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02-21-2017 Searchable packetCITY OF CUPERTINO AGENDA Tuesday, February 21, 2017 10350 Torre Avenue, Council Chamber CITY COUNCIL 6:45 PM PLEDGE OF ALLEGIANCE ROLL CALL CEREMONIAL MATTERS AND PRESENTATIONS 1.Subject: Presentation of Certificates of Recognition for the Science Fair winners and Science and Talent Search winners Recommended Action: Present Certificates of Recognition for the Science Fair winners and Science and Talent Search winners 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. 2.Subject: Approve the January 30 special meeting (commissions interviews) City Council minutes Recommended Action: Approve the January 30 special meeting (commissions interviews) City Council minutes A - Draft Minutes Page 1 CITY OF CUPERTINO 1 February 21, 2017City Council AGENDA 3.Subject: Approve the January 31 special meeting (commissions interviews) City Council minutes Recommended Action: Approve the January 31 special meeting (commissions interviews) City Council minutes A - Draft Minutes 4.Subject: Approve the February 7 City Council minutes Recommended Action: Approve the February 7 City Council minutes A - Draft Minutes 5.Subject: Sidewalk Renovation-Stevens Creek Blvd (Stelling-De Anza) Project, No. 2017-21 Recommended Action: Authorize the City Manager to award and execute a construction contract with JJR Construction, Inc. in the amount of $179,795 and approve a construction contingency of $18,000 for a total of $197,795 Staff Report A - Draft Contract 6.Subject: Approve a semi-rural designation eliminating the requirement for sidewalks on a portion of San Fernando Avenue, south of the Blackberry Farm Entrance, pursuant to Ordinance No. 1925 Recommended Action: Adopt Resolution No. 17-019 designating a portion of San Fernando Avenue as semi-rural Staff Report A - Draft Resolution 7.Subject: Planning Commission’s recommendation to select Don Sun as the Environmental Review Committee representative . Recommended Action: Accept the Planning Commission’s recommendation to the Environmental Review Committee. Staff Report SECOND READING OF ORDINANCES Page 2 CITY OF CUPERTINO 2 February 21, 2017City Council AGENDA 8.Subject: Second Reading of an ordinance amending Title 11 Chapter 11.08 Sections 11.08.160 and 11.08.180 of the Cupertino Municipal Code Regarding Restrictions on Riding Bicycles on Sidewalks and Pedestrian Paths Recommended Action: Conduct the second reading and enact Ordinance No. 17-2161: “An Ordinance of the City Council of the City of Cupertino Amending Title 11 Chapter 11.08 Sections 11.08.160 and 11.08.180 Regarding Restrictions on Riding Bicycles on Sidewalks and Pedestrian Paths” Staff Report A - Draft Ordinance 17-2161 PUBLIC HEARINGS 9.Subject: Consideration pursuant to a Lease with San Jose Water Company, of the reasonableness of an increase in water rates to customers served by the Cupertino Municipal Water System leased to San Jose Water Company. The increase in rates is substantially identical to that authorized for increased costs of operation and maintenance by the California Public Utilities Commission, for systems owned and operated by San Jose Water Company in other areas within the City. Recommended Action: 1. Hold a Public Hearing on proposed Cupertino Municipal Water System potable water rates and charges, and: 2. Postpone determination of reasonableness of the requested 3.83% rate increase until such time that San Jose Water Company provides to City relevant cost (repair, maintenance, operation) and relevant revenue data specific to the customers serviced by the Cupertino Municipal Water System. Staff Report Attachment A - Water Service Map Attachment B - Lease Agreement with San Jose Water Company Attachment C - San Jose Water Advice Letter 498 to Public Utilities Commission 11-15-16 Attachment D - Public Utilities Commission Approved Advice Letter 498 12-19-16 - Exhibit 1 Attachment E - September 22, 2016 SJWC request for 2017 water rate increases Attachment F - Public Notices & Comments Page 3 CITY OF CUPERTINO 3 February 21, 2017City Council AGENDA 10.Subject: Review and consider a development proposal submitted (Scandinavian Furniture Site), for consideration by the City Council, to authorize the proposed applicant to submit an application for a General Plan Amendment and staff to commence environmental and project review. (Application No.: GPAAuth-2016-01; Applicant: Kings Mill Group, Keith Fichtner; Location: 19900 Stevens Creek Boulevard; APN: 369-05-038) Recommended Action: Staff recommends that the City Council adopt the Resolution No. 17-020 (Attachment A) after determining whether the application is authorized to move forward to apply for a General Plan Amendment. Staff Report A - Draft Resolution B - City Council policy for General Plan Amendment application procedures C - Scandinavian Furniture project plans D - General Plan Amendment Request Application: Comprehensive Project Description E - Fiscal Analysis of 19900 Stevens Creek Boulevard General Plan Amendment Application, prepared by Economics and Planning Systems, Inc., dated February 10, 2017 F - Relevant Policies in the EDSP ORDINANCES AND ACTION ITEMS REPORTS BY COUNCIL AND STAFF 11.Subject: Report on Committee assignments and general comments Recommended Action: Report on Committee assignments and general comments ADJOURNMENT Page 4 CITY OF CUPERTINO 4 February 21, 2017City 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 5 CITY OF CUPERTINO 5 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:117-2307 Name: Status:Type:Ceremonial Matters & Presentations Agenda Ready File created:In control:1/30/2017 City Council On agenda:Final action:2/21/2017 Title:Subject: Presentation of Certificates of Recognition for the Science Fair winners and Science and Talent Search winners Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. City Council2/21/20171 Subject:PresentationofCertificatesofRecognitionfortheScienceFairwinnersandScience and Talent Search winners PresentCertificatesofRecognitionfortheScienceFairwinnersandScienceandTalentSearch winners CITY OF CUPERTINO Printed on 2/15/2017Page 1 of 1 powered by Legistar™6 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1945 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:9/1/2016 City Council On agenda:Final action:2/21/2017 Title:Subject: Approve the January 30 special meeting (commissions interviews) City Council minutes Sponsors: Indexes: Code sections: Attachments:A - Draft Minutes Action ByDate Action ResultVer. City Council2/21/20171 Subject:ApprovetheJanuary30specialmeeting(commissionsinterviews)CityCouncil minutes Approve the January 30 special meeting (commissions interviews) City Council minutes CITY OF CUPERTINO Printed on 2/15/2017Page 1 of 1 powered by Legistar™7 DRAFT MINUTES CUPERTINO CITY COUNCIL Monday, January 30, 2017 SPECIAL CITY COUNCIL MEETING ROLL CALL At 5:07 p.m. Mayor Savita Vaidhyanathan called the City Council meeting to order in Cupertino City Hall Conference Room A, 10300 Torre Avenue. Present: Mayor Savita Vaidhyanathan, Vice Mayor Darcy Paul, and Councilmembers Barry Chang, Steven Scharf and Rod Sinks. Absent: None. ORAL COMMUNICATIONS – None COMMISSIONS INTERVIEWS 1. Subject: Interview applicants for commissions with terms expiring: Bicycle Pedestrian, Library, Fine Arts, and Housing Recommended Action: Conduct interviews and make appointments to the Bicycle Pedestrian, Library, Fine Arts, and Housing commissions The City Council conducted interviews for the Bicycle Pedestrian Commission and reappointed Pete Heller to a full term ending 1/30/21, appointed Jennifer Shearin to a full term ending 1/30/21 and Gerhard Eschelbeck to a partial term (counts as full) ending 1/30/19, and designated Vidula Aiyer as Alternate. The City Council conducted interviews for the Library Commission and appointed Liana Crabtree, Jia Wo, and Christie Wang to full terms ending 1/30/21, and designated David Sandler as Alternate. The City Council conducted interviews for the Fine Arts Commission and appointed Wenjia Chen to a full term ending 1/30/21, reappointed Rajeswari Mahalingam to a full term ending 1/30/21, and designated Helen Yang as Alternate. The City Council conducted interviews for the Housing Commission and appointed Sanjiv 8 City Council MINUTES January 30, 2017 Kapil to a partial term (counts as full) ending 1/30/19, John Zhao to a full term ending 1/30/21, and designated Mingming Liang as Alternate. ADJOURNMENT At 8:50 p.m., Mayor Vaidhyanathan adjourned the meeting to Tuesday, January 31 at 5:00 p.m. for commission interviews. ________________________________ Kirsten Squarcia, Deputy City Clerk 9 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1946 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:9/1/2016 City Council On agenda:Final action:2/21/2017 Title:Subject: Approve the January 31 special meeting (commissions interviews) City Council minutes Sponsors: Indexes: Code sections: Attachments:A - Draft Minutes Action ByDate Action ResultVer. City Council2/21/20171 Subject:ApprovetheJanuary31specialmeeting(commissionsinterviews)CityCouncil minutes Approve the January 31 special meeting (commissions interviews) City Council minutes CITY OF CUPERTINO Printed on 2/15/2017Page 1 of 1 powered by Legistar™10 DRAFT MINUTES CUPERTINO CITY COUNCIL Tuesday, January 31, 2017 SPECIAL CITY COUNCIL MEETING ROLL CALL At 5:07 p.m. Mayor Savita Vaidhyanathan called the City Council meeting to order in Cupertino City Hall Conference Room A, 10300 Torre Avenue. Present: Mayor Savita Vaidhyanathan, Vice Mayor Darcy Paul, and Councilmembers Barry Chang, Steven Scharf and Rod Sinks. Absent: None. ORAL COMMUNICATIONS – None COMMISSIONS INTERVIEWS 1. Subject: Interview applicants for commissions with terms expiring: Planning, Technology, Information, and Communications, and Audit Committee Recommended Action: Conduct interviews and make appointments to the Planning, Technology, Information, and Communications commissions, and Audit Committee The City Council conducted interviews for the Planning Commission and appointed David Fung and Jerry Liu to full terms ending 1/30/21, reappointed Alan Takahashi to a full term ending 1/30/21, and designated Margaret Gong as Alternate. The City Council conducted interviews for the Technology, Information, and Communications Commission and appointed Rajaram Soundararajan to a partial term (counts as full) ending 1/30/20, and designated Mukesh Garg as Alternate. The City Council conducted interviews for the Audit Committee and reappointed Eno Schmidt to a full term ending 1/30/21, and designated James Luther as 1st Alternate and Mingming Liang as 2nd Alternate. 11 City Council MINUTES January 31, 2017 ADJOURNMENT At 8:25 p.m., Mayor Vaidhyanathan adjourned the meeting. ________________________________ Kirsten Squarcia, Deputy City Clerk 12 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1947 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:9/1/2016 City Council On agenda:Final action:2/21/2017 Title:Subject: Approve the February 7 City Council minutes Sponsors: Indexes: Code sections: Attachments:A - Draft Minutes Action ByDate Action ResultVer. City Council2/21/20171 Subject: Approve the February 7 City Council minutes Approve the February 7 City Council minutes CITY OF CUPERTINO Printed on 2/15/2017Page 1 of 1 powered by Legistar™13 DRAFT MINUTES CUPERTINO CITY COUNCIL Tuesday, February 7, 2017 REGULAR CITY COUNCIL MEETING ROLL CALL At 6:45 p.m. Mayor Savita Vaidhyanathan called the City Council meeting to order in Cupertino City Hall Conference Room A, 10300 Torre Avenue. Present: Mayor Savita Vaidhyanathan, Vice Mayor Darcy Paul, and Councilmembers Barry Chang, Steven Scharf and Rod Sinks. Absent: None. Mayor Vaidhyanathan reordered the agenda to take up item No. 13 before Item No. 12. CEREMONIAL MATTERS AND PRESENTATIONS 1. Subject: Proclamation in memory of Cupertino resident Gin Lu "Tommy" Shwe Recommended Action: Present proclamation in memory of Cupertino resident Gin Lu "Tommy" Shwe Mayor Vaidhyanathan presented the proclamation in memory of Cupertino resident Gin Lu "Tommy" Shwe to Tommy Shwe’s family. POSTPONEMENTS – None ORAL COMMUNICATIONS Shashi Rekha Alur talked about making stress free violence free schools and the YES! for Schools program on March 10 (Distributed a handout) The following people spoke about human rights violations in China and the Hard to Believe movie screening at Bluelight Cinemas on February 8 (Distributed handouts): Chun Lee Mei Chen 14 City Council MINUTES February 7, 2017 Sophie Liu Li Juan Tang Cliff Chen Christian Lambert Sharon Roan Lee Taghi Saadati talked about parking and street sweeping on Elmsford Drive. Jean Beadord, on behalf of Dolly Sandoval, talked about the Planning Commission appointments. Art Cohen, on behalf of Bluelight Cinemas, talked about upcoming events. Fariba Narjat, on behalf of the Iranian Federated Women’s Club, talked about the Iranian Film Festival at Bluelight Cinemas on March 12. Danessa Techmanski talked about potential uses for the Stocklmeier property. CONSENT CALENDAR Chang moved and Sinks seconded to approve the items on the Consent Calendar as presented. Ayes: Vaidhyanathan, Paul, Chang, Scharf and Sinks. Noes: None. Abstain: None. Absent: None. 2. Subject: Approve the January 24 City Council minutes Recommended Action: Approve the January 24 City Council minutes 3. Subject: Accept Accounts Payable for the period ending December 2, 2016 Recommended Action: Adopt Resolution No. 17-006 accepting Accounts Payable for the period ending December 2, 2016 4. Subject: Accept Accounts Payable for the period ending December 9, 2016 Recommended Action: Adopt Resolution No. 17-007 accepting Accounts Payable for the period ending December 9, 2016 5. Subject: Accept Accounts Payable for the period ending December 16, 2016 Recommended Action: Adopt Resolution No. 17-008 accepting Accounts Payable for the period ending December 16, 2016 15 City Council MINUTES February 7, 2017 6. Subject: Accept Accounts Payable for the period ending December 22, 2016 Recommended Action: Adopt Resolution No. 17-009 accepting Accounts Payable for the period ending December 22, 2016 7. Subject: Accept Accounts Payable for the period ending December 31, 2016 Recommended Action: Adopt Resolution No. 17-010 accepting Accounts Payable for the period ending December 31, 2016 8. Subject: Approval of Bay Area Governments (ABAG) Regional Collaborative Services Agreement with Property Assessed Clean Energy (PACE) Providers and Adoption of Resolutions Authorizing Membership in the California Enterprise Development Authority, Golden State Finance Authority, Western Riverside Council of Governments, and the California Statewide Community Development Authorities and to participate in the PACE programs Recommended Action: 1. Adopt Resolutions to join the following joint power agencies and participate in their PACE programs a. California Enterprise Development Authority (Figtree PACE Program), Resolution No. 17-011 b. Golden State Finance Authority (Ygrene PACE Program), Resolution Nos. 17-012 and 17-013 c. Western Riverside Council of Governments (California HERO PACE Program), Resolution No. 17-014 d. California Statewide Communities Development Authority (Open PACE Program), Resolution No. 17-015; and 2. Authorize the City Manager to approve and sign the acknowledgement and addendums of the Association of Bay Area Governments (ABAG) Regional Collaborative Services Agreement, as executed between ABAG and Residential PACE Providers, and execute any other document necessary to carry out the City's membership in each of the PACE Providers listed above Written communications for this item included an amended staff report. 9. Subject: Application for Alcohol Beverage License for PEFF LLC (dba Enzo's Restaurant), 21275 Stevens Creek Boulevard, Ste. 510 Recommended Action: Recommend approval to the California Department of Alcoholic Beverage Control of the application for Alcohol Beverage License for PEFF LLC (dba Enzo's Restaurant), 21275 Stevens Creek Boulevard, Ste. 510 10. Subject: Accept resignation of Parks and Recreation Commissioner David 16 City Council MINUTES February 7, 2017 Fung and direct staff to fill the vacancy Recommended Action: Accept resignation of Parks and Recreation Commissioner David Fung and direct staff to fill the unscheduled vacancy: a.) Application deadline date of Friday, March 10; and b.) Interview date of Tuesday, March 21 11. Subject: Transfer of funds for expenses related to Mayor Vaidhyanathan’s participation in Silicon Valley Leadership Group’s annual D.C. Advocacy Trip on March 17-19 to meet with Congressional and Agency officials regarding funding for city and regional priorities Recommended Action: Transfer $2,000 to cover all costs, not limited to travel expenses, lodging and food, for the Mayor’s participation in SLVG’s annual D.C. Advocacy Trip Written communications for this item included an amended staff report. SECOND READING OF ORDINANCES - None PUBLIC HEARINGS 12. Subject: Petition for Reconsideration regarding the City Council decision of December 6, 2016, denying Petitioner Kimberly Sandstrom’s appeal of the determination that she is ineligible to purchase a Below Market Rate (BMR) unit Recommended Action: Staff recommends that the City Council: 1. Consider the Petition for Reconsideration (Attachment B-1) and deny it for its failure to meet the requirements of Cupertino Municipal Code (CMC) Section 2.08.096 and adopt Resolution No. 17-016 (Attachment A-1); or, in the alternative; 2. Conduct a hearing to reconsider its decision of December 6, 2016 based upon the new evidence and grounds proffered by Petitioner, if Council determines that the Petition meets the requirements of Cupertino Municipal Code section 2.08.096, and affirm its decision denying Petitioner’s appeal Written communications for this item included a staff PowerPoint presentation. Mayor Vaidhyanathan said that she served as an uncompensated advisor to West Valley Community Services (WVCS) and would be fair and impartial during the hearing. Councilmember Scharf said that he was not on Council during the first hearings but he attended the meetings and reviewed the case. Senior Planner Kerri Heusler reviewed the staff report via a PowerPoint presentation. 17 City Council MINUTES February 7, 2017 Assistant City Manager Aarti Shrivastava answered questions from Council. Petitioner Kimberly Sandstrom spoke about her case. Mayor Vaidhyanathan opened the public hearing and Jennifer Griffin spoke. Mayor Vaidhyanathan closed the public hearing. Sinks moved and Vaidhyanathan seconded to adopt Resolution No. 17-016 denying the Petition for Reconsideration for its failure to meet the requirements of Cupertino Municipal Code (CMC) Section 2.08.096. The motion carried with Scharf abstaining. ORDINANCES AND ACTION ITEMS 13. Subject: Order the abatement of a public nuisance (weeds) pursuant to provisions of Ordinance No. 724 and Resolution No. 16-136 Recommended Action: Note objections and adopt Resolution No. 17-017 ordering abatement of a public nuisance (weeds) pursuant to provisions of Ordinance No. 724 and Resolution No. 16-136 Deputy City Clerk Kirsten Squarcia reviewed the staff report. Steve Azar and Kathy Khodi-Elhami spoke. Chang moved and Scharf seconded to adopt Resolution No. 17-017 ordering abatement of a public nuisance (weeds) pursuant to provisions of Ordinance No. 724 and Resolution No. 16-136. The motion carried unanimously. 14. Subject: An Ordinance of the City Council of the City of Cupertino Amending Title 11 Chapter 11.08 Sections 11.08.160 and 11.08.180 of the Cupertino Municipal Code Regarding Restrictions on Riding Bicycles on Sidewalks and Pedestrian Paths Recommended Action: Conduct first reading of Ordinance No. 17-2161, An Ordinance of the City Council of the City of Cupertino Amending Title 11 Chapter 11.08 Sections 11.08.160 and 11.08.180 of the Cupertino Municipal Code Regarding Restrictions on Riding Bicycles on Sidewalks and Pedestrian Paths Written communications for this item included a staff PowerPoint presentation. Director of Public Works Timm Borden reviewed the staff report. Staff answered questions from Council. 18 City Council MINUTES February 7, 2017 Mayor Vaidhyanathan opened the public hearing and the following people spoke: Wynn Kageyama, League Cycling Instructor Tom Schaefer Art Cohen Larry Dean Leslie Larson Luke Lang Jiali Gao Captain Rich Urena Mayor Vaidhyanathan closed the public hearing. Bicycle Pedestrian Commissioner Jennifer Shearin and staff answered questions from Council. Deputy City Clerk Kirsten Squarcia read the title of the ordinance. Paul moved and Chang seconded to read Ordinance No. 17-2161 by title only and that the City Clerk’s reading would constitute the first reading thereof. Ayes: Vaidhyanathan, Paul, and Chang. Noes: Scharf and Sinks. Abstain: None. Absent: None. Council also directed staff to continue using the Bicycle Pedestrian Commission to support outreach for training, education, and signage. 15. Subject: Fee waiver request by Pacific Coast Farmers Market Association (PCFMA) for costs incurred related to a Special Event Permit for a farmer’s market at the Creekside Park north parking lot on Friday mornings for the 2017 calendar year Recommended Action: Staff recommends adoption of Resolution No. 17-018 “A resolution of the City Council of the City of Cupertino waiving costs incurred related to the use of the Creekside Park north parking lot by the Pacific Coast Farmer’s Market Association every Friday morning for the 2017 calendar year" Written communications for this item included a staff map and a resident email. Economic Development Manager Angela Tsui reviewed the staff report. Mayor Vaidhyanathan opened the public hearing and the following people spoke: 19 City Council MINUTES February 7, 2017 Sujatha Venkatraman, West Valley Community Services Jennifer Griffin Tom Schaefer Jennifer Shearin Jorge Vega Mayor Vaidhyanathan closed the public hearing. Sinks moved and Chang seconded to adopt Resolution No. 17-018 “A resolution of the City Council of the City of Cupertino waiving costs incurred related to the use of the Creekside Park north parking lot by the Pacific Coast Farmer’s Market Association every Friday morning for the 2017 calendar year". The motion carried unanimously. Council also directed staff to look at traffic patterns near Creekside and Cupertino High School to alleviate possible congestion. Council went into recess at 10:06 p.m. and reconvened at 10:14 p.m. REPORTS BY COUNCIL AND STAFF 16. Subject: Update on Status of I-280/Wolfe Road Interchange Improvements Project Recommended Action: Receive update on status of I-280/Wolfe Road Interchange Improvements Project Written communications for this item included a staff PowerPoint presentation. Director of Public Works Timm Borden introduced the staff report and Senior Civil Engineer David Stillman further reviewed the item via a PowerPoint presentation. Staff answered questions from Council. Bill Wagner, Principal from HMH Engineers, answered questions from Council. Jennifer Griffin and Tom Schaefer spoke. Council received the update. 17. Subject: Update on Status of 2016 Cupertino Bicycle Transportation Plan Implementation 20 City Council MINUTES February 7, 2017 Recommended Action: Receive update on status of 2016 Cupertino Bicycle Transportation Plan Implementation Written communications for this item included a staff PowerPoint presentation. Senior Civil Engineer David Stillman reviewed the staff report via a PowerPoint presentation. Staff answered questions from Council. The following people spoke: Jennifer Griffin Steve Elich Larry Dean Taghi Saadati Tom Schaefer Council received the update. 18. Subject: Report on Committee assignments and general comments Recommended Action: Report on Committee assignments and general comments Council members highlighted the activities of their committees and various community events. Council requested staff halt the Verizon cell tower project at City Hall until the tower aesthetics are addressed and the power mains are hooked up; and bring an item to a future Council meeting to discuss working with the Cities Association of Santa Clara County for a regional approach to human rights advocacy. ADJOURNMENT At 11:57 p.m., Mayor Vaidhyanathan adjourned the meeting. ________________________________ Kirsten Squarcia, Deputy City Clerk 21 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:117-2245 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:1/4/2017 City Council On agenda:Final action:2/21/2017 Title:Subject: Sidewalk Renovation-Stevens Creek Blvd (Stelling-De Anza) Project, No. 2017-21 Sponsors: Indexes: Code sections: Attachments:Staff Report A - Draft Contract Action ByDate Action ResultVer. City Council2/21/20171 Subject: Sidewalk Renovation-Stevens Creek Blvd (Stelling-De Anza) Project, No. 2017-21 AuthorizetheCityManagertoawardandexecuteaconstructioncontractwithJJR Construction,Inc.intheamountof$179,795andapproveaconstructioncontingencyof $18,000 for a total of $197,795 CITY OF CUPERTINO Printed on 2/15/2017Page 1 of 1 powered by Legistar™22 1 PUBLIC WORKS DEPARTMENT CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3354 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: February 21, 2017 Subject Sidewalk Renovation-Stevens Creek Blvd (Stelling-De Anza) Project, No. 2017-21. Recommended Action Authorize the City Manager to award and execute a construction contract with JJR Construction, Inc. in the amount of $179,795 and approve a construction contingency of $18,000 for a total of $197,795. Discussion On September 6, 2016, City Council authorized funding for the Sidewalk Renovation- Stevens Creek Blvd (Stelling-De Anza) Project in the amount of $250,000. The project will replace a portion of the existing pavers with concrete along Stevens Creek Boulevard between De Anza Boulevard and Stelling Road. The project will install approximately 1,700 linear feet of concrete walkway as well as perform some driveway repairs adjacent to the renovated sidewalk. The changes will enhance pedestrian safety and encourage walking within the City. On February 7, 2017, the City received two bids for the subject project, which are shown below. BID RESULTS BIDDER BID AMOUNT Sposeto Engineering, Inc. $232,880 JJR Construction, Inc. $179,795 Engineer’s Estimate $192,000 The low bidder is JJR Construction, Inc. Their bid of $179,795 is 6.3% under the Engineer’s Estimate of $192,000 and has been deemed to be within an acceptable range for the project work. 23 2 Staff recommends award of the Sidewalk Renovation-Stevens Creek Blvd (Stelling-De Anza) Project to JJR Construction, Inc. Sustainability Impact None Fiscal Impact Award of the project will result in a fiscal impact of up to $197,795. On September 6, 2016, City Council authorized $250,000 to design and construct the project. No additional appropriation is needed. _____________________________________ Prepared by: John Raaymakers, Public Works Project Manager Reviewed by: Timm Borden, Director of Public Works Approved for Submission by: David Brandt, City Manager Attachment: A – Draft Contract 24 Project No. 2017-21 City of Cupertino 00520 - 1 Contract Sidewalk Renovation-Stevens Creek Blvd DOCUMENT 00520 CONTRACT THIS CONTRACT, dated this day of , 20 ___ , by and between JJR CONSTRUCTION, INC. whose place of business is located at 1120 Ninth Avenue, San Mateo, CA 94402 (“Contractor”), and the CITY OF CUPERTINO, a Municipal Corporation of the State of California (“City”) acting under and by virtue of the authority vested in the City by the laws of the State of California. WHEREAS, City, on the________ day of ________, 2017 awarded to Contractor the following Project: PROJECT NUMBER 2017-21 SIDEWALK RENOVATION-STEVENS CREEK BOULEVARD NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, Contractor and City agree as follows: Article 1. Work 1.1 Contractor shall complete all Work specified in the Contract Documents, in accordance with the Specifications, Drawings, and all other terms and conditions of the Contract Documents. Article 2. Agency and Notices to City 2.1 City has designated John Raaymakers to act as City’s Authorized Representative, who will represent City in performing City’s duties and responsibilities and exercising City’s rights and authorities in Contract Documents. City may change the individual(s) acting as City’s Authorized Representative(s), or delegate one or more specific functions to one or more specific City’s Representatives, including without limitation engineering, architectural, inspection and general administrative functions, at any time with notice and without liability to Contractor. Each City’s Representative is the beneficiary of all Contractor obligations to City, including without limitation, all releases and indemnities. 