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Second Amended 12-18-2018 Searchable packetCITY OF CUPERTINO AGENDA CITY COUNCIL 5:00 PM 10300 Torre Avenue and 10350 Torre Avenue Tuesday, December 18, 2018 Second Amended Non-televised Special Meeting Closed Session (5:00) and Televised Regular Meeting (6:45) Amended on 12/17/18 at 4:00 PM to remove Special Meeting Item Nos. 2 and 3 and add Special Meeting Item No. 1A Amended on 12/11/18 at 7:45 p.m. to reorder Item Nos. 9 & 10 NOTICE AND CALL FOR A SPECIAL MEETING OF THE CUPERTINO CITY COUNCIL NOTICE IS HEREBY GIVEN that a special meeting of the Cupertino City Council is hereby called for Tuesday, December 18, 2018, commencing at 5:00 p.m. in City Hall Conference Room A, 10300 Torre Avenue, Cupertino, California 95014. Said special meeting shall be for the purpose of conducting business on the subject matters listed below under the heading, “Special Meeting." The regular meeting items will be heard at 6:45 p.m. in Community Hall Council Chamber, 10350 Torre Avenue, Cupertino, California. SPECIAL MEETING CLOSED SESSION - 5:00 PM City Hall Conference Room A, 10300 Torre Avenue ROLL CALL 1.Subject: Conference with Real Property Negotiator (Gov't Code 54956.8); Property: 10800 Torre Avenue, Agency Negotiator: Timm Borden (Coffee Society); Under Negotiation: Lease Extension 1A.Subject: Public Employee Appointment: Title: Interim City Manager (California Gov. Code Sections 54957, 54957(b)) ADJOURNMENT Page 1 1 December 18, 2018City Council AGENDA REGULAR MEETING PLEDGE OF ALLEGIANCE - 6:45 PM Community Hall Council Chamber, 10350 Torre Avenue ROLL CALL CEREMONIAL MATTERS AND PRESENTATIONS 1.Subject: Proclamations to the Santa Clara County Fire Department and the American Red Cross for their response efforts to the Camp Fire Recommended Action: Present Proclamations to the Santa Clara County Fire Department and the American Red Cross for their response efforts to the Camp Fire 2.Subject: Presentation on vigilance against package theft and raising awareness for prevention Recommended Action: Receive presentation on vigilance against package theft and raising awareness for prevention POSTPONEMENTS ORAL COMMUNICATIONS This portion of the meeting is reserved for persons wishing to address the council on any matter not on the agenda. Speakers are limited to three (3) minutes. In most cases, State law will prohibit the council from making any decisions with respect to a matter not listed on the agenda. CONSENT CALENDAR Unless there are separate discussions and/or actions requested by council, staff or a member of the public, it is requested that items under the Consent Calendar be acted on simultaneously. 3.Subject: Approve the December 4 City Council minutes Recommended Action: Approve the December 4 City Council minutes A - Draft Minutes 4.Subject: Approve the December 6 City Council minutes Recommended Action: Approve the December 6 City Council minutes A - Draft Minutes Page 2 2 December 18, 2018City Council AGENDA 5.Subject: Cancel the Wednesday, January 2, 2019 regular City Council meeting (moved from Tuesday, January 1 due to holiday as per CMC 2.04.010). Recommended Action: Cancel the Wednesday, January 2, 2019 regular City Council meeting (moved from Tuesday, January 1 due to holiday as per CMC 2.04.010). Staff Report 6.Subject: Resolution in support of the Fourth U.S. National Climate Assessment Recommended Action: Adopt Resolution No. 18-118 supporting the Fourth U.S. National Climate Assessment Staff Report A- Draft Resolution of Support National Climate Assessment SECOND READING OF ORDINANCES PUBLIC HEARINGS ORDINANCES AND ACTION ITEMS Page 3 3 December 18, 2018City Council AGENDA 7.Subject: Receive the City Clerk’s Certification of Sufficiency for referenda petitions against the following resolutions and ordinances, and direct staff to bring back options at the next regular meeting for Council to take as required by California Elections Code Section 9241. (Those actions include (1) repealing any or all of the resolutions or ordinances against which the petition is filed; and (2) submitting any or all of the resolutions or ordinances to the voters, either at the next regular municipal election or at a special election called for the purpose): Resolution No. 18-085: A Resolution of the City Council of the City Of Cupertino Approving a General Plan Amendment to Development Allocations, the General Plan Land Use Map and Development Standards Related to the Vallco Town Center Special Area Resolution No. 18-086: A Resolution of the City Council of the City of Cupertino Adopting the Vallco Town Center Specific Plan Ordinance No. 18-2178: An Ordinance of the City Council of the City of Cupertino Rezoning the Parcels within the Vallco Special Area Ordinance No. 18-2179: Ordinance of the City Council of the City of Cupertino Approving a Development Agreement by and Between the City of Cupertino and Vallco Property Owner LLC for the Development of Vallco Town Center Recommended Action: Receive the City Clerk’s Certification of Sufficiency for referenda petitions against Resolution Nos. 18-085 and 18-086, and Ordinance Nos. 18-2178 and 18-2179, and direct staff to bring back options at the next regular meeting for Council to take as required by California Elections Code Section 9241. (Those actions include (1) repealing any or all of the resolutions or ordinances against which the petition is filed; and (2) submitting any or all of the resolutions or ordinances to the voters, either at the next regular municipal election or at a special election called for the purpose). Staff Report A – Validation Letters from the Registrar of Voters Office Page 4 4 December 18, 2018City Council AGENDA 8.Subject: Schedule a study session to review, clarify, and discuss the Code of Ethics and Conduct for Elected and Appointed Officials adopted by Council on November 20, 2018 Recommended Action: Schedule a study session at the January 15, 2019 City Council meeting to review, clarify, and discuss the Code of Ethics and Conduct for Elected and Appointed Officials adopted by Council on November 20, 2018. Staff Report A - Cupertino Commissions and Committees REPORTS BY COUNCIL AND STAFF 9.Subject: Report on the 2018 Pilot Neighborhood Events Program and Discussion of Future Neighborhood Events Programs. Recommended Action: Accept report on the 2018 pilot neighborhood events program and provide staff direction on offering an ongoing neighborhood events program in the future. Staff Report A - City Countil Staff Report March 6, 2018 B - Neighborhood Events Brochure.pdf 10.Subject: Report on Committee assignments and general comments Recommended Action: Report on Committee assignments and general comments ADJOURNMENT 11.Subject: Adjourn in memory of former Cupertino Mayor Bob Meyers Recommended Action: Adjourn in memory of former Cupertino Mayor Bob Meyers Page 5 5 December 18, 2018City Council AGENDA The City of Cupertino has adopted the provisions of Code of Civil Procedure §1094.6; litigation challenging a final decision of the City Council must be brought within 90 days after a decision is announced unless a shorter time is required by State or Federal law. Prior to seeking judicial review of any adjudicatory (quasi-judicial) decision, interested persons must file a petition for reconsideration within ten calendar days of the date the City Clerk mails notice of the City’s decision. Reconsideration petitions must comply with the requirements of Cupertino Municipal Code §2.08.096. Contact the City Clerk’s office for more information or go to http://www.cupertino.org/index.aspx? page=125 for a reconsideration petition form. In compliance with the Americans with Disabilities Act (ADA), anyone who is planning to attend the next City Council meeting who is visually or hearing impaired or has any disability that needs special assistance should call the City Clerk's Office at 408-777-3223, 48 hours in advance of the Council meeting to arrange for assistance. Upon request, in advance, by a person with a disability, City Council meeting agendas and writings distributed for the meeting that are public records will be made available in the appropriate alternative format. Also upon request, in advance, an assistive listening device can be made available for use during the meeting. Any writings or documents provided to a majority of the Cupertino City Council after publication of the packet will be made available for public inspection in the City Clerk’s Office located at City Hall, 10300 Torre Avenue, during normal business hours and in Council packet archives linked from the agenda/minutes page on the Cupertino web site. IMPORTANT NOTICE: Please be advised that pursuant to Cupertino Municipal Code 2.08.100 written communications sent to the Cupertino City Council, Commissioners or City staff concerning a matter on the agenda are included as supplemental material to the agendized item. These written communications are accessible to the public through the City’s website and kept in packet archives. You are hereby admonished not to include any personal or private information in written communications to the City that you do not wish to make public; doing so shall constitute a waiver of any privacy rights you may have on the information provided to the City. Members of the public are entitled to address the City Council concerning any item that is described in the notice or agenda for this meeting, before or during Page 6 6 December 18, 2018City Council AGENDA consideration of that item. If you wish to address the Council on any issue that is on this agenda, please complete a speaker request card located in front of the Council, and deliver it to the Clerk prior to discussion of the item. When you are called, proceed to the podium and the Mayor will recognize you. If you wish to address the City Council on any other item not on the agenda, you may do so by during the public comment portion of the meeting following the same procedure described above. Please limit your comments to three (3) minutes or less. Page 7 7 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:118-4649 Name: Status:Type:Closed Session Agenda Ready File created:In control:11/27/2018 City Council On agenda:Final action:12/18/2018 Title:Subject: Conference with Real Property Negotiator (Gov't Code 54956.8); Property: 10800 Torre Avenue, Agency Negotiator: Timm Borden (Coffee Society); Under Negotiation: Lease Extension Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. Subject: Conference with Real Property Negotiator (Gov't Code 54956.8); Property: 10800 Torre Avenue, Agency Negotiator: Timm Borden (Coffee Society); Under Negotiation: Lease Extension CITY OF CUPERTINO Printed on 12/17/2018Page 1 of 1 powered by Legistar™8 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:118-4759 Name: Status:Type:Closed Session Agenda Ready File created:In control:12/17/2018 City Council On agenda:Final action:12/18/2018 Title:Subject: Public Employee Appointment: Title: Interim City Manager (California Gov. Code Sections 54957, 54957(b)) Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. Subject: