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PC Packet 03-14-2017 CITY OF CUPERTINO AGENDA CUPERTINO PLANNING COMMISSION 10350 Torre Avenue, Council Chamber Tuesday, March 14, 2017 6:45 PM PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF MINUTES 1. Subj ect: Draft Minutes of February 14, 2017 Recommended Action: Approve or modify Draft Minutes of February 14, 2017 Draft Minutes of Februarv 14,2017 POSTPONEMENTS ORAL COMMUNICATIONS This po�tion of the meeting is �ese�^ved fo� pe�sons wishing to add�ess the Commission on any matte� not on the agenda. Speake�s a�e limited to th�ee (3) minutes. In most cases, State law will p�ohibit the Commission f�om making any decisions with �espect to a matte�not on the agenda. WRITTEN COMMUNICATIONS CONSENT CALENDAR Unless the�e a�e sepa�ate discussions and/o� actions �equested by council, staff o� a membe� of the public, it is �equested that items unde� the Consent Calenda� be acted on simultaneously. PUBLIC HEARINGS 2. Subj ect: Hillside Exception to allow the construction of an attached pool house, pool and patio to an existing residence on slopes greater than 30%. Application No(s).: EXC-2016-08; Applicant(s): Charles Holman (Mahoney residence); Location: 11406 Lindy Lane APN# 356-24-011 CI'1'Y OP CUPERTINO Page 1 Planning Commission AGENDA March 14,2017 Recommended Action: The applicant has requested a continuance to the April 11, 2017 meeting Plannning Commission decision final unless appealed 3. Subject: Municipal Code Amendment to Title 19, Zoning, of the Cupertino Municipal Code, to allow the creation of Single-Story Overlay Zones in single-family residential zoning districts Application No(s).: MCA-2017-02; Applicant(s): City of Cupertino; Location: citywide Recommended Action: Recommend that the City Council approve the Municipal Code Amendment per the Draft Resolution Tentative City Council hearing date: April 18, 2017 Staff Report 1 -Draft Resolution-MCA-2017-02 2 -Redline Chan�es- Sin�le-Storv Overlav -Cupertino 3 - Comparison Chart 4-Draft Process and Guidelines 5 -Frequentiv Asked Ouestions OLD BUSINESS NEW BUSINESS 4. Subject: Planning Commission Work Program 2017 Recommended Action: discuss Work Program for 2017 Staff Report 1 - Citv Council Work Pro�ram 2017-2018 2 -Economic Develonment Strate�ic Plan STAFF AND COMMISSION REPORTS ADJOURNMENT CI'1'Y OP CUPERTINO Page 2 Planning Commission AGENDA March 14,2017 If you challenge the action of the Planning Commission in cou�t, you may be limited to �aising only those issues you o� someone else �aised at the public hea�ing desc�ibed in this agenda, o� in w�itten co��espondence delive�ed to the City of Cupe�tino at, o� p�io� to, the public hea�ing. In the event an action taken by the planning Commission is deemed objectionable, the matte� may be officially appealed to the City Council in w�iting within fou�teen (14) days of the date of the Commission's decision. Said appeal is filed with the City Cle�k(O�dinance 632). In compliance with the Ame�icans with Disabilities Act (ADA), anyone who is planning to attend the next Planning Commission meeting who is visually o� hea�ing impai�ed o� has any disability that needs special assistance should call the City Cle�k's Office at 408-777-3223, 48 hou�s in advance of the meeting to a��ange fo� assistance. Upon �equest, in advance, by a pe�son with a disability, Planning Commission meeting agendas and w�itings dist�ibuted fo� the meeting that a�e public �eco�ds will be made available in the app�op�iate alte�native fo�mat. Also upon �equest, in advance, an assistive listening device can be made available fo�use du�ing the meeting. Any w�itings o� documents p�ovided to a majo�ity of the Planning Commission afte� publication of the packet will be made available fo� public inspection in the Community Development Depa�tment located at City Hall, 10300 To��e Avenue, du�ing no�mal business hou�s and in Planning packet a�chives linked f�om the agenda/minutes page on the Cupe�tino web site. Membe�s of the public a�e entitled to add�ess the Planning Commission conce�ning any item that is desc�ibed in the notice o� agenda fo� this meeting, befo�e o� du�ing conside�ation of that item. If you wish to add�ess the Planning Commission on any issue that is on this agenda, please complete a speake� �equest ca�d located in f�ont of the Commission, and delive� it to the City Staff p�io� to discussion of the item. When you a�e called, p�oceed to the podium and the Chai� will �ecognize you. If you wish to add�ess the Planning Commission on any othe� item not on the agenda, you may do so by du�ing the public comment po�tion of the meeting following the same p�ocedu�e desc�ibed above. Please limit you� comments to th�ee (3) minutes o� less. Please note that Planning Commission policy is to allow an applicant and g�oups to speak fo� 10 minutes and individuals to speakfo�3 minutes. Fo� questions on any items in the agenda, o� fo� documents �elated to any of the items on the agenda, contact the Planning Depa�tment at (408) 777 3308 0� planning(a�cupe�tino.o�g. CI'1'Y OP CUPERTINO Page 3 CITY OF CUPERTINO 10300 Torre Avenue Cupertino, CA 95014 CITY OF CUPERTINO PLANNING COMMISSION MEETING DRAFT MINUTES 6:45 P.M. FEBRUARY 14,2017 TUESDAY CITY COUNCIL CHAMBERS The regular Planning Commission meeting of February 14, 2017,was called to order at 6:45 p.m.in the Cupertino Council Chambers, 10350 Torre Avenue, Cupertino, CA. by Chairperson Alan Takahashi. SALUTE TO THE FLAG ROLL CALL Commissioners Present: Chairperson: Alan Takahashi Vice Chairperson: Margaret Gong (2016) Commissioner: Winnie Lee (2016) Commissioner: Don Sun Commissioners Absent: Commissioner: Geoff Paulsen Staff Present: Assistant City Manager: Aarti Shrivastava Asst. Community Development Director: Benjamin Fu Associate Planner: Gian Paolo Martire Assistant City Attorney: Colleen Winchester New incoming commissioners David Fung and Jerry Liu were seated in the audience. MOTION: Motion by Com.Lee, second by Vice Chair Gong,and carried 4-0-0, Com.Paulsen absent,to move Item 2 before Item 1. 2. APPROVAL OF MINUTES: MOTION: Motion by Vice Chair Gong, second by Com.Lee,and carried 4-0-0, Com.Paulsen absent,to approve the minutes of the January 17,2017 Planning Commission meeting as presented. Chair Takahashi thanked the outgoing commissioners Winnie Lee and Margaret Gong for their years of service. Aarti Shrivastava thanked outgoing commissioners Lee and Gong for their service and helping guide staff and their recommendations to create recommendations that the Council could review. Benjamin Fu presented each with a parting gift,a Cupertino historical blanket. Com.Sun thanked the commissioners for their service. Winnie Lee thanked staff, and City Council for choosing her and congratulated Chair Takahashi on his reappointment. She said she will continue her work with the community on committees and projects. Margaret Gong thanked City Council for choosing her to serve on the commission, and thanked staff and fellow commissioners. The incoming commissioners were seated. The agenda was moved back to Item 1. Cupertino Planning Commission 2 February 14, 2017 CEREMONIAL ITEMS 1. Election of Chair,Vice Chair and Committee renresentatives: MOTION: Motion by Com.Liu,second by Com. Takahashi, and carried 4-0-0, Com.Paulsen absent,to elect Com. Sun as Chair, and Com.Paulsen as Vice Chair for 2017. Com.Paulsen had communicated that he would accept the nomination. Chair pon Sun chaired the remainder of the meeting. Committee Appointments: Desi�n Review Committee: ls` and 3rd Thursdays, 5 p.m. (Vice Chair of Commission serves as Chair of the committee; also a second commissioner is elected to join the Vice Chair as well as an alternate. (Com. Paulsen to serve) Alternate: Com. Takahashi. Com. Paulsen is currently serving as the rep for Housing Commission and has communicated that he would like to represent Planning Commission on the Economic Development Committee MOTION: Motion by Com.Liu,second by Com.Fung, and carried 4-0-0, Com.Paulsen absent,to elect Com.Paulsen as Chair of the DRC, Com.Fung rep, and Com. Takahashi as the alternate. Economic Develonment Committee: As mentioned previously, Com. Paulsen has indicated an interest to be on the EDC; currently Chair Sun has been the alternate. MOTION: Motion by Com.Fung, second by Com.Liu, and carried 4-0-0, Com.Paulsen absent,that Com.Paulsen serve as rep of the EDC and that Com. Takahashi serve as the alternate. Environmental Review Committee:Chair Sun serves as rep for Environmental Review Committee(ERC) Com. Liu will serve as the alternate. MOTION: Motion by Com.Fung, second by Com. Takahashi, and carried 4-0-0, Com.Paulsen absent, that Chair Sun serve as the rep. and Com.Liu as the alternate. Housin�Commission: Com. Liu volunteered to serve as rep on the Housing Commission. MOTION: Motion by Com.Fung, second by Chair Sun, and carried 4-0-0, Com. Paulsen absent,that Com.Liu will serve as rep. and Com. Takahashi serve as alternate on the Housing Commission. Mayors Monthly Meeting Schedule- lsr Wed of each month - 5:30 p.m. Rotation for attendance: Feb. - Com. Paulsen July- Com. Paulsen March - Chair Sun August- Chair Sun April - Com. Fung Sept. - Com. Fung May - Com. Takahashi Oct. - Com. Takahashi June - Com. Liu Nov. - Com. Liu Dec. - Com. Paulsen Cupertino Planning Commission 3 February 14, 2017 CONSENT CALENDAR None WRITTEN COMMUNICATIONS: None POSTPONEMENTS/REMOVAL FROM CALENDAR None ORAL COMMUNICATIONS: Connie Cunningham, Cupertino resident: • Addressed the Planning Commission regarding the homeless in Cupertino, stating with the added economic growth in the area, the homeless problem is worsening. She said the West Community Services is an organization which supports the homeless and provides services. She is an interested citizen and urged the community to continue to support it and not get lost in other many important things that are being considered through their planning. She said she was eager to meet more citizens who were interested in the program and also attend Housing Committee meetings. She recently heard of the homeless situation at DeAnza College, and said she did not realize there was a problem with students not having proper housing. Lisa Warren, Cupertino resident: • Read statement into the record from person unable to attend meeting. There was a statement made on social media that referred to and touted the practice of using modern urban planning in an attempt to reduce sprawl. First question: What is the definition of modern urban planning? Second question: What might this statement be referring to with reference to "sprawl". Please consider this; if someone were to ask the attendees at a Planning Commission meeting where they purchased the car they came in; their wallet or purse; their clothing; any jewelry or home furnishings; refrigerator, dishwasher, range,plants and landscaping items, etc., it is likely that almost everything would have been purchased outside of Cupertino, especially now with a lot of our retail missing. Cupertino encourages us to shop elsewhere by having limited retail options which in turn puts us in a traffic and urban sprawl,misusing a concept of urban sprawl on Cupertino in order to justify high density mixed use developments while at the same time ignoring the lack of basic necessities of an increasing population and is certainly an example of flawed planning. Mixed use projects provide limited retail to support the immediate onsite residence providing little convenient shopping range or depth for the rest of us. Home Depot is brilliant exploiting the lack of the homestore for Cupertino; Cupertino didn't provide for us; San Jose did and they get our tax revenue. Likewise with Costco and Valley Fair;as long as Cupertino refuses to provide for us in the retail friendly way, our neighboring cities get to have our tax dollars and we get to experience additional gridlock and all the negatives that go along with that. Caryl Gorska, Cupertino resident,read statement into the record: • What is sensible growth? Sensible growth begins with resident engagement and data collection; it manages change through long term planning with clear objectives supported by a majority ofresidents. Sensible growth is change management that will benefit Cupertino residents for years to come. What prevents sensible growth today, (1) Spot zoning; insufficient or would say chaos planning. (2) Lack of transparency, (3) Platitudes that replace clear objectives reason decision making and data collection such as"change is inevitable",you can't"shut the gate" (4) Insufficient funding for true infrastructure costs; and (5) Magical thinking. Spot zoning: according to the General Plan Scandinavian Design properties is zoned for commercial residential use;this has been established in the General Plan in 2014 and a General Plan Amendment (GPA) in 2015; do we really need another GPA in 2017? What is wrong with the vision planning done 2 to 3 years ago;and is this done to benefit the city or its residents? According to Cupertino Municipal Code, the purpose of general commercial zoning is to assure ma�mum compatibility with surrounding residential areas as well as minimize adverse traffic impacts Cupertino Planning Commission 4 February 14, 2017 resulting from commercial development. Have we considered the impact of zoning change on this neighborhood? Lack of transparency, the 2 million square feet of office allocation at Vallco was approved despite vocal opposition from the residents as well as opposition from the Planning Commission; also in the video former Planning Commissioner Paul Brophy asks where will they live? In the December 2014 City Council video it is clear that the office allocation will expire after May 31, 2018 if a specific plan is not approved,yet the General Plan says city will consider the removal of the office and residential allocations for Vallco shopping district. This doesn't mean expire;why does the wording not match the video? Lack of transparency Part 2. What happens to the 2 million square feet of office allocation after May 31s`2018? Some people claim it can be reallocated to other areas in Cupertino. In December 2014 Rod Sinks said he would like to allocate some but not all to the rest of the city. We believe it was just a personal comment because the City Council cannot vote on some allocation. The Dec. 4, 2014 video of City Council says an expiring office allocation but the General Plan does not; how do we reconcile this difference? How can a personal comment of some office reallocation which is not mentioned in the General Plan become a City Council decision? Liana Crabtree, Cupertino resident, read into record: • Is this transparent to you? It is not transparent to us residents. Need for clear objectives and reason decision making; mixed use has been sold to residents as the next Santana Row. Do you go to Santana Row for apartments and offices? Probably not does Main Street look like Santana Row to you;maybe not. How do we make future mixed use less hodgepodge and more Santana Row and is mixed use really the answer for successful retail? We don't think so; successful retail is based on good management and desirable retailers that can attract shoppers. Some folks keep talking about business diversity bringing in more companies that will pay tax; these same folks also say that new companies will not generate more traffic by implementing TDM (transportation demand management). Unless we get big companies such as Apple,Google,Facebook,etc.,that can afford to run private buses,small companies simply cannot meet the TDM target,so we need to trade offbusiness diversity against traffic; in the end Apple wins. This is not meant to be a complaint about Apple, it is meant to question if business diversity is a realistic objective; our past record has not been good. Insufficient funding for true infrastructure costs; the strong proponents for hyper growth say growth will generate new tax revenue but they ignore the cost of infrastructure improvements. Mountain View's north Bayshore traffic project costs are $41 million with continued operating costs. Measure D's 9212 report shows about$4 million of tax revenue,north Bayshore traffic revenue will likely be less due to lack of resale sales tax. This illustrates that the cost of infrastructure improvements are very high compared to the tax revenue. Worse yet, the money spent on traffic projects don't reduce overall traffic; the traffic proj ect only slows down the traffic growth;residents will end up paying more tax and get higher density and more traffic in return. Magical thinking;let's expand on the previous traffic issue further;a popular myth is that mass transit will remove cars from our road;it is partially true; each transit rider is clearly not driving a car,but growth will add more people and only a small percentage will take mass transit. The net result is that growth will add even more cars to the road and worsen traffic, every major city in the world with mass transit has horrendous traffic. Another myth is that efficient mass transit provides an alternative to driving;when do we envision an efficient alternative to driving and at what cost? Luke Lang, Cupertino resident: • Discussed what some Cupertino residents have been comparing Cupertino with Mountain View and tallying Mountain View's growth as being a fantastic model that they should follow and said he believed their arguments are biased and one sided and it is important to look at the facts and entire picture. They are two different cities; while similar in area and population, Mountain View is more industrial and Cupertino is more family oriented. Mountain View is proj ecting a budget deficit in 2019- 2020 and Cupertino does not Mountain View also has 2x population density in the residential area; as with tables with data to back that up, if you look at compared two cities you will see that Cupertino is about 13, Mtn. View 122 sq. miles, population of Mountain View a little higher; looking at the Cupertino Planning Commission 5 February 14, 2017 residential land area Cupertino is about 75% and Mountain View is less than half, so the majority of Mountain View area is industrial or non-residential; therefore you get the residential density of 2x and notice that Mountain View has about 3x number of city employees. He continued his comparison of the two cities in the areas of retail and transportation. Mountain View is an example of infrastructure costing more than new tax revenue and therefore they have a budget deficit and they already have much better transportation infrastructure than Cupertino. For Cupertino to grow like Mountain View they would have to spend even more money on transportation than Mountain View. Cupertino enjoys a better quality of life because of lower density;don't spend good money to create more traffic problems. Michelle Bazargun, Cupertino resident: • Said Cupertino did not need more apartments and housing. Concern is there is too much housing and residential; the retails and small businesses are gone; they need to support small businesses. Said it was not the way for Cupertino to go. Chair Sun closed the Oral Communications portion of the meeting. PUBLIC HEARING 3. U-2016-04 Use Permit to consider allowing an e�sting business Ching-yi (Easy Way Group) to operate past 11 p.m.in a mixed use development Meet Fresh/Tea Chansii Owner: Main Street Cupertino 19449 Stevens Creek Blvd Gian Paolo Martire,Associate Planner,presented the staff report: • Reviewed the application for a Use Permit to consider allowing an e�sting business to operate past 11 p.m. in a mixed-use development, as outlined in the staff report. He reviewed the project site and surroundings located at the corner of Stevens Creek Blvd. and Tantau Avenue, and the operational details. The two businesses operate as one unit, and do not serve alcohoL No complaints have been received by the city for other businesses that have been granted permits for extended hours;a condition of approval has been added to allow staff to review the operations of the business and if warranted rescind the expanded hours of operation in the event there are ongoing issues with the extended hours. • Explained the process for responding to complaints of noise level if any. • Answered questioned about the application. Ching-yi Fu,Applicant: • Said the reason for applying for extended hours is that some customers complained about not having a place to meet friends, especially Friday and Saturday nights. Also heard from residents that we keep our environment calming and quiet as it used to be. There are rules for the staffto make the environment quiet, e.g., turn off the music in the building at 10 p.m.; customers will be notified of closing and will turn out some lights at 12 a.m. They will only take orders until 12 a.m. so they won't stay too long in the building. Also can close the back door near the apartments, so they cannot e�t from that door and they won't go in the parking lot and talk and be loud. Alcohol won't be served;people won't stay too long. There is plenty of parking in the plaza and neighbors won't have to worry about parking spaces near the residences. Patrons won't have to worry about safety in the parking lot at night as there is a security guard present 24 hours. She said it was not certain if there would be patio tables in the back of the restaurant. Said in the later hours they will close the back doors so that the noise is at a minimum to the neighbors. She reviewed the cleanup procedures followed. Chair Sun opened the public hearing. Cupertino Planning Commission 6 February 14, 2017 Lisa Warren, Cupertino resident: • Said she was concerned that the people who had concerns about the business had been asked how they feel about it. Said it was a good opportunity to bring up an issue of Main Street. If there is a popularity of a business like this at Main Street for any hours during the day, even at the current hours they have; it seems a shame that the City Council chose to allow Sandhill Properties to get an entire 4"'floor on two large office buildings in exchange for 1600 square feet or take of retail that was supposed to be a community benefit which is now Apple Mac Cafes. That took 2 retail sites that could have possibly absorbed some of the patrons from this business taken away. Said she felt cheated as a resident and the community benefit issue has got to stop being handled the way it is. City staff is aware of her concerns about the use of the retail spaces in those office buildings; they may have had conversations with Sandhill etc., but she was not sure where those conversations are. Said she brought it up because it is an example of promises that were supposed to benefit the community and now they have one business trying to extend their hours because they are a community benefit. Diane(no last name given), Cupertino resident: • Said she was present to voice complaints about the noise in the parking lot, delivery trucks as early as 6:00 a.m., and about the unreasonable business hours. Presently some of the businesses on Main Street open at 6:00 a.m., some close at 11:00 p.m. or 12:00 a.m. The late night customers make noise with loud music, talking,revving their car engines; the parking lot has so much noise that the residents are woken up at night at 12 midnight, 1:00 a.m., 4:30 a.m. from noise of cleaning up outside; early in the morning there are delivery trucks and cleaning people spraying water outside the stores. Said they have called the city and the Sheriff has come out perhaps the project to extend the hours should not be approved if the Sheriff has to be called continually. Said she did not agree with the presentation shown about businesses open late at night with no complaints. There are complaints and the e�sting businesses which are allowed to stay open until late at night are one block away from Metropolitan where she resides. They can hear everything; it shortens their down time and affects residents negatively. It is unfair. She said the complaints were made to the city and sheriff;response from the city is they state the laws about delivery. They are also building an apartment building in front of the tea shop 10 feet away. How will future residents put up with the noise? Grace Lim, Cupertino resident: • Resident at the Metropolitan complex; suggested the operating hours be decreased because the other restaurants are further away from where they live and their business hours do not bother them. The Meet Fresh representative claims they can control their customers but they are not able to. Their customers trespass in the condo area and leave trash,make noise, arguing and also singing. Allowing them to keep their business open later hours is making the atmosphere unsafe and a dangerous environment. Many of their customers are young people, high school students, children who want to hang out very late and create a lot of noise; they don't have a sense of responsibility or abide by regulations and lack morality; they do whatever they want to do. Since they not able to control their customers, their business hours should not be extended. • The business hours should be shortened; they could open earlier at 10 a.m. instead of extending their business hours. Residents somewhere else can't imagine the misery their family goes through; there is no loading zone to load or deliver goods; Main Street should create or have a designated loading zone; they use parking spaces as their loading zone. Said the nuisances and noise affect her children negatively and she can no longer endure them or be patient anymore. Why should developers' interest supersede the residents' interests; they are entitled to living peacefully but have lost their entitlement at this point. Meet Fresh creates a lot of trash; they don't take care of their responsibility. Their spokesperson emphasized what their clients want and don't want there is always responsibility that follows but they have not shown that. Chair Sun closed the public hearing. Cupertino Planning Commission 7 February 14, 2017 Com. Takahashi: • There was a lot of discussion and concern regarding noise; some of the main things were specifically dumpster noise, garbage removal and deliveries. What are the delivery requirements imposed on Main Street with regard to delivery hours?How does the city enforce the delivery requirements,hours,inside vs. outside? Gian Paolo Martire: • Hours are 8 a.m. to 8 p.m., specific locations with regard to where deliveries should take place; the location between AT&T and Target is prime delivery for onsite businesses. Aarti Shrivastava: • Said they could send Code Enforcement out to the businesses to review the hours as well as the location of delivery to eliminate the problems. This is done from time to time with all the businesses because they get new managers and personnel; staff is willing to go out and notify them of the rules. Mike Rhoede, Main Street Cupertino: • He said they have 24/7 security;also a truck dock which the majority of deliveries go through,but some go into the heart of the property which is closer to their east side near Lazy Dog. Said the security staff is vigilant about maintaining order in that parking lot loitering is not allowed; residents cannot play loud music; and they don't allow trash. He said the statement of trash being all over the place is a misnomer; there are trash facilities in the back of Meet Fresh and behind shop 7. Meet Fresh has been told not to drop trash after 10 p.m.; they could hold trash inside of their space. They are model tenants and they hardly have any issues with them. The area is also patrolled by cameras, golf carts, other vehicles, Segway and foot patroL If they are aware of kids racing through the parking lot, they handle it immediately. There is also a sheriff's substation on site. He said generally speaking they have good control over it and if an issue arises,he will talk to the neighbors. He said it is their goal to be a good neighbor; they have provided a park and the majority of the residents using the park are from the Metropolitan. Com.Fung: • He asked that staff look at the way in which they record and report incidents from the community to make sure they have an accurate picture if there are resident complaints regardless of how they are resolved, so that they are at least able to see them and are aware of the issue. Said the position of the location does have the potential to have more impact on the residents of Metropolitan. In particular he felt it was not necessarily something they need to do formally in the use permit. He encouraged working it out voluntarily with the operator to not extend the hours. Said he felt it would be good to use the back side during the day,which was a point of discussion in Parks and Rec when looking at the plan for the Main Street Park. He discouraged using it at night or making that area open past a certain time,probably relatively early in the evening if possible. • Said he felt it would help reduce the amount of disturbance by closing down that path which they may be doing already. If people are discouraged from using the back door to get to the parking lot that is adjacent to the Metropolitan, that can also cut down discussions in the parking lot. It is very easy for that to happen in the park area and that was a concern of Parks and Rec. Said he would encourage voluntarily;if there were ways to place some limits there he also would encourage that. Com.Liu: • Said they have two competing priorities because they want Main Street to be a place where people can hang out and the place seems to be popular; there would be a lot of foot traffic on the weekends. Said he was sympathetic to the residents who may feel intruded upon by the noise. What they are trying to do is to extrapolate what the behavior is going to be,if they make changes or not. Cupertino Planning Commission 8 February 14, 2017 • Said he agreed with Com.Fung;he noted there were tables shown on the plans;with the current weather nobody is ever outside, but when the warmer weather comes customers may use the outdoor tables. What it will then look like is unknown and something they will have to deal with. He said he echoed many comments that Com. Fung had in terms of some of the restraints and limitations. Com. Takahashi: • Said he felt it is a topic that will come up more as there is more high density housing in close pro�mity to entertainment and retail. The hours requested extend beyond hours of any current business in Main Street the weekend hours are being proposed going to 1:00 a.m. He questioned whether or not that should be granted vs. being a worse case the same as the other businesses midnight. In terms of the weekday hours of Sunday through Thursday, is there really more business gained by extending the hours to 12 midnight on the weekdays? Said he was a proponent of a compromise with regard to the actual hours of operation as well as awareness of noise and noise mitigation just because the angry neighbor syndrome gets unfortunate and creates tension. He felt they could work through it because generally speaking the city is enjoying the activity levels that Main Street has brought where they had nowhere to go for late night places, having that is something that Cupertino needs and balance is the key word to promote and figure out how to achieve that from the standpoint of not deteriorating the quality of the life of the residents, but while giving the broader city access to those entertainment centers. Chair Sun: • Said they need to draw lines between the voluntary and mandatory;they encourage people to volunteer and they come to them; they need to find a solution. • He said he was a businessman and cared about how much money can be generated per night. If they could generate $1,000 a night his suggestion would be to extend the hour to midnight. Many residents have voiced their complaints and concerns,in another two or three months hotel guests will be next to their business and will likely generate more complaints. He suggested finding a middle ground and try to match the other business hours and go to midnight and have both parties benefit. Com.Liu: • Asked if it was practical to limit the use of outdoor seating especially on the west side of the property after some hour,is it practical or not really enforceable? Aarti Shrivastava: • Responded there was a noise ordinance and then can go out and measure if there is noise, but it is practical to say that the extended hours don't apply to the back and they should not be using the back patio at least for that time. Assistant City Attorney: • Clarified for purposes of what is on the agenda,noted what has been noticed and what is on the agenda. The topic is the late night hours of operation for this particular establishment. To the extent that they want to foster additional communication between staff and Main Street, that is an additional issue. Chair Sun: • Said he wanted to follow the attorney's advice and focus on the operating hours and not other business. He said Com.Takahashi and he had different approaches; Com.Takahashi supported limited operating hours and he wanted to go a little more. Com. Liu: • Said he supported keeping the closing hour of ll:00 p.m. on week days. Cupertino Planning Commission 9 February 14, 2017 Com.Fung: • Said he felt there was a difference because of the pro�mity between this site and the other sites, but the other sites have been operating until midnight. Said his personal opinion would be to make it midnight every night with a recommendation that it would have shorter hours on Friday and Saturday because of the pro�mity to the residential areas Chair Sun: • Said his personal favorite was the entire street at midnight which makes things much easier for the businesses; they have to remember Monday, Tuesday, Wednesday operation hours; it is very hard for them to manage their staff and the business so just give them midnight for the entire street. Com. Takahashi: • Relative to comments relating to noise generation,he said he did not think they needed to incorporate any language with regard to making sure deliveries are within the correct hours. Attorney: • Said they could state no outdoor seating from this particular restaurant from 11:00 p.m.until extended hours of operation. MOTION: Motion by Com.Fung, second by Com. Takahashi and carried 4-0-0, Com.Paulsen absent,to approve application U-2016-04 with the modification of the operational hours to be until midnight each night of the week, and with the condition that use of the rear area facing the park is not permitted during the times which are being changed. 4. M-2017-01 Modification to a Use Permit(29-U-84)including Keith Fichtner consideration of removal of a deed restriction that (Kingsmill Group) limits the use of the property to a retail furniture store. 