2.2 City has designated HMH Engineers, Inc. as the Design Consultant. City may change the identity of the Design Consultant at any time with notice and without liability to Contractor. 2.3 All notices or demands to City under the Contract Documents shall be to City’s Authorized Representative at: 10300 Torre Avenue, Cupertino, California 95014 or to such other person(s) and address(es) as City shall provide to Contractor. Article 3. Contract Time and Liquidated Damages 3.1 Contract Time. The Contract Time will commence to run on the date indicated in the Notice to Proceed. City may give a Notice to Proceed at any time within 30 Days after the Notice of Award. Contractor shall not do any Work at the Site prior to the date on which the Contract Time commences to run. Contractor shall achieve Final Completion of the entire Work and be ready for Final Payment in accordance with Section 00700 (General Conditions) by 55 calendar days following the effective date of the Notice to Proceed. 25 Project No. 2017-21 City of Cupertino 00520 - 2 Contract Sidewalk Renovation-Stevens Creek Blvd 3.2 Liquidated Damages. City and Contractor recognize that time is of the essence of this Contract and that City will suffer financial loss in the form of contract administration expenses (such as project management and consultant expenses), if all or any part of the Work is not completed within the times specified above, plus any extensions thereof allowed in accordance with the Contract Documents. Consistent with Document 00700 (General Conditions), Contractor and City agree that because of the nature of the Project, it would be impractical or extremely difficult to fix the amount of actual damages incurred by City because of a delay in completion of all or any part of the Work. Accordingly, City and Contractor agree that as liquidated damages for delay Contractor shall pay City: 3.2.1 $2,000 for each Calendar Day that expires after the time specified herein for Contractor to achieve Final Completion of the entire Work as specified above. 3.2.2 $3,000 for each occurrence of a violation of Document 00800, Section 1.7 WORK DAYS AND HOURS. 3.2.3 Three Months Salary for each Key Personnel named in Contractor’s SOQ pursuant to Article 2.G of Document 00450 (Statement of Qualifications for Construction Work) who leaves the Project and/or Contractor replaces at any point before Final Completion, for any reason whatsoever, that Contractor can demonstrate to City’s satisfaction is beyond Contractor’s control. Liquidated damages shall apply cumulatively and, except as provided below, shall be presumed to be the damages suffered by City resulting from delay in completion of the Work. Contractor should be aware that California Department of Fish and Game, and other State and Federal agencies, may also levy fines and penalties for the harming, harassing or killing of protected wildlife and endangered species. Contractor hereby agrees to become familiar with and adhere to wildlife and endangered species protection requirements. 3.3 Liquidated damages for delay shall only cover administrative, overhead, interest on bonds, and general loss of public use damages suffered by City as a result of delay. Liquidated damages shall not cover the cost of completion of the Work, damages resulting from defective Work, lost revenues or costs of substitute facilities, or damages suffered by others who then seek to recover their damages from City (for example, delay claims of other contractors, subcontractors, tenants, or other third-parties), and defense costs thereof. Article 4. Contract Sum 4.1 City shall pay Contractor the Contract Sum for completion of Work in accordance with Contract Documents as set forth in Contractor’s Bid, attached hereto: See Exhibit “A” attached Article 5. Contractor’s Representations In order to induce City to enter into this Contract, Contractor makes the following representations and warranties: 5.1 Contractor has visited the Site and has examined thoroughly and understood the nature and extent of the Contract Documents, Work, Site, locality, actual conditions, as-built conditions, and all local conditions, and federal, state and local laws and regulations that in any manner may affect cost, progress, performance or furnishing of Work or which relate to any aspect of the means, methods, techniques, sequences or procedures of construction to be employed by Contractor and safety precautions and programs incident thereto. 5.2 Contractor has examined thoroughly and understood all reports of exploration and tests of subsurface conditions, as-built drawings, drawings, products specifications or reports, available for Bidding purposes, of physical conditions, including Underground Facilities, which are identified in Document 00320 (Geotechnical Data, Hazardous Materials Surveys and Existing Conditions), or which may appear in the Drawings. Contractor accepts the determination set forth in these Documents and Document 00700 (General Conditions) of the 26 Project No. 2017-21 City of Cupertino 00520 - 3 Contract Sidewalk Renovation-Stevens Creek Blvd limited extent of the information contained in such materials upon which Contractor may be entitled to rely. Contractor agrees that except for the information so identified, Contractor does not and shall not rely on any other information contained in such reports and drawings. 5.3 Contractor has conducted or obtained and has understood all such examinations, investigations, explorations, tests, reports and studies (in addition to or to supplement those referred to in Section 5.2 of this Document 00520) that pertain to the subsurface conditions, as-built conditions, underground facilities, and all other physical conditions at or contiguous to the Site or otherwise that may affect the cost, progress, performance or furnishing of Work, as Contractor considers necessary for the performance or furnishing of Work at the Contract Sum, within the Contract Time and in accordance with the other terms and conditions of the Contract Documents, including specifically the provisions of Document 00700 (General Conditions); and no additional examinations, investigations, explorations, tests, reports, studies or similar information or data are or will be required by Contractor for such purposes. 5.4 Contractor has correlated its knowledge and the results of all such observations, examinations, investigations, explorations, tests, reports and studies with the terms and conditions of the Contract Documents. 5.5 Contractor has given City prompt written notice of all conflicts, errors, ambiguities, or discrepancies that it has discovered in or among the Contract Documents and as-built drawings and actual conditions and the written resolution thereof through Addenda issued by City is acceptable to Contractor. 5.6 Contractor is duly organized, existing and in good standing under applicable state law, and is duly qualified to conduct business in the State of California. 5.7 Contractor has duly authorized the execution, delivery and performance of this Contract, the other Contract Documents and the Work to be performed herein. The Contract Documents do not violate or create a default under any instrument, contract, order or decree binding on Contractor. 5.8 Contractor has listed Subcontractors pursuant to the Subcontractor Listing Law, California Public Contracting Code §4100 et seq. in document 00430 (Subcontractors List) Article 6. Contract Documents 6.1 Contract Documents consist of the following documents, including all changes, addenda, and modifications thereto: Document 00400 Bid Form Document 00430 Subcontractors List Document 00450 Statement of Qualifications Document 00481 Non-Collusion Affidavit Document 00482 Bidder Certifications Document 00510 Notice of Award Document 00520 Contract Document 00530 Insurance Forms Document 00550 Notice to Proceed Document 00610 Construction Performance Bond Document 00620 Construction Labor and Material Payment Bond Document 00630 Guaranty Document 00650 Agreement and Release of Any and All Claims Document 00660 Substitution Request Form Document 00680 Escrow Agreement for Security Deposit in Lieu of Retention Document 00700 General Conditions Document 00800 Special Conditions Document 00820 Special Environmental Conditions Document 00821 Insurance Document 00822 Apprenticeship Program Technical Specification/Special Provisions 27 Project No. 2017-21 City of Cupertino 00520 - 4 Contract Sidewalk Renovation-Stevens Creek Blvd Addenda(s) Drawings/Plans 6.2 There are no Contract Documents other than those listed in this Document 00520, Article 6. Document 00320 (Geotechnical Data, Hazardous Material Surveys and Existing Conditions), and the information supplied therein, are not Contract Documents. The Contract Documents may only be amended, modified or supplemented as provided in Document 00700 (General Conditions). Article 7. Miscellaneous 7.1 Terms used in this Contract are defined in Document 00700 (General Conditions) and will have the meaning indicated therein. 7.2 It is understood and agreed that in no instance are the persons signing this Contract for or on behalf of City or acting as an employee, agent, or representative of City, liable on this Contract or any of the Contract Documents, or upon any warranty of authority, or otherwise, and it is further understood and agreed that liability of the City is limited and confined to such liability as authorized or imposed by the Contract Documents or applicable law. 7.3 Contractor shall not assign any portion of the Contract Documents, and may subcontract portions of the Contract Documents only in compliance with the Subcontractor Listing Law, California Public Contracting Code §4100 et seq. 7.4 The Contract Sum includes all allowances (if any). 7.5 In entering into a public works contract or a subcontract to supply goods, services or materials pursuant to a public works contract, Contractor or Subcontractor offers and agrees to assign to the awarding body all rights, title and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. §15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services or materials pursuant to the public works contract or the subcontract. This assignment shall be made and become effective at the time City tenders final payment to Contractor, without further acknowledgment by the parties. 7.6 Copies of the general prevailing rates of per diem wages for each craft, classification, or type of worker needed to execute the Contract, as determined by Director of the State of California Department of Industrial Relations, are deemed included in the Contract Documents and on file at City’s office, or may be obtained of the State of California web site http://www.dir.ca.gov/DLSR/PWD/Northern.html and shall be made available to any interested party on request. Pursuant to Section 1861 of the Labor Code, Contractor represents that it is aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that Code, and Contractor shall comply with such provisions before commencing the performance of the Work of the Contract Documents. 7.7 Should any part, term or provision of this Contract or any of the Contract Documents, or any document required herein or therein to be executed or delivered, be declared invalid, void or unenforceable, all remaining parts, terms and provisions shall remain in full force and effect and shall in no way be invalidated, impaired or affected thereby. If the provisions of any law causing such invalidity, illegality or unenforceability may be waived, they are hereby waived to the end that this Contract and the Contract Documents may be deemed valid and binding contracts, enforceable in accordance with their terms to the greatest extent permitted by applicable law. In the event any provision not otherwise included in the Contract Documents is required to be included by any applicable law, that provision is deemed included herein by this reference(or, if such provision is required to be included in any particular portion of the Contract Documents, that provision is deemed included in that portion). 7.8 This Contract and the Contract Documents shall be deemed to have been entered into in the County of Santa Clara, State of California, and governed in all respects by California law (excluding choice of law rules). The exclusive venue for all disputes or litigation hereunder shall be in Santa Clara County. Both parties hereby 28 Project No. 2017-21 City of Cupertino 00520 - 5 Contract Sidewalk Renovation-Stevens Creek Blvd waive their rights under California Code of Civil Procedure Section 394 to file a motion to transfer any action or proceeding arising out of the Contract Documents to another venue. Contractor accepts the Claims Procedure in Document 00700, Article 12, established under the California Government Code, Title 1, Division 3.6, Part 3, Chapter 5. 29 Project No. 2017-21 City of Cupertino 00520 - 6 Contract Sidewalk Renovation-Stevens Creek Blvd IN WITNESS WHEREOF the parties have executed this Contract in quadruplicate the day and year first above written. SIDEWALK RENOVATION-STEVENS CREEK BOULEVARD CITY: CONTRACTOR: CITY OF CUPERTINO, a Municipal Corporation of the State of California JJR CONSTRUCTION, INC. By: [Signature] Attest: [Please print name here] City Clerk: Grace Schmidt Approved as to form by City Attorney: Title: ______________________________________________ [If Corporation: Chairman , President, or Vice President] City Attorney: Randolph Stevenson Hom By: I hereby certify, under penalty of perjury, that David Brandt, City Manager of the City of Cupertino was duly authorized to execute this document on behalf of the City of Cupertino. [Signature] [Please print name here] Title: [If Corporation: Secretary, Assistant Secretary, Chief Financial Officer, or Assistant Treasurer] Dated: _____________________________ David Brandt, City Manager of the City of Cupertino, a Municipal Corporation of the State of California ________________________________________________ State Contractor’s License No. Classification ________________________________________________ Expiration Date Designated Representative: Taxpayer ID No._________________________________ Name: Timm Borden Name: Title: Director of Public Works Title: Address: 10300 Torre Ave., Cupertino, CA 95014 Address: Phone: 408-777-3354 Phone: Facsimile: 408-777-3333 Facsimile: AMOUNT: $ 179,795.00 ACCOUNT NUMBER:270-99-046-ST 015-03-01 NOTARY ACKNOLEDGEMENT IS REQUIRED. IF A CORPORATION, CORPORATE SEAL AND CORPORATE NOTARY ACKNOWLEDEMENT AND FEDERAL TAX ID ARE REQUIRED. IF NOT A CORPORATION SOCIAL SECURITY NO. IS REQUIRED END OF DOCUMENT 30 31 32 33 34 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:117-2334 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:2/6/2017 City Council On agenda:Final action:2/21/2017 Title:Subject: Approve a semi-rural designation eliminating the requirement for sidewalks on a portion of San Fernando Avenue, south of the Blackberry Farm Entrance, pursuant to Ordinance No. 1925 Sponsors: Indexes: Code sections: Attachments:Staff Report A - Draft Resolution Action ByDate Action ResultVer. City Council2/21/20171 Subject:Approveasemi-ruraldesignationeliminatingtherequirementforsidewalksona portionofSanFernandoAvenue,southoftheBlackberryFarmEntrance,pursuantto Ordinance No. 1925 Adopt Resolution No. 17-019 designating a portion of San Fernando Avenue as semi-rural CITY OF CUPERTINO Printed on 2/15/2017Page 1 of 1 powered by Legistar™35 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: February 21, 2017 Subject Approve a semi-rural designation eliminating the requirement for sidewalks on a portion of San Fernando Avenue, south of the Blackberry Farm Entrance, pursuant to Ordinance No. 1925. Recommended Action Adopt Draft Resolution designating a portion of San Fernando Avenue as semi-rural. Description In the past, a number of residential property owners and neighborhood residents voiced objections to the City Municipal Code requirement that City standard curb, gutter, sidewalk, and streetlights be installed along their street frontages as a condition of their residential building permits. The typical street improvement requirements call for sidewalk to be installed behind curb and gutter on both sides of the street. In general, the objecting property owners felt that their neighborhoods were of a rural or semi-rural character that would be compromised if the normal concrete curb, gutter and sidewalk, and streetlight improvements were applied. On October 20, 2003, the City Council amended Chapter 14.04.040 of the Cupertino Municipal Code by establishing criteria to be used for designating certain streets or neighborhoods as rural or semi-rural in nature. Such a designation allows modified street improvement standards for local streets that are not covered under the hillside development provisions of the Code. The following are the findings for a semi-rural street designation: 1. Conventional improvements are not appropriate due to the character of development in the area, and surrounding developed properties lack such improvements. 2. If sidewalk is not to be provided, the street is not on a recognized route to school. 3. If sidewalk is not to be provided, traffic conditions on the street are such that pedestrians may travel safely along the street without a separate pedestrian pathway. 36 4. There are no significant accessibility issues that will arise from lack of sidewalk or the use of alternate sidewalk. 5. Waiver of streetlights or alternate streetlights would not contribute to an unsafe condition for traffic, pedestrian travel, or the security of the surrounding neighborhood. There are no maintenance or replacement issues with any alternate proposed. 6. Adequate drainage along the street and in the surrounding area exists, or can be achieved, with alternate curb and gutter or dike. 7. At least two-thirds of the property owners along the affected street have signed a petition to the City requesting a semi-rural designation for their street. Discussion The proposed semi-rural street designation is similar in character to the surrounding area; furthermore, the adjacent street, San Fernando Ct., has already been designated a semi-rural street with no sidewalk. This portion of the street is not designated as a safe route to school and the existing and future curb and gutter will allow for adequate drainage. There are no significant accessibility issues as the street serves residential properties only. Further, the street does not have either vehicular or pedestrian through access. Based on the recorded accident history, there have been no pedestrian related accidents reported on this portion of the street in the past five years. Property owners along a portion of San Fernando Avenue have circulated a petition in support of altering their neighborhood designation to semi-rural, foregoing the future installation of sidewalks. This petition does not waive the requirement for curb and gutter and street light installation. As required by Code, at least two thirds of property owners along the portion of San Fernando Avenue have signed in support of the semi- rural designation. For this petition, 17 out of 21 property owners adjacent to San Fernando Avenue have signed in support of the designation. This semi-rural application applies to properties on the portion of San Fernando Avenue south of the Blackberry Farm entrance only. The two properties on the northwest and southwest corner of the intersection of San Fernando Avenue and Byrne Avenue and properties on San Fernando Avenue between Byrne Avenue and Orange Avenue would still be required to install sidewalk at the time of development. Sustainability Impact There is no sustainability impact. 37 Fiscal Impact There is no financial impact. _____________________________________ Prepared by: Winnie Pagan, Associate Civil Engineer Reviewed by: Timm Borden, Director of Public Works Department Approved for Submission by: David Brandt, City Manager Attachment: Attachment A - Draft Resolution 38 Attachment A RESOLUTION NO. 17- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO APPROVING A SEMI-RURAL DESIGNATION FOR A PORTION OF SAN FERNANDO AVENUE WHEREAS, property owners along a portion of the frontages of San Fernando Avenue south of Blackberry Farm entrance have circulated a petition in support of altering their neighborhood designation to semi-rural; and WHEREAS, The two properties on the northwest and southwest corner of the intersection of San Fernando Avenue and Byrne Avenue, as well as properties on San Fernando Avenue between Byrne Avenue and Orange Avenue, are not included in this semi-rural designation and would still be required to install sidewalk. NOW, THEREFORE, BE IT RESOLVED THAT the City Council makes the following findings: 1. Conventional improvements are not appropriate due to the character of development in the area, and surrounding developed properties lack such improvements. The proposed semi-rural street designation is similar in character to the surrounding area; furthermore, the adjacent street, San Fernando Ct., has already been designated a semi-rural street with no sidewalk. 2. If sidewalk is not to be provided, the street is not on a recognized route to school. The street is not designated as a safe route to school. 3. If sidewalk is not to be provided, traffic conditions on the street are such that pedestrians may travel safely along the street without a separate pedestrian pathway. The street does not have either vehicular or pedestrian through access. Based on the recorded accident history, there have been no pedestrian related accidents reported in the past five years. 4. There are no significant accessibility issues that will arise from lack of sidewalk or the use of alternate sidewalk. There are no significant accessibility issues as the street serves residential properties only. 5. Waiver of streetlights or alternate streetlights would not contribute to an unsafe condition for traffic, pedestrian travel, or the security of the surrounding neighborhood. There are no maintenance or replacement issues with any alternate proposed. This petition does not waive the requirement for street light installation. 6. Adequate drainage along the street and in the surrounding area exists, or can be achieved, with alternate curb and gutter or dike. 39 Attachment A The existing and future curb and gutter will allow for adequate drainage. 7. At least two-thirds of the property owners along the affected street have signed a petition to the City requesting a semi-rural designation for their street. 17 out of 21 property owners have signed in support of the semi-rural designation. NOW, THEREFORE, BE IT FURTHER RESOLVED THAT the City Council hereby approves a semi-rural designation for the portion of San Fernando Avenue, south of the Blackberry Farm Entrance shown on Exhibit A. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this February 21, 2017, by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: _________________________ ________________________ Grace Schmidt, City Clerk Savita Vaidhyanathan, Mayor, City of Cupertino 40 BY R N E A V E OR A N G E A V E SAN FERNANDO AVE MCCLELLAN RD LOMITA AVE ALCAZAR AVE DOLORES AVE ALMADEN AVE HERMOSA AVE SANFERNANDO CT ALMADEN CIR ¯ Legend Existing Semi-Rural Designation Proposed Semi-Rural Designation SA N F E R N A N D O A V E EXHIBIT A BLACKBERRY FARM BLACK B E R R Y F A R M DRIVEW A Y 41 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:117-2376 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:2/15/2017 City Council On agenda:Final action:2/21/2017 Title:Subject: Planning Commission’s recommendation to select Don Sun as the Environmental Review Committee representative. Sponsors: Indexes: Code sections: Attachments:Staff Report Action ByDate Action ResultVer. City Council2/21/20171 Subject:PlanningCommission’srecommendationtoselectDonSunastheEnvironmental Review Committee representative. Accept the Planning Commission’s recommendation to the Environmental Review Committee. CITY OF CUPERTINO Printed on 2/15/2017Page 1 of 1 powered by Legistar™42 COMMUNITY DEVELOPMENT DEPARTMENT CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3308 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: February 21, 2017 Subject Planning Commission’s recommendation to select Don Sun as the Environmental Review Committee representative. Recommended Action Accept the Planning Commission’s recommendation to the Environmental Review Committee. Description On February 14, 2017, the Planning Commission made its annual recommendations for the selection of a member to the Environmental Review Committee (ERC). In accordance with City of Cupertino Municipal Code, the City Council shall review and affirm the selection. The recommendation is Don Sun. Sustainability Impact None Fiscal Impact None _____________________________________ Prepared by: Beth Ebben, Administrative Assistant Reviewed by: Benjamin Fu, Assistant Director of Community Development Aarti Shrivastava, Assistant City Manager Approved for Submission by: David Brandt, City Manager 43 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2200 Name: Status:Type:Second Reading of Ordinances Agenda Ready File created:In control:12/5/2016 City Council On agenda:Final action:2/21/2017 Title:Subject: Second Reading of an ordinance amending Title 11 Chapter 11.08 Sections 11.08.160 and 11.08.180 of the Cupertino Municipal Code Regarding Restrictions on Riding Bicycles on Sidewalks and Pedestrian Paths Sponsors: Indexes: Code sections: Attachments:Staff Report A - Draft Ordinance 17-2161 Action ByDate Action ResultVer. City Council2/21/20171 Subject:SecondReadingofanordinanceamendingTitle11Chapter11.08Sections11.08.160 and11.08.180oftheCupertinoMunicipalCodeRegardingRestrictionsonRidingBicycleson Sidewalks and Pedestrian Paths ConductthesecondreadingandenactOrdinanceNo.17-2161:“AnOrdinanceoftheCity CounciloftheCityofCupertinoAmendingTitle11Chapter11.08Sections11.08.160and 11.08.180 Regarding Restrictions on Riding Bicycles on Sidewalks and Pedestrian Paths” CITY OF CUPERTINO Printed on 2/15/2017Page 1 of 1 powered by Legistar™44 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: February 21, 2017 Subject Second Reading of an ordinance amending Title 11 Chapter 11.08 Sections 11.08.160 and 11.08.180 of the Cupertino Municipal Code Regarding Restrictions on Riding Bicycles on Sidewalks and Pedestrian Paths Recommended Action Conduct the second reading and enact Ordinance No. 17-2161: “An Ordinance of the City Council of the City of Cupertino Amending Title 11 Chapter 11.08 Sections 11.08.160 and 11.08.180 Regarding Restrictions on Riding Bicycles on Sidewalks and Pedestrian Paths” Discussion On February 7, 2017, City Council conducted the first reading of the Municipal Code amendment to change the maximum age for bicycling on sidewalks to the age of 12, and to allow adults who are accompanying these children to ride on the sidewalk as well. Also recommended was removing obsolete language that allowed riding on the sidewalk along Pacifica Drive between Whitney Way and Torre Avenue and clarifying language to allow bicycling on any (off-street) pedestrian path within the City unless specifically posted as prohibited. No changes have been made to the Ordinance since it was last presented to the Council. Sustainability Impact There is no sustainability impact. Fiscal Impact There is no fiscal impact. _____________________________________ Prepared by: David Stillman, Senior Civil Engineer Reviewed by: Timm Borden, Director of Public Works Approved for Submission by: David Brandt, City Manager Attachments: A – Draft Ordinance 17-2161 45 Draft Ordinance No. 17-XXXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING TITLE 11 CHAPTER 11.08 SECTIONS 11.08.160 AND 11.08.180 REGARDING RESTRICTIONS ON RIDING BICYCLES ON SIDEWALKS AND PEDESTRIAN PATHS 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: SECTION 1. Section 11.08.160 of Chapter 11.08 of Title 11 of the Cupertino Municipal Code is hereby amended to read as follows: 11.08.160 Riding On Pedestrian Facilities. No person shall ride, use or operate a bicycle on any sidewalk within the City except as specifically permitted in this chapter. 