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04-19-2016 Amended searchable packetCITY OF CUPERTINO AGENDA Tuesday, April 19, 2016 10300 Torre Avenue and 10350 Torre Avenue CITY COUNCIL 6:00 PM AMENDED Non-televised Closed Session (6:00) Followed by Televised Regular Meeting (6:45) Amended at 3:15 PM on April 15, 2016 to correct Closed Session start time from 4:30 PM to 6:00 PM Amended at 2:00 PM on April 15, 2016 to add Closed Session Item No. 1a. CLOSED SESSION - 6:00 PM City Hall Conference Room A, 10300 Torre Avenue 1a.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.) PLEDGE OF ALLEGIANCE - 6:45 PM Community Hall Council Chamber, 10350 Torre Avenue ROLL CALL CEREMONIAL MATTERS AND PRESENTATIONS 1.Subject: Recognize Cupertino's Green Businesses for their contribution to the health of our shared environment Recommended Action: Present proclamations 2.Subject: Recognize student artists participating in the Citywide "Energized by Art" utility box art pilot project Recommended Action: Present proclamations 3.Subject: 2016 Arbor Day Proclamation Recommended Action: Present proclamation Staff Report POSTPONEMENTS Page 1 CITY OF CUPERTINO 1 April 19, 2016City Council AGENDA 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 March 31 City Council minutes Recommended Action: Approve the minutes A - Draft Minutes 5.Subject: Approve the April 5 City Council minutes Recommended Action: Approve the minutes A - Draft Minutes 6.Subject: Approve the April 5 City Council minutes (9:00 p.m. Special Meeting) Recommended Action: Approve the minutes A - Draft Minutes 7.Subject: Accept Accounts Payable for the period ending March 4, 2016 Recommended Action: Adopt Resolution No. 16-033 accepting Accounts Payable for the period ending March 4, 2016 A - Draft Resolution B - AP Report 8.Subject: Accept Accounts Payable for the period ending March 11, 2016 Recommended Action: Adopt Resolution No. 16-034 accepting Accounts Payable for the period ending March 11, 2016 A - Draft Resolution B - AP Report 9.Subject: Accept Accounts Payable for the period ending March 18, 2016 Recommended Action: Adopt Resolution No. 16-035 accepting Accounts Payable for the period ending March 18, 2016 A - Draft Resolution B - AP Report Page 2 CITY OF CUPERTINO 2 April 19, 2016City Council AGENDA 10.Subject: Accept Accounts Payable for the period ending March 25, 2016 Recommended Action: Adopt Resolution No. 16-036 accepting Accounts Payable for the period ending March 25, 2016 A - Draft Resolution B - AP Report 11.Subject: Recommended Position on State Assembly Bill 1928 (Campos): Irrigation Standards to Save Our Drinking Water Act Recommended Action: Adopt a position of support on Assembly Bill 1928 and authorize sending a letter of support to Assembly Member Nora Campos and our state delegation Staff Report A - Letter of Support B - Bill Language 12.Subject: Addition of the part-time staff classification of Park Ranger within the Recreation and Community Services Department Recommended Action: Adopt Resolution No. 16-037 authorizing the City Manager to add a new part-time staff classification of Park Ranger which would operate in the Stevens Creek Corridor and be overseen by the Recreation and Community Services Department Staff Report A - Park Ranger Job Description B - Draft Resolution 13.Subject: Proposed Planning Commission Work Program additions and revisions for Fiscal Year 2016-2017 Recommended Action: Accept proposed Planning Commission Work Program additions and revisions for Fiscal Year 2016-2017 Staff Report 14.Subject: Polling for Potential Transportation Sales Tax Measure Recommended Action: Receive information regarding the questions polled and the results of polling completed by the Silicon Valley Leadership Group in March 2016 Staff Report SECOND READING OF ORDINANCES PUBLIC HEARINGS 15.Subject: 2016-17 Community Development Block Grant (CDBG) Program Annual Action Plan and 2016-17 Grant Funding Allocations Page 3 CITY OF CUPERTINO 3 April 19, 2016City Council AGENDA Recommended Action: Conduct Public Hearing: and 1. Adopt Draft Resolution No. 16-038 approving the 2016-17 CDBG Annual Action Plan and; 2. Adopt Draft Resolution No. 16-039 approving the 2016-17 CDBG, General Fund Human Service Grants (HSG) Program and Below Market-Rate (BMR) Affordable Housing Fund (AHF) funding allocations Staff Report Attachment A - Draft Resolution No. 16- Annual Action Plan Attachment B - Draft Resolution No. 16- Grant Allocations Attachment C - CDBG Annual Action Plan Attachment D - Grant Application Summary Attachment E - Grant Application Descriptions Attachment F - HSG Grant Contract Attachment G - BMR AHF Grant Contract Attachment H - CDBG Grant Contract Attachment I - MidPen Pro Forma 16.Subject: Appeal of a Planning Commission decision to deny an appeal of a Director’s approval of a Two-Story Permit (R-2015-08) to allow the construction of a new 5,140-square-foot single-family residence and a Minor Residential Permit (RM-2015-08) to allow a second story balcony on the new residence. (Application No. R-2015-08 and RM-2015-08; Applicant: WEC & Assoc. (Kingkay Capital, LLC); Appellant: Jan Kucera Jr., and Matthew R. and Angela M.D. Miller; Location: 21900 Oakview Lane; APN: 326-19-105) Recommended Action: Adopt Resolution No. 16-040 to deny the appeal and uphold the Planning Commission's decision per PC Resolution No(s). 6798 and 6799 Staff Report A - Draft Resolution 16- B - Plan Set C - Appeal Filed by Jan Kucera Jr. D - Appeal Filed by Matthew R. Miller and Angela M.D. Miller E - Comment Letters F - Resolution No. 6798 G - Resolution No. 6799 H - Planning Commission Staff Report, 2-23-16 I - Planning Commission Meeting Minutes, 2-23-16 J - Original Appeal of Director’s Decision filed by Matthew R. Miller and Angela M.D. Miller K - Two-Story and Minor Residential Permits Action Letter, 1-8-16 ORDINANCES AND ACTION ITEMS 17.Subject: An ordinance amending sections of Chapter 3.23 of the Cupertino Page 4 CITY OF CUPERTINO 4 April 19, 2016City Council AGENDA Municipal Code to align the public works bid invitation distribution and posting periods with the related California Public Contract Code requirements Recommended Action: Conduct the first reading of Ordinance No. 16-2143: “An Ordinance of the City Council of the City of Cupertino Amending the Cupertino Municipal Code Sections 3.23.030, 3.23.040, 3.23.050, 3.23.120, of Chapter 3.23 of Title 3 Regarding Public Bidding” Staff Report A - Draft Ordinance B - Redline version of Draft Ordinance 18.Subject: Consideration of the City Council Summer Meeting Schedule and cancellation of meeting(s). Recommended Action: Consider the City Council Summer Meeting Schedule and cancel meeting(s) or provide direction to staff. Staff Report REPORTS BY COUNCIL AND STAFF 19.Subject: Climate Action Plan Annual Progress Update Recommended Action: Receive presentation and review Progress Report Staff Report Attachment A - Progress Report 20.Subject: Conceptual Study for Route 85 Corridor Mass Transit Alternatives Recommended Action: Receive presentation on Route 85 Corridor Mass Transit Alternatives Study Staff Report 21.Subject: Report on Committee assignments and general comments Recommended Action: Report on Committee assignments and general comments ADJOURNMENT Page 5 CITY OF CUPERTINO 5 April 19, 2016City 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 6 CITY OF CUPERTINO 6 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1643 Name: Status:Type:Closed Session Agenda Ready File created:In control:4/15/2016 City Council On agenda:Final action:4/19/2016 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 4/15/2016Page 1 of 1 powered by Legistar™7 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1354 Name: Status:Type:Ceremonial Matters & Presentations Agenda Ready File created:In control:1/12/2016 City Council On agenda:Final action:4/19/2016 Title:Subject: Recognize Cupertino's Green Businesses for their contribution to the health of our shared environment Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. City Council4/19/20161 Subject:RecognizeCupertino'sGreenBusinessesfortheircontributiontothehealthofour shared environment Present proclamations CITY OF CUPERTINO Printed on 4/15/2016Page 1 of 1 powered by Legistar™8 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:216-1355 Name: Status:Type:Ceremonial Matters & Presentations Agenda Ready File created:In control:1/12/2016 City Council On agenda:Final action:4/19/2016 Title:Subject: Recognize student artists participating in the Citywide "Energized by Art" utility box art pilot project Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. City Council4/19/20162 Subject:RecognizestudentartistsparticipatingintheCitywide"EnergizedbyArt"utilitybox art pilot project Present proclamations CITY OF CUPERTINO Printed on 4/15/2016Page 1 of 1 powered by Legistar™9 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1415 Name: Status:Type:Ceremonial Matters & Presentations Agenda Ready File created:In control:1/25/2016 City Council On agenda:Final action:4/19/2016 Title:Subject: 2016 Arbor Day Proclamation Sponsors: Indexes: Code sections: Attachments:Staff Report Action ByDate Action ResultVer. City Council4/19/20161 Subject: 2016 Arbor Day Proclamation Present proclamation CITY OF CUPERTINO Printed on 4/15/2016Page 1 of 1 powered by Legistar™10 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: April 19, 2016 Subject 2016 Arbor Day Proclamation. Recommended Action Present proclamation. Discussion The commitment of the Council, the community, and staff to promote a healthy and sustainable urban forest earned the City the designation of “Tree City USA” in 2013. The City became one of 3,400 communities nationwide and one of 150 communities in California to achieve this distinction. The Tree City USA program is a national program that provides the framework for community forestry management for cities and towns across America. Communities achieve Tree City USA status by meeting four core standards of sound urban forestry management. These standards include having a responsible department (Public Works), having a community tree ordinance, spending at least $2 per capita on urban forestry and celebrating Arbor Day. The City Council and community commitment of City resources and the efforts of the Tree Division staff to preserve and grow the City urban forest are commendable. The rewards to the City include but are not limited to greater community beauty, enhanced economic vitality and increased property values. Sustainability Impact None Fiscal Impact None _____________________________________ 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 11 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1607 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:3/31/2016 City Council On agenda:Final action:4/19/2016 Title:Subject: Approve the March 31 City Council minutes Sponsors: Indexes: Code sections: Attachments:A - Draft Minutes Action ByDate Action ResultVer. City Council4/19/20161 Subject: Approve the March 31 City Council minutes Approve the minutes CITY OF CUPERTINO Printed on 4/15/2016Page 1 of 1 powered by Legistar™12 DRAFT MINUTES CUPERTINO CITY COUNCIL Thursday, March 31, 2016 SPECIAL CITY COUNCIL MEETING PLEDGE OF ALLEGIANCE At 6:45 p.m. Mayor Barry Chang called the Special City Council meeting to order in Cupertino Community Hall Council Chambers, 10350 Torre Avenue and led the Pledge of Allegiance. ROLL CALL Present: Mayor Barry Chang, Vice Mayor Savita Vaidhyanathan, and Council members Darcy Paul, Rod Sinks and Gilbert Wong. Absent: None. ORAL COMMUNICATIONS Cathy Helgerson talked about possible Oral Communications changes at Council meetings. She distributed written comments. Phyllis Dickstein requested to allow the Cupertino Citizens Sensible Growth Initiative (CCSGI) group additional time to speak as a group rather than 3 minutes each as individual speakers. Jon Willey talked about potential traffic issues with the Vallco Hills project. He distributed written comments. Lisa Warren talked about the EIR for the Vallco Hills project with the Initiative process. ORDINANCES AND ACTION ITEMS 1. Subject: Proposed Initiative submitted by Vicky Tsai and Judy Wilson regarding the Vallco Town Center Specific Plan Initiative entitled, “Initiative adopting the Vallco Town Center Specific Plan to (1) provide that the Vallco Shopping District Special Area (“Area”) contains a mixture of residential, office, retail, civic and education uses; (2) require any development to fund or provide community benefits such as transit, 13 City Council Minutes March 31, 2016 2 schools, a green roof, and recycled water; and (3) grant the property owner initial entitlements to develop in accordance with the Initiative and establish a process for future approvals; and making related amendments to Cupertino’s General Plan and Municipal Code ("Vallco Initiative") and authorization to prepare a report under Elections Code 9212 Recommended Action: Adopt Resolution No. 16-027 directing City staff to prepare a report on the effects of the Vallco Initiative pursuant to Elections Code Section 9212 and appropriate $180,000.00 for such purpose City Manager David Brandt reviewed the staff report and staff answered questions from Council. The following individuals spoke on this item: Peggy Griffin Cathy Helgerson Lisa Warren Luke Lang Ignatius Y. Ding Steven Scharf Robert McKibbin on behalf of the Concerned Citizens of Cupertino (CCC) James Randolph Fariba Nejat Qin Pau Xiaowen Wang (she distributed written comments) Penny Whittaker Jennifer Griffin Liang Chao Yanping Zhao Jerry Sheahan Neil Struthers Danessa Techmanski Steve Kelly Victor Castello Their comments included: add to the report a list of parameters in the Initiative that can be changed without Council approval; add to the report a list of benefits noting what is enforceable and what’s not; fact check the project; traffic concerns; green roof an issue in the drought; initiatives by developers bypass EIR process; circulators are 14 City Council Minutes March 31, 2016 3 having trouble gathering signatures; residents are distrustful of Council; in favor of the Initiative and the 9212 report; looking forward to new development at Vallco but disappointed in office portion; school crowding concerns; make sure Vallco sticks to what they said they would build; wish Cupertino still had a Redevelopment Agency; no place to shop for clothing in Cupertino; noted taxable sales of comparable shopping centers; letter of intent between Sand Hill and the Cupertino Union School District; concern with Sand Hill’s financial backing; mitigate traffic issues by putting housing in close proximity to Apple and Vallco; unlikely a future developer will take on Vallco development if CCSGI passes. Wong moved and Paul seconded to adopt Resolution No. 16-027 directing City staff to prepare a report on the effects of the Vallco Initiative pursuant to Elections Code Section 9212 and appropriate $150,000.00 for such purpose. Wong amended his motion to appropriate $180,000.00 and Paul agreed to the amendment. Council also gave direction to staff to find out the date of when the Initiative signatures need to be filed in time for the August 12 deadline to call the election. The motion carried unanimously. 2. Subject: Election Code section 9212 report relating to proposed Cupertino Citizens’ Sensible Growth Initiative entitled, “Initiative amending Cupertino’s General Plan to limit redevelopment of the Vallco Shopping District, limit building heights and lot coverages in areas throughout the City, establish new setbacks and building planes on major thoroughfares, and require voter approval for any changes to these provisions” (“CCSGI Initiative”); determination whether to adopt the CCSGI Initiative or place measure on the ballot; and determination regarding ballot arguments and impartial analysis Recommended Action: 1. Receive the Report on the Impacts of Proposed Initiative and either: a. Adopt the Initiative; or b. Adopt Resolution No. 16-028 ordering that the Initiative be placed on the Ballot for the November 8, 2016 General Municipal Election, to be consolidated with the Statewide General Election; and 2. Adopt Resolution No. 16-029 considering whether to direct the City Clerk to transmit the Initiative to the City Attorney for preparation of an Impartial Analysis and whether to authorize City Council members, or the Council as a whole, to submit ballot arguments against the Initiative; and 3. Adopt Resolution No. 16-030 considering whether to authorize rebuttal arguments for and against the Initiative Written communications for this item included a letter from Nielsen Merksamer, a letter from Stuart Flashman, resident emails, redline and clean amended Resolution 15 City Council Minutes March 31, 2016 4 Nos. 16-028 and 16-029, recommended action slide and a consultant PowerPoint presentation. City Clerk Grace Schmidt reviewed the staff report. Perl Perlmutter, attorney specializing in Land Use and Elections Law and Libby Seifel with Seifel Consulting Inc., economist who prepared the 9212 report, reviewed the report via a PowerPoint presentation. Council asked questions of the consultants and staff. Kristy Weiss with David J. Powers and Associates who assisted in preparing the environmental analysis portion of the 9212 report answered questions from Council regarding traffic. The following individuals spoke on this item and minutes note whether in favor or opposed to Cupertino Citizens Sensible Growth Initiative (CCSGI): Janice Chua (opposed) Cathy Helgerson (in favor and distributed written comments) Leslie Chao (opposed) Cinny Zhuang (opposed) Peggy Griffin (in favor) Dennis Whittaker (in favor) Grace King (opposed) Namrata Vora on behalf of Mamata Desai (opposed) Craig Bauheuer (opposed) Kevin McClelland on behalf of Cupertino Chamber of Commerce (opposed) Steven Scharf (in favor) Robert McKibbin on behalf of CCC (in favor) David Fung (opposed) Xiaowen Wang (in favor) Jennifer Griffin (in favor) Lisa Warren (in favor) Liang Chao (in favor) Liana Crabtree (in favor) Jean Bedord (opposed) Wengwang Wang (in favor) 16 City Council Minutes March 31, 2016 5 Orrin Mahoney (opposed) Danessa Techmanski (in favor) Qin Pau (in favor) Ignatius Y. Ding (in favor) Herbert Knoesel (opposed) Michael Zhang (neutral) Luke Lang (in favor) Zhuoli Yang (opposed) Joan Chin (in favor) Richard Lowenthal (opposed and distributed written comments) Yanping Zhao (in favor) Harris Au (in favor) Hung Wei (opposed) Richard Abdalah (opposed) David Gold (opposed) 1. Receive the report on the impacts of the proposed Initiative; and 1b. Adopt Resolution No. 16-028 ordering that the Initiative be placed on the Ballot for the November 8, 2016 General Municipal Election, to be consolidated with the Statewide General Election. Wong moved and Sinks seconded to receive the report on the impacts of the proposed Initiative and adopt Resolution No. 16-028 ordering that the Initiative be placed on the Ballot for the November 8, 2016 General Municipal Election, to be consolidated with the Statewide General Election with the following amendment to the ballot language: Shall an Initiative Ordinance be adopted amending Cupertino’s General Plan to limit redevelopment of the Vallco Shopping District, limit building heights along major mixed-use corridors, establish a 45 feet maximum building height in the neighborhoods, limit lot coverages for large projects, establish new setbacks and building planes on major thoroughfares, and require voter approval for any changes to these provisions? The motion carried unanimously. 2. Adopt Resolution No. 16-029 directing the City Clerk to transmit the Initiative to the City Attorney for preparation of an Impartial Analysis and authorize City Council members, or the Council as a whole, to submit ballot arguments against the Initiative. Wong moved and Sinks seconded to adopt Resolution No. 16-029 directing the City Clerk to transmit the Initiative to the City Attorney for preparation of an Impartial 17 City Council Minutes March 31, 2016 6 Analysis and not authorize the City Council members, or the Council as a whole, to submit ballot arguments against the Initiative with the following amendment to the ballot language: Shall an Initiative Ordinance be adopted amending Cupertino’s General Plan to limit redevelopment of the Vallco Shopping District, limit building heights along major mixed-use corridors, establish a 45 feet maximum building height in the neighborhoods, limit lot coverages for large projects, establish new setbacks and building planes on major thoroughfares, and require voter approval for any changes to these provisions? The motion carried unanimously. 3. Adopt Resolution No. 16-030 authorizing rebuttal arguments for and against the Initiative. Wong moved and Sinks seconded to adopt Resolution No. 16-030 authorizing rebuttal arguments for and against the Initiative. The motion carried unanimously. ADJOURNMENT At 12:20 a.m. on Friday, April 1, Mayor Chang adjourned the meeting. _______________________ Grace Schmidt, City Clerk Staff reports, backup materials, and items distributed at the City Council meeting are available for review at the City Clerk’s Office, 777-3223, and also on the Internet at www.cupertino.org. Click on Agendas & Minutes, then click on the appropriate Packet. Most Council meetings are shown live on Comcast Channel 26 and AT&T U-verse Channel 99 and are available at your convenience at www.cupertino.org. Click on Agendas & Minutes, and then click Archived Webcast. Videotapes are available at the Cupertino Library, or may be purchased from the Cupertino City Channel, 777-2364. 18 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1319 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:1/7/2016 City Council On agenda:Final action:4/19/2016 Title:Subject: Approve the April 5 City Council minutes Sponsors: Indexes: Code sections: Attachments:A - Draft Minutes Action ByDate Action ResultVer. City Council4/19/20161 Subject: Approve the April 5 City Council minutes Approve the minutes CITY OF CUPERTINO Printed on 4/15/2016Page 1 of 1 powered by Legistar™19 DRAFT MINUTES CUPERTINO CITY COUNCIL Tuesday, April 5, 2016 SPECIAL CITY COUNCIL MEETING ROLL CALL At 4:30 p.m. Mayor Barry Chang called the Special City Council meeting to order in Cupertino City Hall Conference Room A, 10300 Torre Avenue. Present: Mayor Barry Chang, Vice Mayor Savita Vaidhyanathan, and Council members Darcy Paul, Rod Sinks and Gilbert Wong. Absent: None. Council went into closed session and reconvened in open session at 5:20 p.m. in the Cupertino Community Hall Council Chamber, 10350 Torre Avenue for a study session regarding the Stevens Creek Boulevard to McClellan Road Creek Corridor Master Plan (Stevens Creek Corridor Master Plan). CLOSED SESSION 1a. Subject: Conference with Legal Counsel - Anticipated Litigation: Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Government Code Section 54956.9 Mayor Chang announced that Council met with legal counsel and gave direction. 1. Subject: Conference with legal counsel - Existing Litigation pursuant to Paragraph (1) of subdivision (d) of Gov't Code 54956.9; City of Cupertino v. Navistar, Inc. Mayor Chang announced that Council met with legal counsel and no action was taken. STUDY SESSION 2. Subject: Review the Stevens Creek Boulevard to McClellan Road Creek Corridor Master Plan (Stevens Creek Corridor Master Plan) Draft preferred alternative. Recommended Action: Review the draft preferred alternative for the Stevens Creek 20 City Council Minutes April 5, 2016 2 Corridor Master Plan and provide direction to staff regarding proceeding with environmental evaluation. Written communications for this item included emails and a letter to Council, map of preferred alternative plan and a consultant PowerPoint presentation. Director of Recreation and Community Services Carol Atwood reviewed the staff report and introduced the consultants. Laurie Matthews, Director of Preservation Planning + Design and Senior Project Manager at MIG, Inc. made a PowerPoint presentation on the Draft preferred alternative. Ed Getherall, Sr. Director of Operations at NGF Consulting National Golf Foundation and Forrest Richardson from Forrest Richardson & Associates Golf Course Architects (A.S.G.C.A.) made a PowerPoint presentation regarding the golf course component. Consultants and staff answered questions from Council. The following individuals spoke on this item: David Fung Ed Bloom Geoff Paulsen Dave McLeroy Rhoda Fry Orrin Mahoney Paula Davis Shani Kleinhaus on behalf of Santa Clara Valley Audubon Society Their comments included: supportive of moving forward with CEQA process; need to slow down bike traffic in trail through park; concern about Cupertino supporting non- Cupertino organizations; add provision that if golf course closes, return it to natural space; supportive of Master Plan project; focus on golf course; relocate the swimming pools; investigate other alternatives for access; if Blue Pheasant torn down, do not replace it; fix barn at McClellan Ranch; concern about narrow corridor with golf course; continue creek restoration; move golf clubhouse and roads as close to Stevens Creek Boulevard as possible; build new bridge over creek only if absolutely necessary; parking should be for everyday use only. 21 City Council Minutes April 5, 2016 3 Paul moved and Wong seconded to continue the item to a future meeting to be determined. The motion carried unanimously. ADJOURNMENT At 6:40 p.m. Mayor Chang adjourned the Special Meeting. Council recessed from 6:40 p.m. to 7:07 p.m. REGULAR CITY COUNCIL MEETING PLEDGE OF ALLEGIANCE At 7:07 p.m. Mayor Barry Chang 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 Barry Chang, Vice Mayor Savita Vaidhyanathan, and Council members Darcy Paul, Rod Sinks and Gilbert Wong. Absent: None. CEREMONIAL MATTERS AND PRESENTATIONS 1. Subject: Present proclamation to the Asian American Parent Association (AAPA) Recommended Action: Present proclamation Mayor Chang presented the proclamation to representatives of AAPA. POSTPONEMENTS - None ORAL COMMUNICATIONS Glenn Lee talked about his appeal on his property and the Administrative Citation process. Rhoda Fry talked about the Blackberry Farm Picnic Area and budget costs. Helene Davis on behalf of Cupertino Historical Society talked about the Society’s upcoming brochure on historical sites in Cupertino. 22 City Council Minutes April 5, 2016 4 DeAnna Pursai, Art Cohen, Katie Zeisl and Pamela Lindsay on behalf of Bluelight Cinemas College of Adaptive Arts talked about a special film festival coming up on April 24 from 2:00- 5:00 p.m. Liang Chao talked about the Cupertino Citizens’ Sensible Growth Initiative (CCSGI) 9212 report. Luke Lang talked about the CCSGI 9212 report. Peggy Griffin talked about the Special Council Meeting that was called for after tonight’s Regular Meeting regarding the CCSGI ballot question. Ignatius Ding talked about resident safety. Ray Lin on behalf of Boy Scout Troop 453 talked about working on his badge by visiting a Council meeting and urged voting in the upcoming election. Other members of the troop (Aaron, Ethan, Jackie, Ivan) also introduced themselves. Lisa Warren talked about rezoning at Vallco regarding retail. Xiaowen Wang talked about the Special Council Meeting that was called for after tonight’s Regular Meeting regarding the CCSGI ballot question. Jerry Sheahan talked about the Brown Act, dialoguing with Council members and The Hills at Vallco project. CONSENT CALENDAR Wong moved and Sinks seconded to approve the items on the Consent Calendar as presented. Ayes: Chang, Vaidhyanathan, Paul, Sinks and Wong. Noes: None. Abstain: None. Absent: None. 2. Subject: Approve the March 15 City Council minutes Recommended Action: Approve the minutes 3. Subject: Affirm Nina Daruwalla as a community member and Sue Bose as the Business Representative on the Housing Commission in order to meet the Cupertino Municipal Code requirements 23 City Council Minutes April 5, 2016 5 Recommended Action: Affirm Nina Daruwalla as a community member and Sue Bose as the Business Representative on the Housing Commission 4. Subject: Accept the City Financial Reports for Fiscal Year ending June 30, 2015 Recommended Action: Accept the City Financial Reports for Fiscal Year ending June 30, 2015 5. Subject: Application for Alcoholic Beverage License for Hi Pot, 19066 Stevens Creek Boulevard Recommended Action: Recommend approval to the California Department of Alcoholic Beverage Control of the Application for Alcoholic Beverage License for Hi Pot, 19066 Stevens Creek Boulevard 6. Subject: Application for Alcoholic Beverage License for Aya Japan House, 10789 South Blaney Avenue Recommended Action: Recommend approval to the California Department of Alcoholic Beverage Control of the Application for Alcoholic Beverage License for Aya Japan House, 10789 South Blaney Avenue 7. Subject: Application for Alcoholic Beverage License for Panino Guisto, 19469 Stevens Creek Boulevard Recommended Action: Recommend approval to the California Department of Alcoholic Beverage Control of the Application for Alcoholic Beverage License for Panino Guisto, 19469 Stevens Creek Boulevard 8. Subject: Application for Alcoholic Beverage License for Crab Lover, 10275 South De Anza Boulevard Recommended Action: Recommend approval to the California Department of Alcoholic Beverage Control of the Application for Alcoholic Beverage License for Crab Lover, 10275 South De Anza Boulevard 9. Subject: Application for Alcoholic Beverage License for Cupertino Valero, 10002 North De Anza Boulevard Recommended Action: Recommend approval to the California Department of Alcoholic Beverage Control of the Application for Alcoholic Beverage License for Cupertino Valero, 10002 North De Anza Boulevard SECOND READING OF ORDINANCES 24 City Council Minutes April 5, 2016 6 10. Subject: Second Reading of a Municipal Code Amendment to repeal Chapter 14.15 of the Cupertino Municipal Code entitled “Landscaping Ordinance” and replace it with a new Chapter 14.15 entitled “Landscape Ordinance” in order to improve readability and to comply with state-mandated updates to the Model Water-Efficient Landscape Ordinance as directed by Governor Brown’s Executive Order B-29-15; Application No.(s):MCA-2015-02; Applicant(s): City of Cupertino; Location: citywide Recommended Action: Conduct the second reading and enact Ordinance No. 16-2142, “An Ordinance of the City Council of the City of Cupertino to repeal Chapter 14.15 of the Cupertino Municipal Code entitled “Landscaping Ordinance” and replace it with a new Chapter 14.15 entitled “Landscape Ordinance” in order to improve readability and to comply with state-mandated updates to the Model Water-Efficient Landscape Ordinance” Written communications for this item included a staff PowerPoint presentation. City Clerk Grace Schmidt read the title of the ordinance. Wong moved and Vaidhyanathan seconded to read Ordinance No. 16-2142 by title only and that the City Clerk’s reading would constitute the second reading thereof. Ayes: Chang, Vaidhyanathan, Paul, Sinks and Wong. Noes: None. Abstain: None. Absent: None. Wong moved and Vaidhyanathan seconded to enact Ordinance No. 16-2142. Ayes: Chang, Vaidhyanathan, Paul, Sinks and Wong. Noes: None. Abstain: None. Absent: None. PUBLIC HEARINGS 11. Subject: Fiscal Year 2016-17 Fee Schedule (continued from March 15) Recommended Action: Adopt Resolution No. 16-031 approving the Fiscal Year 2016-17 Fee Schedule, effective July 1, 2016 Written communications for this item included a staff PowerPoint presentation. Assistant to the City Manager Jacqueline Guzman reviewed the staff report via PowerPoint presentation. Staff answered questions from Council. 25 City Council Minutes April 5, 2016 7 The following individuals spoke on this item: Peggy Griffin (Schedule E and calculation of class cost) Barbara McArthur (Cupertino Rotary non-profit needing affordable space for meetings) Wong moved and Paul seconded to continue the item to the next Council meeting. The motion failed with Wong and Paul voting yes and Chang, Sinks, and Vaidhyanathan voting no. Sinks moved to adopt Resolution No. 16-031 with amendments as noted below and Vaidhyanathan seconded with a friendly amendment to phase in fees for non-profits and residents for two years. Sinks did not accept the friendly amendment and Vaidhyanathan withdrew her second. Paul seconded Sinks motion to adopt the resolution with amendments as noted below with a friendly amendment to hold non-residential fees steady as status quo in those instances where resident fees are increased. Sinks accepted the friendly amendment. The motion carried with Wong voting no. The final motion was to adopt Resolution No. 16-031 approving the Fiscal Year 2016-17 Fee Schedule, effective July 1, 2016 with the following amendments:  Schedule E - Maintain status quo on facility rental structure and fees for non-profit categories  Hold non-residential fees steady as status quo in those instances where resident fees are increased  Consolidate non-profit categories 2 and 3  Reduce non-profit demonstration from 51% to 1/3 of members  Make adjustments to all other fees as recommended by staff but cap anything over 20% of comp averages and bring any exceptions above 20% to Council with written explanation and justification for approval  Defer political sign fee increase until sign ordinance comes to Council and then bring political sign fee back for consideration at that time ORDINANCES AND ACTION ITEMS 12. Subject: Discuss procedure for handling Oral Communications at Council meetings Recommended Action: Discuss procedure for handling Oral Communications at 26 City Council Minutes April 5, 2016 8 Written communications for this item included emails to Council. The following individuals spoke on this item and were opposed to making any changes to the procedure for handling Oral Communications: Peggy Griffin Randy Shingai Jennifer Griffin Xiaowen Wang Sinks moved and Vaidhyanathan seconded and the motion carried with Wong voting no to handle Oral Communications at Council meetings in the following manner: Establish a two-month trial period whereby Council will hear the first eight persons who have submitted speaker cards, with mayor discretion to allow more than eight persons, including special consideration for seniors and youth groups. The remainder of the speakers wishing to address the Council on non-agenda items will be heard at the end of the agenda. REPORTS BY COUNCIL AND STAFF 13. Subject: Report on Committee assignments and general comments Recommended Action: Report on Committee assignments and general comments City Manager David Brandt introduced Cupertino’s new Chief Technology Officer Bill Mitchell. Council members highlighted the activities of their committees and various community events. ADJOURNMENT At 10:05 p.m., Mayor Chang adjourned the meeting. _______________________ Grace Schmidt, City Clerk 27 City Council Minutes April 5, 2016 9 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. 28 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1624 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:4/8/2016 City Council On agenda:Final action:4/19/2016 Title:Subject: Approve the April 5 City Council minutes (9:00 p.m. Special Meeting) Sponsors: Indexes: Code sections: Attachments:A - Draft Minutes Action ByDate Action ResultVer. City Council4/19/20161 Subject: Approve the April 5 City Council minutes (9:00 p.m. Special Meeting) Approve the minutes CITY OF CUPERTINO Printed on 4/15/2016Page 1 of 1 powered by Legistar™29 DRAFT MINUTES CUPERTINO CITY COUNCIL Tuesday, April 5, 2016 SPECIAL CITY COUNCIL MEETING ROLL CALL At 10:13 p.m. Mayor Barry Chang called the Special City Council meeting to order in Cupertino Community Hall Council Chamber, 10350 Torre Avenue. Present: Mayor Barry Chang, Vice Mayor Savita Vaidhyanathan, and Council members Darcy Paul, Rod Sinks and Gilbert Wong. Absent: None. ORDINANCES AND ACTION ITEMS 1. Subject: Consideration of an amendment to Cupertino Citizens' Sensible Growth Initiative (CCSGI) ballot question to clarify the nature of the Initiative, including that it will "increase" heights in the Neighborhoods, and amend City Council Resolution Nos. 16-028 and 16-029 to reflect the amended ballot question Recommended Action: Adopt Resolution No. 16-032 amending City Council Resolution Nos. 16-028 and 16-029 to reflect the amended ballot question Written communications for this item included emails and letters to Council. The following individuals spoke on this item: Stuart Flashman attorney for CCSGI (distributed written comments) Virginia Tamblyn Phyllis Dickstein Randy Shingai David Fung Anne Woo Barbara Chang Michael Chang Leigh-Anne Gillis Ignatius Ding Feng Ye 30 City Council Minutes April 5, 2016 2 Lisa Warren Liang Chao Wenguang Wang Jennifer Griffin Govind Tatachari Xiaowen Wang (distributed written comments) Liana Crabtree Steven Scharf Jon Willey Richard Abdalah Miles Imwalle on behalf of the Cupertino Neighbors, Educators & the Cupertino Chamber of Commerce for the Sensible and Sustainable Revitalization of Vallco Staff answered questions from Council. Wong moved and Sinks seconded to adopt Resolution No. 16-032 amending City Council Resolution Nos. 16-028 and 16-029 to reflect the amended ballot question as noted below. The motion carried with Paul and Vaidhyanathan voting no. Shall an initiative ordinance be adopted amending Cupertino’s General Plan to limit redevelopment of the Vallco Shopping District, limit building heights along major mixed-use corridors, increase to 45 feet maximum building height in the Neighborhoods, limit lot coverages for large projects, establish new setbacks and building planes on major thoroughfares, and require voter approval for any changes to these provisions? ADJOURNMENT At 11:46 p.m., Mayor Chang adjourned the meeting. _______________________ Grace Schmidt, City Clerk Staff reports, backup materials, and items distributed at the City Council meeting are available for review at the City Clerk’s Office, 777-3223, and also on the Internet at www.cupertino.org. Click on Agendas & Minutes, then click on the appropriate Packet. 31 City Council Minutes April 5, 2016 3 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. 32 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1625 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:4/8/2016 City Council On agenda:Final action:4/19/2016 Title:Subject: Accept Accounts Payable for the period ending March 4, 2016 Sponsors: Indexes: Code sections: Attachments:A - Draft Resolution B - AP Report Action ByDate Action ResultVer. City Council4/19/20161 Subject: Accept Accounts Payable for the period ending March 4, 2016 Adopt Resolution No. 16-033 accepting Accounts Payable for the period ending March 4, 2016 CITY OF CUPERTINO Printed on 4/15/2016Page 1 of 1 powered by Legistar™33 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ALLOWING CERTAIN CLAIMS AND DEMANDS PAYABLE IN THE AMOUNTS AND FROM THE FUNDS AS HEREINAFTER DESCRIBED FOR GENERAL AND MISCELLANEOUS EXPENDITURES FOR THE PERIOD ENDING March 4, 2016 WHEREAS, the Director of Administrative Services or her designated representative has certified to accuracy of the following claims and demands and to the availability of funds for payment hereof; and WHEREAS, the said claims and demands have been audited as required by law. NOW, THEREFORE, BE IT RESOLVED, that the City Council hereby allows the following claims and demands in the amounts and from the funds as hereinafter set forth in the attached Payment Register. CERTIFIED: _____________________________ Lisa Taitano, Finance Manager PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 19th day of April, 2016, by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: _________________________ ________________________ Grace Schmidt, City Clerk Barry Chang, Mayor, City of Cupertino 34 35 36 37 38 39 40 41 42 43 44 45 46 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:316-1633 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:4/11/2016 City Council On agenda:Final action:4/19/2016 Title:Subject: Accept Accounts Payable for the period ending March 11, 2016 Sponsors: Indexes: Code sections: Attachments:A - Draft Resolution B - AP Report Action ByDate Action ResultVer. City Council4/19/20163 Subject: Accept Accounts Payable for the period ending March 11, 2016 AdoptResolutionNo.16-034acceptingAccountsPayablefortheperiodendingMarch11, 2016 CITY OF CUPERTINO Printed on 4/15/2016Page 1 of 1 powered by Legistar™47 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ALLOWING CERTAIN CLAIMS AND DEMANDS PAYABLE IN THE AMOUNTS AND FROM THE FUNDS AS HEREINAFTER DESCRIBED FOR GENERAL AND MISCELLANEOUS EXPENDITURES FOR THE PERIOD ENDING March 11, 2016 WHEREAS, the Director of Administrative Services or her designated representative has certified to accuracy of the following claims and demands and to the availability of funds for payment hereof; and WHEREAS, the said claims and demands have been audited as required by law. NOW, THEREFORE, BE IT RESOLVED, that the City Council hereby allows the following claims and demands in the amounts and from the funds as hereinafter set forth in the attached Payment Register. CERTIFIED: _____________________________ Lisa Taitano, Finance Manager PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 19th day of April, 2016, by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: _________________________ ________________________ Grace Schmidt, City Clerk Barry Chang, Mayor, City of Cupertino 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1634 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:4/11/2016 City Council On agenda:Final action:4/19/2016 Title:Subject: Accept Accounts Payable for the period ending March 18, 2016 Sponsors: Indexes: Code sections: Attachments:A - Draft Resolution B - AP Report Action ByDate Action ResultVer. City Council4/19/20161 Subject: Accept Accounts Payable for the period ending March 18, 2016 AdoptResolutionNo.16-035acceptingAccountsPayablefortheperiodendingMarch18, 2016 CITY OF CUPERTINO Printed on 4/15/2016Page 1 of 1 powered by Legistar™65 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ALLOWING CERTAIN CLAIMS AND DEMANDS PAYABLE IN THE AMOUNTS AND FROM THE FUNDS AS HEREINAFTER DESCRIBED FOR GENERAL AND MISCELLANEOUS EXPENDITURES FOR THE PERIOD ENDING March 18, 2016 WHEREAS, the Director of Administrative Services or her designated representative has certified to accuracy of the following claims and demands and to the availability of funds for payment hereof; and WHEREAS, the said claims and demands have been audited as required by law. NOW, THEREFORE, BE IT RESOLVED, that the City Council hereby allows the following claims and demands in the amounts and from the funds as hereinafter set forth in the attached Payment Register. CERTIFIED: _____________________________ Lisa Taitano, Finance Manager PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 19th day of April, 2016, by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: _________________________ ________________________ Grace Schmidt, City Clerk Barry Chang, Mayor, City of Cupertino 66 67 68 69 70 71 72 73 74 75 76 77 78 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1635 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:4/11/2016 City Council On agenda:Final action:4/19/2016 Title:Subject: Accept Accounts Payable for the period ending March 25, 2016 Sponsors: Indexes: Code sections: Attachments:A - Draft Resolution B - AP Report Action ByDate Action ResultVer. City Council4/19/20161 Subject: Accept Accounts Payable for the period ending March 25, 2016 AdoptResolutionNo.16-036acceptingAccountsPayablefortheperiodendingMarch25, 2016 CITY OF CUPERTINO Printed on 4/15/2016Page 1 of 1 powered by Legistar™79 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ALLOWING CERTAIN CLAIMS AND DEMANDS PAYABLE IN THE AMOUNTS AND FROM THE FUNDS AS HEREINAFTER DESCRIBED FOR GENERAL AND MISCELLANEOUS EXPENDITURES FOR THE PERIOD ENDING March 25, 2016 WHEREAS, the Director of Administrative Services or her designated representative has certified to accuracy of the following claims and demands and to the availability of funds for payment hereof; and WHEREAS, the said claims and demands have been audited as required by law. NOW, THEREFORE, BE IT RESOLVED, that the City Council hereby allows the following claims and demands in the amounts and from the funds as hereinafter set forth in the attached Payment Register. CERTIFIED: _____________________________ Lisa Taitano, Finance Manager PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 19th day of April, 2016, by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: _________________________ ________________________ Grace Schmidt, City Clerk Barry Chang, Mayor, City of Cupertino 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:316-1638 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:4/12/2016 City Council On agenda:Final action:4/19/2016 Title:Subject: Recommended Position on State Assembly Bill 1928 (Campos): Irrigation Standards to Save Our Drinking Water Act Sponsors: Indexes: Code sections: Attachments:Staff Report A - Letter of Support B - Bill Language Action ByDate Action ResultVer. City Council4/19/20163 Subject:RecommendedPositiononStateAssemblyBill1928(Campos):IrrigationStandards to Save Our Drinking Water Act AdoptapositionofsupportonAssemblyBill1928andauthorizesendingaletterofsupportto Assembly Member Nora Campos and our state delegation CITY OF CUPERTINO Printed on 4/15/2016Page 1 of 1 powered by Legistar™99 1 OFFICE OF THE CITY MANAGER SUSTAINABILITY DIVISION CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-7603 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: April 19, 2016 Subject Recommended Position on State Assembly Bill 1928 (Campos): Irrigation Standards to Save Our Drinking Water Act. Recommended Action Adopt a position of support on Assembly Bill 1928 and authorize sending a letter of support to Assembly Member Nora Campos and our state delegation. Description Despite the presence of El Nino conditions this winter, California is preparing for a fifth consecutive year of drought and beyond. Across the state, water agencies are implementing measures to reduce the use and consumption of water, both to meet mandatory reductions in the short term and to promote drought resilience in the long term. One of those measures includes encouraging the use of water efficient equipment and appliances, both indoors and outdoors. In 2006, AB 1881 (Laird) was signed into law, which required the California Energy Commission (CEC) to establish both performance standards and labeling requirements for landscape irrigation equipment by certain deadlines. However, the CEC suspended the effort two years later, citing lack of funding caused by the 2008 economic recession and scientific evidence that the standards would actually save water. Since that time, both funding and water efficient irrigation technology have dramatically improved, so the time is right to extend implementation deadlines required by AB 1881 and finally establish performance standards and labeling requirements for landscape irrigation equipment, ensuring that California can continue to reduce water consumption and weather current and future droughts. Water efficiency standards for indoor water fixtures and appliances are created and approved by the US Environmental Protection Agency (EPA) and the CEC, and have been in place for many years. Currently, there are no such standards or labeling requirements that exist for landscape irrigation equipment, despite landscape irrigation comprising about half of residential water use. 100 2 Consequently, outdoor water use provides a substantial opportunity for water savings through the use of water efficient irrigation equipment. Since the drought began, the City of Cupertino has instituted measures to reduce water usage in accordance with state mandates and local directives, including:  adoption of a water conservation ordinance;  adoption of a resolution urging water conservation;  adoption of a Water Efficient Landscaping Ordinance;  adoption/implementation of an internal Water Conservation Policy to reduce water use;  public education around water conservation and efficiency, through our website and other online and social media channels; and  partnership with the Santa Clara Valley Water District to offer services, rebates and other incentives so residents can enjoy, protect and use water wisely. The drought will continue to present urgent challenges including: drinking water shortages in communities across the state, diminished water for agricultural production, degraded habitat for many fish and wildlife species, increased wildfire risk, and the threat of saltwater contamination to fresh water supplies. Careful water management requires active conservation measures, in order to ensure a reliable supply of water to meet current and future water supply needs. AB 1928 is a simple, but important, fix. Due to the delay by the CEC with the implementation of AB 1881 (Laird, 2006), AB 1928 will extend important deadlines in order to meet the goals of existing law. As of Monday, April 11th, 2016, registered supporters for AB 1928 include: Association of California Water Agencies California Municipal Utilities Association California Landscape Contractors Association East Bay Municipal Utilities District San Diego County Water Authority Santa Clara Valley Water District Santa Clara County Board of Supervisors City of Saratoga City of Morgan Hill City of Sunnyvale Cupertino Chamber of Commerce Santa Clara Chamber of Commerce Gilroy Chamber of Commerce No Opposition is known. For these reasons, staff recommends that the City Council adopt a position of support on AB 1928, and authorize a letter to be sent on behalf of the City Council to Assembly Member Campos and members of the state delegation. This item was reviewed in advance and supported for Council consideration by its Legislative Review Committee. Sustainability Impact AB 1928 would support the City’s Climate Action Plan (CAP) goal to conserve water such as in measure C-W-1, “SB-X7-7”: Implement water conservation policies contained within 101 3 Cupertino’s Urban Water Management Plant to achieve 20 percent per capita water reductions by 2020. Implementing water efficiency standards and appropriate labeling for irrigation equipment would improve the water savings potential in newly installed and retrofitted irrigation systems as well as assist constituents in making environmentally sound purchasing decisions. Additionally, AB 1928 would cause the CEC to develop standards to help guide CAP measure M-F-7, “Conserve Water Through Efficient Landscaping”: Implement best management practices in landscaping design and share City successes community-wide to lead by example in water conservation action. This guidance will be beneficial when developing the City’s Green Grounds Policy as outlined in CAP action M-F-7-C, “Adopt Water Budget & Green Grounds Policy”. According to the California Urban Water Conservation Council, AB 1928 is estimated to save between six hundred thousand and one million acre feet of water per year across the state. Fiscal Impact There is no anticipated fiscal impact to the City as a result of its supporting AB 1928. _____________________________________ Prepared by: Katy Nomura, Utility & Efficiency Analyst Reviewed by: Erin Cooke, Assistant to the City Manager & Sustainability Manager Approved for Submission by: David Brandt, City Manager Attachments: A. Draft Letter of Support B. AB 1928 Bill Language 102 CUPERTINO CITY COUNCIL CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3192 • FAX: (408) 777-3366 bchang@cupertino.org Honorable Nora Campos California Assembly State Capitol Room 3013 Sacramento, CA 95814 SUBJECT: Notice of Support – Assembly Bill 1928 (Campos): Irrigation Standards to Save Our Drinking Water Act (I-2/12/16) Dear Assembly Member Campos: The Cupertino City Council supports your AB 1928, relative to establishing a timeline for the implementation of water efficiency standards and labeling requirements for irrigation equipment. Under normal circumstances, it makes common sense to use water wisely both indoors and out. In the midst of a historic, severe drought, it becomes critical that we use this precious resource as efficiently possible. Given that landscape irrigation makes up one-third of water use in California, the time is right to ensure that the equipment that delivers that water is efficient, and labeled as such so that consumers can make informed choices. State law already mandates that the California Energy Commission (CEC) develops and implements water efficiency standards for landscape irrigation equipment, but they suspended doing so in 2008. Given the significant technological innovations in this equipment since then, and in the midst of a historic drought that demands action on all fronts, it is time for the CEC to fulfill their legal mandate, and finally establish water efficiency standards and labeling requirements for this equipment, pursuant to the timelines that AB 1928 sets forth. AB 1928 will help California further reduce water consumption by taking the next step in improving outdoor water efficiency, and also allow consumers to make more informed choices about water efficient equipment, both of which help bolster our state’s drought resiliency for this and future generations. Please feel free to contact me at (408) 777-3192 or bchang@cupertino.org should you have any questions. Sincerely, Mayor Barry Chang City of Cupertino 103 california legislature—2015–16 regular session ASSEMBLY BILL No. 1928 Introduced by Assembly Member Campos February 12, 2016 An act to amend Section 25401.9 of the Public Resources Code, relating to water. legislative counsel’s digest AB 1928, as introduced, Campos. Water efficiency: landscape irrigation equipment. Existing law requires, to the extent that funds are available, the State Energy Resources Conservation and Development Commission, in consultation with the Department of Water Resources, to adopt, by January 1, 2010, performance standards and labeling requirements for landscape irrigation controllers and moisture sensors and, on or after January 1, 2012, prohibits that equipment from being sold unless it meets the performance standards and labeling requirements. This bill would postpone the date by which the commission is to adopt the performance standards and labeling requirements to January 1, 2018, and would prohibit, on and after January 1, 2020, the sale of that equipment unless it meets the performance standards and labeling requirements. The bill would additionally require the commission, in adopting those standards and requirements, to consider developments in landscape irrigation efficiency occurring on or after January 1, 2010. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. 99 104 The people of the State of California do enact as follows: line 1 SECTION 1. Section 25401.9 of the Public Resources Code line 2 is amended to read: line 3 25401.9. (a)  To the extent that funds are available, the line 4 commission, in consultation with the Department of Water line 5 Resources, Resources and in consideration of developments in line 6 landscape irrigation efficiency occurring on and after January 1, line 7 2010, shall adopt by regulation, after holding one or more public line 8 hearings, performance standards and labeling requirements for line 9 landscape irrigation equipment, including, but not limited to, line 10 irrigation controllers, moisture sensors, emission devices, and line 11 valves, for the purpose of reducing the wasteful, uneconomic, line 12 inefficient, or unnecessary consumption of energy or water. line 13 (b)  For the purposes of complying with subdivision (a), the line 14 commission shall do both of the following: line 15 (1)  Adopt performance standards and labeling requirements for line 16 landscape irrigation controllers and moisture sensors on or before line 17 January 1, 2010. 2018. line 18 (2)  Consider the Irrigation Association’s Smart Water line 19 Application Technology Program testing protocols when adopting line 20 performance standards for landscape irrigation equipment, line 21 including, but not limited to, irrigation controllers, moisture line 22 sensors, emission devices, and valves. line 23 (c)  On and after January 1, 2012, 2020, an irrigation controller line 24 or moisture sensor for landscape irrigation uses may not be sold line 25 or installed in the state unless the controller or sensor meets the line 26 performance standards and labeling requirements established line 27 pursuant to this section. O 99 — 2 —AB 1928 105 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1631 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:4/11/2016 City Council On agenda:Final action:4/19/2016 Title:Subject: Addition of the part-time staff classification of Park Ranger within the Recreation and Community Services Department Sponsors: Indexes: Code sections: Attachments:Staff Report A - Park Ranger Job Description B - Draft Resolution Action ByDate Action ResultVer. City Council4/19/20161 Subject:Additionofthepart-timestaffclassificationofParkRangerwithintheRecreationand Community Services Department AdoptResolutionNo.16-037authorizingtheCityManagertoaddanewpart-timestaff classificationofParkRangerwhichwouldoperateintheStevensCreekCorridorandbe overseen by the Recreation and Community Services Department CITY OF CUPERTINO Printed on 4/15/2016Page 1 of 1 powered by Legistar™106 RECREATION AND COMMUNITY SERVICES DEPARTMENT CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3110 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: April 19, 2016 Subject Addition of the part-time staff classification of Park Ranger within the Recreation and Community Services Department. Recommended Action Adopt draft resolution authorizing the City Manager to add a new part-time staff classification of Park Ranger, which would operate in the Stevens Creek Corridor and be overseen by the Recreation and Community Services Department. Description The City currently has a contract agreement with California Land Management (CLM) to provide park ranger services within the Stevens Creek Corridor. The agreement with CLM expires on June 30, 2016. It is our goal to transition the duties of Park Ranger from CLM to part- time city staff and have them begin work duties at the expiration of the current contract agreement. The addition of this classification will provide the Recreation and Community Services Department with direct oversight of staff recruitment, schedules, and responsibilities to ensure that customer service, compliance with park rules, and restoration efforts are being completed at the highest standard. Discussion We have seen a steady increase in community activity within the Stevens Creek Corridor with the completion of the Stevens Creek Trail, Phase 2 project in 2014, as well as the facility addition and upgrades at McClellan Ranch Preserve in 2015. We feel strongly that transitioning park ranger duties to city staff will give our department the best opportunity to provide park visitors with exemplary customer service and corridor information. We anticipate that Park Rangers would be on duty 365 days a year and will have the necessary training and skillset to positively interface with customers, as well as provide information on ongoing restoration efforts and park improvements. As part of their initial training, Park Rangers would be required to learn about the natural history of the park, habitat restoration techniques, customer service, as well as complete coursework to obtain their California Penal Code 832 Certificate. This certificate will provide 107 Park Rangers with the ability to enforce park regulations and issue legal citations when necessary. In addition to increased visitor interaction, maintaining public safety, and enforcement of regulations, Park Rangers will be tasked with habitat restoration and minor maintenance needs along the Stevens Creek trail. They will provide input and oversight in the areas of invasive plant removal, native plant propagation, litter removal, wildlife sightings, and trail monitoring/closures. Sustainability Impact Implementation of the recommended action will support the city’s sustainability goals. Fiscal Impact The approval of the Park Ranger classification would create an annual savings of $25,000. Current contract agreement for CLM: $100,000 Park Ranger staffing costs budgeted for 2016/17: $75,000 Estimated annual savings: $25,000 Classification Hourly Steps Park Ranger $22.00;$22.50;$23.00;$23.50;$24.00 ___________________________________ Prepared by: Dave Jahns, Recreation Coordinator Reviewed by: Thomas Walters, Recreation Manager Reviewed by: Carol Atwood, Director of Recreation and Community Services Approved for Submission by: David Brandt, City Manager Attachment: A-Park Ranger: Stevens Creek Corridor Job Description B-Draft Resolution 108 City of Cupertino Employment Opportunity Recreation and Community Services Department, 10185 N. Stelling Rd., Cupertino, CA (408) 777-3120 Human Resources, 10300 Torre Ave., Cupertino, CA (408) 777-3227 Park Ranger: Stevens Creek Corridor The City of Cupertino Recreation and Community Services Department has year-round openings in the Stevens Creek Corridor. POSITION: Park Ranger: Approximate hours per week: 20 to 29 hours SALARY RANGE: $20.00, $20.50, $21.00, $21.50, $22.00 DEFINITION: Under general supervision Park Rangers will monitor and patrol the Stevens Creek Corridor. They will be familiar with City Code, issuing citations when necessary. They will engage and educate Corridor visitors and volunteers on a variety of topics including corridor restoration efforts, natural history, wildlife sightings, leash laws, etc. They will work with the City Naturalist on habitat restoration and assist with all parking related issues. This is a part-time, temporary, non-benefited position limited to no more than 995 hours per fiscal year. JOB DESCRIPTION:  Communicates clearly and effectively with Corridor visitors, providing accurate information at all times.  Interpret, explain, and enforce City Code as it relates to the Corridor and issues citations when necessary.  Maintains files, databases, and records related to citations and violations.  Educates patrons and volunteers on natural history, habitat restoration, and wildlife.  Performs occasional trail maintenance such as removing downed tree limbs and cleaning graffiti.  Acts immediately and appropriately to secure safety of park patrons in the event of an emergency.  Assists with any issues related to traffic and parking.  Presents a professional appearance and attitude at all times.  Maintains a high level of customer service.  Performs other duties as required.  This is a year-round position. QUALIFICATIONS:  Possession of, or ability to obtain, a valid California Driver’s License by time of appointment.  Possession of, or ability to obtain, a valid California Penal Code 832 certificate within 6-months of hire date.  Must have at least 1 year of park ranger experience or experience in a related field. 2 years major course work in the field is preferred.  Must be a minimum of 18 years old.  Must be CPR and First-Aid Certified. (If not currently certified, CPR and First Aid certification and re- certification training will be offered to employees. Possible training dates will be discussed with employees.)  Must possess the ability to lift, carry, push, and pull materials, and objects weighing up to 50 pounds, or heavier weights with the use of proper equipment. 109  Must be responsible, alert, courteous, and punctual.  Must be able to communicate with peers, supervisors, and patrons.  Must be available to work weekends, evenings, and holidays.  Must be able to provide own transportation to and from work. HOW TO APPLY: Apply online via CalOpps. Hardcopy application forms will also be accepted, and must be typewritten or handwritten in black ink. Application forms may be picked up at and returned to the following offices: Recreation and Community Services Department., 10185 N. Stelling Rd., Cupertino, CA 95014 Cupertino City Hall, Human Resources, 10300 Torre Ave., Cupertino, CA 95014 SELECTION PROCEDURE: Applicants will be screened by: A) a review of their written application; B) an oral interview/assessment; C) state law requires that if your position will bring you into contact with minors (i.e., those under 18), you must complete a fingerprint criminal history records check; and D) successful applicants will need to show proof of a current T.B. test. The City of Cupertino is an equal opportunity employer and does not discriminate in employment on the basis of a person’s race, religion, color, sex (including gender and pregnancy), sexual orientation (including heterosexuality, homosexuality, and bisexuality), national origin, ancestry, citizenship status, uniformed service member status, marital status, pregnancy, age, medical condition, genetic characteristics, and physical or mental disability. Candidates with a disability, which may require special assistance in any phase of the application or testing process, should advise City of Cupertino Human Resources upon submittal of application. Documentation of the need for accommodation must accompany the request. AN EQUAL OPPORTUNITY EMPLOYER 110 \\10.176.2.252\granicus_nas\insite\files\cupe\attachments\7c755c57-e0ec-46be-8220-54c6d07a8ead.doc RESOLUTION NO. 16- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AUTHORIZING THE CITY MANAGER TO ADD A PART-TIME PARK RANGER CLASSIFICATION TO THE CITY’S CLASSIFICATION PLAN WHEREAS, the recruitment and hiring of top quality employees is essential to the efficient operation of the City of Cupertino; and WHEREAS, it has been determined to establish the following new classification: Classification Hourly Steps Park Ranger $22.00;$22.50;$23.00;$23.50;$24.00 BE IT FURTHER RESOLVED that the City Council of the City of Cupertino hereby approves the new position and updated salary schedule. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 19th day of April 2016, by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: ___ Grace Schmidt, City Clerk Barry Chang, Mayor, City of Cupertino 111 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1601 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:3/31/2016 City Council On agenda:Final action:4/19/2016 Title:Subject: Proposed Planning Commission Work Program additions and revisions for Fiscal Year 2016- 2017 Sponsors: Indexes: Code sections: Attachments:Staff Report Action ByDate Action ResultVer. City Council4/19/20161 Subject:ProposedPlanningCommissionWorkProgramadditionsandrevisionsforFiscal Year 2016-2017 AcceptproposedPlanningCommissionWorkProgramadditionsandrevisionsforFiscalYear 2016-2017 CITY OF CUPERTINO Printed on 4/15/2016Page 1 of 1 powered by Legistar™112 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: April 19, 2016 Subject Proposed Planning Commission Work Program additions and revisions for Fiscal Year 2016-2017. Recommendation Accept proposed Planning Commission Work Program additions and revisions for Fiscal Year 2016-2017. Description During its meeting on March 22, 2016, the Planning Commission discussed the FY 2016- 2017 Work Program. The Commission requested that the following items be considered by the Council for inclusion into the Work Program. Items and tasks that have been reviewed previously, completed or conducted on an ongoing basis have been placed in a separate list. Additional staff comments are provided in italics. 1. Under Community Development Item 2 - Heart of the City Specific Plan, the Commission would like to request the addition of language for "Only very large species of trees and defer specific species and size to the Department of Public Works”. This will contribute to the overall appearance of the Heart of the City. 2. Under Community Development Item 4 on amending the Parking Ordinance, the Commission requested exploring the inclusion of parking incentives when projects provide electric vehicles, charging stations, and alternative transportation methods. 3. Under Community Development Item 8 on teacher housing project, to set a goal of 100 senior or "teacher" housing units per year for five years and/or provide incentive and priority for Cupertino residents. 