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CC 05-19-2022 Written CommunicationsCC 05-19-2022 Written Communications Oral Communications From:Liang Chao To:City Clerk Subject:Written Communication for Council Meeting Date:Wednesday, May 18, 2022 2:25:16 PM Please add this as written communication for the city council meeting tomorrow. Thanks! Liang Chao​ Vice Mayor City Council LiangChao@cupertino.org 408-777-3192 ---------- Forwarded message --------- From: Liang-Fang Chao <lfchao@gmail.com> Date: Wed, May 18, 2022 at 2:20 PM Subject: Re: [cusd-parents] More money, fewer schools, do we need another parcel tax? To: Ivan Kuznetsov <ivan.y.kuznetsov@gmail.com> CC: CUSD Parents <cusd-parents@googlegroups.com> Thank you for the information and well-written article. You wrote “ CUSD set an anti-record of the sharpest enrollment decline in the county. And to add insult to injury, all this happened while the number of kids per household in our district actually increased. ” That link goes to a Twitter post: https://twitter.com/RecallCUSDBoard/status/1519320782895083520 “ Go to data.census.gov, look at Households & Family report by year for CUSD. We went from 42% to 44.5% from '19 to '20 in # of households w kids under 18” This is consistent with the data I posted earlier. The number of children per household of CUSD is 46%, while the percentage for most other school districts is around 30%. Thus, CUSD has 50% more students density than other districts. And we have to close schools due to declining enrollment? This seems to be a joke. Or due to a total mismanagement of the district? On Wed, May 18, 2022 at 2:06 PM Ivan Kuznetsov <ivan.y.kuznetsov@gmail.com> wrote: Front page of Mercury News today: “California public schools get a whopping $128.3 Billion under Newsom’s budget proposal. “That’s a number you’ve never seen in California,” Newsom said. This is absolutely fantastic news where LCFF districts are getting a 10% funding increase. For CUSD that translates into 14-15M in additional revenue (based on their latest financial report). For comparison - this revenue hike is a double of what CUSD tried to raise with Measure A last year. One side effect of this windfall is that CUSD is most likely going to remain an LCFF district and not move to a community funded model this year, as their CFO previously announced. In their last failed attempt to pass a parcel tax CUSD board conflated school closures with alleged financial dire straits, which created a lot of confusion in the community and I believe was one of the several factors that led to the failure of Measure A. It took some time for the truth to come out - school closures were planned well before Measure A, with Lori Cunningham being the main architect of the closures, and money was never the reason. It was just too tempting to use school closures as a boogieman to pass a parcel tax. To be very clear here - school closures were never about money. It’s always been about decline in enrollment, which was exacerbated by this board. CUSD set an anti-record of the sharpest enrollment decline in the county. And to add insult to injury, all this happened while the number of kids per household in our district actually increased. Despite all claims by CUSD board and administration about being close to insolvency, they finally managed to implement the long overdue salary raises for both teachers and non- certificated staff without breaking the bank. That, combined with the latest announcement by the governor about an unprecedented increase in funding for public schools finally puts the argument about CUSD’s financial difficulties to rest. Another myth perpetuated by the CUSD administration and on social media is that housing issues are the root cause of the enrollment decline. The facts, however, are debunking this myth. We see a healthy turnover in housing, and new families are moving into the district all the time. However, after paying $2-3M for a house, these families prefer to send their children to private schools that offer quality education, stability for the kids and none of the drama. Hopefully with the influx of the new state funds CUSD can finally stop wasting time on politics and focus on improving the education quality to stop losing students to private schools. -- Ivan -- You received this message because you are subscribed to the Google Groups "CUSD Parents" group. To unsubscribe from this group and stop receiving emails from it, send an email to cusd- parents+unsubscribe@googlegroups.com. To view this discussion on the web visit https://groups.google.com/d/msgid/cusd- parents/e8cb1000-eda9-4438-8cd8-7be60ed21267n%40googlegroups.com. From:Jean Bedord To:Liang Chao Cc:Cupertino City Manager"s Office; City Clerk Subject:Re: Oral Communications for May 19 Council meeting: Need for new city hall in CIP / Work Plan Date:Thursday, May 19, 2022 3:16:55 PM CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Vice Mayor Liang Chao, Hmmm, it seems you overlooked the provision for a new 40,000 sq. ft. city hall (valued at $30,000,000) that was included in the Vallco Specific Plan approved in September 2018 but rescinded by this council in May 2019. The city would have shared in the total cost, but now the city has to figure out a way to finance the entire cost when construction costs are escalating. Most often, financing can't be identified until the project is at shovel-ready stage, then opportunities for federal, state, and county funding can be identified.....it may take several years, and often the funding comes after the fact, i.e. Ro Khanna's funding for the library expansion came AFTER the project was nearly completed, NOT before. "City Hall: Vallco would either (i) demolish the existing City Hall building and then build and deliver to City a 40,000 square foot “warm shell” new City Hall including underground parking, substantially consistent with the City’s 2015 civic center master plan, or (ii) pay the City a $30,000,000 in lieu payment." https://www.cupertino.org/our-city/departments/community- development/planning/major-projects/vallco/vallco-specific-plan Why isn't council asking policy questions about changes needed to transition from a sleepy suburb of 5,192 households to a medium sized high-tech city of over 25,000 households? Technology is a major driving factor, but ADA laws and seismic standards have changed since 1965. The city is legally liable for any injuries caused to the public and staff due to failure to remediate the situation. As you know, litigation has grown.....the city is currently at risk for lack of ADA compliance as well as seismic safety. It's time to move ahead and find SOLUTIONS, not complaints. Jean Bedord On Thu, May 19, 2022 at 10:55 AM Liang Chao <LiangChao@cupertino.org> wrote: Dear Mr. Bedord, Thank you for your email. Regarding your statement "The previous city council had negotiated for a new 40,000 sq. ft city hall in 2018, only to have it repealed in 2019, " it seems you are mistaken. Here is what happened: July 7, 2015 - Council adopted the Civic Center Master Plan, which includes a new city hall with added space and underground garage. August 18, 2015 - Council did not approve the $5M item start architectural design. Council asked the staff to come back with financing options. November 17, 2015 - After reviewing financing options, Council directed the staff to come back with a creative solution to keep the cost lower than $40M December 10, 2015 - The staff report concludes "Because we were not successful in our attempts to discover a project delivery process that could develop a $70 million estimated cost project for less than the maximum $40 million authorized by Council, we will not be bringing the project for further consideration unless so directed by City Council." April 3, 2018 - Agenda Item is titled "City Hall Renovation Project": "the proposed capital improvement plan for 2018-19 would include a budget for design costs of $2.1 million, followed by a budget in 2019-20 of approximately $18.9 million for construction (including staff relocations, temporary facilities, project management, contingencies, etc.)" As you can see, the previous Council (before 2018) was concerned about the cost of the new City Hall as well as the current Council. The previous City Council dropped the new City Hall in December 2015 but did not start the discussion about the renovation for retrofit until 2018, 2.5 years later. Back on August 18, 2015, the previous Council decided to NOT fund the $5M to start the design, which was based on an approved conceptual design after extensive outreach and the consideration of many options. The staff is now asking the Council to fund a $4M design of the new City Hal when the public nor the Council even had a chance to have any discussion on the conceptual design at all. Unfortunately, all this background information was not shared with the Council and the public since the $4M item (with a potential cost of $70+M later) was only listed as one item of the proposed CIP plan with a simple one-page description. And this Council has not been given any information on financing options either. Is it prudent to allocation $4M on the design of a new City Hall when the Council and the public had been given only one page of description? Liang Liang Chao Vice Mayor City Council LiangChao@cupertino.org 408-777-3192 From: Jean Bedord <Jean@bedord.com> Sent: Thursday, May 19, 2022 10:00 AM To: City Council <CityCouncil@cupertino.org>; Cupertino City Manager's Office <citymanager@cupertino.org>; City Clerk <CityClerk@cupertino.org> Subject: Oral Communications for May 19 Council meeting: Need for new city hall in CIP / Work Plan CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Dear Mayor Paul and Councilmembers, At the May 17 council meeting, I was deeply disturbed by the CIP discussion about the need for a new city hall to replace the current functionally obsolete city hall. Let me remind council of the significant changes that have occurred in our community since that building was built in 1965: 1970 census: 5,192 households with 18,216 residents 2020 census: 20,506 households with 60,381 residents - a four fold increased need for city services, including building permits and city infrastructure. 2030 anticipated with 4,588 new housing units: 25,094 households with a 22% increase in residents, estimated at 73,664 Technology has changed significantly. In 1970, we used electric typewriters. Apple computer, our flagship brand and one of the most valuable companies in the world, was founded in 1976, after our current city hall was built. Today, we use smartphones (iPhone launched 2007) and multiple computers on a day to day basis. The infrastructure requires internet connections, plus much, much more electricity and equipment to provide up-to-date services to our community. Our community wants to have hybrid city meetings - but that infrastructure requires more investment in technology. Right now, city hall experiences electrical brown-outs. Our IT department has done an amazing job of maintaining city services through the pandemic and the return to in-person. But IT is up against the proverbial capacity wall with an obsolete building. Shouldn't our city center reflect the technology leadership that Cupertino is known for? Shouldn't it be the same quality as the library and community hall??? One of the driving factors in building a new library was the need for public access computers which were stuffed in every nook and cranny, with overloaded electrical circuits and internet connections. With architecture similar to city hall, the library board came to the conclusion that retrofitting an obsolete building would have been a colossal waste of public money. Cupertino outgrew its library just as it has outgrown its city hall. I realize this council is uncomfortable with multi-million dollar capital projects, but FUHSD has successfully added major capital projects to all five of its campuses to maintain its reputation, so when there is political will, there are ways to finance, and council has hired a city manager who has the financial expertise. Please step up to your responsibilities to the community and fund the CIP project and council Work Plan to move ahead and explore all options for building a new city hall. The previous city council had negotiated for a new 40,000 sq. ft city hall in 2018, only to have it repealed in 2019. Now it's time for this city council to move ahead with using EXISTING reports and explore options for a new building which also addresses the parking needs of the expanded library. Warm regards, Jean Bedord Former library commissioner From:Liang Chao To:Jean Bedord; Cupertino City Manager"s Office; City Clerk Subject:Re: Oral Communications: City Council meeting, May 19, 2022 Date:Thursday, May 19, 2022 3:52:40 PM Great. Thank you for your support. In fact, I am honored that FUHSD Superintendent Polly Bove invited to be one of the signers of the Measure G ballot arguments. I do support Measure G since FUHSD asked for a moderate amount that’s reasonable. Liang Liang Chao​ Vice Mayor City Council LiangChao@cupertino.org 408-777-3192 From: Jean Bedord <Jean@bedord.com> Sent: Thursday, May 19, 2022 3:44 PM To: City Council; Cupertino City Manager's Office; City Clerk Subject: Oral Communications: City Council meeting, May 19, 2022 CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. For the benefit of the public, this Letter to the Editor appeared in the San Jose Mercury News, today, May 19. Dolly Sandoval is a former mayor of Cupertino and a highly respected community leader. I join her in supporting Measure G for our high school district. Warm regards, Jean Bedord Cupertino resident CC 05-19-2022 Item No. 15 FY 2022-23 Proposed Budget FY 2022-23 Proposed Budget Questions and Responses & Attachments A-C Desk Item 5/18/2022 Proposed Budget Meeting Questions  1. Enterprise funds – Why isn’t Blackberry farm pool/picnic an enterprise fund? Who are we  serving/not serving along with profit and loss statement?  