46 SECTION 2: Section 11.08.180 of Chapter 11.08 of Title 11 of the Cupertino Municipal Code is hereby amended to read as follows: 11.08.180 Exemptions. The prohibition in Section 11.08.160 against riding, using, or operating a bicycle on a sidewalk shall not apply to: A. A child age twelve years and under; and B. An adult accompanying a child age twelve years and under who is also riding, using, or operating a bicycle. C. Any person riding, using or operating a bicycle on a pedestrian path, unless specifically posted as prohibited. 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 47 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 ____ day of ___________ 2017 and ENACTED at a regular meeting of the Cupertino City Council on this ____ of __________ 2017 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: Grace Schmidt, City Clerk Savita Vaidhyanathan, Mayor, City of Cupertino 48 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-2152 Name: Status:Type:Public Hearings Agenda Ready File created:In control:11/8/2016 City Council On agenda:Final action:2/21/2017 Title:Subject: Consideration pursuant to a Lease with San Jose Water Company, of the reasonableness of an increase in water rates to customers served by the Cupertino Municipal Water System leased to San Jose Water Company. The increase in rates is substantially identical to that authorized for increased costs of operation and maintenance by the California Public Utilities Commission, for systems owned and operated by San Jose Water Company in other areas within the City. Sponsors: Indexes: Code sections: Attachments:Staff Report Attachment A - Water Service Map Attachment B - Lease Agreement with San Jose Water Company Attachment C - San Jose Water Advice Letter 498 to Public Utilities Commission 11-15-16 Attachment D - Public Utilities Commission Approved Advice Letter 498 12-19-16 - Exhibit 1 Attachment E - September 22, 2016 SJWC request for 2017 water rate increases Attachment F - Public Notices & Comments Action ByDate Action ResultVer. City Council2/21/20171 Subject:ConsiderationpursuanttoaLeasewithSanJoseWaterCompany,ofthe reasonablenessofanincreaseinwaterratestocustomersservedbytheCupertinoMunicipal WaterSystemleasedtoSanJoseWaterCompany.Theincreaseinratesissubstantially identicaltothatauthorizedforincreasedcostsofoperationandmaintenancebytheCalifornia PublicUtilitiesCommission,forsystemsownedandoperatedbySanJoseWaterCompanyin other areas within the City. 1.HoldaPublicHearingonproposedCupertinoMunicipalWaterSystempotablewaterrates and charges, and: 2.Postponedeterminationofreasonablenessoftherequested3.83%rateincreaseuntilsuch timethatSanJoseWaterCompanyprovidestoCityrelevantcost(repair,maintenance, operation)andrelevantrevenuedataspecifictothecustomersservicedbytheCupertino Municipal Water System. CITY OF CUPERTINO Printed on 2/15/2017Page 1 of 1 powered by Legistar™49 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: February 21, 2017 Subject Consideration pursuant to a Lease with San Jose Water Company, of the reasonableness of an increase in water rates to customers served by the Cupertino Municipal Water System leased to San Jose Water Company. The increase in rates is substantially identical to that authorized for increased costs of operation and maintenance by the California Public Utilities Commission, for systems owned and operated by San Jose Water Company in other areas within the City. Recommended Action 1. Hold a Public Hearing on proposed Cupertino Municipal Water System potable water rates and charges; and 2. Postpone determination of reasonableness of the requested 3.83% rate increase until such time that San Jose Water Company provides to City relevant cost (repair, maintenance, operation) and relevant revenue data specific to the customers served by the Cupertino Municipal Water System. Background There are three water service areas in Cupertino (Attachment A). One area (shown in orange) is served by a water system owned and operated by San Jose Water Company (SJWC), one area (shown in green) is served by a water system owned and operated by California Water Service Company, and one area (shown in purple) is served by the Cupertino Municipal water system that is owned by the City of Cupertino but is leased for operations by SJWC. The Cupertino Municipal Water System was leased to SJWC in October 1997 for a term of twenty-five (25) years. As the lessee of the Cupertino Municipal Water System, SJWC is responsible for all operations of the system including repair, maintenance, operation, customer service/billing, emergency service and water quality testing. Furthermore, SJWC has the responsibility to operate the Cupertino Municipal Water System in a manner similar to that in which it operates its own systems and to maintain the Cupertino 50 Municipal Water System in accordance to customary utility standards.1 The responsibilities of SJWC and the City, as the lessee and lessor respectively, are available for review in the 1997 Agreement for Lease of Real Property (Water System) (“Lease”) (Attachment B). Water rates and charges proposed for privately owned water systems - such as those owned and operated by California Water Service Company or SJWC, are regulated by the California Public Utilities Commission (“CPUC”). Rates charged for service for the Cupertino Municipal Water System are not subject to CPUC regulation. Under the Lease, SJWC shall propose to City reasonable rates and charges that SJWC will charge for water service to be delivered to the customers served by the Cupertino Municipal Water System. After receipt of a SJWC request for an increase in rates, the City either approves or denies the increase or takes no action at all. The City may not unreasonably withhold approval of the increase in rates requested by SJWC. In the past, SJWC rate increases have occurred without the City taking action and have been equal to the charges that SJWC sets to its own customers where SJWC owns and operates the water system. In response to a SJWC requested increase in operation and maintenance costs in 2016, the City took action by reviewing and finding reasonable an 8.6% increase to water rates and charges at a September 6, 2016 public hearing. For 2017, SJWC has requested an increase of 3.83% for operation and maintenance costs. As in the past, the requested rate increase is equal to the charges that the CPUC approved SJWC to impose on customers in its own water system. This approach of allowing parallel increases worked efficiently in the past for two reasons. First the CPUC subjects any proposed rate increase by SJWC to a level of scrutiny and review that the City would have difficulty replicating; since SJWC is a Class A water utility its major rate applications are reviewed by a team of accountants, engineers and attorneys in the CPUC’s Office of Ratepayer Advocates, a statutorily2 created staff division charged with protecting ratepayer interests. The second reason is the average annual rate increase authorized by the CPUC through 2016 had been similar to other neighboring area (CPUC regulated and non-regulated) water related increases. 1 SJWC provides potable water service to over one million customers in the greater San Jose area. The water system leased to SJWC includes approximately 4100 Cupertino customers. 2 Section 309.5(a) of the Public Utilities Code provides that: There is within the commission an independent Office of Ratepayer Advocates to represent and advocate on behalf of the interests of public utility customers and subscribers within the jurisdiction of the commission. The goal of the office shall be to obtain the lowest possible rate for service consistent with reliable and safe service levels. For revenue allocation and rate design matters, the office shall primarily consider the interests of residential and small commercial customers. 51 While the CPUC process has remained the same, a variety of factors, including a growing disparity in the rates compared to neighboring areas, possibly related to increases arising from the past four year drought, contribute to staff’s recommendation that the Council obtain more information about the relevant cost (repair, maintenance, operation) and relevant revenue data specific to the customers served by the Cupertino Municipal Water System before it make a determination of the reasonableness of the requested increase. Analysis In determining if the 3.83% increase in water rates and charges for increased costs of operation and maintenance requested by SJWC for 2017 is reasonable, the City should consider all relevant information. This information was initially identified as: (a) the rate setting process and findings of the CPUC; and (b) the comparable water rates of similar nearby municipalities; and (c) stakeholder and public input. In light of what that information revealed, staff believes the City also needs cost (repair, maintenance, operation) and revenue data specific to the customers served by the Cupertino Municipal Water System to make its reasonableness determination. The CPUC Process and Findings The CPUC review and authorization process applies to all California investor-owned water utility companies. The purpose of the process is to ensure that each regulated utility delivers clean, safe, and reliable water to their customers at reasonable rates. Rate and revenue requirement requests received by the CPUC are categorized one of two ways. The first is referred to as a general rate case (GRC) increase request wherein an operator of a water system is required to submit to the CPUC a three-year look ahead. In this three-year look ahead, water utilities identify costs other than pass through that are either occurring or anticipated to occur within a subsequent three-year time period. Costs due to operation, maintenance and needed physical improvements are typically included in GRC requests. Due to the often complex nature of the costs requested by the water utility, the review and authorization process of GRC requests by the CPUC are lengthy in time and process. For this reason, GRC requests are typically submitted to the CPUC by the water retailer up to 1-year in advance. This allows the CPUC staff the opportunity to evaluate costs and to consider customer input at public hearings well in advance of the proposed rates being authorized and implemented to the customer. For the most recent GRC submitted by SJWC to the CPUC in January 2015 (for the 3-year period beginning January 2016 through December 2018) the review and authorization process was not completed until June 2016. When rate and revenue requirements requests are pass-through in nature, water utilities submit to the CPUC an Advice Letter. Multiple advice letters may be submitted in any 52 one year. Unlike the costs that may be included by private water utilities in a GRC application, advice letter rate increases are generally authorized by the CPUC in less time and by less process because they are increases in costs not controlled by the water utility. Examples of pass through costs include increased wholesale water costs, increased electrical costs and surcharges due to drought conditions. Per the provisions of the agreement between the City and SJWC, previous pass through expenses to customers served by the Cupertino Municipal Water System have occurred without the City taking action and have been equal to the charges that SJWC sets to its own customers where SJWC owns and operates the water system. For every GRC request and advice letter request4 submitted, the Office of Ratepayer Advocates (ORA) scrutinizes the costs of each large water company service and then makes recommendations to the CPUC regarding the merits of each requested change in cost. The ORA, in completing their work and achieving their goal of obtaining the lowest possible rate for service consistent with reliable and safe service levels, primarily considers the interests of residential and small commercial customers when making their recommendation. On June 9, 2016, upon consideration of a significant amount of evidence submitted in support of the SJWC rate increase and various public hearings, the CPUC issued its final decision (http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M163/K202/163202231.pdf) for the 3-year period beginning January 2016 through December 2018. CPUC authorization included a 2016 increase of 8.6% retroactive to January 1, 2016, 3.11% increase for 2017 and a 5.36% increase for 2018. On November 15, 2016, SJWC filed Advice Letter No. 498 with the CPUC requesting an adjustment from the approved 3.11% to 3.83% for water rates and charges for 2017 (Attachment C). The CPUC authorized this amount on December 19, 2016 (Attachment D). On September 22, 2016 (prior to the CPUC authorization for 2017), SJWC submitted a written rate increase estimate for 2017 (Attachment E). The CPUC has not yet authorized a rate increase for 2018. Because the requested increase for Cupertino Municipal Water System customers is the same as those served directly by SJWC, staff has reviewed the documentation submitted to the CPUC in support of the request as well as the materials prepared by the CPUC/ORA in establishing the rate. Comparison with Other Water Rates Water rates of other cities and water agencies within Santa Clara County are shown in the table below. 53 City / Water Agency Current Monthly Bill Increase Authorized / (Proposed) Proposed Monthly Bill California Water Service Co. / Los Altos) $85.291 SJWC Owned $93.96 Cupertino System leased to SJWC $90.26 (3.83 %) $93.962 Sunnyvale $76.563 Mountain View $104.484 Santa Clara $88.555 Note: For water usage of 15 hundred cubic feet (11,220 gallons) per month with a 5/8 x¾-inch meter. Additional pass thru charges may not be included. 1 https://www.calwater.com/docs/rates/rates_tariffs/las/20170101-Residential_Metered_Service_LAS.pdf 2 Retroactive to January 2017. Actual increase varies by level of service, customer class and meter charges. 3 http://sunnyvale.ca.gov/Portals/0/Sunnyvale/FIN/FY-2016-17-Utility-Rate-Notice.pdf 4 http://www.mountainview.gov/civicax/filebank/blobdload.aspx?BlobID=19903 5 http://santaclaraca.gov/government/departments/water-sewer-utilities/water-sewer-and-recycled-water-rates/water-rates The increased water rates and charges proposed by SJWC are in most cases higher than comparable agencies and service providers. Stakeholder and Public Input During the week of January 2nd, approximately 4500 written notices were mailed via U.S. mail to customers and property owners served by the Cupertino Municipal Water System. The City also prepared a Frequently Asked Questions page for its website to help inform the public about this topic 4.2At the writing of this report, 20 emails and two phone calls have been received by staff in response. The notice and log of correspondence is included in Attachment F. A supplemental memo will be submitted to City Council prior to the February 21st public hearing to report on any additional public comments received. To date, while there has been some concern expressed about the increase, the vast majority of customers have not expressed opposition to the request. Staff Recommendation Staff has considered the exhaustive CPUC process that is required of SJWC, similar rates at comparable agencies and the public input received to date. With comparable agency rates being on average less than the proposed rates and charges, more information from SJWC specific to the Cupertino Municipal System is needed. Specifically, costs (repair, maintenance, operation) and revenues are needed to determine if the rate increase request is reasonable. 4Available online at http://www.cupertino.org/index.aspx?page=26&recordid=1728&returnURL=%2findex.aspx 54 SJWC’s position has been that the CPUC’s approval of the GRC is substantial if not conclusive evidence that its rate increase is reasonable for the leased system. That may be the case for SJWC system as a whole, however, staff does not believe that is sufficient evidence that the rate increase is justified to support the leased system in isolation and that operations, maintenance and repair data specific to the leased system is required for the City to be able to concluded the reasonableness of the proposed rate increase. If the determination of reasonableness is postponed, staff will coordinate with SJWC to receive the information as soon as possible. Once received, additional time will be needed to validate the information and determine next steps that may include the noticing of a future public hearing. Per the provisions of the lease agreement, if it is later determined that the SJWC requested rate increase is reasonable, then SJWC may request that water rates and charges be adjusted to subsequently recover from customers over a reasonable period of time such amounts as are necessary to place SJWC in the same position it would have been had the rates been in effect January 1, 2017. Future Rate Changes If SJWC continues to seek parallel rate increases based on CPUC approvals, the City should expect to see several other rate adjustment requests in the near future. For increases that are considered a pass-through expense that impact or benefit the leased system, SJWC will simply provide the City notice of the change and no public hearing will be conducted. Other rate adjustments will be evaluated for reasonableness similar to the recommendation of this report and per the provisions of the lease agreement. Fiscal Impact Per the provisions of the agreement between the City and SJWC, all monies for services rendered by SJWC are the property of SJWC. Accordingly, there is no fiscal impact to the City regarding a change in rates to customers of the Cupertino Municipal water system. ____________________________________ Prepared by: Roger Lee, Assistant Director of Public Work Reviewed by: Timm Borden, Director of Public Works Approved for Submission by: David Brandt, City Manager Attachments: A - Water Boundary Map B - 1997 Agreement for the Lease of Real Property-Water System 55 C – November 15, 2016 SJWC Advice Letter No. 498 filing to the CPUC for a 3.83% increase for 2017 D – December 19, 2016 CPUC authorization of Advice Letter No. 498 E – September 22, 2016 SJWC request for 2017 water rate increases F - Notice to Customers Served by the Cupertino Municipal Water System and Correspondence Log 56 ST58 [\^082 PALM AVE VOSS AVE OR A N G E A V E ALD ERBRO OK LN PHI L LN LORNE WAY E ESTATE S DR WHEATON DR JOHNSON AVE V IAH U ERTA PROSPECT RD LAZANEO DR SCENIC B LVD CHE LMS F ORD DR CA S T I N E A V E PHAR LAPDR TO R R E A V E N PORTAL AVE S A NJUAN RD FI N C H A V E RAE LN TIP T OE LN S E P T E M B E R DR CHIALALN TILSO N AVE LA MAR DR VI S T A D R TERRACE DR FA R A L L O N E D R LONDONDERRY DR CA L V E R T D R SHELLY DR SCOFIELD DR E R I N WAY PERIMET ER RD RICHWOOD D R KIRWIN LN CA N Y O N OAK WAY ALPIN E D R BY R N E A V E WI N D S O R S T G ASC OIGNEDR F E S TIVAL D R IM P E R I A L A V E LARK LN VALLCO PKWY BARK LN BLUE HILL DR DE N I S O N A V E CO L B Y A V E O A K V A L LEY RD VAI AV E JU D Y A V E BR E T A V E ST E R N A V E LA R R Y W A Y RA N D Y L N 280FWYRAMPXXX S EV EN SP R INGS D R AINS W ORTH DR LI N N E T L N BE A R D O N D R RED W OOD DR MARY A V E REGNARTRD STER L I N G BLVD MA N N D R WU N D E R L I C H D R VIAE SPL EN D O R L I N D Y LN CRIST O REYDR SANTA TERESADR COLUMBUS AVE HIGHLAND S CIR HERONAVE C R E STON D R PO P P Y W A Y D EODAR A D R KE NT W O ODAVE STAFFOR D D R N O V E M B E R D R LA N C E R D R WILKINSONAVE STOKES A V E I N FINITEL OO P H Y DEAVE BA N D L E Y D R PO RTO L ARD P ARK W O OD D R DUMAS DR MARIALN S BLANEY AVE FO O T H I L L B L V D BOLLINGER RD STEVENS CREEK BLVD MCCLELLAN RD S TANTAU AVE PRUNERIDGEAVE RAINBOW DR BL A N E Y A V E S TEVE N S C A N Y O N R D BU B B R D S S T E L L I N G R D N BLANEY AVE N S T E L L I N G R D NTANTAU AVE N F O O T H I LL BLVD P ROSPECT RD HOMESTEAD RD N DE ANZA BLVD STEVENS CREEK BLVD S DE ANZA BLVD N WOLFE RD CUPERTINO WATER[Leased to San Jose Water until 2022] CALIFORNIA WATERSERVICE SAN JOSE WATERSERVICE City of CupertinoWater Service Areas É00.5 10.25 Miles Attachment B 57 Attachment C 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 September 22, 2016 David Brandt City Manager City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 RE: Request for Water Rate Increase for Cupertino Municipal Water System Dear Mr. Brandt: In accordance with the provisions in the Agreement for Lease of Real Property (Water System) between the City of Cupertino (City) and SJWC executed on October 1, 1997, I write to formally seek the City’s approval to implement water rate increases to customers of the Water System in 2017. The California Public Utilities Commission’s (CPUC) Final Decision for SJWC’s 2015 General Rate Case (GRC) Application granted rate increases for 2016-2018. Per the decision, SJWC will file an Advice Letter with the CPUC in late October or early November 2016 requesting the implementation of the GRC 2017 rate increase, as outlined by the CPUC: “For escalation years 2017 and 2018, San Jose Water Company shall file Tier 2 Advice Letters in conformance with General Order 96-B proposing new revenue requirements and corresponding revised tariff schedules. The filing shall include rate procedures set forth in the Commission’s Rate Case Plan (Decision 07-05-062) for Class A Water Utilities and shall include appropriate supporting workpapers. The revised tariff schedules shall take effect no earlier than January 1, 2017 and January 1, 2018, respectively, and shall apply to service rendered on and after their effective dates. The proposed revisions to revenue requirements and rates shall be reviewed by the Commission’s Division of Water and Audits.” We anticipate the CPUC’s approval in December 2016 with new rates effective January 1, 2017. The 2017 rate increase is anticipated to be approximately 4.0%. For the average customer using 15 units per month, the monthly water bill will increase by approximately $3.90 per month or $0.13 per day. 175 Mr. David Brandt September 22, 2016 Page 2 Per your request, additional estimated increases in 2017 include:  Hostetter Ratebase Offset (Q1 of 2017): 0.1% increase (approximately $0.10 per month for average customer)  Montevina Ratebase Offset (Q1 or Q2 of 2017): 2.0% increase (approximately $2.00 per month for average customer)  SCVWD Wholesale Water Rate Offset (July 2017): 8.0% increase (approximately $8.20 per month for average customer)  Franciscan Ratebase Offset (Q4 of 2017): 0.10% increase (approximately $0.15 per month for average customer)  Miguelito Ratebase Offset (Q4 of 2017): 0.15% increase (approximately $0.20 per month for average customer) Please note that the magnitude and timing of the above increases are only estimates. We continue to appreciate the opportunity to provide safe, high quality and reliable water service to the City’s residents and look forward to continuing our partnership. If you have any questions, please do not hesitate to contact John Tang at 408-279- 7933 or john.tang@sjwater.com. Sincerely, Palle Jensen Senior Vice President of Regulatory Affairs c: T. Borden, City of Cupertino R. Lee, City of Cupertino 176 City Hall 10300 Torre Avenue Cupertino, CA 95014-3255 PH: (408) 777-3354 FX: (408) 777-3333 PUBLIC WORKS DEPARTMENT January 6, 2017 Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx This letter provides information on a proposed increase in rates for water service fees of up to 3.83% effective March 3, 2017 (retroactive to January 1, 2017). The enclosed notice and fee schedule are also posted online at www.cupertino.org/waterrates. You are receiving this packet because you are an individual responsible for paying water bills and/or a record owner of a property with a metered connection to the Cupertino Municipal Water System with service provided by San Jose Water Company; you may receive multiple copies, as a packet is sent for each service address. The City Council of the City of Cupertino will hold a public hearing on the proposed increase in rates for water service fees on: Tuesday, February 21, 2017 at 6:45 p.m. Cupertino Community Hall Council Chambers 10300 Torre Ave. Cupertino, CA 95014 If you wish to oppose or comment on the proposed rate increase for water service fees for consideration by the City Council, you may attend the City Council meeting and provide input during the public hearing when the item is called. You may also submit written comments in opposition or support to the Office of the City Clerk in the form of a letter, fax, or e-mail. Written comments must be received by 6:30 p.m. on February 21, 2017 to be considered. Mail(or hand-deliver) to Fax to Phone to E-mail to Water Rate Service Fee Increase City of Cupertino – Office of the City Clerk 10300 Torre Avenue Cupertino, CA 95014 (408)777-3333 Subject line: Water Rate Service Fee Increase Public Works Department (408)777-3354 WaterRates@cupertino.org By 6:30 p.m. on 2/21/17 Attachment F - Public Notices 177 City Hall 10300 Torre Avenue Cupertino, CA 95014-3255 PH: (408) 777-3354 FX: (408) 777-3333 PUBLIC WORKS DEPARTMENT NOTICE OF PUBLIC HEARING: PROPOSED WATER RATE SERVICE FEE INCREASE At the Council meeting on February 21, 2017, at 6:45 p.m. or as soon thereafter as may be heard, the Cupertino City Council will conduct a public hearing regarding proposed increase in rates of water service fees of up to 3.83% proposed to be effective on March 3, 2017, and is retroactive to January 1, 2017. The water service fee for the period of January 1 through March 2, 