4. Eliminate the restriction on outdoor seating for restaurants. Currently, the ordinance allows only 20% of a restaurant’s seating to be outdoors. Items that have been reviewed, completed or conducted on an ongoing basis include the following: 5. The Commission requested a review of parking performance for projects that have received parking variances or exceptions. Evaluations of sites in Cupertino are 113 conducted routinely for projects that require parking studies. This provides the City with valuable data on how sites that were approved previously are performing. 6. Evaluate existing and proposed residential projects and impacts to schools. Staff would like to note that this is already being conducted for residential projects and that the analysis includes existing enrollments. 7. Evaluate the appropriateness of a Cupertino Transit Program to provide free shuttle service. Council has already added this item as part of the community amenity list when reviewing General Plan amendment authorizations. 8. Modify the R-1 Ordinance to address scale of projects and privacy protection measures. The Council amended the R-1 ordinance in 2011 to relax design standards and to allow larger homes to be constructed without design review. There are existing privacy protection measures such as trees, opaque windows and higher window sills. 9. Any future outreach efforts to consider providing a list of various City Commissions and Boards. A complete list of City Commissions is provided on the City’s website. Staff would additionally like to note that Commissions are subject to Brown Act requirements. 10. Staff notes that at its meeting on March 15, 2016, the Council discussed inclusion of the following item in the work program: Update the current Municipal Code to allow urban bee-keeping. Sustainability Impact None Fiscal Impact None _____________________________________ Prepared by: Benjamin Fu, Assistant Director of Community Development Reviewed by: Aarti Shrivastava, Assistant City Manager Approved for Submission by: David Brandt, City Manager 114 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1584 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:3/22/2016 City Council On agenda:Final action:4/19/2016 Title:Subject: Polling for Potential Transportation Sales Tax Measure Sponsors: Indexes: Code sections: Attachments:Staff Report Action ByDate Action ResultVer. City Council4/19/20161 Subject: Polling for Potential Transportation Sales Tax Measure Receiveinformationregardingthequestionspolledandtheresultsofpollingcompletedbythe Silicon Valley Leadership Group in March 2016 CITY OF CUPERTINO Printed on 4/15/2016Page 1 of 1 powered by Legistar™115 1 PUBLIC WORKS DEPARTMENT CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3354 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: April 19, 2016 Subject Polling for Potential Transportation Sales Tax Measure Recommended Action Receive information regarding the questions polled and the results of polling completed by the Silicon Valley Leadership Group in March 2016. Background At the City Council meeting of March 1, 2016, the Council considered directing the City Manager to negotiate and execute an agreement with a consultant to poll residents about subjects related to their support of a Transportation Sales Tax measure or a possible business tax. In March, the Silicon Valley Leadership Group (SVLG) conducted a poll, however the questions to be polled were not entirely known and so there was a concern that the questions may not capture the willingness of voters to support a sales tax to extend mass transit into the West Valley and North County. Ultimately, the Council did not support directing the City Manager to hire a polling consultant, but did direct staff to follow up in April with an agenda item providing the actual questions used in the SVLG poll. The SVLG has not provided the questions that they used in their polling. In various settings, they did verbally go over the general top-line results regarding the various broad categories such as BART, Caltrain, County Expressway improvements, Street Maintenance and Pothole Repair, and Bicycle and Pedestrian Improvements. The SVLG did also include a question regarding Transit Improvements to the West Valley/North County Corridor. While all results declined in support for the improvements relative to 116 2 results obtained in a fall, 2015 poll, most all categories still had support of approximately 64-66%, non-support of approximately 30%, and undecided at approximately 4-6%. The results for the question regarding the transit improvements to the West Valley/North County Corridor were 62% support, 34% non-support, and 4% undecided. Fiscal Impact None. Sustainability Impact Any future projects that enhance non-vehicular transportation modes or reduce congestion will have positive effects on greenhouse gas emissions. _____________________________________ Prepared by: Timm Borden, Director of Public Works Approved for Submission by: David Brandt, City Manager Attachments: None 117 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1592 Name: Status:Type:Public Hearings Agenda Ready File created:In control:3/28/2016 City Council On agenda:Final action:4/19/2016 Title:Subject: 2016-17 Community Development Block Grant (CDBG) Program Annual Action Plan and 2016-17 Grant Funding Allocations Sponsors: Indexes: Code sections: Attachments:Staff Report Attachment A - Draft Resolution No. 16- Annual Action Plan Attachment B - Draft Resolution No. 16- Grant Allocations Attachment C - CDBG Annual Action Plan Attachment D - Grant Application Summary Attachment E - Grant Application Descriptions Attachment F - HSG Grant Contract Attachment G - BMR AHF Grant Contract Attachment H - CDBG Grant Contract Attachment I - MidPen Pro Forma Action ByDate Action ResultVer. City Council4/19/20161 Subject:2016-17CommunityDevelopmentBlockGrant(CDBG)ProgramAnnualAction Plan and 2016-17 Grant Funding Allocations Conduct Public Hearing: and 1. Adopt Draft Resolution No. 16-038 approving the 2016-17 CDBG Annual Action Plan and; 2.AdoptDraftResolutionNo.16-039approvingthe2016-17CDBG,GeneralFundHuman ServiceGrants(HSG)ProgramandBelowMarket-Rate(BMR)AffordableHousingFund (AHF) funding allocations CITY OF CUPERTINO Printed on 4/15/2016Page 1 of 1 powered by Legistar™118 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: April 19, 2016 Subject 2016-17 Community Development Block Grant (CDBG) Program Annual Action Plan and 2016-17 Grant Funding Allocations. Recommended Action Conduct Public Hearing; and 1. Adopt Draft Resolution No. 16-___ approving the 2016-17 CDBG Annual Action Plan and; 2. Adopt Draft Resolution No. 16-___ approving the 2016-17 CDBG, General Fund Human Service Grants (HSG) Program and Below Market-Rate (BMR) Affordable Housing Fund (AHF) funding allocations. Description This is the second of two public hearings required by the United States Department of Housing and Urban Development (HUD) for CDBG. The first public hearing was conducted by the Housing Commission at a regular meeting held on March 10, 2016. Discussion HUD annually allocates grants such as CDBG, Home Investment Partnerships Program (HOME), Housing Opportunities for People with AIDS (HOPWA) and Emergency Shelter Grants (ESG) to local jurisdictions for community development activities. Cupertino is one of nine entitlement jurisdictions within Santa Clara County. Jurisdictions typically must have a population of 50,000 or more to qualify as an “entitlement jurisdiction” that receives grant funding directly from HUD. Entitlement grants are largely allocated on a formula basis, based on several objective measures of community needs, including the extent of poverty, populations, housing overcrowding, age of housing and population growth lag in relationship to other metropolitan areas. As a requirement to receive these entitlement grants, Title I of the National Affordable Housing Act mandates that jurisdictions prepare a five-year Consolidated Plan, Annual Action Plan and Consolidated Annual Performance and Evaluation Report (CAPER). The City prepared a 2015-20 Consolidated Plan that has been reviewed and approved by HUD. The City also prepares an Annual Action Plan and CAPER annually and is in compliance with HUD to-date regarding these required documents. 119 Page 2 of 10 2016-17 Community Development Block Grant (CDBG) Program April 19, 2016 Annual Action Plan and 2016-17 Grant Funding Allocations CDBG Annual Action Plan The CDBG Annual Action Plan is a one-year plan that describes the eligible activities that the City of Cupertino intends to undertake in fiscal year 2016-17 (July 1, 2016 – June 30, 2017) to address the needs and implement the strategies identified in the adopted 2015-20 Consolidated Plan. The CDBG Annual Action Plan further describes how the eligible activities will address priority housing, non-housing community development needs and affirmatively further fair housing choice. Per HUD regulations, the City is required to make the 2016-17 CDBG Annual Action Plan available for public comments for 30 days. As a result, the public comment period was from March 7, 2016 to April 8, 2016. There was no public comments received to-date. CDBG, HSG and BMR AHF Funding Allocations An annual Request for Proposal (RFP) was issued on December 18, 2015 inviting organizations throughout Santa Clara County and surrounding areas to apply for CDBG, HSG and BMR AHF funding for the upcoming fiscal year 2016-17. The RFP deadline ended on January 18, 2016. Following the RFP deadline, the Housing Commission held a public hearing on March 10, 2016 to finalize their initial rating and ranking of the 2016-17 CDBG, HSG and BMR AHF grant applications. The Housing Commission’s funding recommendations for fiscal year 2016-17 CDBG, HSG and BMR AHF grant applications are being forwarded to the City Council for final adoption. In December 2007, the City of Cupertino City Council approved a two-year grant funding cycle for CDBG public services, HSG and BMR AHF grants. Year one of a two- year funding cycle will begin in fiscal year 2016-17 and end in fiscal year 2017-18. Agencies who are awarded in fiscal year 2016-17 and who remain in good standing will receive a one-year contract amendment for fiscal year 2017-18. CDBG capital housing project applications will remain on a one-year funding cycle. Community Development Block Grant (CDBG) Program This is Cupertino’s fourteenth year as an entitlement jurisdiction receiving a CDBG grant directly from HUD. HUD regulations require that eligible housing activities selected for funding must benefit low-income households or eliminate a blighted area or address an urgent (emergency) community need and must also meet a national objective. In addition, only certain types of eligible activities qualify under the CDBG regulations. Examples of eligible activities are:  Public improvements  Public service activities  Affordable housing developments  Property acquisition for affordable housing 120 Page 3 of 10 2016-17 Community Development Block Grant (CDBG) Program April 19, 2016 Annual Action Plan and 2016-17 Grant Funding Allocations  Rehabilitation of affordable units The City of Cupertino was notified by HUD on February 16, 2016 that the estimated fiscal year 2016-17 entitlement amount will be $307,592. As a result, for fiscal year 2016- 17, the City of Cupertino estimates it will have a total of up to $394,592 in CDBG funds eligible to allocate. The estimated total of $394,592 in CDBG funds for fiscal year 2016-17 includes the 2016-17 entitlement amount of $307,592, plus $7,000 in program income (PI) generated from loan repayments, and $80,000 of available uncommitted funds from the prior fiscal year 2015-16. The table below provides a summary of how CDBG funds are proposed to be allocated for fiscal year 2016-17. Community Development Block Grant (CDBG) Program Entitlement Amount: $307,592 Program Income (PI): $7,000 Administration (20%) $62,918 Public Services (15%) $47,188 Capital Housing Projects (65%) $204,484 Uncommitted Funds From Prior Fiscal Year 2015-16 for Capital Housing Projects $80,000 Total $394,592 Administrative Funds CDBG administrative funds cannot exceed 20% of the estimated 2016-17 entitlement amount ($307,592) and PI ($7,000). Therefore, an estimated total of $62,918 is proposed to be allocated for administrate costs to cover salary and benefits for staff, who assist with the operation of the CDBG program. The table below outlines the amount of CDBG administrative funds proposed to be expended for 2016-17. Community Development Block Grant (CDBG) Program Administration Funds Administration $62,918 Total $62,918 Public Service Funds CDBG public service funds cannot exceed 15% of the 2016-17 entitlement amount ($307,592) and PI ($7,000). Therefore, an estimated amount of $47,188 is proposed to be allocated toward eligible public service activities. Eligible public service activities must benefit low-income households. Examples of eligible public service activities can include childcare, emergency services, fair housing services and senior services. 121 Page 4 of 10 2016-17 Community Development Block Grant (CDBG) Program April 19, 2016 Annual Action Plan and 2016-17 Grant Funding Allocations For 2016-17, the Housing Commission is recommending funding two eligible CDBG public service applications submitted by Live Oak Adult Day Services and West Valley Community Services (WVCS).  Live Oak Adult Day Services provides services for seniors such as recreation, mental stimulation, companionship and nutritious meals. Live Oak Adult Day Services has been funded by the City the last several years and has been operating their “Senior Adult Day Care” program successfully and has met their goals each year to-date. The Housing Commission is recommending funding Live Oak Adult Day Services the full amount they applied for of $15,098.  WVCS provides case management and wrap around services through their “Community Access to Resource and Education (CARE)” program to help at-risk and vulnerable households manage crisis. WVCS has been funded by the City the last several years and has been operating the CARE program successfully and has met or exceeded their goals each year to-date. WVCS expressed to the Housing Commission that due to the demand of their services their funding needs have drastically increased year-to-year. Low-income households who qualify for the CARE program have access to WVCS’ food pantry. The food pantry alone serves several hundred households per month. As a result of the increased demand for the CARE program the Housing Commission is recommending a greater funding allocation than what WVCS originally applied for. WVCS originally applied for $25,000; however, the Housing Commission is recommending funding the CARE program $25,000 plus the remaining balance of CDBG public services funds in the amount of $7,090 for a total of $32,090. The table below provides a summary of how CDBG public service funds are proposed to be allocated for fiscal year 2016-17. Community Development Block Grant (CDBG) Program Public Service Funds Live Oak Adult Day Services – Senior Adult Day Care $15,098 West Valley Community Services (WVCS) – CARE Program $32,090 Total $47,188 The two year CDBG public service grant funding cycle covers fiscal years 2016-17 and 2017-18. If the City Council changes CDBG public service funding amounts for fiscal year 2016-17 than each agency’s funding would also be changed proportionately. Capital Housing Project Funds CDBG capital housing project funds will not exceed 65% of the 2016-17 entitlement amount ($307,592) and PI ($7,000). Therefore, an estimated amount of $204,484 is proposed to be allocated toward eligible capital housing project activities. Also for fiscal 122 Page 5 of 10 2016-17 Community Development Block Grant (CDBG) Program April 19, 2016 Annual Action Plan and 2016-17 Grant Funding Allocations year 2016-17, an estimated $80,000 of uncommitted funds from the prior fiscal year 2015-16 is available to be allocated for eligible CDBG capital housing projects, thereby increasing the total amount available to be allocated for eligible CDBG capital housing projects to $284,484. Eligible CDBG capital housing project activities may include purchase of land for affordable housing, rehabilitation of qualifying units, construction of affordable units and public improvements. For 2016-17, the Housing Commission is recommending funding two eligible CDBG capital housing project applications submitted by Rebuilding Together Silicon Valley (RTSV) and the City of Cupertino Public Works Department.  RTSV provides home safety repairs, mobility and accessibility improvements with the primary consideration being the correction of safety hazards. RTSV has been funded by the City the last several years and has been operating their “Housing Repair and Rehabilitation Project” successfully and has met their annual project goals each year to-date. Although, the last two fiscal years RTSV has experienced challenges in being able to expend all of their allocated CDBG project funds they were still able to meet their annual project goals. The Housing Commission is recommending funding RTSV the full amount they applied for of $60,300.  The City of Cupertino Public Works Department currently operates a “Curb Ramp Installation” project that aims to bridge gaps in accessibility by constructing and upgrading curb ramps. The objective of the “Curb Ramp Installation” project is to allow for a continuous path of travel through the public right of way specifically providing accessibility to the general public including the disabled. The City Public Works Department has not applied in the past for CDBG project funds. There is a demand in the City for additional curb ramp installations to be constructed; therefore, the City Public Works Department is proposing to expand their project funding sources and applied for CDBG funds. Other than RTSV and the City Public Works Department, the City did not receive any other qualified or eligible CDBG project applications for 2016-17. It’s important to note that HUD has CDBG expenditure requirements in which the City must expend a majority of their entitlement funding annually in order to avoid a penalty. Penalties from HUD can include not awarding a future CDBG entitlement grant allocation due to the City having too much uncommitted funding on hand. As a result of CDBG expenditure requirements the Housing Commission is recommending to fund the City Public Works Department for their “Curb Ramp Installation” project for 2016-17. The City Public Works Department has the experience and capacity to meet HUD regulations such as bidding, prevailing wage and environmental requirements. The City Public Works Department originally applied for $200,000; however, the Housing Commission is recommending funding the “Curb Ramp Installation” project $200,000 plus the remaining balance of CDBG capital project funds in the amount of $24,184 for a total of $224,184. Since CDBG capital project applications are on a one-year funding cycle, the City Public Works Department application is only proposed to be a one-time funding source. The Housing Commission expressed at their public hearing meeting on 123 Page 6 of 10 2016-17 Community Development Block Grant (CDBG) Program April 19, 2016 Annual Action Plan and 2016-17 Grant Funding Allocations March, 10, 2016 that they would have preferred to fund another affordable housing- related CDBG project but as stated above no other qualified or eligible applications were received in 2016-17 under this category. The table below provides a summary of how CDBG capital housing project funds are proposed to be allocated for fiscal year 2016-17. Community Development Block Grant (CDBG) Program Capital Housing Project Funds Rebuilding Together Silicon Valley – Housing Repair and Rehabilitation Project $60,300 City of Cupertino Public Works Department – City-wide Curb Installation Project $224,184 Total $284,484 The one-year CDBG capital housing project grant funding cycle covers fiscal year 2016- 17. If the City Council changes CDBG capital housing project funding amounts for fiscal year 2016-17 than each agency’s funding would also be changed proportionately. Aside from CDBG funds, HSG and BMR AHF grants also received funding recommendations from the Housing Commission for fiscal year 2016-17. General Fund Human Service Grants (HSG) Program The City Council allocates approximately $40,000 annually from the General Fund to human service agencies. Formal agreements and monitoring are required for this program, but the requirements are less stringent than for federal funding. The Housing Commission reviews HSG applications at the same time as CDBG and BMR AHF applications and makes funding recommendations to the City Council. For 2016-17, the Housing Commission is recommending funding three eligible HSG applications submitted by Catholic Charities of Santa Clara County, Senior Adults Legal Assistance and Maitri.  Catholic Charities of Santa Clara County provides advocacy along with investigating and resolving complaints for five Cupertino long-term care facilities through their “Long-Term Care Ombudsman” program.  Senior Adults Legal Assistance provides free legal services in the area of consumer complaints, housing, elder abuse and simple wills to low-income seniors through their “Legal Assistance to Cupertino Elders” program.  Maitri provides transitional housing and related support services to victims of domestic violence who are at-risk of becoming homeless. All three agencies above have been funded by the City the last several years and have been operating their programs successfully and have met their goals each year to-date. 124 Page 7 of 10 2016-17 Community Development Block Grant (CDBG) Program April 19, 2016 Annual Action Plan and 2016-17 Grant Funding Allocations The Housing Commission is recommending funding Catholic Charities of Santa Clara County $6,500 and Senior Adults Legal Assistance $10,100 which are the full amounts they applied for. Maitri expressed to the Housing Commission that due to the demand of their services their funding needs have drastically increased year-to-year. Maitri’s transitional housing services to those at-risk of becoming homeless due to being victims of domestic violence are one of a kind in the City. The Housing Commission took into account past performance from Maitri who has continually exceeded their annual program goals due to the demand for their services. As a result of the increased demand for Maitri’s services the Housing Commission is recommending a greater funding allocation than what Maitri originally applied for. Maitri originally applied for $15,000; however, the Housing Commission is recommending funding Maitri’s program $15,000 plus the remaining balance of HSG funds in the amount of $8,400 for a total of $23,400. The table below provides a summary of how HSG funds are proposed to be allocated for fiscal year 2016-17. General Fund Human Service Grants (HSG) Program Funds Catholic Charities of Santa Clara County – Long-Term Ombudsman Program $6,500 Senior Adults Legal Assistance – Legal Assistance to Elders $10,100 Maitri – MTH Direct Client Services $23,400 Total $40,000 The two-year HSG grant funding cycle covers fiscal years 2016-17 and 2017-18. If the City Council changes HSG funding amounts for fiscal year 2016-17 than each agency’s funding would also be changed proportionately. Below Market-Rate (BMR) Affordable Housing Fund (AHF) The Below Market-Rate (BMR) Affordable Housing Fund (AHF) receives its revenue from the payment of housing mitigation fees from residential and non-residential (office, hotel, retail, research and development (R&D) and industrial) development. The Housing Commission reviews BMR AHF applications at the same time as CDBG and HSG applications and makes funding recommendations to the City Council. For 2016-17, the Housing Commission is recommending funding five eligible BMR AHF applications submitted by WVCS, Project Sentinel, Eden Council for Hope and Opportunity (ECHO) and MidPen Housing Corporation (MidPen).  WVCS submitted an application for their “Affordable Placement Program” which includes the administration of the City’s BMR program. The “Affordable Placement 125 Page 8 of 10 2016-17 Community Development Block Grant (CDBG) Program April 19, 2016 Annual Action Plan and 2016-17 Grant Funding Allocations Program” includes monitoring, screening, waiting list management, annual rental income recertification and placement services for BMR ownership and rental program units. Project Sentinel submitted an application for their “Landlord/Tenant Rental Mediation” services. Project Sentinel provides dispute resolution services to tenants and landlords to help resolve complaints regarding rental deposits, repairs, rent increases and nonpayment of rent. ECHO submitted an application for their “Fair Housing Services” program. ECHO provides fair housing counseling services, presentations and investigations of allegations of discrimination. All three agencies above have been funded by the City the last several years and have been operating their programs successfully and have met or exceeded their annual program goals each year to-date. As a result, the Housing Commission is recommending funding WVCS $122,400, Project Sentinel $35,000 and ECHO $10,000 which are the full amounts they applied for.  WVCS also submitted a second application under this funding category to substantially renovate two duplexes which are utilized for affordable transitional housing units located at 10311 and 10332 Greenwood Court. WVCS both owns and property manages the two duplexes. The proposed renovation work for the two duplexes will include replacement of kitchen cabinets, countertops, flooring, light fixtures, doors, windows and interior painting. The Housing Commission is recommending funding WVCS $160,000, which is the full amount applied for.  MidPen also submitted an application for the acquisition of a vacant parcel located at: 19160 Stevens Creek Boulevard. 19160 Stevens Creek Boulevard is currently a Housing Element site. MidPen seeks to acquire the site in order to develop a one- hundred percent affordable multi-family residential senior housing rental project. The proposed project would consist of 30 units, one of which would be for an on-site manager. MidPen would propose to provide both on-site property management and resident services. The proposed project will serve both extremely low and very low- income seniors whose total gross household incomes are between 30% and 50% of Santa Clara County Area Median Income (AMI), per household size. MidPen originally submitted a Letter of Intent (LOI) to the seller to purchase the property at $3,000,000. MidPen was recently notified by the seller that they have countered with an asking price of $3,500,000. As a result, MidPen notified the City that they intend to resubmit a $3,500,000 counter-offer. To-date MidPen has not heard back from the seller on whether or not they accepted the $3,500,000 counter- offer. MidPen’s goal is to enter into a fully executed purchase contract with the seller in order to obtain site control. The site is approximately .55 acres and is currently zoned P(CG Res) at 25 du/ac. MidPen ran an initial analysis of the site and confirmed that the current zoning of the site would not be dense enough even with a 35% density bonus to make the site financially feasible to secure 9% Low-Income Housing Tax Credit (LIHTC) funding. As a result, MidPen would intend to submit a General Plan Amendment (GPA) application requesting authorization to have the property rezoned to 40 units/acre. 126 Page 9 of 10 2016-17 Community Development Block Grant (CDBG) Program April 19, 2016 Annual Action Plan and 2016-17 Grant Funding Allocations At 40 units/acre plus a 35% density bonus, MidPen estimates it would be able to construct a total of 30 units on-site. Although still a small project at 30 units, MidPen is confident that this would make the proposed project competitive enough to secure 9% LIHTC funding. LIHTC’s would provide the majority of the funding for the proposed project . However, other funding sources would include private construction financing, Housing Trust Silicon Valley and City of Cupertino. MidPen applied through the City’s RFP for “gap financing” for this proposed project in the amount of $3,500,000. The $3,500,000 would be used for acquisition costs associated with acquiring the site. MidPen’s $3,500,000 funding request represents approximately 26% of the total development project costs which is a reasonable percentage request for “gap financing” by industry standards. A financial pro-forma which itemizes the proposed development costs and funding sources is provided for your convenience as Attachment I. At a minimum, prior to approval or disbursement of any City funds for “gap financing”, funding would be contingent upon MidPen submitting sufficient documentation of site control and getting authorization for the property to be rezoned along with any other conditions the City Council sets forth. MidPen’s funding request will only apply to fiscal year 2016-17 since time is of the essence and MidPen will need to perform and meet certain deadlines such as obtaining site control and rezoning of the property. The City’s “gap financing “ would not propose to be a grant but rather a 30 year deferred loan at 3% simple interest which is the industry standard. The Housing Commission is recommending funding MidPen the full amount applied for in the amount of $3,500,000. The table below provides a summary of how BMR AHF funds are proposed to be allocated for fiscal year 2016- 17. Below Market-Rate (BMR) Affordable Housing Fund (AHF) Program Funds West Valley Community Services – Affordable Placement Program $122, 400 Project Sentinel – Landlord/Tenant Rental Mediation $35,000 Eden Council for Hope and Opportunity (ECHO) – Fair Housing Services $10,000 West Valley Community Services – 10311 & 10321 Greenwood Court Renovation Project $160,000 MidPen Housing Corporation – 19160 Stevens Creek Blvd. Senior Housing Development $3,500,000 Total $3,827,400 127 Page 10 of 10 2016-17 Community Development Block Grant (CDBG) Program April 19, 2016 Annual Action Plan and 2016-17 Grant Funding Allocations The two year BMR AHF grant funding cycle covers fiscal years 2016-17 and 2017-18. If the City Council changes BMR AHF funding amounts for fiscal year 2016-17 than each agency’s funding would also be changed proportionately. Attachment D provides a grant application summary of the Housing Commission’s 2016-17 CDBG, HSG and BMR AHF funding recommendations to the City Council for final adoption. Attachment E provides a grant application description for each 2016-17 CDBG, HSG and BMR AHF application. After the second public hearing the 2016-17 CDBG, HSG and BMR AHF grant contract agreements will be fully executed. In addition the 2016-17 CDBG Annual Action Plan will be submitted to HUD for final approval. The due date to HUD for the 2016-17 CDBG Annual Action Plan is May 15, 2016. Sustainability Impact None. Fiscal Impact Sufficient funding will be available and budgeted for all 2016-17 CDBG, HSG and BMR AHF grant applications. CDBG programs and projects are funded by HUD grant funds. BMR AHF programs and projects are funded by housing mitigation fees collected from residential and non-residential development projects. HSG programs are funded through the General Fund. Prepared by: Christopher “C.J.” Valenzuela, Senior Housing Planner Reviewed by: Aarti Shrivastava, Assistant City Manager Approved for Submission by: David Brandt, City Manager Attachments: A - Draft Resolution No. 16- B- Draft Resolution No. 16- C - CDBG Annual Action Plan D- Grant Application Summary E - Grant Application Descriptions F- HSG Grant Contract G- BMR AHF Grant Contract H - CDBG Grant Contract I - MidPen Pro-Forma 128 RESOLUTION NO. 16- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ADOPTING THE 2016-17 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM ANNUAL ACTION PLAN WHEREAS, the Housing and Community Development Act of 1974 provides that funds be made available for the Community Development Block Grant (CDBG) program; and WHEREAS, the City of Cupertino is required to submit a 2016-17 CDBG Annual Action Plan to the United States Department of Housing and Urban Development (HUD) for review and approval prior to being allowed to expend CDBG funds for fiscal year 2016-17; and NOW, THEREFORE BE IT RESOLVED that the City of Cupertino makes the certifications required by 24 CFR Sections 91.225 and 570.303 as contained in the CDBG Annual Action Plan for fiscal year 2016-17; and BE IT FURTHER RESOLVED that the City Council of the City of Cupertino hereby approves the 2016-17 CDBG Annual Action Plan; and BE IT FURTHER RESOLVED that the City Manager is hereby authorized to submit the 2016-17 CDBG Annual Action Plan approved by the City Council of the City of Cupertino to HUD. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 19th day of April, 2016 by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: Grace Schmidt Barry Chang City Clerk Mayor, City of Cupertino 129 RESOLUTION NO. 16- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ADOPTING THE 2016-17 COMMUNTIY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM, GENERAL FUND HUMAN SERVICE GRANTS (HSG) PROGRAM AND BELOW MARKET-RATE (BMR) AFFORDABLE HOUSING FUND (AHF) FUNDING ALLOCATIONS WHEREAS, the Housing and Community Development Act of 1974 provides that funds be made available for the Community Development Block Grant (CDBG) program; and WHEREAS, the City of Cupertino wishes to apply for funds as an Entitlement Jurisdiction under said Act; and WHEREAS, the City of Cupertino estimates receiving a $307,592 CDBG entitlement grant from the United States Department of Housing and Urban Development (HUD) to be allocated for fiscal year 2016-17; and WHEREAS, the City of Cupertino estimates allocating $7,000 in CDBG program income for fiscal year 2016-17; and WHEREAS, The City of Cupertino estimates allocating up to $80,000 of available uncommitted CDBG funds from prior fiscal year 2015-16 for fiscal year 2016-17; and BE IT FURTHER RESOLVED that the City Council of the City of Cupertino hereby approves the Housing Commission’s fiscal year 2016-17 funding recommendation allocations to the organizations and dollar amounts as detailed in Attachment D to the City Council staff report dated April 19, 2016 entitled “2016-17 Community Development Block Grant (CDBG) Program Annual Action Plan and 2016-17 Grant Funding Allocations”; and BE IT FURTHER RESOLVED that the 2016-17 CDBG, HSG and BMR AHF grant funding allocations will be decreased/increased based on final budget allocations by HUD and City Council; and BE IT FURTHER RESOLVED that the City Council of the City of Cupertino hereby authorizes the City Manager to negotiate and execute the grant agreements in substantially the forms as Attachments F, G and H to the City Council staff report dated April 19, 2016 entitled “2016-17 Community Development Block Grant (CDBG) Program Annual Action Plan and 2016-17 Grant Funding Allocations”. 130 Resolution No. 2016- Page 2 PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 19th day of April, 2016 by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: Grace Schmidt Barry Chang City Clerk Mayor, City of Cupertino 131 1 City of Cupertino 2016 Annual Action Plan Prepared by the Department of Community Development 10300 Torre Avenue Cupertino, CA 95014 Approved by City Council April 19, 2016 Resolution No. 16- 132 2 TABLE OF CONTENTS EXECUTIVE SUMMARY……………………………………………………………………… .4 FISCAL YEAR 2015-16 EVALUATION OF PAST PERFORMANCE…………………… …..4 FISCAL YEAR 2016-17 RESOURCES AND ACTIVITIES…………………………………….4 FISCAL YEAR 2016-17 CDBG PROPOSED FUNDING ALLOCATIONS……………… ……5 INTRODUCTION……………….…………………………………………………..………… …6 FEDERAL RESOURCES………….………………………………...…………………….… ….6 OTHER RESOURCES………………………………………………………………………… …6 Below Market-Rate (BMF) Affordable Housing Fund (AHF)…………………………………6 General Fund Human Service Grants (HSG) Program…...……………………...……………..7 West Valley Community Services (WVCS)……………………………………………………7 Housing Trust Silicon Valley (HTSV) ....................................................................................... 7 HOME Investment Partnerships Program (HOME).......……………………………………….8 Mortgage Credit Certificate (MCC) Program ............................................................................. 8 Second Unit Program .................................................................................................................. 8 Santa Clara County Affordable Housing Fund (SCCAHF) ........................................................ 8 Section 8 Housing Choice Voucher Program ............................................................................. 8 Density Bonus Ordinance ........................................................................................................... 8 CITIZEN PARTICIPATION .......................................................................................................... 8 CONSULTATION WITH OTHER JURISDICTIONS.................................................................. 9 GEOGRAPHIC DISTRIBUTION .................................................................................................. 9 ANTI-POVERTY STRATEGY ..................................................................................................... 9 HOMELESS AND SPECIAL NEEDS ........................................................................................... 9 LEAD-BASED PAINT ................................................................................................................. 10 PUBLIC HOUSING ..................................................................................................................... 10 LEVERAGING OF FUNDS......................................................................................................... 10 FAIR HOUSING .......................................................................................................................... 10 PROGRAM MONITORING ........................................................................................................ 11 URGENT OR COMMUNITY NEED .......................................................................................... 12 AMENDMENTS TO PLAN......................................................................................................... 12 SUMMARY OF 2016-17 CDBG, HSG AND BMR AHF APPLICATIONS ............................. 12 CDBG Public Service Applications…………………………………………………………..13 CDBG Capital Housing Project Applications………………………………………………...13 HSG Applications………………………………………………………………...……….…..14 BMR AHF Applications………………………………………………………………………15 133 3 2015-20 CONSOLIDATED PLAN GOALS…………………………………………………...18 2015-20 CONSOLIDATED PLAN FIVE YEAR GOALS SUMMARY……………………19 2015-20 CONSOLIDATED PLAN ANNUAL GOALS SUMMARY……………………..20 AREAS OF MINORITY AND LMI CONCENTRATION MAP………………………… .21 HUD APPLICATION CERTIFICATIONS……………..…………………………………...22 APPLICATION FOR FEDERAL ASSISTANCE SF-424…………………………………...30 CITY COUNCIL RESOLUTION……………………………………………………………..33 PROOF OF PUBLICATION…………………………………………………………………..34 134 4 Executive Summary The Community Development Block Grant (CDBG) Annual Action Plan (hereafter “Action Plan”) is an annual plan covering fiscal year 2016-17 (July 1, 2016 – June 30, 2017), which the City of Cupertino, as lead agency, oversees pursuant to the goals outlined in the 2015-20 Consolidated Plan. The Action Plan details the activities Cupertino will undertake to address the housing and community development needs and local objectives using funds received during the 2016 program year (July 1, 2016 – June 30, 2017) from CDBG entitlement funds, anticipated program income (PI) and available uncommitted funds from the prior program year. The Action Plan includes United States Department of Housing and Urban Development (HUD) developed forms plus a supplemental narrative. Fiscal Year 2015-16 Evaluation of Past Performance Cupertino was successful in addressing the goals and objectives cited in the fiscal year 2015-16 (July 1, 2015 – June 30, 2016) Action Plan. Most of the CDBG funds were used to carry out activities that benefited low and moderate-income persons. Only CDBG administration funds did not directly serve low and moderate-income persons. Eligible funded public service activities included fair housing, food, clothing, senior services and emergency housing services. These activities continue to make a positive impact on identified needs in the community and are providing services that might otherwise have gone unmet. Eligible funded capital housing projects included a single family residence minor repair program which served low-income homeowners city-wide by addressing accessibility and health and safety measures and a multi- family residential rehabilitation project. As can be expected, community needs continue to exceed the available resources. Fiscal Year 2016-17 Resources and Activities For fiscal year 2016-17 (July 1, 2016 – June 30, 2017), the City of Cupertino estimates it will have a total of up to $394,592 in CDBG funds eligible to allocate. The City of Cupertino estimates that it will receive $307,592 in entitlement funds for fiscal year 2016-17. The City of Cupertino also estimates that it will have $7,000 in program income (PI), plus an estimated $80,000 in available uncommitted funds from prior fiscal year 2015-16. The estimated total of $394,592 in CDBG funds for fiscal year 2016-17 is comprised of the estimated 2016-17 entitlement amount of $307,592, plus $7,000 PI, plus $80,000 of available uncommitted funds from the prior fiscal year 2015-16. CDBG administrative funds will not exceed the 20% cap of the estimated 2016-17 entitlement amount ($307,592) and PI ($7,000), thus an estimated total of $62,918 is estimated to be allocated for administrate costs to cover salary and benefits of staff who assist with the operation of the CDBG program. CDBG public service funds will not exceed the 15% cap of the 2016-17 entitlement amount ($307,592) and PI ($7,000), thus an estimated $47,188 is estimated to be allocated toward eligible public service activities. The remaining 65% of the 2016-17 CDBG entitlement grant funds ($307,592) and PI ($7,000) or $204,484 is proposed to be allocated toward eligible CDBG capital housing projects. In addition for fiscal year 2016-17 an estimated $80,000 of available uncommitted funds from the prior fiscal year 2015-16 is estimated to be allocated for eligible CDBG capital housing projects. For fiscal year 2016-17 up to $284,484 is estimated to be utilized for CDBG capital housing projects. If the federal budget is reduced or increased for fiscal year 2016-17, CDBG grant applicant amounts will also be reduced or increased proportionately. The table below is a summary of how the CDBG funds are proposed to be allocated for fiscal year 2016-17. 135 5 Fiscal Year 2016-17 CDBG Proposed Funding Allocations CDBG Projected Use CDBG Dollar Amount Entitlement Amount: $307,592 Program Income (PI): $7,000 Administration (20%) $62,918 Public Services (15%) $47,188 Capital Housing Projects (65%) $204,484 Uncommitted Funds From Prior Fiscal Year 2015-16 for Capital Housing Projects $80,000 Total $394,592 For fiscal year 2016-17 the City of Cupertino anticipates providing CDBG funding for two eligible public service activities and two eligible capital housing projects. For fiscal year 2016-17 the portion of CDBG funds that is proposed to be allocated toward two eligible public service activities is estimated to provide up to 121 unduplicated households with food, clothing, senior services and emergency services. The portion of CDBG funds that is proposed to be allocated toward two eligible capital housing projects is estimated to serve up to 42 unduplicated households. CDBG funds are proposed to serve up to a total of 163 unduplicated households for fiscal year 2016-17. 136 6 INTRODUCTION The Action Plan is a one-year plan which describes the eligible programs, projects and activities to be undertaken with funds expected during fiscal year 2016-17 (July 1, 2016 – June 30, 2017) and their relationship to the priority housing, homeless and community development needs outlined in the 2015-20 Consolidated Plan. FEDERAL RESOURCES The City of Cupertino’s Action Plan for fiscal year 2016-17 is a comprehensive approach to addressing the immediate community needs of households who are low-income. The Action Plan is based on an estimated CDBG 2016-17 entitlement amount of $307,592 that the City anticipates will be received from HUD plus an estimated amount of $7,000 in PI, plus an estimated $80,000 in available uncommitted funds from the prior fiscal year 2015-16. A list of all applications received per funding source for fiscal year 2016-17 along with the agencies proposed to receive funding is included in this document. A list of program and/or project descriptions along with proposed annual goals for each of the agencies is also included in this document. PI is derived from outstanding CDBG rehabilitation program loan repayments and is estimated to total $7,000 and is proposed to be allocated for fiscal year 2016-17. A portion of that PI will be allocated to support administration and eligible public service activities. It is estimated that the City of Cupertino will allocate $47,188 toward eligible public service activities for 2016-17. Consistent with CDBG regulations, this amount represents no more than 15% of the combined total of the City’s entitlement amount and PI. In 1999 HUD informed the Santa Clara County that the San Jose Metropolitan Statistical Area is one of the high-income areas where the income limits were increased to the actual 80% of median income, adjusted for household size. The City of Cupertino will continue to use the actual 80% of median income limits for all of its CDBG programs in the 2016 Program Year. Individual activities may use a lower income eligibility criterion. OTHER RESOURCES Below Market-Rate (BMR) Affordable Housing Fund (AHF) The BMR AHF receives its revenue from the payment of housing mitigation fees from non- residential (office, commercial, retail, research and development (R&D), hotel and industrial) and residential development. The non-residential housing mitigation fee jobs/housing nexus study acknowledges housing needs created by the development of office, commercial, retail, hotel, R&D and industrial development. A fee is applied to new square footage of non-residential development in the City. The fees collected are deposited in the City's BMR AHF and are to be used for the provision of affordable housing. The City's residential housing mitigation fee applies to all new residential development greater than one unit. Residential developers are required to designate at least 15% of the units in an ownership development as affordable and are required to pay an impact fee for rental developments. These designated units are identified as the BMR units. For ownership 137 7 developments of six or fewer units or in the case of all rental developments, the developer may pay a fee in-lieu of building the affordable units. All affordable units developed under the BMR program must remain affordable for 99 years from the date of first occupancy and, if for sale units are resold during that period, a new 99 year time period is established. The City recently had a residential nexus study analysis and non-residential jobs/housing nexus study completed in 2015. As a result the City Council adopted updated housing mitigation fees which went into effect in July 2015 for both residential and non-residential development. With newly updated fees, the City anticipates increased revenue growth for its BMR AHF. The City administers the BMR AHF which generates its revenue from the collection of residential and non-residential housing mitigation fees. Potential uses of BMR AHF funds include, but are not limited to the following: 1. BMR Program Administration 2. Land Acquisition 3. New Construction 4. Acquisition and/or rehabilitation of building for permanent affordability 5. Preserving “at-risk” BMR units 6. Substantial Rehabilitation 7. Rental Operating Subsidies 8. Down Payment Assistance 9. Direct Gap Financing 10. Fair Housing A portion of the BMR AHF funds will be targeted to benefit the following groups, to the extent that these target populations are found, to be consistent with the needs identified in the nexus study: 1. Extremely low-income households and 2. Persons with specials needs (such as the elderly, victims of domestic violence, and the disabled, including persons with development disabilities). General Fund Human Service Grants (HSG) Program Annually the City Council allocates approximately $40,000 from the General Fund to public and human service agencies within the City of Cupertino. West Valley Community Services (WVCS) WVCS is a non-profit organization that assists with the administration of the City’s BMR ownership and rental programs. WVCS also administers additional affordable housing programs in-house which include providing support services to homeless individuals and managing a transitional housing facility. Further, WVCS acts as the administrative agent on behalf of the City of Cupertino in managing and monitoring the BMR program. Housing Trust Silicon Valley (HTSV) The HTSV is a public/private venture, dedicated to increasing affordable housing in Santa Clara County. The HTSV makes available funds for developers to borrow for the construction of the 138 8 affordable units. Cupertino originally contributed $250,000 to the fund and accessed the fund to assist in the development of Vista Village, a 24-unit affordable apartment complex constructed by BRIDGE Housing and Cupertino Community Services. Subsequently, the City contributed $25,000 in 2008, 2009 and 2010 and an additional $1,000,000 in 2011. HOME Investment Partnerships Program (HOME) The City joined the Santa Clara County HOME Consortium in June 2014. Developers who are interested in developing affordable housing in the City of Cupertino can apply for HOME funds through a competitive process for their proposed projects through the Santa Clara County HOME Consortium. Mortgage Credit Certificate (MCC) Program The MCC program provides assistance to first-time homebuyers by allowing an eligible purchaser to take 20% of their annual mortgage interest payment as a tax credit against federal income taxes. Santa Clara County administers the MCC Program on behalf of the jurisdictions in the County, including Cupertino. The program does establish maximum sales price limits on units assisted in this program and, due to the high housing costs in Cupertino, there have been few households assisted in Cupertino in recent years. Second Unit Program The City's Second Unit Ordinance allows an additional unit to be built on any single-family residential parcel. The objective of this Ordinance is to encourage additional units on already developed parcels, such as parcels with single-family dwellings. Santa Clara County Affordable Housing Fund (SCCAHF) In July 2002, the Santa Clara County Board of Supervisors created an Office of Affordable Housing and established a housing trust fund in the amount of $18.6 million to be used for affordable housing developments. The primary goal of the fund is to leverage funding with other sources and create affordable housing in Santa Clara County. Section 8 Housing Choice Voucher Program The Housing Authority of the County of Santa Clara (HACSC) provides rental subsidies and develops affordable housing for low-income families, seniors and persons with disabilities living within Santa Clara County. Density Bonus Ordinance The City's Density Bonus Ordinance allows up to a 35% increase in density for developments greater than 5 units that provide a proportion of units for very low or low-income households or housing for senior citizens. In addition to the density bonus, certain incentives and/or concessions may also be eligible for the developer to apply for. CITIZEN PARTICIPATION The Housing Division of the Community Development Department is the lead agency for overseeing the development of the Consolidated Plan and Action Plan. 139 9 Per the City’s adopted Citizen Participation Plan the City is to allow a 30 day public review comment period for the Action Plan. The City has published notifications of upcoming public hearings and the 30 day public review comment period in the local Cupertino Courier newspaper of general circulation. The City held two advertised public hearings on March 10, 2016 and April 19, 2016. The Action Plan 30 day public review period occurred from March 7, 2016 through April 8, 2016. The City has not received any public comments to-date. CONSULTATION WITH OTHER JURISDICTIONS As standard practice, CDBG entitlement jurisdictions from throughout Santa Clara County hold quarterly meetings to discuss issues of common interest. Meeting agendas cover such topics as federal, state and local program and project requirements, policy updates, legal updates, HUD program administration requirements, and other topics of mutual concern. A local HUD field representative is also invited to attend or join via conference call for these quarterly meetings. These meetings provide an opportunity for the City to consult with other jurisdictions on its proposed use of federal funds for the 2016 Program Year. GEOGRAPHIC DISTRIBUTION A map is attached which outlines the City’s minority and LMI concentration areas. Most of the City’s CDBG public service and capital housing project funded activities benefit LMI household’s city-wide. ANTI-POVERTY STRATEGY In a continuing effort to reduce poverty, the city of Cupertino will make it a priority to fund agencies that provide direct assistance to the homeless and those in danger of becoming homeless and make a commitment to improve the communication and service delivery capabilities of agencies and organizations that provide programs to assist the homeless. Depending on funding availability, Cupertino will continue to provide assistance to public agencies and nonprofit organizations providing neighborhood housing services, supportive services to the homeless, older adults with physical or mental impairment, the mentally ill, victims of domestic violence, and households with abused children among others. Coordinate with public agencies providing job training, life skills training, lead poisoning prevention and remediation and other education programs are listed in the 2015-20 Consolidated Plan strategies. HOMELESS AND SPECIAL NEEDS In previous years, the City of Cupertino appropriated $20,000 in CDBG funds for the Sobrato Family Living Center Project and contributed to the Home Safe-Santa Clara providing transitional housing for survivors of domestic violence who are considered at-risk for homelessness. Most recently, in a 2008 mid-year reallocation, the City contributed $800,000 to Maitri, a non-profit agency providing transitional housing to victims of domestic violence, for the purchase of a four-plex in Cupertino. 140 10 In addition to these capital project subsidies, the City has recently supported the reopening of the Rotating Shelter Program. The City of Cupertino also continues to coordinate services to the homeless through inter-agency efforts such as Destination HOME, Community Technology Alliance and the regional Continuum of Care (COC). Cupertino also participated in the bi-annual Santa Clara County Homeless Census and Survey that took place in 2015. In addressing senior services, the City will continue advocacy for the increased dissemination of accurate information and counseling for seniors and other persons regarding housing options available. This will be accomplished through a cooperative effort with the Cupertino Senior Center, West Valley Community Services and the Cupertino Public Library. LEAD-BASED PAINT Lead-based paint awareness and abatement will be fully integrated by the City of Cupertino into its assisted housing programs. Each tenant, landlord and property owner will be informed of the dangers, symptoms, testing, treatment and prevention of lead-based paint poisoning. Lead-based paint hazard stabilization or abatement will be provided in each and every rehabilitation project. Furthermore, adherence to Federal guidelines for reduction activities with lead-based paint is provided for in every federally funded rehabilitation loan. PUBLIC HOUSING The City will continue to encourage the Housing Authority of the County of Santa Clara (HACSC) and Housing Trust Silicon Valley (HTSV) to develop affordable units in the City of Cupertino. LEVERAGING OF FUNDS To the greatest extent possible, when feasible, the City of Cupertino will leverage public and private resources to achieve the goals of the 2015-20 Consolidated Plan. The City of Cupertino will continue to request that affordable housing developers seek private financing, grants and utilize other state and federal funding sources, such as the Building Equity and Growth in Neighborhoods Program (BEGIN), HOME Investment Partnerships Program (HOME), Multifamily Housing Program (MHP) and Low Income Housing Tax Credit (LIHTC) programs. FAIR HOUSING The City of Cupertino continues to support both the purpose and goal of fair housing and works to achieve fair housing in administering federal, state and local programs. The City of Cupertino also supports the development of affordable housing stock that is an important part of a fair housing initiative, given the high cost of local housing. The City of Cupertino prepared and updated an Analysis of Impediments to Fair Housing Choice (AI) in February 2016. A copy of the updated AI was forwarded to HUD to be kept on file. The proposed actions to be undertaken by the City in the 2016 Program Year consist of the following: 141 11 • The City will continue to require developers to provide relocation assistance when residents will be displaced. • The City will continue to provide a housing program that allows for accessibility and modification of existing housing facilitating the needs of persons with disabilities. • The City will continue to support non-profit organizations whose purpose is to aid in the furthering of fair housing in the community. Methods of support could include notification of fair housing rights and responsibilities distributed in brochures located in public buildings, public service announcements on the local access channel or similar methods. • The City will continue to allow for the construction of higher density housing complexes on a case-by-case basis when possible, for all economic segments of the community. PROGRAM MONITORING Performance monitoring for compliance to federal program requirements is scheduled at least once annually for both programs and projects that are under service contract. In addition, the City undertakes an annual Single Audit when applicable according to the requirements of the federal Office of Management and Budget. As standard practice, notification is made to HUD on the availability of the City's annual audit. The City ensures monitoring compliance for public service grant contracts as follows: Public Services 1. A CDBG Application File Checklist along with subrecipient documentation from the checklist will be placed in each subrecipient file. 2. All subrecipients will be monitored by City staff quarterly through the collection of quarterly invoices, quarterly progress reports and other quarterly supporting documentation (timesheets, pay stubs, payroll records, invoices, profit/loss statements, bank statements, etc…). Any missing information will be requested from subrecipient at that time to bring their file into compliance. 3. Third party consultant on-site annual subrecipient monitoring will be conducted. The City will contract with a third-party consultant to perform annual on-site subrecipient monitoring. Any monitoring findings will be brought to compliance. The consultant will use a separate monitoring form . 4. Annual CDBG subrecipient training will be conducted by City staff and/or it’s consultant to assist subrecipients with monitoring and compliance regulations. A copy of the Subgrantee Administrative Manual will also be provided to subrecipients. 5. HUD on-site monitoring. From time to time HUD staff will perform on-site monitoring of both City staff and subrecipients. The City ensures monitoring compliance for capital grant and/or loan contracts as follows: 142 12 Capital Projects 1. Periodically properties and/or units that have received CDBG assistance for rehabilitation and/or acquisition of real property will be inspected by the City or it’s designee to ensure that all housing codes such as Health and Safety Code (H&S), Housing Quality Standards (HQS), building codes and code enforcement standards are in compliance. A report of the findings will be placed in the CDBG grant and/or loan file to ensure long-term compliance with housing codes. 2. Recipients of CDBG capital project grants and/or loans for rehabilitation and acquisition of real property will submit annual performance reports to the City by July 31 that summarizes CDBG assisted household information such as the number of clients served, including their monthly rent, annual income, income level, household size, race/ethnicity and whether they are senior, disabled or female head of households for the term of their grant and/or loan agreement. 3. Recipients of CDBG capital project grants and/or loans for rehabilitation and acquisition of real property must maintain all required insurance coverage for the term of their grant and/or loan agreement. A copy of insurance coverage will be placed in the CDBG grant and/or loan file. Recipients of CDBG capital project grants and/or loans for rehabilitation and acquisition of real property must perform an independent fiscal audit in conformance with the generally accepted standard account principals annually and submit to the City for the term of their grant and/or loan agreement. A copy the financial audit will be placed in the CDBG grant and/or loan file. URGENT OR COMMUNITY NEED In the event of a local, state or federal disaster declaration for areas within the boundaries of the City of Cupertino, the City will reserve the right to use CDBG funds to abate immediate and necessary hazards. The funds may be used for staff efforts, grants or loans to affected parties, as approved by the City Council and allowed under the federal regulations. AMENDMENTS TO PLAN Prior to the submission of any substantial amendment in the proposed use of funds, citizens will be provided reasonable notice of, and the opportunity to comment on, any proposed Action Plan amendments. SUMMARY OF 2016-17 CDBG, HSG AND BMR AHF APPLICATIONS The City of Cupertino adopted its 2015-20 Consolidated Plan in April 2015. The City intends to provide funding in fiscal year 2016-17 to housing activities which are consistent with the adopted 2015-20 Consolidated Plan. Listed below is a summary of fiscal year 2016-17 Community Development Block Grant (CDBG) Program, General Fund Human Service Grants (HSG) Program and Below Market-Rate (BMR) Affordable Housing Fund (AHF) applications that are recommended for funding and their relationship to 2015-20 Consolidated Plan goals, strategies and actions that the City intends to fund. 143 13 Community Development Block Grant (CDBG) Public Service Applications: Application #1 Application #2 Note: CDBG public service funded amounts may be reduced or increased. If the federal budget is reduced or increased for fiscal year 2016-17, CDBG grant applicant amounts that are recommended for funding will also be reduced or increased proportionately. Community Development Block Grant (CDBG) Capital Housing Project Applications: Application #1 Name of Organization: Live Oak Adult Day Services Name of Program: Senior Adult Day Care Funding Request: $15,098 Annual Goal: Serve 21 unduplicated frail, depended, low-income Cupertino seniors. Program Description: Provide services for seniors at-risk of being institutionalized. Provide specialized program such as recreation, mental stimulation, companionship and meals to seniors. Funding Recommendation: $15,098 Relationship to 2015-20 Consolidated Plan Goal #3: Strengthen Neighborhoods. Goal Description: Support activities that strengthen neighborhoods through the provision of community services and public improvements to benefit low-income and special needs households. Name of Organization: West Valley Community Services (WVCS) Name of Program: Community Access to Resource and Education (CARE) Funding Request: $25,000 Annual Goal: Serve a total of 100 unduplicated households by providing case management and support services. Program Description: The CARE program incorporates both case management and wrap around services to help at-risk and vulnerable household’s manage crisis and provide stabilization to help them move towards self-sufficiency. The target population of the CARE program includes low-income seniors, families with children, at-risk youth and adults. The CARE program includes case management, access to food pantry and emergency financial assistance. Funding Recommendation: $32,090 Relationship to 2015-20 Consolidated Plan Goal #2: Homelessness. Goal Description: Support activities to prevent and end homelessness. Goal #3: Strengthen Neighborhoods. Goal Description: Support activities that strengthen neighborhoods through the provision of community services and public improvements to benefit low-income and special needs households. Name of Organization: Rebuilding Together Silicon Valley (RTSV) Name of Project: Housing Repair and Rehabilitation Project Funding Request: $60,300 Annual Goal: Repair homes to 7 unduplicated Cupertino households. 144 14 Application #2 Note: CDBG project amounts may be reduced or increased. If the federal budget is reduced or increased for fiscal year 2016-17, CDBG grant applicant amounts that are recommended for funding will also be reduced or increased proportionately. General Fund Human Service Grants (HSG) Applications: Application #1 Application #2 Project Description: Provide home safety repairs, mobility and accessibility improvements for low- income households in Cupertino with the primary consideration being the correction of safety hazards. Funding Recommendation: $60,300 Relationship to 2015-2020 Consolidated Plan Goal#1: Affordable Housing. Goal Description: Assist in the creation and preservation of affordable housing for low-income and special needs households. Name of Organization: City of Cupertino Public Works Department Name of Project: City-wide Curb Ramp Installation Project Funding Request: $200,000 Annual Goal: Installation of up to 35 ADA curb ramps in various locations throughout the City. Project Description: The project aims to bridge gaps in accessibility by constructing and upgrading curb ramps. The objective of the project is to allow for a continuous path of travel through the public right of way specifically providing accessibility to the general public including the disabled. Funding Recommendation: $224,184 Relationship to 2015-20 Consolidated Plan Goal #3: Strengthen Neighborhoods. Goal Description: Support activities that strengthen neighborhoods through the provision of community services and public improvements to benefit low-income and special needs households. Name of Organization: Catholic Charities of Santa Clara County Name of Program: Long-Term Care Ombudsman Funding Request: $6,500 Annual Goal: Provide advocacy by contacting 224 unduplicated residents, 48 unannounced visits to five Cupertino long-term care facilities and investigate and resolve up to 16 complaints. Program Description: Provide advocacy for Cupertino residents in long-term care facilities to ensure they have a voice in their own care and treatment. The program will receive, investigate and resolve any complaints associated with the care of the long-term care facility residents. Funding Recommendation: $6,500 Relationship to 2015-20 Consolidated Plan Goal #3: Strengthen Neighborhoods. Goal Description: Support activities that strengthen neighborhoods through the provision of community services and public improvements to benefit low-income and special needs households. Name of Organization: Senior Adults Legal Assistance Name of Program: Legal Assistance to Elders 145 15 Application #3 Below Market-Rate (BMR) Affordable Housing Fund (AHF) Applications: Application #1 Funding Request: $10,100 Annual Goal: Serve 40 Cupertino seniors. Program Description: Provides free legal services to low-income seniors at the Cupertino Senior Center. Legal services provided are in the area of consumer complaints, housing, elder abuse, and simple wills. Funding Recommendation: $10,100 Relationship to 2015-20 Consolidated Plan Goal #3: Strengthen Neighborhoods. Goal Description: Support activities that strengthen neighborhoods through the provision of community services and public improvements to benefit low-income and special needs households. Name of Organization: Maitri Name of Program: MTH – Direct Client Services Funding Request: $15,000 Annual Goal: Maitri will provide transitional housing to 16 unduplicated households. Program Description: Provides transaction housing and related supportive services to low-income victims of domestic violence who are at high risk of becoming homeless and/or suffering further abuse to themselves and their children. Funding Recommendation: $23,400 Relationship to 2015-20 Consolidated Plan Goal #2: Homelessness. Goal Description: Support activities to prevent and end homelessness. Goal #3: Strengthen Neighborhoods. Goal Description: Support activities that strengthen neighborhoods through the provision of community services and public improvements to benefit low-income and special needs households. Name of Organization: West Valley Community Services (WVCS) Name of Program: Affordable Placement Program Funding Request: $122,400 Annual Goal: Annually monitor existing 121 BMR ownership units, annually income recertify 138 BMR rental units. Place new affordable income households into either BMR for-sale or rental units within the City of Cupertino. Manage BMR waiting list, monitor BMR units, perform orientation and assist with marketing. Program Description: West Valley Community Services (WVCS) is responsible for the monitoring, screening and placement services for the City of Cupertino’s BMR for-sale and rental housing units. WVCS maintains a waiting list for qualified applicants and provides services to those placed in the BMR affordable units. Funding Recommendation: $122,400 Relationship to 2015-20 Consolidated Plan Goal #3: Strengthen Neighborhoods. Goal Description: Support activities that strengthen neighborhoods through the provision of community services and public improvements to benefit low-income and special needs households. 