Cupertino City Council
March 8, 2022

CITY OF CUPERTINO
CI

TY COUNCIL
AGENDA
This will be a teleconference meeting without a physical location.

Tuesday, March 8, 2022
6:00 PM
Televised Special Meeting - Continued from March 1, 2022

TELECONFERENCE / PUBLIC PARTICIPATION INFORMATION TO HELP STOP THE SP
READ 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 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 8, 2022 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 pertaining to the agenda during the teleconference meeting as follows:

Oral public comments will be accepted during the teleconference meeting. Comments may be made 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:

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City Council Ag enda March 8, 2022
Online
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ster in advance for this webinar:
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Dial: 669-900-6833 and enter Webinar ID: 990 1250 6368 (Type *9 to raise hand to speak).

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Or an H.323/SIP room system:

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Meeting ID: 990 1250 6368
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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.

In compliance with the Americans with Disabilities Act (ADA), anyone who is planning to attend 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 6 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.

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City Council A genda March 8, 2022

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 08, 2022, commencing at 6:00 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
O
RDINANCES AND ACTION ITEMS - CONTINUED FROM MARCH 1, 2022

1. Subject: (Item 11 on March 1, 2022 Agenda) 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 March 1, 2022 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)

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City Council A genda March 8, 2022

2. Subject: (Item 12 on March 1, 2022 Agenda) 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
March 1, 2022 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

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 6 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

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City Council A genda March 8, 2022
be made publicly available on the City website.

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CITY OF CUPERTINO
Agenda Item
22-10559 Agenda Date: 3/8/2022
Agenda #: 1.

Subject: (Item 11 on March 1, 2022 Agenda) 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 3/4/2022Page 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 7 CC 03-08-2022
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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 11 CC 03-08-2022
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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 ha lf the year and 13 pay periods in FY 21 -22. These increases 13 CC 03-08-2022
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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 17 CC 03-08-2022
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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 18 CC 03-08-2022
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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 19 CC 03-08-2022
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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 21 CC 03-08-2022
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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 22 CC 03-08-2022
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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 special meeting of the City Council of the City of Cupertino this 8th 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. 26 CC 03-08-2022
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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. 27 CC 03-08-2022
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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 28 CC 03-08-2022
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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 29 CC 03-08-2022
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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 31 CC 03-08-2022
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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. 33 CC 03-08-2022
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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. 35 CC 03-08-2022
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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. 36 CC 03-08-2022
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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. 40 CC 03-08-2022
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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. 42 CC 03-08-2022
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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  from  year  to  year  based  on  budgeted  general  fund  expenditures  and revenues.
 Mitigate short‐term economic downturns and volatility in re venues  (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 resu
lt 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  contrib
utions 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 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 budge
ting 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  focused  on  energy  efficiency, renewable energy, water conservation, alternative transportation and other sustaina ble actions.

The City receives rebates for projects that successfully meet the eligibility 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  –  $5
00,000  and  represents  1%  of  the  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 une xpected 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 minimiz e 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  amo unts  that  can  be  used  only  for  the specific purposes determined by a formal action of the government’s highest level of decision‐ 51 CC 03-08-2022
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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 fo r  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) Unassign
ed
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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
22-10560 Agenda Date: 3/8/2022
Agenda #: 2.

Subject: (Item 12 on March 1, 2022 Agenda) 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 3/4/2022Page 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 Ho
using 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 the
ir 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 it s site selection inventory, 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  wi ll 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). 59 CC 03-08-2022
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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  Contributing Housing Element Updates to the Scene and Items of Interest Newsletters  Hosting a December 9th Virtual Community Workshop
 Distributing a mailed postcard to all Cupertino residents  Creating a Stakeholder Group
 Distributing letters to property owners for the sites inventory process 62 CC 03-08-2022
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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 64 CC 03-08-2022
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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 Cupertino‐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 67 CC 03-08-2022
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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 Cupert ino’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%
73 CC 03-08-2022
73 of 92
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%
74 CC 03-08-2022
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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%
75 CC 03-08-2022
75 of 92
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%
76 CC 03-08-2022
76 of 92
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%
77 CC 03-08-2022
77 of 92
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 Siz
emore
Interim Director of Community & Economic Development
City of Monterey Park
320 W Newmark Avenue
Monterey Park, CA 91754
Dear Stev
en Sizemore:

RE: The City of
Monterey Park of 6th Cycle (2021-2029) Draft Housing Element Thank you for s
ubmitting 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 elem
ent 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 remi
nder, 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 inf
ormation, 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

Public participation in the devel opment, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available and considering and incorporating comments where appropriate.

For your i
nformation, some general plan element updates are triggered by housing element adoption. HCD reminds the County to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at:
http://opr.ca.gov/docs/OPR_Appendix_C_final.pdf
and
http://opr.ca.gov/docs/Final_6.26.15.pdf.

Several
federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City meets housing element requirements for these and other funding sources.

We are co
mmitted to assisting the City in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Tristan Lanza, of our staff, at [email protected] .

Sincer
ely,
Melinda C
oy
Housing Accountability
Enclos
ure
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The City of Monterey Park of 6th Cycle Draft Housing Element Page 1 December 6, 2021

APPENDIX

CITY OF MONTEREY PARK

The following changes are necessary to bring the City of Monterey Park’s (City) housing element into compliance with Article 10.6 of the Government Code. Accompanying each recommended change, we cite the supporting section of the Government Code.

Housing element technical assistance information is available on HCD’s website at http://www.hcd.ca.gov/community-development/housing-element/housing-element-memos.shtml.

Among other resources, the housing element section contains HCD’s latest technical assistance tool, Building Blocks for Effective Housing Elements (Building Blocks), available at http://www.hcd.ca.gov/community-development/building-blocks/index.shtml and includes the Government Code addressing State Housing Element Law and other resources.

A. Review and Revision

Review the previous element to evaluate the appropriateness, effectiveness, and progress in implementation, and reflect the results of this review in the revised element. (Gov. Code, § 65588 (a) and (b).)
The element
must provide a cumulative evaluation of the effectiveness of past goals, policies, and related actions in meeting the housing needs of special needs populations (e.g., elderly, persons with disabilities, large households, female-headed households, farmworkers, and persons experiencing homelessness).

B. Housing Needs, Resources, and Constraints

1. Affi
rmatively further[ing] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in the jurisdiction (Gov. Code, § 65583, subd. (c)(10)(A)) General: The element provides data regarding various socio-economic characteristics across all components of the required analysis (e.g., segregation and integration, access to opportunity, displacement). However, the element must discuss and analyze this data for trends and patterns.

Local Data and Knowledge: The element must include local data and knowledge to discuss and analyze any unique attributes about the City related to fair housing issues. The element should complement federal, state, and regional data with local data and knowledge where appropriate to capture emerging trends and issues, including utilizing knowledge from local and regional advocates and service providers. Also, the element must include other relevant factors that contribute to fair housing issues in the jurisdiction. For instance, the element can analyze historical land use and investment practices or other information and demographic trends.

Outreach: While the element included some information on public engagement and outreach efforts (Appx. C, pg.6), to address outreach requirements of AB 686 (Chapter 958, Statutes of 2018), the element must describe meaningful; frequent, 82 CC 03-08-2022
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The City of Monterey Park of 6th Cycle Draft Housing Element Page 2 December 6, 2021
and ongoing public participation with the community including key stakeholders.

The element should describe any specific outreach efforts to organizations that represent special needs populations or members of protected classes. The element could also describe targeted efforts to engage specific communities that are experiencing several fair housing issues.