2017, will be recovered via surcharge on water bills received after March 3, 2017. This surcharge is equivalent to a 3.83% increase had it been implemented January 1, 2017. These rates and charges are administered by San Jose Water Company as the lessee of the system. Rates apply to residential, commercial, institutional, and industrial customers. Answers to frequently asked questions and a history of prior water rate increases may be viewed at www.cupertino/waterrates. Reason for the Proposed Rate Increase for Water Service Fees The Cupertino Municipal Water System purchases, treats, and delivers an average of 2.9 million gallons of potable water per day to residences and businesses. The system includes pipelines, pump stations, fire hydrants, storage tanks, wells, and water meters as well as facilities and processes required to comply with all state and federal drinking water standards. Water rate service fee are set at a level to generate enough revenue to cover the costs of operating and maintaining this system. San Jose Water Company (SJWC) is a Class A water company subject to the jurisdiction of the State of California Public Utilities Commission (CPUC). As the Lessee of a City of Cupertino (City) owned water system, SJWC is also subject to the provisions contained within the Agreement for Lease of Real Property (Water System) between the City and SJWC. Per this agreement, the City’s approval of rates shall not be unreasonably withheld. In determining reasonableness, the City shall consider all relevant information, including the CPUC approved rates. Pass through rate adjustments for changes in wholesale costs – such as changes due to increases or decreases in water and power (as well as certain unanticipated changes in volumes) are allowed to be automatically passed through without prior City approval, so long as it is done in a manner substantially similar to that permitted by the CPUC. The proposed rate increase for water service fees is needed for increased costs of operation and is in response to a December 19, 2016 CPUC authorization to grant SJWC a 3.83% increase in rates for 2017. The supporting document links of the proposed change in rates for water service fees are as follows: 178 Application of San Jose Water Company for Authority to Increase Rates for Water Service to the CPUC - http://sjwater.s3.amazonaws.com/files/documents/2015_GRC_Application.PDF CPUC Decision 16-06-004 regarding Revenue Requirements for San Jose Water Company – http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M163/K202/163202231.pdf San Jose Water Company request for 3.83% increase to CPUC – www.cupertino.org/waterrates-Attachment-1 December 19, 2016 CPUC Authorization of 3.83% to San Jose Water Company - www.cupertino.org/waterrates-Attachment-2 Billing Impacts The proposed increase of 3.83% to potable water rates and charges are shown on Tables 1, 2, and 3 below. If the City Council approves the proposed increase, the impact to your bill can be calculated using the proposed meter rates and quantity charges as shown in the sample calculations below. Utility tax and offset surcharges¹ are not included in the sample calculations and your actual bill will be different. Specific questions can be directed to San Jose Water by calling 408-279- 7900 or visiting www.sjwater.com. Sample Water Bill Calculations Comparing Current and Proposed Rates Water Bill Amount (without utility tax and/or offset surcharge) = Meter Charge + (Quantity x Rate per HCF) Residential Example (using Tables 1 and 2): Residential charges use a three-tiered rate structure, with a higher rate applying as water use exceeds tier breakpoints of 3 HCF and 18 HCF. In the example below, a resident using 15 HCF will need to calculate the sample bill using two of the tiered rates: Monthly Usage: 15 HCF Meter Size: 3/4-inch Current Rate: $23.98 + (3 HCF x $4.0581) + (12 HCF x $4.5090) = $90.26 Proposed Rate: $25.02 + (3 HCF x $4.2210) + (12 HCF x $4.6900) = $93.96 Non-Residential Example (using Tables 1 and 3): Monthly Usage: 100 HCF Meter Size: 2-inch Current Rate: $127.87 + (100 HCF x $4.5090) = $578.77 Proposed Rate: $133.41 + (100 HCF x $4.6900) = $602.41 HCF = hundred cubic feet; 1 HCF = 748 gallons _______________________________________ ¹Offset surcharge (due to increase in wholesale water costs) is currently $.4229 per HCF consumed 179 Table 1: All Customers Monthly Meter Charge MONTHLY METER CHARGE (based on meter size) Meter Size Current Charges Proposed Charges 5/8-inch $23.98 $25.02 3/4-inch $23.98 $25.02 1-inch $39.94 $41.66 1.5-inch $79.91 $83.36 2-inch $127.87 $133.41 3-inch $239.75 $250.12 4-inch $399.58 $416.87 6-inch $799.15 $833.73 8-inch $1278.65 $1333.98 10-inch $1838.07 $1917.62 Table 2: Residential Monthly Quantity Charge (does not include offset surcharge of $.4229 per HCF) Tier Current Charges per HCF Proposed Charges per HCF Tier 1: 0 to 3 HCF $4.0581 $4.2210 Tier 2: 3+ to 18 HCF $4.5090 $4.6900 Tier 3: >18 HCF $4.9599 $5.1590 Example Monthly Water Bill $90.26 $93.96 Table 3: Non-Residential Monthly Quantity Charge (including water production offset surcharge) 2016-17 Current Charges per HCF 2017-18 Proposed Charges per HCF Quantity Rates $4.5090 $4.6900 ADDITIONAL INFORMATION Additional information about the rate increase, including Frequently Asked Questions (FAQs), the Lease Agreement between the City and San Jose Water Company, and Water Service Area Maps can be found online at http://www.cupertino.org/waterrates. Other supporting information from SJWC, including links to FAQ’s may be found at: https://www.sjwater.com/for_your_home/home_customer_care/rates_regulations/general_rate_information 180 Attachment F - Water Rate Increase Comments Comments Response Customer #1 John Kolski DATE: 1/9/17 TIME: 10:51 am SIR I HAVE READ IT ALL AND ALL THE ATTACHMENTS. AND THIS RATE INCREASE IS APPLIED FOR TO THE PUC, NOT CUPERTINO. SO WHERE IS THE APPLICATION TO THE CITY OF CUPERTINO AND THE DETAILS OF THE PROPOSED INCREASE OTHER THAN WATER AND POWER RATE INCREASES? I SUBMIT THAT THIS IS NOT IN COMPLIANCE WITH THE LEASE AGREEMENT IN ANY WAY AND THAT THERE IS NOT A APPLICATION FROM SJW FOR A RATE INCREASE FOR APPROVAL OR DISAPPROVAL AT A CITY COUNCIL MEETING. THE CITY COUNCIL HAS NO AUTHORITY TO VOTE ON THIS PER THE LEASE AGREEMENT AND SJW IS AGAIN IN NON COMPLIANCE OF THE LEASE AGREEMENT. ANY APPROVAL OF A RATE INCREASE BY THE PUC DOES NOT HAVE ANY AUTHORITY IN THE CASE OF THE CUPERTINO OWNED WATER SYSTEM, SINCE IT IS A MUNICIPAL UTILITY SYSTEM. THIS AGENDA ITEM MUST BE CANCELLED FROM THE AGENDA UNTIL A VALID APPLICATION IS SUBMITTED BY SJW. Customer #1 John Kolski Email message dated 1/9/17, 10:54 pm ROGER THIS LETTER OF APPROVAL FROM THE PUC MEANS NOTHING IN CUPERTINO. THE PUC HAS NO AUTHORITY OVER A MUNICIPAL WATER SYSTEM OWNED BY A INCORPORATED CITY. (Exhibit 1) Customer #2 Email message dated 1/12/17, 8:22 pm To Whom It May Concern, I respectfully request that the Cupertino City Council vote No to the San Jose Water Company rate increase. If the City Council does not vote No to this, I will vote No on the council members re-election. San Jose Water Company is already extremely profitable and has remained so throughout the drought. They have been taking more of my money throughout the drought. 181 In June of 2015 I spent over $1000 in materials and 30 hours of my own time to reduce the water needs on my property. Comparing the full year of 2016 (with water savings in place) and the full year of 2014 (before I implemented the water savings), I reduced my water consumption by 34% from 377CCF to 247CCF. The reward for all of this expense and manual labor? 38% more money given to San Jose Water company! The 2014 bill total was $1,709.99 and 2016 was $2,359.90. And now they want more money? I don't think so. Additionally they (or some other slimey outfit in their name) keeps bombarding our mailbox with water line insurance offers. This is a total waste of trees, not to mention water need in the paper making process. I understand the risks, I prefer to self insure myself on this. I can't make this barrage of offers stop. Please don't give in to these unjustified increases from this monopolistic company. Let them get their own house in order to increase profits. Thank You Customer #3 Vicky Ho Email message dated 1/13/17; 1:07 pm We oppose this fee increase. Seems that rates increases when we do not have enough rain and increases when we have enough rain. Customer #4 Email message dated 1/13/17; 2:30 pm Office of the City Clerk, We like to voice our opposition to the proposed increase of the water rate by 3.83%. Our water rate has been increased continually over the last several years without good justification. We have been saving water over the same time period because of the drought and are still paying more for the reduced water amount we are using. As retired people we do not get increases in our social security payments etc. but some costs such as the water rates are going up again and again. The increase is way too high and also making the increase retroactive should not be allowed. Please vote against this proposed increase. Customer #6 Yu Jen Wang Jessica Cheng Email message dated 1/13/17; 10:32 pm Owners of 10140 Byrne Ave Cupertino oppose the 3.83% water rate increase unless City provides enough reasons to justify this proposal. The letter dated 1/6/2017 sent by the Public Work Department does not provide sufficient reasons to justify this rate increase. 182 Customer #7 Email message dated 1/14/17; 3:19 pm I am writing to advise that I am against the proposed increase. Customer #8 Randy Hylkema Email message dated 1/17/17; 12:51 pm In your letter to Cupertino residents you solicited comments about the proposed 3.8% 2017 increases. Of course the water district and SJW have submitted arguments that this increase is reasonable and necessary. But please keep in mind the steep increases of recent years. I think I am a fairly typical homeowner, and in our case: Total water charges increased from 2013 to 2016 by 15% while in those three years our annual water usage decreased by 36%. As a result our per unit total cost for water increased by 80%! So please scrutinize the proposal to see if this 3.8% is truly necessary and justified. Regards Customer #1 John Kolski Email message dated 1/17/17; 1:41 pm PER THE LEASE AGREEMENT THE CITY COUNCIL CAN APPROVE OR DISAPPROVE A RATE INCREASE BASED ON RECEIVING A RATE INCREASE APPLICATION FROM SJW THAT IS VALID. THE CURRENT APPLICATION IS NOT SUBMITTED AS A COMPLETE AND VALID APPLICATION FOR A RATE INCREASE FOR THIS SERVICE AREA OF THE LEASE. THIS SERVICE AREA IS NOT REGULATED BY THE PUC AND ANY RATE INCREASE APPROVED, PRE-APPROVED OR APPROVED WITH EFFECTIVE DATES BY THE PUC ARE NOT BINDING IN THIS MUNICIPAL WATER UTILITY DISTRICT BECAUSE IT IS OWNED BY THE CITY AND ONLY LEASED BY SJW. ANY RATE INCREASE SAID TO BE RETROACTIVE IS ALSO NOT BINDING. THE CITY COUNCIL IS THE GOVERNING BODY FOR APPROVAL OF A VALID RATE INCREASE APPLICATION BY SJW AT THE TIME OF AN APPLICATION SUBMITTAL. CONTINUING, PER THE LEASE AGREEMENT THE COUNCIL CAN CONSIDER WHAT RATES ARE IN SURROUNDING AREA BUT IS NOT IN ANY WAY REQUIRED TO ADOPT THOSE RATES. RATE INCREASES FOR WATER ONLY AND FOR POWER CAN BE CONSIDERED BUT THIS CURRENT INCOMPLETE RATE INCREASE APPLICATION DOES NOT DETAIL OUT WHAT THE INCREASES IN FOR 183 AND SEEMS TO INCLUDE INCREASES FOR OPERATIONAL COSTS OUTSIDE THIS SERVICE AREA. SJW CANNOT CHARGE FOR THE COSTS OF BRINGING WATER TO THIS SERVICE AREAS BOUNDARIES AND IF FACT SCVWD BRINGS THE WATER WE PAY FOR TO THE BOUNDARIES NOTR THRU ANY SJW OTHER SERVICE AREA SYSTEMS. ALSO IF THIS IS FOR A RATE INCREASE FOR WATER, WHICH WATER THAT IS BEING SUPPLIED TO US? THE IMPORTED WATER FROM SJW THAT THEY PAY FOR FROM SCVWD [AND WHAT DO THEY PAY FOR THE WATER?] OR THE WATER SJW GETS FROM THE CITY OWNED WELLS THAT THEY ONLY PAY A WELL TAX ON [AND WHAT IS THE WELL TAX COST?]? ANY PROPOSED RATE INCREASE FOR ANY OPERATIONAL COSTS HAVE TO BE DETAILED OUT AND ARE ONLY FOR WITHIN THIS SERVICE AREA. [EXAMPLES IN THE PUC APPLICATION; PUMP STATIONS IN LOS GATOS???] OUR IMPORTED WATER THAT WE PAY FOR DOES NOT COME FROM LOS GATOS AND THE CITY OWNED WELL ARE IN THIS SERVICE AREA. THIS WATER SYSTEM IS OWNED BY THE PEOPLE OF CUPERTINO AND BOTH THE CITY COUCIL OF CUPERTINO AND SJW ARE ACCOUNTABLE TO THE PEOPLE OF CUPERTINO FOR HOW IT IS RUN AND THE RATES WE PAY. TRANSPARENCY BY BOTH PARTIES WHO SIGNED THE LEASE IS MANDATORY. AT THIS TIME, AS IN THE PAST BOTH PARTIES ARE IN NON- COMPLIANCE OF THE LEASE AGREEMENT. BECAUSE THIS CURRENT APPLICATION FOR A RATE INCREASE IS NOT VALID THE CITY COUNCIL CAN NOT APPROVAL IT AS SUBMITTED. PLEASE MAKE SURE THIS IS IN THE CITY COUNCILS MEETING PACKAGE Customer #1 John Kolski Email message dated 1/17/17; 5:08 pm and letters or comments to the agenda item on the proposed water rate increase should be posted as they are received by the city at any time before the meeting so that residence can see other comments and prepare for the meeting, otherwise they only see the letters at the meeting. transparency! Email message dated 1/18/17, 6:51 am City of Cupertino I understand your request. The comments will be included with the staff report and available a week prior to the meeting. I will get back to you today about getting 184 the comments posted as they are received. A once a week update should be manageable. Customer #9 Anonymous Email message dated 1/17/17; 6:17 pm Dear Council.... I will not be able to attend the meeting but I would like a response to the following: - How is this 3.83% increase comparable to other municipalities within the SC county that is served by SJ Water? - Is this increase unique to this year or can we expect an increase each year going forward? - Does the new Apple facility impact this increase in rates? Thank you for your time and subsequent response. Email message dated 1/17/17; 6:17 pm City of Cupertino Thank you for your questions. Please find below responses to your questions. 1. The proposed 3.83% increase to rates of customers served by the municipal water system leased to San Jose Water Co. will, if authorized, be slightly less than the rate currently charged by California Water Service Company (CWSC). CWSC serves the City of Los Altos and about 1/3 of Cupertino . A comparison example of the two rates is in the “Water Rate Increase FAQ’s” document on the City’s website: http://www.cupertino.org /index.aspx?recordid=1728&page=2 6. Due to varying charges for meters and quantity points established by water retailers, it is challenging to make direct comparisons among the retailers. For example, the City of Santa Clara charges a flat $4.95 per hundred cubic feet of water consumed and a monthly charge of $14.30/mn for a ¾” meter. 2. Annual increases are likely. Please refer to this question and response in the FAQ document referenced. 185 3. The proposed increase is not related to the Apple facility. Customer #10 Rosa Li Email message dated 1/18/17; 3:35 pm City of Cupertino, I am strongly opposed to the proposed rate increase of 3.83%. Cupertino residents have already had several rate increases in the past few years. In light of the storm levels this month, there is no shortage of water in our city. Our family has taken every possible measure to conserve water, and do not feel like we should continue to pay for the inefficiency of others. Instead of a rate increase, we were expecting a rate decrease now that the water levels are back to normal. Please forward my opposition to whoever is proposing these rate increase. Thank you Email message dated 1/19/17; 12:17 pm San Jose Water Company Thank you for your feedback. Please know that San Jose Water Company does not declare drought shortages. We are responding to the drought mandates and targets from the Governor as well as the Santa Clara Valley Water District. Over the last few years, we have gone to great lengths to engage and inform our customers on the relationship between rates and conservation as well as the need to invest in our water system to ensure safe, high quality, and reliable water service. The investment issue is impacting utilities all over the US while the drought issue is more local to our state. More information can be found on our comprehensive drought page at https://www.sjwater.com/news/topic/com prehensive-drought-information. The Value of Water video contains an explanation on the rates-conservation nexus. If you have further questions, please don't hesitate to contact me. Email message dated 1/20/17; 6:21 am San Jose Water Company Please see below links to information that further illustrate the rates-conservation nexus as well as the need to invest in our water systems. I hope you find them informative. Best, John 186 http://www.eastbaytimes.com/2017/01/18/r esidents-blast-25-percent-water-rate-hike- proposal/ http://news.wef.org/u-s-epa-survey- reveals-need-for-drinking-water- infrastructure-investment/ http://www.infrastructurereportcard.org/ water-infrastructure/ http://www.waterrf.org/Pages/Projects.asp x?PID=4617 Customer #1 John Kolski Email message dated 1/18/17; 4:18 pm ALL INCOMING COMMENTS SHOULD BE POSTED WHEN THEY ARRIVE IN FOR THE RESIDENCE TO READ AND NOT WAIT TO POST THEM TILL THE STAFF REPORT IS OUT, THATS TO LATE AND DOES NOT SHOW TRANSPARENCY BY THE CITY. Email message dated 1/18/17, 4:17 pm From City of Cupertino Will post comments less any personal info by close of business Friday. Will update each week. Customer #1 John Kolski Email message dated 1/18/17; 4:18 pm THATS GOOD ON MY THREE LEAVE MY LETTERS ON EACH WITH MY NAME TAKE OFF ANY OTHER STUFF INCLUDING SIGNATURE/SIGN- OFFS LINES AND MY E-MAIL ADDRESSES THAT WILL SHOW Customer #11 Henry Buffalow Email message dated 1/19/17; 12:12 pm I find the proposed increases to be ludicrous. First we are asked to cut water usage, then impose a penalty schedule for using more than allocated, then because of less income to SJ Water due to lesser use we now have a new proposed increase. Only thing is the water restriction should be eliminated very soon. So, greater water use in the horizon with higher rates means a surplus. Unfortunately the citizens will not receive a rebate. What is worse is unilaterally deciding to apply the new rates retroactive. What other private business can get away with that? Why are the citizens held accountable for inefficiencies of the water monopoly and local government. It is just wrong. Had the higher rates been in place at the right time customers would have had the opportunity to adjust their use, now they don’t. In my case I had a water leak that has now been fixed. I paid for the excess water usage, the repair and now I’ll be required to pay even more. It’s just wrong. Overall I’m not opposed to the increase only as that happens with all utilities, just the retroactive component. It’s just wrong. Customer #12 Email message dated 1/19/17; 3:46 pm 187 Yay it's raining! We all hope this keeps up of course. I would like to state that I hope that Cupertino is fighting for our share of the state's water allocation. I have been amazed every time I travel to Southern California. There does not appear to be any water crisis there!! There, all the lawns are green. Yes, completely green. In all my travels there I have yet to see a "think drought" sign anywhere. Why is it, I ask, that only our area seems to be subjected to these water saving measures? Further, when I compare water costs with relatives down in the LA area their water rates are much cheaper than ours. What is going on? And so I hope that Cupertino is standing up for our portion of CA water rights. We will do our part, but southern CA appears to be rather callously using up OUR water! No doubt we all hope this year will bring more rain. I hope that rates will adjust back DOWN quickly once water resources are replenished. Customer #13 Anonymous Email message dated 1/21/17; 6:39 am Does this rate increase apply to the facilities of St. Jude's Episcopal Church at Stelling & McClellan? Email message dated 1/21/17; 6:39 am City of Cupertino No, the St. Jude's Episcopal Church is not within the area served by the municipal water system. The church is served by a system owned and operated by San Jose Water Company (SJWC). Customers served by SJWC had their rates increased 3.83% effective January 1, 2017. The water service boundary map can be found at the City's website http://www.cupertino.org/index.aspx?reco rdid=1728&page=26 . Customer #14 Phone call dated 1/23/17 Rates too high already. Not practical. Above and beyond what should be expected. Phone conversation dated 1/23/17 City of Cupertino Customer #1 John Kolski Email message dated 1/23/17; 12:34 pm No letters yet on the site! http://www.cupertino.org/index.aspx?page=26&recordid=1728&returnURL=% 2findex.aspx%3fpage%3d1 Customer #1 John Kolski Email message dated 1/24/17; 11:23 am Thanks for getting the letters on the site But the county leaves the submitters 188 name on letters sent in and takes off all other personal information of the submitter. The council and residents should know who cares either way about out city and who knows the facts. I feel the names should be on them. I can't see any reason why they were taken off. The comments were sent in as public record. Customer #1 John Kolski Email message dated 1/24/17; 3:52 pm Difference Between Publicly and Investor-Owned Utilities http://www.energy.ca.gov/pou_reporting/background/difference_pou_iou.ht ml Customer #1 John Kolski Email message dated 1/24/17; 5:52 pm Statement, Questions and required answers from the city council Regarding the proposed water rate increase. Before a vote can be made When the city operated this city owed water system, it bought water f rom Scvwd which was and still is delivered to this service area in pipe from Scvwd the border of this service area. The city did not get the water thru any operations of SJW SJW now leases this service area and they get the same water from the same source at the same location. Not thru any of there operations in any of there other service areas. This city owned utility regulates the rates with rate payer approval The puc has no authority here. Only the city has regulatory responsibility over this water system. This city owned water system has no connection to SJW's other water service area they own SJW cannot say the puc approved the rate increase And only operation cost within this service area borders can apply to our rates or increases to them. SJW cannot charge the service area for anything but water costs and operational costs within this service area The rate payers must be shown all the operational records of this service are before the council meeting, including the cost of water SJW buys, SJW operational costs and improvement costs in order for a rate increase to even be considered by the city council And the rate paid in this service area has nothing to do with what other service areas are paying If SJW what a rare increase per the lease they have to put that application into 189 the city of cupertino and show details of what it is for, water and operation costs. Customer #1 John Kolski Email message dated 1/26/17; 4:23 pm http://cmua.org/wpcmua/wp- content/uploads/2015/02/Briefing_Background.pdf (Exhibit 2) Customer #1 John Kolski Email message dated 1/26/17; 6:55 pm Question and required answer please before you the city council can vote on the proposed rate increase by SJW As a rate payer in this city owned water system in which you are the regulator of. What has SJW done per the lease agreement in maintenance of and upgrades/replacements to in this service area that the rate payers pay for in rates they pay? Email message dated 1/27/17; 10:12 am What is this e-mail? A joke. I don't accept this response at all. The city is the regulator of our water system and hare responsible to the rate payers not SJW. I asked the question to the city not SJW. I EXPECT THE ANSWER FROM THE CITY Email message dated 1/27/17; 10:04 am Specific questions can be directed to San Jose Water by calling 408-279- 7900 or visiting www.sjwater.com. Customer #1 John Kolski Email message dated 1/27/17; 8:02 am Read the article. And tangs statement. It is the cites responsibility to the rate payers as regulator to make sure he does what he said The Mercury News 01/27/2017 - Page B01 Winter storms have made ‘a significant dent’ Half of state is drought-free By Paul Rogers progers@bayareanewsgroup.com Hammered with record rainstorms and blizzards, nearly half of California is no longer in a drought, and the rest of the state saw dramatic improvement over the past week, federal scientists reported Thursday. Overall, 49 percent of the state is now drought free, the highest level since April 2013, according to the U.S. Drought Monitor, a weekly study by the National Oceanic and Atmospheric Administration, the U.S. Department of Agriculture and the University of Nebraska, Lincoln. A year ago, only 5 percent of the state was classified as not in drought conditions. 190 Of importance: Just 2 percent of California remains in "exceptional drought," down from 24 percent a week ago, and 64 percent at this time last year. "We’re finally seeing enough precipitation falling to make a significant dent," said Richard Tinker, a meteorologist with the National Weather Service who compiled the report. "These are tangible improvements. There’s a difference between above-normal and ridiculous, which is what you’ve seen recently." The entire northern half of California, from San Francisco Bay to the Oregon border, is now classified as drought-free. In Thursday’s report, 6.4 million more acres — an area 20 times the city of Los Angeles, and much of it in the Sierra Nevada south of Lake Tahoe — was declared drought free this week. Large sections of Southern California and the San Joaquin Valley that have been the hardest hit during the five-year disaster and the slowest to emerge also saw drought conditions ease, although not eliminated, according to the report. The remarkable turnaround has been driven by a blitzkrieg of powerful winter storms rolling in off the Pacific. Over the past week, Los Angeles, Santa Barbara and Orange counties received 5 inches of rain — their wettest week in seven years — sparking flooding, mudslides and power outages. The Bay Area is seeing its wettest January since 1998, according to the National Weather Service, with many cities at triple their normal monthly precipitation. Through Thursday morning, Big Sur Station had received 43.41 inches of rain since Oct. 1, more than the area’s entire yearly average rainfall of 41.91 inches. Similarly, Yosemite National Park had received 44.07 inches since Oct. 1, more than its annual yearly average of 36.73 inches, with eight months still left in the rain year. In the Sierra Nevada, a new round of blizzards closed highways and piled up immense amounts of snow. Kirkwood ski resort near Lake Tahoe on Wednesday reported receiving 9 feet of new snow over the past week, while Mammoth Mountain said it had been smothered in 20 feet since New Year’s Day, breaking records for the snowiest month there on record. Overall, the statewide Sierra snowpack — which provides one-third of California’s water supply — was at 189 percent of its historic average on Thursday. More importantly, it is already at 107 percent of the April 1 historic average, considered the key annual measurement, with two months to go. State officials continued Thursday to urge caution. "All this rain and snowfall will undoubtedly have a positive effect on the drought, but we just don’t know yet for certain what that total impact will be," 191 said Doug Carlson, a spokesman for the California Department of Water Resources. "Something we do know is that groundwater takes a long time to replenish once it has been depleted, and it has been severely depleted in some areas of the Central Valley." With major reservoirs around California nearly full or already spilling — the two largest in California, Shasta and Oroville, are both 81 percent full, and Hetch Hetchy is 88 percent full — Silicon Valley’s largest water provider on Tuesday night loosened some of its drought rules. The board of the Santa Clara Valley Water District, based in San Jose, voted to continue asking the public to conserve water by 20 percent compared to 2013 levels. But with its 10 reservoirs in Santa Clara County at 161 percent of the historic average for January and its groundwater levels steadily recovering, the board dropped its call for the 13 cities and private water companies that it supplies to use mandatory rules to meet the drought target. Instead, the district said that voluntary rules are acceptable now, and it no longer expects cities and water companies in Santa Clara County, such as San Jose Water Company, to impose drought surcharges or penalties on customers who use large amounts of water, given the improving conditions. John Tang, a spokesman for San Jose Water Company, said Thursday that the company is drafting a request to the state Public Utilities Commission to drop its drought surcharge program and it expects approval in a matter of weeks, rather than months. Meanwhile, the administration of Gov. Jerry Brown, who declared a statewide drought emergency in January 2014, has said it will likely wait until April to decide whether to lift that declaration or amend it to apply only to the driest parts of the state. Tinker, in writing this week’s Drought Monitor, noted that despite the deluges of January, some parts of California, such as the east side of the San Joaquin Valley, continue to have badly depleted groundwater. "The deepest wells may not respond to the recent inundation for many more months," he noted. Each week, the scientists who write the drought monitor assign six levels of drought intensity: no drought, abnormally dry, moderate drought, severe drought, extreme drought and exceptional drought. 