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12-06-2016 Searchable packetCITY OF CUPERTINO AGENDA Tuesday, December 6, 2016 10300 Torre Avenue and 10350 Torre Avenue CITY COUNCIL 5:30 PM Special Non-televised Closed Session (5:30) Immediately Followed by a Televised Study Session (Approximately 6:00); Followed by Televised Regular Meeting (6:45) NOTICE AND CALL FOR A SPECIAL MEETING (CLOSED SESSION AND STUDY SESSION) AND REGULAR MEETING OF THE CUPERTINO CITY COUNCIL NOTICE IS HEREBY GIVEN that a special meeting of the Cupertino City Council is hereby called for Tuesday, December 06, 2016, commencing at 5:30 p.m. for a closed session in City Hall Conference Room A, 10300 Torre Avenue, Cupertino, California 95014 and immediately followed at approximately 6:00 p.m. by a study session in Community Hall Council Chamber, 10350 Torre Avenue, Cupertino, CA 95014. Said special meeting shall be for the purpose of conducting business on the subject matters listed below under the heading, “Special Meeting." The regular meeting items will be heard at 6:45 p.m. in Community Hall Council Chamber, 10350 Torre Avenue, Cupertino, California. SPECIAL MEETING ROLL CALL - 5:30 PM 10300 Torre Avenue, City Hall Conference Room A CLOSED SESSION 1.Subject: Conference with Legal Counsel-Existing Litigation pursuant to Paragraph (1)of subdivision (d) of Government Code Section 54956.9. Name of case: City of Saratoga; City of Cupertino; Town of Los Gatos v. California Department of Transportation, et al. STUDY SESSION - Immediately following Closed Session (Approx. 6:00 PM) 10350 Torre Avenue, Community Hall Council Chamber 2.Subject: Aircraft Noise Study Session Recommended Action: Conduct study session and provide direction to staff Page 1 1 December 6, 2016City Council AGENDA Staff Report A - November 2016 Select Committee Report ADJOURNMENT REGULAR MEETING PLEDGE OF ALLEGIANCE - 6:45 PM 10350 Torre Avenue, Community Hall Council Chamber ROLL CALL STUDY SESSION 1.Subject: Study Session on Wireless Facilities within the Public Right of Way Recommended Action: Recommend that the City Council conduct a study session and provide direction on the proposed use of public street light poles to mount small cellular facilities Staff Report A - “Bridging the Gap – 21st Century Wireless Telecommunications Handbook” CEREMONIAL MATTERS AND PRESENTATIONS 2.Subject: Presentation of Teen Commission FY 16-17 Work Plan Recommended Action: Receive presentation of Teen Commission FY 16-17 Work Plan 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 November 15 City Council minutes Recommended Action: Approve the November 15 City Council minutes Page 2 2 December 6, 2016City Council AGENDA A - Draft Minutes 4.Subject: Accept Accounts Payable for the period ending October 7, 2016 Recommended Action: Adopt Resolution No. 16-129 accepting Accounts Payable for the period ending October 7, 2016 A - Draft Resolution B - AP Report 5.Subject: Accept Accounts Payable for the period ending October 14, 2016 Recommended Action: Adopt Resolution No. 16-130 accepting Accounts Payable for the period ending October 14, 2016 A - Draft Resolution B - AP Report 6.Subject: Accept resignation of Teen Commissioner Rishit Gundu and direct staff to fill the unscheduled vacancy with the annual Teen Commission recruitment in May 2017 Recommended Action: Accept resignation of Teen Commissioner Rishit Gundu and direct staff to fill the unscheduled vacancy with the annual Teen Commission recruitment in May 2017 Staff Report A - Resignation letter 7.Subject: Establishment of Friendship City Relationships Recommended Action: Review and consider 11 applications establishing Friendship City relationships with Luoyang, People’s Republic of China; Qingdao, People’s Republic of China; Shanghai, People’s Republic of China; Shenzhen, People’s Republic of China; Suzhou, People’s Republic of China; Wuhan, People’s Republic of China; Yilan, Taiwan, Republic of China; and Zhaoqing, People’s Republic of China; and Guro, Seoul, South Korea Staff Report Attachment A-Jiangmen Friendship City Application Attachment B-Luoyang Friendship City Application Attachment C-Nanchang Friendship City Application Attachment D-Qingdao Friendship City Application Attachment E-Shanghai Friendship City Application Attachment F-Shenzhen Friendship City Application Attachment G-Suzhou Friendship City Application Attachment H-Wuhan Friendship City Application Attachment I-Yilan Friendship City Application Attachment J-Zhaoqing Friendship City Application Attachment K-Guro Friendship City Application 8.Subject: Enter into a subordination agreement with River City Bank and Joint Page 3 3 December 6, 2016City Council AGENDA Powers Authority members of the Silicon Valley Clean Energy Authority Recommended Action: Authorize the City Manager to sign the subordination agreement with River City Bank and Joint Powers Authority members of the Silicon Valley Clean Energy Authority Staff Report A - Subordination Agreement 9.Subject: Budget adjustment regarding the Apple Campus 2 contracts Recommended Action: Approve the budget allocations necessary to execute the approved contracts in order to complete work at Apple Campus 2 through the end of Fiscal Year 2017 Staff Report A - Budget Allocations 10.Subject: Application for Alcohol Beverage License for Amami Shima Sushi Corp, 19068 Stevens Creek Boulevard Recommended Action: Recommend approval to the California Department of Alcoholic Beverage Control of the application for Alcohol Beverage License for Amami Shima Sushi Corp, 19068 Stevens Creek Boulevard Staff Report A - Application SECOND READING OF ORDINANCES 11.Subject: Second reading of an ordinance amending Chapter 19.08, Definitions, of the Municipal Code to add definitions of “financial institutions” and “banks” that expressly exclude payday lending and check cashing businesses with the intent to disallow such uses from operating within the City of Cupertino. (Application No(s): MCA-2016-04; Applicant(s): City of Cupertino; Location: City-wide) Recommended Action: Conduct the second reading and enact Ordinance No. 16-2157, “An Ordinance of the City Council of the City of Cupertino Amending the Cupertino Municipal Code, Title 19, Zoning, Section 19.08.030, entitled “Definitions” to add the definition of “financial institutions” and “banks” to expressly exclude payday lending and check cashing businesses with the intent to disallow such uses from operating within the City of Cupertino” Staff Report A - Draft Ordinance No. 16-2157 12.Subject: Second reading of an ordinance amending the Cupertino Municipal Code regarding the regulation, location, and the keeping of bees in the City and to make other conforming changes for clarification and internal consistency. Application No(s): MCA-2016-03; Applicant(s): City of Cupertino; Location: Citywide Page 4 4 December 6, 2016City Council AGENDA Recommended Action: Conduct the second reading and enact Ordinance No. 16-2158: "An ordinance of the City Council of the City of Cupertino to amend Chapter 8.07, Beekeeping, and Table 19.20.020 of Chapter 19.20, Permitted, Conditional, and Excluded Uses in Agricultural and Residential Zones, regarding the regulation, location, and the keeping of bees in the City and to make other conforming changes to Table 19.20.020 for clarification and internal consistency" Staff Report A - Draft Ordinance 16-2158 13.Subject: Second Reading of an ordinance amending the Cupertino Municipal Code related to accessory dwelling units to conform with State Law and for internal consistency. (Application No. MCA-2016-05; Applicant: City of Cupertino; Location: City-wide) Recommended Action: Conduct the second reading and enact Ordinance No. 16-2159 “An ordinance of the City Council of the City of Cupertino amending Title 19, Zoning, of the Cupertino Municipal Code including but not limited to Chapter 19.08 (Definitions), Chapter 19.20 (Permitted, Conditional and Excluded Uses in Agricultural and Residential Zones), Chapter 19.24 (Agricultural (A) and Agricultural - Residential (A-1) Zones), Chapter 19.32 (Residential Duplex (R-2) Zones), Chapter 19.52 (Reasonable Accommodation), and Chapter 19.112 (Second Dwelling Units in R-1, RHS, A and A-1 Zones), in response to recently adopted State legislation regarding accessory dwelling units for compliance with State Law, and for internal consistency" Staff Report A - Draft Ordinance 16-2159 PUBLIC HEARINGS 14.Subject: Appeal of Kimberly Sandstrom Appeal Regarding Eligibility to Purchase Below Market Rate (BMR) Unit (Continued from November 1) Recommended Action: Approve Resolution No. 16-101 regarding the appeal of Ms. Kimberly Sandstrom and affirming the recommendation of the Housing Commission regarding the eligibility of Ms. Sandstrom to purchase a BMR unit Staff Report A- Summary of Conflict of Interest Investigation B- Draft Resolution C- Housing Commission Resolution 16-06 D- Excerpts from BMR Manual Regarding Income Calculation E- Referenced Regluations (24 CFR 5.609(b) and (c) F- Technical Guide for Determining Income G- Attachments and Other Documents Provided by Appellant H - Sandstrom presentation Page 5 5 December 6, 2016City Council AGENDA 15.Subject: Fiscal Year 2016-2017 Fee Schedule Amendment Recommended Action: Adopt Resolution No. 16-131 approving an amended Fiscal Year 2016-2017 Fee Schedule, effective February 6, 2017 Staff Report A - Draft Resolution B - Proposed Amendment to Schedule C – Planning Fees (redlined) C – Proposed Schedule C – Planning Fees D - Proposed Amendment to Schedule E – Recreation Fees (redlined) E – Proposed Schedule E – Recreation Fees ORDINANCES AND ACTION ITEMS 16.Subject: Consider upgrading the City’s municipal electric accounts to 100% renewable and carbon free GreenPrime service with Silicon Valley Clean Energy upon service launch, which is scheduled to occur in April 2017 Recommended Action: Direct Silicon Valley Clean Energy (SVCE) to upgrade the City’s electricity accounts to GreenPrime service, upon service launch in April 2017 Staff Report 17.Subject: Request from the Taipei Friendship City Committee for City to Sponsor a Smart City Conference in May of 2017 (continued from October 18) Recommended Action: Sponsor the proposed Smart City Conference Staff Report REPORTS BY COUNCIL AND STAFF 18.Subject: Report on Committee assignments and general comments Recommended Action: Report on Committee assignments and general comments ADJOURNMENT Page 6 6 December 6, 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 7 7 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2189 Name: Status:Type:Closed Session Agenda Ready File created:In control:11/18/2016 City Council On agenda:Final action:12/6/2016 Title:Subject: Conference with Legal Counsel-Existing Litigation pursuant to Paragraph (1) of subdivision (d) of Government Code Section 54956.9. Name of case: City of Saratoga; City of Cupertino; Town of Los Gatos v. California Department of Transportation, et al. Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. Subject:ConferencewithLegalCounsel-ExistingLitigationpursuanttoParagraph(1)of subdivision(d)ofGovernmentCodeSection54956.9.Nameofcase:CityofSaratoga;Cityof Cupertino; Town of Los Gatos v. California Department of Transportation, et al. CITY OF CUPERTINO Printed on 11/29/2016Page 1 of 1 powered by Legistar™8 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2198 Name: Status:Type:Study Session Agenda Ready File created:In control:11/28/2016 City Council On agenda:Final action:12/6/2016 Title:Subject: Aircraft Noise Study Session Sponsors: Indexes: Code sections: Attachments:Staff Report A - November 2016 Select Committee Report Action ByDate Action ResultVer. City Council12/6/20161 Subject: Aircraft Noise Study Session Conduct study session and provide direction to staff CITY OF CUPERTINO Printed on 11/29/2016Page 1 of 1 powered by Legistar™9 OFFICE OF THE CITY MANAGER CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3212 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: December 6, 2016 Subject Aircraft Noise Study Session Recommended Action Conduct study session and provide direction to staff. Background The Mayor and City Councilmembers requested a study session to discuss aircraft noise issues after hearing complaints from Cupertino residents. Representatives from Anna Eshoo’s and Mike Honda’s offices have been invited to attend the meeting. The aircraft noise stems from the Federal Aviation Administration’s (FAA) NextGen program, which has shifted some flight patterns south and over more populated areas in the South Bay. The FAA states that the changes were made to enhance safety and improve efficiency. In April, U.S. Representatives Anna G. Eshoo (CA-18), Sam Farr (CA-20) and Jackie Speier (CA-14) formed the Select Committee on South Bay Arrivals, which has been working with local stakeholders to develop regional solutions to address aircraft noise. The Select Committee is also comprised of 12 local elected officials. On November 17, 2016 the Select Committee released a 27-page report with recommendations to Congress (Attachment A). The recommendations include:  Flying at higher altitudes  Flying over locations with fewer people  Avoiding noisy flight maneuvers  Implementing noise reduction retrofits where possible. The report also identifies other potential solutions, long-term issues, and process issues. Numerous resident-base community groups have been created across the Bay Area, including the Peninsula and South Bay. Some examples include:  Quiet Skies NorCal: http://quietskiesnorcal.org/  Quiet Skies Los Altos Hills: http://www.quietskieslosaltoshills.org/ 10  Quiet Skies Woodside: http://quietskieswoodside.org/  Save Our Skies Santa Cruz: http://www.sossantacruz.org/ _____________________________________ Prepared by: Brian Babcock, Public Information Officer Approved for Submission by: David Brandt, City Manager Attachments: A – Select Committee Report 11 Report of the Select Committee on South Bay Arrivals Approved November 17, 2016 12 Report of the Select Committee on South Bay Arrivals TABLE OF CONTENTS TRANSMITTAL LETTER GLOSSARY 1 UNDERLYING PRINCIPLES 3 SECTION 1: FAA NORTHERN CALIFORNIA INITIATIVE, FEASIBILITY GROUPS 1 – 6 4 1.1 SFO Class B Amendment 4 1.2 Transition the SERFR STAR Back to the BSR Ground Track Prior to EPICK 5 1.3 Increasing Percentage of NIITE Flights Which Remain on NIITE Until at Least the NIITE Waypoint 7 1.4 Create a New South Transition for the NIITE SID 7 1.5 Increasing Percentage of CNDEL Flights Which Remain on CNDEL Until at Least the CNDEL Waypoint 8 1.6 Improve Aircraft Set Up and Sequencing Between Facilities 9 SECTION 2: OTHER POTENTIAL SOLUTIONS AS IDENTIFIED BY THE SELECT 10 COMMITTEE 2.1 Airbus A320 Aircraft Family Wake Vortex Generators Retrofit 10 2.2 Northern Arrivals (BDEGA) into SFO 10 2.3 Woodside VOR (Navigational Beacon) 11 2.4 Overnight Flights 12 2.5 MENLO Waypoint 13 2.6 Raise the Floor of Altitude Control Windows on SERFR 15 2.7 Increase the Altitude and Profile of Descents into SFO 15 2.8 Increase All Altitudes 16 2.9 Aircraft Vectoring 16 2.10 Runway Usage 17 2.11 Modify BRIXX Procedure into San Jose International Airport 18 2.12 Modify NRRLI Waypoint on the First Leg of SERFR 19 2.13 San Jose International Airport Reverse Flow: Aircraft Arrivals 20 2.14 Redirect Southern Arrivals (SERFR) to an Eastern Approach into SFO 20 2.15 Fan-in Overseas Arrivals (OCEANIC) into SFO 21 2.16 Herringbone Approach to SFO Arrivals 22 2.17 Return to Pre-NextGen Procedures, Altitudes, and Concentration 22 13 Report of the Select Committee on South Bay Arrivals TABLE OF CONTENTS, CONTINUED SECTION 3: LONGER TERM ISSUES AS IDENTIFIED BY THE SELECT COMMITTEE 23 3.1 Need for an Ongoing Venue to Address Aircraft Noise Mitigation 23 3.2 Restricted/Special Use Airspace 24 3.3 Noise Measurement 24 3.4 Capacity Limitations 25 3.5 Aircraft Speed 25 SECTION 4: PROCESS ISSUES AS IDENTIFIED BY THE SELECT COMMITTEE 26 4.1 Who Makes Recommendations to Whom 26 4.2 Need for Before/After Noise Monitoring 26 4.3 Ensuring Compliance 27 APPENDIX A: VOTE RECORD A1-A2 APPENDIX B: MAP OF KEY WAYPOINTS B1 APPENDIX C: MAPS OF SELECTED FLIGHT PATHS C1-C5 BSR and SERFR C1 NIITE C2 CNDEL C3 BDEGA, OCEANIC, SERFR, and DYAMD C4 BRIXX C5 14 Report of the Select Committee on South Bay Arrivals S. J OSEPH S IMITIAN S ANTA C LARA C OUNTY S UPERVISOR , D ISTRICT F IVE COUNTY GOVERNMENT CENTER, EAST WING 70 WEST HEDDING STREET, 10TH FLOOR SAN JOSE, CALIFORNIA 95110 TEL: (408) 299-5050 or (650) 965-8737 FAX: (408) 280-0418 supervisor.simitian@bos.sccgov.org • www.supervisorsimitian.com November 17, 2016 The Honorable Anna Eshoo Congresswoman, 18th District 698 Emerson Street Palo Alto, CA 94301 The Honorable Sam Farr Congressman, 20th District 701 Ocean Street, Room 318C Santa Cruz, CA 95060 The Honorable Jackie Speier Congresswoman, 14th District 155 Bovet Road, Suite 780 San Mateo, CA 94402 Dear Honorable Members of Congress: With this letter I convey to you the final Recommendations of your Select Committee on South Bay Arrivals. These Recommendations reflect the work of the 12 Member Committee and their 12 Alternates (see Attachment A), empaneled by you, over the course of almost two dozen meetings during the past six months (see Attachment B). While your original charge to the Committee was essentially limited to the six sets of “feasible” actions identified as part of the Federal Aviation Administration’s Northern California Initiative, the Committee also considered other potential solutions suggested during the course our hearings, and offered Recommendations where appropriate (see Section 2). The Committee also identified a number of “longer-term issues” for deliberation and potential action in the future (see Section 3); as well as a number of “process issues” that the Committee thought worth highlighting (see Section 4). 15 Report of the Select Committee on South Bay Arrivals Transmittal Letter to Members of Congress November 17, 2016 Page 2 While this report runs almost 30 pages in length, our Recommendations might succinctly be summarized as:  Fly at higher altitudes;  Fly over locations with fewer people;  Avoid noisy flight maneuvers; and,  Implement noise reducing retrofits where possible. While the Committee has not made any effort to “rank order” or prioritize Recommendations, there are two I feel it appropriate to highlight for your consideration. First, the very challenging and high profile issue of whether or not to abandon the SERFR flight procedure/path in favor of a flight procedure/path along the ground track formerly used for the BSR flight procedure/path (see Item 1.2). The Committee did in fact recommend such a change on an 8-4 vote as a near-term remedial action (consistent with other criteria set forth in Recommendation 2 of Item 1.2). It is important, however, to note that the Committee has also recommended (on a 12-0 vote) the identification and development of a better procedure and path for the long-term (as noted in Recommendation 4 of Item 1.2). The Committee earnestly hopes that the need for this longer-term effort will not be overlooked in the understandable desire to provide near-term relief. Second, the Committee also took note of the fact that the creation of an ongoing body to assess and address airport noise issues in the three county area is in many respects essential to the successful implementation of the Recommendations contained in this Report; and to addressing issues likely to arise in the future. Finally, this letter would be incomplete if it did not express thanks to the many who made this effort possible and productive. That, of course, includes you, the three Members of Congress who empaneled the Select Committee, and your staffs, who lent considerable support throughout the effort. Thanks as well to the 12 Members of the Select Committee and their 12 Alternates. It should be noted that in virtually every meeting of the Select Committee all 12 seats were filled; most often by the 12 Members of the Committee, but with exemplary service from their Alternates as needed. At least two thirds of the Alternates participated in the process in some significant way, allowing the Committee to be fully functioning throughout its six month tenure, and providing additional and valuable expertise and perspective to the process. 16 Report of the Select Committee on South Bay Arrivals Transmittal Letter to Members of Congress November 17, 2016 Page 3 Technical support was provided by the Federal Aviation Administration, whose staff was on hand at each and every one of our three community meetings, 10 working meetings, and five technical briefings to both listen and respond to questions. As you well know, the process began with considerable public skepticism about the ability and willingness of the FAA to engage in a meaningful way. I must tell you that the staff of the FAA was exemplary in its persistence, patience, and professionalism throughout the process. Special thanks to the City of Palo Alto for hosting the Committee’s 10 Working Meetings, and for the considerable multimedia support that entailed as well. But perhaps most importantly, thanks go to the members of the public who first raised these issues, who organized to make themselves heard, who testified in great numbers (approximately 250 in our first three Community Meetings, and approximately 130 at the subsequent Working Meeting of the Committee set-aside for public comment), and whose written comments – in the form of comment cards, letters, and emails – exceed more than 3,500 to date. These various public communications were essential to informing the understanding of the Committee as we crafted the Recommendations we now present to you. Having conveyed these Recommendations to you, we now ask that you continue your engagement with the FAA to ensure their timely implementation to the fullest extent practicable. The Committee believes these Recommendations have the potential to provide real relief. We hope that relief arrives sooner rather than later. Sincerely, S. Joseph Simitian County Supervisor, Fifth District Chair, Select Committee on South Bay Arrivals 17 Report of the Select Committee on South Bay Arrivals Transmittal Letter – Attachment A List of Members and Alternates, Select Committee on South Bay Arrivals Member Alternate Supervisor Joe Simitian Santa Clara County Board of Supervisors Supervisor Mike Wasserman Santa Clara County Board of Supervisors Councilmember Ann Wengert Town of Portola Valley Mayor Elizabeth Lewis Town of Atherton Councilmember Mary-Lynne Bernald City of Saratoga Councilmember Jean Mordo City of Los Altos Vice Mayor Gary Waldeck Town of Los Altos Hills Vice Mayor Gregory Scharff City of Palo Alto Supervisor Bruce McPherson Santa Cruz County Board of Supervisors Mayor Donna Lind City of Scotts Valley Supervisor John Leopold Santa Cruz County Board of Supervisors President George Purnell Happy Valley School Board Councilmember Don Lane City of Santa Cruz Mayor Cynthia Matthews City of Santa Cruz Mayor Ed Bottorff City of Capitola Councilmember Dennis Norton City of Capitola Supervisor Dave Pine San Mateo County Board of Supervisors Councilmember Jeffrey Gee City of Redwood City Mayor Mark Addiego City of South San Francisco Councilmember Bob Grassilli City of San Carlos Councilmember Sam Hindi City of Foster City Councilmember Peter Ohtaki City of Menlo Park Vice Mayor Larry Moody City of East Palo Alto Mayor Donna Rutherford City of East Palo Alto 18 Report of the Select Committee on South Bay Arrivals Transmittal Letter – Attachment B List of Meeting Dates, Times and Locations; Select Committee on South Bay Arrivals Date Time Location Organizational Meeting May 6, 2016 2:00pm San Francisco International Airport Community Meetings May 25, 2016 6:00pm Santa Cruz Civic Auditorium June 15, 2016 6:00pm Sequoia High School, Redwood City June 29, 2016 6:00pm Mountain View Center for the Performing Arts Working Meetings July 15, 2016 2:00pm Palo Alto City Hall Council Chambers July 22, 2016 2:00pm Palo Alto City Hall Council Chambers August 4, 2016 1:00pm Palo Alto City Hall Council Chambers August 18, 2016 1:00pm Palo Alto City Hall Council Chambers September 1, 2016 1:00pm Palo Alto City Hall Council Chambers September 29, 2016 1:00pm Palo Alto City Hall Council Chambers October 13, 2016 1:00pm Palo Alto City Hall Council Chambers October 27, 2016 1:00pm Palo Alto City Hall Council Chambers Public Comment November 3, 2016 2:00pm Palo Alto City Hall Council Chambers November 17, 2016 1:00pm Palo Alto City Hall Council Chambers Technical Briefings May 20, 2016 1:00pm Teleconference May 23, 2016 3:00pm Teleconference October 13, 2016 10:00am Palo Alto City Hall, Council Conference Room October 20, 2016 11:00am Teleconference November 14, 2016 9:00am Teleconference 19 1 Report of the Select Committee on South Bay Arrivals GLOSSARY Air Traffic Control (ATC): A service operated by the appropriate authority to promote the safe, orderly, and expeditious flow of air traffic. Altitude MSL: Aircraft altitude measured in feet above mean sea level. Arrival and Departure Procedures: Refers to a published procedure. Once the procedure is assigned, the procedure is designed to be flown with minimal to no communication with Air Traffic Control (ATC). Decibel: In sound, decibels measure a scale from the threshold of human hearing, 0 dB, upward towards the threshold of pain, about 120-140 dB. Because decibels are such a small measure, they are computed logarithmically and cannot be added arithmetically. Day Night Sound Level (DNL): DNL is a measure of the annual average noise in a 24-hour day. It is the 24-hour, logarithmic- (or energy-) average, A-weighted sound pressure level with a 10- decibel penalty applied to the nighttime events that occur between 10:00pm and 7:00am. DNL Contour: The "map" of noise exposure around an airport. FAA defines significant noise exposure as any area within the 65dB DNL contour; that is the area within an annual average noise exposure of 65 decibels or higher. Fixes: In aviation, a fix is a virtual navigational point that helps aircraft maintain their flight path. Fix is a generic name often interchanged with waypoint or intersection. Fleet Mix: The mix of differing aircraft types operated at a particular airport or by an airline. Frequency Weightings: Used to allow a sound level meter to measure and report noise levels that represent what humans hear. These are electronic filters within a sound level meter that are used to adjust the way in which the instrument measures the noise. The most commonly used Frequency Weightings are ‘A’, ‘C’ and ‘Z.’DNL incorporates only “A” weighted decibels. Glide Slope: Generally a 3-degree angle of approach to a runway. Provides vertical guidance for aircraft during approach and landing. Ground Track: The path an aircraft flies over the ground. Hold Procedure (Holding): A predetermined maneuver which keeps aircraft within a specified airspace while awaiting further clearance from ATC. Instrument Flight Rules (IFR): Rules governing the procedures for conducting instrument flight. 20 2 Report of the Select Committee on South Bay Arrivals NextGen: An encompassing term for the ongoing, wide-ranging transformation of the United States' national airspace system. It has sometimes been described as an evolution from a ground- based system of air traffic control to a satellite-based system of air traffic management. Optimized Profile Descent (OPD): An arrival procedure that is designed to allow aircraft to use idle engine power and reduce level-offs during descent. Procedures, general: A published, standardized set of instructions that an aircraft can fly with minimal input from ATC. Procedures are designed with strict separation criteria from other procedures. Runway: A long strip of land or water used by aircraft to land on or to take off from. For aircraft arriving to San Francisco International Airport, the primary Runways used are Runway 28 Right (28R) and 28 Left (28L), which are parallel to each other. Sequencing: The lining up of aircraft into a single flow by ATC so that all aircraft are separated to appropriate criteria. This is normally mentioned in association with landing. Standard Instrument Departure (SID): A published IFR departure procedure from an airport printed for pilot/controller use in graphic form to provide obstacle clearance. Speed Brakes: Moveable aerodynamic devices on aircraft that reduce airspeed during descent and landing. Standard Terminal Arrival Route (STAR): A published IFR arrival procedure to an airport printed for pilot/controller use in graphic form. Time Based Flow Management: TBFM uses time instead of distance to help air traffic controllers sequence air traffic by directing aircraft to be at a specific location at a specific time, which optimizes arrival flow. Terminal Radar Approach Control (TRACON): FAA air traffic facility that uses radar and non- radar capabilities to provide approach control services to aircraft arriving, departing, or transiting airspace controlled by the facility. Vector: A heading issued to an aircraft to provide navigational guidance by radar; i.e., a series of instructions from ATC directing an aircraft between two end points. Visual Flight Rules (VFR): Rules that govern the procedures for conducting flight under visual conditions. The term “VFR” is also used to indicate weather conditions that are equal to or greater than the minimum VFR requirements. Waypoint: A waypoint is a predetermined reference point in physical space used for purposes of navigation. It is also known as a fix. 21 3 Report of the Select Committee on South Bay Arrivals UNDERLYING PRINCIPLES 1. Minimizing aircraft noise must be a priority of the FAA when designing procedures, and of Air Traffic Control (ATC) when vectoring flights. Airline efficiency may have to be compromised to some degree to minimize noise exposure on the ground. 2. Aircraft noise should not be an afterthought in FAA planning and operations; nor should aircraft noise be moved randomly without regard to the relative noise burden experienced by communities below. A small number of communities should not be disproportionately affected when there are ways to avoid or disperse aircraft noise. 3. Reducing aircraft noise at night is an urgent priority. Given the availability of airspace in the nighttime hours, it should be an extremely rare occurrence that a flight path is disruptive to the community. Further, “nighttime” should be defined as 12 midnight to 6:00am, but should be expanded to include the hours of 11:00pm-12:00am and 6:00am-7:00am whenever possible. 4. When designing new procedures, the FAA must include affected communities as stakeholders. Aircraft noise not only disrupts quality of life but also has significant and well documented adverse impacts on the health and well-being of individuals residing under flight paths, particularly children. 5. No matter how effectively the airspace, or any specific procedure, is re-designed, the value of the change will only be as helpful as the extent to which it is followed. ATC should adhere to published procedures except when safety considerations require vectoring. The rate of adherence to published procedures should be monitored. 6. Meaningful metrics for measuring aircraft noise should be used when working with the Committee’s Recommendations. Limiting the metrics to use of DNL is inadequate and unacceptable. A baseline of aircraft noise should also be established. The recent agreement between the FAA and the Massachusetts Port Authority (which owns and operates three airports: Boston Logan International Airport; Hanscom Field; and Worcester Regional Airport), to use real-world single-event noise data from communities in order to develop a supplemental noise metric to measure and track noise and flight concentration is a development the Committee supports and points to as an example of a meaningful metric. 7. Reducing the noise impacts caused by NextGen should be a priority. 8. The FAA should demonstrate its ongoing commitment to working with communities throughout the San Francisco Bay Area, including, but not limited to, the three counties represented on the Select Committee on South Bay Arrivals, by: (a) monitoring resultant noise levels following implementation of Recommendations from the Select Committee; (b) participating with successor committees to the Select Committee; and (c) leading all future procedural, waypoint, and flight path development activities undertaken in response to continuing health and noise issues associated with local air traffic in consultation with the affected communities. Adopted by the Select Committee. (Vote: __11__ Aye, __1__ Nay, __0__ Absent or Abstain) 22 4 Report of the Select Committee on South Bay Arrivals SECTION 1: FAA NORTHERN CALIFORNIA INITIATIVE, FEASIBILITY GROUPS 1 THROUGH 6 In November 2015, the “FAA Initiative to Address Noise Related Concerns in Santa Cruz/Santa Clara/San Mateo/San Francisco Counties” was released. Known as the Northern California Initiative, or NorCal Initiative, it included a number of proposed technical solutions that were brought to the FAA to analyze, study, and/or evaluate. On May 16, 2016, the results of Phase 1 of the NorCal Initiative was released, consisting of a Feasibility Study (Study) of the proposed technical solutions. The FAA then grouped the solutions deemed feasible into six groups, as discussed further below in Section 1 of this Report. 1.1 Feasibility Group 1: SFO Class B Amendment Class B airspace is the restricted airspace around the nation’s busiest commercial airports designed to ensure a higher level of safety for aircraft landing at the airport. It can be visualized as an upside down wedding cake. The airport is at the center of the cake topper with the airspace reaching to 10,000 feet over the airport in a series of concentric circles. To the south, SFO’s Class B airspace reaches roughly to the junction of Summit Road/Skyline Boulevard/Highway 17 (approximately 35 miles from SFO) in the Santa Cruz Mountains. The FAA has advised the Committee that there is an identified problem in that the SFO Class B airspace, as currently configured, does not fully provide containment of the entire flight path (the so called “SERFR procedure”), which approaches SFO from the south over the Santa Cruz Mountains (see Appendix C, Page C1: Map of BSR and SERFR). As a result, aircraft are required to “level off” to stay within the airspace (or “cake”). Leveling off, however, means aircraft are taken off their Optimized Profile Descent (OPD), or idle descent to final approach. This change in glide path requires aircraft to use speed brakes, increase thrust, or take other actions which in turn generate more noise. This leveling off is presently occurring just off the Capitola coastline (near the point in space known as the EPICK waypoint), as well as over the Mid-Peninsula. Feasibility Group 1 contains proposals to amend the SFO Class B airspace to fully contain the SERFR procedure by altering the size or shape of the airspace (or the size or shape of the cake layers) to keep aircraft inside the airspace (or cake) and on their OPD. Once the SFO Class B is amended, the expectation is that more flights will fully execute an OPD and no longer need to make altitude and speed adjustments, thereby reducing the noise exposure near the Capitola coastline (i.e., the EPICK waypoint) and over the Mid-Peninsula. Recommendation: The Select Committee recommends adoption of Feasibility Group 1. Additionally, any changes to the SFO Class B airspace to fully contain the SERFR procedure should also allow OPD arrivals on any other arrival procedure from the south that might replace, or supplement, the SERFR procedure. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) Technical Note: Feasibility Group 1 encompasses seven of the items in the Study: 1.d.i; 1.d.ii; 2.b.i; 2.c.iii; 2.d.ii; and, 3.d.ii. 23 5 Report of the Select Committee on South Bay Arrivals 1.2 Feasibility Group 2: Transition the SERFR Standard Terminal Arrival Route (STAR) Back to the BSR Ground Track Prior to EPICK Feasibility Group 2 contains proposals to move the arrival procedure from the south, back west to a similar ground track previously used for the BSR procedure. This design would put the SERFR flight path back over the BSR ground track, roughly 3-4 miles to the west of where the path currently reaches the Santa Cruz County coastline (near the City of Capitola) (see Appendix C, Page C1: Map of BSR and SERFR). However, it should be noted that even with a “return to the BSR ground track,” aircraft would not actually fly the same conventional procedure as the previous BSR. The BSR procedure predated NextGen and did not use satellite-based navigation. NextGen uses satellite navigation and Optimal Profile Descents (OPD). These Optimal Profile Descents include some waypoints with an altitude control “window” providing a range of altitudes (from lowest to highest; e.g., 7,000 feet to 9,000 feet) that aircraft must be within when crossing the waypoint. In addition, and speaking generally, the pre-NextGen flights were relatively dispersed as compared to present-day NextGen procedures which consolidate, to a greater degree, flights along a narrower path. The FAA has advised the Committee that a new flight procedure that is GPS-based and that contains an OPD could be designed to fly the old BSR ground track, as suggested in the proposals in Feasibility Group 2. Recommendation 1: The Select Committee recommends that arrivals into SFO from the south use the BSR ground track for a new NextGen procedure that incorporates the criteria contained in Recommendation 2 below. (Vote: __8__ Aye, __4__ Nay, __0__ Absent or Abstain) Recommendation 2: The Committee recommends that the new NextGen procedure for arrivals into SFO from the south be implemented as soon as feasible and include the following criteria: 1. Results in noise modeling of the proposed new procedure that has an equivalent or less DNL noise exposure along its entire route when compared to the noise modeling of the BSR 2014 procedure; 2. Uses flight altitudes at least as high as (and preferably higher) than the historic BSR procedure along its entire route; 3. Starts from a point over the Monterey Bay and reaches the shoreline at an altitude no lower than 12,500 feet mean sea level; 4. Utilizes a new BSR waypoint equivalent to the EDDYY waypoint at or above 6,000 feet to ensure flights cross the MENLO waypoint at or above 5,000 feet and maintain idle power until the HEMAN waypoint; 5. Prioritizes and adheres as closely as possible to an OPD terminating at the HEMAN waypoint; 6. Incorporates a modification to Class B airspace if needed; 7. Uses flight altitudes that are as high as possible while still allowing idle power flight; 8. Is designed to avoid the use of speed brakes; and, 24 6 Report of the Select Committee on South Bay Arrivals 9. Will be subject to future capacity limitations, particularly during nighttime hours and when vectoring exceeds current levels. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) Recommendation 3: The Committee recommends that within three months of completing implementation of the new procedure described in Recommendations 1 and 2 above, the FAA will meet with the Ad-Hoc Subcommittee referred to in Item 3.1, Recommendation 1, in this Report (Need for an Ongoing Venue to Address Aircraft Noise Mitigation) to review whether the new procedure has resulted in an equivalent or less DNL noise exposure along its entire route when compared to 2014 noise modeling of the BSR procedure. The permanent entity referred to in Item 3.1, Recommendation 2, in this Report (Need for an Ongoing Venue to Address Aircraft Noise Mitigation) will continue to monitor the implementation of the new procedure. The Committee further recommends that the FAA work with the Ad-Hoc Subcommittee, the permanent entity, and the affected communities to make adjustments to the new procedure, if needed, to reduce its noise exposure. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) Recommendation 4: The Select Committee recommends that the FAA, in consultation with the permanent entity and the community, search for and develop a new flight procedure for arrivals into SFO from the south that: (a) meets each of the criteria in Recommendation 2 above; (b) takes maximum advantage of areas of non- residential use, such as unpopulated mountainous areas, industrial areas, parkland, cemeteries, etc; and (c) reduces noise exposure to the maximum extent possible. The Committee further recommends that this procedure be implemented as soon as feasible; however, the Committee recognizes that it will take considerably longer to implement than the procedure referenced in Recommendations 1 and 2 above. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) Technical Note: Feasibility Group 2 encompasses two of the items in the Study: 1.f.i and 3.d.ii. 25 7 Report of the Select Committee on South Bay Arrivals 1.3 Feasibility Group 3: Increasing Percentage of NIITE Flights Which Remain on NIITE Until at Least the NIITE Waypoint Feasibility Group 3 applies to nighttime operations on the NIITE procedure (which does not include all flights at night). These flights depart SFO over the San Francisco Bay (Bay), reach the NIITE waypoint in the Bay north of the Bay Bridge, then turn to the northeast to fly out of the Bay Area over several East Bay communities (see Appendix C, Page C2: Map of NIITE). About 35 percent of NIITE flights are currently turning early. Because the flights turn earlier, they are at a lower altitude when they turn; and consequently may generate more noise exposure on the ground. Feasibility Group 3 contains proposals to increase the percentage of these eastbound NIITE flights that remain on the path until reaching the waypoint, thereby reducing early turns which cross land at lower, noisier altitudes. The FAA has advised the Committee that the result should be less noise exposure for some East Bay communities; such change, however, is not expected to provide benefit to residents in the three-county area served by the Committee. The Committee’s understanding is that the proposed change would not limit the FAA’s ability to route more arrival traffic over the BDEGA East leg (including, for instance, OCEANIC arrivals in the middle of the night). Recommendation: The Select Committee recommends adoption of Feasibility Group 3. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) Technical Note: Feasibility Group 3 encompasses five of the items in the Study: 2.a.ii.a; 2.a.ii.c; 2.g.ii; 3.d.i; and, 3.d.ii. 1.4 Feasibility Group 4: Create a New South Transition for the NIITE Standard Instrument Departure (SID) Feasibility Group 4 also applies to nighttime operations on the NIITE procedure (which does not include all flights at night). These flights depart SFO over the San Francisco Bay (Bay), reach the NIITE waypoint in the Bay north of the Bay Bridge, then turn to the northeast to fly out of the Bay Area over several East Bay communities (see Appendix C, Page C2: Map of NIITE). The NIITE procedure does not provide a path for nighttime departures headed to southern destinations. Currently, nighttime SFO departures headed to southern destinations use the SSTIK departure procedure. These nighttime operations on the SSTIK departure procedure depart SFO over the San Francisco Bay (Bay) to the northeast and quickly loop back around over the Peninsula communities of Brisbane, San Bruno, and South San Francisco to head to southern destinations. Because flights currently departing on the SSTIK procedure make a quick loop from the Bay down over the Peninsula, they do so with related noise exposure for the Peninsula communities below. A number of these communities have asked if other flight paths might be explored. Feasibility Group 4 proposes that nighttime SSTIK departures use the NIITE procedure up to the NIITE waypoint, which is in the Bay north of the Bay Bridge, then the aircraft would head west out over the Golden Gate Bridge. By keeping the SSTIK departures over the Bay and Pacific 26 8 Report of the Select Committee on South Bay Arrivals Ocean, the aircraft are able to gain altitude over unpopulated areas. As a result, when they are eventually flying over the San Francisco Peninsula on their way to southern destinations they will do so at a higher altitude (and will thus be quieter). The Committee’s understanding is that the proposed change would not limit the FAA’s ability to route more arrival traffic over BDEGA East leg (including, for instance, OCEANIC arrivals in the middle of the night). Recommendation: The Select Committee recommends adoption of Feasibility Group 4. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) Technical Note: Feasibility Group 4 encompasses six of the items in the Study: 1.f.iii; 2.a.ii.a; 2.f.i; 2.g.ii; 3.d.i; and, 3.d.ii. 1.5 Feasibility Group 5: Increasing Percentage of CNDEL Flights Which Remain on CNDEL Until at Least the CNDEL Waypoint The CNDEL is a departure procedure from the Oakland International Airport, with aircraft heading northwest over the San Francisco Bay (Bay) to the CNDEL waypoint which is located off the northwesterly end of Alameda Island (see Appendix C, Page C3: Map of CNDEL). Under the current procedure/path, aircraft reach the waypoint and then turn west and south over Brisbane and South San Francisco. Sixty percent of the CNDEL departures are currently turned before the CNDEL waypoint. This means they reach the San Francisco Peninsula sooner and at lower altitudes. These turns are due to spacing and sequencing the CNDEL aircraft with other departing aircraft in the Bay Area airspace. Feasibility Group 5 contains proposals to increase the percentage of CNDEL departures that stay on the procedure longer and do not turn prior to the CNDEL waypoint, thereby reducing the number turning before the CNDEL waypoint and crossing land at lower, noisier altitudes. The Committee’s understanding is that the proposed change would not limit the FAA’s ability to route more arrival traffic over BDEGA East leg (including, for instance, OCEANIC arrivals in the middle of the night). Recommendation: The Select Committee recommends adoption of Feasibility Group 5 with the goal of having 100 percent of CNDEL departures stay on the procedure longer and not turn prior to the CNDEL waypoint. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) Technical Note: Feasibility Group 5 encompasses eight of the items in the Study: 1.a.ii; 1.b.i; 1.b.ii; 1.c.ii; 2.a.ii.a; 2.a.ii.b; 3.d.i; and, 3.d.ii. 27 9 Report of the Select Committee on South Bay Arrivals 1.6 Feasibility Group 6: Improve Aircraft Set Up and Sequencing Between Facilities Aircraft are sequenced to ensure they arrive on the final approach course safely and at repeated intervals allowing for airport operational efficiency. Existing metering tools aid in this air traffic management, but aircraft “vectoring” (turning aircraft off the assigned procedure) and “holding” (a maneuver designed to delay an aircraft already in flight while keeping it within a specified airspace) affect a substantial number of flights, especially in congested airspaces such as the San Francisco Bay Area. Vectoring also is a source of noise; it often involves aircraft turning and changes in speed, with increased noise exposure on affected communities. Feasibility Group 6 contains proposals to use new, more effective, time-based flow management tools currently in development to allow for better sequencing (i.e., spacing) of aircraft to reduce the percentage of aircraft that are vectored or held prior to the final approach path to SFO. New metering tools are not an immediately available fix; however, the technology to create Terminal Sequencing and Spacing (TSS), or Time-Based Flow Management (TBFM), is in development. In the future, the expectation is that such technological advances will allow for aircraft flows to be taken into account and assigned an order well in advance of final approach. The benefit of such technological advances are two-fold: (1) reduced percentage of vectored or turned aircraft and related noise exposure; and (2) greater ability to leave aircraft on Optimized Profile Descent (OPD), with an idle descent that is quieter. The Select Committee hopes that the FAA will support the implementation of TSS or TBFM even if that means delaying some take-offs at the airport of origin. When implementing TSS or TBFM, the FAA should use it to relieve the concentration of flights over impacted communities (as opposed to increasing flights in so-called noise corridors). In particular, TSS or TBFM should be used to reduce vectoring in the area of the MENLO waypoint. Recommendation: The Select Committee recommends adoption of Feasibility Group 6. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) Technical Note: Feasibility Group 6 encompasses five of the items in the Study: 3.b.i; 3.b.ii; 3.c.i; 3.c.ii; and, 3.d.ii. 28 10 Report of the Select Committee on South Bay Arrivals SECTION 2: OTHER POTENTIAL SOLUTIONS In the course of the Select Committee’s deliberations, a number of additional potential solutions were identified. Each of these proposed “Other Potential Solutions” is discussed further below. 2.1 Airbus A320 Aircraft Family Wake Vortex Generators Retrofit Airbus’s A320 family of aircraft built before 2014 makes a whistling (or whining) sound on approach due to wing design. The Committee was advised that the whistle (whine) can be reduced by mounting a small air deflector on each wing. The cost of such technology is reportedly modest ($3,000-$5,000 per aircraft). The noise reduction from the retrofit has been claimed to be from between 2 to 11 decibels depending on the phase of flight and angle of the aircraft along the approach. Roughly 35 percent of the aircraft arriving and departing SFO need the retrofit. Recommendation: The Select Committee recommends that the Airbus family aircraft arriving or departing SFO undergo the retrofit at the earliest possible opportunity. The Committee takes notes of the fact that one major airline flying into and out of SFO has proposed to retrofit its fleet over the next 2-3 years. While the commitment to retrofit is welcome news, the Committee finds that the time period is unnecessarily and unacceptably long. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) 2.2 Northern Arrivals (BDEGA) into SFO SFO arrivals from points north arrive via the BDEGA arrival procedure/path. Arriving aircraft reach a point roughly over Daly City and then continue south flying past SFO, using either the Peninsula (the so-called West leg) or San Francisco Bay (the so-called East leg), to essentially make a U-turn and land on Runways 28L and 28R, respectively (See Appendix C, Page C4: Map of BDEGA, OCEANIC, SERFR, and DYAMD). The FAA has advised the Committee that the BDEGA East leg shares the final approach path into SFO with aircraft arriving from the east on the DYAMD arrival procedure. Aircraft using the East leg, or over-the-bay route, obviously have a dramatically reduced noise exposure versus aircraft using the West leg, which fly over the highly populated Mid-Peninsula. In years past, there was a roughly equal split of aircraft using the West and East legs of the BDEGA arrival procedure/path. The FAA has advised the Committee that ten years ago, in May 2006, the “split” between the two legs was 52 percent West leg and 48 percent East leg. In May 2016, roughly 70 percent of the arriving aircraft used the Peninsula (the so-called West leg), while roughly 30 percent of arriving aircraft used the San Francisco Bay (the so-called East leg). This overutilization of the Peninsula or West leg negatively affects the highly populated Mid-Peninsula communities. Recommendation 1: The Select Committee recommends that aircraft flying on the BDEGA procedure utilize the so-called East leg (over the San Francisco Bay) as much as possible, in order to minimize noise over the Peninsula. The Committee 29 11 Report of the Select Committee on South Bay Arrivals further recommends that the FAA assess the potential of formalizing this procedure so that it is more likely to be used. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) Recommendation 2: The Select Committee recommends that all aircraft flying on the BDEGA procedure during nighttime hours, when air traffic flows are reduced, use the East leg, unless safety considerations prohibit such a flight path. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) 2.3 Woodside VOR (Navigational Beacon) Aircraft fly in the vicinity of the Woodside VOR, a ground-based navigational aid, to arrive at SFO. Aircraft activity in this area includes aircraft arrivals from numerous origin points, including but not limited to OCEANIC arrivals, which come in from the west from overseas (See Appendix C, Page C4: Map of BDEGA, OCEANIC, SERFR, and DYAMD). Based on discussions between and among SFO, the FAA, the SFO Airport/Community Roundtable, and local elected officials, a new noise abatement procedure was implemented at the Woodside VOR in July 1998. Pursuant to this procedure, for those flights routed over the Woodside navigational beacon, “traffic permitting,” air traffic controllers shall clear SFO OCEANIC arrivals to cross the Woodside VOR at or above 8,000 feet mean sea level. The Committee received numerous reports from the community that this agreement is not currently honored. There are reports of aircraft flying over the Woodside VOR at altitudes appreciably lower than 8,000 feet, including at night when residents are particularly sensitive to noise. The Committee also found that there is an authorized Ocean Tailored Arrival (OTA), which specifically allows arriving OCEANIC aircraft to be at or above the Woodside VOR at 6,000 feet. This OTA is also used in the overnight hours when residents are particularly sensitive to noise. The FAA has advised the Committee that while OCEANIC flights represent just four percent of the daytime traffic arriving into SFO, OCEANIC flights represent thirty-six percent of the flights arriving at SFO at nighttime. Recommendation 1: The Select Committee recommends that per the current noise abatement procedure, aircraft comply with the obligation to cross the Woodside VOR at 8,000 feet mean sea level, traffic permitting. The Committee further recommends that this altitude restriction, to the greatest extent possible and traffic permitting, also be applicable to all vectored flights that are in the vicinity of the Woodside VOR. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) Recommendation 2: The Select Committee recommends revision of the Woodside VOR Ocean Tailored Arrival to honor the existing noise abatement procedure to cross the Woodside VOR at 8,000 feet. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) 30 12 Report of the Select Committee on South Bay Arrivals Recommendation 3: The Select Committee recommends further restrictions to prohibit any overnight crossings at the Woodside VOR below 8,000 feet. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) 2.4 Overnight Flights Reducing noise at night is an urgent priority. Between midnight and 6:00am the number of flights into and out of SFO is significantly reduced. As a result, there is considerable potential for aircraft to be rerouted over unpopulated or less populated areas, specifically the San Francisco Bay and Pacific Ocean, instead of the San Francisco Peninsula. Currently the management of SFO implements a number of overnight noise abatement procedures that are beneficial to the communities surrounding SFO. These procedures include, but are not limited to, prohibitions on “run-ups” of mounted aircraft engines for maintenance or test purposes between the hours of 10:00pm and 7:00am daily with limited exceptions and the use of auxiliary power units when aircraft are parked at the gate. Separately, SFO also employs Nighttime Preferential Runway Use, which maximizes flights over water and minimizes flights over land and populated areas between 1:00am and 6:00am. As discussed elsewhere in this Report, the Select Committee has made a number of additional Recommendations to mitigate in-flight aircraft noise during the night, including: Item 1.3 Increasing the Percentage of NIITE Flights Which Remain on NIITE Until at Least the NIITE Waypoint; Item 1.4 Create a New South Transition for the NIITE SID; Item 1.5 Increasing Percentage of CNDEL Flights Which Remain on CNDEL Until at Least the CNDEL Waypoint; Item 2.2 Northern Arrivals (BDEGA) into SFO; Item 2.3 Woodside VOR (Navigational Beacon); Item 2.8 Increase All Altitudes; Item 2.10 Runway Usage; and, Item 2.14 Redirect Southern Arrivals (SERFR) to an Eastern Approach into SFO). Recommendation 1: The Select Committee recommends that all efforts be made to reduce in-flight aircraft noise over populated areas during “nighttime” hours when residents need a reprieve from aircraft noise so that they can sleep, including, but not limited to, the Recommendations made elsewhere in this Report. For purposes of this Report, “nighttime” should be defined as 12:00am to 6:00am, but should be expanded to include the hours of 11:00pm-12:00am and 6:00am-7:00am whenever possible. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) Recommendation 2: The Committee recommends that during “nighttime” hours, air traffic control make every effort to direct arrivals into a single stream to Runway 28R to reduce the noise exposure on the bayside communities of Redwood City and Foster City. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) 31 13 Report of the Select Committee on South Bay Arrivals Recommendation 3: The Committee recommends that the FAA, SFO, and industry users continue their efforts to establish new additional overnight noise abatement procedures within the next six months. This work should be done in consultation with other relevant stakeholders. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) 2.5 MENLO Waypoint The MENLO waypoint is located several city blocks south of the intersection of Willow Road and Highway 101. It is the final waypoint on the SERFR arrival procedure/path, which is an arrival procedure into SFO from the south that approaches the airport from the Santa Cruz Mountains (See Appendix C, Page C4: Map of BDEGA, OCEANIC, SERFR, and DYAMD). Aircraft on the SERFR arrival procedure/path then cross the MENLO waypoint to join the final approach path into SFO. The altitude of the MENLO waypoint is currently 4,000 feet. Given its location over a highly populated area, the location and altitude of the MENLO waypoint are problematic and a source of many community complaints. The FAA has advised the Committee that in June 2016, an average of 183 aircraft arrived each day into SFO on the SERFR procedure/path, representing 30 percent of the arrivals into SFO. The FAA has also advised the Committee that currently 50 percent of the aircraft on the SERFR arrival procedure/path are vectored off the procedure/path prior to the MENLO waypoint. As discussed in Item 2.9 in this Report (Aircraft Vectoring), the vectored SERFR aircraft are eventually sequenced for merging onto the final approach into SFO. The FAA has also suggested that the Committee take note of the fact that there are other aircraft in the vicinity of the MENLO waypoint that are not related to the SERFR arrival procedure/path. These “other aircraft,” the FAA pointed out, represent 85 percent of the aircraft in the vicinity of the MENLO waypoint. With all this in mind, it has been suggested that the altitude of the crossing at the MENLO waypoint be increased. It has also been suggested that a different final waypoint be established for the SERFR procedure, located to the east and/or north of the current MENLO waypoint (presumably over a less populated area and at a higher altitude). This suggestion could involve establishment of a new waypoint, or the use of existing waypoints, such as the ROKME or DUMBA waypoints. These waypoints are located in the San Francisco Bay, just to the north and south of the eastern shoreline of the Dumbarton Bridge, respectively. Under this suggestion, aircraft would cross at one of these waypoints, which would be at a higher altitude as compared to the current altitude at the MENLO waypoint, before joining the final approach into SFO. Recommendation 1: The Select Committee recommends that the altitude of flights over the MENLO waypoint be 5,000 feet or higher. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) Recommendation 2: The Committee recommends that the FAA design a new procedure for arrivals into SFO from the south using the MENLO waypoint. The recommended procedure would cross the EDDYY waypoint (or equivalent) above 6,000 feet, continue at idle power to cross the MENLO waypoint at or above 5,000 feet, 32 14 Report of the Select Committee on South Bay Arrivals and maintain idle power until the HEMAN waypoint (or other ILS 28L interception point). Such a procedure should also be designed to avoid the use of drag devices such as speed brakes. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) Recommendation 3: The Committee further recommends that all air traffic in the vicinity of the MENLO waypoint (including vectored traffic from other procedures) be kept at altitudes equivalent to those in Recommendation 1 above, even if not crossing directly over the MENLO waypoint. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) Recommendation 4: In order to facilitate Recommendations 1 and 2 above, the FAA should review whether the angle of the 28L glide slope can be increased in order to increase the altitude at the HEMAN waypoint, or equivalent. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) Recommendation 5: Finally, the Committee recommends that the FAA assess the feasibility of establishing a different waypoint for entry to the final approach into SFO on the SERFR arrival procedure (or any procedure that may replace it for arrivals from the south). A different waypoint could be established and located either to the east and/or north of MENLO, or by using existing waypoints FAITH, ROKME, or DUMBA. The new waypoint should be at a location that allows flight over compatible land uses (i.e., over water or sparsely populated land masses) and at a high enough altitude to ensure noise exposure of approaching aircraft is minimized. The Committee acknowledges that this Recommendation potentially involves working with stakeholders to revise the San Jose International Airport Class C airspace to maintain safety clearance requirements if the FAITH or ROKME waypoint options are pursued. The Select Committee does not recommend that a different final waypoint be established for the SERFR procedure (or any procedure that may replace it for arrivals from the south), either through the establishment of a new waypoint or by using an existing waypoint, if such an action simply results in “noise shifting.” (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) 33 15 Report of the Select Committee on South Bay Arrivals 2.6 Raise the Floor of Altitude Control Windows on SERFR An altitude control window at a waypoint provides a range of altitudes (from lowest to highest; e.g., 7,000 feet to 9,000 feet) that aircraft must be within when crossing the waypoint. The FAA has advised the Committee that the range of altitudes is provided because the aircraft fleet mix varies. The last leg of SERFR has only one altitude control window, at waypoint EPICK (just offshore from Capitola on the Santa Cruz County coast) with a range of 10,000 feet to 15,000 feet (See Appendix C, Page C1: Map of BSR and SERFR). By reducing the size of that window by 2,000 feet, so that its range is 12,000 feet to 15,000 feet, aircraft would be at a higher altitude when crossing the EPICK waypoint. Recommendation 1: The Select Committee recommends that the FAA decrease the size of the altitude windows on the SERFR procedure or path so that aircraft crossing EPICK do so at a higher altitude. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) Recommendation 2: It is suggested that the arrival procedure for SERFR, or any subsequent route in this sub-region, be designed, if possible, to allow aircraft to reduce speed early, while over the Monterey Bay; beginning their Optimized Profile Descent into the Santa Cruz area and beyond in a fashion that affects fewer people. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) 2.7 Increase the Altitude and Profile of Descents into SFO An approach slope is the descent path that aircraft follow on final approach to land on a runway. An approach slope is also known as a glide slope, as the path is ideally a gentle downward slope. A commonly used approach slope in modern aviation is 3.0 degrees from the horizontal. At SFO, the two main landing runways are 28L and 28R, and they are parallel to each other. Runway 28L has a glide slope of 2.85 degrees, while Runway 28R has a glide slope of 3.0 degrees. The variation in the glide slopes is a function of the two runways being parallel to each other. Other airports use a steeper glide slope. For instance, the Frankfurt airport is using 3.2 degrees while London City airport uses a glide slope of 5.5 degrees. If the glide slope on both Runways 28L and 28R at SFO were increased, even if only by 0.15 degrees each, it would allow descending aircraft to begin their descent at a higher altitude, thereby reducing noise exposure on the ground. Recommendation: The Select Committee recommends that the FAA determine the feasibility of increasing the glide slopes of SFO Runways 28R and 28L to the maximum extent consistent with safety and the Committee’s goal of noise mitigation. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) 34 16 Report of the Select Committee on South Bay Arrivals 2.8 Increase All Altitudes Aircraft noise is noise pollution produced by any aircraft or its components. The noise is generated during the various phases of a flight, such as when the aircraft is: (a) on the ground while parked using auxiliary power units; (b) while taxiing; (c) during takeoff; (d) while over-flying enroute; and (e) during landing. Aircraft noise is also generated both underneath and lateral to departure and arrival paths. This latter form of aircraft noise has been the primary source of complaints since the March 2015 implementation of NextGen. At the risk of stating the obvious, the higher the altitude of departure and arrival paths, the quieter the experience is on the ground. Or, in other words, aircraft at higher altitudes tend to be quieter. Recommendation: The Select Committee recommends that to the greatest extent possible, while still ensuring the safety of the aircraft, that the altitude be increased for all flight procedures/paths into and out of SFO. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) 2.9 Aircraft Vectoring Vectoring is assigned verbally by FAA air traffic controllers, and generally involves turning aircraft off the assigned procedure/flight path. Vectoring of SFO arrivals over the Mid-Peninsula is common and principally generated from three sources: (1) arrivals from the north (BDEGA); (2) to a lesser degree, overseas arrivals from the west (OCEANIC); and (3) the roughly 50 percent of the arrivals from the south (SERFR) that are currently vectored off the SERFR procedure/path (See Appendix C, Page C4: Map of BDEGA, OCEANIC, SERFR, and DYAMD). These arriving aircraft are vectored to properly sequence them for merging onto the final approach into SFO. It should be noted that while noise generated by vectoring in the first two instances (i.e., BDEGA and OCEANIC) occurs in the vicinity of the MENLO waypoint, the location of these operations is unrelated to the presence of the MENLO waypoint, as discussed further in Item 2.5 in this Report (MENLO Waypoint). Vectoring can be a source of substantial noise. If the vectoring directive from Air Traffic Control to the pilot includes a change in speed, a turn, and/or an altitude restriction, an increase in noise is a likely result. On the other hand, if the vectoring directive is unrestricted, with the pilot not being given a speed or altitude restriction, it is unlikely that noise will result. The FAA has advised the Committee that vectoring is done for safety reasons, and that the specific directive provided is dependent on the variables present. Consequently, according to the FAA, it is not predictable what the noise exposure will be from vectoring. Yet, vectoring is the source of many of the noise complaints presented to the Committee by the community. This is due in part because the aircraft vectoring over the Mid-Peninsula do so at low altitudes. In addition, the topography of the Mid-Peninsula is uneven. To further complicate the matter, while some members of the community have complained that vectoring is a source of noise, others warn that efforts to keep greater numbers of aircraft on the established flight paths concentrates even greater amounts of noise on those who live or work under the established flight track (this is the issue some advocates refer to as “sacrificial noise corridors”). So, if you vector, 35 17 Report of the Select Committee on South Bay Arrivals you create noise over a relatively wide area; if you don’t, you concentrate a greater amount of noise on a relative few (a smaller number) who are already heavily burdened. It has been suggested that the altitude at which aircraft are vectored over the Peninsula be increased, to reduce the noise exposure experienced on the ground. It should be noted, however, that the FAA has advised the Committee that increases in the altitude of the BDEGA West leg vectored aircraft could require the aircraft to fly somewhat further south, in order to safely descend and make the U-turn to join the final approach into SFO. Recommendation 1: The Select Committee recommends that the FAA identify locations that have the most compatible land uses for vectoring, such as over the Pacific Ocean or San Francisco Bay, and vector the SFO arriving air traffic in those locations to reduce noise exposure experienced on the ground. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) Recommendation 2: The Committee recommends that the FAA raise vectoring altitudes to maximum feasible altitudes over the Mid-Peninsula, with a focus on higher altitudes in the vicinity of the MENLO waypoint. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) 2.10 Runway Usage SFO operates on two sets of parallel runways that intersect midfield at a ninety-degree angle. Approximately 83 percent of the time aircraft depart on either Runway 01L (left) or 01R (right) and arrive on either Runway 28L (left) or 28R (right). Under this flow of traffic, SFO’s acceptance rate for arriving traffic is 60 aircraft per hour. This arrival rate can be accommodated because with good visibility and weather, aircraft land side-by-side on Runways 28L and 28R as the pilots are able to see the other aircraft arriving on the parallel runway and can maintain visual separation. The arriving traffic to Runway 28L is closer to the western edge of the San Francisco Bay (Bay), proximate to the bayside communities of Redwood City and Foster City. Runway 28R is farther removed from those communities. Greater use of Runway 28R has a reduced noise exposure for these bayside communities; however, the FAA advised the Committee that, for the most efficient operations at SFO (i.e., accommodating the greatest number of aircraft), Runways 28L and 28R are used simultaneously. As detailed in this Report (Item 2.4 Overnight Flights), during the overnight hours the overall amount of air traffic is dramatically reduced. It has been suggested that, to the extent possible, 100 percent of nighttime flights should be directed by Air Traffic Control (ATC) in a single stream to Runway 28R to reduce the noise exposure on the communities of Redwood City and Foster City. It has also been suggested that regardless of the time of day, and when conditions permit (including, but not limited to, the number of operations), ATC should direct aircraft to use Runway 28R. This includes use of the “noise friendlier” offset approach, which takes aircraft farther into the Bay before joining the final approach to SFO. Use of the offset approach not only benefits 36 18 Report of the Select Committee on South Bay Arrivals Foster City and Redwood City, but because aircraft are joining the final approach farther into the Bay, it could allow for higher altitudes while the aircraft are crossing over the Mid-Peninsula area. Recommendation: The Select Committee recommends that all feasible measures be taken to reduce the noise exposure to bayside communities, including Foster City and Redwood City, by directing air traffic to Runway 28R whenever possible. During the important overnight hours, every effort should be made to create a single stream of traffic, and to assign that traffic, safety permitting, to fly a “noise friendlier” offset approach to Runway 28R. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) 2.11 Modify BRIXX Procedure into San Jose International Airport The BRIXX arrival is an arrival procedure/path from the north into San Jose International Airport (SJC) which runs down the Peninsula, roughly over La Honda and Boulder Creek before turning and flying south and then turning east and north (essentially a big U-turn) to join the final approach into SJC (See Appendix C, Page C5: Map of BRIXX). The BRIXX path intersects with the SERFR arrival path (which approaches SFO from the south over the Santa Cruz Mountains), roughly just to the north of Mount McPherson in the Santa Cruz mountains. The FAA has advised the Committee that, under NextGen, BRIXX basically overlaid a predecessor path, which was named GOLDN. The change to a satellite based navigation flight path, as opposed to the prior ground track flight path, resulted in the BRIXX arrival path becoming more concentrated; with vectoring moving southward, and moving closer to the designated flight path. The FAA further advised the Committee that roughly 76 percent of the BRIXX flights are vectored or turned off the path prior to the point where BRIXX intersects with SERFR. These changes resulted in complaints from residents in affected communities. It has been suggested that these complaints be addressed by: (1) moving the intersection of BRIXX and SERFR farther to the north and east, potentially to waypoint EDDYY, which is located roughly over the Rancho San Antonio Open Space Preserve; and (2) increasing the altitude of BRIXX so that it is above the altitude of the SERFR arrival path. The FAA has advised the Committee that these potential solutions raise a number of concerns. First, moving the flight path as suggested potentially moves noise further into the already impacted Mid-Peninsula area and places arriving aircraft at too high of an altitude too close to SJC. In order for those aircraft to safely land, the aircraft would have to fly even further south to make the necessary turn to the east and the north to join the final approach into SJC, potentially resulting in new noise exposure. Increasing the altitude of BRIXX also potentially limits the FAA’s ability to consider other potential solutions the Select Committee might advance, such as raising the altitude on SERFR. Recommendation: The Select Committee recommends that, following implementation of changes to the current arrival route for aircraft from southern destinations, the FAA shall consider a new BRIXX procedure that maintains the highest possible altitude 37 19 Report of the Select Committee on South Bay Arrivals at the point where it (BRIXX) intersects the new arrival route from the south. The FAA should make every attempt to raise the altitude high enough such that the DNL under the new intersection (where BRIXX and new arrival route from the south) is lower than the DNL under the current intersection (where BRIXX and the current SERFR route cross). The FAA shall review any proposed new BRIXX procedure with any successor committee as recommended in Item 3.1, Recommendations 1 and 2, in this Report (Need for an Ongoing Venue to Address Aircraft Noise Mitigation), and the affected communities. (Vote: __10__ Aye, __0__ Nay, __2__ Absent or Abstain) 2.12 Modify NRRLI Waypoint on the First Leg of SERFR In the Carmel Valley (Monterey County), aircraft joining the SERFR arrival procedure/path turn over the Valley to reach the NRRLI waypoint. That turn has created adverse noise exposure on the ground. Prior to the March 2015 implementation of NextGen procedures, aircraft flew over the Carmel Valley in a straight line. It has been suggested that the NRRLI waypoint be moved to where the SERFR procedure/path intersects the coastline near the City of Seaside along the Monterey Bay. The FAA has advised the Committee that this proposed solution, however, has the potential to move existing noise to another community. For that reason, the Select Committee has not endorsed this solution. The FAA may, however, wish to examine whether this proposed solution, or a variation thereof, could be effectively implemented without shifting noise. Adopted by the Select Committee. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) 38 20 Report of the Select Committee on South Bay Arrivals 2.13 San Jose International Airport Reverse Flow: Aircraft Arrivals Under normal conditions, aircraft arriving at San Jose International Airport (SJC) arrive from the south and depart heading north. During inclement weather, or a significant change in wind direction over the San Jose area, the takeoff and landing approaches are temporarily reversed with aircraft arriving at SJC from the north and departing to the south. This “Reverse Flow” brings arriving aircraft in at lower altitudes to the west of SJC, over the communities of Palo Alto, Mountain View, and Sunnyvale. It has been suggested that the “Reverse Flow” approach could instead arrive from the east of SJC, using a “Normal Flow” departure procedure that is not used during “Reverse Flow” conditions. The FAA has advised the Committee that this proposed solution, however, has the potential to move existing noise to another community (a community not represented by the congressional districts that established the Select Committee). For that reason, the Select Committee has not endorsed this proposed solution. The FAA may, however, wish to examine whether this proposed solution, or a variation thereof, could be effectively implemented without shifting noise. Adopted by the Select Committee. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) 2.14 Redirect Southern Arrivals (SERFR) to an Eastern Approach into SFO As previously noted, SERFR is a southern arrival procedure/flight path into SFO (i.e., approaching SFO from the south over the Santa Cruz Mountains). Flights on the SERFR procedure include (among others) aircraft from the southwest, such as Phoenix and Houston. In June 2016, the SERFR carried an average of 183 aircraft per day, or 30 percent of the arriving aircraft into SFO. It has been suggested by some that these aircraft from the southwest be removed from the SERFR arrival procedure, and instead use an eastern approach into SFO. Under this suggestion, aircraft would either use the existing DYAMD arrival procedure (which is for flights arriving at SFO from the east with a flight path that enters the Bay roughly between Fremont and Milpitas), or use a new procedure crossing the FAITH waypoint (which is located at the intersection of Hostetter Road and Morrill Avenue, east of Interstate 680 in East San Jose) (See Appendix C, Page C4: Map of BDEGA, OCEANIC, SERFR, and DYAMD). The FAA has advised the Committee that this proposed solution raises a number of potential concerns. In June 2016, the DYAMD already carried the greatest percentage of daily air traffic into SFO, an average of 253 aircraft per day, or 41 percent of the arriving traffic into SFO. The DYAMD arrival procedure also shares the final approach path into SFO with aircraft arriving from the north (on the BDEGA procedure), specifically the 30 percent of BDEGA arrivals that use the San Francisco Bay approach (the so-called East leg). Increasing the aircraft load on the DYAMD procedure as suggested reduces the opportunity to shift aircraft from the BDEGA Peninsula (so- called West leg) approach onto the BDEGA San Francisco Bay approach (so-called East leg). For that reason, the Select Committee has not endorsed this solution {see Item 2.2 in this Report [Northern Arrivals (BDEGA) into SFO]}. 39 21 Report of the Select Committee on South Bay Arrivals With regard to creating a new procedure using the FAITH waypoint, the FAA has advised the Committee that this flight path has the potential to conflict with departures out of San Jose International Airport and move existing noise to another community (a community not represented by the congressional districts that established the Select Committee). For those reasons, the Select Committee has not endorsed this solution. However, it has been noted that the existence of an overnight curfew at San Jose International Airport might accommodate a new procedure using the FAITH waypoint as a potential solution in the overnight hours. The FAA may, therefore, wish to examine whether this proposed solution, or a variation thereof (e.g., at night), could be effectively implemented without shifting noise. Adopted by the Select Committee. (Vote: __11__ Aye, __1__ Nay, __0__ Absent or Abstain) 2.15 Fan-in Overseas Arrivals (OCEANIC) into SFO The OCEANIC arrival procedure into SFO comes in from the west from overseas locations, such as Asia, and Hawaii, with aircraft converging into a single path at the PIRAT waypoint which is off the coast. Once on a single path, the aircraft cross the San Francisco Peninsula at the Woodside VOR, a navigational beacon located in the Woodside area, and proceed to the final approach into SFO (See Appendix C, Page C4: Map of BDEGA, OCEANIC, SERFR, and DYAMD). It has been suggested that the arriving OCEANIC aircraft could instead be “fanned-in” into the area of the Woodside VOR, using that point and other new waypoints to achieve dispersion of the arriving aircraft. The FAA has advised the Committee that it lacks the technology, i.e., metering tools, to implement this proposed solution. The presence of Special Use Airspace (SUA) along the coastline at this location (which restricts civilian aircraft from using that airspace), further constrains the FAA. The FAA has advised the Committee that while this solution might be feasible, there are a very low number of OCEANIC flights (roughly 31 flights per day in June 2016) per day. In addition, the FAA has advised the Committee that this solution also potentially moves noise to other communities. For these reasons, the Select Committee has not endorsed this solution. Adopted by the Select Committee. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) 40 22 Report of the Select Committee on South Bay Arrivals 2.16 Herringbone Approach to SFO Arrivals It has been suggested that noise exposure along a specific corridor/flight path could be reduced if flights joined the path at various points, thus creating a “herringbone” or “trident” effect. The “herringbone” or “trident” is a multiple approach concept for dispersion of arrivals to reduce the number of overflights along a single path. Using this concept, Air Traffic Control would be instructed to distribute arriving aircraft to multiple transition locations along the arrival path, hence the “herringbone” or “trident” patterns. It has also been suggested that the herringbone approach could be applied to the SERFR arrival procedure, which approaches SFO from the south over the Santa Cruz Mountains. The FAA, however, has advised the Committee that it currently lacks the technology, i.e., metering tools, to implement this proposed solution. The congested San Francisco Bay Area airspace, with three major commercial airports in close proximity to each other, also potentially limits the applicability of this solution. Finally, the FAA has advised the Committee that a herringbone approach would likely result in an increase in vectoring. For these reasons, the Select Committee has not endorsed this solution. The FAA may, however, wish to examine whether this proposed solution, or a variation thereof, could be effectively implemented once the needed technological tools have been developed. Adopted by the Select Committee. (Vote: __11__ Aye, __1__ Nay, __0__ Absent or Abstain) 2.17 Return to Pre-NextGen Procedures, Altitudes, and Concentration A continuous thread to the public input received by the Committee was to simply return conditions, including aircraft procedures, altitudes, and concentration, to “how they were before NextGen.” While the Committee is sympathetic to this input, the FAA has repeatedly indicated that changes to the San Francisco Bay Area airspace pursuant to NextGen are not reversible. The FAA has repeatedly advised the Committee that the 2012 federal legislation reauthorizing the FAA required the FAA to adopt and use advanced technology to modernize the air transport system. For these reasons the Select Committee has not endorsed this proposed solution. However, the Select Committee recommends the implementation of a number of solutions to improve NextGen, as discussed throughout this Report. Adopted by the Select Committee. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) 41 23 Report of the Select Committee on South Bay Arrivals SECTION 3: LONGER-TERM ISSUES In the Select Committee’s deliberations several longer-term issues were identified that went beyond the timeframe of the Committee’s work plan. Each of these longer-term issues are of significance and the Committee recommends that resolution be pursued in as timely a manner as possible via appropriate channels. 3.1 Need for an Ongoing Venue to Address Aircraft Noise Mitigation In the San Francisco Bay Area airspace, noise-related concerns are not confined to a single commercial airport. The three major commercial airports (SFO, Oakland International-OAK, and San Jose International-SJC) that ring the San Francisco Bay (Bay) have a combined 136 arrival and departure procedures (i.e., paths). These arrival and departure procedures crisscross the Bay and impact the three county area represented by the members of Congress who established the Select Committee on South Bay Arrivals. This presents an obvious challenge to those affected by and/or attempting to mitigate aircraft noise. As an example, Santa Cruz Mountains’ residents affected by the SERFR arrival procedure from the south into SFO are also affected by the BRIXX arrival procedure from the north into SJC. The need for a permanent entity to address these multi-county impacts became readily apparent to the Committee in the course of its work. Recommendation 1: The Select Committee recommends that an Ad-Hoc Subcommittee consisting of two Members/Alternates from the Select Committee (or others yet to be named) from each County/Congressional District be convened by the three members of Congress who empaneled the Select Committee over the short-term to continue work on the issues identified in this Report, including the framework of the longer term entity referenced in Recommendation 2 immediately below. More specifically, the Ad-Hoc Subcommittee would consider: (1) the financial, administrative, and technical resources needed to support the permanent entity; (2) funding of the permanent entity; and (3) structure of the permanent entity. Among other tasks, the Ad-Hoc Subcommittee would also receive reports, if any, on the implementation of the Recommendations included in this Report. The Ad-Hoc Subcommittee would consult with the FAA, SFO, and local jurisdictions in developing a framework to support the permanent entity going forward and report to the Members of Congress with its recommendation within 120 days. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) Recommendation 2: The Select Committee strongly recommends that a permanent entity be established to address issues of aircraft noise in the three county area on an ongoing basis, and to provide a forum for community input. The Select Committee’s schedule did not permit time to develop a recommended governance structure. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) 42 24 Report of the Select Committee on South Bay Arrivals 3.2 Restricted/Special Use Airspace Special Use Airspace (SUA) are areas designated for operations that require restrictions on aircraft not participating in those operations. These operations are often of a military nature. In the San Francisco Bay Area, there are SUA restrictions (military) along much of the Pacific coastline that constrain the FAA’s flexibility to expand or restructure the use of civilian airspace. Recommendation: While the Select Committee is not questioning the need for or importance of Special Use Airspace (SUA) in our region, the Committee recommends that the FAA review the SUA in our area with an eye towards better balancing special use restrictions and civilian aviation needs, particularly in the congested San Francisco Bay Area airspace. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) 3.3 Noise Measurement Following the March 2015 changes to the San Francisco Bay Area airspace that implemented NextGen performance based navigation technology and new flight procedures/paths, it became readily apparent to the Committee that the FAA’s established noise measurement metrics are inadequate. They do not represent what is being experienced by people on the ground. The existing metrics do not adequately identify or acknowledge ground level noise exposure, even when noise at the reported levels is enough to be noticeable and disturbing to the public. The shortcoming exists in large measure because the cumulative noise level (over a 24-hour period) is not high enough to technically constitute a “significant impact.” More specifically, the use of a Day-Night Average Sound Level (DNL) alone is ill-suited to assess ground level impacts, particularly from the standpoint of amplitude, duration, time of occurrence, and repetitiveness (concentration of flight paths). In addition, noise analysis at a community level (i.e., over a relatively broad swath) results in a blending of noise that does not reflect more localized impacts. Measuring noise more locally and precisely (e.g., at the census block level) would avoid this “blending” and diluting of noise exposure. The Committee also notes that, on the national level, numerous studies of alternative noise metrics highlight the deficiencies of DNL. Further, the FAA’s metrics rely on A-Weighting to measure sound pressure levels (e.g., the way the ear hears), commonly expressed in dBA. A-Weighting was originally intended only for the measurement of low-level sounds. Yet it is now commonly used for the measurement of environmental and industrial noise, including aircraft noise, as well as when assessing potential hearing damage and other noise health effects at all sound levels. However, because A-Weighting is applicable to only low levels, it tends to devalue the effects of low frequency noise in particular. Other frequency weighting, such as “C-” and “Z-” Weightings are available. Use of these frequency weightings yields measurements of all noise, instead of only a small fraction of it. 43 25 Report of the Select Committee on South Bay Arrivals The Committee strongly supports the efforts of the congressional Quiet Skies Caucus to require the FAA to lower the acceptable DNL threshold from the current level of 65, and to use supplemental metrics that characterize the true impact of airline noise experienced by people on the ground; and further encourages broader congressional consideration of these efforts. Recommendation 1: The Select Committee recommends that the U.S. Congress require the FAA to adopt supplemental metrics for aircraft noise that characterize the true impact experienced by people on the ground. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) 3.4 Capacity Limitations The Select Committee understands that the growth in air traffic for the Bay Area is projected to increase by approximately 2 percent per annum. While overall capacity limitations have not been reached at San Francisco International Airport, the availability of additional daytime flight capacity is limited, and it is anticipated that future traffic growth can only be accommodated during nighttime hours. The impact of additional flights during overnight hours is significantly greater to those on the ground, and requires stricter nighttime regulations to avoid sleep interference, as discussed further in Item 2.4 in this Report (Overnight Flights). Longer term, increased traffic levels may necessitate implementation of capacity limitations, such as longer in-trail spacing between aircraft or assigned gate slots. Recommendation: The Select Committee believes these capacity issues should be considered by any successor committee, as recommended in Item 3.1, Recommendations 1 and 2, in this Report (Need for an Ongoing Venue to Address Aircraft Noise Mitigation). (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) 3.5 Aircraft Speed The issue of aircraft speed and its impact on noise arose late in the Select Committee’s deliberations. Recommendation: The Select Committee believes the issue of aircraft speed and its impact on noise should be considered by any successor committee, as recommended in Item 3.1, Recommendations 1 and 2, in this Report (Need for an Ongoing Venue to Address Aircraft Noise Mitigation). (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) 44 26 Report of the Select Committee on South Bay Arrivals SECTION 4: PROCESS ISSUES In its deliberations, the Select Committee identified three process issues of note that warrant further consideration and follow-up. 4.1 Who Makes Recommendations to Whom In the face of widespread concern about aircraft noise over portions of three counties, the Select Committee was empaneled to provide recommendations to Members of Congress on appropriate measures to eliminate or mitigate noise where practicable. The Committee members understood and accepted that assignment, and this Report represents the Committee’s best effort to offer such recommendations. That being said, the mitigation of aircraft noise is a highly technical matter. The Committee was wholly comprised of (elected) lay people. Charging a group of elected lay people with the responsibility for making recommendations in this area seems less than ideal, particularly when the FAA has the requisite expertise and responsibility to manage aircraft traffic in the public interest. Simply put, notwithstanding the FAA’s good faith effort to provide technical expertise to the Committee, the Committee’s view is that the process is fundamentally backwards – the FAA should be going to Members of Congress and their affected constituencies with proposals for review and comment, not the other way around. Recommendation: Should a similar process be employed here or elsewhere in the country in the future, the Select Committee recommends that, to the greatest degree possible, the FAA be charged with the responsibility for identifying and proposing solutions to mitigate noise concerns, and that community groups and elected officials be consulted for review and comment, and to offer additional suggestions. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) 4.2 Need for Before/After Noise Monitoring The lack of aircraft noise monitoring prior to the implementation of NextGen hampered the Committee’s (and the public’s) ability to measure and document the actual impacts of the changes that were implemented in March 2015. Looking ahead, the Committee is concerned that if the FAA fails to perform “before and after” noise measurements related to the implementation of Recommendations contained in this Report, there will likewise be an inability to measure, analyze and verify, and document the desired improvements. Accordingly, the Select Committee offers the following Recommendation. Recommendation 1: The Select Committee recommends that the FAA and/or SFO monitor and document noise exposure of any feasible solutions before and after FAA 45 27 Report of the Select Committee on South Bay Arrivals implementation to ensure impacts are verified, and to determine whether results are of a discernible benefit. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) Recommendation 2: The Committee recommends the implementation of a set of regional noise monitoring stations that will adequately monitor aircraft noise levels at carefully selected points in the San Francisco Bay Area and the three Congressional Districts represented on the Select Committee. Collected data shall be made available to citizens upon request. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) 4.3 Ensuring Compliance The Committee received significant comment from both the public, and the elected official members of the Committee, about prior understandings, directives, or agreements, including those regarding altitude restrictions, not being adhered to. Such comments suggest the need for compliance monitoring with respect to previously agreed to efforts, and with respect to newly identified noise mitigation efforts. Recommendation: The Select Committee recommends careful documentation and ongoing compliance monitoring for any set of solutions accepted and implemented by the FAA. The Committee recommends that the Members of Congress ensure that the FAA takes the appropriate steps to measure and guarantee ongoing compliance. (Vote: __12__ Aye, __0__ Nay, __0__ Absent or Abstain) 46 A1 Report of the Select Committee on South Bay Arrivals APPENDIX A: Vote Record Re c o m m e n d a t i o n Si m i t i a n , C h a i r Le o p o l d , V i c e Ch a i r Pi n e , V i c e C h a i r Ad d i e g o Be r n a l d Bo t t o r f f Hi n d i La n e Mc P h e r s o n Mo o d y Wa l d e c k We n g e r t To t a l UP Y Y Y Y Y N Y Y Y Y Y Y 11-1-0 1.1 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 1.2 R1 N Y Y N Y Y Y N N Y Y Y 8-4-0 1.2 R2 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 1.2 R3 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 1.2 R4 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 1.3 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 1.4 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 1.5 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 1.6 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 2.1 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 2.2 R1 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 2.2 R2 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 2.3 R1 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 2.3 R2 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 2.3 R3 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 2.4 R1 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 2.4 R2 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 2.4 R3 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 2.5 R1 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 2.5 R2 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 2.5 R3 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 2.5 R4 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 2.5 R5 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 2.6 R1 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 2.6 R2 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 2.7 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 2.8 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 2.9 R1 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 2.9 R2 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 2.10 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 2.11 Y Y Y Y Y Y Y -- Y Y -- Y 10-0-2 2.12 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 47 A2 Report of the Select Committee on South Bay Arrivals Re c o m m e n d a t i o n Si m i t i a n , C h a i r Le o p o l d , V i c e Ch a i r Pi n e , V i c e C h a i r Ad d i e g o Be r n a l d Bo t t o r f f Hi n d i La n e Mc P h e r s o n Mo o d y Wa l d e c k We n g e r t To t a l 2.13 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 2.14 Y Y Y Y N Y Y Y Y Y Y Y 11-1-0 2.15 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 2.16 Y Y Y Y N Y Y Y Y Y Y Y 11-1-0 2.17 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 3.1 R1 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 3.1 R2 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 3.2 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 3.3 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 3.4 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 3.5 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 4.1 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 4.2 R1 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 4.2 R2 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 4.3 Y Y Y Y Y Y Y Y Y Y Y Y 12-0-0 48 B1 Report of the Select Committee on South Bay Arrivals APPENDIX B: Map of Key Waypoints 49 C1 Report of the Select Committee on South Bay Arrivals APPENDIX C: Maps of Selected Flight Paths: BSR and SERFR 50 C2 Report of the Select Committee on South Bay Arrivals APPENDIX C: Maps of Selected Flight Paths: NIITE 51 C3 Report of the Select Committee on South Bay Arrivals APPENDIX C: Maps of Selected Flight Paths: CNDEL 52 C4 Report of the Select Committee on South Bay Arrivals APPENDIX C: Maps of Selected Flight Paths: BDEGA, OCEANIC, SERFR, and DYAMD 53 C5 Report of the Select Committee on South Bay Arrivals APPENDIX C: Maps of Selected Flight Paths: BRIXX 54 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2103 Name: Status:Type:Study Session Agenda Ready File created:In control:10/17/2016 City Council On agenda:Final action:12/6/2016 Title:Subject: Study Session on Wireless Facilities within the Public Right of Way Sponsors: Indexes: Code sections: Attachments:Staff Report A - “Bridging the Gap – 21st Century Wireless Telecommunications Handbook” Action ByDate Action ResultVer. City Council12/6/20161 Subject: Study Session on Wireless Facilities within the Public Right of Way RecommendthattheCityCouncilconductastudysessionandprovidedirectiononthe proposed use of public street light poles to mount small cellular facilities CITY OF CUPERTINO Printed on 11/29/2016Page 1 of 1 powered by Legistar™55 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: December 6, 2016 Subject Study Session on Wireless Facilities within the Public Right of Way. Recommended Action Recommend that the City Council conduct a study session and provide direction on the proposed use of public street light poles to mount small cellular facilities. Discussion The Public Works Department has been approached by three separate companies interested in utilizing City infrastructure, most notably City street lights, to mount small cellular facilities which would improve cellular service within the City. The three companies who have approached the City are Verizon, Mobilitie and Crown Castle. The City understands that AT&T is anticipating to apply for facilities in early 2017. This City has been negotiating with Verizon for several months, but has not yet reached mutually agreeable terms regarding lease rates and other points. Both Mobilitie and Crown Castle have recently initiated the negotiation process. On November 2, 2016, the Cupertino Technology, Information and Communications Commission (TICC) was presented information on small cellular facilities. TICC Commissioners expressed interest in having small cellular facilities to enhance the existing cellular network within the City, and provided various recommendations regarding a master license agreement between the City and potential Licensees. These recommendations were either already incorporated into the draft master agreement, or were added based on their recommendations. The TICC wanted to ensure that any build-outs are managed so as to accommodate as many different carriers as possible, which may result in co-location of facilities and/or City management of facility spacing. Additionally, there was discussion of what potential options there may be to have the City build out the infrastructure for this network, and have carriers rent facilities from the City. 56 Currently, the City proposes to manage these small cellular facilities through a negotiated master license agreement which would be approved and accepted by the City Council prior to implementation, and the City would issue a separate encroachment permit and a site license agreement for each proposed small cellular facility location. The City anticipates requiring the licensee to notify nearby residents prior to issuance of the permit in order to field any questions, and to inform residents of the build out and services available to them, including possible options to have the service provider test for electromagnetic emissions in their home, if desired. Public Works will coordinate with the Community Development, as well as with the Licensees, to establish guidelines for screening the small cellular facilities to ensure visual aspects of the facilities are acceptable. _____________________________________ Prepared by: Chad Mosley, Senior Engineer Reviewed by: Timm Borden, Director of Public Works Approved for Submission by: David Brandt, City Manager Attachments: A- “Bridging the Gap – 21st Century Wireless Telecommunications Handbook” 57 SILICON VALLEY Bridging the Gap 21st Century Wireless Telecommunications Handbook SEPTEMBER 2016 58 This report was prepared by David Witkowski, Executive Director, Wireless Communications Initiative at Joint Venture Silicon Valley. Jill Jennings created the report’s layout and design; Duffy Jennings served as copy editor. Joint Venture would like to thank the following people for their contributions and support of this project: • William J. McShane II, Connected City Experience, Philips Lighting • Joe Madden, Mobile Experts LLC • Randall Schwabacher, AT&T • Omar Masry AICP, City & County of San Francisco • Chetan Sharma Consulting JOINT VENTURE SILICON VALLEY Established in 1993, Joint Venture Silicon Valley brings together established and emerging leaders—from business, government, academia, labor and the broader community—to spotlight issues, launch projects, and work toward innovative solutions. For more information, visit www.jointventure.org For more information or to contact the Wireless Communications Initiative go to www.jointventure.org/wireless. AUTHOR CONTACT INFO David Witkowski Executive Director, Wireless Communications Initiative wireless@jointventure.org (408) 298-9333 Acknowledgments 2 Bridging the Gap: 21st Century Wireless Telecommunications Handbook 59 Introduction 4 Factors Driving Change 7 Societal Value of Wireless Broadband 10 Mobile Network Densification 12 Wireless Telecom Legislation 19 Wireless Telecom Roadmap – What Does The Future Hold? 24 Recommendations for Municipal Governments 27 Recommendations for Carriers, Operators, and Utilities 30 Takeaways for Municipal Leaders 31 Glossary of Terms 32 Works Cited 34 Table of Contents 3Bridging the Gap: 21st Century Wireless Telecommunications Handbook60 Introduction Wireless technologies offer an exciting opportunity to connect people, solve problems in our cities, and make our lives better. This briefing was written primarily for municipal employees, public officials, and civic leaders to help guide their understanding of these technologies. This document will cover much ground. We’ll look at what’s driving the need for wireless data, the societal value of wireless data networks, the technologies that are being deployed to build those networks, and the regulatory environment for wireless facilities that govern how carriers and local governments must interact. We’ll close with an overview of some new technologies that will likely be deployed in years to come, and some forward-looking recommendations for both local governments and wireless carriers. Wireless networks have come a long way since the first portable cellular call was made on the streets of New York City in 1973. In 1997, at a wireless conference hosted by Stanford University, a telecom executive famously declared, “voice is the killer app” and for a time this was gospel truth – until the Blackberry with its mobile email and rudimentary mobile browser became the must-have tool for businesspeople and then consumers. In 2010 sales of smartphones with Apple’s iOS or Google’s Android OS exploded, and the Blackberry went from a must- have gadget to e-waste in less than a year. Data was in fact “the killer app” as consumers switched their communication method from voice to texting and rich media. Figure 1: Smartphone Sales by Year Source: Wikipedia, Gartner, IDC, Kantar Worldpanel Just over a decade after the economy was rocked by the collapse of the Dot-Com Boom, Silicon Valley has reinvented itself as the center of the Mobile Economy and the Sharing Economy. Every company from the “Four Horsemen” (Google, Apple, Amazon, and Facebook) down to the smallest seed-funded startup “Just over a decade after the economy was rocked by the collapse of the Dot-Com Boom, Silicon Valley has reinvented itself as the center of the Mobile Economy and the Sharing Economy.” 4 Bridging the Gap: 21st Century Wireless Telecommunications Handbook 61 has built its strategy around smartphone apps, cloud computing, and mobile networks – creating enormous demand for fast ubiquitous wireless coverage. A running joke in venture capital during 2016 is that an investment pitch deck must contain the phrase “Our vision is to be the Uber of…” to be fundable, and given the number of startups which are providing cloud-connected smartphone apps this may be somewhat true. Sharing Economy companies like Uber rely on wireless networks to request rides, locate passengers, provide safety by confirming identities, track vehicle movement for insurance purposes, and for completing payment and driver/passenger reviews in real time. Without a reliable and robust wireless network, Uber and hundreds of other new Mobile Economy companies could not exist. Mobile network operators, faced with skyrocketing demand that presented both an enormous opportunity and a seemingly impossible technical challenge, began shifting their deployment strategies away from voice telephony to mobile data for smartphones. Network operators have attempted to meet both consumer demands and regulatory requirements in a rapidly changing technology and economic landscape. The wireless networks of the 21st century’s first decade were designed to carry voice and small amounts of data, not to provide broadband data at speeds that rival or exceed wired broadband rates. Mobile is a competitive business, and subscribers unhappy with their carrier’s network performance can easily switch their phone number and service to another provider – the industry term for this is churn. Carriers are so desperate to win customers that they’ll offer hundreds of dollars to cover early termination fees and free phones worth hundreds of dollars – just to get subscribers to sign a 12 month contract. Figure 2: Global Mobile Data Usage (per month) Source: Mobile Experts LLC “The wireless networks of the 21st century’s first decade were designed to carry voice and small amounts of data, not to provide broadband data at speeds that rival or exceed wired broadband rates.” 5Bridging the Gap: 21st Century Wireless Telecommunications Handbook62 To build a wireless network, spectrum must first be leased in a highly competitive auction conducted by the Federal Communications Commission – and this cost is not trivial. Wireless spectrum purchased during the spectrum auction known as “AWS-3” cost the bid winners over $44 billion, paid up front to the U.S. Government, and that was a relatively small auction – just one of many over the past three decades. (FCC AWS-3 Auction Results, 2015) Having paid for spectrum, the carriers then have to invest in wireless facility siting studies, pre- application meetings, permit applications, and engineering designs/redesigns. The equipment, personnel, and tools to install wireless networks are all funded up front. It takes years of monthly subscriber revenue before the carriers can realize a profit on these capital and operational expenses. Every time a call is dropped or a data connection is too slow, the wireless carrier risks losing a customer to churn. If an area often experiences dropped calls or slow data, a carrier will want to fix that problem – and that means upgraded equipment or new sites, which must be permitted by local governments. And that interaction hasn’t always been positive. Given the urgency placed on carriers to enhance networks, reduce churn, and meet users’ demand for faster data it was probably inevitable that conflicts between carriers, operators, and local governments would arise. Carriers and operators feel that some local governments have treated applications for wireless facilities with either disdain or outright hostility, and that application processes are often unclear or arbitrary, and subject to repeated demands for eleventh-hour revisions. Local governments feel that some carriers and utilities have been dishonest in their applications, built systems that don’t match the application’s plans and rendered drawings, or failed to heed requests for integration with local design and architecture standards. Each side has their horror stories, and certainly each side has made mistakes. Our shared goal should be to move beyond those mistakes and go forward together in partnership between industry and local governments, to create world-class wireless networks that will support current needs and pave the way for future innovation. Fast and ubiquitous wireless networks are critical resources for our country’s citizens, and failing to provide them is no different than failing to provide clean drinking water, natural gas, sewage service, or electricity. Yet we must also respect the need for minimalist, quiet, and aesthetically-pleasing infrastructure. “Fast and ubiquitous wireless networks are critical resources for our country’s citizens.” 6 Bridging the Gap: 21st Century Wireless Telecommunications Handbook 63 Factors Driving Change User Demand for Mobile Data By any measure, the demand for mobile data is enormous and not likely to slow down. Ericsson’s 2016 Mobility Report estimates the consumption of data on mobile devices (smartphones, tablets, and mobile-enabled PCs) in North America was 1.3 Exabytes (1 Exabyte equals 1 billion Gigabytes) per month in 2015, and forecasts this will increase to 9.1 EB per month by 2021. Smartphones will drive the majority of that usage, increasing by 7x today’s consumption. In 2015, the average smartphone in North America consumed 3.7 GB of data per month, and this will increase to 22 GB per month by 2021. (Ericsson AB, 2016) These usage rates are driven heavily by the Mobile Economy – a fundamental shift in user behavior in communication and commerce from PCs connected by wired internet to smartphones and tablets connected by mobile networks. In 2014 the Mobile Economy ecosystem contributed 3.5% of the economy in North America, at a value of $670 billion. This is projected to increase to $750 billion by 2020. (GSM Association, 2015) Figure 3: Economic contribution of mobile ecosystem to North American economy Source: GSMA Intelligence Users Want More for Less While the number of users and the amount of mobile data they consume has gone up, market forces have driven down the average revenue per user. According to the Cellular Telephone Industry Association’s 2015 Annual Survey, in 1993 the average revenue per user was $76.55, but in 2015 it was only $44.65. (CTIA, 2015) Free-market competition between carriers has been very successful in making wireless networks more affordable for more citizens, but it places enormous downward revenue pressure on the carriers. Spectrum Scarcity Spectrum is the term for the range of electromagnetic frequencies which are used to provide wireless services. Spectrum is like land – there’s only so much of it. Every bit and byte of information we consume over a mobile network requires “In 2014 the Mobile Economy ecosystem contributed 3.5% of the economy in North America, at a value of $670 billion. This is projected to increase to $750 billion by 2020.” 7Bridging the Gap: 21st Century Wireless Telecommunications Handbook64 a certain amount of spectrum to make the connection. As of 2016 the amount of spectrum allocated to LTE use for wireless broadband data in the USA is over 2 GHz, which is barely enough to support our current mobile data usage. Like constructing a high-rise building to make efficient use of land, we can make our use of spectrum more efficient – but this approach has limits. One approach to improving spectrum efficiency is densification – reusing the spectrum from large macro towers that cover many square miles in systems that cover a few city blocks, the inside of a building, or even a single room. Known collectively as Heterogeneous Networks or HetNets these don’t replace the large macro towers, but are supplemental to them – focusing scarce spectrum resources into areas where people tend to use the most data. There are two types of spectrum; licensed and unlicensed. Licensed spectrum is leased by regulatory authorities (such as the FCC) to users, who then use the spectrum for various purposes. In most cases, the commercial lease holders of licensed spectrum must pay the government for an exclusive right to use that spectrum, the spectrum must be used to provide a “public good” such as wireless data networks, and the lease holders have legal standing to file a complaint against anyone who interferes with those systems. Unlicensed spectrum is the other type of spectrum – it’s provided at no charge to the general public for use in consumer devices and conveniences such as garage door openers, cordless phones, and Wi-Fi networks in homes and businesses. The general public doesn’t need a license to use this spectrum, but they also have no standing to pursue claims or file complaints about interference. Smart Cities and the Internet of Things Along with the rise in mobile subscribers and data usage, machines and autonomous devices are increasingly connected to the network. This so-called Internet of Things or “IoT ” is predicted by the Ericsson Mobility Report to reach 15.7 billion devices in 2021. While not a firm definition, IoT typically refers to connected cars, sensors (including cameras), displays and actuators, utility metering and control, industrial systems, and consumer electronics. Systems that use IoT technology often form the basis of municipal Smart City systems for transportation, resource management, public safety, and other civic applications. IHS Markit Technology forecasts the installed base will grow to 69.5 billion units in 2025 and device shipments will grow to 18.1 billion units in 2025. (IHS Markit, 2016) “One approach to improving spectrum efficiency is densification – reusing the spectrum from large macro towers that cover many square miles in systems that cover a few city blocks, the inside of a building, or even a single room.” 8 Bridging the Gap: 21st Century Wireless Telecommunications Handbook 65 Figure 4: IoT Devices - Installed Base & Device Shipments Source: IHS Markit Technology, Internet of Things Devices & Connectivity Intelligence Service, 2Q 2016 2G / 3G / 4G / 5G In the early days of digital cellular telephony, the definition of a wireless system’s “generation” was not standard and was used primarily as a marketing device. As the first analog cellular systems gave way to new digital cellular, the newcomer was called Second Generation or 2G. The UN’s International Telecommunications Union (ITU) began seeking international agreement on, and publishing recommendations for, standardized definitions that next- generation systems would have to meet. The Third Generation or 3G family of standards was known as IMT-2000. (International Telecommunications Union, 2011) The ITU defined recommendations for the 4G family standards as IMT- Advanced which was standardized as “Long Term Evolution” or LTE, and the 5G family of standards will be known as IMT-2020. (ITU, 2016) The Long Road to 5G Much has been written about 5G, the next evolution of mobile broadband. Targeted by the ITU for final publication in 2020, 5G will contain many features that support high-speed data, increased spectrum efficiency, and support the Internet of Things. 5G deployments will be driven by carriers and network operators, and will require significant up-front investments from them. Meanwhile LTE continues to evolve, with new features added every year. In the past, technologies like 4G have taken several years to reach dominance – in fact, most analyst forecasts show that 4G subscriptions won’t exceed combined 2G + 3G subscriptions until 2021. By 2021 there will be about 150 “In the past, technologies like 4G have taken several years to reach dominance – in fact, most analyst forecasts show that 4G subscriptions won’t exceed combined 2G + 3G subscriptions until 2021.” 9Bridging the Gap: 21st Century Wireless Telecommunications Handbook66 million 5G subscriptions – a small number relative to the massive number of 4G subscriptions. (Ericsson AB, 2016) Figure 5: Mobile Technology Lifecycles (North America) Source: Chetan Sharma Consulting Societal Value of Wireless Broadband Wireless Voice and Broadband are Not Luxuries Consumers are increasingly giving up wired telephones and even wired broadband in favor of mobile networks. This is especially true of younger people but also in economically disadvantaged communities. The reason is simple – given a limited household budget, the convenience of a mobile device both at home and away from home outweighs the inconvenience of lower data rates and possible dropped calls. Increased Demand for Wireless Connectivity Twice a year the U.S. Department of Health and Human Services publishes the Wireless Substitution Report via the Centers for Disease Control, based on data from the National Health Interview Survey. These reports have consistently shown an increase in the rate at which people are giving up wired phones for wireless. Estimated results from the May – December 2015 survey show that nearly one-half of all households nationally (48.3%) did not have a landline phone but did have at least one wireless phone. Looking nationwide approximately 47.7% of all adults lived in households with only wireless phones, and 57.7% of all children lived in households with only wireless phones. These numbers are notably higher for the western U.S. region (including California) “Consumers are increasingly giving up wired telephones and even wired broadband in favor of mobile networks. This is especially true of younger people but also in economically disadvantaged communities.” 10 Bridging the Gap: 21st Century Wireless Telecommunications Handbook 67 where wireless-only rates exceed 51%. The results from other demographics are striking. Almost 3 in 4 adults (72.6%) under the age of 29 did not have wired phones. 68.8% of renters were wireless only, as were 78.8% of adults living with roommates. 60.5% of Hispanic families and 64.3% of families below the poverty line did not have wired phones. (Centers for Disease Control, 2016) This trend towards wireless-only connectivity is likely to continue for many years to come. Figure 6 : Percentages of adults and children living in households with only wireless telephone service: United States, 2003-2015 Note: Adultes are aged 18 and over; children are under age 18. Source: NCHS, National Health Interview Survey Wireless Broadband is a Primary Internet Access Tool Giulia McHenry, Chief Economist, Office of Policy Analysis and Development for the U.S. Department of Commerce, published a blog article which showed that American households are rapidly shifting their broadband connectivity from wired (cable, DSL, etc.) to wireless. (McHenry, 2016) The article’s source data comes from the U.S. Census Bureau’s “Computer and Internet Use Supplement” to the Current Population Survey (CPS), which includes data collected for the NTIA in July 2015 from nearly 53,000 U.S. households. The results of this survey are striking – Households with annual incomes below $25,000 are 29% likely to be accessing the internet via only mobile broadband, and households between $25,000 and $49,999 annual income are 24% likely to be mobile-only. Survey data from The Field Poll in 2016 found that 14% of California residents connect to the internet only through a smartphone. For households earning less than $22,000 per year, the rate is 25%. (CETF, 2016) “Households with annual incomes below $25,000 are 29% likely to be accessing the internet via only mobile broadband.” 11Bridging the Gap: 21st Century Wireless Telecommunications Handbook68 Broadband Access Reduces Unemployment In March 2016, the White House’s Council of Economic Advisers issued a briefing which showed that access to the internet reduced the duration of unemployment periods. In households with access, the likelihood someone would be employed again within 12 months was almost 50%. In households without access, the rate was only just above 30%. (White House Council of Economic Advisors, 2016) This should be no surprise – job posting and job application are increasingly done online and via email. Lower income earners are often employed in temporary positions – and with increasingly more lower-income workers employed in Sharing Economy and Gig Economy jobs the timeliness of their response to openings is critical. A slow mobile data connection can prevent a ride-share service driver from claiming a passenger. A missed email or phone call means a temporary worker doesn’t learn about an opportunity to get work, and the job goes to someone else. Given what we know from McHenry’s NTIA article, it becomes clear that failure to provide a robust mobile broadband network has a direct and asymmetrical impact on our nation’s most vulnerable citizens. Unconnected Cities It’s easy to think the problem of unconnected citizens only exists in third world countries or remote towns in the mountains, but this is incorrect. Research published in 2016 shows that over 25% of residents in major U.S. cities such as Los Angeles and New York don’t have readily available access to the internet. (Maravedis & Wi-Fi 360, 2016) Mobile Network Densification Densification and Heterogeneous Networks Densification is the term for adding equipment to augment existing mobile networks and provide additional capacity in areas of high usage. Densification technologies include Distributed Antenna Systems (DAS) and Small Cells. Because these are different from large macro towers but operate in cooperation with them, a densified network is sometimes called a Heterogeneous Network or HetNet. “Research published in 2016 shows that over 25% of residents in major U.S. cities such as Los Angeles and New York don’t have readily available access to the internet.” 12 Bridging the Gap: 21st Century Wireless Telecommunications Handbook 69 Figure 7: Small Cell and DAS Sites Add Capacity to Existing Networks Source: Joint Venture Silicon Valley Why are HetNets Important? Usage of mobile data occurs where humans congregate, and 80% of mobile data is consumed while the user is relatively fixed in location. Draw a box on a map, highlight the areas where 90% of the data is used, and 95% of the map will be dark – we don’t typically consume large amounts of data while standing in the middle of an empty field. We use data in our homes, workplaces, vehicles, restaurants, shopping malls, and sports venues. Of course, when people congregate in areas and use data all at once the amount of data available is averaged over the users – resulting in slow connections and poor performance. HetNet technologies allow network designers to concentrate resources and serve high demand areas with dense populations. Of course, usage in any given area can vary by day of the week, time of day, or the season. A beachside tourist area needs lots of capacity on weekends during summer, a bit less during summer weekdays, and almost no capacity during the middle of a week in the dead of winter. HetNet Ordinances and Codes Some ordinances written during the early days of cellular telephony don’t differentiate between the smallest wireless facility attached to a utility pole and a 70-foot-tall macro tower – and this is a mistake. HetNet systems are very different than large macro tower systems, and should be covered under separate ordinances and codes that account for those differences. “Usage of mobile data occurs where humans congregate, and 80% of mobile data is consumed while the user is relatively fixed in location.” 