CC Exhibit 06-05-2018 Item No. 4 Business Tax - Written Communicationv,?
CUPERTINO
CHAMBER OF COMMERCE
20455 Silverado Avenue
Cupertino, CA 95014
Tel (408) 252-7054
www.cupertino-chamber.org
Anjali Kausar
Chief Executive Officer
2018 BOARD OF DIRECTORS
BOARD OFFICERS
Andrew Walters, President
San Jose Water Company
Keith Warner, Immediate Past President &
VP Finance
Pacific Worl<places
Richard Abdalah, VP Membership
Abdalah Law Offices
Sandy James, VP HR & Staffing
Sand Hill Properties
Kevin McClelland , VP LAC
Leeward Financial & Insurance Services Inc.
Mike Rohde, VP Special Events
Main Street Cupertino
BOARD MEMBERS
Donna Austin
Cupertino Historical Society
Claudio Bono
Cupertino Hotel
Jessy Borges
Pacific Gas & Electric Company
Catherine Chen
State Farm Insurance
Art Cohen
Rod Dlrtdon, Jr.
Apple Inc .
Elizabeth Marchu
Technology Credit Union
Hanh Nguyen
Kaiser Permanente
Mark Terslni
KT Properties Urban, Inc.
Vivian Wong
Boston Private
John Zlrelll
Recology
June 05, 2018
Mayor Darcy Paul and Cupertino City Councilmembers
10300 Torre A venue
Cupertino, CA 95015
Subject: Concerns about new Business Tax
Dear Mayor and Councilmembers,
We would like to encourage you to include the business community in your outreach
efforts regarding identifying and funding transportation solutions. By definition, any
viable solution is predicated on the continued economic success of the area .
Tax measures generally take time to model, test, revise and require significant
outreach to the business community to understand the complexities and ramifications.
We are advocating for improved transportation to Cupertino, Sunnyvale, Mountain
View, and San Jose. We recognize that this needs to be a regional solution with costs
allocated to each community. It is important to determine the ask before asking for
money that will likely not be sufficient to accomplish our goals. This business tax
alone is not enough and it may not be the right source of funding.
It is essential to understand the unintended consequences of any tax on our diverse
and dynamic business community. Any poorly designed or ineffectively implemented
employer tax can cause employers to decide to grow or relocate to more affordable
cities. Companies can and do relocate as demonstrated by Silicon Graphics Inc , (SGI),
Sun Microsystems , and Adobe.
It is our position that any tax to address a proposed problem, must be linked to a
proposed solution. A general revenue tax justified as part of a solution for traffic
without linkage to a specific solution or group of projects is premature and would
negatively harm our employment base. We propose considering redevelopment near
transportation centers which at today's valuations would generate millions of dollars
per year in secure and reliable property tax revenues the council is seeking.
More can and should be done to address current traffic in and around Cupertino. We
propose that multiple alternatives be developed with pros and cons for each to allow
the entire community, along with businesses to help craft solutions that are a win-win,
including all options, such as a public private partnership or a special tax. We would
like to offer working together on a statistically valid survey to ask Cupertino residents
their views on transportation and sources of funding.
We are committed to working with the city and our businesses to empower, support,
and protect our vibrant community.
Sincerely,
Andrew Walters
2018 President
BERG & BERG DEVELOPERS, INC.
10050 Bandley Drive
Cupertino, CA 95014-2188
Ph (408) 725-0700 Fax (408)-703-2035
mcrawford@bergvc.com
5/31/18
Mayor & Council Members
City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014
Ph 408-777-3308 3251 Fax 408-777-3333
svaidhyanathan@cupertino.org; rsinks@cupertino.org; bchang@cupertino.org; dpaul@cupertino.org;
sscharf@cupertino.org
cityclerk@cupertino.org
Dear Mayor & Council Members,
Reference: CC Meeting 6-5-18
Item # 4 Business and Storm Sewer Tax Just Say No
Subject: Objection & Comments
Business Employee Tax Increase
1) Here you go again, you want to increase business tax just because Mountain
View did.
2) Remember the last time you enacted a developers auction for the right to
develop just because Mountain View got away with it, you got 3 or 4 ballot
measures instead of GPA applications requiring you to spend $90,000 +- on
9212 reports at the expense of tax payers for projects that went no where.
3) You have offered no justifications for increasing the business tax other than
another city is doing it.
4) You have offered no efforts to look at cost cutting in lieu of raising taxes.
a. In September you just pasted a TIF fee and now you want $10 million for
traffic again.
Transportation Impact Fee
- Single Family $5,968/Unit
- Multi-Family $3,700/Unit
Includes apartments, condos and townhomes
$9.60/sqft.
$16.81/sqft
$3,272/room
- Retail
- Office
- Hotel
- Other (per PM trip) $6,025/trip
b. You have run away and non-sustainable municipal pension liabilities,
where is the discussion and investigation into reducing the pension
liability??
c. You should be doing a study session on reducing cost not slapping the
taxpayers with another tax which you justify with a poll of citizens that
will never have to pay these taxes directly. You have an implied duty to
reduce public costs not just increase them.
Storm Sewer Tax Just Say No
1) Stormwater Management Program also includes an optional 3rd grade creek
field trip for Cupertino Union School District students as well as educational
programs at McClellan Ranch. The fee currently funds about one-half of
program costs and is subsidized by the General Fund. You already have ample
storm water requirements on developers do you really need a “feel good
program for 3rd graders, you should look at eliminating this program and
cutting other costs
2) You have run away and non-sustainable municipal pension liabilities, where is
the discussion and investigation into reducing the pension liability??
3) You should be doing a study session on reducing cost not slapping the
taxpayers with another tax which you justify with a poll of citizens that will never
have to pay these taxes directly. You have an implied duty to reduce public costs
not just increase them.
Thank you for your consideration,
Myron Crawford
Cc:
Timm Borden
Director of Public Works
City of Cupertino
10300 Toree Avenue
Cupertino, CA 95014
Tel: 408-777-3200; Dir: 408-777-3382; Fax: 408-777-3333
Email: timmb@cupertino.org