Cupertino City Council
March 1, 2022

CITY OF CUPERTINO
CITY C
OUNCIL
AGENDA
This will be a teleconference meeting without a physical location.

Tuesday, March 1, 2022
5:30 PM
Televised Special Meeting Study Session (5:30) and Regular City Council Meeting (6:45)

TELECONFERENCE / PUBLIC PARTICIPATION INFORMATION TO HELP STOP THE SPR
EAD OF COVID-19
In accordance with Government Code 54953(e), this will be a teleconference meeting without a physical location to help stop the spread of COVID-19.

Members of the public wishing to observe the meeting may do so in one of the following ways:
1) Tune to Comcast Channel 26 and AT&T U-Verse Channel 99 on your TV. 2) The meeting will also be streamed live on and online at www.Cupertino.org/youtube and www.Cupertino.org/webcast
Members of the public wishing to comment on an item on the agenda may do so in the following ways:
1) E-mail comments by 4:30 p.m. on Tuesday, March 1 to the Council at [email protected]. These e-mail comments will also be forwarded to Councilmembers by the City Clerk’s office before the meeting and posted to the City’s website after the meeting.
2) E-mail comments during the times for public comment during the meeting to the City Clerk at [email protected]. The City Clerk will read the emails into the record, and display any attachments on the screen, for up to 3 minutes (subject to the Mayor’s discretion to shorten time for public comments). Members of the public that wish to share a document must email [email protected] prior to speaking. 3) Teleconferencing Instructions
Members of the public may provide oral public comments during the teleconference meeting as follows:

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Oral public comments will be accepted during the teleconference meeting. Comments may b
e made during “oral communications” for matters not on the agenda, and during the public comment period for each agenda item.

To address the City Council, click on the link below to register in advance and access the meeting:

Online
Register in advance for this webinar:
https://cityofcupertino.zoom.us/webinar/register/WN_4ftuee3STO-XKtvzWFlC0Q Phone
Dial: 669-900-6833 and enter Webinar ID: 925 9084 3566 (Type *9 to raise hand to speak, *6 to unmute yourself). Unregistered participants will be called on by the last four digits of their phone number.

Or an H.323/SIP room system:

H.323:
162.255.37.11 (US West)
Meeting ID: 925 9084 3566
SIP: [email protected]
After registering, you will receive a confirmation email containing information about joining the webinar.

Please read the following instructions carefully:

1. You can directly download the teleconference software or connect to the meeting in your internet browser. If you are using your browser, make sure you are using a current and up-to-date browser: Chrome 30+, Firefox 27+, Microsoft Edge 12+, Safari 7+. Certain functionality may be disabled in older browsers, including Internet Explorer.

2. You will be asked to enter an email address and a name, followed by an email with instructions on how to connect to the meeting. Your email address will not be disclosed to the public. If you wish to make an oral public comment but do not wish to provide your name, you may enter “Cupertino Resident” or similar designation.

3. When the Mayor calls for the item on which you wish to speak, click on “raise hand,” or, if you are calling in, press *9. Speakers will be notified shortly before they are called to speak.

4. When called, please limit your remarks to the time allotted and the specific agenda topic.

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City Council A genda March 1, 2022
In compliance with the Americans with Disabilities Act (ADA), anyone who is planning to a
ttend this teleconference 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, at least 48 hours in advance of the Council meeting to arrange for assistance.

In addition, 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.

NOTICE AND CALL FOR A SPECIAL MEETING OF THE CUPERTINO CITY COUNCIL N
OTICE IS HEREBY GIVEN that a special meeting of the Cupertino City Council is hereby called for Tuesday, March 01, 2022, commencing at 5:30 p.m. In accordance with Government Code 54953(e), this will be a teleconference meeting without a physical location to help stop the spread of COVID-19. Said special meeting shall be for the purpose of conducting business on the subject matters listed below under the heading, “Special Meeting."

SPECIAL MEETING
ROLL CALL - 5:30 PM
S

TUDY SESSION

1. Subject: C onsider a Study Session on the proposed ordinance language and phasing for a Single-Use Plastics Ordinance
Recommended Action: Conduct a Study Session on the proposed ordinance language and phasing for a Single-Use Plastics Ordinance
Presenter: Ursula Syrova, Environmental Programs Manager Staff Report
A - Sustainability Commission Staff Report
B- Single-Use Plastics Ordinance Elements and Phasing
C - Single-Use Plastics Draft Ordinance
D - Single-Use Foodware Cost Comparisons

ADJOURNMENT
R

EGULAR MEETING
PLEDGE OF ALLEGIANCE - 6:45 PM
R

OLL CALL

CEREMONIAL MATTERS AND PRESENTATIONS

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1. Subject: Proclamation declaring March as Youth Arts Month on behalf of those who advocate for art education to all elementary, middle and secondary students Recommended Action: Present proclamation declaring March as Youth Arts Month on behalf of those who advocate for art education to all elementary, middle and secondary students
A - Proclamation

2. Subject: Proclamation proclaiming March as American Red Cross Month and presentation from the American Red Cross regarding local activities Recommended Action: Present proclamation proclaiming March as American Red Cross Month and receive presentation from the American Red Cross regarding local activities
A - Proclamation

POSTPONEMENTS AND ORDERS OF THE DAY
O

RAL COMMUNICATIONS
This portion of the meeting is reserved for persons wishing to address the Council on any matter within t
he jurisdiction of the Council and not on the agenda. The total time for Oral Communications will ordinarily be limited to one hour. Individual speakers are limited to three (3) minutes. As necessary, the Chair may further limit the time allowed to individual speakers, or reschedule remaining comments to the end of the meeting on a first come first heard basis, with priority given to students. In most cases, State law will prohibit the Council from discussing or making any decisions with respect to a matter not listed on the agenda. A councilmember may, however, briefly respond to statements made or questions posed by speakers. A councilmember may also ask a question for clarification, provide a reference for factual information, request staff to report back concerning a matter, or request that an item be added to a future City Council agenda in response to public comment.

REPORTS BY COUNCIL AND STAFF (10 minutes)

3. S
ubject: Brief reports on councilmember activities and brief announcements Recommended Action: Receive brief reports on councilmember activities and brief announcements

4. S ubject: Report on Committee assignments
Recommended Action: R eport on Committee assignments

5. S ubject: City Manager update
Recommended Action: Receive City Manager update on emergency response efforts and other City business

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CONSENT CALENDAR (Items 6-9)
Unless there are separate discussions and/or actions requested by council, staff or a member of the pu
blic, it is requested that items under the Consent Calendar be acted on simultaneously.

6. S ubject: Approve the February 15 City Council minutes Recommended Action: App rove the February 15 City Council minutes A - Draft Minutes

7. S ubject: Approve the February 17 City Council minutes Recommended Action: App rove the February 17 City Council minutes A - Draft Minutes

8. Subject: Consider resignation of Bicycle Pedestrian Commission member Maanya Condamoor and direct staff on filling the unscheduled vacancy Recommended Action: 1. Direct staff to initiate a special recruitment and approve the application deadline and interview date for filling the unscheduled vacancy:
a. Deadline for applications of 4:30 p.m. on Friday, April 15, 2022 and b. Applicant interview date of 5:30 p.m., Tuesday, April 26, 2022 Staff Report
A - Resignation Letter

9. Subject: Receive the Government Finance Officers Association (GFOA) Distinguished Budget Presentation Award for Fiscal Year 2021-22 Adopted Budget Recommended Action: Receive the Government Finance Officers Association (GFOA) Distinguished Budget Presentation Award for Fiscal Year 2021-22 Adopted Budget Staff Report
A - GFOA Budget Award
SECOND READING OF ORDINANCES - None
P

UBLIC HEARINGS

10. Subject: Consideration of Vacation of a Public Pedestrian Walkway Easement through Tract 9405, which runs through Campo De Lozano subdivision, located near 20138 Rodrigues Avenue.

Recommended Action: Consider conducting a public hearing, adopting Resolution No. 22-031 (Attachment A) to vacate a public pedestrian walkway easement through Tract 9405.

Presenter: Chad Mosley, Assistant Director/City Engineer Staff Report
A - Draft Resolution
B - Aerial Exhibit

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ORDINANCES AND ACTION ITEMS

11. Subject: Consider accepting the Mid-Year Financial Report for Fiscal Year 2021-22; consider adopting Resolution No. 22-032 approving Budget Modification #2122-189 increasing appropriations by $9,457,951 and revenues by $10,220,000 Recommended Action: 1. C onsider Accepting the City Manager’s Mid-Year Financial Report for FY 2021-22

2. Consider Adopting Resolution No. 22-032 approving Budget Modification #2122- 189 increasing appropriations by $9,457,951 and revenues by $10,220,000

3. Consider Approving the Conversion of (One) Limited-Term Project Manager Position to Full-Term Position.

4. Consider Approving Amendments to City's Committed, Unassigned Fund Balance, and Use of One Time Funds Policy which includes the following changes:
a. Consider Approving $2,000,000 contribution from the General Fund to the City’s Section 115 Pension Trust
b. Consider Increasing the City’s General Fund Economic Uncertainty Committed Reserve by $5,000,000
c. Consider Establishing a General Fund Capital Project Committed Reserve in the amount of $10,000,000
Presenter: Kristina Alfaro, Administrative Services Director Staff Report
A - Draft Resolution
B - Mid-Year Financial Report for Fiscal Year 2021-22
C – Mid-Year Performance Measures
D - Mid-Year Budget Adjustment Journal
E - Budget Transfers Detail as of 12.31.2021
F – Committed, Unassigned Fund Balance, and Use of One Time Funds Policy (Clean) G - Committed, Unassigned Fund Balance, and Use of One Time Funds Policy (Redline)

12. Subject: Progress update of the Housing Element Update, and review, discuss, and approve selection of stakeholders group
Recommended Action: Receive report and provide feedback on the progress, review the stakeholders selection process, and consider approval of the stakeholders group Presenter: Ben Fu, Community Development Director
Staff Report
Supplemental Staff Report Memo by EMC
A - 6th Cycle Housing Element Update—Public Engagement Activities to date B - Stakeholder group Questions
C - List of Recommended stakeholder scores and response to primary narrative question D - HCD Revision request letter for Monterey Park
ORAL COMMUNICATIONS - CONTINUED (As necessary)
C

OUNCIL AND STAFF COMMENTS AND FUTURE AGENDA ITEMS

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ADJOURNMENT
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/cityclerk for a reconsideration petition form.

In compliance with the Americans with Disabilities Act (ADA), anyone who is planning to attend this teleconference 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, at least 48 hours in advance of the meeting to arrange for assistance. In addition, upon request, in advance, by a person with a disability, meeting agendas and writings distributed for the meeting that are public records will be made available in the appropriate alternative format.

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, Cupertino, California 95014, 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 section

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. Do not include any personal or private information in written communications to the City that you do not wish to make public, as written communications are considered public records and will be made publicly available on the City website.

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CITY OF CUPERTINO
Agenda Item
21-10165 Agenda Date: 3/1/2022
Agenda #: 1.

Subject: Consider a Study Session on the proposed ordinance language and phasing for a Single-Use Plastics Ordinance
Conduct a Study Session on the proposed ordinance language and phasing for a Single-Use Plastics Ordinance
Presenter: Ursula Syrova, Environmental Programs Manager CITY OF CUPERTINO Printed on 2/23/2022Page 1 of 1
powered by Legistar™
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CITY COUNCIL STAFF REPORT
Meeting: March 1, 2022
Subject
Consider a Study Session on the proposed ordinance language and phasing for a Single - Use Plastics Ordinance.

Recommended Action
Conduct a Study Session on the proposed ordinance language and phasing for a Single - Use Plastics Ordinance.

Background
Due to concern for litter, marine impact, and chemical migration into food, Cupertino banned restaurant use of expanded polystyrene (EPS) foam foodware in 2014, joining 13 other cities in Santa Clara County who adopted similar ordinances. In 2018, a State law AB 1884 went into effect which required full-service restaurants to only provide plastic straws upon request. This law will expand under AB 1276 in June 2022 to include other accessories such as utensils and condiments at all food facilities. Beginning in January 2023, State law AB 1200 will prohibit foodware containing per - and polyfluoroalkyl substances (PFAS). A detailed history is available in Attachment A.

As shown in Figure 1, Cupertino residents and businesses discard over 300 tons of single- use foodware and expanded polystyrene packing material per year. This tonnage amount has likely increased because of the pandemic and increased takeout food orders. Th ese tonnages include foodware brought in from outside the City. 9 CC 03-01-2022
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Figure 1: Tons of single-use disposable foodware being disposed of in Cupertino by type per 2018 and 2019 waste characterization studies

While some plastic foodware containers are currently accepted as recyclable in Cupertino, recycling does not address all problems with plastics. Meanwhile, foodware containers and utensils made from polylactic acid (PLA) or other “compostable plastics” are not accepted in Cupertino’s organics recycling pro gram because they take too long to degrade. Biodegradable Products Institute (BPI) -certified compostable plastic bags are allowed for collecting food scraps. If bio -plastics are disposed in landfill they create methane as they degrade. If they are disposed of as recyclable or compostable they must be sorted out as contaminants and sent to landfill. There is no place for bio -plastics in Cupertino’s waste streams.

Fiber-based foodware items such as paper or bagasse cups and containers, and wood or bamboo utensils are accepted for composting in Cupertino’s organics program. While acceptable, they are not as nutritive for the compost process as food scraps or yard trimmings. Fiber-based items also still require resource inputs during production for just a few minutes of use. Thus, fiber-based items do not fully address environmental concerns arising from single-use foodware. Thus, shifting to reusable foodware wherever possible better addresses resource use, health, economic, and environmental concerns as fur ther described in Attachment A on page 2.

Desiring to go beyond the State laws and the City’s earlier foodware ordinance, Cupertino City Council directed that a Single-Use Plastics foodware ordinance become a City Work Program item. The goal was to reduce the use of single-use plastic foodware such as cups, plates, containers, straws, utensils, and other accessories like spill plugs and stir sticks.

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Discussion
Environmental Programs Division staff prepared proposed amendments to Municipal Code Chapter 9.15 that would enact a dramatic shift away from single -use plastic foodware and toward compliant compostable and reusable foodware. Staff is seeking input from City Council on this suite of elements and their phasing to determine the best fit for Cupertino businesses and customers.

Cupertino currently prohibits food service providers from using EPS foam foodware. The amended language proposes to expand on that by banning single -use plastic foodware from use, banning sale of bio-plastic foodware, and requiring reusables for dining in. The two phases and their elements are summarized here and presented in Attachment B, which serves as an index to the draft ordinance itself (Attachment C).

The first phase of the ordinance mirrors the requirements of State l aw AB 1276 and requires that food service ware accessories such as utensils, chopsticks, condiment cups and packets, straws, stirrers, splash sticks, and cocktail sticks be provided only upon request by customers. These requirements become effective on June 1, 2022.

The second phase of the proposed ordinance includes elements that would go into effect one year later, on June 1, 2023:

1. Prohibit the use of non-complaint food service ware by food providers:
 Continue to prohibit use of expanded polystyrene foam food service ware.  Prohibit use of single-use plastic items (even if accepted as recyclable).  Prohibit use of compostable food service ware that contains PFAS (as required by AB1200).
 Prohibit use of bio-plastics (compostable plastics).

2. Require reusable food service ware for dining on site:
 Reusable food service ware must be provided for customers dining on site at the food provider’s location. This would require sufficient dishwashing capacity or a contract with a dishwashing service.

3. Prohibit the sale of certain non-compliant foodware:
 Ban local sale of expanded polystyrene foam and bio-plastic food service ware.

4. Exemptions:
 Paper, wood, bamboo, and other fiber -based compostable food service ware items accepted in the City’s compost program would be allowed.  Containers made entirely from aluminum and aluminum foil would be allowed.
 Plastic straws would be allowed for those with medical need.  Ordinance does not apply to food prepared and packaged outside of the city. 11 CC 03-01-2022
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 Compliant single -use food service wo uld still be allowed for taking home leftovers from dine-in situations.
 Temporary exemptions allowed if additional time needed to comply.  Temporary exemptions allowed for significant economic hardship.  Temporary exemptions allowed for unique packaging hardship.  Allows for compliant paper food liners, wrappers, sleeves, bags, and foil wrappers.

Sustainability Commission Recommendation
The Sustainability Commission reviewed a larger list of proposed elements, exemptions, and phasing on January 20, 2022. The commissioners raised concerns for existing and new businesses and maintaining Cupertino as a desirable place to do business. They also expressed interest in knowing what surrounding cities have done or are planning to do.

Ultimately, they recommended the language and phasing presented to them at that time with the addition of:
 Offer technical and financial assistance to businesses during the year before enforcement to enable transition.
 Amend the City’s Single-Use Carryout Bag Ordinance to prohibit plastic bags used for takeout food orders and require produce bags to be compostable.  Enable a pilot of reusable takeout foodware in the city. Business models already exist where reusable containers are provided for takeout orders and then returned by customers, sanitized properly, and re-deployed to restaurants.

From an environmental perspective all the proposed elements originally considered and recommended are valuable. However, after further consideration of what neighboring cities have done and are planning to do, the impact of COVID on the prevalence of takeout food, and staff ability to enforce all the proposed elements, a more measured approach is recommended. The proposed approach described above would place Cupertino as a leader in Santa Clara County for reducing the prevalence of single -use plastic foodware and create a plan for future additional amendments.

Elements Recommended for Future Consideration
Incorporating items suggested by the Sustainability Commission, staff recommends the following elements for consideration in 2024:

1. Ban local sale of single-use plastic foodware items: This would restrict local sale of plastic cups, utensils, containers, and accessories made from traditional plastic.

Stores would still be able to sell fiber-based compostable items.

2. Reusable to-go foodware pilot: Consider the availability of reusable to-go foodware business models and pursue a pilot in partnership with interested local food and beverage providers.

3. Ban local sale and use of other EPS products beyond food service ware:
a. Packing materials such as peanuts and blocks
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b. Pool or beach toys, coolers, and ice chests where the foam is not fully encapsulated within a more durable material

4. Charges to customers for single -use foodware: Evaluate the state of the COVID pandemic and the use of single-use foodware for pre-ordered takeout dining. Based on that evaluation, consider the idea of requiring a charge for single -use cups, containers, or both to further encourage use of reusable foodware. Adding a charge for a single -use item is a well -established method of increasing use of reusable alternatives, as demonstrated by charges for single -use carryout grocery bags.

Concern over proximity to other customers while dining on site at a restaurant or café during COVID has meant a big shift to more takeout orders that are pre - prepared for pickup or delivery. Ordering takeout for pickup or delivery precludes using a cup or container from home, so there is no easy way to avoid the charge the way there is with a grocery bag or walk-in service with a coffee travel mug.

5. Reusables at large events: Events of more than 100 attendees would be required to offer a percentage of prepared food and beverages in reusable containers.

Containers could for instance be souvenir items or returnable for a deposit refund.

6. Amend the City’s Single-Use Carryout Bag Ordinance to prohibit plastic bags used for takeout food orders and require produce bags be compostable.

Impact on food service providers, including City facilities Economically, the impact o f the ordinance could be mixed. With the implementation of the first phase per AB 1276 to offer utensils and accessories only on demand, providers could see cost savings from not giving out unwanted items. When the additional foodware requirements go into effect, providers using single -use plastic or bio -plastic food ware will need to begin purchasing and using compliant PFAS-free compostable or aluminum foodware. The cost of transitioning to use compliant products could vary widely and is not universally m ore expensive. Figure 2 shows what types of single -use items are being used by existing businesses based on the survey conducted in summer 2021. As indicated by the results most providers are using a combination of products.

Figure 2: Single-use foodware used by Cupertino businesses by type

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Providers using mostly bio -plastics for takeout orders could see cost savings when switching to fiber-based alternatives versus those providers using traditional single -use plastics which could see a price increase. Attachment D shows cost comparisons for a variety of types of foodware. As a representative example, Figure 3 below shows a hinged container made from different materials and how the cost can vary widely depending on source and volume. Cupertino would like to thank the City of Mountain View for sharing this data and imagery, which was prepared in Fall 2021 and verified to be an accurate representation of current price ranges.

Figure 3: Price survey of hinged containers

Reusables for Dining In - Dishwashing
The requirement to serve food on reusable foodware for dining-in could mean a need for increased dishwashing capacity (including labor) for providers primarily using single-use foodware even when diners stay on site. For providers serving high volumes of meals eaten on site, this shift could require installing additional dishwashers and hiring additional staff or contracting with a dishwashing service. However, case studies 1 from an organization that has assisted several hundred businesses in the Bay Area to switch to reusables for dining in, show savings of thousands of dollars a year with relatively small upfront investment. According to a survey of food businesses conducted in summer 2021, 71% of businesses who responded to the question are us ing a three -sink system for dishwashing, while 15% have mechanized washers. Businesses needing to install or increase dishwashing capacity may apply for a temporary exemption based on economic hardship or needing extra time to comply.

Based on the items proposed above, Figure 4 provides a high-level summary of potential impacts by common type of food provider.

1 ReThink Disposable case studies: http://www.rethinkdisposable.org/businesses 14 CC 03-01-2022
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Figure 4: Summary of Common Food Provider Types in Cupertino and Potential Impacts (based on business license data)

Type of Food Provider Number of
Businesses
% of
Total Expected Impacts
Dine-in
(Full-service restaurants) 73 49%
Moderate:

 Over half of full-service
restaurants that offer dine-
in provide reusables, but
some provide only single-
use plastic or a combination
of both
Fast-food/casual
(Includes locations that also
offer dine-in with limited
seating, but operates primarily
through takeout orders)

34 23%
High:
 Majority of fast-food/casual
locations offer only single-
use items or a combination
of products such as single-
use plastics and paper/fiber-
based items
Café/bakery/dessert 22 15%
Moderate:
 Majority offer only single-
use disposables
Boba tea 13 9%
High:
 High-usage of single-use
plastic cups and straws
Grocery/Supermarkets 6 4%
Low:
 Single-use items not
primarily given out
Catering Trucks 2 1% Moderate:
 Use only disposables

Grocery stores
Grocery stores selling prepared food would face the same issues as food providers and would additionally need to adjust any on-site packaging of produce, such as the practice of containing fruits or vegetables on EPS trays with plastic film wrap. In other jurisdictions, exemptions have been made for containers of cut fruit or salads prepared by the grocery store and packaged in clear plastic on site and made available for sale. If the store sells single -use plastic foodware, those items will need to be elim inated and compliant alternatives made available for sale.

Retailers
There are stores in Cupertino that sell single -use foodware, including grocery stores, convenience stores, big box stores, and specialty stores. To get an estimate of economic impact if the sale of single -use plastic foodware were prohibited, staff contacted these stores but received limited if any information on the sales numbers. It should be noted 15 CC 03-01-2022
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that party supplies tend to be single-use plastic, so stores specializing in those items might feel the impact more strongly while customers might choose to buy the same items online or from stores in neighboring cities.

Customers
Increased costs to food providers would likely be passed on to customers, but it is difficult to estimate because of the wide variety of options and pricing for foodware and as noted above, not all providers may see a cost increase. Food providers surveyed said they were concerned about customer experience with different types of foodware. When customers were surveyed, however, they were strongly in favor of switching away from single -use plastics and said it would not change where they dined.

What are other jurisdictions doing?
A growing number of jurisdictions in California have passed or are considering passing some form of regulation on single -use plastic foodware. No other city in Santa Clara County or the wider Bay Area has yet passed the full suite of elements contemplated in this draft ordinance and the future possible amendments, but Figure 5 shows a survey of neighboring jurisdictions for many of the elements.

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Figure 5: Comparison of Foodware Ordinances in Neighboring Jurisdictions

Outreach to Businesses and Customers
To understand the current state, needs, and concerns of local businesses on the topic of single-use foodware and some of the other policy elements under consideration, 100 businesses (51% of food service places with active business licenses at the time) were interviewed via surveys, over 80 of which were conducted in person. Survey responses were also received from 111 customers. Staff also presented twice to the Chamber of Commerce and once to the Teen Commission and a dedicated web page is available at 17 CC 03-01-2022
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engagecupertino.org/single-use-plastics. A more detailed account of that outreach is on page 6 of Attachment A. More recent outreach includes a postcard and an email about this study session mailed out to food service businesses and an article in the February edition of the Business Connect newsletter.

Next Steps
If so directed by Council, feedback from this study session will be incorporated into the draft language and the ordinance could appear for a first reading on April 5, 2022 . The Mayor’s Cup Challenge , which is focused this year on the broader topic of plastics, is scheduled for March 26, 2022. While not addressing food service ware specifically, the event will occur before the first reading of the draft ordinance and the two processes will cross-inform and support each other.

Sustainability Impact
The proposed ordinance is consistent with two actions in the Cupertino Climate Action Plan as well as California State law. The proposed ordinance encourages a push towards more reusable foodware which is co nsistent with Climate Action Plan Measure C -SW-1:

Zero Waste Goal. The proposed ordinance promotes the collection of organics from the local waste stream, which will reduce greenhouse gas emissions from the landfill consistent with Climate Action Plan Measure C-SW-2: Food Scrap and Compostable Paper Diversion. Enabling organic items to reach the compost stream supports the diversion requirements of California SB1383, the state’s short -lived climate pollutant reduction regulations.

Fiscal Impact
Fiscal impa ct will depend largely on direction received from Council. If directed to proceed with an ordinance, staff recommends contracting for technical and financial assistance to help Cupertino’s food service businesses understand and adjust to the requirements. A consultant who is deeply knowledgeable about food service business requirements, regulations, supplies, and challenges who also has experience with making these types of transitions will best be able to provide such assistance. The cost to hire technical assistance as described is expected to be approximately $100,000 to cover support both before and after the implementation of the most significant changes, including offering a defined number of small grants to help cover the costs of switching to reusables or purchasing compliant foodware. Of the money budgeted to the Single-Use Plastics Ordinance and Mayor’s Cup Challenge City Work Program Item, it is anticipated that approximately $60,000 will be available that could be allocated for a technical assistance contract. The balance would be drawn from the Resource Recovery Enterprise Fund. Ongoing compliance monitoring and support can be conducted by existing staff conducting inspections and outreach for stormwater pollution prevention program and SB 1383.

_____________________________________
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Prepared by: Ursula Syrova, Environmental Programs Manager Reviewed by: Jimmy Tan, Acting Director of Public Works Approved by: Dianne Thompson, Assistant City Manager
Approved for Submission by: Jim Throop, City Manager
Attachments:

A – Sustainability Commission Staff Report
B – Single-Use Plastics Ordinance Elements and Phasing
C – Single-Use Plastics Draft Ordinance
D – Single-Use Foodware Cost Comparisons

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1 SUSTAINABILITY COMMISSION STAFF REPORT
Meeting: January 20, 2022
Subject
Consider draft ordinance language and phasing for a Single-Use Plastics Ordinance Recommended Action
Discuss and recommend that City Council adopt the proposed ordinance language and phasing for a Single-Use Plastics Ordinance
Background
• In 2014, Cupertino City Council adopted an ordinance to ban food vendors from selling or otherwise providing prepared food in expanded polystyrene foam food service ware.
• In 2017, Cupertino City Council adopted a Zero Waste Policy, which includes support for policies that demonstrate a preference for less toxic and more durable products over single -use products, acknowledges that reusable foodware is preferable to single -use, and seeks to reduce the proliferation of unnecessary plastic single-use food service ware and packaging.
• In 2018, City staff began participating in regional discussions and working groups on the topic of single-use foodware and model policy language . That work was inspired in part by changes in international markets for recycled plastics in 2018 , concerns about plastic waste and microplastics in the environment, and health concerns from chemicals leaching into food.
• In 2018, California adopted Assembly Bill (AB) 1884 to require plastic straws to be provided only upon request.
• In 2019, the Youth Climate Action Tea m brought a request to restrict single-use plastic food service ware to the Cupertino City Council. The issue was also raised multiple times at Sustainability Commission meetings and was part of the Commission’s suggested City Work Program items for Fiscal Year 2020-2021. • The City Council accepted the Commission’s suggestion, and the Single -Use Plastics Ordinance became a City Work P rogram item for Fiscal Year 2020-2021 and then was continued on to the Fiscal Year 2021-2022 City Work Plan.

Attachment A
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2 • At the October 2021 meeting of the Sustainability Commission , a single -use plastics subcommittee was formed. The Committee met once in December 2021 to consider policy options and phasing.
• Beginning on June 1, 2022, state law will require food facilities to make certain single-use food service ware accessories and standard condiments packaged for single use available only on request.
• Beginning January 1, 2023, AB 1200 will prohibit the sale or distribution of food packaging (including fiber -based food service ware) containing per - and polyfluoroalkyl substances (PFAS).

Discussion
City staff has prepared a proposed ordinance amending Municipal Code Chapter 9.15, which prohibits the use of expanded polystyrene (EPS) foam foodware. The proposed ordinance includes requirements that will reduce the amount of single -use plastic food service ware in Cupertino and encourage a shift toward more reusable food service ware for dining on locat ion, for takeout, and at large events. It also proposes expanding the prohibition on EPS to local sale of certain non-foodware items such as packing peanuts.

Multiple life cycle analyses (LCAs) show reusable food service ware has less environmental impact compared to single -use products once a break -even point of repeated use occurs. LCAs consider metrics such as greenhouse gas emissions, energy inputs, and water consumption from the materials extraction phase through consumption and finally to disposal .1 LCAs do not consider the impacts when products become litter as opposed to being disposed of properly, the impacts of plastic pollution in the environment, or the human health impacts of chemicals migrating from food service ware into food and beverages.
2 Reusables do have advantages over single-use products in these areas.

Elements and phases of the proposed ordinance are summarized here and presented in Attachment A.

The first p hase of the ordinance mirrors the requirements of state law ( AB 1276) and requires that food service ware accessories such as utensils, chopsticks, condiment cups and packets, straws, stirrers, splash sticks, and cocktail sticks be provided only upon request by customers. These requirements become effective on June 1, 2022.

1 Oregon Department of Environmental Quality. “Food Service Ware LCA Harmonization,” Prepared for the City of Portland Bureau of Planning and Sustainability (BPS). 2019. Retrieved from https://www.oregon.gov/deq/FilterDocs/FoodLCAreport.pdf 2 Muncke, Jane et al. “Impacts of food contact chemicals on human health: a consensus statement.” Environmental health: a global access science source vol. 19,1 25. 3 Mar. 2020, doi:10.1186/s12940-020- 0572-5. Retrieved from https://pubmed.ncbi.nlm.nih.gov/32122363/

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3 The second phase of the ordinance includes elements that would go into effect one year later, on June 11, 2023. These requirements include:

1. Prohibiting the use of non-complaint food service ware by food providers:
• Continue to prohibit use of expanded polystyrene foam food service ware • Prohibit use of single-use plastic items (even if accepted as recyclable) • Prohibit use of compostable food service ware that contains PFAS • Prohibit use of bio-plastics (compostable plastics)

2. Reusable food service ware required for dining on premises:
• Reusable food service ware must be provided for customers dining on site at the food provider’s location . Requires sufficient dishwashing capacity or a contract with a dishwashing service.

