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08-02-2016 Searchable packetCITY OF CUPERTINO AGENDA Tuesday, August 2, 2016 10300 Torre Avenue and 10350 Torre Avenue CITY COUNCIL 5:00 PM Non-televised Special Meeting Closed Session (5:00); Followed by Televised Regular Meeting (6:45) NOTICE AND CALL FOR A SPECIAL MEETING OF THE CUPERTINO CITY COUNCIL NOTICE IS HEREBY GIVEN that a special meeting of the Cupertino City Council is hereby called for Tuesday, August 02, 2016, commencing at 5:00 p.m. in City Hall Conference Room A, 10300 Torre Avenue, Cupertino, California 95014 and the regular meeting following at 6:45 p.m. in Community Hall Council Chamber, 10350 Torre Avenue, Cupertino, California 95014. Said special meeting shall be for the purpose of conducting business on the subject matters listed below under the heading, “Special Meeting." SPECIAL MEETING ROLL CALL - 5:00 PM 10300 Torre Avenue, City Hall Conference Room A CLOSED SESSION 1.Subject: Conference with Legal Counsel- Existing litigation (Paragraph (1) of subdivision (d) of Gov’t Code Section 54956.9) Name of Case: Carlton v. City of Cupertino, et. al., Federal District Court, Case no. 5:14-CV-03178-RMW 2.Subject: Conference with Legal Counsel - Anticipated Litigation: Significant Exposure to litigation pursuant to paragraph (2) of subdivision (d) of Gov’t Code Section 54956.9 -[one case] ADJOURNMENT REGULAR MEETING Page 1 CITY OF CUPERTINO 1 August 2, 2016City Council AGENDA PLEDGE OF ALLEGIANCE - 6:45 PM 10350 Torre Avenue, Community Hall Council Chamber ROLL CALL STUDY SESSION 1.Subject: Update on Economic Development Strategic Plan Recommended Action: Receive update A - Draft Economic Development Strategic Plan CEREMONIAL MATTERS AND PRESENTATIONS 2.Subject: Transportation video of the Shanghai Metro subway system in Shanghai, China Recommended Action: Present video POSTPONEMENTS ORAL COMMUNICATIONS This portion of the meeting is reserved for persons wishing to address the council on any matter not on the agenda. Speakers are limited to three (3) minutes. In most cases, State law will prohibit the council from making any decisions with respect to a matter not listed on the agenda. CONSENT CALENDAR Unless there are separate discussions and/or actions requested by council, staff or a member of the public, it is requested that items under the Consent Calendar be acted on simultaneously. 3.Subject: Approve the July 5 City Council minutes Recommended Action: Approve the minutes A - Draft Minutes 4.Subject: Accept Accounts Payable for the week ending May 13, 2016 Recommended Action: Adopt Resolution No. 16-076 accepting Accounts Payable for the week ending May 13, 2016 A - Draft Resolution B - AP Report 5.Subject: Accept Accounts Payable for the period ending May 20, 2016 Page 2 CITY OF CUPERTINO 2 August 2, 2016City Council AGENDA Recommended Action: Adopt Resolution No. 16-077 accepting Accounts Payable for the period ending May 20, 2016 A - Draft Resolution B - AP Report 6.Subject: Accept Accounts Payable for the period ending May 27, 2016 Recommended Action: Adopt Resolution No. 16-078 accepting Accounts Payable for the period ending May 27, 2016 A - Draft Resolution B - AP Report 7.Subject: Accept Accounts Payable for the period ending June 3, 2016 Recommended Action: Adopt Resolution No. 16-079 accepting Accounts Payable for the period ending June 3, 2016 A - Draft Resolution B - AP Report 8.Subject: Accept Accounts Payable for the period ending June 10, 2016 Recommended Action: Adopt Resolution No. 16-080 accepting Accounts Payable for the period ending June 10, 2016 A - Draft Resolution B - AP Report 9.Subject: Accept Accounts Payable for the period ending June 17, 2016 Recommended Action: Adopt Resolution No. 16-081 accepting Accounts Payable for the period ending June 17, 2016 A - Draft Resolution B - AP Report 10.Subject: Accept Accounts Payable for the period ending June 24, 2016 Recommended Action: Adopt Resolution No. 16-082 accepting Accounts Payable for the period ending June 24, 2016 A - Draft Resolution B - AP Report 11.Subject: Treasurer's Investment Report for the Quarter ending December 31, 2015 Recommended Action: Accept the Treasurer's Investment Report for the Quarter ending December 31, 2015 Staff Report A - Investment Portfolio quarter ended December 31, 2015 B - Supplemental Portfolio Analysis 12.Subject: Treasurer's Investment Report for the Quarter ending March 31, 2016 Page 3 CITY OF CUPERTINO 3 August 2, 2016City Council AGENDA Recommended Action: Accept the Treasurer's Investment Report for the Quarter ending March 31, 2016 Staff Report A - Investment Portfolio B - Supplemental Portfolio Analysis 13.Subject: Amendment to Silicon Valley Regional Interoperability Authority joint powers authority Recommended Action: Approve revisions to the Silicon Valley Regional Interoperability Authority joint powers authority to add a new member, the Santa Clara Valley Transportation Authority Staff Report A - Proposed SVRIA JPA B - Redlined Proposed SVRIA JPA 14.Subject: Approval of the destruction of records from the City Clerk, City Manager, Human Resources, Public Works, and Recreation & Community Services (Quinlan Community Center and Senior Center) Departments Recommended Action: Adopt Resolution No. 16-083 approving the destruction of records from the City Clerk, City Manager, Human Resources, Public Works, and Recreation & Community Services (Quinlan Community Center and Senior Center) Departments Staff Report A - Draft Resolution 15.Subject: Accept resignation of Public Safety Commissioner Bob Cascone and fill the unscheduled vacancy. Recommended Action: Accept resignation of Public Safety Commissioner Bob Cascone and direct staff to fill the unscheduled vacancy; and set an application deadline of 4:30 p.m. on Friday, September 9, 2016 and an interview date of Tuesday September 20, 2016 beginning at 5:30 p.m. Staff Report A - Resignation Letter 16.Subject: Execute a contract with Dan Gertmanian for Math Olympiad Program and Chess instruction for period July 1, 2016 to June 30, 2017 Recommended Action: Authorize City Manager to negotiate and execute contract with Dan Gertmanian for Math Olympiad Program and Chess instruction for period July 1, 2016 to June 30, 2017 Staff Report A - Draft Agreement 17.Subject: Application for Alcoholic Beverage License for Husdow, Inc (dba Red Hot Wok), 10074 E Estates Drive Page 4 CITY OF CUPERTINO 4 August 2, 2016City Council AGENDA Recommended Action: Recommend approval to the California Department of Alcoholic Beverage Control of the Application for Alcoholic Beverage License for Husdow, Inc (dba Red Hot Wok), 10074 E Estates Drive Staff Report A - Application 18.Subject: Application for Alcoholic Beverage License for Oren's Hummus Cupertino, LLC (dba Oren's Hummus Shop), 19419 Stevens Creek Boulevard #100 Recommended Action: Recommend approval to the California Department of Alcoholic Beverage Control of the Application for Alcoholic Beverage License for Oren's Hummus Cupertino, LLC (dba Oren's Hummus Shop), 19419 Stevens Creek Boulevard #100 Staff Report A - Application 19.Subject: 2016/17 Reconstruction of Curbs, Gutters and Sidewalks Project, Project No. 2017-01 Recommended Action: Authorize the City Manager to award and execute a contract with Spencon Construction, Inc., in the amount of $1,943,818 and approve a construction contingency of $56,182, for a total of $2,000,000 Staff Report A - Bid Summary B - Draft Contract SECOND READING OF ORDINANCES 20.Subject: Second Reading of an ordinance amending section 11.27.145 of the Cupertino Municipal Code relating to Designation of Preferential Parking Zone on Hammond Way Recommended Action: Conduct the second reading and enact Ordinance No. 16-2145: “An ordinance of the City Council of the City of Cupertino amending section 11.27.145 of the Cupertino Municipal Code relating to designation of preferential parking zones” on Hammond Way on Saturdays, Sundays and holidays between the hours of 7 a.m. and 4 p.m. Staff Report A - Permit Parking Map B - Draft Ordinance 21.Subject: Second Reading of an ordinance amending section 11.27.145 of the Cupertino Municipal Code relating to Designation of Preferential Parking Zone on Oak Valley Road, Juniper Court, Sycamore Drive and Black Oak Way Page 5 CITY OF CUPERTINO 5 August 2, 2016City Council AGENDA Recommended Action: Conduct the second reading and enact Ordinance No. 16-2146: “An ordinance of the City Council of the City of Cupertino amending section 11.27.145 of the Cupertino Municipal Code relating to designation of preferential parking zones” on Oak Valley Road, Juniper Court, Sycamore Drive and Black Oak Way on Saturdays, Sundays and holidays between the hours of 7 a.m. and 4 p.m. Staff Report A - Permit Parking Map B - Draft Ordinance PUBLIC HEARINGS ORDINANCES AND ACTION ITEMS 22.Subject: Cancel the Regular Meeting of December 6 and call a Special Meeting for December 8 to receive the Certification of Election results from the November 8 General Municipal Election and conduct the swearing-in ceremony Recommended Action: Cancel the Regular Meeting of December 6 and call a Special Meeting for December 8 to receive the Certification of Election results from the November 8 General Municipal Election and conduct the swearing-in ceremony Staff Report 23.Subject: First Reading of an ordinance amending section 11.27.145 of the Cupertino Municipal Code relating to Designation of Preferential Parking Zone on Canyon Oak Way Recommended Action: Conduct the first reading of Ordinance No. 16-2147: “An ordinance of the City Council of the City of Cupertino amending section 11.27.145 of the Cupertino Municipal Code relating to designation of preferential parking zones” on Canyon Oak Way on Saturdays, Sundays and holidays between the hours of 7 a.m. and 4 p.m. Staff Report A - Permit Parking Map B - Draft Ordinance 24.Subject: Propose amendments to the Policy and Procedures Manual for Administering Deed-Restricted Affordable Housing Units (the BMR Manual). The proposed changes clarify and expand procedures and requirements for (1) Section 2.2 on Conflict of Interest to exclude from purchase or rent of any BMR unit any City or consultant employees and officials who have policy-making authority or influence regarding City housing programs, participate in making decisions regarding City housing programs, administer City housing programs, or whose salary is paid in any part from a City housing program; and (2) Section 5.0 Page 6 CITY OF CUPERTINO 6 August 2, 2016City Council AGENDA on the Appeal Process to streamline the process and to ensure that an appeal can be concluded before a BMR unit is sold Recommended Action: Adopt Resolution No. 16-084 amending the Policy and Procedures Manual for Administering Deed-Restricted Affordable Housing Units (Below Market Rate (BMR) Manual) Staff Report A - Draft Resolution B - BMR Administrative Manual_revised clean C - BMR Manual_redline D - HC Resolution No 16-03-BMR Manual 25.Subject: Authorization to create a review procedure including guidelines and related Zoning ordinance amendment to allow for the creation of Single-Story Overlay District in the Single-Family Residential (R-1) Zones and a budget amendment. Recommended Action: Authorize: 1. Staff to develop a process for the review and processing of requests for Single-Story Overlay Districts in Single-Family Residential (R-1) Zones (including guidelines and related Zoning Ordinance amendment); and 2. Budget amendment for $10,000 Staff Report REPORTS BY COUNCIL AND STAFF 26.Subject: Report on Committee assignments and general comments Recommended Action: Report on Committee assignments and general comments ADJOURNMENT Page 7 CITY OF CUPERTINO 7 August 2, 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 8 CITY OF CUPERTINO 8 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1809 Name: Status:Type:Closed Session Agenda Ready File created:In control:6/14/2016 City Council On agenda:Final action:8/2/2016 Title:Subject: Conference with Legal Counsel- Existing litigation (Paragraph (1) of subdivision (d) of Gov’t Code Section 54956.9) Name of Case: Carlton v. City of Cupertino, et. al., Federal District Court, Case no. 5:14-CV-03178- RMW Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. Subject:Conference with Legal Counsel- Existing litigation (Paragraph (1) of subdivision (d) of Gov’t Code Section 54956.9) Name of Case:Carlton v. City of Cupertino, et. al.,Federal District Court, Case no. 5:14-CV- 03178-RMW CITY OF CUPERTINO Printed on 7/27/2016Page 1 of 1 powered by Legistar™9 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1756 Name: Status:Type:Closed Session Agenda Ready File created:In control:6/2/2016 City Council On agenda:Final action:8/2/2016 Title:Subject: Conference with Legal Counsel - Anticipated Litigation: Significant Exposure to litigation pursuant to paragraph (2) of subdivision (d) of Gov’t Code Section 54956.9 -[one case] Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. Subject:ConferencewithLegalCounsel-AnticipatedLitigation:SignificantExposureto litigationpursuanttoparagraph(2)ofsubdivision(d)ofGov’tCodeSection54956.9-[one case] CITY OF CUPERTINO Printed on 7/27/2016Page 1 of 1 powered by Legistar™10 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1803 Name: Status:Type:Study Session Agenda Ready File created:In control:6/13/2016 City Council On agenda:Final action:8/2/2016 Title:Subject: Update on Economic Development Strategic Plan Sponsors: Indexes: Code sections: Attachments:A - Draft Economic Development Strategic Plan Action ByDate Action ResultVer. City Council8/2/20161 Subject: Update on Economic Development Strategic Plan Receive update CITY OF CUPERTINO Printed on 7/27/2016Page 1 of 1 powered by Legistar™11 Economic Development Strategic Plan DRAFT July 26, 2016 prepared for: City of Cupertino 12 Draft Economic Development Strategic Plan | July 26, 2016 2 TABLE OF CONTENTS I. INTRODUCTION .............................................................................................................. 3 II. SUMMARY OF FINDINGS ............................................................................................... 4 Opportunities ................................................................................................................................... 4 Challenges ....................................................................................................................................... 5 Key Economic Development Issues ................................................................................................ 6 III. STRATEGIES AND ACTION ITEMS ............................................................................... 8 Issue A: Support Growth of Small and Mid-Size Businesses ........................................................ 10 Issue B: Retail Support and Development ..................................................................................... 18 Issue C: Place-making and Connectivity ....................................................................................... 28 Issue D: Hospitality ........................................................................................................................ 31 Issue E: Marketing ......................................................................................................................... 32 IV. APPENDIX: MATRIX OF STRATEGIES AND IMPLEMENTATION ACTIONS ............ 36 13 Draft Economic Development Strategic Plan | July 26, 2016 3 I. INTRODUCTION The City of Cupertino’s Economic Development Strategic Plan (EDSP) is a policy document that will to guide the City’s economic development activities over the next three to five years. The EDSP is framed around 11 strategies intended to strengthen existing businesses, foster a healthy economy, and maintain a healthy fiscal position. For each strategy, the EDSP identifies a range of specific action items for the City Council to consider. The strategies and action items are designed to strengthen the city’s existing competitive advantages for economic development, and take action to address disadvantages. The EDSP was developed after completing an analysis of demographic, economic, and real estate market trends, and receiving feedback from community members, business leaders and City Council. The community outreach process included the following components: • Community Forum on Local Businesses: In August 2015, the City of Cupertino hosted a Community Forum to engage community members about the Economic Development Strategic Plan. At the Forum, residents, business owners, City staff, and elected officials identified assets, opportunities, and potential challenges related to economic development in Cupertino.1 • Interviews and Stakeholder Outreach: Strategic Economics completed telephone interviews with local business leaders and real estate experts to collect information and solicit feedback, and presented initial findings to the Cupertino Chamber of Commerce Legislative Action Committee. • Economic Development Committee: Strategic Economics facilitated in-person meetings with the Cupertino Economic Development Committee, which consists of four City staff members, two City Council members and four representatives from the Cupertino Chamber of Commerce, to gather input regarding technical findings and strategies. • City Council Study Session: City staff and Strategic Economics presented the findings and strategies from the Background Report to the Cupertino City Council for feedback. The Background Report, completed in January 2016, provides the findings from the technical economic analysis and community outreach, and identifies the City’s competitive advantages, issues, and opportunities for economic development. This EDSP is organized into three sections: Following this Introduction, Section II presents a Summary of Findings from the Background Report, as well as the key economic development issues for the EDSP to address. Section III contains the Strategies and Action Items for implementing the EDSP. 1 The input from the Forum is summarized in the Background Report. 14 Draft Economic Development Strategic Plan | July 26, 2016 4 II. SUMMARY OF FINDINGS In order to provide a nuanced understanding of the City’s economic opportunities and challenges, Strategic Economics analyzed local and regional trends in employment and businesses; Cupertino’s fiscal position; the office sector; the retail sector; and the hotel sector. Strategic Economics also collected input from community members and stakeholders, including residents, business owners, City staff, and elected officials. The results of the technical analysis and the input from the community engagement are summarized in the Background Report. This section highlights the major opportunities and challenges related to economic development in Cupertino from the Background Report. OPPORTUNITIES Cupertino’s location in the region, high quality of life, highly educated workforce, and existing employment base position the city well to attract and retain businesses. These opportunities are described below. Location at the heart of Silicon Valley. Cupertino is located in western Santa Clara County, bordered by Sunnyvale, Santa Clara, San Jose, and Saratoga. The city’s location provides excellent access to Interstate 280, a freeway that is relatively less congested compared to other of the region’s freeways such as Highway 101. I-280 connects the city to highly skilled workers throughout the South Bay and to the Sand Hill Road Area, the hub of venture capital activity in the region. Highly educated workforce. Nearly 80 percent of adults aged 25 and above in Cupertino have a college degree, with 40 percent holding advanced degrees. Most residents are also employed in professional occupations. The city’s significant employment base attracts a net weekday inflow of 26,700 workers, who tend to be highly educated workers in professional occupations. Excellent quality of life and first-rate school district. Cupertino’s public schools have been recognized for their excellent quality both by the State of California and in the national media. The public school system and overall quality of life are very attractive for new households, especially families with children. Thriving technology sector. Cupertino has nine employers with 250 or more workers, of which five are in technology or biotechnology. These include Apple, Seagate, Pegasystems, and Trend Micro. Other firms seek to locate in Cupertino in order to do business with these large employers as a vendor, partner, or consultant, and to take advantage of the city’s location in the region. High concentration of small firms and start-ups. Cupertino’s strength in technology is not limited to large employers. Approximately 20 percent of the city’s small and midsized businesses (defined as those with fewer than 250 employees) are in the technology industry.2 Many of the small and midsize professional services firms – such as legal offices and consulting firms – support the technology sector, providing services to Apple and other technology firms. Compared to the South Bay as a whole, the city also has a very high concentration of very small firms (with one to four employees) in the professional and technical services industries. Cupertino is attractive for these small start-ups because of the highly skilled, entrepreneurial workforce that lives in the city and in neighboring communities. 2 The technology sector includes businesses from several different industries, including professional and technical services, transportation and distribution, and manufacturing. 15 Draft Economic Development Strategic Plan | July 26, 2016 5 Strong demographics to support retail investments. High household spending power, excellent freeway accessibility, growing employment, and the significant inflow of daily commuters create significant potential for retail in Cupertino and other West Valley communities. Cupertino has been able to capitalize on this potential by attracting newer retail investments, including 130,000 square feet in the Main Street project, as well as renovations of existing centers like Homestead Square and Cupertino Village. Healthy fiscal position. General fund revenues have grown steadily over the past several years as a result of economic growth and new real estate investments. Revenue sources that are directly tied to economic growth – including sales taxes, property taxes, and transient occupancy (hotel) taxes have grown steadily over the past several years as the economy has recovered and Cupertino has attracted new investment. Major development projects, such as Main Street and Apple Campus 2, have also generated significant one- time revenues from planning, zoning, engineering, permit processing fees, and other sources. Because of its strong fiscal position, the City has been able to maintain service levels at 2.80 to 3.01 full time equivalent (FTE) staff per thousand residents over the past ten years, even as Cupertino’s population grew significantly during that time period. CHALLENGES While Cupertino has many economic assets, residents, business owners, City staff, and elected officials have concerns related to Cupertino’s ability to recruit and retain an appropriate mix of businesses over time while also maintaining the city’s excellent quality of life. These challenges are discussed below. Highly competitive retail market. Cupertino has strong demographics for retail, and offers ample neighborhood shopping centers where residents can shop for groceries and other daily needs. However, since the downsizing of the Vallco shopping mall, residents generally travel to nearby large shopping centers like Westfield Valley Fair, Santana Row, and Stanford Shopping Center for dining and entertainment opportunities and to shop for clothing and other “specialty” goods. The presence of these large centers in close proximity poses a challenge for attracting similar types of national and regional retailers in Cupertino. Challenging environment for independent retailers. Cupertino’s strong economy has driven significant demand for retail space, resulting in low vacancies and high rents. As a result, small and independent retail businesses reportedly struggle to find affordable space in the city. There is also a concern that traditional retailers selling goods are being replaced with services (e.g., tutoring centers, day cares) that require more parking than some existing shopping centers can provide and may not generate the same level of sales tax revenues. Lack of affordable office spaces for growing, midsize firms. Compared to the South Bay, Cupertino has fewer businesses and employees in firms employing between 10 and 250 workers, and the number of businesses in this size range is declining, partly due to a lack of office space to accommodate them. Strong demand for office space, combined with competition from corporate users like Apple, results in scarce leasing opportunities in the 20,000 to 100,000 square foot range. Although larger spaces are also in short supply, 20,000 to 100,000 square feet spaces are in particularly high demand for growing companies such as midsize technology startups. As a result, many expanding midsize firms have opted to relocate in other nearby communities. 16 Draft Economic Development Strategic Plan | July 26, 2016 6 Lack of diversity in revenues for the City’s General Fund. In FY 2012-13, Apple contributed total revenues of $9.2 million, or approximately 18 percent of Cupertino’s General Fund budget.3 Most of the revenues that Apple generates come from sales, property, and utility user taxes. Overall, the opening of Apple Campus 2 is expected to increase Apple’s share of tax revenue. In addition to the direct tax revenues generated by Apple, the company indirectly generates tax revenues from its suppliers, consultants, and other vendors to the General Fund budget. At the same time, the decline of Vallco Shopping Mall, as well as the loss of major business-to-business sales tax producers (including Hewlett-Packard), have reduced other sources of sales tax revenues in Cupertino. Although the City has partially offset the decline in sales tax by renegotiating an existing sales tax rebate agreement with Apple, these trends have decreased the diversity of revenue sources for the City’s General Fund. Concerns about protecting Cupertino’s quality of life. According to the 2014 community survey, residents believe that the most important issues facing Cupertino are affordable housing (33 percent), traffic (21 percent), and controlling growth (17 percent).4 Many residents are also concerned about preserving the quality of the public school system as the community continues to grow and change. KEY ECONOMIC DEVELOPMENT ISSUES Based on Cupertino’s economic opportunities and challenges described above, there are five key issues defined in the EDSP for the City to prioritize over the next three to five years. These include: A. Supporting Growth of Small and Midsize Businesses: Cupertino is very attractive for start-ups and small companies. However, these businesses are often priced out of Cupertino as they grow due to high rents and a lack of available office space. Strategies to support the growth of small and mid-size businesses include facilitating the development of new office spaces in the range of 20,000 to 100,000 square feet; encouraging development of incubator spaces for start-ups in order to diversify the city’s industrial mix to include life sciences and other emerging technologies; expanding visitation and outreach to existing small and midsize firms; and providing technical assistance and resources. B. Retail Support and Development: Cupertino’s strong household spending power and growing employment base create significant demand for retail. However, while the city offers many neighborhood shopping centers, residents typically travel outside of the city for dining, entertainment, and specialty shopping opportunities. By working with property owners to upgrade aging shopping centers, supporting emerging restaurant, entertainment, and shopping clusters, and developing policies for regulating food trucks and other mobile services, the City can help foster thriving retail destinations that provide goods and services desired by community members. C. Place-Making and Connectivity: Excellent bicycle, pedestrian, and transit access is becoming increasingly important for economic development, as more companies consider transportation alternatives in making location decisions. Moreover, place-making and connectivity improvements contribute to a high quality of life and help mitigate the traffic impacts of new growth and development. Strategies including investing in public realm improvements on Stevens Creek Boulevard to support the implementation of the Heart of the City Specific Plan, and supporting local and regional investments that expand transit, pedestrian, and bicycle access to employment and activity centers in Cupertino. 3 This does not include one-time revenues from the construction of Apple Campus 2. The fiscal analysis related to Apple and presented here is from Keyser Marston Associates, “Economic and Fiscal Impacts Generated by Apple in Cupertino—Current Facilities and Apple Campus 2”, prepared for Apple Inc., 2013. 4 City of Cupertino – 2014 Community Satisfaction Survey, Godbe Research, 2014. 17 Draft Economic Development Strategic Plan | July 26, 2016 7 D. Hospitality: Cupertino’s growing technology sector drives strong demand for hotel rooms and conference spaces. While this results in significant hotel tax revenues for the City’s General Fund, business travelers often struggle to find rooms in or near Cupertino and local civic organizations have difficulty finding affordable space for meetings and events. By monitoring the need for additional hotel rooms and meeting space and entitling additional hotel development as appropriate, Cupertino can support diversification of the General Fund, and provide hotel rooms and event space to meet the needs of visitors, businesses, and civic organizations. E. Marketing: Cupertino is well known throughout the region – and the world – as the home of Apple, and the city is considered a highly prestigious business address second only to the North Valley cities of Palo Alto, Mountain View, and Menlo Park. Maintaining and expanding Cupertino’s reputation as an innovation center will help the city continue to attract a diverse range of businesses. The strategies, implementation actions, and potential partners to address each of these issues is described in the following section. 18 Draft Economic Development Strategic Plan | July 26, 2016 8 III. STRATEGIES AND ACTION ITEMS As discussed in Section II, the technical analysis and community engagement activities resulted in the identification of five key economic development issues for the EDSP to address. These key issues include: A. Supporting Growth of Small and Midsize Businesses B. Retail Support and Development C. Place-Making and Connectivity D. Hospitality E. Marketing For each of these five issues, the EDSP identifies specific strategies for the City to undertake over the next three to five years. The key issues and strategies to address them are summarized in Figure 1. The remainder of this section identifies implementation action items for addressing each of the key issues. Action items include continuing the City’s ongoing efforts to support economic development in Cupertino, as well as new action items that the City Council may choose to implement to advance economic development. All action items are classified into one of three categories based on the amount of additional staff time, legislative action, or budget required for implementation: • Category 1: Require small amounts of additional staff time in order to implement, but no major legislative action or budget allocations. • Category 2: Require significant staff time and/or legislative action by the City Council. • Category 3: Require additional budget allocation, as well as significant staff time and/or legislative action. The remainder of this chapter describes each potential implementation action item in more detail, and identifies the lead agency from the City as well as likely partners. A full matrix of all the economic development issues, strategies, and action items is presented in the appendix to this report. 19 Draft Economic Development Strategic Plan | July 26, 2016 9 Figure 1: Key Issues and Strategies for Economic Development Key Issues to Address Strategies A. Support Growth of Small and Midsize Businesses Provide physical spaces and business support to small and midsize businesses. 1. Facilitate the development of new office and industrial/flex space for small and midsize companies to expand in Cupertino. 2. Support development of business incubator, accelerator, coworking, shared, and “on-demand” workplaces 3. Continue and strengthen visiting and outreach programs for small and midsize businesses (fewer than 250 employees). 4. Develop a cohesive business support network offering technical assistance and access to financing, with a focus on enabling growing businesses to stay in Cupertino. B. Retail Support and Development Foster thriving retail destinations that provide goods and services desired by community members. 5. Work with retail property owners and tenants to revitalize and upgrade aging shopping centers on Stevens Creek Boulevard. 6. Support emerging restaurant, entertainment, and shopping clusters that serve as destinations for workers, residents, and visitors. 7. Develop policies for regulating food trucks and other mobile services, including the types of mobile services that are permitted, the locations and times when they may operate, and measures for mitigating environmental, traffic, and other impacts. C. Place-Making and Connectivity Invest in infrastructure improvements that support economic development and mitigate the traffic impacts of new growth. 8. Invest in public realm improvements to support the development of the City’s commercial/retail and mixed-use areas as pedestrian-oriented corridors that serve as welcoming gateways to Cupertino and provide a variety of community gathering spaces. 9. Support local and regional transportation improvements that improve transit, pedestrian and bicycle connections to employment and activity centers in Cupertino. D. Hospitality Support diversification of the City's General Fund, and provide hotel rooms and event space to meet the needs of visitors, businesses, and civic organizations. 10. Provide adequate hotel rooms and event venues to support the City's General Fund and meet business needs. E. Marketing Maintain and expand Cupertino’s reputation as an innovation center. 11. Develop an integrated approach to marketing Cupertino to brokers, business owners, and others as a center for innovation and the heart of Silicon Valley. 20 Draft Economic Development Strategic Plan | July 26, 2016 10 ISSUE A: SUPPORT GROWTH OF SMALL AND MID-SIZE BUSINESSES STRATEGY 1 Facilitate the development of new office and industrial/flex space for small and midsize companies to expand in Cupertino. Cupertino is highly attractive for start-ups and small companies. However, a very tight market for office space, combined with the high share of office space occupied by Apple, results in scarce leasing opportunities in the 20,000 to 100,000 square foot range. As a result, many expanding midsize firms have opted to relocate in other nearby communities. In the long term, retaining these growing companies will require providing office space to meet their needs. Ongoing City Efforts • Create opportunities for small office users by encouraging developers to reserve space for small offices. For example, the City negotiated an agreement with Sand Hill Property Company to reserve space for small office users in the Main Street project. These would range from 3,000- 10,000 square feet and would include small business ventures, co-working spaces, etc. Category 2 Actions • Increase allocation for office development for mid-size businesses in the 20,000-100,000 sq. ft. range. The City lacks office space in the 20,000 to 100,000 square foot range that can accommodate growing companies and midsize startups. o Lead Agency: Planning • Create a new development allocation category for Innovation Space. This allocation would provide for the development of new laboratory and R&D space for businesses in the greentech, biosciences, life sciences, and other creative industries. o Lead Agency: Planning • Consider establishing a new “Innovation District” in the Bubb Road and/or Bandley Drive/Valley Green Drive areas. By formally designating some of the less intensive, Light Industrial areas in the City as “Innovation Districts,” the City could encourage and incentivize the reuse and rebuilding of existing buildings to create spaces appropriate for small to midsize businesses in sectors such as greentech, biosciences, life sciences, and other creative industries. For example, the designation could apply to the Bubb Road area (roughly bounded by Stevens Creek Boulevard on the north, McClellan Road on the south, Highway 85 on the east, and Imperial Avenue on the west) and/or the Light Industrial properties located on the west side of Bandley Drive and north of Valley Green Drive. The City could support the Innovation Districts with a coordinated branding and marketing strategy, and explore incentives (such as development allocations for innovation space) to encourage property owners to dedicate new and existing space to greentech, biosciences, and other innovation uses. The new ”Innovation District” would also require or incentivize street improvements and transportation demand management measures aimed at encouraging walking and bicycling and mitigating the traffic impacts of new businesses, as well as the provision of other uses that would serve the district (food uses, etc). 21 Draft Economic Development Strategic Plan | July 26, 2016 11 o Lead Agency: Planning • Review and update land uses in the zoning designations related to Office and Industrial uses to ensure that they are adaptable to current and future business needs. Some of the uses in the existing zone code are outdated and do not reflect current industry needs. The code should be revisited to better align with current and emerging space needs, and to more clearly state the types of uses (such as biosciences, greentech, etc.) that the City envisions for different locations within Cupertino. o Lead Agency: Planning • Allow for the conversion of underutilized ground floor retail space to office space. In underperforming shopping centers, allow for spaces to be occupied by smaller office users, providing that there is sufficient parking and infrastructure to support office uses. Note that this may require a zoning change in some locations, such as in the Heart of the City Specific Plan area. o Lead Agency: Planning STRATEGY 2 Support development of business incubator, accelerator, co-working, shared, and "on-demand" workplaces. Co-working, shared, and on-demand spaces provide flexible office space where entrepreneurs, freelancers, or other individuals can rent a desk at a relatively low cost. Examples include WeWork and NextSpace (see text box below). Start-up accelerators or incubators provide mentorship, training, and sometimes investment capital and/or low-cost space for emerging tech companies, often in exchange for a small amount of equity. While some start-up accelerators have proven highly profitable,5 co-working businesses typically operate on a thin profit margin,6 and some incubators that provide low-cost space for start-ups have required public subsidy.7 For example, the San Jose BioCube was originally funded by the San Jose Redevelopment Agency (see text box below). Cupertino already has at least one co-working space: Pacific Workplaces, an 18,000 square foot location on Stevens Creek Boulevard that provides flexible co-working spaces for approximately 300 small businesses. By supporting these types of flexible workspaces, the City can continue to nurture Cupertino’s existing ecosystem of start-ups and help grow the next generation of innovative businesses. Category 2 Actions: • Allow for the conversion of underutilized ground floor retail space to incubator or co-working uses. There are a number of underutilized retail sites (such as second-floor retail space and spaces 5 Tomio Green, “Top Startup Incubators and Accelerators: Y Combinator Tops with $7.8 Million in Value,” Forbes, April 30, 2012, http://www.forbes.com/sites/tomiogeron/2012/04/30/top-tech-incubators-as-ranked-by-forbes-y- combinator-tops-with-7-billion-in-value/. 6 DeskMag, “The 2nd Global Coworking Survey: How Profitable Are Coworking Spaces?” http://www.deskmag.com/en/how-profitable-are-coworking-spaces-177. 7 Diana Samuels, “Silicon Valley Incubators Feel the Pain of Redevelopment’s Demise,” Silicon Valley/San Jose Business Journal, July 13, 2012, http://www.bizjournals.com/sanjose/print-edition/2012/07/13/silicon-valley- incubators-feel-the.html?page=all. 22 Draft Economic Development Strategic Plan | July 26, 2016 12 located to the side or rear of a property) that could be converted to smaller co-working spaces or incubators. Note that the conversion of some existing retail buildings may require property owners to make investments in infrastructure or building improvements to serve such businesses. o Lead Agency: Planning Category 3 Actions: • Seek out partnerships for developing a new small business incubator or accelerator, and consider contributing City funds if needed. The City may explore potential partners like DeAnza Community College, the Santa Clara County Library District, other nearby universities, colleges, or other organizations, to operate a small incubator or accelerator. The City may contribute funding to support the incubator spaces, either by directly subsidizing its operations or by encouraging private developers to provide low-cost spaces for this type of use as part of a community benefits process for approving large commercial projects (see discussion under Strategy 1). o Lead Agency: Economic Development o Potential Partners: DeAnza Community College, Santa Clara County Library District Case Study: WeWork and NextSpace WeWork and NextSpace are privately-funded providers of co-working spaces with national and international locations. WeWork currently has about six locations in San Francisco and one in San Jose, while NextSpace has five Bay Area locations. Membership with these spaces can take many forms and could include: occasional access, day passes, long term passes to common workspaces, dedicated workstations and offices, and conference rooms. Typically, these co-working spaces tout the benefits of connecting with other innovators and creative enterprises as a key value proposition of membership. Case Study: San Jose BioCube The San Jose BioCube is a business incubator providing facilities for life science, nanotech, and cleantech startup companies. These facilities include office space, laboratory facilities, and business support services to a variety of startups who can either locate directly onsite or utilize BioCube’s facilities on a pro-rated basis. Originally called the San Jose BioCenter, it was created in 2004 under the San Jose Bioscience initiative sponsored by the San Jose Redevelopment Agency. Although public funding was phased out with the agency’s dissolution 2012, the facility was able to survive with the assistance of private investment and a name change to the “BioCube.” In 2014 the BioCube became 100 percent self-sufficient. Sources: wework.com; nextspace.com; San Jose BioCube website (http://www.sanjosebiocube.com); “Silicon Valley incubators feel the pain of redevelopment’s demise”, Silicon Valley Business Journal, 2012 (http://www.bizjournals.com/sanjose/print-edition/2012/07/13/silicon-valley-incubators-feel-the.html); “San Jose BioCube Creates Self-Sustaining Biotech Dream”, PRWeb, 2013 (http://www.prweb.com/releases/2013/5/prweb10716857.htm). 23 Draft Economic Development Strategic Plan | July 26, 2016 13 STRATEGY 3 Continue and strengthen visitation and outreach programs for small and midsize businesses (fewer than 250 employees). The Economic Development Division of Cupertino’s Community Development Department already conducts a robust program of business outreach aimed at providing new and growing businesses with information about doing business in Cupertino (see “Ongoing City Efforts” described below). The City’s business outreach program could be expanded and refined to focus on retaining small and midsize businesses, especially those that are at risk of moving out of the City as they grow. Fostering a diverse range of firms will help build a resilient business ecosystem that can better withstand future changes in broader economic conditions. Ongoing City Efforts: • Conduct outreach to existing businesses, including regularly visiting local businesses to discuss programs, events, and/or incentives that may be of interest. Economic Development staff visit local businesses and attend meetings of the Chamber of Commerce and other local organizations to provide information on business resources offered by the City and partner organizations (such as the Silicon Valley Economic Development Alliance and the Silicon Valley Small Business Development Center). o Lead Agency: Economic Development • Distribute and regularly update “How to Start Your Business in Cupertino” booklet. The “How to Start Your Business in Cupertino” booklet is published by the Economic Development Division and provides step-by-step instructions and informational links for developing a business plan, selecting a location, applying for permits and licenses, and accessing incentives. o Lead Agency: Economic Development • Continue to host the annual Small Business Symposium. The City of Cupertino and the Cupertino Chamber of Commerce co-host an Annual Small Business Symposium that provides workshops covering essential topics for those wanting to start a new business or who are ready to grow their existing businesses. In past years, workshop topics have included marketing and social media, accessing capital, legal issues, and green business practices. o Lead Agency: Economic Development o Partners: Cupertino Chamber of Commerce, Cupertino Library Category 1 Actions: • Provide assistance to new and expanding businesses with obtaining needed permits and licenses from the City and other agencies. The Planning and Economic Development Divisions could work together to explore a “concierge” service that would assign specific staff members to work closely with high-priority applicants, including providing a single point of contact to expedite the City permitting and licensing process. Staff could also assist businesses in receiving permits from other agencies. o Lead Agencies: Planning and Economic Development • Identify growing, small and midsize companies that are at risk of moving out of Cupertino as they expand, and focus existing business retention efforts on these companies. Economic development staff could identify growing companies that are at risk of leaving the City in order to 24 Draft Economic Development Strategic Plan | July 26, 2016 14 expand, and help connect them with resources such as those offered by the Silicon Valley Economic Development Alliance and the Silicon Valley Small Business Development Center. o Lead Agency: Economic Development • Work with local brokers to match growing companies to space in Cupertino. Finding office space in Cupertino is a significant barrier for many companies that wish to grow in the City. Building on existing relationships with brokers, Economic Development staff can help provide information on office space vacancies to small and midsize businesses that have been identified as being at risk of leaving the City. o Lead Agency: Economic Development • Conduct an online survey of existing businesses to determine key advantages and disadvantages of doing business in Cupertino. This survey could be conducted on a regular (e.g., annual basis) help evaluate existing City services and programs, and help identify challenges or gaps in the resources available to local businesses. o Lead Agency: Economic Development Category 2 Actions: • Conduct regular outreach to growing small and midsize businesses to determine what services would help them expand in Cupertino, including individual visits, roundtables or focus groups, and citywide events. These visits, roundtables, or events could focus on key audiences (such as growing midsize companies) or important topics identified in the online survey (described under Category 1 Actions). Regular, formal discussions with businesses could inform the City’s future business outreach and retention efforts. o Lead Agency: Economic Development STRATEGY 4 Develop a cohesive business support network offering technical assistance and access to financing, with a focus on enabling growing businesses to stay in Cupertino. Cupertino staff maintain excellent relationships with local and regional business organizations that provide technical assistance to businesses, and regularly refers local businesses to those technical service providers. There may be opportunities to build on these relationships to expand the range of services and resources available to Cupertino businesses, or for the City to provide services directly to businesses. Ongoing City Efforts: • Meet regularly with local and regional business organizations and technical assistance providers to build partnerships. Economic Development staff regularly attend meetings held by the Cupertino Chamber of Commerce (including the Chamber’s Legislative Action Committee and the Asian American Business Council), the Silicon Valley Economic Development Alliance, CREW Silicon Valley (a commercial real estate professional organization), and the Rotary Club of Cupertino. o Lead Agency: Economic Development 25 Draft Economic Development Strategic Plan | July 26, 2016 15 o Partners: Cupertino Chamber of Commerce, Silicon Valley Economic Development Alliance, CREW Silicon Valley, Rotary Club of Cupertino • Continue to hold quarterly meetings with Economic Development Committee. The Committee consists of four City staff members, two City Council members and four representatives from the Cupertino Chamber of Commerce. The Committee’s activities are targeted at enhancing the Cupertino business environment, developing business and community relationships, working with existing business to identify and eliminate any barriers to retention or redevelopment, recruiting compatible businesses to the City, and supporting a strong local economy and fiscal base to enable to the City to provide excellent municipal services. o Lead Agency: Economic Development Category 1 Actions: • Explore additional opportunities to connect small businesses with existing micro-credit providers or other small business lenders. For example, the Silicon Valley Small Business Development Corporation in San Jose offers workshops and individual business counseling on access to capital, including bank finance, Small Business Administration (SBA) loans, and venture capital. o Lead Agency: Economic Development o Partners: Silicon Valley Small Business Development Corporation, Small Business Administration, Silicon Valley Talent Partnership Category 2 Actions: • Partner with technology programs at De Anza College and/or local high schools to offer assistance to Cupertino businesses, such as support in building websites and applications. For example, students in De Anza College’s Computer Information Systems (CIS) department could help local retailers and other businesses create websites, launch social media advertising campaigns, etc. o Lead Agency: Economic Development o Partners: De Anza College, local high schools • Establish the City of Cupertino as a Kiva Zip trustee to find and endorse local businesses seeking to borrow money on the Kiva Zip website. Kiva Zip is a microfinancing platform that connects entrepreneurial borrowers with individuals interested in supporting small businesses. A Kiva Zip “trustee,” which can be a City or other organization, recommends borrowers for a loan based on the borrower’s qualifications and local knowledge. The trustee can support borrowers in other ways but does not have any fiduciary responsibility for the loan. Trustees take on no direct financial risks, but their reputation is based on the repayment of the loans that they endorse. See the text box below for an example of the City of Oakland’s KivaZip Trustee Program. o Lead Agency: Economic Development o Partners: Kiva Zip Category 3 Actions: • Contract with business assistance providers to provide targeted services to Cupertino businesses, or hire staff and provide services in-house. Rather than referring businesses to the Silicon Valley Small Business Development Corporation or other business technical assistance 26 Draft Economic Development Strategic Plan | July 26, 2016 16 organizations, the City could contract directly with providers to offer services in Cupertino, and/or hire additional Economic Development staff with the capacity to provide training, counseling, and other services in-house. This could include working with Small Business Development Centers of Northern California to sponsor a local office (see text box below for more information). o Lead Agency: Economic Development o Partners: Small Business Development Centers of Northern California • Provide seed capital to start a revolving loan fund to provide small loans for small and midsize businesses in Cupertino for business expansion and other business needs. Revolving loan funds provide financing for small businesses that are meet local goals (such as creating local employment opportunities) and are creditworthy, but do otherwise do not qualify for bank loans. See the text below for an example sponsored by the City of Berkeley. o Lead Agency: Economic Development 27 Draft Economic Development Strategic Plan | July 26, 2016 17 Case Study: City of Oakland’s Kiva Zip Trustee Program Kiva Zip is a microfinancing platform that connects entrepreneurial borrowers with individuals interested in supporting small businesses in the U.S. A Kiva Zip “trustee,” which can be an entire organization, recommends borrowers for a loan based on the borrower’s qualifications and local knowledge. The trustee can support borrowers in other ways but does not have any fiduciary responsibility for the loan. Trustees take on no direct financial risks, but their reputation is based on the repayment of the loans that they endorse. In 2013, the City of Oakland became the first city government to serve as a Kiva Zip trustee. Since that time, the City has endorsed 33 loans for a total value of approximately $235,000, and a repayment rate of 87 percent. The City uses billboard advertising to promote the program, which supports locally owned businesses, often in food service. Case Study: Berkeley Revolving Loan Fund The Berkeley Revolving Loan Fund is a source of financing for small businesses that otherwise do not qualify for bank loans. Borrowers still need to be creditworthy and satisfy other criteria, such as demonstrating that their business creates local employment opportunities. The fund was started in 1984 with a grant from the federal Economic Development Administration, and the program was adjusted in 2011 to require an application fee and to cap the size of the loan. The loans, which today are available for up to $35,000 and for a term of up to seven years, can be used for business expansion, purchase of fixed assets, tenant improvements, and real estate. As of 2015, the program had lent nearly $1.6 million to 38 borrowers since inception, and current borrowers include a high-end tent manufacturer, a reseller of biofuels, and a cooking school. Sources: Kiva Zip (https://zip.kiva.org/trustees/573 ); Oakland Local, “Kiva Zip Loans Fuels Oakland Small Business Community”, 2015 (http://oaklandlocal.com/2015/05/kiva-zip-loans-fuels-oakland-small-business-community/); City of Berkeley Office of Economic Development (http://www.ci.berkeley.ca.us/loanfund/); City of Berkeley, Economic Dashboard, 2015. Advertising for Oakland’s Kiva Zip program on a local bus shelter Image: Strategic Economics 28 Draft Economic Development Strategic Plan | July 26, 2016 18 ISSUE B: RETAIL SUPPORT AND DEVELOPMENT STRATEGY 5 Work with retail property owners and tenants to revitalize and upgrade aging shopping centers on Stevens Creek Boulevard. The Cupertino General Plan identifies the Stevens Creek corridor as the “Heart of the City” – the key mixed- use area that functions as Cupertino’s downtown. The General Plan and the Heart of the City Specific Plan (discussed in more detail below, under Strategy 8) envision an improved corridor that provides a greater sense of place, more community identity, and a memorable experience for residents, workers and visitors. The qualities of successful pedestrian-oriented retail districts are explained in more detail in the text box on the following page. One key part of implementing this vision is revitalizing and upgrading aging shopping centers on the corridor. While the smaller, strip shopping centers on Stevens Creek Boulevard have generally been successful at attracting new tenants, many have not been upgraded in years. In particular, the eastern segment of Stevens Creek Boulevard – extending from North De Anza Boulevard to the city border – is characterized by relatively small, shallow lots with limited visibility, parking constraints, and relatively underperforming retailers. Programs and policies that incentivize property owners and businesses to reinvest in aging shopping centers will help support continued, successful retail activity on the corridor, and contribute to upgrading the look and feel of Stevens Creek to create a welcoming gateway into Cupertino. Case Study: Small Business Development Centers of Northern California The Small Business Development Centers of Northern California are a network of business assistance offices whose services include educational a nd training seminars and counseling at low- or no-cost. The NorCal network is operated out of CSU Humboldt, and the network is funded by the Small Business Administration, with satellite offices typically at the county level. The Silicon Valley SBDC, in downtown San Jose, is the satellite office serving Santa Clara County. NorCal SBDC also has a handful of strategic initiatives with services tailored to particular industry sectors, including technology, procurement, international trade, and green business. For example, the “Tech Futures Group”, with an office in Berkeley, advises tech startups and growing firms with advisors that have expertise navigating the particular issues confronted by high growth technology firms, such as intellectual property strategy and venture capital fundraising. Sources: Small Business Development Centers of Northern California (http://www.norcalsbdc.org); The Tech Futures Group (http://www.techfuturesgroup.org). 29 Draft Economic Development Strategic Plan | July 26, 2016 19 Characteristics of Successful Pedestrian-Oriented Retail Districts At the August 2015 Community Forum on Local Businesses, Cupertino residents cited Burlingame Avenue (Downtown Burlingame), Castro Street (Downtown Mountain View), Downtown Los Gatos, and Downtown Campbell as examples of attractive destinations for dining, shopping, and entertainment. These districts share some common elements that contribute to their success: •Concentration of retail within a convenient walking distance: A critical mass of retail and services within a comfortable walking distance enables visitors to park once and walk to their destination, or browse shopping and dining options on foot. Successful pedestrian-oriented retail districts are often quite compact. For example, the majority of activity on Burlingame Avenue is concentrated within a quarter-mile section of the street, or about a five-minute walking distance from end to end. •Pedestrian-friendly atmosphere: Burlingame Avenue, Castro Street, Downtown Los Gatos, and Downtown Campbell all have wide sidewalks and attractive street trees, lighting, and other furniture. The storefronts are active, and many restaurants have invested in attractive outdoor dining. •High concentration of restaurants: In these successful retail districts, about one- quarter to one-third of businesses are restaurants or food stores. •Comprehensive parking management strategies: Mountain View and Los Gatos provide ample visitor parking in public lots and garages located within walking distance of downtown shops and restaurants, while restricting long-term parking in surrounding residential neighborhoods. •Active merchants’ associations: Downtown Burlingame, Downtown Mountain View, and Downtown Campbell all have active merchants’ associations that partner with the cities in sponsoring marketing, community events, and other activities. Downtown Burlingame Image: Strategic Economics Downtown Mountain View Image: Strategic Economics Downtown Los Gatos Image: City of Los Gatos 30 Draft Economic Development Strategic Plan | July 26, 2016 20 Category 2 Actions: • Provide incentives in key locations for upgrading or intensifying existing retail and/or replacing retail with mixed-use development. Some small parcels with existing retail centers may not be able to accommodate sufficient parking to meet current code requirements, limiting the property owner’s ability to upgrade, replace the existing retail space, or redevelop with higher- intensity retail or mixed-use project. Providing some flexibility on parking requirements for these properties, allowing for mixed-use development, and/or providing incentives such as increased heights or densities on challenging parcels, could encourage property owners to invest in major improvements or redevelop aging retail buildings. o Lead Agency: Planning o Partners: Retail Property Owners, Developers • Develop design standards for retail space in mixed-use developments to ensure that new retail space contributes to the desired look and feel of the community, and functions well for retailers. Some mixed-use projects struggle to lease ground floor retail space in part due to the limited visibility from the street, lack of signage, poor vehicle and pedestrian access, low ceiling heights, and/or lack of specific requirements such as adequate ventilation for restaurant cooking. Providing guidelines on appropriate design could help ensure the success of future ground floor retail space. While the Heart of the City Specific Plan includes design guidelines for building exteriors, the plan does not provide specific standards for ground floor retail. o Lead Agency: Planning o Partners: Retail Property Owners, Developers • Conduct outreach to Stevens Creek property and business owners to explore the potential to form a Business Improvement District (BID) or Property-Based Business Improvement District (PBID) on all or part of the Stevens Creek corridor, to fund marketing, landscaping, maintenance, and/or other local needs. BIDs and PBIDs are a type of special assessment district in which business or commercial property owners vote to be assessed a fee to fund programs and projects within the business area. Typically, a BID or PBID provides resources to develop marketing campaigns, increase lobbying efforts, secure additional funding, and invest in public improvements and beautification projects in partnership with a city. By pooling private resources, business owners in BIDs collectively pay for activities that they could not afford on an individual basis. A BID or PBID on Stevens Creek Boulevard (or on some segment of the corridor) could pay for these types of activities, potentially including some of the landscaping and other streetscape improvements identified in the Heart of the City Specific Plan (see discussion under Strategy 8, below). o Lead Agencies: Planning and Economic Development o Partners: Stevens Creek Business Owners and/or Property Owners Category 3 Actions: • Provide grants or loans to retail property owners and/or tenants to encourage them to upgrade their façades. Façade improvement programs provide matching grants or loans to incentivize retail property owners and/or tenants to invest in improvements to the exterior of their buildings. Typical improvements include new paint, installation or replacement of signs or awnings, and refurbishments to non-structural architectural features (e.g., trim, cornices, windows, etc.). In order to receive a grant or loan, applicants must meet certain criteria such as contributing a matching amount of money to the project, complying with local design guidelines, and receiving 31 Draft Economic Development Strategic Plan | July 26, 2016 21 all necessary city permits. In addition to providing funding, some programs also provide design assistance to ensure that façade improvements meet city standards. Façade improvement programs are often targeted to a particular district, such as a downtown or major retail corridor. In Cupertino, this type of program could be targeted to Stevens Creek Boulevard to help achieve the goals of the Heart of the City Specific Plan. Prior to 2011, most façade improvement programs in California were funded by redevelopment agencies. Since the dissolution of redevelopment in 2011, however, some cities have managed to find other funding sources, including Santa Cruz and Dublin (profiles in the text box below). o Lead Agencies: Planning and Economic Development o Partners: Property Owners, Retail Businesses 32 Draft Economic Development Strategic Plan | July 26, 2016 22 Case Study: City of Santa Cruz Façade Improvement Program Since 1994, the City of Santa Cruz has offered grants for façade improvements to its retail businesses, with over 100 grants disbursed since the program’s inception benefitting more than 260 small business establishments. Any ground floor retail business (or commercial property containing such a business) can apply for a grant, as long as each storefront benefiting from improvements has at least three years remaining on its lease. While the program prioritizes painting entire buildings, improving public safety lighting, and anti-graffiti measures, signs, awnings, and landscaping can also be funded as part of an overall façade improvement project. Grants are available for up to $10,000 for the entire project, and up to $5,000 matching grant per storefront. Up to $1,000 is provided for a City-selected designer. The grant program is paid for with the City’s General Fund. Case Study: City of Dublin Sales Tax Reimbursement Program. Enacted in 2009, the Sales Tax Reimbursement Program in the City of Dublin reimburses up to fifty percent of the net new sales tax paid to the city after eligible physical improvements have been made to retail businesses. Participants generating between $100,000 and $500,000 in net new annual sales tax revenue are eligible for annual reimbursements over five years, up to the total costs of improvements. Participants generating over $500,000 are eligible for annual reimbursements over ten years. Costs covered by the program include exterior improvements, interior tenant improvements, and site improvements such as parking and landscaping. A participant in the program ordinarily needs to be a business newly locating in Dublin, not an existing business. Sources: Economic Development and Redevelopment Department, City of Santa Cruz http://cityofsantacruz.com/departments/economic-development/business-support/facade-improvement-program; “Grant puts new face on riot-damaged business; City's Facade Improvement Program has helped 240 other sites”, Santa Cruz Sentinel, 2010 http://www.santacruzsentinel.com/article/ZZ/20100616/NEWS/100618140; City of Dublin, http://www.dublinca.gov/1672/City-Incentives. Santa Cruz Façade Improvement Program Brochure Image: Economic Development and Redevelopment Department, City of Santa Cruz. 33 Draft Economic Development Strategic Plan | July 26, 2016 23 STRATEGY 6 Support emerging restaurant, entertainment, and shopping clusters that serve as destinations for workers, residents, and visitors. Because retail sales taxes are a major contributor to the General Fund, a thriving retail market is important to the City’s fiscal health. Retail nodes that offer a diverse range of shopping, dining, and entertainment options can also serve as community gathering places for residents and workers, and help attract new visitors to the city. Vallco Shopping Mall used to fill this role in Cupertino, and may do so once again when it is eventually redeveloped (however, Vallco Shopping Mall is subject to a separate Specific Plan process, and is therefore outside the focus of this Economic Development Strategic Plan). The new Main Street project also provides some new retail and community space. In addition to continue to monitor the success of these larger projects, the City can also help support smaller retail and community gathering nodes throughout Cupertino. Ongoing City Efforts: • Meet regularly with retail and commercial brokers to answer questions, build relationships, and get updates on projects. Economic development staff maintain excellent relationships with retail and commercial brokers who are active in the Cupertino real estate market. o Lead Agency: Economic Development • Represent the City at ICSC and other local and regional conferences. Economic Development staff regularly attend conferences held by the International Council of Shopping Centers (ICSC) and other local and regional retail recruiting events to market Cupertino to retailers. o Lead Agency: Economic Development • Maintain “Eats 95014” app/website and “Cupertino at a Glance” website. “Eats 95014” is a local restaurant app that showcases Cupertino dining and food opportunities including restaurants, grocery stores, the farmer's market, and vineyards. The app provides information on store hours, parking information, noise level, directions, and links to websites. Users can search and sort restaurants by type of cuisine and services offered. The “Cupertino at a Glance” website provides a map with business information and website links for Cupertino’s cultural, civic, recreational, and dining facilities. o Lead Agencies: Economic Development, Communications Category 1 Actions: • Work with brokers and retail site selection professionals to market Cupertino to desired tenants, such as high-end restaurants and comparison retailers, and match retailers with appropriate sites in Cupertino. Cupertino should continue communicating with brokers and site selection professionals to inform them of the types of retail that are desired by the community, and to match businesses to existing properties. o Lead Agency: Economic Development o Partners: Retail Brokers, Property Owners, Retail Businesses 34 Draft Economic Development Strategic Plan | July 26, 2016 24 Category 2 Actions: • Create a marketing campaign to increase awareness of local retailers and service providers among workers employed at Cupertino businesses. The City can develop a new campaign to inform workers in Cupertino about the range of restaurants, retailers, and personal service providers available in the city in order to encourage them to shop and dine locally and support small businesses. Examples of promotional materials could include a mobile app featuring local businesses, printed posters, and a new website. o Lead Agency: Economic Development o Partners: Major Employers, Local Retail Businesses • Seek out social media partnerships to promote shopping local. There are many examples of cities partnering with private companies such as Yelp and American Express to promote local shopping events that could be models for Cupertino (see text box examples, below). o Lead Agency: Economic Development STRATEGY 7 Develop policies for regulating food trucks and other mobile services, including the types of mobile services that are permitted, the locations and times when they may operate, and measures for mitigating environmental, traffic, and other impacts. Mobile services include food trucks, mobile auto care services, mobile dry cleaning, and any other goods and services offered from a vehicle. These services create an opportunity to fill existing gaps in services, stimulate economic activity, and activate underutilized spaces with events and programming. In Silicon Valley, many major corporations regularly host mobile vendors on campus in order to provide convenient services for workers. However, the increasing popularity of mobile services has also raised concerns in Case Study: Yelp Shop Local Pledge In 2012, Yelp created a program to encourage users to shop at independent retailers in their local areas for the holiday season. Users were asked to pledge to shop locally. For participants in the South Bay/Peninsula area, Yelp sponsored several events to promote independent retailers, such as happy hours and pop up events. Case Study: American Express Shop Small and Small Business Saturday Shop Small is a program sponsored by American Express to promote small businesses. Participants in the free program can get personalized marketing materials and other assistance promoting their businesses through the platform as well as a listing on the Shop Small Map. “Neighborhood Champions” are local business associations, chambers of commerce, or other community organizers that organize events to promote Small Business Saturday, the first Saturday after the Thanksgiving holiday. In the past, American Express has offered credits for purchases made on that day. Sources: Yelp Official Blog, 2012, https://www.yelpblog.com/2012/12/get-your-local-shop-on-with-yelp-this-holiday- season; American Express Shop Small, https://www.americanexpress.com/us/small-business/shop-small/. 