19900 Stevens Creek Blvd. Gian Paolo Martire,Associate Planner,presented the staff report: • Reviewed the application for modification to a Use Permit including consideration of removal of a deed restriction that limits the use of the property to a retail furniture store, as outlined in the staff report. • The building was built in the 1970s as an owner operated furniture store. In 1984 the owner requested to add 1,700 square feet in the rear for storage; further parking supply on site was reduced. The Planning Commission as a condition of approval realized that the parking was not adequate for current retail standards but for furniture retail,which is similar to a warehouse use; they supported it as long as there was a deed restriction on the site that limited the use to a furniture retail store. There are some conditions of approval, specifically Conditions No. 18 and 19. The current tenants Scandinavian Furniture is anticipated to vacate later in the year and the new property owner would like to market his building to other types of retail uses. • As the use permit stands, as conditioned with the deed restriction that was not possible. It would have to be a retail store;there are some things that the property owner had to do in order to remove that deed restriction and to market as a retail store. First was to get approval to modify the site, parking and landscaping to current standards which means that you have one parking space for every 250 square feet of retail space;it would need to have at least 105 parking spaces on site where currently there are only 78. The property owner did get architectural site approval and tree removal permit in November to increase the parking count to conform to retail and landscaping standards in the zoning ordinance. • Reviewed the conditions of approval. The next part was to modify the use permit and remove the conditions restricting to a furniture retail site; which would remove Conditions 18 and 19 from the Cupertino Planning Commission 10 February 14, 2017 resolution. The property owner also applied for a General Plan Amendment Authorization to be heard by City Council on February 21, 2017, to allow the possibility of an office use specifically incubator or medical offices uses on that site. • The project is categorically exempt from CEQA. • Staff recommends approval of the Modification to a Use Permit to remove a deed restriction that limits the use of the property to a retail furniture store, located at 19900 Stevens Creek Blvd. Staff answered questions regarding the application,. Gian Paolo Martine: • Said the parking requirement would be fulfilled by restriping and re-landscaping the e�sting parking lot the changes will be made to use the building for general retail. Definition of general retail is anything that is allowed for the CG ordinance such as grocery store, clothing store, any type of retail store because it meets the parking requirement. Com. Takahashi: • Any service would not necessarily be allowed other than potentially moving to medical. Aarti Shrivastava: • Those have separate parking requirements and all they are asking now is to be able to just meet the requirements in the Code; the General Plan authorization is a separate project and not part of tonight's decision; and if that goes through they will have to show how they meet the parking, that would be a separate project that would come to the Planning Commission if the Council authorizes it. If the proposed action tonight is approved,it wouldn't authorize them for anything beyond the retail uses in the CG district and they would still be required to meet parking for any of those uses. She said if the deed restriction was not lifted, the property would stay vacant unless a furniture store could move in. Chair Sun opened the public hearing. Keith Fichtner,Kingsmill Group,Applicant: • Said in order to take care of a problem from 1984 where the city was required that the buildings stay a furniture store because it was under-parked,he had to do some things: Bring it to code; it is currently not in code and the way to cover yourself as a city is to have the deed restriction;but that is something not heard today. He said he could not get a loan on this property because he was not in compliance with the current zoning on the parking; his bank has said his loan is conditioned on removal of the deed restriction. City has helped in stating that the way to remove the deed restriction was to request a deed restriction removal should you bring it up to the 105 parking spaces. He hired his architect and engineers to redesign the parking lot,rounding it up to 107 spaces; they then presented it in November and received approval for the design and then requested that he appear before the Commission today to request that the deed restriction be removed after the work has been done. Com.Fung: • Asked the applicant if it was his intent for the property not be retail; and if it was the eventual intent for the property to be incubator or medical offices. Keith Fichtner: • Said his intention for the property was to refresh it and enhance to a quality that the citizens would be proud o£ He is working with the Economic Development Director to try to determine what would be the best tenant for that space. One of the ones that your Economic Development Director sent to your Council is the goal of bringing incubator space; she has helped me with others in trying to introduce this potential site for incubator space, and happy to say that we are now talking to those people. It is Cupertino Planning Commission 11 February 14, 2017 not part of their application, they are just starting to push it forward. Ceryl Gorsica, resident, read into the record: • The catch phrase about startup incubators is now popular;just saying you want to make an incubator doesn't mean anything. The Cupertino General Plan and Scandinavian Design GPA application referred to startup incubator; however there was no explanation of how it will benefit Cupertino. Startups conjure up fantastic images of initial public offerings and instant billionaires but very few actually succeed. In the early stages startups usually don't have much money and cannot afford to pay the market rent in Cupertino;they also have little or no revenue so they don't pay any sales tax. On the other hand, established companies offer robust employment,tax revenue for both retail and business to business sales. • Affordable incubator space: Cupertino General Plan goal LU9.1.5 incubator workspace encourages development of flexible and affordable incubator workspace for startups and new and emerging technologies;but was it the standard for affordability? Is it some dollar amount per square foot,index for inflation or is it some percentage discount from the market rate;how do we know if the Scandinavian Design property will become an affordable incubator workspace? Even if we establish the affordability standard how do we ensure that the property meets the standard because it basically becomes rent controL Is that even legal in Cupertino? How do we enforce it� • Affordable incubator workspace #2. We don't think Cupertino has ever implemented affordable incubator workspace; former Mayor Richard Lowenthal said it on Next Door that his startup company moved to Campbell because of high rent for Cupertino offices. We are talking about a concept that we have never implemented and don't have any idea how to implement. Is affordable incubator workspace a realistic goal? • Office for startups: Let's put aside affordability and focus on startups; should Cupertino give preferential treatment for startups in terms of office allocation? Do the Planning Commission and City Council have a position on this or is this beyond city government's control? There is so much talk about business diversity, bringing different employers and business taxpayers into Cupertino; do we have a real plan or it just wishful thinking? • Conclusion: Cupertino incubator workspace must have clear objectives; what are we trying to accomplish,how can we accomplish it? Quantifiable benefits: How does it benefit Cupertino,how is it better in established companies; e.g. will Cupertino get equity shares in the startups? Measurable criteria: How do we measure the above accomplishments and benefits;how do we know if it is working and not working. • Enforceable rules: How do we enforce affordable incubator workspace or preferential treatment for startup offices; can we stand on legal ground? We don't think Cupertino Planning Commission and City Council can talk about zoning for incubator workspace until the above issues are clarified. Let's make sure we are not addressing issues that we have no control over; let's make sure we know what we are talking about. Alan Roth, resident: • Said he has resided over 36 years over Portal Plaza which is next door to the furniture store; and was concerned about the traffic and everything that has been happening to Cupertino. Said he has been there when it was a beautiful bedroom neighborhood and then Silicon Valley came along and things changed; the City Council's priority became putting developers as a priority over the citizens of Cupertino. Traffic is a major concern; on Stevens Creek Blvd by DeAnza College motorists have to wait for the light to change twice before they can move through. It is a major concern about the traffic congestion and the lack of concern for the citizens of Cupertino. Said he was awakened with the Vallco debacle and what fhey were planning on doing; thankfully the citizens of Cupertino voted it down. Said he was concerned about what is going in next door;there is only one entrance into the parking lot the furniture store did not draw a lot of traffic. Said the idea is if you get something such as a grocery Cupertino Planning Commission 12 February 14, 2017 store or movie theater they will have problems with additional traffic on Stevens Creek especially since there is only one entrance. What is going to happen with Vallco, that is going to make things worse. He asked that they put the Cupertino citizens ahead of the developers and the people that need or want the revenue. Luke Lang, Cupertino resident: • Referred to a slide presentation and said he prepared his report based on the staff report which he felt contained errors. First slide,it has been clarified today that once the deed restriction is removed, it is going to become a traditional retail operation;it will not become office. The staff report says that the General Plan designation for the parcel is office/commerciaUretail and that is incorrect because in the General Plan Chapter 2, Page PA7 there is an area shown in dark pink which says it is only for commercial and residentiaL If you compare against City Center where it is shown in lighter pink, that is where you have commerciaUoffice/residential. Please check it out. • The staff report says that the zoning designation of CG in Cupertino Municipal Code does not include of�ce or medical facility. The other error says that CEQA is not needed because proposed modi�cation occurred within e�sting facility that is consistent with the General Plan and for now if just talking about the modification to a general retail then that is true that CEQA is not needed,but if it is going to office, then not sure it is not true anymore. • The conclusion is that the increase in parking stalls can only remove the deed restriction from furniture store retail to traditional retail which was agreed on,but that was not what was said in the staff report. The rezoning to office will require GPA authorization and possibly CEQA; please correct the documentation and remove office destination because we have seen in the past that errors in documentation wind up in the General Plan as being the defacto standard when it is indeed an error. Please remove all reference to office in the staff report and also in the meeting minutes. Theo Kubalek, Cupertino resident: • Said he lived in Portal Plaza complex; the furniture store has been a good neighbor,primarily because there is not much activity there in terms of traffic. He said his concern is what will happen when they have a retail space that has far more traffic than presently with the furniture store. He said he understood a use restriction to just allow a furniture store is not acceptable in the sense that you cannot make money with that. People go in and out of business with furniture stores. He said it would be ideal if there was a way to put other restrictions on that use permit to control the traffic. Michelle Bazargun, Cupertino resident: • Said she felt it was important to put the residents first there is enough residential, office and housing in Cupertino; they need more small business and retail. Please do not remove the retail permit. Apple is building the biggest building in the world and all the world is getting to know Apple as a spaceship. Said they need to be smarter and develop smarter buildings and a smarter structure. Nowadays the architecture is extremely nice; perhaps the developer who would come and rebuild the Scandinavian Design could deliver an architect that has better parking spots, perhaps underground, to be able to design a better space and do a nicer retail for residential. She said that was what she and most of her neighbors were asking for, and that it be considered. Chair Sun closed the public hearing. Com.Liu: • Does staff have any comments on Mr. Lang's presentation whether it is office/commerciaUretail, commerciaUretail? Cupertino Planning Commission 13 February 14, 2017 Aarti Shrivastava: • Said staff would follow up with Mr. Lang, the information in the staff report is correct. There may have been some confusion on the land use map and zoning map. Com.Liu: • Asked if they lift the deed restriction, in terms of the kind of retail that goes in there, whether it is a small or medium business, are there any restrictions on the kind of retail businesses going in there? Aarti Shrivastava: • The CG ordinance has a list of uses that are allowed; if the deed restrictions are removed, they will have the same regulations as the rest of Stevens Creek Blvd. Com.Fung: • Said philosophically the deed restriction e�sts because of the conflict with the insufficiency of parking with the zoning back in the 80s. Said if that is addressed now he did not see any reason why the restriction should not be lifted and allow that use of that property as you would with anything else in that area to match the CG. Com. Takahashi: • Said clearly the property now is over-restricted based on the restricted parking; The key element the community is concerned about is whether or not it stays retail and now it is not being addressed; it is staying retail and that is what is proposed. Said he did not think there is a reason not to allow the removal and modification of the deed back to retail. Com.Liu: • Said in reading of the resolution from 1984 and 1985 it appears that the restriction is in there because of parking and he felt the lifting seemed reasonable. Chair Sun had questioned why they do not do this given there is a GPA Authorization and the Council will decide whether or not to let it through the gateway looking at everything together rather than looking at a small piece now and then seeing what happens with the Council next week. Said it seemed somewhat out of order and asked staffto comment. Aarti Shrivastava: • Said there is permit streamlining in California that states if a project that complies with the General Plan and zoning ordinance, basically doesn't need any legislative approvals, then you have to meet certain timelines in making decisions. They do not have that leeway as staff to hold applications back; they process them. In the case of a GP authorization those timelines don't e�st, that could be a completely different timeline and that is the reason to ensure they are meeting all the legal requirements; therefore they brought the application to the Planning Commission. Chair Sun: • Said that potentially in the future there is incubator office space, the traffic one entry neighborhood; this is the next step so far but they are limited on tonight's agenda discussing whether or not they can authorize lifting the deed restriction. There appears to be consensus that they can lift the deed restriction. MOTION: Motion by Com. Takahashi, second by Com.Liu, and carried 4-0-0, Com.Paulsen absent; that the Planning Commission agree with the findings in the draft resolution in M-2017-01, as written. Cupertino Planning Commission 14 February 14, 2017 OLD BUSINESS: None NEW BUSINESS: None REPORT OF THE PLANNING COMMISSION Environmental Review Committee: No report Housin�Commission: New commissioners were introduced and the outgoing commissioners were thanked for their service. Mavor's Monthlv Meetin�With Commissioners: No report. REPORT OF THE DIRECTOR OF COMMUNITY DEVELOPMENT: Economic Develonment Committee Meetin�: Aarti Shrivastava reported on the implementation of the Economic Development strategic plan adopted by City Council on October 2016; the Commission will review some of the ideas that include how to encourage small mid-size businesses,diversity incubator space as well as looking at mobile services. ADJOURNMENT: • The meeting was adjourned to the next Planning Commission meeting on March 14, 2017, beginning at 6:45 p.m. Respectfully Submitted: Elizabeth Ellis, Recording Secretary OFFICE OF COMMUNITY DEVELOPMENT PLANNING DIVISION CITY HALL 10300 TORRE AVENUE•CUPERTINO, CA 95014-3255 C U P E RT I N Q (408)777-3308• FAX(408)777-3333 PLANNING COMMISSION STAFF REPORT Agenda Date: March 14, 2017 SUBJECT Municipal Code Amendment to develop an application process for Single-Story Overlay Zoning Districts in single-family residential (R1) zones. (Application No(s).: MCA-2017- 02; Applicant(s): City of Cupertino; Location: citywide) RECOMMENDED ACTION That the Planning Commission recommend that the City Council: 1. Find that the proposed actions are exempt from CEQA; and 2. Adopt an ordinance amending Title 19, Zoning, of the Cupertino Municipal Code including, but not limited to, Chapter 19.12, Chapter 19.20, and Chapter 19.28. (Attachment 1) DISCUSSION: Application Summary: Municipal Code Amendment to Title 19, Zoning, of the Cupertino Municipal Code, to allow the creation of Single-Story Overlay Zones in single-family residential zoning districts. Analysis: Background Currently, the City of Cupertino allows the development of two-story homes that meet applicable regulations, in addition to meeting the necessary findings to approve a Two- Story permit,in the Single-Family Residential (R-1)Zones. However, there are sometimes concerns from neighbors over two-story homes related to building heights, neighborhood compatibility and impacts to privacy and light. MCA-2017-02 Citywide March 14,2017 Page 2 The establishment of overlay zones or districts has typically been initiated by City Council at the request of residents. Currently, the City has the following overlay districts in R1 (Single-Family Residential) zones. These include: ■ Single-Story Overlay districts, where an "i" suffix may be added to the end of the R1 zoning designation to indicate that development of new homes is limited to one story. The City currently has four such zones. The current regulations for "i" overlays limit building height to a single story (not to exceed 18 feet in height) and a second story may be permitted through a Conditional Use Permit. It should be noted that staff is not proposing making any changes to those regulations; ■ Eichler District, where an "e" suffix may be appended to the R1 zoning designation to indicate that new development, alterations or additions in this district must adhere to specific design standards. The City currently has one such district; ■ Semi-Rural Agricultural District, where an "a" suffix may be appended to the R1 zoning designation to indicate that new development, alterations or additions in that district must adhere to specific regulations. The City currently has one such district. In the summer of 2016, the City was asked by property owners in the Creston-Pharlap neighborhood about allowing their neighborhood to create a Single-Story Overlay district, as a result of concerns related to the approval of a complying two-story home in their neighborhood. While Single Story Overlay districts already exist in the City, the process for their creation, should an applicant wish to initiate an application, is not clear. The establishment of districts is different from other re-zoning processes in that it involves multiple properties, in addition to those requesting the Overlay District. As such,it can result in disagreements among property owners and the lack of a clear process may create confusion about how and when property owners can provide input. In order to clarify the process and ensure that all property owners in a proposed district understand the process and have the ability to provide input on its creation, staff took the request to the City Council on August 2, 2016 and recommended that a process for their creation be implemented. The City Council directed staff to develop an applicant initiated process for the review and processing of requests for Single-Story Overlay Districts in Single Family Residential (R-1) Zones (including guidelines and related Zoning Ordinance amendment(s)). The proposed process (See Attachment 2), discussed further below, is based on a review of processes adopted by neighboring jurisdictions of Los Altos, Palo Alto, Sunnyvale and Mountain View, and the existing City processes for community driven petitions (e.g. Permit Parking and Rural/Semi-Rural designation for determination of street improvements (See Attachment 3.)) MCA-2017-02 Citywide March 14,2017 Page 3 This staff report first summarizes the proposed process and then discusses various characteristics and proposed thresholds of the process. Currently, the draft ordinance includes staff's recommendations. If the Planning Commission desires, it could consider amendments to the proposal in its recommendation for the City Council's consideration. Proposed Overlay Process The proposed process for establishing or removing a Single-Story Overlay District can be summarized as follows: 1. An applicant would circulate a petition within the area where the Single-Story Overlay District is being proposed. 2. If the petition is signed by a certain percentage of the owners within the proposed District, the applicant would submit an application to the City. 3. City staff would begin working on the application including a review of typical zoning requirements such as ensuring compliance with established regulations and any related environmental review. 4. The application would include a formal mail-in voting process for the property owners with each developable lot getting one vote. 5. An application would only move forward and be scheduled for public hearings with Planning Commission and City Council for final determination if a majority of a neighborhood was in agreement with creating the single-story overlay. In order to help applicants understand the process, staff will also provide a guideline for submittal and the process. A draft outline of the guideline is attached (Attachment 4.) Characteristics and Thresholds Overlay District Boundary and Characteristics: Sased on a review of the neighboring jurisdictions, a requirement to make the boundaries of the proposed Single-Story Overlay District correspond to natural or man-made features (such as, streets, waterways, existing zoning boundaries etc.) to define an identifiable neighborhood is standard practice. In addition, requiring that a majority of the existing homes in the proposed district be single-story, helps in the creation of a definable district that has some common characteristics. The proposed ordinance requires that at least 75 percent of the existing homes in the proposed Overlay District, with boundaries corresponding to natural or man-made features, be single story. All the cities and petition processes reviewed require the identification of discernable boundaries. In addition, the City of Mountain View requires 51 percent, while the cities of Palo Alto and Sunnyvale require 80 percent and 75 percent of the existing homes in the proposed Overlay District to be single story. However, the City of Los Altos does not MCA-2017-02 Citywide March 14,2017 Page 4 have a requirement that a majority of the existing homes in the proposed Overlay District be single-story. Petition: The draft ordinance requires that the petition circulated by the applicant within the proposed Overlay District include a map of the proposed Single-Story Overlay District, property addresses,property owner name(s), signature(s) and contact information of the petitioner (in case of questions). Original Petition Thresholds: The draft ordinance requires that in order for an application to be eligible for submission, a minimum of 66-2/3 percent (or two-thirds) of the properties in the proposed District must sign the original petition. The City of Los Altos requires 50 percent of the property owners to proceed, while the cities of Palo Alto, Mountain View and Sunnyvale require 70 percent, 50 percent and 55 percent respectively. The proposed threshold is consistent with the current threshold required for the City's permit parking and rural/semi-rural designation petition processes. Mail-in Ballot Threshold: Once an application is made,based on the above qualifications, mail-in ballots would be sent out and collected by the City. The cities of Los Altos and Mountain View have a requirement that two-thirds of the ballots received by the City must be in favor of the proposal for proceeding to a public hearing. Neither the cities of Sunnyvale and Palo Alto,nor Cupertino's permit parking and rural/semi-rural designation petition processes, have a mail in ballot provision. The draft ordinance proposes that a minimum of 66-2/3 percent (or two-thirds) of the properties within the proposed District must vote in favor of the proposal in order for the application to move forward and be scheduled for hearings. Staff is recommending this so that the City has an independent process whereby ballots are sent to the property owners in the proposed District and received back from each property owner by a deadline. Deadline for Main in Ballot Receipt: While the City of Los Altos allows four (4) weeks to return ballots to the city, the City of Mountain View (which does not have any codified requirements on this) allows, as a matter of practice, five (5) weeks to return ballots on this issue to the city. The proposed regulations recommend a six (6) week deadline for the ballots to be received by the city. In order to ensure that property owners have adequate time to respond to the mail in MCA-2017-02 Citywide March 14,2017 Page 5 ballot for the implementation of the Single-Story Overlay District, an extended deadline is recommended. Site Signage: The City currently requires, that in addition to the public hearing notices required for zoning applications,that site signage be placed in the front yard of the property(ies)being re-zoned. However, since this process would establish a zoning district, an area larger than a few properties, the draft ordinance proposes that site signage be placed in the closest yard at the boundaries of the proposed Overlay District. For such an application, multiple site signs may be required. Application Fees and Deposits Fees: Staff is reviewing the application fees and deposits required by the other cities, and will provide a recommendation to City Council. NOTICING AND COMMUNITY OUTREACH The following table is a brief summary of the noticing for this project: Notice of Public Hearing Agenda ■ Legal ad placed in newspaper ■ Posted on the City's official notice (at least 10 days prior to hearing) bulletin board �five days prior to hearing) ■ Display ad placed in newspaper ■ Posted on the City of Cupertino's Web (at least 10 days prior to hearing) site �five days prior to hearing) In addition, Staff held a Public Outreach Meeting on December 7, 2017. Two (2) members of the public attended the meeting.They had an opportunity to view a draft of the process and were supportive of the proposed process. The City has also prepared a list of Frequently Asked Questions that is available online and attached as Attachment 5. ENVIRONMENTAL REVIEW This project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA, Section 15063 (b) (3)). NEXT STEPS The recommendations made by the Planning Commission will be forwarded to the City Council for consideration. Upon a final decision by the City Council, the ordinance will need a second reading at a subsequent hearing. The ordinance will be effective 30 days after the second reading. MCA-2017-02 Citywide March 14,2017 Page 6 Prepared by: Erick Serrano, Associate Planner Piu Ghosh, Principal Planner Reviewed by: Approved by: Senjamin Fu Aarti Shrivastava Assistant Director of Community Development Assistant City Manager ATTACHMENTS 1. Draft Resolution of the Planning Commission recommending adoption of the Draft Ordinance 2. Redline document indicating changes in Chapters 19.12, 19.20, and 19.28 3. Comparison of Neighboring Jurisdictions Single-Story Overlay District, City of Cupertino Semi-Rural Designation, and City of Cupertino Permit Parking processes 4. Draft Guidelines for Submittal of an Application for Single-Story Overlay District 5. Frequently Asked Questions CITY OF CUPERTINO 10300 Torre Avenue Cupertino, California 95014 DRAFT RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF CUPERTINO RECOMMENDING THAT THE CITY COUNCIL APPROVE AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING TITLE 19, ZONING, OF THE CUPERTINO MUNICIPAL CODE CHAPTER 19.12 (ADMINSTRATION), CHAPTER 19.20 (PERMITTED, CONDITIONAL AND EXCLUDED USES IN AGRICULTURAL AND RESIDENTIAL ZONES, AND CHAPTER 19.28 (SINGLE-FAMILY RESIDENTIAL (R-1) ZONES), TO CREATE A SINGLE-STORY OVERLAY DISTRICT PROCESS The Planning Commission recommends the City Council: 1. Find that the Ordinance 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; and further find that 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; and 2. Adopt the proposed Ordinance in substantially the form as shown in Exhibit "A" attached hereto and entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING TITLE 19, ZONING, OF THE CUPERTINO MUNICIPAL CODE CHAPTER 19.12 (ADMINSTRATION), CHAPTER 19.20 (PERMITTED, CONDITIONAL AND EXCLUDED USES IN AGRICULTURAL AND RESIDENTIAL ZONES, AND CHAPTER 19.28 (SINGLE- FAMILY RESIDENTIAL (R-1) ZONES), TO CREATE A SINGLE-STORY OVERLAY DISTRICT PROCESS 1 PASSED AND ADOPTED this 14th day of March 2017, at a Regular Meeting of the Planning Commission of the City of Cupertino, State of California, by the following roll call vote: AYES: COMMISSIONERS: NOES: COMMISSIONERS: ASSTAIN: COMMISSIONERS: ASSENT: COMMISSIONERS: ATTEST: APPROVED: Sen Fu Don Sun Assistant Community Development Director Chair, Planning Commission - 2 - MCA-2017-02 EXHISIT "A" Draft Ordinance No. 17-XXXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING TITLE 19, ZONING, OF THE CUPERTINO MUNICIPAL CODE AND CHAPTER 19.12 (ADMINSTRATION), CHAPTER 19.20 (PERMITTED, CONDITIONAL AND EXCLUDED USES IN AGRICULTURAL AND RESIDENTIAL ZONES, AND CHAPTER 19.28 (SINGLE-FAMILY RESIDENTIAL (R-1) ZONES), TO CREATE A SINGLE-STORY OVERLAY DISTRICT PROCESS WHEREAS, on August 2, 2016, the City Council directed Staff to develop a process to allow applicants to submit applications for initiating Single-Story Overlay Districts; WHEREAS, a community meeting was held on December 7, 2016 to allow the public an opportunity to review the draft regulations; WHEREAS, the necessary public notices have been given as required by the procedural ordinances of the City of Cupertino and the Government Code, and the Planning Commission held public hearings on March 14, 2017 to consider the project; and WHEREAS, with Resolution No. XXXX the Planning Commission has recommended on a X-X vote that the amendments to the Municipal Code be granted; and WHEREAS, on April 18, 2017, upon due notice, the City Council has held at least one public hearing to consider these amendments to the Municipal Code be granted; and 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: 3 SECTION 1. Section 19.12.030, of Chapter 19.12 of Title 19 of the Cupertino Municipal Code is hereby amended to read as follows: 19.12.030 Approval Authority Table 19.12.030 shows the approval authority, Noticing Radius, Expiration Date and Extension Dates for different types of Permits. Desi�n Public Hearin�/ Noticin�/ Posted Tvpe of Permit or Decision Administrativ Plannin� Citv Ex�iration Cha�ter/ Review Public Meetin�/ Noticin� Site �—B e Review Commission Council Date E Findin�s Committee Comment Period� Radius° Notice General Plan Amendment Major F - - R F PH CA. Govt. Code YeS - CA. Govt. Minor� - - R F PH 65350-65362 YeS Code 65350-65362 Zonin Ma Amendments Ma'or F - - R F PH Yes - Minor � - - R F PH CA. Govt. Code Yes - Single Story Overlay _ _ R F PH 65853- 65856 YeS 19.152.020 District Zoning Text Amendments - - R F PH CA. Govt. Code _ _ 19.152.030 65853- 65856 Specific Plans - - R F PH CA. Govt. Code _ 20.04.030 65350-65362 Development Agreements - - R F PH CA. Govt. Code yes - 19.144.120 65867 Develo ment Permits Ma'or F�H - - F/R Al/F PM Yes 2 ears 19.12.110/300' 19.156.050 Minor� F - A1 Az PM Yes 2 ears Conditional Use Permits Ma'or F,x,I F - Al/F/R Al/Az/F PH CA. Govt. Code Yes 2 ears 19.156.050 4 Desi�n Public Hearin�/ Noticin�/ Posted Tvpe of Permit or Decision Administrativ Plannin� Citv Ex�iration Cha�ter/ Review Public Meetin�/ Noticin� Site �—B e Review Commission Council Date E Findin�s Committee Comment Period� Radius D Notice Minor��I F - Al/F/R Al/Az/F PH 65905 Yes 2 years Temporary F - A1 Az - None No 1 year None 19.160.030 Densi Bonus (Residential) - R F Based on concurrent a lication 19.52 Adult-Oriented Commercial CA. Govt. Code 19.128.030& R F PH Yes 2 years Activi (CUP) 65905/300' 19.128.040 Architectural and Site A roval Ma'or J F - A1 Az PM 19.12.110/ Yes 2 ears Minor K F - A1 Az PM Adjacent Yes 2 ears 19.168.030 Amendment Ma'or F�H - - F A1 PM/PH Yes 2 ears 19.44, 19.12.110/300' 19.156, Minor � F - A1 Az PM/PH Yes 2 years 19.164 Minor Modification F - A1 Az - None No 2 ears 19.164 Hillside Exception/Height 19.40.080, Exception/Heart of the City - - F A1 PH 19.12.110/300' Yes 2 years 19.24.070, Exce tion I 19.136.090 Variance F - A1 Az PH CA. Govt. Code yes 2 years 19.156.060 65905 Status of non-conforming F A1 PH 19.12.110/ yes - 19.140.110 Use 300' De ends on Wireless Antennas I F - F/A1 Az Varies I p Yes 2 years 19.136.090 a lication e Si s Permits F - A1 Az - None No 1 ear 19.104 Neon, Reader board & F F A1 L PM 19.12.110/ No 1 ear 19.104 Freewa Oriented Si ns I 300' y - 5 - Desi�n Public Hearin�/ Noticin�/ Posted Tvpe of Permit or Decision Administrativ Plannin� Citv Ex�iration Cha�ter/ Review Public Meetin�/ Noticin� Site �—B e Review Commission Council Date E Findin�s Committee Comment Period� Radius D Notice Pro rams F - A1 Az - None No 1 ear 19.104 Exceptions I - F _ A�L PM 19.12.110/ yes 1 year 19.104.290 Adjacent 19.12.110/ Parking Exceptions I F F A1 A1 L/Az Varies M N Yes 1 year 19.124.050 Adjacent/300' Fence Exceptions - F _ A�L PM 19.12.110/ yes 1 year 19.48.060 Adjacent Front Yard Interpretation F - A1 Az PM 19.12.110/ yes 1 year 19.08 Adjacent R1 Ordinance Permits Two-stor r F F F/A� A�ti/A� Varies r Yes 1 year Minor Residential F - A1 Az CP 19.12.110/ No 1 ear 19.28.140 Adjacent Exce tions I - F - A1 L PM Yes 1 ear Protected Trees Adjacent/ Tree Removal F - A1 Az CP Dep�pdin�g on yes 1 year 14.18.180 application Heritage Tree � , - - F A PM 