3. Imposing the following nonreusable beverage cup and food container charges:
• $0.25 for a disposable cup and $0.25 for a disposable container • Charges kept by the business

4. Prohibiting the sale of non-compliant foodware:
• Ban local sale of single-use plastic, expanded polystyrene foam, and bio-plastic food service ware

5. Prohibit sale of other expanded polystyrene products beyond food service ware:
• Packing materials such as peanuts and blocks
• Pool or beach toys, coolers , and ice chests where the foam is not fully encapsulated within a more durable material

6. Exemptions:
• Paper, wood, bamboo, and other fiber -based compostable food service ware items accepted in the City’s compost program would be allowed • Containers made entirely from aluminum and aluminum foil would be allowed
• Plastic straws allowed for those with medical need
• Does not apply to food prepared and packaged outside of the City • Single-use food service ware still allowed for taking home leftovers from dine- in situations
• Temporary exemptions allowed if additional time needed to comply • Allows for compliant paper food liners, wrappers, sleeves, bags, and foil wrappers
• Exemption from charges for customers with certain economic hardships • Customers are allowed to bring their own containers
• Businesses may refuse to use a customer's container if it is not suitable or is unsanitary
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4 • Exemption to packaging requirements for shipments received from outside the city or materials reused within the City

The third phase of the ordinance would go into effect on June 1, 2024 and would address prepared beverage and food containers used at events. Covered events would be required to comply with the following requirements:
• 25% of prepared beverage sales in reusable containers, phasing to 50% by June 1, 2026
• 25% of prepared food sales in reusable containers starting 6/1/2026 phasing to 50% by June 1, 2028

Subcommittee Feedback
The Sustainability Commission formed a subcommittee to consider elements of the single- use plastics ordinance, and the subcommittee met on December 16, 2021 . Subcommittee members Anna Weber and Meera Ramanathan heard presentations from staff and considered the following questions:
1) Who should be covered by the ordinance – all food providers, or just food vendors?
• Citing concern about food ser vice ware in use by health care providers, subcommittee members suggested focusing on food vendors first with a broader set of food providers considered at a later phase . However, because compliant single -use food service ware could be u sed in those settings, “providers” is recommended.

2) Speed of the phasing
• The subcommittee suggested allowing more time for businesses to make the required changes called for in phase two, and therefore phase two was pushed to one year after implementation of phase one.
• The subcommittee had concerns about the dishwashing requirements and economic impacts of reusables for din e-in services with a sensitivity to wanting to remain welcoming to existing and new businesses. The proposed ordinance includes waivers and temporary exemptions in cases of economic hardship or other challenges.
• The subcommittee was in favor of providing incentives, such as technical assistance and grant funding. The re is at least one independent organization that provides financial assistance to restauran ts seeking to deploy reusable food service ware . The City could also consider hiring a consultant to provide technical assistance to help make changes, which could include mini grants to purchase reusable food service ware.

3) Ban plastic single-use food service ware items, even if recyclable? • Strong support for such a ban, which was also recently adopted by the City of Mountain View.

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5 4) Mandate charges or credits to encourage use of reusables, either brought in by customers or for dine-in?
• While the subcommittee voiced support for credits for customers bringing their own cups, charges are more common and have been shown to be more effective than credits.
• The question of a charge for takeout containers in addition to a charge for single-use cups was not fully considered and requires further discussion.

5) Ban the sale of non-compliant food service ware items? • The subcommittee supported the idea of banning the sale of compostable plastics first, as those are not accepted for composting in Cupertino, they do not have a better LCA than other plastics, an d they create customer confusion and end up contaminating both the recycling and compost streams.
• After a discussion of economic equity, the suggestion was made to phase in a ban on the sale of traditional plastic food service ware, especially if there is a significant price difference. Note that Mountain View has adopted an ordinance banning the sale of both bio -based and traditional single-use plastic food service ware items beginning January 1, 2023.

6) Ban local sale and use of expanded polystyrene foam packing materials? • There was support for including such a ban, which would be limited to packing that occurs within the City.

7) Require large events of 100 people or more to provide a percent of their beverages and food in reusable containers?
• The subcommit tee supported that idea , and San Francisco has already adopted rules requiring that 10% of prepared beverages be provided in reusable cups at large events.

8) Ban City use and purchase of single-use bottled water? • While not addressed in the ordinance, this item had support from the subcommittee and could be included in the next update of the Environmentally Preferable Purchasing Policy.

9) Reusable Take-Out Food Service Ware
• While not addressed in the ordinance elements, the subcommittee expressed its desire to learn more about businesses that provide reusables for takeout food and beverages. There are several businesses already providing this service in San Francisco and Berkeley, and as a service available to hire for events. Such a service is planned for demonstration at the 2022 Earth Day and Arbor Day Festival to work in partnership with any food trucks, but the subcommittee members also suggested a pilot of such a third-party business model in Cupertino.
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6 Outreach to Businesses and Customers
In the summer of 2021, City staff contracted with Environmental Innovations (EI) to conduct outreach to food service businesses and customers about single-use plastic foodware and the potential ordinance. EI partnered with the Peninsula Chinese Business Association to do direct food facility outreach, who surveyed 100 businesses (51% of food service businesses with active business licenses), many of them via in-person interviews.

EI and City staff also conducted additional interviews with several institutional food service providers such as West Valley Community Services, Apple, and the Forum, seeking to understand the needs of large service providers and the concerns of special interest groups representing youth, low-income, and persons with disabilities. Responses from food facilities includ ed independently owned and franchised, fast food and sit - down, boba tea shops , grocery stores, coffee shops and bakeries. While there was openness to switching to a different type of product, the primary concerns about switching to compostable food service ware were increased cost and availability of compliant products, customer satisfaction, and the administrative burden of imposing fees. 57% of those surveyed indicated they were interested in technical or financial assistance to help make the required changes. When asked about switching to reusable food service ware, businesses were also open to that idea, but worried about changing their operations, had concerns about safety against covid, and thought that staffing for dishwashing or dish storage might be a n issue.
65% said they would be interested in
receiving information about reusable to-go foodware services.

The survey answers provided by customers showed strong support for limiting single - use plastic food service ware, that environmentally friendly pr actices are important to customers, and that customers worry about the amount of waste from to -go foodware. 88% of the 111 customers who responded said they have received unwanted single -use foodware when ordering takeout, and 91% said they would still go to a restaurant that stopped using single-use plastic. 39% indicated that they would be interested in a service that provided to -go containers that you could return for sanitizing and reuse. 67% said that being offered a discount would encourage them to bring their own cup or container, although the distinction was not made between a charge and a discount.

Staff and EI presented to the Teen Commission in August 2021 and received supportive feedback. Staff also presented to the Chamber of Commerce in August 2021, and the response was favorable. In September , the City staffed a table at the Fall Festival and promoted community feedback via the customer survey, and the in-person conversations on the topic were largely favorable. Staff plans to present to these groups again with the more specific proposed language and will encourage community attendance at a planned Council Study Session on March 1, 2021. To track the ordinance as it progresses and provide information, t he City also launched a dedicated web page at engagecupertino.org/single-use-plastics.

CEQA
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7 This Ordinance is not a project under the requirements of the California Environmental Quality Act, together with related State CEQA Guidelines (collectively, “CEQA”) because it has no potential for resulting in physical change in the environment. In the event that this Ordinance is found to be a project under CEQA, it is subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty to have no pos sibility that the action approved may have a significant effect on the environment. CEQA applies only to actions which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. In this circumstance, the proposed action to regulate the use of single -use foodware by food providers and local sale of prohibited foodware and other expanded polystyrene products would have no or only a de minimis effect on the environment because reducing disposable plastic foodware items such as straws, utensils, and stirrer sticks and having compostable alternatives offered only upon request and other provisions of the ordinance would not have the potential for causing a significant effect on the environment. In addition, if the proposed ordinance were a project under CEQA, the project would be exempt from CEQA under CEQA Guidelines section 15307, which exempts from CEQA actions taken by regulatory agencies for the protection of the environment. The foregoing determination is made by the City Council in its independent judgment.

Next Steps
Staff plans to conduct a Study Session before City Council on March 1, 2022 followed by a first reading of the ordinance on April 5, 2022. The Mayor’s Cup Challenge, which is focused this year on the broader topic of plastics, is scheduled for March 26, 2022. While not addressing food service ware specifically, the event will occur before the first reading of the draft ordinance and the two processes will cross-inform and support each other.

Sustainability Impact
The proposed ordinance is consistent with two actions in the Cupertino Climate Action Plan as well as California State law. The proposed ordinance encourages a push towards more reusable foodware which is consistent with Climate Action Plan Measure C -SW-1:

Zero Waste Goal. The proposed ordinance promotes the collection of organics from the local waste stream, which will reduce greenhouse gas emissions from the landfill consistent with Climate Action Plan Measure C-SW-2: Food Scrap and Compostable Paper Diversion. Enabling organic it ems to reach the compost stream supports the diversion requirements of California SB1383, the state’s short- lived climate pollutant reduction regulations.

Fiscal Impact
Staff recommends contracting for technical assistance to help Cupertino’s approximately 200 food service businesses understand and adjust to the requirements of the ordinance if it is adopted. A consultant who is deeply knowledgeable about food service business requirements, regulations, supplies, and challenges who also has experience with making 26 CC 03-01-2022
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8 these types of transitions will best be able to provide such assistance. In anticipation of ordinance approval, funding for an RFP to hire technical support will be put forward as part of the FY 22-23 budget in the amount of $ 80,000 to cover support both before and after the implementation of phase two. Of the $100,000 budgeted to the Single-Use Plastics Ordinance and Mayor’s Cup Challenge City Work Program Item, it is anticipated that approximately $60,000 could be allocated for a technical assistance contract. The balance would be drawn from the Resource Recovery Enterprise Fund.

_____________________________________

Prepared by: Ursula Syrova, Environmental Programs Manager Reviewed by: Chad Mosley, Acting Director of Public Works Attachments: Single-Use Plastics Ordinance Elements and Phasing Draft Single-Use Plastics Ordinance
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Cupertino DRAFT PROPOSED Single-Use Plastics Ordinance

REGULATION OF SINGLE-USE FOOD SERVICE WARE BY FOOD PROVIDERS 6/1/2022 Enforcement date per AB1276

9.15.110 A ACCESSORIES ONLY UPON CUSTOMER REQUEST
A.1 Accessories and condiments only on request and unbundled for dine-in, take-out, and delivery apps
A.2 Disallow self-serve stations?
A.3 Plastic straws may be retained and provided as an accommodation A.4 Encourage bulk condiment dispensers rather than individual packets A.5 Online ordering for pickup/delivery must provide option to affirmatively opt in to choosing each accessory piece individually
A.6 Exceptions for instances of drive-through and food deliveries in which items like cup lids, lid plugs, hot sleeve cups may be offered to prevent spills or safely transport food A.7 For delivery orders, accessories allowed to prevent spills and deliver safely. 6/1/2023 1 year after accessories phase

9.15.110 B USE OF NON-COMPLIANT FOODWARE PROHIBITED
B.1 No sale or distribution of Prepared packaged by food providers (including City Facility Prepared Food Providers) in Cupertino using:

B.1.a Expanded Polystyene (EPS) foam
B.1.b Single-use plastics (even if accepted as recyclable) B.1.c Compostables with PFAS
Allow PFAS-free paper, wood, bamboo, or fiber-based compostable items B.1.d Bio-plastics ("compostable plastics")

9.15.120(G) Prepackaged food from outside the City exempted

9.15.120(I) Allow aluminum containers and foil (as exemption) B.2 Director of Public Works (or designee) to maintain list of suitable products and/or provide reference to an approved list
B.3 Exemption for food/beverages prepared and packaged outside of the City

9.15.110 C REUSABLE FOOD SERVICE WARE FOR DINING ON PREMISES C.1 Dine-in requires Reusables
C.1 Allowable: disposable paper food wrappers, sleeves, and bags; foil wrappers; paper napkins; paper tray and plate liners; and straws if meet requirements.

C.2 Condiments shall not be in single-service packets
C.3 Definition of on-premises as belonging to food provider or shared C.4 New building permits trigger condition of approval requiring dishwashing capacity to allow reusables on-premises.

C.4 New and renewed business licenses trigger condition of approval requiring dishwashing capacity to allow reusables on-premises.

C.5 Dine-in still allows nonreusable containers for leftovers.

C.6 Waiver/extension option for existing restaurants without dishwashing capacity

9.15.110 D SALE OR DISTRIBUTION OF NON-COMPLIANT FOODWARE PROHIBITED D.1 Ban sale of compostable plastic food service ware
Attachment B
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D.1 Includes ban on sale of EPS foodware
D.2 Director may adopt or refrence a list of compliant products

9.15.120 A Exemptions available for unique packaging hardship, unused inventory, significant economic hardship, or extra time needed to comply
B Unique packaging hardship
C Unused inventory
D Significant economic hardship
E Needs additional time
F Method of applying for exemption with time limit of 1 year G Prepackaged food is exempt
H Food service ware that is entirely aluminum foil-based is exempt I Emergencies are exempt

9.15.125 A All food providers must keep records of purchase of single-use foodware showing compliance
B Records to be made available for inspection by the City C False or incomplete information is a violation
NEW SECTION 9.15.125 CONCERNING RECORDKEEPING AND INSPECTION

EXEMPTIONS
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Attachment C
1 ORDINANCE NO. __________________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING CITY CODE TO CHANGE THE NAME OF CHAPTER 9.15, ADOPT NEW SECTIONS 9.15.090 AND 9.15.125, AND AMEND SECTIONS 9.15.100, 9.15.110,

9.15.120, AND 9.15.130 TO REGULATE THE USE OF SINGLE-USE FOOD SERVICE

WARE BY FOOD PROVIDERS AND REGULATE THE SALE OF SINGLE-USE

FOOD SERVICE WARE AND EXPANDED POLYSTYRENE FOAM PACKING

MATERIALS

1. The City Council of the City of Cupertino finds that:

WHEREAS, on February 5 , 2014, the City of Cupertino adopted an ordinance to prohibit food vendors from providing prepared food using food packaging containing polystyrene foam, currently codified as Chapter 9.15 of the City Code; and WHEREAS, this ordinance continues to prohibit the sale and use of polystyrene foam food service ware and also further regulates nonreusable food service ware and food service ware accessories in Cupertino; and
WHEREAS, the State adopted AB 619 in July 2019, which allows consumers to supply their own reusable containers for filling or refilling and requires that food establishments have an established procedure for safely accepting reusable containers; and
WHEREAS, the State recen tly adopted Assembly Bill 1200, which prohibits the sale or distribution of food packaging made primarily from paper, paperboard, or other natural fiber that contains per- and polyfluoroalkyl substances (PFAS) in California beginning January 1, 2023; and
WHEREAS, Assembly Bill 1200 does not include a verification mechanism to assist food providers in identifying whether the food packaging contains PFAS; and WHEREAS, this ordinance requires that food service ware used by a food provider in Cupertino be cert ified as PFAS -free by an independent third -party certifying organization to assist Cupertino food providers in identifying PFAS-free food service ware; and
WHEREAS, the State also recently adopted Assembly Bill 1276, which prohibits the distribution of sin gle-use food service ware accessories and standard condiments packaged for single use by food providers except upon request by the consumer; and 30 CC 03-01-2022
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Ordinance No. __________

WHEREAS, a prohibition of plastics for specified nonreusable food service ware accessories furthers the City’s goals and is more restrictive than the recently enacted State law; and
WHEREAS, this ordinance is consistent with the City of Cupertino’s Zero Waste Policy and Climate Action Plan that seek to reduce solid waste at its source and reduce nonreusable food service ware and packaging; and
WHEREAS, t he City Council of the City of Cupertino held a duly noticed public hearing on [date], and after considering all testimony and written materials provided in connection with that hearing introduced this ordinance and waived the reading thereof;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CUPERTINO DOES ORDAIN AS FOLLOWS:

SECTION 1. Adoption.

The Cupertino Municipal Code is hereby amended as set forth in Attachment A.

SECTION 2: Severability and Continuity.

The City Council declares that each section, sub -section, paragraph, sub -paragraph, sentence, clause and phrase of this ordinance is severable and independent of every other section, sub -section, paragraph, sub -paragraph, sentence, clause and phrase of thi s ordinance. If any section, sub -section, paragraph, sub -paragraph, sentence, clause or phrase of this ordinance is held invalid, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforce able or otherwise void, the City Council declares that it would have adopted the remaining provisions of this ordinance irrespective of such portion, and further declares its express intent that the remaining portions of this ordinance should remain in eff ect after the invalid portion has been eliminated. To the extent the provisions of this Ordinance are substantially the same as previous provisions of the Cupertino Municipal Code, these provisions shall be construed as continuations of those provisions a nd not as an amendment to or readoption of the earlier provisions.

SECTION 3: California Environmental Quality Act.

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Ordinance No. __________

This Ordinance is not a project under the requirements of the California Environmental Quality Act, together with related State CEQA Guidelines (collectively, “CEQA”) because it has no potential for resulting in physical change in the environment. In the event that this Ordinance is found to be a project under CEQA, it is subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty to have no possibility that the action approved may have a significant effect on the environment. CEQA applies only to actions which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. In this circumstance, the proposed action to regulate the use of single -use foodware by food providers would have no or only a de minimis effect on the environment because reducing disposable plastic foodware items such as straws, utensils, and stirrer sticks and having compostable alternatives offered only upon request and other provisions of the ordinance would not have the potential for causing a significant effect on the environment . The foregoing determination is made by the City Council in its independent judgment.

SECTION 4: Effective Date.

This Ordinance shall take effect thirty days after adoption as provided by Government Code Section 36937.

SECTION 5: Publication.

The City Clerk shall give notice of adoption of this Ordinance as required by law.

Pursuant to Government Code Section 36933, a summary of this Ordinance may be prepared by the City Clerk and published in lieu of publication of the entire text. The City Clerk shall post in the office of the City Clerk a certified co py of the full text of the Ordinance listing the names of the City Council members voting for and against the ordinance.

INTRODUCED at a regular meeting of the Cupertino City Council on [date] and ENACTED at a regular meeting of the Cupertino City Council on [date] by the following vote:

Members of the City Council

AYES:

NOES:

ABSENT:
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Ordinance No. __________

ABSTAIN:

SIGNED:

______________________

Darcy Paul, Mayor
City of Cupertino

________________________

Date
ATTEST:

_______________________

Kirsten Squarcia, City Clerk

________________________

Date
APPROVED AS TO FORM:

_______________________

Christopher D. Jensen, City Attorney

________________________

Date

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Attachment A – Page 1

Attachment A – AN ORDINANCE OF THE CITY OF CUPERTINO TO REGULATE

THE USE AND SALE OF SINGLE-USE FOOD SERVICE WARE AND EXPANDED

POLYSTYRENE FOAM PACKING MATERIALS
NOTE: The existing chapter language is quite brief, so for the purposes of readability while under development, existing chapter text is highlighted in gray and the rest shows as plain text.

The sections of the Cupertino Municipal Code set forth below are amended or adopted as follows:

Text added to existing provisions is shown in bold double-underlined text (example) and text to be deleted in shown in strikethrough (example). Text in existing provisions is not amended or readopted by this Ordinance. Text in italics is explanatory and is not an amendment to the Code.

Where the explanatory text indicates that a new section is being added to the City Code, the new section is shown in plain text.

This ordinance amends several portions of the Municipal Code. For ease of review, the amendments advancing the primary objective are presented first followed by conforming amendments. There is a separate heading in bold italics for each portion of the Code being amended. Each portion is shown beginning on a separate page.

SECTION 1. ADDITION OF SECTION 9.15.090 CONCERNING THE PURPOSES OF

REGULATION OF THE USE AND SALE OF SINGLE-USE FOOD SERVICE WARE

AND EXPANDED POLYSTYRENE PACKING MATERIALS

9.15.090 Purpose of Chapter

A. This chapter is determined and declared to be a health, sanitary , and safety measure for the promotion, protection and preservation of the health, safety and general welfare of the people and environment of the City of Cupertino.

B. Nonreusable disposable food service ware and beverage packaging - including plates, cutlery, cups, lids, straws, “clamshells” and other containers - are major contributors to street litter, ocean pollution, marine and other wildlife harm, depletion of natural resources, and greenhouse gas emissions. 34 CC 03-01-2022
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[Brief Description]- Page 2
C. Plastic litter breaks down into smaller pieces that are not biodegradable, persist in the environment on land and sea, and are present in most of the world’s oceans.

D. Among other hazards, plastic debris attracts and concentrates ambient pollutants, such as endocrine disrupters and persistent organic pollutants, in seawater and freshwater that can transfer to fish, other seafood, and salt that is eventually consumed. Nine of the top ten most common debris items found on beaches in the U.S. during International Coastal Cleanup Day are nonreusable food and beverage packaging items, and eight of them are plastic.

E. Discharge of litter into waters of the United States is prohibited by the Federal Clean Water Act and the City’s stormwater pollution prevention permit as issued by the San Francisco Bay Regional Water Quality Control Board.

F. Even if allowed by the City of Cupertino’s approved recyclables processor as recyclable, nonreusable plastic food service ware is often difficult to recycle after use because it is contaminated with food and grease.

G. Natural fiber-based food service ware can be diverted from landfill, processed into compost, and breaks down in the environment if littered.

H. Certain synthetic chemicals known as Per- and Polyfluoroalkyl Substances (PFAS), which are commonly used in disposable food service ware to repel water and grease, pose a public health risk as they have been linked to serious health effects.

I. Approximately 12,000 chemicals are used in food packaging. Many of the chemical additives used in packaging are known to migrate into food and beverages.

Hundreds of these chemicals are known to be hazardous to human health and the environment, and many are extremely persistent and bioaccumulative.

J. Polystyrene foam food service ware and packaging materials are a distinctive litter concern because they are lightweight, break apart easily, are windblown into streets and waterways, and float in water until it reaches the San Francisco Bay and ocean.

K. The City of Cupertino intends to reduce solid waste at its source and maximize recycling and composting in accordance with Cupertino’s Climate Actio n Plan, Zero Waste Policy, and stormwater pollution prevention permit. 35 CC 03-01-2022
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[Brief Description]- Page 3
L. Reducing disposable packaging by eliminating unnecessary items and transitioning to reusable products provides greater environmental benefits than managing the products that become waste, even when recycled or composted.

SECTION 2. AMENDMENTS TO SECTION 9.15.100 CONCERNING DEFINITIONS

9.15.100 Definitions

For the purposes of this chapter, the following words and phrases shall have the meanings ascribed to them by this section, unless the context or the provision clearly requires otherwise:

1. "Beverage Provider" means any business, organization, entity, group, or person that offers liquid, slurry, frozen, semi -frozen, or other forms of beverages to the public for consumption. Beverage Provider also includes any organization, entity, group or person that regularly provides beverages to its members or the general public as a part of its activities or services.

2. “Biodegradable Products Institute (BPI)” refers to a certification program that ensures that products and packaging displaying the BPI logo have been independently tested and verified according to scientifically based standards to successfully break down in professionally managed industrial composting facilities. BPI-certified pr oducts meet the standards of the American Society for Testing Materials (ASTM) D6400 or D6868 for compostability. As of January 1, 2020, all BPI -certified products are required to have (1) a limit of 100 parts per million (ppm) total Fluorinated Chemicals as the upper threshold for acceptance and (2) no intentionally added Fluorinated Chemicals.

3. “City” means the City of Cupertino.

4. “City Facility” means any building, structure, or vehicle owned or operated by the City.

5. “City Facility Food Provider” means an entity that provides, but does not sell, Prepared Food in City Facilities.

6. “County” means the County of Santa Clara.

7. “Compostable” means that an item or material is (1) accepted in City’s available composting collect ion program as fully compostable; (2) is listed, described, or referenced on the City’s website as compostable; and (3) is certified compostable 36 CC 03-01-2022
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[Brief Description]- Page 4
by the Biodegradable Product Institute or other third party recognized by the Director.

8. “Contractors and Lessees” means any person or entity that has a contract with the City of Cupertino for public works or improvements to be performed, for a franchise, concession, or lease of property, for grant monies or goods and services or supplies to be purchased at the expense of the City of Cupertino.

9. “Director” means the City of Cupertino’s Director of Public Works or their designee.

10. "Disposable food service ware" means single-use disposable products used in the restaurant and food service industry for serving prepa red food and includes, but is not limited to, plates, trays, cups, bowls, and hinged or lidded containers (clamshells). "Disposable food service ware" does not include straws, utensils, drink lids, or ice chests.

11. “Distribute” means the sale, offer for sale, or other transfer of possession of an item for compensation, either as a separate transaction or as part of the sale, offer for sale, or other transfer of possession of another item for compensation.

12. “Fluorinated Chemical” means a class of fluorinated or ganic compounds containing at least one fully fluorinated carbon atom, also known as per - and polyfluoroalkyl substances, or PFAS chemicals.

13. “Food Container” means a container, bowl, plate, tray, or other vessel used to hold Prepared Food.

14. “Food Provider” means any establishment, provider, Non -Profit Vendor, or business, operating within the City that sells Prepared Food (1) to the public for consumption on or off its premises, at a catered event, and/or (2) at cafeterias, schools and places of employment, whether or not such establishments are open to the general public. Food Provider includes but is not limited to, restaurants, retail food establishments, caterers, cafeterias, stores, shops, retail sales outlets, grocery stores, delicatessens serving the p ublic, mobile or temporary food providers, vehicles or carts, or roadside stands.

15. “Food Service Ware” means any products used for serving or consuming prepared food and includes, but is not limited to, cups, bowls, plates, trays, cartons, boxes, wrapper o r liners, hinged or lidded containers ( clamshells), and other items used as part of food or beverage service or in which Prepared Food is placed or packaged on a Prepared Food Provider’s premises. 37 CC 03-01-2022
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16. “Food Service Ware Accessory” means any type of accessory or accompanying items usually provided alongside Prepared Food in plates, containers, bowls, or cups, including but not limited to utensils, chopsticks, napkins, cup lids, cup sleeves, food or beverage trays, condiment packets and saucers, straws, stirrers, splash sticks, spill plugs, cocktail sticks, and toothpicks.

17. "Food vendor" means any establishment located in the City of Cupertino that sells or otherwise provides Prepared Food for consumption on or off its premises, and includes, but is not limited to, any shop, sales outlet, restaurant, bar, pub, coffee shop, cafeteria, caterer, convenience store, liquor store, grocery store, supermarket, delicatessen, mobile food truck, vehicle or cart, or roadside stand.

18. “Large Event” means any indoor event at a C ity facility, or any outdoor event subject to a City permit, where more than 100 people attend or participate.

19. “Large Event Food Provider” means any business selling or providing based on ticket purchase or entrance fee, Prepared Food at a Large Event.

20. “Large Event Producer” means a person or entity who contracts with or obtains a permit from the City, or an agent acting on the City of Cupertino’s behalf to hold its own Large Event, or City of Cupertino staff holding a Large Event.

21. “Natural Fiber” means a plant-based, non -synthetic fiber, including but not limited to paper, wood, or bamboo. Natural Fiber does not include plastic of any kind.

22. “Nonreusable” means not meeting the definition of Reusable in these definitions.

23. “Packing Material” means material used to hold, cushion, or protect items packed in a container for shipping, transport, or storage.

24. “Person” means an individual, trust, firm, joint stock company, corporation including a government corporation, partnership, or association.

25. “Per- and Polyfluoroalkyl Substances” means, for the purposes of food packaging, a class of fluorinated organic chemicals containing at least one fully fluorinated carbon atom.

26. “Polystyrene” means a thermoplastic petrochemical material utilizing a styrene monomer, including but not limited to rigid polystyrene or expanded polystyrene, 38 CC 03-01-2022
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processed by any number of techniques including, but not limited to, fusion of polymer spheres (expandable bead polystyrene), injection molding, expanded polystyrene molding, extrusion-blown molding (extruded polystyrene), and clear or solid polystyrene (oriented polystyrene). Polystyrene is generally used to make cups, bowls, plates, trays, clamshell containers, meat trays, and egg cartons. The resin code for Polystyrene is ‘6’ or ‘PS,’ either alone or in combination with other letters. This definition applies to all polystyrene food service ware, regardless of whether it exhibits a resin code.

27. "Polystyrene foam" means a thermoplastic petrochemical material made from a styrene monomer and expanded or blown using a gaseous agent (expanded polystyrene) including, but not limited to, fusion of polymer spheres (expandable bead polystyrene), injection molding, form molding, and extrusion-blow molding (extruded foam polystyrene). "Polystyrene foam" is commonly made into disposable food service ware products. "Polystyrene foam" does not include clear or solid polystyrene (oriented polystyrene).

28. "Prepared Food" means food or beverages that are packaged, cooked, chopped, sliced, mixed, brewed, frozen, squeezed or otherwise prepared on the premises. "Prepared food" does not include:
a. Any raw, uncooked meat products, fruits, or vegetables, unless it is intended for consumption without further preparation; or b. Prepackaged food that is delivered to th e food vendor wholly encased, contained or packaged in a container or wrapper, and sold or otherwise provided by the food vendor in the same container or packaging.

27. “Prepared food” means food or beverages that are served, packaged, cooked, chopped, sliced, mixed, brewed, frozen, squeezed or otherwise prepared on the premises of a food provider for consumption, including, but not limited to, ready- to-eat, dine-in, take-out or complimentary food or beverage. “Prepared food” does not include: (1) raw eggs and raw, butchered meat, fish or poultry that is sold from a butcher case or a similar retail method; (2) prepackaged food that is delivered to the food provider wholly encased, contained or packaged in a container or wrapper, and sold or otherwise provided by the food provider in the same container or packaging; or (3) nonpolystyrene foam prepackaged items prepared on-site, which are not made to order and sold as “grocery items.”

28. “Raw Food” means any uncooked meat, fish, poultry, vegetable, fruit, or egg. 39 CC 03-01-2022
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29. “Recyclable” means material that can be sorted, cleansed, and reconstituted and accepted by the City’s available recycling collection programs for the purpose of using the altered form in the manufacture of a new product. The term does not include material th at will be burned, incinerated, or converted through gasification, pyrolysis, solvolysis, hydropyrolysis, methanolysis, enzymatic breakdown or a similar chemical conversion process used to transform materials into plastic monomers, chemicals, waxes, lubric ants, chemical feedstocks, crude oil, diesel, gasoline, or home heating oil.

30. “Reusable Food Service W are” means all food service ware, including plates, bowls, cups, trays, glasses, straws, stirrers, condiment cups and utensils, that is manufactured of dur able materials and that is specifically designed and manufactured to be washed and sanitized and to be used repeatedly over an extended period of time, and is safe for washing and sanitizing according to applicable regulations.

31. “Standard Condiments and Spices” means relishes, spices, sauces, confections, or seasonings that require no additional preparation and that are usually used on a food item after preparation, including ketchup, mustard, mayonnaise, soy sauce, hot sauce, salsa, salt, pepper, sugar, and sugar substitutes or others as determined by the City.

32. “State” means the State of California.

33. “Takeout Food” means Prepared Food requiring no further preparation, which is purchased to be consumed off a Prepared Food Facility’s premises. Takeout Food includes Prepared Food delivered by a Food Facility or by a third -party Takeout Food Delivery Service.

34. “Takeout Food Delivery Service” is a service that delivers Takeout Food from a Food Facility to a customer for consumption off the premises. This service c an be provided directly by the Food Facility or by a third-party.

35. “Third Party Food Delivery Platform” means a business engaged in the service of online food ordering and/or delivery from a Prepared Food Provider to a consumer.

SECTION 3. AMENDMENTS TO SECTION 9.15.110 CONCERNING REGULATION

OF FOOD SERVICE WARE USED BY FOOD PROVIDERS AND SOLD BY

RETAILERS
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9.15.110 Polystyrene Foam Disposal Food Service Ware Prohibited Regulation of Food Service Ware Used by Food Providers and Sold by Retailers

No food vendor shall sell or otherwise provide prepared food in polystyrene foam disposable food service ware on or after July 1, 2014.

A. ACCESSORIES ONLY UPON CUSTOMER REQUEST
Effective 6/1/2022

1. Food Providers shall p rovide Nonreusable Food Service Ware Accessories and Standard Condiments in single serve packets only upon request by customers during on-premises dining or when using a third -party food delivery platform.

Nonreusable Food Service Ware Accessories and Standard Condiments packaged for single use provided by Prepared Food Providers for use by consumers shall not be bundled or packaged in a manner that requires a consumer to take a different type of Nonreusable Food Service Ware Accessory or Standard Condiment

2. Self-serve accessory stations are prohibited.

3. Food Providers and Beverage Providers, as well as City facilities, City -managed concessions, City-sponsored events, and City-permitted events, may plastic straws as an accommodation to people with disabilities who request them to enjoy equal access to food and beverage services within the City.