35 Draft Economic Development Strategic Plan | July 26, 2016 25 many communities about public safety, sanitation, traffic, and competition with existing brick-and-mortar businesses. Many California cities are revisiting their regulatory framework to ensure that mobile services can continue to provide needed goods and services without detracting from local businesses or the community’s quality of life. Ongoing City Efforts: • Issue limited special events permits for food truck events, and require mobile service vendors to apply for a Cupertino business license in order to operate in the City. Currently, Cupertino companies or other organizations can apply for up to four special events permits per year to host food truck or other mobile services events. Food trucks are required to obtain a Cupertino business license in order to operate in the City. o Lead Agencies: Planning, Economic Development • Support the weekly Off the Grid food truck festival in the Whole Foods parking lot. Off the Grid Cupertino is held every Tuesday evening in the Whole Foods parking lot on Stevens Creek Boulevard and features a rotating assortment of food trucks. o Lead Agencies: Planning, Economic Development Category 1 Actions: • Work with Chamber of Commerce to reach out to mobile service vendors, ensure that they aware of existing local and state laws and regulations, and involve them in Chamber activities. Currently, mobile service vendors receive information about joining the Cupertino Chamber of Commerce when they apply to receive a business license. Planning and Economic Development staff could partner with Chamber staff to conduct additional, proactive outreach at Off the Grid and other mobile service events, in order to inform vendors about opportunities to participate in Chamber activities and ensure that businesses are aware of local and state laws and regulations. o Lead Agencies: Planning and Economic Development o Partners: Chamber of Commerce Category 2 Actions: • Conduct outreach to Cupertino residents and the local business community on appropriate locations and regulations for mobile services. Brick-and-mortar business owners sometimes perceive mobile vendors as having an unfair advantage because they do not pay rent or property taxes, and in some instances may avoid paying sales tax as well. Regulating the number of food trucks that can gather in a particular site or district may help address retailers’ concerns about impacts on local businesses, in addition to addressing traffic and safety issues. Economic development programs that seek to activate underutilized areas or attract more street activity (such as the Fremont Street Eats program described in the text box below) can also help brick-and-mortar retailers recognize an advantage to allowing food trucks or other mobile services to locate nearby. By conducting outreach to concerned business owners and residents, the City can help educate stakeholders about the potential impacts of food trucks, and determine what types of policies or regulations might be best suited for Cupertino. o Lead Agencies: Planning and Economic Development o Partners: Retail Businesses, Residents, Mobile Food Vendors • Develop policies to allow and manage mobile service vendors, which may include a new licensing and/or permitting process. Policies should be tailored to meet Cupertino’s specific 36 Draft Economic Development Strategic Plan | July 26, 2016 26 needs and conditions. For example, based on community and business feedback and further study, the City could create new licensing or permitting processes that restrict mobile vendors to specific geographic areas within the city, times of day, or special events. The text box below provides an example of the City of Mountain View’s recently adopted permitting process for mobile vendors. o Lead Agencies: Planning and Economic Development o Partners: Retail Businesses, Residents, Mobile Food Vendors 37 Draft Economic Development Strategic Plan | July 26, 2016 27 Case Study: Mountain View’s Permitting Process for Mobile Vendors In 2013, the City of Mountain View passed an ordinance to address concerns about traffic flow and public safety arising from the increased presence of mobile vendors in that community. The ordinance also streamlined street vendor permitting to account for mobile services operating on both public and private property, rather than on designated sites. Mountain View’s rules address safety and congestion by requiring mobile vendors to maintain a minimum distance of 100 feet from schools, and by limiting vending on private property to a maximum of four hours on a particular site per day, with no more than three vendors on a property simultaneously. A separate Temporary Use permitting process was created to allow for longer hours and larger clusters of vendors at food truck rallies and other special events. In Mountain View’s downtown area, vendors are prohibited from operating on the most centralized streets. This restriction is an additional safety measure that also mitigates some of the competitive concerns of brick-and- mortar stores in that area. Case Study: Fremont Street Eats Beginning in 2013, the City of Fremont began working with the Fremont Chamber of Commerce to establish a weekly food truck event in Downtown Fremont. Fremont Street Eats is now a weekly event in its third season, sponsored by the Chamber. Street Eats was intended as an economic development program intended to help activate the Downtown. Many existing businesses, including small retailers and restaurants, consider the program a successful economic development effort because it helps bring pedestrian traffic to an area that was historically underused. Fremont Street Eats Image: Fremont Chamber of Commerce Sources: Interviews with Chris Costanzo, Code Enforcement, City of Mountain View and Jessica von Borck, Deputy City Manager, City of Fremont; Intuit Network, “Food Trucks Motor Into the Mainstream,” December 2012, http://network.intuit.com/wp-content/uploads/2012/12/Intuit-Food-Trucks-Report.pdf; Silicon Valley Economic Development Alliance, Unpublished White Paper. 38 Draft Economic Development Strategic Plan | July 26, 2016 28 ISSUE C: PLACE-MAKING AND CONNECTIVITY STRATEGY 8 Invest in public realm improvements to support the development of the City’s commercial/retail and mixed-use areas as pedestrian-oriented corridors that serve as welcoming gateways to Cupertino and provide a variety of community gathering spaces. The General Plan calls for updating the look and feel of the City’s neighborhood shopping centers and commercial corridors to improve bicycle and pedestrian connections to surrounding residential neighborhoods and create welcoming gateways into Cupertino. The General Plan calls out Stevens Creek Boulevard as Cupertino’s core commercial corridor, and the Heart of the City Specific Plan identifies streetscape design principles for different segments of the Stevens Creek corridor, including street tree, landscaping, and street furnishing concepts, and specifies design standards for new development. The City has also adopted Conceptual Plans for North DeAnza Boulevard (between I-280 and Stevens Creek), De Anza Boulevard (between Stevens Creek and Bollinger Road), and the Vallco Shopping District that provide direction on streetscape and connectivity improvements in these areas. By creating a more welcoming environment for Cupertino residents and visitors, the new street trees and other improvements will help support successful retail along these corridors. Ongoing City Efforts: • Implement the land use and design guidelines from the Heart of the City Specific Plan; require new development to contribute to planned streetscape and infrastructure improvements. The Specific Plan lists contributions and in-kind improvements by developers as the primary mechanism for implementing the streetscape improvements identified in the plan. o Lead Agency: Planning o Partners: Stevens Creek Property Owners and Developers • Implement the land use and transportation policies in the General Plan and Conceptual Plans to ensure that site, building, street, and streetscape design support the City’s goals for community character and connectivity. The plans call for improvements to neighborhood centers and commercial corridors throughout the City. o Lead Agency: Planning Category 1 Actions: • Support community programming at activity centers along major corridors. The General Plan identifies a series of special centers and nodes along major corridors, including the Oaks Shopping Center, Cupertino Memorial Park, DeAnza College, the North Crossroads Node (consisting of shopping centers on the north side of Stevens Creek between N. Sterling Road and N. De Anza Boulevard), City Center, and the Civic Center. By partnering with civic organizations, retailers, and property owners to sponsor programming and events in these nodes, the City can help bring new activity to the corridors. o Lead Agencies: Economic Development, Planning, Parks and Recreation 39 Draft Economic Development Strategic Plan | July 26, 2016 29 o Partners: Chamber of Commerce, DeAnza College, Retail Businesses and Property Owners Category 2 Actions: • Develop implementation plans for improving major corridors such as Stevens Creek Boulevard, including identifying phasing and specific funding sources for planned improvements. For example, a comprehensive implementation strategy for the Heart of the City Specific Plan would identify the desired phasing for the streetscape improvements called for in the plan, provide updated construction costs, and identify the full range of potential funding sources. Adopting an implementation strategy could position the City to apply for grants and seek other funds, above and beyond contributions from developers. In addition, a clear strategy could help lay the groundwork for the eventual establishment of a BID or PBID (see discussion of BIDs and PBIDs above, under Strategy 5). o Lead Agency: Planning o Partners: Property Owners and Developers, Business Owners, Residents • Pursue grants for streetscape and other improvements as they become available. For example, the One Bay Area grant (OBAG) program provides grants for local streets and roads preservation, bicycle and pedestrian improvements, and streetscape improvements. At least 70 percent of OBAG funds must be spent in Priority Development Areas (PDAs); as a PDA, the Stevens Creek corridor would be eligible for this funding. The Santa Clara Valley Transportation Authority (VTA) administers the OBAG capital grant program in Santa Clara County. VTA has fully allocated its share of OBAG dollars through FY 2015-16. After FY 2015-16, however, more OBAG funds may become available. o Lead Agency: Planning o Partners: Santa Clara Valley Transportation Authority (VTA) Category 3 Actions: • Allocate funds in the City's capital improvement program to implement landscaping, pedestrian, and other infrastructure improvements envisioned in the Heart of the City Specific Plan and other Conceptual Plans. Setting aside capital improvement funds from the City budget would help facilitate faster implementation of the Plan, and help meet the local match required by many grant programs. o Lead Agency: Public Works, Finance, Planning STRATEGY 9 Support local and regional transportation improvements that improve transit, pedestrian and bicycle connections to employment and activity centers in Cupertino. Access to transit and excellent bicycle and pedestrian connections are becoming increasingly important for economic development, as more companies consider transportation alternatives in making location decisions. Facilitating transit, walking, and bicycling can also help reduce strain on the automobile network, 40 Draft Economic Development Strategic Plan | July 26, 2016 30 improve health and quality of life for Cupertino residents, and help mitigate the traffic impacts of new growth and development – a major concern for many community members. Ongoing City Efforts: • Implement and regularly update and the Bicycle Transportation Plan, including pursuing grants as they become available. In 2015, the City Council adopted the 2015 Bikeway Improvement Prioritization Update to the 2011 Cupertino Bicycle Transportation Plan. Together, these documents provide a roadmap designed to encourage bicycling as a safe, practical, and healthy alternative to the automobile. The City has also established a Bicycle Pedestrian Commission charged with reviewing, monitoring, and making recommendations regarding bicycle and pedestrian traffic, parking, education and recreation, and other transportation issues. The Commission and City staff work together to implement the Bicycle Transportation Plan and expand the share of trips taken by on foot or by bicycle. o Lead Agency: Public Works o Partners: Bicycle Pedestrian Commission • Require major employers to meet transportation demand management goals. The General Plan Mobility Element requires large employers to develop and maintain transportation demand management (TDM) programs to reduce vehicle trips generated by their employees, and develop a tracking method to monitor results. o Lead Agencies: Planning, Public Works • Actively participate in regional transportation planning processes and advocate for decisions that meet Cupertino's needs. Public Works, Planning, and other departments regularly participate in regional transportation planning processes to advocate for programs that are consistent with the goals and policies of Cupertino’s General Plan. City staff also work with neighboring cities to address regional transportation and land use issues of mutual interest. o Lead Agency: Public Works, Planning • Work with Caltrans and the Santa Clara Valley Transportation Authority to explore new regional transit options, such as on Highway 85. In anticipation of a potential Santa Clara County Transportation Sales Tax measure on the ballot in the November 2016 election, the City of Cupertino has been working with other West Valley and North County cities on developing a mass transit project that would serve this portion of the region’s jobs utilizing VTA and concentrating on the 85 Corridor. In April 2016, Cupertino’s Director of Public Works introduced the concepts to the Chamber of Commerce Legislative Action Committee and held a Business Workshop to facilitate a more detailed discussion. o Lead Agency: Public Works Category 1 Actions: • Work with major employers to leverage corporate transportation programs (e.g., shuttles, bike share) to benefit the community as a whole. Apple and other large employers operate shuttles, bike share, and other transportation programs to help their employees travel to and around Cupertino without a car. While employers may need to restrict access to some of these services in order to maintain corporate security, there may be opportunities to expand on some existing corporate transportation programs – such as bike share – to serve the broader community. o Lead Agency: Public Works, Planning, Economic Development o Partners: Major Employers 41 Draft Economic Development Strategic Plan | July 26, 2016 31 Category 2 Actions: • Work with regional and county agencies to explore new funding sources for local and regional transit improvements. As revenues from the federal and state gas taxes decline, funding for local and regional transportation improvements is becoming increasingly scarce. MTC and Bay Area cities and counties are exploring new options, including new taxes and fees (such as the proposed Santa Clara County Transportation Sales Tax Measure), revenues from California’s cap-and-trade program, and property-based land financing or “value capture” tools (such as Enhanced Infrastructure Financing Districts and Community Facilities Districts). By remaining actively involved in these conversations, Cupertino staff can ensure that the City is aware of emerging tools and sources, and represented in conversations about how funding should be allocated. o Lead Agency: Public Works, Planning • Pursue grants for high priority transportation projects, including bicycle and pedestrian improvements, as they become available. In addition to improvements on Stevens Creek, this could include walking and bicycling paths that connect employment areas with destinations such as local retail centers. o Lead Agency: Public Works, Planning • Prioritize investments in bicycle, pedestrian, and other transportation improvements that connect workers and workplaces with local retailers. These include bicycle paths and sidewalk improvements that directly connect the City’s major employment centers with retail and restaurant nodes. o Lead Agency: Public Works, Planning • As part of the approvals process for large commercial development projects, design a community benefits policy that encourages projects to provide transportation demand management (TDM) programs, potentially including funding for a community shuttle. As discussed above, the General Plan Mobility Element already contains a similar provision for ensuring major employers provide TDM programs. This policy could be extended to major development projects, and include incentives for developers (as well as employers and shopping center owners) to contribute funding for a community shuttle that would improve connections among major community destinations such as local civic and cultural centers, retail centers, schools, and nearby Caltrain stations. o Lead Agency: Planning ISSUE D: HOSPITALITY STRATEGY 10 Provide adequate hotel rooms and event venues to support the City's General Fund and meet business needs. Transient occupancy taxes (TOT) generated by hotels are a significant source of revenues to the City’s General Fund. Cupertino’s existing hotels perform very strongly, driven by business travel associated with the expanding tech sector. Occupancy rates are very high (approaching 90 percent on weekdays), and business travelers often struggle to find rooms in or near Cupertino unless they book well ahead. In addition, 42 Draft Economic Development Strategic Plan | July 26, 2016 32 because of the competition for hotel conference space, Cupertino civic organizations have struggled to find affordable space for meetings and events. The strong office market, along with Apple’s planned expansion, suggest that demand for hotel rooms in Cupertino will remain strong for the foreseeable future. Expanding the supply of hotel rooms and event space could help support Cupertino’s businesses and civic organizations, and support increased TOT revenues. In addition, enabling more business travelers to stay in Cupertino could help support local restaurants and other retailers. Category 1 Actions: • Monitor the need for additional hotel rooms and meeting space. Continue tracking hotel occupancy rates and conference bookings to determine whether the hotel supply is meeting demand. o Lead Agency: Planning, Economic Development Category 2 Actions: • Consider increasing allocation for new hotel development, prioritizing proposals that include ample meeting and event space for businesses and community use. As part of a public benefits agreement for a new hotel project, the City Council could require developers to set aside low-cost space for civic and community organizations to hold events and meetings. o Lead Agency: Planning ISSUE E: MARKETING STRATEGY 11 Develop an integrated approach to marketing Cupertino to brokers, business owners, and others as a center for innovation and the heart of Silicon Valley. Cupertino is well known throughout the region – and the world – as the home of Apple, and the city is considered a highly prestigious business address second only to the North Valley cities of Palo Alto, Mountain View, and Menlo Park. The City’s current website and other marketing materials are largely geared towards highlighting business resources and promoting existing retailers and other local businesses and organizations. In order to help maintain and expand the City’s reputation and attract a diverse range of businesses, these materials could be repositioned to communicate more directly to the business community and market the City’s unique assets, including its innovative tech sector, central location, and highly skilled workforce. Ongoing City Efforts: • Continue “Cupertino Business Buzz” electronic business newsletter featuring updates on local small businesses. The Business Buzz is published on a quarterly basis and highlights business resources and events as well as city initiatives related to economic development. o Lead Agency: Economic Development • Continue to offer the GreenBiz Cupertino program, which provides support to interested small/mid-size businesses, non-profit organizations, and schools in navigating the statewide 43 Draft Economic Development Strategic Plan | July 26, 2016 33 Green Business Program certification process. The City’s GreenBiz team works with businesses to create a plan for conserving energy and water, minimizing material use and disposal, preventing pollution, and cutting costs. The team also connects businesses to services, free equipment, and financial incentives to help achieve certification requirements. The program has been recognized as a leader in environmental sustainability with awards from ICLEI, the Silicon Valley Leadership Group, Green Technology, and Acterra. o Lead Agency: GreenBiz Cupertino Category 1 Actions: • Update the City's marketing materials with current economic data. The City’s website and market materials require regular updating in order to provide more current information on demographics, employment by sector, and top sales tax producers. o Lead Agency: Economic Development • Update the Economic Development and business-related webpages as part of the City's overall website redesign. Economic Development can partner with the City’s Communications team to upgrade business-related webpages and ensure consistency with the redesigned City website. o Lead Agencies: Economic Development, Communications • Expand the resources available on the Economic Development website by providing links to or embedding maps and information from other relevant websites. For example, this could include the Silicon Valley Economic Development Alliance’s commercial real estate listing website (AREAS Silicon Valley), and the business resources available on the Santa Clara County Library District’s website. o Lead Agencies: Economic Development, Communications Category 2 Actions: • Partner with other West Valley cities to develop marketing materials that market the sub- region as a center of innovation. The City may consider partnering with other West Valley cities, which share some common characteristics, to broaden the reach of its marketing efforts and establish the West Valley as a hub of innovation. This coordination could take place through the Silicon Economic Development Alliance, which is comprised city and county economic development professionals throughout San Mateo, Santa Clara, Santa Cruz, and southern Alameda Counties and of which Cupertino is an active member. o Lead Agency: Economic Development o Partners: Silicon Valley Economic Development Alliance Category 3 Actions: • Develop a brand identity focused on economic development (logo, wordmark, and colors) The City could develop a new brand identity (separate from the existing citywide identity) to support economic development initiatives. The brand identity would be intended to communicate Cupertino’s economic development assets, such as the City’s deep roots in the innovation industries. The marketing identity should be developed through a collaborative process involving focus groups, one-on-one interviews, and other outreach to the business community to help define a focused marketing approach. The City may also wish to hire a marketing and communications 44 Draft Economic Development Strategic Plan | July 26, 2016 34 specialist to assist with this effort. The text box below provides examples of brand identities developed by the cities of Fremont, San Jose, and Santa Cruz. o Lead Agencies: Economic Development, Communications o Partners: Chamber of Commerce, Businesses • Redesign the Economic Development website, “Cupertino Business Buzz” electronic business newsletter, and other marketing efforts with a consistent brand. As part of establishing a consistent brand for economic development, review existing communications materials to identify potential areas for improvement, and create new materials as necessary to reflect the brand. o Lead Agencies: Economic Development, Communications o Partners: Chamber of Commerce, Businesses 45 Draft Economic Development Strategic Plan | July 26, 2016 35 Branding and Marketing Campaign in Fremont, Santa Cruz, and San Jose In 2013, Fremont commissioned a communications consulting firm to help with a media relations campaign. This effort led to the creation of a state-of-the-art website, thinksiliconvalley.com, devoted to the City’s economic development communications. The website introduces and reinforces a branding message that closely associates the City with Silicon Valley, by dubbing Fremont “Silicon Valley East.” Other cities looking to attract business investment, such as Santa Cruz and San Jose, have also rolled out visually appealing web presences that rely on many of the principles a typical startup venture would use. Common to all these websites are a prominent brand message (San Jose is “The Capital of Opportunity”, while Santa Cruz is “Where Work & Culture Converge”), vivid imagery (particularly through photographs), and evolving content, though a blog, newsfeed, and links to social media. Sources: “Hitching website wagon to tech capital puts Fremont on the map”, Ragan’s PR Daily; City of Fremont, http://thinksiliconvalley.com; City of San Jose,http://sjeconomy.com; City of Santa Cruz, http://choosesantacruz.com. 46 Draft Economic Development Strategic Plan | July 26, 2016 36 IV. APPENDIX: MATRIX OF STRATEGIES AND IMPLEMENTATION ACTIONS Figure 2. Cupertino Economic Development Strategic Plan: Key Issues, Strategies, and Menu of Potential Action Items Key Issues and Strategies Ongoing City Efforts Category 1 Actions that require small amounts of additional staff time Category 2 Actions that require significant staff time, and/or legislative action Category 3 Actions that require additional budget allocation Notes and Comments Issue A: Support Growth of Small and Midsize Businesses Strategy 1. Facilitate the development of new office and industrial/flex space for small and midsize companies to expand in Cupertino. • Encourage office developers to reserve space for small offices. • Increase allocation for office development for mid-size businesses in the 20,000-100,000 sq. ft. range. Create a new development allocation category for innovation space. • Consider establishing a new “Innovation District” in the Bubb Road and/or Bandley Drive/Valley Green Drive areas. • Review and update land uses in the zoning designations related to Office and Industrial uses to adapt to current and future business needs. • Allow for the conversion of underutilized ground floor retail space to office space. • Allowing for the conversation of underutilized ground floor retail space to office space may require a zoning change in some locations, such as in the Heart of the City Specific Plan area. Strategy 2. Support development of business incubator, accelerator, coworking, shared, and "on-demand" workplaces • Allow for the conversion of underutilized ground floor retail space to incubator or coworking uses. • Seek out partnerships for developing a new small business incubator or accelerator, and consider contributing City funds if needed. Note that the conversion of retail space for other, higher-intensity uses may require property owners to make investments to serve such businesses. See Strategy 5 for discussion of property owner incentives. 47 Draft Economic Development Strategic Plan | July 26, 2016 37 Key Issues and Strategies Ongoing City Efforts Category 1 Actions that require small amounts of additional staff time Category 2 Actions that require significant staff time, and/or legislative action Category 3 Actions that require additional budget allocation Notes and Comments Strategy 3. Continue and strengthen visitation and outreach programs for small and midsize businesses (fewer than 250 employees). • Conduct outreach to existing businesses, including regularly visiting local businesses to discuss programs, events, and/or incentives that may be of interest • Distribute and regularly update “How to Start Your Business in Cupertino” booklet. • Continue to host the annual Small Business Symposium • Provide assistance to new and expanding businesses with obtaining needed permits and licenses from the City and other agencies. • Identify growing, small and midsize companies that are at risk of moving out of Cupertino as they expand, and focus existing business retention efforts on these companies. • Work with local brokers to match growing companies to space in Cupertino. • Conduct an online survey of existing businesses to determine key advantages and disadvantages of doing business in Cupertino. • Conduct regular outreach to growing small and midsize businesses to determine what services would help them expand in Cupertino, including individual visits, roundtables or focus groups, and citywide events. 48 Draft Economic Development Strategic Plan | July 26, 2016 38 Key Issues and Strategies Ongoing City Efforts Category 1 Actions that require small amounts of additional staff time Category 2 Actions that require significant staff time, and/or legislative action Category 3 Actions that require additional budget allocation Notes and Comments Strategy 4. Develop a cohesive business support network offering technical assistance and access to financing, with a focus on enabling growing businesses to stay in Cupertino. • Meet regularly with local and regional business organizations and technical assistance providers to build partnerships • Continue to hold quarterly meetings with Economic Development Committee • Explore additional opportunities to connect small businesses with existing micro-credit providers or other small business lenders. • Partner with technology programs at De Anza College and/or local high schools to offer assistance to Cupertino businesses, such as support in building websites and applications. • Establish the City of Cupertino as a Kiva Zip trustee to find and endorse local businesses seeking to borrow money on the Kiva Zip website. (Trustees have no financial liability for loans and do not handle the loans, but their reputation is tied to the repayment rate of the borrowers they endorse.) • Contract with business assistance providers to provide targeted services to Cupertino businesses, or hire staff and provide services in- house. • Provide seed capital to start a revolving loan fund to provide small loans for small and midsize businesses in Cupertino for business expansion and other business needs. 49 Draft Economic Development Strategic Plan | July 26, 2016 39 Key Issues and Strategies Ongoing City Efforts Category 1 Actions that require small amounts of additional staff time Category 2 Actions that require significant staff time, and/or legislative action Category 3 Actions that require additional budget allocation Notes and Comments Issue B: Retail Support and Development Strategy 5. Work with retail property owners and tenants to revitalize and upgrade aging shopping centers on Stevens Creek Boulevard. • Provide incentives in key locations for upgrading or intensifying retail and/or replacing retail with mixed-use development. • Develop design standards for retail space in mixed-use developments to ensure that new retail space contributes to the desired look and feel of the community, and functions well for retailers. • Conduct outreach to Stevens Creek property and business owners to explore the potential to form a BID or PBID on all or part of the Stevens Creek corridor, to fund marketing, landscaping, maintenance, and/or other local needs. • Provide grants or loans to retail property owners and/or tenants to encourage them to upgrade their façades. Strategy 6. Support emerging restaurant, entertainment, and shopping clusters that serve as destinations for workers, residents, and visitors. • Meet regularly with retail and commercial brokers to answer questions, build relationships, and get updates on projects • Represent the City at ICSC and other local and regional conferences. • Maintain “Eats 95014” app/website and “Cupertino at a Glance” website • Work with brokers and retail site selection professionals to market Cupertino to desired tenants, such as high-end restaurants and comparison retailers, and match retailers with appropriate sites in Cupertino. • Create a marketing campaign to increase awareness of local retailers and service providers among workers employed at Cupertino businesses. • Seek out social media partnerships to promote shopping local. 50 Draft Economic Development Strategic Plan | July 26, 2016 40 Key Issues and Strategies Ongoing City Efforts Category 1 Actions that require small amounts of additional staff time Category 2 Actions that require significant staff time, and/or legislative action Category 3 Actions that require additional budget allocation Notes and Comments Strategy 7. Develop policies for regulating food trucks and other mobile services, including the types of mobile services that are permitted, the locations and times when they may operate, and measures for mitigating environmental, traffic, and other impacts. • Issue limited special events permits for food truck events, and require mobile service vendors to apply for a Cupertino business license in order to operate in the City. • Support the weekly Off the Grid food truck festival in the Whole Foods parking lot. • Work with Chamber of Commerce to reach out to mobile service vendors, ensure that they aware of existing local and state laws and regulations, and involve them in Chamber activities. • Conduct outreach to Cupertino residents and the local business community on appropriate locations and regulations for mobile services. • Develop policies to allow and manage mobile service vendors, which may include a new licensing and/or permitting process. Issue C: Place-Making and Connectivity Strategy 8. Invest in public realm improvements to support the development of the City’s commercial/retail and mixed-use areas as pedestrian-oriented corridors that serve as welcoming gateways to Cupertino and provide a variety of community gathering spaces. • Implement the land use and design guidelines from the Heart of the City Specific Plan; require new development to contribute to planned streetscape and infrastructure improvements. • Implement the land use and transportation policies in the General Plan and Conceptual Plans to ensure that site, building, street, and streetscape design support the City’s goals for community character and connectivity. • Support community programming at activity centers along major corridors.. • Develop an implementation plan for improving major corridors such as Stevens Creek Boulevard, including identifying phasing and specific funding sources for planned improvements. • Pursue grants for streetscape and other improvements as they become available. • Allocate funds in the City's capital improvement program to implement landscaping, pedestrian, and other infrastructure improvements envisioned in the Heart of the City Specific Plan and other Conceptual Plans. 51 Draft Economic Development Strategic Plan | July 26, 2016 41 Key Issues and Strategies Ongoing City Efforts Category 1 Actions that require small amounts of additional staff time Category 2 Actions that require significant staff time, and/or legislative action Category 3 Actions that require additional budget allocation Notes and Comments Strategy 9. Support local and regional transportation improvements that improve transit, pedestrian and bicycle connections to employment and activity centers in Cupertino. • Implement and regularly update the Bicycle Transportation Plan, including pursuing grants as they become available. • Require major employers to meet transportation demand management goals. • Actively participate in regional transportation planning processes and advocate for decisions that meet Cupertino's needs. • Work with Caltrans and the Santa Clara Valley Transportation Authority to explore new regional transit options, such as on Highway 85. • Work with major employers to leverage corporate transportation programs (e.g., shuttles, bike share) to benefit the community as a whole. • Work with regional and county agencies to explore new funding sources for local and regional transit improvements. • Pursue grants for high priority transportation projects as they become available. • Prioritize investments in bicycle, pedestrian, and other transportation improvements that connect workers and workplaces with local retailers. • As part of the approvals process for large commercial development projects, design a community benefits policy that encourages projects to provide transportation demand management programs, potentially including a community shuttle. 52 Draft Economic Development Strategic Plan | July 26, 2016 42 Key Issues and Strategies Ongoing City Efforts Category 1 Actions that require small amounts of additional staff time Category 2 Actions that require significant staff time, and/or legislative action Category 3 Actions that require additional budget allocation Notes and Comments Issue D: Hospitality Strategy 10. Provide adequate hotel rooms and event venues to support the City's General Fund and meet business needs. • Monitor the need for additional hotel rooms and meeting space. • Consider increasing allocation for new hotel development, prioritizing proposals that include ample meeting and event space for businesses and community use. Issue E: Marketing Strategy 11. Develop an integrated approach to marketing Cupertino to brokers, business owners, and others as a center for innovation and the heart of Silicon Valley. • Continue “Cupertino Business Buzz” electronic business newsletter featuring updates on local small businesses • Continue to offer the GreenBiz Cupertino program, which provides support to interested small/mid-size businesses, non- profit organizations and schools in navigating the statewide Green Business Program certification process • Update the City's marketing materials with current economic data • Update the Economic Development and business-related webpages as part of the City's overall website redesign. • Expand the resources available on the Economic Development website by providing links to or embedding maps and information from other relevant websites. • Partner with other West Valley cities to develop a common message and coordinate marketing efforts. • Develop a brand identity focused on economic development (logo, wordmark, and colors) • Redesign the Economic Development website, “Cupertino Business Buzz” electronic business newsletter, and other marketing efforts with a consistent brand 53 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1857 Name: Status:Type:Ceremonial Matters & Presentations Agenda Ready File created:In control:7/19/2016 City Council On agenda:Final action:8/2/2016 Title:Subject: Transportation video of the Shanghai Metro subway system in Shanghai, China Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. City Council8/2/20161 Subject: Transportation video of the Shanghai Metro subway system in Shanghai, China Present video CITY OF CUPERTINO Printed on 7/27/2016Page 1 of 1 powered by Legistar™54 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1326 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:1/7/2016 City Council On agenda:Final action:8/2/2016 Title:Subject: Approve the July 5 City Council minutes Sponsors: Indexes: Code sections: Attachments:A - Draft Minutes Action ByDate Action ResultVer. City Council8/2/20161 Subject: Approve the July 5 City Council minutes Approve the minutes CITY OF CUPERTINO Printed on 7/27/2016Page 1 of 1 powered by Legistar™55 DRAFT MINUTES CUPERTINO CITY COUNCIL Tuesday, July 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 6:45 p.m. in the Cupertino Community Hall Council Chamber, 10350 Torre Avenue. CLOSED SESSION 1. Subject: Conference with Real Property Negotiators pursuant to Government Code Section 54956.8. Properties: APN 375-21-001, Lawrence Expressway at Mitty Avenue and APN 381-19-015, Lawrence Expressway at Doyle Road. Agency Negotiators: Jaqui Guzman and Gail Seeds. Negotiating Parties: San Jose Water Company; County Roads and Airports; City of San Jose. Under Negotiation: Price and terms of payment Mayor Chang announced that Council gave direction. 2. Subject: Conference with legal counsel - Existing Litigation pursuant to Paragraph (1) of subdivision (d) of Gov't Code 54956.9; Name of Case: City of Saratoga; City of Cupertino; Town of Los Gatos v. California Department of Transportation, et al; Santa Clara County Superior Court Case No.: 115CV281214 Mayor Chang announced that Council gave direction. 3. Subject: Conference with legal counsel - Existing Litigation pursuant to Paragraph (1) of subdivision (d) of Gov't Code 54956.9: Name of Case: Committee Supporting Cupertino Citizens’ Sensible Growth Initiative, Steven Scharf, Xiangchen Xu, Govind Tatachari, Petitioners v. City of Cupertino, et al. Santa Clara County Case No. 16CV296322 56 City Council Minutes July 5, 2016 2 Mayor Chang announced that no action was taken. ADJOURNMENT REGULAR CITY COUNCIL MEETING PLEDGE OF ALLEGIANCE At 6:45 p.m. Mayor Barry Chang reconvened the Regular City Council meeting 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. Mayor Chang also reported out from the Closed Session of June 27. Subject: Conference with Labor Negotiators pursuant to Government Code Section 54957.6; Agency designated representatives: City Manager, Director of Administrative Services and Dania Torres Wong; Employee organizations: Operating Engineers Local No. 3 Union; Cupertino Employees' Association; Unrepresented (Management and Confidential) Employees' Compensation Program. Mayor Chang reported that no action was taken. CEREMONIAL MATTERS AND PRESENTATIONS 1. Subject: Proclamation for July as Park and Recreation Month Recommended Action: Present Proclamation A short video from the recent Fourth of July celebration was shown. Mayor Chang presented the proclamation to Acting Director of Recreation and Community Services Christine Hanel. 2. Subject: Commendations to winners of CU Hacks 2 hackathon contest sponsored by the Cupertino Library and the Cupertino Library Foundation to promote engineering and computer programming skills 57 City Council Minutes July 5, 2016 3 Recommended Action: Present commendations and view videos of the four winning teams: Hector the Hippo (Beginner category); No Collisions (Traffic category); My Water (Environment category); Savior (Public Safety category) Mayor Chang presented commendations to the winners of each category. POSTPONEMENTS - None ORAL COMMUNICATIONS Val Vitols invited Council and the community to a concert at De Anza College Flint Center hosted by a non-profit education group supporting a clean environment. Joan Chin talked about affordable housing in Cupertino and reconstruction of smaller, existing office buildings. Lisa Warren talked about Cupertino’s zoning and land map. CONSENT CALENDAR Sinks moved and Wong seconded to approve the items on the Consent Calendar as presented with the exception of item number 4 which was removed for discussion. Ayes: Chang, Vaidhyanathan, Paul, Sinks and Wong. Noes: None. Abstain: None. Absent: None. 3. Subject: Approve the June 21 City Council minutes Recommended Action: Approve the minutes 4. Subject: Request for Funding - Stevens Creek L.P. an affiliate of Charities Housing Development Corporation of Santa Clara County - Affordable Senior Housing, 19160 Stevens Creek Boulevard Recommended Action: Adopt Resolution No. 16-071 to reserve $3,672,000 from the City’s Affordable Housing Fund to assist in the potential development of affordable senior housing at 19160 Stevens Creek Boulevard in the City of Cupertino; and to make findings required by the California Environmental Quality Act Written communications for this item included emails to Council. Jennifer Griffin spoke on this item. 58 City Council Minutes July 5, 2016 4 Sinks moved and Wong seconded to adopt Resolution No. 16-071 to reserve $3,672,000 from the City’s Affordable Housing Fund to assist in the potential development of affordable senior housing at 19160 Stevens Creek Boulevard in the City of Cupertino; and to make findings required by the California Environmental Quality Act. The motion carried unanimously. 5. Subject: Pasadena Avenue Public Improvements Project No. 2016-13 Recommended Action: Authorize the City Manager to award and execute a construction contract with O'Grady Paving, Inc. in the amount of $373,100 and approve a construction contingency of $37,000 for a total of $410,100 SECOND READING OF ORDINANCES 6. Subject: Second reading of an ordinance approving a development agreement by and between the City of Cupertino and IAC at Cupertino LLC for the Hamptons project located at 19500 Pruneridge Avenue Recommended Action: Conduct the second reading and enact Ordinance No. 16-2144: "An Ordinance of the Cupertino City Council approving a Development Agreement by and between the City of Cupertino and IAC at Cupertino LLC for the Hamptons project located at 19500 Pruneridge Avenue" City Clerk Grace Schmidt read the title of the ordinance. The following individuals spoke on this item: Jennifer Griffin Darrel Lum Wong moved and Sinks seconded to read Ordinance No. 16-2144 by title only and that the City Clerk’s reading would constitute the second reading thereof. Ayes: Vaidhyanathan, Paul, Sinks and Wong. Noes: Chang. Abstain: None. Absent: None. Wong moved and Sinks seconded to enact Ordinance No. 16-2144. Ayes: Vaidhyanathan, Paul, Sinks and Wong. Noes: Chang. Abstain: None. Absent: None. Chang said he voted no because he would prefer more affordable housing units in the project. Council requested a study session on affordable housing at a future meeting. 59 City Council Minutes July 5, 2016 5 PUBLIC HEARINGS 7. Subject: Consideration of a payment to solid waste franchisee (Recology Cupertino) of $146,128 for increased costs incurred to process organic materials from October 2015 through June 2016; and establishing a maximum rate schedule which includes a 5.28% increase in maximum rates effective July 1, 2016 to non-residential/multi-family and compactor garbage/compostable materials customers Recommended Action: 1. Authorize a payment of $146,128 to Recology Cupertino from the Resource Recovery fund 520-81-801; and 2. Adopt Resolution 16-072 (Attachment A) establishing a maximum rate schedule which includes an increase of 5.28% in non- residential/multi-family and compactor garbage and compostable materials customers effective July 1, 2016 Written communications for this item included a letter to Council and a staff PowerPoint presentation. Assistant Director of Public Works Roger Lee reviewed the staff report via a PowerPoint presentation. Mayor Chang opened the public hearing. There were no speakers and the public hearing was closed. Wong moved and Sinks seconded to 1) Authorize a payment of $146,128 to Recology Cupertino from the Resource Recovery fund 520-81-801; and 2) Adopt Resolution 16- 072 establishing a maximum rate schedule which includes an increase of 5.28% in non- residential/multi-family and compactor garbage and compostable materials customers effective July 1, 2016. The motion carried unanimously. 8. Subject: Update on regional drought response, proposed regulations restricting water use and authorize negotiation and execution of a Memorandum of Understanding (MOU) with the Santa Clara Valley Water District (District) for a landscape conversion rebate program Recommended Action: Staff recommends that Council take the following actions: 1) Receive staff report on current regional drought actions; and 2) Adopt Resolution No. 16-073 adopting 2016-2017 Regulations Restricting Water Use; and 3) Adopt Resolution No.16-074 authorizing the City Manager to negotiate and execute a Memorandum of Understanding (MOU) with the District in an amount up to $115,000 for a landscape conversion rebate program 60 City Council Minutes July 5, 2016 6 Written communications for this item included a staff PowerPoint presentation. Assistant Director of Public Works Roger Lee reviewed the staff report via a PowerPoint presentation. Mayor Chang opened the public hearing and the following individuals spoke on this item: Joan Chin Ignatius Ding (distributed written materials) Mayor Chang closed the public hearing. Wong moved and Vaidhyanathan seconded to 1) Receive the staff report on current regional drought actions; and 2) Adopt Resolution No. 16-073 adopting 2016-2017 Regulations Restricting Water Use; and 3) Adopt Resolution No.16-074 authorizing the City Manager to negotiate and execute a Memorandum of Understanding (MOU) with the District in an amount up to $115,000 for a landscape conversion rebate program. The motion carried unanimously. ORDINANCES AND ACTION ITEMS Council concurred to hear item numbers 9 and 10 together. 9. Subject: First reading of an ordinance amending section 11.27.145 of the Cupertino Municipal Code relating to Designation of Preferential Parking Zone on Hammond Way Recommended Action: Conduct the first reading of Ordinance No. 16-2145: "An ordinance of the City Council of the City of Cupertino amending section 11.27.145 of the Cupertino Municipal Code relating to designation of preferential parking zones" on Hammond Way on Saturdays, Sundays and holidays between the hours of 7 a.m. and 4 p.m. Assistant Director of Public Works Roger Lee reviewed the staff report via a PowerPoint presentation. The following individuals spoke on items 9 or 10: Jim Wheeler (support for 9) 61 City Council Minutes July 5, 2016 7 Francois Delepine (support on 9) Marjorie Mancuso (support on 9) Keith Hocker – working on petition for Canyon Oak Way (no speaker card submitted) Ken Tissavek - from Oak Valley (no speaker card submitted) City Clerk Grace Schmidt read the title of the ordinance. Sinks moved and Vaidhyanathan seconded to read Ordinance No. 16-2145 by title only and that the City Clerk’s reading would constitute the first reading thereof. Ayes: Chang, Vaidhyanathan, Paul, Sinks and Wong. Noes: None. Abstain: None. Absent: None. 10. Subject: First reading of an ordinance amending section 11.27.145 of the Cupertino Municipal Code relating to Designation of Preferential Parking Zone on Oak Valley Road, Juniper Court, Sycamore Drive and Black Oak Way Recommended Action: Conduct the first reading of Ordinance No. 16-2146: "An Ordinance of the City Council of the City of Cupertino amending section 11.27.145 of the Cupertino Municipal Code relating to designation of preferential parking zones" on Oak Valley Road, Juniper Court, Sycamore Drive and Black Oak Way on Saturdays, Sundays and holidays between the hours of 7 a.m. and 4 p.m. Assistant Director of Public Works Roger Lee reviewed the staff report via a PowerPoint presentation. Sinks moved and Vaidhyanathan seconded to read Ordinance No. 16-2146 by title only and that the City Clerk’s reading would constitute the first reading thereof. Ayes: Chang, Vaidhyanathan, Paul, Sinks and Wong. Noes: None. Abstain: None. Absent: None. Wong moved and Paul seconded to direct the City Manager to send a letter to the Mid- Peninsula Regional Open Space District and to the County of Santa Clara board of Supervisors to request additional parking at Rancho San Antonio County Park; and gave direction to the City Manager to review the Cristo Rey Drive roundabout for any potential safety improvements. The motion carried unanimously. 11. Subject: Election Code section 9212 report relating to proposed 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 62 City Council Minutes July 5, 2016 8 benefits such as transit, 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” (“Initiative”); determination whether to place measure on the ballot; 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. 16-075 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) Consider whether to direct the City elections official to transmit the Initiative to the city attorney for preparation of an impartial analysis per the draft resolution; and 3) Consider whether to authorize City Council members, or the Council as a whole, to submit ballot arguments against the Initiative per the draft resolution Written communications for this item included emails to Council and a staff PowerPoint presentation. Outside Counsel Winter King and Catherine Engberg from Shute, Mihaly, & Weinberger, Libby Seifel from Seifel Consulting Inc., and Kristy Weis, Project Manager with David J. Powers and Associates reviewed the 9212 Report via a PowerPoint presentation. Francisca Church from Pehr and Feers Transportation Consultants and the other outside Counsel and consultants answered questions from Council. The following individuals spoke on this item: Group on behalf of Vallco Initiative - Judy Wilson, Reed Moulds, Zhlioli Yang, Craig Bachewer, Sandy James (support Initiative) Rafael Viñoly, Architect for proposed Vallco project (support) Group on behalf of Better Cupertino - Phyllis Dickstein, Brooke Ezzat, Sashi Begur, Yanping Zhao, Cathy Yue Wang, X.C. Xu, Joan Lawler-Chin (opposed to Initiative) – distributed written comments Dundee Maples (support) Barbara Chang (support) Daphne Jeu (support) Gloria You (support) 63 City Council Minutes July 5, 2016 9 Grace King (support) Ann Woo (support) Lisa Warren (opposed) – distributed written comments Ed Hirshfield (support) Jennifer Griffin (opposed) Donna Austin (support) Chihua Wei (support) Kevin McClelland on behalf of Cupertino Chamber of Commerce (support) Sabrina Risk also speaking for Anthony Risk (support) Hemant Buch (support) Balaji (opposed) Danessa Techmanski (opposed) Steve Scharf (opposed) Darrel Lum (opposed) Ignatius Ding (opposed) Randy Shingai (opposed) Kimberly Sandstrom (opposed) Wong moved and Sinks seconded to receive the Report on the Impacts of Proposed Initiative and adopt Resolution No. 16-075 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. Paul offered a friendly amendment to amend the ballot language wording to replace “community benefits” with “or equivalent improvements” and to change the range for transportation to be between $30 million and $36 million. Wong did not accept the friendly amendment. The motion carried with Paul voting no. Paul stated he voted no because he preferred the language he had suggested. Wong moved and Chang seconded to direct the City elections official to transmit the Initiative to the city attorney for preparation of an impartial analysis per the draft resolution. The motion carried with Paul voting no. Sinks moved and Wong seconded to omit Section 11 in the resolution and not have Council members submit ballot arguments. The motion carried unanimously. 12. Subject: Designation of voting delegate and alternates for League of California Annual Conference, October 5-7, Long Beach 64 City Council Minutes July 5, 2016 10 Recommended Action: Designate a voting delegate and up to two alternates for League of California Annual Conference, October 5-7, Long Beach Wong moved and Vaidhyanathan seconded to designate Vaidhyanathan as the voting delegate and Wong as alternate for the League of California Annual Conference, October 5-7, Long Beach. The motion carried unanimously. REPORTS BY COUNCIL AND STAFF 13. Subject: Construction Project Updates Recommended Action: Receive Update Written Communications for this item included a staff PowerPoint presentation. This item was not heard. 14. Subject: Report on Committee assignments and general comments Recommended Action: Report on Committee assignments and general comments Council members highlighted the activities of their committees and various community events. ADJOURNMENT At 1:20 a.m. on Wednesday, July 6, 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. 65 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1826 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:7/5/2016 City Council On agenda:Final action:8/2/2016 Title:Subject: Accept Accounts Payable for the week ending May 13, 2016 Sponsors: Indexes: Code sections: Attachments:A - Draft Resolution B - AP Report Action ByDate Action ResultVer. City Council8/2/20161 Subject: Accept Accounts Payable for the week ending May 13, 2016 Adopt Resolution No. 16-076 accepting Accounts Payable for the week ending May 13, 2016 CITY OF CUPERTINO Printed on 7/27/2016Page 1 of 1 powered by Legistar™66 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 May 13, 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 2nd day of August, 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 67 68 69 70 71 72 73 74 75 76 77 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1827 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:7/5/2016 City Council On agenda:Final action:8/2/2016 Title:Subject: Accept Accounts Payable for the period ending May 20, 2016 Sponsors: Indexes: Code sections: Attachments:A - Draft Resolution B - AP Report Action ByDate Action ResultVer. City Council8/2/20161 Subject: Accept Accounts Payable for the period ending May 20, 2016 Adopt Resolution No. 16-077 accepting Accounts Payable for the period ending May 20, 2016 CITY OF CUPERTINO Printed on 7/27/2016Page 1 of 1 powered by Legistar™78 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 May 20, 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 2nd day of August, 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 79 80 81 82 83 84 85 86 87 88 89 90 91 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1828 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:7/5/2016 City Council On agenda:Final action:8/2/2016 Title:Subject: Accept Accounts Payable for the period ending May 27, 2016 Sponsors: Indexes: Code sections: Attachments:A - Draft Resolution B - AP Report Action ByDate Action ResultVer. City Council8/2/20161 Subject: Accept Accounts Payable for the period ending May 27, 2016 Adopt Resolution No. 16-078 accepting Accounts Payable for the period ending May 27, 2016 CITY OF CUPERTINO Printed on 7/27/2016Page 1 of 1 powered by Legistar™92 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 May 27, 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 2nd day of August, 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 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1829 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:7/5/2016 City Council On agenda:Final action:8/2/2016 Title:Subject: Accept Accounts Payable for the period ending June 3, 2016 Sponsors: Indexes: Code sections: Attachments:A - Draft Resolution B - AP Report Action ByDate Action ResultVer. City Council8/2/20161 Subject: Accept Accounts Payable for the period ending June 3, 2016 Adopt Resolution No. 16-079 accepting Accounts Payable for the period ending June 3, 2016 CITY OF CUPERTINO Printed on 7/27/2016Page 1 of 1 powered by Legistar™110 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 June 3, 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 2nd day of August, 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 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1830 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:7/5/2016 City Council On agenda:Final action:8/2/2016 Title:Subject: Accept Accounts Payable for the period ending June 10, 2016 Sponsors: Indexes: Code sections: Attachments:A - Draft Resolution B - AP Report Action ByDate Action ResultVer. City Council8/2/20161 Subject: Accept Accounts Payable for the period ending June 10, 2016 Adopt Resolution No. 16-080 accepting Accounts Payable for the period ending June 10, 2016 CITY OF CUPERTINO Printed on 7/27/2016Page 1 of 1 powered by Legistar™130 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 June 10, 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 2nd day of August, 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 131 132 133 134 135 136 137 138 139 140 141 142 143 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1831 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:7/5/2016 City Council On agenda:Final action:8/2/2016 Title:Subject: Accept Accounts Payable for the period ending June 17, 2016 Sponsors: Indexes: Code sections: Attachments:A - Draft Resolution B - AP Report Action ByDate Action ResultVer. City Council8/2/20161 Subject: Accept Accounts Payable for the period ending June 17, 2016 Adopt Resolution No. 16-081 accepting Accounts Payable for the period ending June 17, 2016 CITY OF CUPERTINO Printed on 7/27/2016Page 1 of 1 powered by Legistar™144 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 June 17, 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 2nd day of August, 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 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1833 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:7/5/2016 City Council On agenda:Final action:8/2/2016 Title:Subject: Accept Accounts Payable for the period ending June 24, 2016 Sponsors: Indexes: Code sections: Attachments:A - Draft Resolution B - AP Report Action ByDate Action ResultVer. City Council8/2/20161 Subject: Accept Accounts Payable for the period ending June 24, 2016 Adopt Resolution No. 16-082 accepting Accounts Payable for the period ending June 24, 2016 CITY OF CUPERTINO Printed on 7/27/2016Page 1 of 1 powered by Legistar™168 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 June 24, 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 2nd day of August, 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 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1839 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:7/11/2016 City Council On agenda:Final action:8/2/2016 Title:Subject: Treasurer's Investment Report for the Quarter ending December 31, 2015 Sponsors: Indexes: Code sections: Attachments:Staff Report A - Investment Portfolio quarter ended December 31, 2015 B - Supplemental Portfolio Analysis Action ByDate Action ResultVer. City Council8/2/20161 Subject: Treasurer's Investment Report for the Quarter ending December 31, 2015 Accept the Treasurer's Investment Report for the Quarter ending December 31, 2015 CITY OF CUPERTINO Printed on 7/27/2016Page 1 of 1 powered by Legistar™184 ADMINISTRATIVE SERVICES DEPARTMENT CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3220 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: August 2, 2016 Subject Treasurer’s Investment Report for Quarter Ending December 31, 2015 Recommended Action Accept the report Discussion and Fiscal Impact The attached slides and investment portfolio listing comprise the Treasurer’s Investment Report. Together they show the composition of the portfolio; total portfolio yield in comparison to the Local Agency Investment Fund (LAIF), the 1-year Treasury, and the 2-year Treasury; diversification within the government agency securities; and portfolio compliance with the City’s Investment Policy. For quarter ending December 31, 2015, the market value of t he City’s portfolio total $114.9 million which is $4.9 million lower than last quarter. The portfolio’s average yield was 0.68% which is an increase from its 0.65% yield of the previous quarter ending September 30, 2015. The average length to maturity decreased from 1.02 to 0.97 years. The LAIF yield rose slightly to 0.38% from last quarter’s yield of 0.32%. LAIF’s balance was $38.5 million which is in compliance with the City Investment Policy and state code. LAIF’s same- or next-day liquidity insures that the City is able to pay its obligations for the next six months and also provides strong liquidity in the short, intermediate, and long-term horizons. Market values on individual securities in the investment portfolio are provided by Wells Fargo Bank Institutional Trust Services using valuations from Interactive Data Pricing and Reference Data, Inc. _____________________________________ Prepared by: Lisa Taitano, Deputy City Treasurer Reviewed by: Kristina Alfaro, City Treasurer Approved by: David Brandt, City Manager Attachments: A – Investment Portfolio B – Supplemental Portfolio Analysis 185 City of Cupertino Investment Portfolio December 31, 2015 ACTIVITY DATE COUPON ADJUSTEDMATURITYMARKETUNREALIZED PURCHASEMATURITY DESCRIPTION RATEYTMCOST VALUEVALUEPROFIT/LOSS SECURITIES MATURED 06/11/1310/15/15Agency notes - FNMA 1.88%0.47%-2,000,000 06/11/1310/26/15Agency notes - FNMA 1.63%0.45%-2,000,000 06/11/1311/15/15US Treasury Note 0.38%0.41%-3,000,000 06/11/1311/16/15Agency notes - FFCB 1.50%0.43%-2,000,000 SECURITIES PURCHASED 10/16/1509/13/19Agency notes - FHLB 2.00%1.21%2,056,807 2,000,000 2,027,020 (29,787) CITY PORTFOLIO CASH 12/31/15Wells Fargo - Cash --- 12/31/15Wells Fargo - Workers Comp Checking 42,572 42,572 42,572 12/31/15Wells Fargo - Regular Checking --- 12/31/15Wells Fargo - Repurchase Agreements 0.02%0.02%5,236,808 5,236,808 5,236,808 5,279,380 5,279,380 5,279,380 LAIF 12/31/15LAIF - State Pool 0.38%0.38%38,543,043 38,543,043 38,543,043 MONEY MARKET FUNDS 12/31/15Wells Fargo Advantage 100% Treasury 0.00%0.00%111,729 111,729 111,729 111,729 111,729 111,729 GOVERNMENT AGENCY NOTES 02/25/1403/15/16Agency notes - FNMA 2.25%0.37%3,011,585 3,000,000 3,010,710 (875) 01/21/1405/13/16Agency notes - FHLMC 0.50%0.50%1,000,000 1,000,000 1,000,090 90 06/23/1406/10/16Agency notes - FHLB 2.13%0.51%3,021,320 3,000,000 3,019,350 (1,970) 02/25/1406/17/16Agency notes - FFCB 0.52%0.45%3,000,968 3,000,000 2,998,830 (2,138) 01/21/1407/05/16Agency notes - FNMA 0.38%0.51%999,307 1,000,000 998,790 (517) 12/31/1412/09/16Agency notes - FHLB 1.63%0.70%3,025,851 3,000,000 3,022,200 (3,651) 09/30/1403/08/17Agency notes - FHLMC 1.00%0.84%3,005,794 3,000,000 3,002,490 (3,304) 12/31/1403/10/17Agency notes - FHLB 0.88%0.81%3,002,431 3,000,000 2,997,870 (4,561) 07/07/1407/07/17Agency notes - FHLMC 1.00%1.00%2,991,955 3,000,000 2,998,410 6,455 10/03/1409/22/17Agency notes - FFCB 1.13%1.12%3,000,253 3,000,000 3,000,270 17 12/31/1412/18/17Agency notes - FFCB 1.13%1.14%999,788 1,000,000 999,650 (138) 09/30/1401/12/18Agency notes - FHLMC 0.75%1.26%989,870 1,000,000 991,950 2,080 09/30/1403/07/18Agency notes - FHLMC 0.88%1.32%990,530 1,000,000 992,980 2,450 03/30/1503/12/18Agency notes - FFCB 1.13%0.95%2,007,544 2,000,000 1,996,800 (10,744) 04/02/1504/02/18Agency notes - FFCB 1.00%0.98%3,001,329 3,000,000 2,992,020 (9,309) 05/11/1505/11/18Agency notes - FFCB 1.03%1.08%1,997,593 2,000,000 1,987,340 (10,253) 07/23/1406/08/18Agency notes - FHLB 1.25%1.39%2,989,997 3,000,000 2,997,630 7,633 05/07/1508/07/18Agency notes - FHLB 1.05%1.13%1,995,826 2,000,000 1,981,360 (14,466) 05/27/1512/27/18Agency notes - FNMA 1.38%1.38%2,000,000 2,000,000 2,003,020 3,020 05/07/1502/27/19Agency notes - FNMA 1.68%1.30%1,011,652 1,000,000 997,550 (14,102) 10/16/1509/13/19Agency notes - FHLB 2.00%1.21%2,056,807 2,000,000 2,027,020 (29,787) 05/27/1511/27/19Agency notes - FNMA 1.63%1.38%2,000,000 2,000,000 2,003,880 3,880 48,100,401 48,000,000 48,020,210 (80,191) US TREASURY SECURITIES 01/21/1403/15/16US Treasury Note 0.38%0.43%999,880 1,000,000 1,000,230 350 01/21/1404/15/16US Treasury Note 0.25%0.46%999,390 1,000,000 999,800 410 02/25/1405/31/16US Treasury Note 1.75%0.42%3,016,497 3,000,000 3,015,570 (927) 01/21/1406/15/16US Treasury Note 0.50%0.53%999,881 1,000,000 999,920 39 01/21/1408/15/16US Treasury Note 0.63%0.60%1,000,152 1,000,000 999,770 (382) 04/11/1409/30/16US Treasury Note 1.00%0.57%2,006,353 2,000,000 2,003,980 (2,373) 04/11/1410/31/16US Treasury Note 1.00%0.62%2,006,225 2,000,000 2,003,900 (2,325) 04/11/1411/15/16US Treasury Note 0.63%0.64%1,999,684 2,000,000 1,997,340 (2,344) 04/11/1412/31/16US Treasury Note 0.88%0.70%2,003,563 2,000,000 2,001,260 (2,303) 06/23/1406/15/17US Treasury Note 0.88%0.95%2,996,906 3,000,000 2,996,730 (176) 07/23/1409/30/17US Treasury Note 0.63%1.08%2,976,346 3,000,000 2,979,270 2,924 05/07/1504/30/20US Treasury Note 1.38%1.54%1,986,147 2,000,000 1,974,140 (12,007) 22,991,025 23,000,000 22,971,910 (19,115) Total Managed Portfolio 115,025,577 114,934,152 114,926,272 (99,305) Average Yield 0.68% Average Length to Maturity (in years) 0.97 A 186 City of Cupertino Investment Portfolio December 31, 2015 ACTIVITY DATE COUPON ADJUSTEDMATURITYMARKETUNREALIZED PURCHASEMATURITY DESCRIPTION RATEYTMCOST VALUEVALUEPROFIT/LOSS TRUST PORTFOLIO Institutional MM AccountWells Fargo Bank Secured0.02%0.02%48,585 48,585 48,585 BOND RESERVE PORTFOLIO Bond Lease Pymt AcctGoldman Sachs Financial Sq Money Mkt 0.00%0.00%538,769 538,769 538,769 Bond Reserve Acct Goldman Sachs Financial Sq Money Mkt 0.00%0.00%1,588,568 1,588,568 1,588,568 Total Bond Reserve Portfolio 2,127,337 2,127,337 2,127,337 A 187 4/7/2016 1 Treasurer’s Investment Report Quarter Ending December 2015 Audit Committee Meeting April 14, 2016 Total portfolio decreased from last quarter by $4.9 million, from $119.8 to $114.9 million Average maturity decreased from 1.02 years to 0.97 Average yield increased from 0.65% to 0.68% Portfolio Composition LAIF 33.51% Cash 4.59% Money Market 0.10% Agency Notes 41.82% US Treasuries 19.99% B 188 4/7/2016 2 Yield Comparison 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 2Y Treasury Cupertino LAIF 1Y Treasury Debt issued by federal credit agencies and fully backed by U.S. government guarantee but not its full faith and credit High credit rating ‐second only to Treasury bonds Maturity periods from 1 month to 15 years Agencies that can issue: •FHLMC ‐Federal Home Loan Mortgage Association (Freddie Mac) •FHLB ‐Federal Home Loan Bank •FNMA ‐Federal National Mortgage Association (Fannie Mae) •FFCB ‐Federal Farm Credit Bureau Agency Diversification FHLB 33.5% FHLMC 18.7% FNMA 18.8% FFCB 29.1% B 189 4/7/2016 3 Policy Compliance City of Cupertino December31, 2015 CategoryStandardComment Treasury IssuesNo limitComplies US Agencies No limitComplies Medium Term Corporate Bonds30% with A ratingComplies LAIF$50 millionComplies Money Market Funds20%Complies Maximum MaturitiesUp to 5 yearsComplies Per Issuer Max10% (except for Treasuries and Agencies)Complies Bankers Acceptances 180 days & 40%Complies Commercial Paper270 days & 25%Complies Negotiable Certificates of Deposit30%Complies Repurchase Agreements365 daysComplies Reverse Repurchase AgreementsProhibitedComplies B 190 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1874 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:7/27/2016 City Council On agenda:Final action:8/2/2016 Title:Subject: Treasurer's Investment Report for the Quarter ending March 31, 2016 Sponsors: Indexes: Code sections: Attachments:Staff Report A - Investment Portfolio B - Supplemental Portfolio Analysis Action ByDate Action ResultVer. City Council8/2/20161 Subject: Treasurer's Investment Report for the Quarter ending March 31, 2016 Accept the Treasurer's Investment Report for the Quarter ending March 31, 2016 CITY OF CUPERTINO Printed on 7/27/2016Page 1 of 1 powered by Legistar™191 ADMINISTRATIVE SERVICES DEPARTMENT CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3220 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: August 2, 2016 Subject Treasurer’s Investment Report for Quarter Ending March 31, 2016 Recommended Action Accept the report Discussion and Fiscal Impact The attached slides and investment portfolio listing comprise the Treasurer’s Investment Report. Together they show the composition of the portfolio; total portfolio yield in comparison to