19.12.110/300 Yes - 14.18 Designation & Removal Tree Mana ement Plan F - A1 Az - None No - 14.18 Retroactive Tree Removal F - A1 Az - None No - 14.18 Reasonable Accommodation F - A1 Az - None No 1 ear 19.52.050 Extensions° Parking, Fence & Sign Exceptions &Front Yard F - A1 Az - None No 1 year Interpretations - 6 - Desi�n Public Hearin�/ Noticin�/ Posted Tvpe of Permit or Decision Administrativ Plannin� Citv Ex�iration Cha�ter/ Review Public Meetin�/ Noticin� Site �—B e Review Commission Council Date E Findin�s Committee Comment Period� Radius D Notice Neon, Reader board & F A1 Az - None No 1 year Freeway Oriented Signs Two Story Permits, Minor Residential F - A1 Az - None No 1 year Permits and Exceptions Tree Removals F - A1 Az - - No 1 ear All other ro'ects F - A1 Az - 19.12.110/None No 2 ears Key: R—Review and recommendation body F — Final decision-making body unless appealed Al —Appeal Body on first appeal A2 — Appeal body on second appeal PH-Public Hearing PM-Public Meeting CP- Comment Period Notes: A. Permits can be processed concurrently with other applications, at the discretion of the Director of Community Development. B. Projects with combined applications shall be processed at the highest level of approval in conformance with Section 19.04.090. C. Public Hearing: Projects types that need noticing pursuant to the CA Government Code; Public Meeting: Project types that need only a mailed notice and no newspaper notices; Comment Period: Project types that need only a mailed notice and do not need a public hearing or public meeting. D. Noticing Radius of an application in a combined application shall correspond to the maximum noticing radius required for any one of the applications. E. Expiration date of an application in a combined application shall correspond to the maximum expiration date allowed for any one of the development applications (not including Subdivision Map Act applications, General Plan Amendments and Zoning Map or Text Amendments.) - 7 - F. Major General Plan Amendment, Conditional Use Permit, Development Permit application - for more than ten thousand square feet of commercial and/or industrial and/or office and/or other non-residential use, or greater than six residential units G. Minor General Plan Amendment, Conditional Use Permit, Development Permit application- for ten thousand square feet or less of commercial and/or industrial and/or office and/or other non-residential use, or six or less residential units. H. City Council review for applications with new development greater than fifty thousand square feet of commercial, and/or greater than one hundred thousand square feet of industrial and/or office and/or other non-residential use, and/or greater than fifty residential units. Planning Commission review for all other applications. I. Please see specific zoning district regulations or chapters in this title that apply to the subject property or project for approval authority. J. Major Architectural and Site Approval application - architectural and site approval for all projects that are not a Minor Architectural and Site Approval application. K. Minor Architectural and Site Approval application - single family home in a planned development zoning district, minor building architectural modifications, landscaping, signs and lighting for new development, redevelopment or modification in such zones where review is required and minor modifications of duplex and multi-family buildings. L. Appeals of Design Review Committee decisions shall be heard by the City Council. M. Parking Exceptions approved by the Director of Community Development need a comment period. Parking Exceptions approved by the Design Review Committee need a public meeting. N. Parking Exceptions in Single-family residential (R1) zones and Duplex (R2) zones need adjacent noticing. All other Parking Exceptions need notices within three hundred feet of the exterior boundary of the subject property. O. Application must be filed prior to expiration date of permit. Permit is extended until decision of the Approval Body on the extension. - 8 - SECTION 2. Section 19.12.080, "Application Process", of Chapter 19.12 of Title 19 of the Cupertino Municipal Code is hereby amended to read as follows: 19.12.080 Application Process The following provisions outline the requirements for the filing of applications for permits, entitlements, amendments, and approvals. Unless otherwise specified in this title, all applications for permits, entitlements, amendments and approvals required by this title shall be filed in compliance with this section. Applications for permits, permit modifications, amendments and other matters pertaining to this Chapter shall be filed with the Director of Community Development with the following: A. An application for permit may be made by the owner of record, his or her agent, lessee(s) of property, or person(s) who have contracted to purchase or lease property contingent upon their ability to acquire the necessary permit under this title and who have written authorization from the property owner to make an application. S. Application shall be made on a form provided by the City, and shall contain the following, unless waived by the Director of Community Development based on the scope of the proposed project: 1. A complete legal description of the subject property and map showing the location of the property for which the permit is sought; 2. A preliminary title report of the subject property; 3. The proposed site development plan indicating: the location of all buildings and structures; the location and types of land uses; paved areas, such as roadways, driveways and walkways; and general landscaping scheme; 4. Architectural drawings of the proposed development, building additions or other structures. Drawings shall indicate building height, colors, materials, window treatment and other architectural features; 5. Maps showing the locations of buildings; 6. Renderings showing building heights and square footages; 7. Maps showing the precise location of roads, streets, alleys and access points; 8. A traffic analysis, if required; 9. A construction plan; 10. Any property/development with a Homeowner's Association (HOA) or Architectural Review Soard (ARS) shall provide a letter of approval from said HOA Soard or ARS; 9 11. The Director of Community Development may reasonably require additional information which is pertinent and essential to the application; 12. Zoning Map or Text Amendments shall also include information required per Chapter 19.152. a. Zoning applications for establishment or removal of Single-Story Overlay District in Single Family (R1) zoning districts (Single-Story Overlay District Applications) shall also include information required per Section 19.28.050(S); b. Zoning applications for Multi-Family (R3) Residential shall also include information required per Section 19.36.040; c. Zoning applications for Residential Single-family Cluster (R1C) initiated by a property owner, or his or her designee, shall also include items identified in Section 19.44.050(H); and d. Zoning applications for Planned Development Zoning Districts shall also include information required per Section 19.80.040. 13. Planned Development Permit and Development Permit applications shall also include information required per Section 19.156.010; 14. Conditional Use Permits and Variances shall also include information required per Section 19.156.020; 15. Density Sonus Permit applications shall also include information required per Section 19.56.060; 16. Conversion of Apartment Projects to Common Interest Developments applications shall also include information required per Section 19.116.050; and 17. Sign Permit Applications should also include information required per Section 19.104.040. C. Application shall be accompanied by the fee prescribed by City Council resolution, no part of which shall be returnable to the applicant. D. The Approval Authority is granted the authority to make the decision to grant, deny, or impose conditions or restrictions on a permit or other action on a permit as well as to conduct and make any decisions necessary for environmental review under the California Environmental Quality Act. SECTION 3. Section 19.12.090, "Action by Director", of Chapter 19.12 of Title 19 of the Cupertino Municipal Code is hereby amended to read as follows: 19.12.090 Action by Director. Upon receipt of an application for a permit, the Director of Community Development shall: - 10 - A. Within thirty days determine whether the application is complete or needs additional information and shall inform the applicant. B. Mail ballots to the property owners of record of the properties affected by a Single- Story Overlay District Application. The ballot shall, in addition to information related to the proposal, include the following information: 1. Proposed Single-Story Overlay District Map pursuant to Section 19.28.050(S)(1); 2. Statement indicating that each developable lot of record shall have one (1) vote; and 3. A date, forty-five (45) calendar days from the date of mailing of the ballot, on which a completed ballot must be postmarked or received by the City in order to be accepted. C. Not later than a period stipulated in Section 19.12.100, Decision, below: 1. Set a date for a public hearing or public meeting upon the matter at a regular or special meeting of the approval authority for the project for applications that require a public hearing or public meeting, except that Single-Story Overlay District Applications shall be scheduled for a public hearing, only if the result of the mailed ballot, pursuant to 19.12.090(S) above, indicates support of more than sixty-six and two-thirds (66 2/3) percent by the property owners within the proposed or existing Single-Story Overlay District; or 2. Send notice in accord with the requirements of 19.12.110(D) for applications that do not need a public hearing or public meeting. SECTION 4. Section 19.12.110, "Noticing", of Chapter 19.12 of Title 19 of the Cupertino Municipal Code is hereby amended to read as follows: 19.12.110 Noticing. A. Notice of Public Hearing: Noticing shall be provided in the following manner for applications that need a public hearing: 1. Notice of hearing shall be given by publication once in a local newspaper of general circulation not less than ten days prior to the date of the hearing as provided in Section 65090 of the California Government Code; 2. The City shall mail written notice by first class mail to: - 11 - a. Each owner of record of real property within the noticing radius per Section 19.12.030 of the exterior boundary of the property for which the application is made as the owner of record is shown in the last tax assessment roll pursuant to Section 65091 of the California Government Code; b. Owner(s) of subject site or his or her authorized agent c. Project applicant(s) d. Local agencies expected to provide water, sewage, streets, roads, schools or other essential facilities or services to the proposed project; e. Any individual or entity that has filed a written request with the City Clerk requesting notification of public hearings 3. If the number of owners to whom notice would be mailed or delivered pursuant to subsection A2 above is greater than one thousand, in lieu of mailed or delivered notice, the Director may provide published notice as provided in Government Code Section 65091(3). 4. The notice shall contain the following: a. The exact address of the property, if known, or the location of the property, if the exact address is not known; b. The date on which action on the application will be taken; c. A brief description, the content of which shall be in the sole discretion of the City, of the proposed project; d. Reference to the application on file for particulars; e. A statement that any interested person, or agent thereof, may contact the city for additional information and/or plans. Typographical and/or publishing errors shall not invalidate the notice nor any City action related to the notice. B. Notice of Public Hearing for Zoning Text Amendments: 1. For amendments to zoning regulations: Notice of such hearing (publication) shall be given in the manner prescribed in Section 19.12.110 A(1) of this chapter. 2. For amendments to permitted uses of real property: Notice (mailing or publication) shall be given pursuant to Sections 19.12.110 A(2) or A(3), as the case may be. C. Notice of Public Meeting For projects requiring notice of a public meeting, notice shall be mailed in accord with 19.12.110A(2) or A(3), as the case may be, at least ten days prior to the date of the meeting date. - 12 - D. Notice of Comment Period: For projects requiring notice of a comment period, notice shall be mailed in accord with 19.12.110A(2) and A(5), fourteen calendar days prior to the date of action on the application. 1. For permits issued pursuant to Chapter 19.28, Single Family Residential, the mailed notice shall include a copy of the site plan and elevation plans of the proposed project. 2. For permits issued pursuant to Chapter 14.18, Protected Trees, the mailed notice shall include a copy of the site plan and tree replacement/mitigation plan. E. The City may also give notice of public hearings/public meetings in any other manner it deems necessary or desirable. If the Director of Community Development believes the project may have impacts beyond the range of the mailed notice, particularly on nearby residential areas, the Director, in his or her discretion, may expand noticing beyond the stated requirements in Section 19.12.030. Compliance with the procedures set forth in this section shall constitute a good-faith effort to provide notice, and the failure to provide notice, and the failure of any to receive notice, shall not prevent the City from proceeding with a hearing, meeting or from taking any action nor affect the validity of any action. F. Posted Site Notice: 1. Applicants shall install notice(s) on the subject site that is/are clearly visible from the street in accord with the requirements of Table 19.12.030. a. Applicants must install a public notice in the front yard of the subject site, except that for Single-Story Overlay District Applications, the notice(s) shall be installed in the closest yard at the boundary(ies) of the proposed District. b. For all applications other than Two Story Permits, Residential Design Review and Tree Removal applications in R1 or R2 zones, if the subject site has more than one property line abutting a street, the applicant may be required to install more than one notice. c. The notice shall be a weatherproof sign, at least 2 feet tall and 3 feet wide, firmly attached to a 5 foot tall post. 2. The notice shall be placed at least 14 days prior to the decision/public hearing and shall remain in place until an action has been taken on the application and the appeal period has passed. 3. The notice shall contain the following: - 13 - a. The exact address of the property, if known, or the location of the property, if the address is not known; b. A brief description of the proposed project, the content of which shall be at the sole discretion of the City; c. City contact information for public inquiries; d. A deadline for the submission of public comments; e. If proposing a physical alteration to an existing building or new buildings, at least one of the following visual representations of the proposed project: i. A color perspective drawing or three-dimensional (3-D) photographic simulation of the proposed project, in a size deemed appropriate by the Director of Community Development. ii. For Two Story Permits and Residential Design Review applications, a color or black and white perspective drawing or three-dimensional (3-D) photographic simulation of the proposed project, at least 11 inches by 17 inches in size. iii. Visual Representation is not required for applications that do not have a material change in the physical appearance of the property. SECTION 5. Section 19.20.020, "Permitted, Conditional and Excluded Uses in Agricultural and Residential Zones", of Chapter 19.20 of Title 19 of the Cupertino Municipal Code is hereby amended to read as follows: Table 19.20.020—Permitted, Conditional and Excluded Uses in Agricultural and Residential Zones Uses Zoning Districts A A-1 R-1 RHS R1C R-2 R-3 5. Two-story structures in an area designated for one-story limitation pursuant to Section 19.28.040 (I) of this chapter, provided that the CUP- Planning Commission determines that the structure will not result in privacy impacts, PC shadowing or intrusive noise, odor, or other adverse impacts to the surrounding area; SECTION 6. Section 19.28.040, "Permits Required for Development", of Chapter 19.28 of Title 19 of the Cupertino Municipal Code is hereby amended to read as follows: 19.28.040 Permits Required for Development. Table 19.28.040 sets forth the planning permits required for development in the Single- Family Residential district. - 14 - Planning permit required prior to Approval Type of Project building permit application authority A.None One-story project that does not require exception or variance from the re uirements of this ordinance S. Minor Residential Permit, 1. One-story encroachment into a required rear yard pursuant to Chapter 19.12, setback, subject to requirements of Section Administration 19.28.070 2. One-story extension of an existing side yard nonconforming building wall line, subject to requirements of Section 19.28.100 in all districts exce t R1-a 3. One-story project with a gable end of a roof enclosing an attic space projecting outside the building envelope , subject to requirements of Section 19.28.070 or 19.28.080 4. New or expanded second story deck or balcony with views into neighboring residential side or rear ards in all districts exce t R1-a Admin. 5. Any active or passive solar structure that requires variation from the setback or height restrictions of this chapter, provided that provided that no such structure shall infringe upon solar easements or ad'oinin ro er owners 6. One or two-story addition or new home on a sloped single-family residential lot with development on building pads/graded areas with actual slopes equal to or greater than 20% and with total floor area ratio of all structures on the lot reater than 35% C. Director's Minor Modification, Encroachment of porch elements into the required pursuant to Chapter 19.12, front yard setback in the R1-a zone, subject to the Administration re uirements of Section 19.28.100. D.Two-Story Permit, pursuant to Two-story addition or new two-story home in all Chapter 19.12, Administration districts that do not require Residential Design Review per Section 19.28.040 (E) except in an R1-a zone. - 15 - Planning permit required prior to Approval Type of Project building permit application authority E. Residential Design Review, Two-story addition or new two-story home in all pursuant to Chapter 19.12, districts except R1-a where: Administration Admin. 1. Second floor to first floor area ratio is greater than with 66%, except any second to first floor ratio for design development on building pads/graded areas with review actual slopes equal to or greater than 20%; and/or 2. Where second story side yard setback(s) are less than 15 feet to an interior side ro er line DRC Two-story addition, new two-story home, and/or with second story deck in the R1-a zone design review F. Exception, pursuant to Chapter One or two-story project requesting an exception 19.12, Administration & Section from Sections 19.28.070 [Development Regulations 19.28.130, Exceptions DRC (Suilding)], 19.28.080 [Eichler R1-e Suilding Design Requirements], and/or 19.28.110 [Landscape Re uirements]. G.Hillside Exception, pursuant to Development (area greater than 500 square feet) on Cha ter 19.12, Administration slo es reater than 30% H.Architectural and Site Approval, One or two-story addition or new home on a sloped pursuant to Chapters 19.12, single-family residential lot with development on Administration PC building pads/graded areas with actual slopes equal to or greater than 20% and where the cut plus fill of the site exceeds 2,500 cubic ards I. Minor Conditional Use Permit, Two-story addition or new two-story home in an R1 pursuant to Chapters 19.12, zoning district with an "i" suffix Administration J. Single-Story Overlay District Establishment or removal of a Single-Story Overlay Application, pursuant to District in a Single Family Residential District Chapter 19.12, Administration CC (Addition or removal of the "i" suffix in an R1 zoning district) - 16 - SECTION 7. Section 19.28.050, "Zoning Districts Established", of Chapter 19.28 of Title 19 of the Cupertino Municipal Code is hereby amended to read as follows: 19.28.050 Zoning Districts Established. A. Table 19.28.050 (A) below sets forth the zonin districts established. Zoning Zoning Definition Designation R1-X Single Family Residential District- Minimum lot area corresponds to the number (X), multi lied b 1,000 s uare feet R1-Xi Residential Single-Family Single-Story Overlay District to limit homes to one Story (not to exceed 18 feet high)- [minimum lot area corresponds to the number (X), multiplied by 1,000 square feet preceding the 'i symbol]. May be combined with all R1 zoning desi nations. R1-6e Sin le Famil Residential Eichler District (6,000 minimum lot area) R1-a Single Family Residential District with Semi-Rural Characteristics (10,000 s uare foot minimum lot area) S. Establishment or Removal of an existing Single-Story Overlay District (R1-Xi): In addition to the application requirements identified in Chapter 19.12.080, the applicant shall submit the following: 1. Map delineating proposed boundaries for the Single-Story Overlay District, or removal thereof, corresponding to natural or man-made features (including, but not limited to, streets, waterways, zoning boundaries and similar features,) which would result in the establishment of an identifiable neighborhood; 2. Evidence, to the satisfaction of the City, for an establishment of a Single-Story Overlay, that a minimum of seventy-five (75) percent of the homes within the proposed Single-Story Overlay District are single-story; 3. A written statement setting forth the reasons for the application and all facts relied upon by the applicant in support thereof; 4. Original application petition signed, at a minimum, by sixty-six and two-thirds (66-2/3) percent of the property owners of record within the proposed or existing Single-Story Overlay District. The petition shall contain information about the proposal including, but not be limited to, the following: a. Map pursuant to Section 19.28.050(S)(1) b. Property Addresses c. Property Owner Name(s) and Original Signature(s) d. Applicant Contact Information - 17 - SECTION 8: Severabilitu. 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 9: E ffective Date. This Ordinance shall take effect thirty days after adoption as provided by Government Code Section 36937. SECTION 10: 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 11: Continuitu. To the extent the provisions of this Ordinance are substantially the same as previous provisions of the Cupertino Municipal Code, these provisions shall be construed as continuations of those provisions and not as amendments of the earlier provisions. INTRODUCED at a regular meeting of the Cupertino City Council the day of 2017 and ENACTED at a regular meeting of the Cupertino City Council on this of 2017 by the following vote: AYE S: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: City Clerk Mayor, City of Cupertino - 18 - � � w U O [Section 19.12.010 - 19.12.020 - No Change] � � Q w � O a Table 19.12.030 shows the approval authority, Noticing Radius, Expiration Date and Extension Dates for different types of Permits. O � Table 19.12.030:Approval Authority Desi�n Public Hearin�/ Noticin�/ Posted Tvpe of Permit or Decision Administrative Plannin� Citv Ex�iration Cha�ter/ Review Public Meetin�/ Noticin� Site �—B Review Commission Council Date E Findin�s Committee Comment Period� Radius° Notice General Plan Amendment Major F - - R F PH CA. Govt. Code YeS - CA. Govt. c 65350-65362 Code 65350- Minor - - R F PH Yes - 65362 Zonin Ma Amendments Ma'or F - - R F PH Yes - Minor� - - R F PH CA. Govt. Code Yes - Single Story Overlay _ _ R F PH 65853- 65856 YeS 19.152.020 District Zoning Text Amendments - - R F PH CA. Govt. Code _ _ 19.152.030 65853- 65856 Specific Plans - - R F PH CA. Govt. Code _ 20.04.030 65350-65362 Development Agreements - - R F PH CA. Govt. Code yes - 19.144.120 65867 Develo ment Permits Ma'or F�H - - F/R Al/F PM 19.12.110/300' Yes 2 ears Minor� F - A1 Az PM Yes 2 ears 19.156.050 Conditional Use Permits Ma'or F,x,I F - Al/F/R Al/Az/F PH CA. Govt. Code Yes 2 ears Minor��I F - Al/F/R Al/Az/F PH 65905 Yes 2 years 19.156.050 - 1 - Desi�n Public Hearin�/ Noticin�/ Posted Tvpe of Permit or Decision Administrative Plannin� Citv Ex�iration Cha�ter/ Review Public Meetin�/ Noticin� Site �—B Review Commission Council Date E Findin�s Committee Comment Period� Radius D Notice Temporary F - A1 Az - None No 1 year None 19.160.030 Densi Bonus (Residential) R F Based on concurrent a lication 19.52 Adult-Oriented Commercial CA. Govt. Code 19.128.030 & R F PH Yes 2 years Activity (CUP) 65905/300' 19.128.040 Architectural and Site Approval Major 1 F - A� A� PM 19.12.110/ Yes 2 years Minor K F - A1 Az PM Adjacent Yes 2 years 19.168.030 Amendment Ma'or F�H - - F A1 PM/PH Yes 2 ears 19.44, 19.12.110/300' 19.156, Minor� F - A1 Az PM/PH Yes 2 years 19.164 Minor Modification F - A1 Az - None No 2 ears 19.164 Hillside Exception/Height 19.40.080, Exception/Heart of the City - - F A1 PH 19.12.110/300' Yes 2 years 19.24.070, Exception I 19.136.090 Variance F - A1 Az PH CA. Govt. Code yes 2 years 19.156.060 65905 Status of non-conforming F A1 PH 19.12.110/ yes - 19.140.110 Use 300' Depends on Wireless Antennas I F - F/A1 Az Varies I application Yes 2 years 19.136.090 type Signs Permits F - A1 Az - None No 1 ear 19.104 Neon, Reader board & F F A1 L PM 19.12.110/ No 1 ear 19.104 Freewa Oriented Si ns I 300' y -2- Desi�n Public Hearin�/ Noticin�/ Posted Tvpe of Permit or Decision Administrative Plannin� Citv Ex�iration Cha�ter/ Review Public Meetin�/ Noticin� Site �—B Review Commission Council Date E Findin�s Committee Comment Period� Radius D Notice Pro rams F - A1 Az - None No 1 ear 19.104 Exceptions I - F - A1 L PM 19.12.110/ yes 1 year 19.104.290 Ad'acent 19.12.110/ Parking Exceptions I F F A1 A1 L/Az Varies M N Yes 1 year 19.124.050 Adjacent/300' Fence Exceptions - F - A1 L PM 19.12.110/ yes 1 year 19.48.060 Adjacent Front Yard Interpretation F - A1 Az PM 19.12.110/ yes 1 year 19.08 Ad'acent R1 Ordinance Permits Two-stor I F F F/A1 A1 L/Az Varies I Yes 1 ear Minor Residential F - A� A� CP 19.12.110/ No 1 ear 19.28.140 Adjacent Exce tions I - F - A1 L PM Yes 1 ear Protected Trees Adjacent/ Tree Removal F - A1 Az CP De�pdin�g on yes 1 year 14.18.180 a lication Heritage Tree Designation 1 , &Removal - - F A PM 19.12.110/300 Yes - 14.18 Tree Mana ement Plan F - A1 Az - None No - 14.18 Retroactive Tree Removal F - A1 Az - None No - 14.18 Reasonable Accommodation F - A1 Az - None No 1 year 19.52.050 Extensions° Parking, Fence &Sign Exceptions &Front Yard F - A1 Az - None No 1 year Inter retations -3- Desi�n Public Hearin�/ Noticin�/ Posted Tvpe of Permit or Decision Administrative Plannin� Citv Ex�iration Cha�ter/ Review Public Meetin�/ Noticin� Site �-B Review Commission Council Date E Findin�s Committee Comment Period� Radius D Notice Neon, Reader board & F A1 Az - None No 1 year Freewa Oriented Si ns Two Story Permits, Minor Residential Permits and F A1 Az - None No 1 year Exceptions Tree Removals F - A1 Az - - No 1 year All other projects F - A1 Az - 19.12.110/None No 2 years Key: R-Review and recommendation body F - Final decision-making body unless appealed Al -Appeal Body on first appeal Az- Appeal body on second appeal PH-Public Hearing PM-Public Meeting CP-Comment Period Notes: A. Permits can be processed concurrently with other applications, at the discretion of the Director of Community Development. B. Projects with combined applications shall be processed at the highest level of approval in conformance with Section 19.04.090. C. Public Hearing: Projects types that need noticing pursuant to the CA Government Code; Public Meeting: Project types that need only a mailed notice and no newspaper notices; Comment Period: Project types that need only a mailed notice and do not need a public hearing or public meeting. D. Noticing Radius of an application in a combined application shall correspond to the maximum noticing radius required for any one of the applications. E. Expiration date of an application in a combined application shall correspond to the maximum expiration date allowed for any one of the development applications (not including Subdivision Map Act applications, General Plan Amendments and Zoning Map or Text Amendments.) -4- F. Major General Plan Amendment, Conditional Use Permit, Development Permit application - for more than ten thousand square feet of commercial and/or industrial and/or office and/or other non-residential use, or greater than six residential units G. Minor General Plan Amendment, Conditional Use Permit, Development Permit application- for ten thousand square feet or less of commercial and/or industrial and/or office and/or other non-residential use, or six or less residential units. H. City Council review for applications with new development greater than fifty thousand square feet of commercial, and/or greater than one hundred thousand square feet of industrial and/or office and/or other non-residential use, and/or greater than fifty residential units. Planning Commission review for all other applications. I. Please see specific zoning district regulations or chapters in this title that apply to the subject property or project for approval authority. J. Major Architectural and Site Approval application - architectural and site approval for all projects that are not a Minor Architectural and Site Approval application. K. Minor Architectural and Site Approval application - single family home in a planned development zoning district, minor building architectural modifications, landscaping, signs and lighting for new development, redevelopment or modification in such zones where review is required and minor modifications of duplex and multi-family buildings. L. Appeals of Design Review Committee decisions shall be heard by the City Council. M. Parking Exceptions approved by the Director of Community Development need a comment period. Parking Exceptions approved by the Design Review Committee need a public meeting. N. Parking Exceptions in Single-family residential (R1) zones and Duplex (R2)zones need adjacent noticing. All other Parking Exceptions need notices within three hundred feet of the exterior boundary of the subject property. O. Application must be filed prior to expiration date of permit. Permit is extended until decision of the Approval Body on the extension. [Section 19.12.040 - 19.20.070 - No Change] -5- The following provisions outline the requirements for the filing of applications for permits, entitlements, amendments, and approvals. Unless otherwise specified in this title, all applications for permits, entitlements, amendments and approvals required by this title shall be filed in compliance with this section. Applications for permits, permit modifications, amendments and other matters pertaining to this Chapter shall be filed with the Director of Community Development with the following: A. An application for permit may be made by the owner of record, his or her agent, lessee(s) of property, or person(s) who have contracted to purchase or lease property contingent upon their ability to acquire the necessary permit under this title and who have written authorization from the property owner to make an application. B. Application shall be made on a form provided by the City, and shall contain the following, unless waived by the Director of Community Development based on the scope of the proposed project: 1. A complete legal description of the subject property and map showing the location of the property for which the permit is sought; 2. A preliminary title report of the subject property; 3. The proposed site development plan indicating: the location of all buildings and structures; the location and types of land uses; paved areas, such as roadways, driveways and walkways; and general landscaping scheme; 4. Architectural drawings of the proposed development, building additions or other structures. Drawings shall indicate building height, colors, materials, window treatment and other architectural features; 5. Maps showing the locations of buildings; 6. Renderings showing building heights and square footages; 7. Maps showing the precise location of roads, streets, alleys and access points; 8. A traffic analysis, if required; 9. A construction plan; 10. Any property/development with a Homeowner's Association (HOA) or Architectural Review Board (ARB) shall provide a letter of approval from said HOA Board or ARB; 11. The Director of Community Development may reasonably require additional information which is pertinent and essential to the application; 12. Zoning Map or Text Amendments shall also include information required per Chapter 19.152. - 6- � O a a. Zoning applications for establishment or removal of a Single-Story Overlay District � in Single Family (R1) zoning districts (Single-Story Overlay District Applications) Q shall also include information required per Section 19.28.050(B); � O b. Zoning applications for Multi-Family (R3) Residential shall also include information � required per Section 19.36.040; c Zoning applications for Residential Single-family Cluster (R1C) initiated by a property owner, or his or her designee, shall also include items identified in Section � 19.44.050(H); and � d. Zoning applications for Planned Development Zoning Districts shall also include � information required per Section 19.80.040. � 13. Planned Development Permit and Development Permit applications shall also include ��., information required per Section 19.156.010: Q 14. Conditional Use Permits and Variances shall also include information required per p Section 19.156.020. � 15. Density Bonus Permit applications shall also include information required per Section 19.56.060. 