4. Prepared Food Providers offering Standard Condiments and Spices are encouraged to use dispensers or bulk containers rather than pre -packaged individual serving packets.

5. Takeout Food Delivery Servic es that utilize digital ordering/point of sale platforms, including but not limited to the internet and smart -phone, shall only offer Disposable Food Service Ware Accessories by providing clear options for customers to affirmatively request these items sep arate from orders for food and beverages. The default option on the digital ordering/point of sale platforms shall be that no Disposable Food Service Ware Accessories are requested. Each individual Disposable Food Service Ware Accessory (e.g., each fork, k nife, condiment packet, napkin, etc.) provided with Prepared Food must be specifically requested by the customer in order for a Food Facility to provide it.

6. A Prepared Food Provider may ask a drive -through consumer if the consumer wants a Nonreusable Food Service Ware Accessory if the Nonreusable Food 41 CC 03-01-2022
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Service Ware Accessory is necessary for the consumer to consume ready -to-eat food, or to prevent spills of or safely transport ready-to-eat food.

7. For delivery orders, Prepared Food Providers may choose to incl ude specific accessories, such as cup lids, spill plugs, and trays, in order to prevent spills and deliver food and beverages safely.

B. USE OF NON-COMPLIANT FOOD SERVICE WARE PROHIBITED
Effective 6/1/2023

1. Prepared Food or Beverage Providers, including City Facility Prepared Food Providers, and City Contractors and Lessees may not sell, offer for sale, or otherwise Distribute Prepared Food prepared or packaged in Cupertino using:
a. Nonreusable Food Service Ware or Food Ware Accessories made, in whole or in part, from Polystyrene Foam;
b. Nonreusable Food Service Ware made, or Food Ware Accessories made, in whole or in part, from plastic including polyethylene, polyethylene terephthalate, polypropylene, polystyrene, even if accepted as recyclable by the City’s approved recyclables processing facility;
c. Nonreusable Food Service Ware or Food Ware Accessories that are Compostable and not certified free of Fluorinated Chemicals by an independent third-party certifying organization approved by the Director; d. Nonreusable Food Service Ware or Food Ware Accessories made in whole or in part from bio - or plant-based or other “compostable” plastic even if labeled or certified as compostable.

2. The Director may adopt a list, or reference an approved list, of suitable alternative Compostable or Recyclable Nonreusable Food Service Ware products, which means Nonreusable Food Service Ware products that the Director determines serve the same intended purpose as non -compliant products, meet the standards for what is Compostable and/or Recyclable under this Chapter, and are reasonably affordable. If a product is not included on the Director’s list or referenced on an approved list, the person using the product as Nonreusable Food Service Ware will have the burden of establishing to the Director’s satisfaction that the product complies with this Section.

3. It shall not be a violation of this Section to sell, provide, or purchase Prepared Food or Raw Food or Beverage packaged in Nonreusable Food Service Ware otherwise prohibited by subsection ( 1) if the Prepared Food or Raw Food or Beverage is 42 CC 03-01-2022
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packaged outside the City and is sold or otherwise provided to the consumer in the same Nonreusable Food Service Ware in which it originally was packaged.

Businesses packaging Pr epared Food outside the City are encouraged to use Nonreusable Food Service Ware that is Compostable or Recyclable, is Compostable and free of Fluorinated Chemicals , and is not made, in whole or in part, from Polystyrene.

C. REUSABLE FOOD SERVICE WARE FOR DINING ON PREMISES
Effective 6/1/2023

1. Prepared Food served for consumption on the Prepared Food Provider’s premises shall be served only on Reusable Food Service Ware, except that disposable paper food wrappers, sleeves, and bags , foil wrappers, paper napkins, paper tray and plate liners, and straws shall be permitted, so long as they meet the requirements set forth elsewhere in this Chapter.

2. Condiments, such as sauces, ketchup, or mustard, provided for on -site consumption, shall not be served in disposable, individual-serving packets.

3. Consumption is considered on -premises if it takes place at tables and/or seating provided by the Prepared Food Provider either on its own or in conjunction with another Prepared Food Provider.

4. New building permits and new or renewed business licenses for Food Service Providers applied for, and/or deemed complete after 6/1/2023 shall only be granted to Prepared Food Providers that can demonstrate adequate capacity to comply with subsection (C.1) herein.

5. This requirement does not prohibit a Prepared Food Provider from providing, upon a customer’s request, Nonreusable Food Service Ware compliant with subsection (B.1) for the customer to take away leftover Prepared Food after dining on the premises.

6. Prepared Food Providers subject to the requirements of subsection (C.1) that do not have onsite or off -site dishwashing capacity, or are unable to contract for services to wash, rinse, and sanitize Reusable Food Service Ware, in order to comply with applicable provisions of the California Health and Safety Code, may petition the Director for an exemption or extension under 9.15.120.

D. SALE OR DISTRIBUTION OF NON -COMPLIANT FOOD SERVICE WARE

PROHIBITED
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Effective 6/1/2023

1. No Person may sell, offer for sale, or otherwise Distribute within the City any Nonreusable Food Service Ware prohibited under Section B.1.a. or B.1.d.

2. Per Section B.3, the Director may adopt, maintain, or reference a list of compliant products.

SECTION 4. AMENDMENTS TO SECTION 9.15.120 CONCERNING EXEMPTIONS A. A Food vendor Provider may seek an exemption from the requirements under Section 9.15.110 due to a "unique packaging hardship" under Subsection B of this section, "unused inventory" under Subsection C of this section , “significant economic hardship” under Subsection D, or request a temporary exemption to request extra time for compliance under Subsection E.

B. The Food vendor Provider must demonstrate that no reasonably feasible alternative exists for to a specific and necessary prohibited nonreusable food service ware item to qualify for a "unique packaging hardship" exemption.

C. The Food vendor Provider must demonstrate that before January 1, 2014 [new effective date of this ordinance] , it purchased the prohibited polystyrene foam food service ware , which cannot be returned to the distributor and, despite the food vendor's best efforts, will remain in inventory on July 1, 2014 [date], to qualify for an "unused inventory" exemption.

D. The Food Provider must demonstrate that the provi sions of this Chapter would cause significant economic hardship. “Significant economic hardship” may be based on, but not limited to, demonstrating that suitable Nonreusable Food Service Ware is not available at a commercially reasonable price and the additional cost associated with providing the Disposable Food Service Ware is particularly burdensome to the Food Facility based on the type of operation(s) affected, the overall size of the business/operation, the number, type and location of its facilities, the impact on the overall financial resources of the Food Facility, and other factors. Reasonable added cost for a suitable item as compared to a similar item that the Food Facility can no longer use shall not by itself constitute adequate grounds to suppo rt an exemption for such item. In determining whether a significant economic hardship has been established, the Director shall consider the following information: ability of the Food Facility to recover the additional expense by increasing its prices; the availability of tax credits and deductions; outside funding; and other options.
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E. The Food Provider must demonstrate that for other reasons not already stated it needs additional time to comply with the provisions of this Chapter.

F. The Food vendor Provider may submit a written application for an exemption on a form provided by to the Environmental Programs Division. The Director of Public Works (“Director”) may require the applicant to submit additional information or documentation to make a determination regarding the exemption request. A request for exemption shall be reviewed on a case by case basis, and may be granted in whole or in part, with or without conditions, for a period of up to six (6) months or to January 1, 2015, whichever comes first one year one year.

The determination of the Director shall be final and is not subject to appeal.

G. Prepackaged Food delivered from outside the City is exempt from the provisions of this Chapter.

H. Disposable Food Service Ware that is entirely Aluminum Foil-based including, but not limited to, aluminum trays, aluminum foil wrappers and aluminum foil baskets is exempt from the provisions of this Chapter.

I. Temporary exemptions due to an emergency are automatic without the submission of a request for an exemption. An emergency is defined as a sudden, unexpected occurrence posing a clear and imminent danger that requires immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services. Examples of an emergency include, but are not limited to natural disasters, emergencies due to the release of hazardous materials, emergencies associated with loss of power and/or water, or emergency medical response.

SECTION 5. ADDITION OF NEW SECTION 9.15.1 25 CONCERNING

RECORDKEEPING AND INSPECTION

9.15.125 Recordkeeping and inspection.

A. Food Providers shall keep complete an accurate record or documents of the purchase of Nonreusable Food Service Ware evidencing compliance with this Chapter.

B. The record shall be made available for inspection at no cost to the City during regular business hours by city employees or city -designated staff authorized to enforce this Chapter. Unle ss an alternative location or method of review is mutually agreed upon, the records or documents shall be made available at the Food Provider address.
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C. The provision of false or incomplete information, records or documents to the city shall be a violation of this Chapter.

SECTION 5. AMENDMENTS TO SECTION 9.15.1 30 CONCERNING

ADMINISTRATIVE CITATIONS AND FINES

9.15.130 Administrative citations and fines.
(a) Grounds for an administrative citation. An administrative citation may be issued upon findings made by the City Manager, or his or her designee, when any person or food vendor has provided EPS foam food service ware to a customer or for violation ed of any other provision of this Chapter.
(b) Administrative citation fine amounts. Upon findings made under subsection (a), the person or food vendor shall be subject to an administrative citation pursuant to Chapter 1.10 of this Code. Fines for the administrative citation are as follows:
(1) First citation: One hundred dollars ($100.00).
(2) Second citation for the same violation within the same twelve month period: Two hundred dollars ($200.00)
(3) Third or any subsequent citation for the same violation within the same twelv e month period: Five hundred dollars ($500.00)
(4) Each day that any person or food vendor violates the provisions of this cChapter is a new and separate violation occurs.
(c) Administrative citation appeals and disposition shall be processed in accordance with Chapter 1.10 of this Code.
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Attachment D
Food Service Ware Price Comparison

This document contains data and graphics gathered and created by staff at the City of Mountain View in Fall 2021. Follow-up research by City of Cupertino staff showed current pricing largely unchanged. We thank the City of Mountain View for sharing this research work.

This document compares the typical per-item price range of commonly used disposable food service ware items. While this is not an exhaustive price survey, it provides preliminary insight into financial imp lications of the proposed food service ware regulations on food providers. While traditional plastic cups and containers are currently accepted for recycling in Cupertino , recycling markets for most of these common foodware markets are weak and they may end up contaminating the recycling if they are not empty and wiped clean. Transitioning these items to compostable, fiber -based materials or recyclable aluminum will reduce recycling co ntamination and landfilled waste. Proposed Single -Use Plastics Ordinance non-compliant items are shown in red and compliant in green.

Box-and-whisker plots divide the data into quartiles. The typical per-item price range is the middle two quartiles, 25 th through 75th percentile values of all prices surveyed. The line inside the box is the median. The lines or “whiskers” above and below the bar show the maximum and minimum prices found. The data sets exclude statistical outliers.

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1. Rectangular Tray with Lid (approximately 9”x6”)
Black plastic trays with clear lids are a commonly used type of takeou t food packaging. As shown, aluminum trays are a cost-effective compliant alternative for this type of container, with significant per-item savings over black plastic.

2. Large 9”x9” Hinged Container (“Clamshell”)
The median price for certified PFAS -free fiber clamshells is the same as that of plastic, though the typical price ranges differ . Compostable plastic is the most expensive option, so food providers currently using these items will save money by switching to compliant fiber-based alternatives.

Black plastic
w/clear lid
Certified PFAS-free
fiber tray w/lid
Aluminum tray
w/lid
Non-compliant
paper/fiber
Plastic “Compostable”
plastic
Certified PFAS-
free fiber
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3. Food Containers/Soup Cups (16 oz)
These products are often used to hold soups and other hot, liquid-based items for takeout orders. In this category, plastic containers were significantly cheaper than compliant alternatives, meaning food vendors will likely experience increased costs to comply with the proposed Single-Use Plastics Ordinance regulations.

4. Hot Beverage Cups (16 oz)
There are only two primary material types for hot beverage cups: paper that is not certified as PFAS -free, and certified PFAS -free paper or fiber. While certified options are slightly more expensive, many of the cheaper non -compliant products may no longer be allowed when California’s PFAS ban takes effect in 2023.

Non-compliant
paper/fiber
Certified PFAS-
free fiber
Plastic
Non-compliant
paper/fiber
Certified PFAS-
free paper/fiber
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5. Cold Beverage Cups (16 oz)
Cold cups are available in both plastic and fiber options. Under the proposed Single-Use Plastics Ordinance, clear plastic cups will no longer be allowed. Food providers are likely to encounter increased costs in transitioning co ld cups to compliant fiber-based options unless they currently use compostable plastic.

Overall trends:

 The impacts of switching to compostable, certified PFAS -free or recyclable aluminum disposable food service ware is likely to be a mix of cost increases and cost savings, depending on the specific foodware item and compliant alternatives.

 Compostable plastic is the most expensive option for many products. Businesse s using compostable plastic can save money switching to compliant fiber items.

 This research revealed large variation in price for the same products across different distributors, so food providers should obtain quotes from multiple distributors when searching for compliant food service ware items.

 Confusing labelling and “greenwashing” of non -compliant plastic and fiber products makes it more complicated for food vendors to identify compliant products. For example, some petroleum -based plastic items are la belled “eco - friendly” since they use less plastics than similar products or contain recycled material, but they are not compliant with the proposed ordinance.

Certified PFAS-
free paper/fiber
“Compostable”
plastic
Plastic
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CITY OF CUPERTINO
Agenda Item
22-10400 Agenda Date: 3/1/2022
Agenda #: 1.

Subject: Proclamation declaring March as Youth Arts Month on behalf of those who advocate for art education to all elementary, middle and secondary students Present proclamation declaring March as Youth Arts Month on behalf of those who advocate for art education to all elementary, middle and secondary students CITY OF CUPERTINO Printed on 2/23/2022Page 1 of 1
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WHEREAS, The City of Cupertino is committed to supporting the arts, in part, in furtherance of the goals of inspiring and preparing students for success in the 21st century, and of helping our youth to develop as productive, contributing members of a strong community; WHEREAS, Along with the Santa Clara County Office of Education, we share the vision of ensuring that students have access to a high-quality arts education that is culturally relevant and inclusive in all forms as part of a comprehensive education that sparks curiosity, imagination, creativity, and joy;
WHEREAS, The month of March is recognized as Youth Art Month in the State of California, and is an annual celebration to emphasize the value of art education for all children while encouraging support for art programs in schools;
WHEREAS, Arts-learning strategies and arts integration help teachers to recognize and build upon critical thinking skills, curiosity, flexibility, communication, innovation, and collaboration, and are traits required for post-secondary and workplace success; WHEREAS, Each March, art education is celebrated in local schools, school districts, community arts organizations, and larger communities to increase support, understanding, and interest in art education.

THEREFORE, I, Mayor Darcy Paul, and the Cupertino City Council do hereby Proclaim the month of March in the City of Cupertino as:
a ,' Jt6 support, encourage, and advocate for art education in our local classrooms and t6 )<,:'celebrate the creativity, inspiration, and joy of our youth through artistic expressiori. 2>"::;IN.WITNESS THEREOF, I have hereunto set my hand and caused the seaiof the.C,ity gf Mayoy:
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CITY OF CUPERTINO
Agenda Item
22-10486 Agenda Date: 3/1/2022
Agenda #: 2.

Subject: Proclamation proclaiming March as American Red Cross Month and presentation from the American Red Cross regarding local activities
Present proclamation proclaiming March as American Red Cross Month and receive presentation from the American Red Cross regarding local activities
CITY OF CUPERTINO Printed on 2/23/2022Page 1 of 1
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CITY OF

CUPERTINO
WHEREAS, In the City of Cupertino, the American Red Cross has a long history of helping our neighbors in need as the organization's dedication has toudied millions of lives each year; WHEREAS, March is American Red Cross Month, a special time to honor the kindness of Red Cross volunteers and donors who give their time and resources to help families and members of the community; WHEREAS, During the continuously trying times of the past year and ongoing COVID-19 pandemic, more people have stepped up to help those in need, as families across Cupertino and the United States have relied on volunteers for blood donations, food, lodging, and more; WHEREAS, We applaud our heroes here in the City of Cupertino who aid the American Red Cross as they shelter, feed, and provide emotional support to victims of disasters; supply about 40 percent of the nation's blood; teach skills that save lives; provide international humanitarian aid; and support military members and their families;
WHEREAS, The City of Cupertino dedicates the month of March to all those who give to and support the American Red Cross in its mission hj care for people in need, especiany during this challenging time. - THEREFORE, I, Mayor Darcy Paul, and the Cupertino City Council do hereby Proclaim March 2022 as
.J.i$Nffi"erffiTNoEtsos'bTe HafEfiRxeEdOtFhi' sI hTauVeesdhaey,reMuna'rochseFkimrsyt,hT:od Thanoducsaanusdedan'deTsweflen0tyf 'Twe cp..,:"""o"'I'< 54 CC 03-01-2022
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CITY OF CUPERTINO
Agenda Item
21-10215 Agenda Date: 3/1/2022
Agenda #: 3.

Subject: Brief reports on councilmember activities and brief announcements Receive brief reports on councilmember activities and brief announcements CITY OF CUPERTINO Printed on 2/23/2022Page 1 of 1
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CITY OF CUPERTINO
Agenda Item
21-10226 Agenda Date: 3/1/2022
Agenda #: 4.

Subject: Report on Committee assignments
Report on Committee assignments
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CITY OF CUPERTINO
Agenda Item
21-10237 Agenda Date: 3/1/2022
Agenda #: 5.

Subject: City Manager update
Receive City Manager update on emergency response efforts and other City business CITY OF CUPERTINO Printed on 2/23/2022Page 1 of 1
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CITY OF CUPERTINO
Agenda Item
22-10417 Agenda Date: 3/1/2022
Agenda #: 6.

Subject: Approve the February 15 City Council minutes
Approve the February 15 City Council minutes
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DRAFT MINUTES

CUPERTINO CITY COUNCIL
Tuesday, February 15, 2022

SPECIAL MEETING

At 5:30 p.m., Mayor Darcy Paul called the Special City Council Meeting to order. This was a teleconference meeting with no physical location.

ROLL CALL

Present: Mayor Darcy Paul, Vice Mayor Liang Chao, and Councilmembers Kitty Moore, Hung Wei, and Jon Robert Willey. Absent: None. All Councilmembers teleconferenced for the meeting.

COUNCIL WORKSHOP

1. Subject: Commissions and Committees Workshop
Recommended Action: Conduct Commissions and Committees Workshop and provide direction to staff
Presenter: Katy Nomura, Deputy City Manager

Written Communications for this item included a staff presentation.

Deputy City Manager Katy Nomura gave a presentation.

Mayor Paul opened the public comment period and the following people spoke.

Jennifer Griffin opposed dissolving or consolidating the Environmental Review Committee (ERC) or Design Review Committee (DRC). (Submitted written comments).

Jean Bedord was concerned about staff time spent on Commissions and Committees and consultant costs and supported streamlining the commissions. (Submitted written comments).

Housing Commissioner Govind Tatachari (representing self) supported expanding the Housing scope to review new housing projects including affordable housing. 59 CC 03-01-2022
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City Council Minutes February 15, 2022

Lisa Warren supported maintaining the ERC and DRC and expanding the scope of the Committees.

Peggy Griffin supported maintaining ERC and DRC but removing staff, a Safe Routes Committee, increasing Audit Committee meeting frequency, and other modifications.

Mayor Paul closed the public comment period.

Councilmembers asked questions and made comments.

Paul moved and Willey seconded to:

1. direct staff to prepare a proposed codification of the Economic Development Committee in the Municipal Code, with membership comprised of two members of the City Council and three members from the community representing retail hospitality and the technology industry;

2. prepare a modification to the Municipal Code regarding the Environmental Review Committee, to be comprised of two members of t he City Council and one member of the Planning Commission , and refer to the Committee the question of what scope of subject matter they would like to review and bring an update of the latter back to Council;

3. refer to the Planning Commission , the question of what scope of potential subject matter related to transportation it could review;

4. provide options for an expansion of the Audit Committee following referral of the question to a Council S ubcommittee formed , comprised Vice Mayor Chao and Councilmember Moore, and bring an update back to Council;

5. refer to the Housing Commission, the question of what scope of subject matter it has been undertaking and what subject matter it would like to review and bring an update back to Council.

Moore made a friendly amendment to appoint Mayor P aul to serve on the Subcommittee instead of Councilmember Moore. (Paul and Willey accepted the friendly amendment); Paul modified his motion to add, “and include consideration of social services” to item 5. (Willey accepted the modification).

Final Motion
Paul moved and Willey seconded to direct staff to:

1. prepare a proposed codification of the Economic Development Committee in the Municipal Code, with membership comprised of two members of the City Coun cil and three members from the community representing retail hospitality and the technology industry;
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2. prepare a modification to the Municipal Code regarding the Environmental Review Committee, to be comprised of two members of the City Council and one member of the Planning Commission, and refer to the Committee the question of what scope of subject matter they would like to review , and bring an update of the latter back to Council;

3. refer to the Planning Commission , the question of what scope of pot ential subject matter related to transportation it could review;

4. provide options for an expansion of the Audit Committee following referral of the question to a Council Subcommittee formed tonight, comprised of Mayor Paul and Vice Mayor Chao, and bring an update back to Council; and

5. refer to the Housing Commission , the question of what scope of subject matter it has been undertaking and what subject matter it would like to review , and include consideration of social services, and bring an update back to Council.

The amended motion carried unanimously.

ADJOURNMENT

At 6:44 p.m., Mayor Paul adjourned the Special City Council Meeting.

REGULAR MEETING

At 6:45 p.m. Mayor Darcy Paul called the Regular City Council Meeting to order. This was a teleconference meeting with no physical location.

ROLL CALL

Present: Mayor Darcy Paul, Vice Mayor Liang Chao, and Councilmembers Kitty Moore, Hung Wei, and Jon Robert Willey. Absent: None. All Councilmembers teleconferenced for the meeting.

CEREMONIAL MATTERS AND PRESENTATIONS

1. Subject: Proclamation supporting United Nations Human Rights Council resolution recognizing access to a healthy and sustainable environment as a universal right Recommended Action: Present proclamation supporting United Nations Human Rights Council resolution recognizing access to a healthy and sustainable environment as a universal right

Students Vansh Mathur and Caroline Cheng , on behalf of Cupertino High School Model United Nations , and District Director Tom Pyke , on behalf the Office of Congressman Ro Khanna, received the presentation.
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Mayor Paul presented the proclamation supporting United Nations Human Rights Council resolution recognizing access to a healthy and sustainable environment as a universal right.

2. Subject: Presentation by Captain Rich Urena of the Santa Clara County Sheriff’s Department regarding public safety
Recommended Action: Receive presentation by Captain Rich Urena of the Santa Clara County Sheriff’s Department regarding public safety

Written Communications for this item included a sheriff presentation.

Captain Rich Urena gave a presentation.

Mayor Paul opened the public comment period and the following people spoke.

Lisa Warren supported the presentation and asked questions about PERT (Psychiatric Emergency Response Team) training and texting 911 calls.

Peggy Griffin asked about the location accuracy of 911 calls from a cell phone, monthly statistic postings on Nextdoor, and contact information about ransomware crimes.

Housing Commissioner Govind Tatachari (representing self) asked about the PERT team covering responses to schools and colleges.

Mayor Paul closed the public comment period.

Councilmembers asked questions and made comments.

Council received the presentation by Captain Rich Urena of the Santa Clara County Sheriff’s Department regarding public safety.

Council recessed from 7:46 p.m. to 7:52 p.m.

POSTPONEMENTS AND ORDERS OF THE DAY - None

ORAL COMMUNICATIONS
Jennifer Griffin was concerned about the Housing Element number calculations in cities and rezoning areas for high density housing and supported a study session on these topics.

Lisa Warren requested project updates on Westport, Lawrence -Mitty Park, and Vallco and 62 CC 03-01-2022
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supported Council consideration of a vacancy tax.

Louise Saadati supported Council highly prioritizing more Dogs Off Leash Areas ( DOLAs) in the 2022-23 City Work Program.

Tony Alexander supported the community benefits of DOLAs and expanding to other areas of the City.

Mary Ellen Chell supported allowing more DOLAs and creating more trials in the City.

Peggy Griffin supported project updates including Mary Avenue ELI and County housing at the Outback site, considering a vacancy tax, and addressing pavement cuts in Cupertino.

REPORTS BY COUNCIL AND STAFF (10 minutes)

3. Subject: Brief reports on councilmember activities and brief announcements Recommended Action: Receive brief reports on councilmember activities and brief announcements

Council received brief reports on councilmember activities and brief announcements.

4. Subject: Report on Committee assignments
Recommended Action: Report on Committee assignments

Councilmembers highlighted the activities of their various committees.

5. Subject: City Manager update
Recommended Action: Receive City Manager update on emergency response efforts and other City business

Council received the City Manager update on emergency response efforts, development projects, and other City business.

CONSENT CALENDAR (Items 6-17)

Willey moved and Wei seconded to approve the items on the Consent Calendar except for Item Nos. 13 which w as pulled for discussion. Ayes: Paul, Chao, Moore, Wei, and Willey. Noes:

None. Abstain: None. Absent: None.

6. Subject: Approve the January 24 City Council minutes Recommended Action: Approve the January 24 City Council minutes 63 CC 03-01-2022
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7. Subject: Approve the January 27 City Council minutes Recommended Action: Approve the January 27 City Council minutes

8. Subject: Approve the February 1 (Commission Interviews) City Council minutes Recommended Action: Approve the February 1 (Commission Interviews) City Council minutes

9. Subject: Approve the February 1 City Council minutes Recommended Action: Approve the February 1 City Council minutes

10. Subject: Approve the February 7 City Council minutes Recommended Action: Approve the February 7 City Council minutes

11. Subject: Consider adopting a resolution authorizing continued remote teleconference meetings of the legislative bodies of the City of Cupertino for the period February 15, 2022 through March 16, 2022 pursuant to the Brown Act, as amended by AB 361 Recommended Action: Adopt Resolution No. 22-025 authorizing continued remote teleconference meetings of the legislative bodies of the City of Cupertino for the period February 15, 2022 through March 16, 2022 pursuant to the Brown Act, as amended by AB 361

12. Subject: Consider Planning Commission's recommendation to select Steven Scharf as the Environmental Review Committee representative
Recommended Action: Accept Planning Commission's recommendation to select Steven Scharf as the Environmental Review Committee representative

13. Subject: Consider Accounts Payable for the period ending January 10, 2022 Recommended Action: Adopt Resolution No. 22-026 accepting Accounts Payable for the period ending January 10, 2022

Councilmembers asked questions and made comments.

Mayor Paul opened the public hearing and , seeing no one, closed the public comment period.

Council unanimously consented to table this item to a future meeting pending staff provisions of materials and answers to Councilmember questions.

14. Subject: Consider Accounts Payable for the period ending January 17, 2022 Recommended Action: Adopt Resolution No. 22-027 accepting Accounts Payable for 64 CC 03-01-2022
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the period ending January 17, 2022

15. Subject: Consider Accounts Payable for the period ending January 24, 2022 Recommended Action: Adopt Resolution No. 22-028 accepting Accounts Payable for the period ending January 24, 2022

16. Subject: Consider Accounts Payable for the period ending January 31, 2022 Recommended Action: Adopt Resolution No. 22-029 accepting Accounts Payable for the period ending January 31, 2022

17. Subject: Consider approval of the Library Commission's recommendation to extend Jing Jing Yang's appointment as the Cupertino Poet Laureate until the end of 2022 Recommended Action: Adopt Resolution No. 22-030 approving the Library Commission's recommendation to extend Jing Jing Yang's appointment as the Cupertino Poet Laureate until the end of 2022

SECOND READING OF ORDINANCES - None
PUBLIC HEARINGS - None

ORDINANCES AND ACTION ITEMS

18. Subject: Options for Acquisition of Lehigh Cement Plant and Quarry by Santa Clara County
Recommended Action : Provide direction to the City Manager and City Attorney to prepare a letter in support of, and otherwise regarding, efforts by Santa Clara County to explore options for the acquisition of the Lehigh Cement Plant and Quarry and the termination of plant and quarry operations
Presenter: Christopher Jensen, City Attorney

Written Communications for this item included a staff presentation and emails to Council.

City Attorney Christopher Jensen gave a presentation.

Mayor Paul opened the public comment period and the following people spoke.

Jennifer Griffin supported the C ounty plan of purchasing the property , a City annexation, referral to Midpen, and addressing floodplain and fire risks.

Lisa Warren supported the recent actions by the County Board of Supervisors and Council sending a letter of support to the Board.

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Peggy Griffin support ed Council sending a letter of support and looking into land use and flood risk since the property lies within Cupertino's boundaries.

Mayor Paul closed the public comment period.

Councilmembers asked questions and made comments.

Willey moved and Paul seconded to authorize the City Attorney to draft, prepare, and submit a letter of support of Supervisor Simitian and the County's effort to conduct the study for the next 90 days and to incorporate the comments shared by Councilmembers in the discussion within the draft of that letter. The motion carried unanimously.

19. Subject: Consider an update on the Via -Cupertino On -Demand Community Shuttle Pilot Program and proposed grant application: California State Transportation Agency (CalSTA,) Transit and Intercity Rail Capital Program (TIRCP) Recommended Action: Receive an update on Via-Cupertino ridership since its re- launch on October 19, 2021 and consider authorization of a competitive grant application to CalSTA to fund 50% of shuttle costs in the future Presenter: Chris Corrao, Senior Transit & Transportation Planner

Written Communications for this item included a staff presentation.

Senior Transit & Transportation Planner Chris Corrao gave a presentation.

Mayor Paul opened the public comment period and the following people spoke.

Jennifer Griffin supported the program plan but was concerned about any mandates attached to accepting the grant.

Peggy Griffin supported adding the El Camino Hospital and Moun tain View Caltrain Station destinations and was concerned about wait times.

Mayor Paul closed the public comment period.

Councilmembers asked questions and made comments.

Paul moved and Chao seconded to authorize a competitive grant application to CalSTA to fund 50% of shuttle costs in the future. The motion carried unanimously.

20. Subject: Consider an update on Stevens Creek Boulevard Steering Committee and consideration of the City of Cupertino's participation in the Stevens Creek Boulevard 66 CC 03-01-2022
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Transit Vision Study
Recommended Action: Consider approving participation in the Stevens Creek Boulevard Corridor Transit Study to create a cohesive vision for the Stevens Creek Boulevard Corridor, including a study of the potential for transit Presenter: Chris Corrao, Senior Transit & Transportation Planner

Written Communications for this item included a staff presentation and emails to Council.

Senior Transit & Transportation Planner Chris Corrao gave a presentation.

Mayor Paul opened the public comment period and the following people spoke.

Jennifer Griffin was concerned about MTC and a Complete Streets Program, giving up car traffic lanes, and traffic impacts from Vallco. (Submitted written comments).

Raania Mohsen, on behalf of San Jose Vice Mayor Chappie Jones, recommended Cupertino participation in the proposed Stevens Creek Corridor Transit Vision Study.

Mayor Paul closed the public comment period.

Councilmembers asked questions and made comments.

Willey moved and Wei seconded to approve participation in the Stevens Creek Boulevard Corridor Transit Study to create a cohesive vision for the Stevens Creek Boulevard Corridor, including a study of the potential for transit. Wei made a friendly amendment for the Cupertino study to extend to Foothill Boulevard. (Willey accepted the friendly amendment). Chao made a friendly amendment to add , “preferably not using general purpose travel lanes or adverse ly impact vehicular capacity on City surface street.” (Willey accepted the friendly amendment and Wei declined the friendly amendment and the amendment was not considered ). Council did not vote on this motion.