146 16 Application #2 Application #3 Application #4 Application #5 Name of Organization: Project Sentinel Name of Program: Landlord/Tenant Rental Mediation Funding Request: $35,000 Annual Goal: Intake 150 information and referral calls, open 40 landlord/tenant mediation cases and counsel 40 households. Program Description: Provides information and dispute resolution services to tenants, mobile home owners, and landlords. Project Sentinel answers questions and helps to resolve disputes such as deposits, repairs, rent increases, nonpayment of rent, other rental housing and mobile home park issues. Provides free counseling services. Funding Recommendation: $35,000 Relationship to 2015-20 Consolidated Plan Goal #3: Strengthen Neighborhoods. Goal Description: Support activities that strengthen neighborhoods through the provision of community services and public improvements to benefit low-income and special needs households. Name of Organization: Eden Council for Hope and Opportunity (HOPE) Name of Program: Fair Housing Services Funding Request: $10,000 Annual Goal: Perform a total of 15 unduplicated fair housing investigative cases and audits of suspected discrimination. Program Description: Provide fair housing assistance throughout the City of Cupertino, including conducting presentations, counseling housing providers and investigating allegations of discrimination. Funding Recommendation: $10,000 Relationship to 2015-2020 Consolidated Plan Goal #4: Fair Housing Goal Description: Promote fair housing choice. Name of Organization: West Valley Community Services (WVCS) Name of Project: 10311 & 10321 Greenwood Court Renovation Project Funding Request: $160,000 Annual Goal: Renovate 4 residential duplexes. Project Description: Renovate current transitional housing units to make them more suitable for future BMR rental housing. The renovation work will include but not be limited to replacement of kitchen cabinets, countertops, flooring, light fixtures, doors and windows along with interior painting. Funding Recommendation: $160,000 Relationship to 2015-20 Consolidated Plan Goal#1: Affordable Housing. Goal Description: Assist in the creation and preservation of affordable housing for low-income and special needs households. Name of Organization: MidPen Housing Corporation Name of Project: *19160 Stevens Creek Blvd. Senior Housing Development Funding Request: $3,500,000 Annual Goal: Acquire site for a proposed affordable senior housing residential multi-family rental development. 147 17 Project Description: Develop site for a future affordable housing senior community. The proposed project would consist of 30 units (one manager’s unit). The project will serve seniors between 30%-50% of the Area Median Income (AMI). The project would require MidPen to obtain site control in order to apply for necessary funding. The project would also require a General Plan Amendment (GPA) authorization from the City Council for proposed rezoning of the site. Funding Recommendation: $3,500,000 Relationship to 2015-20 Consolidated Plan Goal#1: Affordable Housing. Goal Description: Assist in the creation and preservation of affordable housing for low-income and special needs households. *Application funding would be subject to site control, City General Plan Amendment (GPA) authorization and project approval by City Council. 148 18 2015-20 CONSOLIDATED PLAN GOALS The City of Cupertino adopted its 2015-20 Consolidated Plan in April 2015. Below is a list of the 2015-20 Consolidated Plan goals. The fiscal year 2016-17 CDBG, HSG and BMR AHF applications above show their relationship to the 2015-20 Consolidated Plan. Goal #1: Affordable Housing Goal Description: Assist in the creation and preservation of affordable housing for low-income and special needs housing Goal #2: Homelessness Goal Description: Support activities to prevent and end homelessness. Goal #3: Strengthen Neighborhoods Goal Description: Support activities that strengthen neighborhoods through the provision of community services and public improvements to benefit low-income and special needs households. Goal #4: Fair Housing Goal Description: Promote fair housing choice. 149 19 2015-20 CONSOLIDATED PLAN FIVE YEAR GOALS SUMMARY 150 20 2015-20 CONSOLIDATED PLAN ANNUAL GOALS SUMMARY CDBG 5 yr. Goal Plan Yr. 1 (2015) Goal Plan/Actual Yr. 2 (2016) Goal Plan/Actual Yr. 3 (2017) Goal Plan/Actual Yr. 4 (2018) Goal Plan/Actual Yr. 5 (2019) Goal Plan/Actual Total Goal #1: Affordable Housing Rental Units Rehabilitated 12 12 0 TBD TBD TBD 12 Owner Units Rehabilitated 29 7 7 TBD TBD TBD 14 Goal #2: Homelessness Public Service Activities 340 100 100 TBD TBD TBD 200 Goal #3: Strengthen Neighborhoods Public Service Activities 44 11 21 TBD TBD TBD 32 Public Facility or Infrastructure Activities 17 0 35 TBD TBD TBD 35 Goal #4: Fair Housing Public Service Activities 45 15 0 TBD TBD TBD 15 151 21 AREAS OF MINORITY AND LMI CONCENTRATION MAP 152 22 CERTIFICATIONS In accordance with the applicable statutes and the regulations governing the consolidated plan regulations, the jurisdiction certifies that: Affirmatively Further Fair Housing -- The jurisdiction will affirmatively further fair housing, which means it will conduct an analysis of impediments to fair housing choice within the jurisdiction, take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting that analysis and actions in this regard. Anti-displacement and Relocation Plan -- It will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and implementing regulations at 49 CFR 24; and it has in effect and is following a residential antidisplacement and relocation assistance plan required under section 104(d) of the Housing and Community Development Act of 1974, as amended, in connection with any activity assisted with funding under the CDBG or HOME programs. Drug Free Workplace -- It will or will continue to provide a drug-free workplace by: 1. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employees for violation of such prohibition; 2. Establishing an ongoing drug-free awareness program to inform employees about - (a) The dangers of drug abuse in the workplace; (b) The grantee's policy of maintaining a drug-free workplace; (c) Any available drug counseling, rehabilitation, and employee assistance programs; and (d) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; 3. Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph 1; 4. Notifying the employee in the statement required by paragraph 1 that, as a condition of employment under the grant, the employee will - (a) Abide by the terms of the statement; and (b) Notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such conviction; 153 23 5. Notifying the agency in writing, within ten calendar days after receiving notice under subparagraph 4(b) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to every grant officer or other designee on whose grant activity the convicted employee was working, unless the Federal agency has designated a central point for the receipt of such notices. Notice shall include the identification number(s) of each affected grant; 6. Taking one of the following actions, within 30 calendar days of receiving notice under subparagraph 4(b), with respect to any employee who is so convicted - (a) Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or (b) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; 7. Making a good faith effort to continue to maintain a drug-free workplace through implementation of paragraphs 1, 2, 3, 4, 5 and 6. Anti-Lobbying -- To the best of the jurisdiction's knowledge and belief: 1. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; 2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; and 3. It will require that the language of paragraph 1 and 2 of this anti-lobbying certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. Authority of Jurisdiction -- The consolidated plan is authorized under State and local law (as applicable) and the jurisdiction possesses the legal authority to carry out the programs for which it is seeking funding, in accordance with applicable HUD regulations. 154 24 Consistency with plan -- The housing activities to be undertaken with CDBG, HOME, ESG, and HOPWA funds are consistent with the strategic plan. Section 3 -- It will comply with section 3 of the Housing and Urban Development Act of 1968, and implementing regulations at 24 CFR Part 135. _______________________ ___________ Signature/Authorized Official Date City Manager___________ Title 155 25 SPECIFIC CDBG CERTIFICATIONS The Entitlement Community certifies that: Citizen Participation -- It is in full compliance and following a detailed citizen participation plan that satisfies the requirements of 24 CFR 91.105. Community Development Plan -- Its consolidated housing and community development plan identifies community development and housing needs and specifies both short-term and long- term community development objectives that provide decent housing, expand economic opportunities primarily for persons of low and moderate income. (See CFR 24 570.2 and CFR 24 part 570) Following a Plan -- It is following a current consolidated plan (or Comprehensive Housing Affordability Strategy) that has been approved by HUD. Use of Funds -- It has complied with the following criteria: 1. Maximum Feasible Priority. With respect to activities expected to be assisted with CDBG funds, it certifies that it has developed its Action Plan so as to give maximum feasible priority to activities which benefit low and moderate income families or aid in the prevention or elimination of slums or blight. The Action Plan may also include activities which the grantee certifies are designed to meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community, and other financial resources are not available); 2. Overall Benefit. The aggregate use of CDBG funds including section 108 guaranteed loans during program year(s) 2016 (a period specified by the grantee consisting of one, two, or three specific consecutive program years), shall principally benefit persons of low and moderate income in a manner that ensures that at least 70 percent of the amount is expended for activities that benefit such persons during the designated period; 3. Special Assessments. It will not attempt to recover any capital costs of public improvements assisted with CDBG funds including Section 108 loan guaranteed funds by assessing any amount against properties owned and occupied by persons of low and moderate income, including any fee charged or assessment made as a condition of obtaining access to such public improvements. However, if CDBG funds are used to pay the proportion of a fee or assessment that relates to the capital costs of public improvements (assisted in part with CDBG funds) financed from other revenue sources, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. 156 26 The jurisdiction will not attempt to recover any capital costs of public improvements assisted with CDBG funds, including Section 108, unless CDBG funds are used to pay the proportion of fee or assessment attributable to the capital costs of public improvements financed from other revenue sources. In this case, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. Also, in the case of properties owned and occupied by moderate-income (not low-income) families, an assessment or charge may be made against the property for public improvements financed by a source other than CDBG funds if the jurisdiction certifies that it lacks CDBG funds to cover the assessment. Excessive Force -- It has adopted and is enforcing: 1. A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations; and 2. A policy of enforcing applicable State and local laws against physically barring entrance to or exit from a facility or location which is the subject of such non-violent civil rights demonstrations within its jurisdiction; Compliance With Anti-discrimination laws -- The grant will be conducted and administered in conformity with title VI of the Civil Rights Act of 1964 (42 USC 2000d), the Fair Housing Act (42 USC 3601-3619), and implementing regulations. Lead-Based Paint -- Its activities concerning lead-based paint will comply with the requirements of 24 CFR Part 35, subparts A, B, J, K and R; Compliance with Laws -- It will comply with applicable laws. _ ______________________________________ ____________________________________ Signature/Authorized Official Date _City Manager___________ Title 157 27 APPENDIX TO CERTIFICATIONS INSTRUCTIONS CONCERNING LOBBYING AND DRUG-FREE WORKPLACE REQUIREMENTS: A. Lobbying Certification This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. B. Drug-Free Workplace Certification 1. By signing and/or submitting this application or grant agreement, the grantee is providing the certification. 2. The certification is a material representation of fact upon which reliance is placed when the agency awards the grant. If it is later determined that the grantee knowingly rendered a false certification, or otherwise violates the requirements of the Drug-Free Workplace Act, HUD, in addition to any other remedies available to the Federal Government, may take action authorized under the Drug-Free Workplace Act. 3. Workplaces under grants, for grantees other than individuals, need not be identified on the certification. If known, they may be identified in the grant application. If the grantee does not identify the workplaces at the time of application, or upon award, if there is no application, the grantee must keep the identity of the workplace(s) on file in its office and make the information available for Federal inspection. Failure to identify all known workplaces constitutes a violation of the grantee's drug-free workplace requirements. 4. Workplace identifications must include the actual address of buildings (or parts of buildings) or other sites where work under the grant takes place. Categorical descriptions may be used (e.g., all vehicles of a mass transit authority or State highway department while in operation, State employees in each local unemployment office, performers in concert halls or radio stations). 5. If the workplace identified to the agency changes during the performance of the grant, the grantee shall inform the agency of the 158 28 change(s), if it previously identified the workplaces in question (see paragraph three). 6. The grantee may insert in the space provided below the site(s) for the performance of work done in connection with the specific grant: Place of Performance (Street address, city, county, state, zip code) __ 10300 Torre Avenue, Cupertino, CA 95014 and any satellite offices.____________________ ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Check if there are workplaces on file that are not identified here. This information with regard to the drug-free workplace is required by 24 CFR part 21. 7. Definitions of terms in the Nonprocurement Suspension and Debarment common rule and Drug-Free Workplace common rule apply to this certification. Grantees' attention is called, in particular, to the following definitions from these rules: "Controlled substance" means a controlled substance in Schedules I through V of the Controlled Substances Act (21 U.S.C. 812) and as further defined by regulation (21 CFR 1308.11 through 1308.15); "Conviction" means a finding of guilt (including a plea of nolo contendere) or imposition of sentence, or both, by any judicial body charged with the responsibility to determine violations of the Federal or State criminal drug statutes; "Criminal drug statute" means a Federal or non-Federal criminal statute involving the manufacture, distribution, dispensing, use, or possession of any controlled substance; "Employee" means the employee of a grantee directly engaged in the performance of work under a grant, including: (i) All "direct charge" employees; (ii) all "indirect charge" employees unless their impact or involvement is insignificant to the performance of the grant; and (iii) temporary personnel and consultants who are directly engaged in the performance of work under the grant and who are on the grantee's payroll. This definition does not include workers not on the payroll of the grantee (e.g., volunteers, even if used to meet a matching requirement; consultants 159 29 or independent contractors not on the grantee's payroll; or employees of subrecipients or subcontractors in covered workplaces). 160 OMB Number: 4040-0004 Expiration Date: 8/31/2016 * 1. Type of Submission:* 2. Type of Application: * 3. Date Received: 4. Applicant Identifier: 5a. Federal Entity Identifier:5b. Federal Award Identifier: 6. Date Received by State:7. State Application Identifier: * a. Legal Name: * b. Employer/Taxpayer Identification Number (EIN/TIN):* c. Organizational DUNS: * Street1: Street2: * City: County/Parish: * State: Province: * Country: * Zip / Postal Code: Department Name:Division Name: Prefix:* First Name: Middle Name: * Last Name: Suffix: Title: Organizational Affiliation: * Telephone Number:Fax Number: * Email: * If Revision, select appropriate letter(s): * Other (Specify): State Use Only: 8. APPLICANT INFORMATION: d. Address: e. Organizational Unit: f. Name and contact information of person to be contacted on matters involving this application: Application for Federal Assistance SF-424 Preapplication Application Changed/Corrected Application New Continuation Revision B-15-MC-06-0057 B-15-MC-06-0057 City of Cupertino 94-6027368 0049524790000 10300 Torre Avenue Cupertino CA: California USA: UNITED STATES 95014 Community Development Dept.Housing Division Mr.Christopher J. Valenzuela Senior Housing Planner City of Cupertino 408.777.3251 408.777.3333 christopherv@cupertino.org 161 * 9. Type of Applicant 1: Select Applicant Type: Type of Applicant 2: Select Applicant Type: Type of Applicant 3: Select Applicant Type: * Other (specify): * 10. Name of Federal Agency: 11. Catalog of Federal Domestic Assistance Number: CFDA Title: * 12. Funding Opportunity Number: * Title: 13. Competition Identification Number: Title: 14. Areas Affected by Project (Cities, Counties, States, etc.): * 15. Descriptive Title of Applicant's Project: Attach supporting documents as specified in agency instructions. Application for Federal Assistance SF-424 C: City or Township Government U.S. Department of Housing and Urban Development 14-218 Community Development Block Grant Community Development Block Grant Program View AttachmentsDelete AttachmentsAdd Attachments View AttachmentDelete AttachmentAdd Attachment 162 * a. Federal * b. Applicant * c. State * d. Local * e. Other * f. Program Income * g. TOTAL . Prefix:* First Name: Middle Name: * Last Name: Suffix: * Title: * Telephone Number: * Email: Fax Number: * Signature of Authorized Representative:* Date Signed: 18. Estimated Funding ($): 21. *By signing this application, I certify (1) to the statements contained in the list of certifications** and (2) that the statements herein are true, complete and accurate to the best of my knowledge. I also provide the required assurances** and agree to comply with any resulting terms if I accept an award. I am aware that any false, fictitious, or fraudulent statements or claims may subject me to criminal, civil, or administrative penalties. (U.S. Code, Title 218, Section 1001) ** The list of certifications and assurances, or an internet site where you may obtain this list, is contained in the announcement or agency specific instructions. Authorized Representative: Application for Federal Assistance SF-424 * a. Applicant Attach an additional list of Program/Project Congressional Districts if needed. * b. Program/Project * a. Start Date:* b. End Date: 16. Congressional Districts Of: 17. Proposed Project: 15th 15th Add Attachment Delete Attachment View Attachment 06/30/201707/01/2016 307,592.00 7,000.00 314,592.00 a. This application was made available to the State under the Executive Order 12372 Process for review on b. Program is subject to E.O. 12372 but has not been selected by the State for review. c. Program is not covered by E.O. 12372. Yes No Add Attachment Delete Attachment View Attachment ** I AGREE Mr.David Brandt City Manager 408.777.3250 408.777.3366 davidb@cupertino.org * 20. Is the Applicant Delinquent On Any Federal Debt? (If "Yes," provide explanation in attachment.) * 19. Is Application Subject to Review By State Under Executive Order 12372 Process? If "Yes", provide explanation and attach 163 RESOLUTION NO. 16- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ADOPTING THE 2016-17 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM ANNUAL ACTION PLAN WHEREAS, the Housing and Community Development Act of 1974 provides that funds be made available for the Community Development Block Grant (CDBG) program; and WHEREAS, the City of Cupertino is required to submit a 2016-17 CDBG Annual Action Plan to the United States Department of Housing and Urban Development (HUD) for review and approval prior to being allowed to expend CDBG funds for fiscal year 2016-17; and NOW, THEREFORE BE IT RESOLVED that the City of Cupertino makes the certifications required by 24 CFR Sections 91.225 and 570.303 as contained in the CDBG Annual Action Plan for fiscal year 2016-17; and BE IT FURTHER RESOLVED that the City Council of the City of Cupertino hereby approves the 2016-17 CDBG Annual Action Plan; and BE IT FURTHER RESOLVED that the City Manager is hereby authorized to submit the 2016-17 CDBG Annual Action Plan approved by the City Council of the City of Cupertino to HUD. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 19th day of April, 2016 by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: Grace Schmidt Barry Chang City Clerk Mayor, City of Cupertino 164 Proof of Publication To Be Inserted Here 165 No.Fiscal Year 2016/17 Grant Application Summary Est. FY 2016/17 Funds Available FY 2016/17 Funding Requests FY 2016/17 Housing Commission Funding Recommendations FY 2016/17 Est. Balance of Available Funds After Funding Recommendations FY 2015/16 Funding Allocations 1 CDBG Public Service Applications: (Two-Year Funding Cycle, FY 2016/17 & 17/18) a Live Oak Adult Day Services - Senior Adult Day Care 15,098.00$ 15,098.00$ 14,254.00$ b West Valley Community Services - Community Access to Resource and Education (CARE)25,000.00$ 32,090.00$ 22,991.00$ Sub-Total $ 47,188.00 $ 40,098.00 $ 47,188.00 -$ 37,245.00$ 2 CDBG Capital/Housing Project Applications: (One-Year Funding Cycle, FY 2016/17) a Rebuilding Together Silicon Valley - Housing Repair and Rehabilitation Project $ 60,300.00 $ 60,300.00 $ 60,300.00 b City of Cupertino Public Works Department - City-wide Curb Ramp Installation Project $ 200,000.00 $ 224,184.00 $ - Sub-Total $ 284,484.00 $ 260,300.00 $ 284,484.00 -$ 60,300.00$ 3 CDBG Program Administration: (One-Year Funding Cycle, FY 2016/17) a Administration $ 62,918.00 $ 62,918.00 $ - $ 61,309.00 Sub-Total $ 62,918.00 $ 62,918.00 $ 62,918.00 -$ 61,309.00$ 4 General Fund Human Service Grants (HSG) Applications: (Two-Year Funding Cycle, FY 2016/17 & 17/18) a Catholic Charities of Santa Clara County - Long-Term Care Ombudsman $ 6,500.00 $ 6,500.00 $ 6,500.00 b Senior Adults Legal Assistance - Legal Assistance to Elders $ 10,100.00 $ 10,100.00 $ 9,800.00 c Maitri - MTH Direct Client Services $ 15,000.00 $ 23,400.00 $ 12,000.00 Sub-Total $ 40,000.00 $ 31,600.00 $ 40,000.00 -$ 28,300.00$ 5 Below Market-Rate (BMR) Affordable Housing Fund (AHF) Applications (Two-Year Funding Cycle, FY 2016/17 & 17/18): a West Valley Community Services - Affordable Placement Program $ 122,400.00 $ 122,400.00 $ 109,000.00 b Project Sentinel - Landlord/Tenant Rental Mediation $ 35,000.00 $ 35,000.00 $ 30,000.00 c Eden Council for Hope and Opportunity (ECHO) - Fair Housing Services $ 10,000.00 $ 10,000.00 $ 8,737.00 d West Valley Community Services - 10311 & 10321 Greenwood Court Renovation Project $ 160,000.00 $ 160,000.00 $ - e *MidPen Housing Corporation - 19160 Stevens Creek Blvd. Senior Housing Development $ 3,500,000.00 $ 3,500,000.00 $ - Sub-Total $ 8,000,000.00 $ 3,827,400.00 $ 3,827,400.00 $ 4,172,600.00 $ 147,737.00 TOTAL $ 8,434,590.00 $ 4,222,316.00 $ 4,261,990.00 $ 4,172,600.00 $ 334,891.00 *Application funding approval would only apply to fiscal year 2016-17. Application funding approval and prior to any City funds being disbursed for this proposed project, the applicant would be subject to providing sufficient documentation of site control, City Council General Plan Amendment (GPA) authorization to proceed with a development application for the property to be rezoned and other conditions set forth by the City Council. 166 Page 1 of 5 2016-17 Community Development Block Grant (CDBG) Program April 19, 2016 Annual Action Plan and 2016-17 Grant Funding Allocations Fiscal Year 2016-17 CDBG, HSG and BMR AHF Grant Application Descriptions Community Development Block Grant (CDBG) Public Service Grants: Application 1a. Name of Organization: Live Oak Adult Day Services Name of Program: Senior Adult Day Care Annual Goal: Serve 21 unduplicated frail, dependent, low-income Cupertino seniors. Program Description: Provides services for seniors at-risk of being institutionalized. Provides specialized programs such as recreation, mental stimulation, companionship and nutritious meals to seniors. Funding Request: $15,098 Housing Commission Funding Recommendation: $15,098 Application 1b. Name of Organization: West Valley Community Services (WVCS) Name of Program: Community Access to Resource and Education (CARE) Annual Goal: Serve a total of 100 unduplicated households by providing case management and support services. Program Description: The CARE program incorporates both case management and wrap around services to help at-risk and vulnerable household’s mange crisis and provide stabilization to help them move towards self-sufficiency. The target population of the CARE program includes low-income seniors, families with children, at-risk youth and adults. The CARE program includes case management, access to food pantry and emergency financial assistance. Funding Request: $25,000 Housing Commission Funding Recommendation: $32,090 Community Development Block Grant (CDBG) Capital Housing Projects: Application 2a. Name of Organization: Rebuilding Together Silicon Valley (RTSV) Name of Project: Housing Repair and Rehabilitation Project Annual Goal: Repair homes to 7 unduplicated Cupertino households. 167 Page 2 of 5 2016-17 Community Development Block Grant (CDBG) Program April 19, 2016 Annual Action Plan and 2016-17 Grant Funding Allocations Project Description: Provide home safety repairs, mobility and accessibility improvements with the primary consideration being the correction of safety hazards. Funding Request: $60,300 Housing Commission Funding Recommendation: $60,300 Application 2b. Name of Organization: City of Cupertino Public Works Department Name of Project: City-wide Curb Ramp Installation Annual Goal: Installation of up to 35 ADA curb ramps in various locations throughout the City. Project Description: The project aims to bridge gaps in accessibility by constructing and upgrading curb ramps. The objective of the project is to allow for a continuous path of travel through the public right of way specifically providing accessibility to the general public including the disabled. Funding Request: $200,000 Housing Commission Funding Recommendation: $224,184 General Fund Human Service Grants (HSG): Application 4a. Name of Organization: Catholic Charities of Santa Clara County Name of Program: Long-Term Care Ombudsman Annual Goal: Provide advocacy by contacting up to 224 unduplicated residents, 48 unannounced visits to five Cupertino long-term care facilities and investigate and resolve up to 16 complaints. Program Description: Provide advocacy for Cupertino residents in long-term care facilities to ensure they have a voice in their own care and treatment. The program will receive, investigate and resolve any complaints associated with the care of the long-term care facility residents. Funding Request: $6,500 Housing Commission Funding Recommendation: $6,500 168 Page 3 of 5 2016-17 Community Development Block Grant (CDBG) Program April 19, 2016 Annual Action Plan and 2016-17 Grant Funding Allocations Application 4b. Name of Organization: Senior Adults Legal Assistance (SALA) Name of Program: Legal Assistance to Cupertino Elders Annual Goal: Serve 40 Cupertino seniors. Program Description: Provides free legal services to low-income seniors at the Cupertino Senior Center. Legal services provided are in the area of consumer complaints, housing, elder abuse, and simple wills. Funding Request: $10,100 Housing Commission Funding Recommendation: $10,100 Application 4c. Name of Organization: Maitri Name of Program: MTH – Direct Client Services Annual Goal: Maitri will provide transitional housing to 16 unduplicated households. Program Description: Provides transitional housing and related supportive services to low-income victims of domestic violence who are at high risk of becoming homeless and/or suffering further abuse to themselves and their children. Funding Request: $15,000 Housing Commission Funding Recommendation: $23,400 Below Market-Rate (BMR) Affordable Housing Fund (AHF): Application 5a. Name of Organization: West Valley Community Services (WVCS) Name of Program: Affordable Placement Program Annual Goal: Annually monitor existing 121 BMR ownership units, annually income recertify 138 BMR rental units. Place new affordable income households into either BMR for-sale or rental units within the City of Cupertino. Manage BMR waiting list, monitor BMR units, perform orientations and assist with marketing. Program Description: WVCS assist with monitoring, screening and placement services for the City of Cupertino’s Below Market-Rate (BMR) for-sale and rental housing units. WVCS maintains a 169 Page 4 of 5 2016-17 Community Development Block Grant (CDBG) Program April 19, 2016 Annual Action Plan and 2016-17 Grant Funding Allocations waiting list for qualified applicants and provides services to those placed in the BMR affordable units. Funding Request: $122,400 Housing Commission Funding Recommendation: $122,400 Application 5b. Name of Organization: Project Sentinel Name of Program: Landlord/Tenant Rental Mediation Annual Goal: Intake 150 information and referral calls, open 40 landlord/tenant mediation cases and counsel 40 households. Program Description: Provides information and dispute resolution services to tenants, mobile home owners and landlords. Answers questions and helps to resolve disputes such as deposits, repairs, rent increases and nonpayment of rent. Provides free counseling services. Funding Request: $35,000 Housing Commission Funding Recommendation: $35,000 Application 5c. Name of Organization: Eden Council for Hope and Opportunity (ECHO) Name of Program: Fair Housing Services Annual Goal: Perform a total of 15 unduplicated fair housing investigative cases and audits of suspected discrimination. Program Description: Provide fair housing assistance throughout the City of Cupertino, including conducting presentations, counseling housing providers and investigating allegations of discrimination. Funding Request: $10,000 Housing Commission Funding Recommendation: $10,000 Applicant 5d. Name of Organization: West Valley Community Services (WVCS) Name of Project: 10311 & 10321 Greenwood Court Renovation Annual Goal: Renovate 4 residential duplexes. Project Description: Renovate current transitional housing units to make them more suitable for future BMR rental housing. The 170 Page 5 of 5 2016-17 Community Development Block Grant (CDBG) Program April 19, 2016 Annual Action Plan and 2016-17 Grant Funding Allocations renovation work will include but not be limited to replacement of kitchen cabinets, countertops, flooring, light fixtures, doors and windows along with interior painting. Funding Request: $160,000 Housing Commission Funding Recommendation: $160,000 Application 5e. Name of Organization: MidPen Housing Corporation Name of Project: 19160 Stevens Creek Blvd. Senior Housing Development Annual Goal: Acquire site for a proposed affordable senior housing residential multi-family rental development. Project Description: Develop site for a future affordable housing senior community. The proposed project would consist of 30 units (one manager’s unit). The project will serve seniors between 30%-50% of the Area Median Income (AMI). The project would require MidPen to obtain site control in order to apply for necessary project funding. The project would also require a General Plan Amendment (GPA) authorization from the City Council for proposed rezoning of the site. Funding Request: $3,500,000 Housing Commission Funding Recommendation: $3,500,000 171 Page 1 of 21 FY 2016-17 General Fund Human Service Grants (HSG) City/Non-Profit Contract GENERAL FUND HUMAN SERVICE GRANTS (HSG) PROGRAM CITY/NON-PROFIT CONTRACT (Services Only) THIS General Fund Human Services Grants (HSG) Program City/Non-Profit Contract (the "Contract") is entered into between the CITY OF CUPERTINO, a political subdivision of the State of California (hereinafter “CITY”), and ______________________________________________________ a non-profit public benefit corporation (hereinafter “CORPORATION”). The allocation of funds pursuant to this Contract will be a grant. CITY approved the allocation and disbursement of General Fund Human Service Grants (HSG) funds (hereinafter “Grant”) to CORPORATION on _____________________. WITNESSETH WHEREAS, CITY has reserved a portion of its HSG funds to be used on activities that benefit Cupertino’s residents; and, WHEREAS, CITY has agreed to the use by CORPORATION of a portion of CITY’S HSG budget for the Program as described below to be operated within CITY and will benefit low and very low-income households; NOW, THEREFORE, the parties agree as follows; I. PROGRAM CITY agrees to allocate a portion of its current HSG budget to CORPORATION, being the sum of ___________________________________________________ for the purpose of implementing the CORPORATION’S program (hereinafter “Program”), as more particularly described in numerous exhibits marked as noted herein, attached to this Contract, incorporated by this reference, as though fully set forth, as follows: Exhibit “A” (Program Description), Exhibit “B” (Program Work Plan), Exhibit “C” (Proposed Implementation Time Schedule), Exhibit “D” (Program Budget), and Exhibit “E” (Insurance and Bond Requirements). II. TERM A. The purpose of this Contract is for the CITY to disburse HSG funds for eligible activities. Unless amended prior to its expiration, the term of this Contract for disbursement purposes will begin on _____________ and will end on ______________ unless terminated earlier pursuant to Section VII or Section VIII of this Contract. B. The term of the expenditure by CORPORATION of the allocation provided for herein will begin on _______________ and terminate on the earliest of the following dates as set forth herein: _______________, or later date per amendment to this Contract; or upon the termination date established pursuant to Section VII or Section VIII of this Contract. 172 Page 2 of 21 FY 2016-17 General Fund Human Service Grants (HSG) City/Non-Profit Contract III. SECOND YEAR RENEWAL OPTIONS The term of this Contract may be extended by an amendment to disburse the CITY’S Grant funds authorized by City Council for the fiscal year subsequent to the initial term of this Contract, contingent on the following requirements and process: A. Authorization by CITY to expend funds for the purposes of this Contract; B. CITY’S appropriation of funds for this Program; C. CORPORATION’S satisfactory performance, as determined by the CITY, of all it’s obligations as stated in this Contract; D. Submission to CITY of Proof of Insurance. IV. OBLIGATIONS OF CORPORATION A. Organization of CORPORATION. CORPORATION will: 1. Provide CITY with copies of the following documents, evidencing filing with the appropriate governmental agency: a) Its Articles of Incorporation under the laws of the State of California; b) A copy of the current Bylaws of CORPORATION; c) Documentation of its Internal Revenue Service non-profit status; d) Names and addresses of the current Board of Directors of CORPORATION; and, e) An adopted copy of CORPORATION’S personnel policies and procedures. 2. During the Contract term, immediately report any changes, subsequent to the date of this Contract, in CORPORATION’S Articles of Incorporation, Bylaws, Board of Directors, personnel policies and procedures, or tax exempt status to DIRECTOR. 3. Maintain no member of its Board of Directors as a paid employee, agent, independent contractor, or subcontractor under this Contract. 4. Open to the public, meetings of its Board of Directors, if required by California’s open meeting laws, except meetings, or portions thereof, dealing with personnel or litigation matters or as otherwise provided by law. 5. Keep minutes of all its regular and special meetings. 173 Page 3 of 21 FY 2016-17 General Fund Human Service Grants (HSG) City/Non-Profit Contract 6. Comply with all provisions of California and Federal Non-Profit Corporation Laws. 7. Provide to the CITY a copy of a resolution authorizing the CORPORATION's execution of this Contract. The CORPORATION hereby warrants to the CITY that this Contract is a legal, valid, and binding obligation of the CORPORATION enforceable in accordance with its terms, and that the execution and delivery of this Contract and the performance of the CORPORATION's obligations have been duly authorized by the CORPORATION. B. Program Performance by CORPORATION. CORPORATION shall: 1. Conduct the PROGRAM within the City of Cupertino, for the purpose of benefiting low and very low-income households. 2. File quarterly reports as required by CITY on the type and number of services rendered through the operation of the PROGRAM, and a description of the beneficiaries of these services, and which reports will evaluate the manner in which the PROGRAM is achieving its objectives and goals according to the standards established by CITY. The progress reports will be due ten days after the close of each reporting period and must cover the three months immediately preceding the date on which the report is filed. 3. Coordinate its services with other existing organizations providing similar services in order to foster community cooperation and to avoid unnecessary duplication of services. 4. Seek out and apply for other sources of revenue in support of its operation or services from local, state, federal and private sources and, in the event of receipt of such award, inform CITY within ten days. 5. Include an acknowledgement of CITY funding and support on CORPORATION stationery and on all appropriate program-related publicity and publications using words to the effect: “funded in whole or in part by the City of Cupertino General Funds.” C. Fiscal Responsibilities of CORPORATION. CORPORATION will: 1. Appoint and submit the name of a fiscal agent who will be responsible for the financial and accounting activities of CORPORATION, including the receipt and disbursement of CORPORATION funds. The CITY must immediately be notified in writing of the appointment of any new fiscal agent and that agent’s name. 2. If the term of this Contract is extended by an amendment for a second fiscal year, submit a satisfactory Audit within 150 days of CORPORATION’s fiscal year encompassed by the first year of this Contract. 174 Page 4 of 21 FY 2016-17 General Fund Human Service Grants (HSG) City/Non-Profit Contract 3. Document all PROGRAM costs by maintaining records in accordance with Section III, Paragraph D below. 4. Submit to the CITY, based on an agreed upon schedule, a request for payment, together with all supporting documentation. Invoices requesting disbursements submitted after the expiration of the Contract will be honored only for eligible charges incurred during the Contract term. All invoices must be submitted by the Contract expiration date or within such other time period specified by the CITY for this Contract term. Funds not disbursed will be returned to the City for future reallocation. 5. Certify current and continuous insurance coverage, subject to CITY approval and in accordance with requirements as outlined in Exhibit E, “Insurance and Bond Requirements.” 6. Items 1) through 5) above are express conditions precedent to disbursement of any CITY funding and failure to comply with these conditions will, at discretion of CITY, result in suspension of funding or termination of this Contract. 7. If CORPORATION does not use Grant funds in accordance with the requirements of this Contract; CORPORATION is liable for repayment of all disallowed costs. Disallowed costs may be identified through audits, monitoring or other sources. CORPORATION is required to respond to any adverse findings, which may lead to disallowed costs subject to provisions of OMB Circular A-122, “Cost Principles for Non- Profit Organizations.” D. Establishment and Maintenance of Records. CORPORATION shall: 1. Maintain complete and accurate records of all its transactions including, but not limited to, contracts, invoices, time cards, cash receipts, vouchers, canceled checks, bank statements, client statistical records, personnel, property and all other pertinent records sufficient to reflect properly (a) all direct and indirect costs of whatever nature claimed to have been incurred or anticipated to be incurred to perform this Contract or to operate the PROGRAM, and (b) all other matters covered by this Contract. 2. Maintain client data demonstrating client eligibility for services provided for the Program. Such data will include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information will be made available to CITY monitors for review upon request. E. Preservation of Records. CORPORATION will preserve and make available its records: 1. Until five years following date of final payment of this contract, or 2. For such longer period, if any as is required by applicable law; or 175 Page 5 of 21 FY 2016-17 General Fund Human Service Grants (HSG) City/Non-Profit Contract 3. If this Contract is completely or partially terminated, the records relating to the work terminated will be preserved and made available for a period of five years from the date of termination. F. Examination of Records and Facilities. At any time during normal business hours, and as often as may be deemed necessary, CORPORATION agrees that the CITY, and/or any duly authorized representatives may until expiration of (a) five years after final payment under this Contract, (b) five years from the date of termination of this Contract, or (c) such longer period as may be described by applicable law, have access to and the right to examine its plants, offices and facilities used in the performance of this Contract or the operation of the PROGRAM, and all its records with respect to the PROGRAM and all matters covered by this Contract. CORPORATION also agrees that CITY or any duly authorized representatives will have the right to audit, examine, and make excerpts or transactions of and from, such records and to make audits of all contracts and subcontracts, invoices, payrolls, records of personnel, conditions of employment, materials and all other data relating to the PROGRAM and matters covered by this Contract. CORPORATION will be notified in advance that an audit will be conducted. CORPORATION will be required to respond to any audit findings, and have the responses included in the final audit report. The cost of any such audit will be borne by CITY. G. Compliance with Law. CORPORATION will become familiar and comply with and cause all its subcontractors, independent contractors, and employees, if any, to become familiar and comply with all applicable federal, state and local laws, ordinances, codes, regulations and decrees. H. Suspension and Termination. Suspension or termination of this Contract may occur if the CORPORATION materially fails to comply with any term of the award, and that the award may be terminated for convenience. I. Reversion of Assets. Upon expiration or termination of this Contract, the CORPORATION will transfer to the CITY any HSG funds on hand at the time of expiration and any accounts receivable attributable to the use of funds. V. OBLIGATIONS OF CITY A. Method of Payment. During the term of this Contract, CITY shall disburse HSG funds to CORPORATION on a reimbursement basis unless otherwise provided herein for all allowable costs and expenses incurred in connection with the PROGRAM, not to exceed the total sum of ________________________________________________. CITY may, at any time in its absolute discretion, elect to suspend or terminate payment to CORPORATION, in whole or in part, pursuant to this Contract based on CORPORATION’S non-compliance, including, but not limited to, incomplete documentation of expenses, failure to substantially meet goals and objectives as required in Exhibit B, (“Program Work Plan”), failure to submit adequate progress reports as required herein or other incidents of non-compliance as described in Section VII, Paragraph B of this Contract or based on the refusal by CORPORATION to accept any additional conditions that may be imposed by City at any time to ensure compliance with the terms of this Contract. 176 Page 6 of 21 FY 2016-17 General Fund Human Service Grants (HSG) City/Non-Profit Contract VI. PROGRAM COORDINATION A. CITY. The CITY Executive will assign a single DIRECTOR for CITY who will render overall supervision of the progress and performance of this Contract by CITY. All services agreed to be performed by CITY will be at the overall direction of the DIRECTOR. B. CORPORATION. As of the date hereof, CORPORATION has designated _________________________________ to serve as EXECUTIVE DIRECTOR and to assume overall responsibility for the progress and execution of this Contract. The CITY will be immediately notified in writing of the appointment of a new EXECUTIVE DIRECTOR. C. NOTICES. All notices or other correspondence required or contemplated by this Contract shall be sent to the parties at the following addresses: CITY: __________________________________ __________________________________ __________________________________ __________________________________ __________________________________ CORPORATION: __________________________________ __________________________________ __________________________________ __________________________________ __________________________________ All notices will either be hand delivered or sent by United States mail, registered or certified, postage prepaid. Notices given in such a manner will be deemed received when hand delivered or seventy-two (72) hours after deposit in the United States mail. Any party may change his or her address for the purpose of this section by giving five days written notice of such change to the other party in the manner provided in this section. VII. CONTRACT COMPLIANCE A. Monitoring and Evaluation of Services. Evaluation and monitoring of the PROGRAM performance is the mutual responsibility of both CITY and CORPORATION. CORPORATION must furnish all data, statements, records, information and reports necessary for DIRECTOR to monitor, review and evaluate the performance of the PROGRAM and its components. CITY will have the right to request the services of an outside agent to assist in any such evaluation. Such services shall be paid for by CITY. B. Contract Noncompliance. If CORPORATION fails to comply with any provision of this Contract; CITY will have the right to require corrective action to enforce compliance with such provision as well as the right to suspend or terminate this Contract. Examples of noncompliance include, but are not limited to: 177 Page 7 of 21 FY 2016-17 General Fund Human Service Grants (HSG) City/Non-Profit Contract 1. If CORPORATION (with or without knowledge) has made any material misrepresentation of any nature with respect to any information or data furnished to CITY in connection with the PROGRAM. 2. If there is pending litigation with respect to the performance by CORPORATION if any of its duties or obligations under this Contract, which may materially jeopardize or adversely affect the undertaking of or the carrying out of the PROGRAM. 3. If CORPORATION has taken any action pertaining to the PROGRAM, which action required CITY approval, and such approval was not obtained. 4. If CORPORATION is in default under any provision of this Contract. 5. If CORPORATION makes illegal use of CITY funds. 6. If CORPORATION submits to CITY any report which is incorrect or incomplete in any material respect. 7. If CORPORATION fails to meet the stated objectives in Exhibit B (“Program Work Plan”). C. Corrective Action Procedure. CITY, in its absolute discretion and in lieu of immediately terminating this Contract upon occurrence or discovery of noncompliance by CORPORATION pursuant to this Contract, will have the right to give CORPORATION notice of CITY’S intention to consider corrective action to enforce compliance. Such notice must indicate the nature of the non-compliance and the procedure whereby CORPORATION will have the opportunity to participate in formulating any corrective action recommendation. CITY will have the right to require the presence of CORPORATION’S officer(s) and EXECUTIVE DIRECTOR at any hearing or meeting called for the purpose of considering corrective action. In the event that CORPORATION does not implement the corrective action recommendations in accordance with the corrective action timetable, CITY may suspend payments hereunder or terminate this Contract as set forth in Section VIII below. VIII. TERMINATION A. Termination for Cause. CITY may terminate this Contract by providing written notice to CORPORATION, for any of the following reasons: uncorrected Contract non-compliance as defined in Section VII, Paragraph B; CORPORATION is in bankruptcy or receivership; a member of the CORPORATION’S Board of Directors or the executive director is found to have committed fraud or; there is reliable evidence that CORPORATION is unable to complete the Program as described in the attached Exhibits. The date of termination will be as specified in the notice. B. Termination for Convenience. In addition to the CITY’S right to terminate for cause set forth in Section VII, either CITY or CORPORATION may suspend or terminate this Contract 178 Page 8 of 21 FY 2016-17 General Fund Human Service Grants (HSG) City/Non-Profit Contract for any reason by giving thirty (30) days prior written notice to the other party. Upon receipt of such notice, performance of the services hereunder will be immediately discontinued. C. In the event that this Contract is terminated, CORPORATON may be required to return funds to the CITY. D. Upon termination of this Contract, CORPORATION must immediately provide CITY access to all documents, records, payroll, minutes of meetings, correspondence and all other data pertaining to Grant made to CORPORATION pursuant to this Contract. IX. PROGRAM INCOME Income generated by the Program, is considered Program Income. CORPORATION will annually report all program income generated by activities carried out with grant funds made available under this Contract. By way of further limitations, CORPORATION may use such income during the Contract period for activities permitted under this Contract and shall reduce requests for additional funds by the amount of any such program income balance on hand. All unused program income shall be returned to the CITY at the end of the Contract period. X. INDEPENDENT CONTRACTOR This is a Contract by and between independent contractors and is not intended and will not be construed to create the relationship of agent, servant, employee, partnership, joint venture or association between CORPORATION and CITY. CORPORATION, including its officers, employees, agents or independent contractors or subcontractors, shall not have any claim under this Contract or otherwise against CITY for any Social Security, Worker’s Compensation, or employee benefits extended to employees of CITY. XI. ASSIGNABILITY CITY is entering into this Contract based on the experience, skill, and ability to perform of the CORPORATION. The CORPORATION recognizes that its qualifications and identify are of particular concern to the CITY in view of the CITY's interest in providing services to lower income persons and the CITY's reliance on the unique qualifications of the CORPORATION. Consequently, this Contract may not be assigned to another CORPORATION, person, partnership or any other entity without the prior written approval of CITY. None of the work or services to be performed hereunder may be assigned, delegated or subcontracted to third parties without the prior written approval of CITY, which the CITY may withhold in its sole discretion. Copies of all third party contracts shall be submitted to CITY at least ten days prior to the proposed effective date. In the event CITY approves of any such assignment, delegation or sub- contract, the subcontractors, assignees or delegates CORPORATION shall remain fully liable for all obligations and requirements under this Contract, including the performance and any liabilities attaching to the assignees' actions or omissions. 179 Page 9 of 21 FY 2016-17 General Fund Human Service Grants (HSG) City/Non-Profit Contract XII. CLIENT INFORMATION CORPORATION agrees to maintain client records consistent with applicable laws regarding personal privacy and obligations of confidentiality. . XIII. HOLD HARMLESS In addition to the indemnity obligations set forth in Exhibit E, “Insurance and Bond Requirements,” CORPORATION will indemnify and hold harmless the CITY, its employees, agents, and officials, members of boards and commissions, from any and all claims, actions, suits, charges and judgments whatsoever, with respect to any damages, including attorney’s fees and court costs, arising out of the failure of the CORPORATION’s Program to comply with applicable laws, ordinances, codes, regulations and decrees, including without limitation those set forth in Exhibit E, “Certifications.” XIV. WAIVER OF RIGHTS AND REMEDIES In no event will any payment by CITY constitute or be construed to be a waiver by CITY of any breach of the covenants or conditions of this Contract or any default which may then exist on the part of CORPORATION, and the making of any such payment while any such breach or default will in no way impair or prejudice any right or remedy available to CITY with respect touch breach or default. In no event will payment to CORPORATION by CITY in any way constitute a waiver by CITY of its rights to recover from CORPORATION the amount of money paid to CORPORATION on any item, which is not eligible for payment under the PROGRAM or this Contract. XV. NON-DISCRIMINATION CORPORATION will comply with all applicable Federal, State and local laws and regulations including the City of Cupertino’s policies concerning nondiscrimination and equal opportunity in contracting. Such laws include but are not limited to the following: Title VII of the Civil Rights Act of 1964 as amended; Americans with Disabilities Act of 1990; The Rehabilitation Act of 1973 (Sections 503 and 504); California Fair Employment and Housing Act (Government Code sections 12900 et seq.); and California Labor Code sections 1101 and 1102. CORPORATION will not discriminate against any subcontractor, employee, or applicant for employment because of age, race, color, national origin, ancestry, religion, sex/gender, sexual orientation, mental disability, physical disability, medical condition, political beliefs, organizational affiliations, or marital status in the recruitment, selection for training including apprenticeship, hiring, employment, utilization, promotion, layoff, rates of pay or other forms of compensation. Nor shall CORPORATION discriminate in provision of services provided in this Contract because of age, race, color, national origin, ancestry, religion, sex/gender, sexual orientation, mental disability, physical disability, medical condition, political beliefs, organizational affiliations, or marital status. This non-discrimination provision must be included in CORPORATION’s contracts with sub- contractors and vendors when utilizing the grant funds disbursed for this program. 180 Page 10 of 21 FY 2016-17 General Fund Human Service Grants (HSG) City/Non-Profit Contract XVI. AMENDMENTS Other than the amendment related to a second year renewal option as stated in Section III. above, amendments to the terms or conditions of this Contract must be requested in writing by a duly authorized representative of the party desiring such amendments, and any such amendment shall be effective only upon the mutual agreement in writing of the parties hereto. XVII. INTEGRATED DOCUMENT This Contract contains the entire agreement between CITY and CORPORATION with respect to the subject matter hereof. No written or oral agreements with any officer, agent or employee of CITY prior to execution of this Contract shall affect or modify any of the terms of obligations contained in any documents comprising this Contract. XVIII. MISCELLANEOUS A. Headings. The captions and section headings used in this Contract are for convenience of reference only, and the words contained herein will, in no way, be held to explain, modify, amplify or aid in the interpretation, construction or meaning of the provisions of this Contract. B. Exhibits. All Exhibits attached hereto and referred to in this Contract are incorporated herein by this reference as if set forth fully herein. Exhibits are as follows: Exhibit “A” (PROGRAM Description), Exhibit “B” (PROGRAM Work Plan), Exhibit “C” (Proposed Implementation Time Schedule), Exhibit “D” (Program Budget), and Exhibit “E” (Insurance and Bond Requirements). C. Conflict of Interest. In accordance with Government Code Section 1090 and the Political Reform Act, Government Code Section 87100 et seq., except for approved eligible administrative or personnel costs, no person who is an employee, agent, consultant, officer, or any immediate family member of such person, or any elected or appointed official of the CITY who exercises or has exercised any functions or responsibilities with respect to the activities funded by this Contract or who is in a position to participate in a decision-making process, may obtain a personal or financial interest or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, during, or at any time after, such person's tenure. The CORPORATION shall exercise due diligence to ensure that the prohibition in this section is followed. Further, no person who is a director, officer, partner, trustee or employee or consultant of the CORPORATION, or immediate family member of any of the preceding, shall make or participate in a decision, made by the CITY or a CITY board, commission or committee, if it is reasonably foreseeable that the decision will have a material effect on any source of income, investment or interest in real property of that person or the CORPORATION. Interpretation of this section shall be governed by the definitions and provisions used in the Political Reform Act, Government Code Section 87100 et seq., its implementing regulations manual and codes, and Government Code Section 1090. 181 Page 11 of 21 FY 2016-17 General Fund Human Service Grants (HSG) City/Non-Profit Contract D. Interpretation. Each party to this Contract has had an opportunity to review the Contract, confer with legal counsel regarding the meaning of the Contract, and negotiate revisions to the Contract. Accordingly, neither party shall rely upon Civil Code Section 1654 in order to interpret any uncertainty in the meaning of the Contract. E. Third-Party Beneficiary. There shall be no third party beneficiaries to this Contract. F. Choice of Law and Venue. This Contract shall be governed by and construed in accordance with California law. Venue shall be Santa Clara County. G. Severability. If any term of this Contract is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall continue in full force and effect unless the rights and obligations of the parties have been materially altered or abridged by such invalidation, voiding or unenforceability. 182 Page 12 of 21 FY 2016-17 General Fund Human Service Grants (HSG) City/Non-Profit Contract IN WITNESS WHEREOF, the parties have executed this Contract the day and year above written. The parties signing below hereby warrant that they are duly authorized to execute this Contract. AGENCY: CITY OF CUPERTINO, a municipal corporation: By: _____________________________ By: _____________________________ (print name) (print name) ___________________________________ __________________________________ Insert Name Here Date David Brandt Date Executive Director City Manager APPROVED AS TO FORM AND ATTEST: LEGALITY: ___________________________________ _________________________________ Randolph Stevenson Hom Date Grace Schmidt Date City Attorney City Clerk EXPENDITURE DISTRIBUTION ACCOUNT NUMBER Insert Here AMOUNT PO#: Original Contract (1st Yr.): $ Contract Amendment (2nd Yr.): $ Total: $ 183 Page 13 of 21 FY 2016-17 General Fund Human Service Grants (HSG) City/Non-Profit Contract EXHIBIT A PROGRAM DESCRIPTION Agency Name: Executive Director: Project Manager: Grant # (For Office Use Only) Street Address: City: State: Zip Code: Telephone number: Fax Number: Project Manager E-mail Address: Name of Project/Program: Project/Program Location: Project Description: 184 Page 14 of 21 FY 2016-17 General Fund Human Service Grants (HSG) City/Non-Profit Contract EXHIBIT B PROGRAM WORK PLAN FY 2016/17 AGENCY NAME: PROGRAM NAME: Objectives Benchmarks for Each Quarter 1st 2nd 3rd 4th TOTAL 185 Page 15 of 21 FY 2016-17 General Fund Human Service Grants (HSG) City/Non-Profit Contract EXHIBIT C PROPOSED IMPLEMENTATION TIMELINE SCHEDULE FY 2016/17 AGENCY NAME: PROGRM NAME: Activity Number & Description: Activity # Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total 186 Page 16 of 21 FY 2016-17 General Fund Human Service Grants (HSG) City/Non-Profit Contract EXHIBIT D PROGRAM BUDGET FY 2016/17 Agency Name: Project Name: Proposed Project Expenses FY 2016/17 187 Page 17 of 21 FY 2016-17 General Fund Human Service Grants (HSG) City/Non-Profit Contract EXHIBIT E BASIC INSURANCE AND BOND REQUIREMENTS FOR NON-PROFIT CONTRACTS Definition of Contractor: The "Contractor" as the word is used in this Exhibit E is the party contracting with the City of Cupertino for the direct distribution of HSG funds. Indemnity The Contractor shall indemnify, defend, and hold harmless the City of Cupertino (hereinafter "City"), its officers, agents and employees from any loss, liability, claim, injury or damage arising out of, or in connection with performance of this Contract by Contractor and/or its agents, employees or subcontractors, excepting only loss, injury or damage caused solely by the acts or omissions of personnel employed by the City. It is the intent of the parties to this Contract to provide the broadest possible coverage for the City. The Contractor shall reimburse the City for all costs, attorneys' fees, expenses and liabilities incurred with respect to any litigation in which the Contractor is obligated to indemnify, defend and hold harmless the City under this Contract. Insurance Without limiting the Contractor's indemnification of the City, the Contractor shall provide and maintain at its own expense, during the term of this Contract, or as may be further required herein, the following insurance coverages and provisions: A. Evidence of Coverage Prior to commencement of this Contract, the Contractor shall provide on the City's own form or a form approved by the City's Insurance Manager an original plus one copy of a Certificate of Insurance certifying that coverage as required herein has been obtained and remains in force for the period required by this Contract. The contract number and project name must be stated on the Certificate of Insurance. The City's Special Endorsement form shall accompany the certificate. Individual endorsements executed by the insurance carrier may be substituted for the City's Special Endorsement form if they provide the coverage as required. In addition, a certified copy of the policy or policies shall be provided by the Contractor upon request. This verification of coverage shall be sent to the address as shown on the City's Certificate of Insurance form and to the Community Development Department at the address set forth in this Contract at Section VI. PROGRAM COORDINATION, Paragraph C., NOTICES. The Contractor shall not issue a Notice to Proceed with the work under this Contract until it has obtained all insurance required and such insurance has been approved by the City. This approval of insurance shall neither relieve nor decrease the liability of the Contractor. B. Notice of Cancellation of Reduction of Coverage All policies shall contain a special provision for thirty (30) days prior written notice of any cancellation or reduction in coverage to be sent to the Community Development Department, 10300 Torre Avenue, Cupertino, CA 95014. 188 Page 18 of 21 FY 2016-17 General Fund Human Service Grants (HSG) City/Non-Profit Contract C. Qualifying Insurers All policies shall be issued by companies which hold a current policy holder's alphabetic and financial size category rating of not less than A VIII, according to the current Best's Key Rating Guide, unless otherwise approved by the City's Insurance Manager. D. Insurance Required 1. Comprehensive General Liability Insurance - for bodily injury (including death) and property damage which provides limits of not less than one million dollars ($1,000,000) combined single limit (CSL) per occurrence. OR 2. Commercial General Liability Insurance - for bodily injury (including death) and property damage which provides limits as follows: a. General limit per occurrence - $1,000,000 b. General limit aggregate - $2,000,000 c. Products/Completed Operations- $1,000,000 aggregate d. Personal Injury limit - $1,000,000 If coverage is provided under a Commercial General Liability Insurance form, the carrier shall provide the City Insurance Manager with a quarterly report of the amount of aggregate limits expended to that date. If over 50% of the aggregate limits have been paid or reserved, the City may require additional coverage to be purchased by the Contractor to restore the required limits. 