16. Conversion of Apartment Projects to Common Interest Developments applications shall also include information required per Section 19.116.050; and 17. Sign Permit Applications should also include information required per Section 19.104.040. C. Application shall be accompanied by the fee prescribed by City Council resolution, no part of which shall be returnable to the applicant. D. The Approval Authority is granted the authority to make the decision to grant, deny, or impose conditions or restrictions on a permit or other action on a permit as well as to conduct and make any decisions necessary for environmental review under the Califomia Environmental Quality Act. Upon receipt of an application for a permit, the Director of Community Development shall: A. Within thirty days determine whether the application is complete or needs additional information and shall inform the applicant. B. Mail ballots to the property owners of record of the properties affected by a Single-Story U, Overlay District Application. The ballot shall, in addition to information related to the U proposal,include the following information: p 1. District Map pursuant to Section 19.28.050(B)(1); �' Q w 2. Statement indicating that each developable lot of record shall have one (1) vote; and �'' O � 3. A date, forty-five (45) calendar days from the date of mailing of the ballot, on which a O completed ballot must be postmarked or received by the City in order to be accepted. � - 7- C. Not later than a period stipulated in Section 19.12.100, Decision,below: 1. Set a date for a public hearing or public meeting upon the matter at a regular or special � meeting of the approval authority for the project for applications that require a public U hearing or public meeting, except that Single-Story Overlay District Applications shall p be scheduled for a public hearing, only if the result of the mailed ballot, pursuant to � 19.12.090(B) above, indicates support of more than sixty-six and two-thirds (66 2/3) Q w percent by the property owners within the proposed or existing Single-Story Overlay � District; or �' O � 2. Send notice in accord with the requirements of 19.12.110(D) for applications that do not � need a public hearing or public meeting. [Section 19.12.100 - No Change] A. Notice of Public Hearing: Noticing shall be provided in the following manner for applications that need a public hearing: 1. Notice of hearing shall be given by publication once in a local newspaper of general circulation not less than ten days prior to the date of the hearing as provided in Section 65090 of the California Government Code; 2. The City shall mail written notice by first class mail to: a. Each owner of record of real property within the noticing radius per Section 19.12.030 of the exterior boundary of the property for which the application is made as the owner of record is shown in the last tax assessment roll pursuant to Section 65091 of the California Government Code; b. Owner(s) of subject site or his or her authorized agent c Project applicant(s) d. Local agencies expected to provide water, sewage, streets, roads, schools or other essential facilities or services to the proposed project; e. Any individual or entity that has filed a written request with the City Clerk requesting notification of public hearings 3. If the number of owners to whom notice would be mailed or delivered pursuant to subsection A2 above is greater than one thousand, in lieu of mailed or delivered notice, the Director may provide published notice as provided in Government Code Section 65091(3). 4. The notice shall contain the following: a. The exact address of the property, if known, or the location of the property, if the exact address is not known; b. The date on which action on the application will be taken; c A brief description, the content of which shall be in the sole discretion of the City, of the proposed project; -8- d. Reference to the application on file for particulars; e. A statement that any interested person, or agent thereof, may contact the city for additional information and/or plans. Typographical and/or publishing errors shall not invalidate the notice nor any City action related to the notice. B. Notice of Public Hearing for Zoning Text Amendments: 1. For amendments to zoning regulations: Notice of such hearing (publication) shall be given in the manner prescribed in Section 19.12.110 A(1) of this chapter. 2. For amendments to permitted uses of real property: Notice (mailing or publication) shall be given pursuant to Sections 19.12.110 A(2) or A(3), as the case may be. C. Notice of Public Meeting For projects requiring notice of a public meeting, notice shall be mailed in accord with 19.12.110A(2) or A(3), as the case may be, at least ten days prior to the date of the meeting date. D. Notice of Comment Period: For projects requiring notice of a comment period, notice shall be mailed in accord with 19.12.110A(2) and A(5), fourteen calendar days prior to the date of action on the application. 1. For permits issued pursuant to Chapter 19.28, Single Family Residential, the mailed notice shall include a copy of the site plan and elevation plans of the proposed project. 2. For permits issued pursuant to Chapter 14.18, Protected Trees, the mailed notice shall include a copy of the site plan and tree replacement/mitigation plan. E. The City may also give notice of public hearings/public meetings in any other manner it deems necessary or desirable. If the Director of Community Development believes the project may have impacts beyond the range of the mailed notice, particularly on nearby residential areas, the Director, in his or her discretion, may expand noticing beyond the stated requirements in Section 19.12.030. Compliance with the procedures set forth in this section shall constitute a good-faith effort to provide notice, and the failure to provide notice, and the failure of any to receive notice, shall not prevent the City from proceeding with a hearing, meeting or from taking any action nor affect the validity of any action. F. Posted Site Notice: 1. Applicants shall install notice(s) on the subject site that is/are clearly visible from the � street in accord with the requirements of Table 19.12.030. U a. Applicants must install a public notice in the front yard of the subject site, except that � for Single-Story Overlay District Applications, the notice(s) shall be installed in the Q closest yard at the boundary(ies) of the proposed District. cWn b. For all applications other than Two Story Permits, Residential Design Review and O Tree Removal applications in R1 or R2 zones, if the subject site has more than one � � -9- property line abutting a street, the applicant may be required to install more than one notice. c. The notice shall be a weatherproof sign, at least 2 feet tall and 3 feet wide, firmly attached to a 5 foot tall post. 2. The notice shall be placed at least 14 days prior to the decision/public hearing and shall remain in place until an action has been taken on the application and the appeal period has passed. 3. The notice shall contain the following: a. The exact address of the property, if known, or the location of the property, if the address is not known; b. A brief description of the proposed project, the content of which shall be at the sole discretion of the City; c. City contact information for public inquiries; d. A deadline for the submission of public comments; e. If proposing a physical alteration to an existing building or new buildings, at least one of the following visual representations of the proposed project: i. A color perspective drawing or three-dimensional (3-D) photographic simulation of the proposed project, in a size deemed appropriate by the Director of Community Development. ii. For Two Story Permits and Residential Design Review applications, a color or black and white perspective drawing or three-dimensional (3-D) photographic simulation of the proposed project, at least 11 inches by 17 inches in size. iii. Visual Representation is not required for applications that do not have a material change in the physical appearance of the property. [Section 19.12.120 - 19.20.010 - No Change] Table 19.20.020-Permitted,Conditional and Excluded Uses in Agricultural and Residential Zones Uses Zoning Districts A A-1 R-1 RHS R1C R-2 R-3 5. Two-story structures in an area designated for O one-story limitation pursuant to Section U 19.28.040 (I) of this chapter, provided that the W Planning Commission determines that the CUP- � PC � structure will not result in privacy impacts, U shadowing or intrusive noise, odor, or other adverse impacts to the surrounding area; [Section 19.24.010 - 19.28.030 - No Change] - 10- Table 19.28.040 sets forth the planning permits required for development in the Single-Family Residential district. Planning permit required prior to Approval Type of Project buildin ermit a lication authorit A.None One-story project that does not require exception or variance from the requirements of this ordinance B. Minor Residential Permit, 1. One-story encroachment into a required rear yard pursuant to Chapter 19.12, setback, sub'ect to re uirements of Section 19.28.070 Administration 2. One-story extension of an existing side yard nonconforming building wall line, subject to requirements of Section 19.28.100 in all districts except R1-a 3. One-story project with a gable end of a roof enclosing an attic space projecting outside the building envelope , subject to requirements of Section 19.28.070 or 19.28.080 4. New or expanded second story deck or balcony with views into neighboring residential side or rear yards Admin. in all districts exce t R1-a 5. Any active or passive solar structure that requires variation from the setback or height restrictions of this chapter, provided that provided that no such structure shall infringe upon solar easements or adjoining ro ert owners 6. One or two-story addition or new home on a sloped single-family residential lot with development on building pads/graded areas with actual slopes equal to or greater than 20% and with total floor area ratio of all structures on the lot greater than 35% C. Director's Minor Modification, Encroachment of porch elements into the required front pursuant to Chapter 19.12, yard setback in the R1-a zone, subject to the requirements Administration of Section 19.28.100. D.Two-Story Permit, pursuant to Two-story addition or new two-story home in all districts Chapter 19.12,Administration that do not require Residential Design Review per Section 19.28.040 (E) except in an R1-a zone. - 11 - Planning permit required prior to Approval Type of Project building permit application authority E. Residential Design Review, Two-story addition or new two-story home in all districts pursuant to Chapter 19.12, except R1-a where: Administration 1. Second floor to first floor area ratio is greater than Admin. with 66%, except any second to first floor ratio for design review development on building pads/graded areas with actual slopes equal to or greater than 20%; and/or 2. Where second story side yard setback(s) are less than 15 feet to an interior side ro ert line DRC with Two-story addition,new two-story home, and/or second desi n review stor deck in the R1-a zone F. Exception, pursuant to Chapter One or two-story project requesting an exception from 19.12, Administration&Section DRC Sections 19.28.070 [Development Regulations (Building)], 19.28.130, Exceptions 19.28.080 [Eichler R1-e Building Design Requirements], and/or 19.28.110 [Landsca e Re uirements]. G.Hillside Exception, pursuant to Development (area greater than 500 square feet) on slopes Cha ter 19.12, Administration reater than 30% H.Architectural and Site Approval, One or two-story addition or new home on a sloped pursuant to Chapters 19.12, single-family residential lot with development on Administration pC building pads/graded areas with actual slopes equal to or greater than 20% and where the cut plus fill of the site exceeds 2,500 cubic ards L Minor Conditional Use Permit, Two-story addition or new two-story home in an R1 pursuant to Chapters 19.12, zoning district with an"i' suffix W Administration U O J. Single-Story Overlay District Establishment or removal of a Single-Story Overlay � Application,pursuant to CC District in a Single Family Residential District (addition Q Chapter 19.12,Administration or removal of the "i' suffix in an R1 zoning district) O � O � A. Table 19.28.050 (A) below sets forth the zonin districts established. �' Zonin Desi ation Zonin Definition R1-X Single Family Residential District-Minimum lot area corresponds to the number (X), multi lied b 1,000 s uare feet R1-Xi Residential Single-Family Single-Story Overlay District to limit homes to one Story (not to exceed 18 feet high)- [minimum lot area corresponds to the number (X), multiplied by 1,000 square feet preceding the'i symbol]. May be combined with all R1 zoning designations. R1-6e Single Family Residential Eichler District(6,000 minimum lot area) R1-a Single Family Residential District with Semi-Rural Characteristics (10,000 s uare foot minimum lot area) - 12- B. Establishment or Removal of an existing Single-Story Overlay District(R1-Xi): In addition to the application requirements identified in Chapter 19.12.080, the applicant shall submit the following: 1. Map delineating proposed boundaries for the Single-Story Overlay District, or removal � thereof, corresponding to natural or man-made features (including, but not limited to, U streets, waterways, zoning boundaries and similar features,) which would result in the � establishment of an identifiable neighborhood; �' Q 2. Evidence, to the satisfaction of the City, for an establishment of a Single-Story Overlay, � that a minimum of seventy-five (75) percent of the homes within the proposed Single- � Story Overlay District are single-story; � 3. A written statement setting forth the reasons for the application and all facts relied upon � by the applicant in support thereof; 4. Original application petition signed, at a minimum, by sixty-six and two-thirds (66-2/3) percent of the property owners of record within the proposed or existing Single-Story District. The petition shall contain information about the proposal including, but not be limited to,the following: a. Map pursuant to Section 19.28.050(B)(1) b. Property Addresses c Property Owner Name(s) and Original Signature(s) d. Applicant Contact Information [Section 19.28.060 - 19.28.140 - No Change] - 13- IComparison of Neighboring City's Single-Story Overlay District,City of Cupertino Permit Parking and Semi-Rural Designation Petition processes Mail In Ballot Existing Single-Story Timeline for Establish Clear Initial Property Mail in Support in Favor Homes in Proposed Considering Removal Process Boundary? Owner Support Vote? before Sceduling District Removal Public Hearin s Neighboring Cities Overlay Process Los Altos Yes 75% 50% 66-2/3%of ballots After seven years Yes Same as establishment. received by City of establishment. Mountain View Yes 51% 50% 67%of ballots Yes At any time. Same as establishment. received b Ci Palo Alto Yes 80% 70% No No At an time. Same as establishment. Sunn ale Yes 75% 55% No No At an time. Same as establishment. Cupertino Petition Processes Permit Parkin Yes N/A 66-2/3% No N/A At an time. Same as establishment. Semi-Rural Yes N/A 66-2/3% No N/A At any time. Same as establishment. Desi nation Proposed Overlay 66-2/3%of ballots Yes 75% 66-2/3% Yes At any time. Same as establishment. Process mailed b Ci SINGLE-STORY OVERLAY(R1-Xi) DISTRICT PROCESS AND GUIDLEINES A Single-Story Overlay District (R1-Xi) is a zoning designation that can be adopted to preserve and maintain single-family neighborhoods in R1 zones that are predominantly, or exclusively, single-story. If you are interested in pursuing a Single-Story Overlay District for your neighborhood, the following steps outline the process: STEP 1: Applicant(s) define the proposed neighborhood boundaries of the Single-Story Overlay District. The proposed boundaries of the District are to correspond to natural or man-made features (including, but not limited to, streets, waterways, zoning boundaries and similar features,) which would result in the establishment of an identifiable neighborhood. Planning staff is available to help advise you on how to best comply with the criteria for establishing the boundaries. In addition, the proposed district boundary must have at least 75% of homes as single-story. STEP 2: The Applicant(s) must circulate the petition provided by the City to the properties within the proposed Single-Story Overlay District. At least 66-2/3% of the properties within the proposed Single-Story Overlay District must sign the petition in favor of the proposed Overlay District in order for the City to accept an application. STEP 3: Applicant(s) must submit the required application materials to the Planning Division for processing. The materials required for submittal include the following: 1. A completed Application Form; 2. Application fee(s) and deposit(s) for mailings, etc. (to be determined by the City Council); 3. Petition circulated, with original signatures by a minimum of sixty-six and two- thirds (66-2/3) percent of property owners within the proposed Single-Story Overlay District in favor of the proposed district; 4. A written statement setting forth the reasons for the application and all facts relied upon by the Applicant(s) in support thereof; 5. Map of the proposed Single-Story Overlay District; 6. Evidence that a minimum of 75% of homes within the proposed District are single- story. STEP 4: Upon application, the materials provided will be reviewed to ensure that the application conforms to the requirements. STEP 5: Upon verification of the qualification of the proposed district, the City will then initiate a mail-in voting process for only those properties within the proposed Single- Story Overlay District. Property owners will have forty-five (45) calendar days to return the ballot. If at least sixty-six and two-thirds (66-2/3) percent of property owners within the proposed Overlay District support the proposal, then the application will be scheduled for public hearings before the Planning Commission and City Council. STEP 6: City staff will forward the application and proposed boundaries along with the mail-in ballot results to the Planning Commission at a scheduled public hearing. Property owners within the proposed Single-Story Overlay District and those within 300 feet will be mailed a notice of the meeting. The Planning Commission will make a recommendation for the proposed overlay district and a public hearing will be scheduled at which the City Council will make the final decision. If the proposed Overlay fails to achieve the sixty-six and two-thirds (66-2/3) percent affirmative vote of the official mail-in ballots, then the application does not qualify for public hearings, and the application will be closed. Removal of a Single-Story Overlay District �''" Removal of a Single-Story Overlay District will be required to follow the same process noted above. The only requirement that is not applicable is that 75% of the homes in the proposed district be single-story. Two-Story Homes Applications for a new two-story or an addition to a pre-existing second-story in an R1- Xi zone (with a Single-Story Overlay) will be required to apply for a Conditional Use Permit (CUP) in addition to all other permits typically required in regular R1 (Single- Family Residential) zones. The requirements for a CUP are listed in Chapter 19.156 of the Cupertino Municipal Code. Structural improvement to an existing second-story may be approved without Planning permits, if in compliance with Chapter 19.140. R1 (Single Family) SINGLE STORY OVERLAY FREQUENTLY ASKED QUESTIONS 1. What is a Single-Story Overlay? A Single-Story Overlay is a zoning change to an R1 (Single Family) neighborhood which restricts all new or redeveloped structures in the affected neighborhood to one-story (not to exceed 18 feet in height). 2. Does this limit the size of my home? While a Single-Story Overlay would limit homes to a single-story, all other applicable development regulations, such as, lot coverage, floor area ratio, and setbacks would remain the same. 3. Why is the City doing this? The City received requests from residents to allow them to initiate a process of establishing Single- Story Overlay Districts. The draft ordinance includes a process with clear application requirements and minimum thresholds for considering any new Single-Story Overlay Districts. Under the proposed ordinance, property owners would be required to initiate the process for a specific neighborhood. In addition, as noted in Section 5, at least 66-2/3 percent of property owners in the proposed district would have to sign a petition before an application could be initiated. 4. Where can a Single-Story Overlay District be proposed? The draft regulations propose that a Single-Story Overlay District may be established in any portion of a Single-Family Residential (R-1) Zone where at least 75% of the existing homes are single-story. In addition, the draft regulations propose that the boundaries of the Single-Story Overlay District must be well-defined as an identifiable neighborhood; i.e. correspond with natural or man-made features (including,but not limited to, streets, waterways, tract boundaries and similar features). 5. What is the proposed process for an application for establishment of a Single-Story Overlay? Step 1:Applicant(s)meet with the City to discuss and define the proposed neighborhood boundaries. Step 2:The Applicant(s) circulate a petition to all property owners within the proposed Single-Story Overlay District. The petition must include the proposed District map for the single-story overlay and must be signed by a minimum of sixty-six and two-thirds (66-2/3) percent of the property owners. Step 3:Applicant(s) submit the following to the City for processing: i. Application form ii. Application fee(s) and Deposit(s) iii. Petition circulated,with original signatures by a minimum of sixty-six and two-thirds(66- 2/3) percent of property owners within the proposed District iv. A written statement setting for the reasons for the application and all facts relied upon by the Applicant(s) in support thereof v. Proposed District Map for the single story overlay vi. Evidence that a minimum of 75% of homes within the proposed District are single-story 6. What would happen after the application for establishment of a Single-Story Overlay is submitted? Step 1:Verification of the names of the property owners signing the circulated petition. Step 2: Initiate a confidential mail in ballot for property owners within proposed District. Step 3:If at least sixty-six and two-thirds(66-2/3)percent of property owners in the proposed district vote in favor of the Single-Story Overlay District, public hearings as noted below will be scheduled. If a minimum of sixty-six and two-thirds (66-2/3) of property owners in the proposed district do not vote in favor, the application would be terminated. Step 4: Planning Commission public hearing to make a recommendation for the proposed overlay. Step 5: City Council public hearing to make the final decision. 7. How many votes does each person or lotget? Each lot gets one vote(by the property owner) regardless of the number of people living in the home or whether there is an accessory dwelling unit on the lot. 8. What happens if I already have an existing two-story home in a Single-Story Overlay District? Existing legally constructed two-story homes within the Single-Story Overlay would be considered legal and non-conforming. Simple structural repairs that do not result in a physical change to the exterior of the second story, and in compliance with Section 19.140.070, would be allowed without any Planning permits. However, for properties within a Single-Story Overlay District, new two-story homes and second- story additions to existing homes would require an application for a Conditional Use Permit, in addition to a Two Story Permit(a permit required for new two story homes or second story additions in R1 zoning districts without a Single-Story Overlay.) In addition, maintenance or repair, of an existing second story,that is not in compliance with Section 19.140.070 of the Municipal Code would require a Conditional Use Permit. 9. Can I build a two-story home in an established Single-Story Overlay District? Currently,in any R1 zoning district without a Single-Story Overlay,two story homes or second story additions require an application for a Two Story permit to be approved before applying for necessary building permits. Per existing regulations in Municipal Code Section 19.24.020(5) and 19.28.040(I), a two-story home may be proposed in a Single-Story Overlay District with an application for a Conditional Use Permit and a Two Story Permit. In addition to development regulations, such applications will be subject to additional findings for a Conditional Use Permit per Section 19.156.040 of the Municipal Code. Should the application be found to meet the development regulations and necessary findings,the Conditional Use Permit may be approved. This process is not proposed to be changed in the new ordinance. 10. Once established,is it possible to remove a single-story overlay if neighborhood sentiments change? Yes. The neighborhood can petition the City to remove the overlay. The process to remove it will be the same as the process to place the overlay;however, the requirement for a minimum of 75% of the existing homes to be single-story at time of application would not apply. OFFICE OF COMMUNITY DEVELOPMENT CITY HALL 10300 TORRE AVENUE • CUPERTINO,CA 95014-3255 (408)777-3308 • FAX(408)777-3333 • plannin cupertino.or$ CUPERTINO PLANNING COMMISSION STAFF REPORT Agenda Date: March 14, 2017 APPLICATION Planning Commission work program for Fiscal Year 2017-2018. RECOMMENDATION Review and recommend that the City Council adopt the FY2017-2018 work program. BACKGROUND The Planning Commission reviews a draft work program each year, which is forwarded to the City Council for consideration. The proposed work program is primarily based on the City Council's adopted goals for FY2017-2018 (Attachment 1). Other projects may consist of development applications that would undergo the development review process. DISCUSSION On March 7, 2017, the Council had a study session on the FY2017-2018 work program and authorized projects for the City. Major projects that are anticipated for the Planning Department in FY2017-2018 are listed below. A number of these items will be reviewed by the Planning Commission while others will be reviewed by other bodies such as the Economic Development Committee and the Fine Arts Commissions prior to Council review. 1. Single-Story Overlay. Develop regulations to allow the establishment of single story overlay zones in R1 zoning districts. Council directed staff to initiate the project in June 2016. Outreach meeting conducted. Draft regulations currently in development. 2. Amendment of Heart of the City Specific Plan. a. Review the street tree list to allow alternative trees of a larger canopy and defer the tree type to the city arborist. b. Clarification of the minimum street side setback requirement. FY 2017-18 Planning Commission Work Program March 14,2017 Page 2 3. Parking Incentive. Explore parking incentives for projects providing more than the required electric vehicle parking, charging stations and alternative transportation methods. 4. Restaurant Outdoor Seating. Update the General Commercial (CG) Ordinance to remove restriction and/or streamline process for allowing outdoor seating that exceeds 20% of indoor seating. 5. Non-Medical Marijuana. Establish regulations regarding non-medical marijuana use, distribution, delivery, cultivation and commercial activities. An Urgency Ordinance was adopted in November 2016 to maintain local control of non-medical marijuana regulation to the extent possible. The project is pending preparation of a regional model ordinance and State licensing processes. The City has until Fall 2017 to either adopt a new ordinance or renew the Urgency ordinance for another 10 months. 6. Conceptual Plans. Convert Conceptual Plans to digital format (North De Anza and South De Anza). Estimated initiation in FY 2017-2018. 7. Vallco. Vallco Development Project and Vallco Shopping District Specific Plan (Housing Element site). Since this is a Housing Element site, a Specific Plan is required to be approved by May 2018 (three years after the adoption of the Housing Element) per state law. City Council authorized work on a community-centered process on a plan for Vallco. 8. Implementation of the Economic Development Strategic Plan (EDSP). The EDSP was adopted by City Council in late 2016 (see Attachment 2 for a link to the plan). It identified several policies for forward-looking economic development inclu ding: a. Consider allowing incubator/co-working uses to replace retail on sites that have underperforming retail and meet specific criteria. b. Consider creating office allocation in the General Plan specifically for mid-to- small size companies. c. Identify and develop regulations for an Innovation/Arts district in the City (Subb Road area). d. Create a policy to allow mobile uses (including food trucks) in the City. This could include identifying areas where such uses could be allowed. FY 2017-18 Planning Commission Work Program March 14,2017 Page 3 Some of these items will involve revisions to zoning and conceptual or specific plans and will be reviewed by the Planning Commission. Other Pro�ects Any additional comments or projects suggested by the Planning Commission will be reported to the City Council for consideration based on Council priority and the availability of staff time. While not all projects in the Work Program may be commenced in FY2017-2018, projects may be rolled over to the Work Program for FY2018-2019 based on availability of staff time and resources. Prepared by: Senjamin Fu, Assistant Director of Community Development Approved by: Aarti Shrivastava, Assistant City Manager/Director of Community Development Attachments: Attachment 1 — City Council Work Program FY 2017-18 Attachment 2— Economic Development Strategic Plan (htt�:Ucu�ertino.legistar.com/g atewa�.as�x?M=F&ID=245b6752-3 ac0-4878-b202-7c117dSebfdb.�df) 2017-2018 City Work Program � � . • . - • . - .� - • .� - . .. - -� . � - . .. - .� Minimum Wage Collaborate with neighboring cities to Ordinance was adopted by Council on In September,staff will make a Completed January 2017 Jaqui Guzman implement a local minimum wage of$15 October 4th.Staff sent out letters and determination and certify to the City by 2019 postcards to all business license holders Council that employment and sales tax to notify them of the new requirement.A revenues are healthy enought to proceed contract was negotiated with San Jose's with the scheduled increases. Office of Equality Assurance for enforcement services. Staff also worked with Economic development to notify residents of potential price increases due to the new requirement and encourage them to support local businesses. Payday Lending Prevent the proliferation of predatory Ordinance adopted by Council December Completed December 2016 Jaqui Guzman lending businesses in Cupertino 6,2016 Revamp Modernize the Cupertino Scene to The February Cupertino Scene has a Completed February 2017 Brian Babcock Cupertino increase readership and community completely new look with a larger page Scene engagement size, brighter colors, more graphics,and thoughtful articles. Teen Incubator Explore a partnership with FUSD to New Project Design program in partnership with FUSD Proposed December 2017 David Brandt& Project establish a teen tech incubator program and community/industry volunteers Jeff Milkes Alternative Fuel Develop a citywide alternative fuel The City's Sustainability Division This fully-funded project will result in the In Progress June 2018 Misty Mersich Siting Plan (including charging stations)siting plan. partnered with Santa Clara County to development of an alternative fuel siting Siting plans will identify appropriate apply for a Strategic Growth Council, plan for the City(electric vehicle charging locations for Level 1 (slow charge), Level Sustainable Communities Planning Grant stations and hydrogen fueling stations to 2(fast charge)and Level 3 and DC(rapid to complete this work at no cost to the be considered),along with fleet and charge)stations in the community(CAP City.The County was awarded the personal vehicle policy and incentive Measure C-T-7 and M-F-1). contract to move forward and a work plan proposals to be advanced at the regional is being developed to advance this effort scale. in all partnerjurisdictions. Anti-Hate To make a statement that Cupertino is an Researched the different approaches Work with Cities Association on a regional In Progress May 2017 Katy Nomura& Resolution inclusive city that celebrates diversity, cities are taking to approach Jaqui Guzman respects human rights,and rejects all forms of hate and discrimination against protected groups Biennial To gather data from residents regarding Contracted with Godbe research,worked We are finalizing the questionnaire in In Progress May 2017 Jaqui Guzman Community City services with departments to develop February.The survey is scheduled for & Katy Nomura Survey questionnaire,and gathered resident mid-March with results expected in April. contact information CCE Launch and participate in a regional Staff was instrumental in launching Silicon Staff will continue to outreach to the In Progress October 2017 Misty Mersich Community Choice Energy Program(CAP Valley Clean Energy Authority JPA in Cupertino community,to make sure they Measure C-E-7). March 2016.Cupertino was the first City are aware of SVCE starting service in to join the JPA.To date, 10 cities and the April 2017,and will continue outreach County have joined.SVCE has hired a through the launch period which ends CEO and 5 staff,and will launch electricity October 2017. service for customers starting in April 2017. 1 2017-2018 City Work Program � � . • . - • . - .� - • .� - . .. - -� . � - . .. - .� Climate Action Implement the City's Climate Action Plan Staff has developed annual metrics for the Complete GHG Inventory Update. CAP In Progress 2020 Misty Mersich& Plan (CAP). Sustainability Commission and City Implementation will follow the timeline and Gilee Corral Council. Public and private projects have framework provided in Appendix C of the a CAP component. document. Communication Implement recommendations of the Priorities have been identified and initial Staff will be developing City branding In Progress December 2017 Brian Babcock Assessment Communications Assessment. recommendations have been standards,including a style guide for implemented,including creation of a internal and external communications. citywide Communication Working Group. Created a central inventory of all communications platforms and channels and trained key staff. Cupertino Reinvigorate staff on workplace Increase information on sustainability Revisit green team initiative and additional In Progress Ongoing Misty Mersich Green Team environmental actions and related CAP activities and utilize internal online forums/tools to rally staff support and measures through employee centered intranet to disseminate information to staff engagement to elevate behavior change sustainability campaigns related to zero on commuter benefits,bike fleet,electric focused action across the agency. waste events,reducing energy use, pool vehicles,environmental purchasing greening transportation and employee policy, bike lockers,and other commute. sustainability related programs for city staff.