Final Motion:

Chao moved and Paul seconded a substitute motion to approve participation in the Stevens Creek Boulevard Corridor Transit Study to create a cohesive vision for the Stevens Creek Boulevard Corridor, including a study of the potential for transit, with the amendment of preferably not us ing general purpose travel lanes nor adversely impacting vehicular capacity on City surface street and extending the study to Foothill Boulevard. The substitute motion carried unanimously.

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Council unanimously consented to continue the Regular City Council Meeting and consideration of the remaining agenda items to a Special City Council Meeting on Thursday, February 17 at 7:00 p.m.

21. Subject: FY 2021-2022 City Work Program Q2 Update
Recommended Action: Receive FY 2021-2022 City Work Program Q2 Update Presenter: Katy Nomura, Deputy City Manager

This item was continued to Thursday, February 17 at 7:00 p.m.

ORAL COMMUNICATIONS - CONTINUED (As necessary)

COUNCIL AND STAFF COMMENTS AND FUTURE AGENDA ITEMS
This item was continued to Thursday, February 17 at 7:00 p.m.

ADJOURNMENT

At 11:25 p.m., Mayor Paul adjourned the Regular City Council Meeting.

_________________________
Kirsten Squarcia City Clerk
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CITY OF CUPERTINO
Agenda Item
22-10533 Agenda Date: 3/1/2022
Agenda #: 7.

Subject: Approve the February 17 City Council minutes
Approve the February 17 City Council minutes
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DRAFT MINUTES

CUPERTINO CITY COUNCIL
Thursday, February 17, 2022

SPECIAL MEETING

At 7:00 p.m., Mayor Darcy Paul called the Special City Council Meeting to order. This was a teleconference meeting with no physical location.

ROLL CALL

Present: Mayor Darcy Paul, Vice Mayor Liang Chao, and Councilmembers Kitty Moore, Hung Wei, and Jon Robert Willey. Absent: None. All Councilmembers teleconferenced for the meeting.

FEBRUARY 15, 2022 REGULAR MEETING ORDINANCES AND ACTION ITEMS –

CONTINUED

Council continued the Regular Meeting held on the Tuesday, February 15 for the purposes of hearing, consid eration, deliberation, and decisions for Item #21 and Council and Staff Comments and Future Agenda Items.

21. Subject: FY 2021-2022 City Work Program Q2 Update
Recommended Action: Receive FY 2021-2022 City Work Program Q2 Update Presenter: Katy Nomura, Deputy City Manager

Written Communications for this item included a staff presentation and emails to Council.

Deputy City Manager Katy Nomura gave a presentation.

Mayor Paul opened the public comment period and, seeing no one, closed the public comment period.

Councilmembers asked questions and made comments.

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Council received the Fiscal Year (FY) 2021-2022 City Work Program Q2 Update.

ORAL COMMUNICATIONS - CONTINUED (As necessary) – None

COUNCIL AND STAFF COMMENTS AND FUTURE AGENDA ITEMS - CONTINUED

Councilmembers added the following future agenda items.

 look into addressing vacant housing to be rented out and a vacancy property tax (Willey/Moore)
 discuss issues with General Plan language regarding commercial/commercial residential land use designation (Moore/Willey)
 discuss how information is presented on the City website and the user website experience (Chao/Moore)
 conduct an all-commissions chair meeting (Chao/Moore)

ADJOURNMENT

At 8:44 p.m., Mayor Paul adjourned the Special City Council Meeting.

_________________________
Kirsten Squarcia City Clerk

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CITY OF CUPERTINO
Agenda Item
22-10508 Agenda Date: 3/1/2022
Agenda #: 8.

Subject: Consider resignation of Bicycle Pedestrian Commission member Maanya Condamoor and direct staff on filling the unscheduled vacancy

1. Direct staff to initiate a special recruitment and approve the application deadline and interview date for filling the unscheduled vacancy:
a. Deadline for applications of 4:30 p.m. on Friday, April 15, 2022 and b. Applicant interview date of 5:30 p.m., Tuesday, April 26, 2022 CITY OF CUPERTINO Printed on 2/23/2022Page 1 of 1
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1 CITY COUNCIL STAFF REPORT
Meeting: March 1, 2022
Subject
Consider resignation of Bicycle Pedestrian Commission member Maanya Condamoor and direct staff on filling the unscheduled vacancy.

Recommended Action

1. Direct staff to initiate a special recruitment and approve the application deadline and interview date for filling the unscheduled vacancy:
a. Deadline for applications of 4:30 p.m. on Friday, April 15, 2022 and b. Applicant interview date of 5:30 p.m., Tuesday, April 26, 2022; Discussion
Maanya Condamoor was serving h er first term on the Bicycle Pedestrian Commission which expires on January 30, 2025. She resigned from the commission on February 28, 2022, thereby leaving an unscheduled vacancy for the remaining portion of h er term. There are no available alternates to backfill the vacant position, therefore staff is requesting further action from Council to fill the vacancy by appointment. The letter of resignation is attached (Attachment A).

Consistent with Government Code 54973 et seq., the City Clerk is required to post an unscheduled vacancy notice not earlier than 20 days before and not later than 20 days after the vacancy occurs.

In addition, appointments must not be made at least 10 working days after the posting. A special vacancy notice for the unscheduled vacancy will be posted in the office of the clerk and on the City’s Web site . V acancy notices are also advertised through social media platforms and the Cupertino Scene.

Sustainability Impact
None
Fiscal Impact
If Council chooses to hold a special recruitment, notices would be published in the Cupertino Courier and the World Journal noting the application deadline and interview date. The cost for the publications would be approximately $450.
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2 _____________________________________
Prepared by: Lauren Sapudar, Deputy City Clerk
Reviewed by: Kirsten Squarcia, City Clerk
Approved for Submission by: Dianne Thompson, Assistant City Manager Attachments:

A - Resignation Letter

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1 Lauren Sapudar
From: Lauren Sapudar
Sent: Wednesday, February 16, 2022 10:16 AM
Cc: City Clerk; David Stillman; Jim Throop
Subject: Maanya Condamoor Resignation from Bike Ped Commission Good morning Mayor and Councilmembers, (bcc’d on this )

Forwarding the following letter of resignation from Bike Ped Commissioner Condamoor. Discussion of filling the unscheduled vacancy will be added for your consideration on the March 1 st agenda.

Regards,
Lauren Sapudar
Deputy City Clerk
City Manager's Office
[email protected]
(408) 777-1312

From: Maanya Condamoor <[email protected]>
Sent: Wednesday, February 16, 2022 9:00 AM
To: Kirsten Squarcia <[email protected]>; David Stillman <[email protected]> Cc: City Clerk <[email protected]>
Subject: Re: Process to resign from Bike/Ped Commission

Dear Cupertino City Council Members,

Please accept this letter as my formal notice of resignation from the Cupertino Bicycle/Pedestrian Commission, effective 2/28/22. I will be moving away from Cupertino and will no longer be able to serve on the commission. I've really enjoyed my time on the Commission and greatly appreciate all the work that you and my fellow commissioners do to make Cupertino a better place.

Thank you so much for the opportunity.

Best,
Maanya Condamoor
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2 Maanya Condamoor
Bike and Pedestrian Commissioner
[email protected]

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CITY OF CUPERTINO
Agenda Item
22-10476 Agenda Date: 3/1/2022
Agenda #: 9.

Subject: Receive the Government Finance Officers Association (GFOA) Distinguished Budget Presentation Award for Fiscal Year 2021-22 Adopted Budget Receive the Government Finance Officers Association (GFOA) Distinguished Budget Presentation Award for Fiscal Year 2021-22 Adopted Budget
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1 CITY COUNCIL STAFF REPORT
Meeting: March 1, 2022

Subject
Receipt of the Government Finance Officers Association (GFOA) Distinguished Budget Presentation Award for Fiscal Year 2021-22 Adopted Budget

Recommended Action
Consider the receipt of the Government Finan ce Officers Association (GFOA) Distinguished Budget Presentation Award for Fiscal Year 2021-22 Adopted Budget

Background
The Government Finance O fficers Association (GFOA) represents public finance officials throughout the United St ates and Canada. Its members are deeply involved in planning, financing, and implementing thousands of governmental operations in each of their jurisdictions. GFOA's mission is to advance excellence in public finance.

Discussion
GFOA awarded the City of Cupertino the Distinguished Budget Presentation Award for its F iscal Year 2021-22 Adopted Budget. This is the 24th consecutive GFOA Distinguished Budget Presentation Award received by the city. The award represents a significant achievement by the City and ref lects the commit ment of the government body and staff in meeting the highest principles of governmental budgeting. To receive the budget award, the City satisfied nationally recognized guidelines for effective budget presentation. These guidelines a re desi gned to assess h ow well an entity’s budget serves as a policy document, financial plan, operations guide, and communications device. Budget documents must be rated “p roficient” in all four categories, and in the fourteen mandatory criteria within th ose categories, to receive the award.

When a Distinguished Budget Presentation Award is granted to an entity, a Certificate of Recognition for Budget Presentation is also presented to the individual(s) or department designated as being primarily responsi ble for having achieved the award.

Although this award has been presented to the City’s Finance Division of the Administrative Services D epartment, it is a highly collaborative effort across the entire 78 CC 03-01-2022
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2 organization and the Finance Division extends its sinc ere appreciation to City staff for their continued efforts.

There are over 1,700 participants in the Budget Awards Program. The most recent Budget Award recipients, along with their corresponding budget documents, a re posted quarterly on GFOA's website. Award r ecipients have pioneered efforts to improve the quality of budgeting and provide an excellent example for other governments throughout North America. The following link provides a listing of all GFOA Award winners: https://www.gfoa.org/budget-award-winners

Sustainability Impact
No sustainability impact.

Fiscal Impact
No fiscal impact.

Prepared by: Zach Korach, Finance Manager
Reviewed by: Kristina Alfaro, Director of Administrative Services Approved for Submission by: Jim Throop, City Manager
Attachments:

A – GFOA Budget Award

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PRESENTED TO

City of Cupertino
California

For the Fiscal Year Beginning

July 01, 2021

Executive Director

GOVERNMENT FINANCE OFFICERS ASSOCIATION

Distinguished
Budget Presentation
Award
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CITY OF CUPERTINO
Agenda Item
22-10450 Agenda Date: 3/1/2022
Agenda #: 10.

Subject: Consideration of Vacation of a Public Pedestrian Walkway Easement through Tract 9405, which runs through Campo De Lozano subdivision, located near 20138 Rodrigues Avenue.

Consider conducting a public hearing, adopting Resolution No. 22-031 (Attachment A) to vacate a public pedestrian walkway easement through Tract 9405.

Presenter: Chad Mosley, Assistant Director/City Engineer CITY OF CUPERTINO Printed on 2/23/2022Page 1 of 1
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CITY COUNCIL STAFF REPORT
Meeting: March 1, 2022

Subject
Consideration of Vacation of a Public Pedestrian Walkway Easement through Tract 9405, which runs through Campo De Lozano subdivision, located near 20138 Rodrigues Avenue.

Recommended Action
Consider conducting a public hearing, adopting Resolution No. 22-xxx (Attachment A) to vacate a public pedestrian walkway easement through Tract 9405.

Discussion
The Campo De Lozano subdivision, located near 20138 Rodrigues Avenue, was subdivided, and developed around 2002. During the entitlement process, the City requested that the original developer grant the City a 10-foot-wide pedestrian pathway easement through the property, from Rodrigues Avenue to Regnart Creek Trail, to facilitate connectivity from the public right of way to the trail (Attachment B.) When the property was developed, Regnart Creek Trail was situated along the southerly boundary line of the Campo De Lozano subdivision and stretched from the westerly property line of the subdivision, eastward, to the westerly boundary of De Palma Lane, where it connected to publicly accessible sidewalks. The 10-foot-wide pedestrian pathway easement provided this section of trail with a second point of connectivity to the public right of way, ensuring that pedestrian access did not simply end at the westerly end of the trail.

In 2020, the City approved construction of new segments of the Regnart Creek Trail, including an extension of the trail westerly from the Campo De Lozano subdivision to Rodrigues Avenue and the Civic Center property. This extension creates an additional point of connectivity to Rodrigues Avenue, approximately 600-feet west of the Campo De Lozano subdivision.

The Campo De Lozano Homeowner’s Association (HOA) requested that the City now vacate the existing 10-foot-wide pedestrian pathway easement that runs through their subdivision, since the extension of the Regnart Creek trail will provide other connectivity options to the west. Further, the residents of the subdivision have concerns 82 CC 03-01-2022
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regarding the security of their property related to the existing pedestrian walkway and the expansion of public use of the Regnart Creek Trail. If the City vacates the pedestrian pathway easement, the HOA intends to restrict public access to the pedestrian pathway that runs through their property.

Staff is requesting that the City Council consider adopting a resolution vacating the easement under the California Streets and Highways Code.

Sustainability Impact
Goal two in the Cupertino Climate Action Plan is to encourage alternative transportation. Supporting measure C-T-1 is to continue to encourage multi-modal transportation, including walking and biking, through safety and comfort enhancements in the bicycle and pedestrian environment.

The General Plan includes policies that promote connectivity and mobility:

 POLICY M-2.3: CONNECTIVITY: Promote pedestrian and bicycle improvements that improve connectivity between planning areas, neighborhoods, and services, and foster a sense of community.

 POLICY M-3.2: DEVELOPMENT: Require new development and redevelopment to increase connectivity through direct and safe pedestrian connections to public amenities, neighborhoods, shopping, and employment destinations throughout the city.

Fiscal Impact
The permit application fee for an easement vacation of this type is $4,368, but the fee is being waived for this application per City Council direction at the February 1, 2022, City Council meeting. City staff time and materials will be absorbed by the City.

_____________________________________

Prepared by: Chad Mosley, Assistant Director of Public Works, and City Engineer Reviewed by: Jimmy Tan, Acting Director of Public Works Reviewed by: Dianne Thompson, Assistant City Manager
Approved for Submission by: Jim Throop, City Manager
Attachments:

A – Draft Resolution
B – Aerial Exhibit
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Attachment A
RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO

TO ORDER THE VACATION OF A PUBLIC PEDESTRIAN WALKWAY
EASEMENT PURSUANT TO SECTION 8320 ET SEQ. OF THE STREETS

AND HIGHWAYS CODE OF THE STATE OF CALIFORNIA

WHEREAS, a pedestrian walk way easement dedicated to public use presently exists in the Campo de Lozano subdivision (Tract 9405) located near 20138 Rodrigues Avenue in the City of Cupertino, as described in Exhibit A; and

WHEREAS, on February 1, 2022, the City Council adopted a resolution of intention to vacate the aforementioned walkway easement, and the City Clerk has posted signs and published notice declaring said intention, and the date, time, and place of a public hearing to consider said intention, pursuant to the provisions of Section 8320 et seq. of the California Streets and Highways Code; and

WHEREAS, pursuant to Section 8324 of the California Streets an d Highways Code, the City Council finds, from all the evidence submitted, that the public walkway easement described in the notice of hearing is unnecessary for present or prospective purposes; and

WHEREAS, it is deemed to be in the public interests that the City Council elects to proceed to order said vacation.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cupertino hereby vacates the aforesaid public walkway easement, as shown and described on the attached map, pursuant to the provisions of Section 8320 et seq. of the California Streets and Highways Code.

BE IT FURTHER RESOLVED that the City Council of the City of Cupertino hereby authorizes the City Clerk to record the executed original Resolution in the Office of the Recorder of the County of Santa Clara.

BE IT FURTHER RESOLVED that this Resolution is exempt from the requirements of the California Environmental Quality Act (“CEQA”) because it involves the minor alteration of existing facilities, involving negligible or no expansion of existing or former use, and is therefore exempt under CEQA Guidelines section 150301 (“Existing Facilities”).
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Resolution No. __________________

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 1st day of March, 2022, by the following vote:

Members of the City Council

AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED:

________
Darcy Paul, Mayor
City of Cupertino

________________________
Date
ATTEST:

________
Kirsten Squarcia, City Clerk

________________________
Date

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C it y o f C u p e r t in o P r o p e r t y I n f o r m a t io n S o u r c e s : E s r i, H E R E , G a r m in , I n t e r m a p , in c r e m e n t P C o r p . , G E B C O , U S G S , F A O , N P S , N R C A N , G e o B a s e , I G N , K a d a s t e r N L , O r d n a n c e S u r v e y , E s r i J a p a n , M E T I , E s r i C h in a ( H o n g K o n g ) , ( c ) O p e n S t r e e t M a p c o n t r ib u t o r s , a n d t h e G I S U s e r C o m m u n it y P r o p e r t y I n f o P o ly
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CITY OF CUPERTINO
Agenda Item
22-10457 Agenda Date: 3/1/2022
Agenda #: 11.

Subject: Consider accepting the Mid-Year Financial Report for Fiscal Year 2021-22; consider adopting Resolution No. 22-032 approving Budget Modification #2122-189 increasing appropriations by $9,457,951 and revenues by $10,220,000

1. Consider Accepting the City Manager’s Mid-Year Financial Report for FY 2021-22

2. Consider Adopting Resolution No. 22-032 approving Budget Modification #2122-189 increasing appropriations by $9,457,951 and revenues by $10,220,000

3. Consider Approving the Conversion of (One) Limited-Term Project Manager Position to Full- Term Position.

4. Consider Approving Amendments to City's Committed, Unassigned Fund Balance, and Use of One Time Funds Policy which includes the following changes:
a. Consider Approving $2,000,000 contribution from the General Fund to the City’s Section 115 Pension Trust
b. Consider Increasing the City’s General Fund Economic Uncertainty Committed Reserve by $5,000,000
c. Consider Establishing a General Fund Capital Project Committed Reserve in the amount of $10,000,000
Presenter: Kristina Alfaro, Administrative Services Director CITY OF CUPERTINO Printed on 2/23/2022Page 1 of 1
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1 CITY COUNCIL STAFF REPORT
Meeting: March 1, 2022

Subject
Accept the Mid -Year Financial Report for Fiscal Year 20 21-22; Consider Adopting Resolution No. 22 -XXX approving Budget Modification #2122-189 increasing appropriations by $9,457,951 and revenues by $10,220,000.

Recommended Action

1. Consider Accepting the City Manager’s Mid -Year Financial Report for FY 20 21-

22. 2. Consider Adopting a draft resolution 22-XXX approving Budget Modification #2122-189 increasing appropriations by $9,457,951 and revenues by $10,220,000.

3. Consider Appr oving the Conversion of (One) Limited-Term Project Manager Position to Full-Term Position.

4. Consider Approving Amendments to City ’s Committed, Unassigned Fund Balance, and Use of One Ti me Funds Policy which includes the follo wing changes:
a. Consider Approving $2,000,000 contribution from the General Fund to the City’s Section 115 Pension Trust.
b. Consider Increasing the City ’s General Fund Economic Uncertainty Committed Reserve by $5,000,000.
c. Consider Establishing a General Fund Capital Project Committed Reserve in the amount of $10,000,000.

Background
On June 15, 20 21, the City Coun cil adopted the Fiscal Year (F Y) 20 21-22 Budget, a $148,845,235 spending plan for the City of Cupertino that was funded by $132,850,958 of revenues an d $15,994,277 of fund balance . On November 16, 2021, Council received an update on the City’s spendin g plan as part of t he City Manager’ s First Quarter Financial Report, which revised the budget to account for encumbranc es of $16,868,361 and carryover appr opriations of $ 53,863,626 from F Y 20 21-22. These carryover appropriations included $18.5 million in capital projects, $ 19 million for V allco Town Center, and $5.9 million for Transportation projects. Encumbrances represent funds for 89 CC 03-01-2022
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2 obligations related to unfilled purchase orders or unf illed contracts that are rolled over from one year to the next until those obligations are fulfilled or terminated. Carryover appropriations are unencumbered funds for unfinished projects that are carried over for use in the following fiscal year in order to complete those projects.

In the first two quarters of FY 20 21-22, Council approv ed $9.6 million in additional appropriations mostly related to the American Rescue Plan Act of 2021 ($4.9 million), Junipero Serra Trail ($1.9 million) and First Quarter Adjustments ($1.6 million).

This resulted in an amended budget of $229,162,354. These FY 20 21-22 budget adjustments are summarized in the following table:

Mid-Year Financial Report Summary of Budget Adjustments by Fund

Fund
FY 21-22
Adopted Carryovers Encumbrances
Adjustments
Approved in 1st &
2nd Quarters
FY 21-22 Amended
Budget as of
December 31, 2021
General 89,767,034$ 22,657,533$ $ 4,906,141 7,138,606$ 124,469,314$ Special Revenue 18,597,024 11,749,252 2,414,116 212,681 32,973,073 Debt Service 2,676,000 - - - 2,676,000 Capital Projects 19,540,048 18,540,682 9,149,571 1,936,000 49,166,301 Enterprise 9,417,117 855,369 189,833 107,800 10,570,119 Internal Service 8,848,012 60,790 208,700 190,045 9,307,547 Total All Funds 148,845,235$ 53,863,626$ 16,868,361$ 9,585,132$ 229,162,354$

Discussion
The Mid -Year Financ ial Report focuses on the status of the City’s budget as of December 31, 20 21 and recommends adjustments to ensure the budget refle cts the City’s current revenue outlook and is responsive to chan ging spending priorities. As shown in the chart below , $11.3 million in budget adjustments are being requested that are offset with $1.8 million in budget reductions and $10.2 million in revenue. Included in the requested budget adjustments is a $10,000,000 transfer of excess unassigned fund balance from the General Fund to th e Capital Reserve in accordance with the City’s Reserve and One Time Use Policy. Also included is the fourth of five annual $2 million contributions to the Section 115 Pension Trust , increase in Economic Uncertai nty Reserve, and establishment o f Capital Projects Reserve . If approved, the City’s new spending plan would total $238,620,305 across all funds.

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3 Fund
Amended
Budget as of
December 31,
2021
Requested Mid-
Year
Adjustments
Year-End
Projections
General 124,469,314$ 10,000,000$ 134,469,314$ Special Revenue 32,973,073 910,000 33,883,073 Debt Service 2,676,000 - 2,676,000 Capital Projects 49,166,301 (1,847,699) 47,318,602 Enterprise 10,570,119 369,650 10,939,769 Internal Service 9,307,547 26,000 9,333,547 Total All Funds 229,162,354$ 9,457,951$ 238,620,305$

A projected increase to unassigned fund bal ance in the amount of $ 740,119 across all funds would occur as summarized in the table below.

Fund Department Expenditure Revenue Fund Balance
(Use of)
Description
560 P&R 10,300 - (10,300) Tree Maintenance 560 P&R 9,350 220,000 210,650 Additional Revenue Estimate and Bank Charges 19,650 220,000 200,350
280 Public Works -
CIP
910,000 - (910,000) Lawrence-Mitty Park Debris Removal, Clean Up, and Tree Removal
420 Public Works -
CIP
(1,847,699) - 1,847,699 All-Inclusive Play Area Budget Reduction 520 Public Works 350,000 - (350,000) New Landfill Agreement and Solid Waste Consulting Services
630 Public Works 26,000 (26,000) Leaf Blower Replacement (561,699) - 561,699
100 Non-
Departmental
10,000,000 - (10,000,000) Transfer from General Fund to Capital Reserve 429 Non-
Departmental
- 10,000,000 10,000,000 Transfer from General Fund to Capital Reserve 10,000,000 10,000,000 -
9,457,951 10,220,000 762,049

NON-DEPARTMENTAL

TOTAL NON-

DEPARTMENTAL

TOTAL ALL

DEPARTMENTS
Recommended Adjustments

PUBLIC WORKS DEPARTMENT

TOTAL PUBLIC WORKS

DEPARTMENT

PARKS & RECREATION DEPARTMENT

TOTAL PARKS &

RECREATION

DEPARTMENT

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4 General Fund Update

4-Year Comparison of Revenues, Expenditures and Changes to Fund Balance

The Cit y’s Gener al Fund historical revenue, expenditures and fund b alance demonstrates the City has historically budgeted the use of fund balance. This means the General Fund ’s amended budget estimated appropriations to exceed revenues. This use was not due to a structural deficit but due to the transfer out of excess fund balance from the General Fund to th e Capital Reserve in accordance with the City’s One-time use p olicy. Due to the C ity’s encumbrance and budget carryover process, actual expenditures in FY 2020 -21 came in lower than expected which resulted in additional excess fund balance.

Revenue
As of mid-year, General Fund revenue is tracking at $ 46 million or 2% lower than the same time last year due to changes in the City’s in various revenue sources as shown in the following table.

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5 Comparison of FY 2020-21 and FY 2021-22 General Fund Mid-Year Revenues

Mid-Year Mid-Year
2021 2022
05 - Sales tax 24,060,027$ 13,818,656$ (10,241,371)$ -43% 10 - Property tax 7,887,124 8,331,800 444,676 6% 15 - Transient occupancy 879,019 1,336,855 457,837 52% 20 - Utility tax 1,291,056 1,276,177 (14,879) -1% 25 - Franchise fees 627,465 684,498 57,033 9% 30 - Other taxes 1,704,385 1,056,602 (647,783) -38% 35 - Licenses and permits 1,951,667 2,188,177 236,511 12% 40 - Use of money and property 891,614 926,372 34,758 4% 45 - Intergovernmental revenue 1,022,927 3,433,481 2,410,554 236% 50 - Charges for services 5,230,311 6,905,845 1,675,534 32% 55 - Fines and forfeitures 53,744 105,865 52,121 97% 60 - Miscellaneous 1,048,256 989,591 (58,665) -6% 65 - Transfers in 15,000 4,862,387 4,847,387 32316% 70 - Other financing sources 87,567 52,224 (35,342) -40% Grand Total 46,750,161$ 45,968,532$ (781,629)$ -2% Revenue Category Variance % Change

Sales Tax received as of mid-year was $10.2 million (or 43%) less than last year due to the timing for which payments from the State Board of Equalization are received. Staff anticipate the final second quarter allocation will resul t in comparab le performa nce year-over-year. Since the start of the pandemic, the City’s business-to-business industry group and its County Pool allocation share has increased substantially. HdL, the City’s sales tax consultant , recentl y provided a report on sales tax pe rformance d uring the period July-September 202 1. Rest aurants and Hotels, General Consumer Go ods, Fuel and Serv ice Sta tions, Buildi ng and Construction, and Autos a nd Transportatio n were up 71%, 16%, 75% , 3%, and 4% , respectively, rep resenting substantial recovery from conditions experienced earlier in the pandemic . This strong recovery was vastly overshadowed activities in the business to business and pool allocations. Since the start of the pandemic, the City ’s business -to-business and coun ty pool allocations have vaulted and as has been exp ected, we are seeing some tapering of those trends as the State continues to recover and open businesses to the public.

Property Tax revenue has come in higher than the same time last year by $445,000 (or 6%). Residential use values increased $829.9 million (or 5%) and represented 84.1% of all growth experienced in the City. Commercial properties posted an increase of $572.8 million or a year -over-year increase of 7.6%. Unsecured assets in Cupertino decreased $700 million (or 28.9%) and were primar ily attributable to assets owned by Apple Inc. that were transferred to commercial. Overall, the FY 2 1-22 property tax revenues are anticipated to i ncrease by 3.5% over the previous fiscal year. There is still uncertainty around post-pandemic impacts to property values, such as expanded and/or permanent 93 CC 03-01-2022
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6 telecommuting. Despite the uncertain ty, the City ’s property tax base remains stro ng and HdL is currently projecting property taxes over t he next five years as presented below:

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
$29,627,822 $30,897,951 $32,223,088 $33,616,114 $35,072,217

Transient Occupancy Tax continued to be impacted by COVID-19 and the shelter-in-place orders. As of December 31, 2021, the City recognized $1.3 million in transient occupancy tax, which represents 45% of the total amount budgeted in FY 21-22. It also represents an increase of 52% over the Mid-Year point of FY 2020-21 and indicates recovery consistent with the City’s estimations.

Utility Tax decreased approximately $15,000 (or 1%) representing consistent performance over the previous year.

Franchise Fees have increased by $ 57,000 (or 9%) primarily due to an increase in Recology franchise fees collected.

Other Taxes have decreased by approximately $648,000 (or 38%) primarily due to a one- time construction tax payment received from PSI Storage in FY 20-21.

Licenses and Permits increased by $237,000 (or 12%) due to increased volume in building inspection fees.

Use o f Money and Property increased by $35,000 (or 4%) due to increased int erest earnings from the City’s investment portfolio.

Intergovernmental Revenue has increased by $2.4 million (or 236%) due to the American Rescue Plan Act funding received.

Charges for Services have increased by $ 1.7 million (or 32%) driven mainly by increases in cost allocation charges. Additionally, charges for servi ces experienced increases due to plan check fees.

Fines and F orfeitures have increased $ 52,000 (or 97%) primarily due t o increases in citations administered over the prior year.

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7 Miscellaneous revenue has decreased by $ 59,000 (or 6%) due primarily to a n increase to an ongoing donation from App le Inc. to fund additional law enforcement services that were offset with decreases in miscellaneous development agreement contributions.

Transfers In have increased by $4.8 million (or 32,316%) due to a $4.8 million transfers related to the American Rescue Plan Act.

Other Financing Sources decreased $35,000 (or 40%) due to a reduction in refundable deposit administrative fees collected over the previous fiscal year.

Expenditures
As of mid-year, overall exp enditures in the General Fund are up $9.2 million (or 22%) when compared to the same time last year due primarily to increases in transfers out for the Americ an Rescue Plan Act . The following table shows the d ifferences between General Fund expenditures as of t he mid-year in the current fisca l ye ar and the prior fiscal year:

Comparison of FY 2020-21 and FY 2021-22 General Fund Mid-Year Expenditures

Mid-Year Mid-Year
2021 2022
05 - Employee compensation 8,829,205$ 10,018,381$ 1,189,176$ 13% 10 - Employee benefits 4,117,014 4,701,573 584,559 14% 15 - Materials 1,926,628 1,826,518 (100,110) -5% 20 - Contract services 10,271,661 10,595,937 324,275 3% 25 - Cost allocation 5,236,770 5,974,031 737,261 14% 30 - Capital outlays 23,470 32,700 9,230 N/A 31 - Special projects 658,758 953,489 294,731 45% 45 - Transfer out 10,148,689 16,099,371 5,950,682 59% 50 - Other financing uses 101,433 336,005 234,572 231% Grand Total 41,313,629$ 50,538,005$ 9,224,377$ 22% Expenditure Category Variance % Change

Salary and Ben efits increases are approximately $ 1.8 million (or 14%). Compensation increases are due primarily to labor negotiations approved by Council on July 16, 2019.

Increases in salary, driven by cost-of-living adjustments and equity adjustments, can be anticipated for the span of the negotiation term ending June 30, 2022. Additionally, the FY 21-22 Adopted Budget included 6 new full -time benefitted positions (FTE). Shortly after the start of the fiscal year, the City Attorney’s Office moved from a contract service to in-house which also increased the FTE count. These classifications also experience d increases due to the tim ing of pay periods year-over-year. In FY 20 -21, there were 12 pay periods in the first have the year and 13 pay periods in FY 21 -22. These increases 95 CC 03-01-2022
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8 were offset by increases due to vacancy savings through attrition. Benefit increases were primarily due to retirement, health, and workers’ compensation costs.

Materials costs are down approximately $ 100,100 (or 5%) due primarily to decre ases across Public Works materials accounts, specifically water and electrical charges.

Contract Services have increased ap proximately $324,000 (or 3%) due primarily to increases in the City ’s sheriff con tract with the Co unty. The increases were offset by reductions due to the City Attorney function moving from contract to in-house.

Cost Allocation increases are approximately $737,000 (or 14%) due primarily to increases in I&T and Human Resources charges.

Capital Outlay costs are up approximately $9,000, due to capitalizable facilities costs that were not incurred in the previous fiscal year.

Special Projects increases are approximately $295,000 (or 45%) due to fluctuations in one- time expenditures.

Transfers Out increases are approximately $6.0 million (or 59%) and are due to a one- time transfer out within the General Fund for the American Rescue Plan Act.