Enforcement: While the element included a summary of fair housing complaints on a county-wide basis, the element needs to include information on fair housing complaints specific to the City and analyze those complaints for trends, patterns, and impact on protected classes. The element must also include an analysis of any findings, lawsuits, or judgements related to enforcement actions regarding fair housing. In addition, the element must discuss compliance with existing fair housing laws and regulations. For more information and guidance on this analysis, please visit pages 28-30 of the HCD’s AFFH guidance memo:

Affirmatively Furthering Fair Housing (ca.gov).

Racial/Ethnic Areas of Concentration of Poverty (R/ECAP): The element includes information relative to R/ECAP, but the analysis must also provide a regional comparison. In addition, the City has not fully addressed its concentrated areas of affluence. The combination of the R/ECAP and areas of affluence analyses will help guide goals and actions to address fair housing issues. The analysis should evaluate the patterns and changes over time at a local and regional level. Furthermore, the element does list one area of high poverty and segregation therefore the City should analyze this concentration and consider relevant factors such as past policies, practices, and investments as well as whether or not there is a concentration of subsidized housing units in that area.

Sites Inventory: The element must include an analysis demonstrating whether sites identified to meet the regional housing needs allocation (RHNA) are distributed throughout the community in a manner that AFFH. Most of the sites identified in the inventory are concentrated in the northern part of the City. The element illustrated in Figure C-13 and C-18 that sites in the northern section of the City are areas that have higher concentrations of segregation and poverty. A full analysis should discuss this concentration and address the income categories of identified sites with respect to location, the number of sites and units by all income groups and how that effects the existing patterns for all components of the assessment of fair housing (e.g., segregation and integration, access to opportunity). The element should also discuss whether the distribution of sites improves or exacerbates conditions. If sites exacerbate conditions, the element should identify further program actions that will be taken to mitigate this (e.g., anti-displacement strategies).

Contributing Factors: The element identifies many contributing factors to fair housing issues. In addition, the element should consider prioritizing these factors to better formulate policies and programs and carry out meaningful actions to AFFH.

Goals, Priorities, Metrics, and Milestones: While the element provides additional analysis and identifies contributing factors to fair housing issues in the City, it does not 83 CC 03-08-2022
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The City of Monterey Park of 6th Cycle Draft Housing Element Page 3 December 6, 2021
include sufficient action to overcome patterns of segregation and foster inclusive communities. As a result, programs must be added as appropriate to sufficiently respond to contributing factors to fair housing issues. The element must add, and revise programs based on a complete analysis and listing and prioritization of contributing factors to fair housing issues. Furthermore, the element must include metrics and milestones for evaluating progress on programs, actions, and fair housing results. For more information, please see HCD’s guidance at https://www.hcd.ca.gov/community-development/affh/index.shtml#guidance.

2. Include an analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. (Gov. Code, § 65583, subd. (a)(2).) Cost-Burden: The element must quantify and analyze the total number of cost burdened households including cost burdened households by tenure.

3. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov. Code, § 65583, subd. (a)(3).)
Progress in Meeting the RHNA: The element indicates (page 4-4) that 229 units including 40 units affordable to lower-income households are planned, approved, or pending. The element must include additional information on the status of these units including any remaining entitlement that are needed prior to approval; and for projects approved, but not yet built, the jurisdiction must demonstrate the units are expected to be built in the planning period. The element must also include an analysis to demonstrate the affordability of the 40 units affordable to lower-income households based on actual or projected sales prices, rent levels, or other mechanisms establishing affordability in the planning period.

Sites Identified in Prior Planning Periods: The sites inventory indicates that there are no sites that were included from previous planning period. However, pursuant to third party comments, there may be several sites that were included in the current sites inventory that had been utilized in past elements. The element should clarify and identify if sites were identified in prior planning periods.