the Local Agency Investment Fund (LAIF), the 1-year Treasury, and the 2-year Treasury; diversification within the government agency securities; and portfolio compliance with the City’s Investment Policy. For quarter ending March 31, 2016, the market value of the City’s portfolio total $122.8 million which is $7.9 million higher than last quarter. The portfolio’s average yield was 0.70% which is an increase from its 0.68% yield of the previous quarter ending December 31, 2015. The average length to maturity decreased from 0.97 to 0.92 years. The LAIF yield remained flat at 0.38%. LAIF’s balance was $38.6 million which is in compliance with the City Investment Policy and state code. LAIF’s same- or next-day liquidity insures that the City is able to pay its obligations for the next six months and also provides strong liquidity in the short, intermediate, and long-term horizons. Market values on individual securities in the investment portfolio are provided by Wells Fargo Bank Institutional Trust Services using valuations from Interactive Data Pricing and Reference Data, Inc. _____________________________________ Prepared by: Lisa Taitano, Deputy City Treasurer Reviewed by: Kristina Alfaro, City Treasurer Approved by: David Brandt, City Manager Attachments: A – Investment Portfolio B – Supplemental Portfolio Analysis 192 City of Cupertino Investment Portfolio March 31, 2016 ACTIVITY DATE COUPON ADJUSTEDMATURITYMARKETUNREALIZED PURCHASEMATURITY DESCRIPTION RATEYTMCOST VALUEVALUEPROFIT/LOSS SECURITIES MATURED 02/25/1403/15/16Agency notes - FNMA 2.25%0.37%- 3,000,000 01/21/1403/15/16US Treasury Note 0.38%0.43%- 1,000,000 SECURITIES PURCHASED 03/18/1603/02/17US Treasury Note 0.00%0.69%993,654 1,000,000 994,860 1,206 03/18/1602/28/18US Treasury Note 0.75%0.98%1,991,410 2,000,000 2,000,460 9,050 03/28/1602/28/18Agency notes - FHLB 1.09%1.09%2,000,000 2,000,000 2,002,480 2,480 03/30/1612/30/19Agency notes - FHLMC 1.50%1.50%3,000,000 3,000,000 3,009,840 9,840 CITY PORTFOLIO CASH 03/31/16Wells Fargo - Cash - - - 03/31/16 Wells Fargo - Workers Comp Checking 24,582 24,582 24,582 03/31/16 Wells Fargo - Regular Checking 76,495 76,495 76,495 03/31/16 Wells Fargo - Repurchase Agreements 0.02%0.02%8,809,500 8,809,500 8,809,500 8,910,577 8,910,577 8,910,577 LAIF 03/31/16 LAIF - State Pool 0.38%0.38%38,578,716 38,578,716 38,578,716 MONEY MARKET FUNDS 03/31/16 Wells Fargo Advantage 100% Treasury 0.00%0.00%21,025 21,025 21,025 21,025 21,025 21,025 GOVERNMENT AGENCY NOTES 01/21/1405/13/16Agency notes - FHLMC 0.50%0.50%1,000,000 1,000,000 1,000,170 170 06/23/1406/10/16Agency notes - FHLB 2.13%0.51%3,009,344 3,000,000 3,009,630 286 02/25/1406/17/16Agency notes - FFCB 0.52%0.45%3,000,447 3,000,000 3,002,160 1,713 01/21/1407/05/16Agency notes - FNMA 0.38%0.51%999,644 1,000,000 999,740 96 12/31/1412/09/16Agency notes - FHLB 1.63%0.70%3,019,012 3,000,000 3,020,580 1,568 09/30/1403/08/17Agency notes - FHLMC 1.00%0.84%3,004,577 3,000,000 3,009,180 4,603 12/31/1403/10/17Agency notes - FHLB 0.88%0.81%3,001,922 3,000,000 3,006,210 4,288 07/07/1407/07/17Agency notes - FHLMC 1.00%1.00%2,993,277 3,000,000 3,012,000 18,723 10/03/1409/22/17Agency notes - FFCB 1.13%1.12%3,000,216 3,000,000 3,016,710 16,494 12/31/1412/18/17Agency notes - FFCB 1.13%1.14%999,815 1,000,000 1,005,900 6,085 09/30/1401/12/18Agency notes - FHLMC 0.75%1.26%991,111 1,000,000 999,650 8,539 03/28/1602/28/18Agency notes - FHLB 1.09%1.09%2,000,000 2,000,000 1,001,490 (998,510) 09/30/1403/07/18Agency notes - FHLMC 0.88%1.32%991,611 1,000,000 2,012,740 1,021,129 03/30/1503/12/18Agency notes - FFCB 1.13%0.95%2,006,688 2,000,000 2,002,480 (4,208) 04/02/1504/02/18Agency notes - FFCB 1.00%0.98%3,001,182 3,000,000 3,010,860 9,678 05/11/1505/11/18Agency notes - FFCB 1.03%1.08%1,997,847 2,000,000 2,008,700 10,853 07/23/1406/08/18Agency notes - FHLB 1.25%1.39%2,991,020 3,000,000 3,024,930 33,910 05/07/1508/07/18Agency notes - FHLB 1.05%1.13%1,996,226 2,000,000 2,006,320 10,094 05/27/1512/27/18Agency notes - FNMA 1.38%1.38%2,000,000 2,000,000 2,002,920 2,920 05/07/1502/27/19Agency notes - FNMA 1.68%1.30%1,010,733 1,000,000 1,020,450 9,717 10/16/1509/13/19Agency notes - FHLB 2.00%1.21%2,052,983 2,000,000 2,064,960 11,977 05/27/1511/27/19Agency notes - FNMA 1.63%1.38%2,000,000 2,000,000 2,003,380 3,380 03/30/1612/30/19Agency notes - FHLMC 1.50%1.50%3,000,000 3,000,000 3,009,840 9,840 50,067,656 50,000,000 50,251,000 183,344 US TREASURY SECURITIES 01/21/1404/15/16US Treasury Note 0.25%0.46%999,914 1,000,000 1,000,010 96 02/25/1405/31/16US Treasury Note 1.75%0.42%3,006,621 3,000,000 3,007,110 489 01/21/14 06/15/16US Treasury Note 0.50%0.53%999,946 1,000,000 1,000,450 504 01/21/1408/15/16US Treasury Note 0.63%0.60%1,000,091 1,000,000 1,000,890 799 04/11/1409/30/16US Treasury Note 1.00%0.57%2,004,243 2,000,000 2,005,620 1,377 04/11/1410/31/16US Treasury Note 1.00%0.62%2,004,368 2,000,000 2,006,020 1,652 04/11/1411/15/16US Treasury Note 0.63%0.64%1,999,774 2,000,000 2,001,560 1,786 04/11/1412/31/16US Treasury Note 0.88%0.70%2,002,677 2,000,000 2,004,300 1,623 03/18/1603/02/17US Treasury Note 0.00%0.69%993,654 1,000,000 994,860 1,206 06/23/1406/15/17US Treasury Note 0.88%0.95%2,997,435 3,000,000 3,007,380 9,945 07/23/1409/30/17US Treasury Note 0.63%1.08%2,979,715 3,000,000 2,996,130 16,415 03/18/1602/28/18US Treasury Note 0.75%0.98%1,991,410 2,000,000 2,000,460 9,050 05/07/1504/30/20US Treasury Note 1.38%1.54%1,986,944 2,000,000 2,020,700 33,756 24,966,790 25,000,000 25,045,490 78,700 Total Managed Portfolio 122,544,763 122,510,318 122,806,808 262,044 Average Yield 0.70% Average Length to Maturity (in years) 0.92 A 193 City of Cupertino Investment Portfolio March 31, 2016 ACTIVITY DATE COUPON ADJUSTEDMATURITYMARKETUNREALIZED PURCHASEMATURITY DESCRIPTION RATEYTMCOST VALUEVALUEPROFIT/LOSS TRUST PORTFOLIO Institutional MM AccountWells Fargo Bank Secured0.15%0.15%48,585 48,585 48,585 BOND RESERVE PORTFOLIO Bond Lease Pymt AcctGoldman Sachs Financial Sq Money Mkt 0.00%0.00%19 19 19 Bond Reserve Acct Goldman Sachs Financial Sq Money Mkt 0.00%0.00%1,588,915 1,588,915 1,588,915 Total Bond Reserve Portfolio 1,588,934 1,588,934 1,588,934 A 194 4/7/2016 1 Treasurer’s Investment Report Quarter Ending March 2016 Audit Committee Meeting April 14, 2016 Total portfolio increased from last quarter by $7.9 million, from $114.9 to $122.8 million Average maturity decreased from 0.97 years to 0.92 Average yield increased from 0.68% to 0.70% Portfolio Composition LAIF 31.48% Cash 7.27% Money Market 0.02% Agency Notes 40.86% US Treasuries 20.37% B 195 4/7/2016 2 Yield Comparison 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% Av e r a g e Y i e l d 2Y Treasury Cupertino LAIF 1Y Treasury Debt issued by federal credit agencies and fully backed by U.S. government guarantee but not its full faith and credit High credit rating ‐second only to Treasury bonds Maturity periods from 1 month to 15 years Agencies that can issue: •FHLMC ‐Federal Home Loan Mortgage Association (Freddie Mac) •FHLB ‐Federal Home Loan Bank •FNMA ‐Federal National Mortgage Association (Fannie Mae) •FFCB ‐Federal Farm Credit Bureau Agency Diversification FHLB 36.1% FHLMC 23.9% FNMA 12.0% FFCB 28.0% B 196 4/7/2016 3 Policy Compliance City of Cupertino March31, 2016 CategoryStandardComment Treasury IssuesNo limitComplies US Agencies No limitComplies Medium Term Corporate Bonds30% with A ratingComplies LAIF$50 millionComplies Money Market Funds20%Complies Maximum MaturitiesUp to 5 yearsComplies Per Issuer Max10% (except for Treasuries and Agencies)Complies Bankers Acceptances 180 days & 40%Complies Commercial Paper270 days & 25%Complies Negotiable Certificates of Deposit30%Complies Repurchase Agreements365 daysComplies Reverse Repurchase AgreementsProhibitedComplies Cash Flow –Coverage The LAIF investment is $38.6 million and yielding 21 basis points lower than the 1‐year Treasury bill. The City is able to pay its obligations for the next 6 months and overall liquidity is strong. ‐ 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 50,000,000 04 / 1 8 / 1 6 04 / 2 5 / 1 6 05 / 0 2 / 1 6 05 / 0 9 / 1 6 05 / 1 6 / 1 6 05 / 2 3 / 1 6 05 / 3 0 / 1 6 06 / 0 6 / 1 6 06 / 1 3 / 1 6 06 / 2 0 / 1 6 06 / 2 7 / 1 6 07 / 0 4 / 1 6 07 / 1 1 / 1 6 07 / 1 8 / 1 6 07 / 2 5 / 1 6 08 / 0 1 / 1 6 08 / 0 8 / 1 6 08 / 1 5 / 1 6 08 / 2 2 / 1 6 08 / 2 9 / 1 6 09 / 0 5 / 1 6 09 / 1 2 / 1 6 09 / 1 9 / 1 6 09 / 2 6 / 1 6 10 / 0 3 / 1 6 10 / 1 0 / 1 6 10 / 1 7 / 1 6 6‐Month Liquidity B 197 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1871 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:7/25/2016 City Council On agenda:Final action:8/2/2016 Title:Subject: Amendment to Silicon Valley Regional Interoperability Authority joint powers authority Sponsors: Indexes: Code sections: Attachments:Staff Report A - Proposed SVRIA JPA B - Redlined Proposed SVRIA JPA Action ByDate Action ResultVer. City Council8/2/20161 Subject:AmendmenttoSiliconValleyRegionalInteroperabilityAuthorityjointpowers authority ApproverevisionstotheSiliconValleyRegionalInteroperabilityAuthorityjointpowers authority to add a new member, the Santa Clara Valley Transportation Authority CITY OF CUPERTINO Printed on 7/27/2016Page 1 of 1 powered by Legistar™198 1 OFFICE OF THE CITY MANAGER CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3212 www.cupertino.org TELEPHONE: (408) 777-7603 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: August 2, 2016 Subject Amendment to Silicon Valley Regional Interoperability Authority joint powers authority. Recommended Action Approve revisions to the Silicon Valley Regional Interoperability Authority joint powers authority to add a new member, the Santa Clara Valley Transportation Authority. Summary The Silicon Valley Regional Interoperability Authority (SVRIA) represents the interests of all public safety agencies in Santa Clara County through its 15 municipal members. Its service area is the Santa Clara Operational Area which includes Santa Clara County’s fifteen cities and towns, and all special districts. This joint powers authority (JPA) was formed to enhance and improve communications, data sharing and other technological systems, tools and processes for protection of the public and public safety and to facilitate related local and regional cooperative efforts. On May 26, 2016, the Board of Directors of the SVRIA reviewed and recommended changes to the JPA to add the Valley Transportation Authority (VTA) as a voting member of the Board of Directors. These changes were based upon input from the Working Committee, City Attorneys, City Managers, County Administrator, and VTA as well as direction from the SVRIA Board. In the summer of 2015, VTA entered into a Memorandum of Understanding (MOU) with the SVRIA to become a participant in the Silicon Valley Regional Communication System (SVRCS). As part of their request, VTA agreed to share the costs of SVRCS. In addition, VTA required that they receive two seats on the Board of Directors of SVRIA. One of VTA’s seats will be an elected member of VTA’s Board or of its Policy Committee. The second Board seat will be designated for the VTA’s General Manager or designee. VTA brings approximately 2000 new users into the SVRCS. This would make VTA the third largest member in SVRIA, after the City of San Jose and Santa Clara County. In addition, VTA will make proportionate capital payments to the SVRCS in an amount totaling approximately $5,500,000 over three years. Starting in FY 2018-19, VTA would begin making annual operations and maintenance payments in excess of $700,000. By adding this additional 199 2 Member, all other Member dues will be reduced. VTA has requested two Board seats. This is proportionate with VTA’s size and status as the third largest Member of SVRIA. The JPA requires that any changes to the JPA be approved unanimously. Thus, these changes will require approval every City and the County Council. The changes recommended by the SVRIA Board of Directors reflect VTA’s requests and those of the Working Committee, County Administrator and City Managers. Any additional changes at this time would require the approval of the Working Committee and Board of Directors. This would substantially delay VTA’s entry onto the Board and SVRIA. SVRIA’s goal is to complete the review and approval by all current Members by September 1, 2016. The proposed changes are summarized below. 1. Cover page change made to reflect the Restatement Date to be filled in following unanimous approval of all Members of SVRIA. 2. Page 1, first paragraph, original Effective Date is described by including the original date of adoption of the JPA document in November, 2009. 3. Page 1, first paragraph, Restatement Date is included as the date of unanimous approval by all Members of SVRIA. 4. Page 1, Recital H added to explain that the changes made are based upon the request of VTA. 5. Page 2, Section 1.9, the definition of Members is expanded to include the Santa Clara Valley Transportation Authority (VTA). 6. Page 3, Section 1.12 added to define Restatement Date as the date the JPA Restatement is unanimously approved by all of the Member Agencies. 7. Page 6, Section 3.5 was amended to correct a reference to Section 3.3 that should have been listed as Section 3.4. 8. Page 6, Section 4 Members is expanded to include VTA as of the Restatement Date. 9. Page 7, paragraph 5 amended to reflect the increase in total Board of Directors from nine to eleven. 10. Page 8, paragraph 5.1.8 is added to reflect the addition of two new Directors by VTA. Both new directors will be appointed by the VTA’s Board of Directors. One Director will be VTA General Manager or his or her designee of an Executive Level Staff Member and one Director will be an elected member of the VTA Board of Directors or Policy Advisory Committee from a City or Town that does not have a current member on the Board of Directors of SVRIA. 11. Page 8, Section 5.1.8, addition of last sentence of paragraph of: “Future Directors appointed to any seat may not be from the cities or town already represented by the VTA Directors.” This requested change was made to make clear that any future Director appointment would not cause the sitting VTA Director to need to resign as any future appointment would need to be from a City not already on the Board. 12. Page 8, Paragraph under Section 5.1.8, addition of the following sentence: “If a Di rector shall cease to be an employee of VTA, his or her seat shall be deemed vacant.” The 200 3 rationale is that if the VTA employee Director is no longer employed by VTA he or she can longer be a SVRIA Director. 13. Page 8, Paragraph following Section 5.1.8 has had a provision added to reflect that one of the Board Members from VTA will be an employee of VTA. 14. Page 8, paragraph 5.2, the increase in the Board of Director’s quorum from 5 to 6 is listed. 15. Page 9, Section 5.5 has been amended to describe the procedure for Working Committee review of Board of Director’s Bylaw amendments. 16. Page 13, Section 7.6 has been amended to include a requirement for VTA to pay $13,157 within 30 days after the Restatement Date. 17. Page 11, paragraph 6.9.1.9 memorializes the already approved addition of two Committee Members from the VTA to the Working Committee. 18. Page 12, paragraph 6.9.3, this shows the increase in the quorum of the Working Committee from 6 to 7. 19. Page 14, Section 7.8.1 a provision was added as follows: “Notwithstanding the foregoing, on or after the Restatement Date, the Working Committee shall commission or obtain a cost allocation study which considers usage, overhead, and other reasonable cost factors and with that data shall propose, subject to the adoption of the Board, an allocation methodology for the VTA that is not based on population.” The intent of this change is to address a formula for VTA participation for any future project that is outside of the SVRCS. Sustainability Impact No impact. Fiscal Impact If the JPA restatement is approved by all current Members of the SVRIA and VTA completes the remaining requirements, Cupertino’s costs will be reduced given SVRCS’s fixed costs will be spread over more Members. Prepared by: Jaqui Guzmán, Assistant to the City Manager Approved for Submission by: David Brandt, City Manager Attachments: A – Proposed SVRIA JPA B – Redlined copy of proposed SVRIA JPA 201 RD:SSG JOINT POWERS AGREEMENT FOR THE SILICON VALLEY REGIONAL INTEROPERABILITY AUTHORITY Restatement __________, 2016 202 RD:SSG 2 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 THIS JOINT POWERS AGREEMENT FOR THE SILICON VALLEY REGIONAL INTEROPERABILITY AUTHORITY (the “Agreement”) originally entered into as of November 2009, (“Effective Date”) by and among the public agencies executing this Agreement (collectively, “Members” and individually, “Member”) and restated as of this __ day of ___________2016 (“Restatement Date”) RECITALS A. WHEREAS, in 2001, the Cities of Campbell, Cupertino, Gilroy, Los Altos, Milpitas, Monte Sereno, Morgan Hill, Mountain View, Palo Alto, Santa Clara, San Jose, Saratoga, and Sunnyvale; the Towns of Los Gatos and Los Altos Hills; the South Santa Clara County Fire District; the County of Santa Clara; San Jose State University; and the Santa Clara Valley Water District (collectively, the “Network Participants”) entered into an agreement to exercise their joint contracting and purchasing powers pursuant to Government Code Section 6502 (the “Joint Funding Agreement”), so as to jointly hire consultants for the conceptual design and implementation strategy for an interoperable communications network, to jointly purchase a radio and data communications system or network to provide interoperability for the Network Participants, to integrate this system or network with other nearby regional public safety communications systems, to participate in regional interoperability projects, to jointly fund activities and projects related to interoperability; and to jointly apply for grants and funding to facilitate the accomplishment of these goals; B. WHEREAS, the campaign to accomplish the above goals came to be known as the Silicon Valley Regional Interoperability Project (“SVRIP”); C. WHEREAS, the SVRIP has been very successful but many new projects and opportunities have arisen and the joint exercise of powers under the Joint Funding Agreement is no longer sufficient to address the expanded opportunities and objectives of the SVRIP; D. WHEREAS, the undersigned desire to create an independent joint powers authority to implement and operate the SVRIP and other projects, and to formally articulate the goals and purposes of the Authority; E. WHEREAS, a SVRIP Executive Director, employed by the City of San Jose consistent with the Joint Funding Agreement, has been appointed by the SVRIP steering committee to assist in the formation and operation of the Authority; F. WHEREAS, pursuant to the Joint Exercise of Powers Act, Title 1, Division 7, Chapter 5, of the California Government Code, Government Code Section 6500 et seq., two or more public agencies may by agreement jointly exercise any power common to the contracting agencies; and G. WHEREAS, the Members have determined that the public interest will be served by the joint exercise of their common powers through this Agreement and the creation of a joint powers authority for the purposes described herein; and. H. Whereas, the Santa Clara Valley Transportation Authority has requested to become a Member of the Joint Powers Authority and the Board of Directors 203 RD:SSG 3 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 desires to include their membership in an amendment of the Joint Powers Agreement. NOW THEREFORE, in consideration of the promises, terms, conditions, and covenants contained herein, the Members agree as follows: ARTICLE 1 – DEFINITIONS 1. Certain terms used in this Agreement shall be defined as follows: 1.1. "Agency" or “Public Agency” shall have the meaning provided in Government Code Section 6500. 1.2. "Agreement" shall mean this Agreement that establishes the Silicon Valley Regional Interoperability Authority. 1.3. “Annual Operating Costs” shall mean the day to day expenses of the Authority (other than systems maintenance expenses) which shall include without limitation, personnel (except systems maintenance personnel), overhead, legal and accounting services, and similar costs for the fiscal year; as such term may be further defined in the policies of the Authority 1.4. “Annual Systems Maintenance Costs” shall mean consulting and maintenance services for existing hardware and software; systems maintenance personnel costs; system site/facility maintenance; parts, software/firmware, labor and equipment for regular maintenance; and noncapital replacements for the fiscal year; as such term may be further defined in the policies of the Authority. 1.5. "Authority" shall mean the Silicon Valley Regional Interoperability Authority. 1.6. "Board" shall mean the Board of Directors which is the governing body of the Silicon Valley Regional Interoperability Authority. 1.7. "Central County Agencies" shall include the City of Santa Clara, the City of Sunnyvale, and the City of Milpitas. 1.8. “Overhead” shall mean the Authority’s ongoing necessary administrative costs (such as system site/facility rent, office rent, utilities, office supplies, and insurance) which are not separately budgeted as part of a specific project, program, or service. 1.9. "Members" shall mean the public agencies which are signatories to this Agreement prior to the Effective Date. Unless otherwise indicated, actions or approvals of a Member are deemed to be those of the legislative body of the Member, plus the addition of the Santa Clara Valley Transportation Authority (“VTA”) as of the Restatement Date. 1.10. "Multiple Agency Directorship" shall mean any seat on the Board of Directors which represents more than one Member. 204 RD:SSG 4 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 1.11. "Northwest County Agencies" shall include the City of Mountain View, the City of Palo Alto, the City of Los Altos and the Town of Los Altos Hills. 1.12. Restatement Date shall mean the date that this Agreement is formally unanimously agreed to by all of the Member Agencies. 1.13. “Smaller Member” shall mean any Member whose population is less than 15,000. 1.14. "South County Agencies" shall include the City of Gilroy and the City of Morgan Hill. 1.15. "Southwest County Agencies" shall include the City of Cupertino, the City of Campbell, the City of Saratoga, the Town of Los Gatos and the City of Monte Sereno. 1.16. "Working Committee" shall mean the committee described in Article 6 of this Agreement. ARTICLE 2 – CREATION AND PURPOSES 2. The Silicon Valley Regional Interoperability Authority is created as described in this Article. 2.1. Creation of Authority and Jurisdiction. Pursuant to the Joint Exercise of Powers Act, the Members hereby create the Silicon Valley Regional Interoperability Authority, a public entity separate and distinct from each of the Members, to exercise the powers common to the Members and as otherwise granted by the Joint Exercise of Powers Act. The jurisdiction of the Authority shall be all territory within the geographic boundaries of the Members; however the Authority may undertake any action outside such geographic boundaries as is necessary or incidental to the accomplishment of its purposes. 2.2. Purpose of Authority. The purpose of the Authority is to enhance and improve communications, data sharing and other technological systems, tools and processes for protection of the public and public safety and to facilitate related local and regional cooperative efforts. 2.3. Purpose of Agreement. The purpose of this Agreement is to create the Authority; to facilitate the implementation of the Authority’s projects, systems and services; to provide for the Authority’s acquisition of real, personal and intangible property, to provide for the Authority’s administration, planning, design, financing, regulation, permitting, environmental evaluation, public outreach, construction, operation, and maintenance of the Authority’s projects, systems and services; and to provide for any necessary or convenient related support services. 205 RD:SSG 5 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 ARTICLE 3 – POWERS 3. The Authority shall have all powers necessary or reasonably convenient to carry out the purposes herein, subject to the limitations in this Article. 3.1. The Authority shall have all powers necessary or reasonably convenient to carry out the purposes herein, including, but not limited to, the following powers: 3.1.1. To obtain and secure funding from any and all available public and private sources including local, state, and federal government, including but not limited to, bond issuances, lease purchase agreements, grants, public and private contributions, public and private loans, and other funds; 3.1.2. To manage and operate any projects, systems, and services transferred or assigned to the Authority and fulfill any existing obligations incurred under the Joint Funding Agreement that are transferred or assigned to the Authority; 3.1.3. To plan, design, finance, acquire, construct, operate, regulate, and maintain systems, equipment, facilities, buildings, structures, software, databases, and improvements; 3.1.4. To lease real, personal and intangible property; 3.1.5. To acquire, hold, or dispose of real, personal or intangible property by negotiation, dedication or eminent domain; 3.1.6. To own, lease, sublease, acquire, operate, maintain and dispose of materials, supplies, and equipment of all types including, but not limited to intangible property such as radio frequencies; 3.1.7. To conduct studies, tests, evaluations, investigations, and similar activities; 3.1.8. To develop and/or adopt standards and specifications; 3.1.9. To obtain permits, rights, licenses and approvals, including FCC licenses; 3.1.10. To enter into agreements; 3.1.11. To contract for services from Members, including but not limited to in-kind services; 3.1.12. To employ consultants, contractors, and staff and to adopt personnel rules and regulations; 3.1.13. To adopt bylaws, rules and regulations; 3.1.14. To delegate certain powers; 3.1.15. To acquire and maintain insurance of all types; 3.1.16. To accept, hold, invest, manage, and expend monies pursuant to the Joint Exercise of Powers Act; 206 RD:SSG 6 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 3.1.17. To work with elected officials and local, regional, state and federal agencies, including joint powers agencies and consortia, to pursue funding, enter agreements, and otherwise act to carry out the purposes of the Authority; 3.1.18. To incur debts, liabilities or obligations, provided that no debt, liability, or obligation shall constitute a debt, liability or obligation of the Members, either jointly or severally; 3.1.19. To charge for services, programs, and/or system use by means of subscriber fees or similar charges; 3.1.20. Subject to applicable legal authority, to cause assessments, fees or charges to be levied in accordance with applicable State and Federal law; 3.1.21. To issue bonds and sell or lease any type of real or personal property for purposes of debt financing; 3.1.22. To sue and be sued; 3.1.23. To conduct public outreach and education; 3.1.24. To participate in pilot and demonstration projects; 3.1.25. To reimburse Authority officers, employees and officials for expenses incurred as permitted by law; and 3.1.26. To exercise all powers incidental to the foregoing. 3.1.27. In addition to those powers common to each of the members and the powers conferred by the Joint Exercise of Powers Act, the Authority shall have those powers that may be conferred upon it by subsequently enacted legislation. 3.2. Limitation on Eminent Domain Power. The Authority’s power of eminent domain shall be exercised to acquire real property only in the manner prescribed by the California Code of Civil Procedure, including the requirements of Sections 1245.230 and 1245.240 of the Code of Civil Procedure (as such statutes and requirements may be amended) which provide that prior to the exercise of such power the Board adopt, by a 2/3 vote of the entire Board, a resolution finding that (1) the public interest and necessity require the proposed project; (2) the proposed project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury; and (3) the property described in the resolution is necessary for the proposed project. Further, the Authority shall not exercise such power in the jurisdiction of a municipal or county Member in absence of a resolution approved by a majority of the Member’s governing body evidencing the Member’s consent to the Authority’s exercise of eminent domain. 3.3. No Authority Taxing Power. The Authority shall not exercise any power it possesses to impose taxes on the public, although it may receive the proceeds of taxes imposed by other entities. 207 RD:SSG 7 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 3.4. Restriction on Exercise of Powers. Pursuant to Section 6509 of the Joint Exercise of Powers Act, the Authority has designated a general law city as the Member for determination of the restrictions upon the Authority in exercising the common powers under this Agreement and the City of Cupertino shall serve as such Member. In the event that the City of Cupertino ceases to be a Member, the Board may designate by resolution another general law city Member as the Member for determination of the restrictions upon the Authority in exercising the common powers. 3.5. Unless expressly provided to the contrary herein, the Authority does not intend, by virtue of Section 3.4 or this Agreement, to subject itself to the internal policies or ordinances of any Member (e.g., Member purchasing or sunshine ordinances). ARTICLE 4 – MEMBERSHIP 4. The Members of the Authority are the public agencies who enter into this Agreement prior to the Effective Date plus the addition of VTA as of the Restatement Date. In the event a city or town listed as represented by a Multiple Agency Directorship does not enter into this Agreement prior to the Effective Date, the city or town will not be a Member and the listed entities in the applicable Multiple Agency Directorship will be deemed amended to reflect this fact without further action. Admission of a new Member shall not require amendment to this Agreement, however, after the Effective Date new Members may be admitted only pursuant to the procedures described in Sections 4.1 and 4.2. Members may withdraw pursuant to the procedures described in Sections 4.3. 4.1. A Public Agency may be considered for membership in the Authority after the Effective Date, by presenting an adopted resolution of the Public Agency’s governing body to the Board which includes a request to become a Member of the Authority. 4.2. The Authority shall accept new Members upon a majority affirmative vote of the entire Board, payment of any Board determined fees and charges, including a pro-rata share of organization, planning, project, and other costs and charges and upon satisfaction of any conditions established by the Board as a prerequisite for membership. At the time of admission, the Board shall adopt a resolution assigning the new Member to be represented by one of the existing Multiple Agency Directorships and amend the listed entities in the applicable Multiple Agency Directorship shall be amended to reflect this fact. Each proposed Member shall also enter into a membership agreement, upon the date of execution of which it shall be bound to the terms of this Agreement as a Member. 4.3. Withdrawal. Any Member may withdraw from this Agreement upon at least 6 (six) months written notice to the Authority and the Members. Any Director who is an elected official of the withdrawing Member and any Working Committee member who is an official, officer or employee of the withdrawing Member shall be deemed to have resigned as of the date of receipt of the written notice. 208 RD:SSG 8 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 4.3.1. A withdrawing Member shall have no interest or claim in the assets of the Authority absent an Authority approved written agreement which contains express provisions to the contrary. 4.3.2. Any withdrawing Member shall be obligated to pay an equitable share, consistent with the cost sharing principles herein, of all debts, liabilities and obligations of the Authority incurred prior to the effective date of the withdrawal; as such share is determined by the Board, as a condition precedent to such withdrawal. 4.3.3. Provided, however, that the withdrawing Member’s obligations under Section 4.3.2 shall not extend to debts, liabilities and obligations of the Authority that are secured or otherwise committed pursuant to specific project, service, or program agreements (“limited scope agreements”) that expressly omit the withdrawing Member. The specific pro-rata share of the withdrawing Member of the debts, liabilities and obligations of the Authority that are secured or otherwise committed pursuant to a limited scope agreement shall be determined by the terms of those agreements and the withdrawing Member shall comply with all withdrawal terms of such agreement. 4.3.4. A withdrawing or withdrawn Member’s payment obligation with respect to its share of debts, liabilities and obligations shall survive withdrawal of the Member and survive termination of this Agreement. 4.3.5. If a Member who is represented by a Multiple Agency Directorship withdraws, the listed entities in the applicable Multiple Agency Directorship may be amended to reflect this fact by a resolution of the Board. ARTICLE 5 – BOARD OF DIRECTORS; ORGANIZATION 5. The Authority shall be governed by a Board of Directors (the "Board") consisting of eleven (11) Directors. The term of a Director’s appointment shall be three (3) years although Directors may be appointed for a shorter term consistent with the Board’s bylaws. Directors may be appointed to multiple successive terms. An alternate shall be appointed for each Director. Alternates shall serve as Directors in the absence of their respective Directors and shall exercise all rights and privileges thereof. Notwithstanding the above, each Director and each alternate for such Director shall serve at the pleasure of the Member(s) they represent and may be removed by such Member(s) at any time without any right to notice thereof. 5.1. Directors and alternates shall be appointed by the represented Member(s) as follows and, at the time of such appointment and for the duration of such appointment, each shall be an elected official of a Member: 5.1.1. Two Directors shall represent the County of Santa Clara. 5.1.2. Two Directors shall represent the City of San Jose. 209 RD:SSG 9 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 5.1.3. One Director shall represent the Central County Agencies. 5.1.4. One Director shall represent the Northwest County Agencies. 5.1.5. One Director shall represent the South County Agencies. 5.1.6. One Director shall represent the Southwest County Agencies. 5.1.7. One Director shall be appointed by the City Selection Committee (as formed pursuant to Government Code Section 50270 et seq.) for Santa Clara County. The Director shall be an elected official of a Member who does not have an elected official on the Board at the time of appointment. The Director appointed in this manner may be removed by the Member that he or she serves. 5.1.8 Two Directors shall be appointed by the Santa Clara Valley Transportation Authority (“VTA”) Board of Directors. One Director shall be the VTA’s General Manager or his or her designated Executive Level Staff Member. The other VTA Director shall be an elected member of the VTA Board of Directors or an elected VTA Policy Advisory Committee Member. The elected Director shall not be from a City or Town with a current member on the Board of Directors of the Authority. Future Directors appointed to any seat may not be from the cities or town already represented by the VTA Directors. Each directorship described in Sections 5.1.3 through 5.1.6 shall be a Multiple Agency Directorship and an action by a majority of the represented Members shall appoint and remove such Directors. If the Director (or his or her Alternate) shall fail to attend 70% of the meetings of the Board during the fiscal year, the Directorship shall be deemed vacant and the Authority shall send notice of the vacancy to the represented Member(s). If a Director shall cease to be an elected official of a Member, his or her seat shall be deemed vacant. If a Director shall cease to be an employee of VTA, his or her seat shall be deemed vacant. If the City Selection Committee or the represented Members of a Multiple Agency Directorship fail to select a Director within ninety (90) days of a vacancy, the Board may appoint an interim Director from the elected officials of the represented Members (or of those Members who do not have an elected official on the Board in the case of the City Selection Committee’s directorship) to serve until the appointment of the new Director is completed. 5.2. Each member of the Board shall have one vote. A majority of the members of the entire Board shall constitute a quorum for the transaction of business. Except where a supermajority is required by statute, this Agreement or a 210 RD:SSG 10 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 resolution of the Board, actions of the Board shall require the affirmative vote of a majority of the entire Board (i.e., six (6) affirmative votes). 5.3. The Board shall elect annually a Chair from among its membership to preside at meetings and shall appoint a Secretary who may, but need not, be a Director. The Board may, from time to time, elect such other officers as the Board shall deem necessary or convenient to conduct the affairs of the Authority. 5.4. Meetings. The Board shall hold at least two regular meetings each year. The Board shall by resolution establish the date, hour and location at which its regular meetings shall be held. All meetings of the Board shall be held in accordance with the Ralph M. Brown Act, Government Code Section 54950 et seq. The Secretary shall cause minutes of all open meetings of the Board to be kept and shall cause a copy of the minutes to be forwarded to each Director and the Members within thirty (30) days. 5.5. Bylaws. The Board, at its initial meeting, shall adopt by resolution rules of procedure (“bylaws ”), not inconsistent with the provisions of this Agreement, to govern the conduct of its meetings. Such rules of procedure shall be in accordance with the Ralph M. Brown Act. Amendments to the Bylaws shall be reviewed by the Working Committee and comments from the Working Committee, if any, shall be presented to the Board at the time of Board consideration of the amendments. 5.6. Political Reform Act Compliance. Directors of the Board, members of the Working Committee and designated officials and employees shall comply with the Political Reform Act of 1974, Government Code Section 81000 et seq. 5.7. Executive Director. The Executive Director shall report to and take direction from the Board and shall have such authority as is specified by resolution of the Board. Where authorized by the Working Committee, the Executive Director may sign agreements, applications and other documents on behalf of the Authority. The Executive Director shall be designated as a Government Code Section 6505.1 officer who has charge of, handles, and has access to, the Authority's property and shall file with the Authority an official bond in the amount set by the Board. The premiums for such bond may be paid or reimbursed by the Authority. 5.7.1. The SVRIP Executive Director shall serve as the Authority’s Executive Director during the term of the existing employment agreement between the City of San Jose and the SVRIP Executive Director or until an Executive Director is selected pursuant to Section 6.7. 5.8. General Counsel. The Authority shall have a General Counsel. The General Counsel shall report to and take direction from the Board. The Board may designate one of the Authority's or a Member’s employees as General Counsel or contract for such legal services with an independent contractor. 5.9. Policies. The Board may, upon the recommendation of the Working Committee, adopt policies regarding personnel, conflicts of interest and other matters that are necessary or convenient for the efficient operation of the Authority. 211 RD:SSG 11 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 5.10. In addition to such duties as may be necessary or desirable for the implementation of this Agreement, the Board shall have the duty to do the following within the times specified or, if no time is specified, within a reasonable time: 5.10.1. The Board shall hold an initial Board meeting within sixty (60) days of the Effective Date, and adopt an initial budget, work plan, initial policies, and bylaws with or without a Working Committee recommendation; 5.10.2. The Board shall adopt a work plan for each fiscal year; 5.10.3. The Board shall select a General Counsel; 5.10.4. The Board shall direct the Working Committee to evaluate the need for such insurance protection as is necessary to protect the interests of the Authority and its Members, and acquire and maintain if necessary, liability, errors and omissions, property and/or other insurance. ARTICLE 6 – WORKING COMMITTEE 6. Pursuant to Government Code Section 6508, the Authority delegates certain powers related to program development, policy formulation and program implementation to the Working Committee described herein. Specifically, the Working Committee shall have the composition, powers and duties described in this Article and the implied powers necessary therefor. 6.1. The Working Committee shall ensure that a budget and work plan are timely prepared and by March 31 of each year, shall review and recommend the budget and work plan to the Board for approval. Copies of the recommended budget and work plan shall be promptly sent to the Members and the Directors. The budget shall indicate the anticipated sources of revenues and the anticipated uses of such revenues. The work plan shall outline the activities and priorities of the Authority for the following year. 6.2. The Working Committee may apply for and accept all grants and sub-grants that are consistent with the approved work plan, provided that either (a) the amount of matching funds required, if any, does not exceed that threshold provided in the approved work plan and budget, or (b) a Member or other entity volunteers to provide the matching funds without a guarantee of reimbursement. 6.3. The Working Committee may take action to implement or modify any projects, programs or services, provided the projects, programs or services are consistent with the budget and the parameters and thresholds in the work plan. Any projects, programs and services that are not consistent with the work plan and budget shall be reviewed by the Working Committee and recommended to the Board for approval. 6.4. The Working Committee shall let for bid, if required, and award all contracts consistent with the approved work plan, provided that the amount of funds 212 RD:SSG 12 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 required, if any, does not exceed that threshold provided in the approved work plan and budget. The Working Committee may approve any contract amendment, provided that the additional costs to the Authority for such amendment do not exceed the threshold provided in the Authority’s contracting policy and sufficient funds are available in the approved budget. 6.5. The Working Committee shall approve all agreements with Members and other public agencies and all other contracts that are consistent with applicable law and the approved work plan. 6.6. The Working Committee shall recommend a conflict of interest policy and personnel rules, when necessary, and any amendments of those policies to the Board for approval. 6.7. The Working Committee shall adopt policies regarding purchasing and consultants. In addition, the Working Committee may adopt policies on other issues that are necessary or convenient for the efficient operation of the Authority. 6.8. The Working Committee shall recommend an Executive Director, subject to the Board’s approval and approval of the contract between the Authority and Executive Director. 6.9. The Working Committee shall have thirteen (13) Committee Members, unless such number is increased by a resolution adopted by an affirmative vote of 2/3 of the entire Board. Each Committee Member shall serve at the pleasure of the appointing entity identified in Section 6.9.1 and may be removed at any time by that appointing entity without notice. Each Committee Member must be an official, officer, or employee of a Member, but no single Member may have more than three (3) Working Committee Members serving at one time. A Committee Member may also be removed by the Member who he or she serves upon notice to the Authority. If a Committee Member shall fail to attend 70% of the meetings of the Working Committee during the fiscal year, his or her seat shall be deemed vacant and the Authority shall send notice of the vacancy to the appointing entity. If a Committee Member shall cease to be an official, officer, or employee of a Member, his or her seat shall be deemed vacant. If an appointing entity shall fail to appoint a Committee Member within ninety (90) days of a vacancy, the Working Committee may, by majority vote, appoint an interim Committee Member from the officials, officers, or employees of the Members to serve until the appointment of the new Committee Member is completed. 6.9.1. Working Committee Members shall be appointed by the following entities (or successor entities approved pursuant to a resolution of the Working Committee) as follows: 6.9.1.1. Two City Managers appointed by the Santa Clara County/City Managers Association. 6.9.1.2. One fire chief appointed by the Santa Clara County Fire Chiefs Association. 213 RD:SSG 13 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 6.9.1.3. One police chief appointed by the Santa Clara County Police Chiefs Association. 6.9.1.4. The Santa Clara County Executive or his or her designee. 6.9.1.5. Two members appointed by the San Jose City Manager. 6.9.1.6. The Director of Communications for Santa Clara County or his or her designee. 6.9.1.7. One communications manager appointed by the Public Safety Communications Managers Association (of Santa Clara County). 6.9.1.8. Two at-large members appointed by the Working Committee. 6.9.1.9. Two Committee Members appointed by VTA’s General Manager. 6.9.2. Meetings of the Working Committee shall be conducted in compliance with the Ralph M. Brown Act. The Working Committee may adopt by resolution rules of procedure, not inconsistent with the provisions of this Agreement, to govern the conduct of its meetings. 6.9.3. A majority of the Committee Members shall constitute a quorum for the transaction of business and actions of the Working Committee shall require the affirmative vote of a majority of the entire Working Committee (i.e., as of the Effective Restatement Date, seven (7) Committee Members). ARTICLE 7 – FISCAL MATTERS AND FUNDING 7. The Authority shall comply with the fiscal and recordkeeping requirements of the Joint Exercise of Powers Act and shall take such other actions as necessary or desirable to address the fiscal, funding and budgeting needs of the Authority. 7.1. Treasurer and Auditor. The Treasurer and Auditor/Controller of Santa Clara County, respectively, are designated the Treasurer and Auditor of the Authority with the powers, duties, and responsibilities specified in the Joint Exercise of Powers Act, including, without limitation, Sections 6505 and 6505.5 thereof; provided however, the Board may revoke this designation by adopting a resolution appointing one or more of the Authority's or a Member’s officers or employees to either or both of the positions of Treasurer or Auditor as provided in Sections 6505.6 of the Joint Exercise of Powers Act. 7.2. Accounts and Reports. The Board shall establish and maintain such funds and accounts as may be required by generally accepted public accounting practice. The books and records of the Authority shall be open to inspection at all reasonable times to the Members and their respective representatives. The accounts shall be prepared and maintained by the Treasurer and/or Auditor of the Authority. The Auditor shall, within one hundred twenty (120) days after the close of each fiscal year, cause an independent audit of all financial activities for 214 RD:SSG 14 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 such fiscal year to be prepared in accordance with Government Code Section 6505. The Authority shall promptly deliver copies of the audit report to each Director and the Members. 7.3. Budget. The Board shall adopt an initial budget consistent with Section 5.10 and adopt subsequent budgets no later than April 30th of each year thereafter. Adoption of the budget shall require an affirmative vote of 2/3 of the entire Board. 7.4. Fiscal Year. The fiscal year of the Authority shall be the period from July 1st of each year to and including the following June 30th. 7.5. Debts, Liabilities and Obligations. The debts, liabilities, and obligations of the Authority shall not constitute debts, liabilities, or obligations of the Members, either jointly or severally. 7.6. Initial Contribution for Annual Operating Costs. Within thirty (30) days of the Effective Date, each Member except the City of Los Altos Hills and the City of Monte Sereno shall make an initial operating costs contribution of $13,157 to the Authority. The City of Los Altos Hills and the City of Monte Sereno shall each make an initial operating costs contribution of $8,000. Notwithstanding the above, any Member who has already contributed the identified amount pursuant to the Joint Funding Agreement for the 2009-2010 fiscal year need not make such initial operating costs contribution. Within thirty (30) days of the Restatement Date, the VTA shall make a contribution towards operating costs of $13,157 to the Authority. 7.7. Initial Contribution for Annual Maintenance Costs. Within thirty (30) days of the Effective Date, each Member shall make an initial systems maintenance contribution of the amount required pursuant to the City Manager’s Association approved maintenance assessment formula. 7.7.1. The City Managers’ Association approved maintenance assessment formula provides the following population allocation percentages: Campbell - 2.21%, Cupertino - 3.02% , Gilroy - 2.60%, Los Altos - 1.60%, Los Altos Hills - 0.48%, Los Gatos - 1.67%, Milpitas – 3.76%, Monte Sereno - 0.20% , Morgan Hill - 2.02%, Mountain View – 4.16%, Palo Alto – 3.50% , San Jose – 53.47%, Santa Clara – 6.12%, Saratoga - 1.76%, and Sunnyvale – 7.66%; and unincorporated Santa Clara County - 5.78%. 7.7.2. The following contributions are due based on the above percentages: Campbell - $3,315, Cupertino - $4,530, Gilroy - $3,900, Los Altos - $2,400, Los Altos Hills - $720, Los Gatos - $2,505, Milpitas – $5,640, Monte Sereno - $300, Morgan Hill - $3,030, Mountain View – $6,240, Palo Alto – $5,250 , San Jose – $80,205, Santa Clara – $9,180, Saratoga - $2,640, and Sunnyvale – $11,490, and unincorporated Santa Clara County - $8,670. 7.7.3. Notwithstanding the above, any Member who has already contributed the identified amount pursuant to the Joint Funding Agreement 215 RD:SSG 15 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 for the 2009-2010 fiscal year need not make such initial maintenance contribution. 7.8. Annual Operating Costs. Each year, the Working Committee shall propose projected Annual Operating Costs, which projected costs shall be adopted by the Board prior to or during approval of the budget. 7.8.1. Population Share. Half of the adopted Annual Operating Costs shall be allocated to the Members based on their respective population (the “Population Share”). Each Member shall pay a portion of the Population Share which shall be determined based on that Member’s population. The Population Share, each Member’s share of the Population Share shall be determined pursuant to the funding policy adopted by the Board at its initial meeting, as may be amended. The funding policy shall specify the accepted method for calculating each Member’s population (e.g., census data). Notwithstanding the foregoing, on or after the Restatement Date, the Working Committee shall commission or obtain a cost allocation study which considers usage, overhead, and other reasonable cost factors and with that data shall propose, subject to the adoption of the Board, an allocation methodology for the VTA that is not based on population. 7.8.2. Membership Share. Half of the adopted Annual Operating Costs shall be allocated to the Members based on the principle that Members share these costs equally, except that the Smaller Members shall pay 60% of a Full Share (the “Membership Share”). Each Member except the Smaller Members shall pay an equal full share of the adopted Annual Operating Costs (Full Share”) the Smaller Members shall pay 60% of a Full Share. The total of all shares shall be 100% of the Membership Share. A Full Share shall be calculated according to the formula implementing the above principle contained in the funding policy adopted by the Board at its initial meeting, as may be amended. 7.9. Annual Systems Maintenance Costs. Each year, the Working Committee shall propose projected Annual Systems Maintenance Costs, which projected costs shall be approved by the Board prior to or during approval of the budget. 7.9.1. Each Member shall pay a share of the adopted Annual Systems Maintenance Costs based on the principle that Members shall share systems maintenance costs based on system and service usage and that until sufficient data is available regarding Member usage, Member population data is an acceptable proxy for usage. 7.9.2. Each Member’s share of the adopted Annual Systems Maintenance Costs shall be calculated according to the formula implementing the principles in Section 7.9.1 contained in the funding policy adopted by the Board at its initial meeting, as may be amended. 7.10. Other Projects, Programs and Services. In the event that a project, program, service, or reserve fund is approved which has costs that are not 216 RD:SSG 16 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 Annual Operating Costs or the Annual Systems Maintenance Costs, the Working Committee shall either (a) develop a proposed cost allocation formula for the non-overhead costs based on the principle that costs shall be assessed to Members based on usage but, if usage data or projected usage data is not available, until sufficient data is available, Member population and entity type data are acceptable proxies for usage or (b) conduct or obtain a cost allocation study which considers usage, overhead, and other reasonable cost factors. The Board shall approve any such proposed cost allocation. 7.11. Limited Scope Agreements. Where a project or program is intentionally designed to be limited in scope such that it only provides benefits to particular Members, the Authority may enter into specific project or program agreements that provide for cost sharing by the particular affected Members; provided however, both the Board and Working Committee must approve such agreements. 7.12. Contributions on Behalf of Members. Special Districts or other parties may tender to the Authority those contributions due from a Member on that Member’s behalf. ARTICLE 8 –GENERAL PROVISIONS 8. The following general provisions apply to this Agreement. 8.1. Term and Termination. This Agreement shall be effective as of the Effective Date. It shall remain in effect until the purposes of the Authority are fully accomplished, or until terminated by the vote of a majority of the governing bodies of the Members; provided, however, that this Agreement may not be terminated, until (a) all bonds or other instruments of indebtedness issued by the Authority and the interest thereon, if any, have been paid in full or provision has been made for payment in full and (b) all outstanding obligations and liabilities of the Authority have been paid in full or provision has been made for payment in full, except as set forth in Section 8.2. 8.2. Disposition of Property upon Termination. In the event of termination of the Authority pursuant to Section 8.1 herein and where there will be a successor public entity which will carry on the functions of the Authority and assume its assets and liabilities, the assets of the Authority shall be transferred to the successor public entity. If upon termination pursuant to Section 8.1, there is no successor public entity which will carry on the functions of the Authority and assume its assets, the assets shall be returned to the Members as follows: (a) all real property and any improvements thereon shall be conveyed to the Member which owned the property prior to the formation of the Authority, and (b) all other assets shall be divided among the Members in proportion to their respective contributions during the term of this Agreement. If upon termination pursuant to Section 8.1, there is a successor public entity which will carry on some of the functions of the Authority and assume some of 217 RD:SSG 17 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 the assets, the Authority's Board shall allocate the assets between the successor public entity and the Members. 8.3. Indemnification. To the fullest extent allowed by law, the Authority shall defend, indemnify, and save harmless the Members and their governing bodies, officers, agents, and employees from all claims, losses, damages, costs, injury, and liability of every kind, nature, and description directly or indirectly arising from the performance of any of the activities of the Authority or the activities undertaken pursuant to this Agreement. 8.4. Liability of Board, Officers and Employees. The Directors, Working Committee Members, officers, and employees of the Authority shall use ordinary care and reasonable diligence in the exercise of their powers, and in the performance of their duties pursuant to this Agreement. They shall not be liable to the Members for any mistake of judgment or other action made, taken, or omitted by them in good faith, nor for any action made, taken, or omitted by any agent, employee, or independent contractor selected with reasonable care, nor for loss incurred through the investment of the Authority's funds, or failure to invest the same. 8.5. To the extent authorized by California law, no Director, Working Committee Member, officer, or employee of the Authority shall be responsible for any action made, taken, or omitted, by any other Director, Working Committee Member, officer, or employee. No Director, Working Committee Member, officer, or employee of the Authority shall be required to give a bond or other security to guarantee the faithful performance of his or her duties pursuant to this Agreement, except as required herein pursuant to Government Code Section 6505.1. The funds of the Authority shall be used to defend, indemnify, and hold harmless the Authority and each Director, Working Committee Member, officer, or employee of the Authority for actions taken in good faith and within the scope of his or her authority. Nothing herein shall limit the right of the Authority to purchase insurance to provide coverage for the foregoing indemnity. 8.6. Successors: Assignment. This Agreement shall be binding upon and shall inure to the benefit of the successors of the Members. No Member may assign any rights or obligations hereunder without the unanimous consent of the governing bodies of the other Members; provided, further, that no such assignment may be made if it would materially and adversely affect (a) the rating of bonds issued by the Authority, or (b) bondholders holding such bonds. 8.7. Amendments. This Agreement may be amended only upon approval of all the governing bodies of the Members. So long as any bonds of the Authority are outstanding and unpaid, or funds are not otherwise set aside for the payment or redemption thereof in accordance with the terms of such bonds and the documentation relating thereto, this Agreement shall not be amended, modified or otherwise revised, changed or rescinded, if, in the judgment of the Board, such action would (a) materially and adversely affect (1) the rating of bonds issued by the Authority, or (2) bondholders holding such bonds, or (b) limit or reduce the 218 RD:SSG 18 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 obligations of the Members to make, in the aggregate, the payments which are for the benefit of the owners of such bonds. 8.8. No Third Party Beneficiaries. This Agreement is intended solely for the benefit of the Authority and its Members. No third party shall be deemed a beneficiary of this Agreement or have any rights hereunder against the Authority or its Members. 8.9. Dispute Resolution. In the event that any party to this Agreement should at any time claim that another party (or parties) has breached or is breaching this Agreement, the complaining party shall file with the governing body of claimed breaching party, and with the Authority, a written claim of said breach, describing the alleged breach and otherwise giving full information respecting the same. The Board shall thereupon, at a reasonable time and place, specified by it, give each of these parties to the dispute an opportunity to be heard on the matter, and shall, upon conclusion of said hearing, give the Members a full report of its findings and recommendations. Said report, findings and recommendations shall be deemed advisory only, shall not in any way bind any of the parties to the dispute, and shall not be deemed to establish any facts, either presumptively or finally. Upon receipt of said report and recommendations, if any party to the dispute should be dissatisfied with or disagree with the same, that party shall provide written notice to the other parties within ten (10) business days, and the parties to the dispute or their representatives shall meet at a reasonable time and place to be determined by them, for the purpose of resolving their differences. No action for breach of this Agreement, and no action for any legal relief because of any such breach or alleged breach of this Agreement shall be filed or commenced by any party unless and until such party has first given to the other parties a reasonable time, after the parties to the dispute have met to resolve their differences, within which to cure any breach or alleged breach. 8.10. Notices. Any notices to Members required by this Agreement shall be delivered or mailed, U.S. first class, postage prepaid, addressed to the principal office of the respective Members. Notices under this Agreement shall be deemed given and received at the earlier of actual receipt, or the second business day following deposit in the United States mail, as required above. Any Member may amend its address for notice by notifying the other Members pursuant to this Section. 8.11. Severability. Should any part, term, or provision of this Agreement be decided by the courts to be illegal or in conflict with any law of the State of California, or otherwise be rendered unenforceable or ineffectual, the validity of the remaining portions or provisions shall not be affected thereby. 8.12. Liberal Construction. The provisions of this Agreement shall be liberally construed as necessary or reasonably convenient to achieve the purposes of the Authority. 8.13. Headings. The headings used in this Agreement are for convenience only and have no effect on the content, construction, or interpretation of the Agreement. 219 RD:SSG 19 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 8.14. Counterparts. This Agreement may be executed in any number of counterparts, and by different parties in separate counterparts, each of which, when executed and delivered, shall be deemed to be an original and all of which counterparts taken together shall constitute but one and the same instrument. 8.15. Non-Waiver. No waiver of the breach or default of any of the covenants, agreements, restrictions, or conditions of this Agreement by any Member shall be construed to be a waiver of any succeeding breach of the same or other covenants, agreements, restrictions, or conditions of this Agreement. No delay or omission of exercising any right, power or remedy in the event of breach or default shall be construed as a waiver thereof, or acquiescence therein, or be construed as a waiver of a variation of any of the terms of this Agreement or any applicable agreement. 8.16. Agreement Complete. The foregoing constitutes the full and complete Agreement of the parties. There are no oral understandings or agreements not set forth in writing above. Any such agreements merge into this Agreement. This document continues on the following page. 220 RD:SSG 20 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives. City of Campbell By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ City of Cupertino By: _______________________ Name: _______________________ Title: _______________________ City of Gilroy By: _______________________ Name: _______________________ Title: _______________________ City of Los Altos By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ 221 RD:SSG 21 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 Town of Los Altos Hills By: _______________________ Name: _______________________ Title: _______________________ Town of Los Gatos By: _______________________ Name: _______________________ Title: _______________________ City of Milpitas By: _______________________ Name: _______________________ Title: _______________________ City of Monte Sereno By: _______________________ Name: _______________________ Title: _______________________ City of Morgan Hill By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ 222 RD:SSG 22 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 City of Mountain View By: _______________________ Name: _______________________ Title: _______________________ City of Palo Alto By: _______________________ Name: _______________________ Title: _______________________ City of San Jose By: _______________________ Name: _______________________ Title: _______________________ City of Santa Clara By: _______________________ Name: _______________________ Title: _______________________ County of Santa Clara By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ 223 RD:SSG 23 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 City of Saratoga By: _______________________ Name: _______________________ Title: _______________________ City of Sunnyvale By: _______________________ Name: _______________________ Title: _______________________ Santa Clara Valley Transportation Authority By: _______________________ Name:_______________________ Title:_________________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ 224 RD:SSG JOINT POWERS AGREEMENT FOR THE SILICON VALLEY REGIONAL INTEROPERABILITY AUTHORITY NOVEMBER 18, 2009 Restatement __________, 2016 225 RD:SSG 1 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 THIS JOINT POWERS AGREEMENT FOR THE SILICON VALLEY REGIONAL INTEROPERABILITY AUTHORITY (the “Agreement”) isoriginally entered into as of this ____ day ofNovember ___________ 2009___, (“Effective Date”) by and among the public agencies executing this Agreement (collectively, “Members” and individually, “Member”) and restated as of this __ day of ___________2016 (“Restatement Date”). RECITALS A. WHEREAS, in 2001, the Cities of Campbell, Cupertino, Gilroy, Los Altos, Milpitas, Monte Sereno, Morgan Hill, Mountain View, Palo Alto, Santa Clara, San Jose, Saratoga, and Sunnyvale; the Towns of Los Gatos and Los Altos Hills; the South Santa Clara County Fire District; the County of Santa Clara; San Jose State University; and the Santa Clara Valley Water District (collectively, the “Network Participants”) entered into an agreement to exercise their joint contracting and purchasing powers pursuant to Government Code Section 6502 (the “Joint Funding Agreement”), so as to jointly hire consultants for the conceptual design and implementation strategy for an interoperable communications network, to jointly purchase a radio and data communications system or network to provide interoperability for the Network Participants, to integrate this system or network with other nearby regional public safety communications systems, to participate in regional interoperability projects, to jointly fund activities and projects related to interoperability; and to jointly apply for grants and funding to facilitate the accomplishment of these goals; B. WHEREAS, the campaign to accomplish the above goals came to be known as the Silicon Valley Regional Interoperability Project (“SVRIP”); C. WHEREAS, the SVRIP has been very successful but many new projects and opportunities have arisen and the joint exercise of powers under the Joint Funding Agreement is no longer sufficient to address the expanded opportunities and objectives of the SVRIP; D. WHEREAS, the undersigned desire to create an independent joint powers authority to implement and operate the SVRIP and other projects, and to formally articulate the goals and purposes of the Authority; E. WHEREAS, a SVRIP Executive Director, employed by the City of San Jose consistent with the Joint Funding Agreement, has been appointed by the SVRIP steering committee to assist in the formation and operation of the Authority; F. WHEREAS, pursuant to the Joint Exercise of Powers Act, Title 1, Division 7, Chapter 5, of the California Government Code, Government Code Section 6500 et seq., two or more public agencies may by agreement jointly exercise any power common to the contracting agencies; and G. WHEREAS, the Members have determined that the public interest will be served by the joint exercise of their common powers through this Agreement and the creation of a joint powers authority for the purposes described herein; and. H. Whereas, the Santa Clara Valley Transportation Authority has requested to become a Member of the Joint Powers Authority and the Board of Directors 226 RD:SSG 2 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 desires to include their membership in an amendment of the Joint Powers Agreement. NOW THEREFORE, in consideration of the promises, terms, conditions, and covenants contained herein, the Members agree as follows: ARTICLE 1 – DEFINITIONS 1. Certain terms used in this Agreement shall be defined as follows: 1.1. "Agency" or “Public Agency” shall have the meaning provided in Government Code Section 6500. 1.2. "Agreement" shall mean this Agreement that establishes the Silicon Valley Regional Interoperability Authority. 1.3. “Annual Operating Costs” shall mean the day to day expenses of the Authority (other than systems maintenance expenses) which shall include without limitation, personnel (except systems maintenance personnel), overhead, legal and accounting services, and similar costs for the fiscal year; as such term may be further defined in the policies of the Authority 1.4. “Annual Systems Maintenance Costs” shall mean consulting and maintenance services for existing hardware and software; systems maintenance personnel costs; system site/facility maintenance; parts, software/firmware, labor and equipment for regular maintenance; and noncapital replacements for the fiscal year; as such term may be further defined in the policies of the Authority. 1.5. "Authority" shall mean the Silicon Valley Regional Interoperability Authority. 1.6. "Board" shall mean the Board of Directors which is the governing body of the Silicon Valley Regional Interoperability Authority. 1.7. "Central County Agencies" shall include the City of Santa Clara, the City of Sunnyvale, and the City of Milpitas. 1.8. “Overhead” shall mean the Authority’s ongoing necessary administrative costs (such as system site/facility rent, office rent, utilities, office supplies, and insurance) which are not separately budgeted as part of a specific project, program, or service. 1.9. "Members" shall mean the public agencies which are signatories to this Agreement prior to the Effective Date. Unless otherwise indicated, actions or approvals of a Member are deemed to be those of the legislative body of the Member, plus the addition of the Santa Clara Valley Transportation Authority (“VTA”) as of the Restatement Date. 1.10. "Multiple Agency Directorship" shall mean any seat on the Board of Directors which represents more than one Member. 227 RD:SSG 3 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 1.11. "Northwest County Agencies" shall include the City of Mountain View, the City of Palo Alto, the City of Los Altos and the Town of Los Altos Hills. 