13Bridging the Gap: 21st Century Wireless Telecommunications Handbook70 Municipal ordinances and codes sometimes encourage co-location (the term for wireless facilities from multiple network operators that are attached to the same physical structure) by requiring minimum separation distances between wireless systems. In the early days of cellular telephony this separation might have made sense, but HetNets can be located closer together without creating safety, interference, or performance issues. Sometimes these outdated separation ordinances force network operators to locate HetNet facilities in undesirable locations, which is neither ideal for optimizing network performance nor a good investment for the network operator. Municipal governments should revise separation ordinances to allow closer placement of HetNet facilities to adjacent sites. Distributed Antenna Systems Distributed Antenna Systems or DAS systems are created when multiple antenna nodes are attached via coax cable or fiber to centralized radio equipment – hence the term “distributed.” Connection of the radio equipment to the core network is typically done via fiber optics. DAS systems are most often used indoors to provide robust coverage inside convention centers, large buildings, and shopping centers. There are also outdoor DAS (o-DAS) networks – typically along driving routes where the terrain is difficult to cover with macro towers, and in parks and sports stadiums. The benefit of DAS is that the antennas are typically small and simple to install. The downside of DAS is that the signal levels from each antenna need to be balanced and adjusted to ensure uniform coverage and avoid gaps. Small Cells The definition of what constitutes a Small Cell is not yet standardized. This creates a challenge for municipal governments when they try to create telecom ordinances and do planning to manage applications for wireless facilities that fall under federal and state laws. One common definition is that a Small Cell is a self-contained wireless access node. There are several types of Small Cell technologies: • Femtocells that cover a single room • Picocells that cover several rooms • Microcells that cover buildings and large areas • Metrocells which are typically used in outdoor environments to cover community areas parks or residences over a few square blocks “The definition of what constitutes a Small Cell is not yet standardized... One common definition is that a Small Cell is a self- contained wireless access node.” 14 Bridging the Gap: 21st Century Wireless Telecommunications Handbook 71 Small Cells are used in HetNets to provide densification so another common definition of a Small Cell is based on the signal coverage area, described by the Small Cell Forum as “typically [having] a range from 10 meters to several hundred meters”. (Small Cell Forum, 2016) The benefit of Small Cells is that each acts as an independent node of a network, under control of the carrier’s monitoring and control system. The downside is that fiber and power must be run to each node, and because the equipment comprises both the radio and the antenna, the total volume needed to house each node is larger than DAS. The rate of deployment for Small Cells by carriers will grow exponentially over the next five years. Analysis by Mobile Experts LLC forecasts that carrier-owned Small Cell installs will reach nearly 1.5 million units per year worldwide by 2021. (Mobile Experts LLC, 2016) Will HetNets replace large macro towers? HetNets are intended to augment existing networks, not replace them. Although most typical mobile usage occurs in a small area, occasional use can occur anywhere and failure to provide wide area coverage creates a public safety issue. Large towers provide connection continuity as users move from one HetNet node to another, ensuring the smooth transfer of the voice or data connection between nodes. We still need the macro tower network to provide this wide area coverage, and the rise of Small Cells and DAS should not be seen as an opportunity to tear down large macro towers. Large towers are also used for other purposes such as public safety (police, fire, and medical) two-way radio, private microwave networks, and wireless internet service providers who provide a competitive alternative to wired broadband. Definition of Small Cells by RF Power Some industry definitions of Small Cells are based on Radio Frequency (RF) power output levels, which are smaller than those in large macro towers. Other definitions are based on the Small Cell’s Effective Radiated Power (ERP) or Effective Isotropic Radiated Power (EIRP), which are calculated after adding in antenna gain and subtracting system losses. The gain or loss of RF power in a system is rated in decibels – a logarithmic measurement of ratio, abbreviated “dB”. (This should not be confused with “Audio Decibels” a term used to measure the loudness of sounds.) Output power may be given in either Watts, or in units of dBm. Calculations of RF power, system losses, and antenna gain are complex. If you don’t have an electrical engineer with a wireless background on staff, it’s strongly recommend you hire or retain one as a consultant or contractor. “HetNets are intended to augment existing networks, not replace them...Large towers provide connection continuity as users move from one HetNet node to another.” 15Bridging the Gap: 21st Century Wireless Telecommunications Handbook72 Wireless Network Offload Even with HetNet technology for densification, the availability of RF spectrum is a key component in how much information can be passed over a wireless network. In 2008, the Cellular Telephone Industry Association (CTIA) told the Federal Communications Commission that mobile carriers would eventually need an additional 800 MHz of RF spectrum (on top of the aforementioned 2 GHz already in use by the industry) to keep up with projected demand. (CTIA Filing to FCC, 2009) Unfortunately, this amount of spectrum is simply not available, and the costs to acquire it would be very high. FCC is trying to shift some of the old television spectrum to the wireless carriers, and the estimated costs (as of July 2016) for reclaiming only 100 MHz of this TV spectrum is $86 billion. (FCC 600 MHz Auction, 2016) To deal with rising user demand and limited spectrum carriers have begun to look at other ways to increase capacity, using a technique called Offload. Offloading refers to the process where the mobile network instructs the user’s device to connect via equipment running in unlicensed spectrum under the carrier’s control. So for example, if a subscriber wants to watch a streaming video the network would serve that request by determining if an offload site is within range, and if so divert the user’s data connection to obtain the data via the offload network, leaving the carrier’s network free to handle other traffic. Figure 8: Mobile Network Offload Using Wi-Fi Source: President’s Council of Advisors on Science and Technology, June 2012 Wi-Fi Most of us know Wi-Fi as the technology we use in our homes and offices to connect devices wirelessly to a local area network. Wi-Fi is based on the IEEE 802.11 family of standards, and has evolved many times over since its first release in the early 1990s. At the technology level modern Wi-Fi shares many traits with mobile broadband standards such as LTE – the differences between “Even with HetNet technology for densification, the availability of RF spectrum is a key component in how much information can be passed over a wireless network.” 16 Bridging the Gap: 21st Century Wireless Telecommunications Handbook 73 them are that Wi-Fi was originally designed as a consumer technology to easily create local private networks, whereas LTE was designed as a network operator technology operating under centralized control to create wide-area commercial networks. Wi-Fi is great for attachment of nearby semi-stationary devices, but unlike LTE it does not work well when the device is moving quickly. This is because the Wi-Fi standard does not provide a mechanism to shift a device’s connection to another access point when the signal becomes weak, and the range of a Wi-Fi access point is in practice no more than 250 meters. This creates a condition known as “fail before fix” – a device will remain attached to a Wi-Fi access point until the signal is completely gone and only then will it begin looking for a better option. One can imagine how this would play out while driving down a street or highway – by the time a device attached itself to an access point, it would be out of range. In contrast, cellular telephony and data networks provide devices with a list of nearby sites, and when the signal from a nearby site grows strong enough the device requests a handoff to a nearby site. Historically one drawback of Wi-Fi has been that it didn’t allow roaming – the ability to use the Wi-Fi networks of other operators when you’re not in range of a network where you have an account. To use another network you have to connect manually, often with a password. Over time your smartphone’s list of Wi-Fi networks grows, and that list has to be managed manually. This is changing as Wi-Fi network operators deploy a technology called “Hotspot 2.0” or “NGH 2.0” that allows your phone to automatically attach to any NGH 2.0 hotspot that has an agreement with your operator. Not many smartphones are capable of supporting NGH 2.0, but this will change as new phones are released. Wi-Fi can be used as an offload technology under control of the carrier network, in a process called LTE - Wi-Fi Link Aggregation or LWA . LWA Wi-Fi nodes are typically co-located with the carrier equipment, usually built into the Small Cell housing. While initially a popular idea, the challenges of managing two parallel networks has greatly reduced the likelihood that LWA will become dominant, and network operators have been shifting focus away from LWA towards other techniques. LTE Unlicensed Mobile operators are strongly considering deployment of LTE Unlicensed or LTE-U, which is an offload technique that uses LTE signals in the unlicensed bands. LTE-U is attractive to network operators because it’s purely LTE; there are no auction costs to the operator, and no license application process for using unlicensed spectrum. Handoff and roaming are easily done, as they’re already part of the LTE standard. However because the spectrum is unlicensed the operators have no ownership rights, so if an LTE-U system experiences “Wi-Fi was originally designed as a consumer technology to easily create local private networks, whereas LTE was designed as a network operator technology operating under centralized control.” 17Bridging the Gap: 21st Century Wireless Telecommunications Handbook74 interference from another system the operators must work out their differences privately or resolve the problem through technical means. The question of whether LTE-U can politely co-exist and share unlicensed spectrum with Wi-Fi is still being considered – after extensive debate between the Wi-Fi and LTE-U vendors a coexistence test plan is due to publish in September 2016, and some early test results have been published, but comprehensive results will not be available for some time. Another offload technique uses Wi-Fi connections under control of the carrier network, in a process called LTE - Wi-Fi Link Aggregation or LWA . These Wi-Fi nodes are typically co-located with the carrier equipment, usually built into the Small Cell housing. In April 2015, the FCC created the Citizens Broadband Radio Service or CBRS, a 150 MHz allocation in the 3.5 GHz band intended for use by Small Cell equipment. Because the CBRS band overlaps with some existing satellite communication systems, the CBRS band defines three tiers of users: Incumbent Access (IA), Priority Access (PA), and General Access (GA). IA users are federal entities like the Department of Defense, arms of the military, etc. PA users will have to pay for preferential access to CBRS, and in return they’ll receive protection from GA users. GA users will be able to use CBRS for free – very much like the current unlicensed bands – but GA will have to stop transmitting if a PA user claims priority to the frequencies. In CBRS, the priority system is managed by a central licensing database, and this licensing system is still under development. To date, only IA and PA users have been authorized to use the band. In order to use CBRS spectrum, the user’s equipment must first be able to determine if other users have priority, which means that another data network must be accessible. It remains to be seen if GA use of CBRS will ever become a reality. In the long run, it’s expected that the CBRS band will be able to provide a large amount of RF bandwidth for carriers seeking to serve user demand, and that CBRS Small Cells will dominate by 2021. (Mobile Experts LLC, 2016) Figure 9: Federal Government Tiering Structure for 3.5 GHz Small Cell Band Source: Joint Venture Silicon Valley “Mobile operators are strongly considering deployment of LTE Unlicensed or LTE-U, which is an offload technique that uses LTE signals in the unlicensed bands.” 18 Bridging the Gap: 21st Century Wireless Telecommunications Handbook 75 Backhaul is Critical for Wireless Broadband Every node in a wireless network, from the smallest femtocell to the largest mountain-top macro tower, requires a connection to the carrier’s data network. For femtocells and picocells, this is typically done with Ethernet connection via an in-building network. For metrocells, microcells, and DAS deployments, fiber optic connections are used. If neither fiber nor Ethernet are available, wireless connections may be used. This connection of a wireless site facility to the operator’s core network is called backhaul. A common technology for backhaul is fiber optics. There are two kinds of fiber optic networks – lit fiber and dark fiber. If a section of fiber optic and the associated network hardware is owned by a company that then sells capacity on that system to more than one user or network operator, the fiber is said to be “lit.” If a section of fiber optic cabling is leased solely for one network operator, or is installed by a utility for later use by a customer, the fiber is said to be “dark.” In almost all cases, mobile network operators want dark fiber because this gives them control and allows them to ensure the highest levels of service quality. If dark fiber is not available then it needs to be installed – either via aerial runs along poles, into existing conduit, or via new conduit. Underground construction is time consuming, expensive, and potentially disruptive to existing underground systems – so installing conduit for future use during other construction projects is increasingly popular. The availability of dark fiber and conduit is a key enabler to making the transition to HetNets a reality. Network operators will typically take advantage of any dark fiber and conduit they can obtain. Conduit and fiber are relatively inexpensive to install when the work is done during other construction projects, and can be used for future municipal purposes such as business park build-outs, smart city networks, and providing broadband at home to citizens. Wireless backhaul is an emerging technology that can be used where aerial runs or conduits are not available. These systems use extremely high frequency channels (in the 60 – 70 GHz range) to pass large amounts of data. Due to limitations in how RF signals behave at these frequencies, designing and deploying a wireless backhaul network requires a level of engineering sophistication beyond that of fiber optics, and as such in most cases it remains a more complex solution that’s used only when fiber and conduit not available. Wireless Telecom Legislation Overview & Background Since the early days of cellular telephony the federal government has sought to encourage deployment of a robust nationwide wireless network. The federal government, recognizing the economic and social benefits of that network, “Every node in a wireless network, from the smallest femtocell to the largest mountaintop macro tower, requires a connection to the carrier’s data network.” 19Bridging the Gap: 21st Century Wireless Telecommunications Handbook76 enacted laws that attempt to facilitate and encourage deployment. In some cases states such as California have encapsulated the federal laws and extended them. Some may argue that these laws are beneficial – others may disagree. A full treatment of these laws and their application to real-world situations is beyond our scope, but this handbook provides an overview of the most consequential ones. Telecommunications Act of 1996 The Telecommunications Act of 1996 (the “1996 Act”) was the federal government’s first attempt to help create a foundation for the wireless communications revolution we’re now experiencing. The 1996 Act contained provisions concerning the placement of towers and other facilities for use in providing personal wireless services. Section 704 of the 1996 Act governs federal, state, and local government oversight for placement and construction of “personal wireless service” facilities. (FCC, 1996) “Personal wireless services” as defined in the 1996 Act included commercial mobile services, unlicensed wireless services, and common carrier wireless exchange access services. “Commercial mobile services” are defined in Section 332 of the Communications Act and the FCC’s rules, and include wireless telephone services regulated under Part 22 of the FCC’s rules, SMR services regulated under Part 90 of the FCC’s rules, and PCS regulated under Part 24 of the FCC’s rules. (FCC, 1996) The 1996 Act states that local governments may not take actions to discriminate against or outright prohibit (or have the effect of prohibiting) personal wireless service facilities, preempts any local government attempts to regulate on the environmental effects of RF emissions, and requires local governments to act “within a reasonable time” on requests to place, construct, or modify personal wireless service facilities. Section 332 – The FCC “Shot Clocks” The problem with the 1996 Act was that “reasonable time” was left to interpretation. A wireless carrier seeking to solve a critical coverage problem might consider approval within 30 days reasonable, while a local government greatly concerned with historical preservation or responding to a citizen opposition group’s concerns about the health effects of wireless technology might consider an application process lasting 5 years or longer to be reasonable. So in 2009 the FCC issued a Declaratory Ruling stating that 90 days is a presumptively reasonable timeframe for processing collocation applications (“collocation” defined as adding equipment to an existing wireless facility), and “The federal government, recognizing the economic and social benefits of that network, enacted laws that attempt to facilitate and encourage deployment.” 20 Bridging the Gap: 21st Century Wireless Telecommunications Handbook 77 150 days is reasonable for anything that is not a collocation application. These have become known as the “Shot Clocks” because, like in professional sports, they compel action within a certain period of time. It should be noted that the 90- or 150-day timeframes are based on calendar days, including weekends and holidays, from the date that an application is filed. The clock governing an application may be paused or “tolled” by mutual written consent of both the applicant and the local government, or if the local government notifies the applicant in writing (via a Notice of Incompleteness or “NOI”) that the application is incomplete. Section 332 imposes several requirements on local government if issuing a Notice of Incompleteness: • The NOI must specify the code provision, ordinance or publicly stated procedures that require the missing information to be submitted; • The NOI cannot impose new application requirements; • Supplemental NOIs issued against NOI responses must be based on the original NOI. Section 6409(a) of the Spectrum Act 2012 The Middle Class Tax Relief and Job Creation Act of 2012 made provisions in Title VI that expedite the availability of spectrum for commercial mobile broadband. The provisions in Title VI – also known as the Public Safety and Spectrum Act (the “Spectrum Act”) contained legislation known as Section 6409(a) that further clarifies how the local governments must respond to applications governed by the 1996 Act and the FCC’s Shot Clocks. Section 6409(a) also adds a requirement to approve minor modifications on existing “eligible facilities” within 60 days; however this applies only to an “eligible facilities request.” (Congressional Research Service, 2014) Section 6409(a) defines an “eligible facilities request” as any request to modify an existing cell tower or base station that involves collocating new transmission equipment; removing transmission equipment; or replacing transmission equipment. These modifications could include changes that increase the width or girth, but do not “substantially change” the height of a wireless facility, i.e., a tower or monopole. Section 6409(a) does several things in relation to the 1996 Act and the Shot Clocks. First, it says that the Shot Clock applies regardless of any local moratoria. Second, it says that the Shot Clock starts to run when an application is first submitted, not when it’s deemed complete. The clock is tolled only after the local government notifies the applicant within a specified time that the application is incomplete and that the notice of incomplete application must “specify the code provision, ordinance, application instruction, or otherwise publically stated procedures that require the information to be submitted.” Under Section 6409(a), a decision to deny a personal wireless service facility “The clock governing an application may be paused or “tolled” by mutual written consent of both the applicant and the local government, or if the local government notifies the applicant in writing.” 21Bridging the Gap: 21st Century Wireless Telecommunications Handbook78 application must be done in writing and the denial must be supported by substantial evidence in a written record. For many local governments, Section 6409(a) creates a key and critical issue because they have not created codes, ordinances, instructions, and procedures for managing modern wireless facility applications. This is especially true for DAS and Small Cell technology, which are fundamentally very different from applications for large macro towers that local governments have managed in the past. Smaller communities that have relied on wireless signals from adjacent towns or wireless facilities on private property will likely be faced with applications to install DAS and Small Cell facilities on utility poles or in the public right-of-way – and many are not ready to respond to these kinds of applications. Regardless of readiness, the Shot Clock will start running when these applications are submitted, and local governments should begin preparing now to respond to them by adopting ordinances and updating codes to cover the growing use of DAS and Small Cell facilities in the public right-of-way. California AB 57 For California’s local governments, there’s an additional twist to the Section 6409(a) and Shot Clock story. In October 2015, the state passed a law that further limits the ability of local governments to apply discretion in approval of wireless service facilities. Following the “Deemed Approved” approach of California’s Permit Streamlining Act, a wireless facility subject to Section 6409(a) that is an “eligible facility” and has not been justifiably denied is “deemed approved” if the applicable FCC Shot Clock timeframe runs out. (150 days for new installations, and 90 days for co-locations.) Unlike under the Permit Streamlining Act, AB 57 does not allow the Shot Clock to be paused due to delays in conducting a complex environmental review under the California Environmental Quality Act (CEQA). This means that local governments should be prepared for these applications well in advance, and be prepared to act on applications in a timely manner, or risk lawsuits for failing to respond under the law. It’s important to note that AB 57 has a few exception cases. It does not apply: • to actions by the California Coastal Commission or other state review agencies such as the San Francisco Bay Conservation and Development Commission; • to City/Town properties such as parks and city-managed campuses; • or to facilities at fire stations. Application Processes, Checklists, Codes and Ordinances When developing codes, ordinances, instructions, and procedures for handling wireless facility applications, local governments should be very specific about “This is especially true for DAS and Small Cell technology, which are fundamentally very different from applications for large macro towers that local governments have managed in the past.” 22 Bridging the Gap: 21st Century Wireless Telecommunications Handbook 79 what constitutes a “complete application” and be very clear about what must be contained in a complete application. These requirements should be backed up with ordinances, and supported by published instructions and procedures. Local governments should publish a wireless facility pre-application checklist, and publish a clear and comprehensive application process. CPUC Rulemaking 14-05-001 In October 2015, the California’s Public Utilities Commission issued a proposed decision on Rulemaking 14-05-001 for “Decision Regarding the Applicability of the Commission’s Right-Of-Way Rules to Commercial Mobile Radio Service Carriers” which sets rules for placement of wireless facilities equipment on utility poles, cabling and interconnections in ducts and conduits, and attachments in the public right-of-way. The decision amends the CPUC’s right-of-way rules to provide commercial mobile radio service (CMRS) carriers with nondiscriminatory access to public utility infrastructure, equal (with one exception) to the access afforded previously to CLEC and CATV providers. As of this writing, the decision has not been finalized. (CPUC 14-05-001, 2015) The likely outcome of this ruling (if published as proposed) will be additional requests to install Small Cell antennas on the tops of utility poles. Systems like this already exist, with equipment either on the pole or in a ground-level vault, and antennas mounted to the side or top of the pole. CPUC R-14-05-001 will provide a streamlined process for wireless carriers to work with pole owners. Done well, these installations can add value with minimal community impact. Done poorly, they can generate resident complaints and concerns about aesthetics. “When developing codes, ordinances, instructions, and procedures for handling wireless facility applications, local governments should be very specific about what constitutes a “complete application.”” 23Bridging the Gap: 21st Century Wireless Telecommunications Handbook80 “HetNet technology provides the best opportunity for carriers to make the most efficient use of limited RF spectrum in the face of exponential growth in mobile data usage.” Figure 10: Good and bad examples of HetNet deployments Credit: Philips Connected City Experience Credit: Omar Masry, AICP Wireless Telecom Roadmap – What Does The Future Hold? Increased Deployment of HetNets For the reasons previously outlined in this handbook, local governments should prepare for applications to install DAS and Small Cell facilities, especially on utility poles in the public right-of-way. HetNet technology provides the best opportunity for carriers to make the most efficient use of limited RF spectrum in the face of exponential growth in mobile data usage, and Small Cell technology is a key component in deployment strategies for major carriers. LTE in the Unlicensed Bands Local governments, especially those that have deployed – or are considering deployment of – Wi-Fi networks in the 5 GHz band should closely monitor the trials and co-existence tests of LTE-Unlicensed. We don’t know yet how well Wi-Fi 24 Bridging the Gap: 21st Century Wireless Telecommunications Handbook 81 and LTE-U will behave in large-scale real-world deployments, and procedures for how to test for and mitigate interference are still under development. Wi-Fi Carriers & Voice-over-Wi-Fi We expect that in parallel with deployment of LTE-Unlicensed, there will be a growth in the use of Wi-Fi networks as an alternative to traditional mobile carriers. We’ve seen a rise in Wi-Fi First business models where the subscriber’s phone seeks out Wi-Fi as a preferred network for both voice and data, only falling back to cellular when necessary – and this will place pressure on Wi-Fi network providers to deploy faster networks with more capacity. Roaming agreements between Wi-Fi providers will allow users more flexibility to access networks in more places, and this may provide an opportunity to monetize Wi-Fi networks to offset capital and operating expenses. Wi-Fi First carriers charge subscriptions rates well below traditional carriers, so these phones offer a great opportunity to provide wireless telephone service to lower-income citizens who may not qualify for discounted telephone rates. Unfortunately, the Wi-Fi standard suffers from limitations which prevent it from achieving its full potential as a carrier- grade connection technology. Managing logins for large numbers of users is challenging, the ability to roam from one network to another without having to login again is largely non-existent, and users have to maintain and manage their own list of known networks. Wi-Fi lacks an authentication method, and without authentication it’s fairly easy for a hacker to record user data by pretending to be a trusted Wi-Fi network. Unlike cellular data standards, Wi-Fi does not have a “handoff” mechanism, which means when a user moves from one Wi-Fi access point to another the connection is interupted for a brief period of time. Yet the popularity of Wi-Fi as a replacement for wired Ethernet has led to wide proliferation of systems, which tend to interfere with each other, leading to reduced performance. Wi-Fi for IoT Several cable companies are deploying Wi-Fi networks through line-attach equipment and public-facing hotspots on leased gateway equipment in homes and businesses. While not typically fast enough to support high-bandwidth usage for large numbers of users, these Wi-Fi networks are potentially good for handling Internet of Things traffic, which is typically less bandwidth intensive and more tolerant of network latency. Evolutions in the standards family that governs Wi-Fi have been released that make it more suitable for IoT applications. Dedicated IoT Networks Competing with Wi-Fi and mobile data networks for IoT are several proprietary standards, collectively known as Low Power Wide Area (LPWA) systems. Because “We expect that in parallel with deployment of LTE-Unlicensed, there will be a growth in the use of Wi-Fi networks as an alternative to traditional mobile carriers.” 25Bridging the Gap: 21st Century Wireless Telecommunications Handbook82 they were designed specifically for IoT applications, they can be better in terms of power consumption, which is often a key design criterion for IoT systems. The downside is that in many locations the networks do not yet exist, so siting and permitting effort will be required. In most cases LPWA facilities are small, with equipment cabinets less than 12 cubic feet and antennas about 3 feet long, and thus have minimal aesthetic effect. Local governments should consider implementing streamlined review processes for LPWA equipment and sites. FirstNet – LTE for Public Safety The Spectrum Act of 2012 contained legislation and funding for what is now called FirstNet™ – a nationwide LTE network dedicated for use by public safety and First Responders. As of this writing FirstNet has just completed its RFP process and decisions are expected in late 2016, after which the network must be built. While the federal government allocated over $7 billion in funding for FirstNet the final amount needed will be much higher, so the question of ongoing revenue and build-out funding remains to be answered. Once it reaches the deployment phase, FirstNet will provide a unique challenge to local governments because the locations of FirstNet’s wireless facilities are dictated by the needs of public safety, not commercial carriers seeking to serve the public. Local governments that are averse to allowing wireless deployments may find themselves being forced to approve a FirstNet site based on public safety needs. FirstNet technology will look very much like the existing wireless networks, and will use HetNet architectures to provide wide-area coverage from large macro towers, and DAS or Small Cell equipment to provide speed and spectrum efficiency in populated areas. Early 5G Trials 5G is interesting and potentially very valuable, but 4G LTE technology will be around for many years to come. News stories about early 5G testbeds and trials will increase as we get closer to 2020, after which we’ll begin to see some deployments, but it will be at least another decade before 5G begins to overtake 4G deployments, and 5G subscriptions will not overtake 4G subscriptions until at least 2031. This doesn’t mean we shouldn’t be planning for 5G, just that we should have reasonable expectations for when those systems will reach mass deployment, and not expect that they’ll be prevalent in the next few years. “FirstNet’s wireless facilities are dictated by the needs of public safety, not commercial carriers seeking to serve the public.” 26 Bridging the Gap: 21st Century Wireless Telecommunications Handbook 83 Recommendations for Municipal Governments Understand and Adapt to New Telecom Legislation The FCC Shot Clocks, Section 6409(a), and state laws such as California’s AB 57 are the laws of the land. Local governments must carefully consider and prepare for responding to wireless facility applications given the rules passed. The alternative is a lawsuit, which nobody wants and only serves to suppress cooperation on the shared goal of creating world-class wireless networks for our citizens. Local governments must be diligent about creating tools such as a comprehensive pre-application checklist, and publish clear application instructions that “specify the code provision, ordinance, application instruction, or otherwise publically-stated procedures that require the information to be submitted.” (Reference to Section 6409(a) on the Spectrum Act 2012) At a minimum, local governments should determine if their existing codes and ordinances address wireless facilities in the public right-of-way – and should quickly take action to create those codes and ordinances if they do not. Due to the unique nature of HetNet facilities, these new codes and ordinances should be separate from any existing ordinances that pertain to large macro towers and equipment. Recognize the Societal Value of Wireless Broadband The economics of the Digital Divide are plain and striking – internet use by households below $75,000 median income drops off exponentially. (White House Council of Economic Advisors, 2016) Elementary and secondary school teachers are increasingly requiring students to complete and submit work online via cloud-based tools such as Office 365™ and Google Docs™. Wireless is increasingly the sole method of internet access for low-income households. (McHenry, 2016) How will children of low-income families compete without access to broadband? Access to wireless broadband is critical, and both governments and carriers have a shared social responsibility to ensure equitable access for all citizens. The California Emerging Technology Fund (CETF) commissions an annual survey of the state’s Digital Divide. (CETF, 2016) 74% of survey respondents cited costs of access or equipment as their reason for not having broadband access. The 2016 survey found broadband adoption rates well below the overall state average of 84% for: • Households earning less than $22,000 (68%) • Adults 65 or older (56%) • Spanish-speaking Latinos (69%) “Access to wireless broadband is critical, and both governments and carriers have a shared social responsibility to ensure equitable access for all citizens.” 27Bridging the Gap: 21st Century Wireless Telecommunications Handbook84 • Not a high school graduate (63%) • Adults who identify having a disability (71%) In the past, the thinking was that mobile users are demographically affluent – the stereotypical multi-tasking businessperson with a smartphone, but today’s reality is otherwise. Mobile devices have replaced laptops and PCs in many homes. Families in poverty, unable to afford both mobile data and wired broadband, often opt for mobile data only. Wireless telecom and mobile broadband are not luxuries for the wealthy - they are critical systems for all citizens struggling to keep up with (or join) the 21st century. Fast reliable wireless broadband coverage is not a convenience for the privileged few – it is a vital resource which must deployed for use by all citizens. Some municipal governments view telecom projects as an opportunity to increase revenue, which is misguided. Municipal governments need to view communication networks no differently than water or electricity projects, and they should consider legitimate requests for safe and aesthetically-reasonable communication equipment projects not as a revenue source, but as an opportunity to improve quality of life and bridge the Digital Divide. Install Conduit, Adopt Dig Once Policies, and Allow Micro- Trenching The rate at which we consume digital data shows no signs of slowing down. The best technology for carrying large amounts of data is fiber optics. Installing conduit at every opportunity is an inexpensive way to invest in our future, and conduit installed should be oversized and doubled-up whenever possible to facilitate future growth. Local governments should create “Dig Once” policies that encourage conduit installation, and should create “Opportunity Alert Systems” that notify wired and wireless telecommunication companies when permits are issued for underground work that could allow conduit to be installed. Local governments should also create codes and ordinances that allow for “Micro-Trenching” – a less- disruptive installation process which allows fiber to be deployed using flexible ducts laid into a saw cut only 1.25” wide. (Broadband Properties, 2009) Stay Informed and Educated Wireless communications is a complex topic, and it’s constantly changing. People who’ve spent their careers in the field struggle to keep up. There’s no dishonor in admitting that you need help, and there are good sources of information and support that can be retained to help guide strategy and tactics. It’s important to stay connected with the wireless community. A good way to do this is to attend local conferences, educational seminars, or hosting an “Municipal governments need to view communication networks no differently than water or electricity projects.” 28 Bridging the Gap: 21st Century Wireless Telecommunications Handbook 85 informational session with your review and hearing bodies – this helps build a network of contacts that can offer advice and help to understand technologically feasible options and tradeoffs. Unfortunately in many instances a lack of mutual understanding has arisen between wireless carriers/operators, residents, and municipal governments – causing protracted negotiations and permitting processes that took many months or even years to complete, and delaying projects to the point where projects have become unprofitable or even impossible. Some local governments, acting to appease objections of residents, have treated applications for wireless facilities with disdain or even outright hostility. Municipal government leaders often sit through hours of citizen objections as to why a site should not be located in a certain spot. The reasons for these objections are often based in fears of new technology, concerns over aesthetics, fears about the impact of wireless facilities on property values, etc. This “not-in-my-back-yard” perspective, which gives excess weight to the opinions of a vociferous minority at the expense of the needs of all citizens, led to industry lobbying for legislation at both the federal and state level designed to force local governments to publish their application criteria up front, not change application criteria in mid-process, make decisions within a set timeframe on applications, and to require negative decisions to be made on a reasonable and equitable basis. It’s unfortunate that these laws have to exist, but they at least will prevent the kinds of stalemates which have too often occurred, and which have prevented us from having the best wireless networks in the world. The complexities of managing telecom applications and permitting will only increase as the wireless telecom industry moves from applying for permits to erect or modify a single macro towers covering many square miles to applying for permits to deploy densified HetNet networks where many small sites (each covering only a few blocks) are to be installed – often in the public right-of-way on street lights, signs, utility poles, and other street furniture. By approaching these densified networks not as a problem but as a joint opportunity to improve our networks, we can overcome this challenge and move forward with new technologies that benefit our citizens and local economies. There’s no dishonor in asking for help. Wireless networks are not simple things. Even senior engineers who’ve been doing telecom for decades struggle to keep up with new technologies. Leaders in all departments (planning, public works, economic development, real estate, utilities, etc.) should not be embarrassed to admit what they don’t understand, and should bring in qualified help as needed when sorting out options. “By approaching these densified networks not as a problem but as a joint opportunity to improve our networks, we can overcome this challenge and move forward with new technologies that benefit our citizens and local economies.” 29Bridging the Gap: 21st Century Wireless Telecommunications Handbook86 Recommendations for Carriers, Operators, and Utilities Understand the Complexities of Local Government Carriers and network operators need to understand that municipal governments are responsive to all citizens, and are charged with balancing often-conflicting edicts to move their cities and towns forward in a progressive manner while honoring and maintaining the area’s local history and heritage. Communicate Clearly and Credibly With Citizens Carriers and network operators need to communicate well with local residents and then commit to hearing out their concerns – even if those concerns might seem ridiculous or uninformed. They need credibly and straightforwardly to educate the public about the value of communications, technologies which are or will be used, and how these have evolved from voice-only to voice & data systems. Commit to Bridging the Digital Divide It’s easy and profitable to focus deployment resources on higher-income areas. The harder thing, but the right thing, is to commit to building networks into underserved areas to help bridge the Digital Divide and protect our most vulnerable citizens. It may be that these networks are less profitable, or even take a small loss, but the goodwill they create will ease tensions and concerns, which helps everyone in the long run. Work to Build and Maintain Trust Carriers and network operators need to be hyper-vigilant about ensuring that what gets built matches the application and design documentation. They need to actively work to ensure that projects are not done with unpermitted modifications, consider the needs of citizens and neighborhoods, and avoid shoddy workmanship. Do everything possible to avoid building wireless facilities that conflict with architectural or historical preservation efforts. They should choose and use equipment that is smaller, quieter, and minimally visible – and always be pushing their component vendors to develop products that help meet these goals. Communications and openness with residents and local governments about even small changes are the keys to building trust –changes slipped in under the radar are almost always discovered and this gives opposition groups a lot of ammunition to protest new projects, which is ultimately counter-productive. “Carriers and network operators need to understand that municipal governments are responsive to all citizens, and are charged with balancing often-conflicting edicts to move their cities and towns forward in a progressive manner while honoring and maintaining the area’s local history and heritage.” 30 Bridging the Gap: 21st Century Wireless Telecommunications Handbook 87 Takeaways for Municipal Leaders 1. Heterogenous Networks (DAS and Small Cells) are coming. Ask your Planning and Public Works Directors if they have a review process in place for wireless facilities in the public right-of-way. If there is no defined process, work with your City Attorney to craft one (or borrow an example from another city) that meets your needs. 2. Inventory your assets. Get a sense of what utility poles, light poles, and conduit routes your municipality does and does not own. Are certain areas under jurisdiction of another government agency? 3. Reach out. Talk with your local electric utility provider about options for metering wireless facilities, and ways to avoid the need for bulky electric meters or disconnect boxes on sidewalks or poles. As electric power providers often go through rigorous review to update standards, have this conversation early on. 4. Educate. Hold an information session for active community groups, as well as elected leaders and appointed bodies that may have an interest: e.g. Planning Commission, Design Review Boards, Historic Preservation Commission. Provide photo examples of DAS and Small Cell sites installed elsewhere. Invite carrier and utility representatives. 5. Update Infrastructure. Evaluate whether limited-area microtrenching can be used to minimize fiber optic deployment costs and reduce the need for major street trenching activity. This option can benefit both cellular providers, wired broadband and cable TV providers, as well as independent/community-based internet service providers and government agencies. Also, consider creating Dig Once policies to expand opportunities to build fiber optic infrastructure over time. Remember that, for the most part, wireless facilities still require fiber optic backhaul. Fiber and conduit are relatively cheap compared to labor and construction costs, so it’s an investment worth making to install fiber and conduit while streets or sidewalks are opened up. 31Bridging the Gap: 21st Century Wireless Telecommunications Handbook88 Glossary of Terms Term Definition 2G Second generation cellular. 3G Third generation cellular. 4G Fourth generation cellular. 5G Fifth generation cellular : an ITU recommendation governed by the IMT-2020 standard. 3GPP Third Generation Partnership Project, a standards body. ARPU Average Revenue Per User : a measure of system revenue relative to the number of users – to be profitable, ARPU must be higher than the costs of building and maintaining the network. Bit A single unit of digital information. Byte A block of 8 bits. Broadband Data which transfers at minimum speeds of 25 Mbps download, 3 Mbps upload (Per the FCC’s 2015 definition). CBRS Citizens Broadband Radio Service : a 3.5 GHz band communications standard for Small Cells, used in the USA. Cellular A wide-area wireless technology consisting of many sites interoperating as a network, for the purposes of providing voice and data communications. Churn A rough metric of the rate at which subscribers change from one carrier to another. Co-Location The installation of wireless equipment and antennas for multiple technologies and/or competing carriers to a single tower or wireless facility. DAS Distributed Antenna System : can be indoor (typically just called DAS) or outdoor (usually called o-DAS). Dark Fiber Fiber optic cabling which is unused and reserved for future use. dB Decibel, a unitless ratio of gain or loss. dBd Decibels of antenna gain relative to a simple dipole antenna. dBi Decibels of antenna gain relative to a theoretical point-source antenna. dBm Decibels of power gain or loss relative to a milliwatt of RF energy. EB Exabyte, 1x1018 bytes. FCC Federal Communications Commission. FirstNet™A nationwide network of LTE sites reserved for use by public safety and critical infrastructure users. GB Gigabyte, 1x109 bytes. GHz Gigahertz, 1x109 hertz. Gig Economy The economic shift of workers away from full-time long-term employment to transient short-term jobs or “gigs” – sometimes called the Contractor Economy. Handoff The process by which a wireless voice or data connection is seamlessly transitioned from one site to another. HetNet Heterogeneous Network : a system of dissimilar wireless technologies operating as a whole. Hz Hertz (cycles per second) : a measure of frequency. IEEE Institute of Electrical and Electronics Engineers : a standards body. IoT Internet of Things : the connection of stand-alone nodes, systems, and devices to the internet. IP Internet Protocol : the standard for data communications over the internet. IT Information technology. ITU International Telecommunications Union – the technology standardization and coordination arm of the United Nations. Lattice Tower A type of communications tower constructed from a lattice of metal sections – can be either guyed (GT) or self-supporting (SST). Lit Fiber Fiber optic cabling which is operated by a company that sells capacity on that fiber to multiple users. 32 Bridging the Gap: 21st Century Wireless Telecommunications Handbook 89 Term Definition LPWA Low Power Wide Area : An Internet of Things communications technology that uses low-power, low data rate communications for devices. LTE Long Term Evolution : the name for the “4G” radio interface standard published by 3GPP. LTE-A LTE Advanced : a higher performance version of LTE. LTE-LAA LTE-License Assisted Access : a 3GPP-compliant LTE-U technology. LTE-U LTE-Unlicensed : a technology to run LTE waveforms on the 5 GHz unlicensed spectrum band. Macro Site or Tower A large tower (either guyed or freestanding) which supports communications equipment and antennas. Mbps Megabits, 1x106 bits per second. MBps Megabytes, 1x106 bytes per second. MHz Megahertz, 1x106 hertz. Mobile Economy The exchange of goods and services delivered to consumers by smartphone apps. Monopole A type of wireless tower. MSO Multiple System Operator : an operator of multiple cable or direct-broadcast satellite television systems. mW Milliwatt, 1/1000th of a watt. NFV Network Functional Virtualization. NGH Next Generation Hotspot : a standard that allows Wi-Fi devices to use foreign networks without needing to manually log in. Offload A network enhancement technique where requests for large amounts of data (such as streaming video) are handled by a parallel network – usually through a Small Cell or Wi-Fi node. RF Radio Frequency. Roaming The automatic sharing of networks, used to provide subscribers with a larger number of available sites without requiring user intervention. SDN Software Defined Networking. Sharing Economy Ride-sharing from individual contractors (as an alternative to taxi or livery services), Home-sharing from private citizens (as an alternative to hotels or motels), and other models – these are managed and enabled by smartphone apps and mobile networks. Small Cell A type of communications equipment which operates at lower power levels than a macro site. Small Cells typically cover areas from a single room up to several hundred meters in radius. They are often attached to other structures such as building roof perimeters, street lights, and utility poles. Spectrum The range of RF frequencies used by a wireless system. VoLTE Voice over LTE. VoWiFi Voice over Wi-Fi (sometimes referred to as “Wi-Fi calling”). Watt A measure of power, used to define RF power levels. Wi-Fi Wireless Fidelity : the IEEE 802.11 standard for data communications. Wi-Fi First A type of wireless subscription model where the subscriber equipment prefers to use Wi-Fi calling (VoWiFi) for voice connections. If Wi-Fi is not available, the voice call is handled by a cellular carrier via a roaming agreement. Wireless Telecommunications of voice or data using RF methods. 33Bridging the Gap: 21st Century Wireless Telecommunications Handbook90 Works Cited Broadband Properties. (2009, May/June). Retrieved August 2, 2016, from Broadband Prop- erties: http://www.bbcmag.com/2009issues/may-june09/BBP_MayJune09_MicroTrench- ing.pdf Centers for Disease Control. (2016, May). (S. J. Blumberg, Ph.D. , & J. V. Luke, Eds.) Retrieved July 5, 2016, from http://www.cdc.gov/nchs/data/nhis/earlyrelease/wireless201605.pdf CETF. (2016, July). Retrieved Aug 2, 2016, from California Emerging Technology Fund: http://www.cetfund.org/files/CETF_Annual_Survey_2016.pdf Congressional Research Service. (2014, March 12). (L. K. Moore, Ed.) Retrieved July 5, 2016, from https://www.fas.org/sgp/crs/misc/R43256.pdf CPUC 14-05-001. (2015, October). Retrieved July 6, 2016, from California Public Utilities Commission: https://apps.cpuc.ca.gov/apex/f?p=401:59:0::NO CTIA. (2015, December 31). Retrieved July 5, 2016, from http://www.ctia.org/docs/default- source/default-document-library/ctia-survey-2015.pdf CTIA Filing to FCC. (2009, September 29). Retrieved July 5, 2016, from https://ecfsapi.fcc. gov/file/7020039747.pdf Ericsson AB. (2016, June). Retrieved July 5, 2016, from https://www.ericsson.com/res/ docs/2016/ericsson-mobility-report-2016.pdf FCC. (1996, April 23). Retrieved July 5, 2016, from http://wireless.fcc.gov/fact1.pdf FCC 600 MHz Auction. (2016). Retrieved July 5, 2016, from https://auctiondata.fcc.gov/ public/projects/1000 FCC AWS-3 Auction Results. (2015, January 3). Retrieved July 5, 2016, from https://apps. fcc.gov/edocs_public/attachmatch/DA-15-131A1.pdf GSM Association. (2015, October 27). Retrieved August 3, 2016, from https://www.gsmain- telligence.com/research/?file=10bf6e45b6a9705c44b78b7d566f76e6&download IHS Markit. (2016, July). IoT Devices - Installed Base & Device Shipments. IHS Markit Tech- nology. (IHS Disclaimer: Results are not an endorsement of Joint Venture Silicon Valley. Any reliance on these results is at the third party’s own risk. Visit www.technology.ihs.com for more details.) International Telecommunications Union. (2011, April 4). About mobile technology and IMT-2000. Retrieved July 26, 2016, from https://www.itu.int/osg/spu/imt-2000/technol- ogy.html International Telecommunications Union. (2016). ITU global standard for international mobile telecommunications : ´IMT-Advanced´. (International Telecommunications Union) Retrieved July 26, 2016, from https://www.itu.int/en/ITU-R/study-groups/rsg5/rwp5d/imt- adv/Pages/default.aspx Maravedis & Wi-Fi 360. (2016, June 20). Retrieved July 5, 2016, from http://worldwifi- day.com/wp-content/uploads/2016/06/Research-%E2%80%9CMapping-the-Urban- Unconnected%E2%80%9D.pdf 34 Bridging the Gap: 21st Century Wireless Telecommunications Handbook 91 McHenry, G. (2016, April 19). Evolving Technologies Change the Nature of Internet Use. Re- trieved July 5, 2016, from National Telecommunications and Information Administration: https://www.ntia.doc.gov/blog/2016/evolving-technologies-change-nature-internet-use Mobile Experts LLC. (2016, April). (J. Madden, & K. Mun, Eds.) Retrieved July 5, 2016, from Mobile Experts LLC: http://www.mobile-experts.net/Home/Report/57 Small Cell Forum. (2016). Retrieved July 5, 2016, from Small Cell Forum: http://www.small- cellforum.org/about/about-small-cells/small-cell-definition/ White House Council of Economic Advisors. (2016, March). Retrieved July 5, 2016, from https://www.whitehouse.gov/sites/default/files/page/files/20160308_broadband_cea_is- sue_brief.pdf 35Bridging the Gap: 21st Century Wireless Telecommunications Handbook92 SILICON VALLEY 100 West San Fernando Street, Suite 310 San Jose, California 95113 (408) 298-9330 info@jointventure.org | www.jointventure.org 93 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2133 Name: Status:Type:Ceremonial Matters & Presentations Agenda Ready File created:In control:11/3/2016 City Council On agenda:Final action:12/6/2016 Title:Subject: Presentation of Teen Commission FY 16-17 Work Plan Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. City Council12/6/20161 Subject: Presentation of Teen Commission FY 16-17 Work Plan Receive presentation of Teen Commission FY 16-17 Work Plan CITY OF CUPERTINO Printed on 11/29/2016Page 1 of 1 powered by Legistar™94 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2192 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:11/18/2016 City Council On agenda:Final action:12/6/2016 Title:Subject: Approve the November 15 City Council minutes Sponsors: Indexes: Code sections: Attachments:A - Draft Minutes Action ByDate Action ResultVer. City Council12/6/20161 Subject: Approve the November 15 City Council minutes Approve the November 15 City Council minutes CITY OF CUPERTINO Printed on 11/29/2016Page 1 of 1 powered by Legistar™95 DRAFT MINUTES CUPERTINO CITY COUNCIL Tuesday, November 15, 2016 REGULAR CITY COUNCIL MEETING ROLL CALL At 6:00 p.m. Mayor Barry Chang called the City Council meeting to order in Cupertino City Hall Conference Room A, 10300 Torre Avenue. Present: Mayor Barry Chang, Vice Mayor Savita Vaidhyanathan, and Councilmembers Darcy Paul and Rod Sinks. Absent: Gilbert Wong. CLOSED SESSION 1. Subject: Conference with legal counsel - Existing Litigation pursuant to Paragraph (1) of subdivision (d) of Gov't Code 54956.9; Caixing Xie and Wei Xie vs. City of Cupertino, Gunes Aybay and Does 1 through 50, inclusive, Case #16-CV-295371 Mayor Chang announced that Council gave direction to staff. PLEDGE OF ALLEGIANCE At 6:45 p.m. Mayor Barry Chang re-convened 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 Councilmembers Darcy Paul and Rod Sinks. Absent: Gilbert Wong. CEREMONIAL MATTERS AND PRESENTATIONS 2. Subject: Present Certificates of Recognition to volunteers at the Silicon Valley Korean School (SVKS) out of Cupertino High School Recommended Action: Present Certificates 96 City Council Minutes November 15, 2016 2 Mayor Chang presented Certificates of Recognition to volunteers at the Silicon Valley Korean School (SVKS) out of Cupertino High School. POSTPONEMENTS - None ORAL COMMUNICATIONS Jon Willey talked about Ethics Week, November 6-12. CONSENT CALENDAR Vaidhyanathan moved and Sinks seconded to approve the items on the Consent Calendar as presented with the exception of item number 17 which was pulled for discussion. Ayes: Chang, Vaidhyanathan, Paul and Sinks. Noes: None. Abstain: None. Absent: Wong. 3. Subject: Approve the November 1 City Council minutes Recommended Action: Approve the November 1 City Council minutes 4. Subject: Accept Accounts Payable for the period ending August 19, 2016 Recommended Action: Adopt Resolution No. 16-116 accepting Accounts Payable for the period ending August 19, 2016 5. Subject: Accept Accounts Payable for the period ending August 26, 2016 Recommended Action: Adopt Resolution No. 16-117 accepting Accounts Payable for the period ending August 26, 2016 6. Subject: Accept Accounts Payable for the period ending September 2, 2016 Recommended Action: Adopt Resolution No. 16-118 accepting Accounts Payable for the period ending September 2, 2016 7. Subject: Accept Accounts Payable for the period ending September 9, 2016 Recommended Action: Adopt Resolution No. 16-119 accepting Accounts Payable for the period ending September 9, 2016 8. Subject: Accept Accounts Payable for the period ending September 16, 2016 Recommended Action: Adopt Resolution No. 16-120 accepting Accounts Payable for the period ending September 16, 2016 9. Subject: Accept Accounts Payable for the period ending September 23, 2016 97 City Council Minutes November 15, 2016 3 Recommended Action: Adopt Resolution No. 16-121 accepting Accounts Payable for the period ending September 23, 2016 10. Subject: Accept Accounts Payable for the period ending September 30, 2016 Recommended Action: Adopt Resolution No. 16-122 accepting Accounts Payable for the period ending September 30, 2016 11. Subject: Treasurer's Investment report for Quarter ending June 30, 2016 Recommended Action: Accept the Treasurer's Investment report for Quarter ending June 30, 2016 12. Subject: Treasurer's Investment Report for Quarter ending September 30, 2016 Recommended Action: Accept the Treasurer's Investment Report for Quarter ending September 30, 2016 13. Subject: Approval of First Quarter Financial Report for Fiscal Year 2016-17 Recommended Action: 1. Accept the City Manager's First Quarter Financial Reports for Fiscal Year 2016-17; and 2. Adopt Resolution No. 16-123 approving First Quarter Budget Adjustments 3. Adopt Resolution No. 16-128 amending the Unrepresented Employees' Compensation Program 14. Subject: Increase hourly rates to the part-time salary schedule to comply with new local Minimum Wage rate and market wages Recommended Action: Adopt Resolution No. 16-124 increasing hourly rates for part- time employees, splitting a classification into three classifications, and eliminating two classifications 15. Subject: Declare weeds a nuisance and set hearing date of January 17 for objections to proposed removal Recommended Action: Adopt Resolution No. 16-125 declaring weeds a nuisance and setting a hearing date of January 17 for objections to proposed removal 16. Subject: Approval of the destruction of records from the Recreation & Community Services (Quinlan Community Center) Department Recommended Action: Adopt Resolution No. 16-126 approving the destruction of records from the Recreation & Community Services (Quinlan Community Center) Department 98 City Council Minutes November 15, 2016 4 17. Subject: Open Space Area Agreement between the City and the Cupertino Union School District Recommended Action: Approve a new fifteen and one half (15.5) year Open Space Area Agreement, with an option to mutually extend an additional five (5) years, between the City of Cupertino and the Cupertino Union School District; and authorize the City Manager to negotiate and execute all necessary documents to carry out the agreement Staff answered questions from Council. Steven Scharf spoke on this item. Paul moved and Vaidhyanathan seconded to approve a new fifteen and one half (15.5) year Open Space Area Agreement, with an option to mutually extend an additional five (5) years, between the City of Cupertino and the Cupertino Union School District; and authorize the City Manager to negotiate and execute all necessary documents to carry out the agreement. The motion carried unanimously with Wong absent. 18. Subject: Accept resignation of Bicycle Pedestrian Commissioner Gary Jones and direct staff to fill the unscheduled vacancy with annual recruitment in January Recommended Action: Accept resignation of Bicycle Pedestrian Commissioner Gary Jones and direct staff to fill the unscheduled vacancy with annual recruitment in January 19. Subject: Application for Alcohol Beverage License for OH Cupertino, Inc (dba Bull), 10493 S. De Anza Boulevard Recommended Action: Recommend approval to the California Department of Alcoholic Beverage Control of the application for Alcohol Beverage License for OH Cupertino, Inc (dba Bull), 10493 S. De Anza Boulevard 20. Subject: 2017 Pavement Maintenance Project, Project No. 2017-104 contract award Recommended Action: Authorize the City Manager to award a contract to O’Grady Paving Company, in the amount of $3,352,709 and approve a construction contingency of $335,000, for a total of $3,687,709 SECOND READING OF ORDINANCES 21. Subject: Amendments to Cupertino Municipal Code Title 16, Buildings and Construction, for the purposes of adopting, amending and implementing the 2016 99 City Council Minutes November 15, 2016 5 California Building Standards Code and Fire Code and making local exceptions (effective January 1, 2017). Recommended Action: 1) Find that the proposed actions are exempt from CEQA; 2) Conduct the second reading and enact Ordinance No. 16-2155: an “Ordinance of the City Council of the City of Cupertino Amending Chapters 16.02, 16.04, 16.06, 16.16, 16.24, 16.40, 16.54, 16.58, and 16.80 and repealing Chapter 16.42 of Title 16 of the Cupertino Municipal Code adopting the 2016 California Building, Residential, Electrical, Mechanical, Plumbing, Energy, Historical, Fire, Existing Building Code, Green Building Standards Codes with Certain Exceptions, Modifications, and Additions” City Clerk Grace Schmidt read the title of the ordinance. Sinks moved and Paul seconded to read Ordinance No. 16-2155 by title only and that the City Clerk’s reading would constitute the second read ing thereof. Ayes: Chang, Vaidhyanathan, Paul and Sinks. Noes: None. Abstain: None. Absent: Wong. Sinks moved and Vaidhyanathan seconded to enact Ordinance No. 16-2155. Ayes: Chang, Vaidhyanathan, Paul and Sinks. Noes: None. Abstain: None. Absent: Wong. PUBLIC HEARINGS 22. Subject: Amendments to the Cupertino Municipal Code regarding the regulation, location, and the keeping of bees in the City and to make other conforming changes for clarification and internal consistency; (Application No. MCA-2016-03; Applicant: City of Cupertino; Location: Citywide). Continued from the October 4, 2016 meeting Recommended Action: 1) Find that the proposed actions are exempt from CEQA; and 2) Conduct the first reading of Ordinance No. 16-2158 “An ordinance of the City Council of the City of Cupertino to amend Chapter 8.07, Beekeeping, and Table 19.20.020 of Chapter 19.20, Permitted, Conditional, and Excluded Uses in Agricultural and Residential Zones, regarding the regulation, location, and the keeping of bees in the City and to make other conforming changes in Table 19.20.020 for clarification and internal consistency” Written communications for this item included a staff PowerPoint presentation. Assistant Planner Ellen Yau reviewed the staff report via a PowerPoint presentation. Staff answered questions from Council. 