Public Employee Appointment: Title: Interim City Manager (California Gov. Code Sections 54957, 54957(b)) CITY OF CUPERTINO Printed on 12/17/2018Page 1 of 1 powered by Legistar™9 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:118-4735 Name: Status:Type:Ceremonial Matters & Presentations Agenda Ready File created:In control:12/11/2018 City Council On agenda:Final action:12/18/2018 Title:Subject: Proclamations to the Santa Clara County Fire Department and the American Red Cross for their response efforts to the Camp Fire Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. City Council12/18/2018 1 Subject: Proclamations to the Santa Clara County Fire Department and the American Red Cross for their response efforts to the Camp Fire Present Proclamations to the Santa Clara County Fire Department and the American Red Cross for their response efforts to the Camp Fire CITY OF CUPERTINO Printed on 12/17/2018Page 1 of 1 powered by Legistar™10 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:118-4736 Name: Status:Type:Ceremonial Matters & Presentations Agenda Ready File created:In control:12/11/2018 City Council On agenda:Final action:12/18/2018 Title:Subject: Presentation on vigilance against package theft and raising awareness for prevention Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. City Council12/18/2018 1 Subject: Presentation on vigilance against package theft and raising awareness for prevention Receive presentation on vigilance against package theft and raising awareness for prevention CITY OF CUPERTINO Printed on 12/17/2018Page 1 of 1 powered by Legistar™11 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:117-3295 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:11/13/2017 City Council On agenda:Final action:12/18/2018 Title:Subject: Approve the December 4 City Council minutes Sponsors: Indexes: Code sections: Attachments:A - Draft Minutes Action ByDate Action ResultVer. City Council12/18/2018 1 Subject: Approve the December 4 City Council minutes Approve the December 4 City Council minutes CITY OF CUPERTINO Printed on 12/17/2018Page 1 of 1 powered by Legistar™12 1 DRAFT MINUTES CUPERTINO CITY COUNCIL Tuesday, December 4, 2018 REGULAR CITY COUNCIL MEETING PLEDGE OF ALLEGIANCE At 6:46 p.m. Mayor Darcy Paul called the Regular City Council meeting to order in the Cupertino Community Hall Council Chambers, 10350 Torre Avenue and led the Pledge of Allegiance. ROLL CALL Present: Mayor Darcy Paul, Vice Mayor Rod Sinks, and Councilmembers Barry Chang, Steven Scharf, and Savita Vaidhyanathan. Absent: None. In open session, Mayor Paul reported out on a closed session meeting that was held on November 29: Subject: Conference with Legal Counsel- Anticipated Litigation: Significant exposure to litigation: One Potential Case (Paragraph (2) of subdivision (d) of California Gov. Code, sec. 54956.9) Mayor Paul reported out that direction was given and no final action was taken. CEREMONIAL MATTERS AND PRESENTATIONS 1. Subject: Receive Healthy Cities Program award from the Santa Clara County Public Health Department recognizing the City of Cupertino for its work to support healthy commutes and encourage the use of active forms of transportation. Recommended Action: Receive Healthy Cities Program award from the Santa Clara County Public Health Department recognizing the City of Cupertino for its work to support healthy commutes and encourage the use of active forms of transportation. Health Officer and Public Health Department Director Dr. Sara Cody, MD spoke. 13 City Council Minutes December 4, 2018 2 Council received the Healthy Cities Program award from the Santa Clara County Public Health Department recognizing the City of Cupertino for its work to support healthy commutes and encourage the use of active forms of transportation. 2. Subject: Proclamation to Dynasty Restaurant in Cupertino to recognize the dining establishment’s work in Cupertino, from its opening in March 2004 to its being closed in December 2018, as a valued community gathering space welcoming large groups and patrons from all areas and spectrums of our demographics Recommended Action: Present proclamation to Dynasty Restaurant in Cupertino to recognize the dining establishment’s work in Cupertino, from its opening in March 2004 to its being closed in December 2018, as a valued community gathering space welcoming large groups and patrons from all areas and spectrums of our demographics Dynasty Restaurant owner Aaron Wong spoke. Mayor Paul presented the proclamation to Dynasty Restaurant in Cupertino to recognize the dining establishment’s work in Cupertino, from its opening in March 2004 to its being closed in December 2018, as a valued community gathering space welcoming large groups and patrons from all areas and spectrums of our demographics. 3. Subject: Presentation of Certificates of Recognition for Cupertino Science Fair winners who participated in the Synopsys Championship Recommended Action: Certificates of Recognition for Cupertino Science Fair winners who participated in the Synopsys Championship Synopsys Championship Board member Veena Jain spoke. Mayor Paul presented the Certificates of Recognition to the Cupertino Science Fair winners who participated in the Synopsys Championship. POSTPONEMENTS – None ORAL COMMUNICATIONS Bobby Truong and Roberta Ryan (Cupertino residents) talked about proposed regulations for short term rentals (STR). Edward Hirshfield (Cupertino resident) talked about regular order and the Vice Mayor becoming Mayor. 14 City Council Minutes December 4, 2018 3 Jennifer Griffin talked about the Shell gas station on Stern Avenue and adjacent AC hotel by Marriott. Janet Van Zoeren (Cupertino resident) talked about conduct during the election and the rules of order regarding the selection of Mayor. Larry Dean (Cupertino resident), on behalf of Walk Bike Cupertino, talked about bicycle and pedestrian funding and support and current City projects. Tessa Parish talked about the Vice Mayor and the election of Mayor, and Vallco. Thorsten Von Stein talked about the Vice Mayor and the election of Mayor. Hung Wei (Cupertino resident) talked about the Vice Mayor and the election of Mayor. Seema Lindskog (Cupertino resident) talked about the Regnart Creek Trail and potential usage. Pam Hershey (Cupertino resident) talked about the Vice Mayor and the election of Mayor. Gary Wong (Cupertino resident), on behalf of Campo De Lazano HOA, talked about the Regnart Creek Trail and Juniper Serra Trail Feasibility Studies. Muni Madhipahtla (Cupertino resident) talked about respecting voters’ wishes, Council’s code of ethics, and the election of Mayor. Vinod Vaiakrishnan (Cupertino resident) talked about conduct in front of the library during referendum signing, the Vice Mayor, and the election of Mayor. Balaji Chalam (Cupertino resident) talked about behavior during the referendum process, the Vice Mayor, and the election of Mayor. Govind talked about respecting voters’ wishes and proposed zoning changes in the City. Aeron Lauv (Cupertino resident) talked about making adjustments and amending Council divisiveness, and the election of Mayor. Gilbert Wong (Cupertino resident) talked about the Vice Mayor and Mayor election process. CONSENT CALENDAR 15 City Council Minutes December 4, 2018 4 Sinks moved and Chang seconded to approve the items on the Consent Calendar as presented. Ayes: Paul, Sinks, Chang, Scharf, and Vaidhyanathan. Noes: None. Abstain: None. Absent: None 4. Subject: Approve the November 20 City Council minutes Recommended Action: Approve the November 20 City Council minutes 5. Subject: Resignation of Planning Commissioner Jerry Liu and consolidation of unscheduled vacancy recruitment with the annual recruitment of all commission and committee members’ terms expiring January 30, 2019 Recommended Action: Accept resignation of Planning Commissioner Jerry Liu and direct staff to fill the unscheduled (partial) vacancy with the annual recruitment of all commission and committee members’ terms expiring January 30, 2019 6. Subject: Approval of Contract Change Order No. 1 for the McClellan Road Separated Bikeway Phase 1A Project (No. 2017-01.04) Recommended Action: 1. Approve Contract Change Order No. 1 for the McClellan Road Separated Bikeway Phase 1A Project in the amount of One Hundred Twenty Thousand Dollars ($120,000); and 2. Authorize an increase in the construction contingency from $182,000 to $302,000. The additional $120,000 in the construction contingency will fund Contract Change Order No. 1, which will allow for the project start date to be postponed to May 2019. SECOND READING OF ORDINANCES 7. Subject: Second Reading of Ordinances Regarding City Commissions and Recommendations for Improving Effectiveness and Communications with the City Council Recommended Action: 1. Conduct the second reading and enact Ordinance No. 18- 2180: “An Ordinance of the Cupertino City Council Amending the Cupertino Municipal Code, Title 2, to Update, Clarify, and Improve Consistency in Various Provisions Pertaining to City Commissions.” The first reading was conducted on November 20 and there were no substantive changes to the ordinance requested by Council. 2. Conduct the second reading and enact Ordinance No. 18-2181: “An Ordinance of the Cupertino City Council Adding Chapter 2.95 to the Cupertino Municipal Code, Title 2, to Establish the Teen Commission by Ordinance.” The first reading was conducted on November 20 and there were no changes to the ordinance. 3. Conduct the second reading and enact Ordinance No. 18-2182: “An Ordinance of the Cupertino City Council Repealing Ordinance No. 006 and Amending Chapter 2.08 16 City Council Minutes December 4, 2018 5 of the Cupertino Municipal Code Regarding Adoption of Robert’s Rules of Order.” The first reading was conducted on November 20 and there were no changes to the ordinance. Written Communications for this item included an amended Attachment D of Draft Ordinance No. 18-2182. Senior Management Analyst Katy Nomura reviewed the staff report. Mayor Paul opened public comment and the following individuals spoke on this item: Jennifer Griffin Jennifer Shearin Mayor Paul closed public comment. Staff answered questions from Council. Deputy City Clerk Kirsten Squarcia read the title of Ordinance No. 18 -2180: “An Ordinance of the Cupertino City Council Amending the Cupertino Municipal Code, Title 2, to Update, Clarify, and Improve Consistency in Various Provisions Pertaining to City Commissions” and the title of Ordinance No. 18-2181: “An Ordinance of the Cupertino City Council Adding Chapter 2.95 to the Cupertino Municipal Code, Title 2, to Establish the Teen Commission by Ordinance.” Chang moved and Vaidhyanathan seconded to read Ordinance No. 18-2180 by title only and Ordinance No. 18-2181 by title only and that the City Clerk’s reading would constitute the second readings thereof. Ayes: Sinks, Chang, Vaidhyanathan. Noes: Paul, Scharf. Abstain: None. Absent: None. Chang moved and Vaidhyanathan seconded to enact Ordinance No. 18-2180 and Ordinance No. 18-2181. Ayes: Sinks, Chang, Vaidhyanathan. Noes: Paul, Scharf. Abstain: None. Absent: None. Council concurred to postpone conducting the second reading and enactment of Ordinance No. 18-2182: “An Ordinance of the Cupertino City Council Repealing Ordinance No. 006 and Amending Chapter 2.08 of the Cupertino Municipal Code Regarding Adoption of Robert’s Rules of Order” since the Draft Ordinance Attachment D was not the same as in the first reading, and staff will come back with the original version. 