3. For either type of insurance, coverage shall include: a. Premises and Operations b. Products/Completed Operations with limits of one million dollars ($1,000,000) per occurrence/ aggregate to be maintained for two (2) years following acceptance of the work by the City. c. Contractual Liability expressly including liability assumed under this Contract. d. Personal Injury liability. e. Independent Contractors' (Protective) liability. f. Severability of Interest clause providing that the coverage applies separately to each insured except with respect to the limits of liability. 189 Page 19 of 21 FY 2016-17 General Fund Human Service Grants (HSG) City/Non-Profit Contract 4. For either type of insurance, coverage shall include the following endorsements, copies of which shall be provided to the City: a. Additional Insured Endorsement: Such insurance as is afforded by this policy shall also apply to the City of Cupertino, and members of the City Council, and the officers, agents and employees of the City of Cupertino, individually and collectively, as additional insureds. b. Primary Insurance Endorsement: Such insurance as is afforded by the additional insured endorsement shall apply as primary insurance, and other insurance maintained by the City of Cupertino, its officers, agents, and employees shall be excess only and not contributing with insurance provided under this policy. c. Notice of Cancellation or Change of Coverage Endorsement: This policy may not be cancelled nor the coverage reduced by the Company without 30 days prior written notice of such cancellation or reduction in coverage to the City of Cupertino at the address shown on the Certificate of Insurance. d. Contractual Liability Endorsement: This policy shall apply to liability assumed by the insured under written contract with the City of Cupertino. e. Personal Injury Endorsement: The provisions of this policy shall provide Personal Injury coverage. f. Severability of Interest Endorsement: The insurance afforded by this policy shall apply separately to each insured that is seeking coverage or against whom a claim is made or a suit is brought, except with respect to the Company's limit of liability. 5. Comprehensive Automobile Liability Insurance for bodily injury (including death) and property damage which provides total limits of not less than one million dollars ($1,000,000) combined single limit per occurrence applicable to all owned, non-owned and hired vehicles. 6. Worker's Compensation and Employer's Liability Insurance for: a. Statutory California Workers' Compensation coverage including a broad form all- states endorsement. 190 Page 20 of 21 FY 2016-17 General Fund Human Service Grants (HSG) City/Non-Profit Contract b. Employer's Liability coverage for not less than one million dollars ($1,000,000) per occurrence for all employees engaged in services or operations under this Contract. c. Inclusion of the City and its governing board(s), officers, representatives, agents, and employees as additional insureds, or a waiver of subrogation. 7. Professional Errors and Omissions Liability Insurance This type of insurance should be provided by persons/entities you contract with to provide you with professional services. a. Limits of not less than one million dollars ($1,000,000). b. If this policy contains a self retention limit, it shall not be greater than ten thousand dollars ($10,000) per occurrence/event. c. This coverage shall be maintained for a minimum of two (2) years following termination of this Contract. The City must first approve any exceptions to the above requirements. 8. Bond Requirements Fidelity Bond - Before receiving compensation under this Contract, Contractor will furnish City with evidence that all officials, employees, and agents handling or having access to funds received or disbursed under this Contract, or authorized to sign or countersign checks, are covered by a BLANKET FIDELITY BOND in an amount of AT LEAST fifteen percent (15%) of the maximum financial obligation of the City cited herein. If such bond is cancelled or reduced, Contractor will notify City immediately, and City may withhold further payment to Contractor until proper coverage has been obtained. Failure to give such notice may be cause for termination of this Contract, at the option of the City. 9. Special Provisions The following provisions shall apply to this Contract: a. The foregoing requirements as to the types and limits of insurance coverage to be maintained by the Contractor and any approval of said insurance by the City or its insurance consultant(s) are not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Contractor pursuant to this Contract, including but not limited to the provisions concerning indemnification. b. The City acknowledges that some insurance requirements contained in this Contract may be fulfilled by self-insurance on the part of the Contractor. 191 Page 21 of 21 FY 2016-17 General Fund Human Service Grants (HSG) City/Non-Profit Contract However, this shall not in any way limit liabilities assumed by the Contractor under this Contract. The City shall approve any self-insurance in writing. c. The City reserves the right to withhold payments to the Contractor in the event of material noncompliance with the insurance requirements outlined above. d. If the Contractor fails to maintain such insurance as is called for herein, the City must order the Contractor to immediately suspend work at Contractor's expense until a new policy of insurance is in effect. 192 Page 1 of 21 FY 2016-17 Below Market-Rate (BMR) Affordable Housing Fund (AHF) City/Non-Profit Contract BELOW MARKET-RATE (BMR) AFFORDABLE HOUSING FUND (AHF) CITY/NON-PROFIT CONTRACT (Services Only) THIS Below Market-Rate (BMR) Affordable Housing Fund (AHF) City/Non-Profit Contract (the "Contract") is entered into between the CITY OF CUPERTINO, a political subdivision of the State of California (hereinafter “CITY”), and ________________________________________________ a non-profit public benefit corporation (hereinafter “CORPORATION”). The allocation of funds pursuant to this Contract will be a grant. CITY approved the allocation and disbursement of Below Market-Rate (BMR) Affordable Housing Funds (AHF) funds (hereinafter “Grant”) to CORPORATION on _________________. WITNESSETH WHEREAS, CITY has reserved a portion of its BMR AHF funds to be used on activities that benefit Cupertino’s residents; and, WHEREAS, CITY has agreed to the use by CORPORATION of a portion of CITY’S BMR AHF budget for the Program as described below to be operated within CITY and will benefit low and very low-income households; NOW, THEREFORE, the parties agree as follows; I. PROGRAM CITY agrees to allocate a portion of its current BMR AHF budget to CORPORATION, being the sum of _______________________________________________ for the purpose of implementing the CORPORATION’S program (hereinafter “Program”), as more particularly described in numerous exhibits marked as noted herein, attached to this Contract, incorporated by this reference, as though fully set forth, as follows: Exhibit “A” (Program Description), Exhibit “B” (Program Work Plan), Exhibit “C” (Proposed Implementation Time Schedule), Exhibit “D” (Program Budget), and Exhibit “E” (Insurance and Bond Requirements). II. TERM A. The purpose of this Contract is for the CITY to disburse BMR AHF funds for eligible activities. Unless amended prior to its expiration, the term of this Contract for disbursement purposes will begin on ________________ and will end on _______________ unless terminated earlier pursuant to Section VII or Section VIII of this Contract. B. The term of the expenditure by CORPORATION of the allocation provided for herein will begin on _________________ and terminate on the earliest of the following dates as set forth herein: _________________, or later date per amendment to this Contract; or upon the termination date established pursuant to Section VII or Section VIII of this Contract. 193 Page 2 of 21 FY 2016-17 Below Market-Rate (BMR) Affordable Housing Fund (AHF) City/Non-Profit Contract III. SECOND YEAR RENEWAL OPTIONS The term of this Contract may be extended by an amendment to disburse the CITY’S Grant funds authorized by City Council for the fiscal year subsequent to the initial term of this Contract, contingent on the following requirements and process: A. Authorization by CITY to expend funds for the purposes of this Contract; B. CITY’S appropriation of funds for this Program; C. CORPORATION’S satisfactory performance, as determined by the CITY, of all it’s obligations as stated in this Contract; D. Submission to CITY of Proof of Insurance. IV. OBLIGATIONS OF CORPORATION A. Organization of CORPORATION. CORPORATION will: 1. Provide CITY with copies of the following documents, evidencing filing with the appropriate governmental agency: a) Its Articles of Incorporation under the laws of the State of California; b) A copy of the current Bylaws of CORPORATION; c) Documentation of its Internal Revenue Service non-profit status; d) Names and addresses of the current Board of Directors of CORPORATION; and, e) An adopted copy of CORPORATION’S personnel policies and procedures. 2. During the Contract term, immediately report any changes, subsequent to the date of this Contract, in CORPORATION’S Articles of Incorporation, Bylaws, Board of Directors, personnel policies and procedures, or tax exempt status to DIRECTOR. 3. Maintain no member of its Board of Directors as a paid employee, agent, independent contractor, or subcontractor under this Contract. 4. Open to the public, meetings of its Board of Directors, if required by California’s open meeting laws, except meetings, or portions thereof, dealing with personnel or litigation matters or as otherwise provided by law. 5. Keep minutes of all its regular and special meetings. 194 Page 3 of 21 FY 2016-17 Below Market-Rate (BMR) Affordable Housing Fund (AHF) City/Non-Profit Contract 6. Comply with all provisions of California and Federal Non-Profit Corporation Laws. 7. Provide to the CITY a copy of a resolution authorizing the CORPORATION's execution of this Contract. The CORPORATION hereby warrants to the CITY that this Contract is a legal, valid, and binding obligation of the CORPORATION enforceable in accordance with its terms, and that the execution and delivery of this Contract and the performance of the CORPORATION's obligations have been duly authorized by the CORPORATION. B. Program Performance by CORPORATION. CORPORATION shall: 1. Conduct the PROGRAM within the City of Cupertino, for the purpose of benefiting low and very low-income households. 2. File quarterly reports as required by CITY on the type and number of services rendered through the operation of the PROGRAM, and a description of the beneficiaries of these services, and which reports will evaluate the manner in which the PROGRAM is achieving its objectives and goals according to the standards established by CITY. The progress reports will be due ten days after the close of each reporting period and must cover the three months immediately preceding the date on which the report is filed. 3. Coordinate its services with other existing organizations providing similar services in order to foster community cooperation and to avoid unnecessary duplication of services. 4. Seek out and apply for other sources of revenue in support of its operation or services from local, state, federal and private sources and, in the event of receipt of such award, inform CITY within ten days. 5. Include an acknowledgement of CITY funding and support on CORPORATION stationery and on all appropriate program-related publicity and publications using words to the effect: “funded in whole or in part by the City of Cupertino General Funds.” C. Fiscal Responsibilities of CORPORATION. CORPORATION will: 1. Appoint and submit the name of a fiscal agent who will be responsible for the financial and accounting activities of CORPORATION, including the receipt and disbursement of CORPORATION funds. The CITY must immediately be notified in writing of the appointment of any new fiscal agent and that agent’s name. 2. If the term of this Contract is extended by an amendment for a second fiscal year, submit a satisfactory Audit within 150 days of CORPORATION’s fiscal year encompassed by the first year of this Contract. 195 Page 4 of 21 FY 2016-17 Below Market-Rate (BMR) Affordable Housing Fund (AHF) City/Non-Profit Contract 3. Document all PROGRAM costs by maintaining records in accordance with Section III, Paragraph D below. 4. Submit to the CITY, based on an agreed upon schedule, a request for payment, together with all supporting documentation. Invoices requesting disbursements submitted after the expiration of the Contract will be honored only for eligible charges incurred during the Contract term. All invoices must be submitted by the Contract expiration date or within such other time period specified by the CITY for this Contract term. Funds not disbursed will be returned to the City for future reallocation. 5. Certify current and continuous insurance coverage, subject to CITY approval and in accordance with requirements as outlined in Exhibit E, “Insurance and Bond Requirements.” 6. Items 1) through 5) above are express conditions precedent to disbursement of any CITY funding and failure to comply with these conditions will, at discretion of CITY, result in suspension of funding or termination of this Contract. 7. If CORPORATION does not use Grant funds in accordance with the requirements of this Contract; CORPORATION is liable for repayment of all disallowed costs. Disallowed costs may be identified through audits, monitoring or other sources. CORPORATION is required to respond to any adverse findings, which may lead to disallowed costs subject to provisions of OMB Circular A-122, “Cost Principles for Non- Profit Organizations.” D. Establishment and Maintenance of Records. CORPORATION shall: 1. Maintain complete and accurate records of all its transactions including, but not limited to, contracts, invoices, time cards, cash receipts, vouchers, canceled checks, bank statements, client statistical records, personnel, property and all other pertinent records sufficient to reflect properly (a) all direct and indirect costs of whatever nature claimed to have been incurred or anticipated to be incurred to perform this Contract or to operate the PROGRAM, and (b) all other matters covered by this Contract. 2. Maintain client data demonstrating client eligibility for services provided for the Program. Such data will include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information will be made available to CITY monitors for review upon request. E. Preservation of Records. CORPORATION will preserve and make available its records: 1. Until five years following date of final payment of this contract, or 2. For such longer period, if any as is required by applicable law; or 196 Page 5 of 21 FY 2016-17 Below Market-Rate (BMR) Affordable Housing Fund (AHF) City/Non-Profit Contract 3. If this Contract is completely or partially terminated, the records relating to the work terminated will be preserved and made available for a period of five years from the date of termination. F. Examination of Records and Facilities. At any time during normal business hours, and as often as may be deemed necessary, CORPORATION agrees that the CITY, and/or any duly authorized representatives may until expiration of (a) five years after final payment under this Contract, (b) five years from the date of termination of this Contract, or (c) such longer period as may be described by applicable law, have access to and the right to examine its plants, offices and facilities used in the performance of this Contract or the operation of the PROGRAM, and all its records with respect to the PROGRAM and all matters covered by this Contract. CORPORATION also agrees that CITY or any duly authorized representatives will have the right to audit, examine, and make excerpts or transactions of and from, such records and to make audits of all contracts and subcontracts, invoices, payrolls, records of personnel, conditions of employment, materials and all other data relating to the PROGRAM and matters covered by this Contract. CORPORATION will be notified in advance that an audit will be conducted. CORPORATION will be required to respond to any audit findings, and have the responses included in the final audit report. The cost of any such audit will be borne by CITY. G. Compliance with Law. CORPORATION will become familiar and comply with and cause all its subcontractors, independent contractors, and employees, if any, to become familiar and comply with all applicable federal, state and local laws, ordinances, codes, regulations and decrees. H. Suspension and Termination. Suspension or termination of this Contract may occur if the CORPORATION materially fails to comply with any term of the award, and that the award may be terminated for convenience. I. Reversion of Assets. Upon expiration or termination of this Contract, the CORPORATION will transfer to the CITY any BMR AHF funds on hand at the time of expiration and any accounts receivable attributable to the use of funds. V. OBLIGATIONS OF CITY A. Method of Payment. During the term of this Contract, CITY shall disburse BMR AHF funds to CORPORATION on a reimbursement basis unless otherwise provided herein for all allowable costs and expenses incurred in connection with the PROGRAM, not to exceed the total sum of ______________________________________________. CITY may, at any time in its absolute discretion, elect to suspend or terminate payment to CORPORATION, in whole or in part, pursuant to this Contract based on CORPORATION’S non-compliance, including, but not limited to, incomplete documentation of expenses, failure to substantially meet goals and objectives as required in Exhibit B, (“Program Work Plan”), failure to submit adequate progress reports as required herein or other incidents of non-compliance as described in Section VI, Paragraph B of this Contract or based on the refusal by CORPORATION to accept any additional conditions that may be imposed by City at any time to ensure compliance with the terms of this Contract. 197 Page 6 of 21 FY 2016-17 Below Market-Rate (BMR) Affordable Housing Fund (AHF) City/Non-Profit Contract VI. PROGRAM COORDINATION A. CITY. The CITY Executive will assign a single DIRECTOR for CITY who will render overall supervision of the progress and performance of this Contract by CITY. All services agreed to be performed by CITY will be at the overall direction of the DIRECTOR. B. CORPORATION. As of the date hereof, CORPORATION has designated __________________________________ to serve as EXECUTIVE DIRECTOR and to assume overall responsibility for the progress and execution of this Contract. The CITY will be immediately notified in writing of the appointment of a new EXECUTIVE DIRECTOR. C. NOTICES. All notices or other correspondence required or contemplated by this Contract shall be sent to the parties at the following addresses: CITY: _______________________________ _______________________________ _______________________________ _______________________________ _______________________________ CORPORATION: _______________________________ _______________________________ _______________________________ _______________________________ _______________________________ All notices will either be hand delivered or sent by United States mail, registered or certified, postage prepaid. Notices given in such a manner will be deemed received when hand delivered or seventy-two (72) hours after deposit in the United States mail. Any party may change his or her address for the purpose of this section by giving five days written notice of such change to the other party in the manner provided in this section. VII. CONTRACT COMPLIANCE A. Monitoring and Evaluation of Services. Evaluation and monitoring of the PROGRAM performance is the mutual responsibility of both CITY and CORPORATION. CORPORATION must furnish all data, statements, records, information and reports necessary for DIRECTOR to monitor, review and evaluate the performance of the PROGRAM and its components. CITY will have the right to request the services of an outside agent to assist in any such evaluation. Such services shall be paid for by CITY. B. Contract Noncompliance. If CORPORATION fails to comply with any provision of this Contract; CITY will have the right to require corrective action to enforce compliance with such provision as well as the right to suspend or terminate this Contract. Examples of noncompliance include, but are not limited to: 198 Page 7 of 21 FY 2016-17 Below Market-Rate (BMR) Affordable Housing Fund (AHF) City/Non-Profit Contract 1. If CORPORATION (with or without knowledge) has made any material misrepresentation of any nature with respect to any information or data furnished to CITY in connection with the PROGRAM. 2. If there is pending litigation with respect to the performance by CORPORATION if any of its duties or obligations under this Contract, which may materially jeopardize or adversely affect the undertaking of or the carrying out of the PROGRAM. 3. If CORPORATION has taken any action pertaining to the PROGRAM, which action required CITY approval, and such approval was not obtained. 4. If CORPORATION is in default under any provision of this Contract. 5. If CORPORATION makes illegal use of CITY funds. 6. If CORPORATION submits to CITY any report which is incorrect or incomplete in any material respect. 7. If CORPORATION fails to meet the stated objectives in Exhibit B (“Program Work Plan”). C. Corrective Action Procedure. CITY, in its absolute discretion and in lieu of immediately terminating this Contract upon occurrence or discovery of noncompliance by CORPORATION pursuant to this Contract, will have the right to give CORPORATION notice of CITY’S intention to consider corrective action to enforce compliance. Such notice must indicate the nature of the non-compliance and the procedure whereby CORPORATION will have the opportunity to participate in formulating any corrective action recommendation. CITY will have the right to require the presence of CORPORATION’S officer(s) and EXECUTIVE DIRECTOR at any hearing or meeting called for the purpose of considering corrective action. In the event that CORPORATION does not implement the corrective action recommendations in accordance with the corrective action timetable, CITY may suspend payments hereunder or terminate this Contract as set forth in Section VIII below. VIII. TERMINATION A. Termination for Cause. CITY may terminate this Contract by providing written notice to CORPORATION, for any of the following reasons: uncorrected Contract non-compliance as defined in Section VII, Paragraph B; CORPORATION is in bankruptcy or receivership; a member of the CORPORATION’S Board of Directors or the executive director is found to have committed fraud or; there is reliable evidence that CORPORATION is unable to complete the Program as described in the attached Exhibits. The date of termination will be as specified in the notice. B. Termination for Convenience. In addition to the CITY’S right to terminate for cause set forth in Section VII, either CITY or CORPORATION may suspend or terminate this Contract 199 Page 8 of 21 FY 2016-17 Below Market-Rate (BMR) Affordable Housing Fund (AHF) City/Non-Profit Contract for any reason by giving thirty (30) days prior written notice to the other party. Upon receipt of such notice, performance of the services hereunder will be immediately discontinued. C. In the event that this Contract is terminated, CORPORATON may be required to return funds to the CITY. D. Upon termination of this Contract, CORPORATION must immediately provide CITY access to all documents, records, payroll, minutes of meetings, correspondence and all other data pertaining to Grant made to CORPORATION pursuant to this Contract. IX. PROGRAM INCOME Income generated by the Program, is considered Program Income. CORPORATION will annually report all program income generated by activities carried out with grant funds made available under this Contract. By way of further limitations, CORPORATION may use such income during the Contract period for activities permitted under this Contract and shall reduce requests for additional funds by the amount of any such program income balance on hand. All unused program income shall be returned to the CITY at the end of the Contract period. X. INDEPENDENT CONTRACTOR This is a Contract by and between independent contractors and is not intended and will not be construed to create the relationship of agent, servant, employee, partnership, joint venture or association between CORPORATION and CITY. CORPORATION, including its officers, employees, agents or independent contractors or subcontractors, shall not have any claim under this Contract or otherwise against CITY for any Social Security, Worker’s Compensation, or employee benefits extended to employees of CITY. XI. ASSIGNABILITY CITY is entering into this Contract based on the experience, skill, and ability to perform of the CORPORATION. The CORPORATION recognizes that its qualifications and identify are of particular concern to the CITY in view of the CITY's interest in providing services to lower income persons and the CITY's reliance on the unique qualifications of the CORPORATION. Consequently, this Contract may not be assigned to another CORPORATION, person, partnership or any other entity without the prior written approval of CITY. None of the work or services to be performed hereunder may be assigned, delegated or subcontracted to third parties without the prior written approval of CITY, which the CITY may withhold in its sole discretion. Copies of all third party contracts shall be submitted to CITY at least ten days prior to the proposed effective date. In the event CITY approves of any such assignment, delegation or sub- contract, the subcontractors, assignees or delegates CORPORATION shall remain fully liable for all obligations and requirements under this Contract, including the performance and any liabilities attaching to the assignees' actions or omissions. 200 Page 9 of 21 FY 2016-17 Below Market-Rate (BMR) Affordable Housing Fund (AHF) City/Non-Profit Contract XII. DISCLOSURE OF CONFIDENTIAL CLIENT INFORMATION CORPORATION agrees to maintain client records consistent with applicable laws regarding personal privacy and obligations of confidentiality. XIII. HOLD HARMLESS In addition to the indemnity obligations set forth in Exhibit E, “Insurance and Bond Requirements,” CORPORATION will indemnify and hold harmless the CITY, its employees, agents, and officials, members of boards and commissions, from any and all claims, actions, suits, charges and judgments whatsoever, with respect to any damages, including attorney’s fees and court costs, arising out of the failure of the CORPORATION’s Program to comply with applicable laws, ordinances, codes, regulations and decrees, including without limitation those set forth in Exhibit E, “Certifications.” XIV. WAIVER OF RIGHTS AND REMEDIES In no event will any payment by CITY constitute or be construed to be a waiver by CITY of any breach of the covenants or conditions of this Contract or any default which may then exist on the part of CORPORATION, and the making of any such payment while any such breach or default will in no way impair or prejudice any right or remedy available to CITY with respect touch breach or default. In no event will payment to CORPORATION by CITY in any way constitute a waiver by CITY of its rights to recover from CORPORATION the amount of money paid to CORPORATION on any item, which is not eligible for payment under the PROGRAM or this Contract. XV. NON-DISCRIMINATION CORPORATION will comply with all applicable Federal, State and local laws and regulations including the City of Cupertino’s policies concerning nondiscrimination and equal opportunity in contracting. Such laws include but are not limited to the following: Title VII of the Civil Rights Act of 1964 as amended; Americans with Disabilities Act of 1990; The Rehabilitation Act of 1973 (Sections 503 and 504); California Fair Employment and Housing Act (Government Code sections 12900 et seq.); and California Labor Code sections 1101 and 1102. CORPORATION will not discriminate against any subcontractor, employee, or applicant for employment because of age, race, color, national origin, ancestry, religion, sex/gender, sexual orientation, mental disability, physical disability, medical condition, political beliefs, organizational affiliations, or marital status in the recruitment, selection for training including apprenticeship, hiring, employment, utilization, promotion, layoff, rates of pay or other forms of compensation. Nor shall CORPORATION discriminate in provision of services provided in this Contract because of age, race, color, national origin, ancestry, religion, sex/gender, sexual orientation, mental disability, physical disability, medical condition, political beliefs, organizational affiliations, or marital status. This non-discrimination provision must be included in CORPORATION’s contracts with sub- contractors and vendors when utilizing the grant funds disbursed for this program. 201 Page 10 of 21 FY 2016-17 Below Market-Rate (BMR) Affordable Housing Fund (AHF) City/Non-Profit Contract XVI. AMENDMENTS Other than the amendment related to a second year renewal option as stated in Section III. above, amendments to the terms or conditions of this Contract must be requested in writing by a duly authorized representative of the party desiring such amendments, and any such amendment shall be effective only upon the mutual agreement in writing of the parties hereto. XVII. INTEGRATED DOCUMENT This Contract contains the entire agreement between CITY and CORPORATION with respect to the subject matter hereof. No written or oral agreements with any officer, agent or employee of CITY prior to execution of this Contract shall affect or modify any of the terms of obligations contained in any documents comprising this Contract. XVIII. MISCELLANEOUS A. Headings. The captions and section headings used in this Contract are for convenience of reference only, and the words contained herein will, in no way, be held to explain, modify, amplify or aid in the interpretation, construction or meaning of the provisions of this Contract. B. Exhibits. All Exhibits attached hereto and referred to in this Contract are incorporated herein by this reference as if set forth fully herein. Exhibits are as follows: Exhibit “A” (PROGRAM Description), Exhibit “B” (PROGRAM Work Plan), Exhibit “C” (Proposed Implementation Time Schedule), Exhibit “D” (Program Budget), and Exhibit “E” (Insurance and Bond Requirements). C. Conflict of Interest. In accordance with Government Code Section 1090 and the Political Reform Act, Government Code Section 87100 et seq., except for approved eligible administrative or personnel costs, no person who is an employee, agent, consultant, officer, or any immediate family member of such person, or any elected or appointed official of the CITY who exercises or has exercised any functions or responsibilities with respect to the activities funded by this Contract or who is in a position to participate in a decision-making process, may obtain a personal or financial interest or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, during, or at any time after, such person's tenure. The CORPORATION shall exercise due diligence to ensure that the prohibition in this section is followed. Further, no person who is a director, officer, partner, trustee or employee or consultant of the CORPORATION, or immediate family member of any of the preceding, shall make or participate in a decision, made by the CITY or a CITY board, commission or committee, if it is reasonably foreseeable that the decision will have a material effect on any source of income, investment or interest in real property of that person or the CORPORATION. Interpretation of this section shall be governed by the definitions and provisions used in the Political Reform Act, Government Code Section 87100 et seq., its implementing regulations manual and codes, and Government Code Section 1090. 202 Page 11 of 21 FY 2016-17 Below Market-Rate (BMR) Affordable Housing Fund (AHF) City/Non-Profit Contract D. Interpretation. Each party to this Contract has had an opportunity to review the Contract, confer with legal counsel regarding the meaning of the Contract, and negotiate revisions to the Contract. Accordingly, neither party shall rely upon Civil Code Section 1654 in order to interpret any uncertainty in the meaning of the Contract. E. Third-Party Beneficiary. There shall be no third party beneficiaries to this Contract. F. Choice of Law and Venue. This Contract shall be governed by and construed in accordance with California law. Venue shall be Santa Clara County. G. Severability. If any term of this Contract is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall continue in full force and effect unless the rights and obligations of the parties have been materially altered or abridged by such invalidation, voiding or unenforceability. 203 Page 12 of 21 FY 2016-17 Below Market-Rate (BMR) Affordable Housing Fund (AHF) City/Non-Profit Contract IN WITNESS WHEREOF, the parties have executed this Contract the day and year above written. The parties signing below hereby warrant that they are duly authorized to execute this Contract. AGENCY: CITY OF CUPERTINO, a municipal corporation: By: _____________________________ By: _____________________________ (print name) (print name) ___________________________________ __________________________________ Insert Name Here Date David Brandt Date Executive Director City Manager APPROVED AS TO FORM AND ATTEST: LEGALITY: ___________________________________ _________________________________ Randolph Stevenson Hom Date Grace Schmidt Date City Attorney City Clerk EXPENDITURE DISTRIBUTION ACCOUNT NUMBER Insert Here AMOUNT PO#: Original Contract (1st Yr.): $ Contract Amendment (2nd Yr.): $ Total: $ 204 Page 13 of 21 FY 2016-17 Below Market-Rate (BMR) Affordable Housing Fund (AHF) City/Non-Profit Contract EXHIBIT A PROGRAM DESCRIPTION Agency Name: Executive Director: Project Manager: Grant # (For Office Use Only) Street Address: City: State: Zip Code: Telephone number: Fax Number: Project Manager E-mail Address: Name of Project/Program: Project/Program Location: Project Description: 205 Page 14 of 21 FY 2016-17 Below Market-Rate (BMR) Affordable Housing Fund (AHF) City/Non-Profit Contract EXHIBIT B PROGRAM WORK PLAN FY 2016/17 AGENCY NAME: PROGRAM NAME: Objectives Benchmarks for Each Quarter 1st 2nd 3rd 4th TOTAL 206 Page 15 of 21 FY 2016-17 Below Market-Rate (BMR) Affordable Housing Fund (AHF) City/Non-Profit Contract EXHIBIT C PROPOSED IMPLEMENTATION TIMELINE SCHEDULE FY 2016/17 AGENCY NAME: PROGRM NAME: Activity Number & Description: Activity # Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total 207 Page 16 of 21 FY 2016-17 Below Market-Rate (BMR) Affordable Housing Fund (AHF) City/Non-Profit Contract EXHIBIT D PROGRAM BUDGET FY 2016/17 Agency Name: Project Name: Proposed Project Expenses FY 2016/17 Total Expenses 208 Page 17 of 21 FY 2016-17 Below Market-Rate (BMR) Affordable Housing Fund (AHF) City/Non-Profit Contract EXHIBIT E BASIC INSURANCE AND BOND REQUIREMENTS FOR NON-PROFIT CONTRACTS Definition of Contractor: The "Contractor" as the word is used in this Exhibit E is the party contracting with the City of Cupertino for the direct distribution of BMR AHF funds. Indemnity The Contractor shall indemnify, defend, and hold harmless the City of Cupertino (hereinafter "City"), its officers, agents and employees from any loss, liability, claim, injury or damage arising out of, or in connection with performance of this Contract by Contractor and/or its agents, employees or subcontractors, excepting only loss, injury or damage caused solely by the acts or omissions of personnel employed by the City. It is the intent of the parties to this Contract to provide the broadest possible coverage for the City. The Contractor shall reimburse the City for all costs, attorneys' fees, expenses and liabilities incurred with respect to any litigation in which the Contractor is obligated to indemnify, defend and hold harmless the City under this Contract. Insurance Without limiting the Contractor's indemnification of the City, the Contractor shall provide and maintain at its own expense, during the term of this Contract, or as may be further required herein, the following insurance coverages and provisions: A. Evidence of Coverage Prior to commencement of this Contract, the Contractor shall provide on the City's own form or a form approved by the City's Insurance Manager an original plus one copy of a Certificate of Insurance certifying that coverage as required herein has been obtained and remains in force for the period required by this Contract. The contract number and project name must be stated on the Certificate of Insurance. The City's Special Endorsement form shall accompany the certificate. Individual endorsements executed by the insurance carrier may be substituted for the City's Special Endorsement form if they provide the coverage as required. In addition, a certified copy of the policy or policies shall be provided by the Contractor upon request. This verification of coverage shall be sent to the address as shown on the City's Certificate of Insurance form and to the Community Development Department at the address set forth in this Contract at Section VI. PROGRAM COORDINATION, Paragraph C., NOTICES. The Contractor shall not issue a Notice to Proceed with the work under this Contract until it has obtained all insurance required and such insurance has been approved by the City. This approval of insurance shall neither relieve nor decrease the liability of the Contractor. B. Notice of Cancellation of Reduction of Coverage All policies shall contain a special provision for thirty (30) days prior written notice of any cancellation or reduction in coverage to be sent to the Community Development Department, 10300 Torre Avenue, Cupertino, CA 95014. 209 Page 18 of 21 FY 2016-17 Below Market-Rate (BMR) Affordable Housing Fund (AHF) City/Non-Profit Contract C. Qualifying Insurers All policies shall be issued by companies which hold a current policy holder's alphabetic and financial size category rating of not less than A VIII, according to the current Best's Key Rating Guide, unless otherwise approved by the City's Insurance Manager. D. Insurance Required 1. Comprehensive General Liability Insurance - for bodily injury (including death) and property damage which provides limits of not less than one million dollars ($1,000,000) combined single limit (CSL) per occurrence. OR 2. Commercial General Liability Insurance - for bodily injury (including death) and property damage which provides limits as follows: a. General limit per occurrence - $1,000,000 b. General limit aggregate - $2,000,000 c. Products/Completed Operations- $1,000,000 aggregate d. Personal Injury limit - $1,000,000 If coverage is provided under a Commercial General Liability Insurance form, the carrier shall provide the City Insurance Manager with a quarterly report of the amount of aggregate limits expended to that date. If over 50% of the aggregate limits have been paid or reserved, the City may require additional coverage to be purchased by the Contractor to restore the required limits. 3. For either type of insurance, coverage shall include: a. Premises and Operations b. Products/Completed Operations with limits of one million dollars ($1,000,000) per occurrence/ aggregate to be maintained for two (2) years following acceptance of the work by the City. c. Contractual Liability expressly including liability assumed under this Contract. d. Personal Injury liability. e. Independent Contractors' (Protective) liability. f. Severability of Interest clause providing that the coverage applies separately to each insured except with respect to the limits of liability. 210 Page 19 of 21 FY 2016-17 Below Market-Rate (BMR) Affordable Housing Fund (AHF) City/Non-Profit Contract 4. For either type of insurance, coverage shall include the following endorsements, copies of which shall be provided to the City: a. Additional Insured Endorsement: Such insurance as is afforded by this policy shall also apply to the City of Cupertino, and members of the City Council, and the officers, agents and employees of the City of Cupertino, individually and collectively, as additional insureds. b. Primary Insurance Endorsement: Such insurance as is afforded by the additional insured endorsement shall apply as primary insurance, and other insurance maintained by the City of Cupertino, its officers, agents, and employees shall be excess only and not contributing with insurance provided under this policy. c. Notice of Cancellation or Change of Coverage Endorsement: This policy may not be cancelled nor the coverage reduced by the Company without 30 days prior written notice of such cancellation or reduction in coverage to the City of Cupertino at the address shown on the Certificate of Insurance. d. Contractual Liability Endorsement: This policy shall apply to liability assumed by the insured under written contract with the City of Cupertino. e. Personal Injury Endorsement: The provisions of this policy shall provide Personal Injury coverage. f. Severability of Interest Endorsement: The insurance afforded by this policy shall apply separately to each insured that is seeking coverage or against whom a claim is made or a suit is brought, except with respect to the Company's limit of liability. 5. Comprehensive Automobile Liability Insurance for bodily injury (including death) and property damage which provides total limits of not less than one million dollars ($1,000,000) combined single limit per occurrence applicable to all owned, non-owned and hired vehicles. 6. Worker's Compensation and Employer's Liability Insurance for: a. Statutory California Workers' Compensation coverage including a broad form all- states endorsement. 211 Page 20 of 21 FY 2016-17 Below Market-Rate (BMR) Affordable Housing Fund (AHF) City/Non-Profit Contract b. Employer's Liability coverage for not less than one million dollars ($1,000,000) per occurrence for all employees engaged in services or operations under this Contract. c. Inclusion of the City and its governing board(s), officers, representatives, agents, and employees as additional insureds, or a waiver of subrogation. 7. Professional Errors and Omissions Liability Insurance This type of insurance should be provided by persons/entities you contract with to provide you with professional services. a. Limits of not less than one million dollars ($1,000,000). b. If this policy contains a self retention limit, it shall not be greater than ten thousand dollars ($10,000) per occurrence/event. c. This coverage shall be maintained for a minimum of two (2) years following termination of this Contract. The City must first approve any exceptions to the above requirements. 8. Bond Requirements Fidelity Bond - Before receiving compensation under this Contract, Contractor will furnish City with evidence that all officials, employees, and agents handling or having access to funds received or disbursed under this Contract, or authorized to sign or countersign checks, are covered by a BLANKET FIDELITY BOND in an amount of AT LEAST fifteen percent (15%) of the maximum financial obligation of the City cited herein. If such bond is cancelled or reduced, Contractor will notify City immediately, and City may withhold further payment to Contractor until proper coverage has been obtained. Failure to give such notice may be cause for termination of this Contract, at the option of the City. 9. Special Provisions The following provisions shall apply to this Contract: a. The foregoing requirements as to the types and limits of insurance coverage to be maintained by the Contractor and any approval of said insurance by the City or its insurance consultant(s) are not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Contractor pursuant to this Contract, including but not limited to the provisions concerning indemnification. b. The City acknowledges that some insurance requirements contained in this Contract may be fulfilled by self-insurance on the part of the Contractor. 212 Page 21 of 21 FY 2016-17 Below Market-Rate (BMR) Affordable Housing Fund (AHF) City/Non-Profit Contract However, this shall not in any way limit liabilities assumed by the Contractor under this Contract. The City shall approve any self-insurance in writing. c. The City reserves the right to withhold payments to the Contractor in the event of material noncompliance with the insurance requirements outlined above. d. If the Contractor fails to maintain such insurance as is called for herein, the City must order the Contractor to immediately suspend work at Contractor's expense until a new policy of insurance is in effect. 213 Page 1 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM CITY/NON-PROFIT PUBLIC SERVICE CONTRACT THIS Community Development Block Grant Program City/Non-Profit Contract (the “Contract”) is entered into pursuant to the Catalog of Federal Domestic Assistance (CFDA) 14.218 by and between the CITY OF CUPERTINO, a political subdivision of the State of California (hereinafter “CITY”), and ________________________________________________ a non-profit public benefit corporation (hereinafter “CORPORATION”). The allocation of funds pursuant to this Contract will be a grant. CITY approved the allocation and disbursement of Community Development Block Grant (hereinafter “CDBG”) funds to CORPORATION on _________________. WITNESSETH WHEREAS, CITY has applied for and received CDBG Entitlement Program funds (hereinafter “PROGRAM”) from the United States Department of Housing and Urban Development (hereinafter “HUD”) as an entitlement jurisdiction pursuant to the provisions of Title 1 of the Housing and Community Development Act of 1974, Public Law 93-383 as amended; and, WHEREAS, CITY has agreed to the use by CORPORATION, as a subrecipient for eligible public service activities, of a portion of CITY’S CDBG entitlement for the Program as described below to be operated within CITY and will benefit low and very low-income households or meet another National Objective of the CDBG Program; NOW, THEREFORE, the parties agree as follows; I. PROGRAM CITY agrees to allocate a portion of its current CDBG entitlement, and/or program income as defined in 24 CFR 570 Subpart J, “Grant Administration,” to CORPORATION as a subrecipient, being the sum of ___________________________________________________ for the purpose of implementing the CORPORATION’S program (hereinafter “Program”), as more particularly described in numerous exhibits marked as noted herein, attached to this Contract, incorporated by this reference, as though fully set forth, as follows: Exhibit “A” (Program Description), Exhibit “B” (Program Work Plan), Exhibit “C” (Proposed Implementation Time Schedule), Exhibit “D” (Program Budget), Exhibit “E” (Insurance and Bond Requirements), Exhibit “F” (Assurances).. II. TERM A. The purpose of this Contract is for the CITY to disburse CDBG funds for eligible activities. Unless amended prior to its expiration, the term of this Contract for disbursement 214 Page 2 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract purposes will begin on ______________ and will end on ________________unless terminated earlier pursuant to Section VI or Section VII of this Contract. B. The term of the expenditure by CORPORATION of the allocation provided for herein will begin on _________________ and terminate on the earliest of the following dates as set forth herein: _________________, or later date per amendment to this Contract; or upon the termination date established pursuant to Section VI or Section VII of this Contract. III. SECOND YEAR RENEWAL OPTIONS The term of this Contract may be extended by an amendment to disburse the CITY’S CDBG funds authorized by HUD for the fiscal year subsequent to the initial term of this Contract, contingent on the following requirements and process: A. Receipt of written authorization by CITY from the U.S. Department of Housing and Community Development (HUD) to expend funds for the purposes of this Contract; B. CITY’S appropriation of funds for this Program; C. CORPORATION’S satisfactory performance, as determined by the CITY, of all its obligations as stated in this Contract; D. Submission to CITY of Proof of Insurance. IV. OBLIGATIONS OF CORPORATION A. Organization of CORPORATION. CORPORATION will: 1. Provide CITY with copies of the following documents, evidencing filing with the appropriate governmental agency: a) Its Articles of Incorporation under the laws of the State of California; b) A copy of the current Bylaws of CORPORATION; c) Documentation of its Internal Revenue Service non-profit status; d) Names and addresses of the current Board of Directors of CORPORATION; and, e) An adopted copy of CORPORATION’S personnel policies and procedures. 2. During the Contract term, immediately report any changes, subsequent to the date of this Contract, in CORPORATION’S Articles of Incorporation, Bylaws, Board of Directors, personnel policies and procedures, or tax exempt status to DIRECTOR. 215 Page 3 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract 3. Maintain no member of its Board of Directors as a paid employee, agent, independent contractor, or subcontractor under this Contract. 4. Open to the public, meetings of its Board of Directors, if required by California’s open meeting laws, except meetings, or portions thereof, dealing with personnel or litigation matters or as otherwise provided by law. 5. Keep minutes of all its regular and special meetings. 6. Comply with all provisions of California and Federal Non-Profit Corporation Laws. 7. Provide to the CITY a copy of a resolution authorizing the CORPORATION's execution of this Contract. The CORPORATION hereby warrants to the CITY that this Contract is a legal, valid, and binding obligation of the CORPORATION enforceable in accordance with its terms, and that the execution and delivery of this Contract and the performance of the CORPORATION's obligations have been duly authorized by the CORPORATION B. Program Performance by CORPORATION. CORPORATION shall: 1. Conduct the PROGRAM within the City of Cupertino, for the purpose of benefiting low and very low-income households. 2. File quarterly reports as required by CITY on the type and number of services rendered through the operation of the PROGRAM, and a description of the beneficiaries of these services, and which reports will evaluate the manner in which the PROGRAM is achieving its objectives and goals according to the standards established by CITY. The progress reports will be due ten days after the close of each reporting period and must cover the three months immediately preceding the date on which the report is filed. 3. Coordinate its services with other existing organizations providing similar services in order to foster community cooperation and to avoid unnecessary duplication of services. 4. Seek out and apply for other sources of revenue in support of its operation or services from local, state, federal and private sources and, in the event of receipt of such award, inform CITY within ten days. 5. Include an acknowledgement of CITY funding and support on CORPORATION stationery and on all appropriate program-related publicity and publications using words to the effect: “funded in whole or in part by the City of Cupertino through the Housing and Community Development Act of 1974, as amended.” 6. CORPORATION agrees it will carry out the principles as provided in Presidents Executive Order 11246 of September 24, 1965. 216 Page 4 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract 7. CORPORATION will comply with Section 281 of the National Affordable Housing Act. 8. “Section 3” Clauses. a. Compliance. Compliance with the provisions of Section 3, the regulations set forth in 24 CFR 135, and all applicable rules and orders issued hereunder prior to the execution of this Contract, shall be a condition of the federal financial assistance provided under this Contract and binding upon the CITY, the CORPORATION, and any sub-recipients. Failure to fulfill these requirements shall subject the CITY, the CORPORATION, and any sub-recipients, their successors and assigns, to those sanctions specified by the Contract through which federal assistance is provided. The CORPORATION certifies and agrees that no contractual or other disability exists which would prevent compliance with these requirements. The CORPORATION further agrees to comply with these “Section 3” requirements and to include the following language in all subcontracts executed under this Contract (the “Section 3 Clause”): “The work to be performed under the Contract is a program assisted under a program providing direct federal financial assistance from HUD and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701. Section 3 requires that to the greatest extent feasible opportunities for training and employment be given to lower income residents of the program area and agreements for work in connection with the program be awarded to business concerns which are located in, or owned in substantial part by persons residing in, the areas of the program. The parties to this contract agree to comply with HUD's regulations in 24 C.F.R. Part 135, which implement Section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the Part 135 regulations. The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers' representative of the contractor's commitments under this Section 3 clause; and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference; shall set forth minimum number and job titles subject to hire; availability of apprenticeship and training positions; the qualifications for each; the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin. The contractor agrees to include this Section 3 clause in every subcontract subject to compliance with regulations in 24 C.F.R. Part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 C.F.R. Part 135. 217 Page 5 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 C.F.R. Part 135. The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 C.F.R. Part 135 require employment opportunities to be directed, were not filled to circumvent the contractor's obligations under 24 C.F.R. Part 135 Noncompliance with HUD's regulations in 24 C.F.R. Part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts. With respect to work performed in connection with Section 3 covered Indian housing assistance, section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450e) also applies to the work to be performed under this contract. Section 7(b) requires that to the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian-owned Economic Enterprises. Parties to this contract that are subject to the provisions of Section 3 and section 7(b) agree to comply with Section 3 to the maximum extent feasible, but not in derogation of compliance with section 7(b)” The CORPORATION certifies and agrees that no contractual or other disability exists which would prevent compliance with the requirements. b. Notifications. The CORPORATION agrees to send to each labor organization or representative of workers with which it has a collective bargaining agreement or other agreement or understanding, if any, a notice advising said labor organization or worker’s representative of its commitments under this Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training. The notice shall describe the Section 3 preference; shall set forth minimum number and job titles subject to hire; availability of apprenticeship and training positions; the qualifications for each; the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin c. Subcontracts. The CORPORATION will include the Section 3 Clause, found in B.8.a of this Agreement, in every subcontract and will take appropriate action pursuant to the subcontract upon a finding that the sub-Subrecipient is in violation of regulations issued by CITY. The CORPORATION will not subcontract with any sub- Subrecipient where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR 135 and will not let any subcontract unless the sub- Subrecipient has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. 218 Page 6 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract C. Fiscal Responsibilities of CORPORATION. CORPORATION will: 1. Appoint and submit the name of a fiscal agent who will be responsible for the financial and accounting activities of CORPORATION, including the receipt and disbursement of CORPORATION funds. The CITY must immediately be notified in writing of the appointment of any new fiscal agent and that agent’s name. 2. If the term of this Contract is extended by an amendment for a second fiscal year, submit a satisfactory Audit within 150 days of CORPORATION’s fiscal year encompassed by the first year of this Contract. 3. Comply with the requirements and standards of Title 24 Code of Federal Regulations, Part 570 of the Housing and Urban Development regulations concerning CDBG and all federal regulations and policies issued pursuant to these regulations and OMB Circular No. A-122 “Cost Principles for Non-Profit Organizations, the applicable policies, guidelines and requirements of OMB Circulars A-87 and A-102, and with the following Attachments to OMB Circular A-110:” a) Attachment A, “Cash Depositories,” except for paragraph 4 concerning deposit insurance; b) Attachment B, “Bonding and Insurance;” c) Attachment C, “Retention and Custodial Requirements for Records”, except that in lieu of the provisions in paragraph 4, the retention period for records pertaining to individual CDBG activities starts from the date of submission of the annual performance and evaluation report, as prescribed in 570.507, in which the specific activity is reported on for the final time; d) Attachment F, “Standards for Financial Management Systems;” e) Attachment H, “Monitoring and Reporting Program Performance,” paragraph 2; f) Attachment N, “Property Management Standards,” except for paragraph 3 concerning the standards for real property, and except that paragraphs 6 and 7 are modified so that: i) In all cases in which personal property is sold, the proceeds shall be program income, and ii) Personal property not needed by the CORPORATION for CDBG activities will be transferred to the recipient for the CDBG PROGRAM or will be retained after compensating the recipient; and g) Attachment O, “Procurement Standards.” 219 Page 7 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract 3. Comply with the audit requirements of OMB Circular A-133 which require compliance with the Single Audit Act for any non-profit agency expending $500,000 or more of federal funds for the fiscal year. 4. Document all PROGRAM costs by maintaining records in accordance with Section III, Paragraph D below. 5. Submit to the CITY, based on an agreed upon schedule, a request for payment, together with all supporting documentation. Invoices requesting disbursements submitted after the expiration of the Contract will be honored only for eligible charges incurred during the Contract term. All invoices must be submitted by the Contract expiration date or within such other time period specified by the CITY for this Contract term. Funds not disbursed will be returned to the Competitive Housing Pool for future reallocation. 6. Certify current and continuous insurance coverage, subject to CITY approval and in accordance with requirements as outlined in Exhibit E, “Insurance and Bond Requirements.” 7. Items 1) through 6) above are express conditions precedent to disbursement of any CITY funding and failure to comply with these conditions will, at discretion of CITY, result in suspension of funding or termination of this Contract. 8. If CORPORATION does not use CDBG funds in accordance with the requirements of this Contract, CORPORATION is liable for repayment of all disallowed costs. Disallowed costs may be identified through audits, monitoring or other sources. CORPORATION is required to respond to any adverse findings which may lead to disallowed costs subject to provisions of OMB Circular A-122, “Cost Principles for Non- Profit Organizations.” D. Establishment and Maintenance of Records. CORPORATION shall: 1. In compliance with all HUD records and accounting requirements including but not limited to those set forth in 24 CFR 570.506 and 570.502(b), maintain complete and accurate records of all its transactions including, but not limited to, contracts, invoices, time cards, cash receipts, vouchers, canceled checks, bank statements, client statistical records, personnel, property and all other pertinent records sufficient to reflect properly (a) all direct and indirect costs of whatever nature claimed to have been incurred or anticipated to be incurred to perform this Contract or to operate the PROGRAM; (b) each activity undertaken under the PROGRAM meets one of the national objectives of the CDBG program set forth in 24 CFR 570.208; (c) compliance with fair housing and equal opportunity requirements; (d) compliance with Subpart K of 24 CFR 570 and 24 CFR 508; and (e) all other matters covered by this Contract. 2. Maintain client data demonstrating client eligibility for services provided for the Program. Such data will include, but not be limited to, client name, address, income 220 Page 8 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract level or other basis for determining eligibility, and description of service provided. Such information will be made available to CITY monitors for review upon request. E. Preservation of Records. CORPORATION will preserve and make available its records: 1. Until five years following date of final payment of this contract, or 2. For such longer period, if any as is required by applicable law; or 3. If this Contract is completely or partially terminated, the records relating to the work terminated will be preserved and made available for a period of five years from the date of termination. F. Examination of Records and Facilities. At any time during normal business hours, and as often as may be deemed necessary, CORPORATION agrees that HUD and the CITY, and/or any duly authorized representatives may until expiration of (a) five years after final payment under this Contract, (b) five years from the date of termination of this Contract, or (c) such longer period as may be described by applicable law, have access to and the right to examine its plants, offices and facilities used in the performance of this Contract or the operation of the PROGRAM, and all its records with respect to the PROGRAM and all matters covered by this Contract. CORPORATION also agrees that CITY or any duly authorized representatives will have the right to audit, examine, and make excerpts or transactions of and from, such records and to make audits of all contracts and subcontracts, invoices, payrolls, records of personnel, conditions of employment, materials and all other data relating to the PROGRAM and matters covered by this Contract. CORPORATION will be notified in advance that an audit will be conducted. CORPORATION will be required to respond to any audit findings, and have the responses included in the final audit report. The cost of any such audit will be borne by CITY. G. Compliance with Law. CORPORATION will become familiar and comply with and cause all its subcontractors, independent contractors, and employees, if any, to become familiar and comply with all applicable federal, state and local laws, ordinances, codes, regulations and decrees including, but not limited to, those federal rules and regulations, executive orders, and statutes identified in Exhibit F (“Assurances”). Specifically, CORPORATION must comply with the requirements and standards of OMB Circular No. A-122, “Cost Principles for Non-Profit Organizations”, and the attachments to OMB Circular No. A-110 as described in section III. OBLIGATIONS OF CORPORATION, C. Fiscal Responsibilities of CORPORATION. H. Suspension and Termination. In accordance with 24 CFR 85.43, suspension or termination of this Contract may occur if the CORPORATION materially fails to comply with any term of the award, and that the award may be terminated for convenience in accordance with 24 CFR 85.44. I. Reversion of Assets. Upon expiration or termination of this Contract, or in the event HUD cancels the PROGRAM for any reason, the CORPORATION will transfer to the CITY any CDBG funds on hand at the time of expiration and any accounts receivable attributable to the use of CDBG funds. Any real property under the CORPORATION’s control that was acquired or 221 Page 9 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract improved in whole or in part with CDBG funds (including CDBG funds provided to CORPORATION in the form of a loan) in excess of $25,000 must be: 1. Used to meet one of the national objectives stated in Title 24 CFR part 570.208 for a period of five years after expiration of this Contract, or for such longer period of time as required by the CITY; or, 2. Reimburse the CITY an amount equal to the current market value of the property, less any portion of the value attributable to expenditures of non-CDBG funds for acquisition of, or improvement to, the property (reimbursement is not required after the period of time specified in I. 1. above). J. CORPORATION certifies, to the best of CORPORATION's knowledge or belief, that: 1. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; 2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, Disclosure Form to Report Lobbying, in accordance with its instructions. 3. This certification is a material representation of fact upon which reliance was placed when this Agreement was made or entered into. Submission of this certification is a prerequisite for making or entering into this Agreement imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification will be subject to a civil penalty of not less than Ten Thousand Dollars ($10,000) and no more than One Hundred Thousand Dollars ($100,000) for such failure. K. Except for approved eligible administrative or personnel costs, no person described below may, during or after their tenure, obtain a personal or financial interest or benefit from the activities funded pursuant to this Contract, or have any interest in any contract, subcontract or agreement with respect to such activities, or the proceeds under the contract, either for themselves or those with whom they have family or business ties. CORPORATION shall exercise due diligence to ensure that the prohibition in this Section IV.K is followed. The conflict of interest provision of Section IV.K applies to (i) any person who is an employee, agent, consultant, or officer of the City who exercises or has exercised any functions or responsibilities with respect to the activities funded pursuant to this Grant or who is in a position 222 Page 10 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract to participate in a decision-making process or to gain inside information with regard to such activities, may obtain a personal or financial interest or benefit from the activity, or have an interest in any , (ii) any immediate family member of such person, (iii) any elected or appointed official of the City, and (iv) any person related within the third (3rd) degree of such person. In accordance with Government Code Section 1090 and the Political Reform Act, Government Code section 87100 et seq., no person who is a director, officer, partner, trustee or employee or consultant of CORPORATION, or immediate family member of any of the preceding, may make or participate in a decision, made by the City or a City board, commission or committee, if it is reasonably foreseeable that the decision will have a material effect on any source of income, investment or interest in real property of that person or CORPORATION. Interpretation of this section shall be governed by the definitions and provisions used in the Political Reform Act, Government Code section 87100 et seq., its implementing regulations manual and codes, and Government Code section 1090. CORPORATION shall comply with the conflict of interest provisions set forth in 24 C.F.R. Section 570.611. V. OBLIGATIONS OF CITY A. Method of Payment. During the term of this Contract, CITY shall disburse CDBG funds to CORPORATION on a reimbursement basis unless otherwise provided herein for all allowable costs and expenses incurred in connection with the PROGRAM, not to exceed the total sum of _____________________________________________________. CITY may, at any time in its absolute discretion, elect to suspend or terminate payment to CORPORATION, in whole or in part, pursuant to this Contract based on CORPORATION’S non-compliance, including, but not limited to, incomplete documentation of expenses, failure to substantially meet goals and objectives as required in Exhibit B, (“Program Work Plan”), failure to submit adequate progress reports as required herein or other incidents of non-compliance as described in Section VI, Paragraph B of this Contract or based on the refusal by CORPORATION to accept any additional conditions that may be imposed by HUD at any time, or based on the suspension or termination of the grant to CITY made pursuant to the Housing and Community Development Act of 1974, as amended. VI. PROGRAM COORDINATION A. CITY. The CITY Executive will assign a single DIRECTOR for CITY who will render overall supervision of the progress and performance of this Contract by CITY. All services agreed to be performed by CITY will be at the overall direction of the DIRECTOR. B. CORPORATION. As of the date hereof, CORPORATION has designated _______________________________ to serve as EXECUTIVE DIRECTOR and to assume overall responsibility for the progress and execution of this Contract. The CITY will be immediately notified in writing of the appointment of a new EXECUTIVE DIRECTOR. 