100 City Council Minutes November 15, 2016 6 Mayor Chang opened the public hearing and the following individuals spoke: Alysa Sakkas and students from Rolling Hills 4-H Club Mayor Chang closed the public hearing. City Clerk Grace Schmidt read the title of the ordinance. Sinks moved and Vaidhyanathan seconded to amend the location to be 8’ from side and rear property lines and driveway easements. Chang offered a friendly amendment to restrict the number of hives based on square footage. Vaidhyanathan withdrew her second and Chang seconded the motion. Mayor Chang reopened the public hearing and following individuals spoke: Jennifer Griffin Mayor Chang closed the public hearing. Sinks modified his motion to amend the location to be 8’ from side and rear property lines and driveway easements and go with staff recommendation regarding the number of hives per square footage. Chang withdrew his second and Paul seconded the modified motion. Sinks moved and Paul seconded to read Ordinance No. 16-2158 by title only and that the City Clerk’s reading would constitute the first reading thereof with the amendment to the location to be 8’ from side and rear property lines and driveway easemen ts. Ayes: Chang, Vaidhyanathan, Paul and Sinks. Noes: None. Abstain: None. Absent: Wong. 23. Subject: Amendments to the Cupertino Municipal Code relating to accessory dwelling units including, but not limited to approval processes, size, location, and parking as required by State Law and for consistency. The amendments will apply citywide. Application No(s): MCA-2016-05; Applicant(s): City of Cupertino; Location: Citywide Recommended Action: 1. Find that that proposed actions are exempt from CEQA; and 2. Conduct the first reading of Ordinance No. 16-2159 “An ordinance of the City Council of the City of Cupertino amending Title 19, Zoning, of the Cupertino Municipal Code including but not limited to Chapter 19.08 (Definitions), Chapter 19.20 (Permitted, Conditional and Excluded Uses in Agricultural and Residential Zones), 101 City Council Minutes November 15, 2016 7 Chapter 19.24 (Agricultural (A) and Agricultural - Residential (A-1) Zones), Chapter 19.32 (Residential Duplex (R-2) Zones), Chapter 19.52 (Reasonable Accommodation), and Chapter 19.112 (Second Dwelling Units in R-1, RHS, A and A-1 Zones)", in response to recently adopted State legislation regarding accessory dwelling units for compliance with State Law, and for internal consistency Written communications for this item included emails and letters to Council and a staff PowerPoint presentation. Assistant Planner Gian Martire reviewed the staff report via a PowerPoint presentation. City Clerk Grace Schmidt read the title of the ordinance. Staff answered questions from Council. Mayor Chang opened the public hearing and the following individuals spoke: Larry Wilson Jennifer Griffin Nicole Montojo on behalf of Silicon Valley at Home Paula Wallis Mayor Chang closed the public hearing. Sinks moved and Vaidhyanathan seconded to read Ordinance No. 16-2159 by title only and that the City Clerk’s reading would constitute the first reading thereof. Ayes: Chang, Vaidhyanathan, Paul and Sinks. Noes: None. Abstain: None. Absent: Wong. 24. Subject: Extension of the moratorium on non-medical marijuana dispensaries, marijuana cultivation facilities, commercial cannabis activities and marijuana transport and deliveries Recommended Action: That the City Council: 1. Find that the proposed actions are exempt from CEQA; and 2. Enact Ordinance No. 16-2160: “An Interim Urgency Ordinance of the City Council of the City of Cupertino extending a Temporary Moratorium on non-medical marijuana dispensaries, marijuana cultivation facilities, commercial cannabis activities and marijuana transport and deliveries within the City of Cupertino pending completion of an update to the City’s Zoning Code” Written communications for this item included a staff PowerPoint presentation. 102 City Council Minutes November 15, 2016 8 Principal Planner Piu Ghosh reviewed the staff report via a PowerPoint presentation. Mayor Chang opened the public hearing and the following individuals spoke: Jennifer Griffin Mayor Chang closed the public hearing. City Clerk Grace Schmidt read the title of the ordinance. Sinks moved and Vaidhyanathan seconded to read Interim Urgency Ordinance No. 16- 2160 by title only and that the City Clerk’s reading would constitute the only reading thereof. Ayes: Chang, Vaidhyanathan, Paul and Sinks. Noes: None. Abstain: None. Absent: Wong. Sinks moved and Vaidhyanathan seconded to enact Interim Urgency Ordinance No. 16-2160. Ayes: Chang, Vaidhyanathan, Paul and Sinks. Noes: None. Abstain: None. Absent: Wong. ORDINANCES AND ACTION ITEMS 25. Subject: Mitigation Fee Act - Annual & Five-Year Report - Fiscal Year 2015-2016 Recommended Action: 1. Accept the Five-Year and Annual Review of the City of Cupertino’s Development Impact Fees (Government Code Section 66000 et seq.); and 2. Adopt Resolution No. 16-127 approving the Five-Year and Annual Development Impact Fee Reports and Making Required Findings Director of Public Works Timm Borden reviewed the staff report. Paul moved and Sinks seconded to 1. Accept the Five-Year and Annual Review of the City of Cupertino’s Development Impact Fees (Government Code Section 66000 et seq.); and 2. Adopt Resolution No. 16-127 approving the Five-Year and Annual Development Impact Fee Reports and Making Required Findings. The motion carried unanimously with Wong absent. REPORTS BY COUNCIL AND STAFF 26. Subject: Report on Committee assignments and general comments 103 City Council Minutes November 15, 2016 9 Recommended Action: Report on Committee assignments and general comments Council members highlighted the activities of their committees and various community events. ADJOURNMENT At 9:50 p.m., Mayor Chang adjourned the meeting. _______________________ Grace Schmidt, City Clerk 104 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2138 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:11/7/2016 City Council On agenda:Final action:12/6/2016 Title:Subject: Accept Accounts Payable for the period ending October 7, 2016 Sponsors: Indexes: Code sections: Attachments:A - Draft Resolution B - AP Report Action ByDate Action ResultVer. City Council12/6/20161 Subject: Accept Accounts Payable for the period ending October 7, 2016 AdoptResolutionNo.16-129acceptingAccountsPayablefortheperiodendingOctober7, 2016 CITY OF CUPERTINO Printed on 11/29/2016Page 1 of 1 powered by Legistar™105 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 October 7, 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 6th day of December, 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 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2139 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:11/7/2016 City Council On agenda:Final action:12/6/2016 Title:Subject: Accept Accounts Payable for the period ending October 14, 2016 Sponsors: Indexes: Code sections: Attachments:A - Draft Resolution B - AP Report Action ByDate Action ResultVer. City Council12/6/20161 Subject: Accept Accounts Payable for the period ending October 14, 2016 AdoptResolutionNo.16-130acceptingAccountsPayablefortheperiodendingOctober14, 2016 CITY OF CUPERTINO Printed on 11/29/2016Page 1 of 1 powered by Legistar™121 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 October 14, 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 6th day of December, 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 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2193 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:11/21/2016 City Council On agenda:Final action:12/6/2016 Title:Subject: Accept resignation of Teen Commissioner Rishit Gundu and direct staff to fill the unscheduled vacancy with the annual Teen Commission recruitment in May 2017 Sponsors: Indexes: Code sections: Attachments:Staff Report A - Resignation letter Action ByDate Action ResultVer. City Council12/6/20161 Subject:AcceptresignationofTeenCommissionerRishitGunduanddirectstafftofillthe unscheduled vacancy with the annual Teen Commission recruitment in May 2017 AcceptresignationofTeenCommissionerRishitGunduanddirectstafftofilltheunscheduled vacancy with the annual Teen Commission recruitment in May 2017 CITY OF CUPERTINO Printed on 11/29/2016Page 1 of 1 powered by Legistar™149 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: December 6, 2016 Subject Accept resignation of Teen Commissioner Rishit Gundu and direct staff to fill the unscheduled vacancy with the Teen Commission annual recruitment in May 2017. Recommended Action Accept resignation of Teen Commissioner Rishit Gundu and direct staff to fill the unscheduled vacancy with the Teen Commission annual recruitment in May 2017. Discussion Teen Commissioner Rishit Gundu has notified Council and staff of his resignation, effective immediately, which creates an unscheduled (partial) vacancy for the remainder of his term ending May 2017. Cupertino Resolution No. 10-048 states that:  Posting for unscheduled vacancies 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 vacancy notice will be posted on December 7, satisfying the posting requirements. _____________________________________ 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 150 Dear City of Cupertino Council Members, I am writing this letter to inform you that I have recently shifted my place of residence from Cupertino to Sunnyvale. I’m aware that one of the requirements of being a Teen Commissioner is to be a resident of Cupertino, so I am announcing my resignation from the Cupertino Teen Commission. Please know that it was a very abrupt decision and was caused by a combination of unexpected and unavoidable circumstances. The time I spent on the Teen Commission this year and last year has truly been a wonderful experience that has provided me with a plethora of experiences and lessons that I will ultimately carry on with me for the rest of my senior year, college and beyond. I want to thank the City Council for providing me with this great opportunity and I profusely apologize for this unexpected burden. Sincerely, Rishit Gundu CITY OF CUPERTINO RECREATION & COMMUNITY SERVICES DEPARTMENT 10185 N. STELLING RD. CUPERTINO, CA 95014 OFFICE: (408) 777-3120 | FAX: (408) 777-3137 151 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2100 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:10/17/2016 City Council On agenda:Final action:12/6/2016 Title:Subject: Establishment of Friendship City Relationships Sponsors: Indexes: Code sections: Attachments:Staff Report Attachment A-Jiangmen Friendship City Application Attachment B-Luoyang Friendship City Application Attachment C-Nanchang Friendship City Application Attachment D-Qingdao Friendship City Application Attachment E-Shanghai Friendship City Application Attachment F-Shenzhen Friendship City Application Attachment G-Suzhou Friendship City Application Attachment H-Wuhan Friendship City Application Attachment I-Yilan Friendship City Application Attachment J-Zhaoqing Friendship City Application Attachment K-Guro Friendship City Application Action ByDate Action ResultVer. City Council12/6/20161 Subject: Establishment of Friendship City Relationships Reviewandconsider11applicationsestablishingFriendshipCityrelationshipswithLuoyang, People’sRepublicofChina;Qingdao,People’sRepublicofChina;Shanghai,People’s RepublicofChina;Shenzhen,People’sRepublicofChina;Suzhou,People’sRepublicof China;Wuhan,People’sRepublicofChina;Yilan,Taiwan,RepublicofChina;andZhaoqing, People’s Republic of China; and Guro, Seoul, South Korea CITY OF CUPERTINO Printed on 11/29/2016Page 1 of 1 powered by Legistar™152 OFFICE OF THE CITY MANAGER CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3212 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: December 6, 2016 Subject Establishment of Friendship City Relationships Recommended Action Review and consider 11 applications establishing Friendship City relationships with Luoyang, People’s Republic of China; Qingdao, People’s Republic of China; Shanghai, People’s Republic of China; Shenzhen, People’s Republic of China; Suzhou, People’s Republic of China; Wuhan, People’s Republic of China; Yilan, Taiwan, Republic of China; Zhaoqing, People’s Republic of China; and Guro, Seoul, South Korea. Background At its September 6, 2016 meeting, Council approved amendments to the City’s Policies and Guidelines on Sister Cities to include a designation for Friendship City relationships. Following this action, staff created an application and made it available to interested parties. To date, the City Council has established seven Friendship City relationships. Description The City recognizes the value of developing people-to-people contacts as a way to further international communication and understanding. Friendship City partnerships can be an effective method in fostering increased global cooperation and communication between the City of Cupertino and international municipalities. As such, the City welcomes friendly relationships with cities from around the world. Staff has received 11 new applications from Friendship City groups representing:  Jiangmen, People’s Republic of China  Luoyang, People’s Republic of China  Nanchang, People’s Republic of China  Qingdao, People’s Republic of China  Shanghai, People’s Republic of China  Shenzhen, People’s Republic of China  Suzhou, People’s Republic of China  Wuhan, People’s Republic of China  Yilan, Taiwan, Republic of China 153  Zhaoqing, People’s Republic of China  Guro, Seoul, South Korea If the application is approved by Council, the Mayor would sign the agreements establishing Friendship City Designations between the City and the international municipalities. The agreements would expire in two years unless renewed. Sustainability Impact To the extent that encouraging Friendship City relationships leads to additional international travel and delegation visits, there will be an increase in transportation- related greenhouse gas emissions. Fiscal Impact The policy establishes Friendship Cities differently from Sister Cities. Friendship Cities are not eligible for City funding. Any direct financial obligation from the City for Friendship Cities would be limited to providing promotional items not to exceed $15 per delegate. Indirectly, each international delegation visit uses approximately 20 hours of staff effort, which equates to about $1,500 of staff time per visit. _____________________________________ Prepared by: Brian Babcock, Public Information Officer Reviewed by: Jaqui Guzmán, Deputy City Manager Approved for Submission by: David Brandt, City Manager Attachments: A – Jiangmen Friendship City Application B – Luoyang Friendship City Application C – Nanchang Friendship City Application D – Qingdao Friendship City Application E – Shanghai Friendship City Application F – Shenzhen Friendship City Application G – Suzhou Friendship City Application H – Wuhan Friendship City Application I – Yilan Friendship City Application J – Zhaoqing Friendship City Application K – Guro Friendship City Application 154 CITY OF CUPERTTINO FRIENDSHIP CITIES PROGRAM APPLICATION FOR DESIGNATION Instructions This application is to be completed by the Friendship City Committee of the requesting international city and submitted electronically to the Cupertino City Manager’s Office by emailing pio@cupertino.org. Background A Friendship Cities Designation is an established relationship between the City of Cupertino and a partnering international organization that is mutually beneficial. The first step towards establishing a Friendship Cities Designation is to complete this application. This application helps to identify proposed goals of the relationship, the supporting activities expected, and highlights the areas of interest strengths, or needs of each party. The proponents of establishing such a relationship must be a collaboration of a community organization (a Friendship City Committee) and an elected official of the participating international city. Who May Request a Friendship Cities Designation? Any established Friendship City Committee of the proponent Friendship City may submit an application. The most successful applications will have more than one sponsor and will represent multiple agencies or organizations. Processing and Approval of the Application This application will clearly state the rationale and the goals of the relationship and the mutual benefits in establishing this relationship. Once the designation is in place, all information in the application will be shared with the community and stakeholders upon request. Complete information for key contacts and authorizing individuals (the signing authorities) must be provided before the relationship can be finalized. In addition, the committee must have a Cupertino Councilmember sponsorship. Incomplete information will delay the process. A Friendship Cities Designation will be authorized for a period of two (2) years as outlined in the City of Cupertino’s “Policies and Guidelines on Sister Cities, Friendship Cities, and International Delegations” and will be subject to all guidelines therein. 155 CUPERTINO FRIENDSHIP CITIES PROGRAM APPLICATION FOR DESIGNATION To be completed in English by the requesting organization: 1. Name and Country of the proposed Friendship City and the Friendship City Committee: ________________________________________________________________________ 2. Today’s date: __________________________ 3. Name of person requesting relationship:______________________________________________ Title: _________________________________________________________________________________ Affiliation: ____________________________________________________________________________ Address: ______________________________________________________________________________ Email: ________________________________________________________________________________ Phone: ________________________________________________________________________________ 4. City of Cupertino Sponsor: __________________________________________________________ 5. Friendship City Elected Official Sponsor: ____________________________________________________ 6. RATIONALE: Please explain the rationale and focus of the requested Friendship Cities Designation. Describe why a Friendship City relationship would be beneficial to the City of Cupertino and your local community, organization, and city. Please outline the areas of mutual strength and interest for each of the participants. Limit this section to four pages and attach it to this application. Items to include: • Names, titles, and affiliations of those who will be involved at the proponent Friendship City and the Friendship City Committee. Be sure to include information for the proponent Friendship City’s Mayor as they will have the primary signing authority of the Friendship City. • Areas of mutual interest upon which the relationship will focus. • Opportunities for new activities and potential outcomes. • Benefits and measurable results that the City of Cupertino and proponent Friendship City can expect as a result of the establishment of such a relationship. 7. RESOURCES: Please address monetary and in-kind resources that may be necessary to conduct the activities of this relationship, how they are to be obtained, and from whom. If none, state “no funding required”. Please note that the City of Cupertino does not currently provide funding for Friendship Cities. Limit this section to one page and attach it to this application. 8. PROFILE: Please attach a brief profile of your city and Friendship City Committee including, but not limited to: background, location, nature, size, and relevant programs. Limit the profile to no more than two pages. 9. ADDITIONAL INFORMATION: Please add any additional information about this proposed relationship, the proponent Friendship City, and/or the Friendship City Committee that you wish to share. Limit additional information to no more than 2 pages. 156 Cupertino-Jiangmen Friendship City Application Cupertino-Jiangmen Friendship City Committee 6. RATIONALE: Please explain the rationale and focus of the requested Friendship Cities Designation. Describe why a Friendship City relationship would be beneficial to the City of Cupertino and your local community, organization, and city. Please outline the areas of mutual strength and interest for each of the participants. Limit this section to four pages and attach it to this application. Items to include: • Names, titles, and affiliations of those who will be involved at the proponent Friendship City and the Friendship City Committee. Be sure to include information for the proponent Friendship City’s Mayor as they will have the primary signing authority of the Friendship City. • Areas of mutual interest upon which the relationship will focus. • Opportunities for new activities and potential outcomes. • Benefits and measurable results that the City of Cupertino and proponent Friendship City can expect as a result of the establishment of such a relationship. The leadership of the Cupertino-Jiangmen Friendship City Friendship Committee consists of: President: Stephanie Xu Vice President: Pat Graham Treasurer: Alan Liu The Committee foresees three areas of mutual benefits from a friendship city program: Business Exchanges: The Committee will provide businesses from the two cities to identify areas of potential mutual collaboration. Similar to other cities in the western Pearl River Delta, the manufacturing sector plays a significant role in Jiangmen's economy. The chief industries include manufacturing of motorcycles, household appliances, electronics, paper, food processing, synthetic fibers and garments, as well as textiles and stainless steel products. Some worldwide brand names have factories in Jiangmen such as Asia Pacific Resources International Holdings, ABB Group and Lee Kum Kee foods. Jiangmen Port is the second largest river port in Guangdong province. The local government plans to develop a harbour industrial zone with heavy industries to include petrochemical and machinery plants, as well as an ocean- based economy. Culture Exchanges: The Committee will facilitate cultural exchange between the residents of the two cities. The power of opportunity for cultural exchanges between the two cities will be a mutually beneficial arrangement to help deepen our cross- cultural partnerships between people. Education Exchanges: The Committee will connect students from our Cupertino High Schools and De Anza College students so they can exchange information about their daily lives and improve understanding of the two cultures. The Committee will also seek to sponsor small groups of students from both cities to visit the each other city with the support of host families. Page of 1 2 157 Cupertino-Jiangmen Friendship City Application 7. RESOURCES: Please address monetary and in-kind resources that may be necessary to conduct the activities of this relationship, how they are to be obtained, and from whom. If none, state “no funding required”. Please note that the City of Cupertino does not currently provide funding for Friendship Cities. Limit this section to one page and attach it to this application. No funding is currently required for the operation of the relationship. The future friendship city is proud to work the community for future activities with a target goal of $30,000 through donations from the communities of both cities. No funding will be necessary from the City of Cupertino. 8. PROFILE: Please attach a brief profile of your city and Friendship City Committee including, but not limited to: background, location, nature, size, and relevant programs. Limit the profile to no more than two pages. Jiangmen, formerly romanized as Kongmoon, is a prefecture-level city in Guangdong Province in southern China. Its 3 urban districts are now part of the Guangzhou–Shenzhen conurbation and the entire prefecture had a population of about 4.45 million in 2010. The city is located on the lower reaches of the Xijiang or West River, in the west of the Pearl River Delta in the middle of southern Guangdong Province. It faces the South China Sea in the south and is 100 kilometres (62 mi) away from Guangzhou and Zhuhai by highway. Jiangmen city has an area of 9,260 square kilometres (3,580 sq mi), about one quarter the size of the Pearl River Delta. Jiangmen was selected by the Chinese state as a pilot city for a nationwide information programme. It was also chosen by the Pacific Economic Cooperation Council (PECC) as a trial city for the Regional Integration for Sustainable Economics (RISE) project. According to the "Report on Investment Environment in China 2003" by the World Bank, Jiangmen ranked the fourth after Shanghai, Hangzhou and Dalian of 23 cities under evaluation in China. Among various indicators, Jiangmen excelled in infrastructure, labour redundancy, proportion of joint ventures in all firms, informal payments to government, taxation, productivity and the investment rate. Culture Jiangmen is the homeland of 3.68 million overseas Chinese, who live in 107 countries and regions throughout the world. Strong oversea connections are especially found in the villages. A significant amount of historical heritage survives from the period of mass emigration prior to World War II. The most significant are the fortified multi-story towers found mainly in Kaiping. These are known as "Gold Mountain Towers" or diaolou. Number of natural Hotspring resorts has been developed successfully by using its wealthy natural heated ground water resources such as Gudou Hotspring Resort (古兜温泉). Guifeng Mountain is a well- known mountain visited by many tourists, it is the peak of Jiangmen with an elevation of 545 meters above sea level. The local government's economic development strategies emphasize the development of tourism and protection of the environment. Page of 2 2 158 CUPERTINO FRIENDSHIP CITIES PROGRAM APPLICATION FOR DESIGNATION To be completed in English by the requesting organization: 1. Name and Country of the proposed Friendship City and the Friendship City Committee: Luoyang China, Luoyang Friendship City Committee. 2. Today’s date: 11/17/2016 3. Name of person requesting relationship: John Lee Title: Vice President Affiliation: Western U. S. Henan Business Association Address: 830 Stewart Dr. Suite 229 Sunnyvale, CA 94085 Email: Jlee5168@gmail.com Phone: 408-859-1528 4. City of Cupertino Sponsor: Mayor Barry Chang 5. Friendship City Elected Official Sponsor: Vice Mayor Suxing Chen of Luoyang 6. RATIONALE: Please explain the rationale and focus of the requested Friendship Citie Designation. Describe why a Friendship City relationship would be beneficial to the City of Cupertino and your local community, organization, and city. After multiple discussions with Mayer Chang he has agreed that there are many reasons that this relationship would be beneficial to the city. Cultural exchange, science conferences, investment opportunities, just to name a few. Please outline the areas of mutual strength and interest for each of the participants. Limit this section to four pages and attach it to this application. Items to include: Benefits: Luoyang has strong focus on technology, education, entrepreneurship, investment and tourism, cultural exchange. China is the leading country in renewable energy. Providing opportunity for an exchange of ideas and information. Cultural benefits from Mutual exchange students learning cultural diversity and history. • Names, titles, and affiliations of those who will be involved at the proponent Friendship City and the Friendship City Committee. Be sure to include information for the proponent Friendship City’s Mayor as they will have the primary signing authority of the Friendship City. John Lee-Vice President of Western U. S. Henan Business Association Lei Lei- Chairman/President of Yanghuang Science and Technology Park Cupertino: Mayor Barry Chang Luoyang: Vice Mayor Suxing Chen • Areas of mutual interest upon which the relationship will focus: 159 Technology, Education, Entrepreneurship, Investment and Tourism. • Opportunities for new activities and potential outcomes. Luoyang generates approximately $60B. USD GDP in 2015, is ranked 51st out of 355 City By align with a strong economy city, Cupertino could benefit from many areas, commerce, investment, trade, culture exchange and tourism just say a few. • Benefits and measurable results that the City of Cupertino and proponent Friendship City can expect as a result of the establishment of such a relationship. After discussing with Mayor Chang, Quantified measurement at this point is hard to say and the methodology can be discussed. Luoyang is a city located in the confluence area of Luo River and Yellow River in Central China. It is a city in western Henan province, a state with over 100 million populations, and the most populated Provincial in China. It borders the provincial capital of Zhengzhou to the east. As of the final 2015 census, Luoyang had a population of 7,549,941 inhabitants with 2,857,003 people living in the built-up (or metro) area made of the city's five urban districts, all of which except the Jili District are not urbanized yet. Luoyang has history dated back to 5,000 years with 108 Empiors host this city as the Country Capital. It is the beginning of the silkroad. It has 4 higher educational facilities:  Luoyang Institute of Science and Technology (洛阳理工学院)  Henan University of Science and Technology (河南科技大学)  Luoyang Normal University (洛阳师范学院)  PLA Foreign Language Institute, formerly known as the Luoyang PLA College of Foreign Languages. Luoyang generates approximately $60B. USD in 2015, is ranked 51 st out of 355 City As of the end of 2015, Luoyang has 1 state-level development zone, size: 43 sq. miles. 7. RESOURCES: Please address monetary and in-kind resources that may be necessary to conduct the activities of this relationship, how they are to be obtained, and from whom. If none, state “no funding required”. Please note that the City of Cupertino does not currently provide funding for Friendship Cities. Limit this section to one page and attach it to this application. 160 No funding is required from Cupertino, Luoyang government or the association will provide all the funding or fund raising. 8. PROFILE: Please attach a brief profile of your city and Friendship City Committee including, but not limited to: background, location, nature, size, and relevant programs. Limit the profile to no more than two pages. See above reply 9. ADDITIONAL INFORMATION: Please add any additional information about this proposed relationship, the proponent Friendship City, and/or the Friendship City Committee that you wish to share. Limit additional information to no more than 2 pages. Some of the projects planned: Student exchange program, investment projects presentation, start-up companies’ competition, Venture capital road show, culture exchange, entertainment programs. 161 CITY OF CUPERTTINO FRIENDSHIP CITIES PROGRAM APPLICATION FOR DESIGNATION Instructions This application is to be completed by the Friendship City Committee of the requesting international city and submitted electronically to the Cupertino City Manager’s Office by emailing pio@cupertino.org. Background A Friendship Cities Designation is an established relationship between the City of Cupertino and a partnering international organization that is mutually beneficial. The first step towards establishing a Friendship Cities Designation is to complete this application. This application helps to identify proposed goals of the relationship, the supporting activities expected, and highlights the areas of interest strengths, or needs of each party. The proponents of establishing such a relationship must be a collaboration of a community organization (a Friendship City Committee) and an elected official of the participating international city. Who May Request a Friendship Cities Designation? Any established Friendship City Committee of the proponent Friendship City may submit an application. The most successful applications will have more than one sponsor and will represent multiple agencies or organizations. Processing and Approval of the Application This application will clearly state the rationale and the goals of the relationship and the mutual benefits in establishing this relationship. Once the designation is in place, all information in the application will be shared with the community and stakeholders upon request. Complete information for key contacts and authorizing individuals (the signing authorities) must be provided before the relationship can be finalized. In addition, the committee must have a Cupertino Councilmember sponsorship. Incomplete information will delay the process. A Friendship Cities Designation will be authorized for a period of two (2) years as outlined in the City of Cupertino’s “Policies and Guidelines on Sister Cities, Friendship Cities, and International Delegations ” and will be subject to all guidelines therein. 162 CUPERTINO FRIENDSHIP CITIES PROGRAM APPLICATION FOR DESIGNATION To be completed in English by the requesting organization: 1. Name and Country of the proposed Friendship City and the Friendship City Committee: Nanchang City, Jiangxi Province, China. Nanchang- Cupertino friendship city committee 2. Today’s date: 11/18/2016 3. Name of person requesting relationship: Julia Jin Affiliation: United for Better Community 4. Address: 10675 S. De Anza Blvd., Cupertino, CA 95014 Email: juliajin98@gmail.com Phone: 408-309-9629 5. City of Cupertino Sponsor: Mayor Barry Chang 6. Friendship City Elected Official Sponsor: Mayor Hu, Xian 7. RATIONALE: Please explain the rationale and focus of the requested Friendship Cities Designation. Describe why a Friendship City relationship would be beneficial to the City of Cupertino and your local community, organization, and city. Please outline the areas of mutual strength and interest for each of the participants. Limit this section to four pages and attach it to this application. Items to include:  Names, titles, and affiliations of those who will be involved at the proponent Friendship City and the Friendship City Committee. Be sure to include information for the proponent Friendship City’s Mayor as they will have the primary signing authority of the Friendship City.  Areas of mutual interest upon which the relationship will focus.  Opportunities for new activities and potential outcomes.  Benefits and measurable results that the City of Cupertino and proponent Friendship City can expect as a result of the establishment of such a relationship. 8. RESOURCES: Please address monetary and in-kind resources that may be necessary to conduct the activities of this relationship, how they are to be obtained, and from whom. If none, state “no funding required”. Please note that the City of Cupertino does not currently provide funding for Friendship Cities. Limit this section to one page and attach it to this application. 9. PROFILE: Please attach a brief profile of your city and Friendship City Committee including, but not limited to: background, location, nature, size, and relevant programs. Limit the profile to no more than two pages. 10. ADDITIONAL INFORMATION: Please add any additional information about this proposed relationship, the proponent Friendship City, and/or the Friendship City Committee that you wish to share. Limit additional information to no more than 2 pages. 163 1 Proposal for Friendship City between City of Cupertino, California, USA and Nanchang City, Jiangxi Province, People’s Republic of China (PRC) To: City of Cupertino From: Cupertino-Nanchang friendship city committee Date: November 18, 2016 Re: Establish Friendship City between City of Cupertino, CA, USA and City of Nanchang, Jiangsxi Province, PRC Dear Cupertino City, We would like to establish a Friendship City Relationship between City of Cupertino, and City of Nanchang, Jiangxi Province. Cupertino-Nanchang Friendship City Committee: Cupertino- Nanchang Friendship City Committee is founded in Cupertino by a group of Cupertino residents and friends. The Committee will apply for a non-profit organization status from IRS. The founding members of the Association are as below: President: Julia Jing Vice President: Jan Dietzgen Secretary: Susan Su Treasurer: Jun Du Proposal for future events: a. Environmental protection b. Education and science exchange, c. Traffic improvement strategies. d. Smart City Conference e. Cultural exchange Funding: We will do fundraising events to raise money to support the activities. We are not seeking funding from City of Cupertino.  Benefits of a Friendship City agreement between the two cities: Both cities can benefit from cultural exchanges and sharing ideas or solutions to traffic problems, etc. Areas of mutual interest: 1. Cultural exchanges and mutual understanding 2. Traffic congestion relief. 164 Introduction of Nanchang: Nanchang (Chinese: 南昌) is the capital of Jiangxi Province in southeastern China.[2] As of 2010, a population of 5,042,565 live in the prefecture, in which 2,357,838 live in the area made up of all five urban districts.[3] Located in the north-central part of the province, it is bounded on the west by the Jiuling Mountains, and on the east by Poyang Lake. Because of its strategic location connecting the prosperous East and South China, it has become a major railway hub in Southern China in recent decades. As the Nanchang Uprising in 1927 is distinctively recognized by the ruling Communist Party as "firing the first gunshot against the evil Nationalists",[4] the current regime has therefore named the city since 1949 "the City of Heroes", "the place where the People's Liberation Army was born", and the most widely known "place where the military banner of the People's Liberation Army was first raised". Nanchang Map Nanchang - capital city of Jiangxi Province It is located in the north of Jiangxi Province and the lower reaches of Gan River. Its industries include machinery, automobile, tractors, light textiles, electronics, iron an d steel, chemicals, and paper making. The city boosts such scenic spots as Bada Shanren (alias Zhu Da, an early Qing painter [ 1624 or 1626-1705]) Exhibition Hall, All flowers Islet, West Lake, Water Guanyin (Goddess of Mercy) Pavilion, and the Former Headquarters of the Nanchang Uprising. It is one of the China's historical and cultural cities. The Prince Teng Pavilion The Prince Teng Pavilion towers at the bank of Gan River. The original pavilion was first built in 653 in the Tang Dynasty (618-907). It was rebuilt during the reign of the Ming emperor Jingtai ( 1450-1456 ) outside the Zhangjiang Gate. After the Qing Dynasty it was destroyed and reconstructed again. In 1926 a fire set by the Northern Warlords (1912-1927) again burnt it down. Reconstruction of the pavilion began in 1983, and was completed in 1989. Occupying an area of 43,000 square metres, the main structure of the pavilion covers 13,000 square metres. With double eaves, the pavilion boasts nine storeys, with a height of 57.5 metres. It looks even more magnificent and imposing. 165 Nanchang Map and The Prince Teng Pavilion Photo -Click here to view it in a new window(318kb) 166 16 7 16 8 1 Friendship City Mutual Interests The establishment of a friendship city between Cupertino and Qingdao High-Tech Industrial Development Zone (HIDZ) initiates the economic, technological, and educational relationship between both cities and dedicates shared knowledge and opportunities in a mutually beneficial basis. The City of Cupertino is located in Silicon Valley, a world leading high tech region. The Qingdao HIDZ is also a technology-focused region. Both city mayors have met and discussed the common interest and potential opportunities of both regions. The common goal of a friendship city is to facilitate a better communication and understanding culturally, politically, and economically through the exchange of ideas in fields of technology, education, and business. Qingdao is considered a young city in China with 125 years of history and a long period of colonization. During the Qing Dynasty, the area of Qingdao was called Jiao’ao; the area was developed as a port to conduct oversee trade with Japan and Europe. In 1891, the Qing government decided to make the area a primary defense base against naval attacks and started the construction of a city. The original name of the city is Tsingtao; the official name today is Qingdao. Qingdao is the most important port in northern China; it was occupied by Germany as the Department of the Navy from 1897 to 1914. After British naval attacked on German colony Qingdao in 1914, Japan occupied the city and surrounding province during the Siege of Tsingtao. In 1922, Qingdao reverted back to the Republic of China (ROC) and became a direct-controlled municipality of the ROC government in 1929. During World War II, Japan re-occupied Qingdao in 1938 with its plans of territorial expansion onto China's coast. On June 2nd, 1949, the China Communist Party (CCP) – led Red Army entered Qingdao with success in recapturing the territory and the city and the province have been under People Republic of China (PRC) control since then. Following the 1984 inauguration of China's open-door policy to foreign trade and investment, Qingdao has developed quickly as a modern port city. It is now the headquarters of the Chinese navy's northern fleet. Today, the city still maintains the constructions and cultural influence of Germany and Japan which add more charm for international visitors. Qingdao has a population of 9,046,200. The sub-provincial city of Qingdao has direct jurisdiction over 7 districts and 5 county-level cities with total area of 11,282 square kilometers. Qingdao is the fifth-largest and the world’s seventh-largest seaport. In 1984, the Chinese government named a district of Qingdao a Special Economic and Technology Development Zone (SETDZ). Qingdao has experienced one of the fastest GDP growths among cities in China during the last decade. The city has recently experienced a rapid growing period with a new financial and a technology-focused districts. Outside of the center of the city there is a large industrial zone, which includes chemical processing, and rubber and heavy manufacturing in addition to the growing high tech area. The historical, geographical, and economic advantages of Qingdao have made international trading and communication more efficient and more attractive to the global business owners and investors. 169 2 Given the similarities in scale of each city being a major hub in the respective region, the government of Qingdao decided to have the HIDZ become a friendship city with the City of Cupertino. The Qingdao High-Tech Industrial Development Zone is a province-level zone approved by the State Council in May of 1992. It is a newly developed technology-focused district in Qingdao where some of the most influential high tech institutions in China are located. After combined with Qingdao Jiao Zhou Bay New Industrial Base, the area of HIDZ is now 9.95 square kilometers and can be also referred to as Red Island District. More so, Cupertino is located in the heart of Silicon Valley, where it has many prominent technology-focused institutions such as Apple Inc. City of Cupertino can also be a medium to connect the surrounding cities in Silicon Valley. With the friendship city relationship, the officials from Qingdao can provide local resources such as legislation and personnel support for foreign businesses and corporate branches that decide to do business in the region. The city of Qingdao and Shandong province provide the largest support to develop this region to achieve its goal of becoming one of the five leading High-Tech Zones in China and have a worldwide influence. The officials of Qingdao HIDZ have mentioned that to achieve this goal the region needs to absorb the world’s most advanced technology and innovative ideas. HIDZ recently launched two demonstration projects on technological innovation services and marine economic system reform with the aim of building a regional center for marine industrial innovation and entrepreneurship. This region also serves the construction of the National Self-Dependent Innovation Demonstration Area on the Shandong Peninsula. It has 26 key laboratories above city level and five national technology incubators. There are also province-level software industrial base and three national-level colleges, Ocean University of China, Qingdao University, and Qingdao University of Science and Technology. The Qingdao HIDZ is willing to share its resources with the City of Cupertino and welcomes business visits from Cupertino’s high tech corporations. During the formal meeting on October 25th, 2016 when the friendship city agreement was signed, the mayor of both cities discussed that the frequency to which corporations and universities communicate will facilitate the development of new ideas and make discoveries that both major regions on each side of the world can potentially benefit from. During the last twenty years, Qingdao has been a major manufacturing center in Shandong province. There are growing number of prominent institutions in Qingdao such as Haier Corporation, which engages in the manufacture and distribution of household electrical appliances. Haier is one of the first Chinese corporations to successfully enter the U.S. market. Among the many visits during the trip from Cupertino to Qingdao, Qingdao HIDZ President Shang Li Qun arranged a visit for overseas visitors and delegates from Qingdao, IFPC, and Hong Kong Qingdao Association to the headquarter of Haier, which turned out to be a great way for all who gathered to get a firsthand experience of innovation and success the company has achieved so far. Haier encourages and sponsors its employees from all departments to actively innovate and develop new 170 3 business ideas using the corporation platform. The corporation is also willing to send the new generation of entrepreneur to join the movement in the U.S. following Haier’s lead the friendship city agreement will hopefully make that goal that much more achievable. Furthermore, China has become one of the most popular study abroad destinations for international students due to its over 5,000 years of history and diverse culture. Education is the best way to achieve cultural exchange and communication. Shandong province is the hometown of Confucius and Mencius, as well as the land of ceremony and propriety. In addition, Qingdao has large foreign population which has brought diversified culture and lifestyle to the city. With its inherent diverse scenery, Qingdao is one of the best gateway for international students to study Chinese culture and history. The friendship city will assure a credible relationship between Cupertino and Qingdao and allow easier access of information exchange for generations to come. More so, the president of Think Tank Learning in California, Steven Ma, has established an international private, non-profit high school in Qingdao in 2015. The school provides a complete U.S. high school curriculum that is taught in manner to replicate any other high school located in the United States. The style and environment is to prepare students in Qingdao to attend California universities. In the future, the school will open semester exchange programs with high schools in California. During his trip to Qingdao, Mayor Barry Chang and the delegation also had the opportunity to visit the number one ranked high school in the Shandong Province (Qingdao No. 2 High School). The school was founded in 1925 and was appointed as the key school of Shandong Province in 1953. The school has been awarded National Leading Unit in Education, National Model School in Moral Education, National Green School, National Model School in Traditional Sports Education, National Olympics Standardized School, Provincial Standardized School, Provincial Model School in Democratic Administration, and Qingdao Model School in Education Reform. The school is one example of international student exchange program offering the experience and works with high schools in the Eastern United States, Russia, and Japan. More so, in meeting with Major Barry Chang, the principal of the high school expressed interest to connect with the high schools in Silicon Valley since the school has focuses in innovative technology and is looking to adopt both western and eastern education curriculum. As an important trading port in the province, Qingdao flourishes with foreign investment and international trade. On another arranged visit, the president of Hong Kong Qingdao Association Limited, Peter Liu Shu Sun, and the founder of Wang Duan Rui hosted a half day event to visit Weidong Cloud Education of Weidong Group. Weidong Cloud Education aims to narrow down the education gap between countries and regions. It works with international organizations and world-renowned institutions to build an international digital education resource- sharing platform. With the visit from Mayor Barry Chang, the senior management team of the company also expressed interest and willingness to conduct business trips to visit corporations in 171 4 Silicon Valley as part of further developing the friendship city agreement. Qingdao is most famously known for the Tsingtao Brewery. The Tsingtao Brewery was founded on August 27, 1903 by German settlers and is headquartered in Qingdao. Now the Tsingtao Brewery is the most famous beer brand in China and known worldwide. The government of Qingdao and Tsingtao Brewery Co. will sponsor the first Qingdao Beer Festival in Los Angeles in 2017. In connection to the friendship city agreement, this event brings about opportunity for one of China’s high quality food and beverage company to be a leading ambassador for the larger Chinese food and beverage industry to enter the U.S. market. With the event being planned it will also bring both Chinese traditional and modern music, dance, and art to achieve better communication and understanding of Chinese culture. With this friendship city relationship, we can bring such events and more activities to the Bay Area in the future. This friendship city agreement between the City of Cupertino and Qingdao High-Tech Industrial Development Zone has potential to bring more institutions and people from various fields of technology, education, and business to participate and set a new outlook that will bring about a larger scope of opportunities between the two sides of the world. Friendship City Committee The Mayor of Cupertino Barry Chang initiated a friendship city trip to the People Republic of China from October 24th to November 15th, 2016. Dr. Reuben K. Chen, the founder and CEO, and Yilin Wang, the business development manager of Wellspring Consulting connected with organizations and the government of Qingdao to discuss the content of a friendship city agreement. Mayor Barry Chang arrived in Qingdao on October 25th and that same day the Qingdao United Front Work Department arranged a visit to Qingdao High-Tech Industrial Development Zone and an official meeting in the afternoon. After a successful discussion, Shang Li Qun, President of the Qingdao High-Tech Industrial Development Zone Committee of the Communist Party of China acknowledged and signed the friendship city agreement with the Mayor of Cupertino Barry Chang. Prior to the friendship city agreement meeting, Dr. Reuben K. Chen was also invited to speak at the annual conference of International Financial Planner Council (IFPC), Hong Kong association, in Qingdao from October 19th to the 25th. The conference was joint hosted by Qingdao United Front Work Department and Hong Kong Qingdao Association Limited. The sponsor of the conference was Pegasus California High School, established by Steven Ma, the president of Think Tank Learning in California, and Qingdao Wei Dong Group. The secretary of IFPC Heman Lam Kwok Chu assisted to initially discussed the friendship city agreement with the Qingdao government prior to Mayor Barry Chang’s arrival. The president of Hong Kong Qingdao 172 5 Association Peter Liu Shu Sun also provides important contact to connect with the Qingdao Government and the Chinese People's Political Consultative Conference (CPPCC). All the listed parties and people have provided important resources and support to facilitate the success of Cupertino and Qingdao High-Tech Industrial Development Zone friendship city agreement. With a common goal to build a better communication channel between two cultures and stimulate the international development of the two regions, all the members and future participants of the committee will work together to share resources and opportunities base on common interests. Shang Li Qun – Qingdao Official Shang Li Qun is the President of the Qingdao High-Tech Industrial Development Zone Committee of the Communist Party of China and the Executive Deputy Director of Qingdao High-Tech Industrial Development Zone Management Committee. He represented the High-Tech Industrial Development Zone and the Mayor of Qingdao, Zhang Xinqi, to discuss and sign the friendship city agreement. Dr. Reuben K. Chen – President Dr. Reuben K. Chen is the founder and CEO of Wellspring Consulting and the Member Firm Principal of M Financial Group. He founded Silicon Valley Lions Foundation and serves as the Charter President of the Silicon Valley Lions Club. He is currently the Chairman of the Northern California Chapter of the Asian American Insurance Financial Professional Association (AAIFPA). Dr. Chen co-founded Shower of Blessing Evangelistic Ministry (SOBEM, U.S.A.) and the Chinese American Christian Business Fellowship (CACBF). He is also Board of Director and Treasurer for Culture Regeneration Research Society USA (CRRS). He was awarded “World Outstanding Chinese Award” in 2007 and received a proclamation from Mayor Jose Esteves, City of Milpitas, for his outstanding worldwide achievement and contribution to the community. Dr. Chen initiated the Friendship City Committee in Qingdao and connected with all the related organizations. He invited the Mayor of Cupertino Barry Chang to visit Qingdao and signed the friendship city agreement with Qingdao High-Tech Industrial Development Zone. Peter Liu Shu Sun – VP Peter Liu Shu Sun is the president of Hong Kong Qingdao Association Limited, founding member and Honorary President of Hong Kong Shandong Business Association, Honorary Adviser of China Chamber of International Commerce, Qingdao Chamber, executive member of Qingdao Federation of Industry and commerce, and the former senior member of Qingdao committee of CPPCC for 15 years. His association has a long history of friendship and focuses on the communication and knowledge exchange on culture, economy, education, and technology between Hong Kong and Qingdao. He works closely with Qingdao United Front Work Department and the Qingdao Government and the Chinese People's Political Consultative Conference 173 6 (CPPCC). He connected with Qingdao Weidong Group and Weidong Cloud Education and plans to visit Silicon Valley beginning in 2017 with a group of Qingdao investors and entrepreneurs. Steven Ma – VP Steven Ma is the Founder, President and CEO of Think Tank Learning, Inc. Mr. Ma serves as secretary of the California Commission on Asian and Pacific Islander Affairs and is the Chair of the Asian American Education Media Foundation. In 2015, he connected with Hong Kong International Financial Planner Council (IFPC) to fund and established the Pegasus California High School in Qingdao. Mr. Ma also served as Chairman of the Education Committee of the International Leadership Foundation. In 2010, Steven was recognized as one of China’s Top 10 Economic Talents and given a special recognition at the 7th Annual “Greater China Economic Excellence Awards” in Beijing. Yilin Wang – VP Yilin Wang is the business development manager of Wellspring Consulting. She invited and arranged the trip for the Mayor Barry Chang to Qingdao. She discussed the content of the friendship city agreement with Qingdao Official organizations and designed the program structure of the agreement. She is responsible for establishing the Friendship City Committee and will plan for future events and opportunities for the committee. Heman Lam Kwok Chu – VP Heman Lam Kwok Chu is the secretary of Hong Kong International Financial Planner Council (IFPC). He made contact with the Qingdao United Front Work Department to write the friendship city agreement and arranged the reception program and official meeting for Mayor Barry Chang in Qingdao. He is responsible for fundraising for future events between Cupertino and Qingdao. The Qingdao United Front Work Department (UFWD) is a municipal political agency under the guidance of the Central Committee of the Communist Party of China. The department is responsible for managing relations with the non-Communist Party elites including individuals and organizations, commercial, or academic influence, or those that represent important interest groups, both domestically and internationally. In addition, the department is also responsible for contacting the non-Party committee representatives and CPPCC members at all levels; it provides assistance and support on investigation, supervision, and proposal works. The UFWD seeks to ensure that these groups are supportive to Communist Party rule. 174 7 Monetary and Resources The three-day visit from October 23rd to 25th, 2016 in Qingdao cost $3,000 per person including international and domestic transportation and accommodations. The first trip from Cupertino to Qingdao was self-funded. All conferences, visits, and meals in Qingdao were arranged and sponsored by International Financial Planner Council, Hong Kong Qingdao Association Limited, The Qingdao United Front Work Department, and Qingdao Chinese People's Political Consultative Conference. Sponsorships may continue for future activities. Depending on the event participants will be responsible for their own expenses. The Friendship City Committee in Cupertino will provide necessary resources such as event arrangement and supporting documents for local legislation purpose. There is no funding required from the City of Cupertino. For business visits and activities, a sponsorship may be required. Based on the agreement, there is no requirement for annual visits between the government officials of both cities. However, for projects that require in-person meetings as well as future activities and events between both cities, the following list of identifies areas that would require funding when visiting the host city. • Travel arrangements (e.g. transportation, hotel, dining) • Travel documentations (Visas) • Gifts • Entertainment • Event Coordinator o Venue o Security o Event staff o Technology • Marketing efforts leading into an event o Ads and local media outlet Through the friendship city agreement, we want to expand our mutual interests in various fields of work and that this will be the first step towards that goal. To add, this establishment we believe will generate interest and opportunities for more government, business, and professional organizations from both cities to participate. 175 青岛 Qingdao Mayor: Zhang Xinqi 张新起 Year of establishment:1891 Location: Eastern Shandong Province Jurisdiction: 7 districts, 5 county-level cities Land Area: 11,282 km2 Population: 9,046,200 GDP: $136.43 Billion USD GDP per capita: $14879.50 USD Friendship City Committee 176 Qingdao High-tech Industrial Development Zone Year of establishment :1992 Location: Red Island, Qingdao, Shandong Land Area: 9.95 km2 Population:81,000 Total Production: $6.5 Billion USD Major Corporations: Lucent, Parker Hannifen, SSL, China North Rolling Stock Group, Hisense, Haier Soft, Neusoft Major Industries Information technology, bio-pharmaceuticals, new materials, new energy, advanced equipment manufacturing, marine technology, defense technology Friendship City Committee 177 Qingdao Official Meeting and Signing of Friendship City Agreement Barry Chang –Mayor of Cupertino Shang Li Qun –Qingdao Official Involved Organizations: Qingdao Government and the Chinese People's Political Consultative Conference (CPPCC). Qingdao High-Tech Industrial Development Zone Committee of the Communist Party of China The Qingdao United Front Work Department (UFWD) Hong Kong Qingdao Association Limited Hong Kong International Financial Planner Council (IFPC) Wellspring Consulting –Silicon Valley Qingdao Weidong Group Friendship City Committee 178 Qingdao HIDZ Educational Institutions The Mayor Barry Chang and visited the Qingdao No. 2 High School Pegasus California School in Qingdao Friendship City Committee 179 Qingdao Leading Industries Friendship City Committee 180 CITY OF CUPERTTINO FRIENDSHIP CITIES PROGRAM APPLICATION FOR DESIGNATION Instructions This application is to be completed by the Friendship City Committee of the requesting international city and submitted electronically to the Cupertino City Manager’s Office by emailing pio@cupertino.org. Background A Friendship Cities Designation is an established relationship between the City of Cupertino and a partnering international organization that is mutually beneficial. The first step towards establishing a Friendship Cities Designation is to complete this application. This application helps to identify proposed goals of the relationship, the supporting activities expected, and highlights the areas of interest strengths, or needs of each party. The proponents of establishing such a relationship must be a collaboration of a community organization (a Friendship City Committee) and an elected official of the participating international city. Who May Request a Friendship Cities Designation? Any established Friendship City Committee of the proponent Friendship City may submit an application. The most successful applications will have more than one sponsor and will represent multiple agencies or organizations. Processing and Approval of the Application This application will clearly state the rationale and the goals of the relationship and the mutual benefits in establishing this relationship. Once the designation is in place, all information in the application will be shared with the community and stakeholders upon request. Complete information for key contacts and authorizing individuals (the signing authorities) must be provided before the relationship can be finalized. In addition, the committee must have a Cupertino Councilmember sponsorship. Incomplete information will delay the process. A Friendship Cities Designation will be authorized for a period of two (2) years as outlined in the City of Cupertino’s “Policies and Guidelines on Sister Cities, Friendship Cities, and International Delegations ” and will be subject to all guidelines therein. 181 CUPERTINO FRIENDSHIP CITIES PROGRAM APPLICATION FOR DESIGNATION To be completed in English by the requesting organization: 1. Name and Country of the proposed Friendship City and the Friendship City Committee: Channing District, Shanghai City, 2. Today’s date: November 18, 2016 3. Name of person requesting relationship: Linda Shum Title: President Affiliation: Cupertino-Shanghai Friendship City Association 4. Address: 10454 Scenic Ct.,Cupertino, CA 95014 Email: lindashum@yahoo.com Phone: 408-255-6737 5. City of Cupertino Sponsor: Mayor Barry Chang 6. Friendship City Elected Official Sponsor: District Mayor Gu, Hong Hui 7. RATIONALE: Please explain the rationale and focus of the requested Friendship Cities Designation. Describe why a Friendship City relationship would be beneficial to the City of Cupertino and your local community, organization, and city. Please outline the areas of mutual strength and interest for each of the participants. Limit this section to four pages and attach it to this application. Items to include:  Names, titles, and affiliations of those who will be involved at the proponent Friendship City and the Friendship City Committee. Be sure to include information for the proponent Friendship City’s Mayor as they will have the primary signi ng authority of the Friendship City.  Areas of mutual interest upon which the relationship will focus.  Opportunities for new activities and potential outcomes.  Benefits and measurable results that the City of Cupertino and proponent Friendship City can expect as a result of the establishment of such a relationship. See attached. 8. RESOURCES: Please address monetary and in-kind resources that may be necessary to conduct the activities of this relationship, how they are to be obtained, and from whom . If none, state “no funding required”. Please note that the City of Cupertino does not currently provide funding for Friendship Cities. Limit this section to one page and attach it to this application. See attached. 9. PROFILE: Please attach a brief profile of your city and Friendship City Committee including, but not limited to: background, location, nature, size, and relevant programs. Limit the profile to no more than two pages. 10. ADDITIONAL INFORMATION: Please add any additional information about this proposed relationship, the proponent Friendship City, and/or the Friendship City Committee that you wish to 182 share. Limit additional information to no more than 2 pages. 183 1 Proposal for Friendship City between City of Cupertino, California, USA and City of Shanghai (Channing District), People’s Republic of China (PRC) To: City of Cupertino From: Cupertino-Shanghai Friendship City Association Date: November 18, 2016 Re: Establish Friendship City between City of Cupertino, CA, USA and City of Shanghai, PRC Dear City of Cupertino, We are asking you to establish Friendship City Relationship between City of Cupertino, and City of Shanghai, Channing District. Cupertino-Shanghai Friendship City Association Cupertino-Shanghai Friendship City Association is founded in Cupertino by a group of Cupertino residents and friends. The Association will apply for a non-profit organization status from IRS. The founding members of the Association are as below: President: Linda Shum Vice President: Lian Feng Secretary: Jenny Yuan Treasurer: Kerchen Heller Funding the Proposal We will host fundraising events and ask community members to contribute. The Association will actively raise fund for potential activities in the future. And, we are not asking funding from City of Cupertino. Plan of Events in the future a. Traffic improvement strategies exchange. b. Trade, education, science, technology cooperation and exchange; c. Smart City Conference between two cities. d. “Tell the story of your city” video competition. Areas of mutual interest: 1. Find solution for potential traffic congestion relief 2. Cultural exchanges and mutual understanding  Benefits of a Friendship City agreement between the two cities: Both cities can learn from each other about the solution for traffic and housing crisis. Both can benefit from each other through cultural exchanges and each successful program. 