1.11.1.12. Restatement Date shall mean the date that this Agreement is formally unanimously agreed to by all of the Member Agencies. 1.12.1.13. “Smaller Member” shall mean any Member whose population is less than 15,000. 1.13.1.14. "South County Agencies" shall include the City of Gilroy and the City of Morgan Hill. 1.14.1.15. "Southwest County Agencies" shall include the City of Cupertino, the City of Campbell, the City of Saratoga, the Town of Los Gatos and the City of Monte Sereno. 1.15.1.16. "Working Committee" shall mean the committee described in Article 6 of this Agreement. ARTICLE 2 – CREATION AND PURPOSES 2. The Silicon Valley Regional Interoperability Authority is created as described in this Article. 2.1. Creation of Authority and Jurisdiction. Pursuant to the Joint Exercise of Powers Act, the Members hereby create the Silicon Valley Regional Interoperability Authority, a public entity separate and distinct from each of the Members, to exercise the powers common to the Members and as otherwise granted by the Joint Exercise of Powers Act. The jurisdiction of the Authority shall be all territory within the geographic boundaries of the Members; however the Authority may undertake any action outside such geographic boundaries as is necessary or incidental to the accomplishment of its purposes. 2.2. Purpose of Authority. The purpose of the Authority is to enhance and improve communications, data sharing and other technological systems, tools and processes for protection of the public and public safety and to facilitate related local and regional cooperative efforts. 2.3. Purpose of Agreement. The purpose of this Agreement is to create the Authority; to facilitate the implementation of the Authority’s projects, systems and services; to provide for the Authority’s acquisition of real, personal and intangible property, to provide for the Authority’s administration, planning, design, financing, regulation, permitting, environmental evaluation, public outreach, construction, operation, and maintenance of the Authority’s projects, systems and services; and to provide for any necessary or convenient related support services. 228 RD:SSG 4 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 ARTICLE 3 – POWERS 3. The Authority shall have all powers necessary or reasonably convenient to carry out the purposes herein, subject to the limitations in this Article. 3.1. The Authority shall have all powers necessary or reasonably convenient to carry out the purposes herein, including, but not limited to, the following powers: 3.1.1. To obtain and secure funding from any and all available public and private sources including local, state, and federal government, including but not limited to, bond issuances, lease purchase agreements, grants, public and private contributions, public and private loans, and other funds; 3.1.2. To manage and operate any projects, systems, and services transferred or assigned to the Authority and fulfill any existing obligations incurred under the Joint Funding Agreement that are transferred or assigned to the Authority; 3.1.3. To plan, design, finance, acquire, construct, operate, regulate, and maintain systems, equipment, facilities, buildings, structures, software, databases, and improvements; 3.1.4. To lease real, personal and intangible property; 3.1.5. To acquire, hold, or dispose of real, personal or intangible property by negotiation, dedication or eminent domain; 3.1.6. To own, lease, sublease, acquire, operate, maintain and dispose of materials, supplies, and equipment of all types including, but not limited to intangible property such as radio frequencies; 3.1.7. To conduct studies, tests, evaluations, investigations, and similar activities; 3.1.8. To develop and/or adopt standards and specifications; 3.1.9. To obtain permits, rights, licenses and approvals, including FCC licenses; 3.1.10. To enter into agreements; 3.1.11. To contract for services from Members, including but not limited to in-kind services; 3.1.12. To employ consultants, contractors, and staff and to adopt personnel rules and regulations; 3.1.13. To adopt bylaws, rules and regulations; 3.1.14. To delegate certain powers; 3.1.15. To acquire and maintain insurance of all types; 3.1.16. To accept, hold, invest, manage, and expend monies pursuant to the Joint Exercise of Powers Act; 229 RD:SSG 5 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 3.1.17. To work with elected officials and local, regional, state and federal agencies, including joint powers agencies and consortia, to pursue funding, enter agreements, and otherwise act to carry out the purposes of the Authority; 3.1.18. To incur debts, liabilities or obligations, provided that no debt, liability, or obligation shall constitute a debt, liability or obligation of the Members, either jointly or severally; 3.1.19. To charge for services, programs, and/or system use by means of subscriber fees or similar charges; 3.1.20. Subject to applicable legal authority, to cause assessments, fees or charges to be levied in accordance with applicable State and Federal law; 3.1.21. To issue bonds and sell or lease any type of real or personal property for purposes of debt financing; 3.1.22. To sue and be sued; 3.1.23. To conduct public outreach and education; 3.1.24. To participate in pilot and demonstration projects; 3.1.25. To reimburse Authority officers, employees and officials for expenses incurred as permitted by law; and 3.1.26. To exercise all powers incidental to the foregoing. 3.1.27. In addition to those powers common to each of the members and the powers conferred by the Joint Exercise of Powers Act, the Authority shall have those powers that may be conferred upon it by subsequently enacted legislation. 3.2. Limitation on Eminent Domain Power. The Authority’s power of eminent domain shall be exercised to acquire real property only in the manner prescribed by the California Code of Civil Procedure, including the requirements of Sections 1245.230 and 1245.240 of the Code of Civil Procedure (as such statutes and requirements may be amended) which provide that prior to the exercise of such power the Board adopt, by a 2/3 vote of the entire Board, a resolution finding that (1) the public interest and necessity require the proposed project; (2) the proposed project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury; and (3) the property described in the resolution is necessary for the proposed project. Further, the Authority shall not exercise such power in the jurisdiction of a municipal or county Member in absence of a resolution approved by a majority of the Member’s governing body evidencing the Member’s consent to the Authority’s exercise of eminent domain. 3.3. No Authority Taxing Power. The Authority shall not exercise any power it possesses to impose taxes on the public, although it may receive the proceeds of taxes imposed by other entities. 230 RD:SSG 6 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 3.4. Restriction on Exercise of Powers. Pursuant to Section 6509 of the Joint Exercise of Powers Act, the Authority has designated a general law city as the Member for determination of the restrictions upon the Authority in exercising the common powers under this Agreement and the City of Cupertino shall serve as such Member. In the event that the City of Cupertino ceases to be a Member, the Board may designate by resolution another general law city Member as the Member for determination of the restrictions upon the Authority in exercising the common powers. 3.5. Unless expressly provided to the contrary herein, the Authority does not intend, by virtue of Section 3.43 or this Agreement, to subject itself to the internal policies or ordinances of any Member (e.g., Member purchasing or sunshine ordinances). ARTICLE 4 – MEMBERSHIP 4. The Members of the Authority are the public agencies who enter into this Agreement prior to the Effective Date plus the addition of VTA as of the Restatement Date. In the event a city or town listed as represented by a Multiple Agency Directorship does not enter into this Agreement prior to the Effective Date, the city or town will not be a Member and the listed entities in the applicable Multiple Agency Directorship will be deemed amended to reflect this fact without further action. Admission of a new Member shall not require amendment to this Agreement, however, after the Effective Date new Members may be admitted only pursuant to the procedures described in Sections 4.1 and 4.2. Members may withdraw pursuant to the procedures described in Sections 4.3. 4.1. A Public Agency may be considered for membership in the Authority after the Effective Date, by presenting an adopted resolution of the Public Agency’s governing body to the Board which includes a request to become a Member of the Authority. 4.2. The Authority shall accept new Members upon a majority affirmative vote of the entire Board, payment of any Board determined fees and charges, including a pro-rata share of organization, planning, project, and other costs and charges and upon satisfaction of any conditions established by the Board as a prerequisite for membership. At the time of admission, the Board shall adopt a resolution assigning the new Member to be represented by one of the existing Multiple Agency Directorships and amend the listed entities in the applicable Multiple Agency Directorship shall be amended to reflect this fact. Each proposed Member shall also enter into a membership agreement, upon the date of execution of which it shall be bound to the terms of this Agreement as a Member. 4.3. Withdrawal. Any Member may withdraw from this Agreement upon at least 6 (six) months written notice to the Authority and the Members. Any Director who is an elected official of the withdrawing Member and any Working Committee member who is an official, officer or employee of the withdrawing Member shall be deemed to have resigned as of the date of receipt of the written notice. 231 RD:SSG 7 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 4.3.1. A withdrawing Member shall have no interest or claim in the assets of the Authority absent an Authority approved written agreement which contains express provisions to the contrary. 4.3.2. Any withdrawing Member shall be obligated to pay an equitable share, consistent with the cost sharing principles herein, of all debts, liabilities and obligations of the Authority incurred prior to the effective date of the withdrawal; as such share is determined by the Board, as a condition precedent to such withdrawal. 4.3.3. Provided, however, that the withdrawing Member’s obligations under Section 4.3.2 shall not extend to debts, liabilities and obligations of the Authority that are secured or otherwise committed pursuant to specific project, service, or program agreements (“limited scope agreements”) that expressly omit the withdrawing Member. The specific pro-rata share of the withdrawing Member of the debts, liabilities and obligations of the Authority that are secured or otherwise committed pursuant to a limited scope agreement shall be determined by the terms of those agreements and the withdrawing Member shall comply with all withdrawal terms of such agreement. 4.3.4. A withdrawing or withdrawn Member’s payment obligation with respect to its share of debts, liabilities and obligations shall survive withdrawal of the Member and survive termination of this Agreement. 4.3.5. If a Member who is represented by a Multiple Agency Directorship withdraws, the listed entities in the applicable Multiple Agency Directorship may be amended to reflect this fact by a resolution of the Board. ARTICLE 5 – BOARD OF DIRECTORS; ORGANIZATION 5. The Authority shall be governed by a Board of Directors (the "Board") consisting of eleven nine (911) Directors. The term of a Director’s appointment shall be three (3) years although Directors may be appointed for a shorter term consistent with the Board’s bylaws. Directors may be appointed to multiple successive terms. An alternate shall be appointed for each Director. Alternates shall serve as Directors in the absence of their respective Directors and shall exercise all rights and privileges thereof. Notwithstanding the above, each Director and each alternate for such Director shall serve at the pleasure of the Member(s) they represent and may be removed by such Member(s) at any time without any right to notice thereof. 5.1. Directors and alternates shall be appointed by the represented Member(s) as follows and, at the time of such appointment and for the duration of such appointment, each shall be an elected official of a Member: 5.1.1. Two Directors shall represent the County of Santa Clara. 5.1.2. Two Directors shall represent the City of San Jose. 232 RD:SSG 8 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 5.1.3. One Director shall represent the Central County Agencies. 5.1.4. One Director shall represent the Northwest County Agencies. 5.1.5. One Director shall represent the South County Agencies. 5.1.6. One Director shall represent the Southwest County Agencies. 5.1.7. One Director shall be appointed by the City Selection Committee (as formed pursuant to Government Code Section 50270 et seq.) for Santa Clara County. The Director shall be an elected official of a Member who does not have an elected official on the Board at the time of appointment. The Director appointed in this manner may be removed by the Member that he or she serves. 5.1.8 Two Directors shall be appointed by the Santa Clara Valley Transportation Authority (“VTA”) Board of Directors. One Director shall be the VTA’s General Manager or his or her designated Executive Level Staff Member. The other VTA Director shall be an elected member of the VTA Board of Directors or an elected VTA Policy Advisory Committee Member. The elected Director shall not be from a City or Town with a current member on the Board of Directors of the Authority. Future Directors appointed to any seat may not be from the cities or town already represented by the VTA Directors. Each directorship described in Sections 5.1.3 through 5.1.6 shall be a Multiple Agency Directorship and an action by a majority of the represented Members shall appoint and remove such Directors. If the Director (or his or her Alternate) shall fail to attend 70% of the meetings of the Board during the fiscal year, the Directorship shall be deemed vacant and the Authority shall send notice of the vacancy to the represented Member(s). If a Director shall cease to be an elected official of a Member, his or her seat shall be deemed vacant. If a Director shall cease to be an employee of VTA, his or her seat shall be deemed vacant. If the City Selection Committee or the represented Members of a Multiple Agency Directorship fail to select a Director within ninety (90) days of a vacancy, the Board may appoint an interim Director from the elected officials of the represented Members (or of those Members who do not have an elected official on the Board in the case of the City Selection Committee’s directorship) to serve until the appointment of the new Director is completed. 5.2. Each member of the Board shall have one vote. A majority of the members of the entire Board shall constitute a quorum for the transaction of business. Except where a supermajority is required by statute, this Agreement or a 233 RD:SSG 9 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 resolution of the Board, actions of the Board shall require the affirmative vote of a majority of the entire Board (i.e., sixfive (56) affirmative votes). 5.3. The Board shall elect annually a Chair from among its membership to preside at meetings and shall appoint a Secretary who may, but need not, be a Director. The Board may, from time to time, elect such other officers as the Board shall deem necessary or convenient to conduct the affairs of the Authority. 5.4. Meetings. The Board shall hold at least two regular meetings each year. The Board shall by resolution establish the date, hour and location at which its regular meetings shall be held. All meetings of the Board shall be held in accordance with the Ralph M. Brown Act, Government Code Section 54950 et seq. The Secretary shall cause minutes of all open meetings of the Board to be kept and shall cause a copy of the minutes to be forwarded to each Director and the Members within thirty (30) days. 5.5. Bylaws. The Board, at its initial meeting, shall adopt by resolution rules of procedure (“bylaws ”), not inconsistent with the provisions of this Agreement, to govern the conduct of its meetings. Such rules of procedure shall be in accordance with the Ralph M. Brown Act. Recommendations for amendments to the bylaws will be developed by Working Committee and forwarded to Board for consideration.Amendments to the Bylaws shall be reviewed by the Working Committee and comments from the Working Committee, if any, shall be presented to the Board at the time of Board consideration of the amendments. 5.6. Political Reform Act Compliance. Directors of the Board, members of the Working Committee and designated officials and employees shall comply with the Political Reform Act of 1974, Government Code Section 81000 et seq. 5.7. Executive Director. The Executive Director shall report to and take direction from the Board and shall have such authority as is specified by resolution of the Board. Where authorized by the Working Committee, the Executive Director may sign agreements, applications and other documents on behalf of the Authority. The Executive Director shall be designated as a Government Code Section 6505.1 officer who has charge of, handles, and has access to, the Authority's property and shall file with the Authority an official bond in the amount set by the Board. The premiums for such bond may be paid or reimbursed by the Authority. 5.7.1. The SVRIP Executive Director shall serve as the Authority’s Executive Director during the term of the existing employment agreement between the City of San Jose and the SVRIP Executive Director or until an Executive Director is selected pursuant to Section 6.7. 5.8. General Counsel. The Authority shall have a General Counsel. The General Counsel shall report to and take direction from the Board. The Board may designate one of the Authority's or a Member’s employees as General Counsel or contract for such legal services with an independent contractor. 234 RD:SSG 10 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 5.9. Policies. The Board may, upon the recommendation of the Working Committee, adopt policies regarding personnel, conflicts of interest and other matters that are necessary or convenient for the efficient operation of the Authority. 5.10. In addition to such duties as may be necessary or desirable for the implementation of this Agreement, the Board shall have the duty to do the following within the times specified or, if no time is specified, within a reasonable time: 5.10.1. The Board shall hold an initial Board meeting within sixty (60) days of the Effective Date, and adopt an initial budget, work plan, initial policies, and bylaws with or without a Working Committee recommendation; 5.10.2. The Board shall adopt a work plan for each fiscal year; 5.10.3. The Board shall select a General Counsel; 5.10.4. The Board shall direct the Working Committee to evaluate the need for such insurance protection as is necessary to protect the interests of the Authority and its Members, and acquire and maintain if necessary, liability, errors and omissions, property and/or other insurance. ARTICLE 6 – WORKING COMMITTEE 6. Pursuant to Government Code Section 6508, the Authority delegates certain powers related to program development, policy formulation and program implementation to the Working Committee described herein. Specifically, the Working Committee shall have the composition, powers and duties described in this Article and the implied powers necessary therefor. 6.1. The Working Committee shall ensure that a budget and work plan are timely prepared and by March 31 of each year, shall review and recommend the budget and work plan to the Board for approval. Copies of the recommended budget and work plan shall be promptly sent to the Members and the Directors. The budget shall indicate the anticipated sources of revenues and the anticipated uses of such revenues. The work plan shall outline the activities and priorities of the Authority for the following year. 6.2. The Working Committee may apply for and accept all grants and sub-grants that are consistent with the approved work plan, provided that either (a) the amount of matching funds required, if any, does not exceed that threshold provided in the approved work plan and budget, or (b) a Member or other entity volunteers to provide the matching funds without a guarantee of reimbursement. 6.3. The Working Committee may take action to implement or modify any projects, programs or services, provided the projects, programs or services are consistent with the budget and the parameters and thresholds in the work plan. Any projects, programs and services that are not consistent with the work plan and 235 RD:SSG 11 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 budget shall be reviewed by the Working Committee and recommended to the Board for approval. 6.4. The Working Committee shall let for bid, if required, and award all contracts consistent with the approved work plan, provided that the amount of funds required, if any, does not exceed that threshold provided in the approved work plan and budget. The Working Committee may approve any contract amendment, provided that the additional costs to the Authority for such amendment do not exceed the threshold provided in the Authority’s contracting policy and sufficient funds are available in the approved budget. 6.5. The Working Committee shall approve all agreements with Members and other public agencies and all other contracts that are consistent with applicable law and the approved work plan. 6.6. The Working Committee shall recommend a conflict of interest policy and personnel rules, when necessary, and any amendments of those policies to the Board for approval. 6.7. The Working Committee shall adopt policies regarding purchasing and consultants. In addition, the Working Committee may adopt policies on other issues that are necessary or convenient for the efficient operation of the Authority. 6.8. The Working Committee shall recommend an Executive Director, subject to the Board’s approval and approval of the contract between the Authority and Executive Director. 6.9. The Working Committee shall have thirteen eleven (113) Committee Members, unless such number is increased by a resolution adopted by an affirmative vote of 2/3 of the entire Board. Each Committee Member shall serve at the pleasure of the appointing entity identified in Section 6.9.1 and may be removed at any time by that appointing entity without notice. Each Committee Member must be an official, officer, or employee of a Member, but no single Member may have more than three (3) Working Committee Members serving at one time. A Committee Member may also be removed by the Member who he or she serves upon notice to the Authority. If a Committee Member shall fail to attend 70% of the meetings of the Working Committee during the fiscal year, his or her seat shall be deemed vacant and the Authority shall send notice of the vacancy to the appointing entity. If a Committee Member shall cease to be an official, officer, or employee of a Member, his or her seat shall be deemed vacant. If an appointing entity shall fail to appoint a Committee Member within ninety (90) days of a vacancy, the Working Committee may, by majority vote, appoint an interim Committee Member from the officials, officers, or employees of the Members to serve until the appointment of the new Committee Member is completed. 6.9.1. Working Committee Members shall be appointed by the following entities (or successor entities approved pursuant to a resolution of the Working Committee) as follows: 236 RD:SSG 12 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 6.9.1.1. Two City Managers appointed by the Santa Clara County/City Managers Association. 6.9.1.2. One fire chief appointed by the Santa Clara County Fire Chiefs Association. 6.9.1.3. One police chief appointed by the Santa Clara County Police Chiefs Association. 6.9.1.4. The Santa Clara County Executive or his or her designee. 6.9.1.5. Two members appointed by the San Jose City Manager. 6.9.1.6. The Director of Communications for Santa Clara County or his or her designee. 6.9.1.7. One communications manager appointed by the Public Safety Communications Managers Association (of Santa Clara County). 6.9.1.8. Two at-large members appointed by the Working Committee. 6.9.1.9. Two Committee Members appointed by VTA’s General Manager. 6.9.2. Meetings of the Working Committee shall be conducted in compliance with the Ralph M. Brown Act. The Working Committee may adopt by resolution rules of procedure, not inconsistent with the provisions of this Agreement, to govern the conduct of its meetings. 6.9.3. A majority of the Committee Members shall constitute a quorum for the transaction of business and actions of the Working Committee shall require the affirmative vote of a majority of the entire Working Committee (i.e., as of the Effective Restatement Date, sixseven (67) Committee Members). ARTICLE 7 – FISCAL MATTERS AND FUNDING 7. The Authority shall comply with the fiscal and recordkeeping requirements of the Joint Exercise of Powers Act and shall take such other actions as necessary or desirable to address the fiscal, funding and budgeting needs of the Authority. 7.1. Treasurer and Auditor. The Treasurer and Auditor/Controller of Santa Clara County, respectively, are designated the Treasurer and Auditor of the Authority with the powers, duties, and responsibilities specified in the Joint Exercise of Powers Act, including, without limitation, Sections 6505 and 6505.5 thereof; provided however, the Board may revoke this designation by adopting a resolution appointing one or more of the Authority's or a Member’s officers or employees to either or both of the positions of Treasurer or Auditor as provided in Sections 6505.6 of the Joint Exercise of Powers Act. 237 RD:SSG 13 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 7.2. Accounts and Reports. The Board shall establish and maintain such funds and accounts as may be required by generally accepted public accounting practice. The books and records of the Authority shall be open to inspection at all reasonable times to the Members and their respective representatives. The accounts shall be prepared and maintained by the Treasurer and/or Auditor of the Authority. The Auditor shall, within one hundred twenty (120) days after the close of each fiscal year, cause an independent audit of all financial activities for such fiscal year to be prepared in accordance with Government Code Section 6505. The Authority shall promptly deliver copies of the audit report to each Director and the Members. 7.3. Budget. The Board shall adopt an initial budget consistent with Section 5.10 and adopt subsequent budgets no later than April 30th of each year thereafter. Adoption of the budget shall require an affirmative vote of 2/3 of the entire Board. 7.4. Fiscal Year. The fiscal year of the Authority shall be the period from July 1st of each year to and including the following June 30th. 7.5. Debts, Liabilities and Obligations. The debts, liabilities, and obligations of the Authority shall not constitute debts, liabilities, or obligations of the Members, either jointly or severally. 7.6. Initial Contribution for Annual Operating Costs. Within thirty (30) days of the Effective Date, each Member except the City of Los Altos Hills and the City of Monte Sereno shall make an initial operating costs contribution of $13,157 to the Authority. The City of Los Altos Hills and the City of Monte Sereno shall each make an initial operating costs contribution of $8,000. Notwithstanding the above, any Member who has already contributed the identified amount pursuant to the Joint Funding Agreement for the 2009-2010 fiscal year need not make such initial operating costs contribution. Within thirty (30) days of the Restatement Date, the VTA shall make a contribution towards operating costs of $13,157 to the Authority. 7.7. Initial Contribution for Annual Maintenance Costs. Within thirty (30) days of the Effective Date, each Member shall make an initial systems maintenance contribution of the amount required pursuant to the City Manager’s Association approved maintenance assessment formula. 7.7.1. The City Managers’ Association approved maintenance assessment formula provides the following population allocation percentages: Campbell - 2.21%, Cupertino - 3.02% , Gilroy - 2.60%, Los Altos - 1.60%, Los Altos Hills - 0.48%, Los Gatos - 1.67%, Milpitas – 3.76%, Monte Sereno - 0.20% , Morgan Hill - 2.02%, Mountain View – 4.16%, Palo Alto – 3.50% , San Jose – 53.47%, Santa Clara – 6.12%, Saratoga - 1.76%, and Sunnyvale – 7.66%; and unincorporated Santa Clara County - 5.78%. 7.7.2. The following contributions are due based on the above percentages: Campbell - $3,315, Cupertino - $4,530, Gilroy - $3,900, Los 238 RD:SSG 14 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 Altos - $2,400, Los Altos Hills - $720, Los Gatos - $2,505, Milpitas – $5,640, Monte Sereno - $300, Morgan Hill - $3,030, Mountain View – $6,240, Palo Alto – $5,250 , San Jose – $80,205, Santa Clara – $9,180, Saratoga - $2,640, and Sunnyvale – $11,490, and unincorporated Santa Clara County - $8,670. 7.7.3. Notwithstanding the above, any Member who has already contributed the identified amount pursuant to the Joint Funding Agreement for the 2009-2010 fiscal year need not make such initial maintenance contribution. 7.8. Annual Operating Costs. Each year, the Working Committee shall propose projected Annual Operating Costs, which projected costs shall be adopted by the Board prior to or during approval of the budget. 7.8.1. Population Share. Half of the adopted Annual Operating Costs shall be allocated to the Members based on their respective population (the “Population Share”). Each Member shall pay a portion of the Population Share which shall be determined based on that Member’s population. The Population Share, each Member’s share of the Population Share shall be determined pursuant to the funding policy adopted by the Board at its initial meeting, as may be amended. The funding policy shall specify the accepted method for calculating each Member’s population (e.g., census data). Notwithstanding the foregoing, on or after the Restatement Date, the Working Committee shall commission or obtain a cost allocation study which considers usage, overhead, and other reasonable cost factors and with that data shall propose, subject to the adoption of the Board, an allocation methodology for the VTA that is not based on population. 7.8.1. 7.8.2. Membership Share. Half of the adopted Annual Operating Costs shall be allocated to the Members based on the principle that Members share these costs equally, except that the Smaller Members shall pay 60% of a Full Share (the “Membership Share”). Each Member except the Smaller Members shall pay an equal full share of the adopted Annual Operating Costs (Full Share”) the Smaller Members shall pay 60% of a Full Share. The total of all shares shall be 100% of the Membership Share. A Full Share shall be calculated according to the formula implementing the above principle contained in the funding policy adopted by the Board at its initial meeting, as may be amended. 7.9. Annual Systems Maintenance Costs. Each year, the Working Committee shall propose projected Annual Systems Maintenance Costs, which projected costs shall be approved by the Board prior to or during approval of the budget. 7.9.1. Each Member shall pay a share of the adopted Annual Systems Maintenance Costs based on the principle that Members shall share systems maintenance costs based on system and service usage and that 239 RD:SSG 15 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 until sufficient data is available regarding Member usage, Member population data is an acceptable proxy for usage. 7.9.2. Each Member’s share of the adopted Annual Systems Maintenance Costs shall be calculated according to the formula implementing the principles in Section 7.9.1 contained in the funding policy adopted by the Board at its initial meeting, as may be amended. 7.10. Other Projects, Programs and Services. In the event that a project, program, service, or reserve fund is approved which has costs that are not Annual Operating Costs or the Annual Systems Maintenance Costs, the Working Committee shall either (a) develop a proposed cost allocation formula for the non-overhead costs based on the principle that costs shall be assessed to Members based on usage but, if usage data or projected usage data is not available, until sufficient data is available, Member population and entity type data are acceptable proxies for usage or (b) conduct or obtain a cost allocation study which considers usage, overhead, and other reasonable cost factors. The Board shall approve any such proposed cost allocation. 7.11. Limited Scope Agreements. Where a project or program is intentionally designed to be limited in scope such that it only provides benefits to particular Members, the Authority may enter into specific project or program agreements that provide for cost sharing by the particular affected Members; provided however, both the Board and Working Committee must approve such agreements. 7.12. Contributions on Behalf of Members. Special Districts or other parties may tender to the Authority those contributions due from a Member on that Member’s behalf. ARTICLE 8 –GENERAL PROVISIONS 8. The following general provisions apply to this Agreement. 8.1. Term and Termination. This Agreement shall be effective as of the Effective Date. It shall remain in effect until the purposes of the Authority are fully accomplished, or until terminated by the vote of a majority of the governing bodies of the Members; provided, however, that this Agreement may not be terminated, until (a) all bonds or other instruments of indebtedness issued by the Authority and the interest thereon, if any, have been paid in full or provision has been made for payment in full and (b) all outstanding obligations and liabilities of the Authority have been paid in full or provision has been made for payment in full, except as set forth in Section 8.2. 8.2. Disposition of Property upon Termination. In the event of termination of the Authority pursuant to Section 8.1 herein and where there will be a successor public entity which will carry on the functions of the Authority and assume its assets and liabilities, the assets of the Authority shall be transferred to the successor public 240 RD:SSG 16 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 entity. If upon termination pursuant to Section 8.1, there is no successor public entity which will carry on the functions of the Authority and assume its assets, the assets shall be returned to the Members as follows: (a) all real property and any improvements thereon shall be conveyed to the Member which owned the property prior to the formation of the Authority, and (b) all other assets shall be divided among the Members in proportion to their respective contributions during the term of this Agreement. If upon termination pursuant to Section 8.1, there is a successor public entity which will carry on some of the functions of the Authority and assume some of the assets, the Authority's Board shall allocate the assets between the successor public entity and the Members. 8.3. Indemnification. To the fullest extent allowed by law, the Authority shall defend, indemnify, and save harmless the Members and their governing bodies, officers, agents, and employees from all claims, losses, damages, costs, injury, and liability of every kind, nature, and description directly or indirectly arising from the performance of any of the activities of the Authority or the activities undertaken pursuant to this Agreement. 8.4. Liability of Board, Officers and Employees. The Directors, Working Committee Members, officers, and employees of the Authority shall use ordinary care and reasonable diligence in the exercise of their powers, and in the performance of their duties pursuant to this Agreement. They shall not be liable to the Members for any mistake of judgment or other action made, taken, or omitted by them in good faith, nor for any action made, taken, or omitted by any agent, employee, or independent contractor selected with reasonable care, nor for loss incurred through the investment of the Authority's funds, or failure to invest the same. 8.5. To the extent authorized by California law, no Director, Working Committee Member, officer, or employee of the Authority shall be responsible for any action made, taken, or omitted, by any other Director, Working Committee Member, officer, or employee. No Director, Working Committee Member, officer, or employee of the Authority shall be required to give a bond or other security to guarantee the faithful performance of his or her duties pursuant to this Agreement, except as required herein pursuant to Government Code Section 6505.1. The funds of the Authority shall be used to defend, indemnify, and hold harmless the Authority and each Director, Working Committee Member, officer, or employee of the Authority for actions taken in good faith and within the scope of his or her authority. Nothing herein shall limit the right of the Authority to purchase insurance to provide coverage for the foregoing indemnity. 8.6. Successors: Assignment. This Agreement shall be binding upon and shall inure to the benefit of the successors of the Members. No Member may assign any rights or obligations hereunder without the unanimous consent of the governing bodies of the other Members; provided, further, that no such assignment may be made if it would materially and adversely affect (a) the rating of bonds issued by the Authority, or (b) bondholders holding such bonds. 241 RD:SSG 17 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 8.7. Amendments. This Agreement may be amended only upon approval of all the governing bodies of the Members. So long as any bonds of the Authority are outstanding and unpaid, or funds are not otherwise set aside for the payment or redemption thereof in accordance with the terms of such bonds and the documentation relating thereto, this Agreement shall not be amended, modified or otherwise revised, changed or rescinded, if, in the judgment of the Board, such action would (a) materially and adversely affect (1) the rating of bonds issued by the Authority, or (2) bondholders holding such bonds, or (b) limit or reduce the obligations of the Members to make, in the aggregate, the payments which are for the benefit of the owners of such bonds. 8.8. No Third Party Beneficiaries. This Agreement is intended solely for the benefit of the Authority and its Members. No third party shall be deemed a beneficiary of this Agreement or have any rights hereunder against the Authority or its Members. 8.9. Dispute Resolution. In the event that any party to this Agreement should at any time claim that another party (or parties) has breached or is breaching this Agreement, the complaining party shall file with the governing body of claimed breaching party, and with the Authority, a written claim of said breach, describing the alleged breach and otherwise giving full information respecting the same. The Board shall thereupon, at a reasonable time and place, specified by it, give each of these parties to the dispute an opportunity to be heard on the matter, and shall, upon conclusion of said hearing, give the Members a full report of its findings and recommendations. Said report, findings and recommendations shall be deemed advisory only, shall not in any way bind any of the parties to the dispute, and shall not be deemed to establish any facts, either presumptively or finally. Upon receipt of said report and recommendations, if any party to the dispute should be dissatisfied with or disagree with the same, that party shall provide written notice to the other parties within ten (10) business days, and the parties to the dispute or their representatives shall meet at a reasonable time and place to be determined by them, for the purpose of resolving their differences. No action for breach of this Agreement, and no action for any legal relief because of any such breach or alleged breach of this Agreement shall be filed or commenced by any party unless and until such party has first given to the other parties a reasonable time, after the parties to the dispute have met to resolve their differences, within which to cure any breach or alleged breach. 8.10. Notices. Any notices to Members required by this Agreement shall be delivered or mailed, U.S. first class, postage prepaid, addressed to the principal office of the respective Members. Notices under this Agreement shall be deemed given and received at the earlier of actual receipt, or the second business day following deposit in the United States mail, as required above. Any Member may amend its address for notice by notifying the other Members pursuant to this Section. 242 RD:SSG 18 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 8.11. Severability. Should any part, term, or provision of this Agreement be decided by the courts to be illegal or in conflict with any law of the State of California, or otherwise be rendered unenforceable or ineffectual, the validity of the remaining portions or provisions shall not be affected thereby. 8.12. Liberal Construction. The provisions of this Agreement shall be liberally construed as necessary or reasonably convenient to achieve the purposes of the Authority. 8.13. Headings. The headings used in this Agreement are for convenience only and have no effect on the content, construction, or interpretation of the Agreement. 8.14. Counterparts. This Agreement may be executed in any number of counterparts, and by different parties in separate counterparts, each of which, when executed and delivered, shall be deemed to be an original and all of which counterparts taken together shall constitute but one and the same instrument. 8.15. Non-Waiver. No waiver of the breach or default of any of the covenants, agreements, restrictions, or conditions of this Agreement by any Member shall be construed to be a waiver of any succeeding breach of the same or other covenants, agreements, restrictions, or conditions of this Agreement. No delay or omission of exercising any right, power or remedy in the event of breach or default shall be construed as a waiver thereof, or acquiescence therein, or be construed as a waiver of a variation of any of the terms of this Agreement or any applicable agreement. 8.16. Agreement Complete. The foregoing constitutes the full and complete Agreement of the parties. There are no oral understandings or agreements not set forth in writing above. Any such agreements merge into this Agreement. This document continues on the following page. 243 RD:SSG 19 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives. City of Campbell By: _______________________ Name: _______________________ Title: _______________________ City of Cupertino By: _______________________ Name: _______________________ Title: _______________________ City of Gilroy By: _______________________ Name: _______________________ Title: _______________________ City of Los Altos By: _______________________ Name: _______________________ Title: _______________________ Town of Los Altos Hills By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ 244 RD:SSG 20 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 Town of Los Gatos By: _______________________ Name: _______________________ Title: _______________________ City of Milpitas By: _______________________ Name: _______________________ Title: _______________________ City of Monte Sereno By: _______________________ Name: _______________________ Title: _______________________ City of Morgan Hill By: _______________________ Name: _______________________ Title: _______________________ City of Mountain View By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ 245 RD:SSG 21 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 City of Palo Alto By: _______________________ Name: _______________________ Title: _______________________ City of San Jose By: _______________________ Name: _______________________ Title: _______________________ City of Santa Clara By: _______________________ Name: _______________________ Title: _______________________ County of Santa Clara By: _______________________ Name: _______________________ Title: _______________________ City of Saratoga By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ 246 RD:SSG 22 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 City of Sunnyvale By: _______________________ Name: _______________________ Title: _______________________ Santa Clara Valley Transportation Authority By: _______________________ Name:_______________________ Title:_________________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ 247 RD:SSG 23 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 248 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1585 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:3/22/2016 City Council On agenda:Final action:8/2/2016 Title:Subject: Approval of the destruction of records from the City Clerk, City Manager, Human Resources, Public Works, and Recreation & Community Services (Quinlan Community Center and Senior Center) Departments Sponsors: Indexes: Code sections: Attachments:Staff Report A - Draft Resolution Action ByDate Action ResultVer. City Council8/2/20161 Subject:ApprovalofthedestructionofrecordsfromtheCityClerk,CityManager,Human Resources,PublicWorks,andRecreation&CommunityServices(QuinlanCommunityCenter and Senior Center) Departments AdoptResolutionNo.16-083approvingthedestructionofrecordsfromtheCityClerk,City Manager,HumanResources,PublicWorks,andRecreation&CommunityServices(Quinlan Community Center and Senior Center) Departments CITY OF CUPERTINO Printed on 7/27/2016Page 1 of 1 powered by Legistar™249 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: August 2, 2016 Subject Approval of the destruction of records from the City Clerk, City Manager, Human Resources, Public Works, and Recreation & Community Services (Quinlan Community Center and Senior Center) Departments. Recommended Action Adopt the draft resolution approving the destruction of records from the City Clerk, City Manager, Human Resources, Public Works, and Recreation & Community Services (Quinlan Community Center and Senior Center) Departments. Discussion The City Council has adopted a records retention schedule for the City of Cupertino, Resolution No. 13-094. The retention schedule determines that certain records in excess of two years old can be destroyed. The department request for permission to destroy all said records in excess of two years old as noted in the draft resolution attachment has been approved by the Department Head, City Clerk, and City Attorney. 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: A - Draft Resolution 250 RESOLUTION NO. 16- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO APPROVING DESTRUCTION OF CERTAIN RECORDS FROM THE CITY CLERK, CITY MANAGER, HUMAN RESOURCES, PUBLIC WORKS, AND RECREATION & COMMUNITY SERVICES (QUINLAN COMMUNITY CENTER AND SENIOR CENTER) DEPARTMENTS WHEREAS, the City Council did by adoption of Resolution No. 13-094 establish rules and regulations for records retention and destruction; and WHEREAS, it has been determined that certain records in excess of two years old no longer contain data of any historical or administrative significance; and WHEREAS, the department request for permission to destroy all said records in excess of two years old has been approved by the Department Head, City Attorney, and City Clerk; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cupertino authorizes destruction of the records specified in the schedule attached hereto. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 2nd day of August, 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 251 OFFICE OF THE CITY CLERK CITY HALL CUPERTINO 10300 TORRE AVENUE• CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3223 •FAX: (408) 777-3366 RECORDS DESTRUCTION AUTHORIZATION FORM The records listed on the attachment can be destroyed in accordance with the City's Records Retention Schedule. Please review the list and contact the City Clerk's office if you believe any of these records are of historical or administrative significance and should not be destroyed. Please also make sure none of the records are the subject of any claim, litigation, investigation, or audit. Please return signed form to the City Clerk's office. ===================================== ~~/JENTS HA VE BEEN REVIEWED AND APPROVED FOR DESTRUCTION V~L ~ ~ <://0 //t Department Head I Division Manager Date r /,a /r 1o ~ ,-City Clerk Date ~- 'Vr\ ~ IJl;City Attorney Date =============================================================== (To be completed after destruction has been performed -return signed form to City Clerk's office) I HEREBY CERTIFY that the items listed on the attachment have been destroyed in accordance with City policies and procedures: Employee Performing Destruction Date 252 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type City Clerk 1983-84 Miscellaneous Water Main Replacement Agreement No. 83-040 Bid Docs CC-008, 2 years 1983-1984 D City Clerk Miscellaneous Water Main Replacements Agreement No. 85-107 Bid Docs CC-008, 2 years 1985 D City Clerk Wolfe Road Median Modification- Contract for public works; Project No. 84-102. Agreement No. 84-059 Bid Docs CC-008, 2 years 1984 D City Clerk Roofing Contractors, Inc./ DBA Western Roofing Service; City Hall Re- Roofing, Project No. 84- 101 Agreement No. 84-061 Bid Docs CC-008, 2 years 1984 D City Clerk Bids for Project 83-52 Project No. Bid Docs CC-008, 2 years 1983 D 1 253 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type 83-52 City Clerk Homestead Road & Wolfe Road Traffic Signal Modification, Project No. 82-09 Agreement No. 84-062 Bid Docs CC-008, 2 years 1984 D City Clerk Pavement Restoration, Project 85-102 Agreement No. 84-066 Bid Docs CC-008, 2 years 1984 D City Clerk McClellan Road Storm Drain at Stevens Creek Blvd, Project 91-102 Agreement No. 90-034 Bid Docs CC-008, 2 years 1990 D City Clerk Jollyman Park Project, Project 91-9101 Agreement No. 90-035 Bid Docs CC-008, 2 years 1990 D City Clerk Christensen Drive Street Improvement Project 90- Agreement Bid Docs CC-008, 2 years 1990 D 2 254 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type 108 No. 90-010 City Clerk Reconstruction of curbs, gutters and sidewalks, project No. 90-102 Agreement No. 90-015 Bid Docs CC-008, 2 years 1990 D City Clerk Installation of Handicap Ramps, Project 90-4002 Agreement No. 90-016 Bid Docs CC-008, 2 years 1990 D City Clerk Viceroy Court Strom Drain, Project 90-6013 Agreement No. 90-018 Bid Docs CC-008, 2 years 1990 D City Clerk Furnishing for the Quinlan Community Agreement No. 90-003 Bid Docs CC-008, 2 years 1990 D 3 255 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type Center; Project No. 88- 2001 City Clerk Sidewalk grinding project No. 90-106 Agreement No. 90-009 Bid Docs CC-008, 2 years 1990 D City Clerk De Anza Sidewalk Installation, Project No. 89-108 Agreement No. 90-002 Bid Docs CC-008, 2 years 1990 D City Clerk Stelling Road & Stevens Creek Traffic Signal Modification, Project No. 82-05 Agreement No. 84-015 Bid Docs CC-008, 2 years 1984 D City Clerk Stevens Creek Banner, Project No. 84-10 Agreement No. 84-011 Bid Docs CC-008, 2 years 1984 D 4 256 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type City Clerk Reconstruction of curbs, gutters and sidewalks, Project 83- 14A Agreement No. 84-007 Bid Docs CC-008, 2 years 1983 D City Clerk Storm Inlet Project No. 84-06 Agreement No. 84-006 Bid Docs CC-008, 2 years 1984 D City Clerk Civic Center Parking Lot Expansion, Project No. 83-53 Agreement No. 84-005 Bid Docs CC-008, 2 years 1984 D City Clerk Foothill Blvd. Widening Project No. 80-08 Agreement No. 84-020 Bid Docs CC-008, 2 years 1984 D City Clerk Cupertino Union School District Agreement No. 84-018 Bid Docs CC-008, 2 years 1984 D 5 257 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type City Clerk Regart Road Repair, Project No. 84-07 Agreement No. 84-016 Bid Docs CC-008, 2 years 1984 D City Clerk Traffic Signal Modification, Project No. 85-04 Agreement No. 84-017 Bid Docs CC-008, 2 years 1984 D City Clerk Wolfe Road & Miller Ave Median Modification Project No. 84-11 Agreement No. 84-021 Bid Docs CC-008, 2 years 1984 D City Clerk Traffic Signal Modification Project No. 101 Agreement No. 89-145 Bid Docs CC-008, 2 years 1989 D City Clerk Stevens Creek Blvd, Improvements Orange Agreement No. 89-137 Bid Docs CC-008, 2 years 1989 D 6 258 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type Ave- Pharlap, Project No. 4022 City Clerk Street Maintenance Slurry Seal, Project No. 88-106 Agreement No. 89-131 Bid Docs CC-008, 2 years 1989 D City Clerk Pavement Restoration Project No. 89-104 Agreement No. 89-104 Bid Docs CC-008, 2 years 1989 D City Clerk Handicapped Ramp Installation Project No. 89-4002 Agreement No. 89-121 Bid Docs CC-008, 2 years 1989 D City Clerk Don & Mike’s Sweeping, Project No. 89-101 Agreement No. 89-124 Bid Docs CC-008, 2 years 1989 D 7 259 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type City Clerk Traffic Signal Modification, Project No. 5005 Agreement No. 90-026 Bid Docs CC-008, 2 years 1990 D City Clerk Traffic Signal Maintenance Project No. 8602 Agreement No. 90-024 Bid Docs CC-008, 2 years 1990 D City Clerk Annual Overlay Project No. 90-104 Agreement No. 90-020 Bid Docs CC-008, 2 years 1990 D City Clerk Street Maintenance Slurry Seal Company Project No. 90-105 Agreement No. 90-019 Bid Docs CC-008, 2 years 1990 D City Clerk Traffic Signal Emergency Vehicle Premption System Agreement No. 90-027a Unsuccessful Bids- Cupertino Electric, Inc. CC-008, 2 years 1990 D 8 260 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type Project 8602D City Clerk Glage Underground Construction, Inc.; Hillcrest/Vista Knoll Strom Drain; Project No. 83-05 Agreement No. 82-022 Bid Docs CC-008, 2 years 1982-1983 D City Clerk Miramonte Road and Stevens Canyon Storm Drain; Project No. 83- 06 Agreement No. 82-023 Bid Docs CC-008, 2 years 1982 D City Clerk Pavement Maintenance Project No. 2012-01 Agreement No. 12-091 Bid Docs CC-008, 2 years 2012 D City Clerk Spencon Construction Inc., Reconstruction of curbs, gutters, Agreement No. 12-093 Bid Docs CC-008, 2 years 2012 D 9 261 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type sidewalks, Project No. 2012-01 City Clerk 2012 STP Overlay Project Re-Bid, Project No. 12-05 Agreement No. 12-111 Bid Docs CC-008, 2 years 2012 D City Clerk Edwards & Associates, Playground Equipment and Installations Agreement No. 12-117 Bid Docs CC-008, 2 years 2012 D City Clerk Certificate of Posting (Agendas) Administrative Hearing Committee, Audit Committee, Bicycle Pedestrian Commission, City Council, Design Review Committee, Disaster Preparedness CC-036, 2 years 2013 D 10 262 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type Council, Fine Arts Commission, Environmental Review Committee, Housing Commission, Library Commission, Fiscal Strategic Plan Committee, Parks & Recreation Commission, Poet Laureate Selection Committee, Planning Commission, Public Safety Commission, Silicon Valley Regional Interoperability Authority, Fiscal Strategic Plan 11 263 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type Committee, Legislative Review Committee City Clerk Applications for Boards, Commissions or Committees - Unsuccessful Audit Committee, Bicycle Pedestrian Commission, Fine Arts Commission, Housing Commission, Library Commission, Parks & Recreation Commission, Planning Commission, Public Safety Commission CC-007; 2 years 2008-2009 D City Clerk Watkin & Bortolussi – landscape improvements on St. Crk. & Regnart Rd., Agreement No. 99-107 Bid Docs CC-008, 2 years 1999 D 12 264 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type Project No. 99-111, Notice of Completion No. 15135052 City Clerk Clean Innovations, Inc., 2011 Contractual Janitorial Services, Project No. 2011-01 Agreement No. 11-062 Bid Docs CC-008, 2 years 2011 D City Clerk Contract Street Sweeping Services, Inc., 2011 Contractual Street Sweeping Services, Project No. 2011-02 Agreement. No. 11-063 Bid Docs CC-008, 2 years 2011 D City Clerk G. Bortolotto & Company, Inc., 2011 Agreement No. 11-080 Bid Docs CC-008, 2 years 2011 D 13 265 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type Pavement Maintenance, Project No. 2011-04 City Clerk American Guard Services, Project No. 2011-03, 2011 Contractual Crossing Guard Services Agreement No. 11-083 Bid Docs CC-008, 2 years 2011 D City Clerk CRW Industries, Project No. 2010-9135 Blackberry Farm Infrastructure Upgrade Re-Bid Agreement No. 11-098 Bid Docs CC-008, 2 years 2011 D City Clerk Galedrige Construction, Project Agreement No. 11-110 Bid Docs CC-008, 2 years 2011 D 14 266 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type No. 2011-05, 2011 Various Park Paths/Parking Lot Repair & Resurfacing City Clerk Spencon Construction, Reconstruction of curbs, gutters, sidewalks, Project No. 2011-06 Agreement No. 2011-06 Bid Docs CC-008, 2 years 2011 D City Clerk Collishaw Construction, Inc., Stevens Creek Blvd. @ Highway 85 Intersection Modification Project Agreement No.86-167 Bid Docs CC-008, 2 years 1986 D 15 267 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type No. 85-07 City Clerk R. H. Wehner Concrete Construction Co., Reconstruction of Curbs, Gutters, and Sidewalks, Project No. 87-107 Agreement No.86-168 Bid Docs CC-008, 2 years 1986 D City Clerk Conexco, Pavement Restoration, Project No. 87-107 Agreement No.86-169 Bid Docs CC-008, 2 years 1986 D City Clerk Trutner Corporation, Storm Drain Project No. 87-106 (Four Locations) Agreement No. 86-173 Bid Docs CC-008, 2 years 1986 D 16 268 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type City Clerk B & B Landscaping, Landscape Projects, Project No. 87-104 Agreement No. 86-174 Bid Docs CC-008, 2 years 1986 D City Clerk Norman B. Houge, Inc., Stevens Creek Blvd between Portal and Finch Ave, Project No. 86-11 Agreement No. 86-170 Bid Docs CC-008, 2 years 1986 D City Clerk Royston Hanamotoa Alley and Abey, Hoover Park Landscape Agreement, Project No. 1004 Agreement No. 86-128 Bid Docs CC-008, 2 years 1986 D City Clerk Saratoga-Sunnyvale Road Widening Agreement No. 86-123 Bid Docs CC-008, 2 years 1986 D 17 269 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type Project No. 85-01, Traffic Signal Modification Project No. 85-06 City Clerk Raisch Construction Co., Annual Overlay Project No. 86-111 Agreement No. 86-121 Bid Docs CC-008, 2 years 1986 D City Clerk Andero Concrete, Inc., Barrier Removal, Project No. 86-04 Agreement No. 86-118 Bid Docs CC-008, 2 years 1986 D City Clerk Alonzo Printing Co., VIP Printing, Cupertino Scene Printing Agreement No. 86-009 Bid Docs CC-008, 2 years 1986 D 18 270 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type City Clerk Speedy Concrete Grinding, Sidewalk Grinding, Project No. 86-101 Agreement No. 86-005 Bid Docs CC-008, 2 years 1986 D City Clerk Calhoun Brothers, Stelling Road Extension Project No. 80-22 Agreement No. 80-038 Bid Docs CC-008, 2 years 1980 D City Clerk O'Grady Paving, Inc., Stevens Creek at Railroad Widening, Project No. 80-42 Agreement No. 80-037 Bid Docs CC-008, 2 years 1980 D City Clerk Royston, Hanamoto, Alley and Abey, Landscape Agreement, Agreement No. 80-029 Bid Docs CC-008, 2 years 1980 D 19 271 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type Monta Vista Park City Clerk Hall-Way Contracting Co., Inc., Monta Vista Park Project 79-53 Agreement No.80-029.1 Bid Docs CC-008, 2 years 1980 D City Clerk Neu Bros. Grading and Paving, Inc., Monta Vista Park Street Improvement Project No. 79-53 Agreement No.80-029.2 Bid Docs CC-008, 2 years 1980 D City Clerk Calhoun Brothers, Crescent Road Pedestrian Walk, Project 80-54 Agreement No.80-027 Bid Docs CC-008, 2 years 1980 D City Clerk Valley Slurry Seal Company, Slurry Seal, Agreement Bid Docs CC-008, 2 1986 D 20 272 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type Project No. 86-112 No. 86-138 years City Clerk Raisch Construction Company, Widening of McClellan Road, Project 4020 Agreement No. 87-044 Bid Docs CC-008, 2 years 1987 D City Clerk Raisch Construction Company, Foothill Boulevard Overlay Project No. 88-103, Resolution No. 7333 Agreement No. 87-039 Bid Docs CC-008, 2 years 1987 D City Clerk O'Grady Paving, Inc., Pavement Restoration, Project No. 88-107 Agreement No. 87-056 Bid Docs CC-008, 2 years 1987 D City Clerk Hood Corporation, Reconstruction of Agreement Bid Docs CC-008, 2 1987 D 21 273 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type Curbs, Gutters and Sidewalks, Project No. 88-101 No. 87-035 years City Clerk Andero Concrete, Inc., Barrier Removal, Project No. 4002 Agreement No. 87-030 Bid Docs CC-008, 2 years 1987 D City Clerk Wingard Engineering, Modification of Traffic Control System & Safety Lighting Homestead / Hollenbeck / Stelling, Project No. 4017 Agreement No. 87-025 Bid Docs CC-008, 2 years 1987 D City Clerk De Anza Building Maintenance, Contract Agreement No.87-045 Bid Docs CC-008, 2 years 1987 D 22 274 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type for Janitorial Services, Project No. 90-109 City Clerk Granite Rock, Project No. 2010-9136, Scenic Circle Access Agreement No. 11-008 Bid Docs CC-008, 2 years 2011 D City Clerk J.J.R. Construction, Garden Gate Sidewalk Installation, Project No. 2009-9549 Agreement No. 11-051 Bid Docs CC-008, 2 years 2011 D City Clerk Pavement Restoration Project 88-113 Agreement No. 88-026 Bid Docs CC-008, 2 years 1988 D City Clerk Slurry Seal Project 88- 116 Agreement No. 88-035 Bid Docs CC-008, 2 years 1988 D 23 275 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type City Clerk Water Main Replacement, Project No. 88-109 Agreement No. 88-036 Bid Docs CC-008, 2 years 1988 D City Clerk Traffic Signal Detector Installation, Project No. 110-996-733 Agreement No. 88-040 Bid Docs CC-008, 2 years 1988 D City Clerk Traffic Signal Modification Project No. 4024, Pruneridge & Wolfe Agreement No. 88-041 Bid Docs CC-008, 2 years 1988 D City Clerk Traffic Signal Modification, Mary Avenue and Stevens Creek Blvd, Project No. 5006 Agreement No. 88-052 Bid Docs CC-008, 2 years 1988 D 24 276 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type City Clerk Rosendin Electric, Traffic Signal Modification, Rainbow Dr & Stelling Rd., Project No. 5008 Agreement No. 88-053 Bid Docs CC-008, 2 years 1988 D City Clerk Monta Vista Asphalt Concrete Overlay Project No. 80-45 Agreement No. 80-16 Bid Docs CC-008, 2 years 1980 D City Clerk Slurry Seal, Project No. 85-101, 83-51 and 80-55 Agreement 80-34 Bid Docs CC-008, 2 years 1980-1985 D City Clerk Traffic Signal Installation at Rainbow and Stelling, Project No. 80-13 Agreement 80-017 Bid Docs CC-008, 2 years 1980 D 25 277 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type City Clerk Reconstruction of Curbs, Gutters and Sidewalks Project No. 80-31, Project No. 81- 20 and Project No. 83- 14 Agreement No. 80-019 Bid Docs CC-008, 2 years 1980-1983 D City Clerk Howard Electric, Inc., Orange Avenue - Mann Drive at Stevens Creek Boulevard, Project 82-113 Agreement No. 83-014 Bid Docs CC-008, 2years 1983 D City Clerk Rosendin Electric, Bollinger Road / De Anza Boulevard Intersection Modification, Project Agreement No. 83-013 Bid Docs CC-008, 2 years 1983 D 26 278 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type No. 80-12, Resolution No. 6076 City Clerk O'Grady Paving, Inc., Bollinger Road Improvement, Project 81-27; Kirkeby and Associates, Inc., Bollinger Road Sidewalk, Curb and Gutter, Project 81-27, Resolution No. 6095 Agreement No. 83-015 Bid Docs CC-008, 2 years 1983 D City Clerk San Jose Commercial Sweeping, Street Sweeping DPW 83-15 / Project 83-15 Agreement No. 83-016 Bid Docs CC-008, 2 years 1983 D 27 279 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type City Clerk Piazza Construction Company, Pavement Restoration, Project No. 83-21 Agreement No. 83-017 Bid Docs CC-008, 2 years 1983 D City Clerk California Consulting Contractors Inc. D.B.A Tennis & Track Builders, U.S.A., Tennis Court Resurfacing, Project No. 83-50 Agreement No. 83-018 Bid Docs CC-008, 2 years 1983 D City Clerk McClellan Ranch Barn Remodeling, Project No. 80-04, REJECTED Agreement No. 83-021 Bid Docs CC-008, 2 years 1983 D 28 280 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type City Clerk R. J. Zipse Paving Company, Byrne Avenue Closure, Project 83-22 Agreement No. 83-026 Bid Docs CC-008, 2 years 1983 D City Clerk DCE, Inc., Improvement Agreement, Tract No. 6936, Resolution No. 6131 Agreement No. 83-028 Bid Docs CC-008, 2 years 1983 D City Clerk Wattis Construction Company, Annual Overlay Project No. 83-52 Agreement No. 83-029 Bid Docs CC-008, 2 years 1983 D City Clerk Ronald and Shirley Edwards, Agreement No. 83-30 Bid Docs CC-008, 2 years 1983 D 29 281 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type Development Agreement City Clerk Howard Electric, Inc., Stevens Creek Boulevard Bicycle Detection, Project 83- 25 Agreement No. 83-031 Bid Docs CC-008, 2 years 1983 D City Clerk Westfield, Inc., Improvement Agreement, Resolution No. 7470 Agreement No. 88-013 Bid Docs CC-008, 2 years 1988 D City Clerk Fruitvale Saratoga Avenue Associates, Improvement Agreement, Resolution Agreement No. 88-013 Bid Docs CC-008, 2 years 1988 D 30 282 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type No. 7482 City Clerk Trilex Associates, Improvement Agreement, Resolution No. 7497, Tract No. 8117 Agreement No. 88-021 Bid Docs CC-008, 2 years 1988 D City Clerk George Dai, Improvement Agreement, Resolution No. 7456 Agreement No. 88-009 Bid Docs CC-008, 2 years 1988 D City Clerk Andero Concrete, Inc., Handicapped Ramp Installation, Project No. 88-4002 Agreement No. 88-025 Bid Docs CC-008, 2 years 1988 D 31 283 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type City Clerk Anza Engineering, Traffic Signal Modification and Street Improvement, Blaney Avenue and Stevens Creek Blvd., Project No. 4023 Agreement No. 88-024 Bid Docs CC-008, 2 years 1988 D City Clerk Norman B. Houge, Inc., De Anza Boulevard and Bollinger Road Street Improvement, Project 86-20A Agreement No. 88-006 Bid Docs CC-008, 2 years 1988 D City Clerk Oliver De Silva, Inc., Annual Overlay, Agreement No. 88-023 Bid Docs CC-008, 2 years 1988 D 32 284 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Clerk 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type Project 88-115 City Clerk Truck Mounted Recirculating Air Sweeper, DPW 88-111 Agreement No. 88-007 Bid Docs CC-008, 2 years 1988 D City Clerk Collishaw Construction, Inc., Varian Park, Phase II, Project No. 80-01 Agreement No. 80-013a Bid Docs CC-008, 2 years 1980 D City Clerk Robert Quatman, Incorporated, Three Oaks Park, Project No. 80-28 Agreement No. 80-13b Bid Docs CC-008, 2 years 1980 D 33 285 OFFICE OF THE CITY CLERK CITY HALL CUPERTINO 10300 TORRE AVENUE• CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3223 •FAX: (408) 777-3366 RECORDS DESTRUCTION AUTHORIZATION FORM The records listed on the attachment can be destroyed in accordance with the City's Records Retention Schedule. Please review the list and contact the City Clerk's office if you believe any of these records are of historical or administrative significance and should not be destroyed. Please also make sure none of the records are the subject of any claim, litigation, investigation, or audit. Please return signed form to the City Clerk's office. =====:======================================================================== D~TS HA VE BEEN REVIEWED AND APPROVED FOR DESTRUCTION ~ K-1--S~(( Department Head I Division Manager Date ~£dJJ-ItYCierk· ~ /·-re-I 1.c, Date ~?