17 City Council Minutes December 4, 2018 6 PUBLIC HEARINGS 8. Subject: Vacate an Easement for Storm Drain Retention Basin Purposes located on 23500 Cristo Rey Drive Recommended Action: Conduct a public hearing and adopt Resolution No. 18-116 to vacate an easement for storm drain retention basin purposes located on 23500 Cristo Rey Drive Written communications for this item included a staff map exhibit. Director of Public Works Timm Borden reviewed the staff report. Mayor Paul opened the public hearing and, seeing there were no speakers, closed the public hearing. Staff answered questions from Council. Chang moved and Vaidhyanathan seconded to adopt Resolution No. 18-116 to vacate an easement for storm drain retention basin purposes located on 23500 Cristo Rey Drive. The motion carried unanimously. ORDINANCES AND ACTION ITEMS - None REPORTS BY COUNCIL AND STAFF 9. Subject: Report on Committee assignments and general comments Recommended Action: Report on Committee assignments and general comments Councilmembers highlighted the activities of their committees and various community events. ADJOURNMENT At 8:43 p.m., Mayor Paul adjourned the meeting. _________________________________ Kirsten Squarcia, Deputy City Clerk 18 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:118-4538 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:10/31/2018 City Council On agenda:Final action:12/18/2018 Title:Subject: Approve the December 6 City Council minutes Sponsors: Indexes: Code sections: Attachments:A - Draft Minutes Action ByDate Action ResultVer. City Council12/18/2018 1 Subject: Approve the December 6 City Council minutes Approve the December 6 City Council minutes CITY OF CUPERTINO Printed on 12/17/2018Page 1 of 1 powered by Legistar™19 DRAFT MINUTES CUPERTINO CITY COUNCIL Thursday, December 6, 2018 SPECIAL CITY COUNCIL MEETING PLEDGE OF ALLEGIANCE At 7:00 p.m. Mayor Darcy Paul called the Special City Council meeting to order in the Cupertino Community Hall Council Chambers, 10350 Torre Avenue and led the Pledge of Allegiance. ROLL CALL Present: Mayor Darcy Paul, Vice Mayor Rod Sinks, and Councilmembers Barry Chang, Steven Scharf, and Savita Vaidhyanathan. Absent: None. POSTPONEMENTS - None ORAL COMMUNICATIONS Sgt. Mike McNutt (Cupertino resident) talked about safety concerns regarding a proposed bicycle lane on McClellan Rd. Geoff Paulsen (Cupertino resident) talked about trees and transportation in the City. ELECTION RESULTS 1. Subject: Statement of results of the General Municipal Election held on November 6, 2018 and declaration of candidates who received the most votes and were elected for the position of City Councilmember. Note: The Registrar of Voters of the County of Santa Clara will not be able to certify the final election results until December 6 and after the date of this agenda publication; the final Draft Resolution showing the total number of votes cast in the City and total number of votes candidates received, and Certificate of Election Results will be distributed on the dais and available to the public at the meeting on December 6. Recommended Action: Adopt Resolution No. 18-117 stating the election results of the General Municipal Election held on November 6, 2018 and declaring the candidates who received the most votes and were elected for the position of City Councilmember. Note: 20 City Council Minutes December 6, 2018 The Registrar of Voters of the County of Santa Clara will not be able to certify the final election results until December 6 and after the date of this agenda publication; the final Draft Resolution showing the total number of votes cast in the City and total number of votes candidates received, and Certificate of Election Results will be distributed on the dais and available to the public at the meeting on December 6. Written communications for this item included an updated resolution and the Certificate of Election Results from the Santa Clara County Registrar of Voters. City Clerk Grace Schmidt noted the election results for the General Municipal Election held on November 6, 2018. Sinks moved and Chang seconded to adopt Resolution No. 18-117 stating the election results of the General Municipal Election held on November 6, 2018 and declaring the candidates who received the most votes and were elected for the position of City Councilmember. The motion carried unanimously. RECOGNITION OF OUTGOING COUNCILMEMBER 2. Subject: Recognition of outgoing Councilmembers Barry Chang and Savita Vaidhyanathan Recommended Action: Recognize outgoing Councilmembers Barry Chang and Savita Vaidhyanathan Outgoing Councilmembers Barry Chang and Savita Vaidhyanathan were recognized. A video was shown noting their years on the City Council and Interim City Manager Amy Chan and Mayor Paul presented them with gifts of an Apple watch each. Councilmembers made comments. Mayor Paul opened public comment and the following individuals spoke: Tom Pyke on behalf of Congressman Ro Khanna Sheriff’s Department representatives Undersheriff Sung, Captain Urena, Lt. Roggia Connie Cunningham (Cupertino resident) Janet Van Zoeren (Cupertino resident) Heather Dean (Cupertino resident) Marieann Shovlin (Cupertino resident) Jean Bedord Ian Greensides Parth Bharwad (Cupertino resident) 21 City Council Minutes December 6, 2018 Marie Liu (Cupertino resident) J.R. Fruen (Cupertino resident) Patrick Ahrens (Cupertino resident) on behalf of Assembly Member Evan Low Orrin Mahoney Pete Heller (Cupertino resident) Keith Warner (Cupertino resident) on behalf of Cupertino Chamber of Commerce Vinod Balakrishnan (Cupertino resident) Richard Lowenthal Paulette Altmaier (Cupertino resident) Mahesh Pakala and Reena Rao on behalf of the Bhubaneswar Sister City Committee Gilbert Wong (Cupertino resident) Sujatha Venkataraman Liang Chao Bill Wilson and Hung Wei Mayor Paul closed public comment. OATH OF OFFICE AND ELECTION OF MAYOR AND VICE MAYOR 3. Subject: Oath of Office is given to newly -elected Councilmembers Darcy Paul, Liang Chao, and Jon Robert Willey Recommended Action: Oath of Office is given to newly-elected Councilmembers Darcy Paul, Liang Chao, and Jon Robert Willey Newly-elected Councilmember Darcy Paul received the Oath of Office from Former Mayor and Councilmember Patrick Kwok. Newly-elected Councilmember Liang Chao received the Oath of Office from Phyllis Dickstein. Newly-elected Councilmember Jon Robert Willey received the Oath of Office from Muni Madhdhipatla. Mayor Paul opened public comment and the following individuals spoke: Janet Van Zoeren (Cupertino resident) Muni Madhdhipatla (Cupertino resident) Patrick Kwok (Cupertino resident) Cathy Wang (Cupertino resident) Xiangehen Xu (Cupertino resident) Qin Pan (Cupertino resident) 22 City Council Minutes December 6, 2018 Barry Chang Vinod Balakrishnan (Cupertino resident) Gilbert Wong Mayor Paul closed public comment. 4. Subject: Councilmembers elect Mayor Recommended Action: Make nominations and elect Mayor Written communications for this item included emails to Council. Mayor Paul opened public comment and the following individuals spoke: Bill Wilson (Cupertino resident) Connie Cunningham (Cupertino resident) Janet Van Zoeren (Cupertino resident) Gary Latshaw (Cupertino resident) Savita Vaidhyanathan (Cupertino resident) Marie Liu (Cupertino resident) Ignatius Ding Dong Qing Yao Hung Wei (Cupertino resident) Patrick Kwok (Cupertino resident) Xiangchen Xu (Cupertino resident) Phyllis Dickstein Ping Gao (Cupertino resident) Muni Madhdhipatla (Cupertino resident) Joe Pereira (Cupertino resident) Brooke Ezzat (Cupertino resident) Danessa Techmanski (Cupertino resident) Andrea Harris (Cupertino resident) Gilbert Wong (Cupertino resident) Barry Chang Qin Pan Shuyi Chen (Cupertino resident) Lisa Warren Chitra Iyer Xing Han (Cupertino resident) Peggy Griffin Kent Vincent (Cupertino resident) Geoff Paulsen 23 City Council Minutes December 6, 2018 Mayor Paul closed public comment. Paul moved and Chao seconded to nominate Steven Scharf as Mayor. The motion carried unanimously. 5. Subject: Councilmembers elect Vice Mayor Recommended Action: Make nominations and elect Vice Mayor Scharf moved and Willey seconded to nominate Liang Chao as Vice Mayor. The motion carried unanimously. OATH OF OFFICE 6. Subject: Mayor takes Oath of Office Recommended Action: Mayor takes Oath of Office Newly-elected Mayor Steven Scharf received the Oath of Office from his daughter Rebekkah Scharf. 7. Subject: Vice Mayor takes Oath of Office Recommended Action: Vice Mayor takes Oath of Office Newly-elected Vice Mayor Liang Chao received the Oath of Office from Councilmember Rod Sinks. COMMENTS BY NEW MAYOR 8. Subject: Comments by New Mayor and presentation of gifts Recommended Action: Comments by New Mayor and presentation of gifts Mayor Scharf and Interim City Manager Amy Chan presented out-going Mayor Paul with a gift of a gavel plaque thanking him for his service as Mayor. Outgoing Mayor Paul made comments as did Mayor Scharf. COMMENTS BY COUNCILMEMBERS AND PUBLIC 9. Subject: Comments by Councilmembers Recommended Action: Comments by Councilmembers 24 City Council Minutes December 6, 2018 Councilmembers made comments. 