184 185 186 CITY OF CUPERTTINO FRIENDSHIP CITIES PROGRAM APPLICATION FOR DESIGNATION Instructions This application is to be completed by the Friendship City Committee of the requesting international city and submitted electronically to the Cupertino City Manager’s Office by emailing pio@cupertino.org. Background A Friendship Cities Designation is an established relationship between the City of Cupertino and a partnering international organization that is mutually beneficial. The first step towards establishing a Friendship Cities Designation is to complete this application. This application helps to identify proposed goals of the relationship, the supporting activities expected, and highlights the areas of interest strengths, or needs of each party. The proponents of establishing such a relationship must be a collaboration of a community organization (a Friendship City Committee) and an elected official of the participating international city. Who May Request a Friendship Cities Designation? Any established Friendship City Committee of the proponent Friendship City may submit an application. The most successful applications will have more than one sponsor and will represent multiple agencies or organizations. Processing and Approval of the Application This application will clearly state the rationale and the goals of the relationship and the mutual benefits in establishing this relationship. Once the designation is in place, all information in the application will be shared with the community and stakeholders upon request. Complete information for key contacts and authorizing individuals (the signing authorities) must be provided before the relationship can be finalized. In addition, the committee must have a Cupertino Councilmember sponsorship. Incomplete information will delay the process. A Friendship Cities Designation will be authorized for a period of two (2) years as outlined in the City of Cupertino’s “Policies and Guidelines on Sister Cities, Friendship Cities, and International Delegations ” and will be subject to all guidelines therein. 187 CUPERTINO FRIENDSHIP CITIES PROGRAM APPLICATION FOR DESIGNATION To be completed in English by the requesting organization: 1. Name and Country of the proposed Friendship City and the Friendship City Committee: Shenzhen City, People’s Republic of china, 2. Today’s date: November 18, 2016 3. Name of person requesting relationship: Windy He Title: President Affiliation: Cupertino-Shenzhen Friendship City Foundation 4. Address:8171 Brittany, Dublin, CA 94568 Email: winndyhe@msn.com Phone: 925-271-4768 5. City of Cupertino Sponsor: Mayor Barry Chang 6. Friendship City Elected Official Sponsor: Vice Mayor Ai, Xue Feng 7. RATIONALE: Please explain the rationale and focus of the requested Friendship Cities Designation. Describe why a Friendship City relationship would be beneficial to the City of Cupertino and your local community, organization, and city. Please outline the areas of mutual strength and interest for each of the participants. Limit this section to four pages and attach it to this application. Items to include:  Names, titles, and affiliations of those who will be involved at the proponent Friendship City and the Friendship City Committee. Be sure to include information for the proponent Friendship City’s Mayor as they will have the primary signing authority of the Friendship City.  Areas of mutual interest upon which the relationship will focus.  Opportunities for new activities and potential outcomes.  Benefits and measurable results that the City of Cupertino and proponent Friendship City can expect as a result of the establishment of such a relationship. See attached. 8. RESOURCES: Please address monetary and in-kind resources that may be necessary to conduct the activities of this relationship, how they are to be obtained, and from whom. If none , state “no funding required”. Please note that the City of Cupertino does not currently provide funding for Friendship Cities. Limit this section to one page and attach it to this application. See attached. 9. PROFILE: Please attach a brief profile of your city and Friendship City Committee including, but not limited to: background, location, nature, size, and relevant programs. Limit the profile to no more than two pages. 10. ADDITIONAL INFORMATION: Please add any additional information about this proposed relationship, the proponent Friendship City, and/or the Friendship City Committee that you wish to share. Limit additional information to no more than 2 pages. 188 1 Proposal for Friendship City between City of Cupertino, California, USA and Shenzhen City, People’s Republic of China (PRC) To: City of Cupertino From: Cupertino-Shenzhen Friendship City Foundation Date: November 18, 2016 Re: Establish Friendship City between City of Cupertino, CA, USA and City of Shenzhen, PRC Dear Cupertino City, We would like to establish a Friendship City Relationship between City of Cupertino, and City of Shenzhen. Cupertino-Shenzhen Friendship City Foundation: Cupertino-Shenzhen Friendship City Foundation is founded in Cupertino. The Foundation will apply for a non-profit organization status from IRS. The founding members of the Association are as below: President: Windy He Vice President: Lotus Gan Secretary: Lisa Tow Treasurer: Chris Wu Proposal for future events: a. Traffic improvement strategies exchange. b. Education and science exchange, c. Environmental protection , d. Smart City Conference between two cities. Funding: There is no funding requested from Cupertino city. We will do our own fundraising events. The Foundation will actively raise fund for potential activities in the future.  Benefits of a Friendship City agreement between the two cities: Both cities can learn from each other about the solution for environmental protections, housing crisis, traffic congestions. Areas of mutual interest: 1. Technology development 2. Protect the environment and the beauty of the surroundings 3. Cultural exchanges and mutual understanding 189 Shenzhen City Intro.: Shenzhen ([ʂə́nʈʂə̂n] ( listen); Chinese: 深圳[3]) is a major city in Guangdong Province, China. Shenzhen is located immediately north of Hong Kong Special Administrative Region. It holds sub-provincial administrative status, with powers slightly less than a province.[4] Shenzhen was a market town of 30,000 people on the route of the Kowloon–Canton Railway. That changed in 1979 when Shenzhen was promoted to city-status and in 1980 designated China’s first Special Economic Zone (SEZ).[5] According to the Government report for 2015, Shenzhen had transformed to a city with population of 10,778,900[6] and a metropolitan area population of over 18 million. Shenzhen was one of the fastest-growing cities in the world during the 1990s and the 2000s.[7] Shenzhen's population boom slowed down to less than one percent per year by 2013 as the manufacturing boom ebbed in favor of other industries.[8] Shenzhen's modern cityscape is the result of its vibrant economy made possible by rapid foreign investment since the institution of the policy of "reform and opening" establishment of the SEZ in late 1979.[9] Shenzhen is a major financial center in southern China. The city is home to the Shenzhen Stock Exchange as well as the headquarters of numerous high-tech companies.[10] Shenzhen ranks 19th in the 2016 edition of the Global Financial Centres Index published by the Z/Yen Group and Qatar Financial Centre Authority.[11] It also has one of the busiest container ports in the world.[12] 190 CITY OF CUPERTTINO FRIENDSHIP CITIES PROGRAM APPLICATION FOR DESIGNATION Instructions This application is to be completed by the Friendship City Committee of the requesting international city and submitted electronically to the Cupertino City Manager’s Office by emailing pio@cupertino.org. Background A Friendship Cities Designation is an established relationship between the City of Cupertino and a partnering international organization that is mutually beneficial. The first step towards establishing a Friendship Cities Designation is to complete this application. This application helps to identify proposed goals of the relationship, the supporting activities expected, and highlights the areas of interest strengths, or needs of each party. The proponents of establishing such a relationship must be a collaboration of a community organization (a Friendship City Committee) and an elected official of the participating international city. Who May Request a Friendship Cities Designation? Any established Friendship City Committee of the proponent Friendship City may submit an application. The most successful applications will have more than one sponsor and will represent multiple agencies or organizations. Processing and Approval of the Application This application will clearly state the rationale and the goals of the relationship and the mutual benefits in establishing this relationship. Once the designation is in place, all information in the application will be shared with the community and stakeholders upon request. Complete information for key contacts and authorizing individuals (the signing authorities) must be provided before the relationship can be finalized. In addition, the committee must have a Cupertino Councilmember sponsorship. Incomplete information will delay the process. A Friendship Cities Designation will be authorized for a period of two (2) years as outlined in the City of Cupertino’s “Policies and Guidelines on Sister Cities, Friendship Cities, and International Delegations ” and will be subject to all guidelines therein. 191 CUPERTINO FRIENDSHIP CITIES PROGRAM APPLICATION FOR DESIGNATION To be completed in English by the requesting organization: 1. Name and Country of the proposed Friendship City and the Friendship City Committee: _Cupertino-Suzhou Friendship City Foundation___________________________ 2. Today’s date: ______11/18/2016____________________ 3. Name of person requesting relationship:__________Roy Kong______________ Title: _____________President_______________________________________________ Affiliation: _____U.S. Suzhou Chamber of Commerce Vice president: Christie Wang, Jie Chen Secretary: David Lee Treasurer: Lucy Ku Member representatives: Chin Lin , Sandy Wang , Qin Zhou, Xinrong Xiong__ 4. Address: ____PO Box 1563, Cupertino, CA 95015_____ Email: _____roy.kong@svcangel.com______ Phone: ______________4086475818___________________________________________________ 5. City of Cupertino Sponsor: ______________Barry Chang________________________________ 6. Friendship City Elected Official Sponsor: __Mayor of Suzhou: Futian Qu_______________________ 7. RATIONALE: Please explain the rationale and focus of the requested Friendship Cities Designation. Describe why a Friendship City relationship would be beneficial to the City of Cupertino and your local community, organization, and city. Please outline the areas of mutual strength and interest for each of the participants. Limit this section to four pages and attach it to this application. Items to include:  Names, titles, and affiliations of those who will be involved at the proponent Friendship City and the Friendship City Committee. Be sure to include information for the proponent Friendship City’s Mayor as they will have the primary signing authority of the Friendship City.  Areas of mutual interest upon which the relationship will focus.  Opportunities for new activities and potential outcomes.  Benefits and measurable results that the City of Cupertino and proponent Friendship City can expect as a result of the establishment of such a relationship. 8. RESOURCES: Please address monetary and in-kind resources that may be necessary to conduct the activities of this relationship, how they are to be obtained, and from whom. If none, state “no funding required”. Please note that the City of Cupertino does not currently provide funding for Friendship Cities. Limit this section to one page and attach it to this application. 9. PROFILE: Please attach a brief profile of your city and Friendship City Committee including, but not limited to: background, location, nature, size, and relevant programs. Limit the profile to no more than two pages. 10. ADDITIONAL INFORMATION: Please add any additional information about this proposed 192 relationship, the proponent Friendship City, and/or the Friendship City Committee that you wish to share. Limit additional information to no more than 2 pages. 193 1 Proposal for Friendship City between City of Cupertino, California, USA and Suzhou City, Jiangsu Province, People’s Republic of China (PRC) To: City of Cupertino From: Cupertino-Suzhou Friendship City Foundation Date: November 18, 2016 Re: Establish Friendship City between City of Cupertino, CA, USA and City of Suzhou, Jiangsu Province, PRC Dear Cupertino City, We would like to establish a Friendship City Relationship between City of Cupertino, and City of Suzhou, Jiangsu Province. Cupertino-Suzhou City Foundation: Cupertino-Suzhou Friendship City Foundation is founded in Cupertino by a group of Cupertino residents and friends. The Foundation will apply for a non-profit organization status from IRS. The founding members of the Association are as below: President: Mingli Chu Vice President: Gloria You Secretary: Misty Zhang Treasurer: Jackie Chen Proposal for future events: a. Education and science exchange, b. Traffic improvement strategies exchange. c. Environmental protection , d. Smart City Conference between two cities. e. “Tell the story of your city” video competition. Funding: We are not asking any funding from Cupertino city. We will do our own fundraising events and ask community members to contribute. The Foundation will actively raise fund for potential activities in the future.  Benefits of a Friendship City agreement between the two cities: Both cities can learn from each other about the solution for environmental protections. . Areas of mutual interest: 1. Protect the environment and the beauty of the surroundings 2. Cultural exchanges and mutual understanding 194 Introduction of Suzhou City, Jiangsu Province, People’s Republic of China Suzhou, formerly romanized as Soochow, is a major city located in southeastern Jiangsu Province of East China, about 100 km (62 mi) northwest of Shanghai. It is a major economic center and focal point of trade and commerce, and the second largest city in the province after the capital Nanjing. The city is situated on the lower reaches of the Yangtze River and the shores of Lake Tai and belongs to the Yangtze River Delta region. Administratively, Suzhou is a prefecture-level city with a population of 4.33 million in its city proper, and a total resident population (as of 2013) of 10.58 million in its administrative area.[2][4] Its urban population grew at an unprecedented rate of 6.5% between 2000 and 2014, which is the highest among cities with more than 5 million people.[5][6] Founded in 514 BC, Suzhou has over 2,500 years of history, with an abundant display of relics and sites of historical interest. Around AD 100, during the Eastern Han Dynasty, it became one of the ten largest cities in the world mostly due to emigration from Northern China.[7][8] Since the 10th-century Song Dynasty, it has been an important commercial center of China. During the Ming and Qing Dynasty, Suzhou was a national economic, cultural, and commercial[9] center, as well as the largest non-capital city in the world, until the 1860 Taiping Rebellion.[10]When Li Hongzhang and Charles George Gordon recaptured the city three years later, Shanghai had already taken its predominant place in the nation.[11] Since major economic reforms began in 1978, Suzhou has become one of the fastest growing major cities in the world, with GDP growth rates of about 14% in the past 35 years.[2][12] With high life expectancy and per capita incomes, Suzhou's Human Development Index ratings is roughly comparable to a moderately developed country, making it one of the most highly developed and prosperous cities in China.[3] The city's canals, stone bridges, pagodas, and meticulously designed gardens have contributed to its status as one of the top tourist attractions in China. The Classical Gardens of Suzhou were added to the list of the UNESCO World Heritage Sites in 1997 and 2000. Suzhou is often dubbed the "Venice of the East" or "Venice of China".[13][14][15] 195 CITY OF CUPERTTINO FRIENDSHIP CITIES PROGRAM APPLICATION FOR DESIGNATION Instructions This application is to be completed by the Friendship City Committee of the requesting international city and submitted electronically to the Cupertino City Manager’s Office by emailing pio@cupertino.org. Background A Friendship Cities Designation is an established relationship between the City of Cupertino and a partnering international organization that is mutually beneficial. The first step towards establishing a Friendship Cities Designation is to complete this application. This application helps to identify proposed goals of the relationship, the supporting activities expected, and highlights the areas of interest strengths, or needs of each party. The proponents of establishing such a relationship must be a collaboration of a community organization (a Friendship City Committee) and an elected official of the participating international city. Who May Request a Friendship Cities Designation? Any established Friendship City Committee of the proponent Friendship City may submit an application. The most successful applications will have more than one sponsor and will represent multiple agencies or organizations. Processing and Approval of the Application This application will clearly state the rationale and the goals of the relationship and the mutual benefits in establishing this relationship. Once the designation is in place, all information in the application will be shared with the community and stakeholders upon request. Complete information for key contacts and authorizing individuals (the signing authorities) must be provided before the relationship can be finalized. In addition, the committee must have a Cupertino Councilmember sponsorship. Incomplete information will delay the process. A Friendship Cities Designation will be authorized for a period of two (2) years as outlined in the City of Cupertino’s “Policies and Guidelines on Sister Cities, Friendship Cities, and International Delegations” and will be subject to all guidelines therein. 196 CUPERTINO FRIENDSHIP CITIES PROGRAM APPLICATION FOR DESIGNATION To be completed in English by the requesting organization: 1. Name and Country of the proposed Friendship City and the Friendship City Committee: Cupertino-Wuhan Friendship City Association 2. Today’s date: 11-18-2016 3. Name of person requesting relationship: David Lee Title: President _ 4. Address: 10350 San Fernando Ave., Cupertino, CA 95014 Email: davidleemail12@gmail.com Phone: 408-513-5855 5. City of Cupertino Sponsor: Barry Chang 6. Friendship City Elected Official Sponsor: Mayor of Wuhan: Wan, Yong 7. RATIONALE: Please explain the rationale and focus of the requested Friendship Cities Designation. Describe why a Friendship City relationship would be beneficial to the City of Cupertino and your local community, organization, and city. Please outline the areas of mutual strength and interest for each of the participants. Limit this section to four pages and attach it to this application. Items to include: • Names, titles, and affiliations of those who will be involved at the proponent Friendship City and the Friendship City Committee. Be sure to include information for the proponent Friendship City’s Mayor as they will have the primary signing authority of the Friendship City. • Areas of mutual interest upon which the relationship will focus. • Opportunities for new activities and potential outcomes. • Benefits and measurable results that the City of Cupertino and proponent Friendship City can expect as a result of the establishment of such a relationship. 8. RESOURCES: Please address monetary and in-kind resources that may be necessary to conduct the activities of this relationship, how they are to be obtained, and from whom. If none, state “no funding required”. Please note that the City of Cupertino does not currently provide funding for Friendship Cities. Limit this section to one page and attach it to this application. 9. PROFILE: Please attach a brief profile of your city and Friendship City Committee including, but not limited to: background, location, nature, size, and relevant programs. Limit the profile to no more than two pages. 10. ADDITIONAL INFORMATION: Please add any additional information about this proposed relationship, the proponent Friendship City, and/or the Friendship City Committee that you wish to share. Limit additional information to no more than 2 pages. 197 1 Proposal for Friendship City between City of Cupertino, California, USA and Wuhan City, Hubei Province, People’s Republic of China (PRC) To: City of Cupertino From: Cupertino-Wuhan Friendship City Association Date: November 18, 2016 Re: Establish Friendship City between City of Cupertino, CA, USA and Wuhan City, Hubei Province, PRC Dear Cupertino City, We are applying to establish a Friendship City Relationship between City of Cupertino, and City of Wuhan. Cupertino-Wuhan Friendship City Association: Cupertino-Wuhan Friendship City Association is founded in Cupertino. The Foundation will apply for a non-profit organization status from IRS. The founding members of the Association are as below: President: David Lee Vice President: Roy Kong Secretary: Jie Chen Treasurer: Sandy Wang Proposal for future events: a. Traffic improvement strategies exchange. b. Education and science exchange, c. Smart City Conference between two cities. Funding: We will fund the event through our fundraising effort. The Association will not ask City of Cupertino for funding in the future.  Benefits of a Friendship City agreement between the two cities: Both cities can share the experience for solving housing crisis and traffic congestions. Areas of mutual interest: 1. Housing crisis, 2. Traffic congestion relief 3. Cultural exchanges. 198 Wuhan City info.: Wuhan is the capital of Hubei province, China, and is the most populous city in Central China. It lies in the eastern Jianghan Plain at the intersection of the middle reaches of the Yangtze and Han rivers. Arising out of the conglomeration of three cities, Wuchang, Hankou, and Hanyang, Wuhan is known as "Jiusheng Tongqu (the nine provinces' leading thoroughfare)"; it is a major transportation hub, with dozens of railways, roads and expressways passing through the city and connecting to major cities in Mainland China. Because of its key role in domestic transportation, Wuhan was sometimes referred to as the "Chicago of China" by foreign sources. Holding sub-provincial status,[8] Wuhan is recognized as the political, economic, financial, cultural, educational and transportation center of central China.[4] The city of Wuhan, first termed as such in 1927, has a population of 10,607,700 people as of 2015.[9] In the 1920s, Wuhan was the national capital of a leftist Kuomintang (KMT) government led by Wang Jingwei in opposition to Chiang Kai-shek,[10] as well as wartime capital in 1937.[11][12] At the 2010 census, its built-up (or metro) area made of 8 out of 10 urban districts (all but Xinzhou and Hannan not yet conurbated) was home to 8,821,658 inhabitants.[ 199 200 201 202 203 CUPERTINO FRIENDSHIP CITIES PROGRAM APPLICATION FOR DESIGNATION To be completed in English by the requesting organization: 1. Name and Country of the proposed Friendship City and the Friendship City Committee: ________________________________________________________________________ 2. Today’s date: __________________________ 3. Name of person requesting relationship:______________________________________________ Title: _________________________________________________________________________________ Affiliation: ____________________________________________________________________________ Address: ______________________________________________________________________________ Email: ________________________________________________________________________________ Phone: ________________________________________________________________________________ 4. City of Cupertino Sponsor: __________________________________________________________ 5. Friendship City Elected Official Sponsor: ____________________________________________________ 6. RATIONALE: Please explain the rationale and focus of the requested Friendship Cities Designation. Describe why a Friendship City relationship would be beneficial to the City of Cupertino and your local community, organization, and city. Please outline the areas of mutual strength and interest for each of the participants. Limit this section to four pages and attach it to this application. Items to include: • Names, titles, and affiliations of those who will be involved at the proponent Friendship City and the Friendship City Committee. Be sure to include information for the proponent Friendship City’s Mayor as they will have the primary signing authority of the Friendship City. • Areas of mutual interest upon which the relationship will focus. • Opportunities for new activities and potential outcomes. • Benefits and measurable results that the City of Cupertino and proponent Friendship City can expect as a result of the establishment of such a relationship. 7. RESOURCES: Please address monetary and in-kind resources that may be necessary to conduct the activities of this relationship, how they are to be obtained, and from whom. If none, state “no funding required”. Please note that the City of Cupertino does not currently provide funding for Friendship Cities. Limit this section to one page and attach it to this application. 8. PROFILE: Please attach a brief profile of your city and Friendship City Committee including, but not limited to: background, location, nature, size, and relevant programs. Limit the profile to no more than two pages. 9. ADDITIONAL INFORMATION: Please add any additional information about this proposed relationship, the proponent Friendship City, and/or the Friendship City Committee that you wish to share. Limit additional information to no more than 2 pages. 204 Cupertino-Zhaoqing Friendship City Application Page 1 of 2 Cupertino-Zhaoqing Friendship City Committee 6. RATIONALE: Please explain the rationale and focus of the requested Friendship Cities Designation. Describe why a Friendship City relationship would be beneficial to the City of Cupertino and your local community, organization, and city. Please outline the areas of mutual strength and interest for each of the participants. Limit this section to four pages and attach it to this application. Items to include: • Names, titles, and affiliations of those who will be involved at the proponent Friendship City and the Friendship City Committee. Be sure to include information for the proponent Friendship City’s Mayor as they will have the primary signing authority of the Friendship City. • Areas of mutual interest upon which the relationship will focus. • Opportunities for new activities and potential outcomes. • Benefits and measurable results that the City of Cupertino and proponent Friendship City can expect as a result of the establishment of such a relationship. The proponent of the friendship city program at Zhaoqing is Mayor CHEN Xudong of Zhaoqing. The leadership of the Cupertino-Zhaoqing Friendship City Friendship Committee (The Committee) consists of: President: Jerry Liu. Research Engineering Manager at HP Labs. Vice President: Art Cohen. Owner of Bluelight Cinemas. Treasurer: John Liu, Cupertino Resident. Secretary: Jethro Chan, Cupertino Resident. The Committee foresees three areas of mutual benefits from a friendship city program: Cultural Exchanges: The Committee will facilitate cultural exchange between the residents of the two cities. The Zhaoqing area encompasses the Xinghu Lake Scenic Area, consisting of the Seven Star Crags and Dinghu Mountain scenic spots, and is the most famous tourist spot in the Guangdong Province. Zhaoqing itself has a lot of history significance, Figure 1 Seven Star Crags overlooking Zhaoqing 205 Cupertino-Zhaoqing Friendship City Application Page 2 of 2 being one of the most important cities in southern China before the Qing dynasty. Educational Exchanges: The Committee will connect students from Cupertino high schools and De Anza College students to Zhaoqing students of similar age ranges so they can exchange information about their daily lives and improve understanding of the two cultures. The Committee will also sponsor small groups of students from both cities to visit the other city with the support of host families. Business Exchanges: The Committee will provide businesses from the two cities to identify areas of potential mutual collaboration. The Zhaoqing government is interested in investing in high-tech industries and has been encouraging industrial development including the formation of Guangdong Zhaoqing High-tech Industrial Development Zone, with an area of 42 square miles that consists of two industrial parks, Sanrong Industrial Park and Dawang Industrial Park. Dawang is facilitated as an export processing and trade zone. 7. RESOURCES: Please address monetary and in-kind resources that may be necessary to conduct the activities of this relationship, how they are to be obtained, and from whom. If none, state “no funding required”. Please note that the City of Cupertino does not currently provide funding for Friendship Cities. Limit this section to one page and attach it to this application. No funding is currently required for the operation of the friendship city relationship. For future activities, the Committee has a fund raising target of $50,000 through donations from the residents and the business communities from both cities. No funding or resources will be needed from the City of Cupertino. 8. PROFILE: Please attach a brief profile of your city and Friendship City Committee including, but not limited to: background, location, nature, size, and relevant programs. Limit the profile to no more than two pages. Zhaoqing is a city of almost 4 million residents in the Guangdong province of China. Zhaoqing is located about 70 miles northwest of Guangzhou, in the west Pearl River Delta. It lies on the north shores of the Xi River, which flows from west to east. Numerous rice paddies and aquaculture ponds are found on the outskirts of the city. A plain area lies to the south and west of Zhaoqing, with mountains to the east and north. The primary industries including mining, agriculture, and tourism. Zhaoqing has been designated as a national tourist destination in China, attracting of hordes of travellers from across the globe each year. Zhaoqing is known throughout China for its green hills and limestone crags. Zhaoqing contains Zhaoqing University and is also home to a campus of Guangdong University of Finance. There is also Zhaoqing Foreign Language College, a Canadian- American School and numerous other schools including those specializing in foreign language study. Zhaoqing is one of the ancient cities in the history of China, first being named Gaoyao county in the Han Dynasty, before being changed to Duanzhou, Sihui and Gaoyao. It was finally renamed Zhaoqing in the Qing dynasty. Zhaoqing was one of the first places in inland China to be visited by a foreigner, the Jesuit priest Matteo Ricci who settled there in the sixteenth century. Figure 2 Factory area within the Zhaoqing High-Tech Industry Development Zone Figure 3 Top-rated hotel in Zhaoqing, the OYC Hotel Figure 4 Zhaoqing University 206 CITY OF CUPERTTINO FRIENDSHIP CITIES PROGRAM APPLICATION FOR DESIGNATION Instructions This application is to be completed by the Friendship City Committee of the requesting international city and submitted electronically to the Cupertino City Manager’s Office by emailing pio@cupertino.org. Background A Friendship Cities Designation is an established relationship between the City of Cupertino and a partnering international organization that is mutually beneficial. The first step towards establishing a Friendship Cities Designation is to complete this application. This application helps to identify proposed goals of the relationship, the supporting activities expected, and highlights the areas of interest strengths, or needs of each party. The proponents of establishing such a relationship must be a collaboration of a community organization (a Friendship City Committee) and an elected official of the participating international city. Who May Request a Friendship Cities Designation? Any established Friendship City Committee of the proponent Friendship City may submit an application. The most successful applications will have more than one sponsor and will represent multiple agencies or organizations. Processing and Approval of the Application This application will clearly state the rationale and the goals of the relationship and the mutual benefits in establishing this relationship. Once the designation is in place, all information in the application will be shared with the community and stakeholders upon request. Complete information for key contacts and authorizing individuals (the signing authorities) must be provided before the relationship can be finalized. In addition, the committee must have a Cupertino Councilmember sponsorship. Incomplete information will delay the process. A Friendship Cities Designation will be authorized for a period of two (2) years as outlined in the City of Cupertino’s “Policies and Guidelines on Sister Cities, Friendship Cities, and International Delegations” and will be subject to all guidelines therein. 207 CUPERTINO FRIENDSHIP CITIES PROGRAM APPLICATION FOR DESIGNATION To be completed in English by the requesting organization: 1. Name and Country of the proposed Friendship City and the Friendship City Committee: ________________________________________________________________________ 2. Today’s date: __________________________ 3. Name of person requesting relationship:______________________________________________ Title: _________________________________________________________________________________ Affiliation: ____________________________________________________________________________ Address: ______________________________________________________________________________ Email: ________________________________________________________________________________ Phone: ________________________________________________________________________________ 4. City of Cupertino Sponsor: __________________________________________________________ 5. Friendship City Elected Official Sponsor: ____________________________________________________ 6. RATIONALE: Please explain the rationale and focus of the requested Friendship Cities Designation. Describe why a Friendship City relationship would be beneficial to the City of Cupertino and your local community, organization, and city. Please outline the areas of mutual strength and interest for each of the participants. Limit this section to four pages and attach it to this application. Items to include: • Names, titles, and affiliations of those who will be involved at the proponent Friendship City and the Friendship City Committee. Be sure to include information for the proponent Friendship City’s Mayor as they will have the primary signing authority of the Friendship City. • Areas of mutual interest upon which the relationship will focus. • Opportunities for new activities and potential outcomes. • Benefits and measurable results that the City of Cupertino and proponent Friendship City can expect as a result of the establishment of such a relationship. 7. RESOURCES: Please address monetary and in-kind resources that may be necessary to conduct the activities of this relationship, how they are to be obtained, and from whom. If none, state “no funding required”. Please note that the City of Cupertino does not currently provide funding for Friendship Cities. Limit this section to one page and attach it to this application. 8. PROFILE: Please attach a brief profile of your city and Friendship City Committee including, but not limited to: background, location, nature, size, and relevant programs. Limit the profile to no more than two pages. 9. ADDITIONAL INFORMATION: Please add any additional information about this proposed relationship, the proponent Friendship City, and/or the Friendship City Committee that you wish to share. Limit additional information to no more than 2 pages. 208 Cupertino-Guro Friendship City Application Page 1 of 3 Cupertino-Guro Friendship City Committee 6. RATIONALE: Please explain the rationale and focus of the requested Friendship Cities Designation. Describe why a Friendship City relationship would be beneficial to the City of Cupertino and your local community, organization, and city. Please outline the areas of mutual strength and interest for each of the participants. Limit this section to four pages and attach it to this application. Items to include: • Names, titles, and affiliations of those who will be involved at the proponent Friendship City and the Friendship City Committee. Be sure to include information for the proponent Friendship City’s Mayor as they will have the primary signing authority of the Friendship City. • Areas of mutual interest upon which the relationship will focus. • Opportunities for new activities and potential outcomes. • Benefits and measurable results that the City of Cupertino and proponent Friendship City can expect as a result of the establishment of such a relationship. The leadership of the Cupertino-Guro Friendship City Friendship Committee consists of: Jina Young Kim: president VP: Stephanie Xu Treasurer: Patrick Ahrens The Committee foresees three areas of mutual benefits from a friendship city program: Cultural Exchanges: The city of Guro has a rich culture to offer exchanges with the city of Cupertino. The Guro Arts Valley Theater, a cultural arts center in the southwest area of Seoul, has a performance area, seating capacity of 579, as well as having a gallery, a small hall, a kids’ book cafe, and a cafeteria. In this sense, the place is regarded as an integrated cultural space, and symbolizes the tangible progress and development that has taken place in Guro. It is also a representative cultural arts center that gains a lot of attention from residents from other regions. Educational Exchanges: Collaboration between Cupertino’s high schools’s and De Anza College as well as Guro, Korea’s education institutions stands to benefit greatly from an educational exchange program. Guro District has a total of 83 education facilities: four universities, 11 high schools, 13 junior high schools, 23 elementary schools and 33 kindergartens. Furthermore, there are 33 public and private libraries with more than 420,000 books. Dongyang Technical College provides education with a specialized curriculum focused mainly on high-tech practical training courses and supplies manpower to the companies located at the Guro Digital Industrial Complex. 209 Cupertino-Guro Friendship City Application Page 2 of 3 Sungkonghoe University trains students who will work for public welfare, social services, human rights and peace of the world. It is also training students to work in industrial fields. Business Exchanges: Guro is home to the biggest IT foundation in Korea, making it by far the biggest industry closer in the nation. The region has changed from a center of labor intensive industry to a center of IT, cutting edge technology. 7. RESOURCES: Please address monetary and in-kind resources that may be necessary to conduct the activities of this relationship, how they are to be obtained, and from whom. If none, state “no funding required”. Please note that the City of Cupertino does not currently provide funding for Friendship Cities. Limit this section to one page and attach it to this application. No funding is currently required for the operation of the relationship. For future activities, the Committee has a fund raising target of $50,000 through donations from the communities of both cities. No funding or resources will be needed from the City of Cupertino. 8. PROFILE: Please attach a brief profile of your city and Friendship City Committee including, but not limited to: background, location, nature, size, and relevant programs. Limit the profile to no more than two pages. Guro District (Guro-gu) is a district of Seoul, South Korea, which was separated from Yeongdeungpo District on April 1, 1980. Located in the southwestern part of the city, where besides Yangcheon District and Geumcheon District Guro District has an important position as a transport link which contains railroads, land routes from the rest of Seoul to the south of the country. The Gyeongbu and Gyeongin railway lines connect Seoul to Busan and Incheon. In addition, Seoul Metropolitan Subway lines 1, 2, and 7, and major highways intersect in Guro District. The name Guro originates from the legend that nine (Korean: gu) old men (Korean: ro) enjoyed longevity in the district. A digital industrial complex is located in Guro District. The Guro Digital Industrial Complex, which played a leading industrial role mainly with textile manufacturing, dressmaking and other labour-intensive industries in 1967, has been rapidly changed into an IT industrial complex. This complex played a pivotal role in the economic growth of the South Korea's development era, referred to as the "Miracle on the Han River", and also contributed 10 percent of national export in the 1970s. Twenty-one percent of the total area of Guro District is a restricted zone to be used as a greenbelt with the only arboretum in Seoul. The zone is changing into a lively district as large labour- intensive factories are moving from the area and the council is developing what it terms its four zones. An "e-government" system based on this hosted the international e-participation forum[2] on February 7–9, 2007, with the participation of more than thirty-seven countries. The forum was launched with the theme "Promoting Democracy and Regional Development" and twenty-five mayors including André Santini (Issy-les-Moulineaux, France), Kevin Foy (Chapel Hill, US), 210 Cupertino-Guro Friendship City Application Page 3 of 3 Apirak Kosayothin (Bangkok, Thailand), Uvais Mohamed Emthiyas (Colombo, Sri Lanka), and world experts such as Dr William H. Dutton (Director of Oxford Internet Institute at the University of Oxford, UK) and Dr Ari-Veiko Anttiroiko (professor at the University of Tampere, Finland) participated in the forum. The Guro Declaration,[3] adopted during the forum, aims to set up a portal site for e-government development and to establish a concrete project in order to bridge the digital divide among the world's cities. This practice has been recognised for providing a new important step in the development of e-democracy. The e-participation forum was a key factor for Guro to play the leading role in bridging the digital divide among cities, to provide I.T. enterprises located in Guro Digital Industrial Complex the opportunity to launch into the international market, to improve its image and become a global leader to concrete e-democracy. Source: Wikipedia: https://en.wikipedia.org/wiki/Guro_District,_Seoul 211 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2175 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:11/15/2016 City Council On agenda:Final action:12/6/2016 Title:Subject: Enter into a subordination agreement with River City Bank and Joint Powers Authority members of the Silicon Valley Clean Energy Authority Sponsors: Indexes: Code sections: Attachments:Staff Report A - Subordination Agreement Action ByDate Action ResultVer. City Council12/6/20161 Subject:EnterintoasubordinationagreementwithRiverCityBankandJointPowers Authority members of the Silicon Valley Clean Energy Authority AuthorizetheCityManagertosignthesubordinationagreementwithRiverCityBankand Joint Powers Authority members of the Silicon Valley Clean Energy Authority CITY OF CUPERTINO Printed on 11/29/2016Page 1 of 1 powered by Legistar™212 1 CITY MANAGER’S OFFICE CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3212 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: December 6, 2016 Subject Enter into a subordination agreement with River City Bank and Joint Powers Authority members of the Silicon Valley Clean Energy Authority. Recommended Action Authorize the City Manager to execute the subordination agreement with River City Bank and Joint Powers Authority members of the Silicon Valley Clean Energy Authority. Background On December 1, 2015, the City of Cupertino joined the Silicon Valley Clean Energy Authority (SVCEA) to fulfill one of its goals identified in the City’s Climate Action Plan to reduce targeted emissions by 2020. The SVCEA is a Joint Powers Authority organized to study, promote, conduct, operate and manage clean energy and energy- related climate change programs. The SVCEA will operate a Community Choice Energy (CCE) program to procure or generate electrical power on behalf of its participating communities. SVCEA’s members include the cities of Campbell, Gilroy, Los Altos, Los Altos Hill, Los Gatos, Monte Sereno, Morgan Hill, Mountain View, Saratoga, Sunnyvale, and the unincorporated areas of the County of Santa Clara. As a member of the SVCEA, the City has contributed $520,000 toward initial costs. SVCEA identified the need for up to $2.0 million in a non-revolving line of credit (NRLOC) for prelaunch operations and up to $18.0 million a revolving line of credit (RLOC) to fund reserves and negative cash flow associated with power supply acquisition. On May 25, 2016, a Request for Proposal (RFP) was issued by the City Mountain View with the assistance from SVCEA consultants, the City of Sunnyvale, the City of Cupertino and the County of Santa Clara (County) for credit and banking services on behalf of SVCEA. Five proposals were received on July 5. A committee consisting of the SVCEA CEO, consultants and representatives from the City of Mountain View, and Sunnyvale, Cupertino and Morgan Hill (Committee) reviewed and evaluated the proposals and selected River City Bank (RCB) as the credit provider. 213 2 Selecting RCB was a unanimous recommendation by the Committee based on the RCB credit proposal. On November 9, 2016, the SVCEA approved the RCB proposal that included the form of the subordination agreement and: 1. Up to $18.0 million LOC with no guarantee required 2. Competitive rates 3. Knowledge and expertise in the CCE industry Description RCB’s terms demonstrate its commitment to the success of SVCEA and will provide credit services as follows:  RLOC - Up to $18.0 million, with no guarantee or collateral requirement, to fund lockbox collateral pre-launch and provide working capital after launch.  NRLOC - Up to $2.0 million, requires a full guarantee or collateral and is provided for working capital prior to launch. To our knowledge, RLOC to a CCE entity without a guarantee is unprecedented to date. From the RLOC, a Debt Service Reserve Account will be funded in an amount not less than $1.9 million as security for the payment and performance by SVCEA. The RLOC is for a term of one year, and could be converted to a term loan of up to five years. Interest is based on a variable rate tied to the one month LIBOR rate and is payable monthly, no principal payment is required until termination. The NRLOC requires 100% guarantee, which is being provided by the cities of Sunnyvale, Mountain View and Gilroy (chartered cities) and the County, proportionate to their voting shares. The NRLOC is for a term of one year and may be requested to be extended for up to three months. Interest is based on a variable rate tied to the one month LIBOR rate and is payable monthly, no principal payment is required until termination. Both credit facilities are required to be repaid prior to any payments being made on initial costs contributed by the joint powers authority member agencies. This requirement is fulfilled through execution of the attached subordination agreement with River City Bank and joint powers authority members of the Silicon Valley Clean Energy Authority. Although the subordination agreement applies to each member city individually, all members must execute a subordination agreement of its initial costs, or the SCVEA will not fulfill its terms of the RCB’s financing agreement. Fiscal Impact 214 3 Cupertino does not anticipate any fiscal impact based on the financial projections of SVCEA. SVCEA reported to its board that it anticipates repayment of both the RLOC and the NRLOC within 12 months of launch. SVCEA has four years to repay initial costs contributed by the joint power authority members. Repayment of initial costs is still projected to meet this timeframe. Prepared by: Lisa Taitano, Finance Manager Reviewed by: Kristina Alfaro, Administrative Services Director Approved for Submission by: David Brandt, City Manager Attachments: A: Subordination Agreement 215 {2158044.DOCX;} Exhibit A Form of Subordination Agreement SUBORDINATION AGREEMENT River City Bank (the “Lender”) and the other parties signatories hereto (each, a “Subordinated Creditor” and collectively, the “Subordinated Creditors”), agree, effective November 15, 2016, as follows: Section 1. Background and Purpose. 1.1 The Lender is making loans to Silicon Valley Clean Energy Authority, a public agency formed under the provisions of the Joint Exercise of Powers Act of the State of California, Government Code Section 6500 et. seq. (the “Obligor”), pursuant to that certain Credit Agreement dated as of the date hereof (as modified, amended, restated or replaced from time to time, the “Senior Loan Agreement”). The loans are evidenced by a Non-Revolving Promissory Note in the original principal balance of $2,000,000 (“Non-Revolving Note”) and a Revolving Credit Promissory Note in the original principal balance of $18,000,000 (together with the Non-Revolving Note, the “Senior Notes”). The Obligor is currently indebted to the Subordinated Creditors as set forth on Exhibit A attached hereto and incorporated herein (as the same may be amended, modified or refinanced, “Subordinated Debt”). The Lender and the Subordinated Creditors desire to enter into this Agreement to effectuate the subordination of the Subordinated Debt to the Senior Debt (as defined below). Capitalized terms used, but not otherwise defined, in this Subordination Agreement shall have the meanings ascribed to them in the Senior Loan Agreement. Section 2. Subordination. 2.1 Each Subordinated Creditor hereby irrevocably subordinates, in accordance with the terms hereof, the payment and performance of the Subordinated Debt by the Obligor to it, to the prior payment and performance in full of all of the obligations specified in the Senior Loan Agreement and the Senior Notes (collectively, the “Senior Debt”). Each Subordinated Creditor acknowledges that it has been represented by counsel in connection with the transactions that are the subject of this Subordination Agreement. This Subordination Agreement shall be effective as to a Subordinated Creditor when such Subordinated Creditor signs this Subordination Agreement and execution by all Subordinated Creditors is not a condition to such effectiveness. 2.2 Under no circumstances will the Senior Debt be deemed to have been paid in full unless and until such time as, and when used in this Subordination Agreement with respect to the Senior Debt, the words “paid in full,” “payment in full,” and similar phrases shall mean that, the Lender has received payment, in immediately available funds, of 100% of all 216 {2158044.DOCX;} outstanding Senior Debt, and all of the Lender’s obligations to extend credit under the Senior Loan Agreement have terminated. 2.3 The Subordinated Debt is subordinated in right of payment to the Senior Debt in accordance with this Agreement. Each Subordinated Creditor agrees to make appropriate entries in its books and records and stamp all Subordinated Debt documents evidencing the Subordinated Debt with the following legend: “The indebtedness evidenced by this instrument is subordinated to the prior payment in full of the Senior Debt (as defined in the Subordination Agreement hereinafter referred to) pursuant to, and to the extent provided in, the Subordination Agreement effective as of November 15, 2016 by the maker hereof and payee named herein in favor of River City Bank.” Section 3. Payments. 3.1 Until the payment in full of the Senior Debt, without the prior written consent of the Lender (which consent the Lender may refuse to give for any or no reason), under no circumstances will any Subordinated Creditor, directly or indirectly, take any action to enforce payment of or to collect the whole or any part of the Subordinated Debt or enforce any of the rights and remedies available to the Subordinated Creditor, other than in the manner and to the extent permitted by Section 4 hereof, or ask, demand, take or receive any collateral, mortgages or other security from the Obligor in respect of the Subordinated Debt. Any amounts paid by the Obligor to a Subordinated Creditor in violation of the terms of this Subordination Agreement shall be held by such Subordinated Creditor in trust and promptly paid over to the Lender for application to the Senior Debt in accordance with the Senior Loan Agreement. 3.2 Notwithstanding anything to the contrary contained in this Subordination Agreement, each Subordinated Creditor agrees that it will not, without the Lender’s prior written consent (which the Lender may refuse to give for any or no reason), directly or indirectly permit the modification or amendment of any of the terms or provisions, as they exist on the date hereof, of the note reflecting the Subordinated Debt (“Subordinated Note”), to the extent that any such modification or amendment would (a) result in any increase in the amount of the Subordinated Debt, (b) increase the amount, or accelerate the due date, of any payment or distribution in respect of the Subordinated Debt. Section 4. Allowable Payments. 4.1 Subject to other applicable provisions of this Subordination Agreement, including, without limitation, those contained in Section 5 hereof, without the Lender’s prior written consent, the Obligor may not make, and a Subordinated Creditor may not accept from the Obligor, any payment in respect of the Subordinated Debt. 4.2 Notwithstanding anything to the contrary in this Subordination Agreement, the Obligor may set-off against amounts payable in respect of Subordinated Debt under the circumstances set forth or referenced in any documentation of such Subordinated Debt. 217 {2158044.DOCX;} Section 5. Readjustment. Each Subordinated Creditor further agrees that, upon any distribution of the assets or readjustment of the indebtedness of the Obligor, whether by reason of liquidation, composition, bankruptcy, arrangement, receivership, assignment for the benefit of creditors, or any other action or proceeding involving the readjustment of all or any of the Subordinated Debt, or the application of the property of the Obligor to the payment or liquidation thereof, the Lender, in any such instance, shall be entitled to receive payment in full of the Senior Debt prior to the payment of all or any part of the Subordinated Debt. Section 6. Bankruptcy Issues. To the extent that the Obligor makes a payment to the Lender, which payment(s) (or any part thereof) subsequently are voided, invalidated, declared to be fraudulent or preferential, set aside, or required to be repaid to a trustee, receiver, or any other person or entity pursuant to Chapter 11 of Title 11 of the United States Code (11 U.S.C. § 101 et seq.) (the “Bankruptcy Code”), any other bankruptcy act, state or federal law, common law or equitable cause (“Insolvency Law”), then, to the extent any such payment(s) or proceeds are repaid by the Lender, the Senior Debt (or the part that was intended to be satisfied) will be revived for all purposes of this Subordination Agreement and will continue in full force and effect, as if such payment or proceeds had not been received by the Lender. Section 7. Waivers. Each Subordinated Creditor hereby waives until the Senior Debt is paid in full any and all rights at law or in equity to subrogation, reimbursement or set off or any other rights which such Subordinated Creditor may have or hereafter acquire against the Obligor in connection with or as a result of such Subordinated Creditor’s execution, delivery and/or performance of this Subordination Agreement. Section 8. Attorney-In-Fact. Each Subordinated Creditor irrevocably appoints the Lender as its attorney-in-fact, with full power of substitution, in either the Lender’s name or such Subordinated Creditor’s name, to do the following (but the Lender shall have no obligation to do so): (a) endorse and collect all checks, drafts, other payment orders and instruments representing or included in, any payment, dividend or distribution relating to, the Subordinated Debt or any Collateral securing the Subordinated Debt; (b) take any action to enforce, collect or compromise any of the Subordinated Debt; (c) exercise any other right, remedy, privilege or option of such Subordinated Creditor pertaining to any Subordinated Debt or Subordinated Debt documents; (d) take any actions or institute any proceedings that the Lender determines to be necessary or appropriate to collect or preserve the Subordinated Debt or any Collateral for the Subordinated Debt; (e) execute in the name of or otherwise authenticate on behalf of such Subordinated Creditor any record reasonably believed necessary or appropriate by the Lender for compliance with laws, rules or regulations applicable to any Subordinated Debt or any Collateral for the Subordinated Debt, or in connection with exercising the Lender’s rights under this Agreement; and (f) execute and file claims, proofs of claim or other documents, and to take any other action regarding all or any part of the Subordinated Debt necessary or appropriate to insure payment to and receipt by the Lender of all payments, dividends and other distributions on account of the Subordinated Debt, instruments evidencing the Subordinated Debt, or any Collateral for the Subordinated Debt. This appointment is irrevocable and coupled with an interest and shall survive the dissolution or disability of such Subordinated Creditor. Notwithstanding the foregoing, the Lender shall not be liable to any Subordinated Creditor for any failure (i) to prove the existence, amount, or circumstances of the Subordinated Debt; (ii) to exercise any right 218 {2158044.DOCX;} related to the Subordinated Debt; or (iii) to collect any sums payable on or distributions attributable to, the Subordinated Debt. Section 9. Representations and Warranties. Each Subordinated Creditor represents and warrants to the Lender as follows: (a) the execution, delivery and performance of this Agreement and each of the Subordinated Debt documents now outstanding (true and complete copies of which have been furnished to the Lender) have been duly authorized by all necessary action, are within the power and authority of the Subordinated Creditor and do not and will not (i) contravene the articles, charter, bylaws, partnership agreement, operating agreement, regulations or other organic documents, if any, establishing or governing such Subordinated Creditor, any applicable law or governmental regulation or any contractual restriction binding on or affecting such Subordinated Creditor or any of their respective properties, (ii) result in or require the creation of any lien upon or with respect to any of such Subordinated Creditor’s properties or (iii) violate the rights of any person or entity; (b) this Agreement and each of the Subordinated Debt documents are legal, valid and binding obligations of such Subordinated Creditor, enforceable against such Subordinated Creditor in accordance with their respective terms except as limited by bankruptcy, insolvency or other laws of general application relating to the enforcement of creditors’ rights and by general equitable principles; (c) there exists no default, event of default, or event which with the passage of time, the giving of notice or both may result in a default or event of default under the Subordinated Debt or any Subordinated Debt documents or any event or occurrence that gives a Subordinated Creditor the right to terminate a commitment, refuse to make an advance, accelerate a maturity with or without notice or the passage of time; and (d) if such Subordinated Creditor is an entity, that entity is and will remain duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation, organization or formation and in good standing in the jurisdictions in which it is doing business. Each Subordinated Creditor further represents and warrants to the Lender as follows: (A) such Subordinated Creditor owns and holds the Subordinated Debt now outstanding free and clear of any lien that has not been disclosed in writing by such Subordinated Creditor to the Lender; (B) such Subordinated Creditor is now solvent, the execution, delivery and performance of this Agreement will benefit such Subordinated Creditor directly or indirectly and such Subordinated Creditor has and will receive fair and reasonably equivalent value for the obligations undertaken in this Agreement; (C) such Subordinated Creditor has (1) without reliance on the Lender or any information received from the Lender and based upon the documents and information such Subordinated Creditor deems appropriate, made an independent investigation of the transactions contemplated by this Agreement and the Borrower, the Borrower’s business, assets, operations, prospects and condition, financial or otherwise, and any circumstances that may bear upon those transactions, the Borrower or the obligations and risks undertaken in this Agreement with respect to the Senior Debt; (2) adequate means to obtain from the Borrower on a continuing basis information concerning the Senior Debt and the Lender has no duty to provide to such Subordinated Creditor any information; (3) full and complete access by and through the Borrower to the Lender’s loan documents; (4) not relied and will not rely upon any representations or warranties of the Lender not embodied in this Agreement or any acts taken by the Lender (including but not limited to any review by the Lender of the affairs of the Borrower) prior to or after the date of this Agreement; (D) such Subordinated Creditor is the sole holder of the Subordinated Debt with full power to make the subordinations set forth in this Agreement; and (E) such Subordinated Creditor has not made or permitted any assignment or transfer, as security or otherwise, of the Subordinated Debt, any Subordinated Debt documents or 219 {2158044.DOCX;} of any of the Collateral securing the Subordinated Debt, and such Subordinated Creditor shall not do so except in favor of the Lender as long as this Agreement remains in effect. Section 10. Successors and Assigns. This Subordination Agreement immediately shall be binding on each Subordinated Creditor and on its heirs, representatives and assigns, and shall inure to the benefit of the Lender and its successors and assigns. Whenever reference is made in this Subordination Agreement to the Obligor, such term shall include any successor or assign of the Obligor, including, without limitation, a receiver, trustee, or debtor or debtor-in- possession under the Bankruptcy Code. Section 11. Notices. Any notice required or permitted hereunder shall be given in writing by personal delivery, by overnight delivery through a recognized courier service, by certified U.S. mail, or by telecopier (fax) (i) as to a Subordinated Creditor, by giving such notice to such Subordinated Creditor at the address set forth below such Subordinated Creditor’s signature hereon, and (ii) as to the Lender, by giving such notice to the Lender at the address set forth below its signature hereon. All such notices shall be deemed to have been received on the date given, except that any such notice given by overnight delivery will be deemed to have been received on the next business day after such notice was delivered to such a carrier for delivery, and any such notice given by certified U.S. mail will be deemed to have been received three days after such notice was deposited in the U.S. mails, postage prepaid. Section 12. Governing Law. THIS SUBORDINATION AGREEMENT SHALL BE GOVERNED BY CALIFORNIA LAW (WITHOUT REGARD TO ANY JURISDICTION’S CONFLICT OF LAWS PRINCIPLES). EACH SUBORDINATED CREDITOR AND THE LENDER EACH WAIVES TRIAL BY JURY WITH RESPECT TO ANY ACTION, CLAIM, SUIT OR PROCEEDING IN RESPECT OF OR ARISING OUT OF THIS SUBORDINATION AGREEMENT. This is a “Subordination Agreement” within the meaning of Section 510(a) of the Bankruptcy Code and shall be interpreted and construed accordingly in any proceeding under the Bankruptcy Code. Section 13. Counterparts. This Agreement may be executed in any number of counterparts with the same effect as if the parties had all signed the same document. All counterparts shall be construed together and shall constitute one agreement. [Remainder of this Page Intentionally Left Blank] 220 {2158044.DOCX;} SIGNATURE PAGE TO SUBORDINATION AGREEMENT IN WITNESS WHEREOF, the undersigned has caused this Subordination Agreement to be executed as of the Effective Date. City of Campbell By: Name: Title: Address for notice and service of process: City of Cupertino By: Name: Title: Address for notice and service of process: City of Gilroy By: Name: Title: Address for notice and service of process: (Signature Blocks Continue on Following Pages) 221 {2158044.DOCX;} SIGNATURE PAGE TO SUBORDINATION AGREEMENT City of Los Altos By: Name: Title: Address for notice and service of process: Town of Los Altos Hills By: Name: Title: Address for notice and service of process: Town of Los Gatos By: Name: Title: Address for notice and service of process: (Signature Blocks Continue on Following Pages) 222 {2158044.DOCX;} SIGNATURE PAGE TO SUBORDINATION AGREEMENT City of Monte Sereno By: Name: Title: Address for notice and service of process: City of Morgan Hill By: Name: Title: Address for notice and service of process: City of Mountain View By: Name: Title: Address for notice and service of process: (Signature Blocks Continue on Following Pages) 223 {2158044.DOCX;} SIGNATURE PAGE TO SUBORDINATION AGREEMENT County of Santa Clara (Unincorporated Area) By: Name: Title: Address for notice and service of process: City of Saratoga By: Name: Title: Address for notice and service of process: City of Sunnyvale By: Name: Title: Address for notice and service of process: (Signature Blocks Continue on Following Page) 224 {2158044.DOCX;} SIGNATURE PAGE TO SUBORDINATION AGREEMENT RIVER CITY BANK, as Lender By: Name: Title: Address for notice and service of process: River City Bank 2485 Natomas Park Drive, Suite 100 Sacramento, CA 95833 Attention: Fax: (916) 225 {2158044.DOCX;} Exhibit A Lender Total Amount City of Campbell $ 100,000 City of Cupertino $ 520,000 City of Gilroy $ 100,000 City of Los Altos $ 100,000 Town of Los Altos Hills $ 25,000 Town of Los Gatos $ 100,000 City of Monte Sereno $ 25,000 City of Morgan Hill $ 100,000 City of Mountain View $ 520,000 County of Santa Clara (Unincorporated Area) $ 520,000 City of Saratoga $ 100,000 City of Sunnyvale $ 520,000 Total $2,730,000 226 {2158044.DOCX;} ACKNOWLEDGMENT Silicon Valley Clean Energy Authority, a public agency formed under the provisions of the Joint Exercise of Powers Act of the State of California, Government Code Section 6500 et. seq. (the “Company”), acknowledges receipt of a copy of the Subordination Agreement by and between River City Bank (the “Lender”), and the cities, towns and counties parties thereto (each a “Subordinated Creditor”), dated as of November ____, 2016 (as amended from time to time, the “Subordination Agreement”), and agrees that: (a) it will not: (i) except to the extent permitted by the Subordination Agreement, pay any of the Subordinated Debt until the payment in full of the Senior Debt, (ii) provide any security or collateral for any of Subordinated Debt until the payment in full of the Senior Debt, or (iii) take or omit from taking any action that would cause a breach of the Subordination Agreement; (b) neither the Company nor any of its successors or assignees, by operation of law or otherwise, is a party to the Subordination Agreement, and neither the Company nor any of its successors or assignees will have: (i) any right in, or to enforcement of, the Subordination Agreement as against the Lender or a Subordinated Creditor, (ii) any claim of damage if the Lender or a Subordinated Creditor defaults under the Subordination Agreement, or (iii) any right to object to any amendment, modification, or supplement to, or any restatement or replacement of, the Subordination Agreement that is agreed upon by a Subordinated Creditor and the Lender; and (c) none of the provisions of the Subordination Agreement limit or impair the Lender’s rights against the Company or its successors and assigns or any of their respective obligations, indebtedness, or liabilities to the Lender under the Senior Loan Agreement, any related documents, or otherwise. All capitalized terms used in this Acknowledgment that are defined in the Subordination Agreement and not otherwise defined in this Acknowledgment have the meanings specified in the Subordination Agreement. IN WITNESS WHEREOF, the Company has executed and delivered this Acknowledgement to the Lender as of the Effective Date. Silicon Valley Clean Energy Authority By: Name: Title: 227 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2191 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:11/18/2016 City Council On agenda:Final action:12/6/2016 Title:Subject: Budget adjustment regarding the Apple Campus 2 contracts Sponsors: Indexes: Code sections: Attachments:Staff Report A - Budget Allocations Action ByDate Action ResultVer. City Council12/6/20161 Subject: Budget adjustment regarding the Apple Campus 2 contracts Approvethebudgetallocationsnecessarytoexecutetheapprovedcontractsinorderto complete work at Apple Campus 2 through the end of Fiscal Year 2017 CITY OF CUPERTINO Printed on 11/29/2016Page 1 of 1 powered by Legistar™228 COMMUNITY DEVELOPMENT - BUILDING CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3228 • FAX: (408) 777-3333 CITY COUNCIL STAFF REPORT Meeting: December 6, 2016 Subject Budget Adjustment for Professional Services Contracts for Apple Campus 2. Recommended Action Staff recommends that the City Council: 1. Approve the budget allocations necessary to execute the approved contracts in order to complete work at Apple Campus 2 through the end of Fiscal Year 2017. Description 1. On November 1, 2016 City Council authorized the City Manager to: a. Execute Agreement 17-___ with West Coast Code Consultants, Inc. for professional building department services at Apple Campus 2 for a total amount not to exceed $821,720.00; b. Execute Agreement 17-___ with CSG Consultants, Inc. for plan review services at Apple Campus 2 for a total amount not to exceed $1,120,000.00; c. Execute the Second Amendment to Agreement 14-028 with 4LEAF, Inc. for Apple Campus 2 Phase 1 building inspection services and public works inspection services to increase the previously authorized contract amount by $4,761,376.00 for a total amount not to exceed $15,126,478.00; and d. Execute the First Amendment to Agreement 15-146 with 4LEAF, Inc. for Apple Campus 2 Phase 2 building inspection services to increase the previously authorized contract amount by $567,531.00 for a total amount not to exceed $914,787.00. e. Execute contract amendments to the extent that the costs are recovered from the project applicant. In order to execute these agreements, additional funds in the amount of $7,270,627.00 are required to be allocated to the expense accounts as noted in Attachment A. 229 2 Sustainability Impact No sustainability impact. Fiscal Impact The City of Cupertino will receive a 15% administration fee from the increased contract amount for all four contracts. Prepared by: Ari Lattanzi, Community Development Management Analyst Reviewed by: Aarti Shrivastava, Assistant City Manager Approved for Submission by: David Brandt, City Manager Attachments: A – Budget Allocations for Professional Service Contracts at Apple Campus 2 230 Attachment A: Budget Allocations for Professional Service Contracts at Apple Campus 2 Company Contract Number PO # Account 1 Additional Amount Needed Account 2 Additional Amount Needed Total Allocation WC3 new 2017 - 100-73-714 900-923 $ 821,720.00 - $ - $ 821,720.00 CSG new 2017 - 100-73-714 900-923 $ 1,120,000.00 - $ - $ 1,120,000.00 4Leaf 14-028 2015-57 100-73-715 900-923 $ 3,450,399.00 100-82-804 900-923 $ 1,310,977.00 $ 4,761,376.00 4Leaf 15-146 2016-171 100-73-715 700-702 $ 140,746.96 100-73-715 900-923 $ 426,784.04 $ 567,531.00 Total $ 7,270,627.00 231 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2187 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:11/17/2016 City Council On agenda:Final action:12/6/2016 Title:Subject: Application for Alcohol Beverage License for Amami Shima Sushi Corp, 19068 Stevens Creek Boulevard Sponsors: Indexes: Code sections: Attachments:Staff Report A - Application Action ByDate Action ResultVer. City Council12/6/20161 Subject:ApplicationforAlcoholBeverageLicenseforAmamiShimaSushiCorp,19068 Stevens Creek Boulevard Recommend approval to the California Department of Alcoholic Beverage Control of the application for Alcohol Beverage License for Amami Shima Sushi Corp, 19068 Stevens Creek Boulevard CITY OF CUPERTINO Printed on 11/29/2016Page 1 of 1 powered by Legistar™232 CITY COUNCIL STAFF REPORT Meeting: December 6, 2016 Subject Application for Alcoholic Beverage License for Amami Shima Sushi Corp, 19068 Stevens Creek Boulevard. Recommended Action Recommend approval to the California Department of Alcoholic Beverage Control of the Application for Alcoholic Beverage License for Amami Shima Sushi Corp, 19068 Stevens Creek Boulevard. Description Name of Business: Amami Shima Sushi Corp Location: 19068 Stevens Creek Blvd Type of Business: Restaurant Type of License: 41 – On-Sale Beer & Wine – Eating Place (Restaurant) Reason for Application: Annual Fees, Original Fees Discussion There are no zoning or use permit restrictions which would prohibit the sale of alcohol as proposed. Therefore, 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 Loree Center. Sustainability Impact None Fiscal Impact None _____________________________________ Prepared by: Jeffrey Tsumura, Assistant Planner, 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 233 234 235 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1978 Name: Status:Type:Second Reading of Ordinances Agenda Ready File created:In control:9/13/2016 City Council On agenda:Final action:12/6/2016 Title:Subject: Second reading of an ordinance amending Chapter 19.08, Definitions, of the Municipal Code to add definitions of “financial institutions” and “banks” that expressly exclude payday lending and check cashing businesses with the intent to disallow such uses from operating within the City of Cupertino. (Application No(s): MCA-2016-04; Applicant(s): City of Cupertino; Location: City-wide) Sponsors: Indexes: Code sections: Attachments:Staff Report A - Draft Ordinance No. 16-2157 Action ByDate Action ResultVer. City Council12/6/20161 Subject:SecondreadingofanordinanceamendingChapter19.08,Definitions,ofthe MunicipalCodetoadddefinitionsof“financialinstitutions”and“banks”thatexpressly excludepaydaylendingandcheckcashingbusinesseswiththeintenttodisallowsuchuses fromoperatingwithintheCityofCupertino.