference for continuing education and professional development. FY 14-15 Adopted 1st Quarter Host department retreats/ work sessions (1/year), alt. dept. job shadowing, mentorship program with experts in the field. Improve Economic Dev. interface via quarterly updates. Ongoing In progress Strategy Build inter/intra dept. relations to expand City staff support network required to enable successful operations/planning processes. Measure Quarterly/annual employee reviews, prioritize professional development discussions with supervisors. Staff/supervisors collaborate to develop professional development plans. Metric Track work sessions and retreats in professional development matrix/plan. Progress in achieving objectives and actions outlined in professional development plans. 2015/16 Outcome Grow relationships within divisions and across departments to take advantage of opportunities to learn, improve team partnership and 15 ATTACHMENT C grow greater work satisfaction, build a better trained and well- rounded staff, and improve quality of public service and customer satisfaction. Status Conducted annual employee reviews as they are due. Planning Division retreat on September 17, 2015 provided team building exercises and addressed challenges and solutions. Economic Development Manager provides quarterly updates at Planning Division Staff meetings. PLANNING GOAL Demystify the planning process. FY 14-15 Adopted 1st Quarter Enable customer to access status of plan/development review through new online permitting system. In progress Strategy Empower customers to get useful information and helpful tools easily online. Measure Updated website with survey prompts, Comcate tickets or alt. Customer Relationship Management (CRM) Software if/when piloted. Implement online permitting system to provide customer access to information. Metric Track # of website views, hits, and/or downloads. Customer satisfaction and user experience via survey responses. Track project development timelines prior to and after system implementation. 2015/16 Outcome Department increases transparency and efficiency through heightened public access and improves accountability and overall customer experience. Status Planning Division website reorganization in progress. FY 14-15 Adopted 1st Quarter Team w/ dpts. to increase community outreach through new In progress 16 ATTACHMENT C technologies. Build youth engagement by connecting regularly with Teen Commission, De Anza College, and High Schools student groups Strategy Tap quiet majority of community members not currently participating in the planning, development, ordinance, or public hearing process. Measure Deploy new community engagement and/or Customer Relationship Management (CRM) tools. Expanded social media and pro-active vs. reactive planning-led outreach efforts. Metric Track website views, hits, and/or downloads. Customer satisfaction and user experience survey responses. 2015/16 Outcome Garner greater customer support and education to build and operationalize efficient and effective community outreach, strengthen community engagement and relations, and gain access to broader and more diverse community input. Status Utilized Peak Democracy’s Open Town Hall as an online forum to engage the public. Engaged the Teen Commissioners to provide ideas and comments for the General Plan Amendment. FY 14-15 Adopted 1st Quarter Engagement strategy drafted and includes,: visiting companies, retail businesses, meeting with Chamber leadership, participating in local/regional business organizations, attending networking events, meeting with real estate brokers and property managers. In progress Strategy Develop business engagement strategy, targets, timeline, milestones and tracking tool. Evaluate lessons learned to integrate into future performance measures and work program. 17 ATTACHMENT C Measure Feedback tool developed to learn experiences of businesses to date and assess future informational and service needs. Tracking tool developed to record # of site visits, meetings, functions, etc. Metric Quantity of meetings. Business experience survey results. 2015/16 Outcome Increase business relations with the City, evaluate existing business services, define new business support resources, and generate new business to business partnerships. Status Assistant City Manager, Economic Development Manager and Senior Housing Planner regularly attend the Legislative Action Committee, Chamber of Commerce meetings, Rotary meetings, Santa Clara County Association of Planning Official meetings. Economic Development Manager hosted Women’s Networking Workshop. GOAL Improve City economy, vitality, sustainability, and economic diversity. FY 14-15 Adopted 1st Quarter Develop curriculum and presentations to achieve specific and targeted learning outcomes. Once administered, convert workshop content into online sessions to heighten information sharing and access. Create tools to enable text survey/polling. In development Strategy Running in parallel to and informed by the in-progress Economic Development Strategic Plan, create a customized suite of support resources for businesses, emphasizing small businesses. Measure Host, sponsor and co-sponsor workshops and training events. Provide online. Surveys provided to workshop attendees to gauge knowledge before and after session as well as satisfaction to information delivery. Metric Community outreach tracking tool (excel) denoting # of workshops hosted, # of attendees, # of survey responses (text or CRM) on the quality/usefulness of materials presented. Number of page 18 ATTACHMENT C views/downloads of online community workshop videos. 2015/16 Outcome Amplify suite of services offered to small local businesses to better enable their ongoing success and ensure their long-term viability in our community. Status In development GOAL Improve outreach and information sharing targeting internal staff and the public to create greater connectivity with our business base. FY 14-15 Adopted 1st Quarter Map current connection points between staff, electeds, the broader public, and our local businesses including, but not limited to: BizBuzz electronic newsletter, "How to Start a Business in Cupertino" Guide, Items of Interest, Council Work Program, Scene Articles, website. Ongoing Strategy Increase internal and external outreach channels and resources to increase community knowledge of and orientation towards local business services, activities, products. Measure Inventory current informational materials and resources. Learn "user" experience through surveys, page views, downloads, inquiries logged through Comcate or other Customer Relationship Management (CRM) tool. Consider tools to track how this information is generating "leads" or driving customers to local businesses. Metric Quantity of page views, downloads, positive survey, customer experiences, information to customer conversions. 2015/16 Outcome Identify informational gaps and embed plan to address in Strategic Plan. Develop tool to track how City resources lead to greater local business support/sales. 19 ATTACHMENT C Status Updates and information published regularly in BizBuzz, Items of Interest, Cupertino Scene and on the website. 20 ATTACHMENT C PUBLIC AFFAIRS – KEY PERFORMANCE MEASURES BY DIVISION: ADMINISTRATION GOAL Provide superior customer service both in-house and public- facing. FY 14-15 Adopted 1st Quarter Customer satisfaction survey ratings of good to excellent. N/A Annual Strategy Develop customer service best practice guide and host training to institutionalize practices. Measure Customer satisfaction index based upon user satisfaction and number of cases reported. Metric Use Access Cupertino and user surveys to assess community satisfaction. 2015/16 Outcome Satisfied customers as indicated by high internal and end-user ratings. Ratings included in employee performance evaluations. Status Survey conducted annually. FY 14-15 Adopted 1st Quarter Increase rate of online utilization by 10% over previous year. Number of users accessing City information through each channel. N/A 2,104 Jul 2,270 Oct 7.8% Increase Strategy Strive for innovation in customer service approaches. Build in- house experts to serve diverse customer needs. Measure Be an adaptive organization and act as facilitators, enablers, and experts on technology and communications to provide customers and end-users relevant access to City information. Metric Utilize monthly social media and web usage statistics to determine access to City information. Utilize intranet statistics and Google Analytics. 2015/16 Outcome Deploy widely used and growing variety of differentiated online services. 21 ATTACHMENT C Status INFORMATION TECHNOLOGY GOAL Build an IT strategic plan to serve as a management tool, guide decision making, and prioritize staffing. FY 14-15 Adopted 1st Quarter Actionable plan developed, all staff engaged in its implementation, resources adequately aligned to achieve plan goals. N/A Initial document complete Strategy Hire third-party consultant to survey staff needs, assess technology gaps and develop an implementation plan. Measure Plan developed. Technology projects listed. Tracking tool implemented. Metric Number of completed technology projects. Inventory and status of technology services. 2015/16 Outcome Formally adopt IT strategic plan. Status Consultant provided document. First staff governance meeting held. COMMUNICATIONS GOAL Develop a Communications strategic plan to guide organizational outreach priorities and associated staffing. FY 14-15 Adopted 1st Quarter Actionable plan developed, all staff engaged in roll-out, resources adequately aligned to achieve plan goals. N/A Communication assessment complete 22 ATTACHMENT C Strategy Explore consultant options to survey community and staff needs, assess media gaps, implementation plan to address those needs and gaps. Measure Plan developed. Needs and gaps identified. Communications projects listed. Tracking tool implemented. Metric Number of current and prospective communication projects. Inventory of communication services. 2015/16 Outcome Formally adopt strategic plan. Status Consultant submitted final communications assessment. Action plan implementation next phase. 23 ATTACHMENT C PUBLIC WORKS – KEY PERFORMANCE MEASURES BY DIVISION: ENVIRONMENTAL PROGRAMS GOAL Clean creeks in Cupertino. FY 14-15 Adopted 1st Quarter 1) One business day response to illegal discharge to creeks 2) Conduct minimum of 14 creek cleanup events annually 3) Receive no negative actions from enforcement agencies 100% New measure New measure 100% 4/14 complete None received Strategy Prevent to the maximum extent practicable items other than rain water from entering the storm water system. Measure 1) Respond to reported discharge event within one business day. 2) Annual cleanups 3) Quantify actions from enforcement agencies. Metric 1) Comcate logged response time or time after call or email is received. 2) Quantification of the number of Annual Clean Up Events 3) Quantification of negative actions received from enforcement agencies. 2015/16 Outcome Achieve stormwater compliance requirements, ensure healthy protected water system. Status Ongoing with additional efforts to increase community involvement. 24 ATTACHMENT C GOAL Provide efficient and effective recycling, organic and disposal services. FY 14-15 Adopted 1st Quarter 1) Develop organics ordinance. Define data needs and assess tracking tools available (i.e. EPA ReTRAC). 2) Implement organic diversion requirements to affected businesses Complete Completed for Businesses generating > 8cy of organic waste - Sept. 2015 Strategy Divert materials from landfill through expanded recycling and organic policies and services, paired with effective outreach campaigns to increase residential and commercial participation. Measure Monthly diversion reporting from solid waste franchisee and annual CalRecyle diversion rate equivalent (DRE) calculation. Metric Achieve 75% (DRE) diversion, 60% commercial & multifamily diversion. Customer service satisfaction (Godbe Survey). 2015/16 Outcome Adopt organics ordinance and utilize data collection to track progress. Status Ongoing DEVELOPMENT SERVICES GOAL Provide timely development review and permitting services. FY 14-15 Adopted 1st Quarter 2 week response 90% of time 25 ATTACHMENT C Strategy Review and permit private development in a timely and consistent manner in accordance with applicable codes, standards and policies. Measure Respond to complete plan submittals or applications within 2 weeks Metric Track response times using Development Tracking System (not yet implemented) 2015/16 Outcome Strengthened partnership with Community Development. Clear roles and timelines defined. Customer experience improved. Status CIP ADMINISTRATION GOAL Deliver Capital Projects on time and within budget. FY 14-15 Adopted 1st Quarter On time and within budget 80% of time. Strategy Meet published commitments to Council and community in an effective, timely, and quality manner. Measure Project and/or budget management software or alternative tracking tool to enable better accountability of costs, expenses and revenues related to a project. Metric Timeline and budget variances for each project and tracked for program over time. 2015/16 Outcome Deliver project within budget and achieve beneficial occupancy within one month of projected completion date at time of award. Status Measurements methods under development. 26 ATTACHMENT C STREETS GOAL Safe street markings, legends and signs for motorist, cyclists, and pedestrians. FY 14-15 Adopted 1st Quarter 1) One business day response to reported unsafe conditions. Strategy Appropriately placed street markings, legends and signs benefit motorists, cyclists and pedestrians. Measure 1) Respond to street marking, legend and sign issues within 3 business days Metric 1) Comcate logged response time and customer feedback. 2) CityWorks software 2015/16 Outcome 2015 paving projects have had scope of work increased to include safe street marking and legend work on both streets scheduled and not scheduled for pavement improvement. Status Ongoing GOAL No viewable graffiti within Cupertino. FY 14-15 Adopted 1st Quarter Remove 100% of known graffiti on public property within 4 business days Strategy Remove graffiti before more tagging occurs. Measure Clean up within 48 business hours of call. Metric Comcate logged response time and customer feedback. 27 ATTACHMENT C 2015/16 Outcome Community aesthetic maintained. Status Ongoing GOAL Maintain reliable storm drain system. FY 14-15 Adopted 1st Quarter 1) Respond to reported storm drain system deficiencies within one business day 100% Strategy Efficiently inspected and maintained storm drain system assists in minimizing the potential for localized flooding. Measure 1) Respond to reported storm drain system deficiencies within 24 business hours. Metric 1) Comcate logged response time and customer feedback. 2015/16 Outcome Ongoing Status Collection system cleaning / videoing of hot spot areas scheduled for November ’15 completion. GOAL Effectively maintain streetlight network. FY 14-15 Adopted 1st Quarter 1) Respond to reported streetlight outages within 2 business days 2) Resolve issues with City owned streetlights within 5 business days. 100% 100% 28 ATTACHMENT C Strategy Repair streetlights in a timely manner. Measure 1) Comcate logged response time and customer feedback 2) CityWorks software Metric 1) Comcate logged response time and customer feedback. 2015/16 Outcome Reliable streetlight network that promotes community safety. Status Ongoing GOAL Citywide street network pavement condition index (PCI) of 80 by 2019; no street below 30 for two consecutive years. FY 14-15 Adopted 1st Quarter 1) Network PCI of 80 by FY19/20. 2) No individual street PCI <30 for two consecutive years. Strategy Well maintained streets conserve resources, promote commerce and promote community safety. Measure 1) Metropolitan Transportation Commission (MTC) StreetSaver reports. Metric 1) Sufficient operating budget recommended and approved. 2) Annual pavement condition report as calculated by StreetSaver and submitted to the MTC. 2015/16 Outcome Street network PCI is calculated to be 72 and approximately 4 miles of streets will have a PCI <30 at the end of 2016. Status Network PCI is calculated to improve from a current value of 70 to 72. Continued improvement is conditional to future budget appropriation. 29 ATTACHMENT C GOAL Safe pedestrian pathways FY 14-15 Adopted 1st Quarter 1) Respond and mitigate reported pathway deficiencies within 1 business day. 100% Strategy Maintain sidewalks, curb and gutter to a standard that minimizes liability. Measure 1) Respond and mitigate pathway deficiencies within 1 business day. Metric 1) Comcate logged response time and customer feedback. 2015/16 Outcome Safer pedestrian pathways mitigate potential issues and support citizen's quality of life. Status Ongoing TREES AND RIGHT-OF-WAY GOAL Healthy and expanding urban forest. FY 14-15 Adopted 1st Quarter 1) Respond to reported safety issues with 1 business day 2) Inspect and maintain all street trees and park 100% New 100% New 30 ATTACHMENT C trees within 5 year cycle. 3) Plant more trees than removed. Measure Measure Strategy Maintain urban forest to ISA standards that minimize liability, improve and/or maintain tree values. Measure 1) Respond and mitigate safety issues within 24 business hours. 2) Inspect and maintain all street trees and park trees within 5 year cycle. 3) Number of trees planted compared to number of trees removed. Metric 1) Comcate logged response time and customer feedback. 2) CityWorks software. 2015/16 Outcome Urban canopy expanded, protected, serviced. Safety issues mitigated. Status FY15/16 is the last year of a 4 year program to plant 1600 trees citywide. 31 ATTACHMENT C RECREATION AND COMMUNITY SERVICES – KEY PERFORMANCE MEASURES BY DIVISION: ADMINISTRATION GOAL Develop a healthy, positive and connected team. FY 14-15 Adopted 1st Quarter 100% of priorities complete by June 30, 2016. N/A On Track Strategy Identify Department priorities for FY 15/16 and form sub- committees to work on each goal. Measure Priorities list developed, readily accessed and tracked by each implementing program. Metric Percentage of priorities completed by December 2015 and June 2016. 2015/16 Outcome Improved technology, marketing and customer service levels. Status Perfect Mind contract approved in negotiations. Estimated completion 09/2016. New Business & Community Services Division rollout in January 2016 addresses the above. FY 14-15 Adopted 1st Quarter Benchmark current inner departmental communications tools and develop a priority list of expansion opportunities. Deploy tools to improve RCS staff knowledge of ongoing and prior successes. N/A On Track Strategy Establish a department newsletter denoting quarterly accomplishments and items of interest. Measure Survey staff at departmental meetings to evaluate experience and gauge awareness of colleague's projects. 32 ATTACHMENT C Metric Increase awareness of City and department issues and projects by 10%. 2015/16 Outcome Enhanced communication of department projects and accomplishments. Status Monthly department meetings have been implemented as well as a quarterly newsletter. Utilizing items of interest to increase awareness of department projects and accomplishments. Monthly meetings implemented with senior management and Public Works. FY 14-15 Adopted 1st Quarter Increased participation in cross-division events by 25%. N/A On Track Strategy Establish monthly department wide meetings to team build, communicate subcommittee milestones and organization issues/successes. Measure Meetings convened, hosted, tracked. Information shared with all departmental members. Metric Percentage of participation at meetings and department events. 2015/16 Outcome Strong cohesive team developed to expand partnerships and elevate customer services and experience. Status Monthly Department meetings implemented achieving 90% participation. Sub-committees established for technology, customer service and marketing. FY 14-15 Adopted 1st Quarter 100% participation in annual training for all full-time staff. Annual enhancement of customer service modules for all part- time staff during in- service training. N/A On Track Strategy Place high priority on training and encourage expanded professional development opportunities for staff. Measure Percentage of participation in annual training courses, passing-on new ideas, program concepts and service delivery tips via internal 33 ATTACHMENT C communications cataloging /project management tool. Track customer service experience before/following implementation via online, in-class surveys, Comcate. Metric Quantity of courses offered, participant attendance. Tool to foster greater team dialog and brainstorming explored. Positive customer experiences recorded. 2015/16 Outcome Customer service experience improved. Customer service modules available online and shared with all departments to ensure consistency. Status All staff required to attend skill enhancement training. On track for 100% compliance. Staff “reports out” to full department what they learned at monthly meetings. Annual department workshop off- site scheduled 2/23-2/24/16. GOAL Increase use of technology to facilitate efficiency, expand marketing and bolster customer experience. FY 14-15 Adopted 1st Quarter Registration available at any facility 100% of the time. Participant feedback readily available. N/A Pending Perfect Mind Software Installation Strategy Implement a new registration system department-wide. Measure Development of methods to register and obtain customer feedback electronically using internet and smart devices. Metric Quantity and quality of customer feedback received prior to and following system deployment 2015/16 Outcome Improved employee efficiency and productivity. Customer experience improved and access to information enabled. Status Contract approved by City Council and in negotiations. 34 ATTACHMENT C FY 14-15 Adopted 1st Quarter 10% increase in social media outreach. N/A On Track Strategy Effective use of social media marketing for classes and events. Measure Development of methods to notify customers via social media. Metric List of methods currently used. List of new approaches. Project management schedule and timeline to implement methods. 2015/16 Outcome Strengthen partnership with Communications Department to develop an outreach plan for RCS that defines effective messaging, civic media assets, roles, timelines, and responsibilities. Status -Marketing seminar attended in September 2015 -Target marketing media identified -Pilot program anticipated for Big Bunny 5K/Fun Run -Implementation of Perfect Mind will enhance capabilities as well as establishment of Business division in January 2016. FY 14-15 Adopted 1st Quarter Scala screen Installation at four facilities with weekly program information. N/A On Track Strategy Install Scala monitors in each facility with program specific content for the facility and then the department. Measure Development of marketing information for each site and department wide. Metric Inventory of information to share. Timeline to implement system. 2015/16 Outcome Expanded customer access to information on programs and services on a facility-by-facility basis. Status Scala screens now installed at Quinlan, Senior Center and Sports Center. Environmental Educ Center at McClellan is pending. Training with City Channel to be scheduled. 35 ATTACHMENT C PARK PLANNING AND RESTORATION GOAL Pursue new parks and improvements to existing parks, guided by community input. FY 14-15 Adopted 1st Quarter Corridor Master Plan report delivered by January 2016. Incorporate user comments into programming. N/A On Track Strategy Facilitate a Stevens Creek Blvd to McClellan Ranch Road Corridor Master Plan. Measure Solicit community input through a wide number of outreach events including public meetings, web site outreach, surveys and stakeholder interviews. Metric Online survey participation, post card mailing, social media/civic engagement tool tracking. 2015/16 Outcome Provide a 20 Year master plan for the BBF Golf Course, BBF Swim & Picnic facility, Stevens Creek Trail and McClellan Ranch Preserve (Environmental Education Center/Blacksmith Shop/Barn, etc.) Consultant, M.I.G., is in process of completing report. Golf Course component complete by National Golf Foundation (NGF). Status Report is scheduled for Parks & Recreation Commission in December 2015 and City Council in January 2016. FY 14-15 Adopted 1st Quarter City wide Park Master Plan report delivered by September 2016. Incorporate user comments into programming. N/A On Track Strategy Facilitate a City Wide Park and Recreation Master Plan. Measure Solicit community input through a wide number of outreach events including public meetings, web site outreach, surveys and stakeholder interviews. 36 ATTACHMENT C Metric Online survey participation, post card mailing, social media/civic engagement tool tracking. 2015/16 Outcome Provide a 20 year Park Open Space and Recreation Master Plan to improve customer service experience. Status Contract awarded to RHAA. Work began October 2015. FY 14-15 Adopted 1st Quarter Lawrence Mitty - Complete appraisals & soils testing; negotiate property acquisition; annex property, apply for grant funding by 12/2016. Main Street - Review and recommend modifications by 5/2015. N/A N/A On Track Complete Strategy Pursue the acquisition of parks and trails on the east side of Cupertino. Measure Identify and carry out the steps to acquire the County Roads and Airport property known as the Lawrence Mitty Linear parcel; Review the Main Street Park Plan and facilitate Park and Recreation Commission and City Council review and approval. Metric Project management timeline developed, milestones achieved. Budget prepared and achieved. 2015/16 Outcome Expand park assets and associated community benefits citywide. Status Lawrence Mitty – appraisals done. Soil testing scheduled for November 2016. Main Street park design revised and approved by Parks & Recreation Commission and Council. Construction pending. 37 ATTACHMENT C FACILITIES AND COMMUNITY EVENTS GOAL Upgrade the Quinlan Community Center to increase usage and revenue generation from the facility. FY 14-15 Adopted 1st Quarter Reduce energy costs by 10%. Reduce maintenance time by 10%; Enhancements complete by 6/2015. N/A On Track Strategy Complete the Quinlan Community Center Upgrade project: energy efficient lighting, facility upgrades. Measure Replace lighting fixtures. Replace flooring for more efficient maintenance. Paint all public spaces and remodel front office. Metric Pre-and-post site energy use tracked. Project timeline and milestones tracked. 2015/16 Outcome Facility energy use and aesthetics improved. Status Quinlan Community Center remodel complete; pending (a) interior painting and (b) New lighting in Cupertino Room. FY 14-15 Adopted 1st Quarter Increase facility rentals by 5%. N/A On Track Strategy Utilize new marketing materials for promotion of the Center. Measure Prepare new marketing materials: virtual tours, marketing brochures, marketing binders, social media announcements. Metric Online user surveys. Site access/click-throughs. 2015/16 Outcome Additional revenue generated through increased program enrollment. Status New Business Division will be addressing after January 2016. Facility use policy being revised with goals for easier registration process for customers. FY 14-15 1st Quarter 38 ATTACHMENT C Adopted Increase facility rentals by 5%. N/A On Track Strategy Book multiple rentals per day if possible. Measure Implement scheduling software. Metric Bookings pre-and-post deployment. 2015/16 Outcome Additional revenue generated through increased space programming. Status New Business Division will be address with installation of Perfect Mind reservation system and new facility use policy. GOAL Implement creative solutions at Blackberry Farm to improve the customer service experience while complying with new bus restrictions into the complex. FY 14-15 Adopted 1st Quarter Increase revenue by 10%. N/A Complete Strategy Expand pool and picnic programs for the summer season. Measure Outline current programs and services. Evaluate expansion opportunities based upon resident surveys, assessment of adjacent city municipal services. Metric Survey results. Service gap analysis. Programs proposed. 2015/16 Outcome Expand services and resultant revenues through: pool party packages; catering packages; water aerobic classes, etc. Status 1-Staff will be pursuing expanded programming in conjunction with Foot Golf groups and an “Adult Learn how to Swim” campaign in April 2016. 2-For the 2015 season, revenue increased by 13.4% or $35,514 compared to 2014. This increase was primarily in the areas of swimming and café sales. 39 ATTACHMENT C FY 14-15 Adopted 1st Quarter Maintain status quo re: number of field trips and not loose patrons. N/A Complete Strategy Educate patrons on transportation options and provide acceptable customer service alternatives to bussing children into BBF. Measure Evaluate current site transportation services and alternatives via survey. Meet off-site busses with carts to carry in their coolers and supplies. Metric Service summary developed. Alternatives proposed. Traffic mitigations recommended. Informational materials developed. Survey results recorded. 2015/16 Outcome Mitigate site traffic impacts and create a more pleasant guest experience. Status The efforts listed have been implemented, however, due to the inconvenience of walking small children into the facility and other factors beyond our control, several groups will not be using the facility next year. YOUTH AND TEEN PROGRAMS GOAL Grow a healthy community by evaluating opportunities to expand community participation in programs and facilitate greater access to services, facilities and parks across all demographics. FY 14-15 Adopted 1st Quarter Adjust weekend hours at the Teen Center to provide more opportunities for private events and increase rental revenue by 20%. N/A On Track Strategy Adjust current Teen Center operational hours to increase rental periods. Measure Teen Center rental revenue monitored and managed via facility rental software. Metric Yearly rental revenue reviewed and compared to previous yearly revenue reports. 40 ATTACHMENT C 2015/16 Outcome Rental opportunities and facility options expanded for community and revenue from facility rentals increased. Status FY 14-15 Adopted 1st Quarter Increase number of Teen/Adult Art, S.T.E.M., nature programs by adding at least 2 new contractors to support student demands. Review opportunities and requirements to expand preschool program. N/A On Track Strategy Consult with current contract instructors to explore additional service offerings and expand classes for teens and adults. Acquire feedback from target population on desired programming, including expanded preschool. Measure Registration software reports including returning students; Class satisfaction surveys administered to participants of all new and existing programs, including requests for new or expanded services. Metric Participant and revenue totals measured against figures before new program deployment. Customer feedback would be reviewed through survey results detailing participant satisfaction. 2015/16 Outcome Teen and Adult recreational class selections expanded for community. Revenue for Teen/Adult classes increased. Preschool program has clearly defined expansion pathway. Status Teen S.T.E.M.-youth start-up expanded their offerings. Includes two new computer coding camps and quarterly afterschool web design class. New contractor, Clinton Brownley, will offering youth and teen programs and data analysis programs in Winter. May offer adult programs in future. Nature Classes—New instructor, Charlie Kennard, will be teaching a Twined Tule and basket making class geared for teens and adults (13+) this Winter. Cait Hutnik will be teaching a Lichen class for all ages. Adult Art—Mobile Art Academy added as instructor last Spring; 41 ATTACHMENT C Offering youth camps and quarterly adult classes. Two youth camps were full this summer, while adult classes have been slow to gain momentum. SPORTS AND FITNESS GOAL Offer Sports Center programs targeted at school age groups in order to entice more families to join the Center. FY 14-15 Adopted 1st Quarter 5% increase in family memberships N/A On Track Strategy Expand memberships through expanded services desired by the community. Measure Survey members to identify needs and the broader public to identify service gaps. Evaluate programs to find gaps in programming for these age groups. Metric Survey results. Service gap analysis. Programming proposals. 2015/16 Outcome Age appropriate programming developed to provide family opportunities such as kids’ club and parents’ night out. Status Implemented Kids Club and Parents Night Out. Restriped gym floor for multi-sport programming. GOAL Provide a fun and memorable recreational experience for families at the 2016 Big Bunny 5K. FY 14-15 Adopted 1st Quarter 10% increase in participation N/A On Track Strategy Investigate different online survey options to increase awareness and identify improvements for the event. Measure Develop appropriate program modifications to improve family experience. Survey prior to and following implementation. Metric Survey results. 42 ATTACHMENT C 2015/16 Outcome Big Bunny fun run receives positive press, user-generated social media accolades. Participation grows year after year. Status Coordinated with CEEF 5K and Super Heroes 5K for shared and targeted marketing. Implementing new amenities at events to improve experience. GOAL Introduce foot golf at the BBF golf course. FY 14-15 Adopted 1st Quarter 8% increase in participation. N/A Complete Strategy Target participation at BBF golf course to those who don't currently use the facility (i.e. after school youth league). Measure Develop list of groups currently using site. Develop list of prospective users. Outreach to all. Track site use prior to and following outreach. Track outreach channels. Metric Site use. Outreach metrics - number of messages developed, shared; click-throughs. 2015/16 Outcome Expand partnerships with youth and adult groups (AYSO, Apple, etc.) to market programs. Customer notification of specials, events, shared via social media. Status Foot Golf Kick-off on 7/4/15. Chamber promotion currently underway for October/November 2015. AYSO promotion planned for November/December. SENIOR PROGRAMS GOAL Expand membership and existing member satisfaction. FY 14-15 Adopted 1st Quarter Complete marketing plan and develop surveying and tracking tools. N/A On Track Strategy Using effective outreach strategies, informed by the departmental marketing plan, to grow membership by 2 percent per year. Measure Quantity of memberships and renewals measured; Number of membership referrals. Feedback received on services, programs, 43 ATTACHMENT C Center. Metric Number of memberships, renewals, referrals, positive feedback via surveys (online, Comcate, in-person), social media hits. 2015/16 Outcome Implement marketing plan and gather data on memberships, member satisfaction. Status Membership drive starts November 1. 44 ATTACHMENT C LAW ENFORCEMENT – KEY PERFORMANCE MEASURES BY DIVISION: LAW ENFORCEMENT GOAL Maintain adequate Sheriff response times to citizen calls. FY 14-15 Adopted 1st Quarter 5.00 minutes per contract N/A Exceeding expectation Strategy Monitor average response time for emergency calls. Measure Priority one: Respond within 5 minutes. Priority two: Respond within 9 minutes. Priority three: Respond within 20 minutes. Metric Logged in Public safety report 2015/16 Outcome Priority one: Response 4.90 minutes. Priority two: Response 6.56 minutes. Priority three: Response 10.52 minutes. Status Priority one: July - 2.99/Aug – 3.52/Sept – 3.86 Priority two: July - 6.80/Aug – 6.10/Sept – 7.06 Priority three: July – 11.10/Aug- 11.35/Sept – 11.02 GOAL Provide crime prevention efforts through public interaction and education. FY 14-15 Adopted 1st Quarter 3 N/A Started Fall Academy Strategy Conduct Teen Academy classes. Measure Number of Teen Academy classes held. Metric 45 ATTACHMENT C 2015/16 Outcome 2 Status The Fall Teen Academy runs from 9/29-12/17/15. There will be 12 sessions with 22 students participating. FY 14-15 Adopted 1st Quarter 19 N/A On track Strategy Conduct Code Red training and drills. Measure Number of training/drills held. Metric 2015/16 Outcome 20 Status 21 Schools are currently scheduled for the Run, Hide, Defend trainings and lock down drills. FY 14-15 Adopted 1st Quarter 1 N/A Program not offered for FY 15/16 Strategy Conduct "Every 15 Minutes" program. Measure Number of presentations held. Metric 2015/16 Outcome 1 Status “Every 15 minutes” is currently going through funding and personnel changes with the sponsoring agencies. As a result, no high schools have scheduled this exercise for FY 15/16. 46 ATTACHMENT C FY 14-15 Adopted 1st Quarter 9 N/A One meeting to date Strategy Conduct school attendance review board meetings. Measure Number of meetings held. Metric 2015/16 Outcome 12 Status One meeting conducted through September which conform to school year. 47 ATTACHMENT D ADMINISTRATION – KEY PERFORMANCE MEASURES BY DIVISION SUSTAINABILITY GOAL Establish indicators for sustainability that will enable short and long-term Climate Action monitoring reporting and continuous improvement. FY 14-15 Adopted 1st Quarter Each of Sustainability Division's programs has an effective data collection and management tool. Reporting on program metrics is simplified by having templates and data collection system in place. Each City department considers sustainability-related metrics for their projects. Hired staff to lead environmental and utilities tool development and staff engagement. Strategy Lead data gathering, assessment and reporting of metrics of sustainability measures for the purpose of driving accountability and improvements across municipal operations and the community at large. Measure Reporting templates, open data platform. Metric Number of programs out of total for which an effective data collection and management tools has been found and is in use across all departments/divisions. 2015/16 Outcome Data for each program is efficiently collected and easily analyzed; results of programs are efficiently reported out to Council and community, and synched to open data platform. Status Hired a Sustainability Coordinator to lead all Climate Action Plan (CAP) implementation, associated data gathering and greenhouse gas emissions inventories. Coordinator developing a work plan to envision the most cost and environmentally effective implementation plan and tools to collect relevant staff-level information. Hired Efficiency Coordinator to lead utilities management efforts citywide. Efforts to streamline utilities data 1 ATTACHMENT D entry and analysis underway, alongside ground-truthing meters and associated costs working both in the field and within new asset management tools. GOAL Demonstrate technologies and municipal practices that promote sustainability both in the City’s own operations and in those of its suppliers. FY 14-15 Adopted 1st Quarter Develop employee survey to assess needs and define use cases. Design and pilot procurement tool. Refine based upon feedback. Finalized update to 2008 green purchasing policy to drive this action inside and outside the organization. Hosting departmental trainings. Strategy Develop planning tools to enable comparative analysis of procurement decisions and to support long-term economic, environmental, and socially responsible decision-making. Measure Employee survey. Planning tools and user guide. Metric Number of employees using or inputting into the tool. Number of employees accessing the user guide. 2015/16 Outcome Survey administered to employees and baseline results calculated. Pilot users become power users and champions to other purchasing staff. Status Finalized updated Green Purchasing Policy and developed a User Guide and 1-page Cheat Sheet to support staff policy implementation. Leading customized trainings of all departments to ensure effective use of these resources during all procurement decision-making. 2 ATTACHMENT D GOAL Build Cupertino as sustainability leader among comparable cities through innovative, cost-effective, resource-saving initiatives and partnerships. FY 14-15 Adopted 1st Quarter EPP and Demonstration internal policies finalized. Tracking tool and database developed and relevant staff trained on its use. Researching certification programs (e.g. STAR Communities) and awards (e.g. Beacon Award) to benchmark and/or recognize city sustainability leadership efforts and identify new environmental actions. Strategy Continue and expand collaborative procurement, grant, technical assistance and fellowships efforts to grow programs and enable advanced technology acquisition Measure Updated Green Purchasing Policy, new Technology Demonstration Policy, tracking tools. Metric Policies and tracking tools developed. 2015/16 Outcome City staff has an approved IT-endorsed green purchasing policy and PW-endorsed technology demonstration policy with which to make decisions. Grant, award, technical/fellowship assistance database and tracking tool in place and utilize across relevant departments. Status Developing an awards/certification program database with timelines to ensure acknowledgement of leading City sustainability efforts. Finalized green purchasing policy and researching existing technology demonstration policies as a next step. 3 ATTACHMENT D GOAL Lead outreach to ensure that all community members acquire the knowledge, skills, and tools to meet current and future sustainability challenges. FY 14-15 Adopted 1st Quarter Development and roll out of resident and business surveys. Polling is forthcoming as part of the community survey and updated Cupertino green website. Strategy Elevate awareness of and participation in existing and pilot sustainability initiatives among residents and businesses, to advance ecological citizenship models. Measure Number of new surveying tools that produce meaningful or actionable results; program participation, satisfaction, retention. Metric How many people take the surveys; number/percent of people aware of each program/service/survey question. Number of program participants from baseline, over time. 2015/16 Outcome Have baseline idea of how knowledgeable residents and businesses are of programs, services, technologies. Produce list of discrepancies between services offered and results of community interest surveys. Initiate outreach campaign development. Status Researching other agency models for this type of exercise that are the most cost effective and achieve the highest response rate. CITY CLERK GOAL Streamline information processing for Council, staff, and public. FY 14-15 Adopted 1st Quarter 50% of employees sign acknowledgement and answer questions Records Retention policy and 4 ATTACHMENT D successfully. procedures packet to be included in the new employee hiring package given out by HR and this PM will not be included in the next budget cycle for the City Clerk’s division. Strategy All employees receive Records Retention policy and procedures. Measure Clerk's office receives signed acknowledgement that employee received and reviewed policy and procedures. Also, employee will answer two questions about the policy and/or procedures. Metric Percentage of employees who sign acknowledgement and answer questions successfully. 2015/16 Outcome Success enabled by having simple, clear instructions and/or policies for records retention, formatting staff reports and attachments, and drafting agenda items in Legistar; training individuals on these instructions/policies; support from City Manager and Department Heads to respect packet deadlines. Status Worked with Administrative Services and agreed that the Records Retention policy and procedures packet will be included in the new employee hiring package given out by HR. For current employees one time only in this budget cycle, the City Clerk’s office will email the Records Retention policy and procedures packet to the Department Admins to forward to each employee in the department. This Performance Measure will not be included in the next budget cycle for the City Clerk’s division. FY 14-15 Adopted 1st Quarter 75% of users sign acknowledgment City Clerk’s office will 5 ATTACHMENT D contact Department Admins and Commission staff liaisons to identify all employees who draft Council agenda items and/or create commission agendas. Strategy Identify employees who draft Council agenda items and/or create commission agendas and train them on Granicus Legistar/Insite. Measure Clerk's office receives signed acknowledgement from employee and trainer that instructions were received and employee was trained. Metric Percentage of users who sign acknowledgement. 2015/16 Outcome All users trained and sufficient proficient in program. Status City Clerk’s office will contact Department Admins and Commission staff liaisons to identify all employees who draft Council agenda items and/or create commission agendas. Each of those individuals will receive written instructions and either be trained personally by the Department Admin or the City Clerk or Deputy City Clerk. Once trained, the individual and trainer will sign an acknowledgment form. FY 14-15 Adopted 1st Quarter 50% of the time, each Dept. Head and City Manager will have Council agenda items approved and Clerk's office will have packet prepared by specified Departments are already aware of the agenda deadlines and PM will not be 6 ATTACHMENT D deadline. included in the next budget cycle for the City Clerk’s division. Strategy Final approval of Council agenda items by 4:00 p.m. on packet day. Clerk's office will post packet and send information to Council members no later than 6:30 p.m. on packet day. Measure Clerk's office will track when each department's Council agenda items were approved by the Dept. Head and City Manager. Metric Percentage of time each department's Council agenda items are approved and packet ready by specified deadline. 2015/16 Outcome All departments aware of and adhere to deadlines. Packets processed no later than 5pm on packet day. Status This Performance Measure strategy and outcome relies on the performance of other departments getting their agenda items in the system in a timely manner for the City Manager’s approval. Departments are already aware of the deadlines and the City Clerk’s office can only begin processing the packet once all agenda items are in the system and approved. This PM will not be included in the next budget cycle for the City Clerk’s division. FY 14-15 Adopted 1st Quarter NEW: 100% of Public Record Act requests responded to by the deadline date. 100% of Public Record Act requests responded to by the deadline date. Strategy Public Record Act requests responded to in a timely manner. Measure Public Record Act requests log “due date” column (including any “extension”) and “date fulfilled” column match. Metric Percentage of Public Record Act requests responded to by the deadline date. 7 ATTACHMENT D 2015/16 Outcome 100% of Public Record Act requests responded to by the deadline date. Status 36 Public Record Act requests have been logged for first quarter FY 2015-16 and 36 have been responded to by the deadline date. FY 14-15 Adopted 1st Quarter NEW: 80% of City Council minutes for regular meetings presented for Council approval by the following regular meeting. 71% of minutes for regular Council meetings submitted for approval at the next regular Council meeting. Strategy City Council minutes prepared and presented for City Council approval in a timely manner. Measure Clerk’s office will track the date of each regular Council meeting and when the draft minutes were presented for approval. Metric Percentage of regular Council meeting minutes approved by the next regular Council meeting. 