10. Subject: Members of the audience are invited to speak Recommended Action: Members of the audience are invited to speak Mayor Scharf invited members of the audience to speak and Govind spoke. RECEPTION 11. Subject: The public is invited to attend a reception in the lobby Recommended Action: The public is invited to attend a reception in the lobby Mayor Scharf invited the public to attend a reception in the lobby. ADJOURNMENT At 11:00 p.m., Mayor Scharf adjourned the meeting. _________________________________ Grace Schmidt, City Clerk 25 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:118-4321 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:8/30/2018 City Council On agenda:Final action:12/18/2018 Title:Subject: Cancel the Wednesday, January 2, 2019 regular City Council meeting (moved from Tuesday, January 1 due to holiday as per CMC 2.04.010). Sponsors: Indexes: Code sections: Attachments:Staff Report Action ByDate Action ResultVer. City Council12/18/2018 1 Subject: Cancel the Wednesday, January 2, 2019 regular City Council meeting (moved from Tuesday, January 1 due to holiday as per CMC 2.04.010). Cancel the Wednesday, January 2, 2019 regular City Council meeting (moved from Tuesday, January 1 due to holiday as per CMC 2.04.010). CITY OF CUPERTINO Printed on 12/17/2018Page 1 of 1 powered by Legistar™26 CITY COUNCIL STAFF REPORT Meeting: December 18, 2018 Subject Cancel the Wednesday, January 2, 2019 regular City Council meeting (moved from Tuesday, January 1 due to holiday as per CMC 2.04.010). Recommended Action Cancel the Wednesday, January 2, 2019 regular City Council meeting (moved from Tuesday, January 1 due to holiday as per CMC 2.04.010). Discussion It has been past City Council practice to cancel the first meeting in January because City Hall is closed between Christmas and New Year’s Day. Sustainability Impact No sustainability impact. Fiscal Impact No fiscal impact. _____________________________________ Prepared by: Grace Schmidt, City Clerk Approved for Submission by: Amy Chan, Interim, City Manager Attachments: None 27 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:118-4657 Name: Status:Type:Consent Calendar Agenda Ready File created:In control:11/28/2018 City Council On agenda:Final action:12/18/2018 Title:Subject: Resolution in support of the Fourth U.S. National Climate Assessment Sponsors: Indexes: Code sections: Attachments:Staff Report A- Draft Resolution of Support National Climate Assessment Action ByDate Action ResultVer. City Council12/18/2018 1 Subject: Resolution in support of the Fourth U.S. National Climate Assessment Adopt Resolution No. 18-118 supporting the Fourth U.S. National Climate Assessment CITY OF CUPERTINO Printed on 12/17/2018Page 1 of 1 powered by Legistar™28 CITY COUNCIL STAFF REPORT Meeting: December 18, 2018 Subject Resolution in Support of the Fourth U.S. National Climate Assessment Recommended Action Adopt the draft resolution supporting the Fourth U.S. National Climate Assessment Discussion The U.S. National Climate Assessment is a regular science report by 13 federal agencies, mandated by Congress to inform the nation and U.S. government about climate change. The Fourth National Climate Assessment (NCA4), was released in November 2018, and it documents how climate change impacts people in regions and sectors across the U.S. The impacts of climate change are already being felt in communities across the country. More frequent and intense extreme weather and climate-related events, as well as changes in average climate conditions, are expected to continue to damage infrastructure, ecosystems, and social systems that provide essential benefits to communities. Future climate change is expected to further disrupt many areas of life, exacerbating existing challenges to prosperity posed by aging and deteriorating infrastructure, stressed ecosystems, and economic inequality. Impacts within and across regions will not be distributed equally. People who are already vulnerable, including lower-income and other marginalized communities, have lower capacity to prepare for and cope with extreme weather and climate-related events and are expected to experience greater impacts. Prioritizing adaptation actions for the most vulnerable populations would contribute to a more equitable future within and across communities. Global action to significantly cut greenhouse gas emissions can substantially reduce climate-related risks and increase opportunities for these populations in the longer term. The National Climate Assessment is aligned with the City’s Climate Action Plan (Chapter 6 Adaptation & Resiliency), which acknowledges that climate change is happening and that our community needs to adapt. Using data from the State of California’s Cal Adapt portal, impacts for the Cupertino community are identified which include but are not limited to; temperature increases resulting in heat waves in 29 the summer, rain will be more unpredictable and increase drought, wildfire risk increase and sea level rise which can impact regional mobility and commerce. It is the goal of the City to connect adaptation planning efforts with emergency preparedness and public safety programs, ensure economic vitality and foster neighborhood scale health and resilience. Sustainability Impact No direct sustainability impact at this time. While the adopted Climate Action Plan has an Adaptation & Resiliency section, it needs to be updated to be in compliance with the Mayors Climate Compact and Carbon Disclosure Project reporting. It is anticipated that this update to the Climate Action Plan will take place next fiscal year. Fiscal Impact No fiscal impact. _____________________________________ Prepared by: Misty Mersich, Sustainability Manager Reviewed by: Aarti Shrivastava, Assistant City Manager/Director of Community Development Approved for Submission by: Amy Chan, Interim City Manager Attachments: A – Draft Resolution to Support for Fourth U.S. National Climate Assessment 30 RESOLUTION NO. 18- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO DECLARING SUPPORT FOR THE NATIONAL CLIMATE ASSESSMENT WHEREAS, the Fourth U.S. National Climate Assessment, a quadrennial report submitted to the President and Congress mandated by the Global Change Research Act of 1990, was released in November 2018, which concludes that Americans are being affected by climate change due to human activities and that states like California in the West are particularly vulnerable to extreme temperature, decreased water availability, wildfire and an increase in extreme weather events; WHEREAS, the City of Cupertino has experienced impacts due to a changing climate including extreme weather events like increasing temperature heat waves in the summer, less predictable rain, drought, air quality impacts due to wildfire and negative public health effects; WHEREAS, the magnitude of climate change beyond the next few decades depends primarily on the amount of heat trapping gases emitted globally, and how sensitive the earth’s climate is to those emissions; WHEREAS, through the implementation of the Cupertino Climate Action Plan and other actions the City has taken, greenhouse gas emissions have been reduced communitywide by 13% as of the last inventory conducted with 2015 data, and are on target to meet our 2020 emission reduction goals; WHEREAS, in April 2016 world leaders from 175 countries recognized the threat of climate change and the urgent need to combat it by signing the Paris Agreement, agreeing to keep warming “well below 2°C above pre-industrial levels” and to “pursue efforts to limit the temperature increase to 1.5°C”; WHEREAS, in August 2018, the State of California released its Fourth Climate Assessment which supports the conclusion that the Bay Area is already seeing the impacts of climate change and these changes are projected to increase significantly in the coming decade over the region; WHEREAS, the City of Cupertino passed Resolution No. 18-094 on September 18, 2018, declaring a climate emergency and calling on the State of California, United States of America and all governments and peoples worldwide to initiate an emergency mobilization effort to mitigate climate change, stop rising greenhouse gas emissions, and immediately initiate an effort to safely draw down carbon from the atmosphere; 31 NOW, THEREFORE, BE IT FURTHER RESOLVED, that the City of Cupertino supports the science and findings of the Fourth National Climate Assessment, and recognizes that the global climate is changing and this change is apparent across a wide range of observations. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 18th day of December, 2018, by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: _________________________ ___________________________________ Grace Schmidt, City Clerk Steven Scharf, Mayor, City of Cupertino 32 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:118-4565 Name: Status:Type:Ordinances and Action Items Agenda Ready File created:In control:11/1/2018 City Council On agenda:Final action:12/18/2018 Title:Subject: Receive the City Clerk’s Certification of Sufficiency for referenda petitions against the following resolutions and ordinances, and direct staff to bring back options at the next regular meeting for Council to take as required by California Elections Code Section 9241. (Those actions include (1) repealing any or all of the resolutions or ordinances against which the petition is filed; and (2) submitting any or all of the resolutions or ordinances to the voters, either at the next regular municipal election or at a special election called for the purpose): Resolution No. 18-085: A Resolution of the City Council of the City Of Cupertino Approving a General Plan Amendment to Development Allocations, the General Plan Land Use Map and Development Standards Related to the Vallco Town Center Special Area Resolution No. 18-086: A Resolution of the City Council of the City of Cupertino Adopting the Vallco Town Center Specific Plan Ordinance No. 18-2178: An Ordinance of the City Council of the City of Cupertino Rezoning the Parcels within the Vallco Special Area Ordinance No. 18-2179: Ordinance of the City Council of the City of Cupertino Approving a Development Agreement by and Between the City of Cupertino and Vallco Property Owner LLC for the Development of Vallco Town Center Sponsors: Indexes: Code sections: Attachments:Staff Report A – Validation Letters from the Registrar of Voters Office Action ByDate Action ResultVer. City Council12/18/2018 1 Subject: Receive the City Clerk’s Certification of Sufficiency for referenda petitions against the following resolutions and ordinances, and direct staff to bring back options at the next regular meeting for Council to take as required by California Elections Code Section 9241. (Those actions include (1) repealing any or all of the resolutions or ordinances against which the petition is filed; and (2) submitting any or all of the resolutions or ordinances to the voters, either at the next regular municipal election or at a special election called for the purpose): Resolution No. 18-085: A Resolution of the City Council of the City Of Cupertino Approving a General Plan Amendment to Development Allocations, the General Plan Land Use Map and Development Standards Related to the Vallco Town Center Special Area Resolution No. 18-086: A Resolution of the City Council of the City of Cupertino Adopting the CITY OF CUPERTINO Printed on 12/17/2018Page 1 of 2 powered by Legistar™33 File #:18-4565,Version:1 Resolution No. 18-086: A Resolution of the City Council of the City of Cupertino Adopting the Vallco Town Center Specific Plan Ordinance No. 18-2178: An Ordinance of the City Council of the City of Cupertino Rezoning the Parcels within the Vallco Special Area Ordinance No. 18-2179: Ordinance of the City Council of the City of Cupertino Approving a Development Agreement by and Between the City of Cupertino and Vallco Property Owner LLC for the Development of Vallco Town Center Receive the City Clerk’s Certification of Sufficiency for referenda petitions against Resolution Nos. 18-085 and 18-086, and Ordinance Nos. 18-2178 and 18-2179, and direct staff to bring back options at the next regular meeting for Council to take as required by California Elections Code Section 9241. (Those actions include (1) repealing any or all of the resolutions or ordinances against which the petition is filed; and (2) submitting any or all of the resolutions or ordinances to the voters, either at the next regular municipal election or at a special election called for the purpose). CITY OF CUPERTINO Printed on 12/17/2018Page 2 of 2 powered by