(CAP Measure M-VF-1 &3) Energy&Water Redesign GreenBiz and residential The City is working to evaluate its current Work to identify behavior change In Progress January 2018 Misty Mersich Efficiency energy efficiency and water conservation residential energy efficiency and water motivations for Cupertino residents to programs to reflect current industry best conservation programs and will develop a encourage home energy and water practices(i.e.behavior change, proposal that will remodel these services retrofits using Community Based Social sustainability and resilience activities)and to take advantage of current rebates and Marketing techniques.Once possible achieve CAP objectives(CAP Measure C- financing options,regional partnerships, behaviors are identified,staff will work to E-1,2,3). and new hardware and software re-define current programs. Continue to applications. GreenBiz is also undergoing expand the number of businesses redesign through in-house staff to make certified in the GreenBiz program, sure the program continues to serve the targeting new business tenants,and local community and help reduce energy and community daycares and pre-schools. water usage. Lawrence-Mitty Acquire a parcel at Lawrence Expwy and Staff has reached a tentative agreement Staff is negotiating with the County on In Progress TBD Jaqui Guzman Mitty Ave to allow for the expansion of the with SJWC to purchase the Lawrence- environmental mitigations needed to City's trail network and development of a Doyle property. make the Lawrence-Mitty property new park and trail expansion suitable for recreational public use. Social Media Enhance Community Engagement Through the use of differing social In order to further our success we are In Progress Ongoing Colleen Letire Presence through social media tools. platforms,the City is not only able to continuing to enhance interdepartmental disseminate information more effectively, coordination and participation. We will but also respond to customer inquiries at also increase the use of social analytics to a more rapid pace. This space is improve communications practices. continuing to expand through the use of paid advertising to broaden our reach to not only members within the community, but outside as well. 2 2017-2018 City Work Program � � . • . - • . - .� - • .� - . .. - -� . � - . .. - .� Utility Grow CAP-related data gathering and Staff benchmarked energy across Working with Lucid to implement the In Progress December 2017 Katy Nomura Management analysis by fully developing the municipal facilities and parks using EPA's software,fully equipped with all available Software utility consumption and cost accounting Energy Star Portfolio Manager(as historical data(up to 10 years in some program(CAP Measure M-F-3). required by AB1103)and separately cases).The software should eliminate the constructing an Access Database of all hand entry of bills by Accounts Payable energy and water utility accounts. as well as by Sustainability Division staff, allow easy access to data,and provide In June 2016,the City contracted with informative dashboards.This will allow the Lucid Design Group to provide their utility City to improve tracking of municipal management software called Building, energy and water data by developing an a SaaS platform that automates utility system to track consumption data by site data entry,offers analysis tools,and (CAP Measure M-F-3). produces dashboards. Legislative Develop a Legislative Agenda with the Staff has gathered examples of legislative Draft a proposed legislative agenda for Scheduled April 2017 Jaqui Guzman Agenda Legislative Action Committee for the agenda's from other cities and is tracking review by Legislative Action Committee upcoming CA legislative session to allow current bills that Council has taken a for nimble response to advocacy requests position on Gun Safety Implement a gun safety ordinance in Staff presented a proposed Gun Safety Staff can revise the ordinance based on On Hold Jaqui Guzman Cupertino to reduce gun-related injuries Ordinance to the Public Safety feedback received by the Commission and crimes. Commission in January and February. and residents if Council desires to move The Public Safety Commission took no forward with a Gun Safety Ordinance. action on the proposed ordinance. 3 2017-2018 City Work Program GIS Strategic Develop 5 year GIS strategic Plan Complete Completed 2016 Teri Gerhardt Plan VDI Implement Virtual Desktop or Virtual Project rescoped to provide Completed October 2016 Mariyah Implementation Private Network software. (VDI) telecommuting and remote access to Serratos City's network. 3D Modeling Improve City Planning,architecture,and Aerial mapping and LiDAR data acquired. Implement solution for Planning Division- In Progress March 2017 Teri Gerhardt design by virtual 3D visualization Currently working with ESRI on 3D March 2017 visualization City Channel Technology refresh for City Channel Installation phase complete-currently Final pre-rollout stage In Progress March 2017 Peter Upgrade Control Room documenting,programming,and fine Coglianese tuning system CityWorks Expanding Cupertino's GIS-centric asset We have completed the asset inventories Currently configuring Cityworks for In Progress April 2017 Teri Gerhardt Expansion management system to include the Parks for Grounds,including all park and Grounds Division workflows.When that is Grounds Division and Traffic Signals irrigation features.We have completed completed we will train the staff on how to group. the asset inventories for Traffic Signals, use the software to manage their assets Configured Cityworks for Traffic Signal in the field and in the office. Workflows,and trained the users in the field. Community Hall Technology refresh for Community Hall Most equipment procured,dais complete Working on audiovisual equipment, In Progress July 2017 Peter AV Upgrade control room, Council dias and podium podium,and control system installation. Coglianese Data Enhance Data Transparency to staff and Procured Building Eye application that Implement Building Eye by June 2017 In Progress June 2017 Teri Gerhardt Transparency public allows City Permit data to be visualized by a simple interactive map. Enhance Strengthen security for the City's 1)Replaced email security product 2) 1)Implement endpoint security product In Progress April 2017 Mariyah Cybersecurity computer data, networks,and compute procured endpoint security product 3) April 2017 2) Implement SIEM April 2017 Serratos devices Negotiating with vendor on remote security incident event management (SIEM)capabilities. Enhanced Cell Develop a strategy for improving cell 1)Verizon Tower has been installed- 1)Power applied to Verizon Tower 2) In Progress July 2017 Bill Mitchell Coverage phone coverage(with PV�. power still outstanding. 2)TIC Discussion with ATT on colocating on Commission reviewed RootMetric's Verizon tower 3)TIC Commission review solution for a Cell Coverage/Capacity at least one more solution for cell Study. coverage/capacity study Fiber Network Extend fiber to the Service Center. The Service Center is one of the last IS is working with PW staff on In Progress June 2018 John Expansion remaining city facilities not interconnected design/implementation Raaymakers by fiber optics. Fuel Fuel Management System(FMS) System procured, implemented and data Final pre-rollout stage In Progress March 2017 Nidhi Mathur Management procurement, implementation and data migrated. Currently fixing minor issues System migration GIS Enhance GIS data resources and Replaced MapGuide(internal City-wide Splitting the new Property Information In Progress April 2017 Teri Gerhardt Enhancement information access for employees and mapping application)and public Property application to offer more to internal users community. Information application with an updated over what is currently available to both the Property Information App and Magnet. public and staff.We will be including Public Works projects and Planning projects as well as some additional property info fields. 4 2017-2018 City Work Program Land Implement"paperless"permit application Paperless permit process for land Implementation of updated LMS system In Progress June 2018 Bill Mitchell Management land management system(LMS). management implemented in January expected to be completed in FY2017-18 System 2016. Current LMS(Magnet)determined not be be best fit to fill existing and future needs for system updates.Currently reviewing two other LMS solutions. Laserfiche Rio Provide trusted document repository with 1) IS partnered with City Clerk to develop Continue work with City Clerk to In Progress July 2017 Nidhi Mathur workflow and forms capability requirements, review options and procure implement Rio product by July 2017 solution Local Area Upgrade existing network architecture Performed network discovery and Procure in FY2016-17-Complete In Progress 2018 Mariyah Network with advanced solution. currently reviewing vendor solutions implementation in FY2017-18 Serratos Upgrade Network Technology refresh for network server Procured Simplivity hyper converged Installation by May 2017 In Progress May 2017 Mariyah Upgrade and storage area network solution. Serratos PerfectMind Replace disparate recreation applications 1) Contract signed 2)product being Continue working with Recreation staff on In Progress December 2017 Nidhi Mathur with one solution which provides implemented implementation by December 2017. enhanced functions Radio Cupertino Upgrade the Emergency Alert Radio Installed new hardware and battery Currently working on software In Progress March 2017 Peter Upgrade Station with updated system. configuration. Coglianese hardware/software/backup power Strategic Plan Implement a new Technology Plan. 1)A FY2016-17 tactical work plan has 1)Continue progress on tactical plan 2) In Progress July 2017 Bill Mitchell been developed and being implemented Consultant interview staff, Council and 2)Currently working with consultant on 3 TIC Commission on desired strategic IT year strategic plan initiatives WAN Upgrade Review existing telecom circuits and Defined preferred design and soliciting Implement new design by July 2017 In Progress July 2017 Mariyah modify as necessary bids from vendors to enhance service yet Serratos at a reduced price Website Redesign of www.cupertino.org Brand new external website with the Continue content addition to CMS. In Progress June 2017 Nidhi Mathur Redesign updated backend content management Complete by June 2017 system currently used by 40 active content editors 5 2017-2018 City Work Program "Start a Provide a"How to Start a Business in "How to Start a Business in Cupertino" Continue to update annually Completed 2016 Angela Tsui Business" Cupertino"pamphlet in multiple pamphlet is available on Economic Pamphlet languages. Development website. Updated with information about minimum wage ordinance, new business license rates, recycling and composting info(collaborate with Environmental Services) Beekeeping Update the Municipal Code to allow urban In March 2016 Council directed staff to Completed December 2016 Ellen Yau Code Update beekeeping. review and propose amendments to the existing regulations. First reading on the revised ordinance conducted Nov. 15th and second reading conducted Dec.6th, 2016. BMR Housing Update BMR Housing Administrative Housing Commission updated BMR Completed September 2016 Kerri Heusler Admin Manual Manual. Housing Administrative Manual in September 2016. Economic Worked with consultants to finalize and The EDSP was completed and adopted Completed October 2016 Angela Tsui Development present to City Council an Economic by Council in October 2016. Plan Development Strategic Plan(EDSP)for Cupertino. Shop Local Launch a"Shop Local"campaign. Promoted local businesses through"Eats Continue annually Completed 2015 Angela Tsui Campaign 95014"dining guide app and"Cupertino- At-A-Glance"website."Shop Cupertino" message is printed on City's reusable bags and ordinance signage. Drafted a comprehensive campaign as part of the Economic Development Strategic Plan. EDSP Consider policies and related Code and EDSP adopted by City Council in late Develop work program and budget Proposed 2018 Angela Tsui Implementation Specific Plan amendments to implement 2016. Identified several policies for policies in the Economic Development forward-looking economic development Strategic Plan. including:1. Consider allowing incubator/co-working uses to replace retail on sites that have underperforming retail and meet specific criteria.2.Consider creating office allocation in the General Plan specifically for mid-to-small size companies.3. Identify and develop regulations for an Innovation/Arts district in the City.4.Create a policy to allow mobile uses(including food trucks)in the City.This could include identifying areas where such uses could be allowed. Heart of the City Amend the Heart of the City Specific Plan Recommended by Planning Commission Awaiting Council direction Proposed TBD TBD Plan to amend the street tree list to allow in March 2016. alternative trees of a larger canopy and defer the tree type to the city arborist (Public Works) 6 2017-2018 City Work Program Parking Explore parking incentives for projects Recommended by Planning Commission Awaiting Council direction Proposed TBD TBD Incentive providing more than the required electric in March 2016. vehicle parking,charging stations and alternative transportation methods. Penalties for Consider increasing maximum penalty of Requested by Councilmember. Awaiting Council direction Proposed TBD TBD violation of $100K for violations of conditions of Conditions of approval. Approval Public Art in Review and consider amending the In 2016 the FAC requested that this Awaiting Council direction Proposed TBD Catarina Kidd Developments $100,000 maximum for Public Art in project be added to the upcoming work Developments. program. Restaurant Update the General Commercial(CG) Recommended by Planning Commission Awaiting Council direction Proposed TBD TBD outdoor seating Ordinance to remove restriction and/or in March 2016. streamline process for allowing outdoor seating that exceeds 20°k of indoor seating. Teacher Evaluate a"Teacher Housing"project in In March 2016,the Planning Commission Awaiting Council direction Proposed TBD Kerri Heusler Housing partnership with a non-profit developer try recommended adding a goal of providing to identify and develop surplus school 100 senior or"teacher"housing units per property as a teacher housing project. year for the next five years and/or provide incentive and priority for Cupertino residents.The priority system was implemented as part of the BMR Administrative Manual update in September 2016. Apple Campus Apple Campus 2 Development Project. The Main building,parking structure, Occupancy for main building will begin in In Progress 2018 Albert 2 Theater and Fitness Center under April and phased to end of 2017. Phase 2 Salvador/Piu construction.Architectural and Site and ancillary buidling expected to be Ghosh Approval for remaining buildings in Phase completed by 2018. 1 - outdoor dining stations,reception buildings, maintenance buildings etc. approved spring/summer 2016. Phase 2 construction underway for one office building,two R&D buildings and a secondary parking structure.Street Improvements at ramps at Wolfe and I- 280 and Lawrence and I-280 are due to be completed by spring 2017. Economic Streamline city web content for new Valuable content and links on existing Will continue to assess the needs of In Progress 2018 Angela Tsui Development businesses. Develop an integrated site. businesses and add helpful resources. Website approach for outreach and marketing to Work with the City's Public brokers, business owners,and others as Affairs/Communications team to redesign a center for innovation and the heart of the Economic Development webpages Silicon Valley. within the Citywide website enhancement. General Plan Implement General Plan Authorization One GPA Authorization request Process General Plan Authorization In Progress Ongoing Piu Ghosh Authorization Process (Scandinavian Design)received in the applications as received. second cycle of FY2016-17 is being heard by the Council on March 7,2017. 7 2017-2018 City Work Program Hamptons Hamptons Apartments Development Approved in June 2016 with a Applicant has delayed project by 18 In Progress TBD Catarina Kidd Project.942 units. (Housing Element site) Development Agreement(15 year term). months. Main Street Main Street Development Project(130Ksf Hotel, Park and Loft apartments under Hotel and apartment project are expected In Progress December 2017 Gian Martire retail,260Ksf office, 180 room hotel, 120 construction.All other components to be completed by end of 2017. apartments+public park) complete. Marina Plaza Marina Plaza Mixed Use Development Project approved in September 2016 with Applicant is delaying project to 2nd In Progress 2020 Erick Serrano Project(188 units,23Ksf retail, 122 room a Development Agreement(5 years). quarter of 2018. hotel).(Housing Element site) Non-Medical Establish regulations regarding non- Urgency Ordinance adopted November On hold pending preparation of a regional In Progress March 2018 Piu Ghosh Marijuana medical marijuana use,distribution, 2016 to maintain local control of non- model ordinance and State licensing delivery,cultivation and commercial medical marijuana regulation to the extent processes.The City has until Fall 2017 to activities. possible. either adopt a new ordinance or renew the Urgency ordinance for another 10 months. Public Create a digital on-line library of current Document digitization ongoing.39°k Continue process until all documents are In Progress 2019 Ari Lattanzi Document E- and historical Planning, Building and increase in online documents YTD over digitized Library Public Works documents. FY2016-17. Public Works has a 41°k increase in online documents YTD over FY2016-17. Single Story Develop regulations to allow the Council directed staff to initiate the project Review with Planning Commission In Progress May 2016 Erick Serrano Overlay establishment of single story overlay in June 2016.Outreach meeting anticipated in March 2017. Review and zones in R1 zoning districts. conducted. Draft regulations currently in adoption by City Council anticipated in development. April 2017. Small Business Explore the viability of establishing a small This is an action item in the EDSP as a Continue to explore opportunities. In Progress TBD Angela Tsui Dev. Center business development center within the resource to retain and grow small and City of Cupertino. midsize businesses. Conceptual Convert Conceptual Plans to digital format Project delayed due to staffing need. Project will be initiated in FY2017-18. On Hold Piu Ghosh Plans (North De Anza and South De Anza). Heart of the City Amend the Heart of the City Specific Plan Project on hold. On Hold Erick Serrano Plan for clarifications to the minimum street side setback requirements. Vallco Vallco Development Project and Vallco In December 2014,Council authorized the Organize a community-centered process On Hold Piu Ghosh Shopping District Specific Plan. (Housing preparation of a Specific Plan for the on a plan for Vallco. Element site) Vallco Shopping District.Applicant submitted an application in September 2015.Two initiatives related to the site (Measures C&D)failed in November 2016.Since this is a Housing Element site,a Specific Plan required to be approved by May 2018 per Housing Element law. 8 2017-2018 City Work Program Accreditation of National accreditation by the Commission In process of researching and scheduling Application process is followed by a self Proposed TBD Jeff Milkes the RCS Dept for Accreditation of Park and Recreation staff to begin work evaluation of the department relative to Agencies to assure policy makers, 151 national standards for accreditation. staff, Cupertino community members and task force of front line employees, taxpayers that the parks and recreation supervisors and managers will convene in agency has been independently evaluated the Spring of 2017. against established benchmarks as delivering a high level of quality of service. Event/Festival Improve coordination of events/festivals to Developed and piloting new Special Event Develop and issue Exclusive Use Permits Proposed December 2018 Mariah Dabel Coordination ensure success. application for 2017 events(Jan 2017). for events(Mar-Nov 2017).Calculate Prepared a more comprehensive City event/festival costs and recommend fee events calendar(Feb 2017). waivers for Council consideration with Benchmarked special event fees(Feb annual budget(May 2017). Recommend 2017). special event fees for Council consideration(May 2017). Develop policy and City code revisions for Council consideration(Dec 2017). Lawrence-Mitty Plan and Design Lawrence-Mitty property Pending City acquisition 1. Estabilsih Community design process Proposed TBD Gail Seeds and Park for park use,subject to City acquisition 2. Select design consultant 3. Develop Jeff Milkes plans 4. Proceed with annexation of property into the City Citywide Park Create a 20+year community-driven Contract awarded to MIG Jan.2017, Evaluate existing park and recreation In Progress Mid 2018 Gail Seeds Master Plan vision plan to best meet current and future program schedule being formulated. system,evaluate community input, parks,open space&recreation needs, develop vision&goals,identify through establishing goals&priorities and prioritization criteria.Community input will building upon,enhancing or expanding explore best use of existing and future infrastructure&programs. park spaces to identify needs for different events,activities,cricket pitch,etc. Creek Corridor Develop a master plan for lands along Community Outreach complete.3 Coordinate next steps with progress on In Progress TBD Gail Seeds Master Plan Stevens Creek from Stevens Creek Blvd. concepts were presented to the P&R the Citywide Parks,Open Space& to McClellan Road(includes Stockmeir Commission&City Council.A preferred Recreation Master Plan to allow choices Ranch, BBF Golf Course, BBF Park and concept was presented to P&R for Stevens Creek Corridor to be picnic-swim areas,McClellan Ranch Commission in March 2016&to City coordinated with city wide needs and Preserve,McClellan Ranch West) Council April 2016. goals. Restore Continue to restore the Stocklmeir Ranch Parks and Recreation Commission Agreement has been drafted by In Progress TBD Jeff Milkes Stocklmeir R. reviewed on 2/2/17 to consider CAO. Awaiting Council direction. renovations to the Stocklmeir house by the Rotary Club,with the intent of building utilized for non-profit meeting space. Replace Investigate and replace the recreation The PerfectMind Contract was executed Finalize data entry,configuration(April In Progress November 2017 Mariah Dabel Recreation registration software with a cloud-based on 2/1/16. Efficiency audit and Discovery 2017).Training and user acceptance Software software version to be accessed at any completed 6/2016. Initial system testing(April-Sept 2017). Data migration City facility. configuration and data entry completed in (August-Sept 2017).Go Live(October 10/2016. 2017). 9 2017-2018 City Work Program Community Increase marketing and community Over 6,000 residents use NextDoor and City staff are identifying a method for City In Progress December 2018 Mariah Dabel Outreach outreach using Block Leader Program to Neighborhood Watch Coordinator communication/announcements to and provide"grass roots"notification to provides regular updates via NextDoor among Block Leaders. Staff investigating residents for Recreation and other City and Yahoo eCAP group. Block Leaders permanent social media/marketing programs. Increase use of social media were tapped to provide feedback for the specialist. marketing. Recreation Master Plan as well as the Parklet pilot program.The department hired social media expert in limited-term two-year position. Partnerships Explore potential of partnerships with the Initial outreach meetings started in Staff are meeting regularly with the In Progress Ongoing Christine Hanel Library,YMCA, Rotary and other groups 2/15. Library Staff and City Staff inet Library and YMCA. Staff will coordinate to enhance/expand programs. several times in 2016 to discuss with other entities to expand programs facility usage guidelines for Community and reduce redundancies through Hall as well as program partnership partnerships.Staff will create draft policy opportunities. Recreation&Library are for Parks&Recreation Commission and partnering on bring library programs to City Council provide greater support to Memorial Park in summer 2017 with four nonprofits. children's performers at the Amphitheatre. Blacksmith Prepare for the grand Blacksmith Shop waiting for installation of Follow-up project for a working forge in In Progress December 2017 Tom Walters Shop opening/programming of the Blacksmith a forge. the Blacksmith shop scheduled in 2017. Shop. Disaster Increase participation from other City Determine Disaster Council direction to Once Disaster Council attendance In Progress December 2017 Tom Walters Council departments increase functionality. becomes more robust-new work plan will be created. Disaster ldentify local stakeholders and encourage Have been gathering input/feedback In Progress December 2017 Tom Walters Council them to participate in Disaster Council Office of OES Explore options for enhanced Emergency OES report and workplan created and Determine City's objectives for OES In Progress December 2017 Tom Walters Services in Cupertino delivered to Recreation and Community Services Director BBF Splash Install a splash pad at Blackberry Farm Included in FY2015-16 CIP. On hold pending completion of the On Hold Tom Walters Pad pool area. (see also in Public Works tab) Corridor Master Plan. 10 2017-2018 City Work Program Labor Negotiate long-term contracts that are fair, Negotiated 3 year contract with all None Completed October 2016 Kristina Alfaro Negotiations financially sustainable and competitive in bargaining units with a term of 7/1/16- the local labor market. 6/30/19. Employee Measure employee's engagement level This is a new project that is anticipated to Conduct baseline survey in July/August of Proposed June 2018 for first Kristina Alfaro Engagement and sustain and or increase that level of be rolled out in early FY2017-18 2017 round and Karen engagement Bernard Guerin HR Portal Explore and implement the Leave This is a new project that is anticipated to HR Staff to receive training and set up the Proposed January 2018 Karen Bernard Enhancement Request portion of the City's HR Portal be rolled out in FY2017-18 Leave Request portion of the site Guerin and Thomas Leung Laserfiche As part of a citywide laserfiche This is a new project that is anticipated to Citywide kickoff and development of a Proposed January 2018 Lisa Taitano Integration integrations the Human Resources be rolled out in FY2017-18 laserfiche committee and Maria division will move to electronic employee Jimenez files. The Finance Division will move all financial data documents to laserfiche. NeoGov Simplify and streamline the City's hiring This is a new project that is anticipated to Implementation of new software in Proposed July 2017 Laura process and consolidate job description, be rolled out in FY2017-18 May/June 2017 Miyakawa and salary and benefit information. Thomas Leung OpenGov OpenGov Budget Builder beta program. City used budget builder for the 2016-17 City is scheduled to meet with Opengov In Progress June 2018 Thomas Leung Budget Builder Department directors and staff will submit First Quarter and Mid Year Reports and staff in later March to discuss the software proposals and narratives in OpenGov, will use it for the FY2017-18 Proposed and collaborate on possible improvement manage approvals and comments online, Budget as well. to the software. and create a consolidated view of the budget. OpenGov OpenGov Platform to increase budgetary City signed up for additional offerings Automate the posting of financial data In Progress June 2018 Thomas Leung Transparency transparency and public engagement. including additional reporting capabilities, after monthly closes to have close to real data science,Civic Dashboards and time financial data for continued mapping. In addition,in we are in the transparency and public process of automating the monthly engagement. Add additional graphics and uploads. dashboards. Staff Training Allow for a well trained staff in all areas of Attended New World Systems(NWS)/ Continued staff training and development In Progress Ongoing Kristina Alfaro Administrative Service including but not Tyler Technologies trainings on FM and through webinars and training through and Lisa limited to, Human Resources, Finance, HR modules,attend online trainings.Sent CaIPERS,the Government Finance Taitano ERP and Budget. Administrative Services, Departmental Officers Association(GFOA), NWS/Tyler, and Technical staff to annual Tyler and CalPelra that will increase staff conference. HR Staff attended annual HR knowledge and skills in order to enhance Conference and Finance and other customer service for the community. administrative services has attended other GFOA and CSMFO trainings. 11 2017-2018 City Work Program Audit Solid Conduct audit of solid waste franchise Audit establishing baseline expenses for Completed. Completed September 2016 Roger Lee Waste agreement. 2010 and 2014 has been completed. Agreement Fleet Review Fleet Management policies Public Works, Finance and Sustainability Evaluate City-wide fleet vehicles that may Completed May 2016 Chris Mertens Management staff coordinate all new fleet purchases. be considered for replacement. Policies Update of fleet use and policy development is an ongoing process. Joint Use Negotiate new Joint Use Agreement with Existing agreement sunsets June 2016 Completed June 2016 Roger Lee Agreement with Cupertino Unified School District for CUSD shared sports fields Vehicle Update Managed Vehicle Replacement Two all-electric and six plug-in hybrid Evaluate feasibility to transfer existing Completed July 2016 Chris Mertens Replacement Program. vehicles were added to the fleet in vehicles within the fleet so that purchases, Program FY2015-16.One all electric is utilized as a if needed,are more environmentally City Hall pool vehicle. conscience. Consider complete lifecycle costs. In Spring 2015,the Library and the By Spring 2015,the Service Center will Completed July 2016 Chris Mertens Service Center added two and four have two electric vehicle charging electric vehicle charging stations, stations. respectively. Evaluate vehicle/equipment sharing with The two year equipment sharing Similar opportunities may exist with other Completed July 2016 Chris Mertens other agencies. agreement with the Town of Los Gatos West Valley Cities. and City of Campbell were renewed in FY2015-16. Evaluate alternate fuel vehicle feasibility Staff completed an analysis of alternative This alternative fuel vehicle strategy also Completed July 2016 Chris Mertens for Service Center vehicles(electric, fuel vehicles to inform the FY2013-14 guides the City towards additional fleet hybrid, battery systems to eliminate long Vehicle Replacement Schedule(VRS). best management practices (e.g.fleet term idling)(CAP Measure M-VF-1,2,3). This document contains a tool to enable right-sizing,developing vehicle vocational similar assessments during each FY VRS. specifications)that will be advanced as part of this year's VRS and updated environmentally preferable procurement policy. Evaluate feasibility to transfer existing Was feasible with all six purchases of Ongoing Completed July 2016 Chris Mertens vehicles within the fleet so that purchases, green vehicles in FY2015-16. if needed,are more environmentally conscience. Water System Conduct comprehensive audit of City Current lease agreement expires in 2022. Completed February 2017 Roger Lee Audit owned potable water system. Comprehensive Evaluate the necessary repairs and New Project Awaiting Council direction. Proposed TBD Chad Mosley drainage eval upgrads to remediate drainage issues on on Regnart Regnart Road Lease Agmt.for Negotiate new lease agreement with Current agreement expires December Pending comencement of negotiations in Proposed June 2018 Roger Lee Library Bldg County of Santa Clara for new library 2019 FY2017-18 building Local Transit Address local transit needs for schools New project FY2017-18 Proposing limited term Transit Planner in Proposed TBD Timm Borden and seniors FY2017-18.This position will work VTA and local groups on current needs and issues.This position would also work on solutions for corporate buses. 12 2017-2018 City Work Program Municipal Water Ensure lessee(San Jose Water Co.)is City directed audit of system was Staff is meeting with San Jose Water Co. Proposed Ongoing Roger Lee System maintaining and operating system to completed in December 2016. on a monthly basis to resolve issues and industry standard. to establish/implement an asset management plan.Current lease agreement expires 2022. Public Bldg Determine priority assessment of New project FY2017-18 Solicit qualifications from prospective Proposed TBD Roger Lee Condition buildings for future improvements. consultants to assess the condition of all Assess. public buildings. Storm Water Increase funding of storm water pollution None. Increase requires 2/3 majority Evaluate Godbe survey findings, learn Proposed TBD Roger Lee Funding Ballot prevention to cost recovery. vote. from success of Palo Alto and determine feasibility of proceeding with ballot initiative. Wireless Master Update the City's Wireless Master Plan Request funding for plan for FY2017-18 Begin work in Winter of 2018 Proposed June 2018 Chad Mosley Plan EOC Develop an alternative for an Emergency Identify potential annex to Service Center Staff will present alternative EOC as a In Progress May 2017 Alex Acenas Alternatives Operations Center at a facility other than potential CIP for FY2017-18-see above City Hall in conjunction with Service Center Admin Building Feasibility Study Pavement Implement programs to preserve and Approval of recommended funding over Funding of$5.OM for FY2017-18 will be In Progress Ongoing Roger Lee Management enhance pavement condition throughout the last several fiscal years has increased requested for(1)the 2017 Phase 3 the City. the overall pavement condition index of Asphalt Project to finish Stevens Creek the street network to 78 out of a possible and De Anza Boulevards.and(2)2018 100. Phase 1 Asphalt Project focused on residential streets.Annual funding of approx. Ongoing cost of$4M is anticipated to maintain a pavement condition of 80 PCI. Ped. Develop strategy to advance sidewalk Reimbursement ordinance amended. Completed February 2016 David Stillman Transportation improvements and right of way acquisition Neighborhood meetings expected to Plan ahead of development. occur 2016. Consider Safe Routes to School and other Completed May 2016 David Stillman funding sources. Complete a Safe Routes to Schools map Alta study is underway. Completed May 2016 David Stillman noting sidewalk gaps Update Pedestrian Transportation Plan Hired Toole Design Group to complete Continue to work on plan.Completion In Progress August 2017 David Stillman plan.Work began in February 2017. anticipated in Summer of 2017. Traffic Impact The Mobility Element of the General Plan, Funding approved. Consultant work nearly complete, public Scheduled June 2017 David Stillman Fee Program Policy M-10.1 and M-10.2 directs staff to works shops held,including meetings with develop and implement a citywide Chamber of Commerce Legislative Action transportation improvement plan and to Committee. On hold pending better enact a transportation impact fee for new understanding of Measure B development. Transportation Tax rollout and priorities due to overlap of projects including in currently proposed Traffic Impact Fee. 13 2017-2018 City Work Program CIP Projects Sister City Directional and Mileage Marker Project is complete. Completed September 2016 Alex Acenas at Civic Center Sport Center-East Courts Resurfacing Project is complete. Completed November 2016 Katy Jensen project Foothill/Cupertino Road Storm Drain Negotiations under way. Upon completion of PG&E work, In Progress December 2017 John anticipate construction over summer/fall Raaymakers 2017. Monta Vista area sidewalk improvement Pasadena project is complete. Further discussion with residents and In Progress December 2017 John projects: property owners impacted by McClellan Raaymakers 1-Pasadena Ave. Public Improvements McClellan project is in design phase and project. Development of construction 2-McClellan Rd.Sidewalk communication with impacted residents contract documents for McClellan. Improvement-Ph.2 has begun. 