(ApplicationNo(s):MCA-2016-04;Applicant(s): City of Cupertino; Location: City-wide) Conduct the second reading and enact Ordinance No. 16-2157, “An Ordinance of the City Council of the City of Cupertino Amending the Cupertino Municipal Code, Title 19, Zoning, Section 19.08.030, entitled “Definitions” to add the definition of “financial institutions” and “banks” to expressly exclude payday lending and check cashing businesses with the intent to disallow such uses from operating within the City of Cupertino” CITY OF CUPERTINO Printed on 11/29/2016Page 1 of 1 powered by Legistar™236 1 OFFICE OF THE CITY MANAGER CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3212 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: December 6, 2016 Subject Second reading of an ordinance amending Chapter 19.08, Definitions, of the Municipal Code to add definitions of “financial institutions” and “banks” that expressly exclude payday lending and check cashing businesses with the intent to disallow such uses from operating within the City of Cupertino. (Application No(s): MCA-2016-04; Applicant(s): City of Cupertino; Location: City-wide) Recommended Action Conduct the second reading of Ordinance No. 16 - 2157, “An Ordinance of the City Council of the City of Cupertino Amending the Cupertino Municipal Code, Title 19, Zoning, Section 19.08.030, entitled “Definitions” to add the definition of “financial institutions” and “banks” to expressly exclude payday lending and check cashing businesses within the intent to disallow such uses from operating within the City of Cupertino.” (Attachment A) Discussion On November 1, 2016, the City Council introduced and conducted the first reading of Ordinance No. 2157 in order to prohibit the establishment, expansion or relocation of payday lending and check-cashing businesses in zoning districts where financial institutions and banks are allowed within the City. This Municipal Code Amendment would add definitions for “financial institutions” and “banks,” which specifically exclude payday lending and check cashing businesses, to the Zoning Code. By excluding such uses from the definitions, payday lending and check cashing businesses would be disallowed from operating within the city. Currently, there are no payday lenders operating in the City. Sustainability Impact No impact. Fiscal Impact No impact. 237 2 Prepared by: Jaqui Guzmán, Assistant to the City Manager Piu Ghosh, Principal Planner Reviewed by: Aarti Shrivastava, Assistant City Manager Approved for Submission by: David Brandt, City Manager Attachments: A. Draft Ordinance No. 16-2157 238 CITY OF CUPERTINO ORDINANCE NO. 16-2157 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING SECTION 19.08.030 OF CHAPTER 19.08 OF TITLE 19 OF THE CUPERTINO MUNICIPAL CODE ADDING DEFINITIONS OF “FINANCIAL INSTITUTIONS” AND “BANKS” THAT EXPRESSLY EXCLUDE PAYDAY LENDING AND CHECK CASHING BUSINESSES WITH THE INTENT TO DISALLOW SUCH USES FROM OPERATING WITHIN THE CITY OF CUPERTINO WHEREAS, the Ordinance amendments set forth below further the goals and policies of the City's General Plan and are necessary to promote the health, safety and welfare of the City ; and WHEREAS, the City Council does find that payday lenders are predatory businesses that target people in desperate need of cash and charge unusually high interest rates and exorbitant fees that end up trapping borrowers in a cycle of crippling debt and poverty; and WHEREAS, the City Council does find that the State regulates maximum loan amounts, fees, and other aspects of how payday lenders operate, however, local jurisdictions can enact local policies to restrict payday loan businesses from operating within their communities through the use of its police power; and WHEREAS, the City Council finds that payday lenders and cash checking businesses are predatory businesses that target people in a financially vulnerable situation and charge exorbitant fees and high interest rates; WHEREAS, the Planning Commission has reviewed the amendments to the Municipal Code at a duly noticed public hearing held on October 11, 2016 where the public had a n opportunity to comment at which the Commission adopted Planning Commission Resolution No. 6818 by a 4-0 vote (Sun absent) recommending that the City Council adopt the amendments; WHEREAS, a duly noticed public hearing was held on November 1, 2016 at which the public had an opportunity to speak on this matter; and WHEREAS, the proposed Ordinance is not a project within the meaning of section 15378 of the California Environmental Quality Act (“CEQA”) Guidelines because it has no potential for resulting in physical change in the environment, either directly or ultimately. In the event that this Ordinance is found to be a project under CEQA, it is 239 subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty to have no possibility of a significant effect on the environment. WHEREAS, the City Council has reviewed and considered the “not a project” determination under the California Environmental Quality Act prior to taking any approval actions on this Ordinance and approves such determinations; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CUPERTINO DOES ORDAIN AS FOLLOWS: SECTION 1. Section 19.08.030(B), “’B’ Definitions”, of Chapter 19.08 of Title 19 of the Cupertino Municipal Code is hereby amended to add the definition of “banks” to be inserted into the definitions in alphabetical order and to read as follows: “banks” means financial institutions including federally-chartered banks, savings and loan associations, industrial loan companies, and credit unions providing retail banking services to individuals and businesses. This classification does not include payday lending businesses or check cashing businesses. The term "payday lending business" as used herein means retail businesses owned or operated by a "licensee" as that term is defined in California Financial Code Section 23001(d), as amended from time to time. The term "check cashing business" as used herein means a retail business owned or operated by a "check casher" as that term is defined in California Civil Code Section 1789.31 as amended from time to time. SECTION 2. Section 19.08.030(F), “’F’ Definitions”, of Chapter 19.08 of Title 19 of the Cupertino Municipal Code is hereby amended to add the definition of “financial institutions” to be inserted into the definitions in alphabetical order and to read as follows: “financial institutions” means a company engaged in the business of dealing with monetary transactions, such as deposits, loans, investments and currency exchange. This classification does not include payday lending businesses or check cashing businesses. The term "payday lending business" as used herein means retail businesses owned or operated by a "licensee" as that term is defined in California Financial Code Section 23001(d), as amended from time to time. The term "check cashing business" as used herein means a retail business owned or operated by a "check casher" as that term is defined in California Civil Code Section 1789.31 as amended from time to time. 240 SECTION 3. Severability. Should any provision of this Ordinance, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of this Ordinance or the application of this Ordinance to any other person or circumstance and, to that end, the provisions hereof are severable. SECTION 4. Effective Date. This Ordinance shall take effect thirty days after adoption as provided by Government Code Section 36937. SECTION 5. Certification. The City Clerk shall certify to the passage and adoption of this Ordinance and shall give notice of its adoption as required by law. Pursuant to Government Code Section 36933, a summary of this Ordinance may be published and posted in lieu of publication and posting of the entire text. SECTION 6. Continuity. To the extent the provisions of this Ordinance are substantially the same as previous provisions of the Cupertino Municipal Code, these provisions shall be construed as continuations of those provisions and not as amendments of the earlier provisions. INTRODUCED at a regular meeting of the Cupertino City Council the 1 day of November, 2016 and ENACTED at a regular meeting of the Cupertino City Council on this 6th of December, 2016 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: __________ Grace Schmidt, City Clerk Mayor Barry Chang, City of Cupertino 241 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1974 Name: Status:Type:Second Reading of Ordinances Agenda Ready File created:In control:9/13/2016 City Council On agenda:Final action:12/6/2016 Title:Subject: Second reading of an ordinance amending the Cupertino Municipal Code regarding the regulation, location, and the keeping of bees in the City and to make other conforming changes for clarification and internal consistency. Application No(s): MCA-2016-03; Applicant(s): City of Cupertino; Location: Citywide Sponsors: Indexes: Code sections: Attachments:Staff Report A - Draft Ordinance 16-2158 Action ByDate Action ResultVer. City Council12/6/20161 Subject:SecondreadingofanordinanceamendingtheCupertinoMunicipalCoderegarding theregulation,location,andthekeepingofbeesintheCityandtomakeotherconforming changesforclarificationandinternalconsistency.ApplicationNo(s):MCA-2016-03;Applicant (s): City of Cupertino; Location: Citywide Conduct the second reading and enact Ordinance No. 16-2158: "An ordinance of the City Council of the City of Cupertino to amend Chapter 8.07, Beekeeping, and Table 19.20.020 of Chapter 19.20, Permitted, Conditional, and Excluded Uses in Agricultural and Residential Zones, regarding the regulation, location, and the keeping of bees in the City and to make other conforming changes to Table 19.20.020 for clarification and internal consistency" CITY OF CUPERTINO Printed on 11/29/2016Page 1 of 1 powered by Legistar™242 DEPARTMENT OF COMMUNITY DEVELOPMENT CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3308 • FAX: (408) 777-3333 CITY COUNCIL STAFF REPORT Meeting: December 6, 2016 Subject Second reading of an ordinance amending the Cupertino Municipal Code regarding the regulation, location, and the keeping of bees in the City and to make other conforming changes for clarification and internal consistency (Application No. MCA-2016-03; Applicant: City of Cupertino; Location: Citywide). Recommended Action Conduct the second reading and enact Ordinance No. 16-2158, “An ordinance of the City Council of the City of Cupertino to amend Chapter 8.07, Beekeeping, and Table 19.20.020 of Chapter 19.20, Permitted, Conditional, and Excluded Uses in Agricultural and Residential Zones, regarding the regulation, location, and the keeping of bees in the City and to make other conforming changes in Table 19.20.020 for clarification and internal consistency” (see Attachment A). Discussion On November 15, 2016 the City council introduced and conducted the first reading of Ordinance No. 16-2158 in order to promote beekeeping in the City. The City Council approved the draft ordinance with reduction in apiary setback requirements from side and rear property lines and driveway easements from ten (10) feet to eight (8) feet. This change is reflected in the attached ordinance. No other changes have been made since the first reading. Sustainability Impact The proposed ordinance is anticipated to protect the environment by promoting natural processes and maximizing the use of the City’s existing natural resources. Fiscal Impact There are no fiscal impacts to the City’s General Fund. _________________ 243 Prepared by: Ellen Yau, Assistant Planner Piu Ghosh, Principal Planner Reviewed by: Aarti Shrivastava, Assistant City Manager Approved for Submission by: David Brandt, City Manager Attachments: A. Ordinance No. 16-2158 244 ORDINANCE NO. 16-2158 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO TO AMEND CHAPTER 8.07, BEEKEEPING, AND TABLE 19.20.020 OF CHAPTER 19.20, PERMITTED, CONDITIONAL, AND EXCLUDED USES IN AGRICULTURAL AND RESIDENTIAL ZONES REGARDING THE REGULATION, LOCATION, AND THE KEEPING OF BEES IN THE CITY AND TO MAKE OTHER CONFORMING CHANGES TO TABLE 19.20.020 FOR CLARIFICATION AND INTERNAL CONSISTENCY WHEREAS, the Cupertino Municipal Code Chapter 8.07, Beekeeping, renders it difficult to maintain apiaries within the City and is in conflict with the increased interest of members of the public; and WHEREAS, the Cupertino Municipal Code Table 19.20.020, Permitted, Conditional, and Excluded Uses in Agricultural and Residential Zones, is amended to make conforming changes and to clarify the intent of beekeeping as an accessory use in all zoning districts and to eliminate the possible misconception that apiaries in general are excluded uses in residential zones; and WHEREAS, the City has analyzed this proposed zoning amendment and determined that it is not a project within the meaning of section 15378 of the California Environmental Quality Act (“CEQA”) Guidelines because it has no potential for resulting in physical change in the environment, either directly or ultimately; and WHEREAS, in the event that this proposed amendment is found to be a project under CEQA, it is subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty to have no possibility of a significant effect on the environment; and WHEREAS, in the event that this proposed amendment is found to be a project under CEQA, it is determined to be categorically exempt under section 15301 (Existing Facilities), section 15302 (Replacement or Reconstruction), section 15303 (Construction or Conversion of Small Structures), and section 15308 (Actions by Regulatory Agencies for Protection of the Environment) because it can be seen with certainty to have no possibility of a significant effect on the environment; and WHEREAS, the Planning Commission has reviewed the amendments to the Municipal Code at a duly noticed public hearing held on October 25, 2016 where the public had an opportunity to comment at which the Commission adopted 245 Planning Commission Resolution No. 6819 by a 5-0 vote recommending that the City Council adopt the proposed amendments with minor amendments; WHEREAS, a duly noticed public hearing was held on November 15, 2016 at which the public had an opportunity to speak on this matter; and WHEREAS, the City Council before taking action on this Ordinance has reviewed the exemptions, and using its independent judgment, determines the Ordinance to be exempt from CEQA as stated above; and WHEREAS, the City Council is the decision-making body for this Ordinance; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CUPERTINO DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Chapter 8.07 of Title 8 of the Cupertino Municipal Code entitled “Beekeeping” is hereby amended to be entitled, numbered, and to read as follows: Chapter 8.07 BEEKEEPING Section 8.07.010 Purpose. 8.07.020 Definitions. 8.07.030 Location, Number, Maintenance and Registration of Apiaries. 8.07.040 Nuisance. 8.07.050 Enforcement. 8.07.010 Purpose. This chapter is enacted to provide for beekeeping, including urban beekeeping, activities within the City while minimizing impacts to surrounding properties through the establishment of beekeeping regulations. 8.07.020 Definitions. For the purposes of this chapter, the following definitions apply, unless it is apparent from the context that a different meaning is intended: “Apiary” means a collection of bees, hives, and any accessory appliances. A. “Agricultural Apiary” means an apiary kept as a principal use on any property; B. “Urban Apiary” means an apiary kept as an accessory use pursuant to Section 19.100.020, Accessory Uses and Facilities. 246 “Bees” means any stage of the common domestic honey-producing insects of the species apis mellifera. “Hive” means any receptacle, container or structure used to house bees. “Location” means any premises upon which an apiary is located. 8.07.030 Location, Number, Maintenance and Registration of Apiaries. Any person may keep and maintain apiaries in accordance to the following regulations: A. Location: 1. Agricultural apiaries as permitted in Chapter 19.20; 2. Urban apiaries in all zoning districts; 3. Minimum setbacks: i. Front property line and/or any public or private street: 20 feet; and ii. Side or rear property lines and/or driveway easements: Eight (8) feet, unless property owners of adjacent properties or beneficiaries of driveway easements have given written permission to locate hives at a closer distance. B. Number: Only two hives may be kept or maintained on parcels less than 5,000 square feet in size. C. Maintenance: 1. A constant supply of fresh water adequate in quantity for the apiary should be provided and maintained on the location. 2. Any apiaries abandoned by beekeepers or disused apiaries shall be promptly dismantled and removed from the location. D. Registration: All apiaries must be registered with the Santa Clara County Agricultural Commissioner as required by Division 13: Bee Management and Honey Production of the California Food and Agricultural Code commencing at Section 29000, and or as thereafter may be amended. 8.07.040 Nuisance. The maintenance or use of any real property in violation of this Chapter, or which creates a condition as defined in Section 1.09.030, is hereby declared a public nuisance, is prohibited and is subject to code enforcement and all other enforcement remedies as provided for in this Code. 247 8.07.050 Enforcement. Any person who violates any provision of this chapter shall be subject to administrative fines and/or penalties pursuant to Chapter 1.10. In addition, any person who violates any of the provisions of this chapter shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished as provided in Chapter 1.12. SECTION 2. Sub-Sections 1(h), (i), (j) and (9) of Table 19.20.020 of Section 19.20.020 of Chapter 19.20 of Title 19 of the Cupertino Municipal Code entitled “Permitted, Conditional and Excluded Uses in Agricultural and Residential Zones” is hereby amended as follows: Table 19.20.020–Permitted, Conditional and Excluded Uses in Agricultural and Residential Zones USES ZONING DISTRICTS A A-1 R-1 RHS R1C R-2 R-3 1. Agriculture, horticulture, viticulture and forestry, including the following and similar uses: P P — — — — — (no change to subsections 19.20.020 (1) (a)-(g) h. Poultry raising and hatcheries, P CUP- PC See #27 i. Apiaries, pursuant to Chapter 8.07, P P See #9 j. Nurseries, greenhouses and landscaping gardens P CUP- PC See #20 (no change to subsections 19.20.020 (1) (k) - 19.20.020 (8) 9. Accessory facilities and uses incidental to permitted uses and otherwise conforming with the provisions of Chapter 19.100 of this title; P P P P P P P SECTION 3. Severability. Should any provision of this Ordinance, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, 248 that determination shall have no effect on any other provision of this Ordinance or the application of this Ordinance to any other person or circumstance and, to that end, the provisions hereof are severable. SECTION 4. Effective Date. This Ordinance shall take effect thirty days after adoption as provided by Government Code Section 36937. SECTION 5. Certification. The City Clerk shall certify to the passage and adoption of this Ordinance and shall give notice of its adoption as required by law. Pursuant to Government Code Section 36933, a summary of this Ordinance may be published and posted in lieu of publication and posting of the entire text. INTRODUCED at a regular meeting of the Cupertino City Council the 15th day of November 2016 and ENACTED at a regular meeting of the Cupertino City Council on this ___ day of ___________ 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 249 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2089 Name: Status:Type:Second Reading of Ordinances Agenda Ready File created:In control:10/11/2016 City Council On agenda:Final action:12/6/2016 Title:Subject: Second Reading of an ordinance amending the Cupertino Municipal Code related to accessory dwelling units to conform with State Law and for internal consistency. (Application No. MCA-2016-05; Applicant: City of Cupertino; Location: City-wide) Sponsors: Indexes: Code sections: Attachments:Staff Report A - Draft Ordinance 16-2159 Action ByDate Action ResultVer. City Council12/6/20161 Subject:SecondReadingofanordinanceamendingtheCupertinoMunicipalCoderelatedto accessorydwellingunitstoconformwithStateLawandforinternalconsistency.(Application No. MCA-2016-05; Applicant: City of Cupertino; Location: City-wide) ConductthesecondreadingandenactOrdinanceNo.16-2159“AnordinanceoftheCity CounciloftheCityofCupertinoamendingTitle19,Zoning,oftheCupertinoMunicipalCode includingbutnotlimitedtoChapter19.08(Definitions),Chapter19.20(Permitted,Conditional andExcludedUsesinAgriculturalandResidentialZones),Chapter19.24(Agricultural(A)and Agricultural-Residential(A-1)Zones),Chapter19.32(ResidentialDuplex(R-2)Zones), Chapter19.52(ReasonableAccommodation),andChapter19.112(SecondDwellingUnitsinR -1,RHS,AandA-1Zones),inresponsetorecentlyadoptedStatelegislationregarding accessory dwelling units for compliance with State Law, and for internal consistency" CITY OF CUPERTINO Printed on 11/29/2016Page 1 of 1 powered by Legistar™250 DEPARTMENT OF COMMUNITY DEVELOPMENT CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3308 • FAX: (408) 777-3333 CITY COUNCIL STAFF REPORT Meeting: December 6, 2016 Subject Second reading and adoption of an ordinance amending the Cupertino Municipal Code related to accessory dwelling units to conform with State Law and for internal consistency. (Application No. MCA-2016-05; Applicant: City of Cupertino; Location: City-wide). Recommended Action Conduct the second reading and enact Ordinance No. 16-2159 “An ordinance of the City Council of the City of Cupertino amending Title 19, Zoning, of the Cupertino Municipal Code including but not limited to Chapter 19.08 (Definitions), Chapter 19.20 (Permitted, Conditional and Excluded Uses in Agricultural and Residential Zones), Chapter 19.24 (Agricultural (A) and Agricultural – Residential (A-1) Zones), Chapter 19.32 (Residential Duplex (R-2) Zones), Chapter 19.52 (Reasonable Accommodation), and Chapter 19.112 (Second Dwelling Units in R-1, RHS, A and A-1 Zones), in response to recently adopted State legislation regarding accessory dwelling units for compliance with State Law, and for internal consistency. (Attachment A). Discussion On November 15, 2016, the City Council conducted the first reading of Ordinance No. 16- 2159. (4-0, Wong absent) During the first reading, Council did not direct any modifications to the proposed Ordinance. As a result, no changes have been made to the ordinance since the first reading. Council should find the Ordinance exempt from CEQA, conduct the second reading, and adopt the proposed Ordinance. Sustainability Impact None Fiscal Impact None _________________ 251 Prepared by: Gian Paolo Martire, Associate Planner Piu Ghosh, Principal Planner Reviewed by: Benjamin Fu, Assistant Director of Community Development Aarti Shrivastava, Assistant City Manager Approved for Submission by: David Brandt, City Manager Attachments: A. Ordinance No. 16-2159 252 ORDINANCE NO. 16-2159 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING TITLE 19, ZONING, OF THE CUPERTINO MUNICIPAL CODE INCLUDING BUT NOT LIMITED TO CHAPTER 19.08 (DEFINITIONS), CHAPTER 19.20 (PERMITTED, CONDITIONAL AND EXCLUDED USES IN AGRICULTURAL AND RESIDENTIAL ZONES), CHAPTER 19.24 (AGRICULTURAL (A) AND AGRICULTURAL – RESIDENTIAL (A-1) ZONES), CHAPTER 19.32 (RESIDENTIAL DUPLEX (R-2) ZONES), CHAPTER 19.52 (REASONABLE ACCOMMODATION), AND CHAPTER 19.112 (SECOND DWELLING UNITS IN R-1, RHS, A AND A-1 ZONES), IN RESPONSE TO RECENTLY ADOPTED STATE LEGISLATION REGARDING ACCESSORY DWELLING UNITS FOR COMPLIANCE WITH STATE LAW, AND FOR INTERNAL CONSISTENCY WHEREAS, this Ordinance is determined to be not a project under the requirements of the California Quality Act of 1970, together with related State CEQA Guidelines (collectively, “CEQA”) in that proposed Ordinance is not a project within the meaning of section 15378 of the California Environmental Quality Act (“CEQA”) Guidelines because it has no potential for resulting in physical change in the environment, either directly or ultimately. In the event that this Ordinance is found to be a project under CEQA, it is subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty to have no possibility of a significant effect on the environment. WHEREAS, the City Council is the decision-making body for this Ordinance; and WHEREAS, the City Council before taking action on this Ordinance has reviewed the not a project determination and exemption, and using its independent judgment, determines the Ordinance to be not a project or exempt from CEQA as stated above; NOW, THEREFORE, THE CITY COUNCIL OF THE OF CITY OF CUPERTINO DOES ORDAIN AS FOLLOWS: 253 SECTION 1. Section 19.08.030 (a), “’A’ Definitions”, of Chapter 19.08 of Title 19 of the Cupertino Municipal Code is hereby amended to read as follows: A. “A” Definitions: “Abandon” means to cease or discontinue a use or activity without intent to resume, but excluding temporary or short-term interruptions to a use or activity during periods of remodeling, maintaining, or otherwise improving or rearranging a facility, or during normal periods of vacation or seasonal closure. “Abutting” means having property or district lines in common. “Accessory building” means a building which is incidental to and customarily associated with a specific principal use or facility and which meets the applicable conditions set forth in Chapter 19.100, Accessory Buildings/Structures. “Accessory dwelling unit” means an attached or a detached residential dwelling unit which provides complete independent living facilities for one or more persons. It shall include permanent provisions for living, sleeping, eating, cooking and sanitation on the same parcel as the single-family dwelling is situated. An accessory dwelling unit also includes the following: 1. An efficiency unit, as defined in Section 17958.1 of Health and Safety Code. 2. A manufactured home, as defined in Section 18007 of the Health and Safety Code. “Accessory structure” means a subordinate structure, the use of which is purely incidental to that of the main building and which shall not contain living or sleeping quarters. Examples include a deck, tennis courts, trellis or car shelter. Fences eight feet or less are excluded. “Addition” means any construction which increases the size of a building or facility in terms of site coverage, height, length, width, or gross floor area ratio. “Adjacent property” means property that abuts the subject property, including property whose only contiguity to the subject site is a single point and property directly opposite the subject property and located across a street. “Adult bookstore” means a building or portion thereof used by an establishment having as a substantial or significant portion of its stock in trade for sale to the public or certain members thereof, books, magazines, and other publications which are distinguished or characterized by their emphasis on matter depicting, describing or relating to “specified sexual activities” or “specified anatomical areas,” as hereinafter defined. “Adult cabaret” means a building or portion thereof used for dancing purposes thereof or area used for presentation or exhibition or featuring of topless or bottomless dancers, 254 strippers, male or female impersonators or similar entertainers, for observations by patrons or customers. “Adult motion picture theater” means a building or portion thereof or area, open or enclosed, used for the presentation of motion pictures distinguished or characterized by an emphasis on matter depicting, describing or relating to “specified sexual activities” or “specified anatomical areas,” as hereinafter defined, for observation by patrons or customers. “Advertising statuary” means a structure or device of any kind or character for outdoor advertising purposes which displays or promotes a particular product or service, but without name identification. “Aerial” means a stationary transmitting and/or receiving wireless communication device consisting of one or any combination of the elements listed below: 1. “Antenna” means a horizontal or vertical element or array, panel or dish that may be attached to a mast or a tower for the purpose of transmitting or receiving radio or microwave frequency signals. 2. “Mast” means a vertical element consisting of a tube or rod which supports an antenna. 3. “Tower” means a vertical framework of cross elements which supports either an antenna, mast or both. 4. “Guy wires” means wires necessary to insure the safety and stability of an antenna, mast or both. “Affordable housing cost” means the amount set forth in the Health and Safety Code Section 50052.5, as may be amended. “Affordable rent” means the amount set forth in the Health and Safety Code Section 50053, as may be amended. “Affordable units” means housing units available at affordable rent or affordable housing cost to lower or moderate income households. “Agriculture” means the tilling of the soil, the raising of cr ops, horticulture, agriculture, livestock farming, dairying, or animal husbandry, including slaughterhouses, fertilizer yards, bone yard, or plants for the reduction of animal matter or any other similar use. “Alley” means a public or private vehicular way less than thirty feet in width affording a secondary means of vehicular access to abutting property. “Alteration”, for purposes of the Sign Ordinance, means any permanent change to a sign. “Alteration” means any construction or physical change in the arra ngement of rooms or the supporting members of a building or structure, or change in the relative position of buildings or structures on a site, or substantial change in appearances of any building or structure. 255 1. “Incidental alteration” means any alteration to interior partitions or interior supporting members of a structure which does not increase the structural strength of the structure; any alteration to electrical, plumbing, heating, air conditioning, ventilating, or other utility services, fixtures, or appliances; any addition, closing, or change in size of doors or windows in the exterior walls; or any replacement of a building facade which does not increase the structural strength of the structure. 2. “Structural alteration” means any alteration not deemed an incidental alteration. “Amusement park” means a commercial facility which supplies various forms of indoor and outdoor entertainment and refreshments. Animal: 1. Animal, Adult. “Adult animal” means any animal four months of age or older. 2. Animal, Large. “Large animal” means any equine, bovine, sheep, goat or swine or similar domestic or wild animal, as determined by the Planning Commission. 3. Animal, Small. “Small animal” means animals which are commonly found in single- family residential areas such as chickens, ducks, geese, rabbits, dogs, cats, etc. “Animal care” means a use providing grooming, housing, medical care, or other services to animals, including veterinary services, animal hospitals, overnight or short- term boarding ancillary to veterinary care, indoor or outdoor kennels, and similar services. “Apartment” means a room or a suite of two or more rooms which is designed for, intended for, and occupied by one family doing its cooking there. “Apartment house” means a building designed and used to house three or more families, living independently of each other. “Apartment project” means a rental housing development consisting of two or more dwelling units. “Approval Body” means the Director of Community Development and his/her designee, the Planning Commission or City Council depending upon context. “Architectural feature” means any part or appurtenance of a building or structure which is not a portion of the living area of the building or structure. Examples include: cornices, canopies, eaves, awnings, fireplaces, or projecting window elements. Patio covers or any projection of the floor area shall not constitute an architectural projection. “Architectural projection,” for purposes of the Sign Ordinance, means any permanent extension from the structure of a building, including the likes of canopies, awnings and fascia. “Atrium” means a courtyard completely enclosed by walls and/or fences. “Attic” means an area between the ceiling and roof of a structure, which is unconditioned (not heated or cooled) and uninhabitable. 256 “Automotive service station” means a use providing gasoline, oil, tires, small parts and accessories, and services incidental thereto, for automobiles, light trucks, and similar motor vehicles. Automotive maintenance and repair (minor) may be conducted on the site. The sale of food or grocery items on the same site is prohibited except for soft drinks and snack foods, either from automatic vending machines or from shelves. The sale of alcoholic beverages on the site is governed by Chapter 19.132, Concurrent Sale of Alcoholic Beverages and Gasoline. “Automotive repair and maintenance (minor)” means the supplying of routine automotive services such as lubrication, engine tune-ups, smog certificates, servicing of tires, brakes, batteries and similar accessories, and minor repairs involving engine accessories. Any repair which requires the engine, drive train, transmission assembly, exhaust system, or drive train parts to be removed from a motor vehicle or requires the removal of internal parts shall not be considered minor. Body and paint shop operations are not minor repairs or maintenance. “Average slope” means the ratio between vertical and horizontal distance expressed in percent; the mathematical expression is based upon the formula described below: S =   I x L x 100 A S = Average slope of ground in percent; L = Combined length in feet of all contours on parcel; I = Contour interval in feet; A = Area of parcel in square feet. SECTION 2. Section 19.08.030 (d), “‘D’ Definitions”, of Chapter 19.08 of Title 19 of the Cupertino Municipal Code is hereby amended to read as follows: “D” Definitions: "Day care center" means any child day care facility, licensed by the State or County, other than a family day care home, and includes infant centers, preschools, and extended day care facilities. Day Care Home, Family. "Family day care home" means a home, licensed by the State or County, which regularly provides care, protection and supervision for fourteen or fewer children, in the provider's own home, for periods of less than twenty-four hours per day, while the parents or guardian are away, and includes the following: 1. "Large-family day care home," which means a home which provides family day care for seven to fourteen children, inclusive, including children under the age of ten years who reside at the home, as set forth in the California Health and Safety Code Section 1597.465; 2. "Small-family day care home," which means a home which provides family day care to eight or fewer children, including children under the age of ten years who 257 resides at the home, as set forth in the California Health and Safety Code Section 1597.44. "Decorative statuary," for purposes of the Sign Ordinance, means any structure or device of any kind or character placed solely for aesthetic purposes and not to promote any product or service. "Demonstrated safety" means a condition requiring protection from the threat of danger, harm, or loss, including but not limited to the steepness of a roadway or driveway that may create a hazardous parking situation in front of a gate. "Demonstrated security" means a condition requiring protection from the potential threat of danger, harm or loss, including but not limited to a location that is isolated and invisible from public view or that has experienced documented burglary, theft, vandalism or trespassing incidences. "Density bonus" means a density increase over the otherwise maximum allowable residential density in accordance with the provisions of Chapter 19.56 as of the date of the project application. "Developer" means the owner or subdivider with a controlling proprietary interest in the proposed common interest development, or the person or organization making application, or a qualified applicant who has entered into a development agreement pursuant to the procedures specified in Chapter 19.144. "Development agreement" means a development agreement enacted by legislation between the City and a qualified applicant pursuant to Government Code Sections 65864 through 65869.5. "Development standard" means a site or construction regulation, including, but not limited to, a setback requirement, a floor area ratio, and onsite open-space requirement, or a parking ratio that applies to a development pursuant to any ordinance, general plan element, specific plan, charter, or other local condition, law, policy, resolution, or regulation. "District" means a portion of the property within the City within which certain uses of land, premises and buildings are permitted and certain other uses of land, premises and buildings are prohibited, and within which certain yards and other open spaces are required and certain building site areas are established for buildings, all as set forth and specified in this title. "Drinking establishment" means an activity that is primarily devoted to the selling of alcoholic beverages for consumption on the premises. 258 "Drive-through establishment" means an activity where a portion of retailing or the provision of service can be conducted without requiring the customer to leave his or her car. "Driveway" means any driveway that provides direct access to a public or private street. Driveway, Curved. "Curved driveway" means a driveway with access to the front property line which enters the garage from the side at an angle of sixty degrees or greater to the front curbline and which contains a functional twenty-foot-deep parking area that does not overhang the front property line. "Duplex" means a building, on a lot under one ownership, containing not more than two kitchens, designed and used as two dwelling units, of comparable size independent of each other. "Dwelling unit" means a room or group of rooms including living, sleeping, eating, cooking and sanitation facilities, constituting a separate and independent housekeeping unit, occupied or intended for occupancy on a non-transient basis and having not more than one kitchen. SECTION 3. Section 19.08.030 (l), “‘L’ Definitions”, of Chapter 19.08 of Title 19 of the Cupertino Municipal Code is hereby amended to read as follows: “L” Definitions: “Landscaping” means an area devoted to or developed and maintained with native or exotic planting, lawn, ground cover, gardens, trees, shrubs, and other plant materials, decorative outdoor landscape elements, pools, fountains, water features, paved or decorated surfaces of rock, stone, brick, block or similar material (excluding driveways, parking, loading or storage areas), and sculptural elements. “Late evening activities” means an activity which maintains any hours of operation during the period of eleven p.m. to seven a.m. “Legal substandard lot” means any parcel of land or lot recorded and legally created by the County or City prior to March 17, 1980, which lot or parcel is of less area than required in the zone; or lots or parcels of record which are reduced to a substandard lot size as a result of required street dedication unless otherwise provided in the City of Cupertino General Plan. The owner of a legally created, substandard property which is less than six thousand square feet but equal to or greater than five thousand square feet may utilize such parcel for residential purposes. The owner of a legally created parcel of less than five thousand square feet may also develop the site as a single-family residential building site if it can be demonstrated that the property was not under the same ownership as any contiguous property on the same street frontage as of or after July 1, 1984. 259 “Lightwell” means an excavated area required by the Uniform Building Code to provide emergency egress, light and ventilation for below grade rooms. “Liquor store” means a use requiring a State of California “off-sale general license” (sale for off-site consumption of wine, beer and/or hard liquor) and having fifty percent or more of the total dollar sales accounted for by beverage covered under the off-sale general license. “Living space” means habitable space and sanitation. “Loading space” means an area used for loading or unloading of goods from a vehicle in connection with the use of the site on which such space is located. “Lodging” means the furnishing of rooms or groups of rooms within a dwelling unit or an accessory building on a transient basis, whether or not meals are provided to the person. Lodging shall be subject to the residential density requirements of the district in which the use is located. “Lodging unit” means a room or group of rooms not including a kitchen, used or intended for use by overnight or transient occupants as a single unit, whether located in a hotel or a dwelling unit providing lodging where designed or used for occupancy by more than two persons; each two-person capacity shall be deemed a separate lodging unit for the purpose of determining residential density; each two lodging units shall be considered the equivalent of one dwelling unit. “Lot” means a parcel or portion of land separated from other parcels or portions by description, as on a subdivision or record of survey map, or by metes and bounds, for purpose of sale, lease or separate use. 1. “Corner lot” means a lot situated at the intersection of two or more streets, or bounded on two or more adjacent sides by street lines. 2. “Flag lot” means a lot having access to a street by means of a private driveway or parcel of land not otherwise meeting the requirement of this title for lot width. 3. “Interior lot” means a lot other than a corner lot. 4. “Key lot” means the first lot to the rear of a corner lot, the front line of which is a continuation of the side line of the corner lot, and fronting on the street which intersects or intercepts the street on which the corner lot fronts. “Lot area” means the area of a lot measured horizontally between boundary lot lines, but excluding a portion of a flag lot providing access to a street and lying between a front lot line and the street, and excluding any portion of a lot within the lines of any natural watercourse, river, stream, creek, waterway, channel or flood control or drainage easement and excluding any portion of a lot acquired, for access and street right-of-way purposes, in fee, easement or otherwise. “Lot coverage” means the following: 1. “Single-family residential use” means the total land area within a site that is covered by buildings, including all projections, but excluding ground-level paving, 260 landscape features, lightwells, and open recreational facilities. Sheds are included in lot coverage. 2. “All other uses except single-family residential” means the total land area within a site that is covered by buildings, but excluding all projections, ground-level paving, landscape features, and open recreational facilities. “Lot depth” means the horizontal distance from the midpoint of the front lot line to the midpoint of the rear lot line, or to the most distant point on any other lot line wher e there is no clear rear lot line. “Lot line” means any boundary of a lot. 1. “Front lot line” means on an interior lot, the lot line abutting a street, or on a corner lot, the shorter lot line abutting a street, or on a flag lot, the interior lot line most parallel to and nearest the street from which access is obtained. Lot line length does not include arc as identified on corner parcels. 2. “Interior lot line” means any lot line not abutting a street. 3. “Rear lot line” means the lot line not intersecting a front lot line which is most distant from and the most closely parallel to the front lot line. A lot bounded by only three lot lines will not have a rear lot line. 4. “Side lot line” means any lot line which is not a front or rear lot line. 5. “Street lot line” means any lot line abutting a street. “Lot of record” means a lot which is part of a subdivision recorded in the office of the County Recorder, or a lot or parcel described by metes and bounds which has been recorded. “Lot width” means the horizontal distance between side lot lines, measured at the required front setback line. “Lower-income household” means a household whose gross income does not exceed that established by Health and Safety Code Section 50079.5, as may be amended. SECTION 4. Section 19.08.030 (s), “‘S’ Definitions”, of Chapter 19.08 of Title 19 of the Cupertino Municipal Code is hereby amended to read as follows: “S” Definitions: “Screened” means shielded, concealed, and effectively hidden from view at an elevation of up to eight feet above ground level on adjoining parcels, or from adjoining parcels, within ten feet of a lot line, by a fence, wall, hedge, berm, or similar structure, architectural or landscape feature, or combination thereof. “Senior citizens” means: 1. Persons at least sixty-two years of age; or 2. Persons at least fifty-five years of age or otherwise qualified to reside in a senior citizen housing development, in accordance with State and federal law. 261 “Senior citizen housing development” means a housing development with at least thirty-five dwelling units as defined in the Civil Code Section 51.3, or a mobilehome park that limits residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the Civil Code, as may be amended. “Setback line” means a line within a lot parallel to a corresponding lot line, which is the boundary of any specified front, side or rear yard, or the boundary of any public right- of-way or private road, whether acquired in fee, easement, or otherwise, or a line otherwise established to govern the location of buildings, structures or uses. Where no minimum front, side or rear yards are specified, the setback line shall be coterminous with the corresponding lot line. Setback Area, Required. “Required setback area” means open space, unoccupied and unobstructed from the ground upward, except as provided in this title, between the lot line and the setback line on the same parcel. 1. Setback Area, Required Front Yard. “Required front-yard setback area” means the setback area extending across the front of a lot between the front lot line and the setback line. Front yards shall be measured either by a line at right angles to the front lot line, or by a radial line in the case of a curved front lot line, except flag lots which is the area extending across the full extent of the buildable portion of the flag lot measured from the property line which is parallel to and nearest the street line and at which point the lot width equals a minimum of sixty feet. The Director of Community Development shall have the discretion to modify the provisions of this definition when it improves the design relationship of the proposed buildings to adjacent buildings or parcels. 2. Setback Area, Required Rear Yard. “Required rear-yard setback area” means the area extending across the full width of the lot between the rear lot line and the nearest line or point of the main building. 3. Setback Area, Required Side Yard. “Required side-yard setback area” means the area between the side lot line and the nearest line of a building, and extending from the front setback line to the rear setback line. “Shopping center” means a group of commercial establishments, planned, developed, owned or managed as a unit, with off-street parking provided on the parcel. “Shopping center,” for purposes of the Sign Ordinance, means a retail entity encompassing three or more tenants within a single building or group of buildings, but within which individual business located in defined tenant spaces are owned and managed separately from the shopping center management. “Sidewalk site triangle” is a triangular shaped area described in Cupertino Standard Detail 7-6. (See Appendix C, Cupertino Standard Detail; Sidewalk Site Triangle (Sidewalk Clearance at Driveway) “Sign” means any device, fixture, placard, or structure that uses any color, form, graphic, illumination, symbol, or writing to advertise, announce the purpose of, or identify the purpose of a person or entity, to communicate information of any kind to the public. 262 1. “Animated sign” means any sign which projects action, motion or the illusion thereof, changes intensity of illumination or changes colors, including the likes of balloons, banners and flags, and blowing or air-powered attractions, but excluding electronic readerboard signs and signs that display the current time or temperature. 2. “Blade sign” means a pedestrian oriented sign, adjacent to a pedestrian walkway or sidewalk, attached to a building wall, marquee, awning or arcade with the exposed face of the sign in a plane perpendicular to the plane of the building wall. 3. “Development Identification Sign” means a ground sign at the major entry to a residential development with twenty units or more meant to identify the name and address of the development. 4. “Directional sign” means any sign which primarily displays directions to a particular area, location or site. 5. “Directory sign” means any outdoor listing of occupants of a building or group of buildings. 6. “Electronic readerboard sign” means an electronic sign intended for a periodically- changing advertising message. 7. “Freeway oriented sign” means any sign which is located within six hundred sixty feet and visible from a freeway right-of-way as defined by Section 5200 of the California Business and Professions Code. 8. “Garage sale signs” means any sign used for advertising a garage or patio sale as defined in Chapter 5.16 of the Cupertino Municipal Code. 9. “Ground sign” means any sign permanently affixed to the ground and not supported by a building structure. The height of the sign shall be measured from the grade of the adjoining closest sidewalk to the top of the sign including trim. 10. “Identification sign” means any sign whose sole purpose is to display the name of the site and the names of the occupants, their products or their services. 11. “Illegal sign” means any sign or advertising statuary which was not lawfully erected, maintained, or was not in conformance with the provisions of this title in effect at the time of the erection of the sign or advertising statuary or which was not installed with a valid permit from the City. 12. “Illuminated sign” means any sign utilizing an artificial source of light to enhance its visibility. 13. “Informational sign” means any sign which promotes no products or services, but displays service or general information to the public, including the likes of hours of operation, rest room identifications and hazardous warnings. 263 14. “Landmark sign” means an existing, legal non-conforming ground sign that has a distinctive architectural style. 15. “Nonconforming sign” means any sign or advertising statuary that was legally erected and had obtained a valid permit in conformance with the ordinance in effect at the time of the erection of the sign but which became nonconforming due to the adoption of the ordinance codified in this title. 16. “Obsolete sign” means any sign that displays incorrect or misleading information, promotes products or services no longer available at that site or identifies departed occupants. 17. “Off-site sign” means any sign not located on the premises of the business or entity indicated or advertised by the sign. This definition shall include billboards, poster panels, painted bulletins and other similar advertising displays. 18. “On-site sign” means a sign directing attention to a business, commodity, service or entertainment conducted, sold or offered upon the same premises as those upon which the sign is maintained. 19. “Political sign” means a temporary sign that encourages a particular vote in a scheduled election and is posted prior to the scheduled election. 20. “Portable Sign or Display” means any outdoor sign or display not permanently attached to the ground or a structure on the premises it is intended to occupy and displayed only during business hours. Portable sign or display includes A-frames, flower carts, statues, and other similar devices used for advertising as determined by the Director. 21. “Project announcement sign” means any temporary sign that displays information pertinent to a current or future site of construction, including the likes of the project name, developers, owners and operators, completion dates, availability and occupants. 22. “Projecting sign” means any sign other than a wall sign that is attached to and projects from a structure or building face or wall. 23. “Real estate sign” means a temporary sign indicating that a particular premises is for sale, lease or rent. 24. “Roof sign” means a sign erected between the lowest and highest points of a roof. 25. “Street address sign” means any sign that displays only the street address number(s) of the site and, at the option of the property owner, the street name. 26. “Temporary Sign” means any sign, display, banner or promotional device which is designed or intended to be displayed only during the allowable business hours or for short periods of time as specified by the Director of Community Development. 264 27. “V-shaped signs” means any sign consisting of two vertical faces, or essentially vertical faces, with one common edge and which appears as the letter V when viewed directly from above. 28. “Vehicle sign” means a sign painted on or attached to an operable or movable vehicle; in the case of motor vehicles, “operable” shall be defined as having a valid license plate. 29. “Wall sign” means any sign that is attached, erected or painted on a structure attached to a building, a canopy structure, or the exterior wall of a building with the exposed face of the sign parallel to the wall. 30. “Window sign” means any sign that is intended to be read from outside of the structure or painted on a window facing a public street, parking lot, pedestrian plaza or walkway accessible to the public. “Sign Area” for an individually lettered sign without a background, is measured by enclosing the sign copy with a continuous perimeter in simple rectilinear forms. (See Appendix D for examples of sign area calculation) The sign area for a sign with borders and/or background is measured by enclosing the exterior limits of the border or background with a single continuous perimeter. The necessary supports, uprights, and/ or the base on which such sign is placed, shall be excluded from the sign area. When a sign is separated by thirty-six inches or more, the area of each part may be computed separately. “Single-family use” means the use of a parcel for only one dwelling unit. “Specialty food stores” means uses such as bakeries, donut shops, ice cream stores, produce markets and meat markets, or similar establishments where food is prepared and/or sold primarily for consumption off the premises. “Site,” for purposes of the Sign Ordinance, means a piece of land as shown on a subdivision map, record of survey map or assessor’s parcel map, which constitutes one development site and which may be composed of a single unit of land or contiguous units under common ownership, control, or development agreement. “Special event,” for purposes of the Sign Ordinance means a temporary promotional event including, but not limited to, a special sale on merchandise or services, or grand openings. “Special Event Banner” means any temporary sign constructed of pliable materials such as canvas, fabric, vinyl plastic or similar materials which will withstand exposure to wind and rain without significant deterioration, and which does not require a building permit for its construction, or installation outside of a building. “Special needs housing,” for purposes of Chapter 19.56, Density Bonus, means any housing, including supportive housing, intended to benefit, in whole or in part, persons identified as having special needs relating to mental health; physical disabilities; developmental disabilities, including without limitation intellectual disability, cerebral palsy, epilepsy, and autism; and risk of homelessness, and housing intended to meet the 265 housing needs of persons eligible for mental health services funded in whole or in part by the Mental Health Services Fund, as set forth in Government Code Section 65915(p)(3)(C), as may be amended. “Specified anatomical areas” means: 1. Less than completely and opaquely covered human genitals, pubic region, buttocks and female breast below a point immediately above the top of the areola; and 2. Human male genitals in a discernibly turgid state, even if completely and opaquely covered. “Specified sexual activities” means: 1. Human genitals in a state of sexual stimulation or arousal; 2. Acts of human masturbation, sexual intercourse or sodomy; 3. Fondling or other erotic touching of human genitals, pubic region, buttocks or female breast. “Story” means that portion of a building, excluding a basement, between the surface of any floor and the surface of the next floor above it, or if there is no floor above it, then the space between the floor and the ceiling next above it. “Street” means a public or private thoroughfare the design of which has been approved by the City which affords the principal means of access to abutting property, including avenue, place, way, drive, lane, boulevard, highway, road, and any other thoroughfare except an alley as defined in this chapter. 