a. All expenses related to Blackberry Farm pool and picnic area can be found in budget unit  100‐63‐612 on pages 352‐354 of the FY 2022‐23 proposed budget. The revenue and  expenditure table shows revenues and expenditures along with any use of fund balance  or General fund subsidy (General fund costs) for 2 years of actuals along with last years  adopted budget and this year’s proposed budget. This budget currently operates in a  deficit as fee revenues are set up to only costs recover about 60% of actual costs per  City Council direction as part of the last citywide fee study. Staff is requesting additional  funds to conduct a new fee study in FY 22‐23 for City Council consideration in this year’s  budget. Based on research conducted, the FY 2007‐08 budget document appears to  recommend the movement of this operation from an Enterprise Fund to the General  Fund because it was not self‐sustaining at that time. Given that currently you can view  the profit and loss easily in the budget we have not transitioned this back to an  enterprise fund. Also, it still requires a subsidy.    b. Information regarding resident/non‐resident use will be brought back at the June 7,  2022 Council meeting  2. Pg 37. Number 844 traffic engineering is a special project that hasn’t been decided. What is that  $80k item?  a. As described on Page 7 of Attachment S (FY 22‐23 Proposed Budget Questions and  Responses, Agenda Item 15 of the May 19, 2022 City Council meeting), the Final Budget  will incorporate any changes approved by City Council as part of the City Work Program.  The $80,000 project is for Vision Zero (WP22‐015). It was approved as part of the City  Work Program on May 17, 2022, and will remain in the budget.  3. The Monthly Treasurer report which you presented to the Audit Committee showed the various  fund balances for January, February, and March 2022, however they did not seem to match with  the fund balances in the Proposed Budget. For example, there is a great discrepancy for the Park  fund in the Proposed Budget and in the March 2022 report (off by about $20M). Please show a  table of each and explain what has happened to change the totals, such as the infusion of funds  from the Westport Project for parks, and for this particular item it would really help if the public  is shown what zone it is intended for, and what the zones mean (because this is all new  information for the public and will help).  a. The proposed budget presents year‐end projections, whereas the monthly treasurer’s  reports present year‐to‐date actuals.  b. Year‐end projected fund balance for FY 2021‐22 is calculated as the beginning fund  balance as of July 1, 2021, plus projected FY 2021‐22 revenues minus projected FY 2021‐ 22 expenditures.  c. Year‐end projected revenues and expenditures estimate the revenues the City expects  to receive and the expenditures the City expects to spend. Projections are based on the  amended budget, year‐to‐date actuals, and historical trends.  d. The year‐to‐date actual fund balance as of March 31, 2022, is calculated as the  beginning fund balance as of July 1, 2021, plus year‐to‐date actual revenues minus year‐ to‐date actual expenditures.  5/18/2022 Proposed Budget Meeting Questions  4. Missing in budget is certain policies, City of Chico’s budget includes BP‐9 and BP‐10 related to  expenditure control. Would like this guidance and policy include in our budget.   a. It appears Chico lists administrative, financial, and human resources policies. The City’s  current budget policies can be found in the City’s financial policies sections. This  includes the City’s budget transfer and amendments, Capital Funding, Fund Balance,  Community Funding and IT equipment replacement policy.  b. Staff can work to include additional policies and revision dates in the FY 2023‐24  Proposed Budget.   5. Slide 28 –shows a decrease due to historical society? What is historical society? Is there a  subcommittee and when will a report be brought forward?  a. The Cupertino Historical Society has been collecting and archiving items that document  the community’s past since 1966. The Cupertino Historical Society has been awarded  funding through the Community Funding Grant Program since 2015. As part of the FY  2019‐20 budget approval process at the June 18, 2019, City Council meeting, Council  unanimously approved to designate an annual amount of $20,000 as a base (or line)  item for the Cupertino Historical Society.  b. The Staff Report from FY 2021‐2022 Community Funding Item with Historical Society  background (Attachment A).   c. A Council Subcommittee was formed at the June 4, 2021, City Council meeting. The  Historical Society information is currently planned for the June 7 City Council meeting.  6. Council and commission expenditures – not an accurate reflection of salaries and benefits   a. Council allocations has personnel costs   Staff costs include all staff that may assist the City Council on a day‐to‐day basis. We can  create a new budget program called City Council Support and move all salary and  benefits associated with support staff to the new program. Then, the City Council  budget would only show City Council’s costs. The overall department budget would  remain unchanged.     As requested, the table below shows the City Council & Commissions budget broken  down into three sections:   City Council (salary and benefits for City Council members)   City Council Support (all salary and benefits for staff supporting City Council)   Commission Support (all salary and benefits for staff supporting commissions,  committees, and sister cities)     5/18/2022 Proposed Budget Meeting Questions     Benefitted  Positions Compensation  Benefits  Total  Compensation and  Benefits  City Council  5  $47,284  $96,986  $144,270  City Council  Support 0.85  $92,791  $61,893  $154,684  Commissions,  Committees, and  Sister Cities  Support  1.43  $212,237  $103,512  $315,749  Total Council and  Commissions 7.28  $352,312  $262,391  $614,703    b. Request to reflect how much is going into each of the depts by comp and benefits      7. Community Funding policy – What is the source of the policy? What is the revision date, year it  was approved and who approved it?   a. The Community Funding Policy was originally adopted in FY 2012‐2013  b. Most recent amendments: City Council Minutes from December 1, 2020 Meeting  (Attachment C)     5/18/2022 Proposed Budget Meeting Questions  8. Where do we sit in the market compared to other jurisdictions in turnover since 2018 to the  present?   a. Staff is pulling data from other Santa Clara County cities. Staff expects to have these  comparisons as part of the June 7, 2022, Final Budget hearing.   Vallco Town Center/Funds  9. In 2019, there are more Vallco expenses and revenues which we need to see a complete tally. It  shows $14.7 mil in expenses for Vallco construction plan check and $22.5 mil revenue. There are  building inspection expenses of $5.4 mil, but revenue is $7.2 mil. We were only shown one item  of $2M for rise development but no further details around it and would like to see a more  complete detail of ongoing Vallco expenses. How are these special projects being accounted for  in the long term? There are some ongoing projects, but for other one‐time projects, what  happened to them in 2019, as it’s not included in the book but showed up in special projects  update which is confusing.    