3-Orange& Byrne Sidewalk Improvements Fiber Optic at Service Center: Extend Project is included in FY2016-17 CIP. Initiate design and develop construction In Progress December 2017 John fiber optic communications to the City Consultant selection is underway. contract documents for bidding. Raaymakers Service Center on Mary Ave. Anticipate construction in fall 2017. McClellan Ranch West-Green Parking Install durable pervious surface- Anticipate summer-fall 2017 construction, In Progress December 2017 Alex Acenas meadow-esque,for supplemental parking upon appropriation of additional funds for capacity for staff and park users. Planning construction. and design began in spring 2016. Storm Drain Master Plan Update Survey of existing system and data Anticipate start of master plan calculations In Progress December 2017 Katy Jensen collection is complete. in summer 2017 with goal of completion by end of CY 2017. City Bridge Maintenance Repairs Routine periodic repairs to six Preliminary design and environmental In Progress October 2018 John bridges. Partially grant clearance process. Anticipate Raaymakers funded. Agreement with grantor and construction over spring/summer 2018. selection of consultants is complete. Retaining Wall Repair/Replacements at Background research and Develop construction contract In Progress December 2017 John Cordova& Regnart Rds. design/engineering work is has started. documents. Anticipate construction Raaymakers complete prior to start of 2017 rainy season. Recreation Facilities Monument Signs Replace failing monument signs at 5 Initiate project spring 2017 Scheduled December 2017 Katy Jensen facilities with new signs consistent with approved signage convention. Storm Drain Improvements-Byrne& Scheduled in 5-year CIP Proposed 2018 project Scheduled TBD Katy Jensen Stevens Creek Blvd. Blackberry Farm-Splash Pad Subject to the outcome of the Stevens Subject to the outcome of the Stevens On Hold Creek Corridor Master Plan. Creek Corridor Master Plan. 14 CITY OF CUPERTINO 10300 Torre Avenue Cupertino, California 95014 RESOLUTION N0.16-103 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ADOPTING THE 2016 ECONOMIC DEVELOPMENT STRATEGIC PLAN (EDSP) IN ORDER TO GUIDE THE CITY'S ECONOMIC DEVELOPMENT ACTIVITIES WHEREAS, the City Council of the City of Cupertino authorized staff to develop the 2016 Economic Development Strategic Plan (EDSP) that guides economic activity in the City; and WHEREAS, sales tax revenue in the City has been trending downwards due to: its location in a highly competitive retail market which is a challenge to attracting national and regional retailers to Cupertino due their presence within its trade area,the City's strong economy resulting in small and independent ratailers struggling to find affordable space in the city or competing with the service industry that is more parking intensive, a lack of affordable office spaces for growing, midsize firms in the 20,000 sq. ft. to 100,000 sq. ft. range; and a lack of diversity in revenues for the City's General Fund; and WHEREAS, the City Council is interested in overcoming these issues and allow for continued economic development and improved fiscal health of the City; and WHEREAS, development of the EDSP included community outreach, including, hosting a Community Forum on Local Business in August 2015 to engage community members,residents, business owners,and elected officials in identifying assets,opportunities and potential challenges to economic development in Cupertino and conducting telephone interviews with local business leaders and real estate experts to collect information, solicit feedback and present initial findings; WHEREAS, in-person meetings were facilitated with the City's Economic Development Committee,the Cupertino Chamber of Commerce, and community meeting with the public;and WHEREAS,the findings from these meetings and review of existing regulations of the City were presented to the City Council at a publicly noticed meeting on August 2, 2016; and WHEREAS, the City Council adopted the EDSP at a duly noticed regular meeting. NOW, THEREFORE, BE IT RESOLVED: Section 1. That after careful consideration of the facts, exhibits, staff report, testimony and other evidence submitted in this matter,the City Council does find as follows: 1. The foregoing recitals are true and correct and incorporated into this resolution by this reference. Draft Resolution No.16-103 Economic Development Strategic Plan(EDSP) October 4,2016 2. The EDSP has been prepared to ensure continued economic prosperity and development within the City. 3. Adoption of this resolution is exempt from the California Environmental Quality Act because adoption of the EDSP in not a project, in that adoption of the Plan is an administrative activity that will not result in physical changes in the environments(CEQA Guidelines Section 15378(b)(5)). Section 2. The City Council does hereby adopt the 2016 Economic Development Strategic Plan as shown in "Exhibit A" attached to this resolution. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 4th day of October 2016,by the following vote: Vote Members of the Citv Council AYES: NOES: ABSTAIN: ABSENT: ATTEST: APPROVED: Grace Schmidt Barry Chang,Mayor City Clerk City of Cupertino EXHIBIT A Economic Development Strategic Plan Final Draft September 13, 2016 prepared for. City of Cupertino � U ` � � I � �� -�.! ST RAT EGIC ECON �11�41C5 TABLE OF CONTENTS I. INTRODUCTION .............................................................................................................. 3 II. SUMMARY OF FINDINGS............................................................................................... 4 Opportunities...................................................................................................................................4 Challenges.......................................................................................................................................5 Key Economic Development Issues................................................................................................6 III. STRATEGIES AND ACTION ITEMS............................................................................... 8 Issue A: Connectivity and Place-Making.......................................................................................10 Issue B: Support Growth of Small and Mid-Size Businesses........................................................14 Issue C: Retail Support and Development....................................................................................22 IssueD: Hospitality........................................................................................................................32 IssueE: Marketing.........................................................................................................................33 IV. APPENDIX: MATRIX OF STRATEGIES AND IMPLEMENTATION ACTIONS............ 36 Final Economic Development Strategic Plan � September 13, 2016 2 1. INTRODUCTION The City of Cupertino's Economic Development Strategic Plan (EDSP) is a policy document that will to guide the City's economic development activities over the next three to five years. The EDSP is framed around 11 strategies intended to strengthen existing businesses, foster a healthy economy, and maintain a healthy fiscal position. For each strategy, the EDSP identifies a range of specific action items for the City Council to consider. The strategies and action items are designed to strengthen the city's existing competitive advantages for economic development, and take action to address disadvantages. The EDSP was developed after completing an analysis of demographic, economic, and real estate market trends, and receiving feedback from community members, business leaders and City Council. The community outreach process included the following components: • Community Forum on Local Businesses: In August 2015, the City of Cupertino hosted a Community Forum to engage community members about the Economic Development Strategic Plan. At the Forum, residents, business owners, City staff, and elected officials identified assets, opportunities, and potential challenges related to economic development in Cupertino.' • Interviews and Stakeholder Outreach: Strategic Economics completed telephone interviews with local business leaders and real estate experts to collect information and solicit feedback, and presented initial findings to the Cupertino Chamber of Commerce Legislative Action Committee. • Economic Development Committee: Strategic Economics facilitated in-person meetings with the Cupertino Economic Development Committee,which consists of four City staff inembers,two City Council members and four representatives from the Cupertino Chamber of Commerce, to gather input regarding technical findings and strategies. • City Council Study Session: City staff and Strategic Economics presented the findings and strategies from the Background Report to the Cupertino City Council for feedback. The Background Report, completed in January 2016, provides the findings from the technical economic analysis and community outreach, and identifies the City's competitive advantages, issues, and opportunities for economic development. This EDSP is organized into three sections: Following this Introduction, Section II presents a Summary of Findings from the Background Report, as well as the key economic development issues for the EDSP to address. Section III contains the Strategies and Action Items for implementing the EDSP. ' The input from the Forum is summarized in the Background Report. Final Economic Development Strategic Plan � September 13, 2016 3 11. SUMMARY OF FINDINGS In order to provide a nuanced understanding of the City's economic opportunities and challenges, Strategic Economics analyzed local and regional trends in employment and businesses; Cupertino's fiscal position; the office sector; the retail sector; and the hotel sector. Strategic Economics also collected input from community members and stakeholders, including residents, business owners, City staff, and elected officials. The results of the technical analysis and the input from the community engagement are summarized in the Background Report. This section highlights the major opportunities and challenges related to economic development in Cupertino from the Background Report. OPPORTUNITIES Cupertino's location in the region,high quality of life,highly educated workforce,and existing employment base position the city well to attract and retain businesses. These opportunities are described below. Location at the heart of Silicon Valley. Cupertino is located in western Santa Clara County,bordered by Sunnyvale, Santa Clara, San Jose, and Saratoga. The city's location provides excellent access to Interstate 280,a freeway that is relatively less congested compared to other of the region's freeways such as Highway lOL I-280 connects the city to highly skilled workers throughout the South Bay and to the Sand Hill Road Area, the hub of venture capital activity in the region. Highly educated workforce. Nearly 80 percent of adults aged 25 and above in Cupertino have a college degree, with 40 percent holding advanced degrees. Most residents are also employed in professional occupations.The city's significant employment base attracts a net weekday inflow of 26,700 workers,who tend to be highly educated workers in professional occupations. Excellent quality of life and first-rate school district. Cupertino's public schools have been recognized for their excellent quality both by the State of California and in the national media.The public school system and overall quality of life are very attractive for new households, especially families with children. Thriving technology sector. Cupertino has nine employers with 250 or more workers, of which five are in technology or biotechnology. These include Apple, Seagate, Pegasystems, and Trend Micro. Other firms seek to locate in Cupertino in order to do business with these large employers as a vendor, partner, or consultant, and to take advantage of the city's location in the region. High concentration of small firms and start-ups. Cupertino's strength in technology is not limited to large employers. Approximately 20 percent of the city's small and midsized businesses (defined as those with fewer than 250 employees)are in the technology industry.�Many of the small and midsize professional services firms — such as legal offices and consulting firms — support the technology sector, providing services to Apple and other technology firms. Compared to the South Bay as a whole, the city also has a very high concentration of very small firms (with one to four employees) in the professional and technical services industries. Cupertino is attractive for these small start-ups because of the highly skilled, entrepreneurial workforce that lives in the city and in neighboring communities. � The technology sector includes businesses from several different industries, including professional and technical services,transportation and distribution, and manufacturing. Final Economic Development Strategic Plan � September 13, 2016 4 Strong demographics to support retail investments.High household spending power, excellent freeway accessibility, growing employment, and the significant inflow of daily commuters create significant potential for retail in Cupertino and other West Valley communities. Cupertino has been able to capitalize on this potential by attracting newer retail investments, including 130,000 square feet in the Main Street project, as well as renovations of existing centers like Homestead Square and Cupertino Village. Healthy fiscal position. General fund revenues have grown steadily over the past several years as a result of economic growth and new real estate investments. Revenue sources that are directly tied to economic growth—including sales taxes, property taxes, and transient occupancy (hotel) taxes have grown steadily over the past several years as the economy has recovered and Cupertino has attracted new investment. Major developmentprojects,such as Main Street and Apple Campus 2,have also generated significant one- time revenues from planning, zoning, engineering, permit processing fees, and other sources. Because of its strong fiscal position,the City has been able to maintain service levels at 2.80 to 3.01 full time equivalent (FTE)staff per thousand residents over the past ten years,even as Cupertino's population grew significantly during that time period. CHALLENGES While Cupertino has many economic assets, residents, business owners, City staff, and elected officials have concerns related to Cupertino's ability to recruit and retain an appropriate mix of businesses over time while also maintaining the city's excellent quality of life. These challenges are discussed below. Highly competitive retail market. Cupertino has strong demographics for retail, and offers ample neighborhood shopping centers where residents can shop for groceries and other daily needs. However, since the downsizing of the Vallco shopping mall, residents generally travel to nearby large shopping centers like Westfield Valley Fair, Santana Row, and Stanford Shopping Center for dining and entertainment opportunities and to shop for clothing and other "specialty" goods. The presence of these large centers in close proximity poses a challenge for attracting similar types of national and regional retailers in Cupertino. Challenging environment for independent retailers. Cupertino's strong economy has driven significant demand for retail space,resulting in low vacancies and high rents.As a result, small and independent retail businesses reportedly struggle to find affordable space in the city. There is also a concern that traditional retailers selling goods are being replaced with services (e.g., tutoring centers, day cares) that require more parking than some existing shopping centers can provide and may not generate the same level of sales tax revenues. Lack of affordable office spaces for growing,midsize firms. Compared to the South Bay, Cupertino has fewer businesses and employees in firms employing between 10 and 250 workers, and the number of businesses in this size range is declining,partly due to a lack of office space to accommodate them. Strong demand for office space, combined with competition from corporate users like Apple, results in scarce leasing opportunities in the 20,000 to 100,000 square foot range. Although larger spaces are also in short supply, 20,000 to 100,000 square feet spaces are in particularly high demand for growing companies such as midsize technology startups. As a result, many expanding midsize firms have opted to relocate in other nearby communities. Final Economic Development Strategic Plan � September 13, 2016 5 Lack of diversity in revenues for the City's General Fund. In FY 2012-13, Apple contributed total revenues of$9.2 million, or approximately 18 percent of Cupertino's General Fund budget.3 Most of the revenues that Apple generates come from sales, property, and utility user taxes. Overall, the opening of Apple Campus 2 is expected to increase Apple's share of tax revenue. In addition to the direct tax revenues generated by Apple,the company indirectly generates tax revenues from its suppliers,consultants,and other vendors to the General Fund budget. At the same time,the decline of Vallco Shopping Mall, as well as the loss of major business-to-business sales tax producers (including Hewlett-Packard), have reduced other sources of sales tax revenues in Cupertino. Although the City has partially offset the decline in sales tax by renegotiating an existing sales tax rebate agreement with Apple, these trends have decreased the diversity of revenue sources for the City's General Fund. Concerns about protecting Cupertinds quality of life. According to the 2014 community survey, residents believe that the most important issues facing Cupertino are affordable housing(33 percent),traffic (21 percent), and controlling growth(17 percent).4 Many residents are also concerned about preserving the quality of the public school system as the community continues to grow and change. KEY ECONOMIC DEVELOPMENT ISSUES Based on Cupertino's economic opportunities and challenges described above, there are five key issues defined in the EDSP for the City to prioritize over the next three to five years. These include: A. Connectivity and Place-Making: Excellent bicycle, pedestrian, and transit access is becoming increasingly important for economic development, as more companies consider transportation alternatives in making location decisions. Moreover, place-making and connectivity improvements contribute to a high quality of life and help mitigate the traffic impacts of new growth and development. Strategies including investing in public realm improvements on Stevens Creek Boulevard to support the implementation of the Heart of the City Specific Plan,and supporting local and regional investments that expand transit,pedestrian, and bicycle access to employment and activity centers in Cupertino. B. Supporting Growth of Small and Midsize Businesses: Cupertino is very attractive for start-ups and small companies.However,these businesses are often priced out of Cupertino as they grow due to high rents and a lack of available office space. Strategies to support the growth of small and mid-size businesses include facilitating the development of new office spaces in the range of 20,000 to 100,000 square feet; encouraging development of incubator spaces for start-ups in order to diversify the city's industrial mix to include life sciences and other emerging technologies; expanding visitation and outreach to existing small and midsize firms; and providing technical assistance and resources. C. Retail Support and Development: Cupertino's strong household spending power and growing employment base create significant demand for retail. However, while the city offers many neighborhood shopping centers,residents typically travel outside of the city for dining, entertainment, and specialty shopping opportunities. By working with property owners to upgrade aging shopping centers, supporting emerging restaurant, entertainment, and shopping clusters, and developing policies for regulating food trucks and other mobile services,the City can help foster thriving retail destinations that provide goods and services desired by community members. 3 This does not include one-time revenues from the construction of Apple Campus 2. The fiscal analysis related to Apple and presented here is from Keyser Marston Associates, "Economic and Fiscal Impacts Generated by Apple in Cupertino—Current Facilities and Apple Campus 2",prepared for Apple Inc.,2013. 4 City of Cupertino–2014 Community Satisfaction Survey, Godbe Research,2014. Final Economic Development Strategic Plan � September 13, 2016 6 D. Hospitality: Cupertino's growing technology sector drives strong demand for hotel rooms and conference spaces. While this results in significant hotel tax revenues for the City's General Fund, business travelers often struggle to find rooms in or near Cupertino and local civic organizations have difficulty finding affordable space for meetings and events. By monitoring the need for additional hotel rooms and meeting space and entitling additional hotel development as appropriate, Cupertino can support diversification of the General Fund, and provide hotel rooms and event space to meet the needs of visitors,businesses, and civic organizations. E. Marketing: Cupertino is well known throughout the region— and the world— as the home of Apple, and the city is considered a highly prestigious business address second only to the North Valley cities of Palo Alto, Mountain View, and Menlo Park. Maintaining and expanding Cupertino's reputation as an innovation center will help the city continue to attract a diverse range of businesses. The strategies, implementation actions, and potential parmers to address each of these issues is described in the following section. Final Economic Development Strategic Plan � September 13, 2016 7 111. STRATEGIES AND ACTION ITEMS As discussed in Section II, the technical analysis and community engagement activities resulted in the identification of five key economic development issues for the EDSP to address. These key issues include: A. Connectivity and Place-Making B. Supporting Growth of Small and Midsize Businesses C. Retail Support and Development D. Hospitality E. Marketing For each of these five issues,the EDSP identifies specific strategies for the City to undertake over the next three to five years. The key issues and strategies to address them are summarized in Figure 1. The remainder of this section identifies implementation action items for addressing each of the key issues. Action items include continuing the City's ongoing efforts to support economic development in Cupertino, as well as new action items that the City Council may choose to implement to advance economic development. All action items are classified into one of three categories based on the amount of additional staff time, legislative action, or budget required for implementation: • Category 1: Require small amounts of additional staff time in order to implement, but no major legislative action or budget allocations. • Category 2: Require significant staff time andlor legislative action by the City Council. • Category 3: Require additional budget allocation,as well as significant staff time andlor legislative action. The remainder of this chapter describes each potential implementation action item in more detail, and identifies the lead agency from the City as well as likely parmers. A full matrix of all the economic development issues, strategies, and action items is presented in the appendiY to this report. Final Economic Development Strategic Plan � September 13, 2016 8 Figure 1: Key Issues and Strategies for Economic Development A. Connectivity and Place- 1. Invest in public realm improvements to support the development of the Making City's commercial/retail and mixed-use areas as pedestrian-oriented Invest in infrastructure corridors that serve as welcoming gateways to Cupertino and provide improvements that support a variety of community gathering spaces. economic development and 2. Support local and regional transportation improvements that mitigate the traffic impacts of improve transit, pedestrian and bicycle connections to employment new growth. and activity centers in Cupertino. 3. Facilitate the development of new office and industrial/flex space for small and midsize companies to expand in Cupertino. B. Support Growth of Small 4. Support development of business incubator, accelerator, and Midsize Businesses coworking, shared, and "on-demand"workplaces Provide physical spaces and 5. Continue and strengthen visiting and outreach programs for small business support to small and and midsize businesses(fewer than 250 employees). midsize businesses. 6. Develop a cohesive business support network offering technical assistance and access to financing, with a focus on enabling growing businesses to stay in Cupertino. 7. Work with retail property owners and tenants to revitalize and C. Retail Support and upgrade aging shopping centers on Stevens Creek Boulevard. Development 8. Support emerging restaurant, entertainment, and shopping clusters Foster thriving retail that serve as destinations for workers, residents, and visitors. destinations that provide g Develop policies for regulating food trucks and other mobile goods and services desired services, including the types of mobile services that are permitted, by community members. the locations and times when they may operate, and measures for mitigating environmental, traffic, and other impacts. D. Hospitality 10. Provide adequate hotel rooms and event venues to support the Support diversification of the City's General Fund and meet business needs. City's General Fund, and provide hotel rooms and event space to meet the needs of visitors, businesses, and civic organizations. E. Marketing 11. Develop an integrated approach to marketing Cupertino to brokers, Maintain and expand business owners, and others as a center for innovation and the Cupertino's reputation as an heart of Silicon Valley. innovation center. Final Economic Development Strategic Plan � September 13, 2016 9 ISSUE A: PLACE-MAKING AND CONNECTIVITY STRATEGY 1 Invest in public realm improvements to support the development of the City's commercial/retail and mixed-use areas as pedestrian-oriented corridors that serve as welcoming gateways to Cupertino and provide a variety of community gathering spaces. The General Plan calls for updating the look and feel of the City's neighborhood shopping centers and commercial corridors to improve bicycle and pedestrian connections to surrounding residential neighborhoods and create welcoming gateways into Cupertino. The General Plan calls out Stevens Creek Boulevard as Cupertino's core commercial corridor, and the Heart of the City Specific Plan identifies streetscape design principles for different segments of the Stevens Creek corridor, including street tree, landscaping, and street furnishing concepts, and specifies design standards for new development. The City has also adopted Conceptual Plans for North DeAnza Boulevard (between I-280 and Stevens Creek), De Anza Boulevard (between Stevens Creek and Bollinger Road), and the Vallco Shopping District that provide direction on streetscape and connectivity improvements in these areas. By creating a more welcoming environment for Cupertino residents and visitors, the new street trees and other improvements will help support successful retail along these corridors. Ongoing City Actions: 11 Implement the land use and design guidelines from the Heart of the City Specific Plan; require new development to contribute to planned streetscape and infrastructure improvements. The Specific Plan lists contributions and in-kind improvements by developers as the primary mechanism for implementing the streetscape improvements identified in the plan. o Lead Agency: Planning o Partners: Stevens Creek Property Owners and Developers 1.2 Implement the land use and transportation policies in the General Plan and Conceptual Plans to ensure that site, building, street, and streetscape design support the City's goals for community character and connectivity.The plans call for improvements to neighborhood centers and commercial corridors throughout the City. o Lead Agency: Planning Category 1 Actions: 1.3 Support community programming at activity centers along major corridors. The General Plan identifies a series of special centers and nodes along major corridors, including the Oaks Shopping Center, Cupertino Memorial Park, DeAnza College, the North Crossroads Node, City Center, and the Civic Center. By partnering with civic organizations, retailers, and property owners to sponsor programming and events in these nodes, the City can help bring new activity to the corridors. o Lead Agencies: Economic Development,Planning,Parks and Recreation o Partners: Chamber of Commerce, DeAnza College, Retail Businesses and Property Owners Final Economic Development Strategic Plan � September 13, 2016 10 Category 2 Actions: 1.4 Develop implementation plans for improving major corridors such as Stevens Creek Boulevard, including identifying phasing and specific funding sources for planned improvements. For example, a comprehensive implementation strategy for the Heart of the City Specific Plan would identify the desired phasing for the streetscape improvements called for in the plan, provide updated construction costs,and identify the full range ofpotential funding sources.Adopting an implementation strategy could position the City to apply for grants and seek other funds, above and beyond contributions from developers. In addition, a clear strategy could help lay the groundwork for the eventual establishment of a BID or PBID (see discussion of BIDs and PBIDs above,under Strategy 7). o Lead Agency: Planning o Partners: Property Owners and Developers, Business Owners, Residents 1.5 Pursue grants for streetscape and other improvements as they become available.For example,the One Bay Area Grant (OBAG) program provides grants for local streets and roads preservation, bicycle and pedestrian improvements, and streetscape improvements. At least 70 percent of OBAG funds must be spent in Priority Development Areas (PDAs); as a PDA, the Stevens Creek corridor would be eligible for this funding. The Santa Clara Valley Transportation Authority (VTA) administers the OBAG capital grant program in Santa Clara County. VTA has fully allocated its share of OBAG dollars through FY 2015-16. After FY 2015-16, however, more OBAG funds may become available. ° Lead Agency: Public Works, Planning o Partners: Santa Clara Valley Transportation Authority (VTA) Category 3 Actions: 1.6 Allocate funds in the City's capital improvement program to implement landscaping,pedestrian, and other infrastructure improvements envisioned in the Heart of the City Specific Plan and other Conceptual Plans. Setting aside capital improvement funds from the City budget would help facilitate faster implementation of the Plan, and help meet the local match required by many grant programs. o Lead Agency: Public Works, Finance,Planning STRATEGY 2 Support local and regional transportation improvements that improve transit, pedestrian and bicycle connections to employment and activity centers in Cupertino. Access to transit and excellent bicycle and pedestrian connections are becoming increasingly important for economic development, as more companies consider transportation alternatives in making location decisions.Facilitating transit,walking,and bicycling can also help reduce strain on the automobile network, improve health and quality of life for Cupertino residents, and help mitigate the traffic impacts of new growth and development—a major concern for many community members. Final Economic Development Strategic Plan � September 13, 2016 11 Ongoing City Actions: 21 Implement and regularly update and the Bicycle Transportation Plan,including pursuing grants as they become available. In 2015, the City Council adopted the 2015 Bikeway Improvement Prioritization Update to the 2011 Cupertino Bicycle Transportation Plan. Together, these documents provide a roadmap designed to encourage bicycling as a safe, practical, and healthy alternative to the automobile. The City has also established a Bicycle Pedestrian Commission charged with reviewing, monitoring, and making recommendations regarding bicycle and pedestrian traffic,parking, education and recreation, and other transportation issues. The Commission and City staff work together to implement the Bicycle Transportation Plan and expand the share of trips taken by on foot or by bicycle. o Lead Agency: Public Works o Partners: Bicycle Pedestrian Commission 2.2 Require major employers to meet transportation demand management goals. The General Plan Mobility Element requires large employers to develop and maintain transportation demand management (TDM) programs to reduce vehicle trips generated by their employees, and develop a tracking method to monitor results. o Lead Agencies: Planning,Public Works 2.3 Actively participate in regional transportation planning processes and advocate for decisions that meet Cupertino's needs. Public Works, Planning, and other departments regularly participate in regional transportation planning processes to advocate for programs that are consistent with the goals and policies of Cupertinds General Plan. City staff also work with neighboring cities to address regional transportation and land use issues of mutual interest. o Lead Agency: Public Works,Planning 2.4 Work with Caltrans and the Santa Clara Valley Transportation Authority to explore new regional transit options, such as on Highway 85. In anticipation of a potential Santa Clara County Transportation