Legistar™34 CITY COUNCIL STAFF REPORT Meeting: December 18, 2018 Subject Receive the City Clerk’s Certification of Sufficiency for referenda petitions against the following resolutions and ordinances, and direct staff to bring back options at the next regular meeting for Council to take as required by California Elections Code Section 9241. (Those actions include (1) repealing any or all of the resolutions or ordinances against which the petition is filed; and (2) submitting any or all of the resolutions or ordinances to the voters, either at the next regular municipal election or at a special election called for the purpose): Resolution No. 18-085: A Resolution of the City Council of the City Of Cupertino Approving a General Plan Amendment to Development Allocations, the General Plan Land Use Map and Development Standards Related to the Vallco Town Center Special Area Resolution No. 18-086: A Resolution of the City Council of the City of Cupertino Adopting the Vallco Town Center Specific Plan Ordinance No. 18-2178: An Ordinance of the City Council of the City of Cupertino Rezoning the Parcels within the Vallco Special Area Ordinance No. 18-2179: Ordinance of the City Council of the City of Cupertino Approving a Development Agreement by and Between the City of Cupertino and Vallco Property Owner LLC for the Development of Vallco Town Center Recommended Action Receive the City Clerk’s Certification of Sufficiency for referenda petitions against Resolution Nos. 18-085 and 18-086, and Ordinance Nos. 18-2178 and 18-2179, and direct staff to bring back options at the next regular meeting for Council to take as required by California Elections Code Section 9241. (Those actions include (1) repealing any or all of the resolutions or ordinances against which the petition is filed; and (2) submitting any or all of the resolutions or ordinances to the voters, either at the next regular municipal election or at a special election called for the purpose). 35 Discussion On October 29, proponents filed four referendum petitions with the Cupertino City Clerk’s Office regarding the Vallco Town Center Specific Plan. On October 31, the Clerk’s Office performed a prima facie signature count on each petition as per California Elections Code Sections 9239 and 9210, as well as checking the petition forms per Elections Code Section 9238. The raw count on each petition equaled or exceeded the minimum number of signatures required, were accepted for filing and subsequently filed with the Santa Clara County Registrar of Voters Office on October 31. The Registrar’s Office validated the signatures on each petition using 100% signature verification, and has determined that all four petitions have sufficient signatures. In order to qualify for a referendum, the proponents were required to obtain signatures of 10% of the registered voters in Cupertino, or 2,888 signatures, on each petition. The petition regarding Resolution No. 18-085 had 4,736 valid signatures; the petition regarding Resolution No. 18-086 had 4,139 valid signatures; the petition regarding Ordinance No. 18-2178 had 4,124 valid signatures; the petition regarding Ordinance No. 18-2179 had 4,115 valid signatures. On December 6, 2018, the City Clerk received a letter from the Nielsen Merksamer law firm writing on behalf of Vallco Property Owner, LLC. The Nielsen letter contends that the Referendum protesting the City’s adoption of Resolution No. 18-085—regarding the General Plan Amendment (“GPA”) for the Vallco Project—fails to provide the full text of that GPA. The Nielsen letter accordingly contends that this Referendum is procedurally defective and that the City has a mandatory duty to reject the Referendum petition and not process it any further. The City has asked the attorney for the referendum proponents to respond to this letter. The City Attorney’s office is in the process of evaluating the claims in the Nielsen letter and will advise the City Clerk and the City Council regarding the results of that evaluation prior to the Council’s next regularly scheduled meeting. Fiscal Impact Information regarding election costs will be brought back at the next regular meeting along with options for Council to take. Sustainability Impact None _____________________________________ Prepared by: Grace Schmidt, City Clerk Approved for Submission by: Amy Chan, Interim City Manager Attachments: A – Validation Letters from the Registrar of Voters Office 36 37 38 39 40 41 42 43 44 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:118-4663 Name: Status:Type:Ordinances and Action Items Agenda Ready File created:In control:11/29/2018 City Council On agenda:Final action:12/18/2018 Title:Subject: Schedule a study session to review, clarify, and discuss the Code of Ethics and Conduct for Elected and Appointed Officials adopted by Council on November 20, 2018 Sponsors: Indexes: Code sections: Attachments:Staff Report A - Cupertino Commissions and Committees Action ByDate Action ResultVer. City Council12/18/2018 1 Subject: Schedule a study session to review, clarify, and discuss the Code of Ethics and Conduct for Elected and Appointed Officials adopted by Council on November 20, 2018 Schedule a study session at the January 15, 2019 City Council meeting to review, clarify, and discuss the Code of Ethics and Conduct for Elected and Appointed Officials adopted by Council on November 20, 2018. CITY OF CUPERTINO Printed on 12/17/2018Page 1 of 1 powered by Legistar™45 ` CITY COUNCIL STAFF REPORT Meeting: December 18, 2018 Subject Schedule a study session to review, clarify, and discuss the Code of Ethics and Conduct for Elected and Appointed Officials adopted by Council on November 20, 2018. Recommended Action Schedule a study session at the January 15, 2019 City Council meeting to review, clarify, and discuss the Code of Ethics and Conduct for Elected and Appointed Officials adopted by Council on November 20, 2018. Background On November 20, 2018, Council made several changes to improve commission engagement with Council and standardize protocol among commissions and committees. To provide more time and opportunity for commissioners to provide input, staff will be reaching out to commissions and committees regarding these changes. In order to document this outreach and ensure sufficient notification, each commission and committee will have this discussion added to an upcoming meeting agenda. If the commission or committee will have new members seated in February, the discussion will be scheduled in February 2019 once new members are seated. This additional feedback will be brought to Council for consideration in March/April 2019 prior to implementation. As part of the adopted standardized protocol discussed above, Council adopted Rosenberg’s Rules of Order for commission, committee, and City Council meetings. As part of this decision, Council conducted the first reading of Ordinance No. 18 -2182 to repeal Robert’s Rules of Order for City Council meetings. At the December 4th meeting, Council chose to defer the second reading of Ordinance No. 18-2182. The item will be reintroduced for Council consideration in March/April 2019, after additional feedback is gathered from the commissions and committees regarding parliamentary procedure. On November 20, 2018, Council also adopted Resolution No. 18-115 which adopted the City of Cupertino Code of Ethics and Conduct for Elected and Appointed Officials, which is discussed further below. 46 Discussion At the December 4th Council meeting, various councilmembers and some commissioners expressed interest in having further discussion and clarification regarding the City of Cupertino Code of Ethics and Conduct for Elected and Appointed Officials. For this reason, staff recommends that a study session be scheduled at the January 15, 2019 Council meeting to further review and discuss the Code of Ethics and Conduct. All commissions and committees will be invited to attend this meeting to hear the overview of the Code of Ethics and Conduct as well as provide comment if desired. Staff will also include the Code of Ethics and Conduct for review and discussion when gathering additional feedback from commissions and committees in the coming months. After receiving this additional input and Council direction on the Code of Ethics and Conduct, staff will bring back revisions for Council consideration. Sustainability Impact None anticipated. Fiscal Impact None anticipated. _____________________________________ Prepared by: Katy Nomura, Senior Management Analyst Reviewed by: Aarti Shrivastava, Assistant City Manager Approved for Submission by: Amy Chan, Interim City Manager Attachments: A—Cupertino Commissions and Committees 47 ATTACHMENT A CITY OF CUPERTINO COMMISSIONS Commission Description Meeting Frequency Bicycle Pedestrian Commission Advises Council on transportation matters within Cupertino including bicycle and pedestrian traffic, parking, education, and recreation. Practice: Monthly Mandate: At least every other month Fine Arts Commission Fosters, encourages, and assists in the realization, preservation, and advancement of fine arts for the benefit of the citizens of Cupertino. Every other month Housing Commission Assists in recommending housing policies and strategies, monitoring affordable housing projects, and identifying sources of funding for affordable housing. Practice: Monthly Mandate: At least quarterly Library Commission Advises Council regarding library service in the community and serves as liaison between the City and the Santa Clara County Library Joint Powers Authority. Practice: Monthly Mandate: At least every other month Parks & Recreation Commission Advises Council on parks and recreation related activities, including park site acquisition and development, community activities, and recreation policies. Monthly Planning Commission Advises Council on land use matters including the City’s General Plan, implements the General Plan through the administration of specific plans, zoning and subdivisions, and establishes a standing subcommittee for design review. Twice a month Public Safety Commission Advises Council on areas relating to public safety, traffic, police, fire and other areas where public safety may be of concern. Practice: Monthly Mandate: At least every other month Sustainability Commission Advises Council on major policy and programmatic areas related to the environmental goals in Cupertino’s Climate Action Plan and General Plan’s Environmental Resources/Sustainability Element. Practice: Monthly Mandate: At least quarterly Teen Commission Advises Council and staff on issues and projects important to youth in the Cupertino community. Twice a month (Sept-May) Monthly (Jun-Aug) Technology, Information, & Communications Commission (TICC) Advises Council on all matters relating to telecommunications in Cupertino and provides support for community access television. Practice: Monthly Mandate: At least quarterly 48 ATTACHMENT A CITY OF CUPERTINO COMMITTEES Committee Description Meeting Frequency Audit Committee Reviews annual audit report, monthly treasurer’s report, and city investment policies. Recommends