223 Page 11 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract C. NOTICES. All notices or other correspondence required or contemplated by this Contract shall be sent to the parties at the following addresses: CITY: ____________________________________ ____________________________________ ____________________________________ ____________________________________ ____________________________________ CORPORATION: ____________________________________ ____________________________________ ____________________________________ ____________________________________ ____________________________________ All notices will either be hand delivered or sent by United States mail, registered or certified, postage prepaid. Notices given in such a manner will be deemed received when hand delivered or seventy-two (72) hours after deposit in the United States mail. Any party may change his or her address for the purpose of this section by giving five days written notice of such change to the other party in the manner provided in this section. VII. CONTRACT COMPLIANCE A. Monitoring and Evaluation of Services. Evaluation and monitoring of the PROGRAM performance is the mutual responsibility of both CITY and CORPORATION. CORPORATION must furnish all data, statements, records, information and reports necessary for DIRECTOR to monitor, review and evaluate the performance of the PROGRAM and its components. CITY will have the right to request the services of an outside agent to assist in any such evaluation. Such services shall be paid for by CITY. B. Contract Noncompliance. If CORPORATION fails to comply with any provision of this Contract; CITY will have the right to require corrective action to enforce compliance with such provision as well as the right to suspend or terminate this Contract. Examples of noncompliance include, but are not limited to: 1. If CORPORATION (with or without knowledge) has made any material misrepresentation of any nature with respect to any information or data furnished to CITY in connection with the PROGRAM. 2. If there is pending litigation with respect to the performance by CORPORATION if any of its duties or obligations under this Contract, which may materially jeopardize or adversely affect the undertaking of or the carrying out of the PROGRAM. 3. If CORPORATION has taken any action pertaining to the PROGRAM, which action required CITY approval, and such approval was not obtained. 4. If CORPORATION is in default under any provision of this Contract. 224 Page 12 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract 5. If CORPORATION makes illegal use of CITY funds. 6. If CORPORATION submits to CITY any report which is incorrect or incomplete in any material respect. 7. If CORPORATION fails to meet the stated objectives in Exhibit B (“Program Work Plan”). C. Corrective Action Procedure. CITY, in its absolute discretion and in lieu of immediately terminating this Contract upon occurrence or discovery of noncompliance by CORPORATION pursuant to this Contract, will have the right to give CORPORATION notice of CITY’S intention to consider corrective action to enforce compliance. Such notice must indicate the nature of the non-compliance and the procedure whereby CORPORATION will have the opportunity to participate in formulating any corrective action recommendation. CITY will have the right to require the presence of CORPORATION’S officer(s) and EXECUTIVE DIRECTOR at any hearing or meeting called for the purpose of considering corrective action. In the event that CORPORATION does not implement the corrective action recommendations in accordance with the corrective action timetable, CITY may suspend payments hereunder or terminate this Contract as set forth in Section VII below. VIII. TERMINATION A. Termination for Cause. CITY may terminate this Contract by providing written notice to CORPORATION, for any of the following reasons: uncorrected Contract non-compliance as defined in Section VI, Paragraph B; CORPORATION is in bankruptcy or receivership; a member of the CORPORATION’S Board of Directors or the executive director is found to have committed fraud or; there is reliable evidence that CORPORATION is unable to complete the Program as described in the attached Exhibits. The date of termination will be as specified in the notice. B. Termination for Convenience. In addition to the CITY’S right to terminate for cause set forth in Section VI, either CITY or CORPORATION may suspend or terminate this Contract for any reason by giving thirty (30) days prior written notice to the other party. Upon receipt of such notice, performance of the services hereunder will be immediately discontinued. C. In the event that this Contract is terminated, CORPORATON may be required to return funds according to HUD regulations. D. Upon termination of this Contract, CORPORATION must immediately provide CITY access to all documents, records, payroll, minutes of meetings, correspondence and all other data pertaining to the CDBG entitlement fund granted to CORPORATION pursuant to this Contract. 225 Page 13 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract IX. PURCHASING REAL OR PERSONAL PROPERTY CORPORATION and CITY will comply with all applicable Federal Regulations as detailed by 24 CFR Part 570, Subpart J, i.e. 570.500 (Definitions), 570.503 (Agreements with Subrecipients), 570.504 (Program Income), and 570.505 (Use of Real Property), with regards to the use and disposal of Real or Personal Property purchased in whole, or in part, with CDBG funds. In addition, 24 CFR Part 85 (the Common Rule) includes definitions which apply to CDBG Real Property, however, the Common Rule section governing Real Property (CFR 85.31) DOES NOT APPLY TO CDBG ACTIVITIES. A. The following definitions apply to this Contract pursuant to 24 CFR Part 85 (Common Rule) 85.3: 1) Equipment means tangible, non-expendable, personal property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit. 2) Title as defined in detail in 24 CFR, Part 85.32 (a). 3) Use as defined in detail in 24 CFR, Part 85.32 (c) (1). 4) Supplies as defined in detail in 24 CFR, Part 85.33. 5) Procurement, Use and Disposition of Real Property as defined in detail by 24 CFR, Part 570.503 (Agreements with Subrecipients), 570.505 (Use of Real Property), and 570.504 (Program Income). B. Security Document. As a condition precedent to CITY loaning funds for the purchase of real property or an option to purchase real property, CORPORATION will prepare and execute a Loan Agreement (Exhibit H), Promissory Note, Deed of Trust and such other Contracts restricting the use of said real property for purposes consistent with this Contract, HUD and CDBG requirements. C. Grants. If a grant is provided for the acquisition of real property, CORPORATION will continually operate its Program for a minimum period of six (6) years from the effective date of this Contract. This obligation will survive the term of this Contract, the assignment or assumption of this Contract and the sale of the property prior to expiration of the obligation period as set forth in this paragraph. If this obligation is not fully met, CORPORATION may be required to reimburse the CITY. The CITY may consider, but will not be limited by, the following factors in calculating the reimbursement obligation: initial grant sum; the duration of the initial contractual obligation to operate the Program versus the actual duration of operation and; the appreciated value. D. Relocation, Acquisition, and Displacement. CORPORATION agrees to comply with 24 CFR 570.606 relating to the acquisition and disposition of all real property utilizing CDBG funds, and to the displacement of persons, businesses, and non-profit organizations as a direct 226 Page 14 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract result of any acquisition of real property utilizing CDBG funds. CORPORATION agrees to comply with applicable state laws, City Ordinances, Resolutions, and Policies concerning displacement of individuals from their residences. X. PROGRAM INCOME Income generated by the Program, is Program Income and shall be regulated by all provisions of Title 24 CFR 570 Subpart J “Grant Administration,” 570.503 “Agreements with Subrecipients,” and 570.504 “Program Income.” CORPORATION will annually report all program income generated by activities carried out with CDBG funds made available under this Contract. By way of further limitations, CORPORATION may use such income during the Contract period for activities permitted under this Contract and shall reduce requests for additional funds by the amount of any such program income balances on hand. All unused program income shall be returned to the CITY at the end of the Contract period. XI. INDEPENDENT CONTRACTOR This is a Contract by and between independent contractors and is not intended and will not be construed to create the relationship of agent, servant, employee, partnership, joint venture or association between CORPORATION and CITY. CORPORATION, including its officers, employees, agents or independent contractors or subcontractors, shall not have any claim under this Contract or otherwise against CITY for any Social Security, Worker’s Compensation, or employee benefits extended to employees of CITY. XII. ASSIGNABILITY A. CITY is entering into this Contract based on the experience, skill, and ability to perform of the CORPORATION. The CORPORATION recognizes that its qualifications and identify are of particular concern to the CITY in view of the CITY's interest in providing services to lower income persons and the CITY's reliance on the unique qualifications of the CORPORATION. Consequently, this Contract may not be assigned to another CORPORATION, person, partnership or any other entity without the prior written approval of CITY. None of the work or services to be performed hereunder may be assigned, delegated or subcontracted to third parties without the prior written approval of CITY, which the CITY may withhold in its sole discretion. Copies of all third party contracts shall be submitted to CITY at least ten days prior to the proposed effective date. In the event CITY approves of any such assignment, delegation or sub- contract, the subcontractors, assignees or delegates CORPORATION shall remain fully liable for all obligations and requirements under this Contract including the performance and any liabilities attaching to the assignees’ actions or omissions. B. This Contract may not be assumed nor assigned to another CORPORATION, person, partnership or any other entity without the prior written approval of CITY. 227 Page 15 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract XIII. DISCLOSURE OF CONFIDENTIAL CLIENT INFORMATION CORPORATION agrees to maintain client records consistent with applicable laws regarding personal privacy and obligations of confidentiality. XIV. HOLD HARMLESS In addition to the indemnity obligations set forth in Exhibit E, “Insurance and Bond Requirements,” CORPORATION will indemnify and hold harmless the CITY, its employees, agents, and officials, members of boards and commissions, from any and all claims, actions, suits, charges and judgments whatsoever, with respect to any damages, including attorney’s fees and court costs, arising out of the failure of the CORPORATION’s Program to comply with applicable laws, ordinances, codes, regulations and decrees, including without limitation those set forth in Exhibit E, “Certifications.” XV. WAIVER OF RIGHTS AND REMEDIES In no event will any payment by CITY constitute or be construed to be a waiver by CITY of any breach of the covenants or conditions of this Contract or any default which may then exist on the part of CORPORATION, and the making of any such payment while any such breach or default will in no way impair or prejudice any right or remedy available to CITY with respect touch breach or default. In no event will payment to CORPORATION by CITY in any way constitute a waiver by CITY of its rights to recover from CORPORATION the amount of money paid to CORPORATION on any item, which is not eligible for payment under the PROGRAM or this Contract. XVI. NON-DISCRIMINATION CORPORATION will comply with all applicable Federal, State and local laws and regulations including the City of Cupertino’s policies concerning nondiscrimination and equal opportunity in contracting. Such laws include but are not limited to the following: Title VII of the Civil Rights Act of 1964 as amended; Americans with Disabilities Act of 1990; The Rehabilitation Act of 1973 (Sections 503 and 504); California Fair Employment and Housing Act (Government Code sections 12900 et seq.); and California Labor Code sections 1101 and 1102. CORPORATION will not discriminate against any subcontractor, employee, or applicant for employment because of age, race, color, national origin, ancestry, religion, sex/gender, sexual orientation, mental disability, physical disability, medical condition, political beliefs, organizational affiliations, or marital status in the recruitment, selection for training including apprenticeship, hiring, employment, utilization, promotion, layoff, rates of pay or other forms of compensation. Nor shall CORPORATION discriminate in provision of services provided in this Contract because of age, race, color, national origin, ancestry, religion, sex/gender, sexual orientation, mental disability, physical disability, medical condition, political beliefs, organizational affiliations, or marital status. This non-discrimination provision must be included in CORPORATION’s contracts with sub- contractors and vendors when utilizing the CDBG funds disbursed for this Program. 228 Page 16 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract XVII. AMENDMENTS Other than the amendment related to a second year renewal option as stated in Article III. above, amendments to the terms or conditions of this Contract must be requested in writing by a duly authorized representative of the party desiring such amendments, and any such amendment shall be effective only upon the mutual agreement in writing of the parties hereto. XVIII. INTEGRATED DOCUMENT This Contract contains the entire agreement between CITY and CORPORATION with respect to the subject matter hereof. No written or oral agreements with any officer, agent or employee of CITY prior to execution of this Contract shall affect or modify any of the terms of obligations contained in any documents comprising this Contract. XIX. MISCELLANEOUS A. Headings. The captions and section headings used in this Contract are for convenience of reference only, and the words contained herein will, in no way, be held to explain, modify, amplify or aid in the interpretation, construction or meaning of the provisions of this Contract. B. Exhibits. All Exhibits attached hereto and referred to in this Contract are incorporated herein by this reference as if set forth fully herein. Exhibits are as follows: Exhibit “A” (PROGRAM Description), Exhibit “B” (PROGRAM Work Plan), Exhibit “C” (Proposed Implementation Time Schedule), Exhibit “D” (Program Budget), Exhibit “E” (Insurance Requirements), Exhibit “F” (Assurances). C. Conflict of Interest. In accordance with Government Code Section 1090 and the Political Reform Act, Government Code Section 87100 et seq., except for approved eligible administrative or personnel costs, no person who is an employee, agent, consultant, officer, or any immediate family member of such person, or any elected or appointed official of the CITY who exercises or has exercised any functions or responsibilities with respect to the activities funded by this Contract or who is in a position to participate in a decision-making process, may obtain a personal or financial interest or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, during, or at any time after, such person's tenure. The CORPORATION shall exercise due diligence to ensure that the prohibition in this section is followed. Further, no person who is a director, officer, partner, trustee or employee or consultant of the CORPORATION, or immediate family member of any of the preceding, shall make or participate in a decision, made by the CITY or a CITY board, commission or committee, if it is reasonably foreseeable that the decision will have a material effect on any source of income, investment or interest in real property of that person or the CORPORATION. Interpretation of this section shall be governed by the definitions and provisions used in the Political Reform Act, Government Code Section 87100 et seq., its implementing regulations manual and codes, and Government Code Section 1090. 229 Page 17 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract D. Interpretation. Each party to this Contract has had an opportunity to review the Contract, confer with legal counsel regarding the meaning of the Contract, and negotiate revisions to the Contract. Accordingly, neither party shall rely upon Civil Code Section 1654 in order to interpret any uncertainty in the meaning of the Contract. E. Third-Party Beneficiary. There shall be no third party beneficiaries to this Contract. F. Choice of Law and Venue. This Contract shall be governed by and construed in accordance with California law. Venue shall be Santa Clara County. G. Severability. If any term of this Contract is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall continue in full force and effect unless the rights and obligations of the parties have been materially altered or abridged by such invalidation, voiding or unenforceability. IN WITNESS WHEREOF, the parties have executed this Contract the day and year above written. The parties signing below hereby warrant that they are duly authorized to execute this Contract. AGENCY: CITY OF CUPERTINO, a municipal corporation By: ___________________________ By: _________________________ (Print name) (Print name) _________________________________ _______________________________ Insert Name Here Date David Brandt Date Executive Director City Manager APPROVED AS TO FORM AND ATTEST: LEGALITY: ________________________________ ________________________________ Randolph Stevenson Hom Date Grace Schmidt Date City Attorney City Clerk 230 Page 18 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract EXPENDITURE DISTRIBUTION ACCOUNT NUMBER Insert Here AMOUNT PO#: Original Contract (1st Yr.): $ Contract Amendment (2nd Yr.): $ Total: $ EXHIBIT A PROGRAM DESCRIPTION 231 Page 19 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract Agency Name: DUNS #: Executive Director: Project Manager: Project # (For Office Use Only) Street Address: City: State: Zip Code: Telephone number: Fax Number: Project Manager E-mail Address: Name of Project/Program: Project/Program Location: Project Description: EXHIBIT B PROGRAM WORK PLAN 232 Page 20 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract FY 2016/17 AGENCY NAME: PROJECT NAME EXHIBIT C PROPOSED IMPLEMENTATION TIMELINE SCHEDULE FY 2016/17 Objectives Benchmarks for Each Quarter 1st 2nd 3rd 4th TOTAL Limited Clientele (LMC) HUD National Objective 233 Page 21 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract AGENCY NAME: PROJECT NAME: Activity Number & Description: EXHIBIT D PROGRAM BUDGET FY 2016/17 Agency Name: Activity # Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total 234 Page 22 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract Project Name: Proposed Project Expenses FY 2016/17 EXHIBIT E BASIC INSURANCE AND BOND REQUIREMENTS FOR NON-PROFIT CONTRACTS Definition of Contractor: The "Contractor" as the word is used herein is the party contracting with the City of Cupertino for the direct distribution of CDBG funds. If your organization will be contracting for construction work (such as general contractors building rental apartments) to 235 Page 23 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract undertake a Program (as defined in this Non-Profit/City Contract) then the requirements set forth herein shall be complied with by the party contracted with for construction work protecting both the non-profit and the City. Indemnity The Contractor shall indemnify, defend, and hold harmless the City of Cupertino (hereinafter "City"), its officers, agents and employees from any loss, liability, claim, injury or damage arising out of, or in connection with performance of this Contract by Contractor and/or its agents, employees or subcontractors, excepting only loss, injury or damage caused solely by the acts or omissions of personnel employed by the City. It is the intent of the parties to this Contract to provide the broadest possible coverage for the City. The Contractor shall reimburse the City for all costs, attorneys' fees, expenses and liabilities incurred with respect to any litigation in which the Contractor is obligated to indemnify, defend and hold harmless the City under this Contract. Insurance Without limiting the Contractor's indemnification of the City, the Contractor shall provide and maintain at its own expense, during the term of this Contract, or as may be further required herein, the following insurance coverages and provisions: A. Evidence of Coverage Prior to commencement of this Contract, the Contractor shall provide on the City's own form or a form approved by the City's Insurance Manager an original plus one copy of a Certificate of Insurance certifying that coverage as required herein has been obtained and remains in force for the period required by this Contract. The contract number and project name must be stated on the Certificate of Insurance. The City's Special Endorsement form shall accompany the certificate. Individual endorsements executed by the insurance carrier may be substituted for the City's Special Endorsement form if they provide the coverage as required. In addition, a certified copy of the policy or policies shall be provided by the Contractor upon request. This verification of coverage shall be sent to the address as shown on the City's Certificate of Insurance form and to the Housing and Community Development Program at the address set forth in this Contract at Section VI. PROGRAM COORDINATION, Paragraph C., NOTICES. The Contractor shall not issue a Notice to Proceed with the work under this Contract until it has obtained all insurance required and such insurance has been approved by the City. This approval of insurance shall neither relieve nor decrease the liability of the Contractor. B. Notice of Cancellation of Reduction of Coverage All policies shall contain a special provision for thirty (30) days prior written notice of any cancellation or reduction in coverage to be sent to the Community Development Department, 10300 Torre Avenue, Cupertino, CA 95014. C. Qualifying Insurers 236 Page 24 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract All policies shall be issued by companies which hold a current policy holder's alphabetic and financial size category rating of not less than A VIII, according to the current Best's Key Rating Guide, unless otherwise approved by the City's Insurance Manager. D. Insurance Required 1. Comprehensive General Liability Insurance - for bodily injury (including death) and property damage which provides limits of not less than one million dollars ($1,000,000) combined single limit (CSL) per occurrence. OR 2. Commercial General Liability Insurance - for bodily injury (including death) and property damage which provides limits as follows: a. General limit per occurrence - $1,000,000 b. General limit aggregate - $2,000,000 c. Products/Completed Operations- $1,000,000 aggregate d. Personal Injury limit - $1,000,000 If coverage is provided under a Commercial General Liability Insurance form, the carrier shall provide the City Insurance Manager with a quarterly report of the amount of aggregate limits expended to that date. If over 50% of the aggregate limits have been paid or reserved, the City may require additional coverage to be purchased by the Contractor to restore the required limits. 3. For either type of insurance, coverage shall include: a. Premises and Operations b. Products/Completed Operations with limits of one million dollars ($1,000,000) per occurrence/ aggregate to be maintained for two (2) years following acceptance of the work by the City. c. Contractual Liability expressly including liability assumed under this Contract. d. Personal Injury liability. e. Independent Contractors' (Protective) liability. f. Severability of Interest clause providing that the coverage applies separately to each insured except with respect to the limits of liability. 4. For either type of insurance, coverage shall include the following endorsements, copies of which shall be provided to the City: 237 Page 25 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract a. Additional Insured Endorsement: Such insurance as is afforded by this policy shall also apply to the City of Cupertino, and members of the City Council, and the officers, agents and employees of the City of Cupertino, individually and collectively, as additional insureds. b. Primary Insurance Endorsement: Such insurance as is afforded by the additional insured endorsement shall apply as primary insurance, and other insurance maintained by the City of Cupertino, its officers, agents, and employees shall be excess only and not contributing with insurance provided under this policy. c. Notice of Cancellation or Change of Coverage Endorsement: This policy may not be cancelled nor the coverage reduced by the Company without 30 days prior written notice of such cancellation or reduction in coverage to the City of Cupertino at the address shown on the Certificate of Insurance. d. Contractual Liability Endorsement: This policy shall apply to liability assumed by the insured under written contract with the City of Cupertino. e. Personal Injury Endorsement: The provisions of this policy shall provide Personal Injury coverage. f. Severability of Interest Endorsement: The insurance afforded by this policy shall apply separately to each insured that is seeking coverage or against whom a claim is made or a suit is brought, except with respect to the Company's limit of liability. 5. Comprehensive Automobile Liability Insurance for bodily injury (including death) and property damage which provides total limits of not less than one million dollars ($1,000,000) combined single limit per occurrence applicable to all owned, non-owned and hired vehicles. 6. Worker's Compensation and Employer's Liability Insurance for: a. Statutory California Workers' Compensation coverage including a broad form all- states endorsement. 238 Page 26 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract b. Employer's Liability coverage for not less than one million dollars ($1,000,000) per occurrence for all employees engaged in services or operations under this Contract. c. Inclusion of the City and its governing board(s), officers, representatives, agents, and employees as additional insureds, or a waiver of subrogation. 7. Professional Errors and Omissions Liability Insurance This type of insurance should be provided by persons/entities you contract with to provide you with professional services. a. Limits of not less than one million dollars ($1,000,000). b. If this policy contains a self retention limit, it shall not be greater than ten thousand dollars ($10,000) per occurrence/event. c. This coverage shall be maintained for a minimum of two (2) years following termination of this Contract. The City must first approve any exceptions to the above requirements. 8. Bond Requirements Fidelity Bond - Before receiving compensation under this Contract, Contractor will furnish City with evidence that all officials, employees, and agents handling or having access to funds received or disbursed under this Contract, or authorized to sign or countersign checks, are covered by a BLANKET FIDELITY BOND in an amount of AT LEAST fifteen percent (15%) of the maximum financial obligation of the City cited herein. If such bond is cancelled or reduced, Contractor will notify City immediately, and City may withhold further payment to Contractor until proper coverage has been obtained. Failure to give such notice may be cause for termination of this Contract, at the option of the City. 9. Special Provisions The following provisions shall apply to this Contract: a. The foregoing requirements as to the types and limits of insurance coverage to be maintained by the Contractor and any approval of said insurance by the City or its insurance consultant(s) are not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Contractor pursuant to this Contract, including but not limited to the provisions concerning indemnification. 239 Page 27 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract b. The City acknowledges that some insurance requirements contained in this Contract may be fulfilled by self-insurance on the part of the Contractor. However, this shall not in any way limit liabilities assumed by the Contractor under this Contract. The City shall approve any self-insurance in writing. c. The City reserves the right to withhold payments to the Contractor in the event of material noncompliance with the insurance requirements outlined above. d. If the Contractor fails to maintain such insurance as is called for herein, the City must order the Contractor to immediately suspend work at Contractor's expense until a new policy of insurance is in effect. 240 Page 28 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract ADDENDUM TO EXHIBIT "E" BASIC INSURANCE AND BOND REQUIREMENTS FOR CONSTRUCTION PROJECTS USING CITY FUNDS If your organization will be contracting for construction work (such as general contractors building rental apartments) to undertake a Program (as defined in this Non-Profit/City Contract) then the requirements set forth in this Addendum to Exhibit "E" shall be complied with by the party contracted with for construction work protecting both the non-profit and the City. Indemnity The General Contractor (hereinafter referred to as "General") shall indemnify, defend, and hold harmless the City of Cupertino (hereinafter "City"), its officers, agents and employees, and the Contractor, it's officers, agents and employees from any loss, liability, claim, injury or damage arising out of, or in connection with performance of this Contract by General and/or its agents, employees or subcontractors, excepting only loss, injury or damage caused solely by the acts or omissions of personnel employed by the City or the Contractor. It is the intent of the parties to this Contract to provide the broadest possible coverage for the City and the Contractor. The General shall reimburse the City and the Contractor for all costs, attorneys' fees, expenses and liabilities incurred with respect to any litigation in which the General is obligated to indemnify, defend and hold harmless the City and the Contractor under this Contract. Insurance Without limiting the General's indemnification of the City and the Contractor, the General shall provide and maintain at its own expense, during the term of this Contract, or as may be further required herein, the following insurance coverages and provisions: A. Evidence of Coverage Prior to commencement of this Contract, the General shall provide an original plus one copy of a Certificate of Insurance certifying that coverage as required herein has been obtained and remains in force for the period required by this Contract. The contract number and project name must be stated on the Certificate of Insurance. Individual endorsements executed by the insurance carrier shall accompany the Certificate. This verification of coverage shall be sent to the Contractor at the address stated below and to the Community Development Department, 10300 Torre Avenue, Cupertino, CA 95014. The Contractor shall not issue a Notice to Proceed with the work under this Contract until it has obtained all insurance required and such insurance has been approved by the Contractor and final approval by the City. This approval of insurance shall neither relieve nor decrease the liability of the Contractor. B. Notice of Cancellation or Reduction of Coverage All policies shall contain a special provision for thirty (30) days prior written notice of any cancellation or reduction in coverage to be sent to the Community Development Department as stated above, and the Contractor at the following address: 241 Page 29 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract _______________________________________ _______________________________________ _______________________________________ C. Qualifying Insurers 1. All policies shall be issued by companies which hold a current policy holder's alphabetic and financial size category rating of not less than A VIII, according to the current Best's Key Rating Guide, unless otherwise approved by the City. 2. Surety coverage (including bid, performance and payment bonds) shall be required as follows: a. For projects in excess of $100,000: 1. Either a California Admitted Surety OR a current Treasury Listed Surety (Federal Register); and either a current A.M. Best A IV rated Surety OR a current Standard and Poors (S&P) rating of A; 2. An admitted surety insurer which complies with the provisions of the Code of Civil Procedure, Section 995.660*; OR 3. In lieu of 1 & 2, a company of equal financial size and stability that is approved by the City's Insurance/Risk Manager. b. For projects between $25,000 and not exceeding $100,000: 1. A California Admitted Surety and either a current A.M. Best B rated Surety OR a current Standard and Poors (S&P) rating of B B; OR 2. An admitted surety insurer which complies with the provisions of the Code of Civil Procedure, Section 995.660 ∗; OR 3. In lieu of 1 & 2, a company of equal financial size and stability that is approved by the City's Insurance/Risk Manager. D. Insurance Required ∗ California Code of Civil Procedure Section 995.660 in summary, states that an admitted surety must provide: 1) the original, or a certified copy of instrument authorizing the person who executed the bond to do so; 2) a certified copy of the Certificate of Authority issued by the Insurance Commissioner; 3) a certificate from City Clerk of Cupertino City that Certificate of Authority has not been surrendered, revoked, canceled, annulled or suspended; 4) a financial statement showing the assets and liabilities of the insurer at the end of the quarter calendar year, prior to 30 days next preceding the date of the execution of the bond. 242 Page 30 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract 1. Comprehensive General Liability Insurance - for bodily injury (including death) and property damage which provides limits of not less than one million dollars ($1,000,000) combined single limit (CSL) per occurrence. OR 2. Commercial General Liability Insurance - for bodily injury (including death) and property damage which provides limits as follows: a. General limit per occurrence - $1,000,000 b. General limit aggregate - $2,000,000 c. Products/Completed Operations- $1,000,000 aggregate d. Personal Injury limit - $1,000,000 If coverage is provided under a Commercial General Liability Insurance form, the carrier shall provide the City Insurance Manager with a quarterly report of the amount of aggregate limits expended to that date. If over 50% of the aggregate limits have been paid or reserved, the City may require additional coverage to be purchased by the General to restore the required limits. 3. For either type of insurance, coverage shall include: a. Premises and Operations b. Products/Completed Operations with limits of one million dollars ($1,000,000) per occurrence/aggregate to be maintained for two (2) years following acceptance of the work by the City. c. Contractual Liability expressly including liability assumed under this Contract. d. Personal Injury liability. e. Independent Contractors' (Protective) liability f. Severability of Interest clause providing that the coverage applies separately to each insured except with respect to the limits of liability. 4. For either type of insurance, coverage shall include the following endorsements, copies of which shall be provided to the City and the Contractor: a. Additional Insured Endorsement: Insurance afforded by this policy shall also apply to the City of Cupertino and Contractor as additional insureds. b. Primary Insurance Endorsement: Insurance afforded by the additional insured endorsement shall apply as primary insurance, and other insurance maintained by the City of Cupertino and the 243 Page 31 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract Contractor shall be excess only and not contributing with insurance provided under this policy. c. Notice of Cancellation or Change of Coverage Endorsement: This policy may not be canceled nor the coverage reduced by the Company without 30 days prior written notice of such cancellation or reduction in coverage to the City of Cupertino CDBG Program, and the Contractor at the addresses set forth on page 10 of this Addendum. d. Severability of Interest Endorsement: The insurance afforded by this policy shall apply separately to each insured who is seeking coverage or against whom a claim is made or a suit is brought, except with respect to the Company's limit of liability. 5. Comprehensive Automobile Liability Insurance for bodily injury (including death) and property damage which provides total limits of not less than one million dollars ($1,000,000) combined single limit per occurrence applicable to all owned, non-owned and hired vehicles. 6. Worker's Compensation and Employer's Liability Insurance for: a. Statutory California Workers' Compensation coverage including a broad form all- states endorsement. b. Employer's Liability coverage for not less than one million dollars ($1,000,000) per occurrence for all employees engaged in services or operations under this Contract. 7. Work and Materials Insurance (including but not limited to Builder's Risk, Course of Construction, Installation Floater or similar first party property insurance for covering the interest of the Contractor and the City) shall be provided by the Contractor. The Contractor's coverage shall provide the following: a. Coverage shall be provided on an "all-risk" basis. b. Coverage shall be provided on the work and materials which are the subject of this Contract, whether in process or manufacture or finished, including "in transit" coverage to the final agreed upon destination of delivery, and including loading and unloading operations, and such coverage shall be in force until the work and materials are accepted by the City. c. City and non-profit shall be named as additional insured as its interests may appear at the time of loss. 244 Page 32 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract d. Coverage shall be in an amount no less than the full replacement value of the property at the time of loss. e. The deductible shall not exceed $1,000 per occurrence unless otherwise approved by the City and shall be borne by the Contractor. f. If the construction contractor fails to maintain such insurance as is called for herein, the City shall have cause to terminate this Contract in accordance with Section V, paragraph B. 8. Bond Requirements The following bond requirements apply: a. Contract Bonds - Prior to execution of the Contract, Contractor shall file with the City on the approved forms, the two surety bonds in the amounts and for the purposes noted below, duly executed by a reputable surety company satisfactory to City, and Contractor shall pay all premiums and costs thereof and incidental thereto. Both Contractor and the sureties shall sign each bond. b. The "payment bond for public works" shall be in an amount of one hundred percent (100%) of the Contract price, as determined from the prices in the bid form, and shall insure to the benefit of persons performing labor or furnishing materials in connection with the work of the proposed Contract. This bond shall be maintained in full force and effect until all work under the Contract is completed and accepted by the City, and until all claims for materials and labor have been paid. c. The "performance bond" shall be in an amount of one hundred percent (100%) of the Contract price as determined from the prices in the bid form. and shall insure the faithful performance by Contractor of all work under the Contract. It shall also insure the replacing of, or making acceptable, any defective materials or faulty workmanship. Should any surety or sureties be deemed unsatisfactory at any time by the City notice will be given Contractor to that effect, and Contractor shall forthwith substitute a new surety or sureties satisfactory to the City. No further payment shall be deemed due or will be made under the Contract until the new sureties qualify and are accepted by the City. All alterations, time extensions, extra and additional work, and other changes authorized by the Specifications, or any part of the Contract, may be made without securing consent of the surety or sureties on the contract bonds. 9. Special Provisions The following provisions shall apply to this Contract: 245 Page 33 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract a. The foregoing requirements as to the types and limits of insurance coverage to be maintained by the General and any approval of said insurance by the City or the Contractor are not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the General pursuant to this Contract, including but not limited to the provisions concerning indemnification. b. The Contractor reserves the right to withhold payments to the General in the event of material noncompliance with the insurance requirements outlined above. c. The Contractor shall notify the City Community Development Department promptly of all losses or claims over $25,000 resulting from work performed under this contract, or any products/completed operations loss or claim against the contractor resulting from any of the contractor's work. EXHBIT F ASSURANCES 246 Page 34 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract CORPORATION hereby assures and certifies that it will comply with all regulations, policies, guidelines and requirements applicable to the acceptance and use of Federal funds for this Federally-assisted program and will be responsible for implementing and complying with all relevant future changes to Federal Regulations or OMB Circulars. Specifically CORPORATION gives assurances and certifies with respect to the PROGRAM that it is in compliance with the following Regulations as defined by 24 CFR, Part 570, Subpart J; 24 CFR, Part 570, Subpart K; and will be conducted and administered in conformity with “Public Law 88.352 and Public Law 90-284. 1. 570.601. Public Law 88-352 and Public Law 90-284; affirmatively furthering fair housing; Executive Order 11063, as amended by Executive Order 12259 addresses discrimination. HUD regulations implementing Executive Order 11063 are contained in 24 CFR, Part 107; Title VI of the Civil Rights Act of 1964 as amended; Title VIII of the Civil Rights Act of 1968 as amended; Section 104(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended; Section 504 of the Rehabilitation Act of 1973; the Age Discrimination Act of 1975; Executive Order 11246 as amended by Executive Orders 11375, 12086, 11478, 12107; Executive Order 11625 as amended by Executive Order 12007; Executive Order 12432; Executive Order 12138 as amended by executive Order 12608. 2. 570.602. Section 109 of the Act addresses discrimination. 3. 570.603. Labor Standards. 4. 570.604. Environmental Standards. 5. 570.605. National Flood Insurance Program. 6. 570.606. Relocation, Displacement and Acquisition. 7. 570.607. Employment and Contracting Opportunities. 8. 570.608. Lead-Based Paint. 9. 570.609. Use of Debarred, Suspended, or Ineligible Contractors or Subrecipients. 10. 570.610. Uniform Administrative Requirement and Cost Principles. The CITY, its Subrecipients, agencies or instrumentalities, shall comply with the policies, guidelines, and requirements of 24 CFR Part 85 (Common Rule), and OMB Circulars A-110 (Grants and Agreements with Non-Profit Organizations), A-122 (Cost Principles for Non-Profits), A-128 (Audits of State and Local Governments-implemented at 24 CFR, Part 24), and A- 133 (Audits of Institutions of Higher Education and Other Non-Profit Institutions), as applicable, as they relate to the acceptance and use of Federal funds under this part. The applicable sections of 24 CFR, Part 85 and OMB Circular A-100 are set forth at 570.502. 247 Page 35 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract 11. 570.611. Conflict of Interest. 12. 570.612. Executive Order 12372 allows States to establish its own process for review and comment on proposed Federal financial assistance programs, specifically the use of CDBG funds for the construction or planning of water or sewer facilities. 13. 570.613. Eligibility restrictions for certain resident aliens. 14. 570.614. Architectural Barriers Act and the Americans with Disabilities Act. Federal regulations issued pursuant thereto, which prohibit discrimination against the disabled in any federally assisted program, the requirements of the Architectural Barriers Act of 1968 (42 U.S.C. 4151-4157) and the applicable requirements of Title II and/or Title III of the Americans with Disabilities Act of 1990 (42 U.S.C. 12131 et seq.), the requirements of Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), and federal regulations issued pursuant thereto. 15. Drug Free Work Place. The requirements of the Drug Free Workplace Act of 1988 (P.L. 100-690) and implementing regulations at 24 C.F.R. Part 24. 16. Religious Organizations. If the CORPORATION is a religious organization, as defined by the CDBG program, all conditions prescribed by HUD for the use of CDBG Funds by religious organizations, including the First Amendment of the United States Constitution regarding church/state principles and the applicable constitutional prohibitions set forth in 24 C.F.R. Section 570.200(j). 17. Flood Disaster Protection. The Flood Disaster Protection Act of 1973 (P.L. 93-234). No portion of the assistance provided under this Agreement is approved for acquisition or construction purposes as defined under Section 3(a) of said Act, for use in an area identified by HUD as having special flood hazards which is located in a community not then in compliance with the requirements for participation in the national flood insurance program pursuant to Section 201(d) of said Act. The use of any assistance provided under this Agreement for such acquisition or construction in such identified areas in communities then participating in the national flood insurance program is subject to the mandatory purchase of flood insurance requirements of Section 102(a) of said Act. Any contract or Agreement for the sale, lease, or other transfer of land acquired, cleared or improved with assistance provided under this Agreement is to contain certain provisions. These provisions will apply if such land is located in an area identified by HUD as having special flood hazards and in which the sale of flood insurance has been made available under the National Flood Insurance Act of 1968, as amended, 42 U.S.C. 4001 et seq. These provisions obligate the transferee and its successors or assigns to obtain and maintain, during the ownership of such land, such flood insurance as required with respect to financial assistance for acquisition or construction purposes under -Section 102(s) of the Flood Disaster Protection Act of 1973. Such provisions are required notwithstanding the fact that the construction on such land is not itself funded with assistance provided under this Agreement. 248 Page 36 of 36 FY 2016-17 Community Development Block Grant (CDBG) Program City/Non-Profit Public Service Contract 18. Environmental and Historic Preservation. 24 C.F.R. Part 58, which prescribe procedures for compliance with the National Environmental Policy Act of 1969 (42 U.S.C. 4321-4361), and the additional laws and authorities listed at 24 C.F.R. 58.5. 19. HUD Regulations. Any other HUD regulations present or as may be amended, added, or waived in the future pertaining to the Grant funds, including but not limited to HUD regulations as may be promulgated regarding subrecipients. 249 19160 Stevens Creek Boulevard Proforma updated 4.1.16 CONSTRUCTION SOURCES totalper unit Construction Loan 11,504,320$ 383,477$ LP and GP Equity 727,570$ 24,252$ total 12,231,890$ 407,730$ PERMANENT SOURCES totalper unit Amortizing Perm Loan, Tranche A 707,700$ 23,590$ Amortizing Perm Loan, Tranche B 583,700$ 19,457$ City of Cupertino BMR AHF 3,500,000$ 116,667$ Housing Trust of Silicon Valley 1,500,000$ 50,000$ Tax Credit Investor Proceeds 7,274,803$ 242,493$ total 13,566,203$ 452,207$ ACQUISITION totalper unit Land 3,500,000$ 116,667$ Other Acquisition Costs 75,000$ 2,500$ Total Acquisition Costs3,575,000$ 119,167$ HARD COSTS Resid. Site Work and Structures 4,412,850$ 147,095$ Escalation Contingency 441,285$ 14,710$ Overhead & Profit/GC/Ins. Bond 1,116,451$ 37,215$ Owner Contingency 298,529$ 9,951$ Total Hard Costs6,269,115$ 208,971$ SOFT COSTS Architecture and Engineering 735,000$ 24,500$ Construction Loan interest and fees 590,961$ 19,699$ Permanent Financing 20,000$ 667$ Legal Fees 110,500$ 3,683$ Reserves 282,631$ 9,421$ Permits and Fees 269,396$ 8,980$ Other Soft Costs 313,599$ 10,453$ Developer Fee 1,400,000$ 46,667$ Total Soft Costs3,722,087$ 124,070$ TOTAL DEVELOPMENT COSTS 13,566,203$ 452,207$ SOURCES AND USES PERMANENT USES 250 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1544 Name: Status:Type:Public Hearings Agenda Ready File created:In control:2/25/2016 City Council On agenda:Final action:4/19/2016 Title:Subject: Appeal of a Planning Commission decision to deny an appeal of a Director’s approval of a Two-Story Permit (R-2015-08) to allow the construction of a new 5,140-square-foot single-family residence and a Minor Residential Permit (RM-2015-08) to allow a second story balcony on the new residence. (Application No. R-2015-08 and RM-2015-08; Applicant: WEC & Assoc. (Kingkay Capital, LLC); Appellant: Jan Kucera Jr., and Matthew R. and Angela M.D. Miller; Location: 21900 Oakview Lane; APN: 326-19-105) Sponsors: Indexes: Code sections: Attachments:Staff Report A - Draft Resolution 16- B - Plan Set C - Appeal Filed by Jan Kucera Jr. D - Appeal Filed by Matthew R. Miller and Angela M.D. Miller E - Comment Letters F - Resolution No. 6798 G - Resolution No. 6799 H - Planning Commission Staff Report, 2-23-16 I - Planning Commission Meeting Minutes, 2-23-16 J - Original Appeal of Director’s Decision filed by Matthew R. Miller and Angela M.D. Miller K - Two-Story and Minor Residential Permits Action Letter, 1-8-16 Action ByDate Action ResultVer. City Council4/19/20161 Subject:AppealofaPlanningCommissiondecisiontodenyanappealofaDirector’sapproval ofaTwo-StoryPermit(R-2015-08)toallowtheconstructionofanew5,140-square-footsingle -familyresidenceandaMinorResidentialPermit(RM-2015-08)toallowasecondstory balconyonthenewresidence.(ApplicationNo.R-2015-08andRM-2015-08;Applicant:WEC &Assoc.(KingkayCapital,LLC);Appellant:JanKuceraJr.,andMatthewR.andAngelaM.D. Miller; Location: 21900 Oakview Lane; APN: 326-19-105) AdoptResolutionNo.16-040todenytheappealandupholdthePlanningCommission's decision per PC Resolution No(s). 6798 and 6799 CITY OF CUPERTINO Printed on 4/15/2016Page 1 of 1 powered by Legistar™251 DEPARTMENT OF COMMUNITY DEVELOPMENT CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3308 • FAX: (408) 777-3333 CITY COUNCIL STAFF REPORT Meeting: April 19, 2016 Subject Appeal of a Planning Commission decision to deny an appeal of a Director’s approval of a Two-Story Permit (R-2015-08) to allow the construction of a new 5,140-square-foot single- family residence and a Minor Residential Permit (RM-2015-08) to allow a second story balcony on the new residence. (Application No. R-2015-08 and RM-2015-08; Applicant: WEC & Assoc. (Kingkay Capital, LLC); Appellant: Jan Kucera Jr., and Matthew R. and Angela M.D. Miller; Location: 21900 Oakview Lane; APN: 326-19-105) Recommended Action Adopt draft resolution to deny the appeal and uphold the Planning Commission’s decision (see Attachment A). Discussion Background On March 20, 2015 the applicant, WEC & Assoc. (Kingkay Capital, LLC), applied for a Two-Story Permit to construct a new 5,140-square-foot single-family residence and a Minor Residential Permit to construct a second story balcony on the new residence located at 21900 Oakview Lane (see Attachment B). The subject property is located in the R1-10 zoning district that permits two-story homes with a maximum Floor Area Ratio (FAR) of 45% and up to 28 feet in height. The applicant is not proposing to have any outdoor sheds etc., which would increase the FAR beyond 45%. The project is not subject to design review since the proposed second floor is less than 66% of the square footage of the first floor and provides at least 15-foot side yard setbacks on the second floor. Prior to the public comment period, the appellants and other property owners expressed their concerns regarding reduced daylight exposure, privacy impacts, potential existing ground contamination, noise impacts due to construction, and overall project design and massing to staff. Since staff and the applicant were made aware of these concerns prior to the completion of the application packet, the applicant adjusted the design through minor 252 architectural changes and proposed adequate mitigation plantings as required by the R-1 Ordinance in subsequent project submittals. Additionally, during the two-week public comment period, the applicant separately met with the east and west property owners to discuss lingering concerns that were raised and modified window treatments, privacy mitigation planting plan, and offered monthly pool cleaning to the eastern property owners during construction. The proposal meets the prescriptive requirements of the Single-Family Residential (R-1) Ordinance and other applicable City ordinances and was approved by the Community Development Director on January 8, 2016. The decision was appealed by Matthew R. and Angela M.D. Miller (eastern property owner at 21884 Oakview Lane) on January 21, 2016 and brought to the February 23, 2016 Planning Commission public hearing. The Commission was tasked to look at whether the proposed project met the criteria set forth in the Municipal Code and determined that there were no findings to grant the appeal (see Attachment H – Planning Commission staff report provides the discussion related to the appeal). Therefore, the Planning Commission upheld the Director’s approval and denied the appeal. The Planning Commission’s decision was subsequently appealed by Jan Kucera Jr. (western property owner at 21917 Oakview Lane) on February 24, 2016 and by Matthew R. and Angela M.D. Miller on March 1, 2016 (see Attachment C and D). Basis of Appeal The appellants’ basis of appeal of the Planning Commission’s decision is summarized below and categorized into the following topics. Where appropriate, staff's responses are in italics. Appellant Jan Kucera Jr.’s basis of appeal is on the “false findings of the Planning Department regarding privacy, windows, setbacks and detriments to my lifestyle” and that the project is “far from harmonious with anything we as neighbors call home.” Appellants Matthew R. and Angela M.D. Miller states that the Planning Commission “did not solve our privacy issues or solar shading issues on our swimming pool or our roof”; they “believe that this two story construction is not harmonious” is a “detrimental to our existing properties,” and want to see “only single story new construction on the cul-de-sac.” 1. Privacy impacts The intent of the R-1 Ordinance landscape requirements for two-story single-family construction is to provide a reasonable level of privacy to residential lots through tree and shrub plantings for all second story windows and balconies. Such privacy planting requirements do not apply to windows that measure more than five feet from finished floor to window sill, are obscured and inoperable, etc. The applicant has complied with the R-1 Ordinance by proposing to plant all the required privacy planting to ensure that visual impacts into the neighbors’ side 253 and rear yards are mitigated. During the comment period, the appellant (eastern property owner at 21884 Oakview Lane) voiced their concerns to the applicant regarding the existing trees and the proposed privacy trees limiting sun exposure and the potential increase in yard maintenance. In response, the applicant agreed to remove eight Italian Cypresses and the appellant agreed to waive any additional privacy protection measures that the applicant would have had to plant. Additionally, the applicant modified the western elevation by providing obscured and non- operable windows to the master bathroom and one of the second story bedrooms to address the privacy concerns of the other appellant (western property owner at 21917 Oakview Lane). 2. Windows The appellant (western property owner at 21917 Oakview Lane) states that false findings were made regarding windows. However, there are no findings in the R-1 Ordinance associated with second story windows. Although the R-1 Ordinance does not limit the number of windows on a project, it does address concerns about privacy impacts that may result from unlimited glazing. The R-1 Ordinance requires all second story windows that are not exempt from privacy plantings (listed in response #1) provide trees or shrubs in an area bounded by a thirty-degree angle measured from the side edge on each window jamb. The applicant proposes mitigation plantings on all applicable windows subject to the plantings. 3. Setbacks The property is located in the R-10 zoning district and is proposed to meet the required setbacks regulations as depicted in the chart below. Additionally, since the project proposed at least 15’ second floor side yard setbacks, the project is not subject to the Design Review process. First floor outline 30°  Privacy Planting Tree Width of second story window Second story outline 254 Required Proposed Setbacks: First Floor Second Floor First Floor Second Floor Side Combined 15’ (no side less than 5’) Combined 25’ (no side less than 10’) 10’-9” (west) and 5’ (east) 15’-7” (west) and 20’-1” (east) Front 20’ 25’ 25’ 29’ – 5” Rear 20’ 25’ 32’ – 11” 36’ – 7” 4. Detriments to lifestyle and existing properties and effect on quality of life The project is located within the R1-10 Single Family residential zoning district, reinforces the predominately low-intensity use settings, and deemed compatible with the residential uses in the surrounding residential neighborhood. The project is determined to be consistent with the regulations in the R-1 Ordinance, therefore not detrimental or injurious to property. 5. Solar shading on pool and roof In order to preserve and enhance residential lots, one of the guiding purposes of the R-1 Ordinance is to ensure provisions of light, air and a reasonable level of privacy to individual residential parcels. These purposes are addressed through the prescriptive requirements within the R-1 Ordinance for building setbacks and daylight plane. The daylight plane established for the single story portion of the project ensures light and air at the single story level while increased setback requirements on the second level ensure that a reasonable level of sunlight and air is available for neighbors. The proposed project meets and exceeds setbacks and the first floor portion of the two-story structure is within the daylight plane as required by the R-1 Ordinance. 6. Not harmonious at end of cul-de-sac One of the purposes of the R-1 Ordinance is to ensure a reasonable level of compatibility in scale of structures within residential neighborhoods. Although the adjacent properties are single-story homes, there are three other two-story homes on the street and several other newer and older two- story homes in the general neighborhood. This is a neighborhood in transition and most new homes proposed within the neighborhood are two-story. The size of the home is based on the allowable Floor Area Ratio (FAR). In the case of a property zoned R-1, the allowable FAR is 45% of the net lot area with no maximum house size limitations. This means that a larger lot could have a larger home developed on the site while a smaller lot would have a smaller home. The proposed FAR maximizes the development potential on the property, but does not exceed the allowable FAR. 7. Residents in cul-de-sac only want to see single story construction. Since the subject property is not located in a Single Family Residential District Restricted to One Story (indicated with the “i” suffix), a proposed project on the site cannot be required to be limited to a single story. The subject property’s zoning (R1-10) permits the applicant to 255 construct up to a two-story home provided that all development regulations regarding two-story developments (floor area ratios, setbacks, second-to-first floor ratio, etc.) are met. In addition, the R-1 Ordinance allows a maximum height of 28 feet (no more than two stories) for principal dwellings on the site. The proposed building is 25 feet 4 inches in height and therefore, under the maximum allowed height in this zoning district. The residents have been advised of the option and process of designating their neighborhood to a Single Family Residential District Restricted to One Story. While this would not apply to the current project, future projects could be limited to a single story if the neighborhood receives a One Story designation. Noticing and Public Outreach The following table is a brief summary of the noticing done for this appeal: Notice of Public Hearing, Site Signage & Legal Ad Agenda  13 public hearing notices mailed to interested parties and property owners adjacent to the project site (at least 14 days prior to hearing)  Newspaper posting (at least 10 days prior to hearing)  Site Signage (City-provided appeal signage placed on site at least 14 days prior to hearing)  Posted on the City's official notice bulletin board (one week prior to hearing)  Posted on the City of Cupertino’s Web site (one week prior to hearing) Staff received an e-mail from the appellant (Angela M.D. Miller) and an e-mail from a Cupertino resident regarding the Planning Commission meeting. This property owner did not provide an address but was e-mailed a Notice of Public Hearing for this City Council meeting (Attachment E). CEQA The project is categorically exempt from the California Environmental Quality Act (CEQA) per section 15303 (New construction or conversion of small structures) of the CEQA Guidelines. Sustainability Impact None. Fiscal Impact None. _________________ Prepared by: Ellen Yau, Assistant Planner Reviewed by: Benjamin Fu, Assistant Director of Community Development Aarti Shrivastava, Assistant City Manager 256 Approved for Submission by: David Brandt, City Manager Attachments: A. Draft Resolution B. Plan Set C. Appeal Filed by Jan Kucera Jr. D. Appeal Filed by Matthew R. Miller and Angela M.D. Miller E. Comment Letters F. Resolution No. 6798 G. Resolution No. 6799 H. Planning Commission Staff Report, 2/23/2016 I. Planning Commission Meeting Minutes, 2/23/2016 J. Original Appeal of Director’s Decision filed by Matthew R. Miller and Angela M.D. Miller K. Two-Story and Minor Residential Permits (R-2015-08 and RM-2015-08) action letter, 1/8/2016 257 R-2015-08 and RM-2015-08 CITY OF CUPERTINO 10300 Torre Avenue Cupertino, California 95014 DRAFT RESOLUTION NO. 16-_____ OF THE CITY COUNCIL OF CUPERTINO DENYING AN APPEAL AND UPHOLDING THE PLANNING COMMISSION’S FEBRUARY 23, 2016 DECISION TO DENY AN APPEAL OF A DIRECTOR’S APPROVAL OF A TWO-STORY PERMIT (R-2015-08) TO ALLOW THE CONSTRUCTION OF A NEW 5,140-SQUARE-FOOT SINGLE-FAMILY RESIDENCE AND A MINOR RESIDENTIAL PERMIT (RM-2015-08) TO ALLOW A SECOND STORY BALCONY ON THE NEW RESIDENCE (APPLICATION NO. R-2015-08 AND RM-2015-08 LOCATED AT 21900 Oakview Lane, (APN: 326-19-105) SECTION I: PROJECT DESCRIPTION Application No.: R-2015-08 and RM-2015-08 Applicant: WEC & Assoc. (Kingkay Capital, LLC) Property Owner: George Wang Appellants: Jan Kucera Jr., and Matthew R. and Angela M.D. Miller Location: 21900 Oakview Lane, (APN: 326-19-105) SECTION II: FINDINGS FOR A TWO-STORY AND MINOR RESIDENTIAL PERMITS: WHEREAS, the City Council of the City of Cupertino received an appeal of the Planning Commission’s February 23, 2016 approval for a Two-Story Permit and a Minor Residential Permit as described in Section I. of this Resolution; and WHEREAS, the necessary public notices have been given as required by the Procedural Ordinance of the City of Cupertino, and the Planning Commission has held at least one public hearing in regard to the application; and WHEREAS, the applicant has met the burden of proof required to support said application; and WHEREAS, the City Council is the final decision maker for this application, and, based upon its independent judgment determines that the project is determined to be categorically exempt from the California Environmental Quality Act (CEQA); and WHEREAS, the City Council finds as follows with regard to this application: 1. The project is consistent with the Cupertino General Plan, any applicable specific plans, zoning ordinance and the purposes of this title. The project is consistent with the regulations and intent of the Cupertino General Plan and Single-Family Residential (R-1) Ordinance. The project complies with all established and required setbacks, floor area 258 Draft Resolution No. 16- R-2015-08 and RM-2015-08 April 19, 2016 ratio limitations, privacy protection planting requirements and other Municipal Code requirements. In addition, the proposed development meets all prescriptive development requirements of the Parking, Landscape, and Fence ordinances; and the two-story non-discretionary permit procedural requirements in the R-1 Ordinance. 2. The granting of the permit will not result in a condition that is detrimental or injurious to property or improvements in the vicinity, and will not be detrimental to the public health, safety or welfare. The granting of the permit will not result in a condition that is detrimental or injurious to property improvements in the vicinity, and will not be detrimental to the public health, safety or welfare as the projects is located within the R1-10 (Single Family Residential) zoning district, and will be compatible with the surrounding residential uses of the neighborhood. The purpose of the R-1 ordinance is to provide light, air and a reasonable level of privacy to individual residential parcels, ensure a reasonable level of compatibility in scale of structures within the neighborhood and reinforce the predominantly low-intensity setting in the community through setbacks, daylight plane and privacy planting requirements, and other prescriptive requirements incorporated within the R-1 Ordinance. The neighborhood is in transition and there is a healthy mix of single-story and two-story homes in the general area making the proposed project compatible with the neighborhood. 