a. Contracts for the Vallco SB35 project were approved at the February 18, 2020, City  Council meeting. (Refer to attachment B)  b. On March 3, 2020, funding for the budget related to these contracts was approved as  part of the mid‐year financial report.  c. No other adjustments have been made to these contracts/budget to date.   d. The costs related to these contracts are carried over at year‐end into the new fiscal  year. The detail related to which project this revenue gets allocated to is held in the  City’s permitting system and kept in summary in the City’s financial system. The detail is  still held in the permitting system, but staff is working on translating it into isolated  Vallco revenue accounts (as shown below) in the financial system.   e. Expense account 750‐067 Special Projects VTC includes Community Development and  Public Works and will be accounted for in the following revenue accounts 410‐440  Licenses and Permits VTC Plan Check, 410‐441 Licenses and Permits VTC Inspections,  and 450‐407 Charges for Services VTC Engineering. Community Development and Public  Works have expended and received the following:    Budget Unit  Expenses* as of 4/30/22  Revenues* as of 4/30/22  100‐73‐714 (CDD) $42,835.63 $141,250.24  100‐73‐715 (CDD) $0 $83,902.69  100‐82‐804 (PW) $25,820 $0  *Timing of revenue and offsetting expenditures may lag due to when fees are collected and when inspections can begin.    f. The Special Projects FY 2021‐22 Update shows the FY 2021‐22 Amended Budget, so it  includes projects that were carried over from prior fiscal years. The FY 2021‐22 Adopted  Budget only includes new appropriations approved. Carryovers are not requested in the  Proposed Budget, since the appropriations were already approved.     5/18/2022 Proposed Budget Meeting Questions  10. I would like an update regarding the Vallco items shown here because it appears there have  been a significant amount of revenues and much lesser expenses which the update on the  agenda yesterday did not reflect (I mentioned them during the meeting and am pasting the  table from the meeting information you referenced from March 3, 2020 or possibly 2019, for  Council, pardon the formatting issues):   a. Answered above   Account Totals/Balances  11. There was an update to the Audit Committee which showed most of the City’s various account  balances for December, 2021, however there may be some checking accounts which were not  included. During the Monthly Treasurer’s Report Subcommittee meeting it was indicated by  Kristina that there are 3 checking accounts, which I was unaware of. I would like to know the  names, types, and totals of all the City’s accounts, in case we are missing some old accounts or  overlooked anything.  a. Starting April 2022, the Monthly Treasurer’s Investment Report will include account  statements for the City’s checking accounts. The City has the following checking  accounts:   Wells Fargo Operating Account   Wells Fargo Workers’ Compensation Account   Wells Fargo Payroll Account   Wells Fargo Flexible Spending Employee Benefits Account (employee  contributions to Flexible Spending Accounts)  Fund Totals  12. I am concerned that we have a considerable amount of funds already accounted for (Park,  Capital Improvements, etc.) and perhaps I am missing an account, but it does seem that there is  no available funding for many proposed projects in the CIP. I think the funding sources need to  be better explained because, between the potential reduction in sales tax and the funds already  designated to various categories (e.g. parks), I am not sure that several projects can or should be  entertained for discussion. The CIP, in particular, must identify funding sources and I would  assume this would be utilizing the variously already earmarked amounts (which I see at least  potentially 3 distinct funds the City has), but beyond these amounts, there does not appear to  be a source of funding, and items will need to be judiciously removed? My concern is that we  cannot afford many things.  a. Please refer to the Fiscal Impact Section of the CIP report. As described in the CIP staff  report, $13.6 million in fund balance ($4.0 million in Capital Improvement Fund and $9.5  million in Capital Reserve) is expected to be available as of 7/1/2022.      5/18/2022 Proposed Budget Meeting Questions      *For reporting purposes, this fund rolls up/combines with Fund 420.    b. The Proposed Budget shows Projected Fund Balance, which is a year‐end projection that  takes into account how much is expected to be received and expended by the end of  the fiscal year. It projects year‐end revenues and expenditures based on actuals to date.  c. The Amended Budget Fund Balance assumes all Amended Budget revenues will be  received and all Amended Budget expenditures will be expended.  Fund Projected Fund  Balance as of 7/1/2022  Amended Budget Fund  Balance as of 7/1/2022  280 Park Dedication  $2,175,440  $2,175,440  420 Capital Improvement Fund  $30,841,037  $4,033,422  429 Capital Reserve*  $9,546,568  $9,546,568  CITY COUNCIL STAFF REPORT Meeting: June 1, 2021 Subject Recommendation from the Parks and Recreation Commission to approve funds in the amount of $92,900 for the Fiscal Year (FY) 2021-22 Community Funding Grant Program; annual funding for the Cupertino Historical Society in the amount of $20,000; and approval of final funding amounts for the Community Funding Program, to be included in the Recommended Budget for FY 2021-22. (Continued from May 18). Recommended Action Consider the recommendation from the Parks and Recreation Commission to approve funds in the amount of $92,900 for the FY 2021-22 Community Funding Grant Program and consider annual funding for the Cupertino Historical Society in the amount of $20,000. Determine and approve final funding amounts for the Community Funding Program, to be included in the Recommended Final Budget for FY 2021-22; and provide direction to staff. The item was initially included in the May 18, 2021 City Council meeting agenda and was continued to the June 1, 2021 meeting. Written communications for the item from the May 18 meeting have been included in the staff report (Attachment A) Discussion Background The Community Funding Grant application process opened in January and closed on February 1, 2021. The City received 17 applications for the FY 2021-22 Community Funding Grant Program application cycle. Staff reviewed all submitted applications for completeness and preliminary eligibility (Attachment A). The 17 applicants had the opportunity to attend the March 4 Parks and Recreation Commission meeting, provide additional information on their request, and answer any clarifying questions from the Commission. Evaluation Process At the April 1 regular meeting, the Parks and Recreation Commission facilitated the evaluation process and provided a funding recommendation to City Council. After receiving public comment on the item, the Commissioners each completed an evaluation form (Attachment B) before providing their total out of 100 for each application. Staff received the totals from each Commissioner and compiled them into the evaluation