Other Financing Uses have increased $235,000 (or 231%) due to refundable deposit on- call contracts for the Community Development Department.

All Other Funds Update and Year End Projections
Revenue
As of mid -year, revenue in all oth er funds is tr acking at $40.2 million (or 91%) higher than the same time last year due primarily to an increase in transfers from the General Fund to the Capital Impr ovement Program and a one -time development agreement contribution to the City’s Park Dedication Special Revenue Fund.

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9 Mid-Year Mid-Year
2021 2022
30 - Other taxes 263,532$ 9,367,692$ 9,104,160$ 3455% 40 - Use of money and property 545,022 646,636 101,614 19% 45 - Intergovernmental revenue 1,706,607 1,689,213 (17,394) -1% 50 - Charges for services 4,227,676 5,244,077 1,016,401 24% 55 - Fines and forfeitures 3,923 34,133 30,210 770% 60 - Miscellaneous 2,042,549 2,167 (2,040,382) -100% 65 - Transfers in 12,138,138 23,040,032 10,901,894 90% 70 - Other financing sources 156,140 188,157 32,016 21% Grand Total 21,083,588$ 40,212,106$ 19,128,518$ 91% Revenue Category Variance % Change

Other Taxes increased approximately $9.1 million (or 3,455%) due to a one -time development agree ment (Westport) received in the Park Dedication Special Revenue Fund.

Use of Money and Property increased by approximately $ 102,000 (or 19%) due t o increased interest earnings from the City ’s in vestment portfolio compared to the previous fiscal year.

Intergovernmental Revenue remained relatively consistent over the previous fiscal year.

Charges fo r services increased a pproximately $ 1.0 milli on (or 24%) primarily due to increases in Youth, Teen, and Recreation and Sports Center compared to the previous fiscal year.

Fines and forfeitures increased approximately $ 30,000 (or 770%) due to an increased volume in citations administered over the prior year.

Miscellaneous revenue decreased approximately $2.0 million (or 100%) due primarily to a relative reduction year-over-year in Apple donations received for various Cit y bike/ped capital projects as these projects near completion.

Transfers In increased approximately $10.9 million (or 90%) due to a n increase in new Capital Improvement Program projects in FY 21-22 require a transfer out of the Capital Reserve.

Other financing sources increased approximately $ 32,000 (or 21%) due to an increase in cost allocation revenues received by Human Resources for Workers’ Compensation.

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10 Expenditures
As of mid-year, overall expenditures are tracking at $ 28.0 million (or 40%) higher than the same time last year due primarily to increases in transfers out and contract services.

Mid-Year Mid-Year
2021 2022
05 - Employee compensation 2,187,881$ 2,347,874$ 159,993$ 7% 10 - Employee benefits 1,592,695 1,719,788 127,093 8% 15 - Materials 933,459 928,387 (5,072) -1% 20 - Contract services 1,513,681 2,577,781 1,064,100 70% 25 - Cost allocation 1,095,270 1,210,435 115,165 11% 30 - Capital outlays 6,282,774 5,109,770 (1,173,005) -19% 31 - Special projects 2,348,076 1,609,569 (738,507) -31% 40 - Debt services 1,726,694 398,000 (1,328,694) -77% 45 - Transfer out 2,004,449 11,803,048 9,798,599 489% Grand Total 19,974,936$ 27,991,803$ 8,016,867$ 40% % ChangeExpenditure Category Variance

Salary and Benef its increases are approximately $ 287,000 (or 7.6%). Compensation increases are due primarily to labor negotiations approved by Council on July 16, 2019.

Increases in salary, driven by cost-of-living adjustments and equity adjustments, can be anticipated for the span of the negotiation term ending June 30, 2022. These classifications also experienced increase s due to th e tim ing of pay periods year-over- year. In FY 20 -21, there were 12 pay period s in the first have the yea r and 13 pay periods in FY 21-22.

Materials have remained relatively consistent over the previous fiscal year.

Contract Service s have increased appr oximately $ 1.1 million (or 70%) due, but not limited, to increased services provided at the Sports Center.

Cost Allocation increased approximately $115,000 (or 11%) due primarily to increases in Innovation & Technology, Human Resources, and Finance charges.

Capital Outlays decreased approximat ely $ 1.2 million (or 19%) due to a relative reduction in the number o f projects progressing compared to last year including, but not limited to, the Library Expansion and the acquisition of Lawrence Mitty Park.

Special Projects decreased approximately $ 739,000 (or 31%) due to decreases in annual asphalt project spending.

Debt Service decreased approximately $1.3 million (or 77%) due to the refinancing of the City’s Certificates of Participation.

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11 Transfers Out increased $9.8 million (or 489%) due to a n increase in new Capital Improvement Program projects in FY 21-22 that require a transfer out of the Capital Reserve.

Budget Adjustment Requests
As of the mid-year a few departments are requesting budget adjustments to ensure they end the yea r within bud get appropriations . The r ecommended adjustm ents are summarized in the table below:

Fund Department Expenditure Revenue Fund Balance
(Use of)
Description
100 Non-Departmental 10,000,000 - (10,000,000) Transfer from General Fund to Capital Reserve 10,000,000 - (10,000,000)
280 CIP 910,000 - (910,000) Lawrence-Mitty Park Debris Removal, Clean Up, and Tree Removal
910,000 - (910,000)
420 CIP (1,847,699) - 1,847,699 All-Inclusive Play Area Budget Reduction 429 Non-Departmental - 10,000,000 10,000,000 Transfer from General Fund to Capital Reserve (1,847,699) 10,000,000 11,847,699
520 Public Works 350,000 - (350,000) New Landfill Agreement and Solid Waste Consulting Services
560 Parks & Recreation 10,300 - (10,300) Tree Maintenance 560 Parks & Recreation 9,350 220,000 210,650 Additional Revenue Estimate and Bank Charges 369,650 220,000 (149,650)
630 Public Works 26,000 - (26,000) Leaf Blower Replacement 26,000 - (26,000)

TOTAL ALL
FUNDS
9,457,951 10,220,000 762,049

TOTAL INTERNAL

SERVICE FUND
Recommended Adjustments

GENERAL FUND

CAPITAL PROJECTS FUND

ENTERPISE FUND

INTERNAL SERVICE FUND

TOTAL GENERAL FUND

TOTAL CAPITAL

PROJECTS FUND

TOTAL ENTERPRISE FUND

SPECIAL REVENUE FUND

TOTAL SPECIAL REVENUE
FUND

Lawrence-Mitty Park (CIP) (280-99-009)
The future site of the Lawrence Mitty Park is a vacant parcel of land that is easily accessible and attracted numerous trespasser s to congregate on the property. Although the Lawrence Mitty Park an d Trail Master plan is underway, some pre -development work is necessary to secure the site and make it less attractive t o trespassers until construction commences. Since the site was mainl y use d by the County as a storage yard, there are stockpiles of cons truction and de molition debris on site which create barriers for trespassers to be fully obstructed from Lawrence Expres sway. The removal 99 CC 03-01-2022
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12 of the debris and enhancing security measures woul d make it less attractive for those trespassers currently residing o n the property. The pre -development work includes coordination efforts to relocate the trespassers, removal, and disposal of approximately 3,300 cubic yards of debris, clean-up of the mate rials left onsite by trespassers , and tree trimming. The total cost is estimated to be approximately $910,000.

All-Inclusive Play Area (CIP) (420-99-051)
All-Inclusive Play Area Budget R eduction – On February 19, 2021, staff issued a memorandum to City C ouncil to provide an update on Jollyman Park All -Inclusive Playground and Grant. As stated, a Request for P roposals (RFP) was issued in December 2019 for professional fundraising services for the Jollyman Park Playground .

Three firms were found qualified t o provide services. Further evaluation following t his process concluded that the fu ndraising goal for the Playground was too high. During this time, the COVID -19 pandemic s hutdowns commenced and it was not appropriate to proceed with desig ning a project t hat might substantially exceed the available funding. Experience s b y other similar all-inclusive projects elsewhere in the County indicated that the greater than $2 million donation goal w as too high. After this conclusion, staff contacted the County to inquire about adjusting the project to structure it for success. Collaboration continued with County staff to identify lower, more realistic fundraising target, associated adjustment of project features to meet goals while reducing total project cost, and longer timelin e for project delivery. As a result, staff are recommending a reduction to the fundraising goal of $1 million and an associated reduction of the total project budget of $1,847,699.

Resource Recovery (520-81-801)
New Landfill Agreement and Solid Waste Con sulting Services – The City’s current landfill agreement expires in November 2023. All available options for waste disposition need to be considered, including renewing the cur rent agreement, routing construc tion and demolition debr is to a separate facilit y, and routing materials through a materials recovery facility. Additionally, the current Franchise Agreement with Recology requires a cost-based rate adjustment review process to inform the maximum rates for year four, which begins February 1, 2024, and recommends a performance review during rate year four. Or iginally ant icipated to begin in July 2022, review of timelines and deadlines suggests and earlier start to this long pr ocess is advisable, so creation of this special project and one-time appropriati ons of $350,000 are being requested as a mid -year adjustment to allow preliminary work to begin during FY 21-22.

Blackberry Farm Golf Course (560-63-616)
Tree Maintenance - $10,300 in additional appropriatio ns are being requested for tree maintenance, incl uding preventative tree work to remove dense or dead tr ees at the 100
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13 Blackberry Farm Golf Co urse. Due to the recent drought, more tree maintenance has been needed to reduce risk to the golf course users.

Additional Revenue Estimate and Bank Charges - The Blackberry Farm (BBF) G olf Course requires $9,350 of additional appropriations for bank charges that have resulted due to unanticipated increases in program revenues. Due to the pandemic, golf continues to be popular and one of the safer outdoor activities available to the community. Revenue received from club a nd cart rental s, merchandise sold at the pro shop, and green fees have exceeded what was originally estimated. The program requires additional funds to continue to cover the excess bank charges from the additional revenue earned and the projected revenue ($220,000) for the rest of the fiscal year.

Equipment Maintenance (630-85-849)
Leaf Blower Replacement – Staff are requ esting $26,000 in additional app ropriations to replace the Ci ty’s numerous leaf blower s. T hese funds will be us ed to comply with Cupertino's new blower noise ordinance that goes into effect November 2022 and reduce noise pollution in the communit y. This re quest will replace 55 blowers for service center maintenance staff. Due to supply shortages , staff are recommending the request at this time as opposed to waiting to include in the FY 22-23 Proposed Budget.

Non-Departmental (100-90-001 & 420-90-001)
Transfer to Capita l Reserve – Staff are recommending a $10,000,000 tr ansfer of excess General Fund fund balance to the Capital Reserve for purpose of fundi ng current a nd future capital pro jects. This request does not appropriate these dollars for specific projects; rather, it simply moves th e cash out of the General Fund and into the Capital Reserve.

Section 115 Trust (PRS P) – Staff are reco mmending a n a dditional contributio n o f $2,000,000 to the City ’s Section 115 Trust (Pension Rate Stabiliz ation Progr am). The City established th is trust with PARS in 201 8 for p urposes of 1) ma intaining local control over assets, 2) mitigating impact of large pension co st fluctuations, 3) p otential for higher invest ment returns than Gener al Fund, and 4) asset diversification. The trust’s assets ar e required t o be us ed to pay Cal PERS for related retirement costs ; however, at this time, sta ff do not anti cipate drawing down from this trust in the near future. In 2018 , the City made an addi tional contribution of $8,000,000 and had recommended funding $2 million annually for five (5) years. With th is strategy, the trust would accumulate sufficient funds to pay the difference between a 7% and 6. 25% discount rate, or approximately $42 million. With a total principal contribution amount of $14 million to date, approving this $2 million additional cont ribution will allow the City to be on schedule to address this funding gap by 2037. This transfer request moves 101
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14 funds from the General Fund ’s unassigned fund balance classification to the restricted fund balance classification and therefore does not require a budget adjustment or appropriation. Per the City ’s Committed, Unassigned Fund Balance , and Use of On e Time Funds Policy, funds in this trust may be used only at the discretion of City Council.

Staffing
The Amended Bu dget a s of December 31, 2021, has a total of 203.75 FTEs (208.75 including City Council). Staff are recommending the following changes which will have no fiscal impact for the remainder of FY 21-22.

Reclassify (One) Limited-Term Project Manager Position to Full Term Position - The majority of active projects residing with the CIP group are longer th an 1 - 2 year p rojects.

Presently there are two limited term CIP Project Manager positions, e xpiring November 2022 and J une 2023, that we’d ask to conve rt into regular term positions. The proje ct manager in this position is working on long term projects, a s are all the P roject Managers, and it would be a disruptive and financially ineffective to t he progress of the projects if CIP were to lose this Projec t Manager positions. CIP Group staff stri ve to complete the numerous projects in the City’s Work Plan an d having talent ed, dependable, and experienced Project Managers is important. The reclassific ation of this position will allow the City to continue util izing the Project Managers to complete th eir projects and take on additional projects without any disruption.

Fund Balance
The City’s General Fund ended FY 20 20-21 with $96.9 million in total fund balance. As part of the F Y 2021-22 Adopted Budget, the Ci ty projected ending the fiscal year with $83.1 million in total fund balance. As of the F irst Quarter Report, the City updated its year-end projections for FY 20 21-22 to $111.9 million in total fun d balance, an increase of $28.8 million due to increases i n revenues received an d l ower expend itures i n FY 2020-21. Projected year-end fund balance as of mid-year FY 2021-22 is estimated to b e $101.8 million. The $ 101.8 million proje ction includes a one-time t ransfer out of $ 10 million to the Capital Improvement Program Reserve Fund, a $2 million contribution to the Section 115 Pension Trust , an increase to the Ec onomic Uncertai nty Reserve from $19 million to $24 million , and the establishment of a $10 million Committed Capital Projects Reserve. If approved, projected ending unassigned fund b alance will be $ 37.2 million.

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15 General Fund Classification of Fund Balance

Actuals
Year End
Projection
Adopted
Budget
1st Quarter
Year End
Projection
Mid-Year End
Projection
CLASSIFICATION 2019-20 2020-21 2021-22 2021-22 2021-22
Non Spendable 3.45 3.44 3.44 3.44 3.44 Restricted 14.32 20.14 21.87 21.92 22.20 Committed 19.13 19.13 19.13 19.13 34.13 Assigned 3.18 4.91 3.00 4.91 4.91 Unassigned 34.43 49.23 35.70 62.47 37.15 TOTAL FUND BALANCE 74.51 96.85 83.13 111.87 101.84

To date, the City’ s external auditors have not compl eted their r eview of the City’ s financials. Revenue, expendi ture, and fund balance t otals li sted in this report are preliminary and subject to ch ange after a full review by the Cit y’s auditors. Ci ty Staff does not anticipate many, if any, changes to these figures.

Per the City’s Committed, Unassigned Fund Balanc e, and Use of One Time Funds Policy, unassigned fund balanc e over $50 0,000 are to be used in the following order to replenish comm itted fund balances with any remain ing balances to be placed in t he Capital Reserve:

1. Economic Uncertainty – increasing from $19 million to $24 million

2. PERS - $2 million contribution (4th of 5 contributions)

3. Sustainability Reserve

4. Capital Projects - $10 million

5. Unassigned

Staff recommend increasing the Economic Uncertainty Reserve from $19 million to $24 million. This increase more accurately reflects the formu la stated in the City ’s “Committed, Unassigned Fund Balance, and U se of One Time Funds Policy” (page 105 of the Adopted Budget).

2019 2020 2021 Monthly Average 1.5 Month Average Two Month Average General Fund Revenue 88,802,313$ 111,064,590$ 106,217,493$ 8,502,344$ 12,753,517$ 17,004,688.67$ General Fund Expenditures 63,014,100$ 64,589,176$ 68,723,837$ 5,453,531$ 8,180,296$ 10,907,061.83$ Economic Uncertainty Reserve Calculation
23,660,578.33$
FY

Staff are also recommending the establishment of a Committed Capital Projec ts Reserve with a starting balance of $10 millio n. The City’s Capital Improvement Program (CIP), while it has been funded with g rants and donations , has primarily bee n funded with General Fund resources ($68 million over the last 6 fiscal years). As a result, the CIP has 103
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16 become heavily reliant on a fund ing source that may not always h ave similar levels of funding from one year to the next. Establishing a Committed Rese rve will provide financial planning support to ensure resources are readily available to fund future CIP projects. Th is reserve will be es tablished at $10 million an d, only with City Council authority, will be used to fund future capital projects.

Performance Measures & Workload Indicators
Updated p erformance measur es and wor kload indicators that align with government and pri vate industry best practice s have bee n included in the Mid-Year Financial Report. Attachment C represents the stat us of th e perfor mance measures a s of Mid - Year.

City Manager Discretionary Fund
As part of the FY 2021 -22 Adopted Budget, City Council recommended and approved the reduction of the City Manager Discretionary Fund to an annual amount of $75,000.

The quarterly budget report s will detail the City Ma nager’s use of the discret ionary fund and may include recommendations to replenish depending on the extent an d nature of use. As of December 31, 2021, $2,400 was used to assist with funding a Tripepi Smith contract for the Housing Op-Ed.

American Rescue Plan Act of 2021 (ARP)
On September 7, 2021, City Council approve d use of American Rescue Plan Act of 2021 funding allocation and approved budget modification #2122 -162 increasing appropriations in the General F und (100-90-001 page 583 of the FY 2 021-22 Ad opted Budget) by $4,84 7,386.50 and r evenues in the General Fund b y $4,847,386.5 0. Of th e four (4) allowable uses of funds:

1. Public Health/Negative Economic Impacts,

2. Premium Pay,

3. Revenue Loss, and

4. Investments in Water, Sewer, and Broadband

Staff recommended, and City Council approved the allocation of use towards Revenu e Loss. City s taff anticipate realizing these “losses” before December 31, 2023, the end of the period of availability. This action allows the City to m aintain curren t levels of operations and government services and affords City Council the continued abil ity to consider new pro jects and in itiatives in the future. The budget mo dification moves dollars from the General Fund’s Non -Departmental Department to all o ther Departments in the G eneral Fund for purposes of su bstantiating and reporting the use of grant dollars received. As expenditures are incurred, and revenue losses are realized, the City will recogniz e the $4,847,386.50 in revenues on a matching basis. As of 104
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17 December 31, 2 021, the City has recognized $ 3,054,213 of ARP revenues ($286,248 in Q2). Below is the status o f the specific items as of December 31 , 2021, that w ere approved by ARP funding.

Project Title
Budgeted
Amount
Expenditures as of
September 30, 2021*
Expenditures as of
December 31, 2021*
Total Expenditures
Life-to-Date
Budget
Remaining
CWP - Climate Action Plan 78,000$ 40,465.94$ 37,534$ 78,000$ - $ CWP - Personal Preparedness 10,000$ -$ -$ -$ 10,000$ Administration Overhead (Cost Allocation) 249,106$ 62,276.50$ 62,277$ 124,553$ 124,553$ Administration Overhead (Cost Allocation) 134,039$ 33,509.75$ 33,510$ 67,020$ 67,020$ Internal Audit 150,000$ -$ 50,425$ 50,425$ 99,575$ General Liability Insurance 182,112$ 182,112.00$ -$ 182,112$ - $ CWP - Homeless Jobs Program 200,000$ -$ 5,187$ 5,187$ 194,813$ CWP - General Plan and Muni Code Update 250,000$ 8,264.74$ 10,787$ 19,052$ 230,948$ CWP - RHNA 295,000$ -$ 59,645$ 59,645$ 235,355$ CWP - Encouraging Dark Sky Compliance 10,000$ -$ -$ -$ 10,000$ CWP - Development Accountability 10,000$ -$ -$ -$ 10,000$ CWP - Sign Ordinance Update 25,000$ -$ -$ -$ 25,000$ Regulating Diversified Retail Use 4,862$ -$ -$ -$ 4,862$ Community Funding 82,396$ 82,396.00$ -$ 82,396$ - $ Accela Business License 17,500$ -$ 17,500$ 17,500$ - $ Customer Service Solution 65,000$ 42,180.00$ 7,163$ 49,343$ 15,658$ ERP exploration 50,000$ -$ -$ -$ 50,000$ Performance Management Application 13,808$ -$ -$ -$ 13,808$ Law Enforcement Services (SCC) 972,987$ 972,987.00$ -$ 972,987$ - $ CWP - Municipal Water System 10,000$ 10,000.00$ -$ 10,000$ - $ CWP - Revisit 5G 250,000$ -$ -$ -$ 250,000$ Replenish Transfer to Fund 270 for Pavement Maintenance 1,333,773$ 1,333,773.00$ -$ 1,333,773$ - $ CWP - Mental Health Support 10,000$ -$ -$ -$ 10,000$ CWP - Senior Strategy 34,000$ -$ 2,221$ 2,221$ 31,779$ CWP - Dogs Off Leash Area 5,000$ -$ -$ -$ 5,000$ CWP - Revamping Block Leader and Neighborhood Watch 1,500$ -$ -$ -$ 1,500$ Library Services 403,304$ -$ -$ -$ 403,304$ TOTAL 4,847,387$ 2,767,965$ 286,248$ 3,054,213$ 1,793,174$ * To the extent of ARP allocations that have been budgeted.

Conclusion
The Mid-Year Financial Report shows the City is well-positioned to move forward. City staff reco mmend adjustments of $ 9,457,951 in ne w appropr iations funded by $10,220,000 in revenues. If approved, the City’s fund balance will increase by $762,049.

Prepared by: Zach Korach, Finance Manager
Reviewed by: Kristina Alfaro, Director of Administrative Services Approved for Submission by: Jim Throop, City Manager
Attachments:

A – Draft Resolution
B – Mid-Year Financial Report for Fiscal Year 2021-22
C – Mid-Year Performance Measures
D – Mid-Year Budget Adjustment Journal
E – Budget Transfers Detail as of 12.31.2021
F – Committed, Unassigned Fund Balance, and One Time Funds Policy (Clean) G – Committed, Unassigned Fund Balance, and One Time Funds Policy (Redline)

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Attachment A
RESOLUTION NO. 22-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING THE OPERATING BUDGET FOR FISCAL YEAR 2021-22 BY

APPROPRIATING, TRANSFERRING, AND UNAPPROPRIATING MONIES

FOR SPECIFIED FUNDS

WHEREAS, the orderly administration of municipal government depends on a sound fiscal policy of maintaining a proper ratio of expenditures within anticipated revenues and available monies; and

WHEREAS, accomplishing City Council directives, projects and programs, and performing staff duties and responsibilities likewise depends on the monies available for that purpose; and

WHEREAS, the City Manager has determined that the balances from the funds specified in this resolution are adequate to cover the proposed amended appropriations, and therefore recommends the fund reallocations described herein.

NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby approve the recommended fund reallocations and ratifies the attached amended appropriations as set forth in Exhibit A.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 1st day of March 2022, by the following vote:

Vote Members of the City Council

AYES:

NOES:

ABSENT:

ABSTAIN:

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SIGNED:
________
Darcy Paul, Mayor
City of Cupertino

________________________
Date
ATTEST:

________________________

Kirsten Squarcia, City Clerk

________________________
Date

Appropriation
Amendment by Fund
Appropriation
Amendment
Revenue
Amendment
Fund Balance
(Use of)
General Fund $10,000,000 $- ($10,000,000) Special Revenue Fund $910,000 $- ($910,000)
Capital Projects Funds ($1,847,699) $10,000,000 $11,847,699 Enterprise Fund $369,650 $220,000 ($149,650) Internal Service Fund $26,000 $- ($26,000) Total Appropriation
Amendment All Funds $9,457,951 $10,220,000 $762,049 (Exhibit A)

Attachment A
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This Financial Report is interactive. Click on a chart to learn more.

Background
On June 15, 2021, the City Council adopted the Fiscal Year (FY) 2021-22 Budget, a $148,845,235 spending plan for the City of Cupertino that was funded by $132,850,958 of revenues and $15,994,277 of fund balance. On November 16, 2021, 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 $16,868,361 and carryover appropriations of $53,863,626 from FY 2021-22. These carryover appropriations included $18.5 million in capital projects, $19 million for Vallco Town Center, and $5.9 million for Transportation projects. Encumbrances represent funds for obligations related to unfilled purchase orders or unfilled contracts that are rolled over from one year to the next until those obligations are fulfilled or terminated. Carryover appropriations are unencumbered funds for unfinished projects that are carried over for use in the following fiscal year in order to complete those projects.

In the first two quarters of FY 2021-22, Council approved $9.6 million in additional appropriations mostly related to the American Rescue Plan Act of 2021 ($4.9 million), Junipero Serra Trail ($1.9 million) and First Quarter Adjustments ($1.6 million).

This resulted in an amended budget of $229,162,354.

Amended Budget

CITY OF CUPERTINO
FY 2021-22 Mid-Year Financial Report
The following is the Mid-Year Financial Report, submitted by the Administrative Services Department for the period of July 1, 2021 to December 31, 2021 for the 2021-22 Fiscal Year. It has been prepared to inform the City Council, City leadership and the public of the City’s fiscal status. 108
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2021-22
Adopted Budget
2021-22
Amended Budget
Q1
2021-22
Amended Budget
Q2
Fiscal Y ear

0.0 50.0M
100.0M
150.0M
200.0MDollars
Public Works
Capital Projects
Community Development
Non Departmental
Law Enforcement
Parks and Recreation
Administration
Administrative Services
Innovation & Technology
Council and Commissions
Flow of Funds Chart (in Millions)
General Fund Revenues, Expenditures, and Fund Balance
To date the City’s financial statement audit has yet to be issued and revenue, expenditure, and fund balance totals listed in this report are preliminary and subject to change after a full review by the City’s auditors. City staff does not anticipate many if any changes from the auditors. 109
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2017-18
Amended Budget
Q2
December
2017-18
Actual
December
2018-19
Actual
2019-20
Amended Budget
Q2
June
2019-20
Actual
December
2020-21
Actual
2021-22
Adopted Budget
December
2021-22
Actual
Fiscal Y ear

0.0 100.0M

25.0M

50.0M

75.0M
125.0MDollars
Revenues
Expenses
Sort Large to Small 
-$4,563,298.35
Revenues Less Expenses in Dec 2021
-$20M
-$15M
-$10M
-$5M
$0
$5M
$10M
Dec 2017 Dec 2019 Dec 2021
$22,115,206.66
Revenues Less Expenses in Jun 2021
-$5M
$0
$5M
$10M
$15M
$20M
$25M
Jun 2018 Jun 2019 Jun 2020 Jun 2021
General Fund Revenue and Expenditure Trends
As of December 31, 2021, General Fund expenditures are $50.5 million; this represents 41% of budgeted appropriations. Expenditures at the mid-year point of the prior three years ranged between 44% and 62% of the final actual expenditures which places current mid-year actuals slightly below the range. General Fund revenues are at $46.0 million; this represents 34% of the budgeted revenue. Revenues at the mid-year point of the prior three years were between 34% and 44%, placing this year within the range. Staff will continue to monitor its leading revenue sources as the year progresses.

General Fund Revenues - Expenses at Mid-Year General Fund Revenues - Expenses at Year End 110
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General Fund Revenues - Mid- Year Actuals vs Budget
Data Updated today
12/2017 12/2018 12/2019 12/2020 12/2021

34.17%
In Revenues of $134,543,590.00 Budgeted through Dec 2021 General Fund Expenses - Mid- Year Actuals vs Budget
Data Updated today
12/2017 12/2018 12/2019 12/2020 12/2021

40.60%
In Expenses of $124,469,314.00 Budgeted through Dec 2021 $45,974,707.03
Revenues in Dec 2021
$0
$20M
$40M
$60M
$80M
$100M
$120M
Dec 2017 Dec 2018 Dec 2019 Dec 2020 Dec 2021
$50,538,005.38
Expenses in Dec 2021
$0
$20M
$40M
$60M
$80M
$100M
Dec 2017 Dec 2018 Dec 2019 Dec 2020 Dec 2021
$45,974,707.03
Revenues in Dec 2021
Sales Tax
Property Tax
Other
Intergovernm...

Transfers In
Charges for ...
$50,538,005.38
Expenses in Dec 2021
Transfers Ou...

Contract Ser...

Other
Employee Ben...

Cost Allocat...

Employee Com...

General Fund Classification of Fund Balance
Projected year-end fund balance as of mid-year FY 2021-22 is estimated to be $101.8 million. The $101.8 million projection includes a one-time transfer out of $10 million to the Capital Improvement Program Reserve Fund, a $2 million contribution to the Section 115 Pension Trust, an increase to the Economic Uncertainty Reserve from $19 million to $24 million, and the establishment of a $10 million Committed Capital Projects Reserve. If approved, projected ending unassigned fund balance will be $37.2 million.

To date, the City’s outside auditors have not completed their review of the City’s financials. Revenue, expenditure, and fund balance totals listed in this report are preliminary and subject to change after a full General Fund Revenues - Mid-Year vs Year End Actuals General Fund Expenses - Mid-Year vs Year End Actuals General Fund Revenues by Type General Fund Expenses by Type 111
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review by the City’s auditors. City Staff does not anticipate many, if any, changes from the auditors.

Recommended Adjustments
As of Mid-Year, departments are requesting budget adjustments to ensure they end the year within budget appropriations. The recommended adjustments are summarized in the table below:
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$10,220,000.00
Funds in 2022
Capital Impr...

Blackberry F...
$9,457,951.00
Funds in 2022
General Fund
Other
Blackberry F...

Vehicle/Equi...

Resource Rec...

Park Dedicat...
$10,220,000.00
Departments in 2022
Non Departme...

Parks and Re...
$9,457,951.00
Departments in 2022
Non Departme...

Capital Proj...

Parks and Re...

Public Works
Summary
The Mid-Year Financial Report shows the City is well-positioned to move forward. City staff recommend adjustments of $9,457,951 in new appropriations funded by $10,220,000 in revenues. If approved, the City’s fund balance will increase by $762,049.

City of Cupertino, California
Cupertino City Hall
10300 Torre Avenue
Cupertino, CA 95014-3202
View the City Council Meeting Agenda
View the City's Budgets
View the City's Financial Transparency Portal
Powered by OpenGov
Revenue Adjustments by Fund Expense Adjustments by Fund Revenue Adjustments by Department Expense Adjustments by Department 113
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City of Cupertino
FY 21-22 Budget Performance Measures
Department: City Manager's Office, City Clerk Division
GOAL: Streamline information processing for Council, staff and community members for compliance with State requirements and facilitate independent and transparent access to public information.

Enabled by… Measure
FY20
Jul-Jun
FY21
Jul-Jun
FY22
Jul-Dec
Ongoing
Target
City Council minutes for meetings
presented for Council approval by the
following regular meeting
100% 100% 100% 100%
Adopted City Council resolutions and
ordinances processed and scanned to
Laserfiche within a week of Clerk’s
office receipt of final, signed document
60% 80% 80% 100%
Public Record Act requests responded
to by the Statutory deadline date 100% 100% 100% 100%
So that…
All can fully participate in local government to achieve the community & organizational goals.

Online
information and
updated records
that can be
easily accessed
in a timely
manner.

Response to
records requests
to comply with
State law of 10
days.
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City of Cupertino
FY 21-22 Budget Performance Measures
Department: Administration, City Manager's Office, Sustainability Division GOAL: Implement Cupertino’s Climate Action Plan and General Plan Sustainability Element to achieve quantifiable emissions reductions, conserve finite resources, and achieve utility cost avoidance and savings across municipal operations and community partners.

Enabled by… Measure
FY20
Jul-Jun
FY21
Jul-Jun
FY22
Jul-Dec
Ongoing
Target
% community-wide emissions reduced
from baseline of 307,288 MT CO2e/yr
15%
reduction
by 2020
(261,195
MT
CO2e/yr)
Initiate and implement all Climate
Action Plan near-term measures
% initiated
% complete or ongoing
100%
79%
100%
79%
100%
79%
100%
100%
% municipal operations emissions
reduced from baseline of 1,865 MT
CO2e/yr
15%
reduction
by 2020
1 Cupertino's GHG inventories are conducted roughly every 3-5 years.