3. The proposed project is harmonious in scale and design with the general neighborhood. The proposed project is located in a residential area consisting of single-family homes with a mix of single- story and two-story homes. There are three other two-story homes on the street and several other newer and older two-story homes in the general neighborhood. This is a neighborhood in transition and most new homes proposed within the neighborhood are two-story. Overall, the proposed project maintains the single- family home scale found compatible with the general neighborhood. 4. Adverse visual impacts on adjoining properties have been reasonably mitigated. Any potential adverse impacts on adjoining properties have been reasonably mitigated through the privacy protection plantings and installation of a front-yard tree as required. NOW, THEREFORE, BE IT RESOLVED: That after careful consideration of the maps, facts, exhibits, testimony and other evidence submitted in this matter, subject to the conditions which are enumerated in this Resolution and the Planning Commission Resolution numbers 6798 and 6799, The appeal of the applications for a Two-Story and a Minor Residential Permits, Application nos. R-2015- 08 and RM-2015-08 is hereby DENIED, and the Planning Commission’s February 23, 2016 approval is hereby UPHELD, and that the subconclusions upon which the findings and conditions specified in this Resolution and Planning Commission Resolutions 6798 and 6799, are based and contained in the Public Hearing record concerning Application nos. R-2015-08 and RM-2015-08 as set forth in the Minutes of the Planning Commission Meeting of February 23, 2016 and City Council Meeting of April 19,2016, and are incorporated by reference as though fully set forth herein. 259 Draft Resolution No. 16- R-2015-08 and RM-2015-08 April 19, 2016 Prior to seeking judicial review of this decision, any interested party, including an applicant, must file a petition for reconsideration with the city clerk within ten days after the date of mailing of this decision under Municipal Code §2.08.096. The time for an appeal of a final decision is governed by Code of Civil Procedure Section 1094.6. SECTION III: CONDITIONS ADMINISTERED BY THE COMMUNITY DEVELOPMENT DEPT. 1. APPROVED EXHIBITS This approval is based on a plan set entitled, “New Residence 21900 Oakview Lane, Cupertino CA” consisting of eleven sheets labeled “A.1 to A.10 and a topographic survey”, dated “Received January 6, 2016” except as may be amended by conditions in this resolution. 2. ANNOTATION OF THE CONDITIONS OF APPROVAL The conditions of approval set forth shall be incorporated into and annotated on the first page of the building plans. 3. ACCURACY OF PROJECT PLANS The applicant/property owner is responsible to verify all pertinent property data including but not limited to property boundary locations, building setbacks, property size, building square footage, any relevant easements and/or construction records. Any misrepresentation of any property data may invalidate this approval and may require additional review. 4. COMPLIANCE WITH PUBLIC WORKS CONFIRMATION FORM The project shall comply with the requirements indicated on the Public Works Confirmation form, including, but not limited to, dedications, easements, off-site improvements, undergrounding of utilities, all necessary agreements, and utility installations/relocations as deemed necessary by the Director of Public Works and required for public health and safety. The Public Works Confirmation is a preliminary review, and is not an exhaustive review of the subject development. Additional requirements may be established and implemented during the construction permitting process. The project construction plans shall address these requirements with the construction permit submittal, and all required improvements shall be completed to the satisfaction of the Director of Public Works prior to final occupancy. 5. GEOTECHNICAL PLAN REVIEW The applicant’s geotechnical consultant shall inspect, test, and approve all geotechnical aspects of the development plans to ensure that their recommendations have been incorporated. The Geotechnical Plan Review should be submitted to the City for review by the City staff prior to issuance of permits. 6. GEOTECHNICAL CONSTRUCTION INSPECTIONS The applicant’s geotechnical consultant shall inspect, test (as needed), and approve all geotechnical aspects of the project construction. The inspections shall include, but not necessarily be limited to: site preparation and grading, site surface and subsurface drainage improvements and excavations for foundations and retaining walls prior to the placement of steel and concrete. The following shall specifically be performed: 260 Draft Resolution No. 16- R-2015-08 and RM-2015-08 April 19, 2016 The applicant’s geotechnical consultant shall inspect all foundation excavations to ensure that the subsurface conditions are as anticipated, and that footings are embedded sufficiently into competent earth materials. The results of these inspections and the as-built conditions of the project shall be described by the geotechnical consultant in a letter and submitted to the City Engineer for review prior to final project approval. 7. PRIVACY PLANTING The neighbors on the east side stated they will waive the privacy tree requirement in order to gain sun exposure to their property, therefore those privacy plantings are not indicated on the plans. Prior to building permit issuance, the applicant shall submit the waiver and the final privacy- planting plan (of all required privacy planting) for review and approval from the Planning Division. The variety, size, and planting distance shall be consistent with the City’s requirements. Should a waiver not be obtained, the applicant shall plant all required privacy planting in compliance with the R-1 Ordinance. 8. PRIVACY PROTECTION COVENANT The property owner shall record a covenant on this property to inform future property owners of the privacy protection measures and tree protection requirements consistent with the R-1 Ordinance, for all windows with views into neighboring yards and a sill height that is 5 feet or less from the second story finished floor. The precise language will be subject to approval by the Director of Community Development. Proof of recordation must be submitted to the Community Development Department prior to final occupancy of the residence. 9. LANDSCAPE PROJECT SUBMITTAL: The applicant shall submit a full landscape project submittal, per sections 490.1, 492.1, and 492.3 of the Department of Water Resources Model Water Efficient Landscape Ordinance, for projects with landscape area more than 500 square feet; the applicant shall submit either a full landscape project submittal or submit the Prescriptive Compliance Checklist per Appendix D of the Department of Water Resources Model Water Efficient Landscape Ordinance for projects with landscape area more than 500 square feet and less than 2,500 square feet. The Landscape Documentation Package or Prescriptive Compliance Checklist shall be reviewed and approved to the satisfaction of the Director of Community Development prior to issuance of building permits. 10. CONSULTATION WITH OTHER DEPARTMENTS The applicant is responsible to consult with other departments and/or agencies with regard to the proposed project for additional conditions and requirements. Any misrepresentation of any submitted data may invalidate an approval by the Community Development Department. 11. EXTERIOR BUILDING MATERIALS/TREATMENTS Final building exterior treatment plan (including but not limited to details on exterior color, material, architectural treatments and/or embellishments) shall be reviewed and approved by the Director of Community Development prior to issuance of building permits. The final building exterior plan shall closely resemble the details shown on the original approved plans. Any exterior changes determined to be substantial by the Director of Community Development shall require a minor modification approval with neighborhood input. 261 Draft Resolution No. 16- R-2015-08 and RM-2015-08 April 19, 2016 12. INDEMNIFICATION Except as otherwise prohibited by law, the applicant shall indemnify and hold harmless the City, its City Council, and its officers, employees and agents (collectively, the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against one or more of the indemnified parties or one or more of the indemnified parties and the applicant to attack, set aside, or void this Resolution or any permit or approval authorized hereby for the project, including (without limitation) reimbursing the City its actual attorneys’ fees and costs incurred in defense of the litigation. The applicant shall pay such attorneys’ fees and costs within 30 days following receipt of invoices from City. Such attorneys’ fees and costs shall include amounts paid to counsel not otherwise employed as City staff and shall include City Attorney time and overhead costs and other City staff overhead costs and any costs directly related to the litigation reasonably incurred by City. 13. NOTICE OF FEES, DEDICATIONS, RESERVATIONS OR OTHER EXACTIONS The Conditions of Project Approval set forth herein may include certain fees, dedication requirements, reservation requirements, and other exactions. Pursuant to Government Code Section 66020(d) (1), these Conditions constitute written notice of a statement of the amount of such fees, and a description of the dedications, reservations, and other exactions. You are hereby further notified that the 90-day approval period in which you may protest these fees, dedications, reservations, and other exactions, pursuant to Government Code Section 66020(a), has begun. If you fail to file a protest within this 90-day period complying with all of the requirements of Section 66020, you will be legally barred from later challenging such exactions. PASSED AND ADOPTED this 19th day of April, 2016, Regular Meeting of the City Council of the City of Cupertino, State of California, by the following roll call vote: AYES: CITY COUNCIL MEMBERS: NOES: CITY COUNCIL MEMBERS: ABSTAIN: CITY COUNCIL MEMBERS: ABSENT: CITY COUNCIL MEMBERS: ATTEST: APPROVED: Grace Schmidt Barry Chang, Mayor City Clerk City of Cupertino 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 R-2015-08 CITY OF CUPERTINO 10300 Torre Avenue Cupertino, California 95014 RESOLUTION NO. 6798 OF THE PLANNING COMMISSION OF THE CITY OF CUPERTINO DENYING AN APPEAL AND UPHOLDING THE DIRECTOR OF COMMUNITY DEVELOPMENT’S DECISION TO ALLOW THE CONSTRUCTION OF A NEW 5,140 SQUARE FOOT SINGLE FAMILY RESIDENCE AT 21900 OAKVIEW LANE SECTION I: PROJECT DESCRIPTION Application No.: R-2015-08 Applicant: WEC & Assoc. (Kingkay Capital, LLC) Appellant: Matthew and Angela Miller, 21884 Oakview Lane Location: 21900 Oakview Lane. (APN 326-19-105) SECTION II: FINDINGS FOR A TWO STORY PERMIT: WHEREAS, the City of Cupertino received an application for a Two-Story Permit as described in Section I of this Resolution; WHEREAS, the necessary notices were given and the comment period for the application was provided as required by the Procedural Ordinance of the City of Cupertino; WHEREAS, the City was able to make the findings required under Section 19.28.140 (B) and the application was approved with conditions on January 8, 2016; and WHEREAS, the notice of decision was mailed to the appropriate parties, including the applicant and any person who contacted City staff with comments during the comment period, notifying them about the possibility of appealing a project; and WHEREAS, the Planning Commission of the City of Cupertino received an appeal for the Community Development Director’s approval of the Two-Story Permit; and WHEREAS, the necessary public notices have been given as required by the Procedural Ordinance of the City of Cupertino, and the Planning Commission has held at least one public hearing in regard to the appeal; and 282 Resolution No. 6798 R-2015-08 February 23, 2016 WHEREAS, the appellant has not met the burden of proof required to support said appeal; and WHEREAS, the project is determined to be categorically exempt from the California Environmental Quality Act (CEQA); and WHEREAS, the Planning Commission finds as follows with regard to this application: a) The project is consistent with the Cupertino General Plan, any applicable specific plans, zoning ordinance and the purposes of this title. The project is consistent with the regulations and intent of the Cupertino General Plan and Single-Family Residential (R-1) Ordinance. The project complies with all established and required setbacks, floor area ratio limitations, privacy protection planting requirements and other Municipal Code requirements. In addition, the proposed development meets all prescriptive development requirements of the Parking, Landscape, and Fence ordinances; and the two-story non-discretionary permit procedural requirements in the R-1 ordinance. b) The granting of the permit will not result in a condition that is detrimental or injurious to property or improvements in the vicinity, and will not be detrimental to the public health, safety or welfare. The granting of the permit will not result in a condition that is detrimental or injurious to property improvements in the vicinity, and will not be detrimental to the public health, safety or welfare as the projects is located within the R1-10 (Single Family Residential) zoning district, and will be compatible with the surrounding uses of the neighborhood. The purpose of the R-1 ordinance is to provide light, air and a reasonable level of privacy to individual residential parcels, ensure a reasonable level of compatibility in scale of structures within the neighborhood and reinforce the predominantly low-intensity setting in the community through setbacks, daylight plane and privacy planting requirements, and other prescriptive requirements incorporated within the R-1 Ordinance. The neighborhood is in transition and there is a healthy mix of single-story and two-story homes in the general area making the proposed project compatible with the neighborhood. c) The proposed project is harmonious in scale and design with the general neighborhood. The proposed project is located in a residential area consisting of single-family homes with a mix of single-story and two-story homes. There are three other two-story homes on the street and several other newer and older two-story homes in the general neighborhood. Overall, the proposed project maintains the single-family home scale found compatible with the general neighborhood. 283 Resolution No. 6798 R-2015-08 February 23, 2016 d) Adverse visual impacts on adjoining properties have been reasonably mitigated. Any potential adverse impacts on adjoining properties have been reasonably mitigated through the privacy protection plantings and installation of a front-yard tree as required. NOW, THEREFORE, BE IT RESOLVED: That after careful consideration of maps, facts, exhibits, testimony and other evidence submitted in this matter, subject to the conditions which are enumerated in this Resolution beginning on PAGE 2 thereof, the appeal of an application for a Two-Story Permit, Application no. R-2015-08 is hereby denied and the Director of Community Development’s approval of the Two-Story Permit is upheld; and That the subconclusions upon which the findings and conditions specified in this Resolution are based and contained in the Public Hearing record concerning Application no. R-2015-08 as set forth in the Minutes of Planning Commission Meeting of February 23, 2016, and are incorporated by reference as though fully set forth herein. SECTION III: CONDITIONS ADMINISTERED BY THE COMMUNITY DEVELOPMENT DEPT. 1. APPROVED PROJECT This approval is based on a plan set entitled, “New Residence 21900 Oakview Lane, Cupertino CA” consisting of eleven sheets labeled “A.1 to A.10 and a topographic survey”, dated “Received January 6, 2016” except as may be amended by conditions in this resolution. 2. ANNOTATION OF THE CONDITIONS OF APPROVAL The conditions of approval set forth shall be incorporated into and annotated on the building plans. 3. ACCURACY OF THE PROJECT PLANS The applicant/property owner is responsible to verify all pertinent property data including but not limited to property boundary locations, building setbacks, property size, building square footage, any relevant easements and/or construction records. Any misrepresentation of any property data may invalidate this approval and may require additional review. 4. CONCURRENT APPROVAL CONDITIONS The conditions of approval contained in file no. RM-2015-08 shall be applicable to this approval. 284 Resolution No. 6798 R-2015-08 February 23, 2016 5. COMPLIANCE WITH PUBLIC WORKS CONFIRMATION FORM The project shall comply with the requirements indicated on the Public Works Confirmation form, including, but not limited to, dedications, easements, off-site improvements, undergrounding of utilities, all necessary agreements, and utility installations/relocations as deemed necessary by the Director of Public Works and required for public health and safety. The Public Works Confirmation is a preliminary review, and is not an exhaustive review of the subject development. Additional requirements may be established and implemented during the construction permitting process. The project construction plans shall address these requirements with the construction permit submittal, and all required improvements shall be completed to the satisfaction of the Director of Public Works prior to final occupancy. 6. GEOTECHNICAL PLAN REVIEW The applicant’s geotechnical consultant shall inspect, test, and approve all geotechnical aspects of the development plans to ensure that their recommendations have been incorporated. The Geotechnical Plan Review should be submitted to the City for review by the City staff prior to issuance of permits. 7. GEOTECHNICAL CONSTRUCTION INSPECTIONS The applicant’s geotechnical consultant shall inspect, test (as needed), and approve all geotechnical aspects of the project construction. The inspections shall include, but not necessarily be limited to: site preparation and grading, site surface and subsurface drainage improvements and excavations for foundations and retaining walls prior to the placement of steel and concrete. The following shall specifically be performed: The applicant’s geotechnical consultant shall inspect all foundation excavations to ensure that the subsurface conditions are as anticipated, and that footings are embedded sufficiently into competent earth materials. The results of these inspections and the as-built conditions of the project shall be described by the geotechnical consultant in a letter and submitted to the City Engineer for review prior to final project approval. 8. PRIVACY PLANTING The neighbors on the east side stated they will waive the privacy tree requirement in order to gain sun exposure to their property, therefore those privacy plantings are not indicated on the plans. Prior to building permit issuance, the applicant shall submit the waiver and the final privacy-planting plan (of all required privacy planting) for review and approval from the Planning Division. The variety, size, and planting distance shall be consistent with the City’s requirements. Should a waiver not be obtained, the 285 Resolution No. 6798 R-2015-08 February 23, 2016 applicant shall plant all required privacy planting in compliance with the R-1 Ordinance. 9. PRIVACY PROTECTION COVENANT The property owner shall record a covenant on this property to inform future property owners of the privacy protection measures and tree protection requirements consistent with the R-1 Ordinance, for all windows with views into neighboring yards and a sill height that is 5 feet or less from the second story finished floor. The precise language will be subject to approval by the Director of Community Development. Proof of recordation must be submitted to the Community Development Department prior to final occupancy of the residence. 10. LANDSCAPE PROJECT SUBMITTAL: The applicant shall submit a full landscape project submittal, per sections 490.1, 492.1, and 492.3 of the Department of Water Resources Model Water Efficient Landscape Ordinance, for projects with landscape area more than 500 square feet; the applicant shall submit either a full landscape project submittal or submit the Prescriptive Compliance Checklist per Appendix D of the Department of Water Resources Model Water Efficient Landscape Ordinance for projects with landscape area more than 500 square feet and less than 2,500 square feet. The Landscape Documentation Package or Prescriptive Compliance Checklist shall be reviewed and approved to the satisfaction of the Director of Community Development prior to issuance of building permits. 11. CONSULTATION WITH OTHER DEPARTMENTS The applicant is responsible to consult with other departments and/or agencies with regard to the proposed project for additional conditions and requirements. Any misrepresentation of any submitted data may invalidate an approval by the Community Development Department. 12. EXTERIOR BUILDING MATERIALS/TREATMENTS Final building exterior treatment plan (including but not limited to details on exterior color, material, architectural treatments and/or embellishments) shall be reviewed and approved by the Director of Community Development prior to issuance of building permits. The final building exterior plan shall closely resemble the details shown on the original approved plans. Any exterior changes determined to be substantial by the Director of Community Development shall require a minor modification approval with neighborhood input. 13. INDEMNIFICATION Except as otherwise prohibited by law, the applicant shall indemnify and hold harmless the City, its City Council, and its officers, employees and agents (collectively, the 286 Resolution No. 6798 R-2015-08 February 23, 2016 “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against one or more of the indemnified parties or one or more of the indemnified parties and the applicant to attack, set aside, or void this Resolution or any permit or approval authorized hereby for the project, including (without limitation) reimbursing the City its actual attorneys’ fees and costs incurred in defense of the litigation. The applicant shall pay such attorneys’ fees and costs within 30 days following receipt of invoices from City. Such attorneys’ fees and costs shall include amounts paid to counsel not otherwise employed as City staff and shall include City Attorney time and overhead costs and other City staff overhead costs and any costs directly related to the litigation reasonably incurred by City. 14. NOTICE OF FEES, DEDICATIONS, RESERVATIONS OR OTHER EXACTIONS The Conditions of Project Approval set forth herein may include certain fees, dedication requirements, reservation requirements, and other exactions. Pursuant to Government Code Section 66020(d) (1), these Conditions constitute written notice of a statement of the amount of such fees, and a description of the dedications, reservations, and other exactions. You are hereby further notified that the 90-day approval period in which you may protest these fees, dedications, reservations, and other exactions, pursuant to Government Code Section 66020(a), has begun. If you fail to file a protest within this 90-day period complying with all of the requirements of Section 66020, you will be legally barred from later challenging such exactions. PASSED AND ADOPTED this 23rd day of February, 2016, Regular Meeting of the Planning Commission of the City of Cupertino, State of California, by the following roll call vote: AYES: COMMISSIONERS: Chair Takahashi, Vice Chair Gong, Sun, Paulsen, Lee NOES: COMMISSIONERS: ABSTAIN: COMMISSIONERS: ABSENT: COMMISSIONERS: ATTEST: APPROVED: /s/Piu Ghosh ________ /s/Alan Takahashi________ Piu Ghosh Alan Takahashi Principal Planner Chair, Planning Commission 287 RM-2015-08 CITY OF CUPERTINO 10300 Torre Avenue Cupertino, California 95014 RESOLUTION NO. 6799 OF THE PLANNING COMMISSION OF THE CITY OF CUPERTINO DENYING AN APPEAL AND UPHOLDING THE DIRECTOR OF COMMUNITY DEVELOPMENT’S DECISION TO ALLOW THE CONSTRUCTION OF A SECOND- STORY BALCONY ON THE NEW RESIDENCE AT 21900 OAKVIEW LANE SECTION I: PROJECT DESCRIPTION Application No.: RM-2015-08 Applicant: WEC & Assoc. (Kingkay Capital, LLC) Appellant: Matthew and Angela Miller, 21884 Oakview Lane Location: 21900 Oakview Lane. (APN 326-19-105) SECTION II: FINDINGS FOR A MINOR RESIDENTIAL PERMIT: WHEREAS, the City of Cupertino received an application for a Minor Residential Permit as described in Section I of this Resolution; WHEREAS, the necessary notices were given and the comment period for the application was provided as required by the Procedural Ordinance of the City of Cupertino; WHEREAS, the City was able to make the findings required under Section 19.28.140 (A) and the application was approved with conditions on January 8, 2016; and WHEREAS, the notice of decision was mailed to the appropriate parties, including the applicant and any person who contacted City staff with comments during the comment period, notifying them about the possibility of appealing a project; and WHEREAS, the Planning Commission of the City of Cupertino received an appeal for the Community Development Director’s approval of the Minor Residential Permit; and WHEREAS, the necessary public notices have been given as required by the Procedural Ordinance of the City of Cupertino, and the Planning Commission has held at least one public hearing in regard to the appeal; and 288 Resolution No. 6799 RM-2015-08 February 23, 2016 WHEREAS, the appellant has not met the burden of proof required to support said appeal; and WHEREAS, the project is determined to be categorically exempt from the California Environmental Quality Act (CEQA); and WHEREAS, the Planning Commission finds as follows with regard to this application: a) The project is consistent with the Cupertino General Plan, any applicable specific plans, zoning ordinance and the purposes of this title. The project is consistent with the regulations and intent of the Cupertino General Plan and Single-Family Residential (R-1) Ordinance. The project complies with all established and required setbacks, privacy protection planting requirements and other Municipal Code requirements. In addition, the second story balcony and privacy protection requirements of the R-1 Ordinance are met. b) The granting of the permit will not result in a condition that is detrimental or injurious to property or improvements in the vicinity, and will not be detrimental to the public health, safety or welfare. The granting of the permit will not result in a condition that is detrimental or injurious to property improvements in the vicinity, and will not be detrimental to the public health, safety or welfare as the projects is located within the R1-10 (Single Family Residential) zoning district, and will be compatible with the surrounding uses of the neighborhood. The purpose of the R-1 ordinance is to provide light, air and a reasonable level of privacy to individual residential parcels, ensure a reasonable level of compatibility in scale of structures within the neighborhood and reinforce the predominantly low-intensity setting in the community through prescriptive requirements incorporated in the R-1 ordinance. The neighborhood is in transition and there is a healthy mix of single story and two story homes in the general area making the proposed project compatible with the neighborhood. c) The proposed project is harmonious in scale and design with the general neighborhood. The proposed project is located in a residential area consisting of single-family homes with a mix of single-story and two-story homes. The proposed project maintains the single-family home scale found compatible with the general neighborhood. 289 Resolution No. 6799 RM-2015-08 February 23, 2016 d) Adverse visual impacts on adjoining properties have been reasonably mitigated. Any potential adverse impacts on adjoining properties have been reasonably mitigated through the privacy protection plantings required to reasonably obscure the viewsheds of the second story balcony. NOW, THEREFORE, BE IT RESOLVED: That after careful consideration of maps, facts, exhibits, testimony and other evidence submitted in this matter, subject to the conditions which are enumerated in this Resolution beginning on PAGE 2 thereof, the appeal of an application for a Minor Residential Permit, Application no. RM-2015-08 is hereby denied and the Director of Community Development’s approval of the Minor Residential Permit is upheld; and That the subconclusions upon which the findings and conditions specified in this Resolution are based and contained in the Public Hearing record concerning Application no. RM-2015-08 as set forth in the Minutes of Planning Commission Meeting of February 23, 2016, and are incorporated by reference as though fully set forth herein. SECTION III: CONDITIONS ADMINISTERED BY THE COMMUNITY DEVELOPMENT DEPT. 1. APPROVED PROJECT This approval is based on a plan set entitled, “New Residence 21900 Oakview Lane, Cupertino CA” consisting of eleven sheets labeled “A.1 to A.10 and a topographic survey”, dated “Received January 6, 2016” except as may be amended by conditions in this resolution. 2. ANNOTATION OF THE CONDITIONS OF APPROVAL The conditions of approval set forth shall be incorporated into and annotated on the building plans. 3. ACCURACY OF THE PROJECT PLANS The applicant/property owner is responsible to verify all pertinent property data including but not limited to property boundary locations, building setbacks, property size, building square footage, any relevant easements and/or construction records. Any misrepresentation of any property data may invalidate this approval and may require additional review. 4. CONCURRENT APPROVAL CONDITIONS The conditions of approval contained in file no. R-2015-08 shall be applicable to this approval. 290 Resolution No. 6799 RM-2015-08 February 23, 2016 5. COMPLIANCE WITH PUBLIC WORKS CONFIRMATION FORM The project shall comply with the requirements indicated on the Public Works Confirmation form, including, but not limited to, dedications, easements, off-site improvements, undergrounding of utilities, all necessary agreements, and utility installations/relocations as deemed necessary by the Director of Public Works and required for public health and safety. The Public Works Confirmation is a preliminary review, and is not an exhaustive review of the subject development. Additional requirements may be established and implemented during the construction permitting process. The project construction plans shall address these requirements with the construction permit submittal, and all required improvements shall be completed to the satisfaction of the Director of Public Works prior to final occupancy. 6. GEOTECHNICAL PLAN REVIEW The applicant’s geotechnical consultant shall inspect, test, and approve all geotechnical aspects of the development plans to ensure that their recommendations have been incorporated. The Geotechnical Plan Review should be submitted to the City for review by the City staff prior to issuance of permits. 7. GEOTECHNICAL CONSTRUCTION INSPECTIONS The applicant’s geotechnical consultant shall inspect, test (as needed), and approve all geotechnical aspects of the project construction. The inspections shall include, but not necessarily be limited to: site preparation and grading, site surface and subsurface drainage improvements and excavations for foundations and retaining walls prior to the placement of steel and concrete. The following shall specifically be performed: The applicant’s geotechnical consultant shall inspect all foundation excavations to ensure that the subsurface conditions are as anticipated, and that footings are embedded sufficiently into competent earth materials. The results of these inspections and the as-built conditions of the project shall be described by the geotechnical consultant in a letter and submitted to the City Engineer for review prior to final project approval. 8. PRIVACY PLANTING The neighbors on the east side stated they will waive the privacy tree requirement in order to gain sun exposure to their property, therefore those privacy plantings are not indicated on the plans. Prior to building permit issuance, the applicant shall submit the waiver and the final privacy-planting plan (of all required privacy planting) for review and approval from the Planning Division. The variety, size, and planting distance shall be consistent with the City’s requirements. Should a waiver not be obtained, the 291 Resolution No. 6799 RM-2015-08 February 23, 2016 applicant shall plant all required privacy planting in compliance with the R-1 Ordinance. 9. PRIVACY PROTECTION COVENANT The property owner shall record a covenant on this property to inform future property owners of the privacy protection measures and tree protection requirements consistent with the R-1 Ordinance, for all windows with views into neighboring yards and a sill height that is 5 feet or less from the second story finished floor. The precise language will be subject to approval by the Director of Community Development. Proof of recordation must be submitted to the Community Development Department prior to final occupancy of the residence. 10. LANDSCAPE PROJECT SUBMITTAL: The applicant shall submit a full landscape project submittal, per sections 490.1, 492.1, and 492.3 of the Department of Water Resources Model Water Efficient Landscape Ordinance, for projects with landscape area more than 500 square feet; the applicant shall submit either a full landscape project submittal or submit the Prescriptive Compliance Checklist per Appendix D of the Department of Water Resources Model Water Efficient Landscape Ordinance for projects with landscape area more than 500 square feet and less than 2,500 square feet. The Landscape Documentation Package or Prescriptive Compliance Checklist shall be reviewed and approved to the satisfaction of the Director of Community Development prior to issuance of building permits. 11. CONSULTATION WITH OTHER DEPARTMENTS The applicant is responsible to consult with other departments and/or agencies with regard to the proposed project for additional conditions and requirements. Any misrepresentation of any submitted data may invalidate an approval by the Community Development Department. 12. EXTERIOR BUILDING MATERIALS/TREATMENTS Final building exterior treatment plan (including but not limited to details on exterior color, material, architectural treatments and/or embellishments) shall be reviewed and approved by the Director of Community Development prior to issuance of building permits. The final building exterior plan shall closely resemble the details shown on the original approved plans. Any exterior changes determined to be substantial by the Director of Community Development shall require a minor modification approval with neighborhood input. 292 Resolution No. 6799 RM-2015-08 February 23, 2016 13. INDEMNIFICATION Except as otherwise prohibited by law, the applicant shall indemnify and hold harmless the City, its City Council, and its officers, employees and agents (collectively, the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against one or more of the indemnified parties or one or more of the indemnified parties and the applicant to attack, set aside, or void this Resolution or any permit or approval authorized hereby for the project, including (without limitation) reimbursing the City its actual attorneys’ fees and costs incurred in defense of the litigation. The applicant shall pay such attorneys’ fees and costs within 30 days following receipt of invoices from City. Such attorneys’ fees and costs shall include amounts paid to counsel not otherwise employed as City staff and shall include City Attorney time and overhead costs and other City staff overhead costs and any costs directly related to the litigation reasonably incurred by City. 14. NOTICE OF FEES, DEDICATIONS, RESERVATIONS OR OTHER EXACTIONS The Conditions of Project Approval set forth herein may include certain fees, dedication requirements, reservation requirements, and other exactions. Pursuant to Government Code Section 66020(d) (1), these Conditions constitute written notice of a statement of the amount of such fees, and a description of the dedications, reservations, and other exactions. You are hereby further notified that the 90-day approval period in which you may protest these fees, dedications, reservations, and other exactions, pursuant to Government Code Section 66020(a), has begun. If you fail to file a protest within this 90-day period complying with all of the requirements of Section 66020, you will be legally barred from later challenging such exactions. PASSED AND ADOPTED this 23rd day of February, 2016, Regular Meeting of the Planning Commission of the City of Cupertino, State of California, by the following roll call vote: AYES: COMMISSIONERS: Chair Takahashi, Vice Chair Gong, Sun, Paulsen, Lee NOES: COMMISSIONERS: ABSTAIN: COMMISSIONERS: ABSENT: COMMISSIONERS: ATTEST: APPROVED: /s/Piu Ghosh ________ /s/Alan Takahashi________ Piu Ghosh Alan Takahashi Principal Planner Chair, Planning Commission 293 PLANNING COMMISSION STAFF REPORT Agenda Item No. Agenda Date: February 23, 2016 SUBJECT: Consider an appeal of Two-Story Permit (R-2015-08) to allow the construction of a new 5,140-square-foot single-family residence and a Minor Residential Permit (RM-2015-08) to allow a second story balcony on the new residence. (Application No. R-2015-08 and RM- 2015-08; Applicant: WEC & Assoc. (Kingkay Capital, LLC)); Appellant: Matthew and Angela Miller; Location: 21900 Oakview Lane; APN: 326-19-105) RECOMMENDATION: Staff recommends that the Planning Commission deny the appeal and uphold the Community Development Director’s decision to approve the project in accordance with the draft resolutions (see Attachment 1 and 2). PROJECT DATA: General Plan designation Low Density (1-5 DU/Ac.) Zoning designation R1-10 Environmental review Categorically Exempt from CEQA under Section 15303 Net lot area 11,425 square feet Project consistency with: General Plan Yes Zoning Yes Allowed Proposed Lot coverage 5,713 square feet (45% + 5% for eaves/roof overhangs and covered patios) 3,557 square feet (31.13%) FAR 5,141 square feet (45%) 5,140 square feet (44.98%) Height 28’ 25’ – 4” OFFICE OF COMMUNITY DEVELOPMENT CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 (408) 777-3308 • FAX (408) 777-3333 • planning@cupertino.org 294 R-2015-08 & Appeal of a Two-Story Permit and February 23, 2016 RM-2015-08 a Minor Residential Permit Allowed Proposed Setbacks: First Floor Second Floor First Floor Second Floor Side Combined 15’ (no side less than 5’) Combined 25’ (no side less than 10’) 10’-9” (west) and 5’ (east) 15’-7” (west) and 20’-1” (east) Front 20’ 25’ 25’ 29’ – 5” Rear 20’ 25’ 32’ – 11” 36’ – 7” BACKGROUND: On March 20, 2015 the applicant, WEC & Assoc. (Kingkay Capital, LLC), applied for a Two-Story Permit to allow a new 5,140-square-foot single-family residence and a Minor Residential Permit to allow a second story balcony on the new residence located at 21900 Oakview Lane (see Attachment 3). The project property is located in the R1-10 zoning district that permits two-story homes with a maximum Floor Area Ratio (FAR) of 45%, up to 28 feet in height. The applicant is not proposing to have any outdoor sheds etc., which would increase the FAR beyond 45%. Additionally, the project is not subject to design review since the proposed second floor is less than 66% of the square footage of the first floor and provides at least 15-foot side yard setbacks on the second floor. The project is consistent with all aspects of the Single-Family Residential (R-1) Ordinance and other pertinent City ordinances. Prior to the public comment period for the project, three property owners within the cul- de-sac expressed concerns to staff about privacy impacts, reduced daylight exposure, possible existing ground contamination, increased noise impacts due to construction in the cul-de-sac, and overall project design and massing. With subsequent project submittals, aside from meeting the prescriptive development requirements as established in the Single-Family Residential Ordinance, the applicant incorporated architectural trims to the western wall to provide relief on the portion of the western elevation where the first and second floor walls are not offset. Additionally, during the comment period, the applicant separately met with the east and west property owners to discuss lingering concerns which resulted in the applicant:  Providing obscured and non-openable windows to the master bathroom and one of the second story bedrooms on the western elevation;  Agreeing to remove the eight Italian Cypress trees on the subject site and removing new privacy plantings proposed as requested by the eastern property owners; and  Offering monthly pool cleaning to the eastern property owners during construction. 295 R-2015-08 & Appeal of a Two-Story Permit and February 23, 2016 RM-2015-08 a Minor Residential Permit The project was approved by the Community Development Director on January 8, 2016 with an increase in the front yard setback due to the property owner’s decision to meet the recorded covenant against the properties within the original subdivision entitled “Declaration of Restrictions” section (b) which states that “No dwelling shall be erected on any building plot nearer than twenty-five (25) feet to the front property line.” The last day to appeal the project was January 22, 2016; Matthew and Angela Miller, the property owners to the east, appealed the approval of the Two Story Permit and Minor Residential Permit on January 21, 2016 (see Attachment 4). DISCUSSION: Basis of the Appeal The appellant's basis of appeal is summarized below. Where appropriate, staff's responses are in italics. 1. Oakview Lane is a culdesac with 13 houses, only one of which has a complete second story. That house was built years ago without the culdesac residents knowledge of its two story size until it was too late to appeal. One of the purposes of the R-1 Ordinance is to ensure a reasonable level of compatibility in scale of structures within residential neighborhoods. There are three other two-story homes on the street and several other newer and older two story homes in the general neighborhood. While the appellant indicates that a majority of the homes on this street are single-story structures, there are several two-story old and new homes in the residential neighborhood that this project is proposed in. This is a neighborhood in transition and most new homes proposed within the neighborhood are two-story. Prior to 2005, the R-1 Ordinance allowed the construction of two story homes with a second to first floor ratio of 35% or under to be built with a building permit and no noticing, comment period or a public hearing. The house in reference was constructed in 1999. 2. “This is not a Minor Residential Permit in the scale of this project or zoning ordinances since will affect in many aspects the four direct neighbors and others near by since the size of this construction it is not harmonious with the other houses near by on this street.” Per the R-1 Ordinance, applications for second story balconies which may have privacy impacts on neighbors’ side or rear yards are processed with a Minor Residential Permit as stipulated by Section 19.28.040 (Permits Required for Development) per the procedures outlined in Chapter 19.12, Administration. The proposed plans included a rear facing second floor balcony; therefore, a Minor Residential Permit was required and processed. 296 R-2015-08 & Appeal of a Two-Story Permit and February 23, 2016 RM-2015-08 a Minor Residential Permit 3. “The project can’t be granted since it will result in a condition that is detrimental to the the quality of the outdoor life of the owners of the houses around this new project and their insurance of privacy, sunlight in their back yards, swimming pool, solar panels, garden sun light, vegetable garden sunlight, a pollution view from the size of this construction plan.” One of the principal purposes of the R-1 Ordinance is to ensure provisions of light, air and a reasonable level of privacy to individual residential parcels. These are implemented through the setbacks, daylight plane and privacy planting requirements, and other prescriptive requirements incorporated within the R-1 Ordinance. The daylight plane established for the single story portion of the project ensures light and air at the single story level while increased setback requirements on the second level ensure that a reasonable level of sunlight and air is available for neighbors. In addition, all second story windows that are not exempt from privacy plantings are required to provide trees or shrubs in an area bounded by a thirty-degree angle measured from the edges on each side window jamb. The applicant proposes such plantings on all applicable windows, but pursuant to a request by the property owner to the east, eliminated the proposed privacy plantings on the eastern property line. The size of the home is based on the allowable Floor Area Ratio (FAR). In the case of property zoned R-1, the allowable FAR is 45% of the net lot area with no maximum house size limitations. This means that a larger lot could have a larger home developed on the site while a smaller lot would have a smaller home. The proposed FAR maximizes the amount of development on the property, but does not exceed the allowable FAR. 4. “The proposed project is not harmonious in scale on adjoining properties or the other neighbors in front of this project or the many houses in the cul-de-sac street.” See response #1 and #3 regarding the size and scale of the home. The proposed project conforms to the requirements of the R-1 Ordinance and does not seek any exceptions from it. 5. “The granting of the permit for this project will result in a condition that is detrimental and injurious to property or improvements in the vicinity because we won’t have sun on our swimming pool around 3:30 PM during summer time. We won’t be able in the future to stall solar voltaic on our house according to our plans because the shadow this project will create on our roof and backyard. Then neighbor on the other side will have no sun light on his side yard at least until 1:00 PM and look which will have an impact in his garden and property. He also will a have massive wall with windows against his property. This will be a visual impact on his side.” See response #3. 297 R-2015-08 & Appeal of a Two-Story Permit and February 23, 2016 RM-2015-08 a Minor Residential Permit 6. “Adverse visual impacts on adjoining properties can’t be reasonably mitigated because the damages, I mention above, this new project will cause in the neighborhood. We want to clarify here the word neighborhood also means – ‘Quality or condition of being neighbors.’ The size of this project is not harmonious on this street.” The R-1 Ordinance requires mitigation of views from the proposed project in to side and rear yards of other existing residential properties. It does not require mitigation of the visual impacts of the proposed project from neighboring properties. In compliance with the R-1 Ordinance, the applicant will be required to plant a 24-inch box front yard tree to mitigate the second story mass from the street. The applicant has also complied with the R-1 Ordinance by proposing to plant all the required privacy planting to ensure that visual impacts in to the neighbor’s side and rear yards are mitigated. During the comment period, the appellant (eastern property owner at 21884 Oakview Lane) voiced their concerns to the applicant regarding the existing trees and the proposed privacy trees limiting sun exposure and the potential increase in yard maintenance. In response the applicant agreed to remove eight Italian Cypresses and the appellant agreed to waive any additional privacy protection measures that the applicant would have had to plant. 7. “Many inconsistencies have been found in this project because there was no study done by the owner or by the city for this project about the future consequences, which I mentioned before. The City Code mention. (sunlight, the damage in receiving the sun light on the pool of 21884 Oakview Lane and solar panels efficiency, the future lost of vegetable garden this neighbor have, the visual impact from neighbors both sides, back and in front of this project, not harmonious construction, the wrong design for this part of the neighborhood, privacy issues because windows and balcony from this project, the second floor height will impact our quality of life in using our swimming pool, backyard, etc.).” The R-1 Ordinance does not require the applicant to furnish studies on light impacts to adjacent properties or to existing thermal panels if all prescriptive regulations regarding the first-floor building envelope, overall building height, and first and second story setbacks are met. These prescriptive requirements are deemed adequate to address light, and privacy issues. See response #3. 8. “It will have a significant adverse visual and privacy impacts as viewed from all four adjoining properties and in front the neighbors’s house which can’t be mitigated to the maximum extent possible because the height of the second floor construction, windows and balcony taking out our privacy and other issues I already mention above.” See previous response #3 and #6 regarding visual and privacy impacts. In addition, the R-1 Ordinance allows a maximum height of 28 feet (no more than two stories) for principal 298 R-2015-08 & Appeal of a Two-Story Permit and February 23, 2016 RM-2015-08 a Minor Residential Permit dwellings on the site. The proposed building is 25 feet 4 inches in height and therefore, under the maximum allowed height in this zoning district. 9. “I already explain in the beginning this letter this project will injurious to the neighbors in different matters.” Refer to response #3 through #8. 10. “The exception to be granted is one that will require a modification in the design to a one story house.” Since the subject property is not located in a Single Family Residential District Restricted to One Story (indicated with the “i” suffix), a proposed project on the site cannot be required to be limited to a single story. The subject property’s zoning (R1-10) permits the applicant to construct up to a two-story home provided that all development regulations regarding two-story developments (floor area ratios, setbacks, second-to-first floor ratio, etc.) are met. 11. “The proposed design will result in significant impacts as viewed from four abutting properties and front neighbors. The size of the house, the privacy with the window s and balcony in the second floor, the intrusive design of the chimney in the side of the house will have an impact on our view and architectural in the neighbor backyard of 21884 Oakview Lane, the enormous wall on the side of the neighbor at 21917 Oakview Lane. The windows and balcony also with clear view of the sides and back neighbors. The neighbors don’t want trees to be plant because they will shade more their house, the roots will cause future problems on the fences, the leaves during winter in their backyards, swimming pool, gutters and roofs.” See response #3 regarding the size of the home. See response #3 and #6 regarding privacy and visual impacts. The proposed fireplace and chimney, adjacent to the eastern property line, encroaches less than one foot into the required five-foot side yard setback. Architectural features, such as fireplaces, cornices and eaves, are permitted to encroach up to three (3) feet into a required yard setback and are exempt from daylight plane restrictions per the R-1 Ordinance. The applicant addressed staff concerns about unarticulated walls (in particular the wall facing 21917 Oakview Lane) by adding architectural trims to denote the separation of first and second floors. 12. “This project violates all the Municipal Code 19.28.140 (A), (B), (C), (D), which we have been seen over and approved by the planning commission is this neighborhood. This project must be modify to a one store house. This project is not harmonious with this part of the street. We are sure, anyone that visits the site will see that.” 299 R-2015-08 & Appeal of a Two-Story Permit and February 23, 2016 RM-2015-08 a Minor Residential Permit The project meets the findings listed in Sections 19.28.140 (A) and (B). However, Sections 19.28.140 (C) and (D) do not apply to the proposed project. The requested permits were approved at an administrative level in compliance with the requirements of the Municipal Code. See response #2 regarding the size and scale of the home. 13. “People who have lived here for decades have been discuss with the action of the city plan commission in transforming this city in a polluted vision of construction, traffic, more air pollution, less water and loose the quality of life. The planning commission continue ignore complaints and our inputs from the tax payers. We need to pay a high cost city appeal when this is our rights to have it without no cost. In many of the cases we have been seen the abuse of the power from planning commission and the city council to approve this high density constructions.” The proposed project is an allowed use within the zoning district that it is proposed in and meets all the prescriptive requirements outlined in the R-1 Ordinance as adopted by the City Council. The City Council set the appeal fee at $182, much below the actual costs of processing and taking an application through the appeal process, recognizing that appellants should not be priced out of appealing a project, and that this would only cover a small portion of administrative, staff, and processing time associated with appeals. 14. “This land for this project is big enough to built a one store house for a family of six people.” See response #10. 15. “The owner from this new project have many cypress pine trees in his property. These kind of trees attract rats, garden snakes, damage the paint of our cars, fill the gutters from our houses with pines, damage our plants, the yellow powder came from the trees cause a lot allergies to the neighbors during spring time, dust in our houses. These trees must be cut in both sides of this property as soon as possible before construction start. These trees are detrimental for the neighbors. These cypruss trees hidden the real impact of this construction in adjoining properties and already make shade in our solar panels.” See response #3 regarding privacy protection trees. Although the appellant stresses that these trees be cut on both sides of the property, the western property owner (21917 Oakview Lane) has stated his concerns regarding privacy, therefore no trees are proposed to be removed along the western property line. 16. “We need to know the time of duration for this construction will be in any case of the projects be approved or modify because in three occasions in this street we have 300 R-2015-08 & Appeal of a Two-Story Permit and February 23, 2016 RM-2015-08 a Minor Residential Permit neighbors built or remodel their houses and took more time than the normal period necessary for it. A lot problems of dust, noise, traffic of big trucks, construction people which we don’t know looking over our house, damage our front yard and healthy issues because the dust. What kind the fence will be add around construction and hight to protect us from all these factors. The neighbors would have a communication when the house will be demolish and how long will take it.” The timeline of construction will be determined by the applicant, but construction will need to be initiated prior to the expiration dates of the two planning permits. The applicant has one year from the date of final decision on the project (i.e., from the date of decision on all appeals) to apply for building permits. Once a building permit is issued, the applicant must have inspections every 180 days in order to ensure that the building permit does not expire. The Building Department requires a temporary construction fence at least five feet in height at the front of the property. The building permit will also be subject to all Best Management Practices (BMP’s) for construction to minimize dust, runoff, and other construction impacts. 17. “We need to know all measurements the owner this project will take to protect, clean, avoid the dust in the swimming pool, solar panel at the neighbor’s house of 21884 Oakview Lane and other neighbors.” See response #16 regarding Best Management Practices. In addition, the applicant has offered to provide monthly pool cleaning to the appellant (eastern property owner at 21884 Oakview Lane), which was acceptable to them prior to appealing the project. 18. “Our neighbor Jan Kucera was inform this project was going to have the decision from the planning commission on February/2016. He has the intent to have a CAD design to show better the impact this project. Mr. Jan Kusera was surprise when we send an e- mail to him with the short time to appeal. He is traveling and the planning department new about it. This action from the planning commission it is not fair because he don’t have the chance to appeal the way he was planning to do it. The city action is not fair with the ones already have been express their opinion against this project and deny time for appeal which can be discuss in court because wrong informations. We feel it is not time the year this project can be approved or not since many of the neighbors which call the city didn’t received the letter of the appeal rights. ” Staff met with Mr. Jan Kucera and spoke with him on the phone on several occasions to clarify and provide supplemental information. In addition, the comment period letter dated December 8, 2015 and the notice of decision letter dated January 8, 2016 were mailed to him. Staff has been available during both the comment and appeal periods to receive comments and provide assistance. Aside from the comments received prior to the comment period by concerned adjacent neighbors, staff received two additional letters from Mr. Kucera (the western property 301 R-2015-08 & Appeal of a Two-Story Permit and February 23, 2016 RM-2015-08 a Minor Residential Permit owner) during the comment period. No other communication was received from any other concerned parties. 19. “We want to make clear we are not against some two floor constructions but this must happen when have harmony of size of project with side, front neighbors and street house constructions, the law is respected, privacy between neighbors, don’t damage the quality of outdoor life or healthy.” Please see previous responses #1, #3, #4, #6 and #10. 20. “The sign for this project is very far from the street and very clear. The neighbors feel uncomfortable to go and see the project plan because is too much inside the property and have renters is this property. The desin from this project must be more in front the house and the period for analyses from the neighbors be extended.” The original sign was located in a bare planting area adjacent to a paved walkway deemed appropriate by staff for the notice board notifying the public of the comment period. The comment period noticing letter included a site plan and elevation drawings of the proposed project in compliance with the requirements of the Municipal Code. In addition, the letter also indicated that a full set of plans of the proposed project would be available for review upon request, also in conformance with the requirements of the Municipal Code. 21. “We also want some studies to be done by the owner or by the city from the soil erosion and contamination from this property, since the septic tank has been liking for many years and the suspicious previous owner this property has dump some kind of products not identify in the soil and had a not permit construction in the side the house where he uses to stuck many chemical products.” The applicant will remove the existing septic tank and connect to existing sewer systems. The removal of septic tanks is under the authority of the Santa Clara County Environmental Health Department which will review the proposed removal for compliance with their requirements. As with any building permit, the applicant will be required to provide documentation of having received these permits to Cupertino’s Building Division prior to permit issuance. 22. “We also want alert the city and the new owner this new project in the pass this land was an old indian cemetery. Many years ago when the house at 21901 Oakview Lane (in front of this new project) was remodel the construction was stopped for many days because was found indian bones in this site. The indian tribe needs to give permission for these bones be removed from that site. Delay the remodel for many days.” Building records do not indicate stopped work due to Native American remains found on site for any remodel projects at 21901 Oakview Lane. 302 R-2015-08 & Appeal of a Two-Story Permit and February 23, 2016 RM-2015-08 a Minor Residential Permit As a matter of course, should Native American remains be found, the City has to be notified and there are special procedures for handling any remains or burial sites found. These are implemented through the Building Department during the construction period. 23. “It is not fair we spent $182.00 to appeal this decision when we had a miss information from the planning department about the way this is done. The date this project was going to be decided, the appeal process be charged never was explain ton us. We didn’t even knew until we received a e-mail from the assistant from this project our concerns will be not consider before the appeal since the planning commission didn’t see the plan before appeal.” See response #13. The appeal process and requirements are codified in the Municipal Code. Aside from staff voluntarily notifying the concerned neighbors and appellant with the status of the project prior to a decision on the project, the comment period letter dated December 8, 2015 states that the project would receive “approval by the Director of Community Development” and that “any interested party may appeal the decision of the Director within fourteen (14) days of the mailing of the notice of decision.” The notice of the decision letter dated January 6, 2016 was also sent to all persons who commented on the project as required by the Municipal Code and the same language was reiterated. 24. “In this time of water short supply we don’t need big constructions where will spend more water in trees, gardens which don’t produce anything and more space to clean with water.” The City has established restrictions on water usage around the city in Chapter 15.32 and landscaping water usage in Chapter 14.15 of the Cupertino Municipal Code. In addition, the California Building Code has codified requirements about the types of fixtures and other such requirements to limit the amount of water used within the project. The applicant will be required to comply with all current California Building Code requirements. ENVIRONMENTAL ASSESSMENT The project is categorically exempt from the California Environmental Quality Act (CEQA) per section 15303 (New construction or conversion of small structures) of the CEQA Guidelines. 303 R-2015-08 & Appeal of a Two-Story Permit and February 23, 2016 RM-2015-08 a Minor Residential Permit PUBLIC NOTICING & OUTREACH The following table is a brief summary of the noticing done for this project: Notice of Public Hearing, Site Signage & Legal Ad Agenda  9 public hearing notices mailed to property owners adjacent to the project site (19 days prior to hearing)  Legal ad placed in newspaper (at least 10 days prior to hearing)  Site Signage (City-provided appeal signage placed on site 12 days prior to hearing)  Posted on the City's official notice bulletin board (one week prior to hearing)  Posted on the City of Cupertino’s Web site (one week prior to hearing) PERMIT STREAMLINING ACT The appeal is subject to the Permit Streamlining Act (Government Code Section 65920 – 65964). The City has complied with the deadlines found in the Permit Streamlining Act. Project Received: March 20, 2015; Deemed Incomplete: April 16, 2015 Project Resubmittal: July 1, 2015; Deemed Incomplete: July 23, 2015 Project Resubmittal: September 20, 2015; Deemed Incomplete: September 21, 2015 Project Resubmittal: October 26, 2015; Deemed Complete: October 30, 2015 NEXT STEPS AND CONCLUSION The Planning Commission’s decision on this project is final unless appealed within 14 days of the decision. If appealed, the City Council will hear the final appeal on this project. Since the proposed project complies with all aspects of the R-1 Ordinance, staff recommends that the Planning Commission deny the appeal and uphold the Community Development Director's decision to approve the Two-Story and Minor Residential Permits. Prepared by: Ellen Yau, Assistant Planner Reviewed by: Approved by: /s/Piu Ghosh /s/Aarti Shrivastava Piu Ghosh Aarti Shrivastava Principal Planner Community Development Director ATTACHMENTS: 1 – Draft Resolution for R-2015-08 2 – Draft Resolution for RM-2015-08 3 – Plan Set 304 R-2015-08 & Appeal of a Two-Story Permit and February 23, 2016 RM-2015-08 a Minor Residential Permit 4 – Two-Story and Minor Residential Permits (R-2015-08 and RM-2015-08) action letter dated January 8, 2016 5 – Appellant’s letter and images 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 32 2 32 3 32 4 32 5 32 6 32 7 32 8 32 9 330 331 332 333 334 335 336 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:115-1161 Name: Status:Type:Ordinances and Action Items Agenda Ready File created:In control:10/9/2015 City Council On agenda:Final action:4/19/2016 Title:Subject: An ordinance amending sections of Chapter 3.23 of the Cupertino Municipal Code to align the public works bid invitation distribution and posting periods with the related California Public Contract Code requirements Sponsors: Indexes: Code sections: Attachments:Staff Report A - Draft Ordinance B - Redline version of Draft Ordinance Action ByDate Action ResultVer. City Council4/19/20161 Subject:AnordinanceamendingsectionsofChapter3.23oftheCupertinoMunicipalCodeto alignthepublicworksbidinvitationdistributionandpostingperiodswiththerelatedCalifornia Public Contract Code requirements ConductthefirstreadingofOrdinanceNo.16-2143:“AnOrdinanceoftheCityCouncilofthe CityofCupertinoAmendingtheCupertinoMunicipalCodeSections3.23.030,3.23.040, 3.23.050, 3.23.120, of Chapter 3.23 of Title 3 Regarding Public Bidding” CITY OF CUPERTINO Printed on 4/15/2016Page 1 of 1 powered by Legistar™337 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: April 19, 2016 Subject An ordinance amending sections of Chapter 3.23 of the Cupertino Municipal Code to align the public works bid invitation distribution and posting periods with the related California Public Contract Code requirements. Recommended Actions Conduct the first reading of the draft ordinance to adopt: “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING THE CUPERTINO MUNICIPAL CODE SECTIONS 3.23.030, 3.23.040, 3.23.050, 3.23.120, OF CHAPTER 3.23 OF TITLE 3 REGARDING PUBLIC BIDDING”. Discussion The procedural requirements for public contract bidding are in both the Cupertino Municipal Code (CMC) and state law, primarily in the California Public Contract Code (PCC). In 2010, the State Legislature amended several sections of the Public Contract Code to require that notices of public bids to trade journals be provided electronically, in addition to the previous mailing requirement. At the same time, the notice requirement was shortened from 30 to 15 calendar days. Staff recommends that Council amend the Cupertino Municipal Code Sections 3.23.030, 3.23.040, 3.23.050, 3.23.120, to align with the requirements of the PCC, specifically Sections 4101(a)(1), 22032, 22034, and 22037 of Article 3, titled “Public Projects: Alternative Procedure.” Staff recommends that the CMC align with the PCC to ensure consistency with other projects located throughout the state. The Cupertino Municipal Code (CMC) specifies the content of Notices Inviting Bids (Notice) and timeframes for distributing and posting the Notices. Currently, Notices must be sent by mail to specified construction trade journals at least 30 days in advance of bid openings and posted in a newspaper of general circulation printed and published in the City at least 14 days in advance of bid openings. The City’s current requirements aligned with the California Public Contract Code (PCC) prior to the amendments that occurred in 2010. 