Sales Tax measure on the ballot in the November 2016 election, the City of Cupertino has been working with other West Valley and North County cities on developing a mass transit project that would serve this portion of the region's jobs utilizing VTA and concentrating on the 85 Corridor. In April 2016, Cupertinds Director of Public Works introduced the concepts to the Chamber of Commerce Legislative Action Committee and held a Business Workshop to facilitate a more detailed discussion. o Lead Agency: Public Works Category 1 Actions: 2.5 Work with major employers to leverage corporate transportation programs (e.g., shuttles, bike share) to benefit the community as a whole. Apple and other large employers operate shuttles,bike share,and other transportation programs to help their employees travel to and around Cupertino without a car. While employers may need to restrict access to some of these services in order to maintain corporate security, there may be opportunities to expand on some existing corporate transportation programs—such as bike share—to serve the broader community. o Lead Agency: Public Works,Planning, Economic Development o Partners: Major Employers Final Economic Development Strategic Plan � September 13, 2016 12 Category 2 Actions: 2.6 Work with regional and county agencies to explore new funding sources for local and regional transit improvements.As revenues from the federal and state gas taxes decline, funding for local and regional transportation improvements is becoming increasingly scarce. MTC and Bay Area cities and counties are exploring new options, including new taxes and fees (such as the proposed Santa Clara County Transportation Sales Tax Measure), revenues from California's cap-and-trade program, and property-based land financing or "value capture" tools (such as Enhanced Infrastructure Financing Districts and Community Facilities Districts). By remaining actively involved in these conversations, Cupertino staff can ensure that the City is aware of emerging tools and sources, and represented in conversations about how funding should be allocated. o Lead Agency: Public Works,Planning 2.7 Pursue grants for high priority transportation projects, including bicycle and pedestrian improvements, as they become available. In addition to improvements on Stevens Creek, this could include walking and bicycling paths that connect employment areas with destinations such as local retail centers. o Lead Agency: Public Works,Planning 2.8 Prioritize investments in bicycle, pedestrian, and other transportation improvements that connect workers and workplaces with local retailers. These include bicycle paths and sidewalk improvements that directly connect the City's major employment centers with retail and restaurant nodes. o Lead Agency: Public Works,Planning 2.9 As part of the approvals process for large commercial development projects,design a community benefits policy that encourages projects to provide transportation demand management (TDM) programs,potentially including funding for a community shuttle.As discussed above,the General Plan Mobility Element already contains a similar provision for ensuring major employers provide TDM programs. This policy could be extended to major development projects, and include incentives for developers (as well as employers and shopping center owners) to contribute funding for a community shuttle that would improve connections among major community destinations such as local civic and cultural centers,retail centers, schools, and nearby Caltrain stations. o Lead Agency: Planning Final Economic Development Strategic Plan � September 13, 2016 13 ISSUE B: SUPPORT GROWTH OF SMALL AND MID-SIZE BUSINESSES STRATEGY 3 Facilitate the development of new office and industrial/flex space for small and midsize companies to expand in Cupertino. Cupertino is highly attractive for start-ups and small companies. However, a very tight market for office space, combined with the high share of office space occupied by Apple, results in scarce leasing opportunities in the 20,000 to 100,000 square foot range. As a result, many expanding midsize firms have opted to relocate in other nearby communities. In the long term, retaining these growing companies will require providing office space to meet their needs. Ongoing City Actions: 3.1 Create opportunities for small office users by encouraging developers to reserve space for small offices. For example, the City negotiated an agreement with Sand Hill Property Company to reserve space for small office users in the Main Street project. These would range from 3,000-10,000 square feet and would include small business ventures, co-working spaces, etc. Category 2 Actions: 3.2 Increase allocation for office development for mid-size businesses in the 20,000-100,000 sq. ft. range. The City lacks office space in the 20,000 to 100,000 square foot range that can accommodate growing companies and midsize startups. o Lead Agency: Planning 3.3 Create a new development allocation category for Innovation Space.This allocation would provide for the development of new laboratory and R&D space for businesses in the greentech,biosciences,life sciences, and other creative industries. o Lead Agency: Planning 3.4 Consider establishing a new"Innovation District"in the Bubb Road and/or Bandley Drive/Valley Green Drive areas. By formally designating some of the less intensive, Light Industrial areas in the City as "Innovation Districts," the City could encourage and incentivize the reuse and rebuilding of existing buildings to create spaces appropriate for small to midsize businesses in sectors such as greentech,biosciences, life sciences, and other creative industries. For example, the designation could apply to the Bubb Road area (roughly bounded by Stevens Creek Boulevard on the north, McClellan Road on the south, Highway 85 on the east, and Imperial Avenue on the west) andlor the Light Industrial properties located on the west side of Bandley Drive and north of Valley Green Drive. The City could support the Innovation Districts with a coordinated branding and marketing strategy, and explore incentives (such as development allocations for innovation space) to encourage property owners to dedicate new and existing space to greentech, biosciences, and other innovation uses. The new "Innovation District" would also require or incentivize street improvements and transportation demand management measures aimed at encouraging walking and bicycling and mitigating the traffic impacts of new businesses, as well as the provision of other uses that would serve the district (food uses, etc). Final Economic Development Strategic Plan � September 13, 2016 14 o Lead Agency: Planning 3.5 Review and update land uses in the zoning designations related to Office and Industrial uses to ensure that they are adaptable to current and future business needs. Some of the uses in the existing zone code are outdated and do not reflect current industry needs.The code should be revisited to better align with current and emerging space needs, and to more clearly state the types of uses (such as biosciences, greentech, etc.)that the City envisions for different locations within Cupertino. o Lead Agency: Planning 3.6 Allow for the conversion of underutilized ground floor retail space to office space. In underperforming shopping centers, allow for spaces to be occupied by smaller office users,providing that there is sufficient parking and infrastructure to support office uses. Note that this may require a zoning change in some locations, such as in the Heart of the City Specific Plan area. o Lead Agency: Planning 3.7 Conduct parking study to review parking ratios for retail/commerciaUoffice uses. Note that changes in parking ratios may require zoning and regulation changes in some locations, such as the Heart of the City Specific Plan area. o Lead Agency: Planning STRATEGY 4 Support development of business incubator, accelerator, co-working, shared, and "on-demand" workplaces. Co-working, shared, and on-demand spaces provide flexible office space where entrepreneurs, freelancers, or other individuals can rent a desk at a relatively low cost.Examples include WeWork and NextSpace(see textbox below). Start-up accelerators or incubators provide mentorship,training,and sometimes investment capital andlor low-cost space for emerging tech companies, often in exchange for a small amount of equity. While some start-up accelerators have proven highly profitable,s co-working businesses typically operate on a thin profit margin,6 and some incubators that provide low-cost space for start-ups have required public subsidy.'For example,the San Jose BioCube was originally funded by the San Jose Redevelopment Agency (see text box below). Cupertino already has at least one co-working space: Pacific Workplaces, an 18,000 square foot location on Stevens Creek Boulevard that provides flexible co-working spaces for approximately 300 small businesses. By supporting these types of flexible workspaces, the City can continue to nurture Cupertino's existing ecosystem of start-ups and help grow the next generation of innovative businesses. 5 Tomio Green,"Top Startup Incubators and Accelerators: Y Combinator Tops with$7.8 Million in Value,"Forbes, April 30, 2012, http://www.forbes.com/sites/tomiogeron/2012/04/30/top-tech-incubators-as-ranked-by-forbes-y- combinator-top s-with-7-billion-in-v alue/. 6 DeskMag, "The 2nd Global Coworking Survey: How Profitable Are Coworking Spaces?" http://www.deskmag.com/en/how-profitable-are-coworking-spaces-177. 7 Diana Samuels, "Silicon Valley Incubators Feel the Pain of Redevelopment's Demise," Silicon Valley/San Jose Business Journal, July 13, 2012, http://www.bizjournals.com/sanjose/print-edition/2012/07/13/silicon-valley- incubators-feel-the.html?page—all. Final Economic Development Strategic Plan � September 13, 2016 15 Category 2 Actions: 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. o Lead Agency: Planning Case Study: WeWork and NextSpace WeWork and NextSpace are privately-funded providers of co-working spaces with national and international locations. WeWork currently has about six locations in San Francisco and one in San Jose, while NextSpace has five Bay Area locations. Membership with these spaces can take many forms and could include: occasional access, day passes, long term passes to common workspaces, dedicated workstations and offices, and conference rooms. Typically, these co-working spaces tout the benefits of connecting with other innovators and creative enterprises as a key value proposition of inembership. Case Study: San Jose BioCube The San Jose BioCube is a business incubator providing facilities for life science, nanotech, and cleantech startup companies.These facilities include office space, laboratory facilities,and business support services to a variety of startups who can either locate directly onsite or utilize BioCube's facilities on a pro-rated basis. Originally called the San Jose BioCenter, it was created in 2004 under the San Jose Bioscience initiative sponsored by the San Jose Redevelopment Agency.Although public funding was phased out with the agency's dissolution 2012, the facility was able to survive with the assistance of private investment and a name change to the "BioCube." In 2014 the BioCube became 100 percent self-sufficient. Sources:wework.com; nextspace.com;San Jose BioCube website(http://www.sanjosebiocube.com);"Silicon Valley incubators feel the pain of redevelopmenYs demise",Silicon Valley Business Journal,2012 (http://www.bizjournals.com/sanjose/print-edition/2012/07/13/silicon-valley-incubators-feel-the.html);"San Jose BioCube Creates Self-Sustaining Biotech Dream", PRWeb,2013 (http://www.prweb.com/releases/2013/5/prweb 10716857.htm). Category 3 Actions: 4.2 Seek out partnerships for developing a new small business incubator or accelerator,and consider contributing City funds if needed.The City may explore potential partners like DeAnza Community College, the Santa Clara County Library District, other nearby universities, colleges, or other organizations, to operate a small incubator or accelerator. The City may contribute funding to support the incubator spaces, either by directly subsidizing its operations or by encouraging private developers to provide low-cost spaces for this type of use as part of a community benefits process for approving large commercial projects (see discussion under Strategy 3). o Lead Agency: Economic Development o Potential Partners: DeAnza Community College, Santa Clara County Library District Final Economic Development Strategic Plan � September 13, 2016 16 STRATEGY 5 Continue and strengthen visitation and outreach programs for small and midsize businesses (fewer than 250 employees). The Economic Development Division of Cupertino's Community Development Department already conducts a robust program of business outreach aimed at providing new and growing businesses with information about doing business in Cupertino (see "Ongoing City Efforts" described below). The City's business outreach program could be expanded and refined to focus on retaining small and midsize businesses, especially those that are at risk of moving out of the City as they grow. Fostering a diverse range of firms will help build a resilient business ecosystem that can better withstand future changes in broader economic conditions. Ongoing City Actions: 5.1 Conduct outreach to existing businesses, including regularly visiting local businesses to discuss programs,events,and/or incentives that may be of interest.Economic Development staff visit local businesses and attend meetings of the Chamber of Commerce and other local organizations to provide information on business resources offered by the City and partner organizations (such as the Silicon Valley Economic Development Alliance and the Silicon Valley Small Business Development Center). o Lead Agency: Economic Development 5.2 Distribute and regularly update "How to Start Your Business in Cupertind' booklet. The "How to Start Your Business in Cupertind'booklet is published by the Economic Development Division and provides step-by-step instructions and informational links for developing a business plan, selecting a location, applying for permits and licenses, and accessing incentives. o Lead Agency: Economic Development 5.3 Continue to host the annual Small Business Symposium. The City of Cupertino and the Cupertino Chamber of Commerce co-host an Annual Small Business Symposium that provides workshops covering essential topics for those wanting to start a new business or who are ready to grow their existing businesses.In past years,workshop topics have included marketing and social media,accessing capital, legal issues, and green business practices. o Lead Agency: Economic Development o Partners: Cupertino Chamber of Commerce, Cupertino Library Category 1 Actions: 5.4 Provide assistance to new and expanding businesses with obtaining needed permits and licenses from the City and other agencies. The Planning and Economic Development Divisions could work together to explore a"concierge"service that would assign specific staff inembers to work closely with high-priority applicants, including providing a single point of contact to expedite the City permitting and licensing process. Staff could also assist businesses in receiving permits from other agencies. o Lead Agencies: Planning and Economic Development Final Economic Development Strategic Plan � September 13, 2016 17 5.5 Identify growing, small and midsize companies that are at risk of moving out of Cupertino as they expand, and focus existing business retention efforts on these companies. Economic development staff could identify growing companies that are at risk of leaving the City in order to expand, and help connect them with resources such as those offered by the Silicon Valley Economic Development Alliance and the Silicon Valley Small Business Development Center. o Lead Agency: Economic Development 5.6 Work with local brokers to match growing companies to space in Cupertina Finding office space in Cupertino is a significant barrier for many companies that wish to grow in the City. Building on existing relationships with brokers, Economic Development staff can help provide information on office space vacancies to small and midsize businesses that have been identified as being at risk of leaving the City. o Lead Agency: Economic Development 5.7 Conduct an online survey of existing businesses to determine key advantages and disadvantages of doing business in Cupertino.This survey could be conducted on a regular(e.g., annual basis) help evaluate existing City services and programs, and help identify challenges or gaps in the resources available to local businesses. o Lead Agency: Economic Development Category 2 Actions: 5.8 Conduct regular outreach to growing small and midsize businesses to determine what services would help them expand in Cupertino, including individual visits, roundtables or focus groups, and citywide events. These visits, roundtables, or events could focus on key audiences (such as growing midsize companies) or important topics identified in the online survey (described under Category 1 Actions). Regular, formal discussions with businesses could inform the City's future business outreach and retention efforts. o Lead Agency: Economic Development Final Economic Development Strategic Plan � September 13, 2016 18 STRATEGY 6 Develop a cohesive business support network offering technical assistance and access to financing, with a focus on enabling growing businesses to stay in Cupertino. Cupertino staff maintain excellent relationships with local and regional business organizations that provide technical assistance to businesses,and regularly refers local businesses to those technical service providers. There may be opportunities to build on these relationships to expand the range of services and resources available to Cupertino businesses, or for the City to provide services directly to businesses. Ongoing City Actions: 61 Meet regularly with local and regional business organizations and technical assistance providers to build partnerships. Economic Development staff regularly attend meetings held by the Cupertino Chamber of Commerce (including the Chamber's Legislative Action Committee and the Asian American Business Council), the Silicon Valley Economic Development Alliance, CREW Silicon Valley (a commercial real estate professional organization), and the Rotary Club of Cupertino. o Lead Agency: Economic Development o Partners: Cupertino Chamber of Commerce, Silicon Valley Economic Development Alliance, CREW Silicon Valley,Rotary Club of Cupertino 6.2 Continue to hold quarterly meetings with Economic Development Committee. The Committee consists of four City staff inembers, two City Council members and four representatives from the Cupertino Chamber of Commerce. The Committee's activities are targeted at enhancing the Cupertino business environment, developing business and community relationships, working with existing business to identify and eliminate any barriers to retention or redevelopment, recruiting compatible businesses to the City, and supporting a strong local economy and fiscal base to enable to the City to provide excellent municipal services. o Lead Agency: Economic Development Category 1 Actions: 6.3 Explore additional opportunities to connect small businesses with existing micro-credit providers or other small business lenders. For example, the Silicon Valley Small Business Development Corporation in San Jose offers workshops and individual business counseling on access to capital, including bank finance, Small Business Administration (SBA) loans, and venture capital. o Lead Agency: Economic Development o Partners: Silicon Valley Small Business Development Corporation, Small Business Administration, Silicon Valley Talent Partnership Final Economic Development Strategic Plan � September 13, 2016 19 Category 2 Actions: 6.4 Partner with technology, design, and arts programs at De Anza College and local middle and high schools to offer assistance to Cupertino businesses,such as support in building websites and applications. For example, students could help local businesses design websites, participate in hackathons, launch social media advertising campaigns, etc. o Lead Agency: Economic Development o Partners: De Anza College, Cupertino Union and Fremont Union School Districts, Library 6.5 Establish the City of Cupertino as a Kiva Zip trustee to find and endorse local businesses seeking to borrow money on the Kiva Zip website. Kiva Zip is a microfinancing platform that connects entrepreneurial borrowers with individuals interested in supporting small businesses. A Kiva Zip "trustee," which can be a City or other organization, recommends borrowers for a loan based on the borrower's qualifications and local knowledge. The trustee can support borrowers in other ways but does not have any fiduciary responsibility for the loan. Trustees take on no direct fmancial risks, but their reputation is based on the repayment of the loans that they endorse. See the text box below for an example of the City of Oakland's KivaZip Trustee Program. o Lead Agency: Economic Development o Partners: Kiva Zip Category 3 Actions: 6.6 Contract with business assistance providers to provide targeted services to Cupertino businesses, or hire staff and provide services in-house. Rather than referring businesses to the Silicon Valley Small Business Development Corporation or other business technical assistance organizations,the City could contract directly with providers to offer services in Cupertino, andlor hire additional Economic Development staff with the capacity to provide training, counseling, and other services in-house. This could include working with Small Business Development Centers of Northern California to sponsor a local office(see text box below for more information). o Lead Agency: Economic Development o Partners: Small Business Development Centers ofNorthern California 6.7 Provide seed capital to start a revolving loan fund to provide small loans for small and midsize businesses in Cupertino for business expansion and other business needs. Revolving loan funds provide fmancing for small businesses that are meet local goals (such as creating local employment opportunities) and are creditworthy,but do otherwise do not qualify for bank loans. See the text below for an example sponsored by the City of Berkeley. o Lead Agency: Economic Development Final Economic Development Strategic Plan � September 13, 2016 20 Case Study: City of Oakland's Kiva Zip Trustee Program Kiva Zip is a microfinancing platform that BUS INFORMATION � connects entrepreneurial borrowers with ��" � individuals interested in supporting small � businesses in the U.S. A Kiva Zip "trustee," '°�"°"`"� :; �� which can be an entire organization, „ _= recommends borrowers for a loan based on ��''-� - �.. the borrower's qualifications and local �-' knowledge. The trustee can support borrowers in other ways but does not have any fiduciary responsibility for the loan. - - Trustees take on no direct financial risks, but _ � their reputation is based on the repayment of "R the loans that they endorse. In 2013, the City � �� of Oakland became the first city government , , to serve as a Kiva Zip trustee. Since that time, ` the City has endorsed 33 loans for a total value of approximately $235,000, and a repayment rate of 87 percent. The City uses , billboard advertising to promote the program, Advertising for Oakland's Kiva Zip which supports locally owned businesses, program on a local bus shelter often in food service. Image:strategic Economics Case Study: Berkeley Revolving Loan Fund The Berkeley Revolving Loan Fund is a source of financing for small businesses that otherwise do not qualify for conventional bank loans. Borrowers still need to be creditworthy and satisfy other criteria, such as demonstrating that their business creates local employment opportunities. The fund was started in 1984 with a $500,000 grant from the federal Economic Development Administration, initially targeting minority-owned businesses in the South Berkeley neighborhood. In 2011, the City expanded the program to be citywide, and brought in an independent underwriter. Loans are approved by a Loan Administration Board composed of inembers with expertise in business operations, legal issues, and commercial lending. The target loan size is between $35,000 to $50,000, with a term of up to seven years. Borrowers have flexibility to use the credit for working capital, tenant improvements, or asset purchases. Since the program began, the fund has grown to $700,000. The total amount loaned since 1984 is nearly $1.6 million, with 38 borrowers. It is estimated that the program has created 176 new private sectorjobs,and saved 38 private sector jobs. Currently, there are six borrowers with active loans totaling $405,000. These borrowers include a high-end tent manufacturer,a reseller of biofuels,and a cooking school. Sources: Kiva Zip (https://zip.kiva.org/trustees/573); Oakland Local, "Kiva Zip Loans Fuels Oakland Small Business Community", 2015 (http://oaklandlocal.com/2015/05/kiva-zip-loans-fuels-oakland-small-business- community/); City of Berkeley Office of Economic Development (http://www.ci.berkeley.ca.us/loanfund/); City of Berkeley, Economic Dashboard,2015. Final Economic Development Strategic Plan � September 13, 2016 21 Case Study: Small Business Development Centers of Northern California The Small Business Development Centers of Northern California are a network of business assistance offices whose services include educational and training seminars and counseling at low- or no-cost. The NorCal network is operated out of CSU Humboldt, and the network is funded by the Small Business Administration, with satellite offices typically at the county level. The Silicon Valley SBDC, in downtown San Jose, is the satellite office serving Santa Clara County. NorCal SBDC also has a handful of strategic initiatives with services tailored to particular industry sectors, including technology, procurement, international trade,and green business. For example,the"Tech Futures Group", with an office in Berkeley, advises tech startups and growing firms with advisors that have expertise navigating the particular issues confronted by high growth technology firms, such as intellectual property strategy and venture capital fundraising. Sources:Small Business Development Centers of Northern California(http://www.norcalsbdc.org);The Tech Futures Group (http://www.techfuturesgroup.org). ISSUE C: RETAIL SUPPORT AND DEVELOPMENT STRATEGY 7 Work with retail property owners and tenants to revitalize and upgrade aging shopping centers on Stevens Creek Boulevard. The Cupertino General Plan identifies the Stevens Creek corridor as the"Heart of the City"—the key mixed- use area that functions as Cupertino's downtown.The General Plan and the Heart of the City Specific Plan (discussed in more detail above, under Strategy 1) envision an improved corridor that provides a greater sense of place, more community identity, and a memorable experience for residents,workers and visitors. The qualities of successful pedestrian-oriented retail districts are explained in more detail in the text box on the following page. One key part of implementing this vision is revitalizing and upgrading aging shopping centers on the corridor. While the smaller, strip shopping centers on Stevens Creek Boulevard have generally been successful at attracting new tenants, many have not been upgraded in years. In particular, the eastern segment of Stevens Creek Boulevard— extending from North De Anza Boulevard to the city border— is characterized by relatively small, shallow lots with limited visibility, parking constraints, and relatively underperforming retailers. Programs and policies that incentivize property owners and businesses to reinvest in aging shopping centers will help support continued, successful retail activity on the corridor, and contribute to upgrading the look and feel of Stevens Creek to create a welcoming gateway into Cupertino. Final Economic Development Strategic Plan � September 13, 2016 22 Characteristics of Successfu/Pedestrian-Oriented Retai/Districts At the August 2015 Community Forum on Local Businesses, Cupertino residents cited Burlingame Avenue (Downtown Burlingame), Castro Street (Downtown Mountain View), Downtown Los Gatos, and Downtown Campbell as examples of attractive destinations for dining, shopping, and entertainment. These districts share some common elements that contribute to their success: • Concentration of retail within a convenient walking distance: A critical mass of retail and services within a comfortable walking distance enables visitors to park once and walk to their destination, or browse shopping and dining options on foot. Successful pedestrian-oriented retail districts are often quite compact. For example, the majority of activity on Burlingame Avenue is concentrated within a quarter-mile section of the street, or about a five-minute walking distance from end to end. • Pedestrian-friendly atmosphere: Burlingame Avenue, Castro Street, Downtown Los Gatos, and Downtown Campbell all have wide sidewalks and attractive street trees, lighting, and other furniture. The storefronts are active, and many restaurants have invested in attractive outdoor dining. • High concentration of restaurants: In these successful retail districts, about one- quarter to one-third of businesses are restaurants or food stores. • Comprehensive parking management strategies: Mountain View and Los Gatos provide ample visitor parking in public lots and garages located within walking distance of downtown shops and restaurants, while restricting long-term parking in surrounding residential neighborhoods. • Active merchants' associations: Downtown Burlingame, Downtown Mountain View, and Downtown Campbell all have active merchants' associations that partner with the cities in sponsoring marketing, community events, and other activities. � ,._ \ k � � �� .i•�� \\ �� ,,r� �� : , �+ -- — '�/ � � ` '-`� � ��''F""� � �. � � �� .;��.. . � �dl. - _ �..g��. i,.;' a!` ti, � ,� � � . �� MW, � � �i� .� � � j'� � � � ��—�"'�j,._� _�e� r � � - �� .�� y� �'�� '� � 7 r� �r, � � ' /� F> .. � ��V,�� I�� •'/ 4 , '�� / `_ . � e� — g,• ��- � � , ; , .` — � � ° , _ �."�� a ��`� � , � � !�i�,� ___ _ � - � -:� Downtown Burlingame Downtown Mountain View Image:Strategic Economics Image:Strategic Economics Final Economic Development Strategic Plan � September 13, 2016 23 Category 2 Actions: 7.1 Provide incentives in key locations for upgrading or intensifying existing retail and/or replacing retail with mixed-use development. Some small parcels with existing retail centers may not be able to accommodate sufficient parking to meet current code requirements, limiting the property owner's ability to upgrade,replace the existing retail space, or redevelop with higher-intensity retail or mixed- use project. Providing some flexibility on parking requirements for these properties, allowing for miYed-use development, andlor providing incentives such as increased heights or densities on challenging parcels, could encourage property owners to invest in major improvements or redevelop aging retail buildings. o Lead Agency: Planning o Partners: Retail Property Owners, Developers 7.2 Develop design standards for retail space in mixed-use developments to ensure that new retail space contributes to the desired look and feel of the community, and functions well for retailers. Some mixed-use projects struggle to lease ground floor retail space in part due to the limited visibility from the street, lack of signage,poor vehicle and pedestrian access, low ceiling heights, andlor lack of specific requirements such as adequate ventilation for restaurant cooking. Providing guidelines on appropriate design could help ensure the success of future ground floor retail space. While the Heart of the City Specific Plan includes design guidelines for building exteriors, the plan does not provide specific standards for ground floor retail. o Lead Agency: Planning o Partners: Retail Property Owners, Developers 7.3 Conduct outreach to Stevens Creek property and business owners to explore the potential to form a Business Improvement District (BID) or Property-Based Business Improvement District (PBID) on all or part of the Stevens Creek corridor, to fund marketing, landscaping, maintenance, and/or other local needs. BIDs and PBIDs are a type of special assessment district in which business or commercial property owners vote to be assessed a fee to fund programs and projects within the business area.Typically,a BID or PBID provides resources to develop marketing campaigns, increase lobbying efforts, secure additional funding, and invest in public improvements and beautification projects in partnership with a city.By pooling private resources,business owners in BIDs collectively pay for activities that they could not afford on an individual basis. A BID or PBID on Stevens Creek Boulevard(or on some segment of the corridor) could pay for these types of activities, potentially including some of the landscaping and other streetscape improvements identified in the Heart of the City Specific Plan(see discussion under Strategy 8,below). o Lead Agencies: Planning and Economic Development o Partners: Stevens Creek Business Owners andlor Property Owners Final Economic Development Strategic Plan � September 13, 2016 24 Category 3 Actions: 7.4 Provide grants or loans to retail property owners and/or tenants to encourage them to upgrade their fa�ades. Fa�ade improvement programs provide matching grants or loans to incentivize retail property owners andlor tenants to invest in improvements to the exterior of their buildings. Typical improvements include new paint, installation or replacement of signs or awnings, and refurbishments to non-structural architectural features (e.g., trim, cornices, windows, etc.). In order to receive a grant or loan, applicants must meet certain criteria such as contributing a matching amount of money to the project, complying with local design guidelines, and receiving all necessary city permits. In addition to providing funding, some programs also provide design assistance to ensure that fa�ade improvements meet city standards. Fa�ade improvement programs are often targeted to a particular district, such as a downtown or major retail corridor. In Cupertino, this type of program could be targeted to Stevens Creek Boulevard to help achieve the goals of the Heart of the City Specific Plan. Prior to 2011, most fa�ade improvement programs in California were funded by redevelopment agencies. Since the dissolution of redevelopment in 2011, however, some cities have managed to find other funding sources,including Santa Cruz and Dublin(profiles in the text box below). o Lead Agencies: Planning and Economic Development o Partners: Property Owners, Retail Businesses Final Economic Development Strategic Plan � September 13, 2016 25 Case Study: City of Santa Cruz Fa�ade Improvement Program Since 1994, the City of Santa Cruz has offered ,:i.;� grants for fa�ade improvements to its retail �'� ' businesses,with over 100 grants disbursed since � " � the program's inception benefitting more than 260 small business establishments. Any ground floor retail business (or commercial property containing such a business)can apply for a grant, ; - s••- _� as long as each storefront benefiting from improvements has at least three years remaining � — �#''� on its lease.While the program prioritizes painting ' � entire buildings, improving public safety lighting, `�` !