totals form (Attachment C), which the Commission used to discuss and determine their recommendation to Council. Eligibility After initial review of the 17 submitted applications, seven applications fully met eligibility requirements and ten applications were pending eligibility, requiring further consideration by the Commission. This is reflected in the Community Funding Applications Summary (Attachment D). Final eligibility was determined by the Commission during the evaluation process. The Commission agreed to provide rankings for all organizations, and deemed all eligible, except for the Silicon Valley Jewish Film Festival and Diwani Academy of Percussion Music in the United States. This decision was based on the Community Funding Grant Policy (Attachment E) restrictions/guidelines that note admission to or participation in the organization’s event must be “free of charge” to Cupertino residents, unless stated in the application and approved by the Parks and Recreation Commission. Parks and Recreation Commission Funding Recommendation to City Council The Commission carried a motion with 4 votes yes and one recusal to recommend to City Council funding for the following organizations at a total of $92,900: West Valley Community Services of Santa Clara County, Inc. - $10,000 Cupertino Library Foundation - $15,000 Buddhist Tzu Chi Medical Foundation - $7,400 Santa Clara Valley Audubon Society - $8,500 Friends of Deer Hollow Farm - $7,000 Chinese American Coalition for Compassionate Care - $12,000 Valkyrie Robotics - $3,000 Tian Hong Foundation - $3,000 Rotary Club of Cupertino - $12,000 Euphrat Museum of Art - $15,000 The Commission considered the suggested funding range of $70,000 to $90,000 when providing their recommendation. The suggested funding range was included in the most recent version of the Community Funding Grant Policy, which was adopted by City Council at their December 1, 2020 meeting. The Commission noted that following procedures from past years, it is anticipated that City Council will consider funding for the Cupertino Historical Society as a separate line item within the Community Funding Program budget, in addition to the Commission’s funding recommendation. Cupertino Historical Society Background The Cupertino Historical Society has been awarded funding through the Community Funding Grant Program since 2015. As part of the FY 2019-20 budget approval process at the June 18, 2019 City Council meeting, Council unanimously approved to designate an annual amount of $20,000 as a base (or line) item for the Cupertino Historical Society. These funds are to be designated in the Community Funding Grant Program budget as their own line item. Below is a breakdown of the Historical Society’s previously awarded funds through the Community Funding Grant Program: 2015 - $10,000 2016 - $15,000 2017 - $15,000 2018 - $15,000 2019 - $20,000 (individual budget line item) 2020 - $20,000 (individual budget line item) Current Considerations The Historical Society is required to submit a grant application each year outlining how they anticipate utilizing funds (Attachment F), as well as a financial report at the end of each fiscal year, detailing how funds were used (Attachment G). At their December 1, 2020 meeting, City Council reviewed the Community Funding Grant Policy and requested to add funding of the Historical Society as a future agenda item for discussion. The policy is currently being reviewed and will be brought to Council for their consideration prior to the FY 2022-23 Community Funding Program cycle. The $20,000 funding towards the Cupertino Historical Society, in addition to the Commission’s recommended funding amount of $92,900 would result in a total Community Funding Program budget of $112,900 for Fiscal Year 2021-22. Sustainability Impact No sustainability impact. Fiscal Impact If Council approves the Parks and Recreation Commission’s recommended funding amount of $92,900, the total Community Funding Program budget for Fiscal Year 2021-22 would total $112,900, including $20,000 allocated to the Cupertino Historical Society. Final funding amounts for the Community Funding Program will be included in the Recommended Final Budget for FY 2021-22. ___________________________________ Prepared by: Rachelle Sander, Assistant Director of Parks and Recreation Whitney Zeller, Administrative Assistant Reviewed by: Joanne Magrini, Director of Parks and Recreation Approved for Submission by: Dianne Thompson, Assistant City Manager Attachments: A – Written Communications 5.18.21 City Council Meeting Item 18 B – Community Funding Applications and Preliminary Eligibility Evaluations C – Commissioner Community Funding Evaluation Form D – Evaluation Totals and Parks and Recreation Commission Recommendation E – Community Funding Applications Summary F – Community Funding Grant Policy G – Historical Society Grant Application FY 2021-22 H – Historical Society Financial Report (FY 2019-20) CITY COUNCIL STAFF REPORT Meeting: February 18, 2020 Subject Award of Construction Inspection Services, Plan Review Services, and Public Works Inspection Services contracts for the Vallco SB35 project. Recommended Action: 1. Authorize the City Manager to award a 3-year contract to 4LEAF, Inc. (4LEAF) to provide Construction Inspection Services and Public Works Inspection Services for a not to exceed contract price of $7,407,710 for the Vallco SB35 project. 2. Authorize the City Manager to award a 3-year contract to CSG Consultants, Inc. (CSG), for a not to exceed contract price of $1,149,983 for plan review services for the Vallco SB35 project. 3. Authorize the City Manager to award a 3-year contract to Independent Code Consulting, Inc. (ICCI) for a not to exceed contract price of $13,500,000 for plan review services for the Vallco SB35 project. Discussion: On February 4, 2020, City Council reviewed the recommendation to award contracts for three consulting firms to provide Professional Plan Review and Inspection Services for the Vallco S35 project. The February 4th staff report is included as attachment A. Councilmembers made several recommendations to amend specific language in the contracts to ensure transparency in the construction and inspection phase of the project. Councilmembers also requested changes to the contract attachments, including the project description, to provide consistency. As a result of the comments made by Councilmembers at the public hearing, staff revised contract provisions for Time of Performance, Invoices and Payments, Property Rights, and Records. Staff also worked with each of the consultants to provide a consistent Project Description and Scope of Services terms, attached as Exhibit A to each of the contracts, as well as consistent Compensation terms, included as Exhibit B to each of the contracts. The updated contracts are included as Attachments B, C, and D to this report. GREEN ROOF DESIGN A discussion related to the design, review and approval of the Vallco SB35 project green roof was brought up at the meeting. The green roof is being designed as a seismically isolated structure by the integrated architecture, civil, geotechnical, and