So that…
2018 inventory: 24% decrease in
emissions from baseline
(258,659 MT CO2e/yr)
2018 inventory: 66% reduction
in emissions from baseline: 642
MTCO2e
An agency
implementing
Council and
community
sustainability
goals to
effectively
safeguard
shared
resources.

Engaged
community
partners and
volunteers
supporting CAP
implementation
Cupertino is a thriving City to live, work, learn and play. 115
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City of Cupertino
FY 21-22 Budget Performance Measures
Department: Administration, City Manager's Office, Office of Communications Division GOAL: Promote and increase interest and participation in City services, programs, initiatives, and projects while building community pride and positive identification with the City among its residents.

Enabled by… Measure
FY20
Jul-Jun
FY21
Jul-Jun
FY22
Jul-Dec
Ongoing
Target
Social media engagement: total number
of followers including City Hall
Nextdoor, Facebook, Twitter, and
Instagram accounts
31,906 35,177 37,367
10%
annual
increase
Social media engagement: average
number of engagements (reactions,
comments, shares, and clicks) per post
on City Hall Facebook account

72.3 66.5 85.1
10%
annual
increase
Cupertino 311: Average response time to
customers organization-wide (in days):

2.8 Days 3.5 Days 3.3 Days
Average
Close Time
5 Days
So that…
Clicks have now been added to the engagement metric, which will bump up the average number.

The performance measure for “Access Cupertino: Average response time to customers organization-wide” was revised as Access Cupertino was replaced by Cupertino 311 in September 2017. The target has been revised to “Average Close Time,” which reflects how many days it took to handle a request.

The Cupertino 311 Application is administered through the IT Department, but each individual department is responsible for responding to its own requests. Response times are organized by request category.

Residents have access to timely, engaging, and important information Leveraging the
communication
skills,
knowledge, and
experience of
employees while
utilizing existing
and emerging
technologies to
enhance,
improve, and
streamline the
communication
process.
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City of Cupertino
FY 21-22 Budget Performance Measures
Department: Administration, City Manager's Office, Video Division Enabled by…
Measure
FY20
Jul-Jun
FY21
Jul-Jun
FY22
Jul-Dec
Ongoing
Target
Percentage of total video productions
performed vs scheduled productions (city
meetings excluded)
145%
32/22
522%
47/9
362%
29/8 100%
Percentage of total engineering projects vs
scheduled projects
233%
7/3
250%
15/6
300%
6/2 100%
Total video views on YouTube and Granicus
platforms combined* 215,607 246,313 83,417 5% annual
increase
So that…
* Percentage skewed due to pandemic - more overall views due to daily press conference postings GOAL: Video Division oversees numerous outreach projects, public meetings, internal equipment upgrades, and public events. These activities coincide with the City Council and City’s expectation for a positive presence in the community and communications and transparency to residents. 24/7 government access
channel, radio station,
digital signage network,
City website, and
numerous online video
platforms.

Public awareness, interest, understanding, and participation in the issues, programs, and services presented by the City of Cupertino can be enhanced. 117
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City of Cupertino
FY 21-22 Budget Performance Measures
Department: City Manager's Office, Economic Development Division Enabled by…
Measure
FY20
Jul-Jun
FY21
Jul-Jun
FY22
Jul-Dec Ongoing Target
Maintain Economic Development
Business Connect Subscribers
2,000 2,500 2,500 2,800
Economic Development Business
Workshops & Events 11 3* 2 12 per year
*limited due to COVID
So that…
GOAL: To actively pursue opportunities in the areas of business attraction, retention, and expansion as a means of promoting economic vitality, and strengthening the City’s sales tax base to support Cupertino’s excellent quality of life for its residents, businesses, and daytime population.

Effective
partnerships
and proactive
Economic
Development
programs to
support local
businesses.

Cupertino's economy and sales tax revenue base are diversified to further enhance the City's financial stability and its ability to provide quality amenities to the community. 118
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City of Cupertino
FY 21-22 Budget Performance Measures
Department: Law Enforcement
Law Enforcement
Goal: Maintain a safe environment to live, work, learn and play.

Enabled by… Measure
FY20
Jul-Jun
FY21
Jul-Jun
FY22
Jul-Dec
Ongoing
Target
Priority 1 3.51 3.40 4.31 5 minutes
Priority 2 6.37 6.07 6.52 9 minutes
Priority 3 11.96 11.80 11.28 20 minutes
Teen Academy 83% 92% 90% 80%
Citizen Academy 65% N/A N/A 80%
Response time for emergency calls
% programs maintaining minimum
attendance
All members of the
community are
safe, informed,
empowered and
supported.
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City of Cupertino
FY 21-22 Budget Performance Measures
Department: Innovation & Technology
Innovation & Technology
Goal: Provide superior delivery of information and technology services to city employees and constituents while continually enhancing levels of engagement.

Enabled by… Measure
FY20
Jul-Jun
FY21
Jul-Jun
FY22
Jul-Dec
Ongoing
Target
GIS: % of time spent Developing
Application 10% 25% 25% 35%
GIS: % of time Maintaining
applications 90% 75% 70% 65%
GIS: Met Requests within SLA (map,
data, Web maps, Cityworks, schema,
other) completed
97% 98% 100% 100%
GIS: Cityworks utilization - # of assets
Cupertino maintains vs # of assets
maintained in Cityworks. Also the %
increase of work units completed
(WOs, INSP,SRs)
45/31
70%
45/31
20%
45/35
50%
45/45
20%
Infrastructure: Percentage based upon
number of scheduled projects/Number
of projects completed on time
80% 86%
71% 100%
Infrastructure: Percentage based upon
number of HelpDesk tickets/SLA
measurements
93% 94% 93% 90%
Infrastructure: % Customer satisfaction
based upon Satisfaction Rate from
helpdesk tickets

99.1% 98.7% 100.0% 85%
Infrastructure: % of network uptime
(not including planned maintenance) 99.9% 99.9% 100.0% 99% Applications: % of citywide-enterprise
application project management
performed on time and on budget
96% 95% 95% 95%
Applications: Number of website site
visits/Number of site hits 1,624,377 800,164 823,496
5%
annual
increase
Applications: Number of support
request for the applications support
per month
45 65 55 20
* Not tracked
838/575 900/600GIS: Increase Property Information
(Internal/External) site visits per month 665/2,671 691/533 Tools and
services leverage
existing,
emerging and
innovative
technologies to
enhance,
improve, and
streamline
business and
communications
processes
Integrated
information
services enable
customers’
access to the
tools and
information they
need, when and
where they need
it
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City of Cupertino
FY 21-22 Budget Performance Measures
Department: Administrative Services
Finance
Goal: Financial Stability - Provide a sustainable level of core services that are funded from ongoing and stable revenue sources.

So that… Measure
FY20
Jul-Jun
FY21
Jul-Jun
FY22
Jul-Dec
Ongoing
Target
General Fund fund balance as a % of
budgeted appropriations 69% 103% 78% 35%
Credit Rating AA+ AA+ AA+ AA+
Actual expenditures (% below budget) 17% 15% 23% 5%
So that…
Citizens can enjoy high quality services that meet community priorities.

Human Resources
Goal: To create a thriving organization with meaningful careers in public service.

So that…
Measure
FY20
Jul-Jun
FY21
Jul-Jun
FY22
Jul-Dec
Ongoing
Target
# of Worker’s Compensation Cases 15 10 13 0
Total recordable Injury Rate YTD 5.70% LM LM 0%
% absenteeism
(% of total annual work hours) 3% 2% 2% 2%
% turnover rate 3% 5% 3% 1%
% Employee satisfaction N/A N/A N/A 100%
% Employee participation in wellness
activities 47% 43% 47% 75%
Average # of applications received per
recruitment 41 70 48 50
Recruitment timeline - # days from
hiring request to offer letter 85 78 70 60
# of employees using the Telework
program N/A N/A N/A 17
% Utilization of full-service employee
portal 100% N/A* N/A* 100%
*Data not applicable
So that…
Citizens can enjoy high quality services that meet community priorities.

Actual revenue vs. budget (% below
budget) -7% -19% -35% 10%
Funding allocated to high priority
services (Public Works, Community
Development, Law Enforcement)
43% 53% 53% 63%
The City is
financially
responsible.

The City can
invest in
Community
priorities.

The City can
ensure a safe
working
environment for
all employees
The City attracts
and retains a
talented
workforce
The agency builds
a flexible and
productive work
arrangement.
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City of Cupertino
FY 21-22 Budget Performance Measures
Department: Community Development Department
Community Development
Goal: Review and guide development activity to ensure compliance with relevant codes and policies, and alignment with community values to promote and enhance Cupertino's community-wide quality of life.

Enabled by… Measure
FY20
Jul-Jun
FY21
Jul-Jun
FY22
Jul-Dec Ongoing Target
Building permit applications shall be
plan reviewed within 15 business days.
92% 93% 93% 80%
Customer/Applicants visiting the
Building Permit Counter shall be assisted
within 15 minutes
93% ** 100%*** 80%
Applicants visiting the Planning Counter
shall be assisted within 15 minutes 91% ** 100%*** 50%
Building permit applications
reviewed/issued over-the-counter (OTC)
63% ** ** 75%
Below market rate rental and purchase
vacancies filled
11 14 11 15 per year
Housing resources and referrals
provided
109 129 82 100 per year
Complimentary/courtesy prelim app
reviews completed within 4 weeks 83% 79% 69% 80%
Average number of days to initiate
investigation of code complaints 0.21 0.077 0.059 < 7
Code enforcement cases resolved without
issuance of citations 85% 98% 91% 80%
Landlord-tenant counseling and dispute
resolution cases provided
28 46 23 100 per year
Public Outreach Events 4 ** ** 12 per year
*Data provided from July 2019 - February 2020 due to shelter-in-place mandate. ** No data due to closure of city hall.

So that…
*** In-person appointment started July 15, 2021, the counters were temporary closed in January 10, 2022 due to the surge of the COVID-19 Omicron variant.

Efficient
planning and
building
services and
enhanced
customer
service.

Effective code
enforcement
services.

Affordable and
Below Market
Rate Housing
programs and
public service
grants.

Cupertino is a thriving City to live, work, learn and play. 122
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City of Cupertino
FY 21-22 Budget Performance Measures
Department: Parks and Recreation
Parks and Recreation
Goal: Create a positive, healthy and connected community.

Enabled by…
Measure
FY20
Jul-Jun
FY21
Jul-Jun
FY22
Jul-Dec
Ongoing
Target
% of Parks and Recreation Department
customers surveyed who rate services
as good or excellent
98% 94% 91% 85%
% of programs maintaining minimum
registration 62% 46% 79% 80%
% change in participants* -16% -39% 117% +1%
*Increase due to more programs offered and partial reopening of services.

So that…
Cupertino has an exceptional system of parks and services that align with community values. 50% 40%
# of new programs or events offered 89 37 4 50
% Department's total cost recovery for
all (direct and indirect) costs
37% 39%
City investment in
quality recreation
and community
programs
Improved
business processes
to improve
customer
experience
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City of Cupertino
FY 21-22 Budget Performance Measures
Department: Public Works
Capital Project Delivery
So that…
Measure
FY20
Jul-Jun
FY21
Jul-Jun
FY22
Jul-Dec
Ongoing
Target
Percentage of projects completed on
budget
95% 90% 100% 95%
Percentage of construction projects
completed on time 78% 90% 100% 95%
Goal: Develop and deliver projects on time and within budget that serve the resident's needs and supports the City's stability and growth *FY21: 10 projects completed, 9 projects on budget and time *FY22: 2 projects completed
City funds
capital
improvement
projects.

Projects are
utilized by the
community.

Benefit: Residents and businesses are assured their community is being improved by insightful, targeted and efficient use of taxes and fees towards maintaining and improving the City's facilities and assets. 124
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Environment
Goal: Protect our natural environment for current and future generations.

So that...

Measure
FY20
Jul-Jun
FY21
Jul-Jun
FY22
Jul-Dec
Ongoing
Target
Percent of businesses in compliance
during annual proactive stormwater
pollution prevention inspections
95% 96% N/A* 75%
Percent of non-exempt businesses and
multi-family accounts separating
organics
CY 2019
64% 79%** 81%***
100% by
7/1/2022
(SB1383)
Percent trash/litter reduction achieved to
meet Stormwater Permit requirements
92% 88% N/A**** 100% by
7/1/2022
Diversion rate from all single-family,
multi-family, and commercial accounts
as reported by Recology tonnage reports
54% 53% 52% 55%
Respond to reports of actual or potential
discharge the same business day
89% 89% 97% 95%
% of plan reviews completed in required
number of days 83% 90% 91% 100%
Cubic yards of compost distributed via
compost site 740 CY 1,165 CY 240 CY 1,000 CY
% of vegetation obstructions resolved
within 15 days from time of report* 38% 31% 35% 100%
*Inspections occur in the spring only
**as of 12/31/2020
***as of 9/7/2021
****calculated for Annual Report in September
City is
responsible for
a
comprehensive
storm water
pollution
prevention
program.

Potential
pollutants are
stopped before
entering the
storm drain
system.

City implements
solid waste
collection
services that
encourage
diversion of
waste from
landfills.

Benefit: Current and future residents enjoy a healthy, sustainable environment.

Diversion of
solid waste from
landfill is
maximized,
compost is
produced for
community use,
recyclable
material is sold
to help offset
collection costs
and methane
gas emissions at
landfills are
reduced.
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Development Services
Goal: Provide timely review and permitting of privately completed improvements within the public right of way.

So that…
Measure
FY20
Jul-Jun
FY21
Jul-Jun
FY22
Jul-Dec
Ongoing
Target
Respond to complete plan submittals or
applications within two (2) weeks 95% 93% 95% 90%
Respond to complete encroachment
permit applications within two (2) weeks 93% 92% 94% 90% Respond to public inquiries at the Public
Works counter in City Hall within 15
minutes
95% * * 95%
*In-person counter closed starting March 2020
Grounds Division
So that... Measure
FY20
Jul-Jun
FY21
Jul-Jun
FY22
Jul-Dec
Ongoing
Target
Percentage of 311 requests that are
responded to and closed within 3
business days
72% 74% 85% 80%
Percentage of the 2,964 park inspections,
including play grounds, performed 3
times weekly
100% 100% 50% 100%
Percentage of Backflow Prevention
Devices inspected, tested and repaired
annually
100% 100% 50% 100%
Goal: Provide well maintained, clean, and safe areas for the community’s recreational use and enjoyment at optimal life cycle costs.

Improvements
within the
public right of
way have
engineering
oversight and
are constructed
to City
standards.

Public
improvements
are consistent
and meet the
needs of the
community.

Benefit: Customers can expect quality reviews and permitting on a defined schedule, and the community can expect quality public facilities.

The City
consistently
funds park
maintenance
and safety
improvement
programs.

Benefit: Cupertino has a well maintained public park system that meets the needs of the community and is beneficial to personal wellness.

Parks are
maintained in
good, usable
condition;
safety
programs are
effective.
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Streets Division
So that… Measure
FY20
Jul-Jun
FY21
Jul-Jun
FY22
Jul-Dec
Ongoing
Target
Pavement condition index (PCI) > or
equal to 82 85 85 85 82
Percent of the 2199 storm drain inlets
inspected and cleaned in fiscal year 94% 95% 1% 100%
Percent of Inlets with Trash Capture
Screens inspected and cleaned twice
yearly
100% 100% 50% 100%
Percentage of roadway regulatory &
street name signs repaired or replaced 5.1% 5.5% 2.8% 7% Percentage of trip and fall complaints
investigated and mitigated within 2
business days
100% 100% 100% 98%
Percentage of reported streetlight
outages investigated and repaired in 3
business days
89% 90% 90% 90%
Trees and Right of Way Division
So that... Measure
FY20
Jul-Jun
FY21
Jul-Jun
FY22
Jul-Dec
Ongoing
Target
Percentage of 311 requests that are
responded to and closed within 3
business days
96% 95% 83% 95%
Percentage of trees inspected and
maintained in the yearly maintenance
zone (8 year maintenance cycle)
76% 97% 23% 100%
Percentage of trees planted versus trees
removed
# planted/# removed
76%
69/91
92%
187/202
78%
66/84 101%
Goal: Timely maintenance of public sidewalks, streets, streetlights and storm drain system in good condition to ensure safe, environmentally compliant, and accessible infrastructure that minimizes liability and has an optimal life cycle cost.

Goal: Maintain and enhance the City's street trees and medians to ensure a safe, healthy and environmentally conscious Urban Forest.

The City
consistently
funds street and
storm drain
maintenance
and safety
improvement
programs.

Street and
storm drain
systems are
maintained in a
good condition;
safety
programs are
effective.

Benefit: Cupertino has well maintained street and storm drain systems that meet the needs of the community.

Benefit: Cupertino has a healthy and safe urban forest and medians provide good aesthetic and environmental value.

The City
consistently
funds street
tree and
median
maintenance
and safety
programs
Street trees and
medians
remain in good
health and
condition
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Facilities and Fleet Division
So that… Measure
FY20
Jul-Jun
FY21
Jul-Jun
FY22
Jul-Dec
Ongoing
Target
Percentage of preventative maintenance
work orders completed for Fleet assets
within 14 days of the due date.
82% 83% 97% 85%
Percentage of facilities maintenance
requests closed within 30 days. 90% 89% 83% 90%
Transportation Division
So that... Measure
FY20
Jul-Jun
FY21
Jul-Jun
FY22
Jul-Dec
Ongoing
Target
Percentage of non-emergency traffic
signal requests addressed within 72
hours.
90% 90% 93% 100%
Percentage of emergency traffic signal
requests addressed within 2 hours. 100% 100% 100% 100%
Percentage of traffic engineering
requests responded to within 72 hours 95% 95% 95% 95%
Annual mileage increase of separated
bicycle lanes and pedestrian paths.

0.72 1.30 0.66 1 mile
Goal: Timely maintain City Facilities and City Fleet to meet staff, community and environmental requirements at an optimal life cycle cost.

Goal: Ensure the efficiency and safety of the transportation system for all modes of travel.

The City
consistently
funds facility
and fleet
maintenance,
fleet
procurement,
and safety
improvement
programs.

Benefit: Cupertino has well maintained, usable, and safe facilities and fleet in order to meet the needs of staff and the community.

Benefit: Having a safe and efficient transportation system that is inviting for all modes of travel.

Infrastructure
indicates good
condition;
safety
programs are
effective.

Facilities and
Fleet remain in
good and
operable
condition.
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Attachment D
Fund GL Account Expenditures Revenues Fund  Balance Description 100 General Fund 100‐90‐001‐800‐902          10,000,000                       ‐         (10,000,000) Transfer from General Fund to Capital Reserve TOTAL GENERAL
FUND
10,000,000                       ‐         (10,000,000) 280 Park Dedication 280‐99‐009 700‐702               910,000                       ‐              (910,000) Lawrence‐Mitty Park Debris Removal, Clean Up, and Tree Removal
TOTAL CAPITAL
PROJECTS FUND
910,000                       ‐              (910,000)
420 Capital
Improvement Projects
420‐99‐051‐900‐905          (1,847,699)                      ‐            1,847,699  All‐Inclusive Play Area Budget Reduction 429 Capital Reserve 429‐90‐001‐421‐401                        ‐          10,000,000        10,000,000  Transfer from General Fund to Capital Reserve TOTAL CAPITAL
PROJECTS FUND
(1,847,699)       10,000,000        11,847,699
520 Resource Recovery 520‐81‐801‐750‐XXX               350,000                       ‐              (350,000) New Landfill Agreement and Solid Waste Consulting Services
560 Blackberry Farm
Golf Course
560‐63‐616‐420‐433                        ‐                   7,700                 7,700  Additional Revenue Estimate and Bank Charges 560 Blackberry Farm
Golf Course
560‐63‐616‐420‐444                        ‐                   6,300                 6,300  Additional Revenue Estimate and Bank Charges 560 Blackberry Farm
Golf Course
560‐63‐616‐450‐403                        ‐               206,000             206,000  Additional Revenue Estimate and Bank Charges 560 Blackberry Farm
Golf Course
560‐63‐616‐700‐702                 10,300
‐                (10,300) Tree Maintenance
560 Blackberry Farm
Golf Course
560‐63‐616‐700‐707                   9,350                       ‐                  (9,350) Additional Revenue Estimate and Bank Charges TOTAL ENTERPRISE
FUNDS
369,650             220,000            (149,650)
630 Vehicle
Re
placement
630‐85‐849‐600‐608                 26,000                       ‐                (26,000) Leaf Blower Replacement TOTAL INTERNAL
SERVICE FUNDS
26,000                       ‐                (26,000)
TOTAL ALL FUNDS            9,457,951        10,220,000             762,049 CAPITAL PROJECTS FUND
Mid‐Year FY 2021‐22 Recommended Adjustments
ENTERPRISE FUNDS
INTERNAL SERVICE FUNDS
GENERAL FUND
SPECIAL REVENUE FUND
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Attachment E
GL Account Amount Description
100‐10‐100 700‐702 ‐ Contract Services General Service Agreement 2,400$                    Housing Op Ed Tripepi Smith ‐ CM Discretionary 100‐14‐123 719‐705 ‐ Contingencies Contingencies (2,400)$                  Housing Op Ed Tripepi Smith ‐ CM Discretionary ‐$
100‐12‐120 600‐642 ‐ Materials Telphone and Data Services (1,040)$                  Divisional transfer to fund satelite phone with County 100‐12‐633 600‐642 ‐ Materials Telphone and Data Services 1,040$                    Divisional transfer to fund satelite phone with County ‐$
100‐71‐705 500‐501 ‐ Employee Compensation Salaries Full Time 115,115$                Economic Development Manager Transfer from Contract Services 100‐71‐705 501‐500 ‐ Employee Benefits Retirement System 36,019$                  Economic Development Manager Transfer from Contract Services 100‐71‐705 501‐502 ‐ Employee Benefits Pers 1959 Surv Empr 41$                         Economic Development Manager Transfer from Contract Services 100‐71‐705 501‐505 ‐ Employee Benefits Health Insurance 12,473$                  Economic Development Manager Transfer from Contract Services 100‐71‐705 501‐506 ‐ Employee Benefits Dental Insurance 918$                       Economic Development Manager Transfer from Contract Services 100‐71‐705 501‐507 ‐ Employee Benefits Medicare
1,669$                    Economic Development Manager Transfer from Contract Services 100‐71‐705 501‐508 ‐ Employee Benefits Life Insurance 482$                       Economic Development Manager Transfer from Contract Services 100‐71‐705 501‐509 ‐ Employee Benefits Long Term Disability 438$                       Economic Development Manager Transfer from Contract Services 100‐71‐705 501‐511 ‐ Employee Benefits Vision Insurance 120$                       Economic Development Manager Transfer from Contract Services 100‐71‐705 501‐513 ‐ Employee Benefits Rec Bucks 335$                       Economic Development Manager Transfer from Contract Services 100‐71‐705 700‐702 ‐ Contract Services General Service Agreement (167,610)$              Economic Development Manager Transfer from Contract Services ‐$
100‐15‐141 600‐642 ‐ Materials Telphone and Data Services 432$                       Senior Assistant CAO Cell Phone 100‐15‐141 700‐702 ‐ Contract Services General Service Agreement (432)$                     Senior Assistant CAO Cell Phone ‐$
100‐15‐141 600‐642 ‐ Materials Telphone and Data Services 432$                       CAO Cell Phone 100‐15‐141 700‐702 ‐ Contract Services General Service Agreement (432)$                     CAO Cell Phone ‐$
100‐15‐141 600‐613 ‐ Materials General Supplies 10,425$                  CAO annual subscriptions 100‐15‐141 700‐702 ‐ Contract Services General Service Agreement (10,425)$                CAO annual subscriptions ‐$
100‐15‐141 500‐501 ‐ Employee Compensation Salaries Full Time 158,398$                Senior Assistant City Attorney reclass for salary and benefits 100‐15‐141 501‐500 ‐ Employee Benefits Retirement System 49,563$                  Senior Assistant City Attorney reclass for salary and benefits 100‐15‐141 501‐502 ‐ Employee Benefits Pers 1959 Surv Empr 42$                         Senior Assistant City Attorney reclass for salary and benefits 100‐15‐141 501‐505 ‐ Employee Benefits Health Insurance 12,426$                  Senior Assistant City Attorney reclass for salary and benefits 100‐15‐141 501‐506 ‐ Employee Benefits Dental Insurance 915$                       Senior Assistant City Attorney reclass for salary and benefits 100‐15‐141 501‐507 ‐ Employee Benefits Medicare 2,297$                    Senior Assistant City Attorney reclass for salary and benefits 100‐15‐141 501‐508 ‐ Employee Benefits Life Insurance 480$                       Senior Assistant City Attorney reclass for salary and benefits 100‐15‐141 501‐509 ‐ Employee Benefits Long Term Disability 436$                       Senior Assistant City Attorney reclass for salary and benefits 100‐15‐141 501‐511 ‐ Employee Benefits Vision Insurance 120$                       Senior Assistant City Attorney reclass for salary and benefits 100‐15‐141 501‐513 ‐ Employee Benefits Rec Bucks 334$                       Senior Assistant City Attorney reclass for salary and benefits 100‐15‐141 700‐702 ‐ Contract Services General Service Agreement (225,011)$              Senior Assistant City Attorney reclass for salary and benefits ‐$
100‐15‐141 500‐501 ‐ Employee Compensation Salaries Full Time 255,000$                City Attorney reclass for salary and benefits 100‐15‐141 500‐506 ‐ Employee Compensation Car Allowance 4,200$                    City Attorney reclass for salary and benefits 100‐15‐141 501‐500 ‐ Employee Benefits Retirement System 79,790$                  City Attorney reclass for salary and benefits 100‐15‐141 501‐502 ‐ Employee Benefits Pers 1959 Surv Empr 62$                         City Attorney reclass for salary and benefits 100‐15‐141 501‐505 ‐ Employee Benefits Health Insurance 4,500$                    City Attorney reclass for salary and benefits 100‐15‐141 501‐506 ‐ Employee Benefits Dental Insurance 1,372$                    City Attorney reclass for salary and benefits 100‐15‐141 501‐507 ‐ Employee Benefits Medicare 3,698$                    City Attorney reclass for salary and benefits 100‐15‐141 501‐508 ‐ Employee Benefits Life Insurance
720$                       City Attorney reclass for salary and benefits 100‐15‐141 501‐509 ‐ Employee Benefits Long Term Disability 654$                       City Attorney reclass for salary and benefits 100‐15‐141 501‐511 ‐ Employee Benefits Vision Insurance 179$                       City Attorney reclass for salary and benefits 100‐15‐141 501‐513 ‐ Employee Benefits Rec Bucks 500$                       City Attorney reclass for salary and benefits 100‐15‐141 501‐517 ‐ Employee Benefits Deferred Comp 19,500$                  City Attorney reclass for salary and benefits 100‐15‐141 700‐702 ‐ Contract Services General Service Agreement (370,175)$              City Attorney reclass for salary and benefits ‐$
100‐32‐308 600‐606 ‐ Materials Software (8,000)$                  Software purchase to contract service 100‐32‐308 700‐702 ‐ Contract Services General Service Agreement 8,000$                    Software purchase to contract service ‐$
100‐32‐308 600‐606 ‐ Materials Software (15,000)$                Software purchase to contract service 100‐32‐308 700‐702 ‐ Contract Services General Service Agreement 15,000$                  Software purchase to contract service ‐$

100‐88‐846 700‐702 ‐ Contract Services General Service Agreement (435,185)$              Transfer to specific contract service account for tracking purposes 100‐88‐846 700‐709 ‐ Contract Services Crossing Guard 435,185$                Transfer to specific contract service account for tracking purposes TOTAL ‐$
Budget Transfers as of December 31, 2021
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Attachment F
Fiscal Policies – Committed, Unassigned Fund
Balance, and Use of One Time Funds Policy

PURPOSE
To establish assigned and unassigned fund balance and one time use policies.

SCOPE
The General Fund and Capital Funds.

POLICY
To maintain sufficient committed and unassigned fund balance (general fund only) in each fund for the ability to meet following economic uncertainties:

Economic Uncertainty – $24,000,000 and represents two months of General Fund (GF) operating expenditures excluding transfers out plus a two year drop in total general fund revenue of 13% or approximately 1.5 months, excluding the use of reserves . Transfers out are primarily used to fund Capital Projects and do not represent on -going expenditures. This assignment will change fr om year to year based on budgeted general fund expenditures and revenues.
 Mitigate short-term economic downturns and volatility in revenues (2 years or less)  Sustain city services in the event of an emergency
 Meet requirements for debt reserves
 Meet operating cash flow requirements as a result of delay in the receipt of taxes, grant proceeds and other operating revenues

PERS – $20,491,004 and represents the initial investment into the City’s Pension Rate Stabilization Program (PRSP). As a result of the significant increase in retirement costs based on the most recent actuarial forecast, the City elects to establish and fund a secondary pension trust to assist in stabilizing the potential impact of pension cost volatility on the City’s operating budget. Annual contributions subsequent to the initial funding are determined by calculating the difference between CalPERS’ current discount rate and a more conservative rate determined by the City. This difference is to be transferred to the pension trust and to be used solely for the benefit of members in the plan. Funds in this trust are technically “restricted” under Governmental Accounting Standards Board (GASB) Statement No. 54 in that the funds are legally restricted to be used for retirement costs; however, the timing for which these funds may be used is only at the discretion of City Council.
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Attachment F

Capital Projects - $10,000,000 and represents the amount of General Fund resources readily available to fund future capital projects in the City’s Capital Improvement Program (CIP). The City’s Capital Projects Funds has a $5,000,000 reserve threshold; however, establishing a secondary reserve in the City’s General Fund will enable more efficient and accurate short- and long-term capital budgeting and planning.

Sustainability Reserve – Cupertino’s Sustainability Division oversees the City’s Climate Action Plan (CAP), which defines strategies to reduce greenhouse gas emissions, and provides residents, businesses and schools with programs and services foc used on energy efficiency, renewable energy, water conservation, alternative transportation and other sustainable actions.

The City receives rebates for projects that successfully meet the eligibility requirements such as energy or water efficiency. If t he rebates were not initially budgeted, they are categorized as committed fund balance in the General Fund. The purpose of this reserve is to help support future sustainability projects/programs.

Unassigned – $500,000 and represents 1% of the total gen eral fund operating budget . This assignment may change from year to year based on budgeted general fund expenditures.  Absorb unanticipated operating needs tha t arise during the fiscal year that were not anticipated during the budget process
 Absorb unexpected claims or litigation settlements

Capital Improvement – $5,000,000 and represents average dollars spent for capital projects in the last three fiscal years. This assignment may change from year to year based on actuals dollars spent on capital projects and anticipated future capital project needs.  Meet future capital project needs so as to minimize future debt obligations

The City shall not use fund balances/reserves in lieu of revenues to pay for ongoing expenses except as specifically provided in the City’s reserve policy.

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Attachment F
The chart below summarizes reserve policy levels as described above:

Funding
Priority Reserve
Reserve
Level Escalator¹ Description

GENERAL FUND
1 Economic
Uncertainty
$24,000,000 GF Budgeted
Operating
Expenditures²
GF Budget
Revenue³
For economic
downturns and
major revenue
changes.
2 PERS $20,491,004 Budgeted
Citywide
Retirement
Costs
For pension cost
increases.
3 Capital Projects $10,000,000 None For future capital
project funding.
4 Sustainability
Reserve
$127,891 GF Budget
Revenue³
For future
sustainability
projects/programs.
5 Unassigned $500,000 Budgeted GF
Operating
Expenditures²
For mid-year
budget
adjustments and
redeployment into
the five year
budget.