Realistic Capacity: While the element provides assumptions of buildout for sites included in the inventory, it must also provide support for these assumptions. For example, the element should demonstrate what specific trends, factors, and other evidence led to the assumptions. The City lists maximum density allowed in a zone multiplied by the size of the parcel. The estimate of the number of units for each site must be adjusted as necessary, based on the land use controls and site improvements, typical densities of existing or approved residential developments at a similar affordability level in that jurisdiction, and on the current or planned availability and accessibility of sufficient water, sewer, and dry utilities. 84 CC 03-08-2022
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In addition, the element appears to assume residential development on sites with zoning that allow 100 percent non-residential uses. While the element mentions the identified sites represent a substantial opportunity for housing and the area is located near employment, it must still account for the likelihood of non-residential uses. The element should include analysis based on factors such as development trends, performance standards or other relevant factors. For example, the element could analyze all development activity in these nonresidential zones, how often residential development occurs and adjust residential capacity calculations, policies, and programs accordingly.

Suitability of Nonvacant Sites: The element must include an analysis demonstrating the potential for redevelopment of nonvacant sites. The analysis mentioned a list of factors that were considered to determine development potential including improvement-to- land value ratio of less than one, the parcel’s existing use vs. zoned use, age of structure and underutilization. However, the analysis should describe why and how the factors demonstrate that these sites are suitable for development. In addition, the element needs to also analyze the extent that existing uses may impede additional residential development. The element can summarize past experiences converting existing uses to higher density residential development, include current market demand for the existing use, provide analysis of existing leases or contracts that would perpetuate the existing use or prevent additional residential development and include current information on development trends and market conditions in the City and relate trends to the sites identified.

In addit
ion, specific analysis and actions are necessary if the housing element relies upon nonvacant sites to accommodate more than 50 percent of the RHNA for lower- income households. For your information, the housing element must demonstrate existing uses are not an impediment to additional residential development and will likely discontinue in the planning period. (Gov. Code, § 65583.2, subd. (g)(2).) Absent findings (e.g., adoption resolution) based on substantial evidence, the existing uses will be presumed to impede additional residential development and will not be utilized toward demonstrating adequate sites to accommodate the RHNA.

Small Sites: Sites smaller than a half-acre in size are deemed inadequate to accommodate housing for lower-income housing unless it is demonstrated that sites of equivalent size were successfully developed during the prior planning period for an equivalent number of lower-income housing units as projected for the site or unless the housing element describes other evidence the site is adequate to accommodate lower income housing. While the element lists some recent development on smaller sites, it should relate these trends to identified sites. For example, almost all of the recent developments had at least 40 units, but lots to be consolidated result in projects at smaller scale. In addition, it is unclear whether the examples result in housing affordable to lower-income households. The element should relate these example projects to the site strategy for lot consolidation, particularly as it relates to facilitating housing affordable to lower-income households. The analysis should include conditions rendering parcels suitable and ready for consolidation. 85 CC 03-08-2022
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Zoning for Lower-Income Households: The element must demonstrate densities appropriate to accommodate housing for lower-income households. The element is relying on sites within the R-3 zone which currently have a maximum density of 25 units per acre. The site inventory assumes the maximum allowable density in these zones will be 30 units per acre, but the element only states that it will “consider” increasing the density to 30. Unless the element commits to increasing the zoning to 30 units per acre, the element must contain the analysis demonstrating that 25 units per acre is appropriate for facilitating development affordable to lower-income households in the City. Please note because zoning is not already in place at the beginning of the planning period, rezoning for these sites must be consistent with Government Code, § 65583.2, subdivision (h) and (i).

Sites with Zoning for a Variety of Housing Types:

• Emergency Shelters: The element mentions emergency shelters are permitted in the Office Professional (O-P) Zone. The element must discuss available acreage in the OP zone, including typical parcel sizes and the presence of reuse opportunities and compare that capacity to identified need for emergency shelter. In addition, the analysis should address proximity to transportation and services and any conditions inappropriate for human habitability. "In addition, the element should describe how emergency shelter parking requirements are in line with AB139/Government Code section 65583, subdivision (a)(4)(A) or include a program to comply with this requirement.”