engineering firms to ensure that the green roof systems maintain structural stability, are structurally isolated in an earthquake, have a reinforced soil stabilization design to prohibit sliding of landscaping, proper drainage, recycled water irrigation with good soil percolation, and robust waterproofing. Along with Rafael Vinoly Architects, the developer’s design team is comprised of two structural engineers, Nabih Yousef Associates and DCI Engineers, Olin Landscape, Sandis Civil Engineering, ME Engineers, Allana Buick & Bers Engineering, Langan Geotechnical Engineering, and a third-party seismic peer review panel. A selected list of large-scale projects that feature landscape over structure in the portfolio of the design team include:  Apple Park, Cupertino  New Stanford Hospital, Palo Alto  UCSF Ray and Dagmar Dolby Regeneration Medicine Building, San Francisco  Pershing Square, Los Angeles  Rockefeller University, New York  Howard Hughes Medical Institute, Virginia  The Getty Center, Los Angeles  Battery Park City, New York  Canary Wharf, London  Bryant Park, New York  The Church of Jesus Christ of Latter-Day Saints Conference Center, Salt Lake City  Columbus Circle, New York  Philadelphia Museum of Art Sculpture Garden, Philadelphia  Dilworth Park, Philadelphia  Carnegie Hall Roof Terrace, New York The City’s proposed building plan review firm, CSG Consultants Inc., has extensive experience in plan review of projects with systems and components similar to those on the Vallco SB35 project. For example, CSG has performed structural plan review on the elevated landscape system successfully implemented at Apple Park in Cupertino. In addition to the plan review of green roofs and elevated landscape systems, their licensed engineers have experience designing these types of systems and are well qualified to perform careful and detailed review of the design. The City’s proposed building and public works plan review firm, Independent Code Consultants, Inc., also has the expertise to ensure rainwater does not pond by verifying there is an inlet within each drainage shed, landscape areas are designed with the acceptable slope and flow toward inlets, and that there is an appropriate overland release for large storm events. Inlets depicted on the roof plans are represented on the mechanical, electrical and plumbing plans. Walking pathways on the green roof are designed and reviewed to meet ADA and T24 California accessibility requirements. FEE REVENUES At the February 4th meeting, Councilmembers also asked for information about City costs that the pass through fees pay for. Each year the City adopts a Fee Schedule that lists fees for numerous services and permits provided by City departments. The Engineering and Building fee schedules for building and public works permits is available here: https://www.cupertino.org/our- city/departments/community-development/building/building-forms-fees. These fees apply to all projects seeking these permits, including the Vallco SB35 project. A user fee study was completed by the Matrix Consulting group in April 2016 to determine the full cost of various permitting services provided by the City. The fee study is attached to the April 5, 2016 City Council agenda packet. Based upon this study, Engineering, Building, and Planning fees were approved by Council to fully recover costs, thus fees charged are estimated to cover costs to provide the services and no more. Costs included in the fee study’s calculation include: Cost Component Description Direct Salaries, benefits and allowable departmental expenditures for staff processing the permits. Departmental Overhead Division or Departmental administration / management and clerical support. Citywide Overhead City costs associated with central service costs such as payroll, human resources, budgeting, City management, etc. Cross- Departmental Support Costs associated with review or assistance by other departments in permit review. In subsequent years these fee rates have been increased by the Consumer Price Index (CPI), Construction Cost Index (CCI), or by actual increases in salary and benefit changes as appropriate. The next user fee study is scheduled to occur in 2023 per the April 5, 2016 staff report. Of the fees collected for the Vallco SB35 building and public work permit applications, the Plan Review consultants will receive 65% of the calculated plan review fee while the City will collect the remaining 35%. The Inspection firm will receive 75% of the calculated building permit fees while t he City will collect the remaining 25%. Public Works inspections will be performed on a time and materials basis and the developer will provide a deposit account for the City to draw from to pay for these services. As indicated in the fee study, the City’s portion of the plan review and inspection fees will be used to fund associated City staff time and overhead. This includes building and public works staff time (including salaries and benefits) and expenses to administer review of the permit applications, coordinate with consultants and the applicant, and perform the final review of all reviews and checks performed by the City’s consultants. Collected fees will also fund additional permit review by staff from other departments, such as planning, and support services provided by the Department of Administrative Services, City Manager’s office, and City Attorney’s office. Finally, fees will fund a portion of the City’s departmental and citywide overhead. PROCESSING VALLCO SB35 PROJECT PERMIT APPLICATIONS At the February 4th Council meeting, there were also questions about the timing of the City’s processing of permits for the Vallco SB 35 Project. Since October 2018, the developer has submitted applications for 8 separate demolition permits and 5 separate construction permits for the Project. The City has prioritized its review of these permit applications to accommodate the developer’s planned demolition and construction sequencing. Accordingly, the City’s work in 2019 focused on the demolition phase of the project. To date, the City has issued 7 out of the 8 demolition permit applications it has received. The last remaining demolition permit is for the demolition of the Wolfe Road Bridge Structure, which is in the review process and is currently with the applicant to respond to comments. For the construction permit applications, the City has been prioritizing review of permits for other site ready work. The City is currently prepared to issue permits for Make-Ready Utility work pending final submittals by Vallco. This work includes the relocation and demolition of existing utilities to prepare the site for the proposed development. At the same time, the City has been preparing for the third-party building and public works plan review and inspection services that will be necessary to process other pending and anticipated construction permits as the project moves into the construction phase. Thus, last year the City conducted a competitive procurement process for these services through a Request for Proposals and subsequent interviews. Once the preferred vendors were selected, the City began