~A--. \ City Attorney Date (To be completed after destruction has been performed -return signed form to City Clerk's office) I HEREBY CERTIFY that the items listed on the attachment have been destroyed in accordance with City policies and procedures: City Manager 2016 Employee Performing Destruction Date Name: Lauren Sapudar 286 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: City Manager Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Department of Record Name Number Subject Retention Date Ranges Type City Manager City Manager Reports to Council 1/2/1964- 6/30/1964 CM-001, 2 years 1964 D 287 CUPERTINO OFFICE OF THE CITY CLERK CITY HALL 10300 TORRE AVENUE• CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3223 •FAX: (408) 777-3366 RECORDS DESTRUCTION AUTHORIZATION FORM The records listed on the attachment can be destroyed in accordance with the City's Records Retention Schedule. Please review the list and contact the City Clerk's office if you believe any of these records are of historical or administrative significance and should not be destroyed. Please also make sure none of the records are the subject of any claim, litigation, investigation, or audit. Please return signed form to the City Clerk's office. ================================ DOCUMENTS HA VE BEEN REVIEWED AND APPROVED FOR DESTRUCTION Date City Clerk Date Date ============================================ (To be completed after destruction has been performed -return signed form to City Clerk's office) I HEREBY CERTIFY that the items listed on the attachment have been destroyed in accordance with City policies and procedures: Human Resources DMV Pull Notices Destruction 3-2016 Employee Performing Destruction Date 288 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: Human Resources 2016 Destroyed Scanned Microfilmed Resolution authorizing destruction: Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Additional information Name Numbe r Subject Retention Date Ranges Type Human Resources DMV Pull Notices 2005 DMV Pull Notices 2005 HR-007, Until Superseded or Separated 2005 D Human Resources DMV Pull Notices 2006 DMV Pull Notices 2006 HR-007, Until Superseded or Separated 2006 D Human Resources DMV Pull Notices 2007 DMV Pull Notices 2007 HR-007, Until Superseded or Separated 2007 D Human Resources DMV Pull Notices 2008 DMV Pull Notices 2008 HR-007, Until Superseded or Separated 2008 D Human Resources DMV Pull Notices 2009 DMV Pull Notices 2009 HR-007, Until Superseded or Separated 2009 D Human Resources DMV Pull Notices 2010 DMV Pull Notices 2010 HR-007, Until Superseded or Separated 2010 D 289 CUPERTINO OFFICE OF THE CITY CLERK CITY HALL 10300 TORRE AVENUE• CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3223 • FAX: (408) 777-3366 RECORDS DESTRUCTION AUTHORIZATION FORM The records listed on the attachment can be destroyed in accordance with the City's Records Retention Schedule. Please review the list and contact the City Clerk's office if you believe any of these records are of historical or administrative significance and should not be destroyed. Please also make sure none of the records are the subject of any claim, litigation, investigation, or audit. Please return signed form to the City Clerk's office. ======================================== DOCUMENTS HAVE BEEN REVIEWED AND APPROVED FOR DESTRUCTION Department Head I Division Manager City Clerk Date Date (To be completed after destruction has been performed -return signed form to City Clerk's office) I HEREBY CERTIFY that the items listed on the attachment have been destroyed in accordance with City policies and procedures: PW-IMPRV-D-001, PW-IMPRV-D-002, PW-LD-D-008, PW-LD- D-009, PW-LD-D-010, PW-ROADS-D-001 Employee Performing Destruction Date 290 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: PW-IMPRV-D-001 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Number to be used for microfiche card Name Subject Address Date Ranges Other information Type 92,054.20 Blackberry Farm Golf Course – Property Line 2000 – 2003 F CW-009, 2 yrs D Page 1 of 1 291 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: PW-IMPRV-D-002____________ Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Number to be used for microfiche card Name Subject Address Date Ranges Other information Type 92,053.02 Cupertino Sports Center, Remodel (2001) (Project Administration) 2004 F PW-010; Comp + 10 yrs D Page 1 of 1 292 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: PW-LD-D-008 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Number to be used for microfiche card Name Subject Address Date Ranges Other information Type 51,000.00 Miscellaneous Developments (Correspondence) 1998 – 2006 F CW-009, 2 yrs D 52,174 Diehl, Don/Alma – 22751 Mercedes (Project Administration) 2001 F PW-024, Comp. + 10 yrs D 52,186 Hwu, Sui – 20569 Blossom Lane (Correspondence, Cash Receipt) 1999 F CW-007, 1 yr CW-009, 2 yrs D 52,191 Lin & Lee, 21925 Almaden Ave (Project Administration) 2000 F PW-024, Comp. + 10 yrs D 52,193 Chen, Chung Son – 21880 Alcazar Ave (Project Administration) 1999 – 2002 F PW-024, Comp. + 10 yrs D 52,195 Kang, Martha, 10334 Mira Vista (Project Administration 1999 F PW-024, Comp. + 10 yrs D 52,217 Bertrand, Michael/Cynthia – 10490 Mira Vista (Correspondence) 2005 F CW-009, 2 yrs D 52,222 Lee, Garrick – 18871 Arata Way (Project Administration) 2001 F PW-024, Comp. + 10 yrs D 52,225 Perng, Yuen-Chen, 19327 Calle De Barcelona (Project Administration) 2002 F PW-024, Comp. + 10 yrs D Page 1 of 3 293 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: PW-LD-D-008 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Number to be used for microfiche card Name Subject Address Date Ranges Other information Type 52,233 Ghazvini, Hamid – 10061 Pasadena (Correspondence) 2000 F CW-009, 2 yrs D 52,237 Webcor Builders, 20330 Stevens Creek (Correspondence) 2000 F CW-009, 2 yrs D 52,239 Hoang, Peter – 7826 Festival (Project Administration) 2000 F PW-024, Comp. + 10 yrs D 52,248 Wang, Roger – 11631 Upland Way (Correspondence) 2003 F CW-009, 2 yrs D 52,252 Fluker, Derek, San Juan Rd (Correspondence) 2001 F CW-009, 2 yrs D 52,254 Cypress Hotel (Project Administration) 2001 F PW-024, Comp. + 10 yrs D 52,260 Brown, Terry – 10146 Carmen Rd (Project Administration) 2000 F PW-024, Comp. + 10 yrs D 52,262 Kang, Martha – 10175 Orange (Project Administration) 2003 F PW-024, Comp. + 10 yrs D 52,263 Murthy, Prathima – 21470 Vai (Project Administration) 2003 F PW-024, Comp. + 10 yrs D Page 2 of 3 294 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: PW-LD-D-008 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Number to be used for microfiche card Name Subject Address Date Ranges Other information Type 52,266 Kapul, Mike – 11477 Lindy Pl. (Project Administration) 2003 F PW-024, Comp. + 10 yrs D 52,286 Summerhill Project – Imperial/Lomita (Traffic Study, Correspondence) 2001 F PW-035, 5 yrs CW-009, 2 yrs D 51,045.43 City Hall Conf. Room A&B Remodel (Project Administration) 2002 F PW-024, Comp. + 10 yrs D 51,045.44 City Hall Lobby Remodel (Project Administration) 2002 F PW-024, Comp. + 10 yrs D 51,045.42 City Hall Conf. Room C Remodel (Project Administration) 2002 F PW-024, Comp. + 10 yrs D Page 3 of 3 295 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: PW-LD-D-009 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Number to be used for microfiche card Name Subject Address Date Ranges Other information Type 52,289 Gignac, William – 10255 Hillcrest (Project Administration) 2003 F PW-024, Comp. + 10 yrs D 52,295 Canyon Heights Academy (Correspondence, Traffic Counts) 2001 F CW-009, 2 yrs PW-041, 2 yrs D 52,297 Chi Wah Wei, Mercedes Road (Correspondence) 2001 F CW-009, 2 yrs D 52,314 Bianchi, Peter (Correspondence) 2002 F CW-009, 2 yrs D 52,315 Uttarwar, Mohan – 21620 Rainbow Dr (Correspondence) 2002 F CW-009, 2 yrs D 52,322 Extended Stay America – 10745 N. DeAnza (Correspondence) 2003 F CW-009, 2 yrs D 52,325 Roohparvar, Terri – 22003 Rae Ln (Correspondence) 2002 F CW-009, 2 yrs D 52,330 Bottegas, 20775 Stevens Creek (Correspondence) 2002 F CW-009, 2 yrs D 52,331 Levy, Amnon – 11387 Lindy Pl. (Correspondence) 2002 F CW-009, 2 yrs D Page 1 of 5 296 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: PW-LD-D-009 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Number to be used for microfiche card Name Subject Address Date Ranges Other information Type 52,338 Stevens Creek Office Center, 20813- 20883 Stevens Creek (Correspondence) 2002 F CW-009, 2 yrs D 52,339.01 Civic Center Phase II (Correspondence) 2004 F CW-009, 2 yrs D 52,339.02 Civic Center Phase III (Correspondence) 2004 F CW-009, 2 yrs D 52,339.05 Civic Center Phase IV (Correspondence) 2005 F CW-009, 2 yrs D 52,343 Liu, Chao-Yue – 21831 San Fernando Ave (Correspondence) 2005 F CW-009, 2 yrs D 52,356 Rutter, Gillian & Gerrard – 10280 Phar Lap (Correspondence) 2003 F CW-009, 2 yrs D 52,359 Hodges, Mark & Mary (Correspondence) 2004 F CW-009, 2 yrs D 52,368 Maffai, Ray – 10110 Santa Clara Ave (Correspondence) 2006 F CW-009, 2 yrs D 52,369 Haraguchi, Leslie – 10104 Byrne Ave (Correspondence) 2003 F CW-009, 2 yrs D 52,374 Lee, Benjamin – 22560 Ricardo Rd (Correspondence) 2004 F CW-009, 2 yrs D 52,377 LeBeaulieu Housing, 10092 Bianchi Way (Correspondence) 2003 F CW-009, 2 yrs D Page 2 of 5 297 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: PW-LD-D-009 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Number to be used for microfiche card Name Subject Address Date Ranges Other information Type 52,379 Lam, Fred – 10690 Cordova Rd (Correspondence) 1984 F CW-009, 2 yrs D 52,382 Alexander’s Steak House, 10330 N. Wolfe (Corespondence) 2004 F CW-009, 2 yrs D 52,383 Chen, James – 21811 San Fernando Ave (Correspondence) 2004 F CW-009, 2 yrs D 52,387 Mizahi, Moti – 10725 Santa Lucia Rd (Correspondence) 2005 F CW-009, 2 yrs D 52,398.00 Lee, Belinda – 21089 Greenleaf Dr (Correspondence) 2005 F CW-009, 2 yrs D 52,403 Chang, Kenneth – 21724 Regnart Ct (Correspondence) 2004 F CW-009, 2 yrs D 52,404 Otsuka, Koji – 21972 McClellan Rd (Correspondence) 2004 F CW-009, 2 yrs D 52,408 Gera, George – 10550 DeAnza Blvd (Correspondence) 2004 F CW-009, 2 yrs D 52,427 Calabazas Toll Brothers (Correspondence) 2006 F CW-009, 2 yrs D Page 3 of 5 298 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: PW-LD-D-009 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Number to be used for microfiche card Name Subject Address Date Ranges Other information Type 52,433 Perng, Dave – 1426 S. DeAnza (Correspondence) 2005 F CW-009, 2 yrs D 52,434 Rico Residence, 22620 San Juan Rd (Correspondence) 2005 F CW-009, 2 yrs D 52,453 Tiang Residence, 10067 Bianchi (Correspondence) 2008 F CW-009, 2 yrs D 52,454 Public Storage/Tim Reeves, 20565 Valley Green Dr. (Correspondence) 2006 F CW-009, 2 yrs D 52,466 Mendelson, Moshe – 21943 Lindy Ln (Correspondence) 2007 F CW-009, 2 yrs D 52,468 Bateh, George – 22690 Stevens Creek (Correspondence) 2006 F CW-009, 2 yrs D 51,045.48 City Hall Parking Lot, Rubble Strip Speed Bumps (Correspondence) 2006 F CW-009, 2 yrs D 51,045.41 City Hall Underground Fuel Tank Replacement (Project Administration) 2001 F PW-024, Comp. + 10 yrs D 51,045.52 Code Enforcement Relocation (Correspondence) 2003 F CW-009, 2 yrs D Page 4 of 5 299 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: PW-LD-D-009 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Number to be used for microfiche card Name Subject Address Date Ranges Other information Type Page 5 of 5 300 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: PW-LD-D-010 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Number to be used for microfiche card Name Subject Address Date Ranges Other information Type 52,321.00 Yang, Alice Bee-Choo - 10660 Santa Lucia Rd. (Project Administration) 2004 F PW-024, Comp. + 10 yrs D 52,328.00 GB Estate Homes (Formerly Debcor) 10690 S. Stelling Road, 10695 & 10705 Orline Ct. (Project Administration) 2004 F PW-024, Comp. + 10 yrs D 52,351.00 The Forum - Rancho San Antonio (Project Administration) 2004 F PW-024, Comp. + 10 yrs D 52,372.00 Jiang, Joseph -10551 Santa Lucia Road (Project Administration) 2004 F PW-024, Comp. + 10 yrs D 52,435.00 Schultz Residence - 22646 San Juan Road (Project Administration) 2004 F PW-024, Comp. + 10 yrs D Page 1 of 1 301 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: PW-ROADS-D-001 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Number to be used for microfiche card Name Subject Address Date Ranges Other information Type 98,015.20 Bollinger Rd at Calabazas Creek (Correspondence) 1999 F CW-009, 2 yrs D 98,493.61 Pavement Restoration – O’Grady Paving (Project Administration) 1999 F PW-010, Comp. + 10 yrs D 98,493.62 Annual Overlay Project 99-108, Granite Construction (Project Administration) 2000 F PW-010, Comp. + 10 yrs D 98,493.64 Pavement Restoration (Project Administration) 2001 F PW-010, Comp. + 10 yrs D 98,493.65 Slurry Seal Project 2000-102 (Project Administration) 2000 F PW-010, Comp. + 10 yrs D 98,493.67 Foothill/Stevens Creek Overlay (Project Administration) 2002 F PW-010, Comp. + 10 yrs D 98,493.70 Annual Overlay Project 2001-04 (Project Administration) 2002 F PW-010, Comp. + 10 yrs D Page 1 of 2 302 RECORDS INVENTORY FOR DESTRUCTION, MICROFILMING, OR SCANNING Email completed form to cityclerk@cupertino.org File name or Box number: PW-ROADS-D-001 Destroyed Scanned Microfilmed Resolution authorizing destruction: 16- Date records destroyed: Date: Date paper destroyed: Date: Date paper destroyed: D=Destruction M=Microfilm S=Scanning Number to be used for microfiche card Name Subject Address Date Ranges Other information Type 98,493.72 Pavement Restoration Project 2002-01 (Project Administration) 2004 F PW-010, Comp. + 10 yrs D 98,493.73 2002 Annual Overlay Project 2002-04 (Project Administration) 2003 F PW-010, Comp. + 10 yrs D 98,493.75 Pavement Restoration Project 2003-04 (Project Administration) 2004 F PW-010, Comp. + 10 yrs D 98,499 Road Mileage Report (Correspondence) 2000-2001 F CW-009, 2 yrs PW-013, 10 yrs D 98,516 Streets Miscellaneous (Correspondence) 2001 F CW-009, 2 yrs D ` Page 2 of 2 303 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1855 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:7/19/2016 City Council On agenda:Final action:8/2/2016 Title:Subject: Accept resignation of Public Safety Commissioner Bob Cascone and fill the unscheduled vacancy. Sponsors: Indexes: Code sections: Attachments:Staff Report A - Resignation Letter Action ByDate Action ResultVer. City Council8/2/20161 Subject:AcceptresignationofPublicSafetyCommissionerBobCasconeandfillthe unscheduled vacancy. AcceptresignationofPublicSafetyCommissionerBobCasconeanddirectstafftofillthe unscheduledvacancy;andsetanapplicationdeadlineof4:30p.m.onFriday,September9, 2016 and an interview date of Tuesday September 20, 2016 beginning at 5:30 p.m. CITY OF CUPERTINO Printed on 7/27/2016Page 1 of 1 powered by Legistar™304 OFFICE OF THE CITY CLERK CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3223 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: August 2, 2016 Subject Accept resignation of Public Safety Commissioner Bob Cascone and fill the unscheduled vacancy. Recommended Action Accept resignation of Public Safety Commissioner Bob Cascone and direct staff to fill the unscheduled vacancy; and set an application deadline of 4:30 p.m. on Friday, September 9, 2016 and an interview date of Tuesday September 20, 2016 beginning at 5:30 p.m. Background Public Safety Commissioner Bob Cascone resigned his seat effective July 14, 2016, leaving an unscheduled vacancy for a (partial) term expiring on January 30, 2018. Cupertino Resolution No. 10-048 states that unscheduled vacancies shall be handled in the following manner: The notice of unscheduled vacancy shall be posted no earlier than 20 days before nor later than 20 days after the vacancy occurs, and at least 10 working days before appointment. The notice of unscheduled vacancy must be posted in the Office of the City Clerk, at the City Hall bulletin board, at the Cupertino Library, and in other places designated by the City Clerk. The notice of unscheduled vacancy was posted on July 20 in accordance with the posting requirements. Sustainability Impact No sustainability impact. Fiscal Impact 305 If Council chooses to hold a special recruitment, a notice would be published in the Cupertino Courier and World Journal noting the application deadline and interview date. The cost for the publications would be approximately $430. _____________________________________ Prepared by: Kirsten Squarcia, Deputy City Clerk Reviewed by: Grace Schmidt, City Clerk Approved for Submission by: David Brandt, City Manager Attachments: A – Resignation Letter 306 Grace Schmidt City Clerk City of Cupertino July 14, 2016 This is my notification that I am resigning from the Cupertino Public Safety Commission effective following the close of today's meeting. It has been a good experience, but I have come to realize that I am do not fit well into the Commission structure and that I can better serve the City via other activities. I thank the City Council for selecting me for the Commission and allowing me the opportunity to participate for the past two and a half years. Gratefully, 8vtC~v~ Bob Cascone bcascone 1@comcast.net 307 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1838 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:7/11/2016 City Council On agenda:Final action:8/2/2016 Title:Subject: Execute a contract with Dan Gertmanian for Math Olympiad Program and Chess instruction for period July 1, 2016 to June 30, 2017 Sponsors: Indexes: Code sections: Attachments:Staff Report A - Draft Agreement Action ByDate Action ResultVer. City Council8/2/20161 Subject:ExecuteacontractwithDanGertmanianforMathOlympiadProgramandChess instruction for period July 1, 2016 to June 30, 2017 AuthorizeCityManagertonegotiateandexecutecontractwithDanGertmanianforMath Olympiad Program and Chess instruction for period July 1, 2016 to June 30, 2017 CITY OF CUPERTINO Printed on 7/27/2016Page 1 of 1 powered by Legistar™308 RECREATION AND COMMUNITY SERVICES DEPARTMENT CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3110 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: August 2, 2016 Subject Execute a contract with Dan Gertmenian for the Math Olympiad and Chess program for the period of August 1, 2016 to June 30, 2017. Recommended Action Authorize the City Manager to negotiate and execute a contract with Dan Gertmenian for the Math Olympiad program and Chess Instruction for the one-year period of August 1, 2016 - June 30, 2017. Description The City currently has an agreement with Dan Gertmenian to provide instruction for the Math Olympiad program, which is taught to youths in grades 4-8. Due to the success of the program, the annual contract will exceed the $175,000 threshold for the coming year, therefore requiring City Council approval. Discussion The Math Olympiads program is currently one of the most popular academic/enrichment programs to be offered by the Recreation and Community Services Department. During the 2015/16 school year, there were 347 students enrolled in the program, and the gross revenue ($318,000) surpassed last year’s amount by 15%. Staff has increased the class fee by 9% to meet the growing demand from the community for the program and the additional staffing requirements by the contractor. Staff will continue to conduct informal market analyses to ensure the Math Olympiads program remains fiscally competitive with outside organizations. Chess may continue to be offered for the 2016/17 year, but this will depend on the overall demand of both programs; the requested encumbered amount has taken into account the additional compensation of the chess program. Fiscal Impact City staff anticipates that the Math Olympiad program class will generate approximately $343,000 in gross revenue with an offset of $240,000 to the Consultant. ___________________________________ Prepared by: Danny Mestizo, Recreation Coordinator Reviewed by: Dave Jahns, Recreation Supervisor Reviewed by: Christine Hanel, Acting Director of Recreation and Community Services Approved for Submission by: David Brandt, City Manager Attachment: A- Draft Agreement 309 1 NO.______________________ FY 16-17 AGREEMENT BETWEEN THE CITY OF CUPERTINO AND DAN GERTMENIAN FOR MATH AND CHESS INSTRUCTION SERVICES THIS AGREEMENT, for reference dated July 1, 2016, is by and between CITY OF CUPERTINO, a municipal corporation (hereinafter referred to as "City"), and Dan Gertmenian, a sole proprietor, whose address is 167 Acalenes Drive #15, Sunnyvale, CA 94086(hereinafter referred to as "Consultant"), and is made with reference to the following: RECITALS: A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the Constitution and the statutes of the State of California and the Cupertino Municipal Code. B. Consultant is specially trained, experienced and competent to perform the special services which will be required by this Agreement; and C. Consultant possesses the skill, experience, ability, background, certification and knowledge to provide the services described in this Agreement on the terms and conditions described herein. D. City and Consultant desire to enter into an agreement for educational enrichment classes upon the terms and conditions herein. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. TERM: The term of this Agreement shall commence on July 1, 2016, and shall terminate on June 30, 2017, unless terminated earlier as set forth herein. 2. SERVICES TO BE PERFORMED: Consultant shall perform each and every service set forth in Exhibit "A" which is attached hereto and incorporated herein by this reference. 3. COMPENSATION TO CONSULTANT: Consultant shall be compensated for services performed pursuant to this Agreement in the amount set forth below and as described in Exhibit "A" which is attached hereto and incorporated herein by this reference. 310 2 Compensation: 70% of the resident fee based on final class rosters, minus a $20 administrative fee per participant and copier use fees. The City will issue no more than three payments throughout the course of the year. In the event that less than the required minimum number of participants shall request and pay for services prior to the agreed upon time for the commencement of services to be performed by Contractor, City may cancel and withdraw from this Agreement. The total compensation to the Consultant shall not exceed $260,000. 4. ACKNOWLEDGEMENT OF MANDATED REPORTING REQURIEMENTS: Consultant shall comply with the requirements of California Penal Code 11164- 11174.3 and as set forth in Exhibit “B” which is attached hereto and incorporated herein by this reference. 5. FINGERPRINT AND TUBERCLOSIS (TB) CONSULTANT DECLARATION: Consultant agrees that all individuals covered under this Agreement shall provide fingerprints for criminal background test purposes and results of TB screening, pursuant to the requirements as set forth in Exhibit “C” which is attached hereto and incorporated herein by this reference. 6. TIME IS OF THE ESSENCE: Consultant and City agree that time is of the essence regarding the performance of this Agreement. 7. STANDARD OF CARE: Consultant agrees to perform all services hereunder in a manner commensurate with the prevailing standards of specially trained professionals in the San Francisco Bay Area and agrees that all services shall be performed by qualified and experienced personnel who are not employed by the City nor have any contractual relationship with City. 8. INDEPENDENT PARTIES: City and Consultant intend that the relationship between them created by this Agreement is that of an independent contractor. The manner and means of conducting the work are under the control of Consultant, except to the extent they are limited by statute, rule or regulation and the express terms of this Agreement. No civil service status or other right of employment will be acquired by virtue of Consultant's services. None of the benefits provided by City to its employees, including but not limited to, unemployment insurance, workers' compensation plans, vacation and sick leave are available from City to Consultant, its employees or agents. Deductions shall not be made for any state or federal taxes, FICA payments, PERS payments, or other purposes normally associated with an employer-employee relationship from any fees due Consultant. Payments of the above items, if required, are the responsibility of Consultant. 311 3 9. IMMIGRATION REFORM AND CONTROL ACT (IRCA): Consultant assumes any and all responsibility for verifying the identity and employment authorization of all of his/her employees performing work hereunder, pursuant to all applicable IRCA or other federal, or state rules and regulations. Consultant shall indemnify and hold City harmless from and against any loss, damage, liability, costs or expenses arising from any noncompliance of this provision by Consultant. 10. NON-DISCRIMINATION: Consistent with City's policy that harassment and discrimination are unacceptable employer/employee conduct, Consultant agrees that harassment or discrimination directed toward a job applicant, a City employee, or a citizen by Consultant or Consultant's employee or subcontractor on the basis of race, religious creed, color, national origin, ancestry, handicap, disability, marital status, pregnancy, sex, age, or sexual orientation will not be tolerated. Consultant agrees that any and all violations of this provision shall constitute a material breach of this Agreement. 11. HOLD HARMLESS: Consultant shall, to the fullest extent allowed by law, with respect to all services performed in connection with the Agreement, indemnify, defend, and hold harmless the City and its officers, officials, agents, employees and volunteers from and against any and all liability, claims, actions, causes of action or demands whatsoever against any of them, including any injury to or death of any person or damage to property or other liability of any nature, whether physical, emotional, consequential or otherwise, arising out, pertaining to, or related to the performance of this Agreement by Consultant or Consultant’s employees, officers, officials, agents or independent contractors. Such costs and expenses shall include reasonable attorneys’ fees of counsel of City’s choice, expert fees and all other costs and fees of litigation. In addition to the obligations set forth above, Consultant shall indemnify, defend, and hold the City, its elected and appointed officers, employees, and volunteers, harmless from and against any Claim in which a violation of intellectual property rights, including but not limited to copyright or patent rights, is alleged that arises out of, pertains to, or relates to Consultant’s negligence, recklessness or willful misconduct under this Agreement. Such costs and expenses shall include reasonable a ttorneys’ fees of counsel of City’s choice, expert fees and all other costs and fees of litigation. 12. INSURANCE: On or before the commencement of the term of this Agreement, Consultant shall furnish City with certificates showing the type, amount, class of operations covered, effective dates and dates of expiration of insurance coverage in compliance with the paragraphs below. Such certificates, which do not limit Consultant's indemnification, shall also contain substantially the following statement: "Should any of the above insurance covered by this certificate be canceled or coverage reduced before the 312 4 expiration date thereof, the insurer affording coverage shall provide thirty (30) days' advance written notice to the City of Cupertino by certified mail, Attention: City Manager." It is agreed that Consultant shall maintain in force at all times during the performance of this Agreement all appropriate coverage of insurance required by this Agreement with an insurance company that is acceptable to City and licensed to do insurance business in the State of California. Endorsements naming the City as additional insured shall be submitted with the insurance certificates. A. COVERAGE: Consultant shall maintain the following insurance coverage: (1) Workers' Compensation: Statutory coverage as required by the State of California. (2) Liability: Commercial general liability coverage,including, sexual abuse and molestation coverage, in the following minimum limits: Bodily Injury: $500,000 each occurrence $1,000,000 aggregate - all other Property Damage: $100,000 each occurrence $250,000 aggregate If submitted, combined single limit policy with aggregate limits in the amounts of $1,000,000 will be considered equivalent to the required minimum limits shown above. (3) Automotive: Proof of automobile insurance required at the California statutory minimums. B. SUBROGATION WAIVER: Consultant agrees that in the event of loss due to any of the perils for which he/she has agreed to provide comprehensive general and automotive liability insurance, Consultant shall look solely to his/her insurance for recovery. Consultant hereby grants to City, on behalf of any insurer providing comprehensive general and automotive liability insurance to either Consultant or City with respect to the services of Consultant herein, a waiver of any right to subrogation which any such insurer of said Consultant may acquire against City by virtue of the payment of any loss under such insurance. C. FAILURE TO SECURE: If Consultant at any time during the term hereof should fail to secure or maintain the foregoing insurance, City shall be permitted to obtain such insurance in the Consultant's name or as an agent of the Consultant and shall be compensated by the Consultant for the costs of the insurance premiums at the maximum rate permitted by law and computed from the date written notice is received that the premiums have not been paid. 313 5 D. ADDITIONAL INSURED: City, its City Council, boards and commissions, officers, employees and volunteers shall be named as an additional insured under all insurance coverages, except any professional liability insurance, required by this Agreement. The naming of an additional insured shall not affect any recovery to which such additional insured would be entitled under this policy if not named as such additional insured. An additional insured named herein shall not be held liable for any premium, deductible portion of any loss, or expense of any nature on this policy or any extension thereof. Any other insurance held by an additional insured shall not be required to contribute anything toward any loss or expense covered by the insurance provided by this policy. E. SUFFICIENCY OF INSURANCE: The insurance limits required by City are not represented as being sufficient to protect Consultant. Consultant is advised to confer with Consultant's insurance broker to determine adequate coverage for Consultant. 13. CONFLICT OF INTEREST: Consultant warrants that it is not a conflict of interest for Consultant to perform the services required by this Agreement. Consultant may be required to fill out a conflict of interest form if the services provided under this Agreement require Consultant to make certain governmental decisions or serve in a staff capacity as defined in Title 2, Division 6, Section 18700 of the California Code of Regulations. 14. PROHIBITION AGAINST TRANSFERS: Consultant shall not assign, sublease, hypothecate, or transfer this Agreement, or any interest therein, directly or indirectly, by operation of law or otherwise, without prior written consent of City. Any attempt to do so without said consent shall be null and void, and any assignee, sublessee, hypothecate or transferee shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer. However, claims for money by Consultant from City under this Agreement may be assigned to a bank, trust company or other financial institution without prior written consent. Written notice of such assignment shall be promptly furnished to City by Consultant. The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Consultant, or of the interest of any general partner or joint venturer or syndicate member or cotenant, if Consultant is a partnership or joint venture or syndicate or cotenancy, which shall result in changing the control of Consultant, shall be construed as an assignment of this Agreement. Control means fifty percent (50%) or more of the voting power of the corporation. 15. SUBCONTRACTOR APPROVAL: Unless prior written consent from City is obtained, only those people and subcontractors whose names and resumes are attached to this Agreement shall be used in the performance of this Agreement. In the event that Consultant employs subcontractors, such subcontractors shall be required to furnish proof of workers' compensation insurance and shall also be required to carry general, and professional liability insurance in reasonable conformity 314 6 to the insurance carried by Consultant. In addition, any work or services subcontracted hereunder shall be subject to each provision of this Agreement. 16. PERMITS AND LICENSES: Consultant, at his/her sole expense, shall obtain and maintain during the term of this Agreement, all appropriate permits, certificates and licenses including, but not limited to, a City Business License, that may be required in connection with the performance of services hereunder. 17. REPORTS: A. Each and every report, draft, work product, map, record and other document, hereinafter collectively referred to as "Report", reproduced, prepared or caused to be prepared by Consultant pursuant to or in connection with this Agreement, shall be the exclusive property of City. Consultant shall not copyright any Report required by this Agreement and shall execute appropriate documents to assign to City the copyright to Reports created pursuant to this Agreement. Any Report, information and data acquired or required by this Agreement shall become the property of City, and all publication rights are reserved to City. Consultant may retain a copy of any report furnished to the City pursuant to this Agreement. B. All Reports prepared by Consultant may be used by City in execution or implementation of: (1) The original Project for which Consultant was hired; (2) Completion of the original Project by others; (3) Subsequent additions to the original project; and/or (4) Other City projects as appropriate. C. Consultant shall, at such time and in such form as City may require, furnish reports concerning the status of services required under this Agreement. D. All Reports required to be provided by this Agreement shall be printed on recycled paper. All Reports shall be copied on both sides of the paper except for one original, which shall be single sided. E. No Report, information or other data given to or prepared or assembled by Consultant pursuant to this Agreement shall be made available to any individual or organization by Consultant without prior approval by City. 18. RECORDS: Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts and other such information required by City that relate to the performance of services under this Agreement. Consultant shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to such books and records to the representatives of City or its designees at all proper times, and gives City the right to examine and audit same, and to make transcripts therefrom as necessary, and to allow inspection of all work, data, documents, proceedings and activities related to this 315 7 Agreement. Such records, together with supporting documents, shall be kept separate from other documents and records and shall be maintained for a period of three (3) years after receipt of final payment. If supplemental examination or audit of the records is necessary due to concerns raised by City's preliminary examination or audit of records, and the City's supplemental examination or audit of the records discloses a failure to adhere to appropriate internal financial controls, or other breach of contract or failure to act in good faith, then Consultant shall reimburse City for all reasonable costs and expenses associated with the supplemental examination or audit. 19. NOTICES: All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be deemed served when delivered personally or on the second business day after the deposit thereof in the United States Mail, postage prepaid, registered or certified, addressed as hereinafter provided. All notices, demands, requests, or approvals from Consultant to City shall be addressed to City at: City of Cupertino 10300 Torre Ave. Cupertino CA 95014 Attention: Director of Recreation and Community Services All notices, demands, requests, or approvals from City to Consultant shall be addressed to Consultant at: Dan Gertmenian 167 Acalenes Drive, #15 Sunnyvale, CA 94086 20. TERMINATION: In the event Consultant fails or refuses to perform any of the provisions hereof at the time and in the manner required hereunder, Consultant shall be deemed in default in the performance of this Agreement. If such default is not cured within the time specified after receipt by Consultant from City of written notice of default, specifying the nature of such default and the steps necessary to cure such default, City may terminate the Agreement forthwith by giving to the Consultant written notice thereof. City shall have the option, at its sole discretion and without cause, of terminating this Agreement by giving thirty (30) days' prior written notice to Consultant as provided herein. Upon termination of this Agreement, each party shall pay to the other party that portion of compensation specified in this Agreement that is earned and unpaid prior to the effective date of termination. 316 8 City has no obligation to offer any of Consultant’s services to participants, and, unless minimum enrollment for a particular class identified in the Scope of Services is met, City may cancel that class without further notice to Consultant or payment under this Agreement. The City in its sole discretion may determine the type of classes, the number of classes and the assigned instructor. 21. COMPLIANCES: Consultant shall comply with all state or federal laws and all ordinances, rules and regulations enacted or issued by City. 22. CONFLICT OF LAW: This Agreement shall be interpreted under, and enforced by the laws of the State of California excepting any choice of law rules which may direct the application of laws of another jurisdiction. The Agreement and obligations of the parties are subject to all valid laws, orders, rules, and regulations of the authorities having jurisdiction over this Agreement (or the successors of those authorities.) Any suits brought pursuant to this Agreement shall be filed with the courts of the County of Santa Clara, State of California. 23. ADVERTISEMENT: Consultant shall not post, exhibit, display or allow to be posted, exhibited, displayed any signs, advertising, show bills, lithographs, posters or cards of any kind pertaining to the services performed under this Agreement unless prior written approval has been secured from City to do otherwise. 24. WAIVER: A waiver by City of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein, whether of the same or a different character. 25. INTEGRATED CONTRACT: This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions hereof. Any modification of this Agreement will be effective only by written execution signed by both City and Consultant. 26. INSERTED PROVISIONS: Each provision and clause required by law to be inserted into the Agreement shall be deemed to be enacted herein, and the Agreement shall be read and enforced as though each were included herein. If through mistake or otherwise, any such provision is not inserted or is not correctly inserted, the Agreement shall be amended to make 317 9 such insertion on application by either party. 27. CAPTIONS: The captions in this Agreement are for convenience only, are not a part of the Agreement and in no way affect, limit or amplify the terms or provisions of this Agreement. IN WITNESS WHEREOF, the parties have caused the Agreement to be executed. CONSULTANT CITY OF CUPERTINO A Municipal Corporation By: By: Danny Mestizo Title: Title: Recreation Coordinator Date: Date: 7/1/16 RECOMMENDED FOR APPROVAL: ________________________ By: Christine Hanel Title: Acting Director of Recreation & Community Services APPROVED AS TO FORM: _________________________ Randolph Stevenson Hom, City Attorney ATTEST: ______________________________ Grace Schmidt City Clerk EXPENDITURE DISTRIBUTION: Account No: 580-62-613 700-702 Amount: $260,000 318 10 EXHIBIT A CONSULTANT SERVICES TO BE PERFORMED The CONSULTANT will provide instruction of math and chess programs in, but not limited to, the following programs: Chess Math Olympiads: Division E Math Olympiads: Division M Math Olympiads: Honors Location and Time of CONSULTANT Services: Refer to the fall, winter, summer, and/or spring Recreation Schedules and/or the Afterschool Enrichment Brochure for all agreed upon dates, times, and class locations. By Mutual agreement of both parties, class schedule may change. Eligible Participant Minimum and Maximums for CONSULTANT Services: Minimum: 16 Maximum: 28 If less than the required minimum number of participants enroll in and pay for a particular class as identified in the schedule before the class is scheduled to start, the City may cancel the particular class and/or terminate this Agreement without additional notice or payment to Consultant. Performance of CONSULTANT Services: City shall have no right of control as to the manner Consultant performs the services to be performed. Nevertheless, City may, at any time, observe the manner in which such services are being performed by the consultant. The Consultant shall follow all guidelines pertaining to registration procedures as listed in the quarterly recreation schedule. Participants may not take part in the program unless they are listed on the class roster or can show proof of enrollment. All participants and volunteers need to complete the City’s Waiver of Liability form prior to taking part in the program. Contractors are responsible for supervising minors after class until a parent of legal guardian has arrived. In the event of an injury occurring to a participant, the Consultant will notify the City within 1 hour and complete an Incident Report in the form approved by the City. The Incident Report must be submitted to the City within 24 hours of the injury occurring. 319 11 EXHIBIT B ACKNOWLEDGEMENT OF MANDATED REPORTING REQUIREMENTS, RECEIPT OF TRAINING, AND RECEIPT OF PENAL CODES STATUTES A mandated reporter is an individual who is obligated by law to report suspected cases of child abuse and neglect. In general, any individual who, in the ordinary course of their employment, has contact with children is a mandated reporter. Mandated reporters include child care workers, teachers and coaches. (California Penal Code 11165.7). If your job duties as an employee or an independent contractor of Dan Gertmenian include contact with children, you are a Mandated Reporter. Prior to commencing employment and as a prerequisite of that employment, California law requires that you sign a statement to the effect that you have knowledge of the provisions of the Mandated Reporter Law, and will comply with those provisions. (California Penal Code 11166.5). The following are the Mandated Reporter responsibilities under California law. You are also being provided with a separate informational document which includes the text of the California Mandated Reporter Law and contact information for Child Abuse and Neglect Reporting for the County of Santa Clara. Please review this information carefully and acknowledge your receipt and understanding where indicated. If you have questions or concerns about this form or your Mandated Reporter responsibilities, please contact the Recreation Supervisor at 408-777-3120. I understand that:  By virtue of my employment or independent contractor status with Dan Gertmenian, and because my employment requires me to have contact with children, I am a Mandated Reporter as defined by California Penal Code 11165.7.  The following situations trigger mandatory reports: a) Physical Abuse (willful harming of a child); b) Sexual abuse including sexual assault, child exploitation, pornography, and trafficking; c) Severe or General Neglect; and d) Extreme Corporal Punishment (resulting in injury). (Cal. Pen. Code 11165 et. seq.) I further understand that I may, but am not required to, report suspected Emotional Abuse.  If I reasonably suspect that a child is being abused, I must immediately make a telephone report. I must follow up with a written report within 36 hours. This report may be made to local law enforcement, or County Sheriff’s Department, Probation Department or Child Welfare Agency. (Cal Pen. Code 11166(a)). 320 12  I am not required to, but I may, share information about suspected abuse with my supervisor or management or the parents of the alleged victim.  When I make a mandated report, I will be required to give my name. However, my identity will be kept confidential unless I either consent to disclosure or if the disclosure is made pursuant to a court order. Further, agencies investigating the mandated report may disclose my identity to one another. (Cal Pen. Code 11167(d)).  The following agencies and individuals receiving or investigating mandated reports may disclose my identity to one another: o Prosecutors in a criminal prosecuting or in an action initiated under section 602 of the Welfare and Institutions Code arising from alleged child abuse; o Counsel appointed pursuant to subdivision (c) of Section 317 of the Welfare and Institutions Code; o A licensing agency when abuse or neglect in out-of-home care is reasonably suspected. (Cal Pen. Code 11167.5)  I may not be disciplined, dismissed, retaliated against, discriminated against or harassed for making a mandated report of reasonably suspected child abuse.  As a Mandated Reporter, I have civil and criminal immunity when making a report (Cal Pen. Code 11172).  As a Mandated Reporter, it is a misdemeanor to fail to comply with Mandated Reporting laws and I can be held criminally liable for failing to report suspected abuse. The penalty for this is up to six months in County jail, a fine of not more than $1000, or both. I further understand I could be civilly liable for failure to report. (Cal. Pen. Code 11166(c)). I have been provided with a copy of California Penal Code sections 11164-11174.3 (Mandated Reporter Law). I understand that I am a legally Mandated Reporter. I am aware of and understand my responsibilities under the Mandated Reporter laws of this state and am willing and able to comply. I understand that a copy of this Acknowledgement will be kept in my personnel file. ____________________________ __________________________ Name (Signature) Date ____________________________ Name (Print) 321 13 EXHIBIT C City of Cupertino Consultant Declaration The undersigned does hereby certify that: 1. I am a representative of Dan Gertmenian; that I am familiar with the facts herein and am authorized and qualified to execute this declaration. 2. I declare that Dan Gertmenian has complied with fingerprinting and criminal background investigation requirements with respect to all Consultant’s employees who may have contact with minors in the course of providing services pursuant to the Agreement, and the California Department of Justice has determined that none of those employees has been convicted of a felony, as that term is defined in California Penal Code Section 11105.3. 3. That a complete and accurate list of Consultant’s employees, who may come in contact with minors during the course and scope of the Agreement, are included below. 4. All of the below mentioned employees have tested negative for TB, or X-ray results for TB, and have current documentation on file with Consultant. 5. All of the below mentioned employees have received training and understand their responsibilities under the Mandated Reporter laws of this state and are willing and able to comply. A List of all Consultant Employees Working for the City of Cupertino: ____________________ ____________________ ________________________ ____________________ ____________________ ________________________ ____________________ ____________________ ________________________ ____________________ ____________________ ________________________ 6. The City of Cupertino will be notified by Consultant in writing of any new employees and will be added to the above list prior to beginning work at the City of Cupertino. I declare under penalty of perjury that the foregoing is true and correct: ______ _________ _____________________________ _______________ Date Place Consultant Signature Title 322 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1849 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:7/14/2016 City Council On agenda:Final action:8/2/2016 Title:Subject: Application for Alcoholic Beverage License for Husdow, Inc (dba Red Hot Wok), 10074 E Estates Drive Sponsors: Indexes: Code sections: Attachments:Staff Report A - Application Action ByDate Action ResultVer. City Council8/2/20161 Subject:ApplicationforAlcoholicBeverageLicenseforHusdow,Inc(dbaRedHotWok), 10074 E Estates Drive RecommendapprovaltotheCaliforniaDepartmentofAlcoholicBeverageControlofthe ApplicationforAlcoholicBeverageLicenseforHusdow,Inc(dbaRedHotWok),10074E Estates Drive CITY OF CUPERTINO Printed on 7/27/2016Page 1 of 1 powered by Legistar™323 CITY COUNCIL STAFF REPORT Meeting: August 2, 2016 Subject Application for Alcoholic Beverage License for Red Hot Wok, 10074 E Estates Drive Recommended Action Recommend approval to the California Department of Alcoholic Beverage Control of the Application for Alcoholic Beverage License for Red Hot Wok, 10074 E Estates Drive Description Name of Business: Husdow, Inc (dba Red Hot Wok) Location: 10074 E Estates Drive Type of Business: Restaurant Type of License: 41 – On-Sale Beer & Wine – Eating Place (Restaurant) Reason for Application: Annual Fees, Person–to-Person Transfer, Federal Fingerprints, State Fingerprints, Issue Temporary Permit Discussion There are no zoning or use permit restrictions which would prohibit the sale of alcohol as proposed and staff has no objection to the issuance of this license. License Type 41 authorizes the sale of beer and wine for consumption on or off the premises where sold. This is an ownership change for an existing restaurant. Sustainability Impact None Fiscal Impact None _____________________________________ Prepared by: Beth Ebben, Administrative Assistant, Planning Department Reviewed by: Benjamin Fu, Assistant Director of Community Development; Aarti Shrivastava, Assistant City Manager - Community Development and Strategic Planning Approved for Submission by: David Brandt, City Manager Attachment: A - Application COMMUNITY DEVELOPMENT DEPARTMENT CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3308 www.cupertino.org 324 325 326 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1845 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:7/11/2016 City Council On agenda:Final action:8/2/2016 Title:Subject: Application for Alcoholic Beverage License for Oren's Hummus Cupertino, LLC (dba Oren's Hummus Shop), 19419 Stevens Creek Boulevard #100 Sponsors: Indexes: Code sections: Attachments:Staff Report A - Application Action ByDate Action ResultVer. City Council8/2/20161 Subject:ApplicationforAlcoholicBeverageLicenseforOren'sHummusCupertino,LLC(dba Oren's Hummus Shop), 19419 Stevens Creek Boulevard #100 RecommendapprovaltotheCaliforniaDepartmentofAlcoholicBeverageControlofthe ApplicationforAlcoholicBeverageLicenseforOren'sHummusCupertino,LLC(dbaOren's Hummus Shop), 19419 Stevens Creek Boulevard #100 CITY OF CUPERTINO Printed on 7/27/2016Page 1 of 1 powered by Legistar™327 CITY COUNCIL STAFF REPORT Meeting: August 2, 2016 Subject Application for Alcoholic Beverage License for Oren’s Hummus Shop, 19419 Stevens Creek Boulevard #100 Recommended Action Recommend approval to the California Department of Alcoholic Beverage Control of the Application for Alcoholic Beverage License for Oren’s Hummus Shop, 19419 Stevens Creek Boulevard #100 Description Name of Business: Oren’s Hummus Shop Location: 19419 Stevens Creek Boulevard #100 Type of Business: Restaurant Type of License: 41 – On-Sale Beer & Wine – Eating Place (Restaurant) Reason for Application: Original Fees, Annual Fees Discussion There are no zoning or use permit restrictions which would prohibit the sale of alcohol as proposed and staff has no objection to the issuance of this license. License Type 41 authorizes the sale of beer and wine for consumption on or off the premises where sold. This location is at the Main Street Cupertino mixed use development project. Sustainability Impact None Fiscal Impact None _____________________________________ Prepared by: Beth Ebben, Administrative Assistant, Planning Department Reviewed by: Benjamin Fu, Assistant Director of Community Development; Aarti Shrivastava, Assistant City Manager - Community Development and Strategic Planning Approved for Submission by: David Brandt, City Manager Attachment: A - Application COMMUNITY DEVELOPMENT DEPARTMENT CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3308 www.cupertino.org 328 329 330 331 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1549 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:3/2/2016 City Council On agenda:Final action:8/2/2016 Title:Subject: 2016/17 Reconstruction of Curbs, Gutters and Sidewalks Project, Project No. 2017-01 Sponsors: Indexes: Code sections: Attachments:Staff Report A - Bid Summary B - Draft Contract Action ByDate Action ResultVer. City Council8/2/20161 Subject: 2016/17 Reconstruction of Curbs, Gutters and Sidewalks Project, Project No. 2017-01 AuthorizetheCityManagertoawardandexecuteacontractwithSpenconConstruction,Inc., intheamountof$1,943,818andapproveaconstructioncontingencyof$56,182,foratotalof $2,000,000 CITY OF CUPERTINO Printed on 7/27/2016Page 1 of 1 powered by Legistar™332 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: August 2, 2016 Subject 2016/17 Reconstruction of Curbs, Gutters and Sidewalks Project, Project No. 2017-01 Recommended Action Authorize the City Manager to award and execute a contract with Spencon Construction, Inc., in the amount of $1,943,818 and approve a construction contingency of $56,182, for a total of $2,000,000. Discussion On July 26, 2016, the City received two bids for the 2016/17 Reconstruction of Curbs, Gutters and Sidewalks Project. The concrete improvements to be completed by this project support the annual paving projects by providing on-street accessibility improvements, repairing uplifted sidewalks, and resolving gutter drainage issues on streets scheduled for asphalt improvements. Additionally, this project will perform other concrete repairs at various locations throughout the City. The following is a summary of bids deemed complete: Bidder Bid Amount Engineers Estimate $1,641,158 Spencon Construction, Inc. $1,934,818 JJR Construction, Inc. $1,993,015 The lowest responsive bid for this project is 17.75% above the engineers estimate. The engineers estimate for this project was based upon favorable competitively bid unit costs of a similar project awarded this past November. An increase in concrete material cost was the likely factor in the two bids coming in above the estimate. Spencon Construction, Inc. has satisfactory completed prior concrete projects for the City. With the scope and quantity of work fixed for this project, there is no advantage in rejecting and rebidding this work. Additionally, each week of favorable weather is critical to meet the overall construction schedule. This project will start as early as this month. Sustainability Impact No sustainability impact. 333 Fiscal Impact Award of the project will result in a fiscal impact of up to $2,000,000. Sufficient funds have been budgeted and are available from account numbers 270-85-820-900-922 (Concrete Maintenance) and 270-85-821-921 (Street Pavement Maintenance). _____________________________________ Prepared by: Roger Lee, Assistant Director of Public Works Reviewed by: Timm Borden, Director of Public Works Approved for Submission by: David Brandt, City Manager Attachments: A – Bid Summary B - Draft Contract 334 FY 16/17 Reconstruction of Curbs, Gutters and Sidewalks ATTACHMENT A Bid Results Bid Opening July 26, 2016 Unit Cost Total Cost Unit Cost Total Cost Unit Cost Total Cost A OVER ONE (1) CU. YD. CONC. TO SIX (6) CU. YD. (81-486 S.F. Sidewalk 18-108 L.F. std. Curb & Gutter)Unit QTY A.1 1. Remove and Replace Sidewalk (1-19)S.F.11100 $10.19 $113,053.50 $11.00 $122,100.00 $11.25 $124,875.00 2.1 Driveway Detail – Detached Sidewalk (1-20)S.F.2200 $13.39 $29,452.50 $11.50 $25,300.00 $14.60 $32,120.00 2.2 Driveway Detail – Monolithic Sidewalk (1-21)S.F.2450 $13.39 $32,799.38 $11.50 $28,175.00 $14.60 $35,770.00 3. Remove and Replace Curb & Gutter (1-16 Type A2-6)L.F.2000 $46.20 $92,400.00 $59.00 $118,000.00 $51.00 $102,000.00 4. Remove and Replace Rolled Curb & Gutter (1-16 Type E)L.F.880 $46.20 $40,656.00 $59.00 $51,920.00 $51.00 $44,880.00 B.OVER SIX CU. YD. CONC. 1. Remove and Replace Sidewalk (1-19)S.F.25910 $10.19 $263,893.35 $11.00 $285,010.00 $11.25 $291,487.50 2.1 Driveway Detail – Detached Sidewalk (1-20)S.F.4200 $13.39 $56,227.50 $11.50 $48,300.00 $14.60 $61,320.00 2.2 Driveway Detail – Monolithic Sidewalk (1-21)S.F.3680 $13.39 $49,266.00 $11.50 $42,320.00 $14.60 $53,728.00 3. Remove and Replace Curb & Gutter (1-16 Type A2-6)L.F.4530 $46.20 $209,286.00 $59.00 $267,270.00 $51.00 $231,030.00 4. Remove and Replace Rolled Curb & Gutter (1-16, Type E)L.F.2200 $46.20 $101,640.00 $59.00 $129,800.00 $51.00 $112,200.00 C.ALL CATEGORIES AND LOCATIONS 1. Remove Park Strip Improvements S.F.6327 $3.15 $19,930.05 $4.00 $25,308.00 $5.00 $31,635.00 2. Remove Median Island Flatwork S.F.100 $10.00 $1,000.00 $6.00 $600.00 $10.00 $1,000.00 3. Valley Gutter (1-18)S.F.1530 $16.80 $25,704.00 $16.00 $24,480.00 $20.00 $30,600.00 4A. Depressed Curb Ramp (Caltrans Type A)EA 18 $1,927.80 $34,700.40 $2,800.00 $50,400.00 $3,040.00 $54,720.00 4B. Depressed Curb Ramp (Caltrans Type B)EA 69 $2,928.45 $202,063.05 $3,500.00 $241,500.00 $3,505.00 $241,845.00 4C. Depressed Curb Ramp (Caltrans Type C)EA 69 $2,555.70 $176,343.30 $3,500.00 $241,500.00 $3,505.00 $241,845.00 4D. Depressed Curb Ramp (Caltrans Type D)EA 2 $2,262.75 $4,525.50 $3,500.00 $7,000.00 $3,505.00 $7,010.00 4E. Depressed Curb Ramp (Caltrans Type E)EA 2 $2,262.75 $4,525.50 $3,500.00 $7,000.00 $3,040.00 $6,080.00 4F. Depressed Curb Ramp (Caltrans Type F)EA 19 $1,489.95 $28,309.05 $2,800.00 $53,200.00 $2,200.00 $41,800.00 4G. Depressed Curb Ramp (Caltrans Type G)EA 2 $2,100.00 $4,200.00 $3,500.00 $7,000.00 $3,040.00 $6,080.00 5. Upgrade Existing Curb Ramps EA 2 $325.00 $650.00 $450.00 $900.00 $500.00 $1,000.00 6. Root Barrier EA 30 $15.75 $472.50 $12.00 $360.00 $50.00 $1,500.00 7. Retaining Curb (outside of ramp border grooves)LF 2100 $15.38 $32,303.25 $12.00 $25,200.00 $17.00 $35,700.00 8. Reconstruction of Catch Basin Top EA 4 $1,050.00 $4,200.00 $1,500.00 $6,000.00 $1,000.00 $4,000.00 9. Asphalt Replacement (6” Placement)TN 515 $220.50 $113,557.50 $245.00 $126,175.00 $386.00 $198,790.00 Total 1,641,158.33$ Total 1,934,818.00$ Total 1,993,015.50$ Engineer's Estimate Spencon Construction JJR Construction 335 Project No. 2017-001 City of Cupertino 00520 - 1 Contract 2016/17 Reconstruction of Curbs, Gutters and Sidewalks CONTRACT THIS CONTRACT, dated this ___ day of , 2016, by and between _________________, whose place of business is located at ___________________________ (“Contractor”), and the CITY OF CUPERTINO, a Municipal Corporation of the State of California (“City”) acting under and by virtue of the authority vested in the City by the laws of the State of California. WHEREAS, City, on the ___ day of _____, 2016 awarded to Contractor the following Project: PROJECT NUMBER 2017-001 2016/17 RECONSTRUCTION OF CURBS, GUTTERS, AND SIDEWALKS NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, Contractor and City agree as follows: Article 1. Work 1.1 Contractor shall complete all Work specified in the Contract Documents, in accordance with the Specifications, Drawings, and all other terms and conditions of the Contract Documents. Article 2. Agency and Notices to City 2.1 City has designated Roger Lee, Assistant Director of Public Works, to act as City’s Authorized Representative(s), who will represent City in performing City’s duties and responsibilities and exercising City’s rights and authorities in Contract Documents. City may change the individual(s) acting as City’s Authorized Representative(s), or delegate one or more specific functions to one or more specific City’s Representatives, including without limitation engineering, architectural, inspection and general administrative functions, at any time with notice and without liability to Contractor. Each City’s Representative is the beneficiary of all Contractor obligations to City, including without limitation, all releases and indemnities. 2.2 All notices or demands to City under the Contract Documents shal l be to City’s Authorized Representative at: 10300 Torre Avenue, Cupertino, California 95014 or to such other person(s) and address (es) as City shall provide to Contractor. Article 3. Contract Time and Liquidated Damages 3.1 Contract Time. The Contract Time will commence to run on the date indicated in the Notice to Proceed. City may give a Notice to Proceed at any time within 30 Days after the Notice of Award. Contractor shall not do any Work at the Site prior to the date on which the Contract Time commences to run. Contractor shall achieve Final Completion of the entire Work and be ready for Final Payment in accordance with Section 00700 (General Provisions) by June 30, 2017 as provided in Document 00700 (General Provisions) 3.2 Liquidated Damages. City and Contractor recognize that time is of the essence of this Contract and that City will suffer financial loss in the form of contract administration expenses (such as project management and consultant expenses), if all or ATTACHMENT A 336 Project No. 2017-001 City of Cupertino 00520 - 2 Contract 2016/17 Reconstruction of Curbs, Gutters and Sidewalks any part of the Work is not completed within the times specified above, plus any extensions thereof allowed in accordance with the Contract Documents. Consistent with Document 00700 (General Provisions), Contractor and City agree that because of the nature of the Project, it would be impractical or extremely difficult to fix the amount of actual damages incurred by City because of a delay in completion of all or any part of the Work. Accordingly, City and Contractor agree that as liquidated damages for delay Contractor shall pay City: 3.2.1 $500 for each Calendar Day that expires after the time specified herein for Contractor to achieve Final Completion of the entire Work as specified above. 3.2.2 $75 per Calendar Day for failure to remove concrete from a work area within the same calendar week. 3.2.3 $75 per Calendar Day for failure to replace asphalt to finish grade within 30 calendar days. Liquidated damages shall apply cumulatively and, except as provided below, shall be presumed to be the damages suffered by City resulting from delay in completion of the Work. 3.3 Liquidated damages for delay shall only cover administrative, overhead, interest on bonds, and general loss of public use damages suffered by City as a result of delay. Liquidated damages shall not cover the cost of completion of the Work, damages resulting from defective Work, lost revenues or costs of substitute facilities, or damages suffered by others who then seek to recover their damages from City (for example, delay claims of other contractors, subcontractors, tenants, or other third-parties), and defense costs thereof. Article 4. Contract Sum 4.1 City shall pay Contractor the Contract Sum for completion of Work in accordance with Contract Documents as set forth in Contractor’s Bid, attached hereto: See Exhibit “A” attached Article 5. Contractor’s Representations In order to induce City to enter into this Contract, Contractor makes the following representations and warranties: 5.1 Contractor has visited the Site and has examined thoroughly and understood the nature and extent of the Contract Documents, Work, Site, locality, actual conditions, as-built conditions, and all local conditions, and federal, state and local laws and regulations that in any manner may affect cost, progress, performance or furnishing of Work or which relate to any aspect of the means, methods, techniques, sequences or procedures of construction to be employed by Contractor and safety precautions and programs incident thereto. 5.2 Contractor has examined thoroughly and understood all reports of exploration and tests of subsurface conditions, as-built drawings, drawings, products specifications or reports, available for Bidding purposes, of physical conditions, including Underground Facilities, or which may appear in the Drawings. Contractor accepts the determination set forth in these Documents and Document 00700 (General Provisions) of the limited extent of the information contained in such materials upon which Contractor may be entitled to rely. Contractor agrees that except for the information so identified, Contractor does not and shall not rely on any other information contained in such reports and drawings. 5.3 Contractor has conducted or obtained and has understood all such examinations, investigations, explorations, tests, reports and studies (in addition to or to supplement those referred to in Section 5.2 of this Document 00520) that pertain to the subsurface conditions, as-built conditions, underground facilities, and all other physical conditions at or contiguous to the Site or otherwise that may affect the cost, progress, performance or furnishing of Work, as Contractor considers necessary for the performance or furnishing of Work at the Contract Sum, within the Contract Time and in accordance with the other terms and conditions of the Contract Documents, including specifically the provisions of Document 00700 (General Provisions); and no additional examinations, investigations, explorations, tests, reports, studies or similar information or data are or will be required by Contractor for such purposes. 337 Project No. 2017-001 City of Cupertino 00520 - 3 Contract 2016/17 Reconstruction of Curbs, Gutters and Sidewalks 5.4 Contractor has correlated its knowledge and the results of all such observations, examinations, investigations, explorations, tests, reports and studies with the terms and conditions of the Contract Documents. 5.5 Contractor has given City prompt written notice of all conflicts, errors, ambiguities, or discrepancies that it has discovered in or among the Contract Documents and as-built drawings and actual conditions and the written resolution thereof through Addenda issued by City is acceptable to Contractor. 5.6 Contractor is duly organized, existing and in good standing under applicable state law, and is duly qualified to conduct business in the State of California. 5.7 Contractor has duly authorized the execution, delivery and performance of this Contract, the other Contract Documents and the Work to be performed herein. The Contract Documents do not violate or create a default under any instrument, contract, order or decree binding on Contractor. 5.8 Contractor has listed Subcontractors pursuant to the Subcontractor Listing Law, California Public Contracting Code §4100 et seq. in document 00340 (Subcontractors List) Article 6. Contract Documents 6.1 Contract Documents consist of the following documents, including all changes, addenda, and modifications thereto: Document 00002 Signature Page Document 00003 Project Directory Document 00012 Caltrans/City Cross-Reference Table Document 00100 Advertisement For Bids Document 00200 Instructions to Bidders Document 00210 Indemnity and Release Agreement Document 00400 Bid Form Document 00411 Bond Accompanying Bid Document 00430 Subcontractors List Document 00450 Statement of Qualifications Document 00481 Non-Collusion Affidavit Document 00482 Bidder Certifications Document 00520 Contract Document 00530 Insurance Forms Document 00610 Construction Performance Bond Document 00620 Construction Labor and Material Payment Bond Document 00630 Guaranty Document 00650 Agreement and Release of Any and All Claims Document 00660 Substitution Request Form Document 00700 General Conditions Document 00800 Special Conditions Document 00820 Traffic Control Requirements Document 00821 Insurance Document 00822 Apprenticeship Program Document 01010Technical Specifications Addenda(s) Drawings/Plans 6.2 There are no Contract Documents other than those listed in this Document 00520, Article 6. The Contract Documents may only be amended, modified or supplemented as provided in Document 00700 (General Provisions). 338 Project No. 2017-001 City of Cupertino 00520 - 4 Contract 2016/17 Reconstruction of Curbs, Gutters and Sidewalks Article 7. Miscellaneous 7.1 Terms used in this Contract are defined in Document 00700 (General Provisions) and will have the meaning indicated therein. 7.2 It is understood and agreed that in no instance are the persons signing this Contract for or on behalf of City or acting as an employee, agent, or representative of City, liable on this Contract or any of the Contract Documents, or upon any warranty of authority, or otherwise, and it is further understood and agreed that liability of the City is limited and confined to such liability as authorized or imposed by the Contract Documents or applicable law. 7.3 Contractor shall not assign any portion of the Contract Documents, and may subcontract portions of the Contract Documents only in compliance with the Subcontractor Listing Law, California Public Contracting Code §4100 et seq. 7.4 The Contract Sum includes all allowances (if any). 7.5 In entering into a public works contract or a subcontract to supply goods, services or materials pursuant to a public works contract, Contractor or Subcontractor offers and agrees to assign to the awarding body all rights, title and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. §15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services or materials pursuant to the public works contract or the subcontract. This assignment shall be made and become effective at the time City tenders final payment to Contractor, without further acknowledgment by the parties. 7.6 Copies of the general prevailing rates of per diem wages for each craft, classification, or type of worker needed to execute the Contract, as determined by Director of the State of California Department of Industrial Relations, are deemed included in the Contract Documents and on file at City’s office, or may be obtained of the State of California web site http://www.dir.ca.gov/DLSR/PWD/Northern.html and shall be made available to any interested party on request. Pursuant to Section 1861 of the Labor Code, Contractor represents that it is aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self -insurance in accordance with the provisions of that Code, and Contractor shall comply with such provisions before commencing the performance of the Work of the Contract Documents. 7.7 Should any part, term or provision of this Contract or any of the Contract Documents, or any document required herein or therein to be executed or delivered, be declared invalid, void or unenforceable, all remaining parts, terms and provisions shall remain in full force and effect and shall in no way be invalidated, impaired or affected thereby. If the provisions of any law causing such invalidity, illegality or unenforceability may be waived, they are hereby waived to the end that this Contract and the Contract Documents may be deemed valid and binding contracts, enforceable in accordance with their terms to the greatest extent permitted by applicable law. In the event any provision not otherwise included in the Contract Documents is required to be included by any applicable law, that provision is deemed included herein by this reference(or, if such provision is required to be included in any particular portion of the Contract Documents, that provision is deemed included in that portion). 7.8 This Contract and the Contract Documents shall be deemed to have been entered into in the County of Santa Clara, State of California, and governed in all respects by California law (excluding choice of law rules). The exclusive venue for all disputes or litigation hereunder shall be in Santa Clara County. Both parties hereby waive their rights under California Code of Civil Procedure Section 394 to file a motion to transfer any action or proceeding arising out of the Contract Documents to another venue. Contractor accepts the Claims Procedure in Document 00700, Article 12, established under the California Government Code, Title 1, Division 3.6, Part 3, Chapter 5. 339 Project No. 2017-001 City of Cupertino 00520 - 5 Contract 2016/17 Reconstruction of Curbs, Gutters and Sidewalks IN WITNESS WHEREOF the parties have executed this Contract in triplicate the day and year first above written. 