192 They analyze soil moisture, stream levels, rainfall totals, snowpack, reservoir levels and other measurements in all 50 states, along with reported observations from more than 350 expert contributors around the country. Much of California will receive a break from the rain through the weekend. The Bay Area forecast calls for sunny skies and temperatures in the 50s and 60s every day until Tuesday, with more storms likely Wednesday through Friday. Contact Paul Rogers at 408-920-5045. Winter storms have made for coursing water around California, with new calculations showing only 2 percent of California remains in "exceptional drought." The Bay Area, including Orinda (pictured), is seeing its wettest January since 1998. SUSAN TRIPP POLLARD/STAFF Customer #1 John Kolski Email message dated 1/27/17; 8:07 am John Tang, a spokesman for San Jose Water Company, said Thursday that the company is drafting a request to the state Public Utilities Commission to drop its drought surcharge program and it expects approval in a matter of weeks, rather than months. The city council can vote to drop ours now. The puc has no authority here Customer #1 Email message dated 1/27/17; 8:14 am 193 John Kolski ..asking why the article last week they wrote did not state the facts honestly and miss led the rate payers of cupertino, and I got no response Did the city give them all the facts of our city owned water system, and who regulates it and what the increase is for? Customer #1 John Kolski Email message dated 1/27/17; 8:57 am So let's put the facts on the table. If the city still was operating this city owned water system as it did before it leased it to SJW, the city would not be dealing with whether or nor the puc is involved like SJW wants the rate payers here to believe and our rates would only be for water we purchased directly from Scvwd and our city operating costs in our service area. Customer #1 John Kolski Email message dated 1/27/17; 10:36 am I received this response to my question to the city who is the regulator of our water system telling me as the rate payer to call sjw to get answers. The city council is the regulator and they should answer questions of the rate payers and they also are the ones who should be asking sjw the questions before they approve any rate increase. Customer #1 John Kolski Email message dated 1/28/17; 2:15 pm I received this response to my question to the city who is the regulator of our water system telling me as the rate payer to call sjw to get answers. The city council is the regulator and they should answer questions of the rate payers and they also are the ones who should be asking sjw the questions before they approve any rate increase. The city council is accountable to the rate payers of this water system, not sjw who only leases it from cupertino. Email message dated 1/27/17; 12:28 am Subject: Automatic reply: Question and required answer please before you the city council can vote on thre proposed rate increase by SJW Thank you. Your email to WaterRates@cupertino.org<mailto:WaterR ates@cupertino.org> has been received. Your comments are appreciated and will be included anomalously with relevant materials presented to the City Council as they consider the proposed rate increase. Specific questions you may have asked will be responded to within three business days. You may also call the City of Cupertino Public Works Department at (408) 777-3354. Questions regarding operation of the municipal water system, including factors 194 contributing to the proposed rate increase requested by SJWC can be inquired directly to SJWC at either www.sjwater.com<http://www.sjwater.co m/> or 408-279-7900. Customer #1 John Kolski Email message dated 1/28/17; 6:34 pm THE COUNCIL MEMBERS CANNOT VOTE ON THIS ITEM IF ANY THEM HAVE A FINANCIAL INTEREST IN SJW ( stocks or ? ) OR ANY DIRECT CONNECTION WITH SJW ( such as officer, consultant, vendor ), EITHER IS A CONFLICT OF INTEREST AND THOSE MEMBERS HAVE TO REFRAME FROM VOTING. Customer #1 John Kolski Email message dated 1/30/17; 9:07 am THAT WHEN A PERSON STANDS IN FRONT OF THE CITY COUNCIL AND GIVES COMMENTS THEY HAVE TO GIVE THIER NAME AS PUBLIC INFORMATION FIRST BUT THE COMMENTS SUBMITTED FRO THE RECORD HAVE THE NAMES LEFT OFF. WHY? Customer #15 Email message dated 1/30/17; 3:23 pm Hi, I am the resident in Cupertino. Last year water service fees already tremendously increase. This year there are lots of raining and have enough water to use for the whole year. It has no reason to increase the water service fees again. Please pass my objection voice to San Jose Water Company. Thanks. Customer #1 John Kolski Email message dated 1/30/17; 3:43 pm to sjw and the city of cupertino…for your information about the rate increase proposed by sjw i called a spoke to the editor of the san jose mercury news paper today about the article in the cupertino paper two weeks ago. i notified him that the facts were reported incorrectly and all the facts were not included in the article and that how is was reported is misleading to the rate payers of cupertino who own the water system. i informed him that the cpuc is not the regulatory authority over the city of cupertino’s city owned water system and has no authority to approve rate 195 increases as sjw is not the regulator either. only the city council of cupertino is the regulatory authority over this water system. Customer #1 John Kolski Email message dated 1/30/17; 3:55 pm question regarding the rate increase proposed by sjw how can the rate in create be voted on as retroactive back to january 1, 2017, when the rate increase has not even been voted on yet and approved by the city council? and if approved at the february meeting how can the city council inact a retroactive policy when the cpus decision has nothing to do with cupertino. Customer #1 John Kolski Email message dated 2/1/17; 2:53 pm I HAD SEND THIS IN ONCE BUT DON’T SEE IT IN THE POSTED COMMENTS OF THE CITY SITE IT SHOWS THE RATE PAYERS WHO REGULATES THE CITY WATER SYSTEM AND THAT THE CPUC HAS NO AUTHORITY TO APPROVE RATE INCREASES http://www.energy.ca.gov/pou_reporting/background/difference_pou_iou.ht ml 196 Differences Between Publicly and Investor-Owned Utilities Investor-owned utilities (IOUs) are private electricity and natural gas providers. California Public Utilities Commission (CPUC) oversees IOUs. Pacific Gas and Electric, San Diego Gas and Electric, and Southern California Edison comprise approximately three quarters of electricity supply in California. Publicly owned utilities (POUs) are subject to local public control and regulation. POUs are organized in various forms including municipal districts, city departments, irrigation districts, or rural cooperatives. Municipal districts may include territories outside city limits or may not even serve the entire city. Cooperatives are owned by the customers they serve usually in rural areas. There are more than 40 POUs in the state that account for approximately a quarter of electricity supply in California. Most POUs are smaller than IOUs in the electricity sales and the number of customer accounts. The largest POU, Los Angeles Department of Water and Power (LADWP) provides services to 3.9 million customers. The smallest utilities have less than 400 customers. One-third of the POUs account for over 90 percent of POU electricity sales. Most of the POUs serve between 1,800 and 100,000 customers. The table below summarizes differences between POUs and IOUs. POU IOU Ownership A local government body and/or customers/members of the utility. Usually limited to the service area. Shareholders or investors. Not limited to the service area. Structure/ Manageme nt/ Regulation Non-profit public entity managed by locally elected officials/ public employees. Private company. Shareholder- elected board appoints management team of private sector employees. Regulated by California Public Utilities Commission (CPUC). 197 Rates Setting and Regulation Customer rates are set by each utility's governing body-board or city council in a public forum. Customer rates are set and regulated by CPUC through public process that includes some customer participation. Mission/G oals Optimize benefits for local customer owners usually in the form of lower energy rates. Optimize return on investment for shareholders. Financing Public utilities have access to tax-free bonds and co- ops have access to low- interest loans usually at the local level. Stockholders (investors), the sale of bonds and bank borrowing help finance the utility's operations. Power Generation Operate their own generation facilities or purchase power through contracts. Purchase power through contracts and operate their own generation facilities. After the energy crisis, IOUs resumed electricity procurement in 2002 (Public Utility Code 454.5). Every two years, the CPUC holds a Long Term Procurement Plan (LTPP) proceeding to review and adopt the IOUs' ten- year procurement plans. The LTPP proceeding evaluates the utilities' need for new fossil- fired resources and establishes rules for rate recovery of procurement transactions. 198 Profit/Net Revenue Rates are set to recover costs and earn additional return to maintain bond ratings and invest in new facilities. Utility rates are set to recover costs and earn a reasonable return as profits for investors in return for the risk they bear for investing in new facilities. Size/ heterogene ity Although POUs dramatically differ in size and number of customers they serve, most are small or mid-sized with an exception of LADWP and SMUD. Very large in size and number of customers. Complex, heterogeneous customer mix. Customer #16 Email message dated 2/7/17; 7:09 pm City of Cupertino, I am writing to express my concern about the current water rate increase that you are considering. Given the increase in precipitation over the last few months, it seems wise to wait until the spring when snow pack levels can be measured. I understand that there are other costs associated with water— overhead, delivery, etc…--but the actual cost of water does not logically seem like it will be increasing soon. It would appear quite ironic for the city to raise water rates when we are starting to see such large gains in water levels. Over the last year or two we have seen higher and higher water bills due to overage charges and base rates which are not based on our actual use. It would add insult to injury to have a water rate increase backing up to what have already been higher water bills. Please put off this decision or, even better, don’t increase our rates. Regards. Customer #1 John Kolski Email message dated 2/7/17; 8:10 pm HOW MUCH WATER THAT THE CITY SERVICE AREA AND THE RATE PAYERS GETS AND PAY FOR COMES FROM AND AS IMPORTED WATER FROM SCVWD AND HOW MUCH WATER COMES FROM THE CITY OWNED WELLS [ IN GALLONS ]? Customer #1 Email message dated 2/7/17; 8:32 pm 199 John Kolski SJW ONLY PAYS THE CITY A $1.00 PER YEAR FOR THE USE OF CITY WATER SERVICE AREA AND THEY COLLECT MILLIONS EACH YEAR FROM THE RATE PAYERS AND HAVE PUT NOTHING INTO LONG TERM MAINTENANCE OF THE SYSTEM AND “THEY WANT ANOTHER UNJUSTIFIED RATE INCREASE” Customer #1 John Kolski Email message dated 2/7/17; 8:55 pm THE LEASE OF THE CITY RATE SYSTEM TO SJW HAS BEEN IN THE PAST AND STILL IS A “CASH COW” FOR SJW. JUST MULTIPLY THE NUMBER OF RATE PAYERS BY AN AVERAGE MONTHLY BILLING AMOUNT OF $175.00/M ADN SEE HOW MUCH THEY MAKE FOR EACH YEAR OF THE LEASE. IT IS IN THE AREA OF $9,000,000.00/YEAR AND THEY ONLY PAID $6.8 MILLION FOR THE LEASE AT THE START AND PAY $1.00/Y. THE LEASE TERM IS FOR 25 YEARS. ALL YOU HAVE TO DO IS READ THE LEASE AND OBSERVE HOW SJW HAS DELT WITH THE LEASE AND THE CITY DURING THE LEASE PERIOD. THEY ARE IN NON-COMPLIANCE OF THE LEASE AGREEMENT AND WORSE HAVE NOT PUT ANY MONEY INTO THE SYSTEM FOR LONG TERM MAINTENANCE AND REPLACEMENT OF AGING INFRASTRUCTURE. EVERY CITY RATE PAYER SHOULD READ THE LEASE, HOLD THE CITY TO THEIR RESPONSIBILITY AS REGULATOR AND DEMAND THAT THEIR CITY OWNED WATER SYSTEM BE OPERATED TO THE BENEFIT OF THE RATE PAYERS NOT SJW. Customer #17 Email message dated 2/7/17; 10:51 pm Hi, I am a residence of Cupertino City. My home address is 10818 Juniper court, Cupertino 95014. 200 I am writing to provide input regarding the proposed raise in water service fees. I request this proposed raise be delayed until spring given the abundance of rain and snow we received this season. I request that this be delayed until the end of Spring when the actual/residual level of the snow pack is measured and confirmed that we are done with the drought. I think it's only sensible to do after proper assessment as opposed to rushing in to increase the rates. Thank you for your consideration Customer #18 Email message dated 2/8/17; 5:30 pm Based on abundance of rain this season and already raised water rates I strongly object to any water rate increase. At the very least I encourage you to wait until spring when actual total rain levels could determine the appropriate water rates. If the company responsible is unable to reduce its cost perhaps it is time to change its management instead of constantly request rate hikes. Customer #19 Email message dated 2/9/17; 5:03 pm Sirs: Your proposed Water Rate Increase is unreasonable. You just recently raised the rates. Can you justify the latest increase vis- a -vis our recent rain totals and snow pack? Please think again about your proposal. Regard Customer #1 John Kolski Email message dated 2/9/17; 7:53 pm REGARDING THE BELOW E-MAIL. IF MY STATEMENTS CONCERN ANYONE, THEN THE REGULATOR OF THE CITY WATER SYSTEM WHICH IS THE CITY COUNCIL IS MUST ASK SJW FOR DETAILED ANSWERS AND MAKE THOSE ANSWERS OPEN INFORMATION TO THE RATE PAYERS OF CUPERTINO BEFORE THE CITY COUNCIL MEETING. THIS LEASE IS PUBLIC INFORMATION AND MUST HAVE FULL TRANSPARENCY TO ITS RATE PAYERS. On Feb 7, 2017, at 8:54 PM, John Kolski <ducksfly10@gmail.com> wrote: THE LEASE OF THE CITY RATE SYSTEM TO SJW HAS BEEN IN THE PAST AND STILL IS A “CASH COW” FOR SJW. 201 JUST MULTIPLY THE NUMBER OF RATE PAYERS BY AN AVERAGE MONTHLY BILLING AMOUNT OF $175.00/M ADN SEE HOW MUCH THEY MAKE FOR EACH YEAR OF THE LEASE. IT IS IN THE AREA OF $9,000,000.00/YEAR AND THEY ONLY PAID $6.8 MILLION FOR THE LEASE AT THE START AND PAY $1.00/Y. THE LEASE TERM IS FOR 25 YEARS. ALL YOU HAVE TO DO IS READ THE LEASE AND OBSERVE HOW SJW HAS DELT WITH THE LEASE AND THE CITY DURING THE LEASE PERIOD. THEY ARE IN NON-COMPLIANCE OF THE LEASE AGREEMENT AND WORSE HAVE NOT PUT ANY MONEY INTO THE SYSTEM FOR LONG TERM MAINTENANCE AND REPLACEMENT OF AGING INFRASTRUCTURE. EVERY CITY RATE PAYER SHOULD READ THE LEASE, HOLD THE CITY TO THEIR RESPONSIBILITY AS REGULATOR AND DEMAND THAT THEIR CITY OWNED WATER SYSTEM BE OPERATED TO THE BENEFIT OF THE RATE PAYERS NOT SJW. Customer #20 Email message dated 2/10/17; 12:20 pm Dear Sir/Madam: I’m owner of following properties in Cupertino: 10585 Merriman Road (Parcel # 342-16-079) 10340 Walnut Circle (Parcel # 357-03-040) 10840 Wunderlich Drive (Parcel# 375-22-011) The purpose of this e-mail is to submit my written opposition to Cupertino City Hall’s proposed rate increase for water service fees effective March 3, 2017 (retroactive to January 1, 2017). Customer #1 John Kolski Email message dated 2/14/17; 5:01 am FOR OUR INFORMATION REGARDING THE PROPOSED RATE INCREASE IN CUPERTINO BY SJW I DO NOT THE MERCURY NEWS OR THE CITYOF CUPERTINO HAS NOTICED THE RATE PAYERS OF CUPERTINO IN A WAY TO INFORM THEM OF THE FACTS OF THE CITY OWNED WATER SYSTEM AND THE REGULATORY RESPONSIBILITIES OF THE CITY COUNCIL IN TOTAL THAT EFFECT EACH RESIDENT OF CUPERTINO. THE PUBLIC NOTICE IN THE CITY OF CUPERTINO WEB SITE IS ONLY VIEWED BY A SMALL NUMBER OF PEOPLE AND THE ARTICLE THAT 202 WAS IN THE CUPERTINO PAPER WAS FULL OF MISS INFORMATION AND DID NOT HAVE ALL THE FACTS IN IT. TRANSPARENCY BY THE CITY AND THE MEDIA HAS NOT HAPPENED. HOW CAN THE PEOPLE EFFECTED BY THIS GIVE INPUT TO THE COUNCIL IF THEY DO NOT KNOW WHAT IS GOING ON. Customer #1 John Kolski Email message dated 2/14/17; 1:55 pm TODAY A RECEIVED AT LETTER ASKING ME TO DO A WATER SURVEY. FIRST IT SAYS I HAVE RECEIVED HOME WATER REPORTS FROM SJW. THAT IS NOT TRUE, I HAVE NEVER RECEIVED ANY REPORTS. AND IT SAYS I HAVE A SMART METER. THAT ALSO IS NOT TRUE. NEXT I HAVE NO IDEA WHAT INFORMATION YOUR SURVEY WANTS FROM ME BUT I AM NOT GIVING YOU ANYTHING. AND I DO NOT DO SOCIAL MEDIA SURVEYS. LIKE YOUR PROPOSED RATE INCREASE FOR CUPERTINO IN WHICH YOU ARE IN NON-COMPLIANCE WITH THE LEASE AGREEMENT BY USE THE CPUC AS YOUR AUTHORITY TO INCREASE THE RATE AND THE LAW SAYS THEY HAVE NO REGULATORY AUTHORITY OVER A CITY OWNED WATER SYSTEM, THE CITY IS THE REGULATOR AND ADDITIONALLY YOU DID NOT APPLY TO THE CITY FOR A PROPOSED RATE INCREASE, YOU SUBMITTED THE APPLICATION TO THE CPUC WHICH IS INVALID. SJW CONTINUES TO OPERATE IN A MANNER THE THEY ARE OVER AND ABOVE THE LAW, THE AGREEMENTS THE Y SIGN AND THE PEOPLE THEY SERVE. Customer #21 Phone call dated 2/15/14 Rates are already too high. Recent rain should be considered. Does not support the increase. Senior citizen on fixed income. 203 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:117-2276 Name: Status:Type:Public Hearings Agenda Ready File created:In control:1/17/2017 City Council On agenda:Final action:2/21/2017 Title:Subject: Review and consider a development proposal submitted (Scandinavian Furniture Site), for consideration by the City Council, to authorize the proposed applicant to submit an application for a General Plan Amendment and staff to commence environmental and project review. (Application No.: GPAAuth-2016-01; Applicant: Kings Mill Group, Keith Fichtner; Location: 19900 Stevens Creek Boulevard; APN: 369-05-038) Sponsors: Indexes: Code sections: Attachments:Staff Report A - Draft Resolution B - City Council policy for General Plan Amendment application procedures C - Scandinavian Furniture project plans D - General Plan Amendment Request Application: Comprehensive Project Description E - Fiscal Analysis of 19900 Stevens Creek Boulevard General Plan Amendment Application, prepared F - Relevant Policies in the EDSP Action ByDate Action ResultVer. City Council2/21/20171 Subject:Reviewandconsideradevelopmentproposalsubmitted(ScandinavianFurniture Site),forconsiderationbytheCityCouncil,toauthorizetheproposedapplicanttosubmitan applicationforaGeneralPlanAmendmentandstafftocommenceenvironmentalandproject review.(ApplicationNo.:GPAAuth-2016-01;Applicant:KingsMillGroup,KeithFichtner; Location: 19900 Stevens Creek Boulevard; APN: 369-05-038) StaffrecommendsthattheCityCounciladopttheResolutionNo.17-020(AttachmentA)after determiningwhethertheapplicationisauthorizedtomoveforwardtoapplyforaGeneralPlan Amendment. CITY OF CUPERTINO Printed on 2/15/2017Page 1 of 1 powered by Legistar™204 COMMUNITY DEVELOPMENT DEPARTMENT CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3308 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: February 21, 2017 Subject Review and consider a development proposal submitted (Scandinavian Furniture Site), for consideration by the City Council, to authorize the proposed applicant to submit an application for a General Plan Amendment and staff to commence environmental and project review. (Application No.: GPAAuth-2016-01; Applicant: Kings Mill Group, Keith Fichtner; Location: 19900 Stevens Creek Boulevard; APN: 369-05-038) Recommended Action Staff recommends that the City Council adopt the Draft Resolution (Attachment A) after determining whether the application is authorized to move forward to apply for a General Plan Amendment. Discussion Background On September 1, 2015, the City Council adopted procedures for considering future General Plan amendments. The new procedures provide the following benefits over the previous process whereby General Plan amendments were processed as they were received:  Provide ability to achieve orderly development of the City through a managed process;  Ensure that additional development can achieve/improve facility/service and quality of life standards for the community;  Provide opportunity for early community input;  Consider impact on staff and other resources. Pursuant to the new procedures, the City Council will evaluate General Plan Amendment proposals for authorization as follows (see Attachment B for adopted Council policy):  GPA applications would be considered by the Council twice every year;  The Council may allow applications to be re-considered at a continued hearing by the City Council to submit revisions/additional information within 30 days. 205  Applications that are rejected would wait for a year before re-applying (i.e. they would not be allowed to re-apply in the 6 month subsequent cycle). The deadline to apply for consideration in the 2017 First Cycle by the City Council was November 14, 2016. The City received one application for authorization for General Plan amendments – the Scandinavian Furniture Site. The Analysis section below reviews the project based on the evaluation criteria set forth in the procedures adopted by the Council. Analysis Introduction The proposal is a request to incorporate 1,790 sq. ft. of existing outdoor arcade area into the existing 26,239 sq. ft. retail space on site (Scandinavian Furniture) and convert it to an office use totaling 28,029 sq. ft. The applicant anticipates either an incubator or medical office use. Since the available office allocation balance in the General Plan is not adequate to allow this change of use, the applicant is requesting a General Plan Amendment needed to add office allocation to the Heart of the City Special Area (See Attachments C and D.) The applicant is requesting 16,000 sq. ft. of additional office allocation; however, the proposed project would only need an additional 10,916 sq. ft. of office allocation (see details in Table 3 below). Evaluation Criteria Based on the criteria in the policy adopted by the City Council on September 1, 2015, the project has been evaluated based on:  General Plan goals achieved by the project: o Site and architectural design and neighborhood compatibility – does the project exhibit superior quality of site layout and project design? Is the project compatible with the surrounding uses? o Fiscal impacts, including a diverse economic base – would the project have positive or negative one-time and ongoing impacts to the City’s fiscal base? o Provision of affordable housing – does the project provide or otherwise promote affordable housing above and beyond typical City requirements? o Environmental sustainability – to what extent does the project include features including green building, site design and project operation principles, that promote environmental sustainability above and beyond the City’s typical requirements?  General Plan amendments requested – number and type of General Plan amendments requested by the applicant.  Proposed voluntary community amenities – what is the per-square-foot amount of community amenities offered by the applicant? 206  Staff time and resources required to process the project – would the amount of staff time and resources require hiring of staff or consultants to process the project? It should be noted that applicants would be required to pay the full cost of processing the project, including staff and consultant time and materials. Table 1 includes a high-level analysis of how this application addresses these criteria. A brief discussion of the project is provided later in this report. 207 Table 1: Summary Evaluation of the Development Proposal Project Site and architectural design and neighborhood compatibility Fiscal impacts, including a diverse economic base Provision of affordable housing Environmental sustainability General Plan amendments requested Proposed voluntary community amenities Staff time and resources (2) 1. Scandinavian Furniture a. Site and Architectural design – further review required for design, circulation, site planning and landscaping. (1) b. Neighborhood compatibility – generally compatible in terms of land use and building size. a. Increase in service costs to the City’s General Fund $33,000-$36,000. b. The City’s Economic Development Specific Plan supportive of incubator or co- working uses. c. Moderate increase in property tax revenue. No affordable housing features other than statutorily required payment of Below- Market-Rate Program fees. Project will meet all statutorily required environmental sustainability features No additional sustainability features proposed Office allocation: 16,000 sq. ft. a. School resources – none b. Public open space – none c. Public Facilities – none d. Transportation Facilities – none Total - $0/square foot. 0.3FTE (full-time equivalent) of staff time and consultants for environmental review, etc. (1) ASA-2016-13 & TR-2016-35 to permit parking lot modifications to improve landscaping and ensure parking count conforms to retail standards (1 space/250 sq. ft.) on the site was approved on November 10, 2016. The ASA entitlement does not affect the land use however the design will provide enough parking for either retail or incubator office use. (2) All staff time and resources will be paid for by applicant. 