negotiations with the consultants over payment structures. The City also worked with the consultants to establish in advance processes and procedures to ensure the review process will be as efficient and effective as possible utilizing methods learned from the Apple Park project. The consultants are now ready to immediately begin plan review of other pending applications after City Council approv al of the contracts for this item. Sustainability Impact: No sustainability impact. Fiscal Impact: The City will not incur a net fiscal impact. The City will be receiving permit, plan check, and inspection fees and deposits from the developer. These fees and deposits will be recorded in specific liability and revenue accounts. From the deposits and revenues received, a portion (65%-75%) will be used for permit, plan check, and building inspections performed by Consultants and expensed accordingly in specific accounts. Deposits for Public Works inspections will be used for consultant inspections expensed on a time and materials basis. _____________________________________ Prepared by: Albert Salvador, Assistant Director of Community Development Reviewed by: Benjamin Fu, Director of Community Development Approved for Submission by: Deborah L. Feng, City Manager Attachments: A – February 4, 2020 Staff Report for Plan Review and Inspection Services B – Services Agreement – CSG Consultants, Inc. C – Services Agreement – Independent Code Consultants, Inc. D – Services Agreement – 4LEAF, Inc. APPROVED MINUTES CUPERTINO CITY COUNCIL Tuesday,December 1,2020 SPECIAL MEETING At 5:30 p.m.Mayor Steven Scharf called the Special City Council meeting to order.This was a teleconference meeting with no physical location. ROLL CALL Present:Mayor Steven Scharf,Vice Mayor Darcy Paul,and Councilmembers Liang Chao,Rod Sinks,and Jon Robert Willey.Absent:None.All Councilmembers teleconferenced for the meeting. STUDY SESSION 1. Subject: Study Session on Climate Action Plan 2.0 initial draft goals and vision statement Recommended Action:Provide input and direction on the Climate Action Plan 2.0 initial draft goals and vision statement Written communications for this item included a staff presentation. Sustainability Manager Andre Duuvoort gave a presentation. Mayor Scharf opened the public comment period and the following people spoke. Pragya Natarajan,on behalf of Cupertino High School Environmental Club, supported a climate action plan,a 2030 deadline,and incentivizing electricity. Gwyn Azar on behalf of Cupertino Youth Climate Action Team supported a climate action plan,an aggressive policy,and joining carbon neutral by 2030. Jennifer Griffin supported sustainability goals,discussions on density building issues and new HVAC technologies,and was opposed switching from gas. City Council Minutes December 1,2020 Page 2 Sophia Wang,on behalf of Cupertino Youth Climate Action Team,supported adopting a replace on burnout ordinance,rebates,and Menlo Park’s ordinance goals. Dashiell Leeds,on behalf of Sierra Club Loma Prieta Chapter,supported an ordinance like Menlo Park’s or Palo Alto’s,adopting by 2030,and moving to full electrification. Housing Commissioner Connie Cunningham representing self),supported environmental justice,carbon neutral goals,and green infrastructure. Shani Kleinhaus,on behalf of Santa Clara Valley Audubon Society,supported a climate action plan including biodiversity for nature and sustaining local species. Planning Commissioner Kitty Moore representing self)supported transitioning from wood heating,new HVAC technologies,and improving diversion rates of recyclables. Mayor Scharf closed the public comment period. Councilmembers asked questions and made comments. There was overall support to explore aggressive climate action goals if the data analysis is supportive and substantive. ADJOURNMENT REGULAR MEETING At 6:45 p.m.Mayor Steven Scharf called the Regular City Council meeting to order.This was a teleconference meeting with no physical location. ROLL CALL Present:Mayor Steven Scharf,Vice Mayor Darcy Paul,and Councilmembers Liang Chao,Rod Sinks,and Jon Robert Willey.Absent:None.All Councilmembers teleconferenced for the meeting. CEREMONIAL MATTERS AND PRESENTATIONS POSTPONEMENTS City Council Minutes December 1,2020 Page 3 1. Subject:Municipal Code Amendments to update existing Mobile Vending regulations, including but not limited to regulations in Chapter 5.48,and potential conforming edits to other chapters in the Municipal Code,including in Titles 5,11,13 and 19.Application No(s).:MCA 2020 004;Applicant(s):City of Cupertino;Location:citywide.This item has been continued to December 15. 2. Subject:Approving City of Cupertino 2020 Transportation Impact Fee Nexus Study Update,increasing the Transportation Impact Fees,and amending Schedule B of the 2020 21 Fee Schedule to incorporate the increased fees.This item has been continued to December 15. City Clerk Kirsten Squarcia noted that This item has been continued to January 19 instead of the December 15 date noted on tonight’s agenda. ORAL COMMUNICATIONS Written Communications for this item included an email to Council. Jennifer Griffin was concerned about the process for funding and introducing housing bills and loss of local control and supported greater transparency. Michael Haas,on behalf of Charlene Lee,was concerned about the November 3,2020 election results,her candidate biography posting on the City website,and development within the City. Rhoda Fry was opposed to naming city buildings after individuals and honorary plaques in recognition of city leaders including the Library expansion project. Viggie34 talked about taking photos of a homeless encampment next to Vallco,his interaction with encampment residents and the police,and his plans to file a lawsuit for compensation. Charlene Lee was concerned about the conduct and results of the November 3,2020 election, her candidate biography posting on the City website,and collection of her campaign signs. REPORTS BY COUNCIL AND STAFF 10 minutes) 3. Subject:City Manager update on emergency response efforts Recommended Action:Receive City Manager update on emergency response efforts City Council Minutes December 1,2020 Page 4 City Manager Deborah Feng reported on the State’s COVID 19 tier guidelines and Cupertino case counts and testing opportunities;Parks and Recreation activities;and a homeless encampment update regarding outreach and engagement for unhoused residents. Council received the City Manager update on emergency response efforts. 4. Subject:Report on Committee assignments Recommended Action:Report on Committee assignments Councilmembers highlighted the activities of their various committees. CONSENT CALENDAR Scharf moved and Sinks seconded to approve the items on the Consent Calendar except for Item No.8 which was pulled for discussion.Ayes:Scharf,Paul,Chao,Sinks,and Willey.Noes: None.Abstain:None.Absent:None. 5. Subject:Approve the November 17 City Council minutes Recommended Action:Approve the November 17 City Council minutes 6. Subject:Approve the November 19 City Council minutes Recommended Action:Approve the November 19 City Council minutes 7. Subject:Set hearing date on January 19,2021 to declare a public nuisance from weeds) and to consider objections for proposed removal;declare properties as having potential fire hazards from weeds or other potential nuisances for the Cupertino Weed Abatement Program. Recommended Action:Adopt Resolution No.20 136 declaring properties as having potential fire hazards from weeds or other potential nuisances;and set hearing on January 19,2021 to declare a public nuisance and to consider objections for proposed removal. 