CAPITAL PROJECTS FUNDS
6 Capital
Improvement
$5,000,000 None Reserves set aside
for future capital
projects.
______________
¹ Rounded to the nearest hundred thousand
² Excludes Transfers Out
³ Excludes the use of reserves

Changes to Committed Fund Balance – All reserves listed in this policy , with the exception of the PERS restricted reserve , are classified as Committed Fund Balance under GASB Statement No. 54. Committed fund balance is comprised of amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision - 133
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Attachment F
making authority. Changes to committed fund balances must be approved by City Council.

This policy will be reviewed annually as part of the budget process.

Replenishment process – Should the City need to utilize any of the committed fund balances listed in this policy, recommendation will be brought to City Council for approval and a plan to replenish the committed balance will be developed in conjunction with its use.

Excess – Funding of these reserves will come generally from one -time revenues, annual net income, and transfers from other reserves that exceed policy levels. They will be funded in the following priority order with any remaining funds to be placed in the Capital Reserve:

1) Economic Uncertainty
2) PERS
3) Capital Projects
3) Sustainability Reserve
4) Unassigned
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Attachment G
Fiscal Policies – Committed, Unassigned Fund
Balance, and Use of One Time Funds Policy

PURPOSE
To establish assigned and unassigned fund balance and one time use policies.

SCOPE
The General Fund and Capital Funds.

POLICY
To maintain sufficient committed and unassigned fund balance (general fund only) in each fund for the ability to meet following economic uncertainties:

Economic  Uncertainty  –  $1924,000,000  and  represents  two  months  of  General  Fund  (GF) operating  expenditures  excluding  transfers  out  plus  a  two  year  drop  in  total  general  fund revenue of 13% or approximately 1.5 months, excluding the use of reserves.  Transfers out are primarily  used  to  fund  Capital  Projects  and  do  not  represent  on‐going  expenditures.  This assignment  will  change  from  year  to  year  based  on  budgeted  general  fund  expenditures  and revenues.
 Mitigate sho
rt‐term economic downturns and volatility in revenues (2 years or less)  Sustain city services in the event of an emergency
 Meet requirements for debt reserves
 Meet operating cash flow requirements as a result of delay in the receipt of taxes, gr ant proceeds and other operating revenues

PERS  –  $20,491,004  and  represents  the  initial  investment  into  the  City’s  Pension  Rate Stabilization Program (PRSP).  As a result of the significant increase in retirement costs based on the most recent actuarial forecast, the City elects to establish and fund a secondary pension trust to  assist  in  stabilizing  the  potential  impact  of  pension  cost  volatility  on  the  City’ s  operating
budget.  Annual contributions subsequent to the initial funding are determined by calculating the difference between CalPERS’ current discount rate and a more conservative rate determined by the City.  This difference is to be transferred to the pension trust and to be used solely for the benefit  of  members  in  the  plan.  Funds  in  this  trust  are  techni cally  “restricted”  under
Governmental  Accounting  Standards  Board  (GASB)  Statement  No.  54  in  that  the  funds  are legally restricted to be used for retirement costs; however, the timing for which these funds may be used is only at the discretion of City Council.
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Attachment G

Capital Projects ‐ $10,000,000 and represents the amount of General Fund resources readily available to fund future capital projects in the City’s Capital Improvement Program (CIP). The City’s Capital Projects Funds has a $5,000,000 reserve threshold; however, establishing a secondary reserve in the City’s General Fund will enable more efficient and accurate short‐ and long‐term capital budgeting and planning.
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Attachment G
Sustainability Reserve – Cupertino’s Sustainability Division oversees the City’s Climate Action Plan  (CAP),  which  defines  strategies  to  reduce  greenhouse  gas  emissions,  and  provides residents,  businesses  and  schools  with  programs  and  services  focused  on  energy  efficiency, renewable energy, water conservation, alternative transportation and other sustainable actions.

The City receives rebates for projects that successfully meet the eligibilit y requirements such as energy  or  water  efficiency.  If  the  rebates  were  not  initially  budgeted,  they  are  categorized  as committed  fund  balance  in  the  General  Fund.  The  purpose  of  this  reserve  is  to  help  support future sustainability projects/programs.

Unassigned  –  $500,000  and  represents  1%  of  th e   total  general  fund  operating  budget.   This assignment may change from year to year based on budgeted general fund expenditures.  Absorb  unanticipated  operating  needs  that  arise  during  the  fiscal  year  that  were  not anticipated during the budget process
 Absorb unexpected claims or litigation settlements

Capital  Improvement  – $5,000,000  an d  represents  average  dollars  spent  for  capital  projects  in the  last  three  fiscal  years.   This  assignment  may  change  from  year  to  year  based  on  actuals dollars spent on capital projects and anticipated future capital project needs.  Meet future capital project needs so as to minimize future debt obligations

The  City  sh all not  use fund balances/reserves  in  lieu  of revenues  to  pay  for  ongoing  expenses except as specifically provided in the City’s reserve policy.

The chart below summarizes reserve policy levels as described above:

Funding
Priority  Reserve
Reserve
Level  Escalator¹  Description
GENERAL FUND
1  Economic
Uncertainty

$1924,000,000
GF Budgeted
Operating
Expenditures²
GF Budget
Revenue³
For economic
downturns and
major revenue
changes.
2  PERS   $20,491,004   Budgeted
Citywide
Retirement
Costs
For pension cost
increases.
3  Capital Projects  $10,000,000  None  For future capital project funding.
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Attachment G
4  Sustainability
Reserve
$127,891   GF Budget
Revenue³
For future
sustainability
projects/programs.
5  Unassigned   $500,000   Budgeted GF
Operating
Expenditures²
For mid‐year
budget
adjustments and
redeployment into
the five year
budget.

CAPITAL PROJECTS FUNDS
6  Capital
Improvement
$5,000,000   None  Reserves set aside
for future capital
projects.
______________
¹ Rounded to the nearest hundred thousand
² Excludes Transfers Out
³ Excludes the use of reserves

Changes to Committed Fund Balance – All reserves listed in this policy, with the exception of the  PERS  restricted  reserve,  are  classified  as  Committed  Fund  Balance  under  Government Accounting Standards Board (GASB) Statement No. 54.    Committed fund balance is comprised of amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision‐making authority.   Changes to committed fund balances must be approved by City Council.   This policy will be reviewed annually as part of the budget process.

Replenishment process – Should the  City need to  utilize  an y  of the  committed  fund balances listed in this policy, recommendation will be brought to City Council for approval and a plan to replenish the committed balance will be developed in conjunction with its use.

Excess  –  Funding  of  these  reserves  will  come  generally  from  one‐time  revenues,  annual  net income, and transfers from other reserves that exceed polic y levels. They will be funded in the
following priority order with any remaining funds to be placed in the Capital Reserve:

1) Economic Uncertainty
2) PERS
3) Capital Projects
3) Sustainability Reserve
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Attachment G
4) Unassigned
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CITY OF CUPERTINO
Agenda Item
22-10456 Agenda Date: 3/1/2022
Agenda #: 12.

Subject: Progress update of the Housing Element Update, and review, discuss, and approve selection of stakeholders group
Receive report and provide feedback on the progress, review the stakeholders selection process, and consider approval of the stakeholders group
Presenter: Ben Fu, Community Development Director
CITY OF CUPERTINO Printed on 2/23/2022Page 1 of 1
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CITY
COUNCIL STAFF REPORT
Meeting: March 1, 2022
Subject
Progress  update  report  from  EMC  Planning  Group  regarding  the  Housing  Element update process. Discussion and approval of the Housing Element update Stakeholders group.

Recommended Action
Receive report and provide feedback on the progress of the Housing Element update, review the Stakeholders selection process, and consider approval of the Stakeholders group membership.

Discussion
Background
The City is currently preparing its 6th Cycle Housing Element update, which covers the planning period of 2023 to 2031. The Housing Element is part of Cupertino’s General Plan and identifies policies and programs intended to meet the housing needs of the City’s current and future residents, at all levels of income. State law requires that every city and county in California adopt a Housing
Element every eight years to reflect the Regional
Housing  Needs  Allocation  (RHNA)  established  for  each  jurisdiction  by  the  State.  The City’s RHNA is 4,588 units for the 2023‐2031 planning period.

Once a jurisdiction’s RHNA has been determined cities must demonstrate that they have adequate housing sites to accommodate thei
r RHNA. There are guidelines and specific
requirements on site selection, that ensure the City has policies in place to support the development of housing for persons at all income levels, as specified by State law. The City is presently in the process of refining and finalizing its site selection in ventory, which has  been  the  focus  of  two  Planning  Commission  study  sessions  on  January  25,  and February 22, 2022, with a follow up study session on February 28, 2022. Completing the site  selection  inventory  is  a  key  step  in  the  housing  Element  update  process  that  will enable the City
to define the scope of the Housing Element update and assess the update in accordance with the California Environmental Quality Act (CEQA). 141
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2 Analysis
On September 21, 2021, the City Council awarded a consultant agreement to prepare the 6th Cycle Housing Element update to EMC Planning Group (EMC). Since that time EMC and City staff have held two City Council study sessions, on September 28 and November 16, 2021, focusing on the overall Housing Element update process and State requirements that  have  greatly  expanded  the  role  and  extent  of  public  outreach  required  for  the  6th Cycle.  Additionally,  a  separate  Housing  Commission  study  session  and  community workshop were held on December 9, 2021. These meetings were followed by the three previously  mentioned  Planning  Commission  study  sessions  in  January  and  February 2022 that focused on the site selection inventory process.

Attached to this brief staff report is a me morandum  prepared by EMC that discusses the principal State requirements of the Housing Element update process, the current status of the City’s Housing Element update, and the sites selection inventory guidance received from the Planning Commission at the Commission’s recent study sessions. Additionally, EMC’s  memorandum  provides  an  update  on  the  Stakeholders  Group  application  and selection process. The formation of a Stakeholders Group is part of an extensive ongoing outreach effort by EMC to solicit input from and include a broad spectru m of community
members’ ideas and perspectives into the Housing Element update.

Next Steps
EMC’s  scope  of  work  includes  a  robust  public  engagement  plan,  including  public meetings and study sessions, community workshops, stakeholder group meetings, online engagement,  and  translation/interpretation  services  to  be  completed  in  a  manner ensuring that a State‐compliant Housing Element can be presented to the City Council by the State’s January 31, 2023 deadline.

The next immediate step in the Housing Element update process is a City Council work session scheduled for March 15, 2022 to further discuss the sites selection process.

Sustainability Impact
No sustainability impacts.

Fiscal Impact
No fiscal impact.

Prepared by:   Luke Connolly, Senior Planner
Piu Ghosh, Planning Manager

Reviewed by: Benjamin Fu, Director of Community
Dianne Thompson, Assistant City Manager
Christopher Jensen, City Attorney
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3 Approved by: Jim Throop, City Manager

Attachments:

Supplemental Staff Report Memo by EMC
A ‐ 6th Cycle Housing Element Update—Public  Engagement Activities to date B ‐ Stakeholder group Questions
C ‐ List of Recommended stakeholder scores and response to primary narrative question D ‐ HCD Revision request letter for Monterey Park

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EMC Planning Group
To: Planning Commission
From: Ande Flower, EMC Planning Group;
Date: March 1, 2022
Re: Public outreach update and recommended Stakeholder Group li st

SUMMARY
This  memorandum  describes  public  outreach  to  date  for  the  Housing  Element  update  process  and presents a list of recommended candidates for the Stakeholder Group.

ACTION REQUEST
Receive the report for current and planned public outreach, review the proposed list of stakeholders, and provide guidance for next steps.

BACKGROUND
The success of the 6th Cycle Housing Element Update process hinges in part on a community outreach and engagement program that is robust, inclusive, and meaningful. In 2018, Assembly Bill 686 (AB 686) established a state mandate that expanded the duty of all California’s public agencies to affirmatively further fair housing (AFFH). This mandate included outreach to equitably include all stakeholders in the Housing Element public participation program. Through our process, we encourage capacity‐building for those who have not traditionally been part of policy discussions to better understand the housing need in the region in a way that helps create long‐term engagement Staff and consultants continue to strive to engage all economic segments of the community within and surrounding Cupertino (including residents and/or their represe ntatives) in the development and update of the housing element thus far. To date, this public participation effort has included:
 Developing Housing Element Update webpages in 5 languages  Developing a mapping exercise for the public (Cupertino Housing Simulator tool)  Providing updates to City Council, Planning Commission, and Hou sing Commission  Contributi
ng Housing Element Updates to the Scene and Items of Interest Newsletters  Hosting a De
cember 9th Virtual Community Workshop
 Distributing a mailed postcard to all Cupertino residents  Creating a Stakeholder Gr
oup
 Distributin
g letters to property owners for the sites inventory process 144
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EMC Planning Group
Additionally, our team has worked directly with West Valley Community Services (WVCS) to better understand the housing needs of the region. Working regionally is particularly important because understanding the needs of those who are not able to currently live in Cupertino, but would like to, is essential for HCD requirements for our next steps with policy discussions. Our engagement with WVCS includes a current survey of needs.

EMC Planning Group is also working directly with the ABAG Santa Clara Collaborative Steering Committee for AFFH. By participating with this Committee, we are positioned to provide Cupertino with the most current information for AFFH data integration, particularly with the draft Lawyers' Committee AFH report for Civil Rights work for Santa Clara County, which may be reviewed this spring by Council.

DISCUSSION
Increased participation is encouraged and we remain open to discovering additional ways to bring people to  the  Housing  Element  update  discussion.  The  numbers  of  people w h o  h a v e  j o i n e d  t h e  D e c e m b e r Workshop and who have submitted draft housing plans with the Cupertino Housing Simulator tool have, however, been less than anticipated.

PUBLIC OUTREACH NEXT STEPS:
 We welcome ideas for additional  attention for the public to bec ome engaged with this Housing Element update process, such as a banner similar to what has been used in Saratoga.  Streamline  communications  from  EMC  Planning  Group  to  the  public  subscribed  the  housing website: https://engagecupertino.org/housingelement.
 EMC Planning Group provide bi‐weekly updates to the City Council.  The second Cupertino Housing Simulator tool iteration will soon be available. o We invite all decision‐makers to use the tool to submit a propo sed plan, and to act as ambassadors  to  encourage  others  in  the  community  to  participate   and  share  their comments and ideas.
o Those who have submitted plans will be invited to test out the beta version of Cupertino Housing Simulator 2.0 and to provide feedback for how we may be  able to improve the experience.
o Companion documents will be available for participants to take  notes in preparation for a plan submittal.
o The website will include detailed information about areas, site s, and addresses for the Cupertino Housing Simulator 2.0 mapping exercise.

STAKEHOLDER GROUP
We  received  thirty  (30)  excellent  applications  with  the  online form  and  paper  copies  available  at  the Library  and  Senior  Center.  There  was  one  double  entry,  which  explains  the  strikethrough  for  number SHapp 21. Using a point system, and a blind‐review so that revi ewers could not see candidate names or contact  information,  we  had  four ( 4 )  s t a f f  m e m b e r s  o f  E M C  P l a n ning  Group  select  the  top  ten  (10) candidates, as follows:
 John Zhao
 Abdullah Memon
 Jennifer Shearin
 Joseph Fruen
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EMC Planning Group
 Shankar Krishnan
 Sean Hughes
 Janet Van Zoeren
 Ava Pai‐Chi Chiao
 Elizabeth Moore
 Lisa Warren

A point system was initiated to  assess potential applicants for the 6th Cycle Housing Element Stakeholder Group. Selection criteria is intended to result in a diverse cross‐section of perspectives with people willing to be dedicated to the process.  Collaboration with this stakeh older group will be focused on  meeting goals of affirmatively furthering fair housing. Residents of al l incomes, races, and ethnic backgrounds as well as employees of local businesses, community‐ and faith‐based organizations, and public agencies are encouraged to participate. Throughout the lifespan of the regul atory update process, stakeholders are encouraged  to  provide  meaningful  input  on  how  the  City  may  achi eve  the  overarching  goal  of accommodating the increased housing needs allocation for the 6t h RHNA cycle in a responsible manner that considers the needs of existing and future residents.

Stakeholders are anticipated to inform the planning process and review draft plan materials. The goal for selection  of  this  group  is  that  it  consists  of  a  representative   group  of  residents,  local  employees, community‐based  organizations,  service  providers,  and/or  other involved  community  members  in  the plan area. A minimum of three Stakeholder meetings will be orga nized throughout the planning process, including, but not limited to: (1) Plan Kickoff & Goal‐Setting  Meeting, (2) Policies & Strategies Meeting, and (3) Draft Plan Meeting.

Attached  is  the  list  of  application  questions  with  corresponding  points  dedicated  to  each  response.  A primary goal involved with this selection process is to minimize barriers to increase opportunity for a more diverse group of participants  to support inclusion of those who  may have not  contributed to land‐use decisions for  their community in the  past. A commitment and ded ication  to  the  role  of  stakeholder  is recognized as essential for a potential applicant. Points are w eighted to favor those who may represent either an under‐represented role in the community for policy di scussion, or embody a cross‐section of perspectives.  Description  of  qualifications  and  a  check‐box  for s e l f ‐ i d e n t i f i c a t i o n  a r e  e q u a l l y  w e i g h t e d evaluation criteria, with this goal for inclusive participation for the Stakeholder Group selection.

Staff  suggests  that  Council  consider  adding  three  (3)  additional  stakeholders,  specifically  Applicants numbered 18, 26, and 28 to more fully include a variety of directly represented stakeholders.

EXAMPLE OF AN HCD REVISION‐REQUEST LETTER
As requested from Vice‐Mayor Chao, we have included a revision request letter from an Asian majority city within southern California City that has achieved certification. Following is a link for Monterey Park’s final Housing Element:
https://mpkhousingupdate.com/wp‐content/uploads/2022/01/Monterey‐Park‐Final‐Housing‐ Element.pdf
ATTACHMENTS:

Attachment A: 6th Cycle Housing Element Update—Public Engagement Activities to date Attachment B: Stakeholder group Questions
Attachment C: List of Recommended stakeholder scores and response to primary narrative question 146
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EMC Planning Group
Attachment D: HCD Revision request letter for Monterey Park

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Attachment A
1 6th Cycle Housing Element Update—Public Engagement Activities to date This attachment provides more detail on the public engagement and outreach activities for the 6th Cycle Housing Element Update.

Housing Element Update pages on EngageCupertino.org
Through the existing www.EngageCupertino.org website, distinctive Housing Element Update pages were created in English, Spanish, Vietnamese, Simplified Chinese, and Russian. The initial pages launched in September 2021 and an updated and improved version of the pages  launched December 6, 2021. Providing access to new contributors to this policy discussion in Cupertino is in keeping with goals for meeting AB 686 equity and inclusiveness requirements.

These dedicated Housing Element pages serve as the project hub of online activity, including important information, updates, engagement opportunities, and more. It is updated regularly and users can subscribe for updates.

Cupertino Housing Simulator Tool (Balancing Act)
To date, Cupertino residents have submitted 20 responses to the Cupertino Housing Simulator tool (Balancing Act), and there have been a total of 602 pageviews.

The first version of the Cupertino Housing Simulator was introduced at the December 9, 2021 Community Workshop. This initial version allowed residents to distribute housing across Cupertino’s Neighborhoods and Special Areas that are designated in the General Plan.

To gain additional feedback, the mapping exercise and instructional video will remain active and online for approximately one additional month. As intended, more  mapping exercises will follow the initial Balancing Act version with iterative maps  becoming more  focused on specific potential sites based on feedback from the community.

Working with West Valley Community Services (WVCS)
Since September, EMC has met with WVCS on a bi‐weekly basis to develop outreach materials and engagement opportunities for their homeless and low‐income clients. This includes:
 Developing a dedicated webpage on the WVCS website;
 Distributing educational fliers in 5 languages at the 12/11/21 Gift of Hope drive‐through event;  Distributing a Housing Needs & Desires survey in 5 languages at WVCS mobile food markets;  Working with WVCS staff to leverage contacts at other community‐based organizations that serve Cuperti
no‐area residents
City Council, Planning Commission, and Housing Commission Meetings EMC has provided Housing Element progress updates on the at the following meetings:
 October 5, 2021 City Council Study Session
 November 16
, 2021 City Council Meeting
 December 9, 2021 Housing Commission Meeting
 December 9, 2021 Housing Element Update Community Workshop  January 25, 2022 Planning Commission Meeting
 February 22, 2022 Planning Commission
 February 28, 2022 Planning Commission
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Attachment A
2 EMC will provide additional progress updates at public meetings for the City Council, Planning Commission, and Housing Commission through adoption of the final, certified Housing Element. It is anticipated that decision‐making bodies will provide input at four stages: Sites Inventory; Housing Policy; Draft Housing Element adoption and Final Housing Element adoption.

December 9, 2021 Virtual Community Workshop
The purpose of this workshop was to introduce the public to the Housing Element Update process, help them understand the importance of their participation, and show them how to contribute their feedback on potential sites in the Cupertino Housing Simulator tool.

The following posts were made on relevant Cupertino social media channels to promote the workshop:

Facebook  Nextdoor  T witter  eNotification
Post 1 (11/30/21)
Housing Element
Community
Workshop
Reach: 453
Engagement: 10
Reach: 1013
Engagement: 1
Reach: 783
Engagement: 1
Reach: 15010
Engagement: 594
Post 2 (12/6/21)
Workshop
Reminder
Reach: 303
Engagement: 1
Reach: 656
Engagement: 1
Reach: 1096
Engagement: 16
Reach: 1444
Engagement: 118
Reach refers to the number of people who saw the post, and engagement refers to any clicks, likes, comments, and shares.

A total of 40 residents attended the workshop and approximately 7 submissions were made to the Housing Simulator tool during or soon after the workshop.

Scene Newsletter and Items of Interest Newsletter
Housing Element updates were featured in the Scene Newsletter that went out on December 1, 2021 and February 1, 2022. Updates were also featured in the City Manager’s Items of Interest newsletter, which is provided to City Council and 685 email subscribers, on December 9 and December 22, 2021.

Mailed Postcards
Postcards introducing the Housing Element Update website were mailed to 23,351 Cupertino households the week of January 10‐14, 2022. The postcard focused on announcing the Housing Element webpages, promoting the Stakeholder Group application process, and inviting residents to participate in the Cupertino Housing Simulator tool.

Stakeholder Group
The Stakeholders Group application period was extended from its original deadline of January 31 to February 11, 2022, due to an initially slow response.  However, by February 11, 30 applications for the Sttakeholder Group were received. The Stakeholders Group application was made available online on January 10. Hard copies of the application were also made available at the Library and Senior Center.

Letters to Property Owners and Property Interest Form
EMC and City staff also sent out letters of interest to groups of property owners throughout Cupertino to gauge their interest in adding housing opportunities on their property. These letters focused on prior 149
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Attachment A
3 housing opportunity sites, sites between 0.5‐10 acres in area (a size range specified by HCD) and sites located along major transportation corridors.

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Stakeholder Group Application
1 The Stakeholder Group will include up to 10 community members representative of a cross-section of Cupertino residents. It is anticipated that the Stakeholder Group will have three meetings throughout the
Housing Element update process. Meetings will
include discussions of possible housing site locations, policy for increasing probability that future units will include an appropriate ratio of affordable units, and general topics related to drafting updates to Cupertino’s Housing Element in the General Plan.

1. Name _______________________________________________________ ____

2. Email address ____________________________________________________

3. Physical address __________________________________________________

4. I am interested in contributing to the discussion for Cupertino’s Housing Element update process.
○ Yes
○ No
○ Maybe, I need more information

5. I would like to be an ambassador to share information about Cupertino’s Housing Element update process.
○ Yes
○ No
○ Maybe, I need more information

6. I am willing to commit, on average, 8 hours for each Stakeholder meeting (3-5 anticipated
meetings) to prepare for discussing many different aspects of the Housing Element update.
○ Yes
○ No
○ Maybe, I need more information
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Stakeholder Group Application
2 7. I believe that I should be considered as a candidate for Cupertino’s Stakeholder group for the Housing Element update.
○ Yes
○ No
○ Maybe, I need more information

8. Please state in less than 200 words why you are qualified to be a member of Cupertino’s Stakeholder group (please use back of page if additional space is needed for writing).

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Stakeholder Group Application
3 9. Have you participated in a policy advisory group either in Cupertino or another location? ○ Yes
○ No
○ If yes, what role and where?

10. Please check all of the following that apply to you:
○ Renter
○ Property owner
○ Major employer
○ Small business owner
○ Landlord
○ School Employee
○ Service Industry employee
○ Long-term Cupertino resident
○ Recent resident
○ Faith-based organization Leader
○ Parent group Leader
○ Older Adult
○
Lived experience of being unhoused
○ Non-profit housing developer
○ De Anza Community College student
○ Advocacy Group Leader

8. Do you speak a language in addition to English? (check all that apply) ○ No
○ Spanish
○ Russian
○ Chinese
○ Vietnamese
○ Hindi
○ Other?

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Email address
I am interested in
contributing to the
discussion for
Cupertino’s Housing
Element update
process.

I would like to be an
ambassador to share
information about
Cupertino’s Housing
Element update process.

I am willing to commit to
prepare for and attend
Stakeholder meeting (3-
5 anticipated meetings)
to prepare for discussing
many different aspects
of the Housing Element
update.

I believe that I should be
considered as a
candidate for Cupertino’
s Stakeholder group for
the Housing Element
update.

Please state in
less than 200
words why you
are qualified to be
a member of
Cupertino’s
Stakeholder
group.

Have you participated in
a policy advisory group
either in Cupertino or
another location?
Please check all of the
following that apply to
you:

Do you speak a
language in addition to
English? Total
SHapp-02 5 5 5 5 24.25 Yes 22.25 22 88.75
SHapp-17 5 5 5 5 23.50 Yes 22.50 23 88.50
SHapp-07 5 5 5 5 23.00 No 21.75 22 86.50
SHapp-06 5 5 5 5 22.25 No 21.50 22 85.25
SHapp-20 5 5 5 5 22.25 Yes 21.25 21 84.75
SHapp-21
5 5 5 5 23.50 Yes 20.50 21 84.50
SHapp-11 5 5 5 5 23.75 No 20.00 20 83.75
SHapp-01 5 5 5 5 21.75 Yes 20.00 20 81.75
SHapp-30 5 5 5 5 21.75 Yes 19.75 20 81.25
SHapp-22 5 5 5 5 19.50 Yes 19.25 19 78.00
SHapp-15 5 5 5 5 19.00 No 19.25 19 77.50
SHapp-18 5 5 5 5 21.25 No 18.00 18 77.25
SHapp-29 5 5 5 5 18.25 Yes 19.25 20 77.25
SHapp-16 5 5 5 5 20.25 No 18.00 18 76.25
SHapp-28 5 5 5 5 18.25 Yes 18.75 19 75.75
SHapp-23 5 5 5 5 15.00 No 20.25 20 75.50
SHapp-10 5 5 5 3 22.25 No 16.75 17 73.75
SHapp-25 5 5 0 5 16.50 Yes 21.00 21 73.50
SHapp-04 5 5 5 5 21.50 Yes 15.25 15 72.00
SHapp-27 5 5 5 5 17.00 No 15.50 16 68.00
SHapp-24 5 5 5 5 16.75 Yes 15.50 16 67.75
SHapp-03 5 5 5 5 15.75 No 15.25 15 66.25
SHapp-09 5 5 5 5 16.75 No 13.75 14 64.25
SHapp-19 5 5 5 5 17.00 No 12.50 13 62.00
SHapp-14 5 5 5 5 14.25 Yes 13.75 14 61.75
SHapp-12 5 5 5 5 11.75 No 13.25 13 58.25
SHapp-13 5 5 5 5 14.25 No 12.00 12 58.25
SHapp-08 5 5 5 5 10.00 No 9.50 10 49.00
SHapp-26 0 5 0 0 9.25 No 12.50 13 39.25
SHapp-05 0 5 0 0 6.25 No 13.25 13 37.75
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ID
Please state in less than 200 words why
you are qualified to be a member of
Cupertino’s Stakeholder group.

Scorer's Narrative/Bullet Point Response for Column B Total SHapp-02
I am 16 years old and a lifelong resident of Cupertino. I am also from a low-income, immigrant, and Muslim
family that has lived in BMR housing for close to twenty years. We were recently given the opportunity to be part of the Section 8 Housing Voucher program, where I was
personally exposed to housing discrimination. I believe I am qualified to be in the Stakeholder Group because I
am a direct result of our housing crisis and understand how to get young people involved. I understand how the
lack of housing affects families, young people, and our culture, while also understanding what needs to be done to bring change and improve the quality of life for
students and families. I will use my experience as a
community and youth leader, as well as my lived
experiences, to tackle to complexities of our housing crisis as well as public opinion of the crisis. It is important to have a younger, minority voice on the stakeholder
group, to make sure we get all opinions and
perspectives, to make sure the group makes appropriate
policy decisions and recommendations.

This is someone with a lived
expereince of BMR housing during
formative years, with a minorty
perspective of what it's like to live in
Cupertino. Including this person with
our stakeholder group may help us
better understand housing need
from this unique perspective.

Having diverse team members for
brainstorming solutions may help our
programs be more inclusive and
may give us better insight for our
approach.
voice is one that
hasn't always been
represented and
needs to be. fresh
first hand insight into
specifics we are
trying to address.

Representative of
youth and lived
immigrant
experience in BMR
housing and Section
8 program.

Energetic and well
articulated.

Current student,
experience with
housing, represents
an important
stakeholder group
that is usually not
directly represented
(under 18)

88.75 93.42%
SHapp-17
I am a Asian American millennial / Gen Z young adult
who grew up in the City of Cupertino. I have experience with planning, housing, and transportation in various
contexts: as a student advocate as part of Stanford
Coalition for Planning an Equitable 2035 (SCoPE 2035); as a Housing Commissioner from 2017 to 2019 (Vice Chair in 2018 and Chair in 2019); as a practitioner who recently got a Masters in Community and Regional Planning from
University of British Columbia, and previously interned with the Metropolitan Transportation Commission (MTC) and
San Francisco Municipal Transportation Agency (SFMTA).

I have a nuanced understanding of issues relevant to
housing and development from my past experiences. I
believe that youth perspectives are critical in the
conversation on housing, since this will have long lasting impacts in our community and regionally. I am a youth
organizer in my paid work, so I have connections and
relationships to young people not just in Cupertino but throughout the South Bay. I hope that I can leverage
those connections to effectively represent the interests of young people in this stakeholder process.

This person represents voices of
those who may not otherwise
participate in policy-making
discussions though they are likely
the people in need of increased
housing opportunities.
- Lived experience as an Asian
American millennial/Gen Z and
planning advocate in the
community
- Strong liklihood of ambassador
multiplyer communication effects,
particularly with youth
potentially a unique
voice and
perspective
unheard in the past,
wide reach for and
to youth (another
voice that needs to
be boosted. also, a
wide range of
experience with
issues pertaining to
housing and
transportation.

Representative of
young adults.

Education and
experience with
equity, housing and
transportation.

Repersents a group
signifcantly affected
by rising housing
costs, has
expereince within
the government
and transporation. Is
willing to work

88.50 93.16%
SHapp-07
I have a multitude of qualifications that make me an
excellent candidate. My 12+ years of home rental in
Cupertino give me a strong understanding of the needs
and wants of those seeking housing in Cupertino.

Secondly, as Senior Warden (Board of Directors
Chairperson) at Saint Jude’s Episcopal Church in
Cupertino, I regularly discuss housing with a wide variety of local residents. Recently, I helped organize a series of forums at the church on local housing standards and
housing allocations, working with local resident groups and advocacy organizations to discuss the complicated
issues surrounding housing in Cupertino.