2016/17 RECONSTRUCTION OF CURBS, GUTTERS AND SIDEWALKS CITY: CONTRACTOR: CITY OF CUPERTINO, a Municipal Corporation of the State of California By: [Signature] Attest: [Please print name here] Title: [If Corporation: Chairman , President, or Vice President] By: [Signature] [Please print name here] Title: [If Corporation: Secretary, Assistant Secretary, Chief Financial Officer, or Assistant Treasurer] ________________________________________________ State Contractor’s License No. Classification ________________________________________________ Expiration Date Taxpayer ID No._________________________________ Name: Title: Address: Phone: Facsimile: City Clerk: Grace Schmidt Approved as to form by City Attorney: ______________________________________________ City Attorney: Randolph Hom I hereby certify, under penalty of perjury, that Timm Borden, Director of Public Works of the City of Cupertino was duly authorized to execute this document. Dated: _____________________________ David Brandt, City Manager of the City of Cupertino, a Municipal Corporation of the State of California Designated Representative: Name: Roger Lee Title: Assistant Director of Public Works Address: 10300 Torre Ave., Cupertino, CA 95014 Phone: 408-777-3354 Facsimile: 408-777-3333 AMOUNT: ACCOUNT NUMBER: 270-85-820-900-922 FILE NO.: NOTARY ACKNOLEDGEMENT IS REQUIRED. IF A CORPORATION, CORPORATE SEAL AND CORPORATE NOTARY ACKNOWLEDEMENT AND FEDERAL TAX ID ARE REQUIRED. IF NOT A CORPORATION SOCIAL SECURITY NO. IS REQUIRED END OF DOCUMENT 340 341 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1847 Name: Status:Type:Second Reading of Ordinances Agenda Ready File created:In control:7/13/2016 City Council On agenda:Final action:8/2/2016 Title:Subject: Second Reading of an ordinance amending section 11.27.145 of the Cupertino Municipal Code relating to Designation of Preferential Parking Zone on Hammond Way Sponsors: Indexes: Code sections: Attachments:Staff Report A - Permit Parking Map B - Draft Ordinance Action ByDate Action ResultVer. City Council8/2/20161 Subject:SecondReadingofanordinanceamendingsection11.27.145oftheCupertino Municipal Code relating to Designation of Preferential Parking Zone on Hammond Way ConductthesecondreadingandenactOrdinanceNo.16-2145:“AnordinanceoftheCity CounciloftheCityofCupertinoamendingsection11.27.145oftheCupertinoMunicipalCode relatingtodesignationofpreferentialparkingzones”onHammondWayonSaturdays,Sundays and holidays between the hours of 7 a.m. and 4 p.m. CITY OF CUPERTINO Printed on 7/27/2016Page 1 of 1 powered by Legistar™342 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: August 2, 2016 Subject Second Reading of an ordinance amending section 11.27.145 of the Cupertino Municipal Code relating to Designation of Preferential Parking Zone on Hammond Way. Recommended Action Conduct the second reading and enact Ordinance No. 16-2145: “An ordinance of the City Council of the City of Cupertino amending section 11.27.145 of the Cupertino Municipal Code relating to designation of preferential parking zones” on Hammond Way on Saturdays, Sundays and holidays between the hours of 7 a.m. and 4 p.m. Discussion On July 5, 2016, City Council conducted the first reading of the Municipal Code amendment to establish a preferential parking zone on Hammond Way on Saturdays, Sundays and holidays between the hours of 7 a.m. and 4 p.m. No changes have been made to the Ordinance since it was last presented to the Council. Sustainability Impact None Fiscal Impact A fee of $1,128 has been paid by the neighborhood for administrative costs related to the extension of a preferential parking zone to the neighborhood. Ongoing costs of permit issuance and enforcement are included in the Department operating budgets. _____________________________________ Prepared by: David Stillman, Senior Civil Engineer Reviewed by: Timm Borden, Director of Public Works Approved for Submission by: David Brandt, City Manager Attachments: A – Permit Parking Map B – Draft Ordinance 343 C R I S T O R E Y D R C A N Y O N SERRA ST CRIS T O R E Y D R HAM M O N D W A Y HAMMOND W A Y OAK V A L L E Y R D ¯ Proposed Pemirt Parking Area - Hammond Way Legend Permit Parking Attachment A 344 ORDINANCE NO. 16-2145 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING SECTION 11.27.145 OF THE CUPERTINO MUNICIPAL CODE RELATING TO DESIGNATION OF PREFERENTIAL PARKING ZONES The City Council of the City of Cupertino does hereby ordain that Section 11.27.145 be amended as follows: Street Limits Hours Hammond Way East end to west end Sat, Sun, Holidays 7 a.m. – 4 p.m. INTRODUCED at a regular meeting of the City Council of the City of Cupertino this 5th day of July, 2016 and ENACTED at a regular meeting of the City of Cupertino this 2nd day of August, 2016 by the following vote: Vote Council Members AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: /s/Grace Schmidt /s/Barry Chang ___________________ ____________________ City Clerk Mayor, City of Cupertino 345 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1846 Name: Status:Type:Second Reading of Ordinances Agenda Ready File created:In control:7/13/2016 City Council On agenda:Final action:8/2/2016 Title:Subject: Second Reading of an ordinance amending section 11.27.145 of the Cupertino Municipal Code relating to Designation of Preferential Parking Zone on Oak Valley Road, Juniper Court, Sycamore Drive and Black Oak Way Sponsors: Indexes: Code sections: Attachments:Staff Report A - Permit Parking Map B - Draft Ordinance Action ByDate Action ResultVer. City Council8/2/20161 Subject:SecondReadingofanordinanceamendingsection11.27.145oftheCupertino MunicipalCoderelatingtoDesignationofPreferentialParkingZoneonOakValleyRoad, Juniper Court, Sycamore Drive and Black Oak Way ConductthesecondreadingandenactOrdinanceNo.16-2146:“AnordinanceoftheCity CounciloftheCityofCupertinoamendingsection11.27.145oftheCupertinoMunicipalCode relatingtodesignationofpreferentialparkingzones”onOakValleyRoad,JuniperCourt, SycamoreDriveandBlackOakWayonSaturdays,Sundaysandholidaysbetweenthehoursof 7 a.m. and 4 p.m. CITY OF CUPERTINO Printed on 7/27/2016Page 1 of 1 powered by Legistar™346 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: August 2, 2016 Subject Second Reading of an ordinance amending section 11.27.145 of the Cupertino Municipal Code relating to Designation of Preferential Parking Zone on Oak Valley Road, Juniper Court, Sycamore Drive and Black Oak Way. Recommended Action Conduct the second reading and enact Ordinance No. 16-2146: “An ordinance of the City Council of the City of Cupertino amending section 11.27.145 of the Cupertino Municipal Code relating to designation of preferential parking zones” on Oak Valley Road, Juniper Court, Sycamore Drive and Black Oak Way on Saturdays, Sundays and holidays between the hours of 7 a.m. and 4 p.m. Discussion On July 5, 2016, City Council conducted the first reading of the Municipal Code amendment to establish a preferential parking zone on Oak Valley Road, Juniper Court, Sycamore Drive and Black Oak Way on Saturdays, Sundays and holidays between the hours of 7 a.m. and 4 p.m. No changes have been made to the Ordinance since it was last presented to the Council. Sustainability Impact None Fiscal Impact A fee of $1,128 has been paid by the neighborhood for administrative costs related to the extension of a preferential parking zone to the neighborhood. Ongoing costs of permit issuance and enforcement are included in the Department operating budgets. _____________________________________ Prepared by: David Stillman, Senior Civil Engineer Reviewed by: Timm Borden, Director of Public Works Approved for Submission by: David Brandt, City Manager 347 Attachments: A – Permit Parking Map B – Draft Ordinance 348 VAL L E Y O A K VIA ESPLENDORBLA C K O A K S Y C A M O R E C R I S T O R E Y D R INT E R S T A T E 2 8 0 W A Y ST O N E H A V E N D R CT CIR JO S E P H S T D R A M O R E C T CAPI L L A W A Y RD LO C K H A V E N HIG H L A N D S DR O A K V A L L E Y R D JUNIPER C T OAK V A L L E Y R D S E R E N O C T SER E N O D R C R I S T O R E Y D R SY C ¯ Proposed Pemirt Parking Area - Oak Valley Legend Permit Parking Attachment A 349 ORDINANCE NO. 16-2146 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING SECTION 11.27.145 OF THE CUPERTINO MUNICIPAL CODE RELATING TO DESIGNATION OF PREFERENTIAL PARKING ZONES The City Council of the City of Cupertino does hereby ordain that Section 11.27.145 be amended as follows: Street Limits Hours Oak Valley Road Cupertino City Limit to Sycamore Drive Sat, Sun, Holidays 7 a.m. – 4 p.m. Juniper Court Oak Valley Road to end Sat, Sun, Holidays 7 a.m. – 4 p.m. Sycamore Drive St. Joseph Avenue to Oak Valley Road Sat, Sun, Holidays 7 a.m. – 4 p.m. Black Oak Way Sycamore Drive to end Sat, Sun, Holidays 7 a.m. – 4 p.m. INTRODUCED at a regular meeting of the City Council of the City of Cupertino this 5th day of July, 2016 and ENACTED at a regular meeting of the City of Cupertino this 2nd day of August, 2016 by the following vote: Vote Council Members AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: /s/Grace Schmidt /s/Barry Chang ___________________ ____________________ City Clerk Mayor, City of Cupertino 350 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1824 Name: Status:Type:Ordinances and Action Items Agenda Ready File created:In control:6/28/2016 City Council On agenda:Final action:8/2/2016 Title:Subject: Cancel the Regular Meeting of December 6 and call a Special Meeting for December 8 to receive the Certification of Election results from the November 8 General Municipal Election and conduct the swearing-in ceremony Sponsors: Indexes: Code sections: Attachments:Staff Report Action ByDate Action ResultVer. City Council8/2/20161 Subject:CanceltheRegularMeetingofDecember6andcallaSpecialMeetingforDecember 8toreceivetheCertificationofElectionresultsfromtheNovember8GeneralMunicipal Election and conduct the swearing-in ceremony CanceltheRegularMeetingofDecember6andcallaSpecialMeetingforDecember8to receivetheCertificationofElectionresultsfromtheNovember8GeneralMunicipalElection and conduct the swearing-in ceremony CITY OF CUPERTINO Printed on 7/27/2016Page 1 of 1 powered by Legistar™351 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: August 2, 2016 Subject Cancel the Regular Meeting of December 6 and call a Special Meeting for December 8 to receive the Certification of Election results from the November 8 General Municipal Election and conduct the swearing-in ceremony. Recommended Action Cancel the Regular Meeting of December 6 and call a Special Meeting for December 8 to receive the Certification of Election results from the November 8 General Municipal Election and conduct the swearing-in ceremony. Discussion Recently signed legislation changed the Elections Code to allow the Registrar of Voters Office 30 days to certify the election rather than 28 days. EC 15372(a): The elections official shall prepare a certified statement of the results of the election and submit it to the governing body within 30 days of the election. The Elections Code allows certification of the results either at a regular meeting or special meeting called for that purpose. 30 days after the election is December 8, which would be the earliest date available to certify the election results and swear in the new City Council members. Sustainability Impact None Fiscal Impact None _____________________________________ Prepared by: Grace Schmidt, City Clerk Approved for Submission by: David Brandt, City Manager Attachments: None 352 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1866 Name: Status:Type:Ordinances and Action Items Agenda Ready File created:In control:7/21/2016 City Council On agenda:Final action:8/2/2016 Title:Subject: First Reading of an ordinance amending section 11.27.145 of the Cupertino Municipal Code relating to Designation of Preferential Parking Zone on Canyon Oak Way Sponsors: Indexes: Code sections: Attachments:Staff Report A - Permit Parking Map B - Draft Ordinance Action ByDate Action ResultVer. City Council8/2/20161 Subject:FirstReadingofanordinanceamendingsection11.27.145oftheCupertinoMunicipal Code relating to Designation of Preferential Parking Zone on Canyon Oak Way ConductthefirstreadingofOrdinanceNo.16-2147:“AnordinanceoftheCityCouncilofthe CityofCupertinoamendingsection11.27.145oftheCupertinoMunicipalCoderelatingto designationofpreferentialparkingzones”onCanyonOakWayonSaturdays,Sundaysand holidays between the hours of 7 a.m. and 4 p.m. CITY OF CUPERTINO Printed on 7/27/2016Page 1 of 1 powered by Legistar™353 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: August 2, 2016 Subject First Reading of an ordinance amending section 11.27.145 of the Cupertino Municipal Code relating to Designation of Preferential Parking Zone on Canyon Oak Way. Recommended Action Conduct the first reading of Ordinance No. 16-____: “An ordinance of the City Council of the City of Cupertino amending section 11.27.145 of the Cupertino Municipal Code relating to designation of preferential parking zones” on Canyon Oak Way on Saturdays, Sundays and holidays between the hours of 7 a.m. and 4 p.m. Discussion A petition has been received from residents on Canyon Oak Way, between the limits of 21101 Canyon Oak Way and Cristo Rey Drive. The residents are requesting permit parking be established on Saturdays, Sundays and holidays between 7 a.m. and 4 p.m. This neighborhood has seen a large amount of parking overflow from visitors to Rancho San Antonio Park. The petition has been signed by 77% (17 out of 22) of the resident owners of this segment of Canyon Oak Way. The residents understand that they will be subject to enforcement during the posted times and that permits will need to be displayed on the vehicle when parking on the street. Sustainability Impact None Fiscal Impact A fee of $1,128 has been paid by the neighborhood for administrative costs related to the extension of a preferential parking zone to the neighborhood. Ongoing costs of permit issuance and enforcement are included in the Department operating budgets. _____________________________________ Prepared by: David Stillman, Senior Civil Engineer Reviewed by: Timm Borden, Director of Public Works 354 Approved for Submission by: David Brandt, City Manager Attachments: A – Permit Parking Map B – Draft Ordinance 355 M A N Z A N I T A C T DR M A D R O N E C T PE R A L T A C T O A K W A Y C A N Y O N SERRA ST CRIS T O R E Y D R HAM M O N D W A Y HAMMOND W A Y ST S T E P H A N D R ST P A T R I C K ' S D R ST F R A N C I S D R ST F R A N C I S C I R CRISTO RE Y KRINGOAK V A L L E Y R D ST M A R Y ' S D R CT MA D R O N E MA N Z A N I T A C T 10450 1049 5 22238 22248 22249 22239 22219 22228 22218 22229 22209 2219 9 2218 9 22179 21201 21200 21190 21180 21170 21160 21150 21161 21171 10480 10470 10460 1044010451 10461 10471 10481 10491 21151 21140 21130 21120 21110 21101 1052 3 1051 3 1050 7 1050 3 1049 3 1050 4 1051 4 10524 1053 5 1052 5 1050 5 1051 5 1050 6 10516 10526 10536 105 0 7 1047 71048 1 10467 10436 10475 10465 10485 21070 1049 4 1049 6 21060 2106 8 21050 1045 8 1045 6 10437 1048 7 10517 1053110527 10537 105 4 7 105 5 6 10546 104 9 7 1045 7 1044 7 10466 1049 2 1050 2 1051 2 1052 2 21131 21127 21121 21111 2109 0 2110 0 22557 1023 5 ¯ Proposed Permit Parking Area - Canyon Oak Way Legend Permit Parking 356 ORDINANCE NO. 16- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING SECTION 11.27.145 OF THE CUPERTINO MUNICIPAL CODE RELATING TO DESIGNATION OF PREFERENTIAL PARKING ZONES The City Council of the City of Cupertino does hereby ordain that Section 11.27.145 be amended as follows: Street Limits Hours Canyon Oak Way Cristo Rey Drive to 21101 Canyon Oak Way Sat, Sun, Holidays 7 a.m. – 4 p.m. INTRODUCED at a regular meeting of the City Council of the City of Cupertino this 2nd day of August, 2016 and ENACTED at a regular meeting of the City of Cupertino this ___ day of ____________, 2016 by the following vote: Vote Council Members AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: /s/Grace Schmidt /s/Barry Chang ___________________ ____________________ City Clerk Mayor, City of Cupertino 357 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1764 Name: Status:Type:Ordinances and Action Items Agenda Ready File created:In control:6/6/2016 City Council On agenda:Final action:8/2/2016 Title:Subject: Propose amendments to the Policy and Procedures Manual for Administering Deed- Restricted Affordable Housing Units (the BMR Manual). The proposed changes clarify and expand procedures and requirements for (1) Section 2.2 on Conflict of Interest to exclude from purchase or rent of any BMR unit any City or consultant employees and officials who have policy-making authority or influence regarding City housing programs, participate in making decisions regarding City housing programs, administer City housing programs, or whose salary is paid in any part from a City housing program; and (2) Section 5.0 on the Appeal Process to streamline the process and to ensure that an appeal can be concluded before a BMR unit is sold Sponsors: Indexes: Code sections: Attachments:Staff Report A - Draft Resolution B - BMR Administrative Manual_revised clean C - BMR Manual_redline D - HC Resolution No 16-03-BMR Manual Action ByDate Action ResultVer. City Council8/2/20161 Subject:ProposeamendmentstothePolicyandProceduresManualforAdministeringDeed- RestrictedAffordableHousingUnits(theBMRManual).Theproposedchangesclarifyand expandproceduresandrequirementsfor(1)Section2.2onConflictofInteresttoexcludefrom purchaseorrentofanyBMRunitanyCityorconsultantemployeesandofficialswhohave policy-makingauthorityorinfluenceregardingCityhousingprograms,participateinmaking decisionsregardingCityhousingprograms,administerCityhousingprograms,orwhosesalary ispaidinanypartfromaCityhousingprogram;and(2)Section5.0ontheAppealProcessto streamline the process and to ensure that an appeal can be concluded before a BMR unit is sold AdoptResolutionNo.16-084amendingthePolicyandProceduresManualforAdministering Deed-Restricted Affordable Housing Units (Below Market Rate (BMR) Manual) CITY OF CUPERTINO Printed on 7/27/2016Page 1 of 1 powered by Legistar™358 COMMUNITY DEVELOPMENT DEPARTMENT CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3308 • FAX: (408) 777-3333 CITY COUNCIL STAFF REPORT Meeting: August 2, 2016 Subject Propose amendments to the Policy and Procedures Manual for Administering Deed- Restricted Affordable Housing Units (the BMR Manual). The proposed changes clarify and expand procedures and requirements for (1) Section 2.2 on Conflict of Interest to exclude from purchase or rent of any BMR unit any City or consultant employees and officials who have policy-making authority or influence regarding City housing programs, participate in making decisions regarding City housing programs, administer City housing programs, or whose salary is paid in any part from a City housing program; and (2) Section 5.0 on the Appeal Process to streamline the process and to ensure that an appeal can be concluded before a BMR unit is sold. Recommended Action Adopt the draft resolution amending the Policy and Procedures Manual for Administering Deed-Restricted Affordable Housing Units (Below Market Rate (BMR) Manual). Background Under Chapter 19.172 of the Cupertino Municipal Code, the City administers a Below Market Rate Housing Program (the "BMR Program") to provide housing affordable to a broad range of households with varying income levels within the City. The City administers the BMR Program under the guidelines included in the Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units (the "BMR Manual"). The City contracts with West Valley Community Services ("WVCS") to manage the BMR Program, including the determination of eligibility of potential homebuyers. The City has become aware of various issues regarding appeal procedures and conflicts of interest in relation to the BMR Program. Staff recommends that the City Council adopt the 359 proposed amendments shown in Attachment C to this report and discussed in detail below. Recommended Changes to BMR Manual Conflict of Interest The recommended changes in Section 2.2 would broaden the conflict of interest policies to exclude from purchase or rent of any BMR unit any City or consultant employees and officials who have policy-making authority or influence regarding City housing programs, participate in making decisions regarding City housing programs, administer City housing programs, or whose salary is paid in any part from a City housing program. If any employee of a consultant, such as an employee of WVCS, is on the waiting list for a particular BMR unit, all review of the application would be done by the City and n ot the consultant. All consultants, including WVCS, would be required to inform the City of any employee that is being considered for purchase or rent of a unit. The adoption of the resolution would adopt the proposed amendments regarding the applicant appeal process and conflict of interest policy shown in Attachment C. The proposed amendments to the BMR Manual were submitted to the Housing Commission at its meeting of June 23, 2016. Commissioners supported the amendments 3-0 (two members absent). Appeal Process WVCS administers the City's BMR Program, including marketing the BMR Program, reviewing applications for BMR units, maintaining a waiting list of qualified applicants, and reviewing applicants' incomes to determine if they are eligible to rent or purchase a BMR unit. If applicants are dissatisfied with decisions made by WVCS, applicants may appeal the WVCS decisions. The current appeal process involves four levels of appeal at WVCS to the following individuals or groups in the following order: (1) the Associate Director, (2) the Executive Director, (3) the Board of Directors Administration Committee, and (4) the full Board of Directors. Separately, the BMR Manual provides for an appeal within 10 days to the Housing Commission, to be forwarded to the City Council for final ruling. This appeal process is lengthy and, given WVCS Board, Housing Commission, and City Council meeting schedules, can well extend for a four- to five-month period. 360 Under the resale restriction agreement recorded against each BMR unit, when an owner decides to sell the unit, the City has an option to purchase the unit at a restricted price. The City then assigns its option to the next qualified buyer on the waiting list. However, once the City provides notice that it is exercising its option to purchase the BMR unit, escrow on the unit must close within 90 days from the date of the City notice. The current appeal process is too long to accommodate this closing window, and any appeal cannot be finally resolved before the unit must be sold. Extending the 90-day period for closing would be inconsistent with the existing recorded agreements and would significantly disadvantage the seller. Therefore, the recommended changes would reduce the appeal process to two levels and limit the process to 60 days total for both the WVCS appeal and the City appeal. Additionally, because such appeals involve sensitive personal information regarding income, staff recommends that the appeal to the City be heard by an outside hearing officer, as is typical for most public agencies, such as housing authorities, that administer housing programs. The recommended changes in Section 5.0 would allow an applicant 10 days to send a written appeal to WVCS, and would reduce the WVCS appeal process from four tiers to only one tier, with the Executive Director providing a decision on the appeal within 10 days from receipt of the notice from the applicant. If the applicant is dissatisfied after the WVCS appeal, the applicant then would have an additional 10 days to submit a written appeal to the City. Any appeal to the City would be heard by an outside hearing officer within 30 days from the date of receipt of the written appeal. In any decision made by WVCS, the appeal process should be clearly communicated to the applicant. Finally, during the appeal period, the recommended changes would provide that the sale of the BMR unit could not take place pending the final resolution of the applicant's appeal. It is therefore crucial that the entire appeal process be completed in a timely manner. The Housing Commission is currently reviewing one appeal. The revised procedures would not apply to this appeal. Additional Changes Being Considered in BMR Manual The Housing Commission, at its August 11th meeting, will review other possible changes to the BMR Manual, including the City Council's suggestion that preferences be added for teachers and other public employees. However, the amendment to the appeal procedures, in particular, is time-critical to ensure that an appeal can be concluded before a BMR unit is sold. Sustainability Impact 361 None. Fiscal Impact In the event of an appeal to the City, the City would need to hire an outside hearing officer to hear the appeal. Prepared by: Benjamin Fu, Assistant Director of Community Development Reviewed by: Aarti Shrivastava, Assistant City Manager Approved for Submission by: David Brandt, City Manager Attachments: A – Draft Resolution B - Proposed amendments to the BMR Administrative Manual C - BMR Administrative Manual redlines D - Housing Commission Resolution No. 16-03, a Resolution of the Housing Commission of the City of Cupertino Recommending Adoption of Amendments to the Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units 362 CITY OF CUPERTINO 10300 Torre Avenue Cupertino, California 95014 RESOLUTION NO. 16-___ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ADOPTING AMENDMENTS TO THE POLICY AND PROCEDURES MANUAL FOR ADMINISTERING DEED RESTRICTED AFFORDABLE HOUSING UNITS WHEREAS, the City of Cupertino (the "City") has since 1993 implemented an Office and Industrial Housing Mitigation Program and a Residential Housing Mitigation Program, described in the Housing Element of the General Plan, requiring the payment of housing mitigation fees by non-residential development and residential projects with six units or less, and requiring the provision of moderate -income and median-income housing in developments with seven units or more (the "Housing Mitigation Program"); and WHEREAS, the Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units serves as the day-to-day operational manual for both City staff and its Below Market-Rate (BMR) program administrator for BMR units generated by the City's Housing Mitigation Program; and WHEREAS, from time to time the Policy and Procedures Manual for Administering Deed Restricted Affordable Housing units is to be updated for clarity, to ensure consistency in review of applications, and to ensure compliance with state law. THEREFORE, BE IT RESOLVED: Section 1. After careful consideration of the facts, exhibits, staff report, testimony, and other evidence submitted in this matter, the City Council finds as follows: 1. The foregoing recitals are true and correct and incorporated into this resolution by this reference. 2. The Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units has been updated to amend the appeal procedures and conflict of interest provisions. 3. Adoption of this resolution is exempt from the California Environmental Quality Act because the proposed changes to the Policy and Procedures Manual for Administering 363 Deed Restricted Affordable Housing Units are not a project, in that the adoption of the Manual is an administrative activity that will not result in direct or indirect physical changes in the environment (CEQA Guidelines Section 15378(b)(5)). Section 2. The City Council hereby approves the amendments to the Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units as shown in Exhibit “A” attached to this resolution. PASSED AND ADOPTED this 2nd day of August 2016, at a meeting of the City Council of the City of Cupertino by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: APPROVED: Grace Schmidt Barry Chang City Clerk Mayor, City of Cupertino 364 Exhibit A Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units (Attached) 365 Approved by the City Council August 2, 2016 Resolution No. 16- City of Cupertino Housing Division Department of Community Development 10300 Torre Avenue Cupertino, CA 95014 Voice: (408)777-3251 Fax: (408)777-3330 366 Table of Contents 1.0 Introduction ..................................................................................................................... 1 2.0 Applicant Selection Process ............................................................................................ 2 2.1 Minimum Tenant/Homebuyer Eligibility Requirements................................................. 2 2.2 Conflict of Interest…………………………..………………………………………….2 2.3 Priority Point Placement System ..................................................................................... .2 2.3.1 BMR Applicant Waiting Lists…………………………………………………………. 3 2.3.2 Applicant’s Right to Refuse BMR unit …………………………..……………………. 3 2.3.3 Housing Constructed with Disabilities…………………………………….………… .. 3 2.3.4 Requests for Reasonable Accommodation…………………………………………… 4 2.3.5 Household Minimum Size to Occupy the BMR unit……….…………………………. 4 2.3.6 Solicitation of Applicants………………………………………………………………4 2.3.7 Submitting an Eligibility Form for a BMR Unit……………………………………….4 2.3.8 Eligibility Process to Reapply on BMR Waitlist………………………………………5 2.3.9 Application Fees………………………………………………………………………. 5 2.3.10 Definition of Employment in Cupertino…………………………………………..…...5 2.4 Annual Gross Income......................................................................................................5 2.4.1 Documentation to Verify Sources of Income………………………………………. ….6 2.5 Assets .............................................................................................................................. 6 2.5.1 Documentation to Support Assets…………………………………………….………. .6 2.6 False Statements ............................................................................................................. 7 3.0 Ownership Units ............................................................................................................. 7 3.1 Income Limits for Ownership Units ................................................................................ 7 3.1.1 Co-applicants…………………………………………………………………………... 8 3.1.2 Household Composition……………………………………………….……………..... 8 3.2 Asset Limit for Ownership Units ................................................................................... 8 3.3 Definition of First-time Homebuyer ............................................................................... 8 3.4 Affordable Sale Price Determination .............................................................................. 9 3.4.1 Initial Prices of Newly Constructed Units……………………………………….…… . 9 3.4.2 Prices of Existing BMR Units……………………………………….…………….... …9 3.5 Financing ........................................................................................................................ 9 3.5.1 Lenders………………………………………………….…………………………. ..... .9 3.5.2 Loan Requirements………………………………………………………………….. .. 9 3.6 Insurance Requirements ............................................................................................... 10 3.7 Required Pre-Purchase Education. ............................................................................... .10 3.8 Minimum Cash Available ............................................................................................. 10 3.9 Documents for Completing Home Purchase.................................................................. 10 3.10 Terms of Affordability……. ....................................................................................... ..11 4.0 Rental Units .................................................................................................................. 11 4.1 Income Limits for BMR Rental Units... ........................................................................ .11 4.1.1 Co-Signers…………………………………………………………………….………11 4.1.2 Household Composition………………………………………………….…………... 11 4.2 Applicant Assets……… ............................................................................................ ...12 4.2.1 Documentation to Support Assets…………………………………………….……… 12 4.3 Rental Rate Determination ............................................................................................ 12 4.4 Previewing of Unit ........................................................................................................ 13 4.5 Owning Property …………………………………………………...………………... 13 367 4.6 Occupancy Conditions ................................................................................................. 13 4.7 Annual Rent Adjustments ............................................................................................. 13 4.8 Annual Re-Certification of Income ............................................................................... 13 4.9 Terms of Tenancy ………………………………………………………….………. . .14 4.10 Availability of New Units for Lease ………………………………………….…… . ..15 4.11 Eligible Prospective Tenants………………………………………….…………… …15 4.12 Prospective Tenant’s Previewing of Unit ...................................................................... 15 4.13 Executed Lease Agreement .......................................................................................... 15 4.14 Annual Rent Adjustments ............................................................................................. 15 4.15 Owner/Manager Certification ....................................................................................... 15 4.16 Terms of Affordability Covenants ................................................................................ 16 4.17 Terms of Tenancy ......................................................................................................... 16 4.18 Occupancy Requirements ............................................................................................. 16 5.0 Appeal Process …………………………………………………………………… ….16 6.0 Authority………………………………………………………………………... .………. 16 List of Exhibits Exhibit 1 Eligibility Form Instructions and Eligibility Form for Rentals or For- Sales Exhibit 2 Application for the BMR program Exhibit 3 Definition of Gross Income Exhibit 4 Buyer’s Disclosure Statement Exhibit 5 BMR Renter Occupancy Certification Exhibit 6 Certificate of Receipt of Administrative Procedures Manual 368 1 1.0 Introduction As required by Section 19.172.030 of the Cupertino Municipal Code, this manual establishes procedures for the on-going administration of the inventory of affordable units, also referred to as Below Market Rate (BMR) units, created by the City of Cupertino’s Residential Housing Mitigation Program. The manual includes procedures and guidelines for prioritizing applicants, evaluating the eligibility of applicants, setting maximum affordable rents and sales prices, and monitoring compliance of tenants and homeowners with the recorded affordability covenants. The manual will provide guidance to City staff, the City’s program administrator, BMR homeowners, B M R renters, a n d p r o p e r t y m a n a g e r s of rental complexes that contain BMR units. The a t t a c h e d exhibits and certain portions of this manual will be updated as necessary to comply with regulation s and policies o f th e United States Depar tmen t o f Housing and Urban Development ( HUD), State of California Department of Housing and Community Development (HCD), and City Housing Element and zoning ordinance. A separate manual, the “Below Market Rate (BMR) Housing Mitigation Program Procedural Manual,” describes the procedures for implementing requirements applicable to developers under the Residential Housing Mitigation Program. The City of Cupertino has overall responsibility for the BMR program although the administration may be contracted out to another agency. The guidelines in this Manual must be interpreted in conjunction with the City’s Housing Element, zoning, and documents implementing the BMR program. 369 2 2.0 Applicant Selection Process 2.1 Minimum Tenant/Homebuyer Eligibility Requirements Every tenant or purchaser of a BMR unit must meet specific minimum eligibility requirements, as follows:  Annual household income (including the income of all household members 18 years of age and older) must not exceed the maximum income limits established for the BMR unit;  All owners must live in the BMR unit as a primary residence;  Potential BMR homeowners must meet the definition of a first-time homebuyer; and  Potential BMR homeowners must be able to obtain primary mortgage financing and have a minimum of 5.0% of the BMR purchase price for down payment plus closing costs (gift funds are allowed) 2.2 Conflict of Interest The following individuals are ineligible to purchase or rent a BMR unit:  City employees and officials (and their immediate family members and dependents) who have policy-making authority or influence regarding City housing programs, participate in making decisions regarding City housing programs, administer City housing programs, or whose salary is paid in any part from a City housing program;  Any consultant to the City and employees of the consultant (and their immediate family members and dependents) who have policy-making authority or influence regarding City housing programs, participate in making decisions regarding City housing programs, administer City housing programs, or whose salary is paid in any part from a City housing program;  An applicant for or developer of the project containing the BMR units and its officers and employees (and their immediate family members), and the property owner of the project and its officers and employees (and their immediate family members); or  Any other individual who has a conflict of interest as defined by federal or state law or the City’s adopted Conflict of Interest Code. In addition, if an employee of any consultant involved with City housing programs is on the waiting list for any BMR unit, all review of that employee’s application must be performed by the City. 2.3 Priority Point Placement System The City has established a priority point placement system that reflects the City’s priorities regarding placement of households into the limited number of BMR affordable units in the City. While not a minimum requirement, the selection of BMR tenants and homebuyers 370 3 will be based on a pr iority point placement system that reflects the City’s priorities regarding placement of households into the limited number of BMR affordable units in the City. Under the priority point placement system, preference is given to applicants who live and/or work in Cupertino, including public service employees. The priority point placement system point scale is listed below. Applicants can receive up to a maximum of three points based on the following criteria below: One Point = Cupertino resident Two Points = Employment in Cupertino Applicants receiving three points shall be considered the highest priority Applicants receiving two points shall be considered the second highest priority Applicants receiving one point shall be considered the third highest priority Applicants receiving zero points shall be considered the lowest priority In addition, applicants who have been displaced from rental housing in Cupertino by public or private redevelopment shall receive a priority over all other applicants. 2.3.1 BMR Applicant Waiting Lists The waitlist application period for BMR for-sale and rental units will open on the first business day of October annually. At that time BMR for-sale and rental unit eligibility forms will be accepted. The waitlist application period will close on the last business day of October annually. Within 30 business days of the submission deadline (last business day of October); the Cit y or its agent will conduct a lottery. Each Eligibility Form will be separated into categories with equivalent priority points, and then randomly assigned a number to be put on the waitlist. Along with the City or its agent, two witnesses assist with the lottery. All candidates will be mailed results of their applications by the end of December annually specifying if they have been denied or approved, and if approved, their applicant number on the waitlist. When selecting BMR tenants or homebuyers for an available BMR unit, the City or its agent will first attempt to identify an eligible household from the highest priority group within the appropriate applicant pool and income designation. BMR units that become available will be offered based upon the order of the waitlist within each priority group. If there is no eligible household in the highest priority group, the City or its agent will then look at applicants in the second highest priority group and so on. 2.3.2 Applicant’s Right to Refuse BMR Unit An applicant has two opportunities annually to refuse a BMR unit and retain their place on the waitlist. If an applicant refuses a third time, then they will be placed at the bottom of the waitlist. 2.3.3 Housing Constructed for People with Disabilities 371 4 Some BMR units may be specially constructed to be accessible for people with disabilities. In the event that an accessible unit becomes available, persons with disabilities on the waitlist will be provided a preference for those BMR units. 2.3.4 Requests for Reasonable Accommodation. If an applicant or member of the applicant’s household has a disability or handicap, an applicant may request a reasonable accommodation in the City’s policies or procedures so that the applicant may take advantage of the City’s BMR program. Examples may include making large-type documents or a reader available to visually impaired applicants, permitting an outside agency to assist with the application process, or allowing another family member to co-sign a loan or lease. An applicant may request a reasonable accommodation at any time in the application process or after having been selected for a BMR unit. 2.3.5 Household Minimum Size to Occupy the BMR Unit To ensure that the City's limited BMR units are used efficiently, a household must be of a size equal to the number of bedrooms in the BMR unit. For instance, to be eligible to purchase a three- bedroom unit, a household must contain at least three members. Minimum household size occupancy standards for BMR units are: 1 bedroom unit = 1 persons 2 bedroom unit = 2 persons 3 bedroom unit = 3 persons 4 bedroom unit = 4 persons 2.3.6 Solicitation of Applicants Applications for BMR rental and ownership units shall be solicited as necessary to maintain an adequate number of applications in each of the following applicant pools: • Very Low Income (up to 50% AMI) – BMR Rental Units • Low Income (up to 80% AMI) – BMR Rental Units • Median Income (up to 100% AMI) – BMR Ownership Units • Moderate Income (up to 120% AMI) – BMR Ownership Units Outreach shall be conducted through the City’s website, program brochures, community workshops, presentations and periodic print media advertising. The City and/or its agent shall be responsible for updating the content on the City’s website and distributing program brochures that are culturally and linguistically appropriate to the community. These brochures will be available at City Hall, the Cupertino Public Library, the Quinlan Community Center, the Cupertino Senior Center and other appropriate locations. Furthermore, the City or its agent shall conduct outreach efforts through local media that are culturall y and linguistically appropriate to the community. 2.3.7 Submitting an Eligibility Form for a BMR Unit 372 5 A sample copy of the BMR Eligibility Form for purchasing or renting is provided as Exhibit 1. 2.3.8 Eligibility Process to Reapply on BMR Waitlist Each year the BMR waitlist resets. For example, even if a BMR applicant scored three points based on the priority point system in a given year, the same priority is not guaranteed for the following year. All prospective candidates must apply annually in October even if the candidate was on the BMR waitlist the prior year, except that displacees must apply within 90 days of receiving a displacement notice. Candidates must keep the City or its agent informed about their current mailing address, telephone contact information, employment information, household composition, or any substantial changes in income that may affect the applicant’s eligibility to remain on the waitlist. 2.3.9 Application Fees BMR application and administrative fees ma y change from time to time. As a result, the most recently approved application and administrative fees will be disclosed by the City or its agent at the time of application annually in October for both BMR for-sale and rental units. There will be no annual fee to maintain an applicant’s place on the waitlist. Exhibit 2 shows a sample copy of the BMR application with required documentation to be certified for the BMR program. 2.3.10 Definition of Employment in Cupertino A letter or verifi cation of employment shall serve as sufficient proof of employment in Cupertino. 2.4 Annual Gross Income Annual household income is defined pursuant to the U.S. Code of Federal Regulations and provided on the website of the U.S. Department of Housing and Urban Development at: http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_35699.pdf Exhibit 3 provides the definitions of what is included and excluded from the determination of annual gross income in accordance with the U.S. Code of Regulations. In summary, gross household income is the sum of all the income for every adult, 18 years or older, living in the unit. Sources of income include all wages or salaries, overtime pay, commissions, fees, tips, bonuses and other compensation, net income from a business or profession or from the rental of real or personal property, interest and dividends, payments received from social security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, payments in lieu of earnings, public assistance, alimony and child support 373 6 received, and any other sources of income. 2.4.1. Documentation to Verify Sources of Income The gross annual incomes of all household members age 18 or older are considered when determining eligibility. The types of income to be verified and the type of documentation that will be requested may include: • Signed copies of federal tax returns for the most recent three years • W2 form for most recent two years • Copies of the last three consecutive payroll stubs or other verification of employment The following income documentation below may also be verified as follows: Source of Income Documentation Salaries and wages Prior three years federal tax returns, two years W2, three most recent payroll stubs Business income Prior t h re e yea rs federal tax returns and verification of income by a certified public accountant or bookkeeper including a mo s t rec e n t q u arter l y profit/loss statement Interest and dividend income Prior three years federal tax returns Retirement and Insurance Income Verification from source Unemployment & Disability Income Verification from source Welfare Assistance Verification from source Alimony, Child Support and Gift Income Verification from source Armed Forces Income Verification from source Other Verification from source 2.5 Assets There are limits to the amount of net assets that are used for eligibility for BMR for- sales and rental units. For households applying to be an owner of a BMR unit, the limit is $100,000. For households applying to be a tenant of a BMR unit, the limit is equal to the maximum household income limited adjusted for household size that is allowable in order to be eligible for the program. The maximum allowable household income limits for the BMR rental program are published annually in the BMR Program brochure. The table below represents what is included and excluded for as assets. 2.5.1 Documentation to Support Assets The following chart contains the types of assets to be verified and the type of documentation that will be requested. 374 7 Assets Documentation Checking Account, Savings Account, Mutual Fund/Money Market Fund, Certificates of Deposit (C.D.) Copies of two mo st recen t s tateme nt s Stocks, including Options Copy of stock certificate or proof of purchase and statement of current value; for stock prices attach a copy of recent dated newspaper or online source that shows the value of each company’s stocks Bonds, including savings bonds Copies of most recent document Trust Copies of most recent document Gift Signed Gift Letter by all parties Personal Loan Letter or loan agreement Down Payment Assistance Loan Copy of Agreement Individual Development Match Account Copy of two most recent statements Other Verification from source 2.6 False Statements During the BMR application process, applicants who intentionally make false statements or misrepresent any facts on the application to purchase or rent a BMR unit will be removed from the BMR waiting list and barred from re-applying for a BMR unit in Cupertino in the future. If the City or its agent should discover that a contract was completed by a purchaser or renter who intentionally made false statements or misrepresented the facts in order to appear eligible, the City will treat this as a breach of the resale and/or rental restrictions and may exercise any remedies allowed under the resale and/or rental agreement including a forced sale of the unit or eviction and the imposition of any civil penalties that apply. 3.0 Ownership Units Requirements for Buying a BMR Unit 3.1 Income Limits for Ownership Units The BMR for-sale program is designed to assist first-time median and moderate-income homebuyers. The BMR for-sale program uses income limits published by HCD annuall y for Santa Clara County, per household size. HCD’s income limits include the median and moderate-income categories and income limits are adjusted per household size. BM R fo r -s al e p ro g ram income limits per household size are published annuall y in the City’s BMR program brochure. An example of median and moderate-income ranges is listed below. 375 8 • Median Income (up to 100% AMI) – BMR Ownership Units • Moderate Income (up to 120% AMI) – BMR Ownership Units 3.1.1 Co-applicants The City or its agent will accept one application per household. A co-applicant is defined as an adult member of the household whether related or unrelated who intends to apply for the BMR unit, be on the title of the property with the applicant, and occupy the unit as his or her primary residence. The combined income and assets of all adult members of the household (including co- applicants) to purchase a BMR unit must not exceed the maximum income limits per household size and asset limitations of the program. All co-applicants must go through the same process a s the a ppli cant and must agree to comply with the program requirements. Non-occupant co-signors are not allowed to assist with the BMR purchase. 3.1.2 Household Composition A household is comprised of one or more persons who may or may not be related. An unborn child can be counted in family s ize once there is medical confirmation of pregnancy. An adoption in process will be counted in family size with verification of the adoption process being underway. A child will be considered part of the household when the child lives with a single parent for at least 75% of the time or in instances of joint custody, at least 50%. The applicant will need to submit a copy of the divorce decree and/or child custody agreement as verifiable documentation. If a divorce is in process, it may not be possible to qualify an applicant because family size and financial status are unclear. If the applicants are proposing to combine households with the purchase of the BMR, the combined household must meet eligibility requirements and combined income must meet the household income limits. 3.2 Asset Limit for Ownership Units Households with net assets over $100,000 held in the United States or foreign countries will not be eligible to purchase a BMR home. Excluded from net assets are: 1) all non- accessible funds, including any assets that generate a penalty when withdrawn i.e. 401K, CALPERS, STRS and other pension plans; and 2) assets that will be used to fund the down payments. Section 2.4 of this manual defines assets and provides the documents that must be submitted to support the calculation of assets. 3.3. Definition of First-time Homebuyer An applicant must be a first-time homebuyer to be considered for a BMR for-sale unit. An applicant shall be considered a first-time homebuyer if they have not owned a home for at least three years. This definition applies to properties owned in foreign countries as well as the United States. An exception will be made for people who were homeowners prior 376 9 to a divorce or legal separation. The City or its agent may verify first-time homebuyer status by (1) reviewing mortgage deductions on the three most recent years of federal tax returns for each adult in the applicant’s household; (2) a signed statement on the application stating homeownership status: and (3) a title search. 3.4 Affordable Sale Price Determination 3.4.1 Initial Prices of Newly Constructed Units Newly constructed initial BMR sales prices will be determined by the City or its agent. The City or its agent will calculate newl y constructed initial BMR sales prices for both median and moderate-income based on the maximum affordable housing cost provisions of Section 50052.5 of the California Health and Safety Code and most recent published HCD income limits. 3.4.2. Prices of Existing BMR Units Resale prices for existing BMR units will be determined by the City or its agent. The City or its agent will reference the Occupancy, Refinancing, and Resale Restriction Agreement with Option to Purchase (Resale Agreement) recorded on the title of the existing BMR unit when calculating the BMR resale price. 3.5 Financing 3.5.1 Lenders Prospective purchasers of BMR units must seek and obtain t h ei r ow n primary mortgage financing in order to purchase a BMR unit. There is no prearranged City financing; however the Cit y and its agent maintain a list of City approved BMR lending institutions who have provided written confirmation through their underwriting and/or bond department that their lending institution is able to provide primary mortgage financing with the City’s BMR requirements. In order to qualify as an approved BMR lender the institution must have reviewed and approved the City’s Resale Restriction Agreement, Deed of Trust and Promissory Note in advance. From time to time the City may require additional training in order for a lending institution to maintain its status as an approved City BMR lender. 3.5.2 Loan Requirements The primary first mortgage loan must be a fully amortized 30-year term fixed principal and interest loan. Interest only loans, negative amortization loans, adjustable rate loans and reverse mortgage loans are not permitted. In some cases the primary 30-year fixed principal and interest loan may be combined with down payment assistance, mortgage assistance or a community program second loan. Under this scenario the primary and secondary lenders must receive written approval from 377 10 the City. 3.6 Insurance Requirements Prior to the sale of any unit, the City shall require that each purchaser secure a standard homeowner’s insurance policy, with the City named as an additional insured. The City will be entitled to any policy proceeds in excess of the affordable unit purchase price if the proceeds are not used to rebuild the home. The insurance policy shall be in an amount equal to the replacement value of the home. At least every five (5) years, the replacement value must be reviewed and adjusted as needed. If the owner hires a contractor to work on the home, the contractor must be licensed and carry liability and workers compensation insurance. 3.7 Required Pre-Purchase Education After the applicant is placed on the BMR Homeownership waitlist and before receiving an offer to purchase a BMR unit, the applicant(s) must attend a BMR pre-purchase education workshop or program offered by the City of Cupertino or a qualified HUD approved agency. If an applicant completes the H U D a p p r o v ed w o r ks h op or C it y a p p r o v e d program, the applicant will receive a certificate of completion. The certificate of completion must be provided as proof of participation in the workshop or program and will be submitted at, or prior to, close of escrow. The applicant must complete pre-purchase education within a reasonable timeframe established by the City or its agent, or the applicant will be removed from the waitlist. 3.8 Minimum Cash Available The applicant(s) should have sufficient readily available assets for a minimum of 5% of the purchase price for down payment, plus closing costs and other associated fees. Gifts funds can be applied towards applicant’s 5% down payment assistance; a signed gift letter is required b y all parties involved. 3.9 Documents for Completing Home Purchase The following documents must be read and signed by the Owner(s) before the sale or resale of a BMR unit is completed: • Buyer's Disclosure Statement (Exhibit 4) • Promissory Note • Deed of Trust • Occupancy, Refinancing, and Resale Restriction Agreement with Option to Purchase (Resale Agreement) • Request for Notice Under Section 2924b of California Civil Code The Resale Agreement requires owners of BMR units to live in their home as their principal place of residence and prohibits renting the home except in cases of hardship. It 378 11 also limits the price at which the homes can be sold. If the owner sells the home above the restricted price, then the owner must pay the City the difference between the restricted price and the sales price. In addition, the owner must follow certain steps and procedures when deciding to sell the home. The City has an option to purchase a BMR home at the restricted price whenever the owner decides to sell the home or if the owner violates any agreements. The purpose of the Promissory Note, Resale Agreement, and Deed of Trust is to make sure that BMR homes remain affordable to other BMR households upon resale. The Buyer's Disclosure Statement is attached as Exhibit 4 and should be reviewed by all applicants who desire to purchase BMR homes. It summarizes the major provisions of the other documents to ensure that a BMR owner understands his or her obligations under the program. The City or its agent will provide the other documents to any interested applicant and to all applicants who are considered for purchase of a particular BMR unit. 3.10 Term of Affordability The deed restrictions imposed on each BMR affordable unit pursuant to the program shall remain in effect for a period of 99 years from the date of original sale of that unit. Furthermore, the resale restrictions shall renew at each change of title. 4.0 Rental Units Requirements for Renting a BMR Unit 4.1 Income Limits for BMR Rental Units The BMR rental program is designed to assist very low and low-income households. The BMR rental program uses income limits published by HCD annually for Santa Clara County. HCD’s income limits include the ver y low and low-income categories, and income limits are adjusted for household size. BMR r e ntal p ro gra m income limits per household size are published annually in the City’s BMR program brochure. An example of very low and low-income ranges is listed below. • Very Low Income (up to 50% AMI) – BMR Rental Units • Low Income (up to 80% AMI) – BMR Rental Units 4.1.1 Co-Signers Non-occupant co-signers are not allowed to assist with the BMR rentals. 4.1.2 Household Composition A household is comprised of one or more persons who may or may not be related. An unborn child can be counted in family size once there is medical confirmation of pregnancy. 379 12 An adoption in process will be counted in family size with verification of the adoption process being underway. A child will be considered part of the household when the child lives with a single parent for at least 75% of the time or in instances of joint custody, at least 50%. The applicant will need to submit a copy of the divorce decree and/or child custody agreement as verifiable documentation. If a divorce is in process, it may not be possible to qualify an applicant because family size and financial status is unclear. 4.2 Applicant Assets For households applying to be a tenant of a BMR unit, the m a x i m u m a s s e t limit is equal to the maximum household income adjusted for household size that is allowable in order to be eligible for the program. The maximum allowable household income limits for the BMR rental program are published annually in the BMR Program brochure. 4.2.1 Documentation to Support Assets The following chart contains the types of assets to be verified and the type of documentation that will be requested. Assets Documentation Checking Account, Savings Account, Mutual Fund/Money Market Fund, Certificates of Deposit (C.D.) Copies of t w o m o s t r ecen t st at em ent s Assets Documentation Stocks, including Options Copy of stock certificate or proof of purchase and statement of current value; for stock prices attach a copy of recent dated newspaper or online source that shows the value of each company’s stocks Bonds, including savings bonds Copies of most recent document Trust Copies of most recent document Gift Signed Gift Letter by all parties Personal Loan Letter or loan agreement Down Payment Assistance Loan Copy of Agreement Individual Development Match Account Copy of two most recent statements Other Verification from source 4.3 Rental Rate Determination The City or its agent will determine the rental rates for BMR units by income level and household size. The rents will be determined based on annual HCD published income lim its and section 50053 of the California Health and Safety Code. Annual Rent (inclusive of fees and utilities) for very low-income units cannot exceed 30% of 50% of the area median income adjusted for the size of the household appropriate 380 13 for the unit. Annual Rent (inclusive of fees and utilities) for low-income units cannot exceed 30% of 60% of the area median income adjusted for household size appropriate for the unit. Rent includes all charges related to occupancy of the unit including utilities, parking fees, fees for use of common facilities and other fees and charges. If utilities are not paid by the property owner, the rent for the BMR units must be adjusted downward to allow for a utility allowance calculated in accordance with the utility allowances published by the Santa Clara Housing Authority annually. 4.4 Previewing of Unit The City or its agent will coordinate with the apartment manager/ property manager to preview the BMR unit. 4.5 Owning Property Candidate(s) cannot own a home and/or be on title of a property when applying for the BMR rental program. Living in a BMR Rental Unit 4.6 Occupancy Conditions The approved BMR tenant(s) must occupy the BMR unit during the entire term of the lease. If an additional occupant (roommate, famil y member, etc.) moves into the BMR unit, he/she will be considered part of the existing household. In such cases, the BMR tenant must notify the Cit y or its agent prior to the move in date, and the entire household (including the new occupant) will be reevaluated to determine eligibility, including household income requirements. If the tenant(s) fail to receive approval from the City for any changes in occupancy or if the tenant(s) subleases the property, the tenant household will no longer be eligible to occupy the BMR unit. 4.7 Annual Rent Adjustments Maximum BMR rents will be adjusted annually based on the most recently published HCD income limits for Santa Clara County per household size and also in accordance with the California Health and Safety Code Section 50053. The most recent BMR rent levels will be included in the BMR program brochure. The City or its agent will notify the property owner of the new rental rates. If the owner chooses to raise rents, the tenant will be given a 60 day notice before any rent increase. 4.8 Annual Re-Certification of Income At least once a year, the property owner shall requalify BMR tenants to verify that they are eligible to remain in BMR rental units. The City will provide the “BMR Renter 381 14 Occupancy Certification Form” (Exhibit 5) to the property owners. If the BMR renter fails to submit a signed Certification within thirty (30) days of the written request, then the lease shall automatically terminate, and the renter must vacate the unit within thirty (30) days of written notice from the apartment owner/property manager. If the renter fails to vacate the unit, the apartment owner/ property manager will institute evictions proceedings. On an annual basis, Requalification shall be based upon the BMR tenant’s household income, as determined by the three most recent pay stubs, prior year tax returns and household size. If a very low income BMR tenant’s household income increases and exceeds the BMR income limits for very low income household but does not exceed the BMR income limits for a BMR low income household, then the tenant's rent will be increased to BMR low income rents, and the tenant main remain in the unit until either a suitable BMR low income unit becomes available. If a tenant's household income increases and exceeds the BMR income limits for a low income household, the tenant will be given three months to locate alternate housing and vacate the BMR rental unit. A three month extension may be granted in cases of extreme hardship. 4.9 Terms of Tenancy BMR tenants will be subject to the same conditions of tenancy as other tenants occupying the same property, except for terms relating to occupancy, income eligibility, annual recertification, and limits on rents. The initial BMR lease term is for one year. 382 15 Requirements of BMR Property Owners and Managers 4.10 Availability of New Units for Lease An affordable BMR unit may not be leased until the City has approved the unit for occupancy. 4.11 Eligible Prospective Tenants All BMR units must be rented to BMR tenants approved by the City and/or its agent. The services of this agency shall be funded out of the C i t y ’ s Below Market-Rate (BMR) Affordable Housing Fund (AHF) and shall be monitored by the City. An apartment owner/ property manager shall notify the City or its agent of any available BMR units and the City and/or its agent shall have fourteen days to provide owner with an income eligible candidate or candidates. In reviewing each candidate, the owner or propert y manager may apply the same tenant selection criteria, such as past performance in meeting financial obligations and credit references, as those applied to applicants for non-BMR units on the property, except for those standards relating to income eligibility. 4.12 Prospective Tenant’s Previewing of Unit The City or its agent will coordinate with the apartment owner/ property manager so that a prospective tenant may view the unit. 4.13 Executed Lease Agreement The apartment owner/property manager will provide City or its agent with a copy of the executed lease agreement. 4.14 Annual Rent Adjustments Maximum BMR rents will be adjusted annually based on the most recently published HCD income limits for Santa Clara County per household size and also in accordance with the California Health and Safety Code Section 50053. The City or its agent will notify the property owner of the new rental rates. If the owner chooses to raise rents, the tenant must be given 60 days notice before any rent increase. 4.15 Owner/Manager Certification Prior to the rental of the first BMR unit on a property, the apartment owner/property manager will sign a certification of receipt of these Administrative Procedures with a statement of intent to manage the BMR units according to these procedures. The sample copy of the Certification Form is provided as Exhibit 6 of these procedures. Subsequent apartment owners/ property manager may be asked to sign certifications of receipt of these procedures. 383 16 4.16 Terms of Affordability Covenants The deed restrictions imposed on each BMR unit pursuant to the program shall remain in effect for a period of 99 years from the date of recordation of the Regulatory Agreement. Future owners of the property will abide by all of the administrative procedures and by the conditions in the recorded Regulatory Agreement for the entire 99 year period from date of recordation. 4.17 Terms of Tenancy BMR tenants will be subject to the same conditions of tenanc y as other tenants occupying the subject property, except for terms relating to occupancy, income eligibilit y, annual recertification, and limits on rents. The initial BMR lease term must be for one year. 4.18 Occupancy Requirements The property owner/property manager shall notify the City or its agent if it suspects that there have been any changes to the occupancy of the BMR unit. If the tenant fails to receive approval from the City for any changes in occupancy, or subleases the property, or fails to provide the annual occupancy recertification, the tenant shall be in violation of its lease and will no longer qualify as a BMR tenant. 5.0 Appeal Process Any person may appeal a decision made under this Manual. The appellant must file a written appeal with either the Community Development Director (if the program is being administered by the City) or the Executive Director of any agency administering the BMR program within 10 days of receipt of the decision. The Community Development Director or the Executive Director, as applicable, will hear the appeal and provide a written decision on the appeal within 10 days from receipt of the appeal. The appellant may further appeal the decision of the Community Development Director or the Executive Director, as applicable, by filing a written appeal with the Community Development Director within 10 days of receipt of the decision. The appeal will be heard by a hearing officer retained by the City within 30 days from the date of receipt of the written appeal. The hearing officer’s decision on the appeal is final. The sale of any BMR unit at issue in the appeal shall be postponed until a final decision is reached on the appeal, or until the applicable period for filing an appeal has lapsed. 6.0 Authority The Cit y Manager or designee is authorized to sign all documents on behalf of the City that implement the BMR Program and the policies in this Manual, including without limitation promissory notes, deeds of trust, resale restriction agreements, and requests for notice. 384 17 EXHIBITS 385 EXHIBIT 1 18 City of Cupertino & West Valley Community Services Below Market Rate (BMR) Program Eligibility Form Instructions The City of Cupertino and their Agent, West Valley Community Services, is pleased to offer you the opportunity to apply to rent a Below Market-Rate (BMR) apartment or purchase a Below Market-Rate (BMR) home in Cupertino. The City has contracted with West Valley Community Services (WVCS) to process eligibility forms, applications, verify information, determine eligibility, notify applicants of their eligibility, and maintain the rental and purchase waitlists. ELIGIBILITY PROCESS:  Please read these instructions completely, determine your eligibility and complete the enclosed BMR Eligibility Form. The completed form must be received at the WVCS office, 10104 Vista Drive, Cupertino, CA 95014, . (WVCS is located behind the Stevens Creek Fire Station on Stevens Creek Boulevard, one block east of De Anza Boulevard).  WVCS will review your eligibility form and determine your priority ranking (3, 2, 1, or 0) based on current Cupertino residency and current employment in the City of Cupertino. Please see page 2 for definitions of these terms.  A drawing with the eligibility forms will determine the order of eligibility within each priority ranking (3, 2, 1, or 0).  All candidates will be mailed results by the end of the year; if they have been denied or approved, and if approved, the applicant number on the waitlist. The first candidate on the waitlist will be notified to view the next available unit (rental or purchase) and begin the application process. ELIGIBILITY FORM: Please note that all information provided on the Eligibility Form will be verified when you are shown an available unit. Any information found to be false or inaccurate will immediately void your participation in the program. Candidates must keep WVCS updated throughout the year of any changes in information supplied. Incomplete and late Eligibility Forms will not be processed. Rent or Purchase: Choose only one box. Household Size: The total number of individual or family members who will be living in the unit. Income Limits to Qualify for Purchasing a Home: See chart below. The amounts listed are gross (before taxes are taken out). Housing and Community Development (HCD) Income Limits BMR Purchase Program Household Size 1 2 3 4 5 6 Median Income TBD TBD TBD TBD TBD TBD Moderate Income TBD TBD TBD TBD TBD TBD Assets for Sale Program: Households with net assets over $100,000 will not be eligible. Excluded from net assets are all non-accessible funds or any assets that generate a penalty when withdrawn, i.e., 401K, CALPERS, STRS, and other pension plans. First-time Homebuyer: All of the applicants who will be on the property title must be a first-time homebuyer. Applicant(s) shall be considered a first-time homebuyer if they have not owned any residential real estate for at least three years. This definition applies to property owned in foreign countries as well as in the United States. 386 EXHIBIT 1 19 Available Cash for Down Payment, Closing Costs to Purchase: Households are required to have readily available assets for a minimum of 5% down of the purchase price. Housing and Community Development (HCD) Income Guidelines BMR Rental Program Household Size 1 2 3 4 5 6 Very- Low Income TBD TBD TBD TBD TBD TBD Low Income TBD TBD TBD TBD TBD TBD Income Limits to Qualify for a Rental Unit. See chart above. The amounts listed are gross (before taxes are taken out).  The minimum income the household must make is at least 2.5 times the monthly rent. o For Example: $940.00 (in rent) x 2.5= $2350.00 (minimum household income, gross before taxes are taken out). Assets for Rental Program: Households net assets, including and not limited to CD’s, money market accounts and cash/funds, may not exceed the maximum gross income allowed for the appropriate household size. Priority Points are based upon the following criteria:  One point: At least one member of the household, on the property title or lease, must currently maintain a primary residence at an address located within the City of Cupertino.  Two points: At least one member of the household, on the property title or lease, must: o Work for wages or salary within the boundaries of the City of Cupertino; or o Own or operate a business in the City of Cupertino; or o Perform contract or commission work where the actual work is conducted at a Cupertino location. If you have any questions, please contact, Program Manager, Housing Services at: housing@wvcommunityservices.org. PLEASE SUBMIT ONE ELIGIBILITY FORM PER HOUSEHOLD. DUPLICATE FORMS WILL RESULT IN AN AUTOMATIC DISQUALIFICATION. COPIES/ FAXES/ SCANS WILL NOT BE ACCEPTED Please return the completed form to the WVCS office, located at 10104 Vista Drive, Cupertino, CA. 95014. This Program is not designed to aid emergency or immediate housing needs. 