2015/16 Outcome 80% of minutes for regular Council meetings submitted for approval at the next regular Council meeting. Status Seven regular Council meetings and one special Council meeting occurred in first quarter including two meetings that went past 11:00 p.m. Five sets of minutes for regular Council meetings were submitted for approval by the next regular meeting. FY 14-15 Adopted 1st Quarter NEW: 90% of adopted City Council resolutions and ordinances processed and scanned to Laserfiche within a week of Clerk’s office receipt of final, signed documents. 100% of adopted City Council resolutions and ordinances 8 ATTACHMENT D were processed and scanned to Laserfiche within a week of Clerk’s office receipt of final, signed documents. Strategy Adopted City Council resolutions and ordinances signed and scanned to Laserfiche in a timely manner. Measure Clerk’s office will track time it takes to process adopted resolutions and ordinances after a City Council meeting until the time they are scanned to Laserfiche. Metric Percentage of City Council adopted resolutions and ordinances signed and uploaded to Laserfiche for public viewing within a week of Clerk’s office receipt of final, signed documents. 2015/16 Outcome 100% of adopted City Council resolutions and ordinances were processed and scanned to Laserfiche within a week of Clerk’s office receipt of final, signed documents. Status 34 resolutions and three ordinances were adopted in first quarter and 100% were processed and scanned to Laserfiche within a week of Clerk’s office receipt of final, signed documents. 9 ATTACHMENT D ADMINISTRATIVE SERVICES – KEY PERFORMANCE MEASURES BY DIVISION: FINANCE GOAL Deploy tools to empower and boost the efficiency of our employees. FY 14-15 Adopted 1st Quarter Allow our customers the ability to quickly and securely make payments using their devices. N/A 25% Strategy Launch state-of-art online payment portal (cloud based). Measure Attain banking expansion with Wells Fargo. Track user experience in payment portal through user survey. Metric Positive customer experience surveys. # of payments processed via old system (online/in person ratio). # of payments processed in new system (online/in person ratio). 2015/16 Outcome Payment system implementation complete. Customer payment process simplified. Status Initial Meeting with Wells Fargo completed. On target for fiscal year end implementation. FY 14-15 Adopted 1st Quarter Employee dashboard to complete time cards, review leave balances, and initiate personal and benefit changes. N/A 100% Strategy Launch Full-Service Employee portal. Measure New World Systems, time card entry purchased, implementation in-progress. User survey pre-and-post implementation to learn time savings, ease of use, change in capabilities. Metric Positive customer experience surveys. # of users, click through rate. HR/Admin services survey pre-and-post implementation to learn # of requests addressed in-person vs. new tool. 10 ATTACHMENT D 2015/16 Outcome New World Systems implementation complete. Employees trained and utilizing tool. Status Completed, All City users are trained on the portal. Training manual is available on the intranet and training videos are expected before fiscal year end. FY 14-15 Adopted 1st Quarter Develop a City Telework policy that allows flexibility to work outside City offices in a productive and environmentally- beneficial manner. N/A 50% Strategy Implement Telework policy and associated technology needs to enable remote working options for City employees. Measure Develop draft policy for review by Department Heads. Work with IT to determine and source technology needs. Pilot policy. Adjust where needed and deploy globally. Metric # of employees approved to participate. # of hours logged @ home. GHG and fuel savings cataloged. 2015/16 Outcome Build a flexible work arrangement that reduces commutes and associated emissions, benefits the employee, departments and customers by making more efficient use of staff time. Status 50% complete. Launched pilot program with policy in September. If pilot is successful anticipate full roll out by fiscal year end. FY 14-15 Adopted 1st Quarter Consistent hardware and software technology at each workstation for improved efficiencies. Conference rooms equipped consistently with same audio/video technology. N/A 75% Strategy Establish standard departmental workstations and conference room set-up to expand technology access and user experience. 11 ATTACHMENT D Measure Standard established. User experience surveys administered pre- and-post deployment. Metric # of workstations upgraded. # of conference rooms upgraded. Positive user experience recorded and improvement recommendations prioritized. 2015/16 Outcome Employee productivity improved. Technology staff time reduced for workstation and conference room trouble-shooting. Status 75% Complete. All workstations in Administrative Services are utilizing the Virtual Desktop Integrator (VDI). Staff continues to test the speed of the system. VDI console also install in conference room. HUMAN RESOURCES GOAL Diversify employee training opportunities across all work classifications. FY 14-15 Adopted 1st Quarter Explore internal opportunities for mentorship (mentee- driven). N/A +-10% Strategy Offer web or computer- based supervisory trainings; intra- departmental mentorships and cross-trainings; explore personal and professional growth opportunities. Measure Send out surveys to learn employee training needs. Compile training rosters and offer evaluation forms to provide feedback. Metric Training needs survey received from all employees. Attendee satisfaction. Training roster attendance. 2015/16 Outcome Create training catalog/schedule Status In progress, anticipate training survey in early 2016. 12 ATTACHMENT D COMMUNITY DEVELOPMENT – KEY PERFORMANCE MEASURES BY DIVISION ADMINISTRATION GOAL Improve customer service experience and relationships. FY 14-15 Adopted 1st Quarter Enhance website functions and usability/searchability. Enhance access to online documents. In progress Strategy Provide the public and customers with the ability and tools to answer questions online resources. Measure Updated website with survey prompts. Track Comcate tickets/utilize services through alternative Customer Relationship Management (CRM) Software if/when piloted. Metric Track number of website views, hits, and/or downloads. Survey responses. 2015/16 Outcome Customers are empowered to get the information and tools they are seeking easily to increase transparency and efficiency. Status Building website reorganized for better usability. Planning website reorganization in progress. City-wide website re-design in progress, but not complete. FY 14-15 Adopted 1st Quarter Develop curriculum and presentations to achieve specific and targeted learning outcomes. Once administered, convert workshop content into online sessions to heighten information sharing and access. Create tools to enable text survey/polling. In progress Peak Democracy’s Open Town Hall utilized 13 ATTACHMENT D Strategy Increase community outreach and education to foster greater awareness and build community knowledge of the planning and development process by organizing, hosting, and recording local training or informational workshops and presenting to relevant stakeholder groups. Measure Updated website with survey prompts. (Paper, Text, Online) Surveys provided to workshop attendees to gauge knowledge before and after session as well as satisfaction to information delivery. Metric Customer Relationship Management (CRM) Software (if/when piloted by department) or community outreach tracking tool (excel) denoting # of workshops hosted, # of attendees, # of survey responses (text or CRM) on the quality/usefulness of materials presented. Number of page views/downloads of online community workshop videos. 2015/16 Outcome Online public education and public information (articles, tips, fact sheets) generate greater customer support and education and serve as a more efficient and effective community outreach. Increased connectivity between the public and department builds community engagement and trust, thereby enabling expanded community input from broader participants. Model effective private-sector customer engagement and interactions where applicable. Status Conducted Economic Development Strategic Business Plan Roundtable community meeting Vallco, The Oaks, and The Hamptons developers sponsored several community outreach meetings to provide information and gather public comments. Utilized Peak Democracy’s Open Town Hall as an online forum to engage the public for the General Plan Amendment. GOAL Build, Support, Sustain Workforce Performance Excellence. FY 14-15 Adopted 1st Quarter Strengthen employee development opportunities to encourage professional growth and improvements and Ongoing 14 ATTACHMENT D stronger understanding of processes within and among Department. Strategy Improve teamwork and employee satisfaction to foster stronger customer service experience. Measure Expand professional development opportunities to include training and career enrichment courses/seminars, cross training with other departments, special topics or learning from guest speakers /educators. Metric Track/schedule numbers of special sessions and topics each year. Employee survey responses. 2015/16 Outcome Professional development efforts build a cadre of better trained and efficient staff and improve the quality of public service. Status Planning Division staff attended annual California American Planning Association conference for continuing education and professional development. Building Division provided four Title 24 training sessions at Staff meetings. Building Division staff attended annual Calbo conference for continuing education and professional development. FY 14-15 Adopted 1st Quarter Host department retreats/ work sessions (1/year), alt. dept. job shadowing, mentorship program with experts in the field. Improve Economic Dev. interface via quarterly updates. Ongoing In progress Strategy Build inter/intra dept. relations to expand City staff support network required to enable successful operations/planning processes. Measure Quarterly/annual employee reviews, prioritize professional development discussions with supervisors. Staff/supervisors collaborate to develop professional development plans. Metric Track work sessions and retreats in professional development matrix/plan. Progress in achieving objectives and actions outlined in professional development plans. 2015/16 Outcome Grow relationships within divisions and across departments to take advantage of opportunities to learn, improve team partnership and 15 ATTACHMENT D grow greater work satisfaction, build a better trained and well- rounded staff, and improve quality of public service and customer satisfaction. Status Conducted annual employee reviews as they are due. Planning Division retreat on September 17, 2015 provided team building exercises and addressed challenges and solutions. Economic Development Manager provides quarterly updates at Planning Division Staff meetings. PLANNING GOAL Demystify the planning process. FY 14-15 Adopted 1st Quarter Enable customer to access status of plan/development review through new online permitting system. In progress Strategy Empower customers to get useful information and helpful tools easily online. Measure Updated website with survey prompts, Comcate tickets or alt. Customer Relationship Management (CRM) Software if/when piloted. Implement online permitting system to provide customer access to information. Metric Track # of website views, hits, and/or downloads. Customer satisfaction and user experience via survey responses. Track project development timelines prior to and after system implementation. 2015/16 Outcome Department increases transparency and efficiency through heightened public access and improves accountability and overall customer experience. Status Planning Division website reorganization in progress. FY 14-15 Adopted 1st Quarter Team w/ dpts. to increase community outreach through new In progress 16 ATTACHMENT D technologies. Build youth engagement by connecting regularly with Teen Commission, De Anza College, and High Schools student groups Strategy Tap quiet majority of community members not currently participating in the planning, development, ordinance, or public hearing process. Measure Deploy new community engagement and/or Customer Relationship Management (CRM) tools. Expanded social media and pro-active vs. reactive planning-led outreach efforts. Metric Track website views, hits, and/or downloads. Customer satisfaction and user experience survey responses. 2015/16 Outcome Garner greater customer support and education to build and operationalize efficient and effective community outreach, strengthen community engagement and relations, and gain access to broader and more diverse community input. Status Utilized Peak Democracy’s Open Town Hall as an online forum to engage the public. Engaged the Teen Commissioners to provide ideas and comments for the General Plan Amendment. GOAL Expand outreach to the business community to surface and address business needs through available and future City services. FY 14-15 Adopted 1st Quarter Engagement strategy drafted and includes,: visiting companies, retail businesses, meeting with Chamber leadership, participating in local/regional business organizations, attending networking events, meeting with real estate brokers and property In progress 17 ATTACHMENT D managers. Strategy Develop business engagement strategy, targets, timeline, milestones and tracking tool. Evaluate lessons learned to integrate into future performance measures and work program. Measure Feedback tool developed to learn experiences of businesses to date and assess future informational and service needs. Tracking tool developed to record # of site visits, meetings, functions, etc. Metric Quantity of meetings. Business experience survey results. 2015/16 Outcome Increase business relations with the City, evaluate existing business services, define new business support resources, and generate new business to business partnerships. Status Assistant City Manager, Economic Development Manager and Senior Housing Planner regularly attend the Legislative Action Committee, Chamber of Commerce meetings, Rotary meetings, Santa Clara County Association of Planning Official meetings. Economic Development Manager hosted Women’s Networking Workshop. GOAL Improve City economy, vitality, sustainability, and economic diversity. FY 14-15 Adopted 1st Quarter Develop curriculum and presentations to achieve specific and targeted learning outcomes. Once administered, convert workshop content into online sessions to heighten information sharing and access. Create tools to enable text survey/polling. In development Strategy Running in parallel to and informed by the in-progress Economic Development Strategic Plan, create a customized suite of support resources for businesses, emphasizing small businesses. 18 ATTACHMENT D Measure Host, sponsor and co-sponsor workshops and training events. Provide online. Surveys provided to workshop attendees to gauge knowledge before and after session as well as satisfaction to information delivery. Metric Community outreach tracking tool (excel) denoting # of workshops hosted, # of attendees, # of survey responses (text or CRM) on the quality/usefulness of materials presented. Number of page views/downloads of online community workshop videos. 2015/16 Outcome Amplify suite of services offered to small local businesses to better enable their ongoing success and ensure their long-term viability in our community. Status In development GOAL Improve outreach and information sharing targeting internal staff and the public to create greater connectivity with our business base. FY 14-15 Adopted 1st Quarter Map current connection points between staff, electeds, the broader public, and our local businesses including, but not limited to: BizBuzz electronic newsletter, "How to Start a Business in Cupertino" Guide, Items of Interest, Council Work Program, Scene Articles, website. Ongoing Strategy Increase internal and external outreach channels and resources to increase community knowledge of and orientation towards local business services, activities, products. Measure Inventory current informational materials and resources. Learn "user" experience through surveys, page views, downloads, inquiries logged through Comcate or other Customer Relationship Management (CRM) tool. Consider tools to track how this information is generating "leads" or driving customers to local businesses. 19 ATTACHMENT D Metric Quantity of page views, downloads, positive survey, customer experiences, information to customer conversions. 2015/16 Outcome Identify informational gaps and embed plan to address in Strategic Plan. Develop tool to track how City resources lead to greater local business support/sales. Status Updates and information published regularly in BizBuzz, Items of Interest, Cupertino Scene and on the website. 20 ATTACHMENT D PUBLIC AFFAIRS – KEY PERFORMANCE MEASURES BY DIVISION ADMINISTRATION GOAL Provide superior customer service both in-house and public-facing. FY 14-15 Adopted 1st Quarter Customer satisfaction survey ratings of good to excellent. N/A Annual Strategy Develop customer service best practice guide and host training to institutionalize practices. Measure Customer satisfaction index based upon user satisfaction and number of cases reported. Metric Use Access Cupertino and user surveys to assess community satisfaction. 2015/16 Outcome Satisfied customers as indicated by high internal and end-user ratings. Ratings included in employee performance evaluations. Status Survey conducted annually. FY 14-15 Adopted 1st Quarter Increase rate of online utilization by 10% over previous year. Number of users accessing City information through each channel. N/A 2,104 Jul 2,270 Oct 7.8% Increase Strategy Strive for innovation in customer service approaches. Build in- house experts to serve diverse customer needs. Measure Be an adaptive organization and act as facilitators, enablers, and experts on technology and communications to provide customers and end-users relevant access to City information. Metric Utilize monthly social media and web usage statistics to determine access to City information. Utilize intranet statistics and Google Analytics. 2015/16 Outcome Deploy widely used and growing variety of differentiated online services. 21 ATTACHMENT D Status INFORMATION TECHNOLOGY GOAL Build an IT strategic plan to serve as a management tool, guide decision making, and prioritize staffing. FY 14-15 Adopted 1st Quarter Actionable plan developed, all staff engaged in its implementation, resources adequately aligned to achieve plan goals. N/A Initial document complete Strategy Hire third-party consultant to survey staff needs, assess technology gaps and develop an implementation plan. Measure Plan developed. Technology projects listed. Tracking tool implemented. Metric Number of completed technology projects. Inventory and status of technology services. 2015/16 Outcome Formally adopt IT strategic plan. Status Consultant provided document. First staff governance meeting held. COMMUNICATIONS GOAL Develop a Communications strategic plan to guide organizational outreach priorities and associated staffing. FY 14-15 Adopted 1st Quarter Actionable plan developed, all staff engaged in roll-out, resources adequately aligned to achieve plan goals. N/A Communication assessment complete 22 ATTACHMENT D Strategy Explore consultant options to survey community and staff needs, assess media gaps, implementation plan to address those needs and gaps. Measure Plan developed. Needs and gaps identified. Communications projects listed. Tracking tool implemented. Metric Number of current and prospective communication projects. Inventory of communication services. 2015/16 Outcome Formally adopt strategic plan. Status Consultant submitted final communications assessment. Action plan implementation next phase. 23 ATTACHMENT D PUBLIC WORKS – KEY PERFORMANCE MEASURES BY DIVISION ENVIRONMENTAL PROGRAMS GOAL Respond to stormwater pollution discharge. Clean creeks in Cupertino. FY 14-15 Adopted 1st Quarter 24 hour 1) One business day response to illegal discharge to creeks 2) Conduct minimum of 14 creek cleanup events annually 3) Receive no negative actions from enforcement agencies 100% 100% New measure New measure 100% 4/14 complete None received Strategy Prevent to the maximum extent practicable items other than rain water from entering the storm water system. Measure 1) Respond to reported discharge event within 24 one business hours. day. 2) Annual cleanups 3) Quantify actions from enforcement agencies. Metric 1) Comcate logged response time or time after call or email is received. 2) Quantification of the number of Annual Clean Up Events 3) Quantification of negative actions received from enforcement agencies. 2015/16 Outcome Achieve stormwater compliance requirements, ensure healthy protected water system. Status Ongoing with additional efforts to increase community involvement. 24 ATTACHMENT D GOAL Provide efficient and effective recycling, organic and disposal services. FY 14-15 Adopted 1st Quarter 1) Develop organics ordinance. Define data needs and assess tracking tools available (i.e. EPA ReTRAC). 2) Implement organic diversion requirements to affected businesses Complete Completed for Businesses generating > 8cy of organic waste - Sept. 2015 Strategy Divert materials from landfill through expanded recycling and composting organic policies and services, paired with effective outreach campaigns to increase residential and commercial participation. Measure Supporting policies developed. Services evaluated and expanded. Develop customer feedback mechanism and diversion tracking tool. Monthly diversion reporting from solid waste franchisee and annual CalRecyle diversion rate equivalent (DRE) calculation. Metric Achieve 75% (DRE) diversion, 60% commercial & multifamily diversion. Customer service satisfaction (Godbe Survey). 2015/16 Outcome Adopt organics ordinance and utilize data collection to track progress. Status Ongoing 25 ATTACHMENT D DEVELOPMENT SERVICES GOAL Provide timely development review and permitting services. FY 14-15 Adopted 1st Quarter 2 week response 90% of time Strategy Review and permit private development in a timely and consistent manner in accordance with applicable codes, standards and policies. Measure Respond to complete plan submittals or applications within 2 weeks Metric Comcate logged Track response time. Community times using Development feedback. Customer feedback through new online permitting system.Tracking System (not yet implemented) 2015/16 Outcome Strengthened partnership with Community Development. Clear roles and timelines defined. Customer experience improved. Status CIP ADMINISTRATION GOAL Deliver Capital Projects on time and within budget. FY 14-15 Adopted 1st Quarter On time and within budget 80% of time. Strategy Meet published commitments to Council and community in an effective, timely, and quality manner. Measure Project and/or budget management software or alternative tracking tool to enable better accountability of costs, expenses and revenues related to a project. Metric Timeline and budget variances for each project and tracked for program over time. 26 ATTACHMENT D 2015/16 Outcome Deliver project within budget and achieve beneficial occupancy within one month of projected completion date at time of award. Status Measurements methods under development. STREETS GOAL Timely maintenance of Safe street markings and, legends while minimizing impacts to traffic and signs for motorist, cyclists, and pedestrians. FY 14-15 Adopted 1st Quarter 24 hour 1) One business day response to reported unsafe conditions. 100% for signs. 4 week resolution 90% Strategy Repair or replace Appropriately placed street markings, legends and signs in a timely manner benefit motorists, cyclists and pedestrians. Measure 1) Respond to regulatory street marking, legend and sign issues within 24 3 business hours. Respond to other signs issues within four weeks. days Metric 1) Comcate logged response time and customer feedback. 2) CityWorks software 2015/16 Outcome Community aesthetic maintained. 2015 paving projects have had scope of work increased to include safe street marking and legend work on both streets scheduled and not scheduled for pavement improvement. Status Ongoing 27 ATTACHMENT D GOAL Timely removal of reported No viewable graffiti within Cupertino. FY 14-15 Adopted 1st Quarter 100% Remove 100% of known graffiti on public property within 4 business days Strategy Graffiti markings re-moved in a timely manner. Remove graffiti before more tagging occurs. Measure Clean up within 48 business hours of call. Metric Comcate logged response time and customer feedback. 2015/16 Outcome Community aesthetic maintained. Status Ongoing GOAL Optimize street safety around schools. Maintain reliable storm drain system. FY 14-15 Adopted 1st Quarter 1) Respond to reported storm drain system deficiencies within one business day 100% 100% Strategy School area street markings painted bi-annually prior to the beginning of the school year. High wear areas painted annually. Efficiently inspected and maintained storm drain system assists in minimizing the potential for localized flooding. Measure Percent of street markings and legends repainted bi-annually. 1) Respond to reported storm drain system deficiencies within 24 business hours. Metric 1) Comcate logged response time and customer feedback. Projects cataloged and outcomes shared with Safe Routes to School Task 28 ATTACHMENT D Force. 2015/16 Outcome Improve bicycle and pedestrian safety near schools and throughout neighborhoods to encourage communitywide adoption of active transportation over single occupancy vehicles. Ongoing Status Collection system cleaning / videoing of hot spot areas scheduled for November ’15 completion. GOAL Provide timely and effective Effectively maintain streetlight maintenance program network. FY 14-15 Adopted 1st Quarter 2 Day response 1) Respond to reported streetlight outages within 2 business days 2) Resolve issues with City owned streetlights within 5 business days. 100% 5 Day resolution 95% 100% 100% Strategy Repair streetlights in a timely manner. Measure Respond to customer calls within two business days and resolve issue within five business days. 1) Comcate logged response time and customer feedback 2) CityWorks software Metric 1) Comcate logged response time and customer feedback. 2015/16 Outcome Community safety improved through energy efficient illumination. Reliable streetlight network that promotes community safety. Status Ongoing 29 ATTACHMENT D GOAL Timely response to asphalt concerns. Citywide street network pavement condition index (PCI) of 80 by 2019; no street below 30 for two consecutive years. FY 14-15 Adopted 1st Quarter 24 hour response 100% 6 month resolution 90% Strategy Maintain streets to a standard that minimizes liability and is effective in utilizing available funds. Measure Define standard. Investigate and respond to safety issues within 24 business hours. Provide permanent repairs within six months. Metric Comcate logged response time and customer feedback. Street maintenance plan and standard achieved. 2015/16 Outcome Create safe roadways to ensure continuous traffic flow to support citizens' quality of life. Status FY 14-15 Adopted 1st Quarter 1) Network PCI of 80 by FY19/20. 2) No individual street PCI <30 for two consecutive years. Strategy Well maintained streets conserve resources, promote commerce and promote community safety. Measure 1) Metropolitan Transportation Commission (MTC) StreetSaver reports. Metric 1) Sufficient operating budget recommended and approved. 2) Annual pavement condition report as calculated by StreetSaver and submitted to the MTC. 2015/16 Outcome Street network PCI is calculated to be 72 and approximately 4 miles of streets will have a PCI <30 at the end of 2016. Status Network PCI is calculated to improve from a current value of 70 to 72. Continued improvement is conditional to future budget appropriation. 30 ATTACHMENT D GOAL Timely response to concrete concerns. Safe pedestrian pathways FY 14-15 Adopted 1st Quarter 24 hour response 1) Respond and mitigate reported pathway deficiencies within 1 business day. 100% 6 month resolution 90% 100% Strategy Maintain sidewalks, curb and gutter to a standard that minimizes liability. Measure Define standard. 1) Respond to safety issues and mitigate pathway deficiencies within 241 business hours. Provide permanent repairs within 6 months.day. Metric 1) Comcate logged response time and customer feedback. 2015/16 Outcome Create safer sidewalks, curb, and gutters to Safer pedestrian pathways mitigate potential issues and support citizen's quality of life. Status Ongoing 31 ATTACHMENT D TREES AND RIGHT-OF-WAY GOAL Timely response to tree concerns. Healthy and expanding urban forest. FY 14-15 Adopted 1st Quarter 1) Respond to reported safety issues with 1 business day 2) Inspect and maintain all street trees and park trees within 5 year cycle. 3) Plant more trees than removed. 100% New Measure 100% New Measure FY 14-15 Adopted 1st Quarter 24 hour response 100% 4 week resolution 90% Strategy Maintain urban forest to ISA standards that minimize liability, improve and/or maintain tree values. Measure 1) Respond to and mitigate safety issues within 24 business hours. Provide follow-up trimming 2) Inspect and maintain all street trees and park trees within four weeks.5 year cycle. 3) Number of trees planted compared to number of trees removed. Metric 1) Comcate logged response time and customer feedback. Track program performance relative to ISA standards 2) CityWorks software. 2015/16 Outcome ISA standards achieved. Urban canopy expanded, protected, serviced. Safety issues mitigated. Status FY15/16 is the last year of a 4 year program to plant 1600 trees citywide. 32 ATTACHMENT D RECREATION AND COMMUNITY SERVICES – KEY PERFORMANCE MEASURES BY DIVISION: ADMINISTRATION GOAL Develop a healthy, positive and connected team. FY 14-15 Adopted 1st Quarter 100% of priorities complete by June 30, 2016. N/A On Track Strategy Identify Department priorities for FY 15/16 and form sub- committees to work on each goal. Measure Priorities list developed, readily accessed and tracked by each implementing program. Metric Percentage of priorities completed by December 2015 and June 2016. 2015/16 Outcome Improved technology, marketing and customer service levels. Status Perfect Mind contract approved in negotiations. Estimated completion 09/2016. New Business & Community Services Division rollout in January 2016 addresses the above. FY 14-15 Adopted 1st Quarter Benchmark current inner departmental communications tools and develop a priority list of expansion opportunities. Deploy tools to improve RCS staff knowledge of ongoing and prior successes. N/A On Track Strategy Establish a department newsletter denoting quarterly accomplishments and items of interest. 33 ATTACHMENT D Measure Survey staff at departmental meetings to evaluate experience and gauge awareness of colleague's projects. Metric Increase awareness of City and department issues and projects by 10%. 2015/16 Outcome Enhanced communication of department projects and accomplishments. Status Monthly department meetings have been implemented as well as a quarterly newsletter. Utilizing items of interest to increase awareness of department projects and accomplishments. Monthly meetings implemented with senior management and Public Works. FY 14-15 Adopted 1st Quarter Increased participation in cross-division events by 25%. N/A On Track Strategy Establish monthly department wide meetings to team build, communicate subcommittee milestones and organization issues/successes. Measure Meetings convened, hosted, tracked. Information shared with all departmental members. Metric Percentage of participation at meetings and department events. 2015/16 Outcome Strong cohesive team developed to expand partnerships and elevate customer services and experience. Status Monthly Department meetings implemented achieving 90% participation. Sub-committees established for technology, customer service and marketing. FY 14-15 Adopted 1st Quarter 100% participation in annual training for all full-time staff. Annual enhancement of customer service modules for all part-time staff during in-service training. N/A On Track 34 ATTACHMENT D Strategy Place high priority on training and encourage expanded professional development opportunities for staff. Measure Percentage of participation in annual training courses, passing-on new ideas, program concepts and service delivery tips via internal communications cataloging /project management tool. Track customer service experience before/following implementation via online, in-class surveys, Comcate. Metric Quantity of courses offered, participant attendance. Tool to foster greater team dialog and brainstorming explored. Positive customer experiences recorded. 2015/16 Outcome Customer service experience improved. Customer service modules available online and shared with all departments to ensure consistency. Status All staff required to attend skill enhancement training. On track for 100% compliance. Staff “reports out” to full department what they learned at monthly meetings. Annual department workshop off- site scheduled 2/23-2/24/16. GOAL Increase use of technology to facilitate efficiency, expand marketing and bolster customer experience. FY 14-15 Adopted 1st Quarter Registration available at any facility 100% of the time. Participant feedback readily available. N/A Pending Perfect Mind Software Installation Strategy Implement a new registration system department-wide. Measure Development of methods to register and obtain customer feedback electronically using internet and smart devices. Metric Quantity and quality of customer feedback received prior to and following system deployment 2015/16 Outcome Improved employee efficiency and productivity. Customer experience improved and access to information enabled. Status Contract approved by City Council and in negotiations. 35 ATTACHMENT D FY 14-15 Adopted 1st Quarter 10% increase in social media outreach. N/A On Track Strategy Effective use of social media marketing for classes and events. Measure Development of methods to notify customers via social media. Metric List of methods currently used. List of new approaches. Project management schedule and timeline to implement methods. 2015/16 Outcome Strengthen partnership with Communications Department to develop an outreach plan for RCS that defines effective messaging, civic media assets, roles, timelines, and responsibilities. Status -Marketing seminar attended in September 2015 -Target marketing media identified -Pilot program anticipated for Big Bunny 5K/Fun Run -Implementation of Perfect Mind will enhance capabilities as well as establishment of Business division in January 2016. FY 14-15 Adopted 1st Quarter Scala screen Installation at four facilities with weekly program information. N/A On Track Strategy Install Scala monitors in each facility with program specific content for the facility and then the department. Measure Development of marketing information for each site and department wide. Metric Inventory of information to share. Timeline to implement system. 2015/16 Outcome Expanded customer access to information on programs and services on a facility-by-facility basis. Status Scala screens now installed at Quinlan, Senior Center and Sports Center. Environmental Educ Center at McClellan is pending. Training with City Channel to be scheduled. 36 ATTACHMENT D PARK PLANNING AND RESTORATION GOAL Pursue new parks and improvements to existing parks, guided by community input. FY 14-15 Adopted 1st Quarter Corridor Master Plan report delivered by January 2016. Incorporate user comments into programming. N/A On Track Strategy Facilitate a Stevens Creek Blvd to McClellan Ranch Road Corridor Master Plan. Measure Solicit community input through a wide number of outreach events including public meetings, web site outreach, surveys and stakeholder interviews. Metric Online survey participation, post card mailing, social media/civic engagement tool tracking. 2015/16 Outcome Provide a 20 Year master plan for the BBF Golf Course, BBF Swim & Picnic facility, Stevens Creek Trail and McClellan Ranch Preserve (Environmental Education Center/Blacksmith Shop/Barn, etc.) Consultant, M.I.G., is in process of completing report. Golf Course component complete by National Golf Foundation (NGF). Status Report is scheduled for Parks & Recreation Commission in December 2015 and City Council in January 2016. FY 14-15 Adopted 1st Quarter City wide Park Master Plan report delivered by September 2016. Incorporate user comments into programming. N/A On Track Strategy Facilitate a City Wide Park and Recreation Master Plan. Measure Solicit community input through a wide number of outreach events including public meetings, web site outreach, surveys and stakeholder interviews. 37 ATTACHMENT D Metric Online survey participation, post card mailing, social media/civic engagement tool tracking. 2015/16 Outcome Provide a 20 year Park Open Space and Recreation Master Plan to improve customer service experience. Status Contract awarded to RHAA. Work began October 2015. FY 14-15 Adopted 1st Quarter Lawrence Mitty - Complete appraisals & soils testing; negotiate property acquisition; annex property, apply for grant funding by 12/2016. Main Street - Review and recommend modifications by 5/2015. N/A N/A On Track Complete Strategy Pursue the acquisition of parks and trails on the east side of Cupertino. Measure Identify and carry out the steps to acquire the County Roads and Airport property known as the Lawrence Mitty Linear parcel; Review the Main Street Park Plan and facilitate Park and Recreation Commission and City Council review and approval. Metric Project management timeline developed, milestones achieved. Budget prepared and achieved. 2015/16 Outcome Expand park assets and associated community benefits citywide. Status Lawrence Mitty – appraisals done. Soil testing scheduled for November 2016. Main Street park design revised and approved by Parks & Recreation Commission and Council. Construction pending. 38 ATTACHMENT D FACILITIES AND COMMUNITY EVENTS GOAL Upgrade the Quinlan Community Center to increase usage and revenue generation from the facility. FY 14-15 Adopted 1st Quarter Reduce energy costs by 10%. Reduce maintenance time by 10%; Enhancements complete by 6/2015. N/A On Track Strategy Complete the Quinlan Community Center Upgrade project: energy efficient lighting, facility upgrades. Measure Replace lighting fixtures. Replace flooring for more efficient maintenance. Paint all public spaces and remodel front office. Metric Pre-and-post site energy use tracked. Project timeline and milestones tracked. 2015/16 Outcome Facility energy use and aesthetics improved. Status Quinlan Community Center remodel complete; pending (a) interior painting and (b) New lighting in Cupertino Room. FY 14-15 Adopted 1st Quarter Increase facility rentals by 5%. N/A On Track Strategy Utilize new marketing materials for promotion of the Center. Measure Prepare new marketing materials: virtual tours, marketing brochures, marketing binders, social media announcements. Metric Online user surveys. Site access/click-throughs. 2015/16 Outcome Additional revenue generated through increased program enrollment. Status New Business Division will be addressing after January 2016. Facility use policy being revised with goals for easier registration process for customers. 39 ATTACHMENT D FY 14-15 Adopted 1st Quarter Increase facility rentals by 5%. N/A On Track Strategy Book multiple rentals per day if possible. Measure Implement scheduling software. Metric Bookings pre-and-post deployment. 2015/16 Outcome Additional revenue generated through increased space programming. Status New Business Division will be address with installation of Perfect Mind reservation system and new facility use policy. GOAL Implement creative solutions at Blackberry Farm to improve the customer service experience while complying with new bus restrictions into the complex. FY 14-15 Adopted 1st Quarter Increase revenue by 10%. N/A Complete Strategy Expand pool and picnic programs for the summer season. Measure Outline current programs and services. Evaluate expansion opportunities based upon resident surveys, assessment of adjacent city municipal services. Metric Survey results. Service gap analysis. Programs proposed. 2015/16 Outcome Expand services and resultant revenues through: pool party packages; catering packages; water aerobic classes, etc. Status 1-Staff will be pursuing expanded programming in conjunction with Foot Golf groups and an “Adult Learn how to Swim” campaign in April 2016. 2-For the 2015 season, revenue increased by 13.4% or $35,514 compared to 2014. This increase was primarily in the areas of swimming and café sales. 40 ATTACHMENT D FY 14-15 Adopted 1st Quarter Maintain status quo re: number of field trips and not loose patrons. N/A Complete Strategy Educate patrons on transportation options and provide acceptable customer service alternatives to bussing children into BBF. Measure Evaluate current site transportation services and alternatives via survey. Meet off-site busses with carts to carry in their coolers and supplies. Metric Service summary developed. Alternatives proposed. Traffic mitigations recommended. Informational materials developed. Survey results recorded. 2015/16 Outcome Mitigate site traffic impacts and create a more pleasant guest experience. Status The efforts listed have been implemented, however, due to the inconvenience of walking small children into the facility and other factors beyond our control, several groups will not be using the facility next year. YOUTH AND TEEN PROGRAMS GOAL Grow a healthy community by evaluating opportunities to expand community participation in programs and facilitate greater access to services, facilities and parks across all demographics. FY 14-15 Adopted 1st Quarter Adjust weekend hours at the Teen Center to provide more opportunities for private events and increase rental revenue by 20%. N/A On Track Strategy Adjust current Teen Center operational hours to increase rental periods. Measure Teen Center rental revenue monitored and managed via facility rental software. Metric Yearly rental revenue reviewed and compared to previous yearly revenue reports. 41 ATTACHMENT D 2015/16 Outcome Rental opportunities and facility options expanded for community and revenue from facility rentals increased. Status FY 14-15 Adopted 1st Quarter Increase number of Teen/Adult Art, S.T.E.M., nature programs by adding at least 2 new contractors to support student demands. Review opportunities and requirements to expand preschool program. N/A On Track Strategy Consult with current contract instructors to explore additional service offerings and expand classes for teens and adults. Acquire feedback from target population on desired programming, including expanded preschool. Measure Registration software reports including returning students; Class satisfaction surveys administered to participants of all new and existing programs, including requests for new or expanded services. Metric Participant and revenue totals measured against figures before new program deployment. Customer feedback would be reviewed through survey results detailing participant satisfaction. 2015/16 Outcome Teen and Adult recreational class selections expanded for community. Revenue for Teen/Adult classes increased. Preschool program has clearly defined expansion pathway. Status Teen S.T.E.M.-youth start-up expanded their offerings. Includes two new computer coding camps and quarterly afterschool web design class. New contractor, Clinton Brownley, will offering youth and teen programs and data analysis programs in Winter. May offer adult programs in future. Nature Classes—New instructor, Charlie Kennard, will be teaching a Twined Tule and basket making class geared for teens and adults (13+) this Winter. Cait Hutnik will be teaching a Lichen class for all ages. Adult Art—Mobile Art Academy added as instructor last Spring; 42 ATTACHMENT D Offering youth camps and quarterly adult classes. Two youth camps were full this summer, while adult classes have been slow to gain momentum. SPORTS AND FITNESS GOAL Offer Sports Center programs targeted at school age groups in order to entice more families to join the Center. FY 14-15 Adopted 1st Quarter 5% increase in family memberships N/A On Track Strategy Expand memberships through expanded services desired by the community. Measure Survey members to identify needs and the broader public to identify service gaps. Evaluate programs to find gaps in programming for these age groups. Metric Survey results. Service gap analysis. Programming proposals. 2015/16 Outcome Age appropriate programming developed to provide family opportunities such as kids’ club and parents’ night out. Status Implemented Kids Club and Parents Night Out. Restriped gym floor for multi-sport programming. GOAL Provide a fun and memorable recreational experience for families at the 2016 Big Bunny 5K. FY 14-15 Adopted 1st Quarter 10% increase in participation N/A On Track Strategy Investigate different online survey options to increase awareness and identify improvements for the event. Measure Develop appropriate program modifications to improve family experience. Survey prior to and following implementation. Metric Survey results. 43 ATTACHMENT D 2015/16 Outcome Big Bunny fun run receives positive press, user-generated social media accolades. Participation grows year after year. Status Coordinated with CEEF 5K and Super Heroes 5K for shared and targeted marketing. Implementing new amenities at events to improve experience. GOAL Introduce foot golf at the BBF golf course. FY 14-15 Adopted 1st Quarter 8% increase in participation. N/A Complete Strategy Target participation at BBF golf course to those who don't currently use the facility (i.e. after school youth league). Measure Develop list of groups currently using site. Develop list of prospective users. Outreach to all. Track site use prior to and following outreach. Track outreach channels. Metric Site use. Outreach metrics - number of messages developed, shared; click-throughs. 2015/16 Outcome Expand partnerships with youth and adult groups (AYSO, Apple, etc.) to market programs. Customer notification of specials, events, shared via social media. Status Foot Golf Kick-off on 7/4/15. Chamber promotion currently underway for October/November 2015. AYSO promotion planned for November/December. SENIOR PROGRAMS GOAL Expand membership and existing member satisfaction. FY 14-15 Adopted 1st Quarter Complete marketing plan and develop surveying and tracking tools. N/A On Track Strategy Using effective outreach strategies, informed by the departmental marketing plan, to grow membership by 2 percent per year. 44 ATTACHMENT D Measure Quantity of memberships and renewals measured; Number of membership referrals. Feedback received on services, programs, Center. Metric Number of memberships, renewals, referrals, positive feedback via surveys (online, Comcate, in-person), social media hits. 2015/16 Outcome Implement marketing plan and gather data on memberships, member satisfaction. Status Membership drive starts November 1. 