338 2 The PCC provides bid noticing procedures for informal and formal bids that include different noticing timeframes. The noticing period for an informal bid, under $175,000, may be a minimum of ten days and, for a formal bid, a minimum of fifteen days. Additionally, the amended provisions allow for the use of email and faxing in addition to mail. The combination of more compact bid advertising periods and the use o f alternative mail options provide greater flexibility in managing the bid phase of a project. While for some projects issuing the Notice four weeks or more in advance of the bid opening is reasonable and appropriate due to the size and/or complexity of the project, there are many projects for which an advertising period less than the 30 days required by the CMC, including for as few as 10 days, is adequate and appropriate. Amending the CMC to incorporate the California PCC bid noticing requirements will achieve efficiencies in the bidding of most projects and maintain consistency with State regulations. Sustainability Impact There is no sustainability impact resulting from this amendment. Fiscal Impact There is no fiscal impact resulting from this amendment, this is merely an administrative change. California Environmental Quality Act (CEQA): This ordinance does not present any direct or reasonably foreseeable indirect change to the physical environment, and is not a project under the California Environmental Quality Act. _____________________________________ Prepared by: Timm Borden, Director of Public Works Approved for Submission by: David Brandt, City Manager Attachments: A – Draft Ordinance B – Redline Version of Draft Ordinance 339 ORDINANCE NO. 16- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING THE CUPERTINO MUNICIPAL CODE SECTIONS 3.23.030, 3.23.040, 3.23.050, 3.23.120 OF CHAPTER 3.23 OF TITLE 3 REGARDING PUBLIC BIDDING WHEREAS, this Ordinance was determined to be not a project 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 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 “not a project” determination under CEQA prior to taking any approval actions on this Ordinance and agrees with such determination; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CUPERTINO DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Section 3.23.030 of Chapter 3.23 of Title 3 of the Cupertino Municipal Code is hereby amended to read as follows: 3.23.030 Competitive Bidding. Except as otherwise provided for in this chapter, public works projects with an estimated dollar value in excess of the required dollar value for competitive bidding established by section 22032(a) of the California Public Contracts Code, as may be amended, shall be contracted for pursuant to the procedures prescribed in this chapter. SECTION 2. Section 3.23.040 of Chapter 3.23 of Title 3 of the Cupertino Municipal Code is hereby amended to read as follows: 3.23.040 Notice Inviting Bids. The notice inviting bids shall be in the form and published as follows: 340 A. Notices inviting bids shall include: 1. A distinct description of the public works project to be performed; 2. The location where bid blanks and specifications may be secured; 3. The time and place for opening bids; 4. The type and amount of bidder's security required; 5. The class of license required for the public works to be performed; and 6. A statement that the City has the authority to reject any and all bids and may waive any minor technicality or variance from the bid specifications. B. The notice inviting bids shall be: 1. Published in a newspaper of general circulation printed and published in the City at least the number of days specified in Section 22037 of the California Public Contract Code, as may be amended, before the opening of bids; and 2. Provided to all construction and trade journals specified in Section 22036 of the California Public Contract Code, or as may be amended, at least the number of days and by the methods set forth in Section 22037 of the California Public Contracts Code, as may be amended. SECTION 3. Section 3.23.050 of Chapter 3.23 of Title 3 of the Cupertino Municipal Code is hereby amended to read as follows: 3.23.050 Presentation of Bids–Security Required–Subcontractor Designated in Bid. A. All bids shall be presented under sealed cover (identified as bids on the envelope), submitted to the City Clerk and accompanied by one of the following forms of bidder’s security: 1. Cash; 2. A cashier’s check made payable to the City; 3. A certified check made payable to the City; 4. A bidder's bond executed by an admitted surety insurer, made payable to the City. B. The security shall be in an amount equal to at least ten percent of the amount of the bid, or such other sum as may be specified by the California Public Contract Code. A bid shall not be considered unless one of the forms of bidder’s security is enclosed with it. C. Upon award of the contract to the lowest responsible bidder, the security of an unsuccessful bidder shall be returned in a reasonable period of time, but in no event 341 shall such security be held by the City beyond ninety days from the date the notice of award of contract is mailed. D. All bidders on a public works project must designate in its bids the name, address, the portion of the work each subcontractor will perform, and other information as required by Section 4101(a)(1) of the Public Contracts Code, as may be amended, of each subcontractor: 1. who will perform work exceeding one-half of one percent of the prime contractor’s total bid, or 2. who meet or exceed the thresholds for specific types of work as specified in Section 4104(a)(1) of the Public Contracts Code, as may be amended. E. The prime contractor shall list only one subcontractor for each portion of work as is defined by the prime contractor in their bid. SECTION 4. Section 3.23.120 of Chapter 3.23 of Title 3 of the Cupertino Municipal Code is hereby amended to read as follows: 3.23.120 Informal Bidding Procedure for Public Works Projects. Except as otherwise required by this chapter or under state or federal law, the bidding procedures of this chapter may be dispensed with for public works projects with an estimated dollar value equal to or less than the required dollar value specified in Subdivision (b) of Section 22032 of the Public Contract Code, or as may be amended, and the following informal bidding procedures substituted: A. The City shall maintain a list of qualified contractors, identified according to categories of work. Minimum criteria for compilation of the contractor list shall be determined by the California Uniform Construction Cost Accounting Commission (“Commission”). All contractors on the list for the category of work being bid and/or all construction trade journals specified by the Commission shall be mailed a notice inviting informal bids, unless the product or service is proprietary. B. All mailing of notices to contractors and construction trade journals shall be completed not less than the number of days specified in Section 22304(c) of the California Public Contract Code, or as may be amended, before the date of opening the bids. C. The City Council hereby delegates the authority to award contracts pursuant to informal bidding to the City Manager or other person designated in writing by the City Manager. 342 SECTION 5. 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 ___ day of ____ and ENACTED at a regular meeting of the City Council of the City of Cupertino the ____ of _______ 2016, by the following vote: PASSED: Vote: Members of the City Council Ayes: Noes: Absent: Abstain: ATTEST: APPROVED: ______________________ ______________________ Grace Schmidt, City Clerk Barry Chang, Mayor 343 ORDINANCE NO. 16- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING THE CUPERTINO MUNICIPAL CODE SECTIONS 3.23.030, 3.23.040, 3.23.050, 3.23.120 OF CHAPTER 3.23 OF TITLE 3 REGARDING PUBLIC BIDDING WHEREAS, this Ordinance was determined to be not a project 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 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 “not a project” determination under CEQA prior to taking any approval actions on this Ordinance and agrees with such determination; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CUPERTINO DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Section 3.23.030 of Chapter 3.23 of Title 3 of the Cupertino Municipal Code is hereby amended to read as follows: 3.23.030 Competitive Bidding. Except as otherwise provided for in this chapter, the public works projects with an estimated dollar value equal to or in excess of the required dollar value for competitive bidding established by section 22032(a) of the California Public Contracts Code, as may be amended, shall be contracted for pursuant to the procedures prescribed in this chapter. SECTION 2. Section 3.23.040 of Chapter 3.23 of Title 3 of the Cupertino Municipal Code is hereby amended to read as follows: Council Agenda: April 19, 2016 344 3.23.040 Notice Inviting Bids. The notice inviting bids shall be in the form and published as follows: A. Notices inviting bids shall include: 1. A distinct description of the public works project to be performed; 2. The location where bid blanks and specifications may be secured; 3. The time and place for opening bids; 4. The type and amount of bidder's security required; 5. The class of license required for the public works to be performed; and 6. A statement that the City has the authority to reject any and all bids and may waive any minor technicality or variance from the bid specifications. B. The notice inviting bids shall be: published 1. Published in a newspaper of general circulation printed and published in the City at least the number of days specified in Section 22037 of the California Public Contract Code, as may be amended, before the opening of bids; and 2. Provided to all construction and trade journals specified in Section 22036 of the California Public Contract Code, or as may be amended, at least the number of days and by the methods set forth in Section 22037 of the California Public Contracts Code, as may be amended. fourteen calendar days before the date of opening the bids in a newspaper of general circulation printed and published in the City. The notice shall also be provided at least the number of days and by the methods set forth in Section 22037 of the California Public Contracts Code, as may be amended, sent electronically, if available, by either facsimile or electronic mail and mailed at least thirty calendar days before the date of opening the bids to all construction trade journals specified in Section 22036 of the California Public Contract Code. SECTION 3. Section 3.23.050 of Chapter 3.23 of Title 3 of the Cupertino Municipal Code is hereby amended to read as follows: 3.23.050 Presentation of Bids–Security Required–Subcontractor Designated in Bid. Council Agenda: April 19, 2016 345 A. All bids shall be presented under sealed cover (identified as bids on the envelope), submitted to the City Clerk and accompanied by one of the following forms of bidder’s security: 1. Cash; 2. A cashier’s check made payable to the City; 3. A certified check made payable to the City; 4. A bidder's bond executed by an admitted surety insurer, made payable to the City. B. The security shall be in an amount equal to at least ten percent of the amount of the bid, or such other sum as may be specified authorized by the California Public Contract Code. A bid shall not be considered unless one of the forms of bidder’s security is enclosed with it. C. Upon award of the contract to the lowest responsible bidder, the security of an unsuccessful bidder shall be returned in a reasonable period of time, but in no event shall such security be held by the City beyond ninety days from the date the notice of award of contract is mailed. D. All bidders on a public works project must designate in its their bids the name, address, the portion of the work each subcontractor will perform, and other information as required by Section 4101(a)(1) of the Public Contracts Code, as may be amended, of each subcontractor: 1. the name and address of each subcontractor who will perform work exceeding one-half of one percent of the prime contractor’s total bid, or 2. who meet or exceed the thresholds for specific types of work as specified in Section 4104(a)(1) of the Public Contracts Code, as may be amended. and what portion of the work each subcontractor will perform. E. The prime contractor shall list only one subcontractor for each portion of work as is defined by the prime contractor in their bid. SECTION 4. Section 3.23.120 of Chapter 3.23 of Title 3 of the Cupertino Municipal Code is hereby amended to read as follows: 3.23.120 Informal Bidding Procedure for Public Works Projects. Except as otherwise required by this chapter or under state or federal law, the bidding procedures of this chapter may be dispensed with for public works projects with an estimated dollar value equal to or less than the required dollar value specified in Subdivision (b) of Section 22032 of the Public Contract Code, or as may be amended, and the following informal bidding procedures substituted: Council Agenda: April 19, 2016 346 A. The City shall maintain a list of qualified contractors, identified according to categories of work. Minimum criteria for compilation of the contractor list shall be determined by the California Uniform Construction Cost Accounting Commission (“Commission”). All contractors on the list for the category of work being bid and/or all construction trade journals specified by the Commission shall be mailed a notice inviting informal bids, unless the product or service is proprietary. B. All mailing of notices to contractors and construction trade journals shall be completed mailed not less than the number of days specified in Section 22304(c) of the California Public Contract Code, or as may be amended, ten calendar days before the date of opening the bids. C. (Repealed by Ord. 1632) CD. The City Council hereby delegates the authority to award contracts pursuant to informal bidding to the City Manager or other person designated in writing by the City Manager. SECTION 5. 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. * * * * * * * * Council Agenda: April 19, 2016 347 INTRODUCED at a regular meeting of the City Council of the City of Cupertino the ___ day of ____ and ENACTED at a regular meeting of the City Council of the City of Cupertino the ____ of _______ 2016, by the following vote: PASSED: Vote: Members of the City Council Ayes: Noes: Absent: Abstain: ATTEST: APPROVED: ______________________ ______________________ Grace Schmidt, City Clerk Barry Chang, Mayor Council Agenda: April 19, 2016 348 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1591 Name: Status:Type:Ordinances and Action Items Agenda Ready File created:In control:3/28/2016 City Council On agenda:Final action:4/19/2016 Title:Subject: Consideration of the City Council Summer Meeting Schedule and cancellation of meeting(s). Sponsors: Indexes: Code sections: Attachments:Staff Report Action ByDate Action ResultVer. City Council4/19/20161 Subject:ConsiderationoftheCityCouncilSummerMeetingScheduleandcancellationof meeting(s). ConsidertheCityCouncilSummerMeetingScheduleandcancelmeeting(s)orprovide direction to staff. CITY OF CUPERTINO Printed on 4/15/2016Page 1 of 1 powered by Legistar™349 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: April 19, 2016 Subject Consider the City Council Summer Meeting Schedule and cancellation of meeting(s). Recommended Action Consider the City Council Summer Meeting Schedule and cancel meeting(s) or provide direction to staff. Discussion The City Council routinely cancels one or two meetings during the summer to accommodate Council members’ vacation plans. Typically, the second meeting in July and/or the first meeting in August has been cancelled. When considering which meeting(s) to cancel, please take note of the following:  Weed abatement lien assessment must be approved no earlier than July 7 and no later than August 4  The deadline to call an election for an initiative measure is August 12  A request has been made to cancel the July 19 meeting Sustainability Impact None Fiscal Impact None _____________________________________ Prepared by: Kirsten Squarcia, Deputy City Clerk Reviewed by: Grace Schmidt, City Clerk Approved for Submission by: David Brandt, City Manager Attachments: None 350 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1356 Name: Status:Type:Reports by Council and Staff Agenda Ready File created:In control:1/12/2016 City Council On agenda:Final action:4/19/2016 Title:Subject: Climate Action Plan Annual Progress Update Sponsors: Indexes: Code sections: Attachments:Staff Report Attachment A - Progress Report Action ByDate Action ResultVer. City Council4/19/20161 Subject:Climate Action Plan Annual Progress Update Receive presentation and review Progress Report CITY OF CUPERTINO Printed on 4/15/2016Page 1 of 1 powered by Legistar™351 1 OFFICE OF THE CITY MANAGER SUSTAINABILITY DIVISION CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-7603 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: April 19, 2016 Subject Climate Action Plan Annual Progress Update Recommended Action Receive presentation and review Progress Report. Description In January 2015, the City adopted the first Climate Action Plan ( CAP) written to achieve state recommended greenhouse gas emissions reductions goals outlined in California Global Warming Solutions Act of 2006 (AB 32), streamline future environmental review of projects (CEQA 15183.5 ) and meet the Bay Area Air Quality Management District expectation of a Qualified Greenhouse Gas Emissions Reduction Strategy. As directed by the City’s General Plan Environmental Resources and Sustainability Element, (ES-1.1.1 and ES-1.1.2) the CAP seeks to identify emissions reduction strategies that are informed by the goals, values and priorities of our community. It contains over 225 measures to help reach a community-wide greenhouse gas (GHG) reduction goal of 15% below 2010 levels by 2020, which approximates a return to 1990 levels. The CAP provides a set of strategies intended to guide GHG emissions reduction efforts, typically through a combination of statewide and local actions to address energy, transportation, water, and waste. The City’s strategies comprise a framework of goals, measures and actions through which the near-term (2020) targets can be achieved and progress can be made on the longer-term (2035, 2050) targets. As noted in the first CAP Progress Report (Attachment A), the city has made tremendous progress in the past year to begin to implement the CAP, which includes the following highlights and achievements of the Sustainability and Environmental Programs Divisions: Staffing - Expanded Sustainability and Environmental Programs Divisions by hiring 4 new staff members; Sustainability Coordinator, Utility & Efficiency Analyst, Education Outreach Coordinator and Safe Routes to School Coordinator. New Policies – The CAP prioritized accelerated deployment of varied notable policies: 352 2 - Cupertino Community Vision 2040- adopted to include Climate Action Plan (ES-1.1.1) and CAP and Sustainability Strategies Implementation (ES-1.1.2). - Mandatory Commercial Organics Ordinance – Adopted/implemented first phase in September 2015, requiring eight largest organic waste generators to collect food scraps and paper. - Environmental Purchasing Policy - updated for internal purchasing of green office, electronic and cleaning supplies. Embedded into 2015 janitorial services agreement. Special Projects - The following CAP noted projects were advanced last calendar year: - Silicon Valley Clean Energy - as the first City to take action to establish and join the Authority tasked with bringing a community choice energy option to Cupertino residents and businesses in the winter of 2016/17, (www.svcleanenergy.org). - Utility Data & Efficiency - Audited and verified City water meters saving an estimated $8,200 for the remainder of the calendar year and $7,600 annually thereafter. - Vehicle Electrification - 15 % of total fleet vehicles are clean fuel vehicles (hybrid and electric), closer to achieving the City’s Bay Area Climate Compact goal. - EV Charging -Using regional grant funding to expand the City-installed network of public EV stations to six. - Green Business Challenge –selected as 1 of 4 nationwide to compete in ICLEI/Office Depot’s Green Office Challenge; engaged 24 businesses and saved 19,804 pounds of CO2. - Safe Routes to School - piloted with eight schools participating. Engaging community members to identify how to best increase student travel safety by collecting travel data, and organizing a contracted Walk Audit school sites selected by the Working Group. Near Term Measure Status As greenhouse gas emissions arise from communities, local governments must play a vital role in mitigation and preparing for the impacts of climate change. The CAP analyzes climate change strategies through two different lenses, a community wide perspective considers the total impact of emissions generated activities and reduction opportunities within the City’s jurisdictional boundaries. The municipal operations perspective considers only emissions resulting from the provision of local government services. The purpose of this progress report (see attached) is to benchmark and track the status and progress made on the Near-term community-wide and in municipal operations measures to be implemented by the year 2020. As simple as previewing a traffic signal as a driver. Cupertino’s Climate Action progress report summarizes actions across all near-term measure categories, with the following visual cues for readers: 353 3 Green: Completed – All required implementation steps have been completed Ongoing – Initial steps completed, components still actively being implemented Yellow: In Progress – Implementation steps are still being developed and pursued Initiating- Initial steps have not been started, but anticipated before 2020. Red: On-Hold – Due to programmatic barrier or is no longer applicable A summary of the status of near-term measures follows. All near-term measures are either in the yellow or green level of implementation status. Measure #Measure Name Status Measure #Measure Name Status C-E-1Energy Use & Data Analysis In -ProgressC-T-1 Bicycle & Pedestrian Environment Enhancements In - Progress C-E-2Retrofit Financing- PACEIn -ProgressC-T-2Bike share Program On-going C-E-3 Home & Commercial Building Retrofit Outreach In -ProgressC-T-3 Transportation Demand Management In - Progress C-E-5 Community-Wide Solar Photovoltaic Development In -ProgressC-T-5Transit Priority On-going C-E-7 Community Choice Energy Option CompleteC-T-6 Transit Oriented DevelopmentOn-going C-SW-1Zero Waste Goal In -ProgressC-T-7 Community-wide Alternative Fuel Vehicles In -Progress C-SW-2 Food Scrap and Compostable Paper Diversion In -ProgressC-W-1SB-X7-7 Water ReductionIn -Progress C-SW-3 Construction & Demolition Waste Diversion Program On-goingC-W-2 Recycled Water Irrigation Program In -Progress C-G-1 Urban Forest ProgramOn-going M-F-1Sustainable Energy PortfolioCompleteM-SW-1Waste Reduction In -Progress M-F-2 Renewable/Low Carbon Electricity Generation On-goingM-SW-2 Food Scrap and Compostable Paper Diversion In -Progress M-F-3 Advanced Energy Management Activities Initiating M-SW-3 Construction and Demolition Waste Diversion On-going M-F-4 Grow Existing Building Energy Retrofit Efforts Initiating M-VF-1 Low Emission and Alt Fuel Vehicles On-going M-F-6 Complete Citywide Public Realm Lighting Efficiency On-goingM-VF-2Alternative Fuel InfrastructureOn-going M-F-7 Conserve Water Through Efficient Landscaping On-going Community Measures Municipal Measures Cupertino Climate Action Plan- Status of Near Term Measures 354 4 Next Steps This is the first Progress Report since the adoption of the CAP in January 2015. Annual reports will be given to Council to consistently report on implementation and monitor progress towards GHG reduction goals. Additionally, every 2-3 years a GHG inventory update will be completed. The next GHG inventory update will analyze 2015 data and is anticipated to be completed by the end of 2016. Sustainability Impact Tracking reduction measure implementation will enable the City to monitor progress towards the community-wide target of reducing GHG 15% below 2010 levels by 2020. Additionally, the successful implementation of the CAP will help to complete strategies identified in Chapter 6, Environmental Resources and Sustainability Element of the amended General Plan including: Strategy ES-1.1.1: Climate Action Plan (CAP). Adopt, implement and maintain a Climate Action Plan to attain greenhouse gas emissions targets consistent with state law and regional requirements. This qualified greenhouse gas emissions reduction plan, by BAAQMD definition, will allow for future project CEQA streamlining and will identify measures to: o Reduce energy use through conservation and efficiency; o Reduce fossil fuel use through multi-modal and alternative transportation; o Maximize use of and, where feasible, install energy resources; o Increase citywide water conservation and recycled water use; o Accelerate resource recovery through expanded recycling, composting, extended producer responsibility and procurement practices; o Promote and incentivize each of those efforts to maximize community participation and impacts; and o Integrate multiple benefits of green infrastructure with climate resiliency and adaptation. Strategy ES-1.1.2: CAP and Sustainability Strategies Implementation. Periodically review and report on the effectiveness of the measures outlined in the CAP and the strategies in this Element. Institutionalize sustainability by developing a methodology to ensure all environmental, social and lifecycle costs are considered in project, program, policy and budget decisions. Additionally, the CAP measures related to reducing energy use, helps to implement other environmental and sustainability goals of the General Plan including Goal ES-2 Promote Conservation of Energy Resources and Goal ES-3 Improve Building Efficiency. 355 5 Fiscal Impact The cost for CAP implementation, measuring progress and data tracking are contained with the Sustainability Division budget requested in the FY 15/16 and FY 16/17 that will be reviewed at the upcoming Council Budget Study Session. _____________________________________ Prepared by: Misty Mersich, Sustainability Coordinator Reviewed by: Erin Cooke, Assistant to the City Manager & Sustainability Manager Approved for Submission by: David Brandt, City Manager Attachments: A. 2015 Climate Action Plan Progress Update Report 356 CITY OF CUPERTINO CLIMATE ACTION PLAN 2015 Progress Report A summary of 2015 Climate Action Plan Measure implementation Presented to Cupertino City Council in April 2016 Prepared by: City of Cupertino, Sustainability Division 357 1 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT 2015 CLIMATE ACTION HIGHLIGHTS Summarized below are key milestones achieved by the City’s Sustainability and Environmental Programs Divisions since the adoption of the Climate Action Plan. Staffing - Expanded Sustainability and Environmental Programs Divisions by hiring 4 new staff members; Sustainability Coordinator, Utility & Efficiency Analyst, Education Outreach Coordinator and Safe Routes to School Coordinator. New Policies – The CAP prioritized accelerated deployment of varied notable policies: Cupertino Community Vision 2040- adopted to include Climate Action Plan (ES-1.1.1) and CAP and Sustainability Strategies Implementation (ES-1.1.2). Mandatory Commercial Organics Ordinance – Adopted/implemented first phase in September 2015, requiring eight largest organic waste generators to collect food scraps and paper. Environmental Purchasing Policy - updated for internal purchasing of green office, electronic and cleaning supplies. Embedded into 2015 janitorial services agreement. Special Projects - The following CAP noted projects were advanced last calendar year: Silicon Valley Clean Energy - as the first City to take action to establish and join the Authority tasked with bringing a community choice energy option to Cupertino residents and businesses in the winter of 2016/17, (www.svcleanenergy.org). Utility Data & Efficiency - Audited and verified City water meters saving an estimated $8,200 for the remainder of the calendar year and $7,600 annually thereafter. Vehicle Electrification - 15 % of total fleet vehicles are clean fuel vehicles (hybrid and electric), closer to achieving the City’s Bay Area Climate Compact goal. EV Charging -Using regional grant funding to expand the City-installed network of public EV stations to six. Green Business Challenge –selected as 1 of 4 nationwide to compete in ICLEI/Office Depot’s Green Office Challenge; engaged 24 businesses and saved 19,804 pounds of CO2. Safe Routes to School - piloted with eight schools participating. Engaging community members to identify how to best increase student travel safety by collecting travel data, and organizing a contracted Walk Audit at school sites selected by the Working Group. 358 2 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT TABLE OF CONTENTS CLIMATE ACTION HIGHLIGHTS ................................................................................................................... 1 INTRODUCTION ................................................................................................................................................... 3 GREENHOUSE GAS EMISSIONS INVENTORY .......................................................................................... 4 GREENHOUSE GAS REDUCTION MEASURES .......................................................................................... 5 CO-BENEFITS ............................................................................................................................................................. 6 2015 NEAR-TERM MEASURE STATUS SUMMARY .............................................................................. 7 COMMUITY MEASURES .................................................................................................................................... 9 REDUCE ENERGY ................................................................................................................................. 9 ENCOURAGE ALTERNATIVE TRANSPORTATION .............................................................. 19 CONSERVE POTABLE WATER .................................................................................................... 27 REDUCE SOLID WASTE ................................................................................................................. 29 MUNICIPAL MEASURES ................................................................................................................................. 34 IMPROVE FACILITIES ................................................................................................................... 34 CONVERT VEHICLE FLEET ........................................................................................................... 46 REDUCE SOLID WASTE .................................................................................................................. 50 CONCLUSION ...................................................................................................................................................... 52 359 3 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT INTRODUCTION The City has long been a leader in environmental resource conservation and efficiency. This was formalized through the creation of an Environmental Affairs Division (now the Sustainability Division) within the Office of the City Manager in 2008. This team, which expanded significantly in Fiscal Year 15/16, is dedicated to design and implementing the energy, water and transportation scope set forth in the General Plan Environment and Sustainability Element and Climate Action Plan. As directed by the City’s General Plan Sustainability Element, the Climate Action Plan (CAP) seeks to identify emissions reduction strategies that are informed by the goals, values and priorities of our community. The Climate Action Plan was unanimously adopted by City Council in January 2015. It contains over 225 measures to help reach a community-wide greenhouse gas (GHG) reduction goal of 15% below 2010 levels by 2020. The CAP provides a set of strategies intended to guide GHG emissions reduction efforts, typically through a combination of statewide and local actions. As greenhouse gas emissions arise from communities, local governments must play a vital role in mitigation and preparing for the impacts of climate change. The CAP analyzes climate change strategies through two different lenses, a community wide perspective (see page 12) considers the total impact of emissions generated activities and reduction opportunities within the City’s jurisdictional boundaries. The municipal operations perspective (see page 36) considers only emissions resulting from the provision of local government services. The purpose of this report is to benchmark and track the status and progress made on the near-term measures community-wide and in municipal operations. Tracking progress over time will help identify if adjustments to the CAP are needed to reach our near-term greenhouse gas emissions reduction and sustainability goals for the year 2020 and beyond. 360 4 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT GREENHOUSE GAS EMISSIONS INVENTORY Emissions inventories provide a snapshot of the amount and source of greenhouse gas emissions in a given year. The baseline inventory serves as a reference point for reduction targets and informs the measure and action selection process. Baseline inventories of community-wide and municipal operations emissions for 2010 were prepared to serve as a starting point for CAP analysis, and are displayed below. Municipal operations emission can be considered a subset of the community-wide emissions and in Cupertino represent less than 1% of total community-wide emissions. The next inventory update will analyze 2015 data, and is projected to be completed at the end of 2016, depending on release dates of relevant 2015 data from State agencies and utilities. Subsequent updates are to take place every 2-3 years, and will be reported in future progress reports. Energy 55% Water 2% Waste 2% Transportation On-Road 34% Transportation Off-Road 7% Figure 1- Community GHG Inventory 2010 Baseline Facilities 70% Vehicle Fleet 24% Waste 5% Water Services 1% Figure 2- Municipal Operations 2010 Baseline 361 5 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT GREENHOUSE GAS REDUCTION MEASURES As the foundation of its CAP approach, the City has identified bold, overarching goals that guide its pursuit of the emissions reduction targets, which include: Reduce Energy Use / Improve Facilities: recommends ways to increase energy efficiency in existing buildings and increase use of renewable energy community-wide. Encourage Alternative Transportation / Convert Vehicle Fleet: encourages transit, carpooling, walking, and bicycling as viable transportation modes to decrease the number of single-occupancy vehicle trips within the community, and facilitates a shift towards cleaner, alternative fuel vehicles. Conserve Potable Water: promotes the efficient use and conservation of water in buildings and landscapes. Reduce Solid Waste: increases waste diversion through recycling and organics collection, and reducing consumption of materials that will otherwise end up in landfills. Expand Green Infrastructure: enhances the City’s existing urban forest and landscapes on public and private lands. The City’s CAP strategies comprise a framework of goals, measures, and actions through which the near-term (i.e., 2020) targets can be achieved, and progress can be made on the long-term (i.e., 2035, 2050) targets. Reduction measures then describe how each goal can be achieved, and actions describe the specific steps to be taken during the implementation process. The Climate Action Plan has 33 reduction measures to reduce greenhouse gas emissions community-wide and within municipal operations. These 33 reduction measures are then broken out into 225 individual implementation action measures which are identified in the CAP with an implementation timeline. The CAP outlines the measure implementation timeline as follows: On-going items are actions the City already performs or programs the City already offers that should be continued in the future. 362 6 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT Near-term items are those that should be pursued immediately, within a 1-2 year timeframe following CAP adoption. Medium-term items will help to achieve the 2020 reduction target, and should be pursued within 3-5 years following CAP adoption. Long-term items will help provide broader measure implementation, but are not critical to immediate success; these items include actions that can be started now and will take 5+ years to complete, or can be actions that do not require implementation consideration for at least 5 years. The purpose of this report is to benchmark and track the status and progress made on the Near-term Measures, to help identify if adjustments to the CAP are needed to reach our near-term GHG reduction and sustainability goals for the year 2020, which serves as an essential benchmark if the agency is to achieve its advanced targets. This summary includes the goals and performance indicators for the year 2020, which staff is actively tracking, and over time will show if the City and the community are on track to meet our goals or need to modify or strengthen our Climate Action Plan. Overtime, the medium and long-term measures will be added to this report, so that the cumulative impact of all measures completed since the adoption of the CAP will be summarized. To help with progress implementation, the CAP identifies an Implementation Tracking Framework in Appendix C, which serves as the basis for this report Measures that achieve quantifiable emissions reductions include progress indicators that help to track progress. Measures identified as “Supporting Measures” contribute to the city’s goals and are important for GHG reduction, but currently lack a methodology to quantify emissions reductions potential. For many of the measures, there is no relevant dataset available, or certain data is not yet consistently collected. So, in the first few years of CAP implementation, a data collection framework, as presented in this report, will be the starting point to measure the City’s progress towards achieving its 2020 emissions target. CO-BENEFITS As originally evaluated for and noted in the City’s Climate Action Plan, Co-benefits describe the various additional outcomes that could occur as a result of measure implementation, beyond emissions reductions. Co-benefit icons are used to illustrate these overlapping outcomes. The figure below shows the co-benefits and their corresponding icons used within the Climate Action Plan and identified in the measure status update. Improves air quality Increases natural habitat 363 7 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT Reduces energy use Reduces heat island effect Promotes regional smart growth Improves public health Reduces traffic congestion Creates local jobs Reduces water use; Extends community water supply Reduces waste; Extends landfill lifespan Improves water quality; Reduces storm water run-off Provides long-term savings to residents, businesses, and local governments Improves local energy independence Raises community awareness Conserves natural resources Reduces landfill methane Regional Implementation Opportunities 2015 NEAR-TERM MEASURE STATUS SUMMARY As the first progress report since CAP implementation, the status and progress made on the near-term Measures are included. Overtime, the medium and long-term measures will be added to this report as they are implemented, so that the cumulative impact of all measures completed since the adoption of the CAP will be captured. It is essential to track progress and examine trends overtime to determine if the City is on track to reach its GHG reduction goals. As simple as previewing a traffic signal as a driver. Cupertino’s Climate Action progress report summarizes actions across all near-term measure categories, with the following visual cues for readers: • Green: Completed – All required implementation steps have been completed Ongoing – All required initial steps have been completed, but component is still actively being implemented • Yellow: In Progress – Implementation steps are still being developed and pursued based on the original implementation plan 364 8 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT Initiating- Initial steps have not been started, but will be started and implemented before 2020. • Red: On-Hold – Implementation has not proceeded due to a programmatic barrier or is no longer applicable based on the original implementation plan Outlined below is a summary of the implementation status of the City’s Near-Term Reduction Measures: Measure #Measure Name Status Measure #Measure Name Status C-E-1 Energy Use & Data Analysis In -Progress C-T-1 Bicycle & Pedestrian Environment Enhancements In - Progress C-E-2 Retrofit Financing- PACE In -Progress C-T-2 Bike share Program On-going C-E-3 Home & Commercial Building Retrofit Outreach In -Progress C-T-3 Transportation Demand Management In - Progress C-E-5 Community-Wide Solar Photovoltaic Development In -Progress C-T-5 Transit Priority On-going C-E-7 Community Choice Energy Option Complete C-T-6 Transit Oriented Development On-going C-SW-1 Zero Waste Goal In -Progress C-T-7 Community-wide Alternative Fuel Vehicles In -Progress C-SW-2 Food Scrap and Compostable Paper Diversion In -Progress C-W-1 SB-X7-7 Water Reduction In -Progress C-SW-3 Construction & Demolition Waste Diversion Program On-going C-W-2 Recycled Water Irrigation Program In -Progress C-G-1 Urban Forest Program On-going M-F-1 Sustainable Energy Portfolio Complete M-SW-1 Waste Reduction In -Progress M-F-2 Renewable/Low Carbon Electricity Generation On-going M-SW-2 Food Scrap and Compostable Paper Diversion In -Progress M-F-3 Advanced Energy Management Activities Initiating M-SW-3 Construction and Demolition Waste Diversion On-going M-F-4 Grow Existing Building Energy Retrofit Efforts Initiating M-VF-1 Low Emission and Alt Fuel Vehicles On-going M-F-6 Complete Citywide Public Realm Lighting Efficiency On-going M-VF-2 Alternative Fuel Infrastructure On-going M-F-7 Conserve Water Through Efficient Landscaping On-going Community Measures Municipal Measures Cupertino Climate Action Plan- Status of Near Term Measures 365 9 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT COMMUITY MEASURES Detailed below are each of the City’s near-term community measures, which includes a summary of the measure (“Goal”), the process staff is using for tracking that measure (a combination of “Tracking Mechanism” and “Progress Indicators”), the status and implementation efforts to achieve 2020 goals (“Status” and “Implementation Update”). The measures are broken out into their corresponding reduction strategies (reduce energy, encourage alternative transportation, conserve potable water, reduce solid waste, and expand green infrastructure). REDUCE ENERGY MEASURE C-E-1 Energy Use Data and Analysis Goal: Increase resident and building owner/tenant/operator knowledge about how, when, and where building energy is used. Co-Benefits Tracking Mechanism Identify energy savings from participation in energy use data analytics programs. Progress Indicators Participation rates in energy analytics program 10% of single family units (1,500 homes) and 5% of multi-family units (300 units) 775,000 kWh/yr. saved 10% of nonresidential square footage in 2010 baseline year ( 1.27 million sqft) participates in advanced analytics program 2,200,000 kWh/yr. saved Status: In progress A. Work with PG&E to facilitate aggressive implementation of PG&E's Home and Business Area Network (HAN) program within Cupertino Implementation Update: Staff is in communication with PG&E to discuss the application of its Home and Business Area Network program within Cupertino. This program is now called Stream My Data, (http://www.pge.com/en/myhome/addservices/moreservices/streammydata) and it enables residents and businesses to sync any energy analytics tool they buy with their 366 10 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT 0 2000000 4000000 6000000 8000000 10000000 12000000 14000000 16000000 18000000 2010 2011 2012 2013 2014 2015 th e r m s Figure 4- Community-wide Natural Gas Use Commercial Industrial Residential Total smart meter, to allow them to capture real-time data on energy use at the meter level. Staff is also looking into other third party analytics programs for Cupertino residents to utilize as a possible addition to a renewed Green @ Home residential energy program to help expand awareness of energy consumption and target conservation measures based upon this collected information. Below is data from PG&E on total electric and natural gas use community-wide. Overall, Community electricity and natural usage has been reduced over the past 5 years. Between 2010 and 1015, community-wide electricity use has reduced about 41% from 398,637,245 kWh to 237,117,878 kWh, as noted in Figure 3. Community-wide natural gas use has reduced 15% from 2010 to 2015, from 15,805,499 therms to 13,498,530 therms as noted in Figure 4. 0 50000000 100000000 150000000 200000000 250000000 300000000 350000000 400000000 450000000 2010 2011 2012 2013 2014 2015 kW h Figure 3- Community-wide Electricity Use Residential Commercial Total 367 11 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT MEASURE C-E-2 Retrofit Financing Goal: Promote existing and support development of new private financing options for home and commercial building retrofits and renewable energy development. Co Benefits Tracking Mechanism Calculate energy savings from existing building retrofits Progress Indicators Upgrade and retrofit residential and commercial buildings throughout the city; • 750 single-family houses install a comprehensive retrofit package; • 450 single-family houses install a basic retrofit package; • 300 multi-family units receive a comprehensive retrofit package; • 175 multi-family units receive a basic retrofit package; • 875,000 square feet of nonresidential space installs a comprehensive retrofit package Near-Term Measure Implementation Status Ongoing A. Continue to participate in California FIRST to make PACE financing available to commercial, industrial, multi-family residential (5+ units), and non-profit-owned buildings In Progress B. Continue to participate in effort with other Santa Clara County local governments to establish countywide PACE financing district available for residential property owners (could also provide another source of commercial financing to compliment California FIRST program) In Progress .D. Finalize GreenBiz Financing Guide and create residential-focused guide and companion website to direct interested parties to utility, public agency, and local lending institution resources to advance energy efficiency and water conservation measures Implementation Update: Implementation of this measure can be mapped in two areas: 1. Retrofit financing: To enable access to the capital required to make these often costly home and facility improvements, Cupertino has teamed with financing providers adept at this type of specific offering. The City currently participates in the California First (“CA First”) Property Assessed Clean Energy (PACE) program, which provides funding for energy efficiency, renewable energy and water efficiency improvements, to be paid back over time on property tax bills. https://californiafirst.org/ To date, CA First reports that two residential projects have been completed since August 2014, with a total of $48,000 financed. One of the projects was a large solar array greater 368 12 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT than 7kWs. In speaking with CA First staff to gain a reason for the low uptake, they described that contractors report that Cupertino residents most often pay cash for PACE-eligible projects and do not have the need to finance home upgrade projects. CA First also shared that residents may also be utilizing Home Equity lines of credit to pay for upgrades, which in some cases have lower interest rates. Over the next year, City staff will further evaluate community motivations for making energy efficiency upgrades as a means of understanding ways to accelerate residential and business energy upgrade projects and financing options. Also, staff is looking into expanding the number of PACE providers to better serve Cupertino residents and businesses. Expanding the number of PACE providers creates competition in the marketplace and allows residents and business owners to have a choice in their PACE provider. Each PACE provider has different interest rates and terms, so more options will allow residents to choose their provider based upon their specific energy efficiency project and financial circumstances. Staff is looking at this issue through a regional lens with the Joint Venture Silicon Valley Public Climate Task Force and the Association of Bay Area Governments (ABAG), as several other agencies have voiced similar challenges in navigating this landscape and are actively being courted by varied PACE providers. For this reason, ABAG recently completed a process to create a standard services agreement to ensure consistent application of key programmatic elements considered to be critically important for local governments. These include consumer protections and disclosures; local government risk mitigation and indemnification; co-marketing complementary energy efficiency programs; contractor and project quality assurance; and performance tracking, data, and reporting. Additional information on this process and next steps will be brought to Council in the coming months. 2. Building Retrofit Programs. To further incent accelerated deployment of energy and water conservation measures across the community, Cupertino teams with four different regional programs, outlined below, to leverage their skills, tools and resources to cost-effectively support community-wide program uptake. • Bay Area Regional Energy Network (BayREN) runs the Home Upgrade Program, which is equivalent to the basic upgrade program for single-family homes, outlined in the Climate Action Plan. The program provides incentives up to $3,500 for home retrofit upgrade projects. www.bayren.org Current participation in this program to date is as follows; Timeframe Number of projects Energy Savings 11/2013-10/2015 15 completed kWh: 8,069 Therms: 2,590 369 13 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT • PG&E’s Advanced Home Upgrade program is equivalent to the single-family comprehensive retrofit package outlined in the CAP. https://www.bayareaenergyupgrade.org/program-overview/advanced-home-upgrade Community participation in this program is slightly higher, as shown below; Timeframe Number of projects Energy Savings 2013- 2015 35 completed Requested, but not yet provided • BayREN’s Multifamily Building Enhancement Program is the current multi- family residential program for building upgrades available to all Bay Area residents. Participation in the program is designed to complete comprehensive retrofit upgrades and to save 10% or more of a building’s energy use, and provides $750 per unit in rebates to help pay for the enhancements. This is a very popular program, and there is currently a waitlist for the incentive money. Note: program savings are lower than the Home Upgrade Program because units are typically far smaller than a single-family home (sq.ft.) and therefore use less energy. https://www.bayareaenergyupgrade.org/bay-area-multifamily-building-enhancements Timeframe Number of projects Energy Savings 2014- 2015 311 units completed kWh: 405 Therms: 30 • Silicon Valley Energy Watch, a PG&E ratepayer funded program, offers commercial retrofit programs through a partnership with nonprofit Ecology Action, among other services targeting other sectors (e.g. governmental, institutional, and academic). This program focuses on installed upgrades that might include efficient lighting, HVAC, boilers and water heating, refrigeration etc. https://www.sanjoseca.gov/index.aspx?NID=1501 Cupertino itself has participated in their programs and is currently leading a detailed energy audit in partnership with Ecology Action (noted in the municipal summary below). Timeframe Number of projects Energy Savings 2014- 2015 36 projects completed kWh: 945,943 Staff has updated the Cupertino website with the current program information regarding these relevant financing and retrofit programs and will continue public outreach to increase the number of homes and businesses performing energy efficiency upgrades. 370 14 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT Additionally, staff is looking to expand the residential energy efficiency program to take advantage of current rebates, incentives, financing options and regional partnerships since the sunset of its agreement with Acterra’s Green@Home service. MEASURE C-E-3 Home and Commercial Building Retrofit Outreach Goal: Develop aggressive outreach program to drive voluntary participation in energy- and water-efficiency retrofits. Co-Benefits Supporting Measure- progress indicators and goals not provided Near-Term Measure Implementation Status In Progress A. Partner with Housing Division to design a low- to moderate-income targeted energy and water conservation pilot program In Progress B. Partner with local realtor community to develop and implement a building owner outreach campaign that targets new building owners to provide information on available building energy efficiency audit and retrofit programs, as well as locally-available financing options (including PACE financing Implementation Update: In addition to the retrofit-oriented programs noted above, the City is actively working on elevating adherence to existing statewide and local requirements that embed energy efficiency and water conservation into building design, construction and operations. This includes the City’s Green Building Ordinance ( in accordance with the California Green Building Standards Code), adopted in 2013, which applies to all new residential and non-residential buildings and structures, additions, renovations and tenant improvements. The varied City departments track and map Leadership in Energy and Environmental Design (LEED) buildings constructed and operating within the City, which is a third-party certification program of high performance green buildings, and a threshold set through the City’s Green Building Ordinance for numerous project types. LEED Projects in Cupertino as of February 2016 Certified Commercial Interiors 2 New Construction 3 371 15 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT Gold Commercial Interiors 1 Core and Shell 1 Silver Core and Shell 1 New Construction 2 Platinum Homes 1 New Construction 2 In Progress Commercial Interiors 2 Core and Shell 1 Existing Buildings 3 Homes 2 Mid-rise 1 New Construction 2 Retail - New Construction 1 Grand Total 25 GreenBiz. The City’ GreenBiz Program (www.cupertino.org/greenbiz) shepherds local Cupertino small to mid-sized businesses through the statewide California Green Business Program (http://www.greenbusinessca.org). Since 2010, the program has helped 39 businesses through the program saving over 5 million lbs. of CO2. Participation in California Green Business Program 2010 2011 2012 2013 2014 2015 Total To Date # businesses certified 9 5 13 4 3 5 39 Greenhouse Gas Emissions Saved (lbs./CO2)* 154,176 193,823 1,326,937 1,111,351 1,305,303 1,380,131 5,471,721 lbs CO2 Energy Saved (kWh) 149,758 177,605 518,850 563,272 581,183 678,129 2,668,797 kWh Water Saved (gallons) 567,133 815,564 1,544,086 1,691,466 1,716,193 1,871,258 8,205,700 gallons Solid Waste Diverted from Landfill (lbs) 928 2,165 618,102 3,368,120 3,411,388 3,412,625 10,813,328 lbs *Note: this data is reported by the Santa Clara County Green Business Program. GHG emissions are reported in total lbs of CO2, not MT CO2e, which is the metric for the GHG inventory. 372 16 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT MEASURE C-E-4 Energy Assurance & Resiliency Plan Goal: Develop a long-term community-wide energy conservation plan that considers future opportunities to influence building energy efficiency through additional or enhanced building regulations. Co-Benefits Supporting Measure- progress indicators and tracking mechanism not provided Implementation Update: This is a long-term measure, in which the CAP identifies implementation to occur by 2035 or beyond. As the City is working to prioritize near-term (2020) goals in this early stage of implementation, there is no progress to report. If it becomes feasible to start this measure sooner, staff will work with the community to develop an energy plan that considers energy sources and their reliability with regards to estimated climate change impacts. Even though the exact measures focused on developing a citywide energy plan are not yet advancing, the Cupertino Building department has participated in all 7 energy code trainings offered by the BayREN Codes & Standards Program to elevate staff awareness of these requirements to ensure effective citywide implementation and adherence to the mandates. Specifically, trainings focus on practical, effective enforcement strategies. The City also participated in the Permit Resource Opportunity Program (PROP) (one of only 15 in the entire bay area). The PROP effort was an evaluation of best practices and addressing challenges related to energy code compliance and enforcement in local building departments and was used to identify ways to improve compliance around the bay area. The final report can be found here: https://www.bayren.org/codes/prop-final-report and its findings will inform the development of the agency’s long-term energy and resilience plan. This development will also be informed by the City’s involvement in the Silicon Valley 2.0 Adaptation and Resilience Project (https://www.sccgov.org/sites/osp/SV2/Pages/SV2.aspx). This adaptation decision-support tool developed for Santa Clara County communities, funded through a Strategic Growth Council grant, identifies climate vulnerabilities and risks to all infrastructure, including energy, that will aid in future communitywide energy planning. 373 17 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT 0 20 40 60 80 100 120 140 160 2010 2011 2012 2013 2014 2015 Figure 5- Cupertino Solar PV Permits MEASURE C-E-5 Community Wide Solar Photovoltaic Development Goal: Encourage voluntary community-wide solar photovoltaic development through regulatory barrier reduction and public outreach campaigns. Co-Benefits Tracking Mechanism Track community-wide installed PV capacity and electricity generation potential. Progress Indicators •1.5 MW of new solar PV capacity installed community-wide (residential and nonresidential combined) •Apple Campus 2 solar PV systems installed to generate 15 million kWh/yr •5.5 MW of existing solar PV installed from 2010-2014 Near-Term Measure Implementation Status In Progress F. Work with PG&E to share information about PG&E’s Community Solar program In Progress L. Instruct building and plan check officials to provide information to customers on the benefits of pre-wiring / pre-plumbing for solar applications at the time of new construction or substantial retrofits, including lower up-front costs as compared to retrofitting buildings in the future. Implementation Update: From 2010-2015, over 484 solar installations have been installed community- wide. The CAP reports that 5.5 MW of Solar PV was installed from 2010-2014, which will contribute to the agency’s emissions reductions recorded on a 2010 baseline. In 2015, an additional 147 permits were applied for to install about 811.36 kW of electricity, as shown below. 374 18 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT MEASURE C-E-6 Community-Wide Solar Hot Water Development Goal: Encourage communitywide solar hot water development through regulatory barrier reduction and public outreach campaigns. Co-Benefits Tracking Mechanism Track total hot water heating capacity of installed solar hot water heaters. Progress Indicators This is a long-term measure, in which the CAP identifies implementation to happen after 2020, so no indicators are written in the CAP for 2020. Implementation Update: This is a long-term measure, in which the CAP identifies implementation to occur by 2035 or beyond. As the City is working to prioritize near-term (2020) goals in this early stage of implementation, there is no progress to report. Staff is working with Community Development to track this data point, among others, through the deployment of their new software system to enable more ready access to this information for future reports and to drive future related outreach MEASURE C-E-7 Community Choice Energy Option Goal: Partner with other Santa Clara County jurisdictions to evaluate the development of a regional CCE option, including identification of the geographic scope, potential costs to participating jurisdictions and residents, and potential liabilities. Co-Benefits Tracking Mechanism Track community participation in clean- electricity purchasing programs. - Supporting Measure. Progress Indicator The CAP assumed that a local CCE program would not take place before 2020, but this measure was completed ahead of the assumed timeline. Near-Term Measure Implementation Status Complete A. Work with other Santa Clara County partners to conduct feasibility 375 19 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT study of developing multi-jurisdiction CCE program Complete B. If study determines CCA to be feasible and advantageous to Cupertino residents and businesses, work with Santa Clara County partners to prepare necessary additional study reports, informational materials, and any other supporting research and/or documents to help pursue development of CCA program Implementation Status: While this measure does not include progress indicators in the CAP, it was identified as an important long-term strategy to help the community achieve their more aggressive future-year reduction targets. When the CAP was adopted it was assumed that a local CCE program would not take place before 2020. Ahead of the implementation schedule outlined in the CAP, the City of Cupertino joined the cities of Sunnyvale, Mountain View and the County of Santa Clara to collaboratively pursue the creation of the Silicon Valley Community Choice Energy Authority. The Initial Assessment was completed May 2015. The Technical Feasibility Study was completed November 2015. As a result, Cupertino was the first city in Santa Clara County to join the Silicon Valley Community Choice Energy Authority in December 2015, for a total of twelve communities joining the JPA. This includes the cities of Campbell, Gilroy, Los Altos, Los Altos Hills, Los Gatos, Monte Sereno, Morgan Hill, Mountain View, Saratoga, Sunnyvale and County of Santa Clara. Current recruitment for an interim CEO is taking place and that the first Board of Directors meeting is scheduled for April 13, 2016. www.svcleanenergy.org. ENCOURAGE ALTERNATIVE TRANSPORTATION MEASURE C-T-1 Bicycle & Pedestrian Environment Enhancements Goal: Continue to encourage multi-modal transportation, including walking and biking, through safety and comfort enhancements in the bicycle and pedestrian environment. Co-Benefits Supporting Measure- progress indicators and goals not provided Near-Term Measure Implementation Status In Progress A. Update City's Bicycle and Pedestrian Transportation Plans to reflect current bicycle and pedestrian safety and access needs; prioritize new projects identified In Progress B. Partner with local bicycle advocacy groups / clubs and neighborhood groups to identify dangerous bicycle or pedestrian conditions, and develop strategies to address problem areas 376 20 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT In Progress C. Partner with schools, neighborhood groups, and businesses to encourage alternative transportation commute options. Expand alternative commute measures within existing sustainability programs, including Green@Home, GreenBiz, and Green@school In Progress D. Continue to evaluate City’s bike & walkability through use of online and community surveying tools including WalkScore, Bicycle Friendly Community criteria, Safe Routes to School Walkability Checklist, etc. Implementation Update: Implementation of this measure can be mapped in two areas: 1. Bicycle Transportation Plan & Infrastructure - The Public Works Transportation Division is currently in the process of completing the improvements approved and funded by Council in March 2015, as a part of the 2015 Bicycle Transportation Plan update. These include enhancing existing bike lanes with green pavement treatment in front of several elementary, middle and high schools, adding buffer zones to existing bike lanes along Stevens Creek Blvd and Stelling Road, and creating openings through several cul-de-sacs to allow for bike connectivity between neighborhoods. . Staff is also currently working on a more comprehensive bike plan update, which it anticipates will be presented to Council May 2016. This update will likely recommend further enhancements to the bike network including implementing Class IC bike lanes and network of off-street bike trails. There have been many pedestrian enhancements completed to date including the recent completion of a pedestrian crossing prioritization study, which has included upgrades to existing uncontrolled crossing locations with enhancement such as in-pavement lights, warning signs and bulb-outs to reduce crossing distances; the addition of four school crossing guards, funded by the City . Next year staff is planning to update the Pedestrian Transportation Plan, which will guide the development and planning of our pedestrian facility improvements. 2. Education & Encouragement - At Mid-Year, the City Council approved a full-time position to grow the current scope of the part-time role of the City’s first Safe Routes to School Coordinator working to support and encourage active mobility to school across six pilot schools. Through this program, the City is demonstrating its commitment to significantly increase students biking and walking to campus and enhance safety skills and education among students and parents alike. 