387 EXHIBIT 1 20 City of Cupertino-West Valley Community Services Below Market Rate (BMR) Eligibility Form (Please read the Eligibility Form Instructions before completing) RENT PURCHASE Please print clearly. Name: First Last Middle Initial Current Address: City State Zip Code Home Phone: Work Phone: E-Mail: Total Number of Household Members: Total Household Gross Income: (Annual) Estimated Value of Net Assets (Checking, savings, stocks, bonds, and/or CD accounts): 1. Are any members of the household listed on a primary residential property title, at any time, in the past three (3) years? Yes No 2. Are any members of the household currently living in the City of Cupertino? Yes No 3. Are any members of the household currently employed in the City of Cupertino? Yes No By signing below, I certify that all the information on this form is true and complete to the best of my knowledge. When asked, I agree to give proof of this information and knowingly understand that supplying false, incomplete or inaccurate information is punishable under Federal or State criminal law. Signature: Date: 388 21 EXHIBIT 2 WEST VALLEY COMMUNITY SERVICES APPLICATION FOR BELOW-MARKET-RATE HOUSING Please print clearly Name: Gender: Male Female E- Mail: Mailing Address (No P. O. Box ) City: State: Zip: Social Securit y: Driver’s License* and State: Home Phone: Work Phone: * If you do not have a driver’s license write in "None" Marital Status: I am not married (I am single, widowed, or divorced) I am married I am separated from m y spouse. Household Composition (List all individuals who will be living in your home, listing head of household first) Full Legal Name Social Security Date of Birth Age Relationship to head of household (Self, son, daughter, friend) Ethnic Background (P er Department of Housing and Urban Development Guidelines) African American Asian or Pacific Islander Hispanic White or Caucasian American Indian or Alaskan Native (Tribe): Decline to answer 389 EXHIBIT 2 22 INCOME, EARNINGS AND BENEFITS All household members over the age of 18 must complete the information below Full Legal Name Employer Name and Address Total Monthly Wages (gross amount before taxes are deducted AFDC* Amount Child Support (Monthly) Social Security Benefits *Aid to Families with Dependent Children 390 EXHIBIT 2 23 BMR PRIORITY POINT QUESTIONAIRE The purpose of this page is to determine if your household qualifies for Priority Points. Carefull y read each description of priority living and employment circumstances; then check all that apply. You must provide the listed documentation as proof before receiving a unit to rent or purchase. I am a CURRENT CITY of CUPERTINO RESIDENT- 1 POINT  Households appl ying under priorit y description RESIDENT shall provide proof of residenc y in Cupertino.  A utility bill or a rental agreement shall be considered proof of residency. I am working in the C ITY of CUPERTINO- 2 POINTS  A letter or verification from your employer shall serve as sufficient proof. 391 EXHIBIT 2 24 READ, SIGN, AND DATE BELOW By signing below, you certify that all the information on this form is true and complete to the best of your knowledge. If asked, you agree to give proof of the information, which may include a copy of your U.S. or state income tax form. You certify that all the information provided on household composition and income is true and accurate. You understand you are required to cooperate in supplying all information needed to determine eligibility, level of benefits or verify your true circumstances. Your participation includes attending scheduled meetings and completing and signing necessary forms. Failure or refusal to do so may result in delay of application for BMR sales or denial of program services. CRIMINAL AND ADMINISTRATIVE ACTIONS FOR FALSE INFORMATION You understand that knowingly supplying false, incomplete, or inaccurate information may constitute a Felony, punishable under Federal or State criminal law. Knowingly supplying false, incomplete or inaccurate information is grounds for termination of the housing process . You understand that the Housing Representative may perform a background check and/or verification of employment records. Make sure that you have completed, dated, and signed this application. Make a copy of this application for your records and submit the original application to the West Valley Community Services’ office. MAKE SURE THAT YOU HAVE COMPLETED, DATED, AND SIGNED THIS APPLICATION. WVCS will not process incomplete applications. All individuals, over the age of 18, applying for the BMR program must sign below. Print Full Legal Name Signature Date OFFICE USE ONLY Received on: Signature of Housing Representative: Notes: 392 EXHIBIT 2 25 REQUIRED DOCUMENTATION Please review the following checklist to ensure your application is complete. If you are unable to provide copies of the documents listed below, you must submit a written and signed statement to WVCS explaining the reasons for the missing documents. Household Documents:  Copy of rental agreement  Copies of social security cards for each person in the household The following documents must be turned in for each person 18 years or older:  Copies of valid Photo ID  Copies of three (3) most recent consecutive payroll stubs  Copies for other income such as SSI, SS, pension, child support, spousal support, etc.  Copies of W2 forms for the last two (2) years  Copies of Federal Tax return papers for the last two (2) years (1040, 1040EZ, etc.)  Copies of all bank statements (all pages) for the last two months (checking, savings, stocks, bonds, CD’s, etc.)  Copies of all asset statements (all pages) for the last two months (401K, Pension Accounts, Retirement Accounts, etc.)  For rental program: non-refundable $30.00 application fee in the form of check, money order, or cashiers’ check payable to West Valley Community Services  For sales program: non-refundable $50.00 application fee in the form of check, money order or cashiers’ check payable to West Valley Community Services  For sales program: non-refundable $300.00 administrative fee in the form of check, money order, or cashiers’ check payable to West Valley Community Services (at the close of escrow) WVCS will not return any submitted documents or make copies of submitted documents. Please provide copies. 393 EXHIBIT 2 26 Notice to All Applicants Options for Applicants with Disabilities or Handicaps WVCS has an obligation to provide a "reasonable accommodation" to applicants if they or any famil y members have a disability or handicap that requires a change in the usual application process. A reasonable accommodation is some modification or change that we can make to the policies or procedures that will assist an otherwise eligible applicant with a disability to take advantage of the City's BMR program. Examples of a reasonable accommodation include: • Making large type documents or a reader available to a vision impaired applicant during the application process; • Permitting an outside agency to assist an applicant with a disability to meet the property's screening criteria; or • Permitting a sign language interpreter to assist a hearing impaired applicant during the application process. An applicant that has a family member with a disability must sti ll be able to meet the essential obligations of the BMR program. Potential renters must be able to pay rent, care for their apartments, report required information to the owner, avoid disturbing neighbors, etc., but there is no requirement that they be able to do these things without assistance. Potential homeowners must have adequate income to support a mortgage and meet other eligibility criteria. If you or a member of your household has a disability or handicap and think you might need or want a reasonable accommodation, you may request it at any time in the application process. If you would prefer not to discuss your situation with us, that is also your right. 394 EXHIBIT 3 27 CITY OF CUPERTINO HOUSING MITIGATION PROGRAM DEFINITION OF GROSS INCOME Part 5 Inclusions This table presents the Part 5 income inclusions as stated in the Code of Federal Regulations. General Category Statement from 24 CFR 5.609 paragraph (b) (April 1, 2004) 1. Income from wages, salaries, tips, etc. 2. Business Income 3. Interest & Dividend Income 4. Retirement & Insurance Income 5. Unemployment & Disability Income 6. Welfare Assistance The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services. The net income from the operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight-line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family. Interest, dividends, and other net income of any kind from real or personal property. Expenditures for amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation is permitted only as authorized in number 2 (above). Any withdrawal of cash or assets from an investment will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested by the family. Where the family has net family assets in excess of $5,000, annual income shall include the greater of the actual income derived from all net family assets or a percentage of the value of such assets based on the current passbook savings rate, as determined by HUD. The full amount of periodic amounts received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts, including a lump-sum amount or prospective monthly amounts for the delayed start of a periodic amount (except as provided in number 14 of Income Exclusions). Payments in lieu of earnings, such as unemployment and disability compensation, worker's compensation, and severance pay (except as provided in number 3 of Income Exclusions). Welfare Assistance. Welfare assistance payments made under the Temporary Assistance for Needy Families (TANF) program are included in annual income: Qualify as assistance under the TANF program definition at 45 CFR 260.31; and Are otherwise excluded from the calculation of annual income per 24 CFR 5.609(c). If the welfare assistance payment includes an amount specifically designated for shelter and utilities that is subject to adjustment by the welfare assistance agency in accordance with the actual cost of shelter and utilities, the amount of welfare assistance income to be included as income shall consist of: the amount of the allowance or grant exclusive of the amount specifically designated for shelter or utilities; plus the maximu m amount that the welfare assistance agency could in fact allow the family for shelter and utilities. If the family's welfare assistance is reduced from the standard of need by applying a percentage, the amount calculated under 24 CFR 5.609 shall be the amount resulting from one application of the percentage. 7. Alimony, Child Support, & Gift Income Periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from organizations or from persons not residing in the dwelling. 8. Armed Forces All regular pay, special day and allowances of a member of the Armed Forces (except as provided in Income number 7 of Income Exclusions). 395 EXHIBIT 3 28 General Category Statement from 24 CFR 5.609 paragraph (c) (April 1, 2004) 1. Income of Children Income from employment of children (including foster children) under the age of 18 years. 2. Foster Care Payments Payments received for the care of foster children or foster adults (usually persons with disabilities, unrelated to the tenant family, who are unable to live alone). 3. Inheritance and Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident Insurance Income insurance and worker's compensation), capital gains and settlement for personal or property losses (except as provided in number 5 of Income Inclusions). 4. Medical Expense Reimbursements Amounts received by the family that are specifically for, or in reimbursement of, the cost of medical expenses for any family member. 5. Income of Live-in Aides Income of a live-in aide (as defined in 24 CFR 5.403). 6. Disabled Persons C rtain increases in income of a disabled member of qualified families residing in HOME-assisted housing or receiving HOME tenant-basedrental assistance (24 CFR 5.671(a)). 7. Student Financial Aid The full amount of student financial assistance paid directly to the student or to the educational institution. 8. Armed Forces Hostile Fire Pay 9. Self-Sufficiency a. Amounts received under training programs funded by HUD. Program Income b. Amounts received by a person with a disability that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set side for use under a Plan to Attain Self-Sufficiency (PASS). c. Amounts received by a participant in other publicly assisted programs that are specifically for, or in reimbursement of, out-of-pocket expenses incurred (special equipment, clothing, transportation, childcare, etc.) and which are made solely to allow participation in a specific program. d. Amounts received under a resident service stipend. A resident service stipend is a modest amount (not to exceed $200 per month) received by a resident for performing a service for the PHA or owner, on a part- time basis, that enhances the quality of life in the development. Such services may include, but are not limited to, fire patrol, hall monitoring, lawn maintenance, resident initiatives coordination, and serving as a member of the PHA's governing board. No resident may receive more than one such stipend during the same period of time. e. Incremental earnings and benefits resulting to any family member from participation in qualifying state or local employment training programs (including training not affiliated with a local government) and training of a family member as resident management staff. Amounts excluded by this provision must be received under employment training programs with clearly defined goals and objectives, and are excluded only for the period during which the family member participates in the employment training program. 10. Gifts Temporary, nonrecurring, or sporadic income (including gifts). 11. Reparations Reparation payments paid by a foreign government pursuant to claims filed under the laws of that government by persons who were persecuted during the Nazi era. 12. Income from Full-time Students 13. Adoption Assistance Adoption assistance payments in excess of $480 per adopted child. Payments 14. Social Security & SSI Income Deferred periodic amounts from SSI and Social Security benefits that are received in a lump sum amount or in prospective monthly amounts. 15. Property Tax Amounts received by the family in the form of refunds or rebates under state or local law for property taxes paid on the Refunds dwelling unit. 16. Home Care Assistance Amounts paid by a state agency to a family with a member who has a developmental disability and is living at home to offset the cost of services and equipment needed to keep this developmentally disabled family member at home. Part 5 exclusions This table presents the Part 5 income exclusions as stated in the Code of Federal Regulations. e The special pay to a family member serving in the Armed Forces who is exposed to hostile fire. Earnings in excess of $480 for each full-time student 18 years old or older (excluding the head of household or spouse). 396 29 EXHIBIT 3 16. Home Care Assistance Amounts paid by a state agency to a family with a member who has a developmental disability and is living at home to offset t he cost of services and equipment needed to keep this developmentally disabled family member at home. 17. Other Federal Exclusions Amounts specifically excluded by any other federal statute from consideration as income for purposes of determining eligibili ty or benefits under a category of assistance programs that includes assistance under any program to whi ch the exclusions of 24 CFR 5.609(c) apply, including:  The value of the allotment made under the Food Stamp Act of 1977;  Payments receive d under the Domestic Volunteer Service Act of 1973 (employment through VISTA, Retired Senior Volunteer Program, Foster Grandparents Program, youthful offender incarceration alternatives, senior companions);  Payments received under the Alaskan Native Claims Settlement Act;  Income derived from the disposition of funds to the Grand River Band of Ottawa Indians;  Income derived from certain submarginal land of the United States that is held in trust for certain Indian tribes;  Payments or allowances made under the Department of Health and Human Services' Low-Income Home Energy Assistance Program;  Payments received under the Maine Indian Claims Settlement Act of 1980 ( 25 U.S.C. 1721);  The first $2,000 of per capita shares received from judgment funds awarded by the Indian Claims Commission or the U.S. Claims Court and the interests of individual Indians in trust or restricted lands, including the first $2,000 per year of income received by individual Indians from funds derived from interests held in such trust or restricted lands;  Amounts of scholarships funded under Title IV of the Higher Education Act of 1965, including awards un der the Federal workstudy program or under the Bureau of Indian Affairs student assistance programs;  Payments rece ived from programs funded under Title V of the Older Americans Act of 1985 (Green Thumb, Senior Aides, OlderAmerican Community Service Employment Program);  Payments rece ived on or after January 1, 1989, from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in the In Re Agent Orange product liability litigation,M.D.L. No. 381 (E.D.N.Y.);  Earned income tax credit refund payments received on or after January 1, 1991, including advanced earned income credit payments;  The value of any child care provided or arranged (or any amount received as payment for such care or reimbursement for costs incurred for such care) under the Child Care and Development Block Grant Act of 1990;  Payments received under programs funded in whole or in part under the Job Training Partnership Act (employment and training programs for Native Americans and migrant and seasonal farm worker s, Job Corps, state job training programs and career intern programs, AmeriCorps);  Payments by the Indian Claims Commission to the Confederated Tribes and Bands of Yakima Indian Nation or the Apache Tribe of Mescalero Reservation;  Allowances, earnings, and payments to AmeriCorps participants under the National and Community Service Act of 1990;  Any allowance paid under the provisions of 38 U.S.C. 1805 to a child suffering from spina bifida who is the child of a Vietnam veteran;  Any amount of crime victim compensation (under the Victims of Crime Act) received through crime victim assistance (or payment or reimbursement of the cost of such assistance) as determined under the Victims of Crime Act because of the commission of a crime against the applicant under the Victims of Crime Act; and  Allowances, earnings, and payme nts to individuals participating in programs under the Workforce Investment Act of 1998. 397 30 EXHIBIT 4 BUYER'S DISCLOSURE STATEMENT CITY OF CUPERTINO INCLUSIONARY HOUSING PROGRAM The City of Cupertino (the "City") has adopted an Inclusionary Housing Ordinance that makes it possible for median and moderate income households to buy a house at a price that is affordable. The price that you are paying for your house is below the market rate, as required by the Inclusionary Housing Ordinance. In exchange for giving you the opportunity to buy your house at a below-market affordable price, the City will require you to sign a Promissory Note, Deed of Trust, and an Occupancy, Refinancing, and Resale Agreement with Option to Purchase (the "Resale Agreement"). The Deed of Trust and Resale Agreement will be recorded against your property. These documents are enforceable by the City. In general, the Promissory Note, Deed of Trust and the Resale Agreement set forth conditions that you must meet, including but not limited to the following:  The Resale Agreement requires you to live in your home as your principal place of residence and prohibits you from renting out your home.  The Resale Agreement places controls on the sale of your home. There is a limit to the price at which you can sell the home. If you sell the home above the restricted price, you must pay the City the difference between the restricted price and the sales price. In addition, you must follow certain steps and procedures when you decide to sell your  home.  The City has an option to purchase your home at a restricted price when you put the home up for sale or if you violate any agreements. The purpose of the Promissory Note, Resale Agreement, and Deed of Trust is to make sure that the City's goal of providing affordable homeownership opportunities to moderate income buyers continues to be met by keeping your house affordable to other moderate income households should you choose to sell or move. The City has helped you to buy a home; it wants to help others as well. This Disclosure Statement explains the major provisions of the Promissory Note, Deed of Trust, and Resale Agreement so that you will understand their requirements. You should, of course, read the entire Promissory Note, the Resale Agreement, and the Deed of Trust and become familiar with them if you are considered for the purchase of a particular BMR home.1 1 Numerical examples are included in this Disclosure Statement to help you better understand the provisions of the Buyer's Resale Agreement and Promissory Note. Please be aware that these are simply to show how things work and that they are not intended to represent your specific situation. If you follow along with a calculator, you may not get exactly the same answers. Any differences are probably due to how your calculator "rounds-off" numbers. 398 31 REQUIREMENTS WHILE LIVING IN A BMR UNIT A. REQUIREMENTS IN EFFECT FOR 99-YEAR TERM The requirements that are in the Resale Agreement apply until the earlier of (i) ninety- nine (99) years from the date of the recordation of the Resale Agreement, or (ii) the date you sell or transfer your home in accordance with the Resale Agreement and the Deed of Trust. If you own and live in your home for the whole 99-year term, all of the requirements of the Resale Agreement go away. B. PRIMARY RESIDENCE AND ANNUAL CERTIFICATION Your house must be your main place of residence. This means you must live in your home for at least 10 months out of each calendar year. At least once per year, City or its agent will verify that owners continue to occupy the BMR units. The verification process will include the following steps:  The City or its agent will mail to all BMR units a Certification of Owner Occupancy.  You must complete the form and return it to the City within 30 days, including proof of occupancy such as a copy of the most recent mortgage statement, property tax bill, or utility bill.  The City or its agent will annually order property title lot books to verify homeownership and liens on the property. Failure to Subm it Annual Certification If the City determines that you have willfully made false statements or misrepresented any facts on the annual certification, o r i f yo u f a i l t o su bm i t th e C e rt i fi c a ti o n o f O w n er O c c u p a n c y, the City will treat this as a breach of the Resale Agreement and the Deed of Trust and will take all legal remedies available, including forced sale of the unit. C. LEASE OR RENT OF HOME You are not allowed to lease or rent the house to anyone, ex cept that in the event of substantial hardship, you may rent-out the house for no more than 12 months, with prior written City approval. If the City permits you to rent out your home for up to 12 months, you may only rent the home to a lower income household, and the rent you may charge is restricted by the City to an affordable rent, as defined by state law (approximately 30% of the tenant's household income, less an allowance for utilities). If you violate these requirements, the City may sue to enforce them, and you will owe the City any Excess Rental Proceeds you have collected (i.e., the rent in excess of the restricted amount you are permitted to charge). You will also be in default under the Resale Agreement, and the City may require you to sell the home to the City in the manner described in the Resale Agreement. D. MAINTAINING YOUR HOME/ PROPERTY INSURANCE By signing the Resale Agreement and Deed of Trust, you agree to keep your home and landscaping in good repair and in neat, clean, and orderly condition and to prevent deterioration 399 32 of the home. You agree not use or dispose of an y h azardous substances on the property, except those commonly used on residential properties. You also agree to keep a standard homeowner's insurance policy, with the City named as an additional insured. The insurance policy shall be in an amount equal to the replacement value of the home. Every five (5) years, the replacement value will be reviewed and adjusted as needed, if requested by the City. If you hire a contractor to work on your home, the contractor must be licensed and carry liability and workers compensation insurance. E. CAPITAL IMPROVEMENTS If you make improvements to your home, and you want the value of the capital improvements to be taken into account when the Maximum Restricted Resale Price (or option price) is calculated, you must obtain written approval of the improvements by the City before the improvements are made. The initial cost of such improvements must be at least $2,000 or more, and the improvements must conform with existing building codes and with Federal Housing Quality Standards. A copy of the receipts and invoices must be submitted to the City or its agent for proof of the capital improvements made to your home. F. REFINANCE AND JUNIOR MORTGAGES The Resale Agreement allows you to refinance your first mortgage loan or place a second mortgage or equity line of credit on your home, but places restrictions on the amount received by you from the refinancing. Following refinancing of your first mortgage or the addition of a junior mortgage, the principal amount of all debt secured by your house must not be greater than the larger of: (i) 90 percent of the Maximum Restricted Resale Price; or (ii) the original amount of all the loans you took out to finance the purchase of your home. If you are considering a refinance of your first mortgage or obtaining a junior mortgage, you should contact the City for a calculation of the Maximum Restricted Resale Price amount before you contact your financial institution. The City will not approve any mortgage that allows payment of interest only, negative amortization, adjustable rate, or reverse mortgage. REQUIREMENTS FOR SELLING OR TRANSFERRING OWNERSHIP OF A BMR UNIT A. CITY HAS OPTION TO PURCHASE In exchange for the opportunity given to you to buy your home at an affordable, below- market price, the City has an option to buy your home at a restricted price if you sell your home or transfer ownership during the term of the Resale Agreement or if you violate any of the terms of the Resale Agreement. In other words, the City has the first opportunity to buy your house before anyone else. The Cit y may also give its option to purchase your house to a public agency, a nonprofit organization, or a person or family meeting income and other requirements. 400 33 B. PERMISSIBLE TRANSFERS OF OWNERSHIP – NOT A SALE Certain transfers of ownership are allowed although these transfers will require the new owner or owners to sign new BMR documents. The following transfers are permitted under the BMR program. The City must be informed of these transfers, but the City does not have the right to purchase your home if you transfer ownership to:  An existing spouse or domestic partner;  A spouse or domestic partner where the spouse or domestic partner becomes the co-owner of the home;  One spouse as part of a marriage dissolution proceeding;  An existing spouse or domestic partner of owner by devise or inheritance following the death of owner; or  An inter vivos (living) trust in which the owner is the beneficiary and trustee, provided a new resale restriction is executed in the name of the living trust and the BMR owner provides the City with a copy of the trust document or cer tifi cation of trust to verify the trustee information. Inheritance In the event that someone inherits your home, the administrator of your estate or the person inheriting your home must contact the City within 30 days of your death. If the person inheriting your home qualifies as an eligible purchaser, he or she may keep your home, but he or she will have to execute new homebuyer documents with the City. If the person inheriting your home does not qualify as an eligible purchaser, he or she will have to sell the home in accordance with the Resale Agreement, but may live in the home for up to 12 months, leave the home vacant for up to 12 months, or rent the home to a low income tenant at a restricted rent for up to a year. If the person inheriting your home does not qualify as an eligible purchaser, and does not comply with the terms of the Resale Agreement, he or she will be in default under the Resale Agreement, and the City may exercise its option to purchase the home at the Maximum Restricted Resale Price. These provisions do not apply to a spouse or domestic partner of the owner. C. PROCESS FOR SELLING A BMR UNIT The first action that you must take if you want to sell your home is to contact the City or its agent and submit an Owner’s Notice of Intent to Transfer. You should do this before you contact a real estate broker and before you put the home on the market. The notice must include a pest report from a licensed pest inspector, other required information, and a description of any capital improvements that you have made and for which you received Cit y approval. The Owner’s Notice of Intent to Transfer must be sent by certified mail with a return receipt requested or by express delivery service with a delivery receipt. Notices are considered effective as of the date received or the date delivery was refused. City’s Response The City will contact you within seven days of receiving the Intent to Transfer to arrange for a time to inspect your property to assess its condition. Within 30 days of the City’s receipt of the Intent to Transfer, the pest control report, other required information, and the capital 401 34 improvement request, and the City’s on-site inspection, the City will send you a City Response Notice. The Notice will explain whether the City intends to exercise its right to purchase or transfer its right to an income-eligible buyer. The City Response Notice will also provide the restricted sales price amount. City Exercises Right to Purchase If the City elects to exercise its right to purchase the property or transfer its right to an income eligible buyer, escrow will close within 90 days of the date that the City Response Notice is sent to you. The City or its agent will select the new buyer from the City's waitlist. When your home is bought by the City or a City-selected buyer under the City's option to purchase, you will pay to the City a transaction fee equal to six percent of the sales price. This fee takes the place of the fee for a broker's services. The City will be performing those services when it purchases your home. You should not contact a broker to sell your home until the City has informed you whether or not it will not exercise its option to purchase your home. If you contact a broker and the City exercises its option, you will owe the City a six percent transaction fee and you will be solely responsible for any additional broker fee. City Elects to Not Exercise Right to Purchase If the City chooses to not exercise its right to purchase the property or assign its right to an income eligible buyer, you may sell the home to an income eligible household for no more than the restricted sales price provided by the City. An eligible purchaser is a household (1) who will live in the home; (2) whose income is equal to or less than the income level designated in the City Response Notice; and (3) who will agree to sign resale restriction documents required by the City and to otherwise cooperate with the City. Once you find a potential eligible purchaser, you must refer the proposed buyer to the City so that the City can determine if in fact the buyer is an eligible purchaser. The seller and the proposed buyer must give specific information and documents to the City as described in the Resale Agreement. When the sale of the home to the eligible purchaser is completed, you must submit to the City the information and documents listed in Resale Agreement. Non-Permissible Transfers You may not transfer title to the BMR unit ( e x c e p t f o r t h e t r a n s f e r s l i s t e d i n S e c t i o n B a b o v e ) without submitting the Owner’s Notice of Intent to Transfer and receiving the City’s approval. Title to the BMR unit may not be transferred to yo u r friends or relatives whose income or assets exceeds the estab lis hed limits, or who will not occupy the BMR unit on a permanent basis after the transfer, or who are otherwise not eligible to purchase a BMR unit. D. SALES PRICE OF BMR UNIT IS RESTRICTED: MAXIMUM RESTRICTED RESALE PRICE 402 35 The City wants to make sure that the price of the BMR unit remains affordable to future median and moderate-income buyers. Therefore, the Resale Agreement limits the sales price of your home. The Maximum Restricted Resale Price that you can receive is the lower of the Indexed Price described in Section D.1 below and the Fair Market Value as described in Section D.2. 1. INDEXED PRICE (a) Owner's Base Price (price at which you bought it) (b) increased by the percentage increase of the Area Median Income for Santa Clara County for a household size of 4 persons from the date of your original purchase (the recording date of the grant deed for the property) to the date of receipt by the City of the Owner's Notice of Intent to Transfer plus (c) appraised value (not cost) of any eligible capital improvements and any special assessments imposed by the homeowners association and paid by you. Eligible capital improvements, among other requirements, must be approved in writing by the City before they are installed, as described previously minus (d) Cost of repairs to correct any violations of building or other codes, to put the house in a "sellable condition," such as cleaning, painting, appliance and other repairs, and other deferred maintenance repairs. Example 1 shows how the Indexed Price formula works. EXAMPLE 1 You sell your house at the end of eight years. The original price of your three- bedroom home was $341,000. The median income for a family of four in Santa Clara County when you bought your home was $105,500. Median income increases by 16% over the eight years. Five years after buying your home, you remodel your kitchen (with prior City written approval) and the remodeling work is valued by an appraiser as worth $3,000 at the time you sell. There is no deferred maintenance. (a) (b) Original Price of Home Median Income Increases by 16% over $341,000 eight years multiply (a) by 16%, then add 54,560 result ($54,560) to (a) $395,560 (c) Appraised Value (not cost) of Eligible Capital Improvements + 3,000 INDEXED PRICE $398,560 2. FAIR MARKET VALUE Under the Resale Agreement, the fair market value can be determined in one of two ways. First, it can be established by a real estate appraiser approved in advance by the City. If 403 36 possible, the appraisal will be based on sales prices of homes similar to yours that are sold in your market area during the preceding three-month period. The appraisal will not take into account the fact that the resale price of your home is restricted by the Resale Agreement. The value of any (i) eligible capital improvements that you have made to your home, or (ii) damage or deferred maintenance that decrease its value shall be included in the appraisal. The cost of the appraisal used to determine fair market value will be paid by you, unless a new buyer has obtained an appraisal that you may utilize. The Resale Agreement also allows you and the City to set the fair market value of your home by mutual agreement instead of relying on an appraiser. Both you and the City would have to agree to this particular method (instead of hiring an appraiser) and to the final fair market value amount. If you and the City fail to agree on the Fair Market Value, either one can require use of the appraisal method. Example 2 shows how the Indexed Price and the Fair Market Value of the home are compared to determine the Maximum Restricted Resale Price at which you can offer your house for sale. EXAMPLE 2 The assumptions are the same as in Example 1. You sell your house at the end of eight years. The original sales price of your home was $341,000. The median income for a family of four in Santa Clara County when you bought the home was $105,500. Median income increases by 16% over the eight years. Five years after buying your home, you remodel your kitchen. The Fair Market Value of your home is determined by appraisal, the cost of which is paid by you. The appraisal determines the Fair Market Value at $450,000. This amount includes the value of the kitchen improvements, at $3,000. PRICE INDEXED is less FAIR MARKET MAXIMUM RESTRICTED PRICE than VALUE then RESALE $398,560 < $450,000 ⇒ $398,560 Since the Fair Market Value of the home is greater than the Indexed Price of the house, the Maximum Restricted Resale Price which you can receive from the sale of your home is $398,560. E. TRANSFER IN VIOLATION OF RESALE RESTRICTION AGREEMENT; PAYMENT OF "EXCESS SALES PROCEEDS" TO CITY If you sell or transfer your home in a wa y that violates the terms of the Resale Agreement, or if the City does not choose to purchase your home and you cannot find an eligible buyer, then you must pay to the City any "Excess Sales Proceeds" that result from the sale of your house. For example, if you do not sell your home to the City or to an eligible purchaser, but to someone else for market value, then you will owe the City any "Excess Sales Proceeds" that result from the sale. The term "Excess Sales Proceeds" is defined in the Resale Agreement as the amount by which the gross sales proceeds you receive from the ineligible buyer exceed the Maximum Restricted Resale Price for the home. Another way to put it is the following: Gross Amount of Money the New Buyer Paid for the House 404 37 MINUS Maximum Restricted Resale Price (from City Response Notice) EQUALS Payment to the City of Excess Sales Proceeds The amount of Excess Sales Proceeds that you pay to the City is used by the City for other affordable housing programs to help other median and moderate income families purchase a home. Example 3 shows how the Excess Sales Proceeds are calculated. EXAMPLE 3 You sell your house at the end of eight years. You originally paid $341,000 for your home. The City Response Notice sets the Maximum Restricted Resale Price at $398,560. The City does not choose to purchase your own, and you are unable to find a buyer who qualifies as an eligible purchaser. You sell the house for $500,000. You must pay the City Excess Sales Proceeds as calculated below: Total Amount Market Purchaser Paid For House $ 500,000 MINUS Maximum Restricted Resale Price (from City Response Notice) - 398,500 Amount of Excess Sales Proceeds You Pay to City $101,500 In cases where transfer of your home to another person is by means other than sale (with the exception of a creditor taking title), the amount of Excess Sales Proceeds is the difference between the original purchase price and the fair market value of the home at the time of transfer VIOLATIONS OF BMR REQUIREMENTS If you violate any provisions of the City documents, you are considered to be in default under the Resale Agreement. Also, if you default under any loan on the home, such as a mortgage or home equity loan, you would also be considered to be in default under the Resale Agreement. If you do not correct the violation, the City could require you to repay Excess Sales Proceeds and/or exercise its option and buy your home for the Maximum Restricted Resale Price. The City could also go to court and get a court order to enforce the provisions of the City documents, which may result in a foreclosure on your home. The City may learn of violations of the Resale Agreement and program restrictions through periodic audits and other resources available to the City. The City ma y take all actions necessary to verify occupancy of the unit by the persons on the title to the unit. Any homeowner who violates the terms of the Resale Agreement may be forced to sell the unit to the City, who 405 38 will normally then sell the unit to the next eligible purchaser on the waitlist. The City will require the owner to reimburse the City for any rent that was collected in excess of that allowed by the Resale Agreement. Forced Sale due to Breach of Resale Agreement with Option to Purchase Owners who breach the requirements of the Resale Agreement are violating the City Council’s policy of providing homeownership opportunities to median and moderate income households. The number of people on the BMR waitlist often exceeds the number of BMR units available. Therefore, when the City confirms that an owner has breached the terms of the Resale Agreement, especially b y not living in the BMR unit, the City may exercise its option and force the sale of the BMR unit. Foreclosure If a lender records a Notice of Default on a BMR unit, then a breach of the terms of the Resale Agreement has occurred. The City shall inform the owner of the action that needs to be taken to cure the default and by what date the default must be cured. If the owner is unable to cure the default, then the City again may exercise its option and force the sale of the BMR unit to preserve the unit as affordable housing. 406 39 Signature Page Please sign this Buyer's Disclosure Statement in the space provided below, keep a signed copy for your records, and return the original to the City at the following address: City of Cupertino Community Development Department 10300 Torre Avenue Cupertino, CA 95104 I have received, read and understand the above Buyer's Disclosure Statement. I also understand the following: 1. The restrictions last for 99 years. 2. The home may be sold only to a moderate income family for 99 years. 3. The resale restrictions will usually reduce the property's sale price compared to the sales price of other homes. The sales price that I receive may be less than half the price of an unrestricted home. 4. Refinancing of the property and home equity loans are restricted. 5. I must contact the City of Cupertino before any sale or refinancing of the property and before receiving a home equity loan. Any sale or refinancing or home equity loan must be approved by the City. 6. I must live in the home. I cannot lease or rent it unless approved by the City for hardship. 7. The City has the right to buy my home at a restricted price when I decide to sell it or if I violate any of the provisions of the agreements I have signed. By: Signature of Buyer Dated: Print Name of Buyer By: Signature of Buyer Print Name of Buyer Dated: 407 40 EXHIBIT 5 CITY OF CUPERTINO HOUSING MITIGATION PROGRAM BMR RENTER OCCUPANCY CERTIFICATION Property Name: Property Owner: Address of BMR Unit: Tenant Name: Instructions to BMR Renter: Please complete this form and return to (Property Owner) by , , 20 . If you fail to submit this signed form within thirty (30) days of the written request, then your lease shall be terminated and you must vacate the unit within thirty (30) days of written notice from the property owner/manager. If you fail to vacate the unit, the property owner will institute eviction proceedings. HOUSEHOLD MEMBERS-List below all persons who live in the unit. HOUSEHOLD MEMBER AGE RELATIONSHIP TO HEAD OF HOUSEHOLD Criminal and Administrative Actions for False Information You understand that knowingly supplying false, incomplete or inaccurate information may constitute a felony, punishable under Federal or State criminal law. Knowingly supplying false, incomplete or inaccurate information is grounds for termination of your lease. By signature below, I [insert name] hereby certify to the City under penalty of perjury that I and all of the Household Members listed above occupy the rental unit located at [insert address] as my/our principal place of residence and that I/we have occupied the Premises for ( ) 408 EXHIBIT 5 5 [insert number] months of the calendar year [insert previous calendar year]. I further certify that there are no additional occupants residing in the unit. Signature of Household Adults Date 1. / / 2. / / 3. / / 4. / / _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ TO BE COMPLETED BY THE PROPERTY OWNER OR MANAGER By signature below, I [insert name] hereb y certify to the City that, to the best of my knowledge, the persons identified above do indeed live at the address referenced above, and no additional persons live there. Signature of Property Owner/Manager Date / / (Company Name) 409 EXHIBIT 6 6 CITY OF CUPERTINO HOUSING MITIGATION PROGRAM RENTAL PROPERTY OWNER’S AND/OR MANAGING AGENT CERTIFICATION OF RECEIPT OF ADMINISTRATIVE PROCEDURES MANUAL The undersigned received a copy of the Administrative Procedures Manual for the City of Cupertino’s Below Market Rate (BMR) Housing Mitigation Program. Further, the undersigned understand that the BMR Administrative Policies and Procedures require compliance with the requirement described in the Procedures. Development Name and Site Address Signature of Property Owner Printed Name Date Signature of Co-Owner Printed Name Date Signature of Property Manager or Owner’s Managing Agent Printed Name 410 1 394\09\1903732.3 POLICY AND PROCEDURES MANUAL FOR ADMINISTERING DEED RESTRICTED AFFORDABLE HOUSING UNITS 411 2 394\09\1903732.3 Amended by Housing Commission September 10, 2015 Approved by the City Council August 2, 2016 Resolution No. 1516-05 City of Cupertino Housing Division Department of Community Development 10300 Torre Avenue Cupertino, CA 95014 Voice: (408)777-3251 Fax: (408)777-3330 412 3 394\09\1903732.3 Table of Contents 1.0 Introduction ........................................................................................................................ 1 2.0 Applicant Selection Process ................................................................................................ 2 2.1 Minimum Tenant/Homebuyer Eligibility Requirements.................................................... 2 2.2 Conflict of Interest……………………………………………………………………….2 2.3 Priority Point Placement System ....................................................................................... .2 2.3.1 BMR Applicant Waiting Lists………………………………………………………….. . 3 2.3.2 Applicant’s Right to Refuse BMR unit …………………………………………………. 3 2.3.3 Housing Constructed with Disabilities………………………………………………… .. 3 2.3.4 Requests for Reasonable Accommodation……………………………………………… 3 2.3.5 Household Minimum Size to Occupy the BMR unit……………………………………. 3 2.3.6 Solicitation of Applicants……………………………………………………………….. 4 2.3.7 Submitting an Eligibility Form for a BMR Unit………………………………………… 4 2.3.8 Eligibility Process to Reapply on BMR Waitlist…………………………………………4 2.3.9 Application Fees…………………………………………………………………………. 4 2.3.10 Definition of Employment in Cupertino………………………………………………….5 2.4 Annual Gross Income.........................................................................................................7 2.4.1 Documentation to Verify Sources of Income…………………………………………. …5 2.5 Assets ................................................................................................................................. 6 2.5.1 Documentation to Support Assets………………………………………………………. .6 2.6 False Statements ................................................................................................................ 6 3.0 Ownership Units ................................................................................................................ 8 3.1 Income Limits for Ownership Units .................................................................................. 8 3.1.1 Co-applicants…………………………………………………………………………… . 8 3.1.2 Household Composition………………………………………………………………..... 8 3.2 Asset Limit for Ownership Units ...................................................................................... 8 3.3 Definition of First-time Homebuyer .................................................................................. 9 3.4 Affordable Sale Price Determination ................................................................................. 9 3.4.1 Initial Prices of Newly Constructed Units……………………………………………… . 9 3.4.2 Prices of Existing BMR Units……………………………………………………….... …9 3.5 Financing ........................................................................................................................... 9 3.5.1 Lenders………………………………………………………………………………. ..... .9 3.5.2 Loan Requirements………………………………………………………………… .... ..10 3.6 Insurance Requirements .................................................................................................. 10 3.7 Required Pre-Purchase Education. .................................................................................. .10 3.8 Minimum Cash Available ............................................................................................... 10 3.9 Documents for Completing Home Purchase.................................................................... 10 3.10 Terms of Affordability……. ......................................................................................... ..11 4.0 Rental Units ..................................................................................................................... 12 4.1 Income Limits for BMR Rental Units... .......................................................................... .12 4.1.1 Co-Signers………………………………………………………………………………12 4.1.2 Household Composition………………………………………………………………... 12 4.2 Applicant Assets……… ............................................................................................... ...12 4.2.1 Documentation to Support Assets………………………………………………………12 4.3 Rental Rate Determination .............................................................................................. 13 4.4 Previewing of Unit .......................................................................................................... 13 4.5 Owning Property ……………………………………………………………………... 13 413 4 394\09\1903732.3 4.6 Occupancy Conditions .................................................................................................... 14 4.7 Annual Rent Adjustments ............................................................................................... 14 4.8 Annual Re-Certification of Income ................................................................................. 14 4.9 Terms of Tenancy ……………………………………………………………………. . .14 4.10 Availability of New Units for Lease ………………………………………………… . ..15 4.11 Eligible Prospective Tenants………………………………………………………… …15 4.12 Prospective Tenant’s Previewing of Unit ........................................................................ 15 4.13 Executed Lease Agreement ............................................................................................. 15 4.14 Annual Rent Adjustments ............................................................................................... 15 4.15 Owner/Manager Certification .......................................................................................... 15 4.16 Terms of Affordability Covenants .................................................................................. 15 4.17 Terms of Tenancy ........................................................................................................... 16 4.18 Occupancy Requirements ................................................................................................ 16 5.0 Appeal Process …………………………………………………………………… ... ….17 6.0 Authority…………………………………………………………………… ... …………17 List of Exhibits Exhibit 1 Eligibility Form Instructions and Eligibility Form for Rentals or For- Sales Exhibit 2 Application for the BMR program Exhibit 3 Definition of Gross Income Exhibit 4 Buyer’s Disclosure Statement Exhibit 5 BMR Renter Occupancy Certification Exhibit 6 Certificate of Receipt of Administrative Procedures Manual 414 5 394\09\1903732.3 1.0 Introduction As required by Section 19.172.030 of the Cupertino Municipal Code, this manual establishes procedures for the on-going administration of the inventory of affordable units, also referred to as Below Market Rate (BMR) units, created by the City of Cupertino’s Residential Housing Mitigation Program. The manual includes procedures and guidelines for prioritizing applicants, evaluating the eligibility of applicants, setting maximum affordable rents and sales prices, and monitoring compliance of tenants and homeowners with the recorded affordability covenants. The manual will provide guidance to City staff, the City’s program administrator, BMR homeowners, B M R re n t e r srenters, a n d p r o p e r t y m a n a g e r s of rental complexes that contain BMR units. The a t t a c h e d exhibits and certain portions of this manual will be updated as necessary to comply with regulations and policies of the United States Depar tment of Housing and Urban Development ( HUD), State of California Department of Housing and Community Development (HCD), and City Housing Element and zoning ordinance. A separate manual, the “Below Market Rate (BMR) Housing Mitigation Program Procedural Manual,” describes the procedures for implementing requirements applicable to developers under the Residential Housing Mitigation Program. The City of Cupertino has overall responsibility for the BMR program although the administration may be contracted out to another agency. The guidelines in this Manual must be interpreted in conjunction with the City’s Housing Element, zoning, and documents implementing the BMR program. 415 6 394\09\1903732.3 2.0 Applicant Selection Process 2.1 Minimum Tenant/Homebuyer Eligibility Requirements Every tenant or purchaser of a BMR unit must meet specific minimum eligibility requirements, as follows:  Annual household income (including the income of all household members 18 years of age and older) must not exceed the maximum income limits established for the BMR unit;  All owners must live in the BMR unit as a primary residence;  Potential BMR homeowners must meet the definition of a first-time homebuyer; and  Potential BMR homeowners must be able to obtain primary mortgage financing and have a minimum of 5.0% of the BMR purchase price for down payment plus closing costs (gift funds are allowed) 2.2 Conflict of Interest The following individuals are ineligible to purchase or rent a BMR unit:  City employees and officials (and their immediate family members and dependents) who have policy-making authority or influence regarding City housing programs and do not qualify as having a remote interest as provided by the California Government Code; an, participate in making decisions regarding City housing programs, administer City housing programs, or whose salary is paid in any part from a City housing program;  Any consultant to the City and employees of the consultant (and their immediate family members and dependents) who have policy-making authority or influence regarding City housing programs, participate in making decisions regarding City housing programs, administer City housing programs, or whose salary is paid in any part from a City housing program;  An applicant for or developer of the project containing the BMR units and theirits officers and employees (and their immediate family members);, and the property owner of the project and its officers and employees (and their immediate family members); or  Any other individual who has a conflict of interest as defined by federal or state law or the City’s adopted Conflict of Interest Code. In addition, if an employee of any consultant involved with City housing programs is on the waiting list for any BMR unit, all review of that employee’s application must be performed by the City. 2.3 Priority Point Placement System 416 7 394\09\1903732.3 The City has established a priority point placement system that reflects the City’s priorities regarding placement of households into the limited number of BMR affordable units in the City. While not a minimum requirement, the selection of BMR tenants and homebuyers will be based on a pr iority point placement system that reflects the City’s priorities regarding placement of households into the limited number of BMR affordable units in the City. Under the priority point placement system, preference is given to applicants who live and/or work in Cupertino, including public service employees. The priority point placement system point scale is listed below. Applicants can receive up to a maximum of three points based on the following criteria below: One Point = Cupertino resident Two Points = Employment in Cupertino Applicants receiving three points shall be considered the highest priority Applicants receiving two points shall be considered the second highest priority Applicants receiving one point shall be considered the third highest priority Applicants receiving zero points shall be considered the lowest priority In addition, applicants who have been displaced from rental housing in Cupertino by public or private redevelopment shall receive a priority over all other applicants. 2.3.1 BMR Applicant Waiting Lists The waitlist application period for BMR for-sale and rental units will open on the first business day of October annually. At that time BMR for-sale and rental unit eligibility forms will be accepted. The waitlist application period will close on the last business day of October annually. Within 30 business days of the submission deadline (last business day of October); the Cit y or its agent will conduct a lottery. Each Eligibility Form will be separated into categories with equivalent priority points, and then randomly assigned a number to be put on the waitlist. Along with the City or its agent, two witnesses assist with the lottery. All candidates will be mailed results of their applications by the end of December annually specifying if they have been denied or approved, and if approved, their applicant number on the waitlist. When selecting BMR tenants or homebuyers for an available BMR unit, the City or its agent will first attempt to identify an eligible household from the highest priority group within the appropriate applicant pool and income designation. BMR units that become available will be offered based upon the order of the waitlist within each priority group. If there is no eligible household in the highest priority group, the City or its agent will then look at applicants in the second highest priority group and so on. 2.3.2 Applicant’s Right to Refuse BMR Unit 417 8 394\09\1903732.3 An applicant has two opportunities annually to refuse a BMR unit and retain their place on the waitlist. If an applicant refuses a third time, then they will be placed at the bottom of the waitlist. 2.3.3 Housing Constructed for People with Disabilities Some BMR units may be specially constructed to be accessible for people with disabilities. In the event that an accessible unit becomes available, persons with disabilities on the waitlist will be provided a preference for those BMR units. 2.3.4 Requests for Reasonable Accommodation. If an applicant or member of the applicant’s household has a disability or handicap, an applicant may request a reasonable accommodation in the City’s policies or procedures so that the applicant may take advantage of the City’s BMR program. Examples may include making large-type documents or a reader available to visually impaired applicants, permitting an outside agency to assist with the application process, or allowing another family member to co-sign a loan or lease. An applicant may request a reasonable accommodation at any time in the application process or after having been selected for a BMR unit. 2.3.5 Household Minimum Size to Occupy the BMR Unit To ensure that the City's limited BMR units are used efficiently, a household must be of a size equal to the number of bedrooms in the BMR unit. For instance, to be eligible to purchase a three- bedroom unit, a household must contain at least three members. Minimum household size occupancy standards for BMR units are: 1 bedroom unit = 1 persons 2 bedroom unit = 2 persons 3 bedroom unit = 3 persons 4 bedroom unit = 4 persons 2.3.6 Solicitation of Applicants Applications for BMR rental and ownership units shall be solicited as necessary to maintain an adequate number of applications in each of the following applicant pools: • Very Low Income (up to 50% AMI) – BMR Rental Units • Low Income (up to 80% AMI) – BMR Rental Units • Median Income (up to 100% AMI) – BMR Ownership Units • Moderate Income (up to 120% AMI) – BMR Ownership Units Outreach shall be conducted through the City’s website, program brochures, community workshops, presentations and periodic print media advertising. The City 418 9 394\09\1903732.3 and/or its agent shall be responsible for updating the content on the City’s website and distributing program brochures that are culturally and linguistically appropriate to the community. These brochures will be available at City Hall, the Cupertino Public Library, the Quinlan Community Center, the Cupertino Senior Center and other appropriate locations. Furthermore, the City or its agent shall conduct outreach efforts through local media that are culturall y and linguistically appropriate to the community. 2.3.7 Submitting an Eligibility Form for a BMR Unit A sample copy of the BMR Eligibility Form for purchasing or renting is provided as Exhibit 1. 2.3.8 Eligibility Process to Reapply on BMR Waitlist Each year the BMR waitlist resets. For example, even if a BMR applicant scored three points based on the priority point system in a given year, the same priority is not guaranteed for the following year. All prospective candidates must apply annually in October even if the candidate was on the BMR waitlist the prior year, except that displacees must apply within 90 days of receiving a displacement notice. Candidates must keep the City or its agent informed about their current mailing address, telephone contact information, employment information, household composition, or any substantial changes in income that may affect the applicant’s eligibility to remain on the waitlist. 2.3.9 Application Fees BMR application and administrative fees ma y change from time to time. As a result, the most recently approved application and administrative fees will be disclosed by the City or its agent at the time of application annually in October for both BMR for-sale and rental units. There will be no annual fee to maintain an applicant’s place on the waitlist. Exhibit 2 shows a sample copy of the BMR application with required documentation to be certified for the BMR program. 2.3.10 Definition of Employment in Cupertino A letter or verifi cation of employment shall serve as sufficient proof of employment in Cupertino. 2.4 Annual Gross Income Annual household income is defined pursuant to the U.S. Code of Federal Regulations and provided on the website of the U.S. Department of Housing and Urban Development at: http://www.hud.gov/offices/cpd/affordablehousing/training/web/calc ulator/definitions/part5.cfmhttp://portal.hud.gov/hudportal/documents/huddoc?i d=DOC_35699.pdf 419 10 394\09\1903732.3 Exhibit 3 provides the definitions of what is included and excluded from the determination of annual gross income in accordance with the U.S. Code of Regulations. In summary, gross household income is the sum of all the income for every adult, 18 years or older, living in the unit. Sources of income include all wages or salaries, overtime pay, commissions, fees, tips, bonuses and other compensation, net income from a business or profession or from the rental of real or personal property, interest and dividends, payments received from social security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, payments in lieu of earnings, public assistance, alimony and child support received, and any other sources of income. 2.4.1. Documentation to Verify Sources of Income The gross annual incomes of all household members age 18 or older are considered when determining eligibility. The types of income to be verified and the type of documentation that will be requested may include: • Signed copies of federal tax returns for the most recent three years • W2 form for most recent two years • Copies of the last three consecutive payroll stubs or other verification of employment The following income documentation below may also be verified as follows: Source of Income Documentation Salaries and wages Prior three years federal tax returns, two years W2, three most recent payroll stubs Business income Prior t h re e yea r s federal tax returns and verification of income by a certified public accountant or bookkeeper including a m o s t rec e n t q u arter l y profit/loss statement Interest and dividend income Prior three years federal tax returns Retirement and Insurance Income Verification from source Unemployment & Disability Income Verification from source Welfare Assistance Verification from source Alimony, Child Support and Gift Income Verification from source Armed Forces Income Verification from source Other Verification from source 2.5 Assets There are limits to the amount of net assets that are used for eligibility for BMR for- sales and rental units. For households applying to be an owner of a BMR unit, the limit is $100,000. For households applying to be a tenant of a BMR unit, the limit is equal to the maximum household income limited adjusted for household size that is 420 11 394\09\1903732.3 allowable in order to be eligible for the program. The maximum allowable household income limits for the BMR rental program are published annually in the BMR Program brochure. The table below represents what is included and excluded for as assets. 2.5.1 Documentation to Support Assets The following chart contains the types of assets to be verified and the type of documentation that will be requested. Assets Documentation Checking Account, Savings Account, Mutual Fund/Money Market Fund, Certificates of Deposit (C.D.) Copies of t wo mo st r e c e nt s t a teme n ts Stocks, including Options Copy of stock certificate or proof of purchase and statement of current value; for stock prices attach a copy of recent dated newspaper or online source that shows the value of each company’s stocks Bonds, including savings bonds Copies of most recent document Trust Copies of most recent document Gift Signed Gift Letter by all parties Personal Loan Letter or loan agreement Down Payment Assistance Loan Copy of Agreement Individual Development Match Account Copy of two most recent statements Other Verification from source 2.6 False Statements During the BMR application process, applicants who intentionally make false statements or misrepresent any facts on the application to purchase or rent a BMR unit will be removed from the BMR waiting list and barred from re-applying for a BMR unit in Cupertino in the future. If the City or its agent should discover that a contract was completed by a purchaser or renter who intentionally made false statements or misrepresented the facts in order to appear eligible, the City will treat this as a breach of the resale and/or rental restrictions and may exercise any remedies allowed under the resale and/or rental agreement including a forced sale of the unit or eviction and the imposition of any civil penalties that apply. 3.0 Ownership Units Requirements for Buying a BMR Unit 421 12 394\09\1903732.3 3.1 Income Limits for Ownership Units The BMR for-sale program is designed to assist first-time median and moderate- income homebuyers. The BMR for-sale program uses income limits published by HCD annually for Santa Clara County, per household size. HCD’s income limits include the median and moderate-income categories and income limits are adjusted per household size. BMR fo r -s al e p ro g ram income limits per household size are published annuall y in the City’s BMR program brochure. An example of median and moderate-income ranges is listed below. • Median Income (up to 100% AMI) – BMR Ownership Units • Moderate Income (up to 120% AMI) – BMR Ownership Units 3.1.1 Co-applicants The City or its agent will accept one application per household. A co-applicant is defined as an adult member of the household whether related or unrelated who intends to apply for the BMR unit, be on the title of the property with the applicant, and occupy the unit as his or her primary residence. The combined income and assets of all adult members of the household (including co- applicants) to purchase a BMR unit must not exceed the maximum income limits per household size and asset limitations of the program. All co-applicants must go through the same process a s the a ppli cant and must agree to comply with the program requirements. Non-occupant co-signors are not allowed to assist with the BMR purchase. 3.1.2 Household Composition A household is comprised of one or more persons who may or may not be related. An unborn child can be counted in family size once there is medical confirmation of pregnancy. An adoption in process will be counted in family size with verification of the adoption process being underway. A child will be considered part of the household when the child lives with a single parent for at least 75% of the time or in instances of joint custody, at least 50%. The applicant will need to submit a copy of the divorce decree and/or child custody agreement as verifiable documentation. If a divorce is in process, it may not be possible to qualify an applicant because family size and financial status are unclear. If the applicants are proposing to combine households with the purchase of the BMR, the combined household must meet eligibility requirements and combined income must meet the household income limits. 3.2 Asset Limit for Ownership Units Households with net assets over $100,000 held in the United States or foreign countries will not be eligible to purchase a BMR home. Excluded from net assets are: 1) all non- accessible funds, including any assets that generate a penalty when withdrawn i.e. 401K, 422 13 394\09\1903732.3 CALPERS, STRS and other pension plans; and 2) assets that will be used to fund the down payments. Section 2.4 of this manual defines assets and provides the documents that must be submitted to support the calculation of assets. 3.3. Definition of First-time Homebuyer An applicant must be a first-time homebuyer to be considered for a BMR for-sale unit. An applicant shall be considered a first-time homebuyer if they have not owned a home for at least three years. This definition applies to properties owned in foreign countries as well as the United States. An exception will be made for people who were homeowners prior to a divorce or legal separation. The City or its agent may verify first-time homebuyer status by (1) reviewing mortgage deductions on the three most recent years of federal tax returns for each adult in the applicant’s household; (2) a signed statement on the application stating homeownership status: and (3) a title search. 3.4 Affordable Sale Price Determination 3.4.1 Initial Prices of Newly Constructed Units Newly constructed initial BMR sales prices will be determined by the City or its agent. The City or its agent will calculate newl y constructed initial BMR sales prices for both median and moderate-income based on the maximum affordable housing cost provisions of Section 50052.5 of the California Health and Safety Code and most recent published HCD income limits. 3.4.2. Prices of Existing BMR Units Resale prices for existing BMR units will be determined by the City or its agent. The City or its agent will reference the Occupancy, Refinancing, and Resale Restriction Agreement with Option to Purchase (Resale Agreement) recorded on the title of the existing BMR unit when calculating the BMR resale price. 3.5 Financing 3.5.1 Lenders Prospective purchasers of BMR units must seek and obtain t h ei r ow n primary mortgage financing in order to purchase a BMR unit. There is no prearranged City financing; however the City and its agent maintain a list of City approved BMR lending institutions who have provided written confirmation through their underwriting and/or bond department that their lending institution is able to provide primary mortgage financing with the City’s BMR requirements. In order to qualify as an approved BMR lender the institution must have reviewed and approved the City’s Resale Restriction Agreement, Deed of Trust and Promissory Note in advance. From time to time the City may require additional training in order for a lending institution to maintain its status as an approved City BMR lender. 423 14 394\09\1903732.3 3.5.2 Loan Requirements The primary first mortgage loan must be a fully amortized 30-year term fixed principal and interest loan. Interest only loans, negative amortization loans, adjustable rate loans and reverse mortgage loans are not permitted. In some cases the primary 30-year fixed principal and interest loan may be combined with down payment assistance, mortgage assistance or a community program second loan. Under this scenario the primary and secondary lenders must receive written approval from the City. 3.6 Insurance Requirements Prior to the sale of any unit, the City shall require that each purchaser secure a standard homeowner’s insurance policy, with the City named as an additional insured. The City will be entitled to any policy proceeds in excess of the affordable unit purchase price if the proceeds are not used to rebuild the home. The insurance policy shall be in an amount equal to the replacement value of the home. At least every five (5) years, the replacement value must be reviewed and adjusted as needed. If the owner hires a contractor to work on the home, the contractor must be licensed and carry liability and workers compensation insurance. 