45 ATTACHMENT D LAW ENFORCEMENT – KEY PERFORMANCE MEASURES BY DIVISION: LAW ENFORCEMENT GOAL Maintain adequate Sheriff response times to citizen calls. FY 14-15 Adopted 1st Quarter 5.00 minutes per contract N/A Exceeding expectation Strategy Monitor average response time for emergency calls. Measure Priority one: Respond within 5 minutes. Priority two: Respond within 9 minutes. Priority three: Respond within 20 minutes. Metric Logged in Public safety report 2015/16 Outcome Priority one: Response 4.90 minutes. Priority two: Response 6.56 minutes. Priority three: Response 10.52 minutes. Status Priority one: July - 2.99/Aug – 3.52/Sept – 3.86 Priority two: July - 6.80/Aug – 6.10/Sept – 7.06 Priority three: July – 11.10/Aug- 11.35/Sept – 11.02 GOAL Provide crime prevention efforts through public interaction and education. FY 14-15 Adopted 1st Quarter 3 N/A Started Fall Academy Strategy Conduct Teen Academy classes. Measure Number of Teen Academy classes held. Metric 46 ATTACHMENT D 2015/16 Outcome 2 Status The Fall Teen Academy runs from 9/29-12/17/15. There will be 12 sessions with 22 students participating. FY 14-15 Adopted 1st Quarter 19 N/A On track Strategy Conduct Code Red training and drills. Measure Number of training/drills held. Metric 2015/16 Outcome 20 Status 21 Schools are currently scheduled for the Run, Hide, Defend trainings and lock down drills. FY 14-15 Adopted 1st Quarter 1 N/A Program not offered for FY 15/16 Strategy Conduct "Every 15 Minutes" program. Measure Number of presentations held. Metric 2015/16 Outcome 1 Status “Every 15 minutes” is currently going through funding and personnel changes with the sponsoring agencies. As a result, no high schools have scheduled this exercise for FY 15/16. 47 ATTACHMENT D FY 14-15 Adopted 1st Quarter 9 N/A One meeting to date Strategy Conduct school attendance review board meetings. Measure Number of meetings held. Metric 2015/16 Outcome 12 Status One meeting conducted through September which conform to school year. 48 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:115-1167 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:10/13/2015 City Council On agenda:Final action:11/17/2015 Title:Subject: A resolution to allow the use of electronic signatures (E-signatures) on City documents Sponsors: Indexes: Code sections: Attachments:Staff Report A - Draft Resolution B - California Secretary of State Letter C - Secretary of State’s website FAQ Action ByDate Action ResultVer. City Council11/17/2015 1 Subject: A resolution to allow the use of electronic signatures (E-signatures) on City documents Staff recommends that the City Council adopt Resolution No.15-101 to allow the use of electronic signatures (E-signatures) on applicable City documents CITY OF CUPERTINO Printed on 11/10/2015Page 1 of 1 powered by Legistar™ OFFICE OF THE CITY MANAGER CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3200 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: November 17, 2015 Subject A resolution to allow the use of electronic signatures (E-signatures) on City documents. Recommended Action Staff recommends that the City Council adopt the Draft Resolution (Attachment A) to allow the use of electronic signatures (E-signatures) on applicable City documents. Description The resolution would authorize the use of electronic signatures on some City documents. Specifically, this resolution would: (1) establish that electronic signatures shall be effective on City documents so long as certain guidelines regarding the security and integrity of electronic signatures are met. (2) Authorize the City Manager to determine the particular technologies or vendors that presumptively satisfy these guidelines. Background The City of Cupertino is committed to reducing waste, protecting the enviro nment, while at the same time, providing the most convenient and efficient services for the public. The City is also in the process of implementing several projects related to paperless systems including the New World financial and HR system, an online permitting system and an online system to allow sign-ups for recreational classes offered by the City. “Digital” or “electronic” signatures are necessary tools to allow the implementation of these online systems. The use of electronic signatures on legally-binding documents has become increasingly prevalent in the private sector, but has yet to find widespread adoption by government agencies. The benefits of electronic signatures are simple and numerous: they cut down on the paper, time, and cost associated with transmitting and approving physical documents, and they can offer an easily accessible audit trail of when documents w ere modified and when they were signed. Based on guidance provided by the Secretary of State, general law cities may now have the ability to move forward with similar policies allowing electronic signatures in order to balance the need for signature security with the need to streamline city processes. Discussion The general legal framework for the use of electronic signatures on electronic records has been in place for over a decade. In 1999, California adopted a version of the Uniform Electronic Transactions Act (UETA), guaranteeing that electronic signatures would have the same legal effect as a “wet” or manual signature. (Civ. Code §§ 1633.1- 1633.17.) In 2000, Congress passed the Electronic Signatures in Global and National Commerce Act (E-SIGN Act), mandated the same treatment of electronic signatures in interstate or foreign commerce. (15 U.S.C. 7001.) In addition, in 1995, five years before the UETA and E-SIGN Act were adopted, the California Legislature passed a statute authorizing public entities to accept “digital signatures”1 if and only if they comply with stringent verification procedures established by the Secretary of State. (Gov. Code § 16.5). The Secretary of State adopted regulations in 1998 approving the use of digital signatures only if they could be verified using Public Key Cryptology (PKI) or Signature Dynamics technologies. (2 C.C.R. § 22003.) These regulations have not been updated in the past 15 years. Electronic Signatures vs Digital Signatures The difference between an “electronic” signature and a “digital” has evolved over the past several decades as the law lags behind technology. Outdated Secretary of Sta te Regulations which apply only to public entities create ambiguity in the criteria for accepting the use of this technology. Both PKI and Signature Dynamics technologies identified in the “digital signature” requirements in the Secretary of State regulat ions, which apply to public entities, add complexity and expense to the signature process, eliminating some of the primary advantages of using electronic signatures. For example, Signature Dynamics technology involves the use of a specialized tablet and/or stylus to record physical attributes of a signature (e.g. speed and pressure) to verify the identity of the signer. The additional hardware required to implement Signature Dynamics renders it impractical in the majority of situations in which electronic signatures may be attractive. PKI technology requires each party to establish a relationship with a “certification authority,” which verifies the identity of the signer using a combination of public and private “keys.” This 1 “Digital signature” is a term of art meaning an electronic signature that is accompanied by a unique cryptographic certificate verifying the identity of the person affixing the signature. additional step may be overly burdensome for many individuals and organizations which have only intermittent interaction with the City. Under the UETA, an electronic signature can be proven to be attributed to a person signing “in any manner, including a showing to the efficacy of any security procedure applied to determine to which the electronic record or electronic signature was attributable.” (Civ. Code §1633.9.) This is a less restrictive standard than that for “digital” signatures under the Secretary of State Regulations. On August 24, 2014, Alex Padilla, the California Secretary of State issued an opinion letter to Dan Puterbaugh, Director, Associate General Counsel for Adobe Systems Incorporated, that the “Secretary of State digital signature regulations do not apply to the definition or use of electronic signatures under the UETA” (Attachment C). In addition, the Secretary of State’s current website under “Frequently Asked Questions” reiterates that a governmental agency can use the electronic signatures governed by the UETA (see Attachment D). Moreover, in 2014 the California State Legislature recognized cities’ ability to accept electronic signatures with the passage of AB2188, state law that requires streamlined the solar panel permitting. Staff therefore recommends moving forward with using electronic signature policy to implement the City’s online and electronic applications. Additionally, until the office of the Secretary of State considers modifying its regulations to allow electronic signatures, staff is additionally recommending that contracts that require Council authorization require digital or “wet” signatures. The recommended electronic signature policy provides a balance between the need for signature security and integrity with the need to streamline city processes. Alternatives The Council can direct the policy as follows: 1. Authorize electronic signatures for most transactions, but require digital or “wet” signatures for contracts with a threshold other than the recommendation of those requiring Council approval; 2. Authorize electronic signatures for all transactions: This is the option that is most efficient for both staff and the members of the public but may not have the same signature security and integrity as the other options. 3. Authorize only digital signatures for all transactions: This is the most conservative alternative, but is the most cumbersome for the ultimate user. There could be difficulty with the interface between the application and the City’s server, which could affect implementation of the City’s projects including online and electronic applications. Sustainability Impact Adoption of the resolution would be consistent with the City’s sustainability goals including promoting the use of technology to reduce use of paper. Fiscal Impact Adoption of the resolution would not result in any fiscal impact. There may be costs associated with the selection and implementation of an electronic signature platform. Environmental Review Adoption of the resolution is not a project subject to environmental review. Prepared by: Rick Kitson, Public Affairs Director Reviewed by: David Brandt Approved for Submission by: David Brandt, City Manager Attachments: A – Draft Resolution B - Letter dated August 24, 2014 from Alex Padilla, California Secretary of State, to Dan Puterbaugh, Director, Associate General Counsel for Adobe Systems Incorporated. C - Excerpt from the Secretary of State’s current website (dated 11/09/2015) under “Frequently Asked Questions,” which reiterates that a governmental agency can use the electronic signatures governed by the UETA. RESOLUTION NO. 15- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO APPROVING A POLICY TO ALLOW THE USE OF ELECTRONIC SIGNATURES (E- SIGNATURES) ON CITY DOCUMENTS SECTION I: PROJECT DESCRIPTION This resolution authorizes the use of electronic signatures on City documents. SECTION II: WHEREAS, federal and state regulations have provided sufficient guidelines to allow for the implementation of electronic content, electronic transactions and electronic signatures; and WHEREAS, technology has developed to a level of sophistication to enable secure and verifiable electronic signatures; and WHEREAS, Cupertino continues to be a regional environmental leader, offering award-winning, grant-funded, publically-recognized programs, policies and services that are sought after and modeled by adjacent communities; and WHEREAS, Cupertino's commitment to the environment and waste-reduction is evidenced by its City's Climate Action Plan, General Plan Sustainability Element, Green Purchasing Policy, Green Events Policy, Green Building Ordinance, and Green Business Program; and WHEREAS, Cupertino encourages conservation by sharing sustainability tips (e.g. "think before you print") including, a website Cupertino.org/green; and WHEREAS, the use of e-signatures and digital signatures in City business will not only increase efficiency for staff, but also will provide a layer of convenience and efficiency for City residences who are in need of City services; and WHEREAS, the state legislature adopted AB2188 regarding the streamlining for solar panel permits which recognizes the City's ability to accept "electr onic" signatures; and WHEREAS, the California Secretary of State has issued an opinion that the “digital” signature requirements of the Secretary of State Regulations (2 CCR 22000, et seq.) do not apply to the use of “electronic” signatures; Resolution No. November 17, 2015 Page -2 WHEREAS, the City Manager will oversee and determine, with the recommendation of the City Attorney and the Information Technology Director, or other designee, the appropriate use of electronic signatures for City documents; and WHEREAS, adoption of an electronic signature policy is not a project subject to environmental review. NOW, THEREFORE, BE IT RESOLVED: That after careful consideration of staff reports, public comments, and other evidence submitted in this matter, the City Council does: 1. The above recitations are true and correct. 2. The City Council E-Signature Policy is adopted as shown in Exhibit A to this resolution. PASSED AND ADOPTED at a Regular Meeting of the City Council of the City of Cupertino the 17th day of November 2015, by the following vote: Vote: Members of the City Council: AYES: NOES: ABSTAIN: ABSENT: RECUSE: ATTEST: APPROVED: _________________________ ________________________ Grace Schmidt Rod Sinks City Clerk Mayor, City of Cupertino Resolution No. November 17, 2015 Page -3 Exhibit A CITY OF CUPERTINO CITY COUNCIL POLICY TO ALLOW THE USE OF ELECTRONIC SIGNATURES (E-SIGNATURES) ON CITY DOCUMENTS Purpose To enable the City of Cupertino to accept an approved electronic signature, in lieu of a written signature, on a document in which a signature is required or used, in compliance with the law. This policy does not supersede laws that specifically require a written signature. This policy does not limit the right or option to conduct the transaction on paper or in non-electronic form and the right to have documents provided or made available on paper. Background The use of electronic signatures on legally binding documents has become increasingly prevalent in the private sector but has yet to find widespread adoption by public entities. The benefits of electronic signatures are simple and numerous: they cut down on the paper, time and cost associated with transmitting and approving physical documents, and they can offer an easily accessible audit trail of the modification, editing, and approval/signature of documents. This policy will authorize the use of electronic signatures on the City of Cupertino documents while allowing the city to strike a balance between flexibility and the need for signature security and integrity. POLICY 1. To the fullest extent permitted by law, the City of Cupertino accepts e-signatures as legally binding and equivalent to handwritten signatures to signify an agreement in compliance with the law. 2. This policy applies to all employees of the City of Cupertino, and governs all uses of electronic signatures and electronic records used to conduct the official business of the City of Cupertino. Such business may include, but not be limited to electronic communications, transactions contracts, permits and other official purposes, both internal and external to the city, except that contracts that require Council authorization will continue to require digital or wet (manual) signatures. The City Manager may in any circumstance determine that a particular transaction be conducted by a digital or wet (manual) signature. Resolution No. November 17, 2015 Page -4 3. Where a city policy requires that a record have the signature of an authorized person that requirement is met when the electronic record has associated with it an electronic signature using a city approved electronic signature method. 4. Where a city policy requires a written document, that requirement is met when an electronic record has associated with it an electronic signature using a city approved electronic signature method. 5. The City of Cupertino’s right to option to conduct a transaction on paper or in non- electronic form shall not affect the City of Cupertino’s right, option or obligation to have documents provided or made available in paper format. 6. Approved and automated processes for a City of Cupertino transaction are automatically subject to the provision of this policy. 7. Periodic reviews will be implemented for appropriateness and continued applicability of electronic signatures. 8. If the parties have agreed to conduct a transaction by electronic means, the parties are required to utilize the city’s electronic signature system for approved, electronically signed documents and that all applicable security processes for authentication be followed. 9. Where a legal requirement beyond city policy requires a written document that requirement is met when an electronic record has associated with it an electronic signature using an approved electronic signature method, which complies with California state law. 10. Appropriate procedures must be used to confirm that the person signing the record has the appropriate authority. 11. This policy applies only to transactions between parties which have agreed to conduct transactions by electronic means with the use of the city’s approved electronic signature method. 12. If parties have agreed to conduct a transaction by electronic means and a law requires a person to provide, send, or deliver information in writing to another person, the requirement is satisfied if the information is provided, sent or delivered, in an electronic record capable of retention by the recipient at the time of receipt. An electronic record is not capable of retention by the recipient of the sender or its Resolution No. November 17, 2015 Page -5 information processing system inhibits the ability of the recipient to print or store the electronic record. 13. This policy shall not apply to any transaction that requires a person’s signature to be signed in the presence of a notary public. 14. The final approval of any electronic signature method will be by the City Manager with the recommendation of the City Attorney and the Information Technology Director, or other designee. In determining whether to approve an electronic signature method, consideration will be given to the systems and procedures associated with using that electronic signature, and whether the use of the electronic signature is at least as reliable as the existing method being used. 15. In the event that it is determined that an approved electronic signature method is no longer trustworthy, the City Manager must revoke the approval of that electronic signature method. If there is continued significance for the electronic signatures, which used the revoked method, the City Manager will take steps to see that any valid records signed with the revoked electronic signature method are signed again either with a written signature or with an approved electronic signature method. August 24, 2014 Dan Puterbaugh ALEX PADILLA CALIFORNIA SEC RETARY OF STATE Director, Associate General Counsel Adobe Systems Incorporated 345 Park A venue San Jose, CA 95110-2704 RE: Approved List of Digital Signature Certification Authorities Dear Mr. Puterbaugh: Thank you for your letter dated July 29, 2015, bringing to my attention the confusion in the marketplace re lated to the Secretary of State's Approved List of Digital Signature Certification Authorities ("Approved List") maintained pursuant to the digital signature regulations. You correctly point out that a provider of a digital signature product is not the same as a digital signature certification authority, although it is possible that a single entity could be both. Thus, nothing in current law or regulations requires a provider of a digital signature product to be on the Approved List in order to provide a digital signature product in California. It is required , however, that a digital signature product be provided with a certificate issued from an entity that is on the Approved List if that digital signature will be used to digitally sign communications with a public entity. The Secretary of State's web site pages that include the Approved List and the "Frequently Asked Questions" about the digital signature regulations are being updated to more accurately describe the law and regulations on digital signatures. (These updates do not constitute any change in interpretation of law or regulation.) In addition, the "Frequently Asked Questions" reference the Uniform E lectronic Transaction Act (UET A), which authorizes use of an electronic signature for transactions and contracts among parties in California, including a government agency . The Secretary of State digital signature regulations do not apply to the definition or use of electronic signatures under the UET A. 1500 1 lTH STREET, SACRA MENTO, CA 958 14 • (9 16) 653-7244 300 SO UTH SPRIN G STREET , ROO M 16507, LOS AN GE L ES, CA 90013 • (213) 897-6225 WWW .SOS.CA.GOV ·~so Dan Puterbaugh August 24, 2015 Page 2 As technologies in the digital marketplace continue to evolve, it is imperative that government continuously review how our laws and policies can promote their use for public benefit. I look forward to your continued input on these matters. California Secretary of State California Secretary of State Alex Padilla Frequently Asked Questions Table of Contents What is a digital signature? What is a digital signature provider? What is a digital signature certification authority? Is a digital signature provider required to be on the Secretary of State’s “Approved List”? What are some potential applications of the technology? Who is affected by California's digital signature regulations? We want to use digital signatures to help us computerize our employees' filing of time-cards. Where do we start? How should we choose between a public key cryptography (PKC) system and a signature dynamics system? Why does California permit signatures created by signature dynamics to be used? What is an electronic signature? What a digital signature? Under California law, a digital signature is defined as "an electronic identifier, created by computer, intended by the party using it to have the same force and effect as the use of a manual signature." Government Code section 16.5 states a digital signature shall have the same force and effect as a manual signature if and only if: 1.It is unique to the person using it. 2.It is capable of verification. 3.It is under the sole control of the person using it. 4.It is linked to data in such a manner that if the data are changed, the digital signature is invalidated, and 5.It conforms to regulations adopted by the Secretary of State. Government Code section 16.5 also states that the use or acceptance of a digital signature is at the option of the parties to the transaction and nothing in the law requires a public entity to use or accept the submission of a document containing a digital signature. The regulations(/administration/regulations/current-regulations/technology/digital-signatures/)adopted by the Secretary of State define the types of technologies that are acceptable for creating digital signatures for use by public entities in California. They also provide guidance to public entities that want to use digital signatures for certain transactions. Back to Top What is a digital signature provider? A digital signature provider is an entity that provides document signing services using digital technology. Back to Top What is a digital signature certification authority? A digital signature certification authority is an entity that issues digital certificates that are required for a digital signature under California law. Pursuant to regulation, the Secretary of State maintains on its web site an “Approved List of Digital Signature Certification Authorities” that are authorized to issue certificates for digitally signed communications with public entities in California. Back to Top Is a digital signature provider required to be on the Secretary of State’s “Approved List”? Page 1of 3Frequently Asked Questions | California Secretary of State 11/9/2015http://www.sos.ca.gov/administration/regulations/current-regulations/technology/digital-si... No, a digital signature provider is not required to be on the Secretary of State’s “Approved List of Digital Signature Certification Authorities,” but that provider is required to offer its digital signature service with a certificate issued by a digital signature certification authority that is on the list if the signature will be used to digitally sign communications with public entities. Back to Top What are some potential applications of the technology? Digital signatures can be used for many transactions that currently require a hand written signature. Potential uses include on- line college applications and submitting applications for business permits at the local level. Back to Top Who is affected by California's digital signature regulations? Government Code section 16.5 and the regulations(/administration/regulations/current-regulations/technology/digital- signatures/)adopted by the Secretary of State affect public entities in California, which are defined by the Government Code as the State, the Regents of the University of California, a county, city, district, public authority, public agency, and any other political subdivision or public corporation in the State. Back to Top We want to use digital signatures to help us computerize our employees' filing of time-cards. Where do we start? Government Code section 16.5 specifies that the use of digital signatures shall be at the option of the parties involved in the transaction. Before beginning a transition from paper documents to electronic ones, public entities must ensure that all the parties to the transaction are willing to use digital signatures. These regulations(/administration/regulations/current-regulations/technology/digital-signatures/)allow public entities to utilize digital signatures that are created by one of two different technologies—"public key cryptography (PKC)" and "signature dynamics." For a public entity to get started, the first step is to determine the amount of security necessary to conduct the transaction. Some issues to consider are: •Are the documents containing signatures going to be transmitted over an "open" or a "closed" network? •Does the signature on the document need to be verified? •How much time and resources can be allocated to verification? •Does the signature need to be compared to a manual signature on paper or can a digital certificate adequately provide one-stop verification? •Will immediate verifiability reduce the potential of fraud? •Will the documents containing digital signatures need to be reproduced for public access to the records? •Will the documents containing digital signatures need to be utilized by another local, state or federal agency? If so, is the technology compatible with the other agency's needs? Answering these and countless other questions can help public entities identify the appropriate technology to use for each application that includes a digital signature component. Back to Top How should we choose between a public key cryptography (PKC) system and a signature dynamics system? PKC signatures have a greater degree of verifiability than signature dynamics signatures. PKC allows for a third party verification of the signature, while signature dynamics signatures require additional steps (including handwriting analysis) to verify the signer of a document. PKC signatures are designed to be immediately verifiable. Signatures using signature dynamics technology are designed to allow future verification of the signature (similar to a non-notarized, paper-based signature). Page 2of 3Frequently Asked Questions | California Secretary of State 11/9/2015http://www.sos.ca.gov/administration/regulations/current-regulations/technology/digital-si... PKC signatures are affixed to documents using software enhancements to existing applications and web browsers. Signature dynamics signatures require additional hardware to create the signatures. Signature dynamics signatures are easier for the average user to understand, but they do not provide the level of security that is inherent in PKC signatures, which are immediately verifiable with a third-party issued certificate. Public entities should conduct an extensive review of their needs and match them to the appropriate technology approved for use in the Secretary of State's approved regulations(/administration/regulations/current-regulations/technology/digital- signatures/). Back to Top Why does California permit signatures created by signature dynamics to be used? Although signature dynamics signatures require the lengthy process of handwriting analysis to achieve certain verification of a signature, they are still "capable of verification" as required by Government Code section 16.5. Additionally, some degree of certainty can also be obtained by a lay-comparison of manual handwritten signatures, which may already be on file within a particular agency. If a public entity needs immediate absolute verification of a signature, then this technology may not be the best option for those transactions. Back to Top What is an electronic signature? Under California law, an "electronic signature" means an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record. The Uniform Electronic Transaction Act (UETA) authorizes use of an electronic signature for transactions and contracts among parties in California, including a government agency. One of the most common forms of an electronic signature in use today is the one millions of people use every year to sign their tax returns. The digital signature regulations adopted by the Secretary of State do not apply to the definition or use of electronic signatures as they are governed by the UETA (Civil Code Section 1633.1 – 1633.17). Back to Top Page 3of 3Frequently Asked Questions | California Secretary of State 11/9/2015http://www.sos.ca.gov/administration/regulations/current-regulations/technology/digital-si... CITY OF CUPERTINO Legislation Details (With Text) File #: Version:115-1186 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:10/21/2015 City Council On agenda:Final action:11/17/2015 Title:Subject: Approve the Employment Contract for the City Manager, and amend the Appointed Employees’ Compensation Program Sponsors: Indexes: Code sections: Attachments:Staff Report A - Redlined Third Amendement to City Manager Employment Contract B - Draft Resolution to Amend Employment Contract C - Draft Resolution Amending Appointed Employees Compensation Program D - Appointed Employees Compensation Program E - Redlined amended Appointed Employees Compensation Program Action ByDate Action ResultVer. City Council11/17/2015 1 Subject:Approve the Employment Contract for the City Manager,and amend the Appointed Employees’ Compensation Program a.)Adopt Resolution No.15-102 approving the Third Amendment to the Employment Contract for the City Manager;and b.)Adopt Resolution No.15-103 amending the Appointed Employees’ Compensation Program CITY OF CUPERTINO Printed on 11/10/2015Page 1 of 1 powered by Legistar™ S 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: November 17, 2015 Subject Approve the Employment Contract for the City Manager, and amend the Appointed Employees’ Compensation Program. Recommended Action Adopt the Draft Resolution approving the Third Amendment to the Employment Contract for the City Manager; and adopt the Draft Resolution amending the Appointed Employees’ Compensation Program. Discussion The City Council held its annual evaluation of the City Manager on Monday, September 19, 2015. The Council desires increase the compensation to the City Manager. The attached Employment Contract is submitted for Council consideration of an annual salary increase of 5% or $12,150. In addition, during the Council meeting of October 20, 2015, Council discussed parity between the City Attorney and the City Manager’s contract. The proposed contract reflects parity, subject to Council approval. Staff also proposes to amend the Appointed Employees’ Compensation Program to reflect the annual salary amount contained in the Employment Contract, with an effective date of November 1, 2015. Staff also recommends memorializing all past increases to compensation for employees in the Appointed Employees’ Compensation Program. Fiscal Impact Approval of the above will increase the FY 2015-16 budget appropriations by $12,150. Prepared by: Jaqui Guzmán, Assistant to the City Manager Reviewed by: Kristina Alfaro, Administrative Services Director and Timothy L. Davis, Partner, Burke Williams and Sorensen, LLP Attachments: A – Redlined Amended Employment Contract for City Manager B – Draft Resolution authorizing an amendment to City Manager employment contract C – Draft Resolution amending Resolution No. 15-093 the Appointed Employees’ Compensation Program D – Amended Appointed Employees’ Compensation Program E – Redlined amended Appointed Employees’ Compensation Program Page 1 Revised 10.21.1411.17.15 SECOND THIRD AMENDED EMPLOYMENT CONTRACT FOR CITY MANAGER This Amended Employment Contract is made and entered into this 21st 17th day of OctoberNovember, 20142015, by and between the CITY OF CUPERTINO, STATE OF CALIFORNIA, A Municipal Corporation, by and through its City Council (EMPLOYER), and David Brandt (EMPLOYEE). RECITALS: A. EMPLOYER is a Municipal Corporation of the State of California. B. The City Council of the City of Cupertino, in accordance with the provisions of its Municipal Code, desires to employ the services of EMPLOYEE as City Manager. C. EMPLOYEE desires to accept employment as Cupertino City Manager. D. It is the desire of both EMPLOYER and EMPLOYEE to set forth the terms and conditions of said employment. NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows: ARTICLE 1: TERM OF EMPLOYMENT Section 1.0 1. Term of the Contract: This Contract originally began on September 10, 2012, and will automatically expire on September 16, 2020September 9, 2016 unless extended in writing by the parties. On or within 30 days of September 16, 2019September 9, 2015, EMPLOYEE shall notify EMPLOYER of the expiration date of September 16, 2020September 9, 2016. In the event that EMPLOYER does not intend to extend this Contract beyond expiration, it shall notify EMPLOYEE in writing of its intent not to extend prior to the effective date of expiration. Failure of EMPLOYER to provide such notice shall not affect the expiration date of September 16, 2020September 9, 2016. Section 1.02. Termination Prior to Expiration. Notwithstanding any provision contained in this Contract to the contrary, EMPLOYEE understands and agrees that he serves at the pleasure of EMPLOYER and may be terminated prior to expiration of this Page 2 Revised 11.17.1510.21.14 Contract at the will of the EMPLOYER, subject only to the severance provisions set forth in Article V of this Contract, and the ordinance provisions as set forth in Section 2.28.090 of the Cupertino Municipal Code. In like manner, nothing in this Contract shall prevent, limit, or otherwise interfere with the right of EMPLOYEE to resign at any time from the position of City Manager subject only to the notice provisions set forth in Article V of this Contract and the ordinance provisions as set forth in Section 2.28.090 of the Cupertino Municipal Code. EMPLOYEE further acknowledges that EMPLOYER has made no limited expressed, or written assurances of continued employment with the City of Cupertino other than as specifically set forth in this Contract. ARTICLE II: DUTIES AND OBLIGATIONS OF EMPLOYEE Section 2.01. Duties. EMPLOYER hereby agrees to employ EMPLOYEE as City Manager of the City of Cupertino to perform the functions and duties as specified in the Municipal Code, California Constitution, and California Statutes, and to perform such other legally permissible and proper duties and functions as EMPLOYER shall from time to time assign to EMPLOYEE which are reasonably related to the position of City Manager, including but not limited to: A. To see that all laws and ordinances of the City are duly enforced and that all franchises, permits, licenses and privileges granted by the City are faithfully performed and observed; B. To control, order and give directions to all directors of departments and to subordinate officers and employees of the City under his jurisdiction through their department directors, and to transfer employees from one department to another; C. The services and facilities of the City Treasurer and the City Attorney shall be made available to the City Manager to the same extent and in the same manner that the services are available to the City Council; D. To appoint, discipline and dismiss any and all officers and employees of the Page 3 Revised 10.21.1411.17.15 City except those elected by the electors of the City or whose appointment or dismissal is denied to the City Manager under the laws of the state. The power to appoint given in the preceding paragraph does not include the power to create a new position except as provided under Chapter 2.52; E. To attend all meetings of the City Council unless excused there from by the City Council; F. To recommend to the City Council for adoption such measures and ordinances as he deems necessary or expedient; G. To keep the City Council at all times fully advised as to the financial conditions and needs of the City; H. To prepare and submit to the City Council the annual budget and to administer it after adoption; I. To purchase or cause to be purchased all supplies for all of the departments or divisions of the City. No expenditures shall be submitted or recommended to the City Council except on report and approval of the City Manager; J. To make investigation into the affairs of the City and any department or division thereof and any Contract or the proper performance of any obligation running to the City; K. To investigate all complaints in relation to matters consuming the administration of the government of the City and in regard to the services maintained by public utilities in the City and to see that all franchises, permits and privileges granted by the City are faithfully observed; L. To execute general supervision over all public buildings, public parks, streets and other public property which are under the control and jurisdiction of the City Council; M. To devote his entire working time, thought and energy to the duties and interests of the City; N. To receive and open all official mail and communications addressed either to the Mayor or to the City Council; 0. To make reports and initiate recommendations as may be desirable or as requested by the City Council; Page 4 Revised 11.17.1510.21.14 P. To perform such other duties and exercise such other powers as may be delegated to him from time to time by ordinance, resolution or other action of the City Council. Section 2.02. Devotion to Duties. EMPLOYEE agrees to devote productive time, ability, and attention to the business of EMPLOYER during the term of this Employment Contract. This Contract shall not be interpreted nor intended to prohibit EMPLOYEE from making passive personal investments, conducting private business affairs or providing volunteer services if those activities do not interfere with the services required under this Contract. Section 2.03. Performance Evaluation Procedures. The City Council shall review and evaluate the performance of the EMPLOYEE at least annually, or on any schedule deemed appropriate by the City Council. Said review and evaluation shall be in accordance with specific criteria developed by EMPLOYER after consultation with EMPLOYEE. ARTICLE III COMPENSATION Section 3.01 Compensation. EMPLOYER agrees to pay to EMPLOYEE for services rendered by him pursuant to this Contract a monthly base salary of $21,262.5020,000, payable in installments at the time as other employees of EMPLOYER are paid. EMPLOYEE'S monthly base salary shall be adjusted by any percentage increase provided in the Appointed Employees’ Compensation Program, given to Department Heads of EMPLOYER generally and shall not be decreased unless in a percentage consistent with a decrease applicable to employees covered under the Appointed Employees’ Compensation Program, to Department Heads of EMPLOYER generally. Notwithstanding the above, EMPLOYER and EMPLOYEE agree that there shall be no further salary adjustments or bonuses for 20142015. At the time of EMPLOYEE's periodic evaluations, EMPLOYER may consider an additional compensation package increase including, but not limited to, merit pay or an additional increase in salary or benefits. Section 3.02 Deferred Compensation. City shall provide to EMPLOYEE the same Page 5 Revised 10.21.1411.17.15 deferred compensation plan that may be provided to other employees covered under the Appointed Employees’ Compensation ProgramDepartment Heads and Confidential Employees, if any. ARTICLE IV EMPLOYEE BENEFITS Section 4.01. Automobile Allowance. During the term of this Employment contract, EMPLOYEE, to the extent necessary to perform his duties shall use his own personal vehicle. EMPLOYER, in consideration thereof, shall providepay EMPLOYEE the sum of $350 per month as an automobile allowance in accordance with the Appointed Employees’ Compensation Program. EMPLOYEE shall be responsible for the payment of all operating expenses of the vehicle, including, but not limited to, gasoline, oil, service and repair, and if necessary, the replacement of his automobile. EMPLOYEE shall procure and maintain, at his expense, a comprehensive automobile liability policy on the vehicle being used by him, in an amount that is acceptable to the EMPLOYER. During the course of this Employment Contract, EMPLOYEE shall provide EMPLOYER with written documentation that said insurance policy is in full force and effect. Section 4.02. Vacation and Sick Leave. EMPLOYEE shall be credited with 10 days of vacation and 5 days of sick leave as of the commencement of employment. Annual vacation and sick leave shall be accrued and administered in the same manner as vacation and sick leave is administered in the Appointed Employees’ Compensation Program for Department Head employees of EMPLOYER. Section 4.03. Benefits. EMPLOYEE shall be entitled to receive benefits provided by EMPLOYER at a level no less than that provided to employees covered under the Appointed Employees’ Compensation Programother Department Heads of the City, which presently consist of retirement benefits, family health coverage, life insurance, disability insurance, Cupertino sports club membership, administrative leave, floating holidays and holidays. The benefits so provided are subject to modification during the course of this Contract at the sole and absolute discretion of EMPLOYER at such times and to such extent as EMPLOYER may deem appropriate provided, however, there shall be no reduction in benefits unless EMPLOYER implements the same reduction of benefits to all other employees covered under Page 6 Revised 11.17.1510.21.14 the Appointed Employees’ Compensation Program (except as specified in this Contract) other Department Heads of the City. Section 4.04 Professional Dues and Subscriptions. EMPLOYER agrees to pay for professional dues and subscriptions of EMPLOYEE directly related to his duties as City Manager, provided the City Council has made provisions for such costs in the annual budget. Section 4.05 Expenses. EMPLOYEE shall be entitled to reimbursement for all reasonable expenses necessarily incurred by him in the performance of his duties upon presentation of vouchers indicating the amount and purpose thereof, and further provided that such expenses are in accordance with policies established from time to time by EMPLOYER and consistent with budget allocations adopted by EMPLOYER for that purpose during the term of this Employment Contract. Section 4.06 Moving and Relocation Expenses. EMPLOYER will pay EMPLOYEE the amount of $20,000 intended to be used for relocation, housing and house hunting expenses in EMPLOYEE's discretion. Section 4.07 Professional Development. EMPLOYER hereby agrees to pay travel . and subsistence expenses of EMPLOYEE for professional and office travel, meetings, and occasions adequate to continue the professional development of EMPLOYEE and to adequately pursue necessary official functions for EMPLOYER, including but not limited to, city manager associations and other such national, regional, state, local government groups and committees thereof which EMPLOYEE serves as a member, provided the City Council has made provisions for such costs in the annual budget. EMPLOYER also agrees to pay tuition, travel, and subsistence expenses of EMPLOYEE for courses, institutes, and seminars that are necessary for his professional development and of the good of the City provided the City Council has provided for same in the annual budget. Section 4.08 Housing Assistance. EMPLOYEE may elect to receive Housing Assistance in accordance for Department Heads consistent with the EMPLOYER's Housing Assistance Program for Appointed Employees and Department Heads in effect as of the execution date of Page 7 Revised 10.21.1411.17.15 this Contract, which is subject to approval by the City CouncilPolicy in effect on the date of commencement of employment. ARTICLE V TERMINATION AND NOTICE Section 5.01. Termination of Employment and Severance: A. Subject to the provisions of Section 2.28 of EMPLOYER's municipal Code, EMPLOYEE serves at the pleasure of EMPLOYER and nothing herein shall be taken to prevent, limit or otherwise interfere with the right of EMPLOYER to terminate the services of EMPLOYEE with or without cause; provided, however, EMPLOYER shall take no action to terminate the services of EMPLOYEE, without cause, within ninety (90) days after an election at which one or more new members are elected to the City Council. There is no express or implied promise made to EMPLOYEE for any form of continued employment. This Contract and the EMPLOYER's municipal Code chapter 2.28 are the sole and exclusive bases for an employment relationship between EMPLOYEE and EMPLOYER. B. If the EMPLOYEE is terminated by the EMPLOYER prior to expiration of this Contract, while still willing and able to perform the duties of the City Manager, EMPLOYER agrees to pay EMPLOYEE a single lump sum payment made on the effective date of termination, in an amount equivalent to nine six months aggregate salary and aggregate medical insurance benefit allowance if there are nine six or more months prior to the expiration date of this contract. If there are less than nine six months remaining the term of the contract, then the single lump sum payment made on the effective day of termination shall be in an amount equal to the monthly aggregate salary and aggregate medical benefit of the EMPLOYEE multiplied by the numbers of months left on the unexpired term of the Contract. If this Contract is not renewed, then EMPLOYER shall either provide EMPLOYEE with nine six months prior notice of nonrenewal or shall pay EMPLOYEE a single lump sum payment made on the effective date of termination in an amount equivalent to the difference between nine six months aggregate salary and medical insurance benefit allowance computed for the number of months of notice actually given. Any such payment will release EMPLOYER from any further obligations under this Contract. Contemporaneously with the delivery of the severance pay herein above set out, EMPLOYEE agrees to execute and deliver to EMPLOYER a Page 8 Revised 11.17.1510.21.14 release releasing EMPLOYER of all claims that EMPLOYEE may have against EMPLOYER. C. Notwithstanding paragraph (b) above, EMPLOYER shall not be obligated to pay, and shall not pay, any amounts or continue any benefits under the provisions of paragraph (b), if EMPLOYEE is terminated because of a crime of moral turpitude or a violation of statute or law constituting misconduct in office. Further, EMPLOYER shall not be obligated to pay, and shall not pay, any amounts or continue any benefits under paragraph (b), in the event EMPLOYEE voluntarily resigns or retires without affirmative action by EMPLOYER to terminate, initiate termination proceedings or request resignation. D. Any payment to the EMPLOYEE pursuant to this subsection 5.01 shall be fully reimbursed to the EMPLOYER if the EMPLOYEE is convicted of a crime involving an abuse of his office or position. ARTICLE VI MISCELLANEOUS Section 6.01. Form of Notices. Notices pursuant to this Contract shall be in writing given by deposit in the custody of the United State Postal Service, first class postage prepaid, addressed as follows; A. The City: Mayor and City Council City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 B. EMPLOYEE: David Brandt Address to be inserted at time of relocation: 3500 Granada Avenue, #124 Santa Clara, CA 95051 Alternatively, notices required pursuant to this Contract may be personally served in the same manner as is applicable to civil judicial process. Notice shall be deemed given as of the date of personal service or as of the date three days after deposit of such written notice, postage prepaid, with the United States Postal Service. Page 9 Revised 10.21.1411.17.15 Section 6.02. Bonding. EMPLOYER shall bear the full cost of any fidelity or other bonds required of EMPLOYEE under any law or ordinance. Section 6.03 Indemnification. EMPLOYER shall defend, save harmless and indemnify EMPLOYEE against any tort, professional liability claim or demand, or other legal action, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance of EMPLOYEE's duties as City Manager. If EMPLOYER compromises or settles any such claim or suit, EMPLOYER shall pay the amount of any settlement, or if the claim results in a judgment against EMPLOYEE, EMPLOYER shall pay any such judgment. This indemnification does not apply to any act, action or omission arising out of the gross negligence, willful misconduct on the part of EMPLOYEE, or acts EMPLOYEE outside the scope of his duties. Section 6.04 General Provisions. A. The text herein shall constitute the entire Contract between the parties. B. This Contract shall be binding upon and insure to the benefit of the heirs at law and executors of EMPLOYEE. C. This Contract may only be modified upon the written consent of the EMPLOYER and EMPLOYEE. D. In any action to enforce the terms of this Contract the prevailing party shall be entitled to recover reasonable attorney's fees and court costs and other non­reimbursable litigation expenses, such as expert witness fees and investigation expenses. Section 6.05 Severability. If any provision thereof, contained in this Contract is held unconstitutional, invalid or unenforceable, the remainder of this Contract shall be deemed severable, shall not be affected, and shall remain in full force and effect. IN WITNESS WHEREOF, EMPLOYER has caused this Contract to be signed and executed in its behalf by its Mayor, and duly attested by its City Clerk, and EMPLOYEE has signed and executed this Contract, both in duplicate, the day and year first above written. Page 10 Revised 11.17.1510.21.14 ATTEST: CITY OF CUPERTINO _________________________________ _____________________________ City Clerk Mayor APPROVED AS TO FORM: _________________________________ ______________________________ Timothy L. Davis, Partner EMPLOYEE Burke, Williams & Sorensen, LLP RESOLUTION NO. 15- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AUTHORIZING AN AMENDMENT TO THE AGREEMENT OF EMPLOYMENT BETWEEN THE CITY OF CUPERTINO AND DAVID BRANDT, CITY MANAGER WHEREAS, the City Council has conducted an annual evaluation of the City Manager, David Brandt; and WHEREAS, the City Council desires to adjust the Manager’s salary to put him in parity with other employees based on the City-wide salary and benefit survey, and has authorized a salary increase of $12,150 per year; and WHEREAS, the City Council desires to adjust the Manager’s term by five years to 2020, increase notification of non-renewal to nine months, and increase severance pay to nine months; and WHEREAS, the terms, conditions and provisions of the agreement have been reviewed and approved by the Director of Administrative Services and Timothy L. Davis, Partner, Burke, Williams and Sorensen, LLP.; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cupertino hereby approves the aforementioned amendment to the employment agreement and authorizes the Mayor to execute said amendment on behalf of the City of Cupertino. PASSED AND ADOPTED at a City Council meeting of the City of Cupertino this 17th day of November, 2015, by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: Grace Schmidt, City Clerk Rod Sinks, Mayor RESOLUTION NO. 15- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING RESOLUTION NO. 15-093, APPOINTED EMPLOYEES’ COMPENSATION PROGRAM WHEREAS, the City Council desires to amend the Appointed Employees’ Compensation Program. NOW, THEREFORE, BE IT RESOLVED that the Appointed Compensation Program be amended which is incorporated in this resolution by this reference. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 17th day of November, 2015 by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: Grace Schmidt, City Clerk Rod Sinks, Mayor City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 1 PROGRAM PURPOSE AND DEFINITIONS FOR ELIGIBILITY It is City of Cupertino policy that those certain persons holding positions hereinafter defined and designated as appointed management employees by the City Council in the City Manager's and City Attorney offices shall be eligible for participation under the Appointed Employees' Compensation Program as hereby ad opted by action of the City Council and as same may be amended or as otherwise modified from time to time. Eligibility for inclusion in this Compensation program is limited to persons appointed by the City Council and holding positions as management employees, as defined under section 2.52.290 of the Cupertino Municipal Code, in the City Manager and City Attorney Offices. These are designated by the Appointing Authority and may be modified as circumstances warrant. Although subject to change in accordance with provision of the Personnel Code, the positions in the following classifications have been designated as appointed employees. MANAGEMENT CLASSIFICATIONS: Classification Title City Manager City Attorney In the event of any inconsistency between the Compensation Program and any Employment Contracts, the provisions of the Employment Contract and any amendments thereto control. Adopted by Action of the City Council July 1, 2010 Revised December 18, 2012 1 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 2 SALARY SCHEDULE AND OTHER SALARY RATES It is City of Cupertino policy that eligible persons under this Compensation Program shall be compensated for services rendered to and on behalf of the City on the basis of equitably of pay for duties and responsibilities assigned, meritoriou s service and comparability with similar work in other public and private employment in the same labor market; all of which is contingent upon the City's ability to pay consistent with its fiscal policies. Effective the first full pay period in July 2013, a 1.5% salary increase will be added to the salary ranges of classifications in this group. Effective the first full pay period in July 2014, a 1.5% salary increase will be added to the salary ranges of classifications in this group. Effective the first full pay period in July 2015, a 1.25% salary increase will be added to the salary ranges of classification in this group. See Attachment A for a list of paygrades. Adopted by Action of the City Council July 1, 2010 Revised October 2, 2012 Revised December 18, 2012 2 City of Cupertino APPOINTED EMPLOYEES'COMPENSATION PROGRAM Policy No. 3 TRAINING AND CONFERENCES I. POLICY It is City of Cupertino policy that eligible persons under this Compensation Program shall be reimbursed or receive advances in accordance with the schedules, terms and conditions as set forth herein for attendance at conferences, meetings and training sessions as defined below for each. It is the intent of this policy to encourage the continuing education and awareness of said persons in the technical improvements and innovations in their fields of endeavor as they apply to the City or to implement a City approved strategy for attracting and retaining businesses in the City. One means of implementing this encouragement is through a formal reimbursement and advance schedule for authorized attendance at such conferences, meetings and training sessions. II DEFINITIONS A. Conferences A conference is an annual meeting of a work related organization the membership of which may be held in the name of the City or the individual. B. Local Area The local area is defined to be within Santa Clara and San Mateo Counties and within a 40 -mile distance from Cupertino when traveling to Alameda County. C. Meetings A "meeting" shall mean a convention, conference, seminar, workshop, meal, or like assembly having to do with municipal government operations. An employee serving on a panel for interviews of job applicants shall not come under this definition. D. Training Session A training session is any type of seminar or workshop the attendance at which is for the purpose of obtaining information of a work related nature to benefit the City's operations or to enhance the attendee's capabilities in the discharge of assigned duties and responsibilit ies. III REIMBURSEMENT AND ADVANCE PAYMENT SCHEDULE 3 A. Intent This schedule is written with the intent that the employee will make every effort to find the lowest possible cost to the City for traveling on City business. For example, if paying for parking at the airport is less expensive that paying for a taxi or airport shuttle, then the employee should drive their car and park at the airport; or if renting a car is lower than taking taxis at the out -of-town location, then a car should b e rented; or air reservations should be booked in advance to obtain discounted fares. The following procedures apply whether the expense is being paid through a reimbursement or a direct advance. B. Registration Registration fees for authorized attendance at a meeting or training session will be paid by the City. C. Transportation The City will pay transportation costs on the basis of the lowest cost intent stated in paragraph A. Eligible transportation costs include airfare (with coach fare being the maximum), van or taxi service to and from the attendee's home and airport, destination or airport parking charges, taxi and shuttle services at the out -of-town location, trains, tolls, or rental cars. Use of a personal automobile for City business shall be reimburs ed or advanced at the rate per mile in effect for such use, except in no case shall it exceed air coach fare if the vehicle is being used for getting to the destination. Government or group rates offered by a provider of transportation must be used when av ailable. Reimbursement or advances for use of a personal automobile on City business within a local area will not be made so as to supplement that already being paid to those persons receiving a monthly mileage allowance. D. Lodging Hotel or lodging expenses of the employee resulting from the authorized event or activity defined in this policy will be reimbursed or advanced if the lodging and event occurs outside of the local area. Not covered will be lodging expenses related to person(s) who are accompanying the City member, but who themselves are not on City business. In this instance, for example, the difference between single and multiple occupancy rates for a room will not be reimbursed. Where the lodging is in connection with a conference or other organi zed educational activity, City-paid lodging costs shall not exceed the maximum group rate published by the conference or activity sponsor, providing that lodging at the group rate is available at the time of booking. If the group rate at the conference hot el is not available, then the non - 4 conference lodging policy described in the next paragraph should be followed to find another comparable hotel. Where lodging is necessary for an activity that is not related to a conference or other organized educational activity, reimbursement or advances shall be limited to the actual cost of the room at a group or government rate. In the event that a group or go vernment rate is not available, lodging rates that do not exceed the median price for lodging for that area and time period listed on travel websites like www.hotels.com, www.expedia.com or an equivalent service shall be eligible for reimbursement or advan cement. E. Meals 1. With No Conference Payments toward or reimbursement of meals related to authorized activities or events shall be at the Internal Revenue Service per diem rate for meals and incidental expenses for a given location, as stated by IRS publications 463 and 1542 and by the U.S. General Services Administration. The per diem shall be split among meals as reasonably desired and reduced accordingly for less than full travel days. If per diem is claimed, no receipts are necessary. Alternativel y, the actual cost of a meal can be claimed, within a standard of reasonableness, but receipts must be kept and submitted for the expense incurred. 2. As Part of a Conference When City personnel are attending a conference or other organized educational activi ty, they shall be reimbursed or advanced for meals not provided by the activity, on a per diem or actual cost basis. The per diem and actual cost rate shall follow the rules described in the meals with no conference paragraph. F. Other Expenses Payments toward or reimbursement of expenses at such functions shall be limited to the actual costs consistent with the application of reasonable standards. Other reasonable expenses related to business purposes shall be paid consistent with this policy. No payments shall be made unless, where available, receipts are kept and submitted for all expenses incurred. When receipts are not available, qualifying expenditures shall be reimbursed upon signing of an affidavit of expenditure. 5 No payment shall be made for any expenses incurred which are of a personal nature or not within a standard of reasonableness for the situation as may be defined by the Finance Department. G. Non -Reimbursable Expenses The City will not reimburse or advance payment to ward expenses including, but not limited to: 1. The personal portion of any trip; 2. Political or charitable contributions or events; 3. Family expenses, including those of a partner when accompanying the employee on City- related business, as well as child or pet-related expenses; 4. Entertainment expenses, including theatre, shows, movies, sporting events, golf, spa treatments, etc. 5. Gifts of any kind for any purpose; 6. Service club meals; 7. Alcoholic beverages; 8. Non-mileage personal automobile expenses including repairs, insurance, gasoline, traffic citations; and 9. Personal losses incurred while on City business. IV ATTENDANCE A. Budgetary Limitations Reimbursement or advances for expenses relative to conferences, meeting or training sessions shall not exceed the budgetary limitations. V. FUNDING A. Appropriation Policy It shall be the policy of the City to appropriate funds subject to availability of resources. B. Training Sessions 6 Payments toward or reimbursement of expenses incurred in attendance at training sessions, will be appropriated annually through the budget process. VI. DIRECT CASH ADVANCE POLICY From time to time, it may be necessary for a City employee to request a direct cash advance to cover anticipated expenses while traveling or doing business on the City's behalf. Such request for an advance should be submitted to their supervisor no less than seven days prior to the need for the advance with the following information: 1) Purpose of the expenditure; 2) The anticipated amount of the exp enditure (for example, hotel rates, meal costs, and transportation expenses); and 3) The dates of the expenditure. An accounting of expenses and return of any unused advance must be reported to the City within 30 calendar days of the employee's return on the expense report described in Section VII. VII. EXPENSE REPORT REQUIREMENTS All expense reimbursement requests or fina l accounting of advances received must be approved by their supervisor, on forms determined by the Finance Department, within 30 calendar days of an expense incurred, and accompanied by a business purpose for all expenditures and a receipt for each non - per diem item. Adopted by Action of the City Council July 1, 2010 Revised December 18, 2012 7 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 4 AUTOMOBILE ALLOWANCES AND MILEAGE REIMBURSEMENTS It is City of Cupertino policy that eligible persons under this Compensation Program shall be compensated fairly for the use of personal automotive vehicles on City business. In many instances the use of personal vehicles is a condition of employment due to the absence of suffici ent City owned vehicles for general transportation purposes. It is not intended, however, that such a condition of employment should work an undue hardship. For this reason, the following policies shall apply for mileage reimbursements. Those persons who occasionally are required to use their personal automobiles for City business shall be reimbursed for such use at an appropriate rate established by the City Council. Submission of reimbursement requests must be approved by the Department Head. Employees shall be paid an automobile allowance according to their employment contract with the City. Employees receiving automobile allowance shall be eligible for reimbursement for travel that exceeds two hundred miles round trip. Adopted by Action of the City Council July 1, 2010 Revised December 18, 2012 Revised October 20, 2015 8 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 5 ASSOCIATION MEMBERSHIPS AND PROFESSIONAL PUBLICATIONS It is City of Cupertino policy that eligible persons under this Compensation Program shall be entitled to City sponsored association memberships as well as receiving subscriptions to professional and technical publications. Such sponsorship, however, shall be conditioned upon the several factors as s et forth below. Each association for which membership is claimed must be directly related to the field of endeavor of the person to be benefited. Subscriptions to or purchase of professional and technical publications may be provided at City expense providing the subject matter and material generally contained therein are related to municipal governmental operations. Adopted by Action of the City Council July 1, 2010 Revised December 18, 2012 9 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 6 OVERTIME WORKED Management employees are ineligible for overtime payments for time worked in excess of what otherwise would be considered as a normal work day or work week for other employees. However, no deduc tion from leave balances are made when such an employee is absent for less than a regular work day as long as the employee has his/her supervisor's approval. Nothing in this policy precludes the alternative work schedule, which may include an absence of a full eight hour day, when forty hours have been worked in the same seven day work period. Adopted by Action of the City Council July 1, 2010 Revised December 18, 2012 10 City of Cupertino APPOINTED EMPLOYEES'COMPENSATION PROGRAM Policy No. 7 HEALTH BENEFITS PLAN - EMPLOYER CONTRIBUTION It is the policy of the City of Cupertino to provide group hospital and medical insurance under which employees in the City Manager and City Attorney positions and the ir dependents may be covered. The purpose of this program is to promote and preserve the health of employees and their families through comprehensive health plans available only through employer sponsorship. Although the premium cost for the insurance prov ided remains the ultimate responsibility of the employee in these positions, the City shall contribute the amounts listed below towards the premium or pay the full cost of the premium if less than the stated amounts. If the premium amounts for any employee covered by this policy are less than the amounts listed below per month, the difference between the premium amount and the stated amounts will be included in the employee's gross pay. The City will not pay medical insurance cash back (excess of the monthl y premium less the cost of the medical coverage). Medical Insurance Coverage Level City Contribution Employee 702.00 Employee + 1 762.00 Employee +2 802.00 Appointed employees in the City Manager and City Attorney positions will have immediate vesting of retiree medical benefits. Effective 11/1/13 or as soon as administratively possible, the City will establish a Health Reimbursement Account (HRA) to be used towards health related expenses. Upon establishment, the City will deposit an amount equal to $83.00/month from 7/1/13 to plan enactment. Thereafter, employees will receive $83.00/month in their HRA. Effective with the first full pay period in July 2014, employees will receive an additional $80.00/month in HRA to be used towards health related expen ses. During the 1314 contract year, the City will be reopening negotiations to discuss elimination of the CalPERS 100/90 retirement plan and replacement of said plan. Adopted by Action of the City Council July 1, 2010 Revised December 18, 2012, July 2013 11 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 8 FIXED HOLIDAYS It is the policy of the City of Cupertino to recognize days of historical and national significance as holidays of the City without loss of pay or benefits. Recognizing the desirable times throughout the year, it is the policy of the City of Cupertino to provide days off in lieu of holidays for management and confidential employees at such times as are convenient for each employee and supervisor, whe n such policy is compatible with the workload and schedule of the City. The City provides the following fixed paid holidays for eligible employees covered by this agreement: 1. New Year's Day 2. Martin Luther King Day 3. Presidents' Day 4. Memorial Day 5. Independence day 6. Labor Day 7. Veteran's Day 8. Thanksgiving Day 9. Day Following Thanksgiving 10. Christmas Eve 11. Christmas Day 12. New Year's Eve When a holiday falls on a Sunday, the following Monday shall be observed as the non -work day. When a holiday falls on a Saturday, the previous Friday shall be observed as the non -work day. FLOATING HOLIDAY In addition to the paid holidays, employees occupying these positions shall be provided 20 floating hours per calendar year as non-work time with full pay and benefits. Employees may accumulate floating holiday hours up to two times their annual accrual. Adopted by Action of the City Council July 1, 2010 Revised December 18, 2012, July 2013 12 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 9 LIFE AND LONG TERM DISABILITY INSURANCE It is the policy of the City of Cupertino to make available group insurance for the City Manager and City Attorney that will mitigate the personal and family financial hardships resulting from continuing disability that prev ents an employee from performing gainfully in his or her occupation. It is further the policy of the City of Cupertino to provide life insurance benefits in an amount of two and one half times the employee's annual salary to a maximum of $250,000.00. Adopted by Action of the City Council July 1, 2010 Revised December 18, 2012 13 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 10 DEFERRED COMPENSATION It is the policy of the City of Cupertino to provide equitable current compensation and reasonable retirement security for the City Manager and the City Attorney for services performed for the City. The City participates in the California Public Employees' Retirement System (PERS) and deferred compensation plans have been established. Both the employee and employer may make contributions from current earnings to these plans. The purpose of this policy is to promote means by which compensation may be provided in such manner and form to best meet the requirements of the City and the needs of individual employees, thereby increasing the ability, to attract and retain competent attorney employees. The City shall maintain and administer means by which employees in these positions may defer portions of th eir current earnings for future utilization. Usage of such plans shall be subject to such agreements, rules and procedures as are necessary to properly administer each plan. Employee contributions to such plans may be made in such amounts as felt proper an d necessary to the employee. Employer contributions shall be as determined by the City Council. Adopted by Action of the City Council July 1, 2010 Revised December 18, 2012 14 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 11 PUBLIC EMPLOYEES' RETIREMENT SYSTEM CONTRIBUTION A. Employees hired on or before December 29, 2012 Only: For employees hired on or before December 29, 2012, the City has contracted with CalPERS for a 2.7% @55 formula. Effective in the first full pay period in July 2013, the City agrees to pay the employee's contribution rate to the California Public Employees Retirement System (CalPERS) not to exceed 4.5% of applicable salary and each employee agrees to pay 3.5% of applicable salary. Effective in the first full pay period in July 2014, the City agrees to pay the employee's contribution rate to the California Public Employees Retirement System (CalPERS) not to exceed 3.0% of applicable salary and each employee agrees to pay 5.0% of applicable salary. Effective in the first full pay period in July 2015, the City agrees to pay the employee's contribution rate to the California Public Employees Retirement System (CalPERS) not to exceed 1.75% of applicable salary and each empl oyee agrees to pay 6.25% of applicable salary. The City agrees to pay the employer's contribution rate to the Public Employees Retirement System to the extent required by law and the par ties acknowledge that by January 1, 2018 the employees are required to pay 50% of the normal cost rate as determined by CalPERS. B. For Employees hired by the City of Cupertino on December 30, 2012 or December 31, 2012 or a current CalPERS employee who qualifies as a classic member under CalPERS Regulations Only: For Employees hired by the City of Cupertino on December 30, 2012 or December 31, 2012 or a current CalPERS employee who qualifies as a classic member under CalPERS Regulations only the City has contracted with CalPERS for a 2.0% @ 60 retirement formula, three year average compensation- Effective in the first full pay period in July 2013, the City agrees to pay the employee's contribution rate to the California Public Employees Retirement System (CalPERS) not to exceed 3.5 % of applicable salary and each employee agrees to pay 3.5% of applicable salary. Effective in the first full pay period in July 2014, the City agrees to pay the employee's contribution rate to the California Public Employees Retirement System (CalPERS) not to exceed 2.0 % of applicable salary and each employee agrees to pay 5.0% of applicable salary. 15 Effective in the first full pay period in July 2015, the City agrees to pay the employee's contribution rate to the California Public Employees Retirement System (CalPERS) not to exceed .75 % of applicable salary and each employee agrees to pay 6.25% of applicable salary. The City agrees to pay the employer's contribution rate to the Public Employees Retirement System to the extent required by law and the parties acknowledge that by January 1, 2018 the employees are required to pay 50% of the normal cost rate as determined by CalPERS. C. For new employees hired by the City of Cupertino on or after January 1, 2013 and do not qualify as Classic members Only: For new employees hired by the City of Cupertino on or after January 1, 2013 and do not qualify as classic members as defined by CalPERS, CalPERS has by statute implemented a 2% @ 62 formula, three year average and employees in this category shall pay 50% of the normal cost rate as determined by CalPERS. Adopted by Action of the City Council July 1, 2010 Revised October 2, 2012; December 18, 2012, July 2013 16 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 12 DENTAL INSURANCE - EMPLOYER CONTRIBUTION It is the policy of the City of Cupertino to provide dental insurance under which employees in the City Manager and City Attorney positions and their dependents may be covered. The purpose of this program is to promote and preserve the health of employees. The premium cost for the insurance provided by the City shall not exceed $78.26 per month per employee. Enrollment in the plan or plans made available pursuant to this policy shall be in accordance with Personnel Rules of the City and the provisions of the contract for such insurance between the City and carrier or carriers. Adopted by Action of City Council July 1, 2010 Revised October 2, 2012; December 18, 2012 17 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 13 ADMINISTRATIVE LEAVE The City Manager and City Attorney shall receive forty (40) hours of administrative leave with pay per year. Employees may accumulate administrative leave hours up to their annual accrual. Employees shall be eligible to convert administrative leave hours to pay one time each calendar year. Adopted by Action of the City Council July 1, 2010 Revised December 18, 2012 18 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 14 EMPLOYEE ASSISTANCE PROGRAM It is the policy of the City of Cupertino to provide an Employee Assistance Program for the benefit of the City Manager and the City Attorney and their eligible dependents. The purpose of this program is to provide professional assistance and counseling concerning financial, legal, pre -retirement, and other matters of a personal nature. Adopted by Action of the City Council July 1, 2010 Revised December 18, 2012 19 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 15 PUBLIC SERVICE CREDIT — VACATION ACCUMULATION The City Manager and the City Attorney shall earn vacation hours under the same vacation accumulation schedule as all other employees. Credit shall be provided for previous public sector service time on a year -for -year basis as to annual vacation accumulation. Credit shall only be given for completed years of service. Public service credit shall not apply to any other supplemental benefit. Employee(s) affected by this policy will have the responsibility of providing certification as to previous public sector service. Adopted by Action of the City Council July 1, 2010 Revised December 18, 2012 20 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 16 HOUSING ASSISTANCE PROGRAM Housing assistance may be offered to the City Manager and the City Attorney pursuant to Resolution No. 15-092 as amended. Adopted by Action of the City Council July 1, 2010 Revised December 18, 2012 Revised October 20, 2015 21 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM Policy No. 17 VISION INSURANCE — EMPLOYER CONTRIBUTION It is the policy of the City of Cupertino to provide vision insurance under which employees and their dependents may be covered. The purpose of this program is to promote and preserve the health of employees. The premium cost for the insurance provided by the City s hall not exceed $14.94 per month per employee. Enrollment in the plan or plans made available pursuant to this policy shall be in accordance with the provisions of the contract between the City and carrier or carriers providing vision insurance coverage, Adopted by Action of the City Council July 1, 2010 Revised October 2, 2012; December 18, 2012 22 City of Cupertino APPOINTED EMPLOYEES' COMPENSATION PROGRAM EXEMPT POSITIONS The salaries, wages, or rates of pay for City Attorney and City Manager employees whose positions are exempt under the provisions of the Cupertino Municipal Code, are set forth below. Only the City Council can modify these rates. Salary Effective July 1, 2013 Classification Step 1 Step 2 Step 3 Step 4 Step 5 City Manager $0 $0 $0 $0 $17,822 City Attorney $0 $0 $0 $0 $18,679 Salary Effective August 26, 2013 Classification Step 1 Step 2 Step 3 Step 4 Step 5 City Manager $0 $0 $0 $0 $18,333 Salary Effective December 17, 2013 Classification Step 1 Step 2 Step 3 Step 4 Step 5 City Attorney $0 $0 $0 $0 $20,468 Salary Effective July 1, 2014 Classification Step 1 Step 2 Step 3 Step 4 Step 5 City Manager $0 $0 $0 $0 $18,608 City Attorney $0 $0 $0 $0 $20,775 Salary Effective October 7, 2014 Classification Step 1 Step 2 Step 3 Step 4 Step 5 City Attorney $0 $0 $0 $0 $21,075 Salary Effective October 21, 2014 Classification Step 1 Step 2 Step 3 Step 4 Step 5 City Manager $0 $0 $0 $0 $20,000 23 Salary Effective April 7, 2015 Classification Step 1 Step 2 Step 3 Step 4 Step 5 City Attorney $0 $0 $0 $0 $22,129 Salary Effective July 1, 2015 Classification Step 1 Step 2 Step 3 Step 4 Step 5 City Manager $0 $0 $0 $0 $20,250 City Attorney $0 $0 $0 $0 $22,406 Salary Effective November 1, 2015 Classification Step 1 Step 2 Step 3 Step 4 Step 5 City Manager $0 $0 $0 $0 $21,262.50 City Attorney $0 $0 $0 $0 $17,850 24 City of Cupertino Listing of Appointed Classifications by Salary Rate or Pay Grades Effective July 1, 2013 23 CITY OF CUPERTINO APPOINTED EMPLOYEES' COMPENSATION PROGRAM EXEMPT POSITIONS EFFECTIVE NOVEMBER 1, 2015 The salaries, wages or rates of pay for City Attorney and City Manager those attorney employees whose positions are exempt under the provisions of the Cupertino Municipal Code, are set forth below. Only the City Council can modify these rates. Salary Effective July 1, 2013 Classification Step 1 Step 2 Step 3 Step 4 Step 5 City Manager $0 $0 $0 $0 $17,822 City Attorney $0 $0 $0 $0 $18,679 Salary Effective July 1, 2014 Classification Step 1 Step 2 Step 3 Step 4 Step 5 City Attorney $0 $0 $0 $0 $18,959 City Manager $0 $0 $0 $0 $18,196 Salary Effective July 1, 2015 Classification Step 1 Step 2 Step 3 Step 4 Step 5 City Attorney $0 $0 $0 $0 $19,196 City Manager $0 $0 $0 $0 $18,560 Salary Effective November 1, 2015 Classification Step 1 Step 2 Step 3 Step 4 Step 5 City Attorney $0 $0 $0 $0 AMOUNT APPROVED IN CONTRACT City Manager $0 $0 $0 $0 $18,560 *By contract, rates as of 7/1/13 Salary Effective August 26, 2013 Classification Step 1 Step 2 Step 3 Step 4 Step 5 City Manager $0 $0 $0 $0 $18,333 23 Salary Effective December 17, 2013 Classification Step 1 Step 2 Step 3 Step 4 Step 5 City Attorney $0 $0 $0 $0 $20,468 Salary Effective July 1, 2014 Classification Step 1 Step 2 Step 3 Step 4 Step 5 City Manager $0 $0 $0 $0 $18,608 City Attorney $0 $0 $0 $0 $20,775 Salary Effective October 7, 2014 Classification Step 1 Step 2 Step 3 Step 4 Step 5 City Attorney $0 $0 $0 $0 $21,075 Salary Effective October 21, 2014 Classification Step 1 Step 2 Step 3 Step 4 Step 5 City Manager $0 $0 $0 $0 $20,000 Salary Effective April 7, 2015 Classification Step 1 Step 2 Step 3 Step 4 Step 5 City Attorney $0 $0 $0 $0 $22,129 Salary Effective July 1, 2015 Classification Step 1 Step 2 Step 3 Step 4 Step 5 City Manager $0 $0 $0 $0 $20,250 City Attorney $0 $0 $0 $0 $22,406 Salary Effective November 1, 2015 Classification Step 1 Step 2 Step 3 Step 4 Step 5 City Attorney $0 $0 $0 $0 $17,850.00 City Manager $0 $0 $0 $0 $21,262.50 24 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:115-1201 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:11/3/2015 City Council On agenda:Final action:11/17/2015 Title:Subject: Amendment to an existing consultant services agreement with David J. Powers and Associates for environmental review for a Specific Plan and project in the Vallco Shopping District Planning Area for a total contract in the amount of $919,245, and authorization for further amendments. Sponsors: Indexes: Code sections: Attachments:Staff Report A - Amendment #2 B - Contract & Amendment #1 Action ByDate Action ResultVer. City Council11/17/2015 1 Subject:Amendment to an existing consultant services agreement with David J.Powers and Associates for environmental review for a Specific Plan and project in the Vallco Shopping District Planning Area for a total contract in the amount of $919,245,and authorization for further amendments. 1.Authorize an amendment to the existing “Agreement between the City of Cupertino and David J.Powers &Associates,Inc for the CEQA Environmental Review for the Vallco Specific Plan Redevelopment Project”consultant services agreement with David J.Powers and Associates,Inc.(DJP&A)for preparation of an Environmental Impact Report (EIR)for the Council’s consideration,for an additional amount not to exceed $164,940,for a total cost of $919,245. (Attachment A). 2.Authorize the City Manager to negotiate and execute additional future amendments to Item 1 above to the extent that funds are appropriated for the amendments and the total expenditures are cost-recovered from the applicant. 3.Approve an increase to the Fiscal Year 2015-16 Planning and Community Development- Mid to Long Term Planning program budget of $181,434 ($164,940 plus 10% administrative fee) CITY OF CUPERTINO Printed on 11/10/2015Page 1 of 1 powered by Legistar™ 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: November 17, 2015 Subject Amendment to an existing consultant services agreement with David J. Powers and Associates for environmental review for a Specific Plan and project in the Vallco Shopping District Planning Area for a total contract in the amount of $919,245, and authorization for further amendments. Recommended Action Staff recommends that the City Council: 1. Authorize an amendment to the existing “Agreement between the City of Cupertino and David J. Powers & Associates, Inc for the CEQA Environmental Review for the Vallco Specific Plan Redevelopment Project” consultant services agreement with David J. Powers and Associates, Inc. (DJP&A) for preparation of an Environmental Impact Report (EIR) for the Council’s consideration, for an additional amount not to exceed $164,940, for a total cost of $919,245. (Attachment A). 2. Authorize the City Manager to negotiate and execute additional future amendments to Item 1 above to the extent that funds are appropriated for the amendments and the total expenditures are cost-recovered from the applicant. 3. Approve an increase to the Fiscal Year 2015-16 Planning and Community Development-Mid to Long Term Planning program budget of $181,434 ($164,940 plus 10% administrative fee). Discussion On June 16, 2015, the City Council authorized initiation of a $754,305 contract for the preparation of an Environmental Impact Report (EIR) for the Vallco Shopping District Specific Plan and a future development project on the portion owned by Sand Hill property Company. Upon the City Council’s authorization, a contract was executed with DJP&A in June 2015 (Attachment B). A subsequent amendment was made to one of the clauses of the original contract in September 2015 (See Attachment B). On September 8, 2015, Sand Hill Property Company submitted development applications for the approximately 50 acre Hills at Vallco project. Plans are available online at: www.cupertino.org/vallco. The total contract amount for preparation of the EIR with DJP&A has to be increased by $164,940, for a total cost of $919,245, in order to include additional work to study 15 additional study intersections and additional analysis of environmental alternatives and background conditions. In keeping with the City’s policy, the applicant will provide funds for full cost-recovery plus a 10% fee ($16,494) for city administrative costs. It is recommended that the City Manager be authorized to negotiate and execute any future amendments to the approved contract so long as the costs associated with provision of environmental review services are recovered 100% from the applicant through project completion. Sustainability Impact None Fiscal Impact The contract costs and associated administrative costs exceed the current budget for the project by $181,434; therefore, the Planning and Community Development – Mid to Long Range program budget has to be increased by the difference. Cost associated with this contract, and any future amendments, will be 100% recovered. The City will receive a 10% fee for administrative overhead for managing the contract. This will result in additional expenditures of $164,940 and additional revenue to the General Fund of $181,434. There will be a net positive fiscal impact to the General Fund in the amount of $16,494 (10% of the contract amount.) _____________________________________ Prepared by: Geoff Bradley, Consulting Planner, Principal, M-Group Piu Ghosh, Senior Planner Reviewed by: Aarti Shrivastava, Assistant City Manager Approved for Submission by: David Brandt, City Manager Attachments: A. October 29, 2015 Consultant Budget Amendment B. June 17, 2015 Consultant Agreement with DJP&A and September 22, 2015 first amendment. SECOND AMENDMENT TO AGREEMENT BETWEEN THE CITY OF CUPERTINO AND DAVID J POWERS & ASSOCIATES, INC, FOR THE CEQA ENVIRONMENTAL REVIEW FOR THE VALLCO SPECIFIC PLAN REDEVELOPMENT PROJECT This Second Amendment to the Agreement between the City of Cupertino and David J. Powers & Associates, Inc, fo r reference dated November 18, 2015, is by and between the CITY OF CUPERTINO, a municipal corporation (hereinafter "City") and David J. Powers & Associates, Inc. a California Corporation (“Consultant”) whose address is 1871 The Alameda, Suite 200, San Jose, California, 95126, and is made with reference to the following: RECITALS: A. On June 17, 2015, an agreement was entered into by and between City and Consultant (hereinafter "Agreement") for the CEQA environmental review for the Vallco specific plan redevelopment project. B. City and Consultant desire to modify the Agreement on the terms and conditions set forth herein. NOW, THEREFORE, it is mutually agreed by and between and undersigned parties as follows: 1. Paragraph 3 of the Agreement is modified to read as follows: COMPENSATION TO CONSULTANT The Comp ensation section of the Agreement shall be increase by this amendment in the amount not to exceed $164,940, for a total contract amount not to exceed $919,245. 2. Additional services to be performed include the additional scope of work described in Exhibit A, which is attached to this Amendment : a. Exhibit “A”- Additional Scope of Work 3. Except as expressly modified herein, all other terms and covenants set forth in the Agreement shall remain the same and shall be in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this modification of Agreement to be executed. CONSULTANT CITY OF CUPERTINO A Municipal Corporation By By: Title Title Date RECOMMENDED FOR APPROVAL: By: Title APPROVED AS TO FORM: City Attorney ATTEST: City Clerk EXPENDITURE DISTRIBUTION ACCOUNT NUMBER AMOUNT PO #2015-513 , Acct #100-71-702 900-939 Original Contract: $754,305.00 Amendment #1 (legal wording only) $0.00 Amendment #2 $164,940.00 Total: $919,245.00 October 29, 2015 Piu Ghosh, Senior Planner Community Development Department City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 Sent Via Email: piug@cupertino.org RE: Vallco Specific Plan Redevelopment Project – Contract Amendment #2 Dear Ms. Ghosh: I am writing to request an amendment to our existing contract for the Vallco Specific Plan Redevelopment project (PO#2015-513) to complete additional transportation tasks. Based on recent discussions, the City would like us to: •Add 15 study intersections to the Transportation Impact Analysis (TIA) scope of work; •Complete full level of service (LOS) analysis at all 55 study intersections and freeway LOS analysis for up to EIR four project alternatives under Existing, Background, and Cumulative conditions; and •Analyze a background condition that assumes historic occupancy of the mall. In addition, given the complexity of the TIA scope of work, additional meeting attendance by Fehr & Peers is required. We did not anticipate these additional tasks in our original scope of work. (Note that our original scope of work included Fehr & Peers attendance at only six project team meetings.) Substantial coordination between Fehr & Peers, the City, and us has been required thus far regarding the scope, assumptions, and analysis for the TIA. This contract amendment request is for Fehr & Peers to complete the above described work, as well as David J. Powers & Associates, Inc. time to coordinate and review the additional transportation analysis and analyze four project alternatives in detail in the Draft EIR. We anticipate the completion of this additional work will require $164,940. This would bring our total contract amount for this project from $754,305 to $919,245. A breakdown of the contract amendment request is provided below. 1 1871 The Alameda • Suite 200 • San José, CA 95126 • Tel: 408-248-3500 • Fax: 408-248-9641 • www.davidjpowers.com Exhibit A Existing Contract $754,305 Contract Amendment Request • DJP&A in-house coordination and review additional transportation tasks and analysis of four project alternatives in detail ($50,400) • Fehr & Peers analysis of 15 additional study intersections including traffic counts at 10 of the intersections, full LOS analysis of four project alternatives at all study intersections and freeway segments, analysis of additional background condition, analysis of a background condition that assumes historic occupancy of the mall, and attendance at 20 additional project team meetings ($114,540) $164,940 TOTAL CONTRACT (Existing Contract + Contract Amendment Request) $919,245 Note: Subconsultant costs include a 10 percent administrative fee. If this amendment is acceptable to you, written authorization or an amendment to our Purchase Order (#2015-513) will serve as our binding legal agreement for the additional services described above and our authorization to invoice for this additional work. Please contact me or Kristy Weis (408- 454-3428, kweis@davidjpowers.com) if you have any questions about this proposal or need additional information. Sincerely, John Schwarz Principal Project Manager/Vice President (408) 454-3425 jschwarz@davidjpowers.com Project # 15-033 2 1871 The Alameda • Suite 200 • San José, CA 95126 • Tel: 408-248-3500 • Fax: 408-248-9641 • www.davidjpowers.com '·--- AGREEMENT BETWEEN THE CITY OF CUPERTINO AND DAVID J POWERS & ASSOCIATES, INC FOR THE CEQA ENVIRONMENTAL REVIEW FOR THE VALLCO SPECIFIC PLAN REDEVELOPMENT PROJECT THIS AGREEMENT, is entered into this 17th day of June, 2015, by and between the CITY OF CUPERTINO, a California municipal corporation ("City"), and David J Powers & Associates, Inc, a California Corporation whose address is 1871 The Alameda, Suite 200, San Jose, California 95126, (hereinafter referred to as "Consultant") (collectively referred to as the "Parties"). RECITALS: A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the Constitution and the statutes of the State of California and the Cupertino Municipal Code. B. Consultant is specially trained, experienced and competent to perform the special services which will be required by this Agreement. C. Consultant possesses the skill, experience, ability, background, certificatiQn and knowledge to provide the services described in this Agreement on the terms and conditions described herein. D. · City and Consultant desire to enter into an agreement for environmental review for the Vallco Specific Plan Redevelopment project upon the terms and conditions herein. NOW, THEREFORE, the Parties mutually agree as follows: I. TERM The term of this Agreement shall commence on June 17, 2015, and shall terminate on December 31, 2016, unless terminated earlier as set forth herein. 