1. Street, Public. “Public street” means all streets, highways, lanes, places, avenues and portions and including extensions in the length and width, which have been dedicated by the owners to public use, acquired for public use, or in which a public easement for roadway purposes exists. “Street frontage,” for purposes of the Sign Ordinance, means the length of a site along or fronting on a public or private street, driveway or other principal thoroughfare, but does not include such length along an alley, watercourse, railroad right-of-way or limited access roadway or freeway. “Structure” means that which is built or constructed, an edifice or building of any kind, or any piece of work artificially built up or composed of parts joined together in some definite manner. 1. Structure, Recreational. “Recreational structure” means any affixed accessory structure or portion, which functions for play, recreation or exercise (e.g., pool slides, playhouses, tree houses, swings, climbing apparatus, gazebos, decks, patios, hot tubs and pools) but does not include portable play structures, such as swings or climbing apparatus. “Structurally attached” means any structure or accessory structure or portion thereof, which is substantially attached or connected by a roof structure or similar physical attachment. 266 “Supportive housing” (per Government Code Section 65582(f), as may be amended) means housing with no limit on length of stay, that is occupied by the target population, and that is linked to onsite or offsite services that assist the supportive housing resident in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community. SECTION 5. Subsection (7) of Table 19.20.020 of Section 19.20.020 of Chapter 19.20 of Title 19 of the Cupertino Municipal Code entitled “Permitted, Conditional and Excluded Uses in Agricultural and Residential Zones” is hereby amended as follows: Table 19.20.020–Permitted, Conditional and Excluded Uses in Agricultural and Residential Zones Uses Zoning Districts A A-1 R-1 RHS R1C R-2 R-3 NO CHANGE ROWS #1 - #6b 7. An accessory dwelling unit Which conforms to the requirements of Chapter 19.112; P P P P - - - NO CHANGE ROWS #8 - #42 SECTION 6. Section 19.24.040 of Chapter 19.24 of Title 19 of the Cupertino Municipal Code is hereby amended to read as follows: 19.24.040 Site Development Regulations. A. Lot Area Zoning Designations. Minimum lot area shall correspond to the number (multiplied by one thousand square feet) following the A zoning symbol. Examples: Zoning Symbol Number Minimum Lot Area Square Feet A/A1 215 215,000 A 400 400,000 A1 43 43,000 B. Minimum Lot Area: Agricultural (A) Zones Agricultural- Residential (A-1) 267 Zones 1. Minimum Lot size 215,000 square feet (with or without incidental residential use) 215,000 square feet (with no incidental residential use) 2. Incidental residential use 43,000 square feet per dwelling unit. Dwelling units in farm labor camps for temporary laborers, and accessory dwelling units shall not be counted for the purpose of determining required lot area under this section. C. Required Lot Shape. Each lot in an A zoning district shall have such shape that a square with a side of two hundred feet can be inscribed in this lot. SECTION 7. Section 19.52.020 of Chapter 19.52 of Title 19 of the Cupertino Municipal Code is hereby amended to read as follows: 19.52.020 Applicability of Regulations. A request for reasonable accommodation may: A. Be made only for existing residential dwellings or accessory dwelling units. B. Be made by any person who is defined as disabled under the Acts, when the application of development or land use regulations act as a barrier to fair housing opportunities. C. Include a variance to the development or land use regulations that would eliminate regulatory barriers and provide a person with a disability equal opportunity to housing of their choice. SECTION 8. Chapter 19.112 of Title 19 of the Cupertino Municipal Code is hereby amended to be numbered, entitled, and to read as follows: CHAPTER 19.112: ACCESSORY DWELLING UNITS IN R-1, RHS, A AND A-1 ZONES Section 19.112.010 Purpose. 19.112.020 Applicability of regulations. 19.112.030 Site development regulations. 19.112.040 Review process. 268 19.112.010 Purpose. The purpose of this chapter is to promote the goal of affordable housing within the City through provision of additional housing in certain residential and agricultural zoning districts in a manner which minimizes adverse impacts of accessory dwelling units on neighborhoods. 19.112.020 Applicability of Regulations. Notwithstanding any provision of this title to the contrary, one accessory dwelling unit: 1. Is permitted on lots in R-1, RHS, A and A-1 zoning districts and, notwithstanding the underlying zoning, an accessory dwelling unit developed pursuant to this chapter does not cause the lot upon which it is located to exceed its maximum the allowable density on the lot, 2. Must comply with the site development regulations and guideline specified in those zoning districts for dwelling units, including but not limited to, lot coverage, floor area ratio, height, setbacks, landscape etc. the regulations contained in this chapter, Chapter 19.100, Accessory Structures/Buildings, Chapter 19.124, Parking, except as those standards may be modified by this Chapter; 19.112.030 Site Development Regulations. Site Development Regulations for Accessory Dwelling Units are as identified in Table 19.112.030. Table 19.112.030: Site Development Regulations for Accessory Dwelling Units Attached to Principal Dwelling Unit Detached Conversion of portions of existing structures to an accessory dwelling unit New addition to existing accessory dwelling unit and new accessory dwelling unit A. Maximum size of living space, exclusive of decks and garages 1. Lots < 10,000 s.f. 800 s.f. 2. Lots ≥ 10,000 s.f. 1,200 s.f. B. Second- story accessory dwelling unit Allowed if the unit: 1. Is a conversion of existing second story portions of the principal dwelling unit; and 2. Complies with applicable landscape requirements to adjoining dwellings consistent with Section 19.28.120. Not allowed 269 Table 19.112.030: Site Development Regulations for Accessory Dwelling Units Attached to Principal Dwelling Unit Detached Conversion of portions of existing structures to an accessory dwelling unit New addition to existing accessory dwelling unit and new accessory dwelling unit C. Parking 1. Parking for accessory dwelling unit None One additional off-street parking space shall be provided, if the principal dwelling unit has less than the minimum off-street parking spaces for the applicable residential zoning district in which it is located, as required in Chapter 19.124 unless the unit meets the following requirements: a. Is within one-half (1/2) mile of a public transit stop; or b. Located in an architecturally and historically significant historic district; or c. Occupant of the ADU is not allowed/ offered a required on-street parking permit; or d. Located within one block of a car share vehicle pick-up location. 2. Replacement parking spaces when new accessory dwelling unit converts existing covered, uncovered or enclosed parking spaces required for the principal dwelling unit a. Replacement spaces must be provided for the principal dwelling unit to meet the minimum off-street parking spaces for the applicable residential zoning district in which it is located, as required in Chapter 19.124. b. Replacement spaces may be located in any configuration on the same lot as the accessory dwelling unit, including but not limited to covered spaces, uncovered spaces, tandem spaces or by use of mechanical automobile parking lifts. c. Any replacement parking spaces provided must comply with the development regulations for the applicable zoning district in which it is located, Chapter 19.124, Parking and Chapter 19.100, Accessory Buildings/Structures. 270 Table 19.112.030: Site Development Regulations for Accessory Dwelling Units Attached to Principal Dwelling Unit Detached Conversion of portions of existing structures to an accessory dwelling unit New addition to existing accessory dwelling unit and new accessory dwelling unit D. Direct outside access 1. Independent outdoor access must be provided without going through the principal dwelling unit. 2. Where second-story accessory dwelling units are allowed, entry shall not be provided by an exterior staircase. E. Screening from a public street All access to accessory dwelling units shall be screened from a public street. 19.112.040 Review Process. A. Applications for accessory dwelling units conforming to the requirements of this chapter shall be reviewed ministerially without discretionary review and must be approved or denied within the time frame specified in Government Code Section 65852.2. B. Accessory structures should be compatible with the architectural style and materials of the principal structure. SECTION 9: Severability. Should any provision of this Ordinance, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of this Ordinance or the application of this Ordinance to any other person or circumstance and, to that end, the provisions hereof are severable. SECTION 10: Effective Date. This Ordinance shall take effect thirty days after adoption as provided by Government Code Section 36937. SECTION 11: Certification. The City Clerk shall certify to the passage and adoption of this Ordinance and shall give notice of its adoption as required by law. Pursuant to Government Code 271 Section 36933, a summary of this Ordinance may be published and posted in lieu of publication and posting of the entire text. SECTION 12: Continuity. To the extent the provisions of this Ordinance are substantially the same as previous provisions of the Cupertino Municipal Code, these provisions shall be construed as continuations of those provisions and not as amendments of the earlier provisions. INTRODUCED at a regular meeting of the Cupertino City Council the 15th day of November 2016 and ENACTED at a regular meeting of the Cupertino City Council on this ____ of __________ 2016 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: _________________ Grace Schmidt, City Clerk Barry Chang, Mayor, City of Cupertino 272 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2132 Name: Status:Type:Public Hearings Agenda Ready File created:In control:11/2/2016 City Council On agenda:Final action:12/6/2016 Title:Subject: Appeal of Kimberly Sandstrom Appeal Regarding Eligibility to Purchase Below Market Rate (BMR) Unit (Continued from November 1) Sponsors: Indexes: Code sections: Attachments:Staff Report A- Summary of Conflict of Interest Investigation B- Draft Resolution C- Housing Commission Resolution 16-06 D- Excerpts from BMR Manual Regarding Income Calculation E- Referenced Regluations (24 CFR 5.609(b) and (c) F- Technical Guide for Determining Income G- Attachments and Other Documents Provided by Appellant H - Sandstrom presentation Action ByDate Action ResultVer. City Council12/6/20161 Subject:AppealofKimberlySandstromAppealRegardingEligibilitytoPurchaseBelow Market Rate (BMR) Unit (Continued from November 1) ApproveResolutionNo.16-101regardingtheappealofMs.KimberlySandstromand affirmingtherecommendationoftheHousingCommissionregardingtheeligibilityofMs. Sandstrom to purchase a BMR unit CITY OF CUPERTINO Printed on 11/29/2016Page 1 of 1 powered by Legistar™273 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: November 1, 2016 Subject Appeal of Ms. Kimberly Sandstrom Regarding Eligibility to Purchase a Below Market Rate (BMR) Unit Recommended Action Approve the draft resolution regarding the appeal of Ms. Kimberly Sandstrom and affirming the recommendation of the Housing Commission regarding the eligibility of Ms. Sandstrom to purchase a BMR unit. Introduction 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 using the guidelines included in the Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units (the "BMR Manual"), which was approved by the City Council. The City contracts with West Valley Community Services ("WVCS") to manage the BMR Program, including the determination of eligibility of potential homebuyers. Kimberly Sandstrom has appealed the finding by WVCS that she did not qualify to purchase a moderate income level BMR unit in the City because her annual gross income exceeded the maximum allowable income for a two-person household at a moderate income level in Santa Clara County. On August 11, 2016 the Housing Commission recommended to the City Council that it find that Ms. Sandstrom was ineligible to purchase a BMR home because, based on her application, her income exceeded the established income limit. (See Exhibit C.) 274 2 Background In January 2016 a BMR unit became available for sale. Ms. Sandstrom was highest on the waiting list established by WVCS for purchase of the unit, with the appropriate household size and income. However, when her income documentation was reviewed by WVCS, her income was found to exceed the established income limit. She completed three levels of WVCS' internal grievance process, each of which affirmed the initial finding that her income exceeded the established income limit. In addition, while the WVCS grievance process was under way, she attended a City Council meeting and three City Housing Commission meetings under open time, during which she objected to the finding of her ineligibility to purchase the BMR Unit, and she submitted a packet to the City Council on March 15 containing materials regarding the determination of her income. Following that appearance, the City requested outside counsel to review the income determination. They concluded that her income exceeded the established income limit to qualify for a BMR unit. The WVCS grievance procedures at the time normally would have a fourth level of review, to the WVCS Board of Directors. Ms. Sandstrom provided the City with a copy of that appeal, which revealed that the BMR unit at issue had been sold to a WVCS employee. In light of the potential conflict of interest, the City requested that WVCS recuse itself such that the next level of appeal would be before the Housing Commission, which was intended to be the next stage of the appeal process in any case. WVCS agreed to recuse itself, and Ms. Sandstrom was informed that her appeal would move forward in front of the Housing Commission, which would make a recommendation to the City Council for a final decision. On June 23, 2016, the Housing Commission heard Ms. Sandstrom's appeal. The Housing Commission continued its decision on the appeal until the August 11th meeting to allow for more time to properly respond to her questions and to research how other local jurisdictions calculate income. On August 11, 2016, the Housing Commission heard the continuation of Ms. Sandstrom's appeal. After considering all evidence presented, the Housing Commission approved Resolution 16-06 by a 3-1 vote to recommend to the City Council that the City Council affirm the determination that Kimberly Sandstrom was ineligible to purchase the BMR home because her income exceeded the established income limit. The Commission also recommended that she be allowed to retain her current position on the BMR waiting list administered by WVCS. PowerPoints and other documentation provided by Ms. Sandstrom are attached as Exhibit G. 275 3 The City Council’s decision is the final level of review, subject to reconsideration. Calculation of Maximum Income The procedures governing the City's administration of the BMR Program are contained in Section 2.4 of the BMR Manual, based on the United States Department of Housing and Urban Development ("HUD") regulations contained in 24 CFR 5.609(b), delineates the process used to determine an applicant's annual gross income. In addition to "salary and other wages", annual gross income includes "bonuses and other compensation", in accordance with 24 CFR 5.609(b). Section 2.4 of the BMR Manual is attached as Exhibit D. The BMR Program uses income limits published by the California Department of Housing and Community Development. For a two-person household at a moderate income level in Santa Clara County, the income limit was $102,050 at the time she applied. (Income limits were updated by the California Department of Housing and Community Development in May 2016. The current limit is $102,800.) Ms. Sandstrom applied for the BMR unit as a two- person household. Therefore, for Ms. Sandstrom to have been eligible to purchase the BMR unit, her income could not exceed $102,050. Section 2.4.1 of the BMR Manual states that, to verify the applicant's sources of income, the City may request signed copies of federal tax returns for the most recent three years, W2 forms for most recent two years, and/or copies of the last three consecutive payroll stubs or other verification of employment. In Ms. Sandstrom's case, WVCS used her last three consecutive payroll stubs, which listed regular and bonus income, to determine her income eligibility. However, the bonus income at issue and discussed below would also have been shown on her W2 form and 2015 tax return, which may not have been available when she applied in January 2016. Calculation of Income The three payroll stubs provided by Ms. Sandstrom display gross wages in the amount of $3,692.80 paid biweekly. Therefore, to determine her gross annual wages, $3,692.80 is multiplied by 26 pay periods for a total of $96,012.80 per year. Since bonuses are also included in the calculation, as provided in the BMR Manual and the regulations adopted by HUD and contained in 24 CFR 5.609(b), the 2015 bonus pay would be added in the total amount of $7,635.34, which consisted of various types of bonuses. The total of Ms. Sandstrom's annual gross wages plus the total bonuses received was $103,648.14, which exceeded the January 2016 income limit of $102,050 for a two-person household at a 276 4 moderate income level in Santa Clara County. Therefore, Ms. Sandstrom's annual gross income was over the maximum permitted to be entitled to purchase the BMR Unit. To summarize: Gross income: $3,692.80 x 26 (pay periods) = $ 96,012.80 Bonus (per 24 CFR 5.609(b): 7,635.34 Total: $103,648.14 INCOME LIMIT: $102,050.00 The crux of Ms. Sandstrom's argument regarding her income eligibility is that the determination should be forward-looking under 24 CFR 5.609(a)(2), which states that annual income includes all amounts which "[a]re anticipated to be received from a source outside the family during the 12-month period following admission or annual reexamination effective date." The City’s BMR Manual at the time of her application excluded subsection (a) from its definition of annual income; it only referenced subsections (b) and (c). The Manual explicitly states that income is determined through past evidence of income (i.e. tax returns, W2 forms, and paystubs) and, as provided by 24 CFR 5.609(b), bonuses received during the years covered by those documents are part of the income calculation. However, using subsection (a) of this statute does not change the calculation. The income calculation is forward-looking, whether using subsection (a) or only subsections (b) and (c), in that the calculation uses past income data to project future income. This form of forward-looking projection using documentation of past income is uniformly used in both federal and local housing programs, as discussed below. In general, this use of past income is not adjusted unless there is firm documentation available to reflect changes in future income, such as a major life change since the last year (e.g., job loss, demotion, or promotion, retirement, or disability). The issue in this appeal is solely the extent to which past bonuses should be used to calculate current income. Ms. Sandstrom has provided evidence of a lower mid-year bonus in 2016 than she received in 2015 and evidence of her company's declining stock prices to show that her total bonuses will substantially decline this year. However, stock prices can fluctuate greatly in any given year, and performance during the preceding few months is not an indication of future stock performance. In addition, the stock price for her company was higher at the beginning of 2016 than it was at the beginning of 2013 when she received $8,000 in performance bonuses. As shown in her 277 5 presentations given at the June 23rd and August 11th Housing Commission meetings, Ms. Sandstrom's total bonuses have fluctuated over the past three years, but actually increased in 2015. Her bonuses in 2013 totaled $8,100; in 2014 totaled $6,150; and in 2015 totaled $7,635.34. The average of the past three years' bonuses is $7,295. Given bonus fluctuations in past years, it would be speculative to estimate the totality of potential yearly bonuses based on one mid-year bonus and her company's limited financial information available for the year at the time she made her application in January. Using the average bonus from the last 3 years, her income would still exceed the BMR limit. $7,295 (the average bonus) plus $96,012.80 (her base salary) equals $103,307.80, which exceeds the then income limit of $102,050 for a two-person household at a moderate income level in Santa Clara County. Income Calculations Used in Other Jurisdictions The income calculations used by the City are consistent with those used in other local jurisdictions. To research income calculations used in other jurisdictions, the City reviewed the BMR programs in other jurisdictions and those administered by BMR program consultants, including the City of Sunnyvale, Alameda County, the City of Emeryville, Palo Alto Housing Corporation, and Housing Trust Silicon Valley. Ms. Sandstrom had asked the City to consider using the City of Sunnyvale’s policies. Sunnyvale's standards for calculating income are essentially the same as Cupertino's. Sunnyvale follows the Technical Guide for Determining Income and Allowances for the HOME Program (a guide published by HUD) (the "HOME Guide") and 24 CFR 5.609 (referred to as the "Part 5" method), the same statute used by the City for its income calculations, to determine gross household income of their applicants. Under Part 5 and the HOME Guide, bonuses are explicitly included as income. The HOME Guide explains in its section entitled "Anticipating Income" that to calculate an applicant's income, the public agency "must project a household's income in the future. To do so, a 'snapshot' of the household's current circumstances is used to project future income. In general, a [public agency] should assume that today's circumstances will continue for the next 12 months, unless there is verifiable evidence to the contrary." This is entirely consistent with the City's method of calculating income. The City uses an applicant household's current earnings from the past year to project the household's future income. Further, the HOME Guide goes on to specify that "[t]his method should be used even when it is not clear that the type of income received currently will continue in the coming year." For Section 24 CFR 5.609 and the entire excerpt from the HOME Guide, please see Exhibits E and F to this staff report. 278 6 Other jurisdictions, including those that use Neighborhood Stabilization Program homebuyer funds, also use the HOME Guide to calculate applicant incomes for their programs. The Housing Commission made a recommendation at the August 11th meeting that the City adopt the use of the HOME Guide for its BMR Manual and, for further clarity and conformity with other jurisdictions, incorporate the entire 24 CFR 5.609 provisions in the Manual, including subpart(a). Though it does not change the method of income calculation, adoption of the HOME Guide would provide further clarity for applicants and WVCS and provides helpful examples of income calculations. It is important that WVCS and the City have clear guidance as to how to calculate income. Given the critical housing shortage in Cupertino, and varying incomes in the "gig economy", it can be expected that the issue of projecting income forward will arise repeatedly. The HOME Guide provides the best guidance available. The Council agenda item regarding BMR Manual revisions incorporates these changes. Conflict of Interest Issues and Investigation As described earlier in this report, after Ms. Sandstrom was found to be over income, the BMR unit was sold to a WVCS employee. Ms. Sandstrom alleged that this sale violated State conflict of interest laws (Section 1090 and the Political Reform Act) and has asked that the sale be reversed. Regardless of Ms. Sandstrom’s income calculation, it is important that the City’s BMR program be fairly administered. As a result, the City contracted with outside counsel to conduct a formal conflict of interest investigation. A summary of that investigation is attached as Exhibit A. The investigation has concluded that there is no evidence that a preference was given to the WVCS employee, who was the next qualified applicant on the waiting list with the appropriate household size and income and whose income was calculated consistent with the BMR Manual. The investigation also concluded that there was no violation of State conflict of interest laws. Nonetheless, the City was concerned about the appearance of a conflict when WVCS reviews the application of its own employee. Consequently, on August 2, 2016 the City Council approved changes to the BMR Manual that require that if any employee of any consultant involved with City housing programs is on the waiting list, all review and evaluation of the employee’s application must be performed by the City. Additionally, the City was concerned that the former lengthy appeal process could not be completed before the BMR unit needed to be sold. In the future, any appeal will be heard first by the 279 7 Executive Director of WVCS, or by the Director of Community Development if a WVCS employee is involved, with a final second level appeal decided by the City Council. The BMR unit will not be sold before the appeal is completed. Conclusions and Recommendation Staff recognizes how close Ms. Sandstrom was to income qualifying for a BMR unit and that she might well qualify at a future time. In addition, her appeal could not be completed prior to the sale of the BMR unit. In recognition of these factors, the Housing Commission recommended that Ms. Sandstrom maintain her current priority for a two-bedroom unit on the BMR Program waiting list when new and continuing waiting list applications are accepted in October. Sustainability Impact None. Fiscal Impact None. Prepared by: Benjamin Fu, Assistant Director of Community Development Aarti Shrivastava, Assistant City Manager/Director of Community Development Approved for Submission by: David Brandt, City Manager Attachments: A. Summary of Conflict of Interest Investigation B. City Council Resolution No. 16-07 C. Housing Commission Resolution No. 16-06, a Resolution of the Housing Commission of the City of Cupertino Regarding the Appeal of Ms. Kimberly Sandstrom D. BMR Administrative Manual (excerpts regarding income calculation) E. Referenced Regulations (24 CFR 5.609) F. Technical Guide for Determining Income and Allowances for the HOME Program (excerpts regarding income calculations) G. Letters of Appeal and Decisions and Other Documentation Provided by Kimberly Sandstrom H. Sandstrom presentation 280 1 394\17\1957448.3 Exhibit A Summary of Investigation Regarding Conflict of Interest Allegations Prepared by Celia W. Lee, Goldfarb & Lipman LLP Background of Investigation The City of Cupertino engaged the law firm of Goldfarb & Lipman LLP to investigate whether there were any violations of conflict-of-interest laws in the sale of the two-person household, moderate-income Below Market Rate unit at 20500 Town Center Lane, Unit 262 ("BMR Unit") to Michelle Ma (referred to at times as "Purchaser Ma"), who was an employee of West Valley Community Services ("WVCS") at the time of the sale. WVCS, a non-profit organization of approximately 18 employees, administers the BMR Program for the City of Cupertino in addition to providing other social services in the community. This summary provides an overview of Goldfarb & Lipman LLP's findings and conclusions from the investigation. The investigation involved interviews of witnesses, observation of the office surroundings at WVCS, and review of a substantial number of documents obtained from various sources, including WVCS, the City, and applicant Kimberly Sandstrom ("Sandstrom"). Documents reviewed include WVCS files pertaining to the formation of the 2015-2016 BMR waiting list via random lottery pursuant to the BMR Manual, records of contacts with potential applicants, and application files for Purchaser Ma and Sandstrom, including income eligibility documentation. The investigation also involved review and analysis of the law pertaining to Government Code section 1090, which prohibits public officials and employees from being financially interested in "any contract made by them in their official capacity or by any body or board of which they are members," and the Political Reform Act, which disqualifies public officials from participating in government decisions in which they have a financial interest. Findings The investigation revealed that the methodology employed by WVCS and its Housing Program Manager, Christine Nguyen, to create the annual waiting list for BMR ownership units comported with the procedures set forth in the BMR Manual. As part of our investigation, we reviewed the step-by-step process employed by WVCS, as set forth in Sections 2.3 and 2.3.1 of the BMR Manual. The 2015-2016 waiting list of 49 people, comprised of applicants of varying household sizes and income levels, was created by a random lottery. Sandstrom, Purchaser Ma, and other persons who had submitted an Eligibility Form in October 2015 and were deemed eligible to be on the waiting list based 281 2 394\17\1957448.3 on stated income were assigned priority points according to whether they lived or worked in Cupertino. Within each priority grouping, eligible applicants received a place on the waiting list by random drawing. Sandstrom, who had three priority points, was number 12 on the waiting list. Purchaser Ma had two priority points and was number 23 on the waiting list. While Ma was eleven places down from Sandstrom on the waiting list, Ma was the next person in line after Sandstrom who applied as a household of two persons at a moderate income level. Everyone else between Sandstrom and Ma on the waiting list either was not a household of two persons and/or was not at a moderate income level. The BMR Unit's owner/seller notified the City and WVCS on January 20, 2016 that she wished to sell the unit, and that she needed to close by March 4, 2016 as a new home purchase out of state was contingent on the sale of the BMR Unit. However, due to her obligation to remedy some building code violations for work she had illegally performed on the unit, it was not available for sale until February 9. Starting on January 20, Nguyen contacted potential applicants for the BMR Unit. As of the time that the unit became available, Sandstrom was the primary applicant, as she was the person highest on the waiting list with a household of two persons at a moderate income level. Purchaser Ma was the first backup applicant, and another individual was the second backup. Sandstrom (with a family member as the second household member) completed an application for the unit, but upon review and evaluation of her income documentation, WVCS determined that her income exceeded the maximum for that BMR Unit. Thus, she was deemed ineligible to purchase the BMR Unit. Purchaser Ma, as the first backup from the waiting list, also completed an application for the unit, with her adult family member as the second household member. WVCS reviewed Ma and her adult family member's income documentation and concluded their household income fell within the appropriate limit. WVCS approved their purchase of the BMR Unit, and the sale closed on March 29, 2016. After the City received documentation during Sandstrom's appeal process alleging conflict of interest violations, Goldfarb & Lipman LLP independently reviewed all income eligibility documentation and calculations for both Sandstrom and Purchaser Ma, and concluded that (1) Sandstrom's income exceeded the limits and (2) Ma and her adult family member's income was within the income limits, and they qualified for the unit. Purchaser Ma first started working for WVCS in 2008 as a Family Support Specialist, a professional social work position. As she progressed in seniority, she came to supervise other, more junior individuals who performed various social work duties at WVCS. From July 2015-onward, Ma's position at WVCS was Director of Client Services. She did not 282 3 394\17\1957448.3 head any departments within WVCS. All WVCS witnesses confirmed Ma did not have any involvement in the BMR Program as part of her job duties, and there is no evidence that she had any involvement, knowledge, or influence regarding the BMR Program. Ma left WVCS for other social work employment at the end of April 2016. WVCS had its own conflict of interest policy regarding the BMR Program in effect since July 2011. The policy prohibited upper management (Executive Director and Department Directors) and any staff who participated in administering the BMR Program (i.e., Christine Nguyen and any staff she supervised) from applying. The policy also dictated that there would be no special consideration for any staff member who applied, and a staff member applicant would be subject to the same BMR requirements set forth by the City and WVCS as any other applicant. A violation of Government Code section 1090 exists if the pertinent individual participated in the making of a contract in their official capacity and also had a financial interest in the contract. Independent contractors or consultants to public entities (such as WVCS) are subject to its restrictions. In terms of the Political Reform Act, one is prohibited from making, participating in, influencing or attempting to use their official position to influence any government decisions in which one has a financial interest. Government Code section 87100 et seq. Our investigation found that there were no violations in this instance. As an initial matter, while her employer was an independent contractor to the City, it is questionable whether Purchaser Ma can be considered as such, as her social work duties at WVCS were not specifically designated to be in service for the City. Assuming for the sake of argument that Ma herself can be considered as an independent contractor to the City by virtue of her employment with WVCS, Ma's purchase of the BMR Unit was not the "making" of a contract in her official capacity. She did not participate in any actions or determinations that led to her place on the waiting list or the successful qualified applicant; she had no control over the selection or qualification process; and she never had any involvement or input in the BMR Program or its administration by WVCS. Everything leading to her purchase of the BMR Unit, other than her initial decision to apply, came about by circumstances outside her control. Nguyen and Purchaser Ma were friendly co-workers, but there is no evidence Nguyen gave Ma any preference or advantage in the sales or qualification process for the BMR Unit. Rather, the investigation found otherwise. The process of creating the waiting list, which determined Ma's position on the list as the person next in line after Sandstrom for a two-person household and moderate income unit, was random and followed the BMR 283 4 394\17\1957448.3 Manual procedures. As mentioned previously, this office reviewed WVCS's income calculations for both Sandstrom and Purchaser Ma and determined them to be correct. Conclusions In sum, our investigation found no conflict of interest violations. We acknowledge that on August 2, 2016, the City Council approved changes to the BMR Manual that (1) require that if any employee of any consultant involved with City housing programs is on the BMR waiting list, all review and evaluation of the employee’s application must be performed by the City; and (2) in the future, any appeal will be heard first by the Executive Director of WVCS, or by the Community Development Director if a WVCS employee is involved, with a final second level appeal decided by the City Council. The BMR unit will not be sold before the appeal is completed. We believe these actions by the Council are well-advised to avoid any appearance of a conflict in the future. 284 1 CITY OF CUPERTINO 10300 Torre Avenue Cupertino, California 95014 RESOLUTION NO. 16-101 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO REGARDING THE APPEAL OF MS. KIMBERLY SANDSTROM AND AFFIRMING THE RECOMMENDATION OF THE HOUSING COMMISSION REGARDING THE ELIGIBILITY OF MS. SANDSTROM TO PURCHASE A BMR UNIT 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 (the “BMR Manual”) 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, the City contracts with West Valley Community Services ("WVCS") to manage the BMR program, including the determination of eligibility of potential applicants; WHEREAS, applicants who desire to rent or purchase a BMR unit in the City must complete an application demonstrating that the applicant's annual gross income does not exceed the maximum published limit for the BMR unit; and WHEREAS, WVCS maintains a waiting list of qualified applicants who wish to rent or purchase a BMR unit; and WHEREAS, Kimberly Sandstrom applied to purchase a BMR unit that became available in January 2016; and WHEREAS, based on the requirements of the BMR Manual, WVCS determined that Ms. Sandstrom's annual gross income exceeded the established income limit to purchase the BMR unit; and 285 2 WHEREAS, Ms. Sandstrom has completed three levels of appeal at WVCS; and WHEREAS, Ms. Sandstrom has completed a fourth level of appeal to the Housing Commission, which made a recommendation to the City Council that the City Council affirm the determination that Kimberly Sandstrom was ineligible to purchase a BMR unit because her income exceeded the established income limit, but permit Ms. Sandstrom to retain her current position on the BMR waiting list; and WHEREAS, Cupertino Municipal Code Section 2.08.096 regarding a petition for reconsideration applies to this Council adjudicatory action. Further, the City of Cupertino has adopted the time limits contained in the California Code of Civil Procedure Section 1094.6 and the time within which to seek judicial review of a final decision is governed by that section. 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. Kimberly Sandstrom's income was correctly determined to exceed the established maximum allowable income for a two-person household at a moderate income level in Santa Clara County. Her income was correctly determined to be $103,648.14, consisting of biweekly income of $96,012.80 and bonus income of $7.635.34, for a total income of $103,648.14, based on the provisions of the BMR Manual and as described in the staff report. Section 2. The City Council hereby further provides that Kimberly Sandstrom retain her current priority for a two-bedroom unit on the BMR waiting list maintained by WVCS when new and continuing waiting list applications are accepted in October. 286 3 PASSED AND ADOPTED this 6th day of December, 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 287 Attachment C RESOLUTION NO. 16-06 A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CUPERTINO REGARDING THE APPEAL OF MS. KIMBERLY SANDSTROM WHEREAS, the City of Cupertino (the "City") administers a Below Market- Rate (BMR) housing program; and WHEREAS, the City contracts with West Valley Community Services ("WVCS") to manage the BMR program, including the determination of eligibility of potential applicants; WHEREAS, the Policy and Procedures Manual for Administering Deed-Restricted Affordable Housing Units (the “BMR Manual”), adopted by the City Council, serves as the day-to-day operational manual for both City staff and WVCS in administering the BMR program; and WHEREAS, applicants who desire to rent or purchase a BMR unit in the City must complete an application demonstrating that the applicant's annual gross income does not exceed the maximum published limit for the BMR unit; and WHEREAS, WVCS maintains a waiting list of qualified applicants who wish to rent or purchase a BMR unit; and WHEREAS, Kimberly Sandstrom applied to purchase a BMR unit that became available; and WHEREAS, based on the BMR Manual, WVCS determined that Ms. Sandstrom's annual gross income exceeded the established income limit to purchase the BMR unit; and WHEREAS, Ms. Sandstrom has completed three levels of appeal at WVCS; and WHEREAS, Ms. Sandstrom has further appealed to the Housing Commission, which will make a recommendation to the City Council for the final decision. NOW, THEREFORE, BE IT RESOLVED, after careful consideration of the facts, exhibits, staff report, testimony and other evidence submitted in this matter, that the Housing Commission recommends that the City Council affirm the determination that Kimberly Sandstrom was ineligible to purchase a BMR unit because her income exceeds 288 Attachment C the established income limit, as calculated consistent with the BMR Manual in effect at the time of the determination of her income; and BE IT FURTHER RESOLVED that, because the appeal procedures then in place did not allow Ms. Sandstrom to complete her appeal before the affected BMR unit was sold, the Housing Commission further recommends that the City Council permit Ms. Sandstrom to retain her current position on the BMR waiting list. PASSED AND ADOPTED this 11th day of August 2016 at a regular meeting of the Housing Commission of the City of Cupertino by the following roll call vote: Vote: AYES: Harvey Barnett, Rajeev Raman, Sue Bose NOES: Nina Daruwalla ABSENT: Shirley Chu ABSTAIN: ATTEST: APPROVED: /s/ Aarti Shrivastava /s/ Harvey Barnett Aarti Shrivastava, Assistant City ManagerHarvey Barnett, Chair, Housing Commission 289 Exhibit D D-1 Excerpts Regarding Income Calculation - Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units 290 Exhibit E E-1 Referenced Regulations (24 CFR 5.609(b) and (c)) 291 Exhibit E E-2 292 Exhibit E E-3 293 Exhibit E E-4 294 Exhibit F F-1 Technical Guide for Determining Income and Allowances for the HOME Program Anticipating Income The HOME regulations at 24 CFR 92.203(d)(1) require that, for the purpose of determining eligibility for HOME assistance, a PJ must project a household’s income in the future. To do so, a “snapshot” of the household’s current circumstances is used to project future income. In general, a PJ should assume that today’s circumstances will continue for the next 12 months, unless there is verifiable evidence to the contrary. For example, if a head of household is currently working for $7.00 per hour, 40 hours per week, the PJ should assume that this family member will continue to do so for the next year. Thus, estimated earnings will be $7.00 per hour multiplied by 2,080 hours, or $14,560 per year. This method should be used even when it is not clear that the type of income received currently will continue in the coming year. For example, assume a family member has been receiving unemployment benefits of $100 per month for 16 weeks at the time of income certification. It is unlikely that the family member will continue on unemployment for another 52 weeks. However, because it is not known whether or when the family member will find employment, the PJ should use the current circumstances to anticipate annual (gross) income. Income would therefore be calculated as follows: $100 per week x 52 weeks, or $5,200. The exception to this rule is when documentation is provided that current circumstances are about to change. For example, an employer might report that an employee currently makes $7.50 an hour, but a negotiated union contract will increase this amount to $8.25 an hour eight weeks from the date of assistance. In such cases, income can be calculated based on the information provided. In this example, the calculation would be as follows: • $7.50/hour x 40 hours/week x 8 weeks = $2,400 • $8.25/hour x 40 hours/week x 44 weeks = $14,520 • $2,400 + $14,520 = $16,920. Sources of Earned Income In addition to hourly earnings, PJs must account for all earned income. In addition to the base salary, this will include annual cost of living adjustments (COLAs), bonuses, raises, and overtime pay. In the case of overtime, it is important to clarify whether overtime is sporadic or a predictable component of an employee’s income. If it is determined that an applicant has earned and will continue to earn overtime pay on a regular basis, PJs should calculate the average amount of overtime pay earned by the applicant over the pay period the PJ is using to calculate income eligibility (3 months or 12 months). This average amount is then to be added to the total amount of projected earned income over the following 12-month period. Exhibit 2.1 provides a step-by-step explanation of the standard methodology for projecting annual income. 295 Exhibit F F-2 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364 365 366 367 368 369 370 City Council SEPTEMBER 20, 2016 371 Overview •Milestones •My eligibility •BMR unit eligibility •Rules / rule changes •Relevant documents •Conflict of interest •Denial of due process •Investigation questions Role of Commissioners and Councilmembers 372 January, 2016 20:Notified that I was selected candidate (with 2 backups) and application must be completed by 27-Jan 21:I asked about income over limit in 2015 –answer was that over limit in the past does not disqualify, as eligibility depends on current income 25:I completed my application 26:I met with Christine at 4pm. She said I was over limit. I showed her that current wages plus last year’s performance bonus was under limit, she said she would consult with city staff 28:Christine emailed, saying after staff consultation, I am over limit 373 February, 2016 2:C.J. emailed, saying my eligibility is not yet determined; he asked for latest paystub; later he said unit failed inspection and instructed Christine to remove it from list of units eligible for sale 9:Christine cancelled meeting with C.J. and I. The unit passed inspection, but I was not informed of this 11:I attended Housing Commission meeting at 9am. C.J. explained that if I applied 12-Feb, I would be eligible. I attended meeting at WVCS (with Christine, C.J.) at 2pm where I provided mid-year bonus statement. Christine emailed attachment on letterhead stating my ineligibility at 6:50pm 374 February, 2016, continued 12:I delivered my first grievance to WVCS, but Ms Venkatraman was not in the office 16:Ms Venkatraman called me, in response to voicemails I left on April 12th regarding bringing / leaving grievance. She said I was ineligible; no unit was available and sale to alternate was 80% done 22:I received Ms Venkatraman’s response to my grievance by certified mail Capital Gains 375 Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units, as amended 2-Aug by City Council Resolution No. 16-084 (although no changes to Exhibit 3, per the Resolution) From Agenda Packet: E- Referenced Regluations (24 CFR 5.pdf (near bottom of page E-2 on left) (and near top of page E-2, below) 376 March, 2016 1:I handed my second grievance to Mr Selo 8:I received Mr Selo’s response to my grievance by certified mail 10:I attended Housing Commission meeting at 9am 15:I attended City Council meeting at 6:45pm and during Oral Communications, I asked the City Council to investigate my case. I provided detailed and pertinent records 29:BMR unit was sold on or about this date to Director of Client Services at WVCS and her adult sister, but this fact was not discovered by me for about four weeks 377 Excerpt from CC Resolution No. 16-084 Adopting Amendments to the Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units.pdf Although this regulation was not part of the BMR Manual in March, 2016, a Conflict Of Interest event clearly occurred with WVCS’s approval of the eligibility of their own employee, after denying my eligibility 378 Excerpt from California Law Governing Conflict of Interest, by Orange County Department of Education, June, 2014 379 April, 2016 5:I attended City Council meeting at 6:45pm 14:I attended Housing Commission meeting at 9am, where I was allowed to speak for 3 minutes. I recalled 11- Feb meeting and asked commissioners to take action against capricious decision. C.J. said that grievances to WVCS must continue 19:I attended meeting of the Board Administration Committee of the Board of Directors of WVCS at 4pm where I was allowed to speak for 3 minutes. I asked committee to take action against capricious decision and I handed my third grievance to the Board Chair 19, continued: I attended City Council meeting at 6:45pm, where C.J. presented CDBG Annual Plan and funding details (item 15 on Agenda). Afterwards, he was asked by Councilmember Paul for an update on my appeal. C.J. stated that I had two more levels of grievance to complete at WVCS. He said that, in the future, the Assistant City Manager could be asked to place my appeal on the agenda of the Housing Commission 27:I received, by certified mail, Mr Barkey and Ms Harper’s response to grievance three, which told me to forward any following grievance to Mr Selo. I discovered the identity of the buyer of the BMR unit in public records search 380 May, 2016 3:I sent my fourth grievance to MrSelo as an email attachment (copying C.J., Assistant City Manager, Mayor and Councilmembers) expressing my outrage at the Conflict of Interest that arose when WVCS qualified their own staff after disqualifying me. I asked for a full investigation; acknowledgment and rectification of the error that resulted in my disqualification; a complete reconsideration of the unlawful sale and a lawful sale to take its place. MrSelo responded with attachment BMR Policy for WVCS Staff. I attended City Council meeting at 6:45pm 6:C.J. emailed MrSelo suggesting that WVCS recuse itself and that the appeal would move to the Housing Commission. I responded to C.J. and Ms Shrivastava asking that my appeal appear on the Agenda of the 12-May Housing Commission meeting. There was no response to my email 12: I attended Housing Commission meeting at 9am, where my appeal was not on the agenda and I was allowed to speak for 3 minutes. C.J. said my appeal would be heard at the 9-Jun meeting because there had not been time to get it on today’s agenda. He said that Ms Shrivastava would follow up, as he was leaving the City of Cupertino for other employment and this was his last Housing Commission meeting 381 BMR Policy for WVCS Staff Below Market Rate Policy for WVCS Staff adopted 7/19/11 Below Market Rate West Valley Community Services staff who does not have decision making authority or influence of the BMR program may apply as a potential candidate for the BMR program. Staff excluded from application include but not limited to: Executive Director, Department Directors, WVCS BMR staff. There will be no special consideration or accommodations for the staff's application. The staff member must qualify based on BMR requirements set forth by the City of Cupertino and WVCS, and will be given priority points based on the same criteria as all qualified applicants. The staff member will not participate in any BMR program decision making processes for application, qualification or placement. The staff member will not have any access to BMR files or other BMR client information. 382 June, 2016 6:I emailed MsShrivastava because no agenda was posted for 9-Jun Housing Commission meeting. Mr Fu replied that my appeal was continued to 23-Jun 9:Housing Commission meeting is cancelled “due to lack of business” 23:Special meeting of the Housing Commission had my appeal on the Agenda as item 3. External Counsel, acting as staff, made a presentation. I made a presentation. There were comments from the public. From the minutes: “Chair Barnett said that the Commission would take all the information received today into consideration, review with Staff and bring this item back for a recommendation at the meeting of July 14, 2016” 383 July and August, 2016 July 6:Mr Fu called and told me that the 14-Jul Housing Commission meeting would be cancelled because external counsel needed more time to investigate the determination of my income. When I asked about the criminality of the transfer, he said they were investigating that too. He said my appeal would be continued to 11-Aug. He also sent an email with essentially the same information 14:Housing Commission meeting is cancelled “due to lack of business” August 2:City Council adopted Resolution No. 16-084 amending the Policy and Procedures Manual for Administering Deed-Restricted Affordable Housing Units (Below Market Rate (BMR) Manual), with modification, after 4-1 vote 11:At Housing Commission meeting External Counsel presented, including incorrect income calculation. I presented, but was prevented from showing my investigative findings related to COI. There were comments from the public. There was a motion to deny my appeal, which passed after a 3-1 vote 384 Handout presented by Ms Klueck at 11-Aug Housing Commission meeting has math error and bonus error 385 Excerpt from F- Technical Guide for Determining Income.pdf My application included verifiable evidence that: •S Recogn Bonus was one time (2015 only) •Wellness Bonus would not be earned in 2016 •Performance Bonus was sharply decreased in 2016 •Stock value declined precipitously 386 My Company, our main competitor and Nasdaq Composite 2013 –2016 http://www.nasdaq.com/symbol/stx/interactive-chart Demonstrates that larger economic forces are driving the loss in value 387 My latest paystub 388 August, 2016, continued 23:External counsel, Ms Lee, emailed me, inviting me to share my presentations with her, while stating she would not share her findings with me 24:Mr Fu emailed, asking me to forward my presentation 25:Mr Fu emailed saying that my appeal before the City Council would be continued from 6 to 20-Sep 26:I received a letter from Ms Squarcia informing me that my appeal would be heard by the City Council 6-Sep and that any issues not raised before the Council on that date may be inadmissible, if I later bring an action in court 27: I received a second letter from Ms Squarcia informing me that my appeal would be continued to an unknown date 29:I uploaded presentations, audio recordings, letters from City to a Google Drive folder that I shared with Ms Lee and the Mayor and Councilmembers. Ms Lee asked me to invite her via a gmail account, and I complied 31: I emailed the City Clerk expressing utter confusion and asking for guidance on my hearing before the City Council. Ms Schmidt clarified that my appeal would be heard 20- Sep 389 September, 2016 6:I attended City Council meeting at 6:45, where the Council approved postponement of my appeal to 20-Sep 8:I attended Housing Commission meeting at 9am. During the approval of minutes, I attempted to make errors in the draft minutes known. However I was silenced and told I could speak during Oral Communications. This is a violation of my Brown Act rights 54954.3.(a) Every agenda for regular meetings shall provide an opportunity for members of the public to directly address the legislative body on any item of interest to the public, before or during the legislative body's consideration of the item, that is within the subject matter jurisdiction of the legislative body, provided that no action shall be taken on any item not appearing on the agenda unless the action is otherwise authorized by subdivision (b) of Section 54954.2.However, the agenda need not provide an opportunity for members of the public to address the legislative body on any item that has already been considered by a committee, composed exclusively of members of the legislative body, at a public meeting wherein all interested members of the public were afforded the opportunity to address the committee on the item, before or during the committee's consideration of the item, unless the item has been substantially changed since the committee heard the item, as determined by the legislative body. Every notice for a special meeting shall provide an opportunity for members of the public to directly address the legislative body concerning any item that has been described in the notice for the meeting before or during consideration of that item. (b) The legislative body of a local agency may adopt reasonable regulations to ensure that the intent of subdivision (a) is carried out, including, but not limited to, regulations limiting the total amount of time allocated for public testimony on particular issues and for each individual speaker. (c) The legislative body of a local agency shall not prohibit public criticism of the policies, procedures, programs, or services of the agency, or of the acts or omissions of the legislative body. Nothing in this subdivision shall confer any privilege or protection for expression beyond that otherwise provided by law. http://www.leginfo.ca.gov/cgi- bin/displaycode?section=gov&group=54001- 55000&file=54950-54963 390 http://www.hcd.ca.gov/housing-policy-development/housing-resource- center/reports/state/incnote.html 391 Conflict of interest / Due process Although Christine Nguyen told me that a conflict of interest would arise if I were both a volunteer and a client at WVCS… …she nonetheless denied me and then sold the 2- bedroom, moderate unit –while the appeal process was still underway –to her coworker, Michelle Ma, the Director of Client Services at WVCS;a single woman with no dependents This is clearly unacceptable and I am asking YOU, City Council, to take action and reverse this illegal sale 392 Investigative Questions Is Michelle Ma the Director of Client Services at West Valley Community Services? Date of hire –2008, per Ms Lee Date of termination –April 2016, per Ms Lee How many City of Cupertino Below Market Rate units are owned by current West Valley Community Services staff former West Valley Community Services staff current City of Cupertino staff former City of Cupertino staff How many City of Cupertino Below Market Rate units are rented by current West Valley Community Services staff former West Valley Community Services staff current City of Cupertino staff former City of Cupertino staff 393 Questions about sale of APN 369- 55-036 on or around 21-Mar-2016 How many applicants were contacted and invited to complete their applications, including Ms Ma and I? –3, per Ms Lee: Sandstrom, Ma and additional backup? How many applicants submitted complete applications? Did all of the applicants have the same number of priority points? –No, per Ms Lee How many priority points did Ms Ma have? –2, per Ms Lee At the time of application, where was Michelle Ma’s residency? Longevity at that address? At the time of application, where was Marissa Ma’s residency? Longevity at that address? What was Marissa Ma’s income? What was the waitlist priority number of Ms Ma? –23, per Ms Lee 394 City Council has the power to find a transaction fraudulent and overturn it Excerpt from CC Resolution No. 16-084 Adopting Amendments to the Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units 395 Responsibilities of Commissioners (excerpted from COMMISSIONER’S HANDBOOK, 2016, City of Cupertino) D. DISCRIMINATION AND EQUAL PROTECTION All rules, regulations, laws, services and facilities must apply equally to all persons, and not give favor to any segment of the community. Similarly, all laws and ordinances of the city must afford equal protection to all facets of the community, unless the purpose of a city action requires special classification of the community. E. DUE PROCESS All governmental procedures and process must allow an affected party a right to be heard, and to present controverting fact or testimony on the question of right in the matter involved. Unfair determinations, such as bias, predetermination, refusal to hear, etc., may invalidate actions. F. REASONABLENESS Every action of municipal government must be reasonable, or otherwise stated, not capricious, extreme, arbitrary, or abusive. 396 In closing Affordable housing is one of the most valuable things in existence in Cupertino… A valuable BMR unit has been sold in a frankly illegal manner Please restore justice and undo the sale Please reject the recommendation of staff, denying my appeal Please recognize that no speculation is needed to find that I met the income eligibility limit, even assuming performance bonus at same level in 2016 as in 2015 Please do not play a part in continuing the unethical action that has occurred and instead, work to undue this action 397 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2117 Name: Status:Type:Public Hearings Agenda Ready File created:In control:10/25/2016 City Council On agenda:Final action:12/6/2016 Title:Subject: Fiscal Year 2016-2017 Fee Schedule Amendment Sponsors: Indexes: Code sections: Attachments:Staff Report A - Draft Resolution B - Proposed Amendment to Schedule C – Planning Fees (redlined) C – Proposed Schedule C – Planning Fees D - Proposed Amendment to Schedule E – Recreation Fees (redlined) E – Proposed Schedule E – Recreation Fees Action ByDate Action ResultVer. City Council12/6/20161 Subject:Fiscal Year 2016-2017 Fee Schedule Amendment AdoptResolutionNo.16-131approvinganamendedFiscalYear2016-2017FeeSchedule, effective February 6, 2017 CITY OF CUPERTINO Printed on 11/29/2016Page 1 of 1 powered by Legistar™398 RECREATION AND COMMUNITY SERVICES DEPARTMENT QUINLAN COMMUNITY CENTER 10185 N. STELLING ROAD • CUPERTINO, CA 95014-5732 TELEPHONE: (408) 777-3110 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: December 6, 2016 Subject Fiscal Year 2016-2017 Fee Schedule amendment. Recommended Action Adopt a Draft Resolution approving an amended Fiscal Year 2016-2017 Fee Schedule, effective February 6, 2017. Description The Community Development Department also recommends changes to their legal noticing deposit as well as making minor administrative corrections and clarifications to the Planning Fee Schedule The Recreation & Community Services Department recommends revisions to facility rental fees to clarify and expand the criteria to qualify as a Cupertino Non-Profit User Group for room rentals. The recommended changes will allow non-profit and government agencies that serve Cupertino to receive discounted room rental rates. Additionally, the Department recommends revising insurance coverage from a requirement for all rental groups to coverage based on the type of rental activity. Discussion Fee Resolution 16-031 became effective July 1, 2016 and later amended by Resolution 16- 050, which updated Schedule C – Planning effective August 1, 2016. Through the implementation of the new fee schedule, staff became aware of issues with the methodology of some fees in the Planning and Recreation schedules as described below. Schedule C– Planning Fees Currently, Planning requires a $200 deposit for legal noticing materials and administrative fee (15%) for planned development. Staff is required to reconcile to actual costs and often refund customers. Staff estimates that under the current deposit fee method actual costs are $477 or $65 materials and two hours of staff time at a rate of $203/hour, one of which is spent reconciling the deposit against actual costs. However, the average fee recovered is only $20 or 4% of actual costs. Staff believes that changing the fee method from a deposit to a flat fee would save staff time and allow the City to fully recover costs. The proposed $268 legal noticing fee would cover the average cost of materials ($65) and one hour of staff time ($203). 