� � and anti-graffiti measures, signs, awnings, and �T�� landscaping can also be funded as part of an �- �� , overall fa�ade improvement project. Grants are i ' r'" � _ available for up to $10,000 for the entire project, "�� and up to $5,000 matching grant per storefront. � — Up to $1,000 is provided for a City-selected w;� designer. The grant program is paid for with the .� City's General Fund. � , r ,� �w` '' �� Case Study: City of Dublin Sa/es Tax � t ':_ �. Reimbursement Program. Enacted in 2009, the Sales Tax Reimbursement Program in the City of Dublin reimburses up to fifty percent of the net new sales tax paid to the city after eligible physical improvements have , , � ` been made to retail businesses. Participants generating between $100,000 and $500,000 in , � � � net new annual sales tax revenue are eligible for annual reimbursements over five years, up to the � total costs of improvements. Participants • � � generating over $500,000 are eligible for annual reimbursements over ten years. Costs covered Santa Cruz Fa�ade Improvement by the program include exterior improvements, Program Brochure interior tenant improvements, and site Image: Economic Development and improvements such as parking and landscaping. Redeveiopment�epartment,City of Santa Cruz. A participant in the program ordinarily needs to be a business newly locating in Dublin, not an existing business. Sources: Economic Development and Redevelopment Department, City of Santa Cruz http://cityofsantacruz.com/departments/economic-developmenUbusiness-supporUfacade-improvement-program; "Grant puts new face on riot-damaged business;City's Facade Improvement Program has helped 240 other sites", Santa Cruz Sentinel,2010 http://www.santacruzsentinel.com/article/ZZ/20100616/NEWS/100618140; City of Dublin, http://www.dublinca.gov/1672/City-Incentives. Final Economic Development Strategic Plan � September 13, 2016 26 STRATEGY 8 Support emerging restaurant, entertainment, and shopping clusters that serve as destinations for workers, residents, and visitors. Because retail sales taxes are a major contributor to the General Fund, a thriving retail market is important to the City's fiscal health. Retail nodes that offer a diverse range of shopping, dining, and entertainment options can also serve as community gathering places for residents and workers, and help attract new visitors to the city.Vallco Shopping Mall used to fill this role in Cupertino,and may do so once again when it is eventually redeveloped(however,Vallco Shopping Mall is subject to a separate Specific Plan process, and is therefore outside the focus of this Economic Development Strategic Plan). The new Main Street project also provides some new retail and community space. In addition to continue to monitor the success of these larger projects, the City can also help support smaller retail and community gathering nodes throughout Cupertino. Ongoing City Actions: 81 Meet regularly with retail and commercial brokers to answer questions,build relationships, and get updates on projects. Economic development staff maintain excellent relationships with retail and commercial brokers who are active in the Cupertino real estate market. o Lead Agency: Economic Development 8.2 Represent the City at ICSC and other local and regional conferences.Economic Development staff regularly attend conferences held by the International Council of Shopping Centers (ICSC) and other local and regional retail recruiting events to market Cupertino to retailers. o Lead Agency: Economic Development 8.3 Maintain "Eats 95014" app/website and"Cupertino at a Glance"website. "Eats 95014"is a local restaurant app that showcases Cupertino dining and food opportunities including restaurants, grocery stores, the farmer's market, and vineyards. The app provides information on store hours, parking information,noise level, directions,and links to websites.Users can search and sort restaurants by type of cuisine and services offered. The "Cupertino at a Glance" website provides a map with business information and website links for Cupertino's cultural, civic,recreational, and dining facilities. o Lead Agencies: Economic Development, Communications Category 1 Actions: 8.4 Work with brokers and retail site selection professionals to market Cupertino to desired tenants, such as high-end restaurants and comparison retailers,and match retailers with appropriate sites in Cupertino. Cupertino should continue communicating with brokers and site selection professionals to inform them of the types of retail that are desired by the community, and to match businesses to existing properties. o Lead Agency: Economic Development o Partners: Retail Brokers,Property Owners, Retail Businesses Final Economic Development Strategic Plan � September 13, 2016 27 Category 2 Actions: 8.5 Create a marketing campaign to increase awareness of local retailers and service providers among workers employed at Cupertino businesses.The City can develop a new campaign to inform workers in Cupertino about the range of restaurants,retailers, and personal service providers available in the city in order to encourage them to shop and dine locally and support small businesses. Examples of promotional materials could include a mobile app featuring local businesses,printed posters, and a new website. o Lead Agency: Economic Development o Partners: Major Employers, Local Retail Businesses 8.6 Seek out social media partnerships to promote shopping local.There are many examples of cities partnering with private companies such as Yelp and American Express to promote local shopping events that could be models for Cupertino (see text box examples,below). o Lead Agency: Economic Development Case Study: Yelp Shop Loca/Pledge In 2012, Yelp created a program to encourage users to shop at independent retailers in their local areas for the holiday season. Users were asked to pledge to shop locally. For participants in the South Bay/Peninsula area, Yelp sponsored several events to promote independent retailers,such as happy hours and pop up events. Case Study: American Express Shop Small and Small Business Saturday Shop Small is a program sponsored by American Express to promote small businesses. Participants in the free program can get personalized marketing materials and other assistance promoting their businesses through the platForm as well as a listing on the Shop Small Map. "Neighborhood Champions" are local business associations, chambers of commerce, or other community organizers that organize events to promote Small Business Saturday,the first Saturday after the Thanksgiving holiday. In the past, American Express has offered credits for purchases made on that day. Sources: Yelp Official Blog, 2012, https://www.yelpblog.com/2012/12/get-your-local-shop-on-with-yelp-this-holiday- season;American Express Shop Small, https://www.americanexpress.com/us/small-business/shop-small/. Final Economic Development Strategic Plan � September 13, 2016 28 STRATEGY 9 Develop policies for regulating food trucks and other mobile services, including the types of mobile services that are permitted, the locations and times when they may operate, and measures for mitigating environmental, traffic, and other impacts. Mobile services include food trucks, mobile auto care services, mobile dry cleaning, and any other goods and services offered from a vehicle. These services create an opportunity to fill existing gaps in services, stimulate economic activity, and activate underutilized spaces with events and programming. In Silicon Valley, many major corporations regularly host mobile vendors on campus in order to provide convenient services for workers. However, the increasing popularity of mobile services has also raised concerns in many communities about public safety, sanitation, traffic, and competition with existing brick-and-mortar businesses. Many California cities are revisiting their regulatory framework to ensure that mobile services can continue to provide needed goods and services without detracting from local businesses or the community's quality of life. Ongoing City Efforts: 91 Issue limited special events permits for food truck events, and require mobile service vendors to apply for a Cupertino business license in order to operate in the City. Currently, Cupertino companies or other organizations can apply for up to four special events permits per year to host food truck or other mobile services events. Food trucks are required to obtain a Cupertino business license in order to operate in the City. o Lead Agencies: Planning, Economic Development 9.2 Support the weekly Off the Grid food truck festival in the Whole Foods parking lot. Off the Grid Cupertino is held every Tuesday evening in the Whole Foods parking lot on Stevens Creek Boulevard and features a rotating assortment of food trucks. o Lead Agencies: Planning, Economic Development Category 1 Actions: 9.3 Work with Chamber of Commerce to reach out to mobile service vendors,ensure that they aware of existing local and state laws and regulations,and involve them in Chamber activities.Currently, mobile service vendors receive information about joining the Cupertino Chamber of Commerce when they apply to receive a business license. Planning and Economic Development staff could partner with Chamber staff to conduct additional,proactive outreach at Off the Grid and other mobile service events, in order to inform vendors about opportunities to participate in Chamber activities and ensure that businesses are aware of local and state laws and regulations. o Lead Agencies: Planning and Economic Development o Partners: Chamber of Commerce Category 2 Actions: 9.4 Conduct outreach to Cupertino residents and the local business community on appropriate locations and regulations for mobile services.Brick-and-mortar business owners sometimes perceive mobile vendors as having an unfair advantage because they do not pay rent or property taxes, and in Final Economic Development Strategic Plan � September 13, 2016 29 some instances may avoid paying sales tax as well.Regulating the number of food trucks that can gather in a particular site or district may help address retailers' concerns about impacts on local businesses,in addition to addressing traffic and safety issues. Economic development programs that seek to activate underutilized areas or attract more street activity (such as the Fremont Street Eats program described in the text box below) can also help brick-and-mortar retailers recognize an advantage to allowing food trucks or other mobile services to locate nearby. By conducting outreach to concerned business owners and residents, the City can help educate stakeholders about the potential impacts of food trucks, and determine what types of policies or regulations might be best suited for Cupertino. o Lead Agencies: Planning and Economic Development o Partners: Retail Businesses, Residents, Mobile Food Vendors 9.5 Develop policies to allow and manage mobile service vendors,which may include a new licensing and/or permitting process. Policies should be tailored to meet Cupertino's specific needs and conditions. For example,based on community and business feedback and further study, the City could create new licensing or permitting processes that restrict mobile vendors to specific geographic areas within the city, times of day, or special events. The text box below provides an example of the City of Mountain View's recently adopted permitting process for mobile vendors. o Lead Agencies: Planning and Economic Development o Partners: Retail Businesses, Residents, Mobile Food Vendors Final Economic Development Strategic Plan � September 13, 2016 30 Case Study: Mountain View's Permitting Process for Mobile Vendors In 2013, the City of Mountain View passed an ordinance to address concerns about traffic flow and public safety arising from the increased presence of mobile vendors in that community.The ordinance also streamlined street vendor permitting to account for mobile services operating on both public and private property, rather than on designated sites. Mountain View's rules address safety and congestion by requiring mobile vendors to maintain a minimum distance of 100 feet from schools, and by limiting vending on private property to a maximum of four hours on a particular site per day, with no more than three vendors on a property simultaneously. A separate Temporary Use permitting process was created to allow for longer hours and larger clusters of vendors at food truck rallies and other special events. In Mountain View's downtown area, vendors are prohibited from operating on the most centralized streets. This restriction is an additional safety measure that also mitigates some of the competitive concerns of brick-and- mortar stores in that area. Case Study: Fremont Street Eats Beginning in 2013, the City of Fremont began working with the Fremont Chamber of Commerce to establish a weekly food truck event in Downtown Fremont. Fremont Street Eats is now a weekly event in its third season, sponsored by the Chamber. Street Eats was intended as an economic development program intended to help activate the Downtown. Many existing businesses, including small retailers and restaurants, consider the program a successful economic development effort because it helps bring pedestrian traffic to an area that was historically underused. ��,,a'!r .�.. ;� .�. �;�' �-_- , ._ m � , i � � .` � � _ ,.�--'� �� ` �.� � . �� vti,�l�:%i�" �\�' ,A � ` � ,�` � '! 1' y��'� F 1' �� , � l �. 'I i �.�'� � `� �� ►' ` y➢ _� I � f "f• -_ t� � �... ' � �. �- ��' - � ��' f ' v �:� . I ; �� , - _ � �� .. � ,,�, Fremont Street Eats Image: Fremont Chamber of Commerce Sources: Interviews with Chris Costanzo,Code Enforcement,City of Mountain View and Jessica von Borck, Deputy City Manager, City of Fremont; Intuit Network,"Food Trucks Motor Into the Mainstream,"December 2012, http://network.intuit.com/wp-contenUuploads/2012/12/Intuit-Food-Trucks-Report.pdf;Silicon Valley Economic Development Alliance, Unpublished White Paper. Final Economic Development Strategic Plan � September 13, 2016 31 ISSUE D: HOSPITALITY STRATEGY 10 Provide adequate hotel rooms and event venues to support the City's General Fund and meet business needs. Transient occupancy taxes (TOT) generated by hotels are a significant source of revenues to the City's General Fund. Cupertinds existing hotels perform very strongly, driven by business travel associated with the expanding tech sector. Occupancy rates are very high (approaching 90 percent on weekdays), and business travelers often struggle to find rooms in or near Cupertino unless they book well ahead.In addition, because of the competition for hotel conference space,Cupertino civic organizations have struggled to fmd affordable space for meetings and events.The strong office market, along with Apple's planned expansion, suggest that demand for hotel rooms in Cupertino will remain strong for the foreseeable future. Expanding the supply of hotel rooms and event space could help support Cupertino's businesses and civic organizations, and support increased TOT revenues. In addition, enabling more business travelers to stay in Cupertino could help support local restaurants and other retailers. Category 1 Actions: 101 Monitor the need for additional hotel rooms and meeting space. Continue tracking hotel occupancy rates and conference bookings to determine whether the hotel supply is meeting demand. o Lead Agency: Planning,Economic Development Category 2 Actions: 10.2 Consider increasing allocation for new hotel development, prioritizing proposals that include ample meeting and event space for businesses and community use. As part of a public benefits agreement for a new hotel project, the City Council could require developers to set aside low-cost space for civic and community organizations to hold events and meetings. o Lead Agency: Planning Final Economic Development Strategic Plan � September 13, 2016 32 ISSUE E: MARKETING STRATEGY 11 Develop an integrated approach to marketing Cupertino to brokers, business owners, and others as a center for innovation and the heart of Silicon Valley. Cupertino is well known throughout the region — and the world — as the home of Apple, and the city is considered a highly prestigious business address second only to the North Valley cities of Palo Alto, Mountain View, and Menlo Park. The City's current website and other marketing materials are largely geared towards highlighting business resources and promoting existing retailers and other local businesses and organizations. In order to help maintain and expand the City's reputation and attract a diverse range of businesses,these materials could be repositioned to communicate more directly to the business community and market the City's unique assets,including its innovative tech sector,central location, and highly skilled workforce. Ongoing City Actions: 11.1 Continue"Cupertino Business Buzz" electronic business newsletter featuring updates on local small businesses. The Business Buzz is published on a quarterly basis and highlights business resources and events as well as city initiatives related to economic development. o Lead Agency: Economic Development 11.2 Continue to offer the GreenBiz Cupertino program, which provides support to interested smalUmid-size businesses, non-profit organizations, and schools in navigating the statewide Green Business Program certification process. The City's GreenBiz team works with businesses to create a plan for conserving energy and water, minimizing material use and disposal, preventing pollution, and cutting costs. The team also connects businesses to services, free equipment, and financial incentives to help achieve certification requirements. The program has been recognized as a leader in environmental sustainability with awards from ICLEI, the Silicon Valley Leadership Group, Green Technology, and Acterra. o Lead Agency: GreenBiz Cupertino Category 1 Actions: 11.3 Update the City's marketing materials with current economic data.The City's website and market materials require regular updating in order to provide more current information on demographics, employment by sector, and top sales tax producers. o Lead Agency: Economic Development 11.4 Update the Economic Development and business-related webpages as part of the City's overall website redesign. Economic Development can partner with the City's Communications team to upgrade business-related webpages and ensure consistency with the redesigned City website. o Lead Agencies: Economic Development, Communications Final Economic Development Strategic Plan � September 13, 2016 33 11.5 Expand the resources available on the Economic Development website by providing links to or embedding maps and information from other relevant websites. For example, this could include the Silicon Valley Economic Development Alliance's commercial real estate listing website(AREAS Silicon Valley), and the business resources available on the Santa Clara County Library District's website. o Lead Agencies: Economic Development, Communications Category 2 Actions: 11.6 Partner with other West Valley cities to develop marketing materials that market the sub- region as a center of innovation.The City may consider partnering with other West Valley cities, which share some common characteristics, to broaden the reach of its marketing efforts and establish the West Valley as a hub of innovation. This coordination could take place through the Silicon Economic Development Alliance,which is comprised city and county economic development professionals throughout San Mateo, Santa Clara, Santa Cruz, and southern Alameda Counties and of which Cupertino is an active member. o Lead Agency: Economic Development o Partners: Silicon Valley Economic Development Alliance Category 3 Actions: 11.7 Develop a brand identity focused on economic development (logo,wordmark, and colors) The City could develop a new brand identity (separate from the existing citywide identity) to support economic development initiatives.The brand identity would be intended to communicate Cupertino's assets, such as the City's strengths in the innovation industries, including arts and design. The marketing identity should be developed through a collaborative process involving focus groups, one- on-one interviews, and other outreach to the business community to help define a focused marketing approach. The City may also wish to hire a marketing and communications specialist to assist with this effort. The text box below provides examples of brand identities developed by the cities of Fremont, San Jose, and Santa Cruz. o Lead Agencies: Economic Development, Communications o Partners: Chamber of Commerce, Businesses 11.8 Redesign the Economic Development website, "Cupertino Business Buzz" electronic business newsletter, and other marketing efforts with a consistent brand. As part of establishing a consistent brand for economic development, review existing communications materials to identify potential areas for improvement, and create new materials as necessary to reflect the brand. o Lead Agencies: Economic Development, Communications o Partners: Chamber of Commerce, Businesses Final Economic Development Strategic Plan � September 13, 2016 34 Branding and Marketing Campaign in Fremont, Santa Cruz, and San Jose In 2013, Fremont commissioned a communications consulting firm to help with a media relations campaign. This effort led to the creation of a state-of-the-art website, thinksiliconvalley.com, devoted to the City's economic development communications. The website introduces and reinforces a branding message that closely associates the City with Silicon Valley, by dubbing Fremont"Silicon Valley East." Other cities looking to attract business investment, such as Santa Cruz and San Jose, have also rolled out visually appealing web presences that rely on many of the principles a typical startup venture would use. Common to all these websites are a prominent brand message (San Jose is "The Capital of Opportunity", while Santa Cruz is "Where Work & Culture Converge"), vivid imagery (particularly through photographs), and evolving content, though a blog, newsfeed, and links to social media. Fr`erriont r�eF�emo��s�ory. ��ea�E��o�me�� B,oke� �ompa�vlme. ��o��o�o��n��R B�og � � � � /` _ ; � —�ti - ��-��_ . �� ,-- ��'�-—�:� � � r--� — , � � v e � � I � r� � _� / --- ' � v�� ..� a. ` • 1 � � � 1 1"1' �� - � �,,, .�:�i r,�, k� .Yz�� I -�� : �� ;� �. �� ECONOMIC INDUSTRIES RESOURCES CULTURE PRO�ECTS �OURNAL DEVELOPMENI �� ■ � - � WHERE WORI< & CULTURE CONVERGE • � � � �L�►� � �� "� -� �� ' i � � ►^'_-r�„ �_ . , ,� . � , � , �►w .. ;�_��. � �ir� � l � � ��1 � + '� � � � � '` , ■11 �I � 1 �-•�I'_ _ �.Z� .�l . � � ,.��'�� i-.� Sources:"Hitching website wagon to tech capital puts Fremont on the map", Ragan's PR Daily;City of Fremont, http://thinksiliconvalley.com;City of San Jose,http://sjeconomy.com; City of Santa Cruz, http://choosesantacruz.com. Final Economic Development Strategic Plan � September 13, 2016 35 IV. APPENDIX: MATRIX OF STRATEGIES AND IMPLEMENTATION ACTIONS Ke Issues,Strate ies,and Menu of Potential Action Items . -. . . . -. . . -. ... . . ..- Issue A:Connectivity and Place-Making Strategy 1.Invest in public realm 1.1 Implement the land use 1.3 Support community programming 1.4 Develop an implementation plan 1.6 Allocate funds in the City's capital improvements to support the and design guidelines from the at activity centers along major for improving major corridors such as improvement program to implement development of the City's Heart of the City Specific Plan; corridors. Stevens Creek Boulevard,including landscaping,pedestrian,and other commercial/retail and mixed-use require new development to identifying phasing and specific infrastructure improvements areas as pedestrian-oriented contribute to planned funding sources for planned envisioned in the Heart of the City corridors. streetscape and infrastructure improvements. Specific Plan and other Conceptual improvements. Plans. 1.5 Pursue grants for streetscape and 1.2 Implement the land use other improvements as they become and transportation policies in available. the General Plan and Conceptual Plans to ensure that site,building,street,and streetscape design support the City's goals for community character and connectivity. Final Economic Development Strategic Plan � September 13,2016 36 . -. . . . -. . . -. ... . . ..- . ... . . . -. . . . Strategy 2.Support local and 2.1 Implement and regularly 2.5 Work with major employers to 2.6 Work with regional and county regional transportation update the Bicycle leverage corporate transportation agencies to explore new funding improvements that improve Transportation Plan,including programs(e.g.,shuttles,bike share)to sources for local and regional transit transit,pedestrian and bicycle pursuing grants as they benefit the community as a whole. improvements. connections to employment and become available. activity centers in Cupertino. 2.7 Pursue grants for high priority 2.2 Require major employers transportation projects as they to meet transportation demand become available. management goals. 2.8 Prioritize investments in bicycle, 2.3 Actively participate in pedestrian,and other transportation regional transportation improvements that connect workers planning processes and and workplaces with local retailers. advocate for decisions that meet Cupertino's needs. 2.9 As part of the approvals process for large commercial development 2.4 Work with Caltrans and the projects,design a community benefits Santa Clara Valley policy that encourages projects to Transportation Authority to provide transportation demand explore new regional transit management programs,potentially options,such as on Highway including a community shuttle. 85. Final Economic Development Strategic Plan � September 13,2016 37 . -. . . . -. . . -. ... . . ..- Issue B:Support Growth of Small and Midsize Businesses Strategy 3.Facilitate the 3.1 Encourage office 3.2 Increase allocation for office •Allowing for the conversion of development of new office and developers to reserve space for development for mid-size businesses underutilized ground floor retail industrial/flex space for small and small offices. in the 20,000-100,000 sq.ft.range. space to office space may require a midsize companies to expand in zoning change in some locations, Cupertino. 3.3 Create a new development such as in the Heart of the City allocation category for innovation Specific Plan area. space. 3.4 Consider establishing a new "Innovation DistricP'in the Bubb Road and/or Bandley Drive/Valley Green Drive areas. 3.5 Review and update land uses in the zoning designations related to Office and Industrial uses to adapt to current and future business needs. 3.6 Allow for the conversion of underutilized ground floor retail space to office space. 3.7 Conduct parking study to review parking ratios for retail/commercial/ office uses. Final Economic Development Strategic Plan � September 13,2016 38 . -. . . . -. . . -. ... . . ..- . ... . . . -. . . . Strategy 4.Support development 4.1 Allow for the conversion of 4.2 Seek out partnerships for •Note that the conversion of retail of business incubator, underutilized ground floor retail space developing a new small business space for other,higher-intensity uses accelerator,coworking,shared, to incubator or coworking uses. incubator or accelerator,and may require property owners to make and"on-demand"workplaces consider contributing City funds if investments to serve such needed. businesses.See Strategy 7 for discussion of property owner incentives. Strategy 5.Continue and 5.1 Conduct outreach to 5.4 Provide assistance to new and 5.8 Conduct regular outreach to strengthen visitation and existing businesses,including expanding businesses with obtaining growing small and midsize outreach programs for small and regularly visiting local needed permits and licenses from the businesses to determine what midsize businesses(fewer than businesses to discuss City and other agencies. services would help them expand in 250 employees). programs,events,and/or Cupertino,including individual visits, incentives that may be of 5.5 Identify growing,small and midsize roundtables or focus groups,and interest. companies that are at risk of moving citywide events. out of Cupertino as they expand,and 5.2 Distribute and regularly focus existing business retention update"How to Start Your efforts on these companies. Business in Cupertind'booklet. 5.6 Work with local brokers to match 5.3 Continue to host the annual growing companies to space in Small Business Symposium. Cupertino. 5.7 Conduct an online survey of existing businesses to determine key advantages and disadvantages of doing business in Cupertino. Final Economic Development Strategic Plan� September 13,2016 39 . -. . . . -. . . -. ... . . ..- . ... . . . -. . . . Strategy 6.Develop a cohesive 6.1 Meet regularly with local 6.3 Explore additional opportunities to 6.4 Partner with technology programs 6.6 Contract with business business support network and regional business connect small businesses with existing at De Anza College and at middle assistance providers to provide offering technical assistance and organizations and technical micro-credit providers or other small and high schools to connect students targeted services to Cupertino access to financing,with a focus assistance providers to build business lenders. to Cupertino businesses.Students businesses,or hire staff and provide on enabling growing businesses partnerships. could offer technical support in services in-house. to stay in Cupertino. building websites and applications, 6.2 Continue to hold quarterly participating in hackathons,and other 6.7 Provide seed capital to start a meetings with Economic activities. revolving loan fund to provide small Development Committee. loans for small and midsize 6.5 Establish the City of Cupertino as businesses in Cupertino for business a Kiva Zip trustee to find and endorse expansion and other business needs. local businesses seeking to borrow money on the Kiva Zip website. (Trustees have no financial liability for loans and do not handle the loans, but their reputation is tied to the repayment rate of the borrowers they endorse.) Final Economic Development Strategic Plan � September 13,2016 40 . -. . . . -. . . -. ... . . ..- Issue C:Retail Support and Development Strategy 7.Work with retail 7.1 Provide incentives in key 7.4 Provide grants or loans to retail property owners and tenants to locations for upgrading or intensifying property owners and/or tenants to revitalize and upgrade aging retail and/or replacing retail with encourage them to upgrade their shopping centers on Stevens mixed-use development. fa�ades. Creek Boulevard. 7.2 Develop design standards for retail space in mixed-use developments to ensure that new retail space contributes to the desired look and feel of the community,and functions well for retailers. 7.3 Conduct outreach to Stevens Creek property and business owners to explore the potentialto form a BID or PBID on all or part of the Stevens Creek corridor,to fund marketing, landscaping,maintenance,and/or otherlocalneeds. Strategy 8.Support emerging 8.1 Meet regularly with retail 8.4 Work with brokers and retail site 8.5 Create a marketing campaign to restaurant,entertainment,and and commercial brokers to selection professionals to market increase awareness of local retailers shopping clusters that serve as answer questions,build Cupertino to desired tenants,such as and service providers among workers destinations for workers, relationships,and get updates high-end restaurants and comparison employed at Cupertino businesses. residents,and visitors. on projects retailers,and match retailers with appropriate sites in Cupertino. 8.6 Seek out social media 8.2 Represent the City at ICSC partnerships to promote shopping and other local and regional local. conferences. 8.3 Maintain"Eats 95014" app/website and"Cupertino at a Glance"website Final Economic Development Strategic Plan � September 13,2016 41 . -. . . . -. . . -. ... . . ..- . ... . . . -. . . . Strategy 9.Develop policies for 9.1 Issue limited special events 9.3 Work with Chamber of Commerce 9.4 Conduct outreach to Cupertino regulating food trucks and other permits for food truck events, to reach out to mobile service vendors, residents and the local business mobile services,including the and require mobile service ensure that they aware of existing community on appropriate locations types of mobile services that are vendors to apply for a local and state laws and regulations, and regulations for mobile services. permitted,the locations and Cupertino business license in and involve them in Chamber times when they may operate, order to operate in the City. activities. 9.5 Develop policies to allow and and measures for mitigating manage mobile service vendors, environmental,traffic,and other 9.2 Support the weekly Off the which may include a new licensing impacts. Grid food truck festival in the and/or permitting process. Whole Foods parking lot. Issue D:Hospitality Strategy 10.Provide adequate 10.1 Monitor the need for additional 10.2 Consider increasing allocation hotel rooms and event venues to hotel rooms and meeting space. for new hotel development, support the City's General Fund prioritizing proposals that include and meet business needs. ample meeting and event space for businesses and community use. Final Economic Development Strategic Plan � September 13,2016 42 . -. . . . -. . . -. ... . . ..- Issue E:Marketing Strategy 11.Develop an 11.1 Continue"Cupertino 11.3 Update the City's marketing 11.6 Partner with other West Valley 11.7 Develop a brand identity integrated approach to marketing Business Buzz"electronic materials with current economic data. cities to develop a common message focused on economic development Cupertino to brokers,business business newsletter featuring and coordinate marketing efforts. (logo,wordmark,and colors). owners,and others as a center updates on local small 11.4 Update the Economic for innovation and the heart of businesses Development and business-related 11.8 Redesign the Economic Silicon Valley. webpages as part of the City's overall Development website,"Cupertino 11.2 Continue to offer the website redesign. Business Buzz"electronic business GreenBiz Cupertino program, newsletter,and other marketing which provides support to 11.5 Expand the resources available efforts with a consistent brand. interested small/mid-size on the Economic Development businesses,non-profit website by providing links to or organizations and schools in embedding maps and information from navigating the statewide Green other relevant websites. Business Program certification process Final Economic Development Strategic Plan � September 13,2016 43