2. SERVICES TO BE PERFORMED Consultant shall perform each and every service set forth in Exhibit "A" attached hereto and incorporated herein by this reference. 3. COMPENSATION TO CONSULTANT For tasks performed during the contract term, Consultant shall be compensated for ;f services performed pursuant to this Agreement in a total amount not to exceed SEVEN /J J/ , HUNDRED AND FIFTY FOUR THOUSAND, THREE HUNDRED AND FIVE dollars 7 - ($754,305.00) based on the rates and terms set forth in Exhibit "A," which is attached hereto and.incorporated herein by this reference. 4. TIME IS OF THE ESSENCE Consultant and City agree that time is of the essence regarding the performance of this Agreement. Page 1of10 OOP&A, :rnc -Val1co EI:R Contract, 6-17-15 5. STANDARD OF CARE Consultant agrees to perform all services required by this Agreement in a manner commensurate with the prevailing standards of like professionals in the San Francisco Bay Area and agrees that all services shall be performed by qualified and experienced personnel who are not employed by the City nor have any contractual relationship with City. 6. INDEPENDENT PARTIES City and Consultant intend that the relationship between them created by this Agreement is that of an independent contractor. The manner and means of conducting the work are under the control of Consultant, except to the extent they are limited by statute, rule or regulation and the express terms of this Agreement. No civil service status or other right of employment will be acquired by viitue of Consultant's services. None of the benefits provided by City to its employees, including but not limited to, unemployment insurance, workers' compensation plans, vacation and sick leave are available from City to Consultant, its employees or agents. Deductions shall not be made for any state or federal taxes, FICA payments, PERS payments, or other purposes normally associated with an employer-employee relationship from any fees due Consultant. Payments of the above items, if required, are the responsibility of Consultant. 7. IMMIGRATION REFORM AND CONTROL ACT (IRCA) Consultant assumes any and all responsibility for verifying the identity and employment authorization of all of his/her employees performing work hereunder, pursuant to all applicable IRCA or other federal, or state rules and regulations. Consultant shall indemnify and hold City harmless from and against arty loss, damage, liability, costs or expenses arising from any noncompliance of this provision by Consultant. 8. NON-DISCRIMINATION Consistent with City's policy prohibiting harassment and discrimination, Consultant agrees that it shall not harass or discriminate against a job applicant, a City employee, or a citizen by Consultant or Consultant's employee or subcontractor on the basis of race, religious creed, color, national origin, ancestry, handicap, disability, marital status, pregnancy, sex, age, sexual orientation, or any other protected class. Consultant agrees that any and all violations of this provision shall constitute a material breach of this Agreement. 9. HOLD HARMLESS Standard Indemnification: Consultant shall, to the fullest extent allowed by law and without limitation of the provisions of this Agreement related to insurance, with respect to all services performed in connection with the Agreement, indemnify, defend, and hold harmless the City and its officers, officials, agents, employees and volunteers from and against any and all liability, claims, actions, causes of action or demands whatsoever against any of them, including any injury to or death of any person or damage to prope1ty or other liability of any nature, whether physical, emotional, consequential or otherwise, arising out, pertaining to, or related to the performance of this Agreement by Consultant or Consultant's employees, officers, officials, agents or independent contractors. Such costs and expenses shall Page 2 oflO DJP&A, Inc -Vallee BIR Contract, 6-17-15 include reasonable attorneys' fees of counsel of City's choice, expert fees and all other costs and fees of litigation. The acceptance of the Services by City shall not operate as a waiver of the right of indemnification. The provisions of this Section survive the completion of the Services or termination of this Contract. 10. INSURANCE: A. General Requirements. On or before the commencement of the tertn of this Agreement, Consultant shall furnish City with ce1iificates showing the type, amount, class of operations covered, effective dates and dates of expiration of insurance coverage in compliance with the requirements listed in Exhibit "B". Such certificates, which do not limit Consultant's indenmification, shall also contain substantially the following statement: "Should any of the above insurance covered by this certificate be canceled or coverage reduced before the expiration date thereof, the insurer affording coverage shall provide thi1iy (30) days' advance written notice to the City of Cupertino by ce1iified mail, Attention: City Manager." Consultant shall maintain in force at all times during the performance of this Agreement all appropriate coverage of insurance required by this Agreement with an insurance company that is acceptable to City and licensed to do insurance business in the State of California. Endorsements naming the City as additional insured shall be submitted with the insurance certificates. B. Subrogation Waiver. Consultant agrees that in the event of loss due to any of the perils for which he/she has agreed to provide comprehensive general and · automotive liability insurance, Consultant shall look solely to his/her insurance for recovery. Consultant hereby grants to City, on behalf of any insurer providing comprehensive general and automotive liability insurance to either Consultant or City with respect to the services of Consultant herein, a waiver of any right to subrogation which any such insurer of said Consultant may acquire against City by virtue of the payment of any loss under such insurance. C. Failure to secure or maintain insurance. If Consultant at any time during the term hereof should fail to secure or maintain the foregoing insurance, City shall be permitted to obtain such insurance in the Consultant's name or as an agent of the Consultant and shall be compensated by the Consultant for the costs of the insurance premiums at the maximum rate permitted by law and computed from the date written notice is received that the premiums have not been paid. D. Additional Insured. City, its City Council, boards and commissions, officers, employees and volunteers shall be named as an additional insured under all insurance coverages, except any professional liability insurance, required by this Agreement. The naming of an additional insured shall not affect any recovery to which such additional insured would be entitled under this policy if not named as such additional insured. An additional insured named herein shall not be held liable for any premium, deductible portion of any loss, or expense of any nature on this policy or any extension thereof. Any other insurance held by an additional insured shall not be required to contribute anything toward any loss or expense covered by the insurance provided by this policy. E. Sufficiency of Insurance. The insurance liniits required by City are not represented as being sufficient to protect Consultant. Consultant is advised to confer with Consultant's insurance broker to determine adequate coverage for Consultant. F. Maximum Coverage and Limits. It shall be a requirement under this Page3of10 DJl'&A, Inc -Vallco EIR Contract, 6-17-15 '~ ~-- Agreement that any available insurance proceeds broader than or in excess of the specified minimum Insurance coverage requirements and/or limits shall be available to the additional insured City. Furthermore, the requirements for coverage and limits shall be the minimum coverage and limits specified in this Agreement, or the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the named insured, whichever is greater. 11. CONFLICT OF INTEREST Consultant warrants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, that would conflict in any way with the performance of this Agreement, and that it will not employ any person having such an interest. Consultant agrees to advise City immediately if any conflict arises and understands that it may be required to fill out a conflict of interest form if the services provided under this Agreement require Consultant to make certain governmental decisions or serve in a staff capacity as defined in Title 2, Division 6, Section 18700 of the California Code of Regulations. 12. PROHIBITION AGAINST TRANSFERS Consultant shall not assign, sublease, hypothecate, or transfer this Agreement, or any interest therein, directly or indirectly, by operation of law or otherwise, without prior written consent of City. Any attempt to do so without said consent shall be null and void, and any assignee, sublessee, hypothecate or transferee shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer. However, claims for money by Consultant from City under this Agreement may be assigned to a bank, trust company or other financial institution without prior written consent. Written notice of such assignment shall be promptly furnished to City by Consultant. The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Consultant, or of the interest of any general partner or joint venturer or syndicate member or cotenant, if Consultant is a partnership or joint venture or syndicate or cotenancy, which shall result in changing the control of Consultant, shall be construed as an assignment of this Agreement. Control means fifty percent (50%) or more of the voting power of the corporation. 13. SUBCONTRACTOR APPROVAL Unless prior written consent from City is obtained, only those people and subcontractors whose names and resumes are attached to this Agreement shall by used in the perfonnance of this Agreement. In the event that Consultant employs subcontractors, such subcontractors shall be required to furnish proof of workers' compensation insurance and shall also be required to carry general, automobile and professional liability insurance in reasonable conformity to the insurance carried by Consultant. In addition, any work or services subcontracted hereunder shall be subject to each provision of this Agreement. Consultant agrees to include with all subcontractors in their subcontract the same requirements and provisions of this Agreement including the indenmity and insurance requirements to the extent they apply to the scope of the subcontractor's work. Subcontractors hired by Consultant agree to be bound to Consultant and City in the same manner and to the same extent as Consultant is bound to City under this Agreement. Page 4 oflO DJP&<A, Inc -Vallco EIR Contract, 6-17-15 I_ \--- Subcontractor further agrees to include these · same prov1s10ns with any sub- subcontractor. A copy of the Owner Contract Document Indemnity and Insurance provisions will be furnished to the subcontractor upon request. Consultant shall require all subcontractors to provide a valid ce1tificate of insurance and the required endorsements included in the agreement prior to commencement of any work and will provide proof of compliance to City. 14. PERMITS AND LICENSES Consultant, at his/her sole expense, shall obtain and maintain during the term of this Agreement, all appropriate pennits, certificates and licenses including, but not limited to, a City Business License, that may be required in connection with the perfonnance of services hereunder. 15. REPORTS A. Each and every report, draft, work product, map, record and other document, hereinafter collectively referred to as "Report", reproduced, prepared or caused to be prepared by Consultant pursuant to or in connection with this Agreement, shall be the exclusive property of City. Consultant shall not copyright any Report required by this Agreement and shall execute appropriate documents to assign to City the copyright to Reports created pursuant to this Agreement. Any Report, infmmation and data acquired or required by this Agreement shall become the property of City, and all publication rights are reserved to City. Consultant may retain a copy of any report furnished to the City pursuant to this Agreement. B. All Reports prepared by Consultant may be used by City in execution or implementation of: (1) The original Project for which Consultant was hired; (2) Completion of the original Project by others; (3) Subsequent additions to the original project; and/or ( 4) Other City projects as City deems appropriate. C. Consultant shall, at such time and in such form as City may require, furnish reports concerning the status of services required under this Agreement. D. All Reports required to be provided by this Agreement shall be printed on recycled paper. All Reports shall be copied on both sides of the paper except for one original, which shall be single sided. E. No Report, infmmation or other data given to or prepared or assembled by Consultant pursuant to this Agreement shall be made available to any individual or organization by Consultant without prior approval by City. 16. RECORDS Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts and other such information required by City that relate to the performance of services under this Agreement, in sufficient detail to pe1mit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to such books and records to the representatives of City or its designees at all proper times, and gives City the right to examine and audit same, and to make transcripts therefrom as necessary, and to allow inspection of all work, data, documents, proceedings and activities related to this Agreement. Such records, together with supporting documents, shall be kept separate from other documents and records and Page 5of10 DJP&A, Inc -Vallco BIR Contract, 6-17-15 i~ shall be maintained for a period of three (3) years after Consultant receives final payment from City for all services required under this agreement. If supplemental examination or audit of the records is necessary due to concerns raised by City's preliminary examination or audit of records, and the City's supplemental examination or audit of the records discloses a failure to adhere to appropriate internal financial controls, or other breach of contract or failure to act in good faith, then Consultant shall reimburse City for all reasonable costs and expenses associated with the supplemental examination or audit. 17. NONAPPROPRIATION This Agreement is subject to the fiscal provisions of the Cupertino Municipal Code and Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. 18. ENVIRONMENTALLY PREFERABLE PURCHASING Consultant shall comply with the City's Environmentally Preferable Procurement Policy whenever practicable in completing any work under this agreement, including but not limited to: • Using paper products made with recycled content and recycled/remanufactured toner and inkjet cartridges; • Printing with soy or low volatile organic compounds (VOC) inks; • Using energy-star compliant equipment; • Using cleansers and working with janitorial contractors to meet Green Seal's Industrial and Institutional Cleaners Standard; and • Ordering supplies electronically and practicing other internal waste reduction and reuse protocols. 19. NOTICES All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be deemed served when delivered personally or on the second business day after the deposit thereof in the United States Mail, postage prepaid, registered or ce11ified, addressed as hereinafter provided. All notices, demands, requests, or approvals shall be addressed as follows: TO CITY: City of Cupe11ino 10300 To!Te Ave. Cupertino CA 95014 Attention: Aarti Shrivastava, Assistant City Manager Page6of10 DJP&A, Inc -vallco EIR Contract, 6-1-?-15 TO CONSULTANT: David J Powers & Associates, Inc. John Schwarz, Principal Project Manager/Vice President 1871 The Alameda, Suite 200 San Jose, CA 95126 20. TERMINATION In the event Consultant fails or refuses to perform any of the provisions hereof at the time and in the manner required hereunder, Consultant shall be deemed in default in the performance of this Agreement. If Consultant fails to cure the default within the time specified and according to the requirements set forth in City's written notice of default, and in addition to any other remedy available to the City by law, the City Manager may terminate the Agreement by giving Consultant written notice thereof, which shall be effective immediately. The City Manager shall also have the option, at its sole discretion and without cause, of terminating this Agreement by giving seven (7) calendar days' prior written notice to Consultant as provided herein. Upon receipt of any notice of termination, Consultant shall immediately discontinue perfonnance. City shall pay Consultant for services satisfactorily performed up to the effective date of termination. If the termination if for cause, City may deduct from such payment the amount of actual damage, if any, sustained by City due to Consultant's failure to perform its material obligations under this Agreement. Upon termination, Consultant shall immediately deliver to the City any and all copies of studies, sketches, drawings, computations, and other material or products, whether or not completed, prepared by Consultant or given to Consultant, in connection with this Agreement. Such materials shall become the property of City. 21. COMPLIANCE Consultant shall comply with all state or federal laws and all ordinances, rules, policies and regulations enacted or issued by City. 22. CONFLICT OF LAW This Agreement shall be interpreted under, and enforced by the laws of the State of California excepting any choice of law rules which may direct the application of laws of another jurisdiction. The Agreement and obligations of the parties are subject to all valid laws, orders, rules, and regulations of the authorities having jurisdiction over this Agreement (or the successors of those authorities). Any suits brought pursuant to this Agreement shall be filed with the Superior Court of the County of Santa Clara, State of California. 23. ADVERTISEMENT Consultant shall not post, exhibit, display or allow to be posted, exhibited, displayed any signs, advertising, show bills, lithographs, posters or cards of any kind pe1taining to the services perfonned under this Agreement unless prior written approval has been secured from City to do otherwise. Page 7of10 DJP&A, Inc -Vall co EIR Contract, 6 -17 -ls 24. WAIVER A waiver by City of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein, whether of the same or a different character. 25. INTEGRATED CONTRACT This Agreement represents the full and complete understanding of eve1y kind or nature whatsoever between the Parties, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions hereof. Any modification of this Agreement will be effective only by written execution signed by both City and Consultant. 26. AUTHORITY The individual(s) executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. 27. INSERTED PROVISIONS Each provision and clause required by law to be inserted into the Agreement shall be deemed to be enacted herein, and the Agreement shall be read and enforced as though each were included herein. If through mistake or otherwise, any such provision is not inserted or is not correctly inserted, the Agreement shall be amended to make such insertion on application by either party. 28. CAPTIONS AND TERMS The captions in this Agreement are for convenience only, are not a part of the Agreement and in no way affect, limit or amplify the terms or provisions of this Agreement. All unchecked boxes do not apply to this Agreement. IN WITNESS WHEREOF, the parties have caused the Agreement to be executed. CONSULTANT David J Powers & Associates, Inc. ~hi~!~ Date 7/p./1.S- CITY OF CUPERTINO DJP&A, Inc -Vallco EIR Contract, 6-17-15 A Municipal Corporation By Title Date -k~--=-----=-­ council Authoiization June 16, 2015 APPROVED AS TO FORM: Page 8of10 '~ Ci<kfilt( ~ATTEST: Exhibits: Exhibit "A"-Scope of Services, Schedule of Performance and Compensation Exhibit "B" -Insurance Requirements and Proof of Insurance EXPENDITURE DISTRIBUTION ACCOUNT NUMBER AMOUNT PO #2015-513 Contract Amount $754,305.00 Account number: 100-71-702-900-939 Total: $754,305.00 Page 9of10 DJP&A, Inc -vallco 1nR Contract, 6 -1 7 -15 I~ CONTRACT Exhibit B Insurance Requirements and Proof of Insurance Proof of insurance coverage described below is attached to this Exhibit, with City named as additional insured. Consultant shall maintain the following minimum insurance coverage: A. COVERAGE: (1) Workers' Compensation: Statutory coverage as required by the State of California. (2) Liability: Commercial general liability coverage in the following minimum limits: Bodily Injury: $500,000 each occurrence $1,000,000 aggregate -all other Property Damage: $100,000 each occurrence $250,000 aggregate If submitted, combined single limit policy with aggregate limits in the amounts of $1,000,000 will be considered equivalent to the required minimum limits shown above. (3) Automotive: Comprehensive automotive liability coverage in the following minimum limits: Bodily Injury: $500,000 each occurrence Property Damage: $100,000 each occurrence or Combined Single Limit: $500,000 each occurrence (4) Professional Liability Professional liability insurance which includes coverage for the professional acts, errors and omissions of Consultant in the amount of at least $1,000,000. 10 Cupellino Sl.n<h1rd form Coolract·"pdolcd 212015 \_ ==E DAVIDJ.POWERS Exhibit A B~~ June 9, 2015 Piu Ghosh, Senior Planner Community Development Department City of Cupertino 10300 Torre Avenue Cupe1tino, CA 95014 RE: Valko Specific Plan Redevelopment Project -CEQA Proposal Dear Ms. Ghosh: David Powers & Associates (DJP&A) is pleased to offer this scope of work to complete California Enviromnental Quality Act (CEQA) enviromnental review for the proposed Vallco Redevelopment project. The approximately 58-acre project site is located on the west and east sides of Wolfe Road north of Stevens Creek Boulevard and south oflnterstate 280 (I-280) in northeast Cupertino. The applicant (Sand Hill Property Company) proposes to redevelop the site with a mix of residential, retail, and office uses. The project will also include above-and below-grade parking. Based on a review of the General Plan Update scenarios for the Vallco Shopping District and the scale of the project, we expect that an Environmental Impact Report (EIR) will be required. The attached scope of work describes the main issues to be evaluated in the EIR, and the estiniated cost and schedule for completion of the EIR. Our experience preparing CEQA documents for numerous projects throughout the Bay Area and specifically in Cupertino allows us to provide superior service and project management for the City. Please do not hesitate to contact me if you have any questions regarding this proposed scope of work or if there is any additional infonnation you need. Thank you for contacting us, and we look forward to working with you on this project. Sincerely, r~+ John Schwarz Principal Project Manager\Vice President Project # 15-033 David J, Polvers & Associates, Inc. 1871 The Alameda• Suite 200 •San Jose, CA 95126 •Tel (408) 248-3500 •Fax (408 248-9641 • www.davidjpowers.com ,_ DAVID J. POWERS & ASSOCIATES, INC. Scope of Work to Prepare an Environmental Impact Report Vallco Specific Plan Redevelopment Project The following Scope of Work to prepare an Environmental Impact Report (EIR) for the proposed Vallco Specific Plan Redevelopment Project (project) is based upon a review of information provided by the City of Cupertino, a site visit, and DJP&A's past experience with projects of similar magnitude throughout Santa Clara County. PROJECT UNDERSTANDING The approximately 58-acre project site consists of 15 parcels (APNs 316-20-080, -081, -082, -088, - 092, -094, -095, -099, -100, -101, -103, -104, -105, -106, and-107), located on the west and east sides of Wolfe Road north of Stevens Creek Boulevard and south of I-280 in northeast Cupertino. The project site is developed with a regional shopping center, including a cinema, a gym, bowling alley, restaurants including one with banquet facilities, and parking areas. The project site also includes an approved, but not yet constructed hotel (APN 316-20-092). The site is smrnunded by residential, commercial and retail uses, and I-280. The project site is currently identified as the Val/co Shopping District Special Area in the City's Community Vision 2040. A large portion of the site is zoned Planned Development-Regional Shopping Center and the rest is zoned Planned Development-General Commercial. A Specific Plan for the 58-acre site is currently under development. The applicant (Sand Hill Property Company) proposes to redevelop a large portion of the site (51 acres of the 58 acres) with residential, retail, office uses, and parks and plazas. It is assumed that the existing cinema, gym, bowling alley uses and potentially the ice skating rink will be maintained on-site or included in the project in another format. The remaining 7 acres that are not in the control of the applicant include an approved, but not yet constructed Hyatt Hotel (APN 316-20-092) and a paved parking lot (APN 316-20-088). The project will also include new above and below grade parking. It is our understanding that a Specific Plan will be prepared for the site that will be used to define the project description for the CEQA document. In order to assist the City and the applicant in defining the project, DJP&A proposes to include an initial task in our scope in addition to the preparation of the CEQA document. SCOPE OF WORK The following scope of work was prepared based upon a review of the project information provided, a site visit, consultation with appropriate technical experts, and DJP&A's past experience with projects of similar magnitude. David J, PO'\.Vers & Associates Inc. 1871 The Alatneda •Suite 200 •San Jose, CA 95126 •Tel (408) 248-3500 •Fax (408 248-9641 • www.davidjpowers.co1n Task 1: ,_ Defining the Project Page2 Vallco Redevelopment Project Final Scope of Work-June 9, 2015 DJP&A will provide environmental support and will advise the City and the project team during the initial project definition phase, in order to streamline the environmental documentation process. DJP&A will coordinate with the project team and the City on the development of the Vallco Specific Plan and the project description, and will work to identify any environmental issues that may have an effect on the proposed land use and site plan. This work will also include coordination with our subconsultants to begin their technical analyses for the BIR, as appropriate. This scope includes our attendance at weekly meetings with the City staff and project team. Task2: Administrative Draft Em A critical step in the environmental review process is to ensure, at the earliest time possible, that all team members understand the project and are in agreement about the scope of the work. To accomplish this goal, DJP&A proposes the following subtasks described below. BIR Kick-off Meeting At the initiation of the BIR process, DJP&A will attend an BIR kick-off meeting with City Staff and the project team (as appropriate) to discuss the project and key environmental issues, and to confmn the technical approach. The list of required project data/information required to prepare the BIR (see list at end of this scope) will also be reviewed at the kick-off meeting. Scope Refinement and Data Collection DJP&A will refine the BIR scope if needed, based on the work completed in Task 1, as well as the City's feedback and kick-off meeting discussion. As pmt of this subtask, DJP&A will ensure that all information required to complete the technical reports and BIR has been obtained and/or requested. Process: EIR initiation-4 Kick-offmeeting-4 Scope refinement and update list of information required Deliverables: .,, An electronic copy of the revised EIR scope (ifrequired) .,, An electronic copy of an updated list of required project information (if different from list at the end of this proposal) Once the BIR kick-off and scope refinement is complete, we will complete the BIR project description and Notice of Preparation. These subtasks are described below. David J. Powers & Associates Inc. 1871 The Almneda •Suite 200 •San Jose, CA 95126 •Tel (408) 248-3500 •Fax (408 248-9641 • www.davidjpowers.com i~ Project Description Page 3 Vallco Redevelopment Project Final Scope of Work-June 9, 2015 Based on the proposed Specific Plan 1 provided by the City, DJP&A will draft a detailed description of the proposed project, including the physical characteristics (maximum office and retail square footage, residential units, maximum building height, setbacks, grading and drainage, landscaping and hardscape, circulation, etc.) of the proposed development. The draft project description will be submitted to the City for review and comment. Based on comments received, DJP&A will finalize the project description. Process: Draft project description --+ City review--+ finalize project description Deliverables: .,. An electronic copy of the draft project description .,. An electronic copy of the final project description Notice of Preparation and EIR Scoping Meeting After finalizing the project description, DJP&A will prepare the EIR Notice of Preparation (NOP), which will alert the public that an EIR will be prepared for the project. DJP&A will prepare the NOP, in accordance with the CEQA and City of Cupertino guidelines. The NOP will include a brief project description, project location map, and an overview of the anticipated enviromnental impacts. DJP&A will submit a draft NOP to the City for review and comment. Based on comments received, DJP&A will finalize the NOP and provide it to the City for public circulation. DJP&A will submit the NOP to the State Clearinghouse for distribution. The text of the EIR will incorporate significant and relevant issues raised in the responses to the NOP received during its 30-day circulation period. It is anticipated that the City will hold a public scoping meeting for this project. DJP&A will attend and can assist with preparing materials and/or presenting an overview of the EIR process and issues to he analyzed at this meeting. Process: Draft NOP·-4 City Review -4 Finalize NOP, NOP Circulates -4 EIR Scoping Meeting -4NOP Circulation Ends Deliverables: .,. An electronic copy of the draft NOP .,. An electronic copy of the final NOP .,. Presentation and handouts for EIR scoping meeting Preparation of the Administrative Draft EIR DJP&A will then prepare an Administrative Draft EIR (ADEIR). The EIR will tier off the City's General Plan Amendment EIR. The ADEIR will include an introduction, summary, 1 This scope assumes that the EIR will evaluate the proposed Vallco Specific Plan Redevelopment project in its entirety and that the analysis of impacts by phases of development will not be required. If the City or applicant desires to have the Elll identify impacts and 1nitigation 1neasures by phases, additional budget would be required. David J. Polvers & Associates, Inc. 1871 The Alameda• Suite 200 •San Jose, CA 95126 •Tel (408) 248-3500 •Fax (408 248-9641 • www.davidjpowers.con1 Page4 Vallco Redeveloptnent Project Final Scope of Work-June 9, 2015 description of the project, environmental setting, in-depth discussion of possible environmental impacts, and identification of mitigation measures to reduce impacts. Cumulative impacts, alternatives to the project, and other sections required by the CEQA Guidelines will also be included. The main sections of the EIR are described below. Introduction The introduction to the EIR will provide a general overview of the CEQA process and describe the public participation process and opportunities for input. It will also contain an outline of the contents of the EIR. EIRSummary A summary of the EIR will be prepared which will include a brief description of the proposed project. The summary will be prepared in tabular form and will identify the impacts of the project and proposed mitigation measures. The summary will also describe the project alternatives discussed in the EIR, and address any known areas of public controversy. Project Description The project description prepared previously will be included in the EIR. The project description section will also include a list of the project objectives, necessary discretionary actions, and decision-making agencies. Maps and graphics will be provided to illustrate the text. Consistency with Plans and Policies Consistency with Plans and Policies will be incorporated into the individual sections of the EIR. These sections will discuss whether or not the proposed project is consistent with applicable plans and policies, such as general plans, specific plans and other regional and state plans. Particular attention will be given to inconsistencies; with plans designed to protect the environment, if any are identified. These sections will analyze whether such inconsistencies might result in significant adverse environmental effects. Existing Setting, Impacts and Mitigation Measures The EIR will provide: I) a detailed description of the existing project setting, based on conditions that exist at the time the NOP is released; 2) impacts that may result from the proposed project; and 3) feasible mitigation measures to avoid or reduce the impacts to a less than significant level. The EIR discussion will reflect information from technical analyses prepared by DJP&A'ssubconsultants, as well as information provided by the project applicant and City Staff. The primary issues anticipated in the EIR are described below. The project information required to complete the EIR is listed at the end of this scope proposal. David J. Powers & Associates Inc. 1871 The Alatneda •Suite 200 •San Jose, CA 95126 •Tel (408) 248-3500 •Fax (408 248-9641 • www.davidjpowers.com '~ The primary issues to be discussed will include: • aesthetics and visual resources • air quality • biological resources • cultural resources • geology and soils • greenhouse gas emissions • hazardous materials • • • • • • • Page 5 Vallco Redevelopment Project Final Scope of Work-June 9, 2015 hydrology and water quality land use noise and vibration transportation urban decay utilities and service systems water supply The scope of work proposed for these issues is described below. Aesthetics and Visual Resources The EIR will describe the existing visual character of the site and surrounding area and the change in visual character with proposed development. The change in visual character resulting will be described based upon photo-simulations of the project prepared by the project applicant. The EIR will include a discussion on whether the aesthetic impacts could be considered impacts on the environment and if the project would qualify for an exemption under SB 743 with regard to aesthetic impacts. Accurately scaled photo-simulations of the development, as seen from the on-site and off-site vantage points will be prepared. Square One Productions, under contract to DJP&A, will complete a peer review of up to eight photo-simulations and provide any necessary recommendations to the applicant produced images. This scope assumes that the applicant will provide Square One Productions with a scaled computer model or other graphic illustrations to use in reviewing the photo-simulations. Air Quality A Toxic Air Contaminant (TAC) Assessment is required for the proposed project. The TAC Assessment will evaluate construction activities by predicting construction period emissions and the associated health risk impacts to nearby sensitive receptors. Construction emissions will be predicted using the latest version of the CalEEMod model and construction phasing. The project is near residences, so a screening level community risk assessment will be also be required. The cancer risks associated with modeled construction period diesel particulate matter concentrations will be computed following Bay Area Air Quality Management District (BAAQMD) risk management policy guidance. The risks will be compared against BAAQMD CEQA thresholds. Impacts to sensitive receptors on the site from criteria pollutants will be evaluated in accordance with BAAQMD. Appropriate setbacks between sources of air pollution or mitigation measures will be assessed using guidance provided by the BAAQMD and the California Air Resources Board. Both project-level and cumulative source impacts will be addressed. Mitigation measures that represent "Best Management Practices" to control dust or particulate matter emissions will be described. In addition, other David J, Powers & Associates, Inc. 1871 The Alameda• Suite 200 •Sau Jose, CA 95126 •Tel (408) 248-3500 •Fax (408 248-9641 • www.davidjpowers.com l_ Page 6 Vallco Redevelop1nent Project Final Scope of Work-June 9, 2015 measures that may be necessary to reduce construction exhaust emissions or cancer risks will be identified in the report and in the EIR. It is DJP&A's understanding that the required air quality assessments will be prepared under contract to the applicant and provided to DJP&A. Illingworth & Rodkin, Inc., under contract to DJP&A, will prepare a peer review memorandum of the provided air quality assessments. Biological Resources The project site is developed and contains ornamental trees and associated landscaping. The EIR will describe tbe type, size, health and condition of on-site trees, based upon an arborist survey and report provided to DJP&A by the City of Cupertino and/or project applicant. The EIR will describe the proposed project landscaping and replacement trees. Mitigation measures will be identified for trees to be removed. The arborist report, prepared by the applicant's team, if not already reviewed by the City's consulting arborist, will be peer reviewed by Hortscience under contract to DJP&A. The EIR will describe the potential for the project to result in impacts to sensitive wildlife species, including migratory birds. Mitigation measures will be identified, as necessary, to reduce biological impacts to a less than significant level. Cultural Resources The site is designated a City of Cupertino Community Landmark (Cultural Resource Site 68) in the City's Community Vision 2040, tbis designation does not, however, qualify as a historic resource under CEQA. The buildings on tbe project site were constructed in the mid-l 970s and are not considered to be historic resources. There is a potential for unknown buried cnltural resources to be found during ground disturbance related to the undergronnd parking garages. Holman & Associates, under contract to DJP&A, will prepare a literature search and records review at the Northwest Information Center of the California Historical Resources Information System to identify all cultural resources and relevant studies near the project area. Mitigation measures will be identified, as necessary, to reduce cultural resources impacts to a less than significant level. Geology and Soils The EIR will describe the existing soils and geological hazards on and nearby the site, based upon a geotechnical report prepared by the applicant's team and provided to DJP&A by the City of Cupertino. The geotechnical report will be peer reviewed by Cotton Shires & Associates, under contract to DJP&A. The EIR will describe the potential for the project to result in geologic impacts. Mitigation David J. Powers & Associates Inc. 1871 The Alameda• Suite 200 •San Jose, CA 95126 •Tel (408) 248-3500 •Fax (408 248-9641 • www.davidjpowers.com i_ Page 7 Vallco Redevelopment Project Final Scope of Work-June 9, 2015 measures will be identified, as necessary, to reduce geologic impacts to a less than significant level. Greenhouse Gas Emissions The EIR will describe the greenhouse gas (GHG) emissions impacts from the project and discuss the project's consistency with the City's General Plan and the City's Climate Action Plan. It is assumed that the CalEEMod model will be used to predict GHG emissions from the project. In addition, project-specific inputs will be included to account for energy usage, water consumption, solid waste generation and vegetation plantings. The per capita GHG emissions will be computed based on the project GHG emissions and the estimated number of new residences and workers. The modeling will assume that the project will be consistent with the City's Climate Action Plan, and therefore, include some level of Transportation Demand Management program trips reduction. It is DJP&A's understanding that the above described GHG assessment will be prepared under contract to the applicant and provided to DJP&A. Illingworth & Rodkin, Inc., under contract to DJP&A, will prepare a peer review memorandum of the provided GHG assessment. Hazardous Materials The EIR will evaluate the potential for hazardous materials contamination on and near the project site which could be affected by demolition, site grading and excavation or impact workers or future residents at the site, based upon multiple Phase I Enviromnental Site Assessments (ESA) to be provided to DJP&A by the City of Cupertino. The ESAs will include a review of public databases and historic uses that could involve the use or disposal of hazardous materials. Project-specific mitigation measures will be identified in the EIR, based on the provided assessment, as appropriate. The above described ESAs (up to 8 separate reports) will be peer reviewed by Cornerstone Earth Group under contract to DJP&A. Cornerstone Earth Group will prepare a peer review memorandum of the ESAs. Cornerstone Earth Group staff participation at one project meeting with project staff and/or City of Cupertino staff in connection with the project is also included in this scope of work. Hydrology and Water Oualitv The project site is not located within a 100-year flood hazard zone. The EIR will describe the change in site drainage and hydrological conditions resulting from the project, in accordance with the City of Cupertino's stormwater ordinances. It is assumed that the project engineer will provide DJP&A with the stormwater quality/retention plan for the project site. Any improvements required to drain the site will be identified in the EIR, and mitigation and avoidance measures for significant impacts will be discussed, as appropriate. The potential David J, Po"'·crs & Associates, Inc. 1871 The Alameda• Suite 200 •San Jose, CA 95126 •Tel (408) 248-3500 •Fax (408 248-9641 • v.