399 As seen in Attachment B, other minor administrative edits to Schedule C are also requested for clarification. Schedule E – Recreation Fees Fee Resolution 16-031 included amended facility rental User Groups and fee tiers for room rental fees. User Groups for room rentals were collapsed from six to four. The new Groups are:  Group 1 - Cupertino Non-Profits  Group 2 – Non-Resident Non-Profits  Group 3 - Cupertino Residents/Businesses  Group 4 – Non-Residents/Businesses. The criteria to qualify as Group 1 - Cupertino Non-Profit was also revised from 51% Cupertino resident membership/participation to 1/3 Cupertino resident membership/participation. The Recreation & Community Services Department implemented the new fee schedule and notified active nonprofit customers of the lowered 33% resident membership/participation threshold to qualify as a Group 1 - Cupertino Non-Profit for room rentals. Staff requested updated documentation to verify all existing non-profit customers. However, several long-standing Cupertino-serving non-profit organizations and clubs were not able to produce the required documentation. While some may have qualified in the past, they no longer qualify due to members moving out of City limits and membership turnover. Staff recommends a fee schedule amendment, which revises the criteria to qualify as a Group 1 - Cupertino Non-Profit for room rentals. The expanded criteria will ensure that non-profits and government agencies providing services that benefit Cupertino residents receive the discounted rate. Under the new policy, an organization must meet at least one of the below criteria to qualify for the Group 1 - Cupertino Non-Profit room rental rate:  Non-profit organizations with 1/3 Cupertino resident membership/participation, or  Non-profit organizations with a Cupertino business address, or  Non-profit organizations that demonstrate service to the Cupertino community, or  Government agencies including public schools, or  A function held by a nonprofit organization that is free and open to the Cupertino public To verify the criteria is met, non-profit organizations are required to submit an IRS letter of non-profit 501(c) status with the facility rental application and an official letter on the organization’s letterhead signed by an officer or staff member listing under which criteria the organization and/or function qualifies for Cupertino Non-Profit status. Staff reserves the right to require additional clarifying documentation to certify that an organization or a specific room rental qualifies for the Group 1 - Cupertino Non-Profit rate, and the Recreation Manager will make a determination when necessary if the documentation 400 provided is incomplete or unclear. The Group 1 – Cupertino Non-Profit or Group 2 – Non-Resident Non-Profit rates may be granted for one fundraiser per organization per fiscal year. Additional room rentals for the purpose of a fundraiser would fall into the Group 3 – Resident or Group 4 – Non- Resident rates. All Groups, including Cupertino Non-profits, are subject to all terms of the adopted Facility Rental Policy including security/damage deposits, cancellations, insurance, and overage charges if rental times are exceeded. The current requirement of $1.0 million general liability insurance for all groups and rentals has not been feasible. Securing insurance was found to be a complicated process and cost prohibitive for the majority of renters. Requiring this level of insurance for every rental would have seriously impacted the ability of individuals and small organizations to rent rooms. Staff recommends revising the insurance requirements to be based on the type of activity, as outlined in the Department’s Facility Use Insurance Requirement Policy. This policy will focus insurance coverage on larger groups and activities deemed more risky as advised by risk management consultants. Additionally, the Department will assist customers in securing insurance if they do not already have coverage. This approach will adhere to risk management best practices while being customer-friendly. Fiscal Impact The recommended changes to Planning fees and insurance requirements for room rentals are not estimated to have a fiscal impact. Based on room rental history, staff estimates the recommended non-profit fee schedule amendment could result in lower revenue receipts of approximately $10,000 per fiscal year. Staff will evaluate the revised policy once implemented and may bring forward recommended fee increases in future budget cycles for Council consideration to minimize the impact on cost recovery levels. A preliminary assessment found that Cupertino Non-Profit room rental fees are among the lowest of area cities. This information will be further analyzed and taken into consideration as part of future recommended fee changes. Prepared by: Christine Hanel, Acting Director of Recreation and Community Services and Jaqui Guzmán, Deputy City Manager Approved for Submission by: David Brandt, City Manager Attachments: A – Draft Resolution B – Proposed Amendment to Schedule C – Planning Fees (redlined) C – Proposed Schedule C – Planning Fees D – Proposed Amendment to Schedule E – Recreation Fees (redlined) E – Proposed Schedule E – Recreation Fees 401 RESOLUTION NO: 16- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING PREVIOUS FEE RESOLUTION WHEREAS, the State of California requires fees charged for service rendered not to exceed the cost of delivering said services; and WHEREAS, a public hearing has been held to review user fees; and WHEREAS, the City Council of the City of Cupertino has established guidelines for setting user fees; NOW, THEREFORE, BE IT RESOLVED that: 1. User Fee Resolution Number 16-050 is hereby amended 2. User fees are amended per attached Schedule C and Schedule E 3. User fees amended in Schedule C and Schedule E are effective February 6, 2017 PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 6th day of December, 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 402 CITY OF CUPERTINO Resolution No. 16-050 Schedule C - Planning DEFINITIONS A. Major B. Minor C. Minor Architectural and Site Approval D. Major Architectural and Site Approval Architectural approval of all other development projects. E. Appeal F. Directors Application G. Temporary Sign Permit H. Tentative Map: Five or more parcels. I. Parcel Map: Four or less parcels. J. Housing Mitigation Fee Fee Description Effective August 1, 2016 Effective February 6, 2017 General Plan Authorization Amendment Zoning Zoning Map Amendment Zoning Text Amendment Study Session Planning Staff Hourly Rate No Change Development Agreement1 Planning Staff Hourly Rate No Change Planning Staff Hourly Rate1 203 No Change A staff review of a temporary sign application that includes an evaluation of the sign request, the entry into the temporary log and site review by Code Enforcement Officers. The permit fee is in addition to the submittal of a deposit to guarantee removal of the sign upon expiration of the temporary permit. 10,000 or more square feet commercial/office/non-residential/industrial; six or more residential units. Less than 10,000 square feet commercial/office/non-residential/industrial; less than six residential units. Architectural approval of the following: Minor building modifications, landscaping, signs and lighting for new development, redevelopment or modification in such zones where such review is required. A request from the project applicant or interested party to reverse or amend a decision made by staff or an advisory body. An appointed public official serving on the board that made the decision subject to the appeal, an appointed public official serving on a board that is directly affected by the decision and the City Council members are exempted from the fee requirement. At the conclusion of the appeal hearing, the City Council may choose to, in its sole discretion, refund all, a portion of, or none of the appeal fee. An application that receives final approval by staff either via an advertised public hearing or non-hearing format. The application may involve a pre-application meeting and/or Environmental Review committee In accordance with the City of Cupertino’s Housing Element, Section 19.72.030 of the Cupertino Municipal Code and the BMR Housing Mitigation Program Procedural Manual. Note: Mixed use applications will be classified based upon the highest intensity and review process. The Director of Community Development will have discretion to classify projects based upon the above criteria. Planning Staff Hourly Rate Planning Staff Hourly Rate No Change No Change 403 CITY OF CUPERTINO Resolution No. 16-050 Schedule C - Planning Fee Description Effective August 1, 2016 Effective February 6, 2017 Tentative Map (See Definition H)21,179 No Change Parcel Map (See Definition I)12,732 No Change Use Permit / Development Permit - Major 21,343 No Change Use Permit / Development Permit - Minor 12,809 No Change Amendment to Use Permit / Development Permit - Major 10,746 No Change Amendment to Use Permit / Development Permit - Minor 5,884 No Change Architectural and Site Approval - Major (See Definition D)13,189 No Change Architectural and Site Approval - Minor (See Definition C)8,862 No Change Architectural and Site Approval - Minor Duplex / Residential (See Definition C) (new)4,500 No Change Planning Commission Interpretation 4,762 No Change Exception 4,509 No Change Heart of the City 13,063 No Change Hillside Exception 13,539 No Change R-1 Design Review 3,600 No Change R-1 No Design Review (new)3,000 No Change R-1 Exception 4,673 No Change Minor Residential Permit 2,311 No Change Environmental Impact Report (Plus State & County Filing Fees)Contract+Admin Fee No Change Negative Declaration - Major (Plus State & County Filing Fees)Contract+Admin Fee No Change Negative Declaration - Minor (Plus State & County Filing Fees)Contract+Admin Fee No Change Categorical Exemption (Plus County Filing Fee)230 No Change Sign Exception 3,290 No Change Fence Exception - R1 and duplex 859 No Change Fence Exception - other 2,891 No Change Variance 5,167 No Change Minor Modification 3,156 No Change Conditional Use Permit - Administrative 4,676 No Change Reasonable Accommodation 750 No Change Tree Removal Permit (no Arborist review required) First Tree 200 No Change Each Additional Tree 100 No Change Tree Removal Permit (Arborist review required) First Tree 300 No Change Each Additional Tree 150 No Change Retroactive Tree Removal Penalty 3,325 No Change Tree Management Plan 4,702 No Change Heritage Tree Designation 250 No Change Temporary Use Permit 2,824 No Change Temporary Sign Permit (See Definition G)319 No Change Sign Program 2,582 No Change Appeals (See Definition E) Planning Commission 230 No Change City Council 230 No Change Zoning Verification Letter 338 No Change Public Convenience and Necessity Letter (Alcoholic Beverage License)169 No Change Wireless Master Plan Fee: Other Personal Wireless Facility ( move to Fees Collected at Building Permit Issuance)1,350 No Change Permit Extension of Approved Entitlements 1,280 No Change Legal Noticing Fee (previously Legal Noticing Deposit) Actual Cost of copies/postage ($200 deposit) 268 404 CITY OF CUPERTINO Resolution No. 16-050 Schedule C - Planning Fees Collected at Building Permit Issuance Effective August 1, 2016 Effective February 6, 2017 Zoning, Planning, Municipal Code Fees (Building Permit Fees) All Non-Residential and Multi-Family (per sq.ft.)0.30 No Change Residential Single Family (per sq. ft.)0.14 No Change General Plan Office Allocation Fee (per sq. ft.)0.28 No Change Wireless Master Plan Fee: Equipment Mount on Existing Light Utility Pole 6.19 No Change Housing Mitigation In-Lieu Fees (See Definition J) Residential - Ownership (per sq. ft.) Detached Single Family Residence 15.48 No Change Small Lot Single Family Residence or Townhome 17.03 No Change Multi-family Attached Townhome or Condominium (up to 35 du/ac) 20.64 No Change Multi-family Attached Townhome or Condominium (over 35 du/ac) 20.64 No Change Residential - Rental (per sq. ft.) Multi-family Attached Townhome or Apartment (up to 35 du/ac) 20.64 No Change Multi-family Attached Townhome or Apartment (over 35 du/ac) 25.80 No Change Non-Residential (per sq. ft.) Office, Research and Development, or Industrial 20.64 No Change Hotel 10.32 No Change Commercial/Retail 10.32 No Change 2Based on Below Market Rate Housing Mitigation Procedural Manual and 2015 Nexus Study. These fees are to increase annually by the San Francisco Bay Area Consumer Price Index (CPI) An administrative fee of 15% (see General Fees - Schedule A) will be charged for outside agency review/consultant services. If plans are submitted on paper, the City's cost of scanning plans, plus an administrative fee of 15% (see General Fees - Schedule A), will be charged. 1Applications may be subject to a Planning Staff Hourly Rate fee for applicable staff time, and vendor invoice. These fees apply to projects that require a level of staff support greater than the scope of work included in the regular fee schedule and will be based on the time and materials required to process the entire project. The applicant will be notified if these fees are applicable to their project. 405 CITY OF CUPERTINO Resolution No. 16- Schedule C - Planning DEFINITIONS A. Major B. Minor C. Minor Architectural and Site Approval D. Major Architectural and Site Approval Architectural approval of all other development projects. E. Appeal F. Directors Application G. Temporary Sign Permit H. Tentative Map: Five or more parcels. I. Parcel Map: Four or less parcels. J. Housing Mitigation Fee Fee Description Effective August 1, 2016 Effective February 6, 2017 General Plan Authorization Amendment Zoning Zoning Map Amendment Zoning Text Amendment Study Session Planning Staff Hourly Rate No Change Development Agreement1 Planning Staff Hourly Rate No Change Planning Staff Hourly Rate1 203 No Change Planning Staff Hourly Rate Planning Staff Hourly Rate No Change No Change In accordance with the City of Cupertino’s Housing Element, Section 19.72.030 of the Cupertino Municipal Code and the BMR Housing Mitigation Program Procedural Manual. Note: Mixed use applications will be classified based upon the highest intensity and review process. The Director of Community Development will have discretion to classify projects based upon the above criteria. A staff review of a temporary sign application that includes an evaluation of the sign request, the entry into the temporary log and site review by Code Enforcement Officers. The permit fee is in addition to the submittal of a deposit to guarantee removal of the sign upon expiration of the temporary permit. 10,000 or more square feet commercial/office/non-residential/industrial; six or more residential units. Less than 10,000 square feet commercial/office/non-residential/industrial; less than six residential units. Architectural approval of the following: Minor building modifications, landscaping, signs and lighting for new development, redevelopment or modification in such zones where such review is required. A request from the project applicant or interested party to reverse or amend a decision made by staff or an advisory body. An appointed public official serving on the board that made the decision subject to the appeal, an appointed public official serving on a board that is directly affected by the decision and the City Council members are exempted from the fee requirement. At the conclusion of the appeal hearing, the City Council may choose to, in its sole discretion, refund all, a portion of, or none of the appeal fee. An application that receives final approval by staff either via an advertised public hearing or non-hearing format. The application may involve a pre-application meeting and/or Environmental Review committee 406 CITY OF CUPERTINO Resolution No. 16- Schedule C - Planning Fee Description Effective August 1, 2016 Effective February 6, 2017 Tentative Map (See Definition H)21,179 No Change Parcel Map (See Definition I)12,732 No Change Use Permit / Development Permit - Major 21,343 No Change Use Permit / Development Permit - Minor 12,809 No Change Amendment to Use Permit / Development Permit - Major 10,746 No Change Amendment to Use Permit / Development Permit - Minor 5,884 No Change Architectural and Site Approval - Major (See Definition D)13,189 No Change Architectural and Site Approval - Minor (See Definition C)8,862 No Change Architectural and Site Approval - Minor Duplex / Residential (See Definition C) (new)4,500 No Change Planning Commission Interpretation 4,762 No Change Exception 4,509 No Change Heart of the City 13,063 No Change Hillside Exception 13,539 No Change R-1 Design Review 3,600 No Change R-1 No Design Review (new)3,000 No Change R-1 Exception 4,673 No Change Minor Residential Permit 2,311 No Change Environmental Impact Report (Plus State & County Filing Fees)Contract+Admin Fee No Change Negative Declaration - Major (Plus State & County Filing Fees)Contract+Admin Fee No Change Negative Declaration - Minor (Plus State & County Filing Fees)Contract+Admin Fee No Change Categorical Exemption (Plus County Filing Fee)230 No Change Sign Exception 3,290 No Change Fence Exception - R1 and duplex 859 No Change Fence Exception - other 2,891 No Change Variance 5,167 No Change Minor Modification 3,156 No Change Conditional Use Permit - Administrative 4,676 No Change Reasonable Accommodation 750 No Change Tree Removal Permit (no Arborist review required) First Tree 200 No Change Each Additional Tree 100 No Change Tree Removal Permit (Arborist review required) First Tree 300 No Change Each Additional Tree 150 No Change Retroactive Tree Removal Penalty 3,325 No Change Tree Management Plan 4,702 No Change Heritage Tree Designation 250 No Change Temporary Use Permit 2,824 No Change Temporary Sign Permit (See Definition G)319 No Change Sign Program 2,582 No Change Appeals (See Definition E) Planning Commission 230 No Change City Council 230 No Change Zoning Verification Letter 338 No Change Public Convenience and Necessity Letter (Alcoholic Beverage License)169 No Change Extension of Approved Entitlements 1,280 No Change Legal Noticing Fee (previously Legal Noticing Deposit) Actual Cost of copies/postage ($200 deposit) 268 407 CITY OF CUPERTINO Resolution No. 16- Schedule C - Planning Fees Collected at Building Permit Issuance Effective August 1, 2016 Effective February 6, 2017 Zoning, Planning, Municipal Code Fees All Non-Residential and Multi-Family (per sq.ft.)0.30 No Change Residential Single Family (per sq. ft.)0.14 No Change General Plan Office Allocation Fee (per sq. ft.)0.28 No Change Wireless Master Plan Fee: Other Personal Wireless Facility 1,350 No Change Wireless Master Plan Fee: Equipment Mount on Existing Light Utility Pole 6.19 No Change Housing Mitigation In-Lieu Fees (See Definition J) Residential - Ownership (per sq. ft.) Detached Single Family Residence 15.48 No Change Small Lot Single Family Residence or Townhome 17.03 No Change Multi-family Attached Townhome or Condominium (up to 35 du/ac) 20.64 No Change Multi-family Attached Townhome or Condominium (over 35 du/ac) 20.64 No Change Residential - Rental (per sq. ft.) Multi-family Attached Townhome or Apartment (up to 35 du/ac) 20.64 No Change Multi-family Attached Townhome or Apartment (over 35 du/ac) 25.80 No Change Non-Residential (per sq. ft.) Office, Research and Development, or Industrial 20.64 No Change Hotel 10.32 No Change Commercial/Retail 10.32 No Change 2Based on Below Market Rate Housing Mitigation Procedural Manual and 2015 Nexus Study. These fees are to increase annually by the San Francisco Bay Area Consumer Price Index (CPI) An administrative fee of 15% (see General Fees - Schedule A) will be charged for outside agency review/consultant services. If plans are submitted on paper, the City's cost of scanning plans, plus an administrative fee of 15% (see General Fees - Schedule A), will be charged. 1Applications may be subject to a Planning Staff Hourly Rate fee for applicable staff time, and vendor invoice. These fees apply to projects that require a level of staff support greater than the scope of work included in the regular fee schedule and will be based on the time and materials required to process the entire project. The applicant will be notified if these fees are applicable to their project. 408 Recreation classes and excursion fees shall be determined as follows: Classes 1. Determine the maximum hourly rate paid to instructor. 2. Multiply the instructor's hourly rate by the number of class meetings. 3. Determine the minimum number of participants and divide into the instructor's cost. 4. Add indirect overhead percent - 32%. 5. Add 20% to establish non-resident fee. 6. Add cost for specialized equipment or supplies. Special Conditions: For classes taught by contract instructors, the indirect overhead is only added to the City's percentage. Excursions 1. Transportation cost divided by the number of participants plus overhead transfer. 2. Add 20% to establish non-resident fee. 3. Add any admission cost, supplies or leadership cost. Additional factors that may be used to determine the class or excursion user fee: The total number of participants in a given activity may generate additional revenue whereby the total program cost may be reduced. Classes that traditionally have waiting lists may have the user fee increased. Programs in competition with adjacent cities or the private sector may require fees to be increased or decreased to remain competitive. Facility Use Fee Schedule (Staff Use Only) CLASSIFICATIONS: shows, etc. Must show proof of 95014 residency. service organizations for functions not open to the public. These organizations must show official official structure and status. functions would include parties, banquets, receptions, industrial conferences, seminars, trade shows, etc. Cupertino-serving non-profits with 1/3 resident membership/participation, a Cupertino business held by non-profits that are free and open to the Cupertino public. These organizations must show an CITY OF CUPERTINO Resolution 16-031 Fees Effective July 1, 2016 February 6, 2016 Schedule E - Recreation Group 1: Programs and events sponsored by Cupertino-based non-profit recreation, education, community service organizations and sponsored clubs with 1/3 resident membership/participation. Group 2: Programs and events sponsored by n Non-resident non-profit recreation, education or community structure and status. Group 3: Cupertino Residents - Private, special interest or business groups for functions not open to the public. address, or demonstrated service to Cupertino; government organizations; sponsored clubs; functions These functions would include parties, banquets, receptions, industrial conferences, seminars, trade Group 4: Non-Residents - Private, special interest or business groups for functions not open to the public. These 409 CITY OF CUPERTINO Resolution 16-031 Fees Effective July 1, 2016 February 6, 2016 Schedule E - Recreation ROOM RENTAL SCHEDULE PER HOURS Cupertino Room Mon-Fri up to 5:00 pm Fri 5:00 pm-Sun Cupertino Non-Profit (Group 1)$30 $80 Non-Profit (Group 2)$48 $128 Resident (Group 3)$168 $280 Non-Resident (Group 4)$224 $368 Social Room Cupertino Non-Profit (Group 1)$20 $60 Non-Profit (Group 2)$32 $96 Resident (Group 3)$72 $120 Non-Resident (Group 4)$90 $150 Conference Room Cupertino Non-Profit (Group 1)$10 $25 Non-Profit (Group 2)$16 $40 Resident (Group 3)$31 $52 Non-Resident (Group 4)$39 $65 Security Staff Security staff is required when alcohol is served at any City facility. $25.00 per hour. Minimum of 4 hours. Overtime Fee Security Deposit A security deposit shall be required for all groups. Security deposit is due at time of reservation. The Department Director may also require a deposit based on the nature of an event. The security deposit will be refunded if no damage occurs, rooms are left in clean condition, and permits conclude on time. Quinlan Community Center Cupertino Room - Resident/Non-Resident $750 All Other Rooms - Resident/Non-Resident $300 All Rooms - Cupertino/Other Non-Profit $300 Insurance General Liability Insurance may be required as determined by Department and stipulated in Department's Facility Use Insurance Requirement Policy. $1M required for all groups using the Cupertino Room and Social Room, w/endorsement to policy showing City of Cupertino as Additional Insured. Functions exceeding the permitted reservation time shall be charged 1.5 times the associated hourly fee for any time up to the first half-hour, and 1.5 times the associated hourly fee for every half hour thereafter. This charge will be deducted from the security deposit. Quinlan Community Center 410 CITY OF CUPERTINO Resolution 16-031 Fees Effective July 1, 2016 February 6, 2016 Schedule E - Recreation ROOM RENTAL SCHEDULE PER HOUR Mon-Fri Up to 5:00 pm Fri 5:00 p.m. to Sun Cupertino Non-Profit (Group 1)$30 $80 Non-Profit (Group 2)$48 $128 Resident (Group 3)$120 $200 Non-Resident (Group 4)$200 $300 Security Staff Security staff is required when alcohol is served at any City facility: $25.00 per hour. Minimum of 4 hours. Overtime Fee Security Deposit A security deposit shall be required for all groups. Security deposit is due at time of reservation. The Department Director may also require a deposit based on the nature of an event. The security deposit will be refunded if no damage occurs, rooms are left in clean condition, and permits conclude on time. Community Hall Resident/Non-Resident $750 Cupertino/Other Non-Profit $300 Insurance General Liability Insurance may be required as determined by Department and stipulated in Department's Facility Use Insurance Requirement Policy. $1M required for all groups, w/endorsement to policy showing City of Cupertino as Additional Insured. Functions exceeding the permitted reservation time shall be charged 1.5 times the associated hourly fee for any time up to the first half-hour, and 1.5 times the associated hourly fee for every half hour thereafter. This charge will be deducted from the security deposit. Community Hall 411 CITY OF CUPERTINO Resolution 16-031 Fees Effective July 1, 2016 February 6, 2016 Schedule E - Recreation ROOM RENTAL SCHEDULE PER HOUR Mon-Fri Up to 5:00 pm Fri 5:00 p.m. to Sun Cupertino Non-Profit (Group 1)$30 $30 Non-Profit (Group 2)$48 $48 Resident (Group 3)$48 $80 Non-Resident (Group 4)$60 $100 Mon-Fri Up to 5:00 pm Fri 5:00 p.m. to Sun Cupertino Non-Profit (Group 1)$10 $25 Non-Profit (Group 2)$16 $40 Resident (Group 3)$31 $52 Non-Resident (Group 4)$39 $65 Security Staff Security Staff is required when alcohol is served at any City facility: $25.00 per hour. Minimum of 4 hours. Overtime Fee Security Deposit A $100 security deposit shall be required for all groups. Security deposit is due at time of reservation. The Department Director may also require a deposit based on the nature of an event. The security deposit will be refunded if no damage occurs, rooms are left in clean condition, and permits conclude on time. Insurance General Liability Insurance may be required as determined by Department and stipulated in Department's Facility Use Insurance Requirement Policy. $1M required for all groups, w/endorsement to policy showing City of Cupertino as Additional Insured. Functions exceeding the permitted reservation time shall be charged 1.5 times the associated hourly fee for any time up to the first half-hour, and 1.5 times the associated hourly fee for every half hour thereafter. This charge will be deducted from the security deposit. CREEKSIDE/MONTA VISTA- Multi-Purpose Room Monta Vista Recreation Center/Creekside Park Building MONTA VISTA- Classroom/Kitchen 412 CITY OF CUPERTINO Resolution 16-031 Fees Effective July 1, 2016 February 6, 2016 Schedule E - Recreation Resident Non-Resident Annual Membership $23 $28 End of Aug. to End of Oct. Membership Sale $17 $22 Day Pass Fee $5 $5 Class Pass $10 $15 Day Trip Pass $20 $25 ROOM RENTAL SCHEDULE PER HOUR Mon-Fri Up to 5:00 pm Fri 5:00 p.m. to Sun Cupertino Non-Profit (Group 1)$30 $80 Non-Profit (Group 2)$48 $140 Resident (Group 3)$144 $240 Non-Resident (Group 4)$180 $300 Bay Room/ Arts and Craft Cupertino Non-Profit (Group 1)$22 $36 Non-Profit (Group 2)$27 $45 Resident (Group 3)$43 $72 Non-Resident (Group 4)$54 $90 Classroom Cupertino Non-Profit (Group 1)$20 $32 Non-Profit (Group 2)$24 $40 Resident (Group 3)$38 $64 Non-Resident (Group 4)$48 $80 Cupertino Non-Profit (Group 1)$10 $25 Non-Profit (Group 2)$16 $40 Resident (Group 3)$31 $52 Non-Resident (Group 4)$39 $65 Security Staff Security Staff is required when alcohol is served at any City facility: $25.00 per hour. Minimum of 4 hours Overtime Fee Security Deposit A security deposit shall be required for all groups. Security deposit is due at time of reservation. The Department Director may also require a deposit based on the nature of an event. The security deposit will be refunded if no damage occurs, rooms are left in clean condition, and permits conclude on time. Cupertino Senior Center Reception Hall - Resident/Non-Resident $750 All Other Rooms - Resident/Non-Resident $300 All Rooms - Cupertino/Other Non-Profit $300 Insurance General Liability Insurance may be required as determined by Department and stipulated in Department's Facility Use Insurance Requirement Policy. $1M required for all groups, w/endorsement to policy showing City of Cupertino as Additional Insured. Functions exceeding the permitted reservation time shall be charged 1.5 times the associated hourly fee for any time up to the first half-hour, and 1.5 times the associated hourly fee for every half hour thereafter. This charge will be deducted from the security deposit. Conference Room Senior Center Reception Hall 413 CITY OF CUPERTINO Resolution 16-031 Fees Effective July 1, 2016 February 6, 2016 Schedule E - Recreation Type Resident Non-Resident Day Passes Single Day Pass $10 $13 Day Pass 10 Pack $90 $117 Aerobics Passes $6 $6 Yoga/Pilates/TRX $8 $8 Monthly Passes One Month Single $65 $75 One Month Couple $85 $100 One Month Family $105 $125 One Month Senior $50 $60 One Month Students $30 $30 One Month Juniors (<17)$30 $30 Annual Passes One Year Juniors (<17)$305 $340 One Year Single $430 $465 One Year Couple $815 $890 One Year Family $910 $990 One Year Senior $385 $415 ROOM RENTAL SCHEDULE PER HOUR Conference Room Current Cupertino Non-Profit (Group 1)$10 Non-Profit (Group 2)$16 Resident (Group 3)$31 Non-Resident (Group 4)$39 Multi-Purpose Room/Sports Court Current Resident $60 Non-Resident $72 1. The Cupertino Tennis Club will be charged $10.00/hour during primetime and $6.00/hour per court during non-primetime for all C.T.C. sponsored activities other than U.S.T.A. leagues and practices. 2. All competitors in C.T.C./U.S.T.A. leagues participating at the Sports Center must purchase an annual pass. 3. Specials will be offered on an on-going basis. Sports Center/Child Watch/Teen Center ADDITIONAL CONDITIONS 414 CITY OF CUPERTINO Resolution 16-031 Fees Effective July 1, 2016 February 6, 2016 Schedule E - Recreation Child Watch Fees One visit $6 Ten visits $54 One Month Pass $100 Teen Center Rental Rate (per 4 hours)$200 Deposit $750 Overtime Rate: $100.00 first hour; $50.00 each half hour after. Teen Resident Teen Non-Resident Daily Rate No Cost $5 10 Day Pass No Cost $40 Memorial Softball Field Cupertino residents/Resident business only $35/2 hrs Non-Residents/Non-Resident business $50/2 hrs Field can be reserved for a maximum of 4 hours. THERE IS NO FEE FOR CURRENT SOFTBALL TEAMS PLAYING IN CUPERTINO LEAGUES Field preparation (includes dragging, watering, chalking, and bases)$37 Field Attendant (2 hour minimum). Field Attendant is required any time lights or field $12/hr preperation is requested. Lights $10/hr Memorial Park Amphitheater Residents/Cupertino Non-Profit $55 Non-resident/Non-Profit $75 Memorial Park Gazebo Residents/Cupertino Non-Profit $55 Non-resident/Non-Profit $75 Picnic Areas (Daily Rate)Resident Non-Resident Memorial (113 capacity)$83 $112 Linda Vista (136 capacity)$85 $116 Portal (80 capacity)$66 $90 Electricity at Memorial or Linda Vista Park $25 $25 Bounce House (Memorial Park Only)$25 $25 Sports Field Fees (Per Athletic Field Use Policy) Cupertino resident, youth, volunteer non-profit organization (*) Resident/player/season $11 Non-resident/player/season $22 Cupertino resident, youth, commercial non-profit organization (*) Resident/player/season $11 Non-resident/player/season $66 Outdoor Facilities 415 CITY OF CUPERTINO Resolution 16-031 Fees Effective July 1, 2016 February 6, 2016 Schedule E - Recreation Cupertino resident, adult, volunteer non-profit organization 2-hour minimum/hour/field $50 Deposit $600 Cupertino resident, adult, commercial non-profit organization 2-hour minimum/hour/field $50 Base fee/site/seasonal use period $600 Deposit $600 Non-resident, youth, non-profit volunteer organization (*) Resident/player/season $11 Non-resident/player/season $66 Non-resident, youth, commercial non-profit organization (*) Resident/player/season $11 Non-resident/player/season $88 Non-resident, adult, non-profit volunteer organization 2-hour minimum/hour/field $50 Base fee/site/seasonal use period $600 Deposit $600 Non-resident, adult, commercial non-profit organization 2-hour minimum/hour/field $100 Base fee/site/seasonal use period $600 Deposit $600 For-profit youth sports events 2-hour minimum/hour/field $150 Base fee/site/seasonal use period $600 Deposit $600 For-profit adult sports events 2-hour minimum/hour/field $175 Base fee/site/seasonal use period $600 Deposit $600 * Represents whether an organization's members and board of directors are made up of 51% or more of either City residents or non-residents. After the category is determined, then the resident or non-resident fees are paid per the residency of each player. Outdoor Facilities 416 CITY OF CUPERTINO Resolution 16-031 Fees Effective July 1, 2016 February 6, 2016 Schedule E - Recreation Picnic Areas (Daily Rate) *Resident Non-Resident Area 1 - 250 Person Picnic Area- Blackberry Site $300 $600 Area 2 - 100 Person Picnic Area- Sycamore Site $120 $240 Area 3 - 100 Person Picnic Area- Owl Site $120 $240 Area 4 - 50 Person Picnic Area- Steelhead Site $60 $120 Area 5 - 50 Person Picnic Area- Bobcat Site $60 $120 Area 6 - 25 Person Picnic Area- Acorn Site $30 $60 All Sites- 525 Person Picnic Area $690 $1,380 Pool Pass for Picnic Area Groups $4 $5 Day-Use Pass Only Weekday Tuesday - Friday $6 $8 Weekend Saturday - Sunday $8 $10 Picnic area fees are due in full at the time of reservation. * Organizations may rent multiple areas. Swim Pass Options Resident Non-Resident 10-day Pass $60 $80 Season Swim Pass (May-Sept) Individual Pass $100 $140 2-Person Pass $160 $200 3-Person Pass $170 $210 4-Person Pass $180 $220 5-Person Pass $190 $230 6-Person Pass*$200 $240 *Each additional person added to a 6-person pass $6 $8 Blackberry Farm 417 CITY OF CUPERTINO Resolution 16-031 Fees Effective July 1, 2016 February 6, 2016 Schedule E - Recreation Contracted Tenants and Partners*No Charge Cupertino Non-Profit (Group 1)$30 Non-Profit (Group 2)$48 Resident (Group 3)$55 Non-Resident (Group 4)$88 *On-Site tenants and partnering organziations that have a current lease agreeement with the City of Cupertino. Security Staff Security Staff is required when alcohol is served at any City facility: $25.00 per hour. Minimum 4 hours. Overtime Fee Security Deposit A security deposit of $300 will be due at time of booking for rentals. (except for Contracted Tenants and Partners) Insurance General Liability Insurance may be required as determined by Department and stipulated in Department's Facility Use Insurance Requirement Policy. $1M required for all groups, w/endorsement to policy showing City of Cupertino as Additional Insured. Environmental Education Center Functions exceeding the permitted reservation time shall be charged 1.5 times the associated hourly fee for any time up to the first half-hour, and 1.5 times the associated hourly fee for every half hour thereafter. This charge will be deducted from the security deposit. 418 Weekends Resident Non-Resident 9-Holes $18 $20 Senior $18 $20 Junior $15 $17 Second 9 Holes (all players)$12 $14 Weekdays 9-Holes $16 $18 Senior $15 $17 Junior $15 $17 Second 9 Holes (all players)$11 $14 Adults (17-61)Jr/Sr Monthly Rate* Cupertino Residents $165 $150 Non-Residents $195 $180 Super Annual Rate (Good on Weekends & Holidays)** Cupertino Residents $1,650 $1,500 Non-Residents $1,950 $1,800 Super Semi-Annual Rate (Good on Weekends & Holidays)** Cupertino Residents $880 $800 Non-Residents $1,040 $960 Blackberry Farm Golf Course Daily Green Fee Schedule CITY OF CUPERTINO Resolution 16-031 Fees Effective July 1, 2016February 6, 2016 Schedule E - Recreation All Groups and Tournaments pay the 9-Hole rate (Cupertino residents still applies). Staff is authorized to set merchandise fees according to current cost. 419 Blackberry Farm Golf Course CITY OF CUPERTINO Resolution 16-031 Fees Effective July 1, 2016February 6, 2016 Schedule E - Recreation Base Rate 15 16 17 18 18 20 Weekday Weekday Weekday Weekday Savings Senior Adult Senior Adult Weekend Weekend # of Plays per round Res.Res.NR NR Res.NR 10 $1 $140 $150 $160 $170 $170 $190 20 $2 $260 $280 $300 $320 $320 $360 30 $3 $360 $390 $420 $450 $450 $510 40 $4 $440 $480 $520 $560 $560 $640 50 $5 $500 $550 $600 $650 $650 $750 Golf fees may be increased/decreased at the discretion of the City Manager (Resolution No. 04-350) * Monthly Passes valid 7 days a week and Holidays. Based on 1\10th of the Annual Rate. ** All Annual and Semi-Annual rates will be valid 7 days a week including holidays. Annual and Semi-Annual rates based on 50 play weekday rates. Annual price is 3 times the 50 play rate. Semi-Annual is 1.6 times the 50 play rate. Proposed Quick Passes 420 Recreation classes and excursion fees shall be determined as follows: Classes 1. Determine the maximum hourly rate paid to instructor. 2. Multiply the instructor's hourly rate by the number of class meetings. 3. Determine the minimum number of participants and divide into the instructor's cost. 4. Add indirect overhead percent - 32%. 5. Add 20% to establish non-resident fee. 6. Add cost for specialized equipment or supplies. Special Conditions: For classes taught by contract instructors, the indirect overhead is only added to the City's percentage. Excursions 1. Transportation cost divided by the number of participants plus overhead transfer. 2. Add 20% to establish non-resident fee. 3. Add any admission cost, supplies or leadership cost. Additional factors that may be used to determine the class or excursion user fee: The total number of participants in a given activity may generate additional revenue whereby the total program cost may be reduced. Classes that traditionally have waiting lists may have the user fee increased. Programs in competition with adjacent cities or the private sector may require fees to be increased or decreased to remain competitive. Facility Use Fee Schedule (Staff Use Only) CLASSIFICATIONS: shows, etc. Must show proof of 95014 residency. functions would include parties, banquets, receptions, industrial conferences, seminars, trade shows, etc. Group 1: Cupertino-serving non-profits with 1/3 resident membership/participation, a Cupertino business held by non-profits that are free and open to the Cupertino public. These organizations must show an CITY OF CUPERTINO Resolution 16- Fees Effective February 6, 2016 Schedule E - Recreation Group 2: Non-resident non-profit recreation, education or community service organizations for functions Group 3: Cupertino Residents - Private, special interest or business groups for functions not open to the public. address, or demonstrated service to Cupertino; government organizations; sponsored clubs; functions These functions would include parties, banquets, receptions, industrial conferences, seminars, trade Group 4: Non-Residents - Private, special interest or business groups for functions not open to the public. These not open to the public. These organizations must show official structure and status. official structure and status. 421 CITY OF CUPERTINO Resolution 16- Fees Effective February 6, 2016 Schedule E - Recreation ROOM RENTAL SCHEDULE PER HOURS Cupertino Room Mon-Fri up to 5:00 pm Fri 5:00 pm-Sun Cupertino Non-Profit (Group 1)$30 $80 Non-Profit (Group 2)$48 $128 Resident (Group 3)$168 $280 Non-Resident (Group 4)$224 $368 Social Room Cupertino Non-Profit (Group 1)$20 $60 Non-Profit (Group 2)$32 $96 Resident (Group 3)$72 $120 Non-Resident (Group 4)$90 $150 Conference Room Cupertino Non-Profit (Group 1)$10 $25 Non-Profit (Group 2)$16 $40 Resident (Group 3)$31 $52 Non-Resident (Group 4)$39 $65 Security Staff Security staff is required when alcohol is served at any City facility. $25.00 per hour. Minimum of 4 hours. Overtime Fee Security Deposit A security deposit shall be required for all groups. Security deposit is due at time of reservation. The Department Director may also require a deposit based on the nature of an event. The security deposit will be refunded if no damage occurs, rooms are left in clean condition, and permits conclude on time. Quinlan Community Center Cupertino Room - Resident/Non-Resident $750 All Other Rooms - Resident/Non-Resident $300 All Rooms - Cupertino/Other Non-Profit $300 Insurance General Liability Insurance may be required as determined by Department and stipulated in Department's Facility Use Insurance Requirement Policy. Functions exceeding the permitted reservation time shall be charged 1.5 times the associated hourly fee for any time up to the first half-hour, and 1.5 times the associated hourly fee for every half hour thereafter. This charge will be deducted from the security deposit. Quinlan Community Center 422 CITY OF CUPERTINO Resolution 16- Fees Effective February 6, 2016 Schedule E - Recreation ROOM RENTAL SCHEDULE PER HOUR Mon-Fri Up to 5:00 pm Fri 5:00 p.m. to Sun Cupertino Non-Profit (Group 1)$30 $80 Non-Profit (Group 2)$48 $128 Resident (Group 3)$120 $200 Non-Resident (Group 4)$200 $300 Security Staff Security staff is required when alcohol is served at any City facility: $25.00 per hour. Minimum of 4 hours. Overtime Fee Security Deposit A security deposit shall be required for all groups. Security deposit is due at time of reservation. The Department Director may also require a deposit based on the nature of an event. The security deposit will be refunded if no damage occurs, rooms are left in clean condition, and permits conclude on time. Community Hall Resident/Non-Resident $750 Cupertino/Other Non-Profit $300 Insurance General Liability Insurance may be required as determined by Department and stipulated in Department's Facility Use Insurance Requirement Policy. Functions exceeding the permitted reservation time shall be charged 1.5 times the associated hourly fee for any time up to the first half-hour, and 1.5 times the associated hourly fee for every half hour thereafter. This charge will be deducted from the security deposit. Community Hall 423 CITY OF CUPERTINO Resolution 16- Fees Effective February 6, 2016 Schedule E - Recreation ROOM RENTAL SCHEDULE PER HOUR Mon-Fri Up to 5:00 pm Fri 5:00 p.m. to Sun Cupertino Non-Profit (Group 1)$30 $30 Non-Profit (Group 2)$48 $48 Resident (Group 3)$48 $80 Non-Resident (Group 4)$60 $100 Mon-Fri Up to 5:00 pm Fri 5:00 p.m. to Sun Cupertino Non-Profit (Group 1)$10 $25 Non-Profit (Group 2)$16 $40 Resident (Group 3)$31 $52 Non-Resident (Group 4)$39 $65 Security Staff Security Staff is required when alcohol is served at any City facility: $25.00 per hour. Minimum of 4 hours. Overtime Fee Security Deposit A $100 security deposit shall be required for all groups. Security deposit is due at time of reservation. The Department Director may also require a deposit based on the nature of an event. The security deposit will be refunded if no damage occurs, rooms are left in clean condition, and permits conclude on time. Insurance General Liability Insurance may be required as determined by Department and stipulated in Department's Facility Use Insurance Requirement Policy. Functions exceeding the permitted reservation time shall be charged 1.5 times the associated hourly fee for any time up to the first half-hour, and 1.5 times the associated hourly fee for every half hour thereafter. This charge will be deducted from the security deposit. Monta Vista Recreation Center/Creekside Park Building MONTA VISTA- Classroom/Kitchen CREEKSIDE/MONTA VISTA- Multi-Purpose Room 424 CITY OF CUPERTINO Resolution 16- Fees Effective February 6, 2016 Schedule E - Recreation Resident Non-Resident Annual Membership $23 $28 End of Aug. to End of Oct. Membership Sale $17 $22 Day Pass Fee $5 $5 Class Pass $10 $15 Day Trip Pass $20 $25 ROOM RENTAL SCHEDULE PER HOUR Mon-Fri Up to 5:00 pm Fri 5:00 p.m. to Sun Cupertino Non-Profit (Group 1)$30 $80 Non-Profit (Group 2)$48 $140 Resident (Group 3)$144 $240 Non-Resident (Group 4)$180 $300 Bay Room/ Arts and Craft Cupertino Non-Profit (Group 1)$22 $36 Non-Profit (Group 2)$27 $45 Resident (Group 3)$43 $72 Non-Resident (Group 4)$54 $90 Classroom Cupertino Non-Profit (Group 1)$20 $32 Non-Profit (Group 2)$24 $40 Resident (Group 3)$38 $64 Non-Resident (Group 4)$48 $80 Cupertino Non-Profit (Group 1)$10 $25 Non-Profit (Group 2)$16 $40 Resident (Group 3)$31 $52 Non-Resident (Group 4)$39 $65 Security Staff Security Staff is required when alcohol is served at any City facility: $25.00 per hour. Minimum of 4 hours Overtime Fee Security Deposit A security deposit shall be required for all groups. Security deposit is due at time of reservation. The Department Director may also require a deposit based on the nature of an event. The security deposit will be refunded if no damage occurs, rooms are left in clean condition, and permits conclude on time. Cupertino Senior Center Reception Hall - Resident/Non-Resident $750 All Other Rooms - Resident/Non-Resident $300 All Rooms - Cupertino/Other Non-Profit $300 Insurance General Liability Insurance may be required as determined by Department and stipulated in Department's Facility Use Insurance Requirement Policy. Functions exceeding the permitted reservation time shall be charged 1.5 times the associated hourly fee for any time up to the first half-hour, and 1.5 times the associated hourly fee for every half hour thereafter. This charge will be deducted from the security deposit. Conference Room Senior Center Reception Hall 425 CITY OF CUPERTINO Resolution 16- Fees Effective February 6, 2016 Schedule E - Recreation Type Resident Non-Resident Day Passes Single Day Pass $10 $13 Day Pass 10 Pack $90 $117 Aerobics Passes $6 $6 Yoga/Pilates/TRX $8 $8 Monthly Passes One Month Single $65 $75 One Month Couple $85 $100 One Month Family $105 $125 One Month Senior $50 $60 One Month Students $30 $30 One Month Juniors (<17)$30 $30 Annual Passes One Year Juniors (<17)$305 $340 One Year Single $430 $465 One Year Couple $815 $890 One Year Family $910 $990 One Year Senior $385 $415 ROOM RENTAL SCHEDULE PER HOUR Conference Room Current Cupertino Non-Profit (Group 1)$10 Non-Profit (Group 2)$16 Resident (Group 3)$31 Non-Resident (Group 4)$39 Multi-Purpose Room/Sports Court Current Resident $60 Non-Resident $72 1. The Cupertino Tennis Club will be charged $10.00/hour during primetime and $6.00/hour per court during non-primetime for all C.T.C. sponsored activities other than U.S.T.A. leagues and practices. 2. All competitors in C.T.C./U.S.T.A. leagues participating at the Sports Center must purchase an annual pass. 3. Specials will be offered on an on-going basis. Sports Center/Child Watch/Teen Center ADDITIONAL CONDITIONS 426 CITY OF CUPERTINO Resolution 16- Fees Effective February 6, 2016 Schedule E - Recreation Child Watch Fees One visit $6 Ten visits $54 One Month Pass $100 Teen Center Rental Rate (per 4 hours)$200 Deposit $750 Overtime Rate: $100.00 first hour; $50.00 each half hour after. Teen Resident Teen Non-Resident Daily Rate No Cost $5 10 Day Pass No Cost $40 Memorial Softball Field Cupertino residents/Resident business only $35/2 hrs Non-Residents/Non-Resident business $50/2 hrs Field can be reserved for a maximum of 4 hours. THERE IS NO FEE FOR CURRENT SOFTBALL TEAMS PLAYING IN CUPERTINO LEAGUES Field preparation (includes dragging, watering, chalking, and bases)$37 Field Attendant (2 hour minimum). Field Attendant is required any time lights or field $12/hr preperation is requested. Lights $10/hr Memorial Park Amphitheater Residents/Cupertino Non-Profit $55 Non-resident/Non-Profit $75 Memorial Park Gazebo Residents/Cupertino Non-Profit $55 Non-resident/Non-Profit $75 Picnic Areas (Daily Rate)Resident Non-Resident Memorial (113 capacity)$83 $112 Linda Vista (136 capacity)$85 $116 Portal (80 capacity)$66 $90 Electricity at Memorial or Linda Vista Park $25 $25 Bounce House (Memorial Park Only)$25 $25 Sports Field Fees (Per Athletic Field Use Policy) Cupertino resident, youth, volunteer non-profit organization (*) Resident/player/season $11 Non-resident/player/season $22 Cupertino resident, youth, commercial non-profit organization (*) Resident/player/season $11 Non-resident/player/season $66 Outdoor Facilities 427 CITY OF CUPERTINO Resolution 16- Fees Effective February 6, 2016 Schedule E - Recreation Cupertino resident, adult, volunteer non-profit organization 2-hour minimum/hour/field $50 Deposit $600 Cupertino resident, adult, commercial non-profit organization 2-hour minimum/hour/field $50 Base fee/site/seasonal use period $600 Deposit $600 Non-resident, youth, non-profit volunteer organization (*) Resident/player/season $11 Non-resident/player/season $66 Non-resident, youth, commercial non-profit organization (*) Resident/player/season $11 Non-resident/player/season $88 Non-resident, adult, non-profit volunteer organization 2-hour minimum/hour/field $50 Base fee/site/seasonal use period $600 Deposit $600 Non-resident, adult, commercial non-profit organization 2-hour minimum/hour/field $100 Base fee/site/seasonal use period $600 Deposit $600 For-profit youth sports events 2-hour minimum/hour/field $150 Base fee/site/seasonal use period $600 Deposit $600 For-profit adult sports events 2-hour minimum/hour/field $175 Base fee/site/seasonal use period $600 Deposit $600 * Represents whether an organization's members and board of directors are made up of 51% or more of either City residents or non-residents. After the category is determined, then the resident or non-resident fees are paid per the residency of each player. Outdoor Facilities 428 CITY OF CUPERTINO Resolution 16- Fees Effective February 6, 2016 Schedule E - Recreation Picnic Areas (Daily Rate) *Resident Non-Resident Area 1 - 250 Person Picnic Area- Blackberry Site $300 $600 Area 2 - 100 Person Picnic Area- Sycamore Site $120 $240 Area 3 - 100 Person Picnic Area- Owl Site $120 $240 Area 4 - 50 Person Picnic Area- Steelhead Site $60 $120 Area 5 - 50 Person Picnic Area- Bobcat Site $60 $120 Area 6 - 25 Person Picnic Area- Acorn Site $30 $60 All Sites- 525 Person Picnic Area $690 $1,380 Pool Pass for Picnic Area Groups $4 $5 Day-Use Pass Only Weekday Tuesday - Friday $6 $8 Weekend Saturday - Sunday $8 $10 Picnic area fees are due in full at the time of reservation. * Organizations may rent multiple areas. Swim Pass Options Resident Non-Resident 10-day Pass $60 $80 Season Swim Pass (May-Sept) Individual Pass $100 $140 2-Person Pass $160 $200 3-Person Pass $170 $210 4-Person Pass $180 $220 5-Person Pass $190 $230 6-Person Pass*$200 $240 *Each additional person added to a 6-person pass $6 $8 Blackberry Farm 429 CITY OF CUPERTINO Resolution 16- Fees Effective February 6, 2016 Schedule E - Recreation Contracted Tenants and Partners*No Charge Cupertino Non-Profit (Group 1)$30 Non-Profit (Group 2)$48 Resident (Group 3)$55 Non-Resident (Group 4)$88 *On-Site tenants and partnering organziations that have a current lease agreeement with the City of Cupertino. Security Staff Security Staff is required when alcohol is served at any City facility: $25.00 per hour. Minimum 4 hours. Overtime Fee Security Deposit A security deposit of $300 will be due at time of booking for rentals. (except for Contracted Tenants and Partners) Insurance General Liability Insurance may be required as determined by Department and stipulated in Department's Facility Use Insurance Requirement Policy. Environmental Education Center Functions exceeding the permitted reservation time shall be charged 1.5 times the associated hourly fee for any time up to the first half-hour, and 1.5 times the associated hourly fee for every half hour thereafter. This charge will be deducted from the security deposit. 430 Weekends Resident Non-Resident 9-Holes $18 $20 Senior $18 $20 Junior $15 $17 Second 9 Holes (all players)$12 $14 Weekdays 9-Holes $16 $18 Senior $15 $17 Junior $15 $17 Second 9 Holes (all players)$11 $14 Adults (17-61)Jr/Sr Monthly Rate* Cupertino Residents $165 $150 Non-Residents $195 $180 Super Annual Rate (Good on Weekends & Holidays)** Cupertino Residents $1,650 $1,500 Non-Residents $1,950 $1,800 Super Semi-Annual Rate (Good on Weekends & Holidays)** Cupertino Residents $880 $800 Non-Residents $1,040 $960 Blackberry Farm Golf Course Daily Green Fee Schedule CITY OF CUPERTINO Resolution 16- Fees Effective February 6, 2016 Schedule E - Recreation All Groups and Tournaments pay the 9-Hole rate (Cupertino residents still applies). Staff is authorized to set merchandise fees according to current cost. 431 Blackberry Farm Golf Course CITY OF CUPERTINO Resolution 16- Fees Effective February 6, 2016 Schedule E - Recreation Base Rate 15 16 17 18 18 20 Weekday Weekday Weekday Weekday Savings Senior Adult Senior Adult Weekend Weekend # of Plays per round Res.Res.NR NR Res.NR 10 $1 $140 $150 $160 $170 $170 $190 20 $2 $260 $280 $300 $320 $320 $360 30 $3 $360 $390 $420 $450 $450 $510 40 $4 $440 $480 $520 $560 $560 $640 50 $5 $500 $550 $600 $650 $650 $750 Golf fees may be increased/decreased at the discretion of the City Manager (Resolution No. 04-350) * Monthly Passes valid 7 days a week and Holidays. Based on 1\10th of the Annual Rate. ** All Annual and Semi-Annual rates will be valid 7 days a week including holidays. Annual and Semi-Annual rates based on 50 play weekday rates. Annual price is 3 times the 50 play rate. Semi-Annual is 1.6 times the 50 play rate. Proposed Quick Passes 432 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2190 Name: Status:Type:Ordinances and Action Items Agenda Ready File created:In control:11/18/2016 City Council On agenda:Final action:12/6/2016 Title:Subject: Consider upgrading the City’s municipal electric accounts to 100% renewable and carbon free GreenPrime service with Silicon Valley Clean Energy upon service launch, which is scheduled to occur in April 2017 Sponsors: Indexes: Code sections: Attachments:Staff Report Action ByDate Action ResultVer. City Council12/6/20161 Subject: Consider upgrading the City’s municipal electric accounts to 100% renewable and carbon free GreenPrime service with Silicon Valley Clean Energy upon service launch, which is scheduled to occur in April 2017 DirectSiliconValleyCleanEnergy(SVCE)toupgradetheCity’selectricityaccountsto GreenPrime service, upon service launch in April 2017 CITY OF CUPERTINO Printed on 11/29/2016Page 1 of 1 powered by Legistar™433 OFFICE OF THE CITY MANAGER CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3212 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: December 6, 2016 Subject Consider upgrading the City’s municipal electric accounts to 100% renewable and carbon free GreenPrime service with Silicon Valley Clean Energy upon service launch, which is scheduled to occur in April 2017. Recommended Action Direct Silicon Valley Clean Energy (SVCE) to upgrade the City’s electricity accounts to GreenPrime service, upon service launch in April 2017. Background Cupertino’s Climate Action Plan (CAP), identifies more than 200 actions to reduce greenhouse gas emissions. Of all the actions, shifting our energy portfolio to lower Greenhouse Gas (GHG) sources is the single most impactful action featured, with Community Choice Energy (CCE) identified as the key approach to accomplishing the shift. Specifically, successful implementation of Measure M-F-1-2, (Create Community Choice Energy option) assumes that 100% of our municipal operations electricity use in 2020 comes from 100% renewable or zero carbon sources via a CCE program. The CAP estimates that the emissions reduction associated with the City purchasing its electricity from zero carbon sources for its municipal facilities would result in a greenhouse gas reduction of 870 MTCO2e per year. Following CAP adoption, the City Manager prioritized the study of Community Choice Energy by utilizing Council approved funding budget to support conducting an initial assessment and technical feasibility study of a CCE program in partnership with Sunnyvale, Mountain View and Santa Clara County. On December 1, 2015, Council approved an ordinance (Ordinance No. 15-2138) and resolution (Resolution No. 15-111) to join Silicon Valley Clean Energy (SVCE), making Cupertino the first of 12 communities to approve the actions required to form and participate in the Joint Powers Authority. Subsequently, other communities joined and SVCE was officially created and formed in March 2016, by the cities of Campbell, Cupertino, Los Altos, Los Altos Hills, Los Gatos, Gilroy, Monte Sereno, Morgan Hill, Mountain View, Saratoga, Sunnyvale and the unincorporated areas of Santa Clara County. As a CCE, SVCE assumes responsibility from PG&E for purchasing and/or generating electricity, while PG&E continues to provide transmission, distribution, and billing services. As before, PG&E remains responsible for electric service reliability and management of outages. 434 The electricity bill continues to come from PG&E, but will reference SVCE for line item costs related to electricity generation. Since the inaugural meeting of the SVCE Board of Directors in April of 2016, the Board hired a Chief Executive Officer, and approved new key staff positions with recruitments for these positions currently underway. More recently, the Board has been guiding negotiations with power suppliers, to procure renewable and carbon free electricity at costs competitive with what residents and businesses pay for PG&E power today. SVCE will be offering two new options for local residential and commercial electricity customers at competitive rates. The default power supply mix for SVCE’s GreenStart service will be 100% carbon free, sourced from 50% eligible renewable power sources and 50% carbon free sources (mostly large hydroelectric power). Customers automatically enrolled in SVCE’s service will receive GreenStart service. By comparison, PG&E’s current electric service is approximately 30% eligible renewable, 60% carbon-free (mostly from PG&E nuclear generation at Diablo Canyon) and the remainder 40% is from conventional generation. According to SVCE, the estimated cost for GreenStart service will be approximately 1% less ( $0.001/kWh) less expensive than PG&E service. SVCE will also offer an 100% eligible renewable, carbon free service called GreenPrime. GreenPrime will be sourced entirely from eligible renewable resources as defined by the State of California. According to SVCE, customers will have the option to upgrade to GreenPrime service, at an estimated premium of $0.008/kWh to PG&E’s current service. Exact program rates will be approved by the SVCE Board of Directors in January/February of 2017. Analysis & Discussion Both GreenStart and GreenPrime are 100% carbon free services. Either service helps the City to significantly reduce carbon emissions from its municipal operations, and address important sustainability goals. However, by upgrading from GreenStart to GreenPrime for municipal operations, the City of Cupertino is demonstrating additional environmental leadership. GreenPrime is generated from 100% renewable, carbon free sources, primarily solar and wind farms in California and elsewhere on the western grid. For this reason, staff recommends that Council direct Silicon Valley Clean Energy (SVCE) to upgrade the City’s electricity accounts to GreenPrime service, upon service launch in April 2017. Opting up to GreenPrime further expands demand for generation from these new and competitive renewable energy sources. Municipal adoption of GreenPrime serves as the highest leadership example for local residents and businesses considering their energy sourcing 435 options, similar to examples already set by the City for our plug-in and electric fleet vehicles, energy conservation, Green Business certified buildings, solar arrays on municipal buildings, Environmental Education Center green building and much more. As seen in Table 1, based on the City’s municipal electricity consumption of 3,364,000 kWh for calendar year 2015, opting up to GreenPrime is estimated to increase the City’s electricity costs by about $27,000 per year, less than 5% of total electricity costs. Table 1. Annual Cost Comparison Estimates Between PG&E, GreenStart, and GreenPrime, GreenStart (50% renewable, 100% carbon free) GreenPrime (100% renewable, 100% carbon free) Compared to PG&E $0.001/kWh savings $3,364/yr savings $0.008/kWh additional $26,912/yr additional Sustainability Impact Both GreenStart and GreenPrime options would reduce GHG emissions associated with the City by providing 100% carbon free electricity generation. Upgrading all municipal electric accounts to 100% renewable energy, offered with GreenPrime, will support long-term energy solutions while reducing negative environmental impacts associated with the City’s municipal electricity consumption. As noted above, it would help to implement the City’s Climate Action Plan measures, particularly Measure M-F-1-2: Create Community Choice Energy option. Successful implementation of this measure assumes that 100% of municipal operations electricity use in 2020 comes from 100% renewable or zero carbon sources via a CCE program like Silicon Valley Clean Energy. The CAP estimates that the emissions reduction associated with the City purchasing its electricity from zero carbon sources for its municipal facilities would result in a greenhouse gas reduction of 870 MTCO2e per year. Fiscal Impact Using 2015 usage data as a baseline, opting up the City’s municipal electric accounts to GreenPrime is estimated to cost about $27,000 more per year when compared to what the City would normally pay PG&E. If the City’s accounts will be enrolled in SVCE in April 2017 , it is expected that current budgeted funds will be enough to cover the increase associated with opting up to GreenPrime for the remainder of the fiscal year. _____________________________________ Prepared by: Katy Nomura, Management Analyst & Misty Mersich, Sustainability Manager Reviewed by: Roger Lee, Assistant Director of Public Works and Jaqui Guzmán, Deputy City Manager Approved for Submission by: David Brandt, City Manager 436 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2118 Name: Status:Type:Ordinances and Action Items Agenda Ready File created:In control:10/25/2016 City Council On agenda:Final action:12/6/2016 Title:Subject: Request from the Taipei Friendship City Committee for City to Sponsor a Smart City Conference in May of 2017 (continued from October 18) Sponsors: Indexes: Code sections: Attachments:Staff Report Action ByDate Action ResultVer. City Council12/6/20161 Subject:RequestfromtheTaipeiFriendshipCityCommitteeforCitytoSponsoraSmartCity Conference in May of 2017 (continued from October 18) Sponsor the proposed Smart City Conference CITY OF CUPERTINO Printed on 11/29/2016Page 1 of 1 powered by Legistar™437 OFFICE OF THE CITY MANAGER CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3212 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: October 18, 2016 Subject Request from the Taipei Friendship City Committee for City to Sponsor a Smart City Conference in May of 2017 Recommended Action Sponsor the proposed Smart City Conference Discussion On September 20, 2016, the City established a Friendship City relationship with Taipei, Republic of China. As a key program objective, the Taipei Friendship City Committee proposed to hold a Smart City Conference which would connect local government officials with the proponents of Smart City technology in Taiwan, the United States and potentially other countries. The Committee has proposed to hold this conference in the last week of May, 2017, at a location within the City of Cupertino. The Committee is requesting that the City be an “Official Sponsor” of the conference and agree to be listed as such on any materials. The Committee proposes to fund the costs of this conference by seeking contributions from other Friendship City Committees and potentially charging technology companies for the right to market technology at the conference. The Committee has represented that it is not and will not request any financial assistance from the City for the Smart City Conference. Fiscal Impact By agreeing to sponsor the Smart City Conference, the City would be permitting the Taipei Friendship Committee to use the City name and potentially the City logo to market the conference. The Committee has represented that it is not seeking any financial support from the City for this conference Sustainability Impacts Smart City technologies include technologies and processes that promote environmental efficiency and sustainability, and as such could provide indirect sustainability benefits. Submitted by: David Brandt, City Manager 438 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1993 Name: Status:Type:Reports by Council and Staff Agenda Ready File created:In control:9/21/2016 City Council On agenda:Final action:12/6/2016 Title:Subject: Report on Committee assignments and general comments Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. City Council12/6/20161 Subject: Report on Committee assignments and general comments Report on Committee assignments and general comments CITY OF CUPERTINO Printed on 11/29/2016Page 1 of 1 powered by Legistar™439