3.7 Required Pre-Purchase Education After the applicant is placed on the BMR Homeownership waitlist and before receiving an offer to purchase a BMR unit, the applicant(s) must attend a BMR pre-purchase education workshop or program offered by the City of Cupertino or a qualified HUD approved agency. If an applicant completes the H U D a p p r o v ed w o r ks h op or C it y a p p r o v e d program, the applicant will receive a certificate of completion. The certificate of completion must be provided as proof of participation in the workshop or program and will be submitted at, or prior to, close of escrow. The applicant must complete pre-purchase education within a reasonable timeframe established by the City or its agent, or the applicant will be removed from the waitlist. 3.8 Minimum Cash Available The applicant(s) should have sufficient readily available assets for a minimum of 5% of the purchase price for down payment, plus closing costs and other associated fees. Gifts funds can be applied towards applicant’s 5% down payment assistance; a signed gift letter is required b y all parties involved. 3.9 Documents for Completing Home Purchase The following documents must be read and signed by the Owner(s) before the sale or 424 15 394\09\1903732.3 resale of a BMR unit is completed: • Buyer's Disclosure Statement (Exhibit 4) • Promissory Note • Deed of Trust • Occupancy, Refinancing, and Resale Restriction Agreement with Option to Purchase (Resale Agreement) • Request for Notice Under Section 2924b of California Civil Code The Resale Agreement requires owners of BMR units to live in their home as their principal place of residence and prohibits renting the home except in cases of hardship. It also limits the price at which the homes can be sold. If the owner sells the home above the restricted price, then the owner must pay the City the difference between the restricted price and the sales price. In addition, the owner must follow certain steps and procedures when deciding to sell the home. The City has an option to purchase a BMR home at the restricted price whenever the owner decides to sell the home or if the owner violates any agreements. The purpose of the Promissory Note, Resale Agreement, and Deed of Trust is to make sure that BMR homes remain affordable to other BMR households upon resale. The Buyer's Disclosure Statement is attached as Exhibit 4 and should be reviewed by all applicants who desire to purchase BMR homes. It summarizes the major provisions of the other documents to ensure that a BMR owner understands his or her obligations under the program. The City or its agent will provide the other documents to any interested applicant and to all applicants who are considered for purchase of a particular BMR unit. 3.10 Term of Affordability The deed restrictions imposed on each BMR affordable unit pursuant to the program shall remain in effect for a period of 99 years from the date of original sale of that unit. Furthermore, the resale restrictions shall renew at each change of title. 4.0 Rental Units Requirements for Renting a BMR Unit 4.1 Income Limits for BMR Rental Units The BMR rental program is designed to assist very low and low-income households. The BMR rental program uses income limits published by HCD annually for Santa Clara County. HCD’s income limits include the ver y low and low-income categories, and income limits are adjusted for household size. BMR r e ntal p ro gra m income limits per household size are published annually in the City’s BMR program brochure. An example of very low and low-income ranges is listed below. 425 16 394\09\1903732.3 • Very Low Income (up to 50% AMI) – BMR Rental Units • Low Income (up to 80% AMI) – BMR Rental Units 4.1.1 Co-Signers Non-occupant co-signers are not allowed to assist with the BMR rentals. 4.1.2 Household Composition A household is comprised of one or more persons who may or may not be related. An unborn child can be counted in family size once there is medical confirmation of pregnancy. An adoption in process will be counted in family size with verification of the adoption process being underway. A child will be considered part of the household when the child lives with a single parent for at least 75% of the time or in instances of joint custody, at least 50%. The applicant will need to submit a copy of the divorce decree and/or child custody agreement as verifiable documentation. If a divorce is in process, it may not be possible to qualify an applicant because family size and financial status is unclear. 4.2 Applicant Assets For households applying to be a tenant of a BMR unit, the m a x i m u m a s s e t limit is equal to the maximum household income adjusted for household size that is allowable in order to be eligible for the program. The maximum allowable household income limits for the BMR rental program are published annually in the BMR Program brochure. 4.2.1 Documentation to Support Assets The following chart contains the types of assets to be verified and the type of documentation that will be requested. Assets Documentation Checking Account, Savings Account, Mutual Fund/Money Market Fund, Certificates of Deposit (C.D.) Copies of t w o m o st r ecen t s t at em en t s Assets Documentation Stocks, including Options Copy of stock certificate or proof of purchase and statement of current value; for stock prices attach a copy of recent dated newspaper or online source that shows the value of each company’s stocks Bonds, including savings bonds Copies of most recent document Trust Copies of most recent document Gift Signed Gift Letter by all parties Personal Loan Letter or loan agreement Down Payment Assistance Loan Copy of Agreement Individual Development Match Account Copy of two most recent statements 426 17 394\09\1903732.3 Other Verification from source 4.3 Rental Rate Determination The City or its agent will determine the rental rates for BMR units by income level and household size. The rents will be determined based on annual HCD published income lim its and section 50053 of the California Health and Safety Code. Annual Rent (inclusive of fees and utilities) for very low-income units cannot exceed 30% of 50% of the area median income adjusted for the size of the household appropriate for the unit. Annual Rent (inclusive of fees and utilities) for low-income units cannot exceed 30% of 60% of the area median income adjusted for household size appropriate for the unit. Rent includes all charges related to occupancy of the unit including utilities, parking fees, fees for use of common facilities and other fees and charges. If utilities are not paid by the property owner, the rent for the BMR units must be adjusted downward to allow for a utility allowance calculated in accordance with the utility allowances published by the Santa Clara Housing Authority annually. 4.4 Previewing of Unit The City or its agent will coordinate with the apartment manager/ property manager to preview the BMR unit. 4.5 Owning Property Candidate(s) cannot own a home and/or be on title of a property when applying for the BMR rental program. Living in a BMR Rental Unit 4.6 Occupancy Conditions The approved BMR tenant(s) must occupy the BMR unit during the entire term of the lease. If an additional occupant (roommate, family member, etc.) moves into the BMR unit, he/she will be considered part of the existing household. In such cases, the BMR tenant must notify the City or its agent prior to the move in date, and the entire household (including the new occupant) will be reevaluated to determine eligibility, including household income requirements. If the tenant(s) fail to receive approval from the City for any changes in occupancy or if the tenant(s) subleases the property, the tenant household will no longer be eligible to occupy the BMR unit. 4.7 Annual Rent Adjustments 427 18 394\09\1903732.3 Maximum BMR rents will be adjusted annually based on the most recently published HCD income limits for Santa Clara County per household size and also in accordance with the California Health and Safety Code Section 50053. The most recent BMR rent levels will be included in the BMR program brochure. The City or its agent will notify the property owner of the new rental rates. If the owner chooses to raise rents, the tenant will be given a 60 day notice before any rent increase. 4.8 Annual Re-Certification of Income At least once a year, the property owner shall requalify BMR tenants to verify that they are eligible to remain in BMR rental units. The City will provide the “BMR Renter Occupancy Certification Form” (Exhibit 5) to the property owners. If the BMR renter fails to submit a signed Certification within thirty (30) days of the written request, then the lease shall automatically terminate, and the renter must vacate the unit within thirty (30) days of written notice from the apartment owner/property manager. If the renter fails to vacate the unit, the apartment owner/ property manager will institute evictions proceedings. On an annual basis, Requalification shall be based upon the BMR tenant’s household income, as determined by the three most recent pay stubs, prior year tax returns and household size. If a very low income BMR tenant’s household income increases and exceeds the BMR income limits for very low income household but does not exceed the BMR income limits for a BMR low income household, then the tenant's rent will be increased to BMR low income rents, and the tenant main remain in the unit until either a suitable BMR low income unit becomes available. If a tenant's household income increases and exceeds the BMR income limits for a low income household, the tenant will be given three months to locate alternate housing and vacate the BMR rental unit. A three month extension may be granted in cases of extreme hardship. 4.9 Terms of Tenancy BMR tenants will be subject to the same conditions of tenancy as other tenants occupying the same property, except for terms relating to occupancy, income eligibility, annual recertification, and limits on rents. The initial BMR lease term is for one year. 428 19 394\09\1903732.3 Requirements of BMR Property Owners and Managers 4.10 Availability of New Units for Lease An affordable BMR unit may not be leased until the City has approved the unit for occupancy. 4.11 Eligible Prospective Tenants All BMR units must be rented to BMR tenants approved by the City and/or its agent. The services of this agency shall be funded out of the C i t y ’ s Below Market-Rate (BMR) Affordable Housing Fund (AHF) and shall be monitored by the City. An apartment owner/ property manager shall notify the City or its agent of any available BMR units and the City and/or its agent shall have fourteen days to provide owner with an income eligible candidate or candidates. In reviewing each candidate, the owner or propert y manager may apply the same tenant selection criteria, such as past performance in meeting financial obligations and credit references, as those applied to applicants for non-BMR units on the property, except for those standards relating to income eligibility. 4.12 Prospective Tenant’s Previewing of Unit The City or its agent will coordinate with the apartment owner/ property manager so that a prospective tenant may view the unit. 4.13 Executed Lease Agreement The apartment owner/property manager will provide City or its agent with a copy of the executed lease agreement. 4.14 Annual Rent Adjustments Maximum BMR rents will be adjusted annually based on the most recently published HCD income limits for Santa Clara County per household size and also in accordance with the California Health and Safety Code Section 50053. The City or its agent will notify the property owner of the new rental rates. If the owner chooses to raise rents, the tenant must be given 60 days notice before any rent increase. 4.15 Owner/Manager Certification Prior to the rental of the first BMR unit on a property, the apartment owner/property manager will sign a certification of receipt of these Administrative Procedures with a statement of intent to manage the BMR units according to these procedures. The sample copy of the Certification Form is provided as Exhibit 6 of these procedures. Subsequent apartment owners/ property manager may be asked to sign certifications of receipt of these procedures. 429 20 394\09\1903732.3 4.16 Terms of Affordability Covenants The deed restrictions imposed on each BMR unit pursuant to the program shall remain in effect for a period of 99 years from the date of recordation of the Regulatory Agreement. Future owners of the property will abide by all of the administrative procedures and by the conditions in the recorded Regulatory Agreement for the entire 99 year period from date of recordation. 4.17 Terms of Tenancy BMR tenants will be subject to the same conditions of tenanc y as other tenants occupying the subject property, except for terms relating to occupancy, income eligibilit y, annual recertification, and limits on rents. The initial BMR lease term must be for one year. 4.18 Occupancy Requirements The property owner/property manager shall notify the City or its agent if it suspects that there have been any changes to the occupancy of the BMR unit. If the tenant fails to receive approval from the City for any changes in occupancy, or subleases the property, or fails to provide the annual occupancy recertification, the tenant shall be in violation of its lease and will no longer qualify as a BMR tenant. 5.0 Appeal Process An applicant or ownerAny person may appeal a decision made under this Manual. The appeal must be made within 10 days of the decision being appealed and must be addressed to the C i t y ’ s appellant must file a written appeal with either the Community Development Director. Any appeal will be referred to the Cupertino Housing Commission for recommendation within sixty (60) days of (if the program is being administered by the City) or the Executive Director of any agency administering the BMR program within 10 days of receipt of the decision. The Community Development Director or the Executive Director, as applicable, will hear the appeal and provide a written decision on the appeal within 10 days from receipt of the appeal. The appellant may further appeal the decision of the Community Development Director or the Executive Director, as applicable, by filing a written appeal with the Community Development Director within 10 days of receipt of the decision. The appeal will be heard by a hearing officer retained by the City within 30 days from the date of receipt of the written appeal. The recommendation from the Cupertino Housing Commission will then be forwarded to the City Council for final ruling. All City Council rulings on the appeal arehearing officer’s decision on the appeal is final. The sale of any BMR unit at issue in the appeal shall be postponed until a final decision is reached on the appeal, or until the applicable period for filing an appeal has lapsed. 430 21 394\09\1903732.3 6.0 Authority The City Manager or designee is authorized to sign all documents on behalf of the Cit y that implement the BMR Program and the policies in this Manual, including without limitation promissory notes, deeds of trust, resale restriction agreements, and requests for notice. 431 22 394\09\1903732.3 EXHIBITS 432 EXHIBIT 1 23 394\09\1903732.3 City of Cupertino & West Valley Community Services Below Market Rate (BMR) Program Eligibility Form Instructions The City of Cupertino and their Agent, West Valley Community Services, is pleased to offer you the opportunity to apply to rent a Below Market-Rate (BMR) apartment or purchase a Below Market-Rate (BMR) home in Cupertino. The City has contracted with West Valley Community Services (WVCS) to process eligibility forms, applications, verify information, determine eligibility, notify applicants of their eligibility, and maintain the rental and purchase waitlists. ELIGIBILITY PROCESS:  Please read these instructions completely, determine your eligibility and complete the enclosed BMR Eligibility Form. The completed form must be received at the WVCS office, 10104 Vista Drive, Cupertino, CA 95014, . (WVCS is located behind the Stevens Creek Fire Station on Stevens Creek Boulevard, one block east of De Anza Boulevard).  WVCS will review your eligibility form and determine your priority ranking (3, 2, 1, or 0) based on current Cupertino residency and current employment in the City of Cupertino. Please see page 2 for definitions of these terms.  A drawing with the eligibility forms will determine the order of eligibility within each priority ranking (3, 2, 1, or 0).  All candidates will be mailed results by the end of the year; if they have been denied or approved, and if approved, the applicant number on the waitlist. The first candidate on the waitlist will be notified to view the next available unit (rental or purchase) and begin the application process. ELIGIBILITY FORM: Please note that all information provided on the Eligibility Form will be verified when you are shown an available unit. Any information found to be false or inaccurate will immediately void your participation in the program. Candidates must keep WVCS updated throughout the year of any changes in information supplied. Incomplete and late Eligibility Forms will not be processed. Rent or Purchase: Choose only one box. Household Size: The total number of individual or family members who will be living in the unit. Income Limits to Qualify for Purchasing a Home: See chart below. The amounts listed are gross (before taxes are taken out). Housing and Community Development (HCD) Income Limits BMR Purchase Program Household Size 1 2 3 4 5 6 Median Income TBD TBD TBD TBD TBD TBD Moderate Income TBD TBD TBD TBD TBD TBD Assets for Sale Program: Households with net assets over $100,000 will not be eligible. Excluded from net assets are all non-accessible funds or any assets that generate a penalty when withdrawn, i.e., 401K, CALPERS, STRS, and other pension plans. First-time Homebuyer: All of the applicants who will be on the property title must be a first-time homebuyer. Applicant(s) shall be considered a first-time homebuyer if they have not owned any residential real estate for at least three years. This definition applies to property owned in foreign countries as well as in the United States. 433 EXHIBIT 1 24 394\09\1903732.3 Available Cash for Down Payment, Closing Costs to Purchase: Households are required to have readily available assets for a minimum of 5% down of the purchase price. Housing and Community Development (HCD) Income Guidelines BMR Rental Program Household Size 1 2 3 4 5 6 Very- Low Income TBD TBD TBD TBD TBD TBD Low Income TBD TBD TBD TBD TBD TBD Income Limits to Qualify for a Rental Unit. See chart above. The amounts listed are gross (before taxes are taken out).  The minimum income the household must make is at least 2.5 times the monthly rent. o For Example: $940.00 (in rent) x 2.5= $2350.00 (minimum household income, gross before taxes are taken out). Assets for Rental Program: Households net assets, including and not limited to CD’s, money market accounts and cash/funds, may not exceed the maximum gross income allowed for the appropriate household size. Priority Points are based upon the following criteria:  One point: At least one member of the household, on the property title or lease, must currently maintain a primary residence at an address located within the City of Cupertino.  Two points: At least one member of the household, on the property title or lease, must: o Work for wages or salary within the boundaries of the City of Cupertino; or o Own or operate a business in the City of Cupertino; or o Perform contract or commission work where the actual work is conducted at a Cupertino location. If you have any questions, please contact, Program Manager, Housing Services at: housing@wvcommunityservices.org. PLEASE SUBMIT ONE ELIGIBILITY FORM PER HOUSEHOLD. DUPLICATE FORMS WILL RESULT IN AN AUTOMATIC DISQUALIFICATION. COPIES/ FAXES/ SCANS WILL NOT BE ACCEPTED Please return the completed form to the WVCS office, located at 10104 Vista Drive, Cupertino, CA. 95014. This Program is not designed to aid emergency or immediate housing needs. 434 EXHIBIT 1 25 394\09\1903732.3 City of Cupertino-West Valley Community Services Below Market Rate (BMR) Eligibility Form (Please read the Eligibility Form Instructions before completing) RENT PURCHASE Please print clearly. Name: First Last Middle Initial Current Address: City State Zip Code Home Phone: Work Phone: E-Mail: Total Number of Household Members: Total Household Gross Income: (Annual) Estimated Value of Net Assets (Checking, savings, stocks, bonds, and/or CD accounts): 1. Are any members of the household listed on a primary residential property title, at any time, in the past three (3) years? Yes No 2. Are any members of the household currently living in the City of Cupertino? Yes No 3. Are any members of the household currently employed in the City of Cupertino? Yes No By signing below, I certify that all the information on this form is true and complete to the best of my knowledge. When asked, I agree to give proof of this information and knowingly understand that supplying false, incomplete or inaccurate information is punishable under Federal or State criminal law. Signature: Date: 435 26 394\09\1903732.3 EXHIBIT 2 WEST VALLEY COMMUNITY SERVICES APPLICATION FOR BELOW-MARKET-RATE HOUSING Please print clearly Name: Gender: Male Female E- Mail: Mailing Address (No P. O. Box ) Cit y: State: Zip: Social Security: Driver’s License* and State: Home Phone: Work Phone: * If you do not have a driver’s license write in "None" Marital Status: I am not married (I am single, widowed, or divorced) I am married I am separated from my spouse. Household Composition (List all individuals who will be living in your home, listing head of household first) Full Legal Name Social Security Date of Birth Age Relationship to head of household (Self, son, daughter, friend) Ethnic Background (P er Department of Housing and Urban Development Guidelines) African American Asian or Pacific Islander Hispanic White or Caucasian American Indian or Alaskan Native (Tribe): Decline to answer 436 EXHIBIT 2 27 394\09\1903732.3 INCOME, EARNINGS AND BENEFITS All household members over the age of 18 must complete the information below Full Legal Name Employer Name and Address Total Monthly Wages (gross amount before taxes are deducted AFDC* Amount Child Support (Monthly) Social Security Benefits *Aid to Families with Dependent Children 437 EXHIBIT 2 28 394\09\1903732.3 BMR PRIORITY POINT QUESTIONAIRE The purpose of this page is to determine if your household qualifies for Priority Points. Carefull y read each description of priority living and employment circumstances; then check all that apply. You must provide the listed documentation as proof before receiving a unit to rent or purchase. I am a CURRENT CITY of CUPERTINO RESIDENT- 1 POINT  Households appl ying under priorit y description RESIDENT shall provide proof of residenc y in Cupertino.  A utilit y bill or a rental agreement shall be considered proof of residency. I am working in the C ITY of CUPERTINO- 2 POINTS  A letter or verification from your employer shall serve as sufficient proof. 438 EXHIBIT 2 29 394\09\1903732.3 READ, SIGN, AND DATE BELOW By signing below, you certify that all the information on this form is true and complete to the best of your knowledge. If asked, you agree to give proof of the information, which may include a copy of your U.S. or state income tax form. You certify that all the information provided on household composition and income is true and accurate. You understand you are required to cooperate in supplying all information needed to determine eligibility, level of benefits or verify your true circumstances. Your participation includes attending scheduled meetings and completing and signing necessary forms. Failure or refusal to do so may result in delay of application for BMR sales or denial of program services. CRIMINAL AND ADMINISTRATIVE ACTIONS FOR FALSE INFORMATION You understand that knowingly supplying false, incomplete, or inaccurate information may constitute a Felony, punishable under Federal or State criminal law. Knowingly supplying false, incomplete or inaccurate information is grounds for termination of the housing process. You understand that the Housing Representative may perform a background check and/or verification of employment records. Make sure that you have completed, dated, and signed this application. Make a copy of this application for your records and submit the original application to the West Valley Community Services’ office. MAKE SURE THAT YOU HAVE COMPLETED, DATED, AND SIGNED THIS APPLICATION. WVCS will not process incomplete applications. All individuals, over the age of 18, applying for the BMR program must sign below. Print Full Legal Name Signature Date OFFICE USE ONLY Received on: Signature of Housing Representative: Notes: 439 EXHIBIT 2 30 394\09\1903732.3 REQUIRED DOCUMENTATION Please review the following checklist to ensure your application is complete. If you are unable to provide copies of the documents listed below, you must submit a written and signed statement to WVCS explaining the reasons for the missing documents. Household Documents:  Copy of rental agreement  Copies of social security cards for each person in the household The following documents must be turned in for each person 18 years or older:  Copies of valid Photo ID  Copies of three (3) most recent consecutive payroll stubs  Copies for other income such as SSI, SS, pension, child support, spousal support, etc.  Copies of W2 forms for the last two (2) years  Copies of Federal Tax return papers for the last two (2) years (1040, 1040EZ, etc.)  Copies of all bank statements (all pages) for the last two months (checking, savings, stocks, bonds, CD’s, etc.)  Copies of all asset statements (all pages) for the last two months (401K, Pension Accounts, Retirement Accounts, etc.)  For rental program: non-refundable $30.00 application fee in the form of check, money order, or cashiers’ check payable to West Valley Community Services  For sales program: non-refundable $50.00 application fee in the form of check, money order or cashiers’ check payable to West Valley Community Services  For sales program: non-refundable $300.00 administrative fee in the form of check, money order, or cashiers’ check payable to West Valley Community Services (at the close of escrow) WVCS will not return any submitted documents or make copies of submitted documents. Please provide copies. 440 EXHIBIT 2 31 394\09\1903732.3 Notice to All Applicants Options for Applicants with Disabilities or Handicaps WVCS has an obligation to provide a "reasonable accommodation" to applicants if they or any famil y members have a disability or handicap that requires a change in the usual application process. A reasonable accommodation is some modification or change that we can make to the policies or procedures that will assist an otherwise eligible applicant with a disability to take advantage of the City's BMR program. Examples of a reasonable accommodation include: • Making large type documents or a reader available to a vision impaired applicant during the application process; • Permitting an outside agency to assist an applicant with a disability to meet the property's screening criteria; or • Permitting a sign language interpreter to assist a hearing impaired applicant during the application process. An applicant that has a family member with a disability must sti ll be able to meet the essential obligations of the BMR program. Potential renters must be able to pay rent, care for their apartments, report required information to the owner, avoid disturbing neighbors, etc., but there is no requirement that they be able to do these things without assistance. Potential homeowners must have adequate income to support a mortgage and meet other eligibility criteria. If you or a member of your household has a disability or handicap and think you might need or want a reasonable accommodation, you may request it at any time in the application process. If you would prefer not to discuss your situation with us, that is also your right. 441 EXHIBIT 3 32 394\09\1903732.3 CITY OF CUPERTINO HOUSING MITIGATION PROGRAM DEFINITION OF GROSS INCOME Part 5 Inclusions This table presents the Part 5 income inclusions as stated in the Code of Federal Regulations. General Category Statement from 24 CFR 5.609 paragraph (b) (April 1, 2004) 1. Income from wages, salaries, tips, etc. 2. Business Income 3. Interest & Dividend Income 4. Retirement & Insurance Income 5. Unemployment & Disability Income 6. Welfare Assistance The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services. The net income from the operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight-line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family. Interest, dividends, and other net income of any kind from real or personal property. Expenditures for amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation is permitted only as authorized in number 2 (above). Any withdrawal of cash or assets from an investment will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested by the family. Where the family has net family assets in excess of $5,000, annual income shall include the greater of the actual income derived from all net family assets or a percentage of the value of such assets based on the current passbook savings rate, as determined by HUD. The full amount of periodic amounts received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts, including a lump-sum amount or prospective monthly amounts for the delayed start of a periodic amount (except as provided in number 14 of Income Exclusions). Payments in lieu of earnings, such as unemployment and disability compensation, worker's compensation, and severance pay (except as provided in number 3 of Income Exclusions). Welfare Assistance. Welfare assistance payments made under the Temporary Assistance for Needy Families (TANF) program are included in annual income: Qualify as assistance under the TANF program definition at 45 CFR 260.31; and Are otherwise excluded from the calculation of annual income per 24 CFR 5.609(c). If the welfare assistance payment includes an amount specifically designated for shelter and utilities that is subject to adjustment by the welfare assistance agency in accordance with the actual cost of shelter and utilities, the amount of welfare assistance income to be included as income shall consist of: the amount of the allowance or grant exclusive of the amount specifically designated for shelter or utilities; plus the maximu m amount that the welfare assistance agency could in fact allow the family for shelter and utilities. If the family's welfare assistance is reduced from the standard of need by applying a percentage, the amount calculated under 24 CFR 5.609 shall be the amount resulting from one application of the percentage. 7. Alimony, Child Support, & Gift Income Periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from organizations or from persons not residing in the dwelling. 8. Armed Forces All regular pay, special day and allowances of a member of the Armed Forces (except as provided in Income number 7 of Income Exclusions). 442 EXHIBIT 3 33 394\09\1903732.3 General Category Statement from 24 CFR 5.609 paragraph (c) (April 1, 2004) 1. Income of Children Income from employment of children (including foster children) under the age of 18 years. 2. Foster Care Payments Payments received for the care of foster children or foster adults (usually persons with disabilities, unrelated to the tenant family, who are unable to live alone). 3. Inheritance and Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident Insurance Income insurance and worker's compensation), capital gains and settlement for personal or property losses (except as provided in number 5 of Income Inclusions). 4. Medical Expense Reimbursements Amounts received by the family that are specifically for, or in reimbursement of, the cost of medical expenses for any family member. 5. Income of Live-in Aides Income of a live-in aide (as defined in 24 CFR 5.403). 6. Disabled Persons C rtain increases in income of a disabled member of qualified families residing in HOME-assisted housing or receiving HOME tenant-basedrental assistance (24 CFR 5.671(a)). 7. Student Financial Aid The full amount of student financial assistance paid directly to the student or to the educational institution. 8. Armed Forces Hostile Fire Pay 9. Self-Sufficiency a. Amounts received under training programs funded by HUD. Program Income b. Amounts received by a person with a disability that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set side for use under a Plan to Attain Self-Sufficiency (PASS). c. Amounts received by a participant in other publicly assisted programs that are specifically for, or in reimbursement of, out-of-pocket expenses incurred (special equipment, clothing, transportation, childcare, etc.) and which are made solely to allow participation in a specific program. d. Amounts received under a resident service stipend. A resident service stipend is a modest amount (not to exceed $200 per month) received by a resident for performing a service for the PHA or owner, on a part- time basis, that enhances the quality of life in the development. Such services may include, but are not limited to, fire patrol, hall monitoring, lawn maintenance, resident initiatives coordination, and serving as a member of the PHA's governing board. No resident may receive more than one such stipend during the same period of time. e. Incremental earnings and benefits resulting to any family member from participation in qualifying state or local employment training programs (including training not affiliated with a local government) and training of a family member as resident management staff. Amounts excluded by this provision must be received under employment training programs with clearly defined goals and objectives, and are excluded only for the period during which the family member participates in the employment training program. 10. Gifts Temporary, nonrecurring, or sporadic income (including gifts). 11. Reparations Reparation payments paid by a foreign government pursuant to claims filed under the laws of that government by persons who were persecuted during the Nazi era. 12. Income from Full-time Students 13. Adoption Assistance Adoption assistance payments in excess of $480 per adopted child. Payments 14. Social Security & SSI Income Deferred periodic amounts from SSI and Social Security benefits that are received in a lump sum amount or in prospective monthly amounts. 15. Property Tax Amounts received by the family in the form of refunds or rebates under state or local law for property taxes paid on the Refunds dwelling unit. 16. Home Care Assistance Amounts paid by a state agency to a family with a member who has a developmental disability and is living at home to offset the cost of services and equipment needed to keep this developmentally disabled family member at home. Part 5 exclusions This table presents the Part 5 income exclusions as stated in the Code of Federal Regulations. e The special pay to a family member serving in the Armed Forces who is exposed to hostile fire. Earnings in excess of $480 for each full-time student 18 years old or older (excluding the head of household or spouse). 443 34 394\09\1903732.3 EXHIBIT 3 16. Home Care Assistance Amounts paid by a state agency to a family with a member who has a developmental disability and is living at home to offset t he cost of services and equipment ne eded to keep this developmentally disabled family member at home. 17. Other Federal Exclusions Amounts specifically excluded by any other federal statute from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to whi ch the exclusions of 24 CFR 5.609(c) apply, including:  The value of the allotment made under the Food Stamp Act of 1977;  Payments received under the Domestic Volunteer Service Act of 1973 (employment through VISTA, Retired Senior Volunteer Program, Foster Grandparents Program, youthful offender incarceration alternatives, senior companions);  Payments rece ived under the Alaskan Native Claims Settlement Act;  Income derived from the disposition of funds to the Grand River Band of Ottawa Indians;  Income derived from certain submarginal land of the United States that is held in trust for certain Indian tribes;  Payments or allowances made under the Department of Health and Human Services' Low -Income Home Energy Assistance Program;  Payments rece ived under the Maine Indian Claims Settlement Act of 1980 ( 25 U.S.C. 1721);  The first $2,000 of per capita shares received from judgment funds awarded by the Indian Claims Commission or the U.S. C laims Court and the interests of individual Indians in trust or restricted land s, including the first $2,000 per year of income rece ived by individual Indians from funds derived from interests held in such trust or restricted lands;  Amounts of scholarships funded under Title IV of the Higher Education Act of 1965, including awards un der the Federal workstudy program or under the Bureau of Indian Affairs student assistance programs;  Payments received from programs funded under Title V of the Older Americans Act of 1985 (Green Thumb, Senior Aides, O lderA merican Community Service Employment Program);  Payments received on or after January 1, 1989, from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in the In Re Agent Orange product liability litigation,M.D.L. No. 381 (E.D.N.Y.);  Earned income tax credit refund payments received on or after January 1, 1991, including advanced earned income credit payments;  The value of any child care provided or arranged (or any amount received as payment for such care or reimbursement for costs incurred for such care) under the Child Care and Development Block Grant Act of 1990;  Payments rece ived under programs funded in whole or in part under the Job Training Partnership Act (employment and train ing programs for Native Americans and migrant and seasonal farm worker s, Job Corps, state job trainin g programs and career intern programs, AmeriCorps);  Payments by the Indian C laims Commission to the Confederated Tribes and Bands of Yakima Indian Nation or the Apache Tr ibe of Mescalero Reservation;  Allowances, earnings, and payments to AmeriCorps participants under the National and Community Service Act of 1990;  Any allowance paid under the provisions of 38 U.S.C. 1805 to a child suffering from spina bifida who is the child of a Vietnam veteran;  Any amount of crime victim co mpensation (under the Victims of Crime Act) received through crime victim assistance (or payment or re imbursement of the cost of such assistance) as determined under the Victims of Crime Act because of the commission of a crime against the applicant under the Victims of Crime Act; and  Allowances, earnings, and payments to individuals participating in programs under the Workforce Investment Act of 1998. 444 35 394\09\1903732.3 EXHIBIT 4 BUYER'S DISCLOSURE STATEMENT CITY OF CUPERTINO INCLUSIONARY HOUSING PROGRAM The City of Cupertino (the "City") has adopted an Inclusionary Housing Ordinance that makes it possible for median and moderate income households to buy a house at a price that is affordable. The price that you are paying for your house is below the market rate, as required by the Inclusionary Housing Ordinance. In exchange for giving you the opportunity to buy your house at a below-market affordable price, the City will require you to sign a Promissory Note, Deed of Trust, and an Occupancy, Refinancing, and Resale Agreement with Option to Purchase (the "Resale Agreement"). The Deed of Trust and Resale Agreement will be recorded against your property. These documents are enforceable by the City. In general, the Promissory Note, Deed of Trust and the Resale Agreement set forth conditions that you must meet, including but not limited to the following:  The Resale Agreement requires you to live in your home as your principal place of residence and prohibits you from renting out your home.  The Resale Agreement places controls on the sale of your home. There is a limit to the price at which you can sell the home. If you sell the home above the restricted price, you must pay the City the difference between the restricted price and the sales price. In addition, you must follow certain steps and procedures when you decide to sell your  home.  The City has an option to purchase your home at a restricted price when you put the home up for sale or if you violate any agreements. The purpose of the Promissory Note, Resale Agreement, and Deed of Trust is to make sure that the City's goal of providing affordable homeownership opportunities to moderate income buyers continues to be met by keeping your house affordable to other moderate income households should you choose to sell or move. The City has helped you to buy a home; it wants to help others as well. This Disclosure Statement explains the major provisions of the Promissory Note, Deed of Trust, and Resale Agreement so that you will understand their requirements. You should, of course, read the entire Promissory Note, the Resale Agreement, and the Deed of Trust and become familiar with them if you are considered for the purchase of a particular BMR home.1 1 Numerical examples are included in this Disclosure Statement to help you better understand the provisions of the Buyer's Resale Agreement and Promissory Note. Please be aware that these are simply to show how things work and that they are not intended to represent your specific situation. If you follow along with a calculator, you may not get exactly the same answers. Any differences are probably due to how your calculator "rounds-off" numbers. 445 36 394\09\1903732.3 REQUIREMENTS WHILE LIVING IN A BMR UNIT A. REQUIREMENTS IN EFFECT FOR 99-YEAR TERM The requirements that are in the Resale Agreement apply until the earlier of (i) ninety- nine (99) years from the date of the recordation of the Resale Agreement, or (ii) the date you sell or transfer your home in accordance with the Resale Agreement and the Deed of Trust. If you own and live in your home for the whole 99-year term, all of the requirements of the Resale Agreement go away. B. PRIMARY RESIDENCE AND ANNUAL CERTIFICATION Your house must be your main place of residence. This means you must live in your home for at least 10 months out of each calendar year. At least once per year, City or its agent will verify that owners continue to occupy the BMR units. The verification process will include the following steps:  The City or its agent will mail to all BMR units a Certification of Owner Occupancy.  You must complete the form and return it to the City within 30 days, including proof of occupancy such as a copy of the most recent mortgage statement, property tax bill, or utility bill.  The City or its agent will annually order property title lot books to verify homeownership and liens on the property. Failure to Subm it Annual Certification If the City determines that you have willfully made false statements or misrepresented any facts on the annual certification, o r i f yo u f a i l t o su bm it th e C e rt i fi c a ti o n o f O w n er O c c u p a n c y, the City will treat this as a breach of the Resale Agreement and the Deed of Trust and will take all legal remedies available, including forced sale of the unit. C. LEASE OR RENT OF HOME You are not allowed to lease or rent the house to anyone, ex cept that in the event of substantial hardship, you may rent-out the house for no more than 12 months, with prior written City approval. If the City permits you to rent out your home for up to 12 months, you may only rent the home to a lower income household, and the rent you may charge is restricted by the City to an affordable rent, as defined by state law (approximately 30% of the tenant's household income, less an allowance for utilities). If you violate these requirements, the City may sue to enforce them, and you will owe the City any Excess Rental Proceeds you have collected (i.e., the rent in excess of the restricted amount you are permitted to charge). You will also be in default under the Resale Agreement, and the City may require you to sell the home to the City in the manner described in the Resale Agreement. D. MAINTAINING YOUR HOME/ PROPERTY INSURANCE By signing the Resale Agreement and Deed of Trust, you agree to keep your home and landscaping in good repair and in neat, clean, and orderly condition and to prevent deterioration 446 37 394\09\1903732.3 of the home. You agree not use or dispose of an y h azardous substances on the property, except those commonly used on residential properties. You also agree to keep a standard homeowner's insurance policy, with the City named as an additional insured. The insurance policy shall be in an amount equal to the replacement value of the home. Every five (5) years, the replacement value will be reviewed and adjusted as needed, if requested by the City. If you hire a contractor to work on your home, the contractor must be licensed and carry liability and workers compensation insurance. E. CAPITAL IMPROVEMENTS If you make improvements to your home, and you want the value of the capital improvements to be taken into account when the Maximum Restricted Resale Price (or option price) is calculated, you must obtain written approval of the improvements by the City before the improvements are made. The initial cost of such improvements must be at least $2,000 or more, and the improvements must conform with existing building codes and with Federal Housing Quality Standards. A copy of the receipts and invoices must be submitted to the City or its agent for proof of the capital improvements made to your home. F. REFINANCE AND JUNIOR MORTGAGES The Resale Agreement allows you to refinance your first mortgage loan or place a second mortgage or equity line of credit on your home, but places restrictions on the amount received by you from the refinancing. Following refinancing of your first mortgage or the addition of a junior mortgage, the principal amount of all debt secured by your house must not be greater than the larger of: (i) 90 percent of the Maximum Restricted Resale Price; or (ii) the original amount of all the loans you took out to finance the purchase of your home. If you are considering a refinance of your first mortgage or obtaining a junior mortgage, you should contact the City for a calculation of the Maximum Restricted Resale Price amount before you contact your financial institution. The City will not approve any mortgage that allows payment of interest only, negative amortization, adjustable rate, or reverse mortgage. REQUIREMENTS FOR SELLING OR TRANSFERRING OWNERSHIP OF A BMR UNIT A. CITY HAS OPTION TO PURCHASE In exchange for the opportunity given to you to buy your home at an affordable, below- market price, the City has an option to buy your home at a restricted price if you sell your home or transfer ownership during the term of the Resale Agreement or if you violate any of the terms of the Resale Agreement. In other words, the City has the first opportunity to buy your house before anyone else. The Cit y may also give its option to purchase your house to a public agency, a nonprofit organization, or a person or family meeting income and other requirements. 447 38 394\09\1903732.3 B. PERMISSIBLE TRANSFERS OF OWNERSHIP – NOT A SALE Certain transfers of ownership are allowed although these transfers will require the new owner or owners to sign new BMR documents. The following transfers are permitted under the BMR program. The City must be informed of these transfers, but the City does not have the right to purchase your home if you transfer ownership to:  An existing spouse or domestic partner;  A spouse or domestic partner where the spouse or domestic partner becomes the co-owner of the home;  One spouse as part of a marriage dissolution proceeding;  An existing spouse or domestic partner of owner by devise or inheritance following the death of owner; or  An inter vivos (living) trust in which the owner is the beneficiary and trustee, provided a new resale restriction is executed in the name of the living trust and the BMR owner provides the City with a copy of the trust document or cer tifi cation of trust to verify the trustee information. Inheritance In the event that someone inherits your home, the administrator of your estate or the person inheriting your home must contact the City within 30 days of your death. If the person inheriting your home qualifies as an eligible purchaser, he or she may keep your home, but he or she will have to execute new homebuyer documents with the City. If the person inheriting your home does not qualif y as an eligible purchaser, he or she will have to sell the home in accordance with the Resale Agreement, but may live in the home for up to 12 months, leave the home vacant for up to 12 months, or rent the home to a low income tenant at a restricted rent for up to a year. If the person inheriting your home does not qualify as an eligible purchaser, and does not comply with the terms of the Resale Agreement, he or she will be in default under the Resale Agreement, and the City may exercise its option to purchase the home at the Maximum Restricted Resale Price. These provisions do not apply to a spouse or domestic partner of the owner. C. PROCESS FOR SELLING A BMR UNIT The first action that you must take if you want to sell your home is to contact the City or its agent and submit an Owner’s Notice of Intent to Transfer. You should do this before you contact a real estate broker and before you put the home on the market. The notice must include a pest report from a licensed pest inspector, other required information, and a description of any capital improvements that you have made and for which you received City approval. The Owner’s Notice of Intent to Transfer must be sent by certified mail with a return receipt requested or by express delivery service with a delivery receipt. Notices are considered effective as of the date received or the date delivery was refused. City’s Response The City will contact you within seven days of receiving the Intent to Transfer to arrange for a time to inspect your property to assess its condition. Within 30 days of the City’s receipt of the Intent to Transfer, the pest control report, other required information, and the capital 448 39 394\09\1903732.3 improvement request, and the City’s on-site inspection, the City will send you a City Response Notice. The Notice will explain whether the City intends to exercise its right to purchase or transfer its right to an income-eligible buyer. The City Response Notice will also provide the restricted sales price amount. City Exercises Right to Purchase If the City elects to exercise its right to purchase the property or transfer its right to an income eligible buyer, escrow will close within 90 days of the date that the City Response Notice is sent to you. The City or its agent will select the new buyer from the City's waitlist. When your home is bought by the City or a City-selected buyer under the City's option to purchase, you will pay to the City a transaction fee equal to six percent of the sales price. This fee takes the place of the fee for a broker's services. The City will be performing those services when it purchases your home. You should not contact a broker to sell your home until the City has informed you whether or not it will not exercise its option to purchase your home. If you contact a broker and the City exercises its option, you will owe the City a six percent transaction fee and you will be solely responsible for any additional broker fee. City Elects to Not Exercise Right to Purchase If the City chooses to not exercise its right to purchase the property or assign its right to an income eligible buyer, you may sell the home to an income eligible household for no more than the restricted sales price provided by the City. An eligible purchaser is a household (1) who will live in the home; (2) whose income is equal to or less than the income level designated in the City Response Notice; and (3) who will agree to sign resale restriction documents required by the City and to otherwise cooperate with the City. Once you find a potential eligible purchaser, you must refer the proposed buyer to the City so that the City can determine if in fact the buyer is an eligible purchaser. The seller and the proposed buyer must give specific information and documents to the City as described in the Resale Agreement. When the sale of the home to the eligible purchaser is completed, you must submit to the City the information and documents listed in Resale Agreement. Non-Permissible Transfers You may not transfer title to the BMR unit ( e x c e p t f o r t h e t r a n s f e r s l i s t e d i n S e c t i o n B a b o v e ) without submitting the Owner’s Notice of Intent to Transfer and receiving the City’s approval. Title to the BMR unit may not be transferred to yo u r friends or relatives whose income or assets exceeds the estab lis hed limits, or who will not occupy the BMR unit on a permanent basis after the transfer, or who are otherwise not eligible to purchase a BMR unit. D. SALES PRICE OF BMR UNIT IS RESTRICTED: MAXIMUM RESTRICTED RESALE PRICE 449 40 394\09\1903732.3 The City wants to make sure that the price of the BMR unit remains affordable to future median and moderate-income buyers. Therefore, the Resale Agreement limits the sales price of your home. The Maximum Restricted Resale Price that you can receive is the lower of the Indexed Price described in Section D.1 below and the Fair Market Value as described in Section D.2. 1. INDEXED PRICE (a) Owner's Base Price (price at which you bought it) (b) increased by the percentage increase of the Area Median Income for Santa Clara County for a household size of 4 persons from the date of your original purchase (the recording date of the grant deed for the property) to the date of receipt by the City of the Owner's Notice of Intent to Transfer plus (c) appraised value (not cost) of any eligible capital improvements and any special assessments imposed by the homeowners association and paid by you. Eligible capital improvements, among other requirements, must be approved in writing by the City before they are installed, as described previously minus (d) Cost of repairs to correct any violations of building or other codes, to put the house in a "sellable condition," such as cleaning, painting, appliance and other repairs, and other deferred maintenance repairs. Example 1 shows how the Indexed Price formula works. EXAMPLE 1 You sell your house at the end of eight years. The original price of your three- bedroom home was $341,000. The median income for a family of four in Santa Clara County when you bought your home was $105,500. Median income increases by 16% over the eight years. Five years after buying your home, you remodel your kitchen (with prior City written approval) and the remodeling work is valued by an appraiser as worth $3,000 at the time you sell. There is no deferred maintenance. (a) (b) Original Price of Home Median Income Increases by 16% over $341,000 eight years multiply (a) by 16%, then add 54,560 result ($54,560) to (a) $395,560 (c) Appraised Value (not cost) of Eligible Capital Improvements + 3,000 INDEXED PRICE $398,560 2. FAIR MARKET VALUE Under the Resale Agreement, the fair market value can be determined in one of two ways. First, it can be established by a real estate appraiser approved in advance by the City. If 450 41 394\09\1903732.3 possible, the appraisal will be based on sales prices of homes similar to yours that are sold in your market area during the preceding three-month period. The appraisal will not take into account the fact that the resale price of your home is restricted by the Resale Agreement. The value of any (i) eligible capital improvements that you have made to your home, or (ii) damage or deferred maintenance that decrease its value shall be included in the appraisal. The cost of the appraisal used to determine fair market value will be paid by you, unless a new buyer has obtained an appraisal that you may utilize. The Resale Agreement also allows you and the City to set the fair market value of your home by mutual agreement instead of relying on an appraiser. Both you and the City would have to agree to this particular method (instead of hiring an appraiser) and to the final fair market value amount. If you and the City fail to agree on the Fair Market Value, either one can require use of the appraisal method. Example 2 shows how the Indexed Price and the Fair Market Value of the home are compared to determine the Maximum Restricted Resale Price at which you can offer your house for sale. EXAMPLE 2 The assumptions are the same as in Example 1. You sell your house at the end of eight years. The original sales price of your home was $341,000. The median income for a family of four in Santa Clara County when you bought the home was $105,500. Median income increases by 16% over the eight years. Five years after buying your home, you remodel your kitchen. The Fair Market Value of your home is determined by appraisal, the cost of which is paid by you. The appraisal determines the Fair Market Value at $450,000. This amount includes the value of the kitchen improvements, at $3,000. PRICE INDEXED is less FAIR MARKET MAXIMUM RESTRICTED PRICE than VALUE then RESALE $398,560 < $450,000 ⇒ $398,560 Since the Fair Market Value of the home is greater than the Indexed Price of the house, the Maximum Restricted Resale Price which you can receive from the sale of your home is $398,560. E. TRANSFER IN VIOLATION OF RESALE RESTRICTION AGREEMENT; PAYMENT OF "EXCESS SALES PROCEEDS" TO CITY If you sell or transfer your home in a way that violates the terms of the Resale Agreement, or if the City does not choose to purchase your home and you cannot find an eligible buyer, then you must pay to the City any "Excess Sales Proceeds" that result from the sale of your house. For example, if you do not sell your home to the City or to an eligible purchaser, but to someone else for market value, then you will owe the Cit y any "Excess Sales Proceeds" that result from the sale. The term "Excess Sales Proceeds" is defined in the Resale Agreement as the amount by which the gross sales proceeds you receive from the ineligible buyer exceed the Maximum Restricted Resale Price for the home. Another way to put it is the following: Gross Amount of Money the New Buyer Paid for the House 451 42 394\09\1903732.3 MINUS Maximum Restricted Resale Price (from City Response Notice) EQUALS Payment to the City of Excess Sales Proceeds The amount of Excess Sales Proceeds that you pay to the City is used by the City for other affordable housing programs to help other median and moderate income families purchase a home. Example 3 shows how the Excess Sales Proceeds are calculated. EXAMPLE 3 You sell your house at the end of eight years. You originall y paid $341,000 for your home. The City Response Notice sets the Maximum Restricted Resale Price at $398,560. The City does not choose to purchase your own, and you are unable to find a buyer who qualifies as an eligible purchaser. You sell the house for $500,000. You must pay the City Excess Sales Proceeds as calculated below: Total Amount Market Purchaser Paid For House $ 500,000 MINUS Maximum Restricted Resale Price (from City Response Notice) - 398,500 Amount of Excess Sales Proceeds You Pay to City $101,500 In cases where transfer of your home to another person is by means other than sale (with the exception of a creditor taking title), the amount of Excess Sales Proceeds is the difference between the original purchase price and the fair market value of the home at the time of transfer VIOLATIONS OF BMR REQUIREMENTS If you violate any provisions of the City documents, you are considered to be in default under the Resale Agreement. Also, if you default under any loan on the home, such as a mortgage or home equity loan, you would also be considered to be in default under the Resale Agreement. If you do not correct the violation, the City could require you to repay Excess Sales Proceeds and/or exercise its option and buy your home for the Maximum Restricted Resale Price. The City could also go to court and get a court order to enforce the provisions of the City documents, which may result in a foreclosure on your home. The City may learn of violations of the Resale Agreement and program restrictions through periodic audits and other resources available to the City. The City may take all actions necessary to verify occupancy of the unit by the persons on the title to the unit. Any homeowner who violates the terms of the Resale Agreement may be forced to sell the unit to the City, who 452 43 394\09\1903732.3 will normally then sell the unit to the next eligible purchaser on the waitlist. The City will require the owner to reimburse the City for any rent that was collected in excess of that allowed by the Resale Agreement. Forced Sale due to Breach of Resale Agreement with Option to Purchase Owners who breach the requirements of the Resale Agreement are violating the City Council’s policy of providing homeownership opportunities to median and moderate income households. The number of people on the BMR waitlist often exceeds the number of BMR units available. Therefore, when the City confirms that an owner has breached the terms of the Resale Agreement, especially b y not living in the BMR unit, the City may exercise its option and force the sale of the BMR unit. Foreclosure If a lender records a Notice of Default on a BMR unit, then a breach of the terms of the Resale Agreement has occurred. The City shall inform the owner of the action that needs to be taken to cure the default and by what date the default must be cured. If the owner is unable to cure the default, then the City again may exercise its option and force the sale of the BMR unit to preserve the unit as affordable housing. 453 44 394\09\1903732.3 Signature Page Please sign this Buyer's Disclosure Statement in the space provided below, keep a signed copy for your records, and return the original to the City at the following address: City of Cupertino Community Development Department 10300 Torre Avenue Cupertino, CA 95104 I have received, read and understand the above Buyer's Disclosure Statement. I also understand the following: 1. The restrictions last for 99 years. 2. The home may be sold only to a moderate income family for 99 years. 3. The resale restrictions will usually reduce the property's sale price compared to the sales price of other homes. The sales price that I receive may be less than half the price of an unrestricted home. 4. Refinancing of the property and home equity loans are restricted. 5. I must contact the City of Cupertino before any sale or refinancing of the property and before receiving a home equity loan. Any sale or refinancing or home equity loan must be approved by the City. 6. I must live in the home. I cannot lease or rent it unless approved by the City for hardship. 7. The City has the right to buy my home at a restricted price when I decide to sell it or if I violate any of the provisions of the agreements I have signed. By: Signature of Buyer Dated: Print Name of Buyer By: Signature of Buyer Print Name of Buyer Dated: 454 45 394\09\1903732.3 EXHIBIT 5 CITY OF CUPERTINO HOUSING MITIGATION PROGRAM BMR RENTER OCCUPANCY CERTIFICATION Property Name: Property Owner: Address of BMR Unit: Tenant Name: Instructions to BMR Renter: Please complete this form and return to (Property Owner) by , , 20 . If you fail to submit this signed form within thirty (30) days of the written request, then your lease shall be terminated and you must vacate the unit within thirty (30) days of written notice from the property owner/manager. If you fail to vacate the unit, the property owner will institute eviction proceedings. HOUSEHOLD MEMBERS-List below all persons who live in the unit. HOUSEHOLD MEMBER AGE RELATIONSHIP TO HEAD OF HOUSEHOLD Criminal and Administrative Actions for False Information You understand that knowingly supplying false, incomplete or inaccurate information may constitute a felony, punishable under Federal or State criminal law. Knowingly supplying false, incomplete or inaccurate information is grounds for termination of your lease. By signature below, I [insert name] hereby certify to the City under penalty of perjury that I and all of the Household Members listed above occup y the rental unit located at [insert address] as my/our principal place of residence and that I/we have occupied the Premises for ( ) 455 EXHIBIT 5 5 394\09\1903732.3 [insert number] months of the calendar year [insert previous calendar year]. I further certify that there are no additional occupants residing in the unit. Signature of Household Adults Date 1. / / 2. / / 3. / / 4. / / _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ TO BE COMPLETED BY THE PROPERTY OWNER OR MANAGER By signature below, I [insert name] hereby certify to the City that, to the best of my knowledge, the persons identified above do indeed live at the address referenced above, and no additional persons live there. Signature of Property Owner/Manager Date / / (Company Name) 456 EXHIBIT 6 6 394\09\1903732.3 CITY OF CUPERTINO HOUSING MITIGATION PROGRAM RENTAL PROPERTY OWNER’S AND/OR MANAGING AGENT CERTIFICATION OF RECEIPT OF ADMINISTRATIVE PROCEDURES MANUAL The undersigned received a copy of the Administrative Procedures Manual for the City of Cupertino’s Below Market Rate (BMR) Housing Mitigation Program. Further, the undersigned understand that the BMR Administrative Policies and Procedures require compliance with the requirement described in the Procedures. Development Name and Site Address Signature of Property Owner Printed Name Date Signature of Co-Owner Printed Name Date Signature of Property Manager or Owner’s Managing Agent Printed Name 457 Attachment A A-1 DRAFT RESOLUTION NO. 16-03 A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CUPERTINO RECOMMENDING ADOPTION OF AMENDMENTS TO THE POLICY AND PROCEDURES MANUAL FOR ADMINISTERING DEED RESTRICTED AFFORDABLE HOUSING UNITS WHEREAS, the City of Cupertino (the "City") has since 1993 implemented an Office and Industrial Housing Mitigation Program and a Residential Housing Mitigation Program, described in the Housing Element of the General Plan, requiring the payment of housing mitigation fees by non-residential development and residential projects with six units or less, and requiring the provision of moderate-income and median-income housing in developments with seven units or more (the "Housing Mitigation Program"); and WHEREAS, the Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units serves as the day-to-day operational manual for both City staff and its Below Market-Rate (BMR) program administrator for BMR units generated by the City's Housing Mitigation Program; and WHEREAS, from time to time the Policy and Procedures Manual for Administering Deed Restricted Affordable Housing units is to be updated for clarity, to ensure consistency in review of applications, and to ensure compliance with state law; and WHEREAS, the amendments to the Policy and Procedures Manual for Administering Deed Restricted Affordable Housing units are not a project because the adoption of the amendments to the Manual is an administrative activity that will not result in direct or indirect physical changes in the environment (Section 15378(b)(5)). THEREFORE, BE IT RESOLVED that the Housing Commission recommends that the City Council approve the amendments to the Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units as provided to the Commission and directs staff to make conforming changes in the exhibits to the Manual as required. 458 ______________________________________________________________________________ PASSED AND ADOPTED this 23rd day of June 2016 at a special meeting of the Housing Commission of the City of Cupertino by the following roll call vote: Vote: AYES: Harvey Barnett, Sue Bose, Nina Daruwalla NOES: None ABSTAIN: None ABSENT: Shirley Chu, Rajeev Raman ATTEST: APPROVED: /s/ Aarti Shrivastava________________ /s/ Harvey Barnett__________________ Aarti Shrivastava, Assistant City Manager Harvey Barnett, Chair, Housing Commission 459 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1879 Name: Status:Type:Reports by Council and Staff Agenda Ready File created:In control:7/27/2016 City Council On agenda:Final action:8/2/2016 Title:Subject: Authorization to create a review procedure including guidelines and related Zoning ordinance amendment to allow for the creation of Single-Story Overlay District in the Single-Family Residential (R-1) Zones and a budget amendment. Sponsors: Indexes: Code sections: Attachments:Staff Report Action ByDate Action ResultVer. City Council8/2/20161 Subject:AuthorizationtocreateareviewprocedureincludingguidelinesandrelatedZoning ordinanceamendmenttoallowforthecreationofSingle-StoryOverlayDistrictintheSingle- Family Residential (R-1) Zones and a budget amendment. Authorize:1.StafftodevelopaprocessforthereviewandprocessingofrequestsforSingle- StoryOverlayDistrictsinSingle-FamilyResidential(R-1)Zones(includingguidelinesand related Zoning Ordinance amendment); and 2. Budget amendment for $10,000 CITY OF CUPERTINO Printed on 7/27/2016Page 1 of 1 powered by Legistar™460 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: August 2, 2016 Subject: Authorization to create a review procedure including guidelines and related Zoning Ordinance amendment to allow for the creation of Single-Story Overlay District in Single-Family Residential (R-1) Zones and a budget amendment. Recommended Action: Authorize: 1. Staff to develop a process for the review and processing of requests for Single-Story Overlay Districts in Single-Family Residential (R-1) Zones (including guidelines and related Zoning Ordinance amendment); and, 2. Budget amendment for $10,000. Description Creation of a review procedure and process for Single-Story Overlay Districts in Single- Family Residential (R-1) Zones including guidelines and related Zoning Ordinance Amendment. Discussion: After the City’s recent approval of a Two-Story home on Oakview Lane, neighbors in the project vicinity have informed Staff that they intend to request that their neighborhood be re-zoned to include a Single-Story Overlay District to restrict homes to a single story. The City does not currently have a process to create such overlay districts. Staff therefore recommends that the Council authorize the creation of a process so that both applicants and all residents in the neighborhood have the necessary information to apply for and comment on Single-Story overlays on their properties. 461 A number of neighboring cities, including Mountain View and Los Altos, have processes that Staff will include in their research. The work product will include:  Guidelines and related Zoning Ordinance amendment to review Single-Story Overlay Districts in R-1 neighborhoods;  Associated environmental review; and,  Associated fees. Sustainability Impact: No impact Fiscal Impact: Staff is requesting a budget amendment of $10,000 for creation of the process and related guidelines and Zoning Ordinance amendments. Costs include fees for environmental and legal consultants, and newspaper advertising to comply with noticing requirements. As part of developing the process for reviewing Overlay Districts, Staff will propose a fee structure that is comparable to other jurisdictions, and best encapsulates the amount of resources required to evaluate and process overlay requests. _____________________________________ Prepared by: Erick Serrano, Associate Planner Reviewed by: Benjamin Fu, Assistant Director of Community Development Reviewed by: Aarti Shrivastava, Assistant City Manager Approved for Submission by: David Brandt, City Manager Attachments: None 462 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1380 Name: Status:Type:Reports by Council and Staff Agenda Ready File created:In control:1/14/2016 City Council On agenda:Final action:8/2/2016 Title:Subject: Report on Committee assignments and general comments Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. City Council8/2/20161 Subject: Report on Committee assignments and general comments Report on Committee assignments and general comments CITY OF CUPERTINO Printed on 7/27/2016Page 1 of 1 powered by Legistar™463