appointment of auditors and budget format. Quarterly Design Review Committee A subcommittee of the Planning Commission that reviews aspects of site and architectural design. As needed Disaster Council Supports the City’s emergency management and preparedness responsibilities. Quarterly Economic Development Committee Enhances and promotes a strong local economy to provide municipal services that businesses and residents desire and need to maintain the community's quality of life. Quarterly Environmental Review Committee Evaluates the initial study of a proposed project to determine whether the project may or may not have a significant effect on the environment. Practice: As needed Mandate: Twice a month Fiscal Strategic Plan Committee Confers, strategizes, and plans for current as well as future activities that have a fiscal impact on the City. Annually Legislative Review Committee Advises on legislative priorities and actions. As needed 49 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:118-4243 Name: Status:Type:Ordinances and Action Items Agenda Ready File created:In control:7/31/2018 City Council On agenda:Final action:12/18/2018 Title:Subject: Report on the 2018 Pilot Neighborhood Events Program and Discussion of Future Neighborhood Events Programs. Sponsors: Indexes: Code sections: Attachments:Staff Report A - City Countil Staff Report March 6, 2018 B - Neighborhood Events Brochure.pdf Action ByDate Action ResultVer. City Council12/18/2018 1 Subject: Report on the 2018 Pilot Neighborhood Events Program and Discussion of Future Neighborhood Events Programs. Accept report on the 2018 pilot neighborhood events program and provide staff direction on offering an ongoing neighborhood events program in the future. CITY OF CUPERTINO Printed on 12/17/2018Page 1 of 1 powered by Legistar™50 CITY COUNCIL STAFF REPORT Meeting: December 18, 2018 Subject Report on the 2018 Pilot Neighborhood Events Program and Discussion of Future Neighborhood Events Programs. Recommended Action Accept report on the 2018 pilot neighborhood events program and provide staff direction on offering an ongoing neighborhood events program in the future. Discussion City Council approved funding for a pilot neighborhood events program in the 2017/18 and 2018/19 Budgets that included capital equipment ($20,000) and money to provide individual events in neighborhood parks ($172,934). The primary goal was to build a sense of community and connection, as well as to offer programs throughout the City, supplementing events at Memorial Park. The events celebrate Cupertino’s diverse culture in a sustainable manner. This program enabled staff to make valuable community connections with local business, non-profits, and commercial vendors. Capital equipment was purchased for $27,739 and operating costs were $165,195 On November 1st, 2018, the Parks & Recreation Commission voted unanimously to recommend (to City Council), full support to continue this program. Data from the current master plan process suggests that cultural events in neighborhood parks are highly desired by residents. The table below shows Cupertino resident interests in recreational activities. The top two categories are consistent with surveys done on a national level. The third category, Cultural Events, Performing Arts and Concerts have all been addressed in the neighborhood Events program. Recreation Interests and Participation Nature Walks/Hikes 598 63.7% Walking for pleasure or fitness 597 63.6% Cultural Events/Performing Arts/Concerts 457 48.7% Bicycling (recreation) 431 45.9% Fairs and Festivals (attend) 426 45.4% 51 Exercising/Aerobics/Weightlifting 408 43.5% Gardening 344 36.6% Swimming 341 36.3% Arts & Crafts 335 35.7% Picnicking 327 34.8% As a result, Recreation and Community Services offered 34 new programs and activities between July and September, 2018 in 11 neighborhood parks or partner venues. Events and activities included a variety of concerts and movies, fitness programs and arts programs in neighborhood parks. Five goals for the program guided staff, originating from recommendations from the Parks & Recreation Commission and local survey information gleaned from research in the current master plan process. Goal 1. Greater connection with cultural segments of our community Goal 2. Increased focus on sustainable special events that community members could walk or bike rather than drive to Goal 3. Increased number of quality programs and activities offered by the department. Goal 4. Increased connections with partner organizations within the city Goal 5. Provide a greater sense of community engagement with community members Program Participation: Approximately 6,000 participants attended the neighborhood events. There were a number of people that attended multiple events, but many participants were new to recreation and were excited to have events in their neighborhood parks. Cultural Events 1,480 Outdoor Concerts 1,211 Fitness/ Art Classes(16) 273 Combined Events; concert/movies, movies/performances/tournaments 3,024 Total 5,988 Budget and Operating Costs: Funding for neighborhood events was approved in the FY 17/18, and FY18/19 budgets. Operating expenses were as follows: FY17/18 FY18/19 (7/1/-10/31) Total Salary and Benefits 63-207-02 - RECREATION SUPERVISOR $ 3,290.00 $ 9,456.00 $ 12,746.00 52 60-802-01 - COMMUNITY COORDINATOR $18,199.00 $ 21,168.00 $ 39,367.00 60-810-01 - LEISURE PROGRAM SPECIALIST $11,455.00 $ 13,409.00 $ 24,864.00 60-802-01 - COMMUNITY COORDINATOR $ 250.00 $ 250.00 62-813-10 - RECREATION LEADER $ 626.00 $ 626.00 62-813-46 - RECREATION LEADER $ 1,358.00 $ 1,358.00 62-822-01 - BUILDING ATTENDANT $ 593.00 $ 593.00 62-822-03 - BUILDING ATTENDANT $ 100.00 $ 100.00 63-816-21 - SWIM INSTRUCTOR/LIFEGUARD $ 87.00 $ 87.00 63-820-16 - POOL MANAGER $ 114.00 $ 114.00 Salary and Benefit totals $33,031.00 $ 47,074.00 $ 80,105.00 Activities $ 1,675.00 $ 13,013.00 $ 14,688.00 Advertising $ 3,371.00 $ 866.00 $ 4,237.00 Equipment $ 2,560.00 $ 2,814.00 $ 5,374.00 Fitness Instructor $ - $ 340.00 $ 340.00 Food $ 692.00 $ 977.00 $ 1,669.00 General Supplies $ 3,491.00 $ 9,604.00 $ 13,095.00 Live Performances $ - $ 19,425.00 $ 19,425.00 Movie Rentals $ 312.00 $ 1,445.00 $ 1,757.00 Permits $ 99.00 $ 300.00 $ 399.00 Portable Restrooms $ - $ 10,681.00 $ 10,681.00 Professional Services $ - $ 2,150.00 $ 2,150.00 Rental $ - $ 2,836.00 $ 2,836.00 Truck Rental $ - $ 6,831.00 $ 6,831.00 Insurance Premium $ 1,608.00 $ - $ 1,608.00 Materials and Contract Cost $ 13,808.00 $ 71,282.00 $ 85,090.00 Grand Total $ 46,839.00 $ 118,356.00 $ 165,195.00 One-time Capital Equipment Visual Equipment $22,926.95, Large movie screen, Blowers, projectors, cables Audio Equipment $4812.84, Speakers, cables, Microphones, Cords, monitors One time capital costs: $27,739.79 Great effort was made by staff to purchase capital equipment (projector, screen and audio equipment) as inexpensively as possible. Staff was able to negotiate the original costs from $31,007 to $21,711, a savings of $9,296. 53 Program Evaluation Staff completed approximately 700 intercept surveys of patrons at the events, with the intention of determining both satisfaction and interest in future activities. Results from the survey day lighted the following:  Participants were primarily people who work or live in Cupertino - 89% of the 5,899 participants  Marketing successes were word of mouth, the fold out brochure and the city website (Staff received many requests to market through Next Door/Cupertino)  Most enjoyable segments included music, movie, recreation lawn games, community atmosphere and free popcorn Survey Participant’s Ratings of the Events 75% rated events as “Excellent” 25% rated events as “Good” 0% rated events as “Fair” or “Poor” Evaluation of goals: 1. Greater connection with cultural segments of our community. Three culturally themed events: Chinese cultural event, Latino night, and Bollywood night were offered. 2. Increased focus on sustainable special events that community members could walk or bike rather than drive to: We provided events in 11 different settings in Cupertino. Surveys show that the majority of people were able to walk “less than a mile” to their neighborhood event. Historically, special events were not generally held at these locations. Parks/Neighborhoods served:  Creekside  Main Street Park  Monta Vista Park  Jollyman Park  Portal Park  Wilson Park  Linda Vista Park  City Center Amphitheater  Three Oaks Park  Hoover Park 54  Sterling Barnhart Park 3. Increased number of quality programs and activities offered by the department. We were able to bring quality programming to Cupertino neighborhoods. In addition to concerts and movies, there were a variety of recreation activities for all ages available for the community to enjoy. The events were family oriented with recreation themes. 4. Increased connections to partner organizations within the city. We were able to develop valuable partnerships and make valuable community connections that brought more depth and creativity to our events. In addition, we provided opportunities for many local vendors and contractors from the Cupertino community. Community Connections: • Chamber of Commerce • Fine Arts League of Cupertino • Chinese Performers of America • Regional and local Chess Clubs • Santa Clara County Sheriff’s Office (delivered Indiana Jones in a Helicopter) • City Center Amphitheater-Prometheus Corporation • Main Street (3 events) • Local Dance Studios • Local Activity Vendors 5. Provide a greater sense of community engagement with members of our community. Our survey indicated that one of the things that people enjoyed the most was the community engagement; people met neighbors they didn’t know, neighbors dancing together in our parks, and everyone gets to relax and play together. This program has helped to build a closer community! Recommended Changes to Future Programs Among the lessons learned were that events need to be held only up until Labor Day. Events in September were not as well received. More than one Chinese and Indian cultural event would be received well. Staff recruitments need to take place in early March as staffing the program was challenging. A greater marketing reach would result in much higher participation. Reaching the community with printed and electronic material prior to the end of the school year is a priority. 