208 Evaluation of Project Proposal: The following is a high-level evaluation of project proposal related to compliance with the City’s General Plan. Location – 19900 Stevens Creek Boulevard Project Description - The proposal for the Scandinavian Furniture site is to incorporate 1,790 sq. ft. of existing outdoor arcade area into the existing 26,239 sq. ft. retail space on site and convert it to either an incubator office or medical office use totaling 28,029 sq. ft. Project Location and Surrounding Uses The 1.92 acre project site is located on the south side of Stevens Creek Boulevard, approximately 350 feet east of the intersection of South Blaney Avenue and Stevens Creek Boulevard. The site contains a 26,239 sq. ft. standalone retail building, occupied by Scandinavian Furniture, and associated parking. The project site is in the Central Stevens Creek Boulevard subarea of the Heart of the City (HOC) Specific Plan Area. Surrounding uses include a mix of retail, office, and a mixed-use condominium development (Travigne) to the north, a townhome development (Portal Plaza) to the east, a standalone restaurant (Arya) and other commercial uses to the west, and single family homes to the south. Application Overview Table 2 contains project data along with General Plan amendments or variances requested and/or required. 209 Table 2: Scandinavian Furniture Site Project Data Requirement/Standard Existing/Allowed/Required Proposed Comments General Plan designation Commercial/Office/Residential No change Primary use: Commercial/ Commercial office Secondary uses: Office above ground level Zoning designation P (CG,Res) – Planned Development (General Commercial) with special development conditions Amend to allow office uses. Lot Coverage Existing – 33.5% Allowed - No Maximum No change Floor Area Ratio Existing – 31% Allowed - No Maximum 33.5% General Plan Development allocation Office Existing (on site) - 0 sq. ft. 28,029 sq. ft. Office allocation in HOC available – 17,113 sq. ft. Additional office allocation required – 10,916 sq. ft. Additional office allocation requested – 16,000 sq. ft. Commercial Retail Existing - 26,239 sq. ft. 0 sq. ft. Existing sq. ft. does not include 1,790 sq. ft. of new interior space proposed. Heart of the City (HOC) Specific Plan Direct Retailing Uses Required – Front - 75% Rear – 50% Existing – 100% Proposed – 0% Project will require an HOC Exception to allow proposed uses. Height Allowed – 45 ft Existing – 20.5 ft No change Slope line (setback to height ratio) 1 : 1 No change Setbacks Front Required – 35 foot from curb Existing – 40 feet to arcade No change Side Required – Greater of: One-half (1/2) bldg. height, or ten (10) ft. Existing – West: 12 ft; East: 72 ft No change Rear Required – Greater of: One and one-half (1.5) bldg. height or 20 ft. Existing – 117.5 ft No change 210 Requirement/Standard Existing/Allowed/Required Proposed Comments Parking Vehicular Parking Office use - 1 space/285 sq. ft. Required - 98 spaces Existing – 78 spaces 107 spaces (approx.) Adequate parking available for office uses. Medical and Dental Office - 1 space/175 sq. ft. Required - 161 spaces Existing – 78 spaces Proposal does not meet Parking Ordinance standard for medical office uses. However, the Parking Ordinance allows the preparation of a parking study to determine an appropriate, alternative parking requirement. Bike Parking Office - 1/1,250 sq. ft. or 1/15 employees, whichever is more restrictive. 23 Class I spaces 23 Class I spaces Medical - 1/1,250 sq. ft. 23 Class II spaces Site and Architectural Design and Neighborhood Compatibility:  The proposed addition to the existing building and site treatments will need further review. Preliminarily, the design has the main (only) entry along the side (east) elevation. Typically, the main entrance should be facing the right-of-way, in this case on the north elevation, along Stevens Creek Boulevard in order to activate the street and as encouraged in the General Plan.  The plans propose a small patio along the front with a seating wall for users of the building. The City has in the past required new developments along Stevens Creek Boulevard to incorporate outdoor seating elements that allow for access directly from the right-of-way and interaction with the public.  The current parking supply on site (indicated on plans) does not conform to retail parking standards (1 space/250 sf) and the site has a deed restriction to limit its occupancy to furniture retail operators. In November 2016, the applicant obtained approval to increase the parking on the site to meet the retail parking standards. However, this construction work is on hold pending a decision on the General Plan Amendment application. In addition, the applicant made an application in January 2017 with the City, to remove the requirement for a deed restriction on the property, to allow other complying retail uses to operate from the site. This was approved by the Planning Commission at its February 14, 2017 meeting. 211 Net Fiscal Impacts:  The applicant’s financial justification for allowing the change in use, is a higher assessed property tax value ($263,087) due to his purchase of the property in 2016, and other property improvements contemplated with the proposal. An analysis of fiscal impacts to the City has been prepared by Economic & Planning Systems (EPS), a third- party consulting firm, which indicates that a more conservative estimate of assessed property tax is $141,700, with the City’s share (allocated to the General Fund) being $8,199. (See Attachment E.)  An increase in sales tax as a result of office workers spending within the City boundary is justified by both the applicant and EPS.  EPS’s fiscal impact report found that, overall, both start-up incubator and medical office uses would generate more service costs to the City’s General Fund, and result in a deficit of $36,000 and $33,000 respectively.  The City’s Economic Development Specific Plan (EDSP) includes policies that support the conversion of underutilized ground floor retail space to incubator or co-working uses (Strategy 4.1) (see Attachment F.) Provision of affordable housing:  The proposal does not include a residential component and the applicant has not proposed to provide any alternatives. However, the applicant will be required to pay any applicable housing mitigation fees as a project requirement. Environmental Sustainability:  None indicated. The project would be required to comply with statutory requirements. Voluntary Community Amenities Proposed: The applicant has not proposed any community amenities with this project as indicated in Table 3 below. Table 3: Proposed Voluntary Community Amenities Categories Proposed Beneficiary Value Comments School resources None N/A $0 Public open space None N/A $0 Public facilities None N/A $0 Transportation facilities None N/A $0 Total Value $0 Total Value/square foot $0 212 Staff Time and Resources The Planning Division will dedicate a project manager (either staff or consultant based on availability) to guide the project through the entitlement process appropriate environmental and city related reviews. It is estimated that about 0.3FTE of staff time would be required to process the project. Staff time and consultant costs will be paid for by the applicant. PUBLIC NOTICING & OUTREACH The following table (Table 4) indicates the public noticing and outreach conducted on the General Plan authorization project. Table 4: Noticing and Outreach Noticing, Site Signage Agenda  Postcard mailed (at least 10 days prior to meeting) to: o All postal customers in the City of Cupertino and o If subject property within 500 feet of city boundary, to properties (even if in adjacent cities) within 500 feet of it  Posted on the City's official notice bulletin board (at least five days prior to the hearing)  Site signage on subject property (at least 10 days prior to meeting)  Posted on the City of Cupertino’s Web site (at least five days week prior to the hearing) Additional outreach has been conducted on the City’s Social Media platforms and advertising on the City Channel. As of publication of this staff report on January 27, 2016, staff has not received any comments. ENVIRONMENTAL IMPACT The California Environmental Quality Act (CEQA) does not apply since the City Council’s action, consideration and authorization to allow, or not allow, formal applications, is not a project as defined by CEQA. FISCAL IMPACT Fiscal impact analysis for the project is included in Attachment E.  The fiscal impact analysis indicates that the full service hotel currently proposed by the applicant provides the City with a net fiscal negative revenue of $33,000 - $36,000. 213 NEXT STEPS Projects authorized by the Council to move forward will enter the formal development review process including necessary environmental analysis. The timeline for the projects will begin when the applications are complete and are expected to run about 7-9 months. Projects additionally have the option to resubmit their application with minor adjustments based on Council input within 30 days of the Council meeting. The applications will be brought back to a subsequent meeting later in Spring 2017. _____________________________________ Prepared by: Piu Ghosh, Principal Planner Gian Paolo Martire, Associate Planner Reviewed by: Aarti Shrivastava, Assistant City Manager Approved for Submission by: David Brandt, City Manager Attachments: A - Draft Resolution B - City Council policy for General Plan Amendment application procedures C - Scandinavian Furniture project plans D - General Plan Amendment Request Application: Comprehensive Project Description E - Fiscal Analysis of 19900 Stevens Creek Boulevard General Plan Amendment Application, prepared by Economics and Planning Systems, Inc., dated February 10, 2017 F - Relevant policies from the Economic Development Strategic Plan (EDSP) adopted by the City Council on October 4, 2016 214 DRAFT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AUTHORIZING A PROSPECTIVE DEVELOPMENT PROPOSAL TO PROCEED AS A GENERAL PLAN AMENDMENT APPLICATION PROJECT DESCRIPTION Application No: GPAauth-2016-01; Applicant: Keith Fichtner (Kings Mill Group) Location: 19900 Stevens Creek Boulevard. WHEREAS, on September 15, 2015, the City Council adopted procedures for considering future General Plan amendments, including to review prospective applications twice a year and decide which are authorized to proceed as a General Plan Amendment application; and WHEREAS, the City Council decision to authorize one or more applicants to proceed with a General Plan amendment application, does not in any way presume approval of any proposed amendment or project; and WHEREAS, the City received one application by November 14, 2016, the deadline to be considered in the 2017 first cycle of the General Plan Amendment application review process; and WHEREAS, on February 21, 2017, the City Council held a public hearing to consider said General Plan Amendment authorization applications; and WHEREAS, the proposed Resolution 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 Resolution 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, the City Council has adopted criteria for determining whether an application will be authorized for processing as follows: a. General Plan goals achieved by the proposed project, including, but not limited to, the following: (i) Site and architectural design and neighborhood compatibility; (ii) Brief description of net fiscal impacts (sales tax, transient occupancy tax or other revenue provided by the project), including the extent to which the project would diversify the City’s economic base; 215 Resolution No. 17-___ February 21, 2017 Page 2 (iii) The provision of affordable housing; and (iv) Environmental Sustainability. b. General Plan amendments (and any other zoning amendments or variances) requested. c. Proposed voluntary community amenities, defined as (i) school resources, (ii) public open space, such as parks and trails, (iii) public facilities and utilities, such as library, community center or utility systems and (iv) Transportation facilities with an emphasis on city-wide bicycle, pedestrian and transit improvements, such as community shuttles, pedestrian and bicycle bridges, and transit centers/stations d. Staff time and resources required to process the project. NOW, THEREFORE, BE IT RESOLVED, that after careful consideration of maps, facts, exhibits, testimony, staff reports, public comments, and other evidence submitted in this matter, the City Council of the City of Cupertino has determined that the following proposal is authorized to proceed as General Plan Amendment applications based on the criteria shown in Exhibit A: {Name(s) of project authorized to proceed by the City Council to be inserted here} PASSED AND ADOPTED at a Regular Meeting of the City Council of the City of Cupertino the 21st day of February 2017, by the following roll call vote: Vote: Members of the City Council: AYES: NOES: ABSTAIN: ABSENT: ATTEST: APPROVED: _____________________ _______________________ Grace Schmidt Savita Vaidhyanathan City Clerk Mayor, City of Cupertino 216 Exhibit A Table 1: Summary Evaluation of the Development Proposal Project Site and architectural design and neighborhood compatibility Fiscal impacts, including a diverse economic base Provision of affordable housing Environmental sustainability General Plan amendments requested Proposed voluntary community amenities Staff time and resources (2) 1. Scandinavian Furniture a. Site and Architectural design –further review required for design, circulation, site planning and landscaping. (1) b. Neighborhood compatibility – generally compatible in terms of land use and building size. a. Increase in service costs to the City’s General Fund $33,000-$36,000. b. The City’s Economic Development Specific Plan supportive of incubator or co- working uses. c. Moderate increase in property tax revenue. No benefits in terms of affordable housing other than statutorily required payment of Below- Market-Rate Program fees. Project will meet all statutorily required environmental sustainability features No additional sustainability features proposed Office allocation: 16,000 sq. ft. a. School resources – none b. Public open space – none c. Public Facilities – none d. Transportation Facilities – none Total - $0/square foot. 0.3FTE (full-time equivalent) of staff time and consultants for environmental review, etc. (1) ASA-2016-13 & TR-2016-35 to permit parking lot modifications to improve landscaping and ensure parking count conforms to retail standards (1 space/250 sq. ft.) on the site was approved on November 10, 2016. The ASA entitlement does not affect the land use however the design will provide enough parking for either retail or incubator office use. (2) All staff time and resources will be paid for by applicant. 217 RESOLUTION NO. 15-078 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ADOPTING PROCEDURES FOR PROCESSING OF GENERAL PLAN AMENDMENT APPLICATIONS WHEREAS, on December 4, 2014, the City Council adopted an amended General Plan titled Community Vision 2040, which reflects community input, regulatory changes, best practices, and the desire to achieve community-building, sustainability, economic, and fiscal objectives; and WHEREAS, the City has been evaluating various programs to manage development to address development issues in light of concerns about rapid growth and the impacts of such growth overwhelming the City's ability to accommodate it, as well as the substantial impacts of development on quality of life in the community; and WHEREAS, as part of its evaluation process, the City has considered Community Business Incentive Zoning (CBIZ) and Growth Management programs; and WHEREAS, while CBIZ and Growth Management programs can be effective in metering growth and providing for community benefits, they can be difficult to administer, are limited by legal requirements and do not provide the flexibility for managing growth and its substantial impacts on the community; and WHEREAS, California Government Code Section 65358( a) provides that: "If it deems it to be in the public interest, the legislative body may amend all or part of an adopted general plan. An amendment to the general plan shall be initiated in the manner specified by the legislative body ... . ";and WHEREAS, each mandatory element of the City's General Plan may be amended no more than four times during any calendar year and, subject to that limitation, "an amendment may be made at any time, as determined by the legislative body" (Cal. Gov. Code 65358(b)); and WHEREAS, the City's Municipal Code does not address the timing or initiation of general plan amendments; and WHEREAS, rather than pursue a CBIZ or Growth Management program, the City desires to set forth an orderly process, in accordance with its legislative discretion, to consider General Plan amendments and ensure that proposals are fairly considered in light of the City's goals and concerns about growth; and WHEREAS, the City has prepared General Plan Amendment Procedures to provide a process for preliminary review of proposed amendments; and WHEREAS, the City Council conducted a public hearing on the proposed procedures on May 19, 2015, and the Council directed staff to provide more information and options at a future meeting; and WHEREAS, the City held an Open House on the General Plan Amendment Process on June 30, 2015, and the City Council held a Study Session after the Open House; and 218 Resolution No. 15-078 Page2 WHEREAS, at the Study Session, the Council directed staff to look at options that allowed for applications twice a year and that provided a reevaluation process; and WHEREAS, the procedures include, among other things: (1) notice provisions to ensure the public has an opportunity to comment; (2) evaluation criteria to ensure general plan amendments that move through the application process are in the public interest and meet the City's goals for development, including provision of community amenities; and (3) requirements for requesting preliminary review of a proposed General Plan amendment; and . NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cupertino hereby adopts the General Plan Amendment Procedures attached hereto, subject to minor revisions as may be made by the City Manager in consultation with the City Attorney. The City Council hereby authorizes City staff to process proposed General Plan amendments in accordance with the General Plan Amendment Procedures and to take any and all other actions necessary to implement the procedures. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino, the 1st day of September, 2015, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: Members of the City Council Sinks, Chang, Vaidhyanathan Paul, Wong None None Grace Schmidt, City Clerk APPROVED: Rod Sinks, Mayor, City of Cupertino 219 Resolution No. 15-078 Page3 PROCEDURES FOR PROCESSING OF GENERAL PLAN AMENDMENT APPLICATIONS 1. Background/Goals Like many communities throughout the State, Cupertino is concerned about balancing the benefits of economic development with the effects of rapid growth. The impacts of such growth can overwhelm the City's ability to accommodate it and affect the quality of life in the community. The goal is to create a procedure for the consideration of future General Plan amendments that will encourage orderly development of the City and ensure that facility/service and quality of life standards can be met for the community. These procedures only address amendments requested by private parties. The City may initiate General Plan amendments when it deems necessary, such as, to conform to State law or to ensure consistency within the General Plan. 2. Procedure a. The Council will consider the timing and processing of General Plan amendments twice a year, approximately every six months. b. In order to be considered for processing, applicants will be required to apply for authorization to process a General Plan amendment by a designated date. c. In the quarter following the due date (generally), the Council will hold a publicly noticed meeting to preliminarily review the list of proposed General Plan amendments. d. Noticing-City-wide postcard and public meeting requirements. e. Each application will be preliminarily evaluated for the following: (i) General Plan goals achieved by the project including, but not limited to, the following: (1) Site and Architectural design and neighborhood compatibility (2) Brief description of net fiscal impacts (sales tax, transient occupancy tax or other revenue provided by the project) including a diverse economic base (3) The provision of affordable housing ( 4) Environmental Sustainability (ii) General Plan amendments (and any other zoning amendments or variances) requested. (iii) Proposed voluntary community amenities, as defined in Section 3, if any. (iv) Staff time and resources required to process the project. f. Based on the above evaluation the Council will consider which projects, if any, will be authorized to proceed with a General Plan amendment application. The decision does not in any way presume approval of the amendment or project. It only authorizes staff to process the application, but the City retains its discretion to consider the application in accordance with all applicable laws, including the California Environmental Quality Act 220 Resolution No. 15-078 Page4 (" CEQA") and the City's zoning laws and ordinances. Consideration of the application will be in accordance with the City's Municipal Code and regulations. g. Staff will begin processing the General Plan amendment applications per Council direction. A project that applies for processing should be in substantial compliance with the project authorized by Council. h. Proposals not authorized by the Council at the first meeting (per 2.c. above) may be resubmitted with minor amendments within 30 days. Such projects will be considered by the Council at a future public meeting, noticed per the Cupertino Municipal Code, after staff review. 3. Voluntary Community Amenities a. For purposes of this policy, voluntary community amenities are defined as facilities, land and/or funding contributions to ensure that any development with a General Plan amendment application enhances the quality of life in the City, including enhancements of the following: (i) School resources (ii) Public open space, such as parks and trails (iii) Public facilities and utilities, such as library, community center or utility systems (iv) Transportation facilities with an emphasis on city-wide bicycle, pedestrian and transit improvements, such as community shuttles, pedestrian and bicycle bridges, and transit centers/stations 4. Preliminary Review Requirements a. Preliminary documents that would be typically required for the type of application that is requested, such as site plans, preliminary landscape plans, elevations, cross sections, preliminary grading plans and proposed materials. b. A description, including graphics, of the General Plan amendment(s) and land use approvals required, if any. The description should include diagrammatic information as necessary to clearly explain the request. c. An explanation of how the proposed project meets the overall goals of the General Plan and the benefits/impacts of the project to the community and its quality of life. d. A brief summary of net fiscal impacts. e. In order to provide the public with early notice and opportunity to provide input, to the extent the proposed project includes voluntary community amenities, as defined in Section 3 above, of a type typically memorialized in a development agreement, the applicant should include a Term Sheet explaining the proposed terms. The Term Sheet will be memorialized in a Development Agreement as part of the project, if approved. 221 ww w . a r c t e c i n c . c o m PR O J E C T N U M B E R : 1 6 4 1 4 1 A F a c a d e R e m o d e l a n d B u i l d i n g A d d i t i o n f o r : 19 9 0 0 S T E V E N S C R E E K B L V D Cu p e r t i n o , C A 9 5 1 0 4 PR O J E C T T E A M AR C H I T E C T U R A L CO V E R S H E E T DR A W I N G I N D E X A N D I S S U E D A T E S A1 . 0 0 DE M O L I T I O N S I T E P L A N A1 . 0 1 S I T E P L A N A2 . 1 1 F L O O R P L A N A3 . 0 1 E X T E R I O R E L E V A T I O N S A3 . 1 1 R E N D E R E D E X T E R I O R E L E V A T I O N S A3 . 3 1 E X T E R I O R R E N D E R I N G A4 . 0 1 S I T E S E C T I O N PR O J E C T D E S C R I P T I O N FI R S T I S S U E O R N O C H A N G E S S I N C E P R E V I O U S I S S U E MO D I F I C A T I O N S S I N C E P R E V I O U S I S S U E IS S U E D A T E S A N D D E S C R I P T I O N S 05.18.16 PLANNING DEPARTMENT SUBMITTAL 09.19.16 PLANNING DEPARTMENT SUBMITTAL 11.14.16 GENERAL PLAN AMENDMENT SUBMITTAL CI V I L C1 . 0 T O P O G R A P H I C S U R V E Y C2 . 0 P R E L I M I N A R Y G R A D I N G & D R A I N A G E C3 . 0 P R E L I M I N A R Y S T O R M W A T E R M A N A G E M E N T P L A N LA N D S C A P E L0 P R E L I M I N A R Y P L A N T P A L E T T E P L A N OWNER NAME: TH E K I N G S M I L L G R O U P PROJECT ADDR E S S : 19 9 0 0 S T E V E N S C R E E K B L V D . CU P E R T I N O , C A 9 5 0 1 4 ASSESSOR'S PA R C E L N O . : A P N 3 6 9 - 0 5 - 0 3 8 ZONING: HE A R T O F T H E C I T Y S P E C I F I C P L A N - C E N T R A L P ( C G , R E S ) SITE AREA, NET : 83 , 7 4 7 S . F . / 1 . 9 2 A C R E S TOTAL BUILDING A R E A : 2 8 , 0 2 9 S . F . FLOOR AREA RA T I O ( F A R ) : 3 3 . 5 % NUMBER OF STO R I E S : 1 CONSTRUCTION T Y P E : II I - B FIRE SPRINKLER S : YE S OCCUPANCY TY P E : B BUILDING FOOT P R I N T : 28 , 0 2 9 S . F . BUILDING COVE R A G E ( % O F S I T E ) : 3 3 . 5 % PROJEC T D A T A VIEW FROM DRIVEWAY PH O N E : CO N T A C T : EM A I L : LA N D S C A P E AR C H I T E C T : KL A , I n c . 15 1 N . N o r l i n S t r e e t So n o r a , C A 9 5 3 7 0 20 9 . 5 3 2 . 2 8 5 6 To m H o l l o w a y to m @ k n o x l a . c o m PH O N E : CO N T A C T : EM A I L : AR C H I T E C T : A R C T E C I N C . 99 A l m a d e n B o u l e v a r d , S u i t e 8 4 0 Sa n J o s e , C A 9 5 1 1 3 40 8 . 4 9 6 . 0 6 7 6 Je f f O p a r o w s k i , A I A jo p a r o w s k i @ a r c t e c i n c . c o m TH I S P R O J E C T C O N S I S T S O F I N F I L L I N G T H E E X I S T I N G E X T E R I O R C O V E R E D C O L O N N A D E A N D A N AD D I T I O N F O R A N E W E N T R Y . T H E F L O O R P L A N E N L A R G E M E N T O F 1 , 7 9 0 S . F . W I L L B R I N G T H E T O T A L AR E A O F T H E B U I L D I N G T O 2 8 , 0 2 9 S . F . A D D I T I O N A L E X T E R I O R R E N O V A T I O N S W I L L C R E A T E N E W WI N D O W S A L O N G T H E S O U T H A N D E A S T E L E V A T I O N S A N D N E W I N C L U D E N E W E X T E R I O R F I N I S H MA T E R I A L S . SI T E I M P R O V E M E N T S I N C L U D E N E W L A N D S C A P I N G A N D H A R D S C A P E A R E A S . VI C I N I T Y M A P N STELLING RD 85 28 0 SI T E E H O M E S T E A D R D ST E V E N S C R E E K B L V D N DE ANZA BLVD N WOLFE RD S DE ANZA BLVD S STELLING RD N BLANEY AVES BLANEY AVE S WOLFE RD MC C L E L L A N R D BO L L I N G E R R D TRANS I T M A P SI T E OW N E R : 1 9 9 0 0 S T E V E N S C R E E K B L V D . , L L C 60 6 8 K i n g s m i l l T e r r a c e Du b l i n , C A 9 4 5 6 8 A Facade Remodel and Building Addition for: 19900 STEVENS CREEK BLVD Cupertino, CA 95104 22 2 19900 STEVENS CREEK BLVD EXISTING BUILDING FOOTPRINT EXISTING RESTAURANT ST E V E N S C R E E K B O U L E V A R D EXISTING COMMERCIAL OFFICE BUILDING EXISTING RESIDENTIAL COMPLEX RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL 372'-4" 22 5 ' - 0 " 372'-3" 22 4 ' - 1 1 " 1 NO PARKING NO PARKING F. E . NO PARKING 3 2 2 4 TYP. 4 TYP. 5 67 TYP. 7 TYP. 7 TYP. 8 TYP. 8 TYP. 8 TYP. 9 TYP. 9 TYP. SCALE: DEMOLITION SITE PLAN 1" = 30'-0" 0'8'15'30' PROJECT NO: DATE DESCRIPTION In Association with: A F a c a d e R e m o d e l a n d B u i l d i n g A d d i t i o n f o r : 19 9 0 0 S T E V E N S C R E E K B L V D Cu p e r t i n o , C A 9 5 0 1 4 164141 05.18.16PLANNING DEPT. SUBMITTAL 09.19.16PLANNING DEPT. SUBMITTAL 11.14.16GEN. PLAN. AMENDMENT SUBMITTAL EXISTING PROJECT DATA . ZONING HEART OF THE CITY SPECIFIC PLAN - CENTRAL P (CG, RES) SITE AREA 83,747 S.F./1.92 ACRES EXISTING BUILDING FOOTPRINT 28,576 S.F. LOT COVERAGE 34.0% EXISTING LEASABLE AREA 26,635 S.F. EXISTING PARKING (2.7/1000) 72 SPACES 1 2 3 EXISTING WALKWAY TO BE REMOVED EXISTING PARKING STRIPING TO REMAIN4 5 EXISTING BUILDING TO REMAIN 7 EXISTING 6" CURB TO REMAIN 8 6 EXISTING MONUMENT SIGN TO REMAIN EXISTING LANDSCAPE AREA TO BE REMOVED EXISTING TRANSFORMER TO REMAIN DEMOLITION KEY NOTES .SYMBOLS LEGEND CURB / STALL STRIPING TO BE DEMOLISHED SETBACK PROPERTY LINE EXISTING PARKING LOT LIGHTING TO REMAIN, TYP. 9 EXISTING PROPERTY LINE A1.00 DEMOLITION SITE PLAN 223 NO PA R K I N G NO PA R K I N G F.E.NOPARKING 26 ' - 0 " P L A N T I N G E A S E M E N T 1 A4 . 