•ww.davidjpowers.com Page 8 Vallco Redevelopment Project Final Scope of Work-June 9, 2015 for the project to result in off-site impacts associated with stormwater drainage will also be described. Policies and requirements of the State Water Resources Control Board (Construction General Permit), and the Regional Water Quality Control Board (C.3 Provisions) require that mitigation for water quality impacts associated with new development and construction be addressed as part of the environmental review process. This scope assumes the project engineer will calculate the runoff from the proposed development and its effect on the City and Santa Clara Valley Water District (SCVWD) storm drain systems, or new facilities, if necessary. Identification of best management practices will be based upon a drainage plan for the proposed project, prepared under separate contract by the project civil engineer and provided to DJP&A. Impacts to water resources and mitigation measures will be described, as necessary, to reduce all impacts to a less than significant level. Land Use The project site is developed with a regional shopping center including a cinema, a gym, bowling alley, restaurants, a banquet facility, and parking areas. The project site also includes an approved, but not yet constructed hotel (APN 316-20-092) and a paved parking lot parcel. The EIR will describe the historic and current land uses on the site and in the project area, and will describe the current General Plan and zoning designations of the site. The project site is currently identified as the Vallco Shopping District Special Area in the City's Community Vision 2040. A large portion of the site is zoned Planned Development- Regional Shopping Center and the rest is zoned Planned Development-General Commercial. The EIR will identify any land use impacts and conflicts that could result to the project from nearby land uses, as well as impacts upon nearby land uses resulting from the project. Mitigation and avoidance measures will be identified, as necessary, for significant land use impacts. Noise and Vibration The predominant noise sonrces in the project vicinity include traffic on I-280, Stevens Creek Blvd, and Wolfe Road. The BIR will address the potential construction and operational noise impacts from the proposed project, based on a noise study to be completed by Illingworth & Rodkin, Inc., under contract to DJP&A. The environmental noise and vibration assessment for the project will: measure ambient noise levels at the project site, calculate future noise and vibration levels resulting from the construction of the project, calculate noise levels generated from the operation of the project at nearby residential receivers, evaluate future noise levels with respect to the noise and land use compatibility standards in the General Plan, and identify mitigation measures, as applicable, to reduce potentially significant noise impacts to less than significant levels. Illingworth & Rodkin, Inc. staff participation at two project meetings, and up to two public hearings, if needed, with project staff and/or City of Cupertino staff in connection with the David J, Powers & Associates Inc. 1871 The Alameda• Suite 200 •San Jose, CA 95126 •Tel (408) 248-3500 •Fax (408 248-9641 • www.davidjpowers.com project is also included in this scope of work. Transportation Page9 Vallco Redevelop1nent Project Final ScopeofWork-June 9, 2015 The EIR will describe the traffic and circulation impacts resulting from the proposed project. A Transportation Impact Analysis (TIA) in accordance with the City of Cupertino, the Santa Clara Valley Transportation Authority's (VTA) TIA guidelines, and the congestion management agency for Santa Clara County will be prepared by Fehr & Peers Transportation Consultants, under contract to DJP&A, refer to the attached Fehr & Peers TIA scope (attached to tl1is scope of work). The TIA will follow the most recently adopted VTA analysis guidelines (dated October 2014) as well as the methodology outlined in the newly adopted Cupertino General Plan (Community Vision 2040). The City will comply with VT A guidelines and analyze the CMP intersections based on VT A's TIA Guidelines. The operations of the intersections will be evaluated during the weekday morning (AM) and weekday evening (PM) peak hours for the six scenarios. Freeway segments will also be evaluated. Forty intersections and up to 30 freeway segments on I-280 and ten freeway segments on State Route (SR) 85 are proposed for analysis, refer to the attached TIA scope. Freeway segments will be analyzed following the VTA guidelines under the Existing and Existing Plus Project scenarios. Fehr & Peers will create a VISSIM microsinmlation model to evaluate operations for pedestrians, bicyclists, transit users, and vehicles in the project area, refer to the attached TIA scope for additional details. The EIR will also describe the existing access and circulation conditions near the site. The EIR will describe traffic impacts and will identify any mitigation measures, as appropriate. Construction traffic impacts will be evaluated using the estimated number of trucks and construction workers that will be on site on a given day and the rerouting of traffic that may occur with road detours or staging. Construction parking will also be evaluated based on the number of workers and construction phasing. It is assumed that construction activity information will be provided by the project applicant. The construction traffic will also take into account other construction activity occurring in the area. If constmction impacts are identified, mitigation measures such as a construction traffic management plan will be listed and will ultimately include truck routes and construction hours. The proposed parking supply will be evaluated in comparison to City Code requirements. The projected demand will be evaluated using ITE rates and shared parking, where appropriate. The potential for parking demand spillover to adjacent streets will be evaluated. The EIR will also consider whether the parking impacts should be considered impact to the environment and ifthe project would qualify for an exemption under SB 743 with regard to parking impacts. David J. Powers & Associates, Inc. 1871 The Alameda• Suite 200 • San Jose, CA 95126 •Tel (408) 248-3500 •Fax (408 248-9641 • www.davidjpowers.com Page 10 Vallco Redevelop1nent Project Final Scope of Work-June 9, 2015 Fehr & Peers will calculate vehicle miles of travel (VMT) using the VTA model and Household Survey Data for the following conditions: 1) Cumulative and 2) Cumulative Plus Project. Based on the information developed, average trip length per capita from the project site will be calculated. Fehr & Peers will discuss with City of Cupertino staff the appropriate thresholds to assess the significance of the VMT information in light of the draft CEQA guidelines that are being considered. Fehr & Peers will review the TOM program being developed by the project applicant to evaluate the reasonableness of the proposed TDM measures and expected TDM reductions goals. Fehr & Peers will use their TDM+ tool to estimate the TDM reductions that could be achieved from the proposed office developments. This task includes up to 20 hours to review the proposed TDM program. Fehr & Peers staff participation at 20 conference calls, six in-person project meetings, two study sessions, and two public hearings with project staff and/or City of Cupertino staff in connection with the project is also included in this scope of work. Urban Decay The EIR will discuss the potential for whether or not adverse physical impacts are likely to result from economic impacts of the proposed project on existing and future competitive commercial facilities, pursuant to CEQA Guidelines Section 1513l(a). This section will be based on available information and information provided by the City. Utilities and Service Systems The EIR will include a discussion of water, storm water, wastewater and solid waste and how the project will affect these utilities. The EIR discussion of the project's potential impact on the City's wastewater systems will be based on a sewer capacity study to be completed by Schaaf & Wheeler, under contract to DJP&A. The study will include a hydraulic model and capacity analysis of the existiug sanitary sewer conveyance system downstream of the proposed project site, within the Cupertino Sanitary District(CSD) service area. The capacity analysis will be based upon existing and proposed land use at the development site, in addition to off-site sewer flows provided by others. The project's contribution to sewer flows will be identified, and any resulting impacts and mitigation measures will be described. This scope of work assumes the following for the sewer capacity study: The sanitary sewer system reach requiring modeling is located along N. Wolfe Road and Homestead Road, from Stevens Creek Boulevard to Lawrence Expressway. Downstream receiving interceptor mains, outside the CSD service area, that convey sewage to both the San Jose/Santa Clara Regional Wastewater Facility and the Donald M. Somers Water Pollution Control Plant (Sunnyvale) are adequately sized to convey existing flows and proposed new flows from Cupertino Square, and therefore does not require modeling. David J. Powers & Associates, Inc. 1871 The Alameda• Suite 200 •San Jose, CA 95126 •Tel (408) 248-3500 •Fax (408 248-9641 • www.davidjpowers.com Page 11 Vallco Redevelopment Project Final Scope of Work-June 9, 2015 The City and/or CSD has background planning data that is available for use as part of the capacity study; and includes the items listed above. Schaaf & Wheeler will also provide an analysis of the feasibility and sizing of a recycled water main extension to the project site. The potential recycled water demand for the project site and hydraulics of a new main extension to determine required sizing to provide adequate capacity and pressure to the project site will be calculated as part of this analysis. Schaaf & Wheeler staff participation on one conference call meeting with project staff and/or City of Cupertino staff in connection with the project is also included in this scope of work. Water Supply The EJR will also include an evaluation of the project's water demands based on a Water Supply Assessment in accordance with SB 610 prepared by Yarne & Associates under contact to Cal Water, the site's water provider. Cumulative The EIR will include a discussion of cumulative impacts from the project in combination with other past, pending, and reasonably foreseeable future development in the area, in conformance with CEQA Guidelines Section 15130. This list of projects will be based upon information available from the City and neighboring jurisdictions. The EIR will analyze and describe the significant cumulative impacts to which the project would contribute, based on a list of pending projects to be provided by the City of Cupertino. Based upon existing information, it is anticipated that this discussion will focus mainly on transportation, air quality, noise, utilities and service systems, and greenhouse gas emissions. Alternatives The EIR will evaluate possible alternatives to the proposed project, based on the results of the enviromnental analysis. The alternatives discussion will focus on those alternatives that could feasibly accomplish most of the basic purposes of the project and could avoid or substantially lessen one or more of the significant enviromnental effects (CEQA Guidelines Section 15126.6). DJP&A will coordinate with the City staff to identify the alternatives to be analyzed in the EIR; however, it is currently anticipated that the alternatives to be evaluated in the EIR could include the following: 1. No Project Alternative; 2. Reduced Scale Alternative(s); 3. Design Alternative; 4. Enviromnentally Superior Alternative (to be chosen from one of the above). This section will evaluate the impacts of each alternative, as required by CEQA (Guidelines David J. Powers & Associates, Inc. 1871 The Almneda •Suite 200 •San Jose, CA 95126 •Tel (408) 248-3500 •Fax (408 248-9641 • www.davidjpowers.com Page 12 Vallco Redevelop1nent Project Final Scope of Work-June 9, 2015 Section 15126.6) and based on the "rule ofreason." The alternatives discussion will describe the environmental impacts and benefits of the alternatives, compared with the proposed project. In accordance with CEQA, the EIR will identify an environmentally superior alternative from the alternatives described, based on the number and degree of a.ssociated environmental impacts. Other Required Sections The above discussions identify and highlight the major issues and subject areas to be addressed in the EIR. The EIR will also evaluate the project's impacts on geology, energy, public services and recreation, and population and housing. Mitigation measures to avoid or reduce impacts to a less than significant level will be identified, as necessary. The BIR will also include other sections required by the CEQA Guidelines, including Table of Contents or Index, Significant Unavoidable Impacts, References and Organizations and Persons Consulted, EIR Preparers and Lead Agency, and appendices, which will include copies of technical reports. Upon completion of the ADBIR, DJP&A will submit up to 5 copies of the ADEIR to City Staff for review and comment. An electronic copy of the AD BIR text will be emailed to the City to facilitate and convey City comments/edits. Process: Obtain necessary project infonnation and technical reports from applicant/City--> Complete technical reports--; Prepare ADEIR--; Submit ADEIR to City for review Deliverables: ./ Up to 5 hard copies of the ADEIR (with electronic copies of the technical appendices/rep01ts) ./ An electronic copy of the ADEIR text to facilitate tracking of City comments/edits Task3: Draft EIR and Notice of Completion The subtasks involved with this task include preparing the Draft EIR and Notice of Completion, and attending a public hearing during the review period for the Draft BIR. These subtasks are described below. DraftEIR DJP&A will revise the ADEIR, based upon the comments and revisions received from City Staff and prepare a 2nd ADEIR and then a "Screencheck." The 2nd ADEIR and the Screencheck Draft EIR will be submitted in an electronic format to the City Staff for review David J, Powers & Associates, Inc. 1871 The Alameda• Suite 200 •San Jose, CA 95126 •Tel (408) 248-3500 •Fax (408 248-9641 • www.davidjpowers.co1n Page 13 Vallee Redevelopment Project Final Scope of Work-June 9, 2015 and final approval. Upon approval by City Staff, the final document will constitute the Draft EIR, and DJP&A will provide copies of the Draft EIR to the City for public distribution. This proposal includes providing the City with up to 30 hard copies and 5 CDs of the Draft EIR for public distribution, a PDF of the document for posting on the City's website, as well as 15 hardcopies of the executive summary and 15 CDs of entire document for submittal to the State Clearinghouse. If additional hard copies are requested they can be provided for a per copy rate of $7 5. Process: Revise ADEIR, submit 2"' ADEIR, revise and submit Screencheck to City for review --> City review --> Finalize and print Draft EIR Deliverables: ,/ An electronic copy of the Screencheck Draft EIR to facilitate tracking of City comments/edits ,/ Up to 30 hard copies and 20 CDs of the Draft EIR ,/ A PDF of the Draft EIR on CD for posting on the City's website ,/ 15 hardcopies of the executive summary and 15 CDs of the entire EIR for submittal to the State Clearinghouse. Notice of Completion DJP&A will prepare the Notice of Completion (NOC), in accordance with the CEQA and City of Cupertino guidelines. The NOC will include a brief description of the project, the project location, and will state where copies of the Draft EIR are available for review. The public review period will also be noted. DJP&A will submit an electronic draft of the NOC to the City for review and comment. DJP&A will revise and finalize the NOC based on City comments. DJP&A will transmit the NOC and required copies of the EIR to the State Clearinghouse on behalf of the City. Process: Draft NOC and submit to City for review --> City review--> Revise and finalize NOC and provide to City and SCH Deliverables: ,/ An electronic copy of the draft NOC to facilitate tracking of City comments/edits ,/ An electronic copy of the final NOC Task4: Fina!EIR The subtasks involved with this task are preparing the Final BIR/Responses to Comments and Mitigation Monitoring and Reporting Program (MMRP), compiling information in the EIR for the City to use in preparation of the Findings, preparing the Notice of Determination (NOD). These subtasks are described below. David J. Powers & Associates, Inc. 1871 The Alameda• Suite 200 •San Jose, CA 95126 •Tel (408) 248-3500 •Fax (408 248-9641 • www.davidjpo\vcrs.con1 ~'- Page 14 Valko Redevelopn1ent Project Final Scope ofWork-June 9, 2015 Final BIR/Responses to Comments Upon conclusion of the Draft EIR 45-day circulation period, DJP&A will prepare the Final EIR. In conformance with CEQA Guidelines Section 15132, the Final EIR will consist of the following items: Revisions to the Draft BIR text, as necessary; List of individuals and agencies commenting on the DEIR; Responses to comments received on the DEIR, as directed by the City Staff, Copies of letters or records of verbal comments received on the DEIR; and Summary records of public hearings, if requested. All responses to written comments will be answered in accordance with the CEQA Guidelines (Section 15088). This proposal includes 200 hours ofDJP&A staff time to respond to comments on the Draft EIR and prepare the Final BIR. This scope assumes that no comments are received that require additional technical analysis. If additional time or technical analysis is required to respond to the comments, it can be provided as an extra work task, on a time and materials basis, in accordance with the charge rates outlined at the end of this scope. Up to five hard copies and an electronic version of the administrative version of the Final EIR will be submitted to the City for review. The Final EIR will be revised per the comments received, and a "Screencheck" Final EIR will be prepared and submitted electronically to the City for review. Once the City approves the "Screencheck" Final BIR, DJP&A will reproduce up to 30 hard copies of the Final EIR and deliver to the City for distribution. A copy of the Final EIR will also be provided to the City in PDF format for posting on the City's website. Process: Receive conunents on Draft EIR from City -4 Prepare Administrative Draft Final EIR and submit to City for review --7 City review --7 Revise document and submit Screencheck Final ·EIR to City for review --7 City review --7 Revise, finalize, and print Final EIR Deliverables: .,/ Up to five (5) hard copies of the Administrative Draft Final EIR .,/ An electronic copy of the Administrative Draft Final EIR text to facilitate tracking of City comments/edits .,/ An electronic copy of the Screencheck Final EIR texUo facilitate tracking of City comments/edits .,/ Up to 30 hard copies of the Final EIR .,/ A PDF of the Final EIR on CD for posting on the City's website Mitigation Monitoring and Reporting Program As required by CEQA, DJP&A will prepare a draft Mitigation Monitoring and Reporting Program (MMRP) for the project. The MMRP will identify the mitigation measures required David J. Powers & Associates Inc. 1871 The Alameda• Suite 200 •San Jose, CA 95126 •Tel (408) 248-3500 •Fax (408 248-9641 • W\vw.davidjpowers.com Page 15 Vallco Redeveloptnent Project Final Scope of Work-June 9, 2015 for all significant impacts, responsible implementation entity, monitoring schedule, and enforcement or monitoring agency. DJP&A will submit an electronic copy of the draft MMRP to the City prior to the BRC Meeting. Process: Draft MMRP and submit to City for use Deliverables: ./ An electronic copy of the draft MMRP Findings Although we are not attorneys and do not prepare legal findings, DJP&A will assist City Staff and the City Attorney in compiling information from the BIR for findings required under CBQA Guidelines Section 15091, ifrequested to do so. Process: Compile and submit information from the BIR for findings to City for use Deliverables: ./ An electronic copy of BIR information for findings Notice of Determination DJP&A will prepare a Notice of Determination (NOD), in accordance with the CBQA and City of Cupertino guidelines. The NOD will include the project name (including State Clearinghouse identification number), project location, brief project description, lead agency and date of project approval, determination of the project's environmental effects, statement that the BIR was prepared and certified in accordance with CBQA, mitigation measures and conditions of approval, statement that the MMRP was adopted, a statement whether overriding considerations were adopted, and the address of where the Final BIR and record of project approval may be examined. DJP&A will submit an electronic copy of the draft NOD for the City's review. Based on comments received from the City, DJP&A will revise and finalize the NOD. DJP&A will file the final NOD along with the California Department of Fish and Wildlife (CDFW) and County filing fees at the State Clearinghouse and County Clerk. Process: Draft NOD and submit to City for review -+ City review -+Revise, finalize, and file NOD at SCH Deliverables: ,/ An electronic copy of the draft NOD ,/ An electronic copy of the final NOD and filing fee for CDFW and County Integrated EIR After completion of the Final BIR, a 'clean' version of the entire BIR will be prepared and provided to the City. This version will incorporate all corrections and changes made as a David J, Powers & Associates, Inc. 1871 The Alameda• Suite 200 • San Jose, CA 95126 •Tel (408) 248-3500 •Fax (408 248-9641 • www.davidjpowers.com _, - Page 16 Vallco Redevelop1nent Project Final Scope of Work-June 9, 2015 result of comments received in a Final Integrated version of the EIR. One hard copy and one electronic version will be provided. If additional hard copies are requested they can be provided for a per copy rate of $75. Process: Prepare and submit Integrated EIR for City use Deliverables: ./ A hard copy and electronic copy of Integrated EIR Task5: Meetings/Public Hearings. Project Management & Coordination These subtasks includes DJP&A time for meetings, public hearings, and coordination with the project team. The number of meetings are estimated to occur over an 18 month period, from March 2015 throngh August 2016. These subtasks are described below. Project Team Meetings It is assmned that DJP&A will participate in weekly project team meetings for the duration of the work. This task also includes meeting preparation time and travel time. Process: Coordinate with City in preparation for meetings --+Attend and participate as needed at project team meetings Deliverables: ./ An electronic copy ofupdated project status and schedule, as needed Communication and Administration Coordination This scope includes DJP&A time for regular communication between DJP&A's in-house staff, our subconsultants and City Staff for project management, administration, ongoing project updates, etc. Also, as part of this task, DJP&A will maintain files in a manner consistent with creating the "CEQA Administrative Record." DJP&A will provide the City with the appropriate files and documents on a CD at the completion of the CEQA environmental process. Process: Compile and submit CEQA Administrative Record from the EIR for City use Deliverables: ./ CD of CEQA Administrative Record Public Meetings and Hearings This task includes DJP&A time for two individuals from DJP&A to attend up to seven public meetings or hearings during the 18 month period. This task assumes up to 8 hours per public David J. Powers & Associates, Inc. 1871 The Alameda• Suite 200 •San Jose, CA 95126 •Tel (408) 248-3500 •Fax (408 248-9641 • www.davidjpowers.com I~ I~ Page 17 Vallco Redevelopment ~roject Final Scope of Work-June 9, 2015 meeting and includes meeting preparation time and travel time. The DJP&A Project Manager or Principal will be available to describe the environmental review process, summarize the environmental issues, and respond to questions about the environmental document at hearings. If requested, additional hearings/meetings will be attended on a time and materials basis in accordance with the attached charge rates. Process: Coordinate with City in preparation of hearings--> Attend and participate as needed at hearings Deliverables: ,( Presentation 1nateria~s for hearings (PowerPoint slides, poster boards, etc.) David J. Powers & Associates, Inc. 1871 TheAlruneda •Suite 200 •San Jose, CA 95126 •Tel (408) 248-3500 •Fax (408 248-9641 • www.davidjpowers.com I_ ,_ Page 18 Vallco Redevelopment Project Final Scope of Work-June 9, 2015 PROJECT INFORMATION REQUIRED TO PREP ARE EIR Our proposal is based on the assumption that DJP&A will receive the project details listed below concurrent with the EIR Project Description in order to maintain the optimum schedule outlined below. Delays in receiving any of the information listed below will result in at least day for day delays to the overall project schedule. Plans (in PDF) o Site plan, Landscape plan o Utility Plan/Drainage/Grading plans o Conceptual Building Elevations o Engineering survey o Building materials palette Project Detail o Visual Renderings including high resolution files of baseline photography, Photosimulations, and vantage point locations in the form of arrows on a map o Written description of Specific Plan and specific development project, including maximum square footage of all uses and maximum building height, setbacks, etc. o City and Applicant project objectives o Any proposed street dedication or ROW improvements (including sidewalks) o Details on project construction (total duration, estimated maximum depth of excavation, cut and fill amounts, etc.) o Proposed construction phasing, overall duration o List of Best Management Practices (BMPs) and LID treatment proposed to conform to Provisions C.3 of the NPDES permit o Square footage/area of pervious and impervious surfaces on-site pre-and post-project construction o Sanitary sewer infrastructure data including: Pipe diameter, rim and invert elevations of manholes/pipes for reach of sewer system needing to be modeled o Sanitary sewer flow rates for off-site flows: Upstream flows for the required flow conditions (e.g. Peak Dry Weather, Peak Wet Weather, etc), downstream flows for the required flow conditions o Sanitary sewer generation rates: To be used to calculate on-site development sewer flows, unit rates to be based on dwelling unit for residential, per square foot for commercial/retail and restaurant. o Sanitary sewer peaking factors: Established peaking factors for peak dry weather and peak wet weather flow conditions. Technical Studies The following studies can be received four weeks after receipt of the EIR Project Description without substantial schedule delays. o Air Quality/GHG Assessment o Arborist Survey and Summary Report o School Capacity Study o Preliminary Geotechnical Report D Phase I Environmental Site Assessments completed within 180 days of the initiation of environmental review David J. Powers & Associates, Inc. 1871 The Alameda• Suite 200 •San Jose, CA 95126 •Tel (408) 248-3500 •Fax (408 248-9641 • www.davidjpowers.com Page 18 Vallco Redevelopment Project Final Scope of Work-June 9, 2015 COST ESTIMATE Based on our understanding of the project and technical reports that will be made available to DJP&A, the cost for preparation of the EIR is estimated not to exceed $754,305, based upon the breakdown below. All costs will be charged on a time and materials basis, commensurate with work completed, in accordance with the attached breakdown and charge rates. IfDJP&A does not need all the time that has been budgeted (e.g., the second round of peer review is not required), we will only bill for the time actually spent completing the work. This scope is valid for 90 days and assumes that no issues that arise will require auy additional technical analysis or documentation. In the event that additional technical analysis is required, we can complete that work on a time and materials basis, upon your authorization. Project description changes after our notice to proceed is received may have schedule and budget implications. David J. Powers & Associates, Inc. • In-House Staff Time $ 331,730 • Reimbursable expenses* (printing, mileage, CDs, etc.) $ 11,430 Subtotal DJP&A: $ 343,160 Subconsultants* • Cotton, Shires and Associates, Inc. (Geotechnical Peer Review) $ 5,750 • Cornerstone Earth Group (Hazardous Materials Peer Review) $ 6,124 • Fehr & Peers (Transportation Impact Analysis) $ 256,795 • Holman & Associates (Cultural Resources Assessment) $ 2,875 • Hortscience (Arborist Report Peer Review) $ 2,244 • Illingworth & Rodkin, Inc. (Air Quality/GHG Peer Review) $ 4,313 • Illingworth & Rodkin, Inc. (Noise and Vibration Assessment) $ 31,165 • Schaaf & Wheeler (Sewer and Recycled Water Capacity Study) $ 44,436 • Square One Productions (Visual Renderings Peer Review) $ 9,488 Suhconsultant Total: $ 363,190 TOTAL $ 706,350 Fehr & Peers Optional Tasks* • Saturday Intersection Analysis (TIA Task 3.1) $ 15,479 • Project Phasing Analysis (TIA Task 7.1) $ 7,946 • Stevens Creek Boulevard VIS SIM (TIA Task 9.1) $ 16,480 • TDM Analysis (TIA Task 15 .1) $ 8,050 Fehr & Peers Optional Tasks Total: $ 47,955 TOTAL WITH OPTIONAL TASKS $ 754,305 . ' · *Subconsultant and expenses include a 15% adm1n1strattve fee. This scope of work ts valid for 90 days. David J, Powers & Associates Inc. 1871 The Alameda• Suite 200 • San Jose, CA 95126 •Tel (408) 248-3500 •Fax (408 248-9641 • www.davidjpowers.co1n ESTIMATED SCHEDULE Page 19 Vallco Redeveloptnent Project Final Scope of Work-June 9, 2015 DJP&A proposes the following optimum schedule for preparation of the EIR for the Vall co Development project in Cupertino. DJP&A can commit to maintaining the schedule in the areas which are within our control. Completion of the EIR, as described in this schedule on the following page, is based upon receipt of all necessary project information on schedule. Delays in receiving requested information or responses by others will result in at least day-for-day delays in the overall schedule. The schedule assumes that the project description will not substantially change once we receive a notice to proceed, and that no comments are received during the circulation of the EIR that require additional technical studies. David J, Po,ve1·s & Associates, Inc. 1871 The Alameda• Suite 200 •San Jose, CA 95126 •Tel (408) 248-3500 •Fax (408 248-9641 • ww\v.davidjpowers.cotn DAVID J. POWERS & ASSOCIATES, INC. EIR Schedule 0 Defining the Project (Specific Plan) ~~ ,-•~--'-"---'-~ EIR Kick-off Meeting B EIR Project Description and NOP Completed 30-day NOP Publlc Review Period Public Scoping Meeting EIRTechnlcal Reports and Peer Reviews Completed Administrative Draft EIR Completed 1st and 2nd ADEIR City Review and Revisions Revision of Screencheck/Preparation of DEIR/NOC 45-day DEIR Public Review Period Administrative Draft FEIR Completed ADEIR/Screencheck ADFEIR City Review and Revisions Revision of Screencheck/Preparation of FEIR 10-day FEIR Public Review Period MMRP and NOD Drafted Planning Commission Hearing City Councll Hearing L Vallco EIR Schedule 10 20 30 40 50 I I Duration (Weeks) Task 1: Defining the Project (Specific Plan) Task 4: Administrative Draft EIR Task 3: Revision of Screencheck/Preparation of Draft EIR and II Task 4: Final EIR Notice of Completion Public Review • Task 5: Public Hearings ATTACHMENTS ATTACHMENT A -DJP&A Charge Rate Schedule ATTACHMENT B -Transportation Impact Analysis Scope of Work David J. Powers & Associates, Inc. 1871 The Alameda• Suite 200 •San Jose, CA 95126 •Tel (408) 248-3500 •Fax (408 248-9641 • www.davidjpowers.com ATTACHMENT A DAVID J. POWERS & ASSOCIATES, INC. Charge Rate Schedule2 SENIOR PRINCIPAL $ 255.00PERHOUR PRINCIPAL PROJECT MANAGER $ 225.00PERHOUR SENIOR ENVIRONMENTAL SPECIALIST $ 200.00 PER HOUR SENIOR PROJECT MANAGER $ 180.00 PER HOUR ENVIRONMENTAL SPECIALIST $165.00PERHOUR PROJECT MANAGER $ 155.00 PER HOUR ASSOCIATE PROJECT MANAGER $140.00PERHOUR ASSISTANT PROJECT MANAGER $115.00PERHOUR RESEARCHER $ 100.00 PER HOUR DRAFTSPERSON/GRAPHIC ARTIST $ 90.00 PER HOUR DOCUMENT PROCESSOR/QUALITY CONTROL $ 90.00 PER HOUR ADMINISTRATIVE MANAGER $ 90.00 PER HOUR OFFICE SUPPORT $ 75.00 PER HOUR MATERIALS, OUTSIDE SERVICES AND SUBCONSULTANTS INCLUDE A 15% ADMINISTRATION FEE. MILEAGE WILL BE CHARGED PER THE CURRENT IRS STANDARD MILEAGE RATE AT THE TIME COSTS OCCUR. SUBJECT TO REVISION DECEMBER 31, 2015 2 David J. Powers & Associates, Inc. provides regular, clear and accurate invoices as the work on this project proceeds, in accordance with normal company billing procedures. The cost esthnate prepared for this project does not include special accounting or bookkeeping procedures, nor does it include preparation of extraordinary or unique statetnents or invoices. If a special invoice or accounting process is requested, the service can be provided on a ti1ne and n1aterials basis. David J. Powers & Associates, Inc. 1871 The Alameda• Suite 200 • San Jose, CA 95126 •Tel (408) 248-3500 •Fax (408 248-9641 • www.davidjpowers.com ATTACHMENT B -Transportation Impact Analysis Scope of Work David J. Powers & Associates, Inc. 1871 The Alruneda •Suite 200 •San Jose, CA 95126 •Tel (408) 248-3500 •Fax (408 248-9641 • www.davidjpowers.co1n Attachment B SCOPE OF WORK Transportation Impact Analysis for the Valko Mall Redevelopment Project in Cupertino, California (June 8, 2015) The approximately 58-acre project site is located near the intersection of Vallco Parkway and Wolfe Road in Cupertino, California. The project site is generally bounded by I-280 to the north, Perimeter Road to the east and west, and Stevens Creek Boulevard to the south. As currently proposed, the project would redevelop the existing shopping mall with 2.0 million square feet of office uses, 600,000 s.f. of commercial uses, and 800 housing units. The purpose of this transportation impact analysis (TIA) is to identify potentially significant adverse impacts of the proposed project on the surrounding transportation system and to recommend mitigation measures, if needed. The impacts will be evaluated following guidelines of the City of Cupertino and the Santa Clara Valley Transportation Authority (VTA), the congestion management agency for Santa Clara County. This TIA will follow the most recently adopted VTA Transportation Impact Analysis Guidelines (October 2014). ANAL.YSJS CONTEXT In December 2014 Cupertino's City Council adopted its Community Vision 2040, which amended the City's General Plan. In response to Senate Bill (SB) 743, which requires alternatives to automobile level of service (LOS) for evaluating transportation impacts, the updated General Plan no longer includes a LOS standard for intersection operations. Rather, the Mobility Element of the Community Vision 2040 includes guidance to balance the needs of all modes of transportation through measures such as vehicles miles traveled (VMT) and multi-modal analysis methods. Although SB 743 has been adopted at the State level, the Office of Planning and Research (OPR) does not anticipate releasing guidelines on how to implement it until late 2015 or early 2016; therefore the City is applying a hybrid approach that maintains the previous level of service standard thresholds for City intersections, while also providing a more focused analysis on transit, bicycle, and pedestrian access. _, - SCOfJE OF WORI< The scope outlined below includes our approach to conduct the TIA. Analysis Locations Based on our preliminary assessment, the following intersections and freeway segments are proposed for the LOS analysis. The study locations will be finalized in Task 1 below. CMP Study Intersections: Intersections where the project is anticipated to add more than ten trips per lane were selected for analysis, which include: 1. Stevens Creek Boulevard I SR 85 Ramps (south) 2. Stevens Creek Boulevard I SR 85 Ramps (north) 3. Stevens Creek Boulevard I Stelling Road 4. De Anza Boulevard I I-280 Ramps (north) 5. De Anza Boulevard/ I-280 Ramps (south) 6. De Anza Boulevard I Stevens Creek Boulevard 7. De Anza Boulevard I Bollinger Road 8. De Anza Boulevard I SR 85 Ramps (north) 9. De Anza Boulevard I SR 85 Ramps (south) 10. Wolfe Road I El Camino Real 11. Wolfe Road I Fremont Avenue 12. Wolfe Road I I-280 Ramps (north) 13. Wolfe Road I I-280 Ramps (south) 14. Wolfe Road I Stevens Creek Boulevard 15. Lawrence Expressway I Homestead Road 16. Stevens Creek Boulevard/ Calvert Drive/ I-280 Ramps (west) 17. Stevens Creek Boulevard I I-280 Ramps (east) 18. Stevens Creek Boulevard I Lawrence Expressway Ramps (west) 19. Stevens Creek Boulevard I Lawrence Expressway Ramps (east) 20. Lawrence Expressway/ I-280 Southbound Ramps 21. Lawrence Expressway I Bollinger Road City of Cupertino and Santa Clara County Intersections: Additional City and County intersections that would be most directly affected by project traffic were selected for analysis. These include: 22. Stevens Creek Boulevard/Torre Avenue-Vista Drive 23. Stevens Creek Boulevard/Blaney Avenue 24. Stevens Creek Boulevard/Portal Avenue 25. Stevens Creek Boulevard/Perimeter Road 26. Stevens Creek Boulevard/Finch Avenue 27. Stevens Creek Boulevard/Tantau Avenue 28. Wolfe Road/Homestead Road 29. Wolfe Road/Apple Campus 2 Driveway 30. Wolfe Road/Pruneridge Avenue 31. Wolfe RoadNallco Parkway 32. Miller Avenue/Calle De Barcelona 33. Miller Avenue/Phil Lane 34. Miller Avenue/Bollinger Road 35. Tantau Avenue/Homestead Road 36. Tantau Avenue/Pruneridge Avenue 37. Tantau AvenueNallco Parkway 38. Lawrence Expressway/Pruneridge Avenue 39. Lawrence Expressway/Mitty Way 40. Lawrence Expressway/Doyle Road CMP Freeway Segments: Per VTA TIA Guidelines, freeway segments where the project is anticipated to add more than one percent of the segment's capacity will be selected for analysis. This scope of work includes the analysis of up to 30 freeway segments on 1-280 and ten freeway segments on State Route (SR) 85. Analysis Scenarios The operations of the intersections will be evaluated during the weekday morning (AM) and weekday evening (PM) peak hours for the following scenarios: Scenario 1: Scenario 2: Existing Conditions -Existing volumes obtained from counts. Existing Plus Project Conditions -Scenario 1 volumes plus traffic generated by the proposed project. Scenario 3: Scenario 4: Scenario 5: Scenario 6: Background Conditions -Existing volumes plus traffic from "approved but not yet built" and "not occupied" developments in the area and their required transportation system requirements. Background Plus Project Conditions -Scenario 3 volumes plus traffic generated by the proposed project. Cumulative No Project Conditions -Background No Project volumes (Scenario 3) plus traffic generated by pending developments in the area and growth. Traffic projections for this scenario may be tiered off the General Plan analysis. Cumulative Plus Project Conditions -Scenario 5 volumes plus traffic generated by the proposed project. Per VTA guidelines, a transit vehicle delay analysis will be conducted for Existing Plus Project conditions and project impacts on bicycle and pedestrian facilities will also be addressed. Fehr & Peers will complete the following tasks to evaluate the transportation impacts of the proposed project. Task l -Prepare Initial Trip Generation Estimations and Finalize Scope of Work Under this task, we will develop initial project trip generation estimates. While standard !TE rates are used to estimate project trips for some projects, VTA's TIA Guidelines specifically state that this may not be the most appropriate method for estimating project trips and that the lead agency should consider using alternative methods in the following four cases: • When /TE data is insufficient (e.g. small sample size, not statistically valid); • When a project's specific land use is not covered by the !TE manual or is known to show trip generation characteristics that differ from the categories covered in the !TE manual; • When the land use context, such as high-density infill or development adjacent to transit, is not addressed by the !TE manual; • When the project includes a mix of land uses (mixed-use development type). The Vallco Redevelopment Project meets both of the last two criteria outlined above. Alternative methods to !TE identified by VTA include the NCHRP 8-51 method, which is integrated into our MXD+ tool, which will be used in the estimation of project trip generation. Fehr & Peers' MainStreet tool (asap.fehrandpeers.com/mainstreet), utilizes the MXD+ platform, which has been acknowledged by VTA as an appropriate tool to quantify trip generation of mixed-use developments. '~ Once estimates of vehicle trip generation have been developed, the directions of approach and departure will be estimated based on the locations of complementary land uses, existing travel patterns in the area, and previous studies conducted in the area. The project vehicle trip generation estimates, distribution pattern, and assignments will be refined to respond to comments received from City staff. The VTA Auto Trip Reduction Statement (Appendix C in the VTA TIA Guidelines) will be completed and provided as an attachment to the transportation study. Task 2 -Data Collection We have already collected most necessary intersection count data under a separate contract directly with the City, with the exception of the following five locations: 22. Stevens Creek Boulevard/Torre Avenue-Vista Drive 24. Stevens Creek Boulevard/Portal Avenue 25. Stevens Creek Boulevard/Perimeter Road 32. Miller Avenue/Calle De Barcelona 33. Miller Avenue/Phil Lane As part of this task, we will collect existing AM (7:00 to 10:00 AM) and PM (4:00 to 7:00 PM) peak period intersection counts (including pedestrian, bicycle, and vehicular turning movement volumes) prior to Memorial Day (May 25th, 2015) when many area schools begin to have irregular schedules due to upcoming summer breaks. Task 3 -Evaluate Existing Conditions We will use the level of service (LOS) method approved by VTA, which is currently based on the 2000 Highway Capacity Manual, to analyze the study intersections and freeway segments. Operations of the study intersections will be evaluated for mid-week AM and PM peak hour with level of service calculations using TRAFFIX analysis software. Existing freeway segment operations will be obtained from the most recent CMP monitoring report. Optional Task 3.1: Evaluate Saturday Intersection Operations Saturday peak hour analysis is not included in our initial scope of work, since only the retail uses would primarily add trips to the roadway network (i.e. office and housing uses have relatively low Saturday peak hour trip generation rates). Additionally, the surrounding roadway network generally has greater excess capacity on weekends to accommodate retail traffic. As an optional ~'- task, Fehr & Peers can conduct a focused analysis of weekend operations along Wolfe Road (Homestead Road to Stevens Creek Boulevard) and Stevens Creek Boulevard (Perimeter Road to Lawrence Expressway) using TRAFFIX analysis software for the "No Project" and "Plus Project" scenarios under Existing and Background Conditions. This task would require additional data collection to capture existing weekend peak period traffic volumes. Task 4 -Evaluate Existing Plus Project Conditions The project trip generation estimates, distribution pattern, and assignments developed in Task 1 will be refined to respond to comments received from City staff. Project trips will be added to the existing traffic volumes developed in Task 2 to represent Existing Plus Project Conditions. Calculations will be conducted to estimate the LOS of the study intersections during the AM and PM peak hours with completion of the proposed project. AM and PM peak hour freeway segment level of service calculations will be evaluated following VTA guidelines. Additionally, a left-turn queuing evaluation will be conducted for intersections where the project is adding considerable left-turn volumes during the AM and PM peak hours. (The fee is based on ev~luating up to ten left-turn movements.) Task 5 -Evaluate Background Conditions Traffic projections for approved developments will be obtained from their respective T!As (to be provided by City staff) or estimated using !TE trip generation rates to account for local growth in the area. These projections will be added to the existing volumes to estimate traffic volumes for Background Conditions. Planned and funded roadway and intersection improvements associated with the approved projects will be included in the analysis. AM and PM peak hour intersection level of service calculations will be conducted to evaluate the operating levels of the key intersections. AM and PM peak hour freeway segment level of service calculations will be evaluated as described in Task 6. This scope of work assumes that VTA will provide Fehr & Peers Year 2020 model projections for the study freeway segments. Alternatively if VTA is not able to provide 2020 freeway volumes, Fehr & Peers will use available data to develop a growth factor to apply to the existing freeway volumes obtained from the most recent CMP monitoring report. Task 6 -Evaluate Background Plus Project Conditions The project trip estimates developed in Task 1 will be added to the background traffic volumes developed in Task 5 to represent Background Plus Project Conditions. Calculations will be conducted to estimate the LOS of the study intersections during the AM and PM peak hours after completion of the proposed project. Additionally, a left-turn queuing evaluation will be conducted. Under Background Conditions, traffic impacts on CMP freeway segments in Santa Clara County will be identified when the addition of traffic causes a freeway segment's volume-to-capacity (V/C) ratio to exceed one (1.0) and the proposed project increases traffic demand on that segment by an amount equal to one percent or more of the segment capacity. Task 7 -Evaluate Cumulative Conditions The trip generation estimates developed in Task 1 will be compared to the level of trip generation assumed for the site in the newly adopted General Plan. This information will allow for an evaluation of General Plan Consistency as part of the Environmental Impact Report. We will use the traffic projections developed for the General Plan to develop Cumulative No Project intersection turning movement volume projections. The General Plan trip estimates for the site will be subtracted from project trip estimates developed in Task 1 and added to the Cumulative No Project volumes to represent Cumulative Plus Project Conditions. Calculations will be conducted to estimate the LOS of the study intersections during the AM and PM peak hours with and without completion of the proposed project. Under Cumulative Conditions, traffic impacts on CMP freeway segments in Santa Clara County will be identified per the methodology described in Task 6. This scope of work assumes that VTA will provide Fehr & Peers Year 2040 model projects for the study freeway segments. Optional Task 7.1: Evaluate Project Phasing As an optional task, we will evaluate up to three additional cumulative scenarios that estimate project buildout in phases. For example, if the project is built in two phases, a Cumulative with Phase I Conditions and a Cumulative with Phase I and Phase II conditions can be conducted. ~i- Task 8 -Identify Significant Impacts and Recommend Mitigation Measures The results of the level of service calculations for Existing Conditions could be compared to the results for Existing Plus Project Conditions to identify project impacts under CEQA at the key locations. Similarly, the results of the level of service calculations for Background and Cumulative Plus Project Conditions will be compared to the results for the appropriate No Project Conditions to identify project impacts under City and CMP guidelines. Additionally, we will evaluate impact thresholds related to possible project phasing at up to six intersections under all three analysis scenarios. The impact threshold evaluation will include determining the trip generation threshold at which point impacts are triggered. This information can be used by the City and project applicant to determine possible phasing of the redevelopment project. Mitigation measures will be identified for locations with impacts. These will include capacity enhancement such as lan·e additions and lane reassignment. Modifications to intersection operations, including changes to signal phasing and timing will also be considered. If more substantial capacity enhancements are needed, they will be identified, and the project's fair share contribution (in terms of peak hour traffic volumes) will be calculated. Measures to reduce the project's traffic demand, such as through Transportation Demand Management (TDM) measures will also be identified. The effect of the project (or identified mitigation measures) on transit and bicycle and pedestrian facilities will be evaluated in terms of conflicts with existing or planned facilities or creation of hazardous conditions for bicyclists or pedestrians. Additionally, project impacts to transit capacity will be evaluated by comparing the projected ridership to the capacities of the VTA bus routes near the site. Transit vehicle delay will be evaluated. Task 9 -Conduct Focused Corridor Analysis and Evaluate Site Access To effectively evaluate access to the site and balance the needs of all modes (pedestrians, bicyclists, transit users, and vehicles), Fehr & Peers will create a VISSIM microsimulation model to evaluate operations of the Wolf~ Road corridor between the Homestead Road and Stevens Creek Boulevard and the Vallco Parkway corridor between Wolfe Road and Tantau Avenue under Background plus Project Conditions. We will update the VISSIM model created for the Apple Campus 2 project by incorporating the Background Plus Project volumes developed in Task 6, plus the approved lane geometries and proposed signal timings along Wolfe Road. We will use the model to evaluate roadway operations, to assess the effects of the proposed driveways on Wolfe Road and Vallco Parkway, and to identify improvements to reduce congestions and bottlenecks. Improvements may include signal timing and phasing changes, added lanes, lane reassignments, turn pocket extensions and other geometric changes. Using the results from the VISS!M model and the most recent site plan, we will conduct a site access and circulation assessment to ensure safe and efficient circulation of vehicles, including delivery vehicles, bicycles and pedestrians around the Project site and on the roadways adjacent to the Project site, including: • Site access and interface with roadway network • Delivery vehicle access/circulation and loading zone design • Parking garage access and circulation • Emergency vehicle access and circulation • Vehicular circulation and roadway sizing within the site • Pedestrian access and circulation within and adjacent to the site • Bicycle access and circulation within and adjacent to the site • Transit access to the site • Pedestrian access to and from transit stops This assessment will be conducted for one site plan. Evaluation of additional project plans/permutations will be conducted as an additional service on a time and materials basis. Ootional Task 9.1: Conduct Corridor Analvsis along Stevens Creek Boulevard As an optional task we will expand the study area for the corridor analysis to include the Stevens Creek Boulevard between Perimeter Road and Lawrence Expressway. The estimated cost for this optional task, assuming the same analysis parameters as outlined in Task 9, is $15,000. Task 10-Evaluate Ramp Queueing As part of this task, we will evaluate queuing at the on-and off-ramps at the 1-280/Wolfe Road and 1-280/Lawrence Expressway interchanges due to the added traffic from the Project. Specifically, we will compare the queue results to the available ramp storage capacity under all three plus Project analysis scenarios. Within the study area freeway on-ramps are equipped with ramp meters. The on-ramp analysis will conducted using basic ramp-metering analysis principals and existing ramp-metering plans from Caltrans. The off-ramp queues will be evaluated using ramp-terminal intersection queue estimates from the intersection LOS calculations (using TRAFFIX 8.0 software package). Task 11 -Evaluate Parking Supply The proposed parking supply will be evaluated in comparison to City Code requirements. The projected demand will be evaluated using !TE rates and shared parking, where apporpriate. The potential for parking demand spillover to adjacent streets and neighborhoods will be evaluated. Task 12 -Estimate VMT Fehr & Peers will prepare an estimate of the vehicle miles traveled (VMT) due to the project for use in greenhouse gas (GHG) emissions estimation and in response to SB 743. We will develop the average trip lengths based on a select zone analysis from the City of Cupertino travel demand model. The VMT estimates will be prepared in 5 mile per hour speed bins. These estimates would be used by another consultant to estimate GHG emissions. Task 13 -Conduct Neighborhood Intrusion Analysis The proposed project has the potential to add traffic to the residential streets in adjacent neighborhoods, including the area north of Stevens Creek Boulevard between Blaney Avenue and Wolfe Road as well as Miller Avenue just south of Stevens Creek Boulevard. The amount of project traffic potentially added to these areas and measures to reduce it will be addressed in the TIA. Task 14 -Evaluate Construction Traffic Construction traffic impacts will be evaluated using the estimated number of trucks and construction workers that will be on site on a given day and the rerouting of traffic that may occur with road detours or staging. Construction parking will also be evaluated based on the number of workers and construction phasing. It is assumed that construction activity information will be provided by the project sponsor. The construction traffic will also take into account other construction activity occurring in the area. If construction impacts are identified, mitigation measures such as a construction traffic management plan will be listed and will ultimately include truck routes and construction hours. This task includes up to 40 staff hours to evaluate potential construction traffic impacts. Task 15 -Review Transportation Demand Management (TDM) Program We will review the TDM program being developed by the project applicant to evaluate the reasonableness of the proposed TDM measures and expected TDM reductions goals. We will use our TDM+ tool to estimate the TDM reductions that could be achieved from the proposed office developments. This task includes up to 20 hours to review the proposed TDM program. Ootional Task 15.1: Evaluate Effects of TD/VJ Program If the proposed TDM program proposes greater reductions than accounted for in Project's trip generation estimates in Task 1, we can evaluate the effect of those trip reductions on the significant impacts and mitigation measures at intersections and freeway segments. Task 16 -Prepare Documentation We will document our findings in a report that will include text, graphics, and tables to describe study analysis methods and results, the potential transportation impacts of the proposed project, and corresponding mitigation measures. We will submit the Administrative Draft TIA in electronic format for review by the City and David J. Powers and Associates (DJP). This scope assumes up to 40 staff hours to respond to all comments on the Administrative Draft TIA report and preparing the DraftTIA. Fehr & Peers will submit the Draft TIA in electronic format for review by the City, VTA, DJP, and other agencies as applicable. This proposal assumes up to 20 staff hours to respond to comments on the Draft TIA report. Once the comments have been incorporated, we will produce a Final TIA and submit an electronic for inclusion in the Draft Environmental Impact Report. This proposal assumes up to 40 staff hours to respond to agency and public comments on the Draft EIR. Comments requiring additional technical analysis or additional staff time beyond the number of hours budgeted will be considered additional services and will only be conducted upon written authorization and billed on a time-and-materials basis. Task 17 -Attend Meetings The scope of work includes attendance at one kick-off meeting, 20 conference calls, six in-person project meetings, two study sessions, and two public hearings. Attendance at additional conference calls, meetings, or public hearings will be conducted upon receipt of written authorization and billed on a time-and-materials basis. Additional Services The scope of work has been tailored to meet the specific requirements of this project. However, during the course of the study, additional services may be required. Additional services that are beyond the scope of this study include, but are not limited to, conducting more than five AM and PM peak period intersection counts, evaluating additional study locations or project descriptions, preparing conceptual designs of mitigation measures, responding to comments requiring more than the designated hours, and attending more than one kick-off meeting, 20 conference calls, six project meetings, two study sessions, and two public hearings. Fehr & Peers will conduct additional services only upon receipt of written authorization. FIRST AMENDMENT TO AGREEMENT BETWEEN THE CITY OF CUPERTINO AND DAVID J POWERS & ASSOCIATES, INC FOR THE CEOA ENVIRONMENTAL REVIEW FOR THE V ALLCO SPECIFIC PLAN REDEVELOPMENT PROJECT This First Amendment to the Agreement between the City of Cupertino and David J Powers & Associates, for reference dated June 17, 2015, is by and between the CITY OF CUPERTINO, a municipal corporation (hereinafter "City") and David J Powers & Associates a California Corporation ("Consultant") whose address is 1871 The Alameda, Suite 200, San Jose, California 95126, and is made with reference to the following: RECITALS: A. On September 21, 2015, an agreement was entered into by and between City and Consultant (hereinafter "Agreement") for the CEQA environmental review for the Valko specific plan redevelopment project. B. City and Consultant desire to modify the Agreement on the terms and conditions set forth herein. NOW, THEREFORE, it is mutually agreed by and between and undersigned parties as follows: 1. Paragraph 9 of the Agreement is modified to read as follows: Standard Indemnification: Consultant shall, to the fullest extent allowed by law and without limitation of the provisions of this Agreement related to insurance, with respect to all services performed in connection with the Agreement, indemnify, defend, and hold harmless the City and its officers, officials, agents, employees and volunteers from and against any and all liability, claims, actions, causes of action or demands whatsoever against any of them, including any injury to or death of any person or damage to property or other liability of any nature, whether physical, emotional, consequential or otherwise, arising out, pertaining to, or related to the negligent performance of this Agreement by Consultant or Consultant's employees, officers, officials, agents or independent contractors. Such costs and expenses shall include reasonable attorneys' fees of counsel of City's choice, expert fees and all other costs and fees of litigation. The acceptance of the Services by City shall not operate as a waiver of the right of indemnification. The provisions of this Section survive the completion of the Services or termination of this Contract. 