8. Subject:Mitigation Fee Act Annual Five Year Report Fiscal Year 2019 2020 Recommended Action: 1.Accept the Annual Five Year Review of the City of Cupertinos Development Impact Fees Government Code Section 66000 et seq.);and 2. Adopt Resolution No 20 137 entitled A Resolution of the Cupertino City Council Approving the Annual Five Year Development Impact Fee Report for FY Ending June 30,2020 and Making Required Findings. City Council Minutes December 1,2020 Page 5 Scharf moved and Willey seconded to: 1.Accept the Annual Five Year Review of the City of Cupertinos Development Impact Fees Government Code Section 66000 et seq.);and 2. Adopt Resolution No 20 137 entitled A Resolution of the Cupertino City Council Approving the Annual Five Year Development Impact Fee Report for FY Ending June 30,2020 and Making Required Findings. The motion carried unanimously. 9. Subject:Consider changes to the part time salary schedules for classifications and job series impacted by minimum wage adjustments. Recommended Action:Adopt Resolution No.20 138 establishing changes to part time salary schedules for classifications impacted by minimum wage adjustments and realign wage increases with position advancement. SECOND READING OF ORDINANCES 10. Subject:Second reading of Ordinance No.20 2216 to amend Cupertino Municipal Code Chapter 2.40 concerning the Disaster Council and the emergency management program). Recommended Action:Conduct the second reading and enact Ordinance No.20 2216: An ordinance of the City Council of the City of Cupertino amending Cupertino Municipal Code Chapter 2.40 concerning the Disaster Council and the Emergency Management Program).” City Clerk Kirsten Squarcia read the title of Ordinance No.20 2216:An Ordinance of the City Council of the City of Cupertino amending Cupertino Municipal Code Chapter 2.40 concerning the Disaster Council and the Emergency Management Program).” Scharf moved and Willey seconded to read the title of Ordinance No.20 2216 by title only and that the City Clerk’s reading would constitute the second reading thereof. Ayes:Scharf,Paul,Chao,Sinks,and Willey.Noes:None.Abstain:None.Absent:None. Scharf moved and Willey seconded to enact Ordinance No.20 2216. Ayes:Scharf,Paul,Chao,Sinks,and Willey.Noes:None.Abstain:None.Absent:None. PUBLIC HEARINGS City Council Minutes December 1,2020 Page 6 11. Subject:Municipal Code Amendments to adopt glazing and lighting regulations to implement the Fiscal Year 2019/20 City Council Work Program items related to Dark Sky and Bird Safe Design.Application No.MCA 2019 003 and MCA 2019 004; Applicant:City of Cupertino;Location:City wide) Recommended Action:That the City Council: 1. Find the proposed actions are exempt from CEQA;and, 2. Conduct the first reading of Ordinance No.20 2217 An Ordinance of the City Council of the City of Cupertino Amending City Code to Add Chapter 19.102:Glass and Lighting Standards and to Amend Chapter 19.08 Definitions,Chapter 19.40 Residential Hillside RHS)Zones,Chapter 19.60 General Commercial GC)Zones, Chapter 19.72 Light Industrial ML)and Industrial Park MP)Zones,and Chapter 19.124 Parking Regulations to Implement Bird Safe and Dark Sky Policies.” Attachment A) Written communications for this item included a staff presentation and emails to Council. Planning Manager Piu Ghosh and Senior Planner Erick Serrano gave a presentation. Mayor Scharf opened the public hearing and the following people spoke. Jill Halloran supported dark skies and bird safe design. Shani Kleinhaus,on behalf of the Santa Clara Valley Audubon Society,supported the Dark Sky and Bird Safe Design Ordinance Housing Commissioner Connie Cunningham representing self)supported the Dark Sky and Bird Safe Design Ordinance Peter Friedland supported the Dark Sky and Bird Safe Design Ordinance Lisa Karpinski supported the Dark Sky and Bird Safe Design Ordinance Mike Rhode was concerned about retail risks,lighting restrictions,and security and safety,and supported postponing the item. Greg Whitney was concerned about impacts on retail and restaurants,security and safety,and uninviting lighting aspects,and supported looking at other cities first. City Council Minutes December 1,2020 Page 7 Jean Bedord was concerned tax implications on business structures,overregulating commercial activity,and conducting commercial community outreach. Dashiell Leeds,on behalf of the Sierra Club Loma Prieta Chapter,supported the Dark Sky and Bird Safe Design Ordinance. Rhoda Fry supported the Dark Sky and Bird Safe Design Ordinance. Anjali Kausar,on behalf of the Chamber Commerce,was concerned about further outreach to businesses and supported postponing the item. Rose Friedland supported the Dark Sky and Bird Safe Design Ordinance. Planning Commissioner Kitty Moore representing self)was concerned about string lighting regulations and addressing commercial area concerns. Mayor Scharf closed the public hearing. Council recessed from 8:30 p.m.to 8:35 p.m. Councilmembers asked questions and made comments. Paul moved to call the question.The motion carried with Sinks voting no. Paul moved and Chao seconded to continue this item until December 15.The motion carried with Sinks voting no. ORDINANCES AND ACTION ITEMS 12. Subject:Updated Administrative Procedures Within the Community Funding Grant Policy. Recommended Action:Review and adopt updated administrative procedures within the Community Funding Grant Policy,including an earlier submission date for applications,program funding range,and affirmation that all qualified applicant materials will be brought to City Council. Written communications for this item included a staff presentation,Amended Attachment B Community Funding Policy redline version),and Amended Attachment C Community Funding Policy clean version). City Council Minutes December 1,2020 Page 8 Director of Parks and Recreation Joanne Magrini gave a presentation. Councilmembers asked questions and made comments. Scharf moved and Sinks seconded to adopt updated administrative procedures within the Community Funding Grant Policy,including an earlier submission date for applications,program funding range,and affirmation that all qualified applicant materials will be brought to City Council.The motion carried unanimously. ORAL COMMUNICATIONS CONTINUED As necessary) COUNCIL AND STAFF COMMENTS AND FUTURE AGENDA ITEMS Added a future agenda item to discuss nonprofit funding as a line item in the budget Chao/Scharf) Added a future agenda item to review existing policy for naming public buildings, donations,and recognition strategies Chao/Scharf) ADJOURNMENT At 10:13 p.m.,Mayor Scharf adjourned the meeting. Kirsten Squarcia,City Clerk