I’ve acted to bring positive change to Cupertino for over a decade, with a focus on creating safe and enjoyable
means of using alternative transport, which affects
residents wherever they live and work. I’ve served as a Bike/Ped Commissioner and am currently a
boardmember for Walk-Bike Cupertino, a local
advocacy group. I’m also a Cupertino High School PTSA
boardmember and Safe Routes to School Parent
Champion. Furthermore, I avoid partisanship in local
issues, consistently discussing community concerns with residents with diverse views on local politics. I care
deeply about this city’s future, and would welcome the
opportunity to share in its shaping.

This person represents voices of
those who may not otherwise
participate in policy-making
discussions though they are likely
the people in need of increased
housing opportunities.
- It may be helpful to partner with
the faith-based community (St.

Jude's Episcopal Church)
- Lived experience as a renter
- This person brings a wealth of
dialogue with the community about
housing issues
- This person has a strong dedication
to the school system
- Strong liklihood of ambassador
multiplyer communication effects,
particularly among the faith-based
community
long term renter
perspective, has
connection with
local community
and voices that may
not have been
heard in the past,
seems to have
experience with
gathering
information and
dialogueing with
community. also
seems to really care
about this
community and the
work
Represents rental
community
consituency.

Involved in local
housing issues with
St. Jude's and other
advocacy
organizations.

Expresesses a desire
to work together
and avoid
divisiveness on
contentious issues.

Well connected with
important
constituent groups,
connected to
parent groups and
renter who lives the
challenges in
today's economy
and high cost of
living

86.50 91.05%
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SHapp-06
As a member of Cupertino's Stakeholder group, I would
represent a number of stakeholders. I am the Public
Policy Coordinator at West Valley Community Services
(WVCS), a nonprofit serving Cupertino residents with
significant focus on housing. I work directly with clients, and would be sure to gather information from and give
information to our clients, many of whom are most in
need of housing in Cupertino. I am 24 years old, and as a young person still advancing my career, I experience
firsthand the struggle to find affordable housing and
have unique desires in terms of housing, such as proximity to downtown, walkability, and type of housing. I am also a member of the Valley Transit Authority (VTA)’s Citizens Advisory Committee, giving me a unique and deep
understanding of transportation, which greatly intersects with housing and will be crucial to consider in the
Housing Element process. Last, I am knowledgeable
about the Housing Element, and am tracking the process
for four other municipalities through my role at WVCS. I serve as a Los Gatos Planning Commissioner and am a
member of many community groups, all of whom I would
be happy to serve as a liaison for.

This person represents voices of
those who may not otherwise
participate in policy-making
discussions though they are likely
the people in need of increased
housing opportunities.
- It may be helpful to increase our
partnership with West Valley
Community Services
- This is a younger person within the
community who wants to increase
opportunities for inclusive housing
- This person brings transportation
experience with an understanding
of how it relates to housing needs
- Strong liklihood of ambassador
multiplyer communication effects,
particularly with those with highest
housing needs in the region
huge range of
experience and
expertise -
specifically with HE
process, also has a
unique age
perspective with a
wide scope of
outreach and
resource.

Representative of
young adult
population.

Experience with
services and clients
that are in need of
housing. Function as
a representative for
Cupertino and other
West Vally cities and
bring more regional
knowledge.

Great connections
with critical
stakeholders, is an
age usually not well
represented but
significantly
impacted by
housing costs, as
connection with VTA
and is knowlegable
in the HE process.

85.25 89.74%
SHapp-20
I am an attorney by training and trade, which gives me
an additional toolset in evaluating which sites and what policy changes would make the greatest impact in
helping Cupertino equitably site and sufficiently
encourage housing growth in the city. As Policy Director for Cupertino for All, I’ve hosted local events—including a joint town hall with West Valley Community Services—to
bring people up to speed on the new Housing Element
process, including explaining such laws that directly
impact this process as AB 686 and AB 1397. Many
residents approach this process with trepidation—a
problem I’ve successfully confronted before as part of
CUSD’s Citizens Advisory Committee, which was tasked
with the difficult and emotionally charged challenge of helping the board decide which schools to consolidate
to address declining enrollment. As a younger
professional who recently made the transition from renter to homeowner, I’m deeply and personally familiar with
the challenges people struggling to afford to live here face. As a third generation resident, whose grandfather still lives here, I also daily witness what older seniors endure in a car-centric city. I want to help Cupertino
achieve an HCD-compliant Housing Element so we an
solve these problems together.

This person represents voices of
those who may not otherwise
participate in policy-making
discussions though they are likely
the people in need of increased
housing opportunities.
- It may be helpful to partner with
Cupertino for all to better
understand housing needs
- This person brings knowledge of AB
686 as an attorney
- This person brings a lived-
experience of transitioning from
renter to home-owner
- This person brings a lived-
experience for a multi-generational
perspective of housing needs
- This person brings a nuanced
understanding of school
consolidation process
experience bring
folks together to
discuss fears and
challenges,
experience with HE
process, interesting
perspective as a
new homeowner
and insight to the
senior experience.

Knowlegdable
about housing
legislation. Recently
navigated renter
and homeowner
transition. Mentions
seniors Special
Needs group.

Expressess
collaborative efforts.

Brings knowledge on
policy which could
be a key addtion to
the stakeholders; is
younger and can
represent both
recent renter and
homeowner.

84.75 89.21%
SHapp-21
I represent an important constituency in Cupertino that should be of great concern--young adults and emerging
professionals, who are in many ways the backbone of
our future as a city. Currently, we are bleeding this
demographic; they are fleeing to cities that are more
conducive of young adult preferences--walkability,
transit-oriented, night life options, and also full of other young adults. This is not a strong foundation for our future.

Additionally, I am a 15 year+ renter of Cupertino and
have spent the last several years of my life advocating for the needs of renters in our community. In doing so, I was elected to be the President of Cupertino for All--a non-profit here in Cupertino focused on housing. I have done extensive community organizing in Cupertino,
when I was a student at De Anza College, building
essential relationships with the district and other
advocacy groups.

I work with policy, its implementation, and the steps
necessary to ensure its passage--in my capacity as a
fulltime staff member at Working Partnerships USA. I have also done work in the Federal Government at the
Consumer Financial Protection Bureau, the California
Legislature, and worked minimum wage at multiple jobs
right here in Cupertino.

I believe this array of experiences makes me a strong
candidate for this stakeholder group.

This person represents voices of
those who may not otherwise
participate in policy-making
discussions though they are likely
the people in need of increased
housing opportunities.
- It may be helpful to partner with
Cupertino for all to better
understand housing needs
- This person brings an employed
position with Working Partnerships
USA to build the capacity of
workers, low-income neighborhoods
and communities of color to lead
and govern.
- This person brings a lived-
experience of being a renter
- This person brings a lived-
experience of attending De Anza
College
- This person brings a lived-
experience of being employed at
minimum wage in Cupertino
- This person brings a nuanced
understanding of policy
implementation processes
- Strong liklihood of ambassador
multiplyer communication effects,
particularly with disenfranchised
clients of Working Partnerships USA
interesting
perspective of
young adults and
emerging
professionals, long
time renter
experience,
professional
experience focused
on housing
Representative of
young adults,
renters, and shows
knowledge of
challenges faced by
emerging
professionals related
to housing. Part of a
non-profit related to
housing.

Important
representation for
the age
demographic and
expereinced in
renting in the city.

Will be very
knowledgable
about policy and
implimentation.

84.50 88.95%
SHapp-11
As clergy and a faith leader, not to mention renter
myself, I am keenly interested in how Cupertino can
provide equitable and affordable housing for every
member of our community. The crisis in housing is the
preeminent social justice issue we are facing as a
community in the Bay Area. I want to see us on the
leading edge of creatively addressing this problem.

This person represents voices of
those who may not otherwise
participate in policy-making
discussions though they are likely
the people in need of increased
housing opportunities.
- Lived experience as a renter
- Appreciate the sentence "I want
to see us on the leading edge of
creatively addressing this problem"
- Strong liklihood of ambassador
multiplyer communication effects
through the faith-based community
unique perspective
as a clergy and faith
leader and framing
with social justice,
may offer another
voice and
perspective that
may not have been
included in the past.

Represents renter
community. Sees
housing crisis as a
social justice issue
and recognizes the
crisis in alignment
with State
messaging. Cites
wanting to bring
creativity to
problem.

As a faith leader,
has access to many
opinions and has an
interest in social
justice; would
provide an
important
stakeholder voice. 83.75 88.16%
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SHapp-01
During the nearly 25 years that I have been advocating
for low-income housing, I helped found Housing Choices, an organization that very successfully functions as a
catalyst to create very low and extremely very low-
income housing, with preference for people who have
IDD (Intellectual Disabilities). As a board member for this organization, I learned a great deal about the multitude of housing related issues people face, far beyond having enough money to cover their rent. Understanding the
needs and many of the issues the developers face in
trying to provide extremely low-income units has been
important too. Funding is another big piece of the puzzle as is understanding the bureaucracy of city governments and the politics of its city leaders. Most important of all has been creatively thinking about ways to meet housing challenges.

I have a PhD in neurophysiology and have done
research at Michigan State University, Roswell Park
Cancer Institute in Buffalo NY and at the University of Pittsburgh, where I taught and received tenure before
moving to Cupertino in 1976. Here I taught at both West Valley and DeAnza Community Colleges. I have also
been a leader of several parent advocacy groups in this area.

My volunteer work in affordable housing and training as a scientific problem solver qualify me to be a member of Cupertino’s stakeholder group.

This person represents voices of
those who may not otherwise
participate in policy-making
discussions though they are likely
the people in need of increased
housing opportunities.
- It may be helpful to partner with
Housing Choices to better
understand housing needs
- This person has had experience as
a teacher and parent in the
community
- This person has experience and
dedication to being an inclusive
problem-solver for affordable
housing, with a needs-based
approach
- Strong liklihood of ambassador
multiplyer communication effects,
particularly with Housing Choice
members
experience with
housing - founded
Housing Choices.
highly engaged with
housing related
issues.

Very
knowledgeable
about low income
housing issues and
needs including
Special Needs
groups.Highlighted
issues with funding
and local
government
bureaucracy.

Long-term resident,
knowlegable in
affordable housing
policies and barriers,
connected to
parent advocacy.

81.75 86.05%
SHapp-30
My family owns the house I live in for more than twenty five years. I am an educator and see that our students
and their families have moved due to the high cost of
rent and to buy a house to live in. We have teachers who commute to teach in Cupertino and cannot afford to
live near where they work.

I know first hand, we have many seniors who live in large houses and properties alone or with their partners.

I want to help us Cupertino move forward to keep our
city alive with people who can afford to live here.

This is someone with a lived
expereince of being an educator
while living in Cupertino. Including
this person with our stakeholder
group may help us better
understand housing need from this
unique perspective. Having diverse
team members for brainstorming
solutions may help our programs be
more inclusive and may give us
better insight for our approach.
- Lived experience as an educator
- This person brings knowledge
about experiences for older adults
with large homes (potential lack of
movement in housing market)
this is a voice that
needs to have a
space to be heard:
commute to teach
there, but cannot
afford to live there.

Represents
teachers/essential
workers. Mentions
seniors Special
Needs group.

This candidate is
interested on several
different
demographic fronts,
making them a
good choice both
as a community
member, but
someone that can
advocate for seniors
and teachers.

81.25 85.53%
SHapp-22
I am a long-time advocate for innovation in housing and development, with a focus on creating greater
opportunities for diversity and equity. I have a long
volunteer history in Cupertino including terms as a
Planning and Parks & Recreation Commissioner. I have
been an energetic participant in the local and regional discussions around housing policy and have a great deal of experience in engaging and promoting the discussion
around policy.

This reply does not contain enough
information for further analysis,
though we thoroughly encourage
participation going forward with our
update process. We hope to hear
more from this person through the
many engagement opportunities as
they unfold. It may be that this
person's experience and expressed
devotion would make them a
viable candidate for a Citizens
Advisory Committee (CAC) if such a
group is formed for focused
concentration on zoning changes
and specific plan updates.

We value the sentence:"I have
been an energetic participant in
the local and regional discussions
around housing policy and have a
great deal of experience in
engaging and promoting the
discussion around policy" and
remain curious about the advocacy
groups that have been led by this
person.
seems creative - use
of innovative.
mentioned diveristy
and equity, i
wanted to know
more. has
experience
engaging - that's
helpful with this
work.

Mentions diversity
and equity related
to housing and
experience as a
Commissioner.

Policy experience
related to housing.

Already engaged in
housing issues and
expereince with
local government.

Interested in
innovation, which
may be a benifit for
this process.

78.00 82.11%
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SHapp-15
I have participated in local planning and ‘politics’ for decades. I have spent many long nights attending city
council and commission meetings. I am someone who
very closely follows our City's public process, I often notice that there are areas others have overlooked, or
have difficulty understanding. I have a familiarity with the issues and often an eye for details.

I would bring to the group a working relationship with the real-estate community, as I have worked in local
residential real estate for 19 years.

I work well with others and I have the trust of our
community and elected officials. I believe that I can
accurately represent a good cross section of current and future residents.

I'd like to be involved to help ensure that this process is successful. There is always more to learn.

I have two adult children in their early 30’s who have
navigated the rental market in the Bay Area and hope to be home owners at some point.

I have a close family member who, within the last five
years, held positions at two nonprofit organizations
focused on housing the unhoused.

This person's experience and
expressed devotion appears to
make them a viable candidate for
a Citizens Advisory Committee
(CAC) if such a group is formed for
focused concentration on zoning
changes and specific plan updates.
- Lived experience as a long-term
Cupertino resident
- Lived experience as a Property
owner
Thank you for your declared
dedication to following complex
processes such as these. We hope
to hear more from this person
through the many engagement
opportunities as they unfold.
unique real estate
perspective,
familiarity with city
council and
commission
meetings
Represents realtor
group that plays a
fundamental role in
housing and equity.

Claims to work well
with others and has
adult children
navigating the
rental market.

Follows City process
and participated in
planning and
assciated politics.

As both a real
estate professional
and having children
in rental market can
provide two
important data
points as we discuss
what affordability
means and how the
housing crisis has
impacted home
sale prices and
rental costs.

77.50 81.58%
SHapp-29
As owner and developer of the former Vallco Shopping
Mall and numerous other properties in Cupertino, Sand
Hill Property Company is uniquely positioned to make a
significant contribution to Cupertino’s Housing Element process. From the Cupertino Village revitalization in the 1990’s to the Main Street Cupertino infill development
completed in 2017, the company is among Cupertino’s
longest-standing and most active landowners,
developers and housing providers in this community.

Even though the Vallco Town Center redevelopment
project is approved and underway, the City might value
our participation in the Housing Element stakeholder
process (1) given our knowledge of prevailing housing
development market conditions, (2) in order to explore
opportunities to align the Vallco project in real time with the City’s Housing Element strategy, and (3) so that we are in position to serve as a Housing Element ambassador vis a vis the thousands of community members registered with us for Vallco and related updates, as appropriate.

Reed Moulds, Managing Director of Sand Hill Property
Company, would participate on behalf of the company.

We wish the City success in achieving its Housing Element goals and in the planning and eventual permitting of its 6th Cycle regional housing needs allocation.

This person's representative
experience for Sand Hill Property
Company makes them a viable
candidate for supplying a
Developer's perspective of
constraints to housing
development. Such information
would be valuable for background
analysis. Throughout our public
engagement process, we strongly
encourage feedback, including
policy and program suggestions.

They have an
interesting
perspective as a
business and
someone involved in
this process
Developer
knowledge with
experience within
Cupertino. Large
developer
perspective is
important to
include. Shows
knowledge of HE
and RHNA.

This candidate
would provide a key
perspective from
the development
side to help issolate
constraints and
solve issues from the
perspective of those
that would
potentially build the
housing.

77.25 81.32%
SHapp-18
I grew up in Cupertino attending McAullife, Kennedy, &
Monta Vista schools. Also, I taught kindergarten & first grade at two CUSD schools. Currently, I am at substitute in the district and take care of my two pre-school age
children. I care deeply about the Cupertino Community
and want it to thrive.

This is someone with a lived
expereince of being a school
teacher while living in Cupertino.

Including this person with our
stakeholder group may help us
better understand housing need
from this unique perspective.

Having diverse team members for
brainstorming solutions may help our
programs be more inclusive and
may give us better insight for our
approach.
unique perspective
of someone working
in schools with
children - may have
broad outreach
some unheard
voices.

Represents
teachers/essential
workers and families
with young children.

Grew up in
Cupertino.

A teacher and
parent can bring an
important dimension
to the stakeholders.

77.25 81.32%
SHapp-16
I am a retired Registered Nurse and worked at Stanford Hospital and Clinics and Palo Alto Medical Foundation. I have lived in Cupertino for over 40 years and before that went to school and worked in Los Altos, Mt View, and
Santa Clara. My Children have gone to Cupertino
Schools, I am interested in maximizing affordable housing in and around our city. I am not affiliated with any real estate or property development business. I am an
average citizen of our city and wish to help.

This is someone with a lived
expereince of raising a family as a
nurse while living in Cupertino.

Including this person with our
stakeholder group may help us
better understand housing need
from this unique perspective.

Having diverse team members for
brainstorming solutions may help our
programs be more inclusive and
may give us better insight for our
approach.
- Appreciate the sentence "I am
interested in maximizing affordable
housing in and around our city."
may have a unique
perspective from
wide range of
locations both lived
in and attended
school in.

Representative of
First Responders and
critical essential
workforce that has
lived in Cupertino for
40 years. Expresses
interest in
maximizing
affordable housing.

Will understand the
long-term history of
how Cupertino has
formed and could
provide an
important
community voice.

76.25 80.26%
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SHapp-28
I have been a Cupertino resident for 25 years and seen
the city grow. Next, I have worked at HP in Cupertino for more than 10 years and know the business interests. Also as an active member of multiple volunteer organizations and Cupertino Sports center, I have interacted with a
number of Cupertino residents and understand their
concerns. Finally, as a resident of Cupertino West( Monta Vista), I can provide inputs on the unique concerns of
residents in this neighborhood.

This is someone with a 25-year lived
expereince of operating a small
business and being a landloard
while residing in the Monta Vista
neighborhood. Including this person
with our stakeholder group may
help us better understand housing
need from this unique perspective.

Having diverse team members for
brainstorming solutions may help our
programs be more inclusive and
may give us better insight for our
approach. We hope to hear more
from this person through the many
engagement opportunities as they
unfold. If this person does not qualify
for the ten stakeholder positions,
then this person's experience and
expressed devotion appears to
make them a viable candidate for
a Citizens Advisory Committee
(CAC) if such a group is formed for
focused concentration on zoning
changes and specific plan updates.
seems to have a
broad reach of
residents and
community
members
Works for HP and
claims can
represent business
interests. Mentions
member of
volunteer
organizations and
Sports Center. Could
represent broader
cross section.

This candidate lives,
works and recreates
in the city, and has
been active in city
organizations and
can advocate for a
neighborhood.

75.75 79.74%
SHapp-23
First and foremost, longevity. I have been a resident of Cupertino for over 20 years. I have seen buildings and
businesses come and go. I would love to contribute my
knowledge.

This reply does not contain enough
information for further analysis,
though we thoroughly encourage
participation going forward with our
update process. We hope to hear
more from this person through the
many engagement opportunities as
they unfold. It may be that this
person's experience and expressed
devotion would make them a
viable candidate for a Citizens
Advisory Committee (CAC) if such a
group is formed for focused
concentration on zoning changes
and specific plan updates.
my bring an
interesting pov from
a business and
building perspective
Represents long
time homeowners.

More information
related to their
knowledge would
be helpful.

Not enough
information to
understand how
best this individual
can contribute.

75.50 79.47%
SHapp-10
I am deeply interested in a future where Cupertino is
more sustainable and accessible than it is today, and I believe housing is the main tool through which we can
create a more inclusive, stronger, and sustainable
community. I grew up in Cupertino, living 15 years here throughout primary, middle and high school, in addition to 2019 to 2021 as well. Leaving for college after high school showed me just how sheltered and isolated
Cupertino is from the rest of the Bay, and country. I care deeply about climate change and equity outcomes for
all citizens, and academic, professional, and personal
experience have convinced me that housing and the
built environment are crucial determinants on the
success of climate-related and equity-concerned
government policies. Personally, I also want to rent and live car-free, and Cupertino is neither a place I can
afford to rent-in, nor a place that is enjoyable to live in without a car. I hope that we can use the HE process to build a Cupertino that is more accessible for more socio- economic classes, and more prepared for a climate-
impacted future.

This is someone with a lived
expereince of being a young
person who has been educated in
Cupertino. Including this person with
our stakeholder group may help us
better understand housing need
from this unique perspective.

Having diverse team members for
brainstorming solutions may help our
programs be more inclusive and
may give us better insight for our
approach.
- Lived experience as a renter
- Appreciate the sentence "I hope
that we can use the HE process to
build a Cupertino that is more
accessible for more socio-
economic classes, and more
prepared for a climate-impacted
future."
unique perspectives
on climate,
sustainablilty and
equity. Could be a
unique voice to
hear around abilty
to rent or live in
without a car in
Cupertino
Articulates how
climate change and
housing are related.

Mentions equity and
grew up in
Cupertino and
represents young
adults.

Appreciate a focus
on sustainability as
this is a critical
question on how the
city approaches HE
solutions. The
respondent has a
long history in the
city and cares
about equity.

73.75 77.63%
SHapp-25
I work with a non profit agency working on ending
homelessness
This reply does not contain enough
information for further analysis,
though we thoroughly encourage
participation going forward with our
update process. We hope to hear
more from this person through the
many engagement opportunities as
they unfold. It may be that this
person's experience and expressed
devotion would make them a
viable candidate for a Citizens
Advisory Committee (CAC) if such a
group is formed for focused
concentration on zoning changes
and specific plan updates.
experience with
homelessness
specifically
Homeless are part of
Special Needs
group.

Would like to know
more - we need
advocates for
homelessness.

73.50 77.37%
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SHapp-04
I’m part of the Age Friendly Cupertino task force, and
president of the Cupertino Senior Center Advisory
Council. Our members are deeply engaged in
addressing the lack of senior housing and services for our aging population. Currently approximately 1 in 3
households has a resident over the age of 60, with
minimal availability of facilities to address their needs.

Our school enrollment is declining at the rate of an
elementary school a year due to lack of housing for new families.

The Housing Element is an opportunity to plan for badly needed housing to fit community needs as our
community changes. As a resident of over 30 years, I
can be a strong contributor to that conversation from my knowledge of the community, the city and civic
operations. In my professional career, I’ve worked in
universities, government and corporate positions as well as publishing. I served two terms on the Cupertino Library Commission and have been active in professional library roles, as well as a community volunteer.

I look forward to participating in the Housing Element
process.

This person represents voices of
those who may not otherwise
participate in policy-making
discussions though they are likely
the people in need of increased
housing opportunities.
- It may be helpful to partner with
Age Friendly task force and
Cupertino Senior Center Advisory
Council to better understand
diverse housing needs
- This person appears to understand
connections between needs for
new family housing, schools, and
specific housing needs for older
adults
- Strong liklihood of ambassador
multiplyer communication effects,
particularly with older adults
experience with
addressing issues
pertaining to senior
housing and
services, seems to
be engaged and
interested with and
in the process.

Has experience with
Special Needs
group - seniors. Also
expresses concern
with lack of family
housing and large
families also a
Special Needs
group. Has previous
local government
volunteer
experience.

Represents an
important
consitituent group
that has significant
affordable housing
needs and requires
representation
through the process.

Previous expereince
working on housing
elements and city
opperations

72.00 75.79%
SHapp-27
I believe that as a renter who has recently moved to
Cupertino from a much less expensive housing market, I
can provide helpful input from a different perspective
than many of the other stakeholders are likely to have. I am an engaged citizen who is willing to put in the work in order to help the city develop in an inclusive and
equitable way for all of its residents.

This person's experience and
expressed devotion appears to
make them a viable candidate for
a Citizens Advisory Committee
(CAC) if such a group is formed for
focused concentration on zoning
changes and specific plan updates.
interesting
perspective and
may represent
voices that might
not be heard
Represents renter
community.

Mentions equity for
residents.

Eager to help, brings
a perspective from
outside the city
which would be
helpful.

68.00 71.58%
SHapp-24
Cupertino needs more housing but not more traffic. I
want to help Cupertino figure out how to build housing
and allow growth without increasing traffic or adversely affecting the quality of life in the neighborhoods.

I lived in Cupertino for 3 years and on the border for 2 years. I’ve worked in Cupertino at Apple for almost 11
years as a manufacturing engineer. My daughter goes to
high school at Monta Vista HS and my other one
graduated from there last year. I want them to be able
to live and work here when they grow up, even if they
have a minimum wage job.

I’ve lived in different cities in the US and China and have some ideas on how to make cities more livable,
walkable, environmentally friendly, and able to handle
growth comfortably. I want to hear other people’s ideas on planning for the future and get feedback on some of
my own ideas.

When I lived in Pacifica in 2009 I worked on a climate
action committee that put together policy
recommendations for the city council, and hope to get
the chance to contribute in a similar way to tackling the biggest issue & opportunity in Cupertino.

This is someone with a lived
expereince of being an Apple
employee while renting a home to
raise a family in Cupertino. Including
this person with our stakeholder
group may help us better
understand housing need from this
unique perspective. This person has
had experiences in Pacifica that
may translate to this opportunity to
participate with policy. Having
diverse team members for
brainstorming solutions may help our
programs be more inclusive and
may give us better insight for our
approach.

We hope to hear more from this
person through the many
engagement opportunities as they
unfold. It may be that this person's
experience and expressed devotion
would make them a viable
candidate for a Citizens Advisory
Committee (CAC) if such a group is
formed for focused concentration
on zoning changes and specific
plan updates.
climate action work,
has some
experience with
engagement at the
city council level
Expresses interest in
solving
housing/traffic issues
and overall livability.

Mentions listening
and willingness to
hear others ideas
and the ties with
climate action.

Interested in policy,
sustainability, and
has some
exepereince living in
the city.

67.75 71.32%
SHapp-03
I have lived in Cupertino for 37 years and am very familiar with our city, the various areas, traffic, issues and the general Housing Element process. I have been active
and participated in many city meetings, housing
element/general plan amendments and would commit
to attending and participating in these meetings to help come up with the best solution for all of Cupertino.

This person's experience and
expressed devotion appears to
make them a viable candidate for
a Citizens Advisory Committee
(CAC) if such a group is formed for
focused concentration on zoning
changes and specific plan updates.
- Long-term Cupertino resident
- Actively engaged in policy
conversations
Appreciate the partial sentence: "...
would commit to attending and
participating in these meetings to
help come up with the best solution
for all of Cupertino."
We hope to hear more from this
person through the many
engagement opportunities as they
unfold.
has lived in
Cupertino for a
good bit of time, has
experience with
culture and
experience living
there. has some
knowledge of HE
process - active and
engaged. Not very
specific in the
experience or
engagement
Long time Cupertino
resident that
expressed familiarity
with key issues.

Longtime resident
and familiar with the
City; frequent
contributer. Other
candidates have
similar backgrounds.

66.25 69.74%
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SHapp-09
1) Understand the need of increased housing density to
sustain population and economic growth for Cupertino
and California; 2) understand, suggest, and propose new building code changes to support higher housing density in Cupertino area; 3) Make people at all income levels
benefit from higher housing density.

This person's comprehension of the
task at hand, experience, and
expressed devotion appears to
make them a viable candidate for
a Citizens Advisory Committee
(CAC) if such a group is formed for
focused concentration on zoning
changes and specific plan updates.
- Lived experience as a long-term
Cupertino resident
- Lived experience as a Property
owner
We hope to hear more from this
person through the many
engagement opportunities as they
unfold.
the third point of
making people at all
income levels
benefit feels like a
valuable
perspective
Expressed three
succint points
related to housing.

Understands the
competing issues for
housing and that
changes to planning
may be required.

64.25 67.63%
SHapp-19
I am an active local citizen and lifelong Cupertino
resident. I have served as a community block leader,
attended city meetings, and would love to bring my
perspective as a parent of two young children to the
city's housing efforts.

This person's experience and
expressed devotion appears to
make them a viable candidate for
a Citizens Advisory Committee
(CAC) if such a group is formed for
focused concentration on zoning
changes and specific plan updates.
- Past experience as community
block leader
- Past experience with city meeting
attendance
- Lived experience as a long-term
Cupertino resident
- Lived experience as a Property
owner
We hope to hear more from this
person through the many
engagement opportunities as they
unfold.
experience and
engagement on a
city and community
level.

Represents young
families. Shows
interest in engaging
and being active.

Similar to other
parents, can bring
perspective of
raising children in
the city and has a
history of being
connected with the
community.

62.00 65.26%
SHapp-14
At City level, I have participated in General plan and
Housing element related meetings since 2014. In April
2018, I organized a Silicon Valley Housing Forum in
Cupertino which had a five member (four elected
council members and a moderator) panel from three
different bay area counties. I also attended and spoke at ABAG/MTC CASA and RHNA meetings in 2018. I currently
serve as a Cupertino City Housing Commissioner.

This person's experience and
expressed devotion appears to
make them a viable candidate for
a Citizens Advisory Committee
(CAC) if such a group is formed for
focused concentration on zoning
changes and specific plan updates.
- Lived experience as a long-term
Cupertino resident
- Lived experience as a Property
owner
We look forward to this person's
continued participation in the
process via the Housing Commission
and through the many
engagement opportunities as they
unfold.
wide range of
experience with
housing in the bay
area, position as
CCHC.

Deep experience
working on housing
related issues in
Cupertino and
current Housing
Commissioner.

Could be good
Commissioner rep if
City wants Housing
Commissioner
members on the
Stakeholder Group.

Up to date with
housing issues and
serves as a
commissioner.

Could be an
important voice and
knowlegable on the
more technical
matters

61.75 65.00%
SHapp-12
I am fairly engaged resident of the community on local
issues that affect our community. Housing is an important part of the discussion in our city. I believe I can contribute to solving this problem.

This person's experience and
expressed devotion appears to
make them a viable candidate for
a Citizens Advisory Committee
(CAC) if such a group is formed for
focused concentration on zoning
changes and specific plan updates.
- Lived experience as a long-term
Cupertino resident
- Lived experience as a Property
owner
We value and support the
sentence: " I believe I can
contribute to solving this problem."
We hope to hear more from this
person through the many
engagement opportunities as they
unfold.
engaged with
community and
process. not alot of
detail about what
they will bring to the
process, but is
interested
More information
about knowlegdge
of some of the local
issues this person is
engaged on would
be helpful.

Not much
information
regarding specific
contributions or
concerns.

58.25 61.32%
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STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
December 6, 2021
Steven Sizem
ore
Interim Director of Community & Economic Development
City of Monterey Park
320 W Newmark Avenue
Monterey Park, CA 91754
Dear Steven S
izemore:

RE: The City of
Monterey Park of 6th Cycle (2021-2029) Draft Housing Element Thank you for subm
itting the City of Monterey Park’s (City) draft housing element received for review on October 7, 2021. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. In addition, HCD considered comments from the Public Counsel and Linda Tang pursuant to Government Code section 65585, subdivision (c).

The draft element
addresses many statutory requirements; however, revisions will be necessary to comply with State Housing Element Law (Article 10.6 of the Gov. Code).

The enclosed Appendix describe the revisions needed to comply with State Housing Element Law.

As a reminder
, the City’s 6th cycle housing element was due October 15, 2021. As of today, the City has not completed the housing element process for the 6th cycle. The City’s 5th cycle housing element no longer satisfies statutory requirements. HCD encourages the City to revise the element as described above, adopt, and submit to HCD to regain housing element compliance.

For your infor
mation, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if a local government fails to adopt a compliant housing element within 120 days of the statutory deadline (October 15, 2021), then any rezoning to accommodate the regional housing needs allocation (RHNA), including for lower-income households, shall be completed no later than one year from the statutory deadline. Otherwise, the local government’s housing element will no longer comply with State Housing Element Law, and HCD may revoke its finding of substantial compliance pursuant to Government Code section 65585, subdivision (i).
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Steven Sizemore