0 1 10 1TYP.2 22 3 415TYP.67 2 896 7 2 2 4 12 11 1TYP.1TYP. 1 TY P . 1 TY P . 1TYP. 13 TY P . 13TYP. 10'-6"16'-0"24'-0"16'-0"5'-6" 6'-0"16'-0"24'-0"11'-5"24'-0"18'-0"18'-0"11 19 9 0 0 S T E V E N S C R E E K B L V D PR O P O S E D B U I L D I N G F O O T P R I N T 14 14 35 ' - 0 " M I N . S E T B A C K 9' - 0 " 5 13 TY P . 6 6 1010 9' M I N . 5' MI N . 9' M I N . 9' M I N . 5' MI N . 18' MIN. 9' M I N . 12 ' M I N . 5' MI N . 5' VA N PA R K I N G C O M P L I A N C E N O T E S 1. W H E N N O C U R B O R B A R R I E R I S PR O V I D E D , A W H E E L S T O P I S R E Q U I R E D WH I C H W I L L P R E V E N T E N C R O A C H M E N T OF C A R S O V E R W A L K W A Y S . 2. W H E E L C H A I R U S E R S M U S T N O T B E FO R C E D T O G O B E H I N D P A R K E D C A R S OT H E R T H A N T H E I R O W N . 3. A L L W A L K S A N D P A R K I N G S P A C E S S H A L L HA V E A M A X I M U M C R O S S S L O P E O F 1 : 4 8 . 4. P E D E S T R I A N W A Y S W H I C H A R E AC C E S S I B L E T O P E R S O N S W I T H DI S A B I L I T I E S S H A L L B E P R O V I D E D F R O M EA C H A C C E S S I B L E S P A C E T O R E L A T E D FA C I L I T I E S . AC C E S S I B L E P A R K I N G S I G N S E E 1 6 / - LE V E L L A N D I N G ; 1 : 4 8 M A X . C R O S S - SL O P E ; F L U S H W I T H D R I V E 6" C O N C R E T E W H E E L S T O P T Y P . 2' CU R B R A M P W I T H 1 : 1 2 M A X S L O P E MI N . W I D T H C O N C R E T E W A L K W A Y 3" W I D E D I A G O N A L S T R I P I N G , W H I T E O R B L U E AC C E S S I B L E P A R K I N G S Y M B O L 3 6 " S Q . S E E 8 / - SI G N T Y P E B A B C ST R I P I N G F O R S I N G L E S T A N D A R D AC C E S S I B L E P A R K I N G ST R I P I N G F O R S T A N D A R D AC C E S S I B L E P A R K I N G ST R I P I N G F O R V A N AC C E S S I B L E P A R K I N G 18' MIN.5' 18' MIN.5' 2' 3' 3'3' TY P I C A L N O T E S : 12 " H I G H W H I T E L E T T E R I N G I N A C C E S S A I S L E SI G N T Y P E A 6' M I N . 3" W I D E B L U E S T R I P I N G A T PE R I M E T E R O F A C C E S S A I S L E SC A L E : AC C E S S I B L E P A R K I N G S P A C E S 1/ 1 6 " = 1 ' - 0 " 3' 6' M I N . RA M P DN . VA N P A R K I N G S P A C E S S H A L L B E P E R M I T T E D T O B E 1 0 8 I N C H E S ( 9 ' - 0 " ) WI D E M I N I M U M W H E R E T H E A C C E S S A I S L E I S 9 6 " ( 8 ' - 0 " ) W I D E M I N I M U M SI G N T Y P E A RA M P DN . RA M P DN . RA M P DN . RA M P DN . RA M P DN . UNAUTHORIZE D V E H I C L E S PARKED IN D E S I G N A T E D ACCESSIBLE S P A C E S N O T DISPLAYING DIS T I N G U I S H I N G PLACARDS O R S P E C I A L LICENSE PLA T E S I S S U E D FOR PERS O N S W I T H DISABILITIES W I L L B E T O W E D AWAY AT OWNE R S E X P E N S E . TOWED V E H I C L E S MAY BE REC L A I M E D A T OR BY TELE P H O N I N G SCALE: ACCESSIBLE PARKING SIGNAGE & UNAUTHORIZED VEHICL E S I G N A G E 1 1/2"=1'-0"SIGN TYPE A:ACCESSIBLE CAR PARKINGSPACE IDENTIFICATION SIGN TYPE B:ACCESSIBLE VAN PARKINGSPACE IDENTIFICATION SIGN T Y P E C : UNAUTHOR I Z E D V E H I C L E WARN I N G S I G N ACCESSIBLE PARKING IDENTIFICATIONSIGNAGE1.REFLECTORIZED SIGN SHALL BECONSTRUCTED OF PORCELAIN STEELWITH BEADED TEXT OR EQUAL2.LETTERS AND SYMBOLS TO BE WHITEON A DARK BLUE BACKGROUND3.SIGN TO BE CENTERED AT THEINTERIOR END OF PARKING SPACE4.CORNERS OF SIGN TO BE RADIUSED1/2" MINIMUM.THIS PORTION OF SIGN TOBE 70 SQUARE INCHESMINIMUM (TYPICAL)BOTTOM OF SIGNAGE:WHEN SIGN IS LOCATED IN A PATH OFTRAVEL, BOTTOM OF SIGN SHALL BE AMINIMUM OF 6'-8" ABOVE THE WALKINGSURFACE.WHEN LOCATED IN A LANDSCAPE AREAOR ON A WALL AT THE END OF THESPACE, THE BOTTOM OF SIGN SHALL BEAT 5'-0" ABOVE ADJACENT GRADE 17" MIN I M U M 24" RECOM M E N D E D 22" MINIMUM 24" RECOMMENDED UN A U T H O R I Z E D V E H I C L E W A R N I N G SI G N A G E 1A . M U S T B E P O S T E D C O N S P I C U O U S L Y A T EA C H E N T R A N C E T O O F F - S T R E E T PA R K I N G F A C I L I T I E S , O R 1B . P O S T E D I M M E D I A T E L Y A D J A C E N T T O AN D V I S I B L E F R O M EA C H A C C E S S I B L E ST A L L O R S P A C E . 2. T H E P H O N E N U M B E R O R A D D R E S S WH E R E T O W E D V E H I C L E S C A N B E RE C L A I M E D I S P O S T E D I N T H E AP P R O P R I A T E L O C A T I O N O N T H E S I G N AN D I S A P E R M A N E N T P A R T O F T H E SI G N . 3. T H E S I Z E O F T H E L E T T E R I N G I S A MI N I M U M O F 1 " I N H E I G H T . INSERT A D D R E S S INSERT TELEPH O N E N U M B E R 3' - 0 " 3'-0" NO T E : TH E C E N T E R L I N E O F T H E S Y M B O L S H A L L BE A M A X I M U M O F 6 " F R O M T H E CE N T E R L I N E O F T H E P A R K I N G S P A C E , IT ' S S I D E S P A R A L L E L T O T H E L E N G T H O F TH E S T A L L A N D I T S L O W E R C O R N E R A T , OR L O W E R S I D E A L I G N E D W I T H , T H E E N D OF T H E P A R K I N G S T A L L ( C B C 11 B - 5 0 2 . 6 . 4 . 1 ) PA I N T S Y M B O L W I T H T W O C O A T S H E A V Y DU T Y W H I T E T R A F F I C P A I N T BA C K G R O U N D T O B E T W O C O A T S H E A V Y DU T Y B L U E T R A F F I C P A I N T SC A L E : AC C E S S I B I L I T Y P A R K I N G S Y M B O L N. T . S . A1 . 0 1 SI T E P L A N PR O J E C T N O : DA T E DE S C R I P T I O N In A s s o c i a t i o n w i t h : A Facade Remodel and Building Addition for: 19900 STEVENS CREEK BLVD Cupertino, CA 95014 16 4 1 4 1 05 . 1 8 . 1 6 P L A N N I N G D E P T . S U B M I T T A L 09 . 1 9 . 1 6 P L A N N I N G D E P T . S U B M I T T A L 11 . 1 4 . 1 6 G E N . P L A N . A M E N D M E N T S U B M I T T A L PR O J E C T D A T A . ZO N I N G HE A R T O F T H E C I T Y S P E C I F I C P L A N - C E N T R A L P ( C G , R E S ) SI T E A R E A 83 , 7 4 7 S . F . / 1 . 9 2 A C R E S PR O P O S E D B U I L D I N G F O O T P R I N T 28 , 0 2 9 S . F . LO T C O V E R A G E 33 . 5 % EX I S T I N G L E A S A B L E A R E A 26 , 2 3 9 S . F . PR O P O S E D A D D I T I O N A L L E A S A B L E A R E A 1, 7 9 0 S . F . TO T A L L E A S A B L E A R E A 28 , 0 2 9 S . F . PA R K I N G A N A L Y S I S . PA R K I N G R E Q U I R E D : OF F I C E ( 1 / 2 8 5 S . F . ) 99 S P A C E S ON - G R A D E P A R K I N G P R O V I D E D ST A N D A R D 10 2 S P A C E S AC C E S S I B L E 4 S P A C E S VA N A C C E S S I B L E 1 S P A C E TO T A L P A R K I N G P R O V I D E D (3 . 8 / 1 0 0 0 ) 1 0 7 S P A C E S * *P O T E N T I A L P A R K I N G L O S S D U E T O I N G R E S S / E G R E S S E A S E M E N T ST A N D A R D -6 S P A C E S TO T A L P A R K I N G P R O V I D E D 10 1 S P A C E S BI C Y C L E P A R K I N G R E Q U I R E D : OF F I C E ( 1 / 1 , 2 5 0 S . F . ) 23 C L A S S I S P A C E S * * ** R E S T R I C T E D A C C E S S C L A S S I B I C Y C L E P A R K I N G A R E A T O B E PR O V I D E D I N B U I L D I N G I N T E R I O R A T T I M E O F T E N A N T IM P R O V E M E N T RE Q U I R E D N U M B E R O F A C C E S S I B L E P A R K I N G S T A L L S ( C B C T A B L E 1 1 B - 2 0 8 . 2 ) 10 1 - 1 5 0 5 CO M P L I A N T MI N I M U M R E Q U I R E D TO T A L P A R K I N G S P A C E S YE S SC A L E : SI T E P L A N 1/ 1 6 " = 1 ' - 0 " KE Y N O T E S 123 EX I S T I N G M O N U M E N T S I G N T O R E M A I N OU T D O O R A M E N I T Y S P A C E 4 EX I S T I N G P A R K I N G L O T S T R I P I N G , T Y P . 5 EX I S T I N G 6 " C O N C R E T E C U R B , T Y P . WA L K W A Y A N D H A R D S C A P E , R E F E R T O L A N D S C A P E A N D C I V I L D R A W I N G S 7 TR A S H C O M P A C T O R 9 EX I S T I N G P A V I N G 10 8 EX I S T I N G L O A D I N G Z O N E 6 PR O P E R T Y L I N E 11 EX I S T I N G L A N D S C A P E A R E A AC C E S S I B L E P A T H O F T R A V E L S H O W N D A S H E D 12 EX I S T I N G P A R K I N G L O T L I G H T S EX I S T I N G T R A N S F O R M E R 13 3 6 12 SI T E W A L L 0' 5 ' 1 0 ' 20 ' 14 IN G R E S S / E G R E S S E A S E M E N T 15 DE C O R A T I V E P A V I N G 22 4 12 11 10 9 8 7 6 5 4 3 2 1 ABC D E F G H K J 1 A3 . 0 1 2 A3 . 0 1 7 A3 . 0 1 8A3.01 1 TY P . 2 1 TY P . 36 4 TY P . 1 TY P . 1TYP.1TYP.75 TY P . 5 TY P . 5TYP. 3 PR O P O S E D O F F I C E A R E A A2 . 1 1 FI R S T L E V E L F L O O R P L A N KE Y N O T E S . NO T A L L K E Y N O T E S M A Y A P P L Y 12 1" I N S U L A T E D L O W E G L A Z I N G S Y S T E M W I T H C L E A R GL A S S I N A L U M I N U M F R A M E S W I T H B U T T G L A Z E D VE R T I C A L J O I N T S BR I C K C L A D D I N G O V E R M E T A L S T U D F R A M E 34 LI N E O F C A N O P Y A B O V E S H O W N D A S H E D NE W E N T R Y D O O R S 5 EX I S T I N G B R I C K C L A D W A L L S T O R E M A I N , P O W E R W A S H TR A S H C O M P A C T O R 67 EX I S T I N G C O N C R E T E T I L T - U P P A N E L S , P A I N T PR O J E C T N O : DA T E DE S C R I P T I O N In A s s o c i a t i o n w i t h : A Facade Remodel and Building Addition for: 19900 STEVENS CREEK BLVD Cupertino, CA 95014 16 4 1 4 1 05 . 1 8 . 1 6 P L A N N I N G D E P T . S U B M I T T A L 09 . 1 9 . 1 6 P L A N N I N G D E P T . S U B M I T T A L 11 . 1 4 . 1 6 G E N . P L A N . A M E N D M E N T S U B M I T T A L SC A L E : PR O P O S E D F L O O R P L A N 3/ 3 2 " = 1 ' - 0 " 22 5 0'-0"+10'-0"+16'-0" +2 0 ' - 6 " 1 TY P . 1TYP. 3 TY P . 4 TY P . 5 3 TY P . 8 9 7 TY P . 10 TY P . 0'-0"-+16'-0"+20'-6"3TYP. 3 TY P . 4TYP.0'-0"+20'-6"+16'-0"+10'-0"+19'-0"5 3 TY P . 7TYP.4TYP. 1 TY P . 1 TY P . 1TYP. 6 80'-0"-+16'-0" 0' - 0 " -2 ' - 8 " +20'-6" 3 TY P . 1TYP.1TYP.8 9 A3 . 0 1 EX T E R I O R E L E V A T I O N S KE Y N O T E S . NO T A L L K E Y N O T E S M A Y A P P L Y 12 ST U C C O I N F I L L , P A I N T AL U M I N U M C O M P O S I T E M E T A L P A N E L C A N O P Y 45 EN T R Y D O O R 6 1" I N S U L A T E D L O W E G L A Z I N G S Y S T E M W I T H C L E A R G L A S S I N A L U M I N U M F R A M E S W I T H B U T T G L A Z E D V E R T I C A L JO I N T S 7 3 EX I S T I N G B R I C K F A C A D E , P O W E R W A S H AL U M I N U M C O M P O S I T E P A R A P E T C A P EX I S T I N G C O N C R E T E T I L T - U P P A N E L , P A I N T 8 BR I C K C L A D C O L U M N A N D P A R A P E T LO A D I N G D O C K A N D T R A S H C O M P A C T O R E N C L O S U R E 9 SM O O T H C O A T S T U C C O C O A T I N G O V E R E X I S T I N G C O N C R E T E T I L T - U P P A N E L , P A I N T 10 PR O J E C T N O : DA T E DE S C R I P T I O N In A s s o c i a t i o n w i t h : A Facade Remodel and Building Addition for: 19900 STEVENS CREEK BLVD Cupertino, CA 95014 16 4 1 4 1 05 . 1 8 . 1 6 P L A N N I N G D E P T . S U B M I T T A L 09 . 1 9 . 1 6 P L A N N I N G D E P T . S U B M I T T A L 11 . 1 4 . 1 6 G E N . P L A N . A M E N D M E N T S U B M I T T A L SC A L E : EA S T E X T E R I O R E L E V A T I O N 1 1/ 8 " = 1 ' - 0 " SC A L E : WE S T E X T E R I O R E L E V A T I O N 2 1/ 8 " = 1 ' - 0 " SC A L E : NO R T H E X T E R I O R E L E V A T I O N 7 1/ 8 " = 1 ' - 0 " SC A L E : SO U T H E X T E R I O R E L E V A T I O N 8 1/ 8 " = 1 ' - 0 " 22 6 0'-0"-+16'-0"+20'-6"0'-0"-+16'-0" 0' - 0 " -2 ' - 8 " +20'-6"0'-0"+20'-6"+16'-0"+10'-0"+19'-0"0'-0"+10'-0"+16'-0" +2 0 ' - 6 " SCALE: 1EXISTING WEST ELEVATION1/8" = 1'-0"SCALE: 1EXISTING SOUTH ELEVATION1/8" = 1'-0"SCALE: 1EXISTING NORTH ELEVATION1/8" = 1'-0"SCALE: 1EXISTING EAST ELEVATION1/8" = 1'-0" 22 7 B1 M1 P1 G1 G1 G1 B1 P1 G1 G1 M1B1 M1 P1 G1 P1 G1 A3 . 1 1 RE N D E R E D E X T E R I O R E L E V A T I O N S FI N I S H L E G E N D . AL U M I N U M C O M P O S I T E M E T A L P A N E L : MA N U F A C T U R E R : R E Y N O B O N D SE R I E S : CO L O R W E L D 5 0 0 FI N I S H : SI L V E R S M I T H 1" I N S U L A T E D L O W E G L A Z I N G S Y S T E M W I T H C L E A R G L A S S I N A L U M I N U M F R A M E S WI T H B U T T G L A Z E D V E R T I C A L J O I N T S : MA N U F A C T U R E R : V I R A C O N CO L O R : CL E A R - 1 PA I N T : MA N U F A C T U R E R : D U N N E D W A R D S CO L O R : DE 6 3 6 6 S I L V E R S P O O N G1M1 P1 TH I N B R I C K V E N E E R : MA N U F A C T U R E R : B E L D E N O R E Q U I V . CO L O R : MA T C H E X I S T I N G B1 PR O J E C T N O : DA T E DE S C R I P T I O N In A s s o c i a t i o n w i t h : A Facade Remodel and Building Addition for: 19900 STEVENS CREEK BLVD Cupertino, CA 95014 16 4 1 4 1 05 . 1 8 . 1 6 P L A N N I N G D E P T . S U B M I T T A L 09 . 1 9 . 1 6 P L A N N I N G D E P T . S U B M I T T A L 11 . 1 4 . 1 6 G E N . P L A N . A M E N D M E N T S U B M I T T A L SC A L E : EA S T E X T E R I O R E L E V A T I O N 1 1/ 8 " = 1 ' - 0 " SC A L E : WE S T E X T E R I O R E L E V A T I O N 2 1/ 8 " = 1 ' - 0 " SC A L E : NO R T H E X T E R I O R E L E V A T I O N 7 1/ 8 " = 1 ' - 0 " SC A L E : SO U T H E X T E R I O R E L E V A T I O N 8 1/ 8 " = 1 ' - 0 " 22 8 A3 . 3 1 EX T E R I O R R E N D E R I N G PR O J E C T N O : DA T E DE S C R I P T I O N In A s s o c i a t i o n w i t h : A Facade Remodel and Building Addition for: 19900 STEVENS CREEK BLVD Cupertino, CA 95014 16 4 1 4 1 05 . 1 8 . 1 6 P L A N N I N G D E P T . S U B M I T T A L 09 . 1 9 . 1 6 P L A N N I N G D E P T . S U B M I T T A L 11 . 1 4 . 1 6 G E N . P L A N . A M E N D M E N T S U B M I T T A L SC A L E : VI E W F R O M D R I V E W A Y E N T R Y T O S I T E 1 NT S 22 9 PROPERTY LINE 120'-0" TO PROPERTY LINE PROPERTY LINE 40 ' - 0 " T O P R O P E R T Y L I N E ST E V E N S C R E E K BL V D A4 . 0 1 SI T E S E C T I O N PR O J E C T N O : DA T E DE S C R I P T I O N In A s s o c i a t i o n w i t h : A Facade Remodel and Building Addition for: 19900 STEVENS CREEK BLVD Cupertino, CA 95014 16 4 1 4 1 05 . 1 8 . 1 6 P L A N N I N G D E P T . S U B M I T T A L 09 . 1 9 . 1 6 P L A N N I N G D E P T . S U B M I T T A L 11 . 1 4 . 1 6 G E N . P L A N . A M E N D M E N T S U B M I T T A L SC A L E : SI T E S E C T I O N 1 1/ 1 6 " = 1 ' - 0 " 23 0 PROJECT NO: DATE DESCRIPTION In Association with: A N e w P r o j e c t f o r : 19 9 0 0 S T E V E N S C R E E K B L V D Cu p e r t i n o , C A 9 5 0 1 4 164141/KLA 16-1820 05.18.16 PLANNING DEPT. SUBMITTAL www.knoxla.com S T ATE OF CAL I F O R N IA L ICENSE D L A N DSCAPE AR C H I T E CT Renewal Date Date Signature THO M A S W . HOLLOWAY # 3 5 8 9 151 N. Norlin St., Sonora, CA 95370 (209)532-2856 (209)532-9510 fax Monument sign with low growing accent plantsDiagonal cobble strips to create bands through the landscape and separation between plant species Alternating rows of low ornamental grass species with a variety of form, color, and texture Low curved wall around grove of existing Canary Island Pines Existing Pines and Redwoods to remain along the west side of the building Street sidewalk Parkway strip with low growing groundcover Large spreading street trees at approximately 40' on center Sidewalk connection to the public right of way Seat wall Circular patio with furniture Bands in the landscape continue through the patio Accent paving to the front door Curved seat wall at main entry Enhanced paving at the main entry reflecting the landscape strips in the other areas of the property Small upright flowering tree New formal row of upright trees along the face of the building to replace the existing - coordinated with window locations Evergreen hedge to screen the loading area Shade trees throughout the parking lot and perimeter of the property Shrubs along the base of the building Low seat wall Enhanced paving patio space with accent bands Low curved seat wall with opening for the walkway Shade trees throughout the parking lot and perimeter of the property Outdoor fire place with seating area around Tall evergreen hedge or Greenscreen fence Large spreading shade tree - accent lighting Landscape Areas Total Planting Area Turf Area Medium Water Use Shrub Area Low Water Use Shrub Area D.G. and Cobble Area Size of Parcel: Percentage of Parcel in Landscape: 17,812 sf 0 sf 3,259 sf 13,035 sf 1,518 sf 83,748 sf (1.92 acres) 21.3% All trees within 5' of curb or sidewalk are to have a linear DeepRoot Model #UB 18-2 root barriers installed during tree installation along the inside edge of the adjacent curb or sidewalk. The following minimum number of panels are to be installed with each tree on each side of the tree that has sidewalk or curb as denoted on the plans: 15 gallon trees 5 panels 24" box trees 6 panels 36" box trees 8 panels Tree sizes not listed above are to be installed with the quantity of panels as specified by the manufacturer. Tree Root Barriers 2"-3" deep layer of Tan Decomposed Granite (D.G.) with steel edging - 1,112 sf. 2"-3" diameter ornamental cobble with steel edging - 406 sf. Non-Living Groundcover WELO Water Use Calculations 1 2 3 176,814 Gallons17,812 sfTOTAL ETO for Cupertino 45.3 Shrubs Shrubs Cobble/DG Medium Low None 0.5 0.3 0 3,259 13,035 1,518 18.3% 73.2% 8.5% Low Flow Bubbler Low Flow Bubbler No Irrigation .88 .88 1 52,007 124,807.2 0 Maximum Applied Water Allowance (MAWA)225,120.5 gallon/year Estimated Total Water Usage (ETWU)176,814 gallon/year Average Irrigation Efficiency .88 ETWU is less than MAWA, therefore water usage as designed exceeds code requirements The following calculations represent the intended hydrozones and water usage as designed with this Preliminary Landscape Plan. As we move through the design process we anticipate minor adjustments/revisions of these calculations. However, compliance with WELO code requirements will always remain. Project Location Not to scaleVicinity Map S. B L A N E Y A V E . STEVENS CREEK BLVD. Irrigation The entire site will be irrigated using a fully automatic system and designed to meet the City's Water Efficient Landscaping Ordinance (WELO). The irrigation system will largely be low-volume design with low flow bubblers and/or drip emitters. Trees will be irrigated on separate circuits from the shrubs. The system will include in-line valves, quick couplers, and gate valves. The irrigation controller will be a "smart" controller by Rainbird, Toro, Hunter, or equal. A complete irrigation design with these parameters will be provided with the submittal of building permit plans. See the WELO calculations in the lower right of this sheet. Shrubs Groundcovers Spreading Groundcover- 1 gal. @ 3'-5' O.C. Archtostaphylus 'Emerald Carpet'Manzanita Baccharis pilularis Dwarf Coyote Bush Ceanothus gresius horizontalis Carmel Creeper Cotoneaster dammeri 'Lowfast'Cotoneaster Juniperus sabina 'Cultivars'Juniper Trachelospermum asiaticum Star Jasmine Low Accent Plants in Formal Placement - 1 gal. @ 24"-36" O.C. Aloe saponaria Soap Aloe Carpobrotus edulis Hottentot Fig Senecio mandraliscae Senecio Large Screening Shrubs - 15 gal., 5 gal. @ 5' O.C. Cuppressus sempervirens 'Tiny Towers' Dwarf Italian Cypress Podocarpus macrophyllos maki Long-Leaf Yellow-wood Prunus caroliniana 'Bright 'N Tight' Carolina Laurel Cherry Thuja occidentalis 'Emerald' American Arborvitae Evergreen vine on Greenscreen or wire fence - 6' tall Background Shrub - 5 gal. @ 6'-7' O.C. Arctostaphyllos densiflora 'Howard McMinn'Manzanita Echium fastousum Pride of Madiera Leucophyllum frutescens 'Texas Ranger'Leucophyllum Rosmarius officinalis 'Majorca Pink' Rosemary Formal Hedge - 5 gal. @ ±3'-4' O.C. Chondropetalum elephantinum Cape Rush Myrtus communis 'Compacta'Myrtle Olea europea 'Little Ollie'Little Ollie Olive Rhaphiolepis umbellata 'Minor'Yeddo Hawthorne Rosmarius officinalis 'Miss Jessups Upright'Rosemary Accent Shrubs and Grass-like Plants - 5 gal. @ 3'-4' O.C. Agave 'Blue Glow'Century Plant Aloe saponaria Soap Aloe Anigozanthos hybridus Kangaroo Paw Callistemon viminalis 'Little John'Bottlebrush Dianelle tasmanica Flax Lily Hesperaloe parviflora Red Yucca Salvia species Sage Zauschneria californica California Fuchsia The Preliminary Plant Palette represents a sampling of the types of shrubs, groundcovers, and vines that we anticipate to be appropriate for the location as well as the design style and overall theme. This is the list from which plant selection will be drawn from. Not all plants listed within this plant palette will be used in the final design and some plants not listed may be introduced. However, the planting design intent will remain consistent with this plan and plant palette. Parking Lot Planting of Shrubs and Grass-like Plants - 1 gal. and 5 gal. @ 3' O.C. Astelia cathamica 'Silver Shadow'Compact Astelia Bouteloua gracilis Blue Gamma Grass Calamagrostic acutifolia 'Karl Forester'Dwarf Feather Reed Grass Muhlenbergia capilaris Pink Muhly Muhlenbergia rigens Deer Grass Nassella tennuissima Dwarf Mexican Feather Grass Pennisetum orientale Dwarf Fountain Grass N. B L A N E Y A V E . PO R T A L A V E . The landscape design concept for the new office building is to provide an enjoyable and aesthetic space for the employees and guests that fits within the landscape framework of the surrounding area. Plant material has been selected that performs well in the special conditions of the South Bay (Sunset Zone #15). No new turf areas are being added. Low and medium water-use hardy trees, shrubs, grasses, and groundcover are proposed for the landscape around building. The landscape (and associated irrigation) has been designed to be compliant with City of Cupertino Water Efficient Landscape Ordinance. Special considerations have been provided in selection of plant material that respects the needs of the office users as well as the guests. Clear and secure view corridors have been provided to ensure safety of people entering the building as well as moving around the site. Landscape Concept Alternating Rows of Low Accent Plants - 1 gal. @ 24"-36" O.C. Astelia cathamica 'Silver Shadow'Compact Astelia Bouteloua gracilis Blue Gamma Grass Festuca ovina glauca Common Blue Fescue Festuca mairei Marie's Fescue Hemerocallis species Day Lily Nassella tennuissima Dwarf Mexican Feather Grass Teucrium chamaedrys Germander Low Flowering Accent Plantings - 1 gal. @ 12"-24" O.C. Armeria maritima Sea Thrift Delosperma cooperi Ice Plant Trachelospermum asiaticum Star Jasmine Spreading Shrubs Under Existing Pines - 1 gal. and 5 gal. @ 48" O.C. Baccharis pilularis Dwarf Coyote Bush Ceanothus gresius horizontalis Carmel Creeper Cotoneaster dammeri 'Lowfast'Cotoneaster Juniperus sabina 'Cultivars'Juniper Existing trees to remain - greater than 6" DBH Existing trees to be removed - greater than 6" DBH Existing trees less than 6" DBH - all to be removed Groundcovers Preliminary Plant Palette Existing wood fence to remain Existing wall/fence to remain Street Trees - 24"-Box @ ±40' O.C. Acer rubrum 'October Glory'October Glory Maple Brachychiton populneus Bottle Tree Pyrus calleryana 'Chanticleer'Chanticleer Pear Parking Lot Trees - 24"-Box Pistachia chinensis 'Keith Davey'Chinese Pistache Quercus coccinea Scarlet Oak Ulmus parvifolia Evergreen Elm Upright Perimeter Trees - 15-gal / 24"-Box Laurus noblis 'Saratoga'Saratoga Laurel Melaleuca quinquenervia Pepperbark Tree Quercus Ilex Holly Oak Rhus lancea African Sumac Tristania laurina Water Gum Narrow Upright Accent Trees- 15-Gal / 24"-Box Brachychiton populneus Bottle Tree Carpinus betulus 'Fastigata'Hornbeam Lagerstroemia indica Crape Myrtle Small Flowering Accent Trees - 24"-Box Cercis occidentalis Western Redbud Chilopsis linearis Desert Willow Lagerstroemia indica Crape Myrtle Narrow Accent Trees - 15-gal / 24"-Box Acacia stenophylla Shoestring Acacia Geijera parvifolia Australian Willow Magnolia grandiflora 'Little Gem'Southern Magnolia Spreading Focal Point Tree - 36"-Box Schinus molle California Pepper Tree Ulmus parvifolia Evergreen Elm Stormwater management system per Civil Engineer 25 11.14.16GEN. PLAN. AMENDMENT SUBMITTAL 231 11.14.16GEN. PLAN. AMENDMENT SUBMITTAL 232 11.14.16GEN. PLAN. AMENDMENT SUBMITTAL 233 11.14.16GEN. PLAN. AMENDMENT SUBMITTAL 234 235 236 237 238 239 M EMORANDUM To: Gian Martire, City of Cupertino From: Economic & Planning Systems, Inc. Subject: Fiscal Analysis of 19900 Stevens Creek Boulevard General Plan Amendment Application; EPS #161195 Date: February 10, 2017 The City of Cupertino retained Economic & Planning Systems, Inc. (EPS) to prepare this impact analysis of an application for a General Plan Amendment (GPA). The site currently is occupied by a 26,000-square foot furniture store. The applicant is requesting an increase of 16,000 square feet of office allocation to be added to the Heart of the City Specific Plan area to allow a change of use from retail to office. With the existing allocation available in the Heart of the City Specific Plan and the additional allocation requested, the applicant could bring either a business start-up incubator or a medical office tenant to the site. In addition to the use change to office, the proposal calls for increasing the square footage of the existing building from 26,000 to 28,125 by enclosing and finishing an existing arcade. This EPS analysis assesses both proposed tenant alternatives:  Start-up Business Incubator and  Medical Office. The Summary of Findings below presents the estimated economic impact of each alternative. The detailed calculations that follow document the Start-up Business Incubator alternative, which is identified as marginally more fiscally burdensome than the medical office alternative. Consistent with previous EPS fiscal analyses of GPA applications, this study focuses on the effect of the proposed development on the City of Cupertino’s General Fund. The objective of the analysis is to quantify whether the proposed GPA will generate adequate revenues to cover the costs of providing ongoing services to the project. The analysis does not consider the impact of the proposal on potential capital facilities cost requirements or other one-time costs. The analysis compares the impact 240 Memorandum February 10, 2017 Cupertino GPA Fiscal Impact Review Page 2 P:\161000s\161195CupertinoGPA\Deliverable\161195_Cupertino GPA Memo_02.10.17.docx of the proposed GPA alternatives at buildout to the baseline impact of the existing use in the project area. Actual fiscal impacts will depend on a number of factors that cannot be predicted with certainty, including the market performance of the project, future changes in City or State budgeting practices, and the efficiency of various City departments in providing services. Key analytical inputs and assumptions used in this analysis are from the development application, City documents, information from City staff, and EPS industry knowledge. Summary of Findings 1. The proposed project is likely to result in a modest annual net fiscal burden on the City of Cupertino’s General Fund. This analysis estimates that the net annual