55 Perhaps the most important lesson learned was that coordination of the events needs to begin in early February vs. late March to maximize opportunity to engage members of each neighborhood and partners. Sustainability Impact No sustainability impact. Fiscal Impact $165,195 to be included in the 2019/2020 budget. Prepared by: Kim Calame, Recreation Supervisor Reviewed by: Jeff Milkes, Director, Recreation and Community Services Approved for Submission by: Amy Chan, Interim City Manager Attachments: A – City Council Staff Report March 6, 2018 (authorizing the initial pilot program) B – 2018 Neighborhood Events Brochure 56 1 ADMINISTRATIVE SERVICES CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3220 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: March 6, 2018 Subject Approve the Mid-Year Financial Report and recommended budget adjustments for Fiscal Year 2017-18 Recommended Action 1. Accept the City Manager’s Mid-Year Financial Report for FY 2017-18 2. Approve the Mid-Year adjustments for FY 2017-18 as described in the Mid-Year Financial Report 3. Adopt a resolution approving Mid-Year budget adjustments Background On June 20, 2017, the City Council adopted the Fiscal Year (FY) 2017-18 Budget, a $148.9 million spending plan for the City of Cupertino. On December 5, 2017, Council received an update on the City’s spending plan as part of the City Manager’s First Quarter Financial Report, which revised the budget to account for encumbrances of $10,532,154 and carryover appropriations of $41,133,535 from FY 2016-17. In the first two quarters of FY 2017-18, Council approved $4,815,182 in adjustments mostly related to the acquisition of property on Byrne Road, the Vallco Specific Plan, and a donation for the City’s Bike Plan Implementation. In addition, there was a decrease of $3,925,080 in the Internal Service Fund (ISF) mostly related to an operating transfer to the General Fund in order to consolidate the City Channel/Web internal service fund with the City’s General Fund. This resulted in an amended budget of $205,349,050. These FY 2017-18 budget adjustments are summarized in the table below: Fund FY 17-18 Final Adopted Carryovers Encumbrances Adjustments Approved in 1st-2nd Quarters FY 17-18 Amended Budget as Dec 31, 2017 General $75,051,233 $11,974,549 $4,529,247 $6,256,918 $97,811,947 Special Revenue $24,872,591 $21,061,815 $4,362,855 $213,344 $50,510,605 Debt Service $3,167,538 - - - $3,167,538 Capital Projects $23,509,762 $5,971,870 $839,842 $2,270,000 $32,591,474 Enterprise $10,576,992 $1,438,826 $38,195 $12,054,013 Internal Service $11,690,063 $686,475 $762,015 -$3,925,080 $9,213,473 Total All Funds $148,868,179 $41,133,535 $10,532,154 $4,815,182 $205,349,050 57 2 Discussion The Mid-Year Financial Report focuses on the status of the City’s budget as of December 31, 2017, and recommends adjustments to ensure the budget reflects the City’s current revenue outlook and is responsive to changing spending priorities. As shown in the chart below, $12,144,705 in budget adjustments are being requested, of which $10,000,000 involves a transfer of excess fund balance to the Capital Reserve per the City’s Reserve and One Time Use Policy. If approved, the City’s new spending plan would total $217,493,755 across all funds. Mid-Year Financial Report Summary by Fund Fund Amended Budget as of Dec 31, 2017 Requested Mid-Year Adjustments Year End Projections General $97,811,947 $12,068,805 $109,880,752 Special Revenue $50,510,605 -$50,510,605 Debt Service $3,167,538 -$3,167,538 Capital Projects $32,591,474 -$32,591,474 Enterprise $12,054,013 -$12,054,013 Internal Service $9,213,473 $75,900 $9,289,373 Total All Funds $205,349,050 $12,144,705 $217,493,755 The recommended budget adjustments would be funded through the use of department revenue of $14,144,900, of which $11,400,000 is a movement of cash from the General Fund to the Capital Reserve and Retiree Health Fund. A projected increase to unassigned fund balance in the amount of $2,000,195 across all funds would occur as summarized in the table below: Fund Department Description Expenditure Revenue Fund Balance General Fund Administrative Services 384,820$ -$ (384,820)$ Contract Adjustment - Sales Tax Consultant Muni Services General Fund Administrative Services 29,185$ -$ (29,185)$ FT Permanent Account Clerk I/II position General Fund City Manager's Office 9,900$ -$ (9,900)$ Matching Funds to Remove Barrier to Fish Passage General Fund City Manager's Office 4,400$ (4,400)$ FT Community Outreach Specialist position General Fund Innovation and Technology 43,400$ -$ (43,400)$ Disaster Modeling and Planning for Seismic Activity General Fund Law Enforcement 60,000$ 69,000$ 9,000$ Sheriff Pass Thru Expenses, Revenue, and Admin. Fee General Fund Recreation and Community Services 37,100$ (37,100)$ Part-Time staff costs for Neighborhood Events Planning General Fund Public Works 100,000$ -$ (100,000)$ Carmen Road Ped/Bike Bridge Study General Fund Non-Departmental -$ 2,600,000$ 2,600,000$ Increase in projected Sales Tax and Property Tax Revenue General Fund Non-Departmental 1,400,000$ (1,400,000)$ Transfer out fund balance to Retiree Health Fund General Fund Non-Departmental 10,000,000$ (10,000,000)$ Transfer out fund balance to the Capital Reserve Total General Fund 12,068,805$ 2,669,000$ (9,399,805)$ Capital Fund Non-Departmental 10,000,000$ 10,000,000$ Transfer in fund balance to the Capital Reserve Internal Service Fund Administrative Services -$ 1,400,000$ 1,400,000$ Transfer in fund balance to Retiree Health Fund Internal Service Fund Administrative Services 75,900$ 75,900$ -$ Short Disability Budget in the ISF Funds Total Other Funds 75,900$ 11,475,900$ 11,400,000$ Total All Funds 12,144,705$ 14,144,900$ 2,000,195$ 10, 58 3 General Fund Update 4-year Comparison of Revenues, Expenditures and Changes to Fund Balance Revenue As of Mid-Year, General Fund revenues are at $33.6 million, which represents 37% percent of the Amended Budget revenue. Sales Tax revenue is expected to come in higher than originally projected as reported by our sales tax consultant, HDL. This is primarily due to the positive effect of sales tax localization due to the Apple Park development. Furthermore, County estimates indicate that property tax revenues are expected to come in higher than previously projected. This is partially attributed to properties associated with Apple Park, which had an assessed value increase of $822 million. Transient Occupancy Tax revenues have increased primarily due to the opening of the Residence Inn Marriot in Main Street. In total, staff is recommending to increase budgeted revenues in the General Fund by $2.6 million. Expenditures As of Mid-Year, General Fund departments are requesting adjustments totaling $12,068,805. These requests involve a contract adjustment for the City’s previous sales tax consultant Muni Services as they close out audits they began in prior fiscal years, staffing requests, matching funds to remove a barrier to fish passage at Deep Cliff Golf Course, disaster modeling and planning for seismic activity, Sheriff pass thru expenses, a Carmen Road pedestrian/bike bridge study, funding for the retiree health fund, and the transfer of excess fund balance to the Capital Reserve per the City’s Reserve Policy. These requests would be funded by an increase in projected sales and property tax revenue and the use of General Fund unassigned fund balance as summarized in the table below: 59 4 Fund Department Description Expenditure Revenue Fund Balance General Fund Administrative Services 384,820$ -$ (384,820)$ Contract Adjustment - Sales Tax Consultant Muni Services General Fund Administrative Services 29,185$ -$ (29,185)$ FT Permanent Account Clerk I/II position General Fund City Manager's Office 9,900$ -$ (9,900)$ Matching Funds to Remove Barrier to Fish Passage General Fund City Manager's Office 4,400$ (4,400)$ FT Community Outreach Specialist position General Fund Innovation and Technology 43,400$ -$ (43,400)$ Disaster Modeling and Planning for Seismic Activity General Fund Law Enforcement 60,000$ 69,000$ 9,000$ Sheriff Pass Thru Expenses, Revenue, and Admin. Fee General Fund Recreation and Community Services 37,100$ (37,100)$ Part-Time staff costs for Neighborhood Events Planning General Fund Public Works 100,000$ -$ (100,000)$ Carmen Road Ped/Bike Bridge Study General Fund Non-Departmental -$ 2,600,000$ 2,600,000$ Increase in projected Sales Tax and Property Tax Revenue General Fund Non-Departmental 1,400,000$ (1,400,000)$ Transfer out fund balance to Retiree Health Fund General Fund Non-Departmental 10,000,000$ (10,000,000)$ Transfer out fund balance to the Capital Reserve Total General Fund 12,068,805$ 2,669,000$ (9,399,805)$ Retiree Health Fund The Administrative Services Department is requesting a transfer of $1.4 million dollars from the General Fund to the Retiree Health fund in order to restore the fund to a positive cash balance. In FY 2015-16, the City used fund balance in retiree health to fund a large portion of expenses in that fund. In the subsequent year, it was discovered that these dollars should not have been used and the fund was in a cash deficit position. If approved, this will restore the fund to a positive position. Matching Funds to Remove Barrier to Fish Passage In 2016, the Friends of Stevens Creek Trail were awarded a grant from the Santa Clara Valley Water District (SCVWD) to fund a feasibility study evaluating solutions to improve fish passage along Stevens Creek. Council agreed to sign on as a grant partner, providing a contribution of $6,380, one-third of the local match requirement. The study was completed in November 2017 and eight barriers to fish migration on Stevens Creek were identified. At the February 6, 2018 Council meeting, the Santa Clara County Creeks Coalition submitted a written request (Attachment E) to Mayor Paul and the Council to discuss the possibility of contributing $9,900 towards matching funds for another SCVWD grant proposal to remove one of the identified barriers at Deep Cliff Golf Course in Cupertino. The estimated total cost for removing the Deep Cliff barrier is $140,000 - $160,000. If the Creeks Coalition can secure $9,900 from four agencies, the resulting $39,600 would amount to the 25% match requirement. The Creeks Coalition has also approached Sunnyvale, Mountain View, Los Altos, and the Open Space District requesting contributions. The Sustainability Division is requesting $9,900 to commit towards the matching fund requirement if the grant is awarded. Neighborhood Events Planning for Summer 2018 Recreation and Community Services staff are planning on expanding special events, such as outdoor movies and concerts, into neighborhood parks beginning this summer on a trial basis. Currently, most all events are held in Memorial park which requires many people to drive to the park. The intent is to provide walkable events, coordinated 60 5 with neighbors to provide a sense of community. Funding is needed to hire one (1) PT Community Coordinator and one (1) PT Leisure Programs Specialist, to plan the trial series of events at Jollyman, Creekside, Civic Center, and Main Street for the summer of 2018. Neighborhood events will greatly enhance the City's program offerings and relationships with neighbors as they will be offered in coordination with neighbors, block leaders, private groups, and more. For these part-time staff, $37,100 is requested for the planning stage. Funds to implement the trial program will be requested in the upcoming budget process. It is estimated that the trial program implementation would cost $98,000, but the final amount will be determined through the planning process. Fund Balance The City’s General Fund ended FY 2016-17 with $53.49 million in total fund balance. As part of the FY 2017-18 Final Budget the City projected ending the fiscal year with $45.41 million in