377 21 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT MEASURE C-T-2 Bikeshare Program Goal: Explore feasibility of developing local bikeshare program. Co-Benefits Supporting Measure- progress indicators and goals not provided Near-Term Measure Implementation Status Ongoing A. Continue to operate municipal bike fleet for City employee use and encouragement of bike fleets at large employers Implementation Update: The City currently operates a municipal bike fleet, for city employee use. There are two bicycles that are available at City Hall at any time for staff to take for meetings around town. The City used to have four bicycles available at City Hall but re-commissioned them to Blackberry Farm for workers to use as an alternative to the gas-powered golf cart. As a part of the City’s GreenBiz program, employers are encouraged to offer bikes for employee usage. Outreach to employers will continue to be done through GreenBiz and possibly periodic Commuter Benefits compliance evaluations through the Bay Area Air Quality Management program. Staff is exploring ways to bring Bay Area Bike Share service to the City as part of a long-term integrated transportation strategy. MEASURE C-T-3 Transportation Demand Management Goal: Provide informational resources to local businesses subject to SB 1339 transportation demand management program requirements and encourage additional voluntary participation in the program. Co-Benefits Tracking Mechanism Identify VMT reductions associated with TDM programs offered throughout the community Progress Indicators 10% of total employees in 2020 participate in TDM program that offers rideshare promotion, telecommuting/ alternative schedules, and subsidized transit fares. Near-Term Measure Implementation Status In Progress A. Support regional efforts to implement SB 1339 commute benefit requirements for employers with more than 50 employees 378 22 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT Implementation Update: Staff contacted BAAQMD to get a list of all the local businesses that are in and out of compliance with the SB1339 Commuter Benefits Program. All businesses that are required to participate in the program are in compliance. Since SB1339 is set to expire January 1, 2017, staff will continue to monitor the changing program requirements and compliance rate in the city. In the interim, staff are outreaching on commuter benefits programs and active mobility opportunities with area employers through GreenBiz and occasional correspondence in the Economic Development newsletter, “BizBuzz”. MEASURE C-T-4 Transit Route Expansion Goal: Explore options to develop local community shuttle or community-wide car sharing to fill gaps in existing transit network. Co-Benefits Supporting Measure- progress indicators and goals not provided Identify VMT reductions associated with TDM programs offered throughout the community Implementation Update: This is a long-term measure, in which the CAP identifies implementation to happen after 2020. If it becomes feasible to start this measure sooner, progress will be reported to Council. Growing our City’s public transportation options and expanding alternative transit infrastructure is critical to reducing our greenhouse gas emissions, reaching our climate goals, and supporting a sustainable Cupertino. For this reason, current members of Cupertino’s City Council are taking leadership to evaluate alternative transportation opportunities for our community to shift current modes away from prioritizing single occupancy vehicles to those that optimize mass transit (see: http://www.cupertino.org/index.aspx?page=1428). 379 23 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT MEASURE C-T-5 Transit Priority Goal: Improve transit service reliability and speed. Co-Benefits Supporting Measure- progress indicators and goals not provided Near-Term Measure Implementation Status Ongoing A. Work with VTA to identify local roadways on which traffic congestion frequently leads to impacted transit reliability or timing. Implementation Update: Transit priority functionality was activated on VTA Limited 323 buses on Sunday, January 25, 2016. These buses trigger transit signal priority along the San Carlos Street-Stevens Creek Boulevard corridor between Delmas Avenue in San Jose and Stelling Road in Cupertino. The Public Works Transportation Division continues to work with VTA to monitor the effectiveness. MEASURE C-T-6 Transit-Oriented Development Goal: Continue to encourage development that takes advantage of its location near local transit options (e.g., major bus stops) through higher densities and intensities to increase ridership potential Co-Benefits Supporting Measure- progress indicators and goals not provided Near-Term Measure Implementation Status Ongoing C. Continue to consider off-street parking requirements for transit- oriented and mixed use developments, for developments providing shared parking, and for developments that incorporate travel demand management measures. Implementation Update: This is an ongoing action item that will be evaluated with each individual project on a case-by-case basis. The City’s Complete Streets Policy and various elements of its recently adopted General Plan work to embed this approach into all future development projects. Shared parking is often used and approved as part of mixed-use 380 24 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT development projects. If requested by the applicant, in cases where a parking study indicates that fewer parking stalls than that mandated by the Parking Ordinance are required, approval is considered and frequently granted. In addition, the City adopted its 2014-2022 Housing Element in May 2015 to accommodate its Regional Housing Needs Allocation (RHNA). Of the five sites identified as Priority Housing Sites, three (Marina Plaza, Barry Swenson and Vallco Shopping District) are located within a ¼ mile walking distance of the VTA Priority Development Area (PDA) located within the city along Stevens Creek Boulevard and N. De Anza Boulevard. Note that Vallco Shopping District would a Priority Housing Site upon adoption of a Specific Plan for that Special Area. In addition, the City Council considered increasing the office development capacity along the cities major corridors (Stevens Creek Boulevard, N. Wolfe Road, N. De Anza Blvd.) and allocated office development potential of up to 2,000,000 square feet within the Vallco Shopping District Special Area (also located within ¼ mile of the VTA PDA) subject to the adoption of a Specific Plan. MEASURE C-T-7 Community-Wide Alternative Fuel Vehicles Goal: Encourage community-wide use of alternative fuel vehicles through expansion of alternative vehicle refueling infrastructure. Co-Benefits Tracking Mechanism Track community-wide shift towards alternative fuel vehicles Progress Indicator Shift vehicle fuel use from gasoline and diesel to electricity and other clean fuels. Community-wide motor vehicle profile shifts as follows: • 5% of gasoline passenger vehicles shift to plug-in hybrid electric (PHEV); • 5% of diesel passenger vehicles shift to PHEV; • 5% of gasoline light-duty trucks shift to PHEV; • 3% of gasoline heavy-duty trucks shift to CNG; • 3% of diesel heavy-duty trucks shift to CNG; • 40% of diesel buses shift to CNG, 20% shift to PHEV 381 25 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT Near-Term Measure Implementation Status In Progress B. Develop Alternative Fuel Infrastructure Siting Plan focused on strategic development of EV charging stations and municipal CNG fueling stations based upon demand analyses and feasibility studies; EV station siting plans will identify appropriate locations for Level 1 (slow charge), Level 2 (fast charge), and Level 3 and DC (rapid charge) charging stations in community and will analyze different models for charging station ownership/management (i.e., public vs. private sector) In Progress C. Work with MTC and Bay Area local governments to develop informational brochures and technical support for developers / contractors interested in providing public electric vehicle (EV) charging ports in new projects In Progress D. Identify regional partners for collaboration on multi-family EV charging station retrofit program to develop strategies for installing EV chargers in existing multi-family buildings/apartment developments On-going E. Continue to enforce pre-wiring for at-home/business electric vehicle charging ports in new construction per City’s existing ordinance and evaluate additional building code and zoning code revisions recommended through SGC Grant In Progress F. Pursue local incentives, partnerships, and funding mechanisms guided by SGC Grant; Provide links on City's website to sources of cash rebates or other financial incentives for purchase and/or lease of alternative fuel vehicles On-going G. Continue to provide links to maps identifying EV charging stations and alt fuel stations Implementation Update: Implementation of this measure can be mapped in five unique areas: 1. Evaluation and Planning – In 2015, the City partnered with the County of Santa Clara and other regional cities to prepare a Strategic Growth Council grant to enable six participating agencies to launch an innovative regional alternative fuel vehicle planning effort titled “ Driving to Net Zero: Decarbonizing Transportation in Silicon Valley.” The grant was awarded and Cupertino is serving on the Advisory Team to oversee its implementation. The initiative includes zero emissions vehicle and infrastructure planning, siting, data forecasting, training, policy and program platform that will inform future agency decision-making across a variety of sectors. 2. Enforcement- Staff is continuing to enforce amendments to the Green Building Standards Code, to require all new construction to provide a dedicated branch circuit to serve a future charging station and pre-wiring or a raceway/conduit to 382 26 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT feed future wires to residential stalls and to 10% of non-residential stalls. Technical support is currently available through City’s building department for anyone that wants to install EV charging ports in a new project; in compliance with the City’s 2014 pre-wiring requirements. 3. Education - Information on EV charging is available on the City website, www.cupertino.org/evs Staff is working to evaluate whether informational brochures are needed. 4. Data Gathering - Staff is working with other community partners through the Driving to Net Zero project, to get better access to data that can be consistently tracked over time, in the absence of having access to protected driver records available through DMV. In the meantime, a rough estimate of number of electric vehicles owned by Cupertino residents can be found by looking at the California Air Resources Board California Vehicle Rebate Program (CVRP). The CVRP program gives rebates up to $5,000 for California residents that purchase or lease an all battery electric, plug-in hybrid, hydrogen fuel cell or neighborhood electric vehicles. Between March 18, 2010 to February 1, 2016, there have been 1,204 rebates amounting to $2,728,600 approved for applicants in the 95014 zip code. Not all eligible EV drivers participate in the CVRP, so staff looked at the participation rates in the program. According to a report by the Center for Sustainable Energy, participation rate for Santa Clara County is about 74%, so applying this number brings the estimated number of EV’s owned by Cupertino residents to about 1,692 – 2,193 electric vehicles. (https://cleanvehiclerebate.org/eng/content/cvrp-participation-thru-2015-03). 5. Infrastructure Deployment -. The City participated in the Prospect Silicon Valley convened-Bay Area Charge Ahead Project (BayCAP) to secure and install 4 additional dual port charging station at the Cupertino Library and Quinlan Community Center (see: http://prospectsv.org/category/news-events/media/baycap/). The City also purchased and installed a PV-tied system in the Service Yard to fuel its growing alternative fleet. Additionally, the City’s GIS division tracks the number of electric vehicle charging stations installed in the city, through permit data. This includes home chargers and public chargers. As of the end of 2015, a total of 154 charging stations had been permitted in the City. Residents that uses Level 1 charging at home, do not need to install a charger and therefore will not be reflected in this number. 383 27 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT CONSERVE POTABLE WATER Goal: Implement water conservation policies contained within Cupertino's Urban Water Management Plan to achieve 20 percent per capita water reductions by 2020. Co-Benefits Tracking Mechanism Track per capita water use compared to 2010 baseline levels. Progress Indicators Reduce water use 20% less per capita than 2010 baseline usage. Near-Term Measure Implementation Status In Progress B. Work with local water providers to identify opportunities for water use data tracking and reporting at community-wide level; if successful, share this information through CAP’s annual progress reporting procedures, aligned with required General Plan implementation annual reports Ongoing C. Partner with community/neighborhood groups to promote existing water conservation programs and participation in voluntary turf-removal programs Implementation Update: Implementation of this measure can be mapped in four unique areas: 1. Data & Analytics - Staff is working with local water providers to collect water use data at a community level for annual CAP reporting purposes. The City is currently split between three different water retailers: California Water Service (CAW) and San Jose Water Company (SJW). CAW has provided annual aggregate community water usage data from 2013-2015 and are working to provide any additional historic data available. SJW is working on providing annual aggregate community water usage data from 2010-2015 and expects to produce this information by May 2016. Staff is coordinating with both retailers to determine how to most effectively obtain this community wide data on an annual basis. 2. Education & Trainings - Staff historically engaged with neighborhood groups via its “growing greener blocks” initiative, which remains a service offering for Block Leaders to select when planning a community Block Party. As staff reevaluates more comprehensive energy/water outreach/engagement programs, the Division continues to host water conservation workshops (e.g. Graywater Workshop hosted MEASURE C-W-1 SB-X7-7 384 28 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT in 3/16, with 20+ attendees), offer resources via the DIY Toolkit available at the Cupertino Library, and share information via www.cupertino.org/savewater, Cupertino Scene articles and social media channels. 3. Financial Incentives – The City has teamed with the Santa Clara Valley Water District (SCVWD) to expand participation in the Landscape Rebate Program, designed to assist residential, commercial, industrial and institutional property owners increase efficiency in outdoor water use by converting lawns or pools to drought tolerant landscaping and/or upgrading to high efficiency irrigation equipment. In FY15/16 the SCVWD offered $2 per square foot of converted landscape to encourage low water using landscapes and offered additional rebates for high efficiency sprinkler nozzles and bodies, flow meters, and weather-based irrigation controllers. Experts estimate that 20 gallons per square foot of lawn converted is saved annually. Starting in 2015, Cupertino offered an additional $1 for residents to participate in the program, bringing the total rebate amount to $3 per square foot. The City contributed $115,000 towards this program. Participation in the program is as follows: # Rebates Sq. Feet Converted Est. Annual Savings ( Gallons) 2010-2012 5 7,196 143,920 2013 8 9,933 198,660 2014 16 15,585 31,170 2015 106 138,121 2,762,420 4. New Requirements - In March 2016, Cupertino’s City Council approved and adopted an updated Municipal Water Efficient Landscape Ordinance (MWELO) that will conform to the new State requirements while maintaining a streamlined approval process. It applies to development projects that include landscape areas of 500 sq. ft. or more (e.g. residential, commercial, industrial and institutional projects) that require a permit, plan check or design review. The previous landscape size threshold in Cupertino was 2500 sq. ft., which shall remain for existing landscapes that are being rehabilitated. Staff is working on tracking data on the number of permits and related efficiency statistics related to the implementation of this ordinance. 385 29 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT MEASURE C-W-2 Recycled Water Irrigation Program Goal: Recycled Water Irrigation Program Explore opportunities to use recycled water for irrigation purposes to reduce potable water demands. Co-Benefits Supporting Measure- progress indicators and goals not provided Near-Term Measure Implementation Status Ongoing B. Continue to monitor regional discussions regarding expansion of existing recycled water systems in neighboring jurisdictions In Progress C. Identify City-owned site to install educational demonstration project that showcases water-efficient landscaping strategies, alternative irrigation options, and/or low-impact landscape design techniques Implementation Update: Staff is involved in regional Santa Clara Valley Water District Landscape Committee Meetings and attending other relevant showcases and symposiums. Educational demonstration projects that showcase water efficient landscape strategies are earmarked in the FY 15/16 budget and are anticipated to be deployed based upon Public Works capacity/direction and information from water consumption data and analysis to clearly identify the appropriate location to site the installation. The City partnered with Acterra to offer a free training to the community in rainwater harvesting and rain gardens on March 5th, at which rain barrels were installed at the Environmental Education Center. This workshop was followed by a free Graywater Laundry to Landscape Seminar offered by the City the very next week. REDUCE SOLID WASTE MEASURE C-SW-1 Zero Waste Goal Goal: Maximize solid waste diversion community-wide through preparation of a zero waste strategic plan. Co-Benefits 386 30 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT Supporting Measure- progress indicators and goals not provided Near-Term Measure Implementation Status In Progress A. Continue to implement City’s goal to divert 75% of community-wide solid waste through franchise waste hauling contract Implementation Update: A Mandatory Commercial Organics Ordinance was adopted and implemented to increase organic waste diversion and therefore enhance overall communitywide diversion. As the first tiers of the ordinance were implemented as of September 1st, 2015 and January 20th, 2016 (see C-SW-2), it is too soon to have data that quantifies a diversion increase. Cupertino's community-wide overall diversion in 2014 and likely 2015 has been greatly impacted by unreported recycling and onsite reuse of demolition and construction debris for self-haul projects over the past 2-3 years. Although diversion is important, to achieve zero waste goals it is more important to track and emphasize a reduction in material to landfill. Additionally, it is important to note that the amount of waste going to the landfill is affected by the economy. A strong economy generates more consumption, which can cause landfill tonnage from the commercial and residential sectors to increase. Most importantly, a strong economy generates more new and redevelopment, which can trigger an increase in demolition debris. Staff is looking at researching these effects further and will provide more information in later CAP updates. MEASURE C-SW-2 Food Scrap and Compostable Paper Diversion Goal: Continue to promote the collection of food scraps and compostable paper through the City's organics collection program Co-Benefits Tracking Mechanism Track the percentage of compostable food and paper that are diverted from the solid waste stream. Progress Indicators • Households divert 40% of food scraps and compostable paper; • 10% of businesses divert 20% of food scraps and compostable paper; • Households and businesses divert 85% of yard waste Near-Term Measure Implementation Status In Progress A. Continue to implement the City's organics collection program outreach campaign, including outreach to Cupertino’s business community regarding upcoming commercial food waste ordinance 387 31 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT Implementation Update: Outreach continues to grow for the City’s organic collection program, and is strategically paired with outreach for other materials management programs (e.g. Food Rescue, Rethink Waste and GreenBiz). Outreach efforts have specifically aligned with the following initiatives: 1. New Mandate - The City’s Mandatory Commercial Organics Ordinance went into effect for the largest food generators on September 1, 2015, affecting 8 accounts (each account can include multiple businesses). The second tier, affecting 18 mid-level food generators, went into effect on January 20, 2016. City staff visited all affected businesses and offered employee training, free bins and customized signage, and technical assistance. Staff is planning for the third tier, which will go into effect by July 1, 2018, for businesses and multifamily sites generating a sizable (4 cubic yards or more) quantity of solid waste. All single family homes have been provided a yard waste cart where they can put their organic waste. 2. Workshops - Upon completion of a free home composting workshop, residents receive a free backyard compost bin (diversion rates do not include diversion due to backyard composting). 3. Strengthened Hauler Partnership - In 2015, Staff and Recology began prioritizing efforts to reduce contamination and produce a cleaner compost product. The residual (the amount of contaminated material removed from the organics stream) was deducted from total composted tonnage. This change in reporting affected 2015 organics collection totals. This reporting more accurately reflects the amount of total organics composted. 4. Regional Partnerships - In addition to food waste diversion achieved by organics recycling, the City joined a regional campaign to increase commercial food donations. In 2015, eight Cupertino businesses donated about 112,000 pounds of food to West Valley Community Services’ food bank, a Cupertino-based nonprofit. Efforts described above have achieved the following community results: 388 32 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT MEASURE C-SW-3 Construction & Demolition Waste Diversion Program Goal: Continue to enforce diversion requirements in City's Construction & Demolition Debris Diversion and Green Building Ordinances. Co-Benefits 0 5000 10000 15000 20000 25000 30000 2011 2012 2013 2014 2015 Figure 6- Commercial Total Tons Waste Collected Total Compost collected 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% 2011 2012 2013 2014 2015 Figure 7- Percentage of Commercial Accounts with Organics Collection Service 389 33 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT Tracking Mechanism Track the percentage of construction and demolition waste that is diverted from the solid waste stream. Progress Indicators 60% of construction and demolition waste diverted, per City’s ordinance – approximately 2,600 tons/yr. Near-Term Measure Implementation Status Ongoing A. Continue to implement City's 60% C&D diversion requirement for applicable projects as defined in City's Construction and Demolition Debris Diversion Ordinance Implementation Update: Staff continues to require 60% diversion from self-haul projects (3,000 sq. ft. or more) or use Recology, wherein all Construction & Demolition (C&D) materials are sorted and all recyclable materials are recycled, on average resulting in 75-90% diversion EXPAND GREEN INFRASTRUCTURE MEASURE C-G-1 Urban Forest Program Goal: Support development and maintenance of a healthy, vibrant urban forest through outreach, incentives, and strategic leadership. Co-Benefits Tracking Mechanism Track the number of new trees planted community-wide Progress Indicators 2,500 net new trees planted in the city from 2015 onward *Assumes 2,400 from Apple 2 Campus, and 100 from other community plantings. Near-Term Measure Implementation Status Ongoing A. Continue implementing landscaping requirements in City's Development Standards, Design Guidelines, and other regulatory documents Implementation Update: The Public Works Department tracks the number of new trees planted by the City and plots them on a GIS map that is available to the public through the 390 34 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT Open Data Portal: http://gis.cupertino.opendata.arcgis.com/. Staff will track the number of net new trees from 2015 onward and communicate with Apple representatives to get an update on the status of the tree plantings at the Apple 2 Campus as the project progresses. Year Net New Tress Planted 2010 96 2011 40 2012 147 2013 470 2014 410 2015 100 MUNICIPAL MEASURES Detailed below are each of the City’s near-term municipal measures, which includes a summary of the measure (“Goal”), the process staff is using for tracking that measure (a combination of “Tracking Mechanism” and “Progress Indicators”), the status and implementation efforts to achieve 2020 goals (“Status” and “Implementation Update”). The measures are broken out into their corresponding reduction strategies; improve facilities, convert vehicle fleet, reduce solid waste. IMPROVE FACILITIES MEASURE M-F-1 Sustainable Energy Portfolio Goal: Procure low-carbon electricity through utility-based programs or participation in a Community Choice Co-Benefits Tracking Mechanism Track portion of municipal electricity that comes from renewable sources. Progress Indicators •100% of municipal electricity use in 2020 comes from 75% renewable (or zero carbon) sources via PG&E Green Option OR •100% of municipal electricity use in 2020 comes from 100% renewable ( or zero carbon) sources via Community Choice Energy Program 391 35 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT Near-Term Measure Implementation Status A. Support Utility-Enhanced Clean Generation Portfolio On-Hold Conduct feasibility study of PG&E Green Option financial costs (per kilowatt hour (kWh) costs have not been finalized yet as part of program development) for City to purchase part or all of its electricity from renewable sources; Develop resolution to opt into PG&E Green Option program for municipal electricity purchases (Note: program is currently capped at 272 MW and as 5 year pilot program; it is currently unknown how enrollment decisions will be made should program become fully subscribed) B. Create Community Choice Energy Option Complete Continue to monitor CCE efforts within Santa Clara County, City of San Francisco, and East San Francisco Bay cities; if local support exists to further; consider CCE options within Cupertino, pursue the following steps:;Identify potential jurisdictional partners for development of CCE (e.g., Sunnyvale, Mountain View); Conduct feasibility study to assess viability of CCE program in Cupertino (can be conducted jointly with33 2 other jurisdictional partners); Based on results of feasibility study, pursue development of (or participation in) CCE per state 4 20requirements; Adopt resolution for City to participate in CCE.; Determine feasibility of City to purchase electricity for municipal operations from CCE, based on approved CCE rate structure; CCE may provide options for level of participation (e.g., 50% clean electricity, 100% clean electricity) Implementation Update: The city does not envision participating in the PG&E Green Option as Silicon Valley Clean Energy (SVCE) is anticipated to go online in the Winter of 2016/2017 and will provide more cost effective access to renewable energy for the City accounts. SVCE will host its inaugural meeting on April 13, 2016. Staff is actively involved in the development of SVCE, as its contracted outreach lead, and will remain informed of key decisions made through Council’s appointed Board of Directors Member to the Authority. SVCE anticipates going to market to learn indicative pricing with confirmed rate prioritize (e.g. costs and environmental attributes) in the Summer of 2016, at which time staff will evaluate potential rate structures, renewable portfolio and GHG content to determine applicability for City electricity accounts. Transition to SVCE could yield significant GHG savings for the agency, and the community at large, as detailed in the City’s Climate Action Plan and also SVCE’s Technical Study. For the year 2014, PG&E reported that the renewable percent of electricity is at 28%. The state mandates that all utilities will have 33% renewable portfolio by the year 2020. SVCE anticipates exceeding this requirement in its first year of operations, with an “opt-up” 392 36 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT option for residents that want to purchase 100% renewable energy. There may also be a middle-ground service offering of 50-75% that would be available at a slight cost-premium (i.e. 3 cents per kWh). In the interim, staff is working to identify opportunities to disaggregate consumption by meter to better gauge the effectiveness of energy conservation measures when implemented at the circuit level. PG& E provides municipal electricity and natural gas use in aggregate for all municipal buildings and accounts. Staff is currently working to improve access to data and be able to differentiate between the different end uses of buildings, parks, park and parking lot lights, so that the energy efficiency programs can be effective and progress can be tracked. The agency’s aggregate electricity and natural gas use are detailed below. Not that the City has reduced energy use over time, despite the addition of new facilities and infrastructure have come online between 2010 – 2015 (e.g. Franco Park, Environmental Education Center). The largest energy conservation project can be attributed to a citywide streetlight retrofit funded, in part, through the City’s Department of Energy, Energy Efficiency and Conservation block Grant (EECBG) in 2009 – 2010. 0 1000000 2000000 3000000 4000000 5000000 6000000 2010 2011 2012 2013 2014 2015 KW h Figure 8- Municipal Electricity Usage Public Lighting Buildings 393 37 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT MEASURE M-F-2 Renewable or Low-Carbon Electricity Generation Goal: Develop renewable energy facilities at municipal buildings and facilities. Co-Benefits Tracking Mechanism Calculate total electricity generation capacity of municipal solar PV systems. Progress Indicators Assumes five solar sites are developed for total installed capacity of 508 kW generating 818,000 kWh/yr. Assumes no solar thermal systems are pursued prior to 2020 Near-Term Measure Implementation Status A. Install Solar PV Installations on City Buildings / Property Ongoing Based on results of City’s previous solar feasibility study, pursue PV installations at City Hall complex, Quinlan Community Center, Cupertino Library, Corporation Yard, and Civic Center carports through Santa Clara County Regional PPA or other financing option (e.g., City procurement, lease-to-own); Review future potential for additional PV installations at sites associated with implementation of Civic Center Master Plan (e.g., Teen Center, new City Hall, Sheriff's Office) 0 10000 20000 30000 40000 50000 60000 2010 2011 2012 2013 2014 2015 th e r m s Figure 9- Municipal Gas Usage 394 38 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT Implementation Update: The City installed its first municipal solar carport project is located at the Public Works’ Service Center, adjacent to the Burnett Bicycle-Pedestrian Bridge on Mary Ave. The system size capacity is 103.7 kW, and is estimated to generate enough electricity to offset 74% of the Service Center energy use across three unique meters, including the Don Burnet Bridge. The solar installation is estimated to save the City approximately $25,000 per year. As of February 29, 2016 the array has generated 163,661 kWh since it was installed on December 6, 2014. MEASURE M-F-3 Advance Energy Management Activities Goal: Reduce energy consumption in existing municipal buildings through data analysis, interactive management systems, employee education, and building operation and maintenance policies. Co-Benefits Tracking Mechanism Track energy savings from advanced energy analytics program participation. Progress Indicators Assumes 14.5% reduction in 2010 baseline building electricity use (i.e., 410,000 kWh/yr. saved) and 14.3% reduction in 2010 baseline building natural gas use (i.e., 6,900 therms/yr. saved) Near-Term Measure Implementation Status C. Install Energy Management Systems Initiating Work with energy analytics firm and City IT department to identify additional opportunities for office system EMS to automate control and monitoring of office equipment (e.g., computers, monitors, printers), beyond those already installed, including strategy for advanced power strip purchases and use in City buildings; Work with energy analytics firm to review existing advanced lighting controls/monitoring systems (e.g., automatic dimmers), ensure proper operation, and identify opportunities for additional installations in other City buildings/facilities E. Design / Implement Facilities & Equipment Energy Management Policy In Progress Research and collect facility-related energy conservation policies and procedures from cities locally and nationally; Develop draft Policy and Procedure that outlines facility energy and water conservation goals, employee responsibilities, operating equipment procedures, and 395 39 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT purchasing guidelines, to ensure consistency with City’s Environmentally Preferable Procurement Policy; Implement Procedure and track progress to achieve utility cost and resource savings on periodic basis ; Adjust Procedure as best practices evolve and new technologies are introduced to achieve larger financial and utility conservation gains over time; Identify third-party certification programs and rating criteria to recognize Cupertino’s utility conservation efforts Implementation Update: Staff has scheduled energy audits in April 2016 with Silicon Valley Energy Watch/Ecology Action for Quinlan Community Center, City Hall, the Sports Center, Blackberry Farm, the Senior Center, and the Library. These audits will guide future energy efficiency projects and initiatives. The City also expects to procure a Utility Data Management Solution to assist with tracking energy usage and billing data by Summer 2016. Staff also initiated policy collection which informed the development of the City’s first Plug Load Management Policy (developed with PW), Green Purchasing Policy & User Guide, and forthcoming Workstation Energy Management Policy (developed with IT). MEASURE M-F-4 Grow Existing Building Energy Retrofit Efforts Goal: Reduce energy consumption in existing municipal buildings through energy efficiency improvements. Co-Benefits Tracking Mechanism Track energy use reductions associated with building retrofits. Progress Indicators Assumes 254,000 kWh/yr. saved as result of interior lighting retrofits and occupancy sensors, and 59,000 kWh/yr. saved as a result of plug load controllers (assumed 200 controllers installed) Near-Term Measure Implementation Status A. Complete Building Retrofits Initiating Use results from advanced analytics program (see M-F-3 A) to identify appliances and building systems that are underperforming from energy use perspective, and develop prioritization plan for equipment replacement / building retrofits; work with PG&E to identify available rebates, incentives, or on-bill financing opportunities for various 396 40 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT improvements; Continue to make progress on implementing efficiency opportunity findings from City's Detailed Energy Audit; establish budget priority for Energy Audit update in next five years Implementation Update: To date the City has made many energy efficiency improvements across its municipal portfolio, a sampling of which is displayed in the table below. Staff is currently working on cataloging the savings and inventorying of all the energy efficiency measures that have been installed. The goal is to improve the currently tracking systems to produce a report for CAP progress each year. These measures will also benefit from the results of the Silicon Valley Energy Watch/Ecology Action energy assessment on municipal buildings that is anticipated to be completed this spring. Year Facility Improvement Measure (FIM) Location Annual Energy Savings (kwh) 2010 PC Power Management Software Citywide 34000 2011 Lighting Upgrade - (Electronic) Ballast Replacement 10300 Torre Avenue 2305 2011 Lighting Upgrade - T12 --> T8 10300 Torre Avenue 4053 2011 Lighting Upgrade - De-lamping 10300 Torre Avenue 1340 2011 Lighting Upgrade - Motion Sensor (Hall/Stairways) 10300 Torre Avenue 496 2011 Lighting Upgrade - T12 --> T8 10300 Torre Avenue 2702 2011 Lighting Upgrade - Occupancy Sensors Citywide 6676 2011 Lighting Upgrade - T12 --> T8 10185 Stelling 5963 2013 Plug Load Occupancy Sensor 10555 Mary Ave 668 2013 Lighting Upgrade --> T12 - T8 10555 Mary Ave 3714 2013 Lighting Upgrade - (Electronic) Ballast Replacement 10555 Mary Ave 2995 2013 Lighting Upgrade - 32W T8 --> Low Wattage T8s 10555 Mary Ave 1378 2013 HVAC Maintenance 10555 Mary Ave 4073 2013 Lighting Upgrade --> Occupancy Sensors 10555 Mary Ave 1011 2013 Vending Controllers 10555 Mary Ave 3224 2013 Lighting Uprade - 32W T8 --> Low Wattage T8s 10185 N Stelling Rd. 1817 2013 Plug Load Occupancy Sensor 10185 N Stelling Rd. 1068 2014 Lighting Upgrade - 32W T8 --> Low Wattage T8s 10300 Torre 14462 2014 Vending Controllers 10300 Torre 4836 96,781 397 41 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT MEASURE M-F-5 Expand New Building Energy Performance Goal: Establish energy efficiency targets for new municipal buildings. Co-Benefits Tracking Mechanism Calculate energy savings related to implementation of City’s Green Building Ordinance as it relates to new municipal building construction. Progress Indicators All new municipal construction complies with the City’s Green Building Ordinance Implementation Update: This is a long-term measure, which is applicable to new municipal building construction. During next Fiscal Year, staff anticipates development of a citywide facilities master plan, which will detail energy efficiency and conservation opportunities, based upon benchmarks developed of current facility energy use (in partnership with Silicon valley Energy Watch and Ecology Action, noted above). From this, staff will establish energy conservation targets for each operating facility, not just those during new construction (i.e. the Environmental Educational Center). Through this process, staff will evaluate opportunities to not just reach energy savings goals, but also identify opportunities to achieve recognized performance ratings like EPA’s Energy Star Rating and/or USGBC’s LEED Certification, as guided by the City’s Green Building Ordinance. MEASURE M-F-6 Complete Citywide Public Realm Lighting Efficiency Goal: Upgrade public realm lighting to more efficient technology. Co-Benefits Tracking Mechanism Track electricity savings from street light and park light retrofits. Progress Indicators Achieved! – 872,000 kWh/yr. saved through street light retrofit program Achieved! – 75,000 kWh/yr. saved through park unit parking lot and pathway light retrofit program Near-Term Measure Implementation Status A. Complete Street Light Retrofits 398 42 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT Ongoing Consider best practices in lighting technology at time of bulb and / or fixture replacement or repair; Ensure that new street light installations achieve comparable or better efficiency level as achieved through previous street light retrofit program. B. Retrofit Remaining Parking Lot and Park Facility Lighting Ongoing Identify City-owned parking lot lighting that has not yet been converted to LED, magnetic induction, or similar highly-efficient technology; Identify park lighting (e.g., pathways, restroom facilities, area lighting, sport field lighting) that has not yet been converted to LED, magnetic induction, or similar high-efficiency technology; Identify appropriate energy-efficient lighting technologies for sports fields / courts that still provide lighting levels required for applicable sporting use; Develop implementation timeline and funding program; contact City's PG&E account representative regarding availability of rebate programs and / or on-bill financing options to cover retrofit program; Consider updating City’s Standard Provisions or other lighting guidance documents to specify efficiency levels to be achieved in new installations or lighting retrofit projects. Implementation Update: At the time the CAP was written, the streetlights and park lights in the City had been upgraded to high efficiency lights, but not LED because, at the time, it was still considered a new technology that had limited outdoor deployment outside of a laboratory testing environment. Further, the City sought to minimize waste associated with the conversion by prioritizing a retrofit vs. replacement, which was required to transition to LEDs. Now that additional lamp types/sizes are available, the agency will work to convert its streetlight portfolio with LEDs, noted for higher efficiency than the current technology. As induction lamps throughout the city require replacement, Public Works will upgrade to LED. Once such project across decorative lamps will occur this fiscal year in Canyon Oak/Oak Valley and Rancho neighborhoods. Further, in FY 16/17, the Public Works team will a complete citywide retrofit of all park and parking lot lighting to LED. Park light lamps that were converted between 2014 and 2014 are shown below: Location Pre (Tech) Post (Tech) Savings (kWh) Memorial Park/Quinlan Metal Halide LED 52275 Creekside Park Metal Halide LED 11685 Jollyman Park Metal Halide LED 10906 Three Oaks Park Metal Halide LED 3895 Somerset Park Metal Halide LED 2337 Monta Vista Park Metal Halide LED 4284.5 Varian Park Metal Halide LED 4284.5 McClellan Ranch Park Metal Halide LED 1947.5 Monta Vista Commercial Area Metal Halide LED 13136.4 TOTAL 104,751 399 43 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT MEASURE M-F-7 Conserve Water Through Efficient Landscaping Goal: Implement best management practices in landscaping design and share City successes community-wide to lead by example in water conservation action. Co-Benefits Tracking Mechanism Track municipal water use and conservation efforts. Progress Indicators Achieve Bay Area Climate Compact’s goal for 20% water savings by 2018 over 2008 baseline. Assumes 27.5 million gallons of water saved per year over 2008 baseline of 138 million gallons Near-Term Measure Implementation Status A. Utilize Weather-Track System to Reduce Park & Median Water Use On Hold Continue to use weather-based irrigation technology in City irrigation practices to prevent unnecessary or excessive water in public spaces B. Benchmark & Track Water Use per Meter On-going Establish operational framework for tracking and reviewing water use at the meter level to allow identification of improper irrigation system use, leaks, or other wasteful water activities. C. Adopt Water Budget & Green Grounds Policy In Progress Develop landscaping policy that promotes efficient watering schedules, high- and low-priority water zones (for use during pre-drought conditions), water-efficient and climate-sensitive plant selection, and compost-friendly landscape maintenance. Evaluate alternative or maintain existing water-efficient irrigation technology systems, particularly in areas of high irrigation use; Consider use of water budgets for irrigated landscape areas; Create education stations or post information to City’s website that describe City’s green grounds practices D. Use Bay-Friendly Landscaping Techniques across Parks & Medians; Install Demonstration Gardens Ongoing Adopt city-wide policy that requires specification of Bay-Friendly, drought-tolerant landscapes in any new City project or private project receiving City funds to include landscaped areas as project element; Expand Parks & Recreation Green Policies, which focus on water-efficient landscaping, across all departments to prioritize Bay-friendly and efficient irrigation practices and technologies to maintain Install informational placards or signs at new landscaping installations that quantify water saving potential from new designs and refer public to 400 44 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT additional informational resources; Develop informational materials based upon City’s practices and lessons learned to support effective implementation of City’s Water Efficient Landscaping Ordinance E. Install Graywater and Rainwater Catchment Systems in New Construction and Major Retrofit Projects Ongoing Incorporate graywater plumbing and/or rainwater catchment systems in new municipal buildings, where appropriate; F. Recognize Staff “Water Wise” Practices In Progress Research municipal operations-oriented behavior change and utility conservation incentives programs to create model for Cupertino; Develop outreach and engagement tools to notify employees of campaign and support their program enrollment and continued involvement; Educate and train staff by sharing strategies to save water indoors and out so they may effectively participate in program; Launch “Water Wise” program and offer ongoing coaching and support; Implementation Update: Implementation of this measure can be mapped in two unique areas: 1. Data Collection & Analytics - Staff has completed a citywide water meter and site verification process. The results of this helped elevate staff knowledge on the locations and quantities of outdoor and indoor water use across landscaping and municipal facilities. Water consumption data is currently being tracked manually, so staff is looking into utility data management solution to automate this process. An RFQ was released on March 22nd, 2016 and a solution is anticipated to be implemented in the Summer of 2016. 2. Landscape Conversion - As appropriate and aligned with the City’s Water Conservation Policy (see: www.cupertino.org/savewater) Public Works staff is installing drought tolerant landscaping across high water consumption areas by converting turf or replacing plant types to more drought tolerant species. This includes the following sites; Blackberry Farm (Drought tolerant landscaping) 2009, Memorial Park (Drought tolerant landscaping) 2014, Wilson Park (Drought tolerant landscaping/Lawn conversion) 2014, McClellan Ranch/EEC (Drought tolerant landscaping) 2015, Oak Valley Park (Drought tolerant landscaping) 2015, Senior Center (Drought tolerant landscaping/Lawn Conversion) 2015. Additionally, rain barrels have been installed at the McClellan Ranch Environmental Education Center. Due to these efforts, annual municipal water use has decreased from a 2008 baseline, with water use in 2015 achieving the state and Santa Clara Valley Water District target of 30% 401 45 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT below the 2013 baseline. Staff will continue to implement water conservation programs and monitor water use annually to continue with the community water reduction goals. 0 20 40 60 80 100 120 140 160 2009 2010 2011 2012 2013 2014 2015 Mi l l i o n s G a l l o n s Figure 10- Annual Municipal Water Use 0 20000000 40000000 60000000 80000000 100000000 120000000 140000000 160000000 2010 2011 2012 2013 2014 2015 Ga l l o n s Figure 11- Water Use by City owned Facilities School Fields Parks Median Golf Course Fountain Buildings 2008 Baseline: 138 402 46 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT CONVERT VEHICLE FLEET MEASURE M-VF-1 Low Emission and Alternative Fuel Vehicles Goal: Transition City vehicle fleet to fuel-efficient and alternative-fuel vehicle models. Co-Benefits Tracking Mechanism Track composition of municipal fleet by vehicle type/fuel type. Progress Indicators Achieve Bay Area Climate Compact’s goal for 25% of vehicle fleet to comprise zero-or-low emissions light duty vehicles by 2018. Near-Term Measure Implementation Status B. Expand City Bike Fleet, Training, and Promotion Ongoing Continue to pursue implementation of municipal bike fleet in instances where vehicle trips can safely and easily be replaced with trips via bicycle; comprehensive bike fleet could result in opportunities to downsize municipal vehicle fleet or reduce VMT to help achieve fleet emissions target C. Promote Vehicle Alternatives to Reduce Car-Travel to City-Sponsored Events Ongoing Continue to pursue implementation of municipal car share program, which like municipal bike fleet could allow City to downsize its municipal vehicle fleet; Consider opportunities to expand municipal bike fleet and / or car share program as part of municipal fleet transition strategy and at time of regular vehicle replacement (e.g., could tasks performed by retired vehicle be performed with shared vehicle?); Ensure that community-wide shuttle, car share, bike share assessment includes consideration of City staff commutes and special-event opportunities Implementation Update: Implementation of this measure can be mapped in five unique areas: 1. Vehicle Replacement - The Public Works Fleet Division has followed the City’s Environmentally Preferable Procurement Policy and Vehicle Replacement Schedule, which requires staff to evaluate and purchase alternative fuel vehicles where fiscally feasible within a defined threshold. Guided by these policies, Sustainability Division staff prepared a lifecycle cost calculator for Public Works to utilize when replacing light-duty vehicles in 2014, 2015, and 2016 as a means of simplifying procurement 403 47 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT decisions and also accelerating attainment of the City’s Bay Area Climate Compact goal of vehicle fuel conversions. As of the end of 2015, City fleet vehicle composition is as follows: Hybrid 13% All Electric 2% Diesel 23% Gas 62% In 2015, the fleet introduced two Ford Focus all battery electric vehicles to its fleet, which are zero emissions, in addition to two PHEV CMAX, yielding 15% of total clean vehicle fleet. The agency needs to accelerate its deployment of zero emission vehicles to achieve its 25% by 2018 Bay Area Climate Compact goal. On a fully charged battery, the EV’s range (the distance an electric car can travel on a fully charged battery) is about 76 miles. EV’s are perfect addition to the fleet, as the majority of all trips taken by fleet pool cars, are less than 15 miles. At time of replacement, the PW department is utilizing the lifecycle cost calculator to estimate the true cost of vehicle ownership to inform procurement decisions. Sustainability staff is also working to connect PW decision makers with other key resources (e.g. grants, information) to make AFV purchases cost-effective. Staff finalized a research memo and lifecycle cost calculator to inform future fleet procurement decisions. The FY16/17 budget does not include any light-duty vehicles. With emerging alternative fuel vehicle (AFV) technology in the heavy-duty sector, it is not likely that staff will expand its AFV % this year. 2. Fleet Management - The agency is also evaluating opportunities to right-size the fleet and vehicle types based upon departmental and staff requirements which may further reduce pool vehicle size (currently only three vehicles). Staff is also evaluating new Recreation and Community Service reservation software for fleet use to identify capacity and shared-use opportunities for dedicated vehicles that could be more readily programed available for broader staff use. 3. Training - The Fleet Supervisor and Lead mechanic are trained to service hybrid electric vehicles. Any new shop team members will be invited to future hybrid, PHEV, electric training opportunities, likely at De Anza College, in partnership with DOE-funded Breathe California. 4. Outreach & Encouragement - Staff is working to build informational and motivational materials for employees regarding the City’s bike fleet, available for work and personal trips. Messaging within the new Pool Vehicle Policy and at time of vehicle checkout is also being employed to encourage staff to choose a bike if it is 404 48 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT appropriate for the trip they are taking. Staff is working on updating the internal intranet website so city employees will more easily have access to the information. MEASURE M-VF-2 Increase Alternative Fuel Infrastructure Goal: Increase availability of alternative refueling infrastructure to support municipal fleet transition. Co-Benefits Tracking Mechanism Track installation of alternative vehicle refueling infrastructure as compared to vehicle fleet composition targets. Progress Indicators Assumes 10 dual-port electric vehicle charging stations installed Near-Term Measure Implementation Status A. Install Electric Vehicle Charging Stations Ongoing Develop City-owned EV Charging Station Procedure to ensure proper finance, training, maintenance, and reporting functions are established for effective staff oversight; Develop Alternative Vehicle Fueling Infrastructure (AVFI) standards and plan to define prospective locations and siting criteria (e.g., design guidelines, standard drawings, specifications) to facilitate on-street and off-street applications ; Install additional electric vehicle charging stations for municipal fleet use; as share of electric vehicles in fleet increases, ensure adequate access to charging stations for municipal vehicles through additional installations or controlled access Install portion of electric vehicle charging stations in areas accessible to community members, such as Civic Center parking lots; consider new electricity load created from EV charging stations during building design phase of Civic Center Master Plan to provide opportunities to offset this increased load through additional installation of rooftop PV systems Implementation Update: This measure was written in the CAP as a medium and long-term measures, so implementation is anticipated after 2020. The number of dual port electric charging stations installed by the City as of 2015, and are available to the public, include: 1 dual –port station on Rodriguez Ave (public – grant funded) 2 dual-port stations in Library parking lot (public – grant funded) 1 dual-port station at Service Center (private – purchased by the City) 2 dual port stations at Quinlan Community Center (public – grant funded) 405 49 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT The first charging station on Rodriguez Ave was installed March 2012. In 2015, the City of installed two new ChargePoint Level 2 electric vehicle (EV) charging stations next to the Cupertino Library and two new ChargePoint Level 2 EV charging stations within the Quinlan Community Center Parking Lot, all of which became fully operational in December 2015. The stations have been installed and will be maintained as part of a wider effort known as the Bay Area Charge Ahead Project, a grant program funded by the California Energy Commission. All stations managed by the City allow free City vehicle fleet charging, to ease use for all employees. Additionally, as a partner on the Driving to Net Zero regional Sustainable Community Planning Grant received by the County of Santa Clara Office of Sustainability from the Strategic Growth Council, the City will be provided with resources for increased electric vehicle charging infrastructure and receive technical assistance to develop an implementation platform that includes a feasibility study, siting plan, permitting and regulatory standards, training, education and outreach. The project had its kickoff meeting in the beginning of 2016 and staff will be actively participating in the project to ensure its results align with the needs of the City. MEASURE M-VF-3 Promote Behavior/Fuel Optimization Goal: Encourage and promote fuel-efficient driving. Co-Benefits Tracking Mechanism Track fuel savings in vehicles equipped with telematics hardware and/or route optimization practices. Progress Indicators Assumes 10% fuel savings over 2010 baseline for all passenger and light-duty trucks (i.e., 2,100 gallons of gasoline saved per year); assumes full implementation of Measure VF-1, Action A assumptions Implementation Update: This measure is to be implemented in the mid or long-term. Currently the Building department is using route optimization for inspections and the city continues to implement the anti-idling policy within the Vehicle Use Policy. 406 50 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT REDUCE SOLID WASTE MEASURE M-SW-1 Waste Reduction Goal: Reduce municipal waste through procurement policies, waste diversion goals, and waste stream monitoring and analysis. Co-Benefits Tracking Mechanism Track reductions in municipal solid waste disposal by waste category. Progress Indicators Assumes 80% reduction in organic waste (e.g., food scraps and compostable paper, landscape debris/trimmings, scrap lumber, paper/cardboard) from 2010 baseline; emissions reductions are shown next to actions that address specific organic waste sources (i.e., M-SW-1 B, M-SW-2 A, M-SW-3 A). Assumes 80% diversion of municipal office paper over 2010 baseline levels Near-Term Measure Implementation Status A. Conduct Waste Characterization Audits and Track Materials/Diversion In Progress Continue to perform waste audits at various City facilities to; determine type / quantity of waste being produced; measure effectiveness of existing waste diversion practices; identify opportunities for new waste diversion practices; establish baseline data for measuring progress towards waste reduction and diversion goals using CalRecycle data or EPA ReTrac Tool; Establish regular waste audit cycle to track implementation of various waste reduction practices Implementation Update: Cupertino was one of the first cities to pilot paperless agenda. The Agency’s current Environmental Purchasing Policy, revised in 2015, outlines guidelines on office paper reduction. Staff is researching ways to implement this measure and track progress. Ideas include reducing the source at time of procurement (buy less paper) and reducing the amount of paper used (use paper with one side printed as scrap paper, or print less). Council will be updated as this measure progresses. MEASURE M-SW-2 Food Scrap and Compostable Paper Diversion Goal: Continue to divert food scraps and compostable paper from municipal waste stream. Co-Benefits 407 51 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT Tracking Mechanism Track diversion of food scrap and compostable paper diversion of municipal waste stream Progress Indicators Assumes 90% diversion of municipal food waste and plant waste over 2010 baseline levels Near-Term Measure Implementation Status A. Expand Municipal Collection and Composting Program In Progress Continue implementation of food scrap / compostable paper collection program at municipal buildings Implementation Update: Compost bins to collect food waste are available in all city facilities and a growing number of city parks for employee and public use. Staff is working on a method of tracking municipal food waste diversion or conducting food waste audits in coordination with Recology. MEASURE M-SW-3 Construction and Demolition Waste Diversion Goal: Enhance construction and demolition waste diversion rates for municipal projects. Co-Benefits Tracking Mechanism Track diversion of construction and demolition waste for municipal projects. Progress Indicators Assumes City continues to achieve 60% diversion of construction and demolition waste from municipal projects Implementation Update: All municipal projects use Recology, wherein all Construction & Demolition (C&D) materials are sorted and all recyclable materials are recycled, on average resulting in 75-90% diversion. 408 52 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT CONCLUSION This document both chronicles and showcases the laudable actions taken by the City and its community partners to abate climate impacts through demonstrable emissions reductions efforts deployed since the Climate Action Plan was adopted in January 2015. Below is summary of key accomplishments that can be quantified to date: Summary of Metrics Across All Measures Community Measures # Measure Name Metric C-E-1 Energy Use & Data Analysis Reduction in Community-wide Electricity Use from 2010 baseline 635,755,123 kWh Reduction in Community-wide Natural Gas Use from 2010 baseline 2,306,969 therms C-E-2 Retrofit Financing- PACE Single and Multi-Family Retrofit Program ( 2013-2015) Energy Savings 8,474 kWh 2,620 therms Commercial Retrofit Program ( 2014-2015) Energy Savings 945,943 kWh C-E-3 Home and Commercial Building Retrofit Outreach GreenBiz Program Savings ( 2010-2015) 39 businesses 2,668,797 kWh electricity 8,205,700 gallons water 10,813,328 lbs solid waste C-E-5 Community-Wide Solar Photovoltaic Development Solar PV systems installed ( 2010-2014) 5.5 MW Solar PV systems installed ( 2015) 811.36 kW C-T-7 Community-wide Alternative Fuel Vehicles # of electric vehicles owned by residents (2010-2015) Estimate 1,692-2,193 EV’s # charging stations installed ( home and public) 154 charging stations C-W-1 SB-X7-7 Water Reduction Landscape rebate program ( 2010-2015) 135 rebates 170,835 sq. ft. Water savings: 3,136,170 gallons 409 53 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT Community Measures C-SW-2 Food Scrap and Compostable Paper Diversion Commercial Participation rate in organics collection ( 2015) 18% % of compost in total tons collected (2015) 27% C-SW-3 Construction & Demolition Waste Diversion Program Diversion of construction and demolition materials average 75%-90% diversion C-G-1 Urban Forest Program Number of trees planted (2010-2015) 1,263 trees planted Municipal Measures # Measure Name Status M-F-1 Sustainable Energy Portfolio Reduction in Municipal Electricity Use from 2010 baseline 1,523,104 kWh Reduction in Municipal Natural Gas Use from 2010 baseline 14,700 therms M-F-2 Renewable/Low Carbon Electricity Generation Generation of Solar PV since installation at Service Center (Dec. 2014) 163,661 kWh M-F-4 Grow Existing Building Energy Retrofit Efforts Reduction in Municipal Electricity Use for Building Retrofits from 2010 baseline 96,781 kWh M-F-6 Complete Citywide Public Realm Lighting Efficiency Estimated Reduction in Municipal Electricity Use for Public Lighting from 2010 baseline 104,751 kWh M-F-7 Conserve Water Through Efficient Landscaping % below 2008 baseline as of 2015 30% M-VF-1 Low Emission and Alt Fuel Vehicles Make up of Fleet Vehicles ( 2015) Hybrid- 13%, All Electric- 2%, Diesel- 23%, Gas- 62% M-VF-2 Alternative Fuel Infrastructure EV Chargers installed by City 5 dual-port public stations 1 dual port private station for City fleet Of note, while the City does not yet have quantifiable data for Measure C-E-7, Community Choice Energy Option (CCE), this measure deserves special recognition as it was successfully accomplished with the creation of the Silicon Valley Community Choice Energy 410 54 City of Cupertino Prepared for City Council, April 2016 2015 CLIMATE ACTION PLAN PROGRESS REPORT Authority (SVCEA) on April 13th, 2016, years in advance of this CAP target. Cupertino was the first City to take action to join and form SVCEA, and was a leader in its development along with the cities of Sunnyvale, Mountain View and the County of Santa Clara. The potential of a local CCE on the reduction of greenhouse gas emission in the electricity sector is promising. Staff will continue to monitor its progress, and development as SVCE brings new options for renewable energy to Cupertino residents and businesses in the spring of 2017. Despite the progress noted in this Report, CAP objectives are ambitious and many measures remain outstanding. Over the coming year, the City will continue to develop its institutional knowledge in the area of emissions generation sources, reduction opportunities and emissions inventories. Additionally, over time, data collection, monitoring and tracking methods will continue to improve. As data continues to be collected, trends will be evaluated to gauge the agency’s relative progress towards achieving its adopted goals and GHG reduction targets to determine new opportunities to pivot, shift or realign measures as needed to advance communitywide and municipal goals. This report is just the beginning of a long journey towards reducing emissions sources in the community and making Cupertino a more attractive place to live by lowering energy and water bills through conservation, improving cyclist and pedestrian safety, addressing traffic concerns, improving local air quality and improving the overall quality of life for all. 411 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1629 Name: Status:Type:Reports by Council and Staff Agenda Ready File created:In control:4/11/2016 City Council On agenda:Final action:4/19/2016 Title:Subject: Conceptual Study for Route 85 Corridor Mass Transit Alternatives Sponsors: Indexes: Code sections: Attachments:Staff Report Action ByDate Action ResultVer. City Council4/19/20161 Subject: Conceptual Study for Route 85 Corridor Mass Transit Alternatives Receive presentation on Route 85 Corridor Mass Transit Alternatives Study CITY OF CUPERTINO Printed on 4/15/2016Page 1 of 1 powered by Legistar™412 1 PUBLIC WORKS DEPARTMENT CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3354 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: April 19, 2016 Subject Conceptual Study for Route 85 Corridor Mass Transit Alternatives Recommended Action Receive presentation on Route 85 Corridor Mass Transit Alternatives Study Background On March 1, 2016, the City Council authorized the City Manager to negotiate and execute an agreement with a consultant to complete a conceptual alternatives study for the State Route 85 Corridor, between State Route 87 and Highway 101 in Mountain View. WSP Parsons Brinckerhoff, based on their extensive world-wide experience in mass transit and highway planning and design, was hired to provide this study. The Santa Clara County Valley Transportation Authority (VTA) is actively discussing the possibility of placing a countywide transportation sales tax measure on the November 2016 ballot. This tax measure would be focused on enhancing public transportation systems such as BART and Caltrain, improving pavement maintenance, highways, and expressways, and improving active transportation alternatives for bicyclists and pedestrians. Recently, through the advocacy of a coalition of West Valley and North County cities, there is an element of the tax measure being discussed that is titled, “West Valley/North County Transit.” Additionally, the City Council had, in July 2015, adopted Resolution No. 15-077, “Implementation of long-term mass transit solutions to serve major employment centers along and near the highway 85 corridor”. Subsequently, the VTA established a State Route (SR) 85 Corridor Policy Advisory Board to ensure the stakeholder cities in the SR 85 corridor are involved in the development of existing and 413 2 potential transportation capital projects along the corridor and have the opportunity to provide input and recommendations to the VTA Board of Directors. Discussion In order to provide the City Council with more detailed, but still very conceptual studies of alternatives and cost estimates, WSP Parsons Brinckerhoff was engaged based on their extensive mass transit and highway planning and design experience. The alternatives to be studied range from a light rail system, a conversion of the existing HOV lane to an express lane with a widening for a bus-only, or BRT lane, and possibly other combinations. This study is intended to provide information to inform negotiations on what may be included in the transportation tax measure in November. WSP Parsons Brinckerhoff will provide a presentation at this Council meeting and a hardcopy of the presentation will be provided on the dais. Fiscal Impact None. Sustainability Impact Any future projects that enhance non-vehicular transportation modes or reduce congestion will have positive effects on greenhouse gas emissions. _____________________________________ Prepared by: Timm Borden, Director of Public Works Approved for Submission by: David Brandt, City Manager 414 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1372 Name: Status:Type:Reports by Council and Staff Agenda Ready File created:In control:1/14/2016 City Council On agenda:Final action:4/19/2016 Title:Subject: Report on Committee assignments and general comments Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. City Council4/19/20161 Subject: Report on Committee assignments and general comments Report on Committee assignments and general comments CITY OF CUPERTINO Printed on 4/15/2016Page 1 of 1 powered by Legistar™415