fiscal impact of the GPA proposal on the City’s General Fund is approximately negative $33,000 to negative $36,000. The incubator is likely to generate more tax revenue and more cost to the City, as compared to the medical office alternative. This finding is largely attributable to the anticipated employment density that would be achieved with an incubator tenant. Table 1 Fiscal Impact Comparison 2. An incubator office project likely would generate more tax revenue than the existing furniture store, but also would create more service cost for the City. This analysis estimates that the net annual fiscal impact of a business incubator on the General Fund is approximately negative $36,000, as shown in Table 2. The net increase in General Fund revenues from the project at buildout is estimated at roughly $3,000 more annually than existing uses. However, the net increase in General Fund expenditures is estimated at approximately $39,000 more per year than the current use. If the assessed value of the project is higher than anticipated by this analysis, consistent with the applicant’s estimates, the net fiscal impact of the GPA would be negative $30,000. Sensitiivty Scenario Fiscal Impact at Project Buildout Fiscal Impact Baseline1 Net Fiscal Impact1 Start-up Incubator $0$36,000-$36,000 Medical Office $3,000$36,000-$33,000 (1) This is an estimate of the fiscal impact of the existing furniture store, calculations are detailed in Table 13 241 Memorandum February 10, 2017 Cupertino GPA Fiscal Impact Review Page 3 P:\161000s\161195CupertinoGPA\Deliverable\161195_Cupertino GPA Memo_02.10.17.docx Table 2 Fiscal Impact Summary – Start-Up Incubator 3. The estimated fiscal burden to the City would be marginally less if the tenant of the proposed office space is a medical office user. If the applicant is successful in its negotiations with a medical office end user, the net fiscal burden to Cupertino’s General Fund could be slightly reduced from the results shown in Table 2 above. This alternative likely has a lower revenue generation and lower cost implications for the General Fund, as compared with the incubator alternative. A medical office use is anticipated to operate at a notably lower density of employment. The net fiscal impact of the medical office tenant scenario would be negative $33,000 per year, as shown in Table 3. Table 3 Fiscal Impact Summary - Medical Office Fiscal Impact on the General Fund This section describes the methodology and key assumptions used to estimate the fiscal impacts of the proposed GPA. The analysis is based on information from three key sources: (1) the GPA application material submitted (2) interviews with City planning and finance staff (3) EPS research and industry knowledge EPS has developed a fiscal impact framework based on its in-house methodology and Cupertino- specific factors. EPS has not conducted an independent audit of the City’s budget, performed in- Revenue / Expense Category Fiscal Impact at Project Buildout Fiscal Impact Baseline Net Fiscal Impact General Fund Revenues$40,000$37,000$3,000 General Fund Expenditures$40,000 $1,000 $39,000 Net Impact on General Fund $0$36,000-$36,000 Revenue / Expense Category Fiscal Impact at Project Buildout Fiscal Impact Baseline Net Fiscal Impact General Fund Revenues$27,000$37,000-$10,000 General Fund Expenditures$24,000 $1,000 $23,000 Net Impact on General Fund $3,000$36,000-$33,000 242 Memorandum February 10, 2017 Cupertino GPA Fiscal Impact Review Page 4 P:\161000s\161195CupertinoGPA\Deliverable\161195_Cupertino GPA Memo_02.10.17.docx depth interviews with service-providing City departments, or conducted detailed market analysis. EPS fiscal estimates differ from those provided by the applicant due to the differences in methodology. There are two notable differences between the studies. First, the applicant’s projection does not include an estimate of fiscal costs associated with the project and therefore is not a complete fiscal impact estimate. The second main difference in methodologies is that the EPS analysis is only considers fiscal revenues that accrue to the City of Cupertino’s General Fund (i.e., only a portion of total sales tax and property tax revenue), while the applicant’s analysis includes all property tax and sales tax revenue. In reality, much of the revenue generated through property taxes and sales taxes will be distributed to public entities other than the City. Proposed General Plan Amendment The applicant is proposing a use change and slight intensification of a 26,000-square foot retail space on a 1.92-acre property located at 19900 Stevens Creek Boulevard. The proposal envisions increasing the square footage of the existing commercial space to 28,125 square feet and changing the use from retail to office. According to the GPA application, the applicant has been in negotiations with two potential end users, a business start-up incubator and a medical office operation. The supporting table set below presents the analysis of the business start-up incubator. Analysis of the medical office and existing use rely on the same basic methodology. Table 4 presents the proposed GPA program identified by the applicant. The table also presents EPS assumptions concerning the population and employment that would be supported by the project at buildout. A variety of revenues and costs included in this fiscal analysis are based on the anticipated “service population” which weights a local employee’s service burden at 50 percent of a resident’s burden. Table 4 Development Program and Service Population General Fund Revenues General Fund tax proceeds attributable to the proposed GPA will include sales tax, property tax, property tax in lieu of vehicle license fee (VLF), property transfer tax, utility user tax, franchise fees, and business licenses. Table 5 provides a summary of the Cupertino 2015-16 Adopted General Fund revenue budget and a description of the forecasting method relied upon for each relevant revenue source. Item Forumula Assumption / Units Start-Up Incubator Space a 28,125 SF Worker Density b 150 SF / Employee Employment Estimate c = a / b 188 Service Population (1)d = c * .50 94 (1) Per-person employee burden on City services is weighted at 50 percent of residential burden. 243 Memorandum February 10, 2017 Cupertino GPA Fiscal Impact Review Page 5 P:\161000s\161195CupertinoGPA\Deliverable\161195_Cupertino GPA Memo_02.10.17.docx Table 5 FY2015 - 16 Revenue Budget Summary and Fiscal Impact Estimating Factors FY2015-16 Total Sales Tax Business to Business Sales Tax (1)$13,905,880$0.20per square foot of office Other Sales Tax$6,454,1201.0%of estimated taxable sales Property Tax Property Tax in Lieu of VLF (2)$5,782,5412.1%of Citywide Assessed Value Other Property Tax$10,272,4595.8%of base property tax rate (1%) Transient Occupancy Tax$5,072,00012%of total TOT revenue Utility Tax$3,100,0003.4%of utility bills Franchise Fees $2,800,000$37.98per service population Other Taxes (3) Construction Tax$2,147 - not estimated Business License$512,649$18.34per employee Property Transfer Tax$553,860$0.55per $1,000 in value Other Taxes$331,344 - not estimated Licenses & Permits $6,171,000 - not estimated Fines & Forfeitures$550,000 - not estimated Use of Money & Property $742,530 - not estimated Intergovernmental$600,000 - not estimated Charges for Services$10,590,878 - not estimated Miscellaneous$720,895 - not estimated Total Revenues$68,162,303 (2) FY2015-16 total reflects 36% allocation of the property tax total. Budget detail provided by the City. (3) FY2015-16 total reflects allocation of other taxes based on detail provided by the City. Estimating FactorsItem (1) FY2015-16 total reflects 68% allocation of the sales tax total. Budget detail provided by the City. Estimating factor reflects typical business-to-business sales tax generation in Silicon Valley offices. 244 Memorandum February 10, 2017 Cupertino GPA Fiscal Impact Review Page 6 P:\161000s\161195CupertinoGPA\Deliverable\161195_Cupertino GPA Memo_02.10.17.docx Retail Sales Tax Revenue The proposed GPA is expected to generate retail sales tax revenue accruing to the City of Cupertino through the daily project employee spending on retail goods and services in the City of Cupertino.1 This analysis estimates worker spending based on spending patterns reported in the Office-Worker Retail Spending in a Digital Age, a research publication from the International Council of Shopping Centers (ICSC).2 These survey data were reviewed to identify taxable spending. The analysis estimates that each office worker spends about $6,000 annually on taxable sales in the vicinity of their workplace.3 Because this spending is known to be near work, this analysis assumes that 50 percent of the taxable spending by project workers occurs within the city boundary. The taxable spending captured in Cupertino is multiplied by the number of workers supported by the proposed project. Taxable sales in Cupertino are subject to a sales tax rate of 8.75 percent. However, only 1 percentage point of the sales tax accrues to the City’s General Fund, while the rest goes to the State and other public entities. Table 6 Retail Sales Tax Revenue 1 Business-to-business (B2B) sales tax revenue is estimated in Table 10. 2 Michael P. Niemira and John Connolly, International Council of Shopping Centers. “Office-Worker Retail Spending in a Digital Age,” 2012. Accessed online at: https://www.downtowndevelopment.com/pdf/icsc-report_office-worker-spending.pdf 3 The analysis assumes that retail workers spend less, a factor that applies to the estimated fiscal impact of the existing retail store (i.e., baseline estimate). Item Annual Total at Buildout Project Employee Retail Purchases in Cupertino Daily Office Worker Taxable Spending (1)$25.00per work day Annual Office Worker Taxable Spending240 workdays / year$6,000 Cupertino Spending Capture50%$3,000 Office Workers 188 Daily Retail Worker Taxable Spending $16.67per work day Annual Retail Worker Taxable Spending 240 workdays / year$4,000 Cupertino Spending Capture50%$2,000 Retail Workers 0 Worker Taxable Spending in Cupertino$562,500 Total Retail Sales Tax Revenue 1.0%of taxable sales $5,625 (1) ICSC Research in 2012; inflated to current dollars. Assumptions 245 Memorandum February 10, 2017 Cupertino GPA Fiscal Impact Review Page 7 P:\161000s\161195CupertinoGPA\Deliverable\161195_Cupertino GPA Memo_02.10.17.docx Property Tax Revenue Property tax revenue is based on the estimated assessed value of the proposed project. Relying on the applicant’s proposed development program, EPS estimates the project’s assessed value at $14.17 million at buildout, as shown in Table 7. Since there is no indication that the property will turn over, a complete reassessment of the land and improvements will not be triggered by the Santa Clara County Office of the Assessor. Rather, the value of the interior improvements to accommodate the use modification and the value of the additional construction will be estimated by the County Assessor’s Office and added to the existing value of the property.4 The City’s General Fund captures 5.8 percent of the base 1.0 percent property tax rate. This tax rate factor is specific to the tax rate area that covers the project location. Table 7 Property Tax Revenue 4 Note that the applicant’s proposal indicates roughly $7.7 million in improvement cost while our analysis relies on typical office fit out and construction cost estimates which total $1.1 million. Item Total Assessed Value Estimate Existing Land and Improvement Value $12,100,000 Interior Improvements for Use Change (1)$60Square Foot$1,560,000 Value of Addition (2)$240Square Foot$510,000 Total Assessed Value $14,170,000 Property Tax1.0%Base Property Tax Rate$141,700 Cupertino General Fund Revenue (3)5.8%Allocation to Cupertino General Fund $8,199 Property Tax In Lieu of VLF Existing Citywide Property Tax in Lieu of VLF $5,782,541 Citywide Assessed Value (4)$19,200,000,000 Project Net Assessed Value Increase (5)0.07% Property Tax In Lieu of VLF Revenue (6)$4,268 (1) EPS review of cost estimates for office fit-out. (2) RS Means, construction cost estimate (3) Per Santa Clara County Tax Collector AB8 factor (post ERAF). (4) FY2014-2015 value based on the Santa Clara County Assessor Annual Assessor's Report. (6) Calculated by multiplying existing property tax in lieu of VLF by project net assessed value increase. Assumption / Factor (5) Calculated by dividing the new assessed value by citywide assessed value. 246 Memorandum February 10, 2017 Cupertino GPA Fiscal Impact Review Page 8 P:\161000s\161195CupertinoGPA\Deliverable\161195_Cupertino GPA Memo_02.10.17.docx Property Tax In Lieu of VLF In 2004, the State of California adjusted the method for sharing VLF with local jurisdictions. Recent State budget changes replaced the VLF with property tax, which grows proportionately with increases in assessed value of the City. The proposed project will add about 0.07 percent to the current assessed value in Cupertino (assuming no other assessed value growth for simplification purposes) and will generate the same increased percentage in in-lieu VLF revenues (see Table 7). Property Transfer Tax The project will generate real estate transfer tax revenue associated with future turnover in ownership. This analysis assumes that ownership of all land use types will turnover every 25 years, an annual turnover rate of 4.0 percent.5 Unlike existing property tax for this project, the transfer tax will be based on market value of the property achieved in a transaction. The property transfer tax rate accruing to the City General Fund is $0.55 per $1,000 of the property value, as shown in Table 8. Table 8 Property Transfer Tax Revenue 5 For institutional investors of commercial real estate a typical holding period is five to seven years (Ciochetti and Fisher, 2002). This analysis assumes a significantly longer holding period due to the property tax benefits of long-term ownership in California. Item Annual Total at Buildout Property Value1 Office $600Per Square Foot$16,875,000 Retail $600Per Square Foot $0 Total $16,875,000 Average Annual Turnover General Office 4.0%$675,000 Retail 4.0%$0 Subtotal $675,000 Property Transfer Tax Revenue $0.55per $1,000 in value $370 Assumption / Factor [1] This table is reporting estimated market value rather than the project's assessed value which is shown on Table 7. 247 Memorandum February 10, 2017 Cupertino GPA Fiscal Impact Review Page 9 P:\161000s\161195CupertinoGPA\Deliverable\161195_Cupertino GPA Memo_02.10.17.docx Utility Tax The City of Cupertino collects tax revenue on utility charges for services provided in the City. New residents and employees will expand the use of utilities in the City. This analysis estimates an average monthly utility expense of $120 per employee. The City of Cupertino collects 3.4 percent of utility charges. Table 9 presents utility user tax revenue attributable to the proposed project at buildout. Table 9 Utility User Tax Revenue Revenues from Other Taxes and Fees In addition to the key revenues described above, other taxes and fees are estimated to be generated by the project. Specifically, EPS forecasts additional business-to-business sales for office uses, new franchise fees, and new business license revenues generated by commercial activity associated with the project. This analysis assumes that office uses generate an average of roughly $20 per square foot in business-to-business sales, which translates to $0.20 per square foot in sales tax revenue.6 This assumption is reflective of a typical office tenant in the Silicon Valley and is believed to hold true for business start-up incubators. Franchise fee revenue and business license revenue reflect averages derived from City budget documents (see Table 5). Table 10 presents forecasting assumptions and revenue estimates. 6 Business-to-business sales and tax revenue estimates reflect the findings of prior EPS analyses conducted in Menlo Park and Palo Alto. Annual Total at Buildout Commercial Total Employees188 employees Monthly Utility Cost $120per employee per month Annual Total $270,000 Total Annual Utility Expenses $270,000 Utility User Tax Revenue 3.4%of utility bill $9,180 Assumption 248 Memorandum February 10, 2017 Cupertino GPA Fiscal Impact Review Page 10 P:\161000s\161195CupertinoGPA\Deliverable\161195_Cupertino GPA Memo_02.10.17.docx Table 10 Revenue from Other Taxes and Fees General Fund Expenditures This fiscal analysis estimates the costs attributable to employment growth by characterizing how expenses will change for each City department. For some departments, employment growth in the City will not dramatically alter operations. For example, administrative functions in the City are not likely to scale up significantly to accommodate new projects. Alternatively, departments that provide services directly to businesses likely will increase their operations and costs to accommodate new employment. It is important to note that a range of external factors may influence responses to growth and cost effects in the future. Examples of factors that are beyond the control of the City and its departments that may act to magnify or reduce department costs over time include the following:  regional growth  technology  state and federal policies  environmental factors This study does not speculate regarding the potential effects of such exogenous influences on the general fund expense budget. It focuses only on those factors attributable directly to the employment growth and land use changes generated by the proposed GPA. The fiscal analysis model relies on categorization of the likely budgetary response to employment growth for each department. The anticipated response to growth is expressed for fiscal modeling purposes in terms of “fixed expenses” and “variable expenses” within the department budget. The fixed expenses are the portion of a City department’s budget which is not affected by population and employment growth. Even a department which is anticipated to grow largely in step with the City’s service population likely would have some fixed cost. For example, in most Item Annual Total at Buildout Business-to-Business Sales Tax $0.20per square foot of office28,125square feet$5,625 Franchise Fees (1)$37.98per service population93.8service pop.$3,560 Business License (1)$18.34per employee188employees$3,439 Subtotal $12,624 Allocation Factor Project Characteristic (1) Franchise Fee and Business License allocation factors are both based on existing general fund revenue per capita. 249 Memorandum February 10, 2017 Cupertino GPA Fiscal Impact Review Page 11 P:\161000s\161195CupertinoGPA\Deliverable\161195_Cupertino GPA Memo_02.10.17.docx cases each department has only one director position, which is a fixed expense for the department. While the department may increase staffing to accommodate growth, the department will not add another director. The variable expenses of a department are those that do increase with growth. As the City grows, increased demand for services requires some departments to scale up operations to meet new demand. The portion of a department’s budget that scales up is identified as the variable share of the budget. EPS uses a per-capita average cost approach to estimate department costs attributable to new residents and workers. The variable portion of each department budget is used to determine the per-capita cost, as shown in Table 11. Then, to determine the new General Fund expenditures generated by the proposed project, the per-capita factors are multiplied by the projected increase in service population. Public Affairs and Non-Departmental expenditures are not estimated because the project is not expected to generate new ongoing costs to these service providers. 250 Me m o r a n d u m February 10, 2017 Cu p e r t i n o G P A F i s c a l I m p a c t R e v i e w Page 12 P: \ 1 6 1 0 0 0 s \ 1 6 1 1 9 5 C u p e r t i n o G P A \ D e l i v e r a b l e \ 1 6 1 1 9 5 _ C u p e r t i n o G P A M e m o _ 0 2 . 1 0 . 1 7 . d o c x Ta b l e 1 1 F Y 2 0 1 5 - 1 6 E x p e n d i t u r e B u d g e t S u m m a r y a n d F i s c a l I m p a c t E s t i m a t i n g F a c t o r s It e m Ci t y G e n e r a l Fu n d E x p e n s e s (F Y 2 0 1 5 - 1 6 ) Pe r c e n t Va r i a b l e ( 1 ) Ann u a l Var i a b l e Ex p e n s e s Pe r C a p i t a Ge n e r a l Fu n d Ex p e n s e Pr o j e c t Po p u l a t i o n / Se r v i c e P o p u l a t i o n Annual Total at Buildout Ge n e r a l Go v e r n m e n t ( 2 ) $8 , 5 5 1 , 3 4 9 1 0 % $ 8 5 5 , 1 3 5 7 3 , 7 3 1 S e r v i c e P o p . $ 1 1 . 6 0 9 3 . 8 $ 1 , 0 8 7 Po l i c e ( 3 ) $ 1 0 , 9 9 4 , 6 8 4 9 0 % $ 9 , 8 9 5 , 2 1 6 7 3 , 7 3 1 S e r v i c e P o p . $ 1 3 4 . 2 1 9 3 . 8 $ 1 2 , 5 8 2 Pu b l i c Af f a i r s ( 4 ) $4 6 2 , 2 9 8 N / A N / A N / A N / A N / A N / A N / A Re c r e a t i o n & Co m m u n i t y Se r v i c e s $6 , 1 5 7 , 1 0 7 7 5 % $ 4 , 6 1 7 , 8 3 0 5 9 , 7 5 6 P o p u l a t i o n $ 7 7 . 2 8 0 . 0 $ 0 Pl a n n i n g & Co m m u n i t y De v e l o p m e n t $7 , 2 3 5 , 3 8 3 5 0 % $ 3 , 6 1 7 , 6 9 1 . 5 0 7 3 , 7 3 1 S e r v i c e P o p . $ 4 9 . 0 7 9 3 . 8 $ 4 , 6 0 0 Pu b l i c W o r k s ( 5 ) $2 2 , 5 6 3 , 2 4 7 75 % $ 1 6 , 9 2 2 , 4 3 5 7 3 , 7 3 1 S e r v i c e P o p . $ 2 2 9 . 5 2 9 3 . 8 $ 2 1 , 5 1 7 No n - D e p a r t m e n t a l $ 1 1 , 6 1 0 , 9 8 5 N/ A N/ A N / A N / A N/ A N / A N / A T o t a l E x p e n d i t u r e s $ 6 7 , 5 7 5 , 0 5 3 $39,786 (1 ) P e r c e n t a g e o f c o s t s t h a t a r e p o p u l a t i o n - d e p e n d e n t , a s o p p o s e d t o f i x e d c o s t s o r c o s t s r e c o v e r e d t h r o u g h f e e s o r c h a r g e s . (2 ) I n c l u d e s C o u n c i l a n d C o m m i s s i o n , A d m i n i s t ra t i o n , a n d A d m i n i s t r a t i v e S e r v i c e s . (4 ) I n c l u d e s p u b l i c a f f a i r s , I T , g o v e r n m e n t c h a n n e l , a n d C i t y w e b s i t e . Es t i m a t i n g F a c t o r s (3 ) R e f l e c t s t h e c o n t r a c t p o r t i o n o f t h e p o l i c e d e p a r t m e n t ' s b u d g e t. T o t h e e x t e n t t h e c u m u l a t i v e e f f e c t o f n e w g r o w t h t r i g g e r s t h e c o n t r a c t t e r m s e x c e e d i n g t h e ca p a g r e e d u p o n i n 2 0 1 4 , t h e c o s t i m p a c t m a y b e a b o v e t h a t e s t i m a t e d b a s e d o n t h e a v e r a g e c o s t a p p r o a c h . (5 ) I n c l u d e s a d m i n i s t r a t i o n , e n v i r o n m e n t a l p r o g r a m s , d e v e l o p m e n t s e r v i c e s , s e r v i c e c e n t e r , g r o u n d s , s t r e e t s , t r e e s a n d r i g h t o f wa y , f a c i l i t i e s a n d f l e e t , tr a n s p o r t a t i o n , a n d o t h e r p r o g r a m s . 25 1 Memorandum February 10, 2017 Cupertino GPA Fiscal Impact Review Page 13 P:\161000s\161195CupertinoGPA\Deliverable\161195_Cupertino GPA Memo_02.10.17.docx Fiscal Impact of Proposed Project Table 12 summarizes the fiscal impact of business start-up incubator alternative on the City of Cupertino’s General Fund, with forecasted revenues and expenditure estimates based on the methodology described above. EPS estimates that General Fund revenues resulting from the proposed business start-up incubator will match the General Fund costs associated with providing ongoing services to the project. Table 12 Summary of Fiscal Impact Analysis – Business Start-Up Incubator Item Annual Fiscal Impact General Fund Revenues Sales Tax (excl. business-to-business sales)$6,000 Business to Business Sales $6,000 Property Tax $8,000 Property Tax in Lieu of VLF $4,000 Property Transfer Tax $0 Transient Occupancy Tax $0 Utility Tax $9,000 Franchise Fees $4,000 Business Licenses $3,000 Total Revenues $40,000 General Fund Expenditures General Government $1,100 Police $12,600 Recreation & Community Services $0 Planning & Community Development $4,600 Public Works $21,500 Total Expenditures $40,000 Net Impact on General Fund $0 252 Memorandum February 10, 2017 Cupertino GPA Fiscal Impact Review Page 14 P:\161000s\161195CupertinoGPA\Deliverable\161195_Cupertino GPA Memo_02.10.17.docx Fiscal Impact of Existing Uses In order to quantify the fiscal impact of the existing retail use located at 19900 Stevens Creek Boulevard, the same fiscal methodology is applied to existing land use program as the proposed GPA. The site currently is occupied by a 26,000 square foot Scandinavian Designs furniture store. The site’s existing conditions provide a positive fiscal impact to the City’s General Fund of about $36,000 a year, as shown in Table 13.7 Table 13 Summary of Fiscal Impact Analysis – Existing Conditions 7 This analysis relies on the applicant’s reported $2.56 million in retail sales at the existing store. City review of taxable sales data indicates actual retail sales likely are higher, and thus the actual fiscal benefit of the existing use is higher than reported here. Item Annual Fiscal Impact General Fund Revenues Sales Tax (excl. business-to-business sales)$26,000 Business to Business Sales $0 Property Tax $7,000 Property Tax in Lieu of VLF $4,000 Property Transfer Tax $0 Transient Occupancy Tax $0 Utility Tax $0 Franchise Fees $0 Business Licenses $0 Total Revenues $37,000 General Fund Expenditures General Government $0 Police $300 Recreation & Community Services $0 Planning & Community Development $100 Public Works $600 Total Expenditures $1,000 Net Impact on General Fund $36,000 253 Memorandum February 10, 2017 Cupertino GPA Fiscal Impact Review Page 15 P:\161000s\161195CupertinoGPA\Deliverable\161195_Cupertino GPA Memo_02.10.17.docx Net Fiscal Impact The proposed land use modification from retail to office, specifically a business start-up incubator, will result in an annual net fiscal burden to the City of Cupertino General Fund. This analysis estimates that the net annual fiscal impact of the GPA proposal on the City’s General Fund is approximately -$36,000, as shown in Table 14. The net increase in General Fund revenues from the project at buildout is estimated at roughly $3,000 more annually than the existing use. The net increase in General Fund expenditures associated with the Project is estimated at approximately $39,000 per year more than the existing use. Table 14 Net Fiscal Impact Summary Revenue / Expense Category Fiscal Impact at Project Buildout Fiscal Impact Baseline Net Fiscal Impact General Fund Revenues$40,000$37,000$3,000 General Fund Expenditures$40,000 $1,000 $39,000 Net Impact on General Fund $0$36,000-$36,000 254 Relevant policies from the Economic Development Strategic Plan (EDSP) 4.1 Allow for the conversion of underutilized ground floor retail space to incubator or co- working uses. There are a number of underutilized retail sites (such as second-floor retail space and spaces located to the side or rear of a property) that could be converted to smaller co-working spaces or incubators. Note that the conversion of some existing retail buildings may require property owners to make investments in infrastructure or building improvements to serve such businesses. 255 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:116-1952 Name: Status:Type:Reports by Council and Staff Agenda Ready File created:In control:9/1/2016 City Council On agenda:Final action:2/21/2017 Title:Subject: Report on Committee assignments and general comments Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. City Council2/21/20171 Subject:Report on Committee assignments and general comments Report on Committee assignments and general comments CITY OF CUPERTINO Printed on 2/15/2017Page 1 of 1 powered by Legistar™256