2. Except as expressly modified herein, all other terms and covenants set forth in the Agreement shall remain the same and shall be in fu II force and effect. IN WITNESS WHEREOF, the parties hereto have caused this modification of Agreement to be executed. CONSULTANT orporation X-- itle: David Brandt, City Manager 11z1 /IL Council Authorization June 16, 2015 RECOMMENDED FOR APPROVAL: By: 1/Z<71~~? Title t . , r--1 ~ / t' b If'""::-- AnROVED AS TO FORM: ~]tl~ ~yAttorney CITY OF CUPERTINO Legislation Details (With Text) File #: Version:115-1202 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:11/3/2015 City Council On agenda:Final action:11/17/2015 Title:Subject: Amendment to increase City funding for the Memorandum of Understanding (MOU) (Attachment A) with the Santa Clara Valley Water District (District) for their Landscape Conversion Rebate Program (Program) Sponsors: Indexes: Code sections: Attachments:Staff Report A - Memorandum of Understanding B - Draft Resolution C - October 30, 2015 District Press Release Action ByDate Action ResultVer. City Council11/17/2015 1 Subject:Amendment to increase City funding for the Memorandum of Understanding (MOU) (Attachment A)with the Santa Clara Valley Water District (District)for their Landscape Conversion Rebate Program (Program) Staff recommends Council adopt Resolution No.15-104 amending Approved FY 15/16 Operating Budget (Attachment B)and Authorize the City Manager to execute an amendment to the MOU with the District in an increased amount of up to $115,000 to supplement the District’s Program for the benefit of Cupertino residents and businesses CITY OF CUPERTINO Printed on 11/10/2015Page 1 of 1 powered by Legistar™ 1 PUBLIC WORKS DEPARTMENT CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3354 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: November 17, 2015 Subject Amendment to increase City funding for the Memorandum of Understanding (MOU) (Attachment A) with the Santa Clara Valley Water District (District) for their Landscape Conversion Rebate Program (Program). Recommended Action Staff recommends Council adopt a draft Resolution amending Approved FY 15/16 Operating Budget (Attachment B) and Authorize the City Manager to execute an amendment to the MOU with the District in an increased amount of up to $115,000 to supplement the District’s Program for the benefit of Cupertino residents and businesses. Description At its June 16, 2015 meeting, the City Council directed staff to amend the FY15/16 budget by making available up to $75,000 for Cupertino residents and businesses who participate in the District’s Program. The Program is designed to assist homeowners and commercial, industrial and institutional property owners to increase efficiency in outdoor water use by offering $2.00 per square foot for converting water intensive landscaping to qualifying low- water landscaping. City funding has allowed an additional $1 per square foot to be added to the District’s incentive for the first 1,000 square feet for residential sites and for the first 10,000 square feet for non-residential sites. At the beginning of the current four-year drought in 2011, the District funded its Program at $700,000. Interest has been high, with the District supporting the replacement of 160,000 square feet and 1.1M square feet of turf, respectively, in 2013 and 2014. To expand participation further, the District increased funding in 2015 to $6.5 million. Due to unprecedented interest this year, the District allocated an additional $4.6M on October 27, 2015, in order to fund the rebate applications received through October. 2 Until additional District funding is allocated, the District is no longer scheduling pre- inspection visits and all new applications are being placed on a wait list until more funding is made available—which is not anticipated until at least July 1, 2016. Attachment C is the October 30th District press release regarding the Program. According to the District, 78 Cupertino property owners have received supplemented rebates of $3 per square foot, with an average City contribution per rebate of $684. Another 50 property owners are in the queue and have been advised by the District that they may receive up to $3.00 per square foot, rather than the District’s rebate of $2.00 per square foot, if the City approves additional funding for the program. The $75,000 to augment the District’s Program for Cupertino property owners has been fully expended. Approval of this request to add $40,000 to the Program will insure that 50 property owners in the queue will receive the same level of rebate as those completed earlier in the year. Cupertino’s potential funding needed to fund a FY16/17 Program will be evaluated as the District secures additional funding. Other agencies that have collaborated with the District for similar Programs include:  City of Palo Alto  City of Morgan Hill  City of Santa Clara  City of Sunnyvale  City of San Jose To date, only the Cities of San Jose and Cupertino have run out of funds. The City of San Jose is likely to add additional funds. Sustainability Impact Actions taken to conserve water across the City’s municipal portfolio directly implement Cupertino’s Climate Action Plan Measure M-F-7: Conserve Water through Efficient Landscaping and enable the City to advance its emissions reduction goals arising from onsite water use. Further, these visible actions showcase the City’s commitment to protecting this diminishing non -renewable resource with the goal of spurring similar water conservation action across the community. Fiscal Impact The Draft Resolution will amend and add to the approved FY15/16 Operating Budget in an amount not to exceed $40,000 for additional funding to supplement the District’s Program. Funding will be limited to the $75,000 previously authorized plus the $40,000 recommended for a total amount up to $115,000. The additional $40,000 will be added 3 to the FY 15/16 Operating Budget Account 100-80-800 900-990 (Public Works Administration). _____________________________________ Prepared by: Roger Lee, Assistant Director, Public Works and Erin Cooke, Assistant to the City Manager & Sustainability Manager Reviewed by: Timm Borden, Director of Public Works Approved for Submission by: David Brandt, City Manager Attachments: A - Memorandum of Understanding with the Santa Clara Valley Water District for a Landscape Rebate Program dated June 16, 2015 with Resolution 15-057 B - Draft Resolution C - October 30, 2015 District Press Release MEMORANDUM OF UNDERSTANDING BETWEEN THE SANTA CLARA VALLEY WATER DISTRICT AND THE CITY OF CUPERTINO FOR A LANDSCAPECONVERSION REBATE PROGRAM This MEMORANDUM OF UNDERSTANDING (MOU) between the Santa Clara Valley Water District, an Independent special district created by the California Legislature (hereinafter referred to as WATER DISTRICT) and the·City of Cupertino (hereinafter referred to as CUPERTINO) sets forth the respective roles of the WATER DISTRICT and CUPERTIN O in regard to the WATER DISTRICT'S WATER CONSERVATION LANDSCAPE CONVERSION REBATE PROGRAM (hereinafter referred to as PROGRAM) is made and entered into this Junelb~2o.is. RECITALS · WHEREAS the PROGRAM involves providing Water Conservation Landscape Conversion Rebates for properties located within CUPERTINO's jurisdictiOn; and WHEREAS the PROGRAM includes the Landscape Conversion Rebat~ Program for Water Eff.icient Landscape Conversions; and · WHEREAS the PROGRAM is an appropriate measµre for the Best Ma.nagement Practices addressed in the California Urban Water Conservation Co'lincil's MOU regarding Urban Water Conservation in California; and · WHEREAS the WATER DISTRICT has established the PROGRAM, in part, .to provide financial incentive to remove existing turf lawns; and WHEREAS CUPERTINO wishes to participa te in the PROGRAM and provide additional incentives for Cupertino residents to remove existing lawns. NOW,. THEREFORE, in consideration of the recitals and mutual obligations of the parties expressed in this MOU, WATER DISTRICT and CUPERTINO agree as follows: 1. WATER DISTRICT'S RESPONSIBILITIES 1 a) Admihistrat:ion of the PROGRAM, which administration shall include the creation of the PROGRAM brochures and applications. b) Collection and analysis of data to determine water savings .. c) Administration of all PROGRAM funds including, but not limited to: • Processing the payment of the· amounts set forth in 2.b. below, to eligible persons residing in CUPERTINO ("ELIGIBLE RESIDENTS). This supplemental rebate amount shall be in addition to the customary amounts paid by the WATER DISTRICT for the PROGRAM. • Payment of standard PROGRAM amounts to ELIGIBLE RESIDENTS within 8·12 weeks of receipt of CUPERTINO residential applicant's request. d) Invoicing CUPERTINO, on a quarterly basis. e) Work cooperatively with CUPERTINO in appropriately advertising the PROGRAM to targeted customers. 2. CUPERTINO'S RESPONSIBILITIES a) Work cooperatively with WATER DISTRICT in appropriately advertising the PROGRAM to the targeted customers. b) CUPERTINO must pay WATER DISTRICT as set forth below for each activity performed by the WATER DISTRICT in the CUPERTINO service area: • Up to $1 .00 per each square foot of turf removed per qualified resid ential I commercial rebate limited to a maximum amount of $1,000 per residential site and $10,000 per commercial site, as per the District's Landscape Rebate Program requirements. c) CUPERTINO's obligation to pay for the PROGRAM activities is capped at a total maximum of $75,000 . d) Make payment to WATER DISTRICT within 60 days of receipt of Invoice from WATER DISTRICT . 3. HOLD HAR1\1LESS AND LIABILITY .2 Each Party ("Indemnifying Party") agrees to indemnify, defend at its own expense, including attorneys' fees, and hold harmiess the other Party ("Indemnified Party") from and against all claims, costs, penalties, causes of action, demands, losses and liability of any nature whatsoever, including but not limited to liability for bodily injury, sickness, disease or death, property damage (including loss of use) or violation of law,_ caused by or arising out of or related to the negligence, or willful misconduct of that Indemnifying Party, its officers or employees, or any other agent acting pursuant to this MOU. · 4. DOCUMENT REVIEW WATER DISTRICT and CUPERTINO will, upon reasonable advance written notice, make available for inspection to the other party records, books and other docum.ents relating to the PROGRAMS. 5. TERM The term of the MOU is from July 1, 2015 to June 30, 2016, or until funds are depleted, whichever occurs first. The term of the MOU may be extended by mutual consent of the Parties. This MOU shall be contingent upon approval of program funding each fiscal year by both the WATER DISTRICT'S Chief Executive Officer and by CUPERTINO. 6. NOTICE Any notice, payment, credit or instrument,required or permitted to be given hereunder shall be deemed received upon personal delivery or five (5) days after deposit in any United States mail depository, first class postage prepaid and addressed to the party for whom intended; or on the same day as a facsimile transmission is sent as long as original is placed in the mail on the same day. If to WATER DISTRICT: Santa Clara Valley Water District 5760 Almaden Expressway San Jose, CA 96118 Attn: Conse rvation Programs If to CUPERTINO: Public Works Department 3 City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 Attn: Environmental Programs Either party may change such address by notice given to the other party as provided in this Section 6. I 7. AMENDMENTS The MOU may only be amended by written agreement executed by both parties. 8. ASSIGNMENT Neither party is allowed to assign, sublet, or transfer this MOU or any of the rights or interests in this MOU without the written consent of the 'other party. 9. SEVERABILITY The partial or total invalidity of one or more parts of this MOU will not affect the intent or validity or remaining parts of this MOU. 10. GOVERNING LAW This MOU is a contract under the laws of the State of California and for all purposes must be interpreted in accordance with such laws. 11. TERMINATION OF AGREEMENT This MOU may b e terminated by either party hereto for any reason upon thirty (30) days written notice to the other Party. 12. SIGNATURES The individuals executing· this MOU represent and warrant that they have the legal capacity and authority to do so on behalf of their r espective legal entitles. In WITNESS WHEREOF, the parties have executed this MOU as of th e effective date. 4 APPROVED AS TO FORM: Carol·Karode ~~ttorney . ~ 'Lity of Cupertino SANTA CLARA VALLEY WATER DISTRICT . David Brandt City Manager City of Cupertino An independent special district created by the Califorrua Legislature !liifu~~ Anthony p;lc er Sr. Assi~t District Counsel Santa Clara Valley Water District 5 ·~~ Be:uIGie Chief Executive Officer Santa Clara Valley Water District , RESOLUTION NO. 15-057 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUT E AND ADMINISTER A MEMORANDUM OF UNDERSTANDING WITH THE SANTA CLARA VALLEY WATER DISTRICT FOR A LANDSCAPE CONVERSION REBATE PROGRAM AND APPROVE AN AMENDMENT TO FY15/16 ANNUAL OPERA TING BUDGET TO APPROPRIATE $75,000 WHEREAS, the City of Cupertino, a municipal corporation and general law city duly organized and existing under and pursuant to the laws of the State of California (City) is authorized to enter contracts on its behalf and for the benefit of the City; and .WHEREAS, the reasons supporting the entrance of the City into the Memorandum of Understanding with the Santa Clara Valley Water District for Conservation Programs is set forth in detail in the staff reports and hearings for June 2, 2015 and June 16, 2015 Council meetings and are incorporated herein by reference; and WHEREAS, the consideration by the City Council of the adoption of this Resolution has been duly noticed pursuant to applicable laws and Council provided members of the .p u blic an opportunity to comment and be heard and considered all testimony and evidence in connection with the adoption of thi s Re solution; and WHEREAS, pursuant to the provisions and requirements of the California Environmental Quality Act of 1970, toge ther with r elated State CEQA Guidelines (collec t ively, "CEQA"), the City determines that the provisions of this Resolution are exempt as a project intended to protect the environment and natural resources (14 Cal.Regs. 15 307, 15308); and WHEREAS, the City Council d e termines that the adoption of this Resolution is in the public interest. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CUPERTINO DOES HEREBY FIND, DETERMINE, RESOLVE, .AND ORDER AS FO LLOWS: Section 1. Recitals . The City Co uncil does h erby find, determine, and r esolve that the foregoing r ecitals are true and correct. Resolution No. 15-057 Page2 Section 2. Approval and Authorization. The City Council does further resolve that: a. The Memorandum of Understanding with the Santa Clara Valley Water District (MOU) for water conservation programs in substantially in U1e form attached hereto as Exhibit /1 A" is approved; b. The City Manager is delegated the authority and is authorized to negotiate and execute the MOU in substantially in the form as attached Exhibit /1 A 11 , provided that the· funds do not exceed seventy five thousand dollars ($75,000.00). Section 3: Effective date: This Resolution is effective immediately upon adoption. PASS ED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 161h day of June, 2015, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ·ATTEST: Members of the City Council Sinks, Chang, Paul, Vaidhyanathan, Wong None None None APPROVED:~,(] <](d__~ Grace Schmidt, City Clerk Rod Sinks, Mayor, City of Cupertino ATTACHMENT B 1 RESOLUTION NO. 15- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AND ADMINISTER AN AMENDMENT TO THE MEMORANDUM OF UNDERSTANDING WITH THE SANTA CLARA VALLEY WATER DISTRICT FOR A LANDSCAPE CONVERSION REBATE PROGRAM AND APPROVE AN AMENDMENT TO FY15/16 ANNUAL OPERATING BUDGET TO APPROPRIATE AN ADDITIONAL $40,000 WHEREAS, the City of Cupertino, a municipal corporation and general law city duly organized and existing under and pursuant to the laws of the State of California (City) is authorized to enter contracts on its behalf and for the benefit of the City; and WHEREAS, the reasons supporting the entrance of the City into the Memorandum of Understanding with the Santa Clara Valley Water District for Conservation Programs is set forth in detail in the staff reports and hearings for June 2, 2015 , June 16, 2015, and November 17, 2015, Council meetings and are incorporated herein by reference; and WHEREAS, due to the popularity of the Landscape Conversion Rebate Program and California’s extended drought an amendment to increase available funds to the June 16, 2015 Memorandum of Understanding with the Santa Clara Valley Water District is needed; and WHEREAS, the consideration by the City Council of the adoption of this Resolution has been duly noticed pursuant to applicable laws and Council provided members of the public an opportunity to comment and be heard and considered all testimony and evidence in connection with the adoption of this Resolution; and WHEREAS, pursuant to the provisions and requirements of the California Environmental Quality Act of 1970, together with related State CEQA Guidelines (collectively, "CEQA"), the City determines that the provisions of this Resolution are exempt as a project intended to protect the environment and natural resources (14 Cal.Regs. 15307, 15308); and WHEREAS, the City Council determines that the adoption of this Resolution is in the public interest. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CUPERTINO DOES HEREBY FIND, DETERMINE, RESOLVE, AND ORDER AS FOLLOWS: ATTACHMENT B 2 Section 1. Recitals. The City Council does hereby find, determine, and resolve that the foregoing recitals are true and correct. Section 2. Approval and Authorization. The City Council does further resolve that: a. The Memorandum of Understanding with the Santa Clara Valley Water District (MOU) for water conservation programs was approved on June 16, 2015; b. The City Manager is delegated the authority and is authorized to negotiate and execute an amendment to the MOU in substantially in the form as attached Exhibit “A”, provided that the additional funds, when added to the June 16, 2015 authorized amount of $75,000, do not in total exceed one hundred fifteen thousand dollars ($115,000.00); c. The Fiscal Year 2015/2016 Operating Budget is amended to include an appropriation for this purpose. Section 3: Effective date: This Resolution is effective immediately upon adoption. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 17th day of November, 2015, by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: ________________________________ Grace Schmidt, City Clerk Rod Sinks, Mayor EXHIBIT A 3 AMENDMENT TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE SANTA CLARA VALLEY WATER DISTRICT AND THE CITY OF CUPERTINO FOR A LANDSCAPE CONVERSION REBATE PROGRAM On or about June 16, 2015, the Cupertino City Council approved a MEMORANDUM OF UNDERSTANDING (MOU) between the Santa Clara Valley Water District, an Independent special district created by the California Legislature (hereinafter referred to as WATER DISTRICT) and the City of Cupertino (hereinafter referred to as CUPERTINO) which set forth the respective roles of the WATER DISTRICT and CUPERTINO with respect to the WATER DISTRICT'S WATER CONSERVATION LANDSCAPE CONVERSION REBATE PROGRAM (hereinafter referred to as PROGRAM). RECITALS WHEREAS, the PROGRAM involves providing Water Conservation Landscape Conversion Rebates for properties located within CUPERTINO's jurisdiction; and WHEREAS, the PROGRAM includes the Landscape Conversion Rebate Program for Water Efficient Landscape Conversions; and WHEREAS, the PROGRAM is an appropriate measure for the Best Management Practices addressed in the California Urban Water Conservation Council's MOU regarding Urban Water Conservation in California; and WHEREAS, the WATER DISTRICT has established the PROGRAM, in part, to provide financial incentive to remove existing turf lawns; and WHEREAS the PROGRAM has proven to be a success and has encouraged conservation measures by CUPERTINO residents; WHEREAS, CUPERTINO wishes to increase financial participation in the PROGRAM and increase funding in order to provide additional incentives for Cupertino residents to remove existing lawns. NOW, THEREFORE, in consideration of the recitals and mutual obligations of the parties expressed above and in the MOU, WATER DISTRICT and CUPERTINO agree to amend the MOU as follows: EXHIBIT A 4 1. The MOU, Paragraph 2, “Cupertino’s Responsibilities”, is hereby amended to read as follows: a. Work cooperatively with WATER DISTRICT in appropriately advertising the PROGRAM to the targeted customers. b. CUPERTINO must pay WATER DISTRICT as set forth below for each activity performed by the WATER DISTRICT in the CUPERTINO service area:  Up to $1.00 per each square foot of turf removed per qualified residential and for commercial rebate, up to $1,000 per residential and up to $10,000 per commercial site, as per the District’s Landscape Rebate Program requirements. c. CUPERTINO's obligation to pay for the PROGRAM activities is capped at a total maximum of $115,000. 2. All other provisions of the MOU remain without change. In WITNESS WHEREOF, the parties have executed this amendment to the MOU as of November , 2015. APPROVED AS TO FORM: ______________________ ____________________ Colleen Winchester David Brandt Acting City Attorney City Manager City of Cupertino City of Cupertino SANTA CLARA VALLEY WATER DISTRICT An independent special district created by the California Legislature _______________________ Anthony Fulcher Sr. Assistant District Counsel Santa Clara Valley Water District ATTACHMENT C 1 Expanded budget for turf replacement rebates nearly spent Contact: Marty Grimes Office: 408-630-2881 Mobile: 408-681-9265 October 30, 2015 SAN JOSE—On Oct. 27, 2015, the Santa Clara Valley Water District Board of Directors allocated an additional $4.6 million to the district’s popular landscape conversion rebate program. Nevertheless, due to the unprecedented interest in the program, the expanded annual budget of $22.8 million is nearly spent for the year. The water district is actively looking for additional funding that can be used to allow the program to continue. In the meantime, the water district is no longer scheduling pre-inspection visits, the first step in the accessing the rebate program. Applications for the program will be processed in the order in which they are received. After the entire annual budget of $22.8 million is allocated to landscape conversion projects, all other applications will be placed on a waiting list until more funding is available. A new cycle of funding is expected to begin in Fiscal Year 2017, which begins July 1, 2016. The landscape conversion rebate program has exploded in popularity during California’s extended drought. In 2014, the water district issued rebates to convert more than 1.1 million square feet. In 2015, 2.85 million square feet of turf have already been converted. By comparison, only 160,000 square feet were converted in 2013. Last April, Governor Brown called for 50 million square feet of turf removal throughout California. We estimate that our current budget will result in more than 8 million square feet of turf removal in our county alone, achieving 16 percent of the governor’s statewide goal. “This program has been so successful that its annual budget has been expended about 8 months early,” said district board chair Gary Kremen. “We are scouring our budget to find additional funds and we will be bringing this back to the board soon.” Even though the water district’s annual budget for the program is nearly spent, Chair Kremen encourages residents and businesses to go forward with landscape conversions anyway. “Many folks have let their lawns go brown, which has helped us reach our water use reduction goals. We hope many of them choose to give up their lawns for good, even after this drought is over.” While the district’s landscape rebate funding is nearly exhausted for the year, the board has authorized funding to support the “Lawn Buster” program through the non-profit organization Our City Forest. This program will replace up to 170,000 square feet of turf for individuals who are low-income, seniors, disabled or veterans or sites that are located in disadvantaged communities. Expanding the landscape conversion rebate program has been one of the water district’s key responses to the drought. Rebate amounts offered by the district were increased to $2 per square foot, up from $1. Several local municipalities have contributed funds to increase that amount even further in their cities. ATTACHMENT C 2 Other water conservation programs, such as the free Water Wise House Call program and Laundry-to-Landscape gray water rebate program, are still accepting new requests. Visit watersavings.org for information on all of the district’s water conservation programs. CITY OF CUPERTINO Legislation Details (With Text) File #: Version:115-1203 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:11/3/2015 City Council On agenda:Final action:11/17/2015 Title:Subject: 2016 Pavement Maintenance Project, Project No. 2016-15 authority to award contract Sponsors: Indexes: Code sections: Attachments:Staff Report A - List of Streets to Receive Pavement Maintenance Treatment B - Draft Contract Action ByDate Action ResultVer. City Council11/17/2015 1 Subject: 2016 Pavement Maintenance Project, Project No. 2016-15 authority to award contract Authorize the City Manager to award and execute the 2016 Pavement Maintenance Project contract,including a 10%contingency,if the lowest responsive bid is within the established budget and there are no unresolved bid protests CITY OF CUPERTINO Printed on 11/10/2015Page 1 of 1 powered by Legistar™ PUBLIC WORKS DEPARTMENT CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3354 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: November 17, 2015 Subject 2016 Pavement Maintenance Project, Project No. 2016-15 authority to award contract. Recommended Action Authorize the City Manager to award and execute the 2016 Pavement Maintenance Project contract, including a 10% contingency, if the lowest responsive bid is within the established budget and there are no unresolved bid protests. Discussion Staff recommends that Council authorize the City Manager to award and execute the construction contract for the 2016 Pavement Maintenance Project, based on bids received on November 10, 2015. Results of the bids were not available at the writing of this report. The bid result report will be provided under separate cover prior to the hearing of this matter. The Engineer’s Estimate for the project is $3,400,000 and is based upon favorable competitively bid unit costs of a similar project awarded this past May. Council approved a midyear increase to the FY14/15 operating budget, allowing staff to advertise this project early relative to many nearby cities. This project provides for various asphalt treatments on over 59 streets throughout the City. The majority of the improvements are in residential areas on streets in poor condition. Sustainability Impact No sustainability impact. Fiscal Impact Approved funding of $6M was provided in the FY15/16 Operating Budge t account #270-85-821 900-921 (Pavement Maintenance). Of this amount, approximately $4.25M is available in the 2016 Pavement Maintenance Project budget. _____________________________________ Prepared by: Roger Lee, Assistant Director of Public Works Reviewed by: Timm Borden, Director of Public Works Approved for Submission by: David Brandt, City Manager Attachments: A - List of Streets to Receive Pavement Maintenance Treatment B – Draft Contract 2016 PAVEMENT MAINTENANCE PROJECT ATTACHMENT A - STREET LIST STREET NAME FROM TO Treatment AMHERST PORTAL END OVERLAY AMISTAD CT VOSS END OVERLAY BAHL ST VISTA KNOLL AINSWORTH OVERLAY BARBARA LN PEPPER TREE SCOFIELD OVERLAY BARNHART AVE MORETTI STERLING OVERLAY BARRANCADR HOMESTEAD PENINSULAR OVERLAY BAXLEY CT LINDA VISTA END OVERLAY BILICH WHEATON END OVERLAY BONNY DR PEPPER TREE MC CLELLAN OVERLAY CAROLINE DR MAXINE PENNINSULAR OVERLAY CAROLLEE DR WHEATON CHAVOYA OVERLAY CAMARDA CT RANDY END OVERLAY CANYON OAK WAY 21100 CANYON OAK MANZANITA OVERLAY CARTA BLANCA ST VISTA KNOLL AINSWORTH OVERLAY CARVER DR TUGGLE PENDERGAST OVERLAY CHACE STARLING END OVERLAY CHAVOYA CAROL LEE RANDY OVERLAY CRESTLINE DR SHADOWHILL CANDLELIGHT OVERLAY CUPERTINO RD CRESCENT STEVENS CREEK OVERLAY FARALLONE DR BOLLINGER JOHN OVERLAY FITZGERALD DR STOKES AV DEMPSTER OVERLAY FOREST AVE RANDY LN W BLANDY OVERLAY GARDENA CT GARDENA DR END OVERLAY GARDENA DR CASTINE STELLING OVERLAY HALE PL GARDENA DR END OVERLAY HIBISCUS CT HIBUSCUS DR END OVERLAY HIBISCUS DR BARRANCA MAXINE OVERLAY HOLLYHEAD LN SQUIREWOOD END OVERLAY HUNTER WY MORENGO CARVER OVERLAY HUNTERSTON PL ROBINDELL ORION OVERLAY JOHN DR BLANEY FARALLONE OVERLAY KENDLE ST VISTA KNOLL AINSWORTH OVERLAY LA RODA CT LA RODA END OVERLAY LA RODA DR SUISUN END OVERLAY LINDA ANNCT CHACE END OVERLAY LINDA VISTA DR SANTA TERESA HYANNISPORT OVERLAY LOCKWOOD DR ALCALDE VOSS OVERLAY LOREE AVE MORETTI CALVERT OVERLAY LOREE AVE STERLING JOHNSON OVERLAY MCCLELLAN RD SEPTEMBER DR DE ANZA BLVD DIG OUTS MERRIMAN RD VOSS END OVERLAY MYER PL WHEATON END OVERLAY PATRIC CT FARALLONE END OVERLAY PENINSULA AVE STEVENS CREEK FITZGERALD OVERLAY PENNINSULAR AVE CAROLINE BARRANCA OVERLAY PEPPER TREE LN STELLING BONNY OVERLAY RANDY LN FOREST AVE STEVENS CREEK OVERLAY SAN LEANDRO AVE MCCLELLAN SANTA PAULA OVERLAY SAN JUAN RD CORDOVA STEVENS CANYON LEVELING SCOFIELD BARBARA WESTERN OVERLAY RIEDEL WHEATON END OVERLAY STELLING RD I-280 BRIDGE STEVENS CREEK BLVD DIG OUTS WALLACE BARRANCA MAXINE OVERLAY WEST HILL CT WESTHILL END OVERLAY WEST HILL LN STELLING END OVERLAY WOLFE RD VALLCO PKWY STEVENS CREEK BLVD DIG OUTS WHEATON DR PORTAL EAST (END)OVERLAY WHEATON DR BLANEY N PORTAL OVERLAY WHEATON DR W BLANEY CAROL LEE OVERLAY WILKINSON AVE HYANNISPORT COLUMBUS OVERLAY Project No. 2016-15 City of Cupertino 00520 - 1 Contract 2016 Pavement Maintenance DOCUMENT 00520 CONTRACT THIS CONTRACT, dated this day of , 2015 , by and between ________________________ whose place of business is located at ____________________________ (“Contractor”), and the CITY OF CUPERTINO, a Municipal Corporation of the State of California (“City”) acting under and by virtue of the authority vested in the City by the laws of the State of California. WHEREAS, City, on the _____ day of _______________, 2015 awarded to Contractor the following Project: PROJECT NUMBER 2016-15 2016 PAVEMENT MAINTENANCE PROJECT NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, Contractor and City agree as follows: Article 1. Work 1.1 Contractor shall complete all Work specified in the Contract Documents, in accordance with the Specifications, Drawings, and all other terms and conditions of the Contract Documents. Article 2. Agency and Notices to City 2.1 City has designated Roger Lee, Assistant Director, Public Works – Maintenance, to act as City’s Authorized Representative(s), who will represent City in performing City’s duties and responsibilities and exercising City’s rights and authorities in Contract Documents. City may change the individual(s) acting as City’s Authorized Representative(s), or delegate one or more specific functions to one or more specific City’s Representatives, including without limitation engineering, architectural, inspection and general administrative functions, at any time with notice and without liability to Contractor. Each City’s Representative is the beneficiary of all Contractor obligations to City, including without limitation, all releases and indemnities. 2.2 All notices or demands to City under the Contract Documents shall be to City’s Authorized Representative at: 10300 Torre Avenue, Cupertino, California 95014 or to such other person(s) and address(es) as City shall provide to Contractor. Article 3. Contract Time and Liquidated Damages 3.1 Contract Time. The Contract Time will commence to run on the date indicated in the Notice to Proceed. City may give a Notice to Proceed at any time within 30 Days after the Notice of Award. Contractor shall not do any Work at the Site prior to the date on which the Contract Time commences to run. Contractor shall achieve Final Completion of the entire Work and be ready for Final Payment in accordance with Section 00700 (General Provisions) within 110 working days as provided in Document 00700 (General Provisions). All work on streets near schools and all striping enchancements shall be complete prior to August 15, 2015. See Attachment A for a list school streets. Several utility main replacements will occur within the project area. Paving will follow completion of utility work. Contractor will coordinate schedule accordingly. See Attachment for a list of utility projects identified to date. Project No. 2016-15 City of Cupertino 00520 - 2 Contract 2016 Pavement Maintenance Project 3.2 Liquidated Damages. City and Contractor recognize that time is of the essence of this Contract and that City will suff er financial loss in the form of contract administration expenses (such as project management and consultant expenses), if all or any part of the Work is not completed within the times specified above, plus any extensions thereof allowed in accordance with the Contract Documents. Consistent with Document 00700 (General Provisions), Contractor and City agree that because of the nature of the Project, it would be impractical or extremely difficult to fix the amount of actual damages incurred by City because of a delay in completion of all or any part of the Work. Accordingly, City and Contractor agree that as liquidated damages for delay Contractor shall pay City: 3.2.1 $1,500 for each Calendar Day that expires after the time specified herein for Contractor to achieve Substantial Completion as specified above. 3.2.2 $1,500 for each Calendar Day that expires after the time specified herein for Contractor to achieve Final Completion of the entire Work as specified above. 3.2.3 $250 per day per location for failure to adjust utility facilities as required per Document 0850 section 6. 3.2.4 $500 per day for failure to place temporary pavement markers as required by Document 850 Section 7. 3.2.5 $150 per day for failure to place final traffic striping as required by Document 0850, Section 7. 3.2.6 $100 per day per traffic loop not replaced as required by Document 0850, Section 8. 3.2.7 $5,000 for each occurrence of a violation of Document 00800, Section 1.7 WORK DAYS AND HOURS. 3.2.8 $500 per street per day for fai lure to complete work within time specified in paragraph 3.1. 3.2.9 Three Months Salary for each Key Personnel named in Contractor’s SOQ pursuant to Article 2.G of Document 00450 (Statement of Qualifications for Construction Work) who leaves the Project a nd/or Contractor replaces at any point before Final Completion, for any reason whatsoever, that Contractor can demonstrate to City’s satisfaction is beyond Contractor’s control. Liquidated damages shall apply cumulatively and, except as provided below, s hall be presumed to be the damages suffered by City resulting from delay in completion of the Work. 3.3 Liquidated damages for delay shall only cover administrative, overhead, interest on bonds, and general loss of public use damages suffered by City as a result of delay. Liquidated damages shall not cover the cost of completion of the Work, damages resulting from defective Work, lost revenues or costs of substitute facilities, or damages suffered by others who then seek to recover their damages from City (for example, delay claims of other contractors, subcontractors, tenants, or other third-parties), and defense costs thereof. Article 4. Contract Sum 4.1 City shall pay Contractor the Contract Sum for completion of Work in accordance with Contract Documents as set forth in Contractor’s Bid, attached hereto: See Exhibit “A” attached Article 5. Contractor’s Representations In order to induce City to enter into this Contract, Contractor makes the following representations and warranties: 5.1 Contractor has visited the Site and has examined thoroughly and understood the nature and extent of the Contract Documents, Work, Site, locality, actual conditions, as -built conditions, and all local conditions, and Project No. 2016-15 City of Cupertino 00520 - 3 Contract 2016 Pavement Maintenance federal, state and local laws and regulations that in any manner may affect cost, progress, performance or furnishing of Work or which relate to any aspect of the means, methods, techniques, sequences or procedures of construction to be employed by Contractor and safety precautions and programs incident ther eto. 5.2 Contractor has examined thoroughly and understood all reports of exploration and tests of subsurface conditions, as-built drawings, drawings, products specifications or reports, available for Bidding purposes, of physical conditions, including Underground Facilities, or which may appear in the Drawings. Contractor accepts the determination set forth in these Documents and Document 00700 (General Provisions) of the limited extent of the information contained in such materials upon which Contractor may be entitled to rely. Contractor agrees that except for the information so identified, Contractor does not and shall not rely on any other information contained in such reports and drawings. 5.3 Contractor has conducted or obtained and has understood all such examinations, investigations, explorations, tests, reports and studies (in addition to or to supplement those referred to in Section 5.2 of this Document 00520) that pertain to the subsurface conditions, as-built conditions, underground facilities, a nd all other physical conditions at or contiguous to the Site or otherwise that may affect the cost, progress, performance or furnishing of Work, as Contractor considers necessary for the performance or furnishing of Work at the Contract Sum, within the Co ntract Time and in accordance with the other terms and conditions of the Contract Documents, including specifically the provisions of Document 00700 (General Provisions); and no additional examinations, investigations, explorations, tests, reports, studies or similar information or data are or will be required by Contractor for such purposes. 5.4 Contractor has correlated its knowledge and the results of all such observations, examinations, investigations, explorations, tests, reports and studies with the terms and conditions of the Contract Documents. 5.5 Contractor has given City prompt written notice of all conflicts, errors, ambiguities, or discrepancies that it has discovered in or among the Contract Documents and as -built drawings and actual conditions and the written resolution thereof through Addenda issued by City is acceptable to Contractor. 5.6 Contractor is duly organized, existing and in good standing under applicable state law, and is duly qualified to conduct business in the State of California. 5.7 Contractor has duly authorized the execution, delivery and performance of this Contract, the other Contract Documents and the Work to be performed herein. The Contract Documents do not violate or create a default under any instrument, contract, order or decree binding on Contractor. 5.8 Contractor has listed Subcontractors pursuant to the Subcontractor Listing Law, California Public Contracting Code §4100 et seq. in document 00340 (Subcontractors List) Article 6. Contract Documents 6.1 Contract Documents consist of the following documents, including all changes, addenda, and modifications thereto: Document 00002 Signature Page Document 00003 Project Directory Document 00012 Caltrans/City Cross-Reference Table Document 00100 Advertisement For Bids Document 00200 Instructions to Bidders Document 00210 Indemnity and Release Agreement Document 00400 Bid Form Document 00411 Bond Accompanying Bid Document 00430 Subcontractors List Document 00450 Statement of Qualifications Document 00481 Non-Collusion Affidavit Document 00482 Bidder Certifications Document 00520 Contract Document 00530 Insurance Forms Project No. 2016-15 City of Cupertino 00520 - 4 Contract 2016 Pavement Maintenance Project Document 00610 Construction Performance Bond Document 00620 Construction Labor and Material Payment Bond Document 00630 Guaranty Document 00650 Agreement and Release of Any and All Claims Document 00660 Substitution Request Form Document 00700 General Conditions Document 00800 Special Conditions Document 00820 Traffic Control Requirements Document 00821 Insurance Document 00822 Apprenticeship Program Document 00850 Technical Specifications Document 00860 General Requirements Attachment A Work Hour Restrictions Addenda(s) Drawings/Plans 6.2 There are no Contract Documents other than those listed in this Document 00520, Article 6. The Contract Documents may only be amended, modified or supplemented as provided in Document 00700 (General Provisions). Article 7. Miscellaneous 7.1 Terms used in this Contract are defined in Document 00700 (General Provisions) and will have the meaning indicated therein. 