total fund balance. As of the First Quarter Report, the City updated its year- end projections for FY 2017-18 to $55.77 million in GF fund balance, an increase of $10.36 million due to increases in revenues received and lower expenditures in FY 2016- 17. Projected year-end fund balance is being decreased by $5.66 million over the first quarter projections due to a transfer of cash out of the General Fund to the Capital Reserve and the Retiree Health Fund. Year End Projections Actuals Adopted Budget First Quarter Mid-Year Projections CLASSIFICATION 2016-17 2016-17 2017-18 2017-18 2017-18 Non Spendable 0.94 0.88 1.10 0.94 0.94 Restricted 0.69 1.02 0.76 0.69 1.01 Committed 11.60 19.00 - *10.43 19.00 Assigned 20.50 4.64 36.80 23.86 15.95 UnAssigned 11.28 28.05 6.75 19.85 13.21 TOTAL FUND BALANCE 45.01 53.59 45.41 55.77 50.11 * The FY 2017-18 adopted budget reported an Economic Uncertainty reserve in “assigned” fund balance. The FY 2017-18 First Quarter Report incorrectly classified encumbrances as “committed” fund balance. The FY 2017 -18 Mid- Year Report corrected these classifications by reporting the Economic Uncertainty reserve as “committed” fund balance and encumbrances as “assigned” fund balance. As of Mid-year, staff recommends the transfer of $10 million in fund balance to the Capital Reserve to fund future years of the Capital Improvement Plan. Staffing Currently, the city has a total of 193.75 FTEs. As of Mid-Year, staff is requesting a full- time Account Clerk I/II in Administrative Services and the conversion of a Limited Term Special Programs Coordinator to a full-time Community Outreach Specialist for Recreation and Community Services and Public Affairs. If approved, this would bring the full-time benefited employee count to 194.75. 61 6 Community Outreach Specialist Staff recommends making permanent one limited-term Special Programs Coordinator position in the Recreation and Community Services Department (RCSD) and reclassifying the position to a Community Outreach Specialist to better refl ect actual duties performed. The position performs graphic design and marketing work consistent with a Community Outreach Specialist. The position was funded as part of the FY 2016- 17 as a two year limited term position, set to expire in August 2018. This position has resulted in increased social media traffic related to RCSD by 60% with 325% more posts reaching customers weekly in addition to increasing the open rate for email marketing. The Recreation Schedule has improved visuals and is more intuitive for the customer. Overall, RCSD has seen increased enrollment in many programs. Given the City’s efforts to create unified branding standards, staff recommends partial oversight from the Public Affairs Division. This change would ensure that the Community Outreach Specialist supporting RCSD is up-to-date on broader community interests, concerns, and sensitivities; as well as ensuring alignment to City -wide branding and marketing strategies. Realigning the position would also allow greater flexibility for both Public Affairs and RCSD in meeting marketing demands. Account Clerk I/II A new full time permanent Account Clerk I/II position is being requested to serve as the liaison between the Sheriff's Office and private entities requiring private law enforcement services, commonly referred to as “paid jobs” by the Sheriff’s Office and to serve as additional support for our business license function. In late FY 2016 -17, the Sheriff's Office advised the City that per their County Counsel the Sheriff would no longer be available to contract with private entities for paid jobs. Any requests for paid jobs would need to first go through the City and be requested by the City as part of its contract with the Sheriff for law enforcement services. Since, there is no indication from the County that this administrative process will be retur ning to the Sheriff's Office, this will be an ongoing service that the City will need to provide. In addition, this new position will provide relief for the business license function in the department. Business licenses have seen a significant increase in volume in the past few years. This coupled with a change in process to industry best practices as part of a system upgrade which eliminated the batch renewal functionality, has resulted in a significant workload increase in the department. Since, there are no technical solutions on the horizon to alleviate workload issues in business licenses, the department would like to move forward with a permanent long-term solution for the position. In addition, consistency in this position allows for building a great business relationship with our most frequent requestors. Furthermore, offsetting revenue is anticipated for this 62 7 position, through the administrative fee that the department charges for being the pass thru for paid jobs services. Performance Measures Updated performance measures that align with government and private industry best practices have been included in the Mid-Year Financial Report. Staff will continue to provide updates to Council on the performance measures as part of the Mid-Year Budget Report, including prior year totals and current year results through December . Attachment C represents the status of the performance measures as of Mid-Year. Irrevocable Trust Significant investment losses experienced by CalPERS during the great recession have resulted in the overall funded status of the retirement system falling below desired levels. As a result, on December 21, 2016, the CalPERS Board of Administration voted to lower the CalPERS discount rate assumption from 7.5% to 7.0% over three years. Although this will reduce the long-term probability of funded ratios falling below desired levels and improve the likelihood of CalPERS investments earning the assumed rate of return, it will result in considerable increases to the City’s annual required contributions, which include both the Normal Cost and Unfunded Accrued Liability (UAL) payments. As of June 30, 2016, the City’s Unfunded Accrued Liability is $40.6 million. For FY 2017 - 18, the City’s estimated contribution to CalPERS is $4.0 million (Normal Costs: $1.6 million; UAL Contribution: $2.4 million). Assuming the adopted changes to the discount rate, by 2024-2025, the City’s CalPERS costs are projected to rise to $7.2 million (Normal Costs: $2.3 million; UAL Contribution: $4.9 million), an increase of 81.7% (CalPERS Actuarial Valuation Report as of June 30, 2016). In addition, as of February 13, 2018, the CalPERS board voted to decrease the amortization period for new pension liabilities from 30 years to 20 years effective July 1, 2019 for all agencies. CalPERS estimates that this will result in the normal cost rate increasing by 0% to 0.6% and UAL costs changing by -1.3% to 4.3% for Tier 1 members; for Tier 2 members, it is estimated that the normal cost rate will change by -0.3% to 0% and UAL costs will decrease by -5.5% to -3.1%; for PEPRA members, the normal cost rate is estimated to change by -0.1% to 0% (CalPERS Circular Letter 200-014-18). Reducing the amortization period is expected to increase future average funding ratios, provide faster recovery of funded status following market downturns, and decrease cumulative interest contributions. If there are any further reductions in the discount rate or if CalPERS investment returns continue to fall below the 7.0% assumption, there may be further increases to the City’s 63 8 annual required contributions. To reduce the risk of contribution increases in the future, the City has several options: 1. Pre-paying the UAL 2. Establishing a Section 115 Trust 3. Expedite amortizing the UAL over 20 years instead of 30 years City staff recommends establishing a Section 115 Irrevocable Trust. A Section 115 Trust is a tax-exempt investment tool that allows local governments to pre -fund pension and OPEB costs. Once contributions are placed into the trust, assets from the trust can only be used for retirement plan purposes. Withdrawals may be made to either reimburse the City for retirement system contributions or to directly pay CalPERS. City staff also recommends expediting the change in amortization of the UAL over 20 years instead of 30 years. The benefits of Section 115 Trusts include the following:  Local control over assets: City controls the contributions, withdrawals, investment strategy, and risk level;  Pension rate stabilization: Assets can be transferred to CalPERS at City’s discretion;  Potential for higher investment returns: Investment requirements that apply to the City’s General Funds are not applicable to assets held in a Section 115 Trust;  Potential for lower net pension liability: Contributions to the trust may be able to reduce the City’s net pension liability for financial reporting purposes. In addition to establishing a trust, City staff is preparing a funding strategy with recommendations on how to grow the trust to City Council as part of the FY 2018 -19 Proposed Budget. One option for increasing the assets of the trust is to allocate a portion of year-end excess fund balance to the trust. Conclusion City staff recommends adjustments of $12,144,705 in appropriations and $14,144,900 in projected revenue resulting in $2,000,195 added to fund balance across all funds. Staff will continue to monitor the FY 2017-18 Amended Budget and be prepared to make recommendations and changes based on business needs and Council priorities before June 30, 2018 to ensure that the City ends the year within budgeted appropriations. 64 9 Prepared by: Budget Team Members - Karen Bernard-Guerin, Zach Korach, Thomas Leung, Katy Nomura, and Toni Oasay-Anderson Reviewed for submission by: Kristina Alfaro, Director of Administrative Services Approved for Submission by: David Brandt, City Manager Attachments: A - Mid-Year Financial Report – FY 2017-18 B - Draft Resolution C - Performance Measures for each Department D - Mid-Year Budget Journal E - Santa Clara County Creeks Coalition Letter 65 66 67 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:118-4741 Name: Status:Type:Staff and Commission Reports Agenda Ready File created:In control:12/11/2018 City Council On agenda:Final action:12/18/2018 Title:Subject: Report on Committee assignments and general comments Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. City Council12/18/2018 1 Subject: Report on Committee assignments and general comments Report on Committee assignments and general comments CITY OF CUPERTINO Printed on 12/17/2018Page 1 of 1 powered by Legistar™68 CITY OF CUPERTINO Legislation Details (With Text) File #: Version:118-4731 Name: Status:Type:Adjournment Agenda Ready File created:In control:12/10/2018 City Council On agenda:Final action:12/18/2018 Title:Subject: Adjourn in memory of former Cupertino Mayor Bob Meyers Sponsors: Indexes: Code sections: Attachments: Action ByDate Action ResultVer. City Council12/18/2018 1 Subject: Adjourn in memory of former Cupertino Mayor Bob Meyers Adjourn in memory of former Cupertino Mayor Bob Meyers CITY OF CUPERTINO Printed on 12/17/2018Page 1 of 1 powered by Legistar™69