7.2 It is understood and agreed that in no instance are the persons signing this Contract for or on behalf of City or acting as an employee, agent, or representative of City, liable on this Contract or any of the Contract Documents, or upon any warranty of authority, or otherwis e, and it is further understood and agreed that liability of the City is limited and confined to such liability as authorized or imposed by the Contract Documents or applicable law. 7.3 Contractor shall not assign any portion of the Contract Documents, and ma y subcontract portions of the Contract Documents only in compliance with the Subcontractor Listing Law, California Public Contracting Code §4100 et seq. 7.4 The Contract Sum includes all allowances (if any). 7.5 In entering into a public works contract or a sub contract to supply goods, services or materials pursuant to a public works contract, Contractor or Subcontractor offers and agrees to assign to the awarding body all rights, title and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. §15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services or materials pursuant to the public works contract or the subcontract. This assignment shall be made and become effective at the time City tenders final payment to Contractor, without further acknowledgment by the parties. 7.6 Copies of the general prevailing rates of per diem wages for each craft, classif ication, or type of worker needed to execute the Contract, as determined by Director of the State of California Department of Industrial Relations, are deemed included in the Contract Documents and on file at City’s office, or may be obtained of the State of California web site http://www.dir.ca.gov/DLSR/PWD/Northern.html and shall be made available to any interested party on request. Pursuant to Section 1861 of the Labor Code, Contractor represents that it is aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self -insurance in accordance with the provisions of that Code, and Contractor shall comply with such provisions before commencing the performance of the Work of the Contract Documents. Project No. 2016-15 City of Cupertino 00520 - 5 Contract 2016 Pavement Maintenance 7.7 Should any part, term or provision of this Contract or any of the Contract Documents, or any document required herein or therein to be executed or delivered, be declared invalid, void or unenforceable, all remai ning parts, terms and provisions shall remain in full force and effect and shall in no way be invalidated, impaired or affected thereby. If the provisions of any law causing such invalidity, illegality or unenforceability may be waived, they are hereby waived to the end that this Contract and the Contract Documents may be deemed valid and binding contracts, enforceable in accordance with their terms to the greatest extent permitted by applicable law. In the event any provision not otherwise included in th e Contract Documents is required to be included by any applicable law, that provision is deemed included herein by this reference(or, if such provision is required to be included in any particular portion of the Contract Documents, that provision is deemed included in that portion). 7.8 This Contract and the Contract Documents shall be deemed to have been entered into in the County of Santa Clara, State of California, and governed in all respects by California law (excluding choice of law rules). The exclusive venue for all disputes or litigation hereunder shall be in Santa Clara County. Both parties hereby waive their rights under California Code of Civil Procedure Section 394 to file a motion to transfer any action or proceeding arising out of the Contract Documents to another venue. Contractor accepts the Claims Procedure in Document 00700, Article 12, established under the California Government Code, Title 1, Division 3.6, Part 3, Chapter 5. Project No. 2016-15 City of Cupertino 00520 - 6 Contract 2016 Pavement Maintenance Project IN WITNESS WHEREOF the parties have executed this Contract in quadruplicate the day and year first above written. 2016 PAVEMENT MAINTENANCE PROJECT CITY: CONTRACTOR: CITY OF CUPERTINO, a Municipal Corporation of the State of California By: [Signature] Attest: [Please print name here] City Clerk: Grace Schmidt Approved as to form by City Attorney: Title: ______________________________________________ [If Corporation: Chairman , President, or Vice President] City Attorney: Carol Korade By: I hereby certify, under penalty of perjury, that David Brandt, City Manager of the City of Cupertino was duly authorized to execute this document. [Signature] [Please print name here] Title: [If Corporation: Secretary, Assistant Secretary, Chief Financial Officer, or Assistant Treasurer] Dated: _____________________________ David Brandt, City Manager of the City of Cupertino, a Municipal Corporation of the State of California ________________________________________________ State Contractor’s License No. Classification ________________________________________________ Expiration Date Designated Representative: Taxpayer ID No._________________________________ Name: Roger Lee Name: Title: Assistant Director of Public Works - Title: Address: 10300 Torre Ave, Cupertino, CA 95014 Address: Phone: 408-777-3354 Phone: Facsimile: 408-777-3333 Facsimile: AMOUNT: ACCOUNT #: 270-85-821-900-921 ACCOUNT #: FILE NO.: 94,493.107 NOTARY ACKNOWLEDGEMENT IS REQUIRED. IF A CORPORATION, CORPORATE SEAL AND CORPORATE NOTARY ACKNOWLEDEMENT AND FEDERAL TAX ID ARE REQUIRED. IF NOT A CORPORATION SOCIAL SECURITY NO. IS REQUIRED END OF DOCUMENT CITY OF CUPERTINO Legislation Details (With Text) File #: Version:115-1221 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:11/10/2015 City Council On agenda:Final action:11/17/2015 Title:Subject: Funding agreement between the City of Cupertino and the Santa Clara Valley Transportation Authority (VTA) for the I-280/Wolfe Road Interchange Improvements Project Sponsors: Indexes: Code sections: Attachments:Staff Report A - Draft Funding Agreement between the City of Cupertino and the Santa Clara Valley Transportation Action ByDate Action ResultVer. City Council11/17/2015 1 Subject:Funding agreement between the City of Cupertino and the Santa Clara Valley Transportation Authority (VTA) for the I-280/Wolfe Road Interchange Improvements Project Authorize the City Manager to negotiate and execute a Funding Agreement with the VTA to identify the City of Cupertino and VTA’s respective obligations for the I-280/Wolfe Road Interchange Improvements Project to the extent that the City of Cupertino’s contributions are expected to be reimbursed from project applicants and funds are appropriated for such purpose CITY OF CUPERTINO Printed on 11/10/2015Page 1 of 1 powered by Legistar™ PUBLIC WORKS DEPARTMENT CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3354 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: November 17, 2015 Subject Funding agreement between the City of Cupertino and the Santa Clara Valley Transportation Authority (VTA) for the I-280/Wolfe Road Interchange Improvements Project Recommended Action Authorize the City Manager to negotiate and execute a Funding Agreement with the VTA to identify the City of Cupertino and VTA’s respective obligations for the I- 280/Wolfe Road Interchange Improvements Project to the extent that the City of Cupertino’s contributions are expected to be reimbursed from project applicants and funds are appropriated for such purpose. Background In anticipation of increasing traffic demands and the need for enhanced multi-modal connectivity along Wolfe Road across I-280, the VTA is initiating a Project Study Report/Project Initiation Document (PSR/PID) for the purpose of identifying alternatives for a new interchange of Wolfe Road at I-280. Following completion of the PSR/PID, a Project Approval/Environmental Document (PAED) will be completed, with the goal being final Plans, Specifications and Estimates (PS&E) and ultimately construction of a new interchange. It is anticipated that the studies and engineering described above would take approximately 5 years to complete, with construction beginning around the year 2020. Prior to construction of any new project, it is anticipated that the City and VTA will enter into additional funding and/or cooperation agreements. Discussion The VTA, in coordination with Caltrans, implements studies and projects on the state highway system in Santa Clara County. For any projects funded, or partially funded, by the agreement, the VTA will serve as project manager; will coordinate with Caltrans for its review, concurrence and/or approval, will conduct planning, design and construction; and will obtain all necessary permits and rights of way. The VTA will include City staff as an active participant within VTA’s project management and design process, hold periodic meetings as agreed upon by the project teams to assess the progress of design and development for each project, and address issues as they arise. The VTA will also prepare and deliver to the City regular reports on activity and progress of each project. The specifics and the scopes of these studies and projects are to be agreed upon by the staff of both parties before any of the work commences, and no funds will be dispersed for reimbursement until City staff approves the invoices and accompanying supporting documents that indicate that expenses are eligible. The VTA Board will also be authorizing their general manager to enter into this agreement. Sustainability Impact/CEQA The proposed Funding Agreement only provides funds for studies for future work. The funding does not have the potential for causing a significant effect on the environment and is exempt from CEQA. 14 Cal. Code Regs. §15061(b)(3). Fiscal Impact Apple has deposited $1,000,000 with the City as part of their Apple Campus 2 Development Agreement for the purpose of funding Wolfe Road corridor/interchange studies. This money will be applied in its entirety towards the I -280/Wolfe Road Interchange Improvements Project. The City will also be obtaining funding from the Irvine Company (Hamptons Apartments) and Sand Hill Property Company (The Hills at Vallco) as contributions to this Project. Consequently, there is no fiscal impact to the City. _____________________________________ Prepared by: Timm Borden, Director of Public Works Approved for Submission by: David Brandt, City Manager Attachments: A - Draft Funding Agreement between the City of Cupertino and the Santa Clara Valley Transportation Authority (I-280/Wolfe Road Interchange Improvements Project) 1 952ba075-7fa6-42ea-a61c-e3edf013966e.docx FUNDING AGREEMENT BETWEEN THE CITY OF CUPERTINO AND SANTA CLARA VALLEY TRANSPORTATION AUTHORITY FOR THE I-280/WOLFE ROAD INTERCHANGE IMPROVEMENTS PROJECT THIS AGREEMENT (“Agreement”) dated __________, 2015, for purposes of reference, is made and entered into by and between the CITY OF CUPERTINO, a municipal corporation of the State of California ("CITY"), and SANTA CLARA VALLEY TRANSPORTATION AUTHORITY, a public agency organized as a special district under California law ("VTA"). Hereinafter, CITY and VTA may be individually referred to as "Party" or collectively referred to as "Parties". I. RECITALS A. CITY and VTA each recognize the need for modifications to I-280/Wolfe Road interchange to relieve congestion and improve circulation in the City of Cupertino in the County of Santa Clara. B. The Parties wish to set forth in this Agreement their respective obligations in regard to the modifications to the I-280/Wolfe Road Interchange Improvements Project (PROJECT). NOW, THEREFORE, in consideration of the mutual promises contained in this Agreement, the Parties agree as follows: II. AGREEMENT 1. Scope of PROJECT. The scope of PROJECT under this Agreement includes, but is not limited to: (i) all necessary approvals required from any and all governmental or regulatory agency or entity, (ii) those planning and design activities necessary to complete the Project Initiation Document (PID), Project Approval/Environmental Document (PAED) and the Plans, Specifications, and Estimates (PS&E). 2. CITY’s Financial Contribution for PROJECT. CITY shall contribute to the PROJECTS an amount not to exceed xxxxx dollars (hereinafter, “CITY’s Contribution”). Upon execution of the Agreement, VTA shall invoice CITY for the CITY’s Contribution and, upon receipt, will deposit the CITY’s Contribution into an interest-bearing account. CITY shall pay to VTA the amount set forth in the VTA invoice within thirty (30) calendar days after receipt of invoice. 3. Use of CITY’s Contribution. VTA will use the CITY’s Contribution and the interest earned thereon for allowable costs and expenses for the sole purpose of completing the PROJECT, as set forth in this Agreement. 4. CITY's Role in PROJECT. CITY is the sponsor of the PROJECT. During the 2 952ba075-7fa6-42ea-a61c-e3edf013966e.docx term of the PROJECT, CITY shall provide CITY staff oversight and participation, and necessary and appropriate coordination with all departments of the CITY. The CITY shall provide timely reviews, comments, and approvals of PROJECT’s documents submitted by VTA to CITY. CITY costs to administer and participate in PROJECT as described in this Agreement will not be allowable costs against CITY's Contribution. 5. VTA’s Role in PROJECTS. a. Tasks. VTA shall perform and/or be responsible for the following tasks to complete the PROJECTS: i. Serve as project manager for PROJECT; ii. Coordinate with the State of California for its review and approval of PROJECT; iii. Conduct a conceptual alternatives analysis for PROJECT; iv. Complete the Project Initiation Document (PID) work for PROJECT; v. Complete the Project Approval/Environmental Document (PAED) work for PROJECT; vi. Complete the final design documents for PROJECT. Costs and expenses to perform these tasks shall be considered allowable costs and expenses pursuant to this Agreement. b. Consultants. VTA may retain design consultants to perform any of the functions listed in Section 5(a). VTA’s administrative costs to procure and manage consultant agreements as well as the actual costs of such consultants shall be allowable costs pursuant to this Agreement. c. Other Project Management Duties VTA shall include CITY staff as an active participant within VTA’s project management process, hold periodic meetings as agreed upon by the project team(s) to assess the progress of development for PROJECT and address PROJECT issues as they arise. VTA shall also prepare regular reports on activity and progress of PROJECT for CITY. d. Project Cost Updates. VTA shall actively monitor actual expenditures for PROJECT to ensure that CITY’s Contribution is used to pay for allowable PROJECT expenditures. If, at any time, planned PROJECT expenditures are projected to exceed the CITY’s Contribution, VTA shall immediately notify CITY of such facts. The Parties shall then have the following options: i. Revise the PROJECT scope in accordance with the available funds, which revision can be accomplished only by written amendment mutually agreed upon by the Parties and approved by the CITY’s City Council; ii. Seek additional funding to complete scope of PROJECT by revision the CITY’s Contribution to be accomplished only by written amendment to this Agreement; 3 952ba075-7fa6-42ea-a61c-e3edf013966e.docx iii. VTA may formulate and implement a strategy to continue the PROJECT to the satisfaction of the CITY’S Director of Public Works. iv. The Parties may terminate this Agreement which can be accomplished by either Party giving written notice to the other party of such termination consistent with Section 9 below. 6. Compliance with Governmental Requirements. VTA shall comply with all laws and regulations pertaining to the PROJECT. 7. Term of Agreement. This Agreement shall become effective upon full execution of the Agreement and shall remain in effect through December 31, 2020. The CITY’s Director of Public Works or his designee and VTA’s General Manager or her designee, each in his or her sole discretion, are authorized to extend the term of the Agreement for up to six (6) months after the initial termination date, without formal amendment of this Agreement. Any further extension of the term must be approved by the City Council and VTA Board. 8. Written Termination. In addition to termination pursuant to the terms of the preceding section, this Agreement may be terminated upon mutual written agreement of the Parties. 9. Refund of CITY’s Contribution. Any balance of CITY's Contribution, including interest, if applicable, remaining after the first to occur of: (a) expiration of the term of this Agreement, or (b) termination of this Agreement in its entirety as provided in Sections 4.d.(iv) and 9 above, or (c) completion of PROJECT, less any amounts necessary to pay for eligible expenses incurred prior to the date of completion of PROJECT or the effective date of the expiration or termination of the Agreement, shall be refunded to the City. VTA shall refund to CITY the remaining balance, if any, within thirty (30) calendar days of the effective date of completion of PROJECT or sooner termination of the Agreement. For purposes of this Agreement a PROJECT shall be deemed complete only upon concurrence by both Parties of such completion. 10. Audit and Record Retention. CITY may audit the expenses incurred in the performance of this Agreement. VTA shall retain all records related to the PROJECTS for three (3) years after the completion of PROJECT. During this period, VTA shall make these records available within a reasonable time to the CITY for inspection upon request. 11. Parties’ Representatives. The General Manager of VTA or the General Manager’s designee is hereby made the representative of VTA for all purposes under this Agreement. The Director of the Public Works for CITY or the Director’s designee is hereby made the representative of CITY for all purposes under this Agreement. 12. Indemnification. a. Neither VTA nor any officer or employee thereof shall be responsible for any 4 952ba075-7fa6-42ea-a61c-e3edf013966e.docx damage or liability occurring by reason of anything done or omitted to be done by CITY under or in connection with any work, authority or jurisdiction associated with the PROJECT. In addition, pursuant to Government Code §895.4, CITY shall fully indemnify and hold VTA harmless from any liability imposed for injury (as defined by Government Code §810.8) occurring by reason of anything done or omitted to be done by CITY under or in connection with any work, authority or jurisdiction delegated to CITY under this Agreement. b. Neither CITY nor any officer or employee thereof shall be responsible for any damage or liability occurring by reason of anything done or omitted to be done by VTA under or in connection with any work, authority or jurisdiction associated with the PROJECT. In addition, pursuant to Government Code §895.4, VTA shall fully indemnify and hold CITY harmless from any liability imposed for injury (as defined by Government Code §810.8) occurring by reason of anything done or omitted to be done by VTA under or in connection with any work, authority or jurisdiction delegated to VTA under this Agreement. 13. No Waiver. The failure of either Party to insist upon the strict performance of any of the terms of this Agreement shall not be deemed a waiver of any right or remedy that either Party may have, and shall not be deemed a waiver of their right to require strict performance of all of the terms thereafter. 14. Notice. Any notice required to be given by either Party, or which either party may wish to give, shall be in writing and served either by personal delivery or sent by certified or registered mail, postage prepaid, addressed as follows: To VTA: Santa Clara Valley Transportation Authority John H. Ristow, Director of Planning and Program Development 3331 North First Street, Bldg. B-2 San Jose, CA 95134-1906 To CITY: City of Cupertino Timm Borden, Director of Public Works Department of Public Works 10300 Torre Avenue, Cupertino, CA 95014 Notice shall be deemed effective on the date personally delivered or, if mailed, three (3) days after deposit in the United States mail. 15. Dispute Resolution. If a question arises regarding interpretation of this Agreement or its performance, or the alleged failure of a Party to perform, the Party raising the question or making the allegation shall give written notice thereof to the other Party. The Parties shall promptly meet in an effort to resolve the issues raised. If the Parties fail to resolve the issues raised, alternative forms of dispute resolution, including mediation or arbitration, may be pursued by mutual agreement. It is the intent of the Parties to the extent possible that litigation be avoided as a method of 5 952ba075-7fa6-42ea-a61c-e3edf013966e.docx dispute resolution. 16. Entire Agreement. This Agreement constitutes the entire Agreement between the Parties pertaining to the subject matter contained therein and supersedes all prior or contemporaneous agreements, representations and understandings of the Parties relative thereto. 17. Amendments. Future amendments to this Agreement shall be processed by mutual written agreement of the Parties. Unless otherwise provided herein, any amendments to this Agreement must be approved by the City Council and VTA Board. Whenever possible, notice to amend this Agreement shall be provided ninety (90) calendar days prior to the desired effective date of such amendment. 18. Warranty of Authority to Execute Agreement. Each Party to this Agreement represents and warrants that each person whose signature appears hereon has been duly authorized and has the full authority to execute this Agreement on behalf of the entity that is a Party to this Agreement. 19. Severability. If any term, covenant, condition or provision of this Agreement, or t he application thereof to any person or circumstance, shall to any extent be held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, covenants, conditions and provisions of this Agreement, or the applicat ion thereof to any person or circumstance, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby. WITNESS THE EXECUTION HEREOF the day and year first hereinabove set forth. “CITY” City of Cupertino a municipal corporation By: David Brandt City Manager “VTA” Santa Clara Valley Transportation Authority a public agency By: Nuria Fernandez General Manager Date: ___________________________ APPROVED AS TO FORM: By: Name City Attorney APPROVED AS TO FORM: By: Victor Pappalardo Senior Assistant Counsel 6 952ba075-7fa6-42ea-a61c-e3edf013966e.docx CITY OF CUPERTINO Legislation Details (With Text) File #: Version:115-1192 Name: Status:Type:Second Reading of Ordinances Agenda Ready File created:In control:10/26/2015 City Council On agenda:Final action:11/17/2015 Title:Subject: Second reading of Ordinance and adopt amendments to the City's Zoning Map to rezone a 0.98 acre parcel from Light Industrial with Special Development Conditions (ML-fa) to Planned Development Zoning District with Light Industrial And Commercial Uses P(ML, CG)). (Z-2015-01, 10950 N. Blaney Avenue, APN: 316 03 041) Sponsors: Indexes: Code sections: Attachments:Staff Report A - Ordinance 15-2135 Action ByDate Action ResultVer. City Council11/17/2015 1 Subject:Second reading of Ordinance and adopt amendments to the City's Zoning Map to rezone a 0.98 acre parcel from Light Industrial with Special Development Conditions (ML-fa) to Planned Development Zoning District with Light Industrial And Commercial Uses P(ML, CG)). (Z-2015-01, 10950 N. Blaney Avenue, APN: 316 03 041) Conduct the second reading and enact Ordinance No.15-2135:“An Ordinance of the City Council of the City of Cupertino rezoning a 0.98 acre parcel from Light Industrial with Special Development Conditions (ML-fa)to Planned Development Zoning District with Light Industrial And Commercial Uses P(ML, CG)" CITY OF CUPERTINO Printed on 11/10/2015Page 1 of 1 powered by Legistar™ 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: November 17, 2015 Subject Second reading of Ordinance and adopt amendments to the City's Zoning Map to rezone a 0.98 acre parcel from Light Industrial with Special Development Conditions (ML-fa) to Planned Development Zoning District with Light Industrial And Commercial Uses P(ML, CG)). (Z-2015-01, 10950 N. Blaney Avenue, APN: 316 03 041) Recommended Action Conduct the Second reading and enact Ordinance No. 14-2135, “An Ordinance of the City Council of the City of Cupertino rezoning a 0.98 acre parcel from Light Industrial with Special Development Conditions (ML-fa) to Planned Development Zoning District with Light Industrial and Commercial Uses P(ML, CG),” Z-2015-01 (Attachment A). Discussion The Council considered this change at its October 20, 2015 meeting and conducted the first reading of Ordinance No. 15-2135 on that date. No changes have been made to the ordinance between the first and second readings. Environmental Impact The proposed ordinance change is within the scope of the Environmental Impact Report certified on December 4, 2014 and a subsequent Addendum prepared and adopted by the City Council on October 20, 2015. No further environmental review is required. Sustainability Impact None Fiscal Impact None _____________________________________ Prepared by: Piu Ghosh, Senior Planner Reviewed by: Aarti Shrivastava, Assistant City Manager Approved for Submission by: David Brandt, City Manager Attachments: A. Draft Ordinance 14-2135 to approve the Zoning Map Amendments (Z-2015-01) DRAFT ORDINANCE NO. 15-2135 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO REZONING A 0.98 ACRE PARCEL FROM LIGHT INDUSTRIAL WITH SPECIAL DEVELOPMENT CONDITIONS (ML-fa) TO PLANNED DEVELOPMENT ZONING DISTRICT WITH LIGHT INDUSTRIAL AND COMMERCIAL USES P(ML, CG) SECTION I: PROJECT DESCRIPTION Application No: Z-2015-01 Applicant: City of Cupertino Location: 10950 N. Blaney Avenue (APN: 316 03 041) SECTION II: RECITALS WHEREAS, immediately prior to the City Council’s consideration of this rezoning, and following the Commission’s recommendation, the City Council adopted Resolution No. 15-087, adopting a General Plan Amendment to amend the land use designation of the property which is the subject of this rezoning ordinance from Industrial/Residential to Industrial/Commercial/Residential; and WHEREAS, the rezoning will be consistent with the City's General Plan land use map, proposed uses and surrounding uses; and WHEREAS, the proposed rezoning was described and analyzed in the General Plan Amendment, Housing Element Update, and Associated Rezoning Project Environmental Impact Report (State Clearinghouse No. 2014032007) certified on December 4, 2014 (“Final EIR”); and WHEREAS, the necessary public notices were given as required by the procedural ordinances of the City of Cupertino and the Government Code, and the Planning Commission held a public hearing on September 22, 2015 to consider the project; and WHEREAS, on September 22, 2015, the Planning Commission reviewed and considered the information in the administrative record, staff report, and all oral and written testimony presented to Planning Commission including the Final EIR and the Addendum and on a 5-0 vote recommended adoption of the Addendum and the General Plan Amendments related to the approval of the proposed policy, text and figure edits. On the issue of the change of the land use designation of the property located at 10950 N. Blaney Ave (APN: 316 03 041), the Planning Commission recommended approval on a 4-1 vote (Lee: no); and WHEREAS, the necessary public notices were given as required by the procedural ordinances of the City of Cupertino and the Government Code, and the Environmental Review Committee held a public hearing on October 1, 2015 to consider the Addendum; and WHEREAS, on October 1, 2015, the Environmental Review Committee reviewed and considered the Addendum and recommended that the City Council find that the Final EIR and the Addendum, together comply with the requirements of CEQA and adopt the Addendum on a 3-0 vote (2 absent); and WHEREAS, upon due notice, the City Council has held at least one public hearing on the amendment to the Zoning map and on the rest of the project approvals on October 20, 2015; and WHEREAS, the City Council has determined that the proposed rezoning does not meet the criteria for preparing a subsequent or supplemental EIR under Public Resources Code Section 21166 and CEQA Guidelines Sections 15162 and 15163; and, WHEREAS, an Addendum to the Final EIR has therefore been prepared pursuant to CEQA Guidelines Section 15164 for the rezoning in order to analyze the rezoning along with proposed General Plan text and map revisions; and WHEREAS, the Addendum provides analysis and cites substantial evidence that supports the City’s determination that the rezoning will not have any physical impact on the environment, including no increases in Greenhouse Gas emissions, no increased impacts to Biological Resources, no impacts to aesthetics, does not result in the generation of additional criteria pollutant emissions from stationary and mobile sources, no reductions in water quality, no impacts to mineral resources or no new adverse impacts related to noise and vibration, no impacts to public services and no impacts to public utilities. The changes related to the re -insertion of language related to LOS thresholds in the Mobility Element were metrics used t o analyze potential project impacts in the Final EIR, and the modifications do not result in impacts to the circulation system; and WHEREAS, the proposed rezoning would not require major revisions to the Final EIR due to new or substantially increased significant environmental effects. There have been no substantial changes with respect to the circumstances under which the Rezoning would be undertaken that would require major revisions of the Final EIR due to new or substantially increased significant environmental effects, and there has been no discovery of new information of substantial importance that would trigger or require major revisions to the Final EIR due to new or substantially increased significant environmental effects; and WHEREAS, prior to the City Council’s consideration of the rezoning, the City Council adopted Resolution No. 15-087 adopting the Addendum for the project; and WHEREAS, the City Council finds the following: 1. That the proposed zoning is in accord with the Municipal Code and the City's General Plan (Community Vision 2015 – 2040) The proposed zoning is consistent with the General Plan as amended by Resolution No. 15-087. These changes are conforming changes to make the City’s zoning map conform to the land use. 2. The proposed zoning is in compliance with the provisions of the California Environmental Quality Act (CEQA). The proposed rezoning was described and analyzed in the General Plan Amendment, Housing Element Update, and Associated Rezoning Project Environmental Impact Report (State Clearinghouse No. 2014032007) certified on December 4, 2014 (“Final EIR”); all mitigation measures identified in the Final EIR have been adopted and incorporated into the project to reduce the impacts of new development to the extent feasible. In addition, an Addendum to the Final EIR for the rezoning and the approved General Plan Amendment was prepared, which analyzes the proposed rezoning and concludes that the proposed rezoning does not meet the criteria for preparing a subsequent or supplemental EIR under Public Resources Code Section 21166 and CEQA Guidelines Sections 15162 and 15163. 3. The site is physically suitable (including, but not limited to, access, provision of utilities, compatibility with adjoining land uses, and absence of physical constraints) for the requested zoning designation(s) and anticipated land use development(s). The site being rezoned has access to utilities, is located on the valley floor, and does not have any physical constraints to development. To the north of the property is about 2 acres of property zoned Planned Development Zoning District with General Commercial Uses [P(CG)]. Therefore, the addition of the commercial zoning designation to this property would further improve compatibility of the property with adjoining uses. 4. The proposed zoning will promote orderly development of the City. The sites being rezoned will promote orderly development in the City by allowing similar land uses to be located compatibly. As previously, mentioned, the property located to the north of the subject property is zoned Planned Development Zoning District with General Commercial Uses [P(CG)]. Addition of the General Commercial Zoning Designation to this property would allow compatibility of the property with adjoining uses and therefore, promote orderly development of the City and easier applicability of zoning regulations. 5. That the proposed zoning is not detrimental to the health, safety, peace, morals and general welfare of persons residing or working in the neighborhood of subject parcels. The proposed zoning is not detrimental to the health, safety, peace, morals and general welfare since these are conforming changes. Where potential environmental and human health impacts were identified in the Final EIR, mitigation measures were adopted to reduce the impacts to the extent feasible. NOW, THEREFORE, BE IT ORDAINED AS FOLLOWS: That after careful consideration of the Final EIR and Addendum, maps, facts, exhibits, testimony, public comment, and other evidence submitted in this matter, the City Council based upon the findings described above, the public hearing record and subject to the following, finds: Section 1. That the property shown/described in Exhibit Z-1 (attached) shall have a zoning designation as shown. SECTION III: CEQA REVIEW An Environmental Impact Report and Addendum was prepared in accordance with the California Environmental Quality Act (CEQA), Public Resources Code Section 21000 et seq. INTRODUCED at a regular meeting of the Cupertino City Council the 20th day of October 2015 and ENACTED at a regular meeting of the Cupertino City Council on this 17th day of November 2015 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: Grace Schmidt, City Clerk Rod Sinks, Mayor, City of Cupertino EXHIBIT Z-1 715998.2 PROPERTY DETAILS: APN: 316-03-041 Address: 10950 N. Blaney Ave. Acreage = 0.98 ZONE CHANGE From: Light Industrial (ML – fa) To: Planned Light Industrial / General Commercial, P(ML,CG) LEGEND________________ ___ Quasi-Public Building (BQ) Planned General Commercial, P(CG) Planned Light Industrial / General Commercial, P(ML, CG) Subject Property CITY OF CUPERTINO Legislation Details (With Text) File #: Version:115-1193 Name: Status:Type:Second Reading of Ordinances Agenda Ready File created:In control:10/26/2015 City Council On agenda:Final action:11/17/2015 Title:Subject: Second reading of ordinance amending Section 2.12.040 of the Cupertino Municipal Code to clarify the number of votes required to pass ordinances, resolutions, and certain orders to ensure that the Municipal Code is consistent with State Law Sponsors: Indexes: Code sections: Attachments:Staff Report A - Draft Ordinance Action ByDate Action ResultVer. City Council11/17/2015 1 Subject:Second reading of ordinance amending Section 2.12.040 of the Cupertino Municipal Code to clarify the number of votes required to pass ordinances,resolutions,and certain orders to ensure that the Municipal Code is consistent with State Law Conduct the second reading and enact Ordinance No.15-2136:An Ordinance of the City Council of the City of Cupertino amending Section 2.12.040 of the Cupertino Municipal Code regarding the number of votes required for Ordinances, Resolutions, and Certain Orders CITY OF CUPERTINO Printed on 11/10/2015Page 1 of 1 powered by Legistar™ CITY CLERK CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3354 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: November 17, 2015 Subject An Ordinance amending Section 2.12.040 of Chapter 2.12 of Title 2 of the Cupertino Municipal Code regarding the number of votes required to pass ordinances, resolutions and certain orders to ensure that the Municipal Code is consistent with State law. Recommended Action Staff recommends that the City Council conduct the second reading and enact Ordinance 15-2136: “An Ordinance of the City Council of the City of Cupertino amending Section 2.12.040 of Chapter 2.12 of Title 2 of the Cupertino M unicipal Code regarding the number of votes required for ordinances, resolutions, and certain orders.” Discussion On October 20, 2015, the City Council conducted the first reading of Ordinance 15 -2136. This proposed Ordinance conforms to Municipal Code Section 2.12.040 to Government Code Section 36939. All Resolutions require a vote of three Councilmembers, as opposed to a majority of those present. Council did not modify the proposed language at the first reading, and the proposed Ordinance is presented for adoption. _____________________________________ Prepared by: Grace Schmidt, City Clerk Reviewed by: Colleen Winchester, Acting City Attorney Approved for Submission by: David Brandt, City Manager Attachments: A – Draft Ordinance 15-2136 ORDINANCE NO. 15-2136 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING SECTION 2.12.040 OF CHAPTER 2.12 OF TITLE 2 OF THE CUPERTINO MUNICIPAL CODE REGARDING THE NUMBER OF VOTES REQUIRED FOR ORDINANCES, RESOLUTIONS, AND CERTAIN ORDERS WHEREAS, the Ordinance is determined to be exempt under provisions and requirements of the California Environmental Quality Act of 1970, together with related State CEQA Guidelines (collectively, "CEQA"), in that the amendments involve procedural administrative changes that will not have a direct or reasonably foreseeable indirect change to the physical environment; and WHEREAS, the City Council of the City of Cupertino is the decision-making body for this Ordinance; and WHEREAS, the City Council has reviewed and considered the exemption determination under CEQA prior to taking any approval actions on this Ordinance and agrees with such exemption; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CUPERTINO DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Section 2.12.040 of Chapter 2.12 of Title 2 of the Cupertino Municipal Code is hereby amended to read as follows: 2.12.040 Vote Required. All ordinances, resolutions, and orders for payment of money, require the votes of at least three Councilmembers for passage. SECTION 2. The City Clerk shall certify the adoption of this Ordinance and shall give notice of its adoption as required by law. Pursuant to Government Code Section 36933, a summary of this Ordinance may be published and posted in lieu of publication and posting of the entire text. * * * * * * * * Ordinance No. 15-2136 Page 2 INTRODUCED at a regular meeting of the City Council of the City of Cupertino the 20th day of October and ENACTED at a regular meeting of the City Council of the City of Cupertino the 17th day of November 2015, by the following vote: PASSED: Vote: Members of the City Council Ayes: Noes: Absent: Abstain: ATTEST: APPROVED: ______________________ ___________________________________ Grace Schmidt, City Clerk Rod G. Sinks, Mayor, City of Cupertino CITY OF CUPERTINO Legislation Details (With Text) File #: Version:115-1200 Name: Status:Type:Ordinances and Action Items Agenda Ready File created:In control:10/28/2015 City Council On agenda:Final action:11/17/2015 Title:Subject: First reading of an Ordinance amending Section 2.04.010 of the Cupertino Municipal Code regarding regular City Council meetings that fall on Election Tuesday in even-numbered years Sponsors: Indexes: Code sections: Attachments:Staff Report A - Redline Draft Ordinance B - Clean Draft Ordinance Action ByDate Action ResultVer. City Council11/17/2015 1 Subject:First reading of an Ordinance amending Section 2.04.010 of the Cupertino Municipal Code regarding regular City Council meetings that fall on Election Tuesday in even-numbered years Conduct the first reading Ordinance No.15-2137:“An Ordinance of the City Council of the City of Cupertino amending Section 2.04.010 of Chapter 2.04 of Title 2 of the Cupertino Municipal Code regarding regular City Council meetings that fall on Election Tuesday in even- numbered years" CITY OF CUPERTINO Printed on 11/10/2015Page 1 of 1 powered by Legistar™ OFFICE OF THE CITY CLERK CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3223 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: November 17, 2015 Subject First reading of an ordinance amending Section 2.04.010 of the Cupertino Municipal Code regarding regular City Council meetings that fall on Election Tuesday in November of even-numbered years. Recommended Action Staff recommends that City Council conduct the first reading of the draft ordinance: “An Ordinance of the City Council of the City of Cupertino amending Section 2.04.010 of Chapter 2.04 of Title 2 of the Cupertino Municipal Code regarding regular City Council meetings that fall on Election Tuesday in November of even-numbered years.” Discussion On October 6, Council directed staff to amend the Cupertino Municipal Code regarding regular City Council meetings that fall on Election Tuesday to correspond with Cupertino’s General Municipal Elections in November of even-numbered years. (Cupertino Municipal Code §2.04.005 speaks to the date for General Municipal Elections.) The proposed ordinance moves only the Council meetings falling on Cupertino’s General Election Tuesday to the Monday before, rather than moving all Council meetings on any election day. Sustainability Impact/CEQA The proposed ordinance is purely procedural; there is no impact to sustainability. Moreover, these changes are exempt under the California Environmental Quality Act. Fiscal Impact There is no fiscal impact resulting from this amendment. _____________________________________ Prepared by: Grace Schmidt, City Clerk Approved for Submission by: David Brandt, City Manager Attachments: A –Redline Draft Ordinance B – Clean Draft Ordinance ORDINANCE NO. 15- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING SECTION 2.04.010 OF CHAPTER 2.04 OF TITLE 2 OF THE CUPERTINO MUNICIPAL CODE REGARDING REGULAR CITY COUNCIL MEETINGS THAT FALL ON ELECTION TUESDAY IN NOVEMBER OF EVEN-NUMBERED YEARS WHEREAS, the Ordinance is determined to be exempt under provisions and requirements of the California Environmental Quality Act of 1970, together with related State CEQA Guidelines (collectively, "CEQA"), in that the amendments involve procedural administrative changes that will not have a direct or reasonably foreseeable indirect change to the physical environment; and WHEREAS, the City Council of the City of Cupertino is the decision-making body for this Ordinance; and WHEREAS, the City Council has reviewed and considered the exemption determination under CEQA prior to taking any approval actions on this Ordinance and agrees with such exemption; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CUPERTINO DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Section 2.04.010 of Chapter 2.04 of Title 2 of the Cupertino Municipal Code is hereby amended to read as follows: 2.04.010 Regular Meetings. The City Council shall hold regular meetings on the first and third Tuesdays of each month at six forty-five p.m. and may adjourn any regular meeting to a date certain, which shall be specified in the order of adjournment and when so adjourned, such adjourned meeting shall be a regular meeting for all purposes. Such adjourned meetings may likewise be adjourned and any so adjourned meeting shall be a regular meeting for all purposes. On regular meeting days, the City Council shall begin any closed session items at six o'clock p.m. Ordinance No. Page 2 City Council meetings that fall on legal holidays shall automatically be moved to the following day. City Council meetings that fall on any Election Tuesday in November of an even- numbered year shall automatically be moved to the first Monday of the month. SECTION 2. The City Clerk shall certify the adoption of this Ordinance and shall give notice of its adoption as required by law. Pursuant to Government Code Section 36933, a summary of this Ordinance may be published and posted in lieu of publication and posting of the entire text. * * * * * * * * INTRODUCED at a regular meeting of the City Council of the City of Cupertino the 17th day of November and ENACTED at a regular meeting of the City Council of the City of Cupertino the ____ of _______ 2015, by the following vote: PASSED: Vote: Members of the City Council Ayes: Noes: Absent: Abstain: ATTEST: APPROVED: ______________________ __________________________________ Grace Schmidt, City Clerk Rod G. Sinks, Mayor, City of Cupertino Formatted: Strikethrough ORDINANCE NO. 15- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING SECTION 2.04.010 OF CHAPTER 2.04 OF TITLE 2 OF THE CUPERTINO MUNICIPAL CODE REGARDING REGULAR CITY COUNCIL MEETINGS THAT FALL ON ELECTION TUESDAY IN NOVEMBER OF EVEN-NUMBERED YEARS WHEREAS, the Ordinance is determined to be exempt under provisions and requirements of the California Environmental Quality Act of 1970, together with related State CEQA Guidelines (collectively, "CEQA"), in that the amendments involve procedural administrative changes that will not have a direct or reasonably foreseeable indirect change to the physical environment; and WHEREAS, the City Council of the City of Cupertino is the decision-making body for this Ordinance; and WHEREAS, the City Council has reviewed and considered the exemption determination under CEQA prior to taking any approval actions on this Ordinance and agrees with such exemption; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CUPERTINO DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Section 2.04.010 of Chapter 2.04 of Title 2 of the Cupertino Municipal Code is hereby amended to read as follows: 2.04.010 Regular Meetings. The City Council shall hold regular meetings on the first and third Tuesdays of each month at six forty-five p.m. and may adjourn any regular meeting to a date certain, which shall be specified in the order of adjournment and when so adjourned, such adjourned meeting shall be a regular meeting for all purposes. Such adjourned meetings may likewise be adjourned and any so adjourned meeting shall be a regular meeting for all purposes. On regular meeting days, the City Council shall begin any closed session items at six o'clock p.m. Ordinance No. Page 2 City Council meetings that fall on legal holidays shall automatically be moved to the following day. City Council meetings that fall on Election Tuesday in November of an even-numbered year shall automatically be moved to the first Monday of the month. SECTION 2. The City Clerk shall certify the adoption of this Ordinance and shall give notice of its adoption as required by law. Pursuant to Government Code Section 36933, a summary of this Ordinance may be published and posted in lieu of publication and posting of the entire text. * * * * * * * * INTRODUCED at a regular meeting of the City Council of the City of Cupertino the 17th day of November and ENACTED at a regular meeting of the City Council of the City of Cupertino the ____ of _______ 2015, by the following vote: PASSED: Vote: Members of the City Council Ayes: Noes: Absent: Abstain: ATTEST: APPROVED: ______________________ __________________________________ Grace Schmidt, City Clerk Rod G. Sinks, Mayor, City of Cupertino CITY OF CUPERTINO Legislation Details (With Text) File #: Version:115-0745 Name: Status:Type:Reports by Council and Staff Agenda Ready File created:In control:2/24/2015 City Council On agenda:Final action:11/17/2015 Title:Subject: Report on Committee assignments and general comments Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. City Council11/17/2015 1 Subject: Report on Committee assignments and general comments Report on Committee assignments and general comments CITY OF CUPERTINO Printed on 11/10/2015Page 1 of 1 powered by Legistar™