• Employee Housing: Employee Housing: The element must demonstrate zoning is consistent with the Employee Housing Act (Health and Safety Code, § 17000 et seq.) or add or modify programs. Specifically, section 17021.5 requires employee housing for six or fewer employees to be treated as a single-family structure and permitted in the same manner as other dwellings of the same type in the same zone.

4. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures. The analysis shall also demonstrate local efforts to remove governmental constraints that hinder the locality from meeting its share of the regional housing need in accordance with Government Code section 65584 and from meeting the need for housing for persons with disabilities, supportive housing, transitional housing, and emergency shelters identified pursuant to paragraph (7). Transitional housing and supportive housing shall be considered a residential use of property, and shall be subject only to those restrictions that apply to other residential dwellings of the same type in the same zone. (Gov. Code, § 65583, subd. (a)(5).)

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Development Standards: The element must identify and analyze all relevant land use controls impacts as potential constraints on a variety of housing types. The analysis should analyze land use controls independently and cumulatively with other land use controls. Specifically, the element must analyze floor area ratio requirements and describe the requirements for the mixed-use projects including any requirements for commercial uses or if 100 percent residential is allowed.

Housing Overlay Zone: The element relies on sites Housing Overlay Zones that was adopted through the 2020 General Plan update. While some information was provided on how the overlay allows residential the element must include a complete description and analysis of the Overlay, including whether further zoning must be adopted to implement the overlay zones and the permitting procedure for access to the overlay.

The element should also detail any affordability requirements, whether 100 percent residential uses are allowed, development standards, and what incentives or concessions for utilization.

Parking Standards: The element must analyze studio and one bedroom parking requirement and requirement for enclose parking for its impact as a potential constraint on housing including project cost. The analysis should examine whether parking standards impede a developer’s ability to achieve maximum densities, and if there are provisions in place to provide parking reductions where less need is demonstrated, particularly for persons with disabilities, the elderly, affordable housing, and infill and transit-oriented development.

Development Fees: The element has identified planning fees; however, the element must describe all required fees including impact and building fees. For example, the analysis could identify the total amount of fees and their proportion to the development costs for both single family and multifamily housing.

Zoning and Fee Transparency: The element must clarify its compliance with new transparency requirements for posting all zoning and development standards for each parcel on the jurisdiction’s website pursuant to Government Code section 65940.1(a)(1).

Local Ordinances: The element must specifically analyze locally adopted ordinances such as inclusionary ordinances or short-term rental ordinances that directly impact the cost and supply or residential development. The analysis should demonstrate local efforts to remove governmental constraints that hinder the locality from meeting its share of the regional housing need and from meeting the need for housing for persons with disabilities, supportive housing, transitional housing, and emergency shelters.

Constraints on Housing for Persons with Disabilities: The element briefly describes its reasonable accommodation procedures including that a reasonable accommodation must be in general conformance with the City’s development and municipal codes and comply with the California Environmental Quality Act. However, the purpose of the reasonable accommodation is to provide exception to zoning and land use. As a result, the element must include a program to address this constraint. In addition, group homes for seven or more persons appears to be excluded from several zones allowing 87 CC 03-08-2022
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The City of Monterey Park of 6th Cycle Draft Housing Element Page 7 December 6, 2021
residential uses and subject to a conditional use permit (CUP). The element should evaluate these requirements as constraints and include programs as appropriate.

5. An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the availability of financing, the price of land, the cost of construction, the requests to develop housing at densities below those anticipated in the analysis required by subdivision (c) of Government Code section 65583.2, and the length of time between receiving approval for a housing development and submittal of an application for building permits for that housing development that hinder the construction of a locality’s share of the regional housing need in accordance with Government Code section 65584. The analysis shall also demonstrate local efforts to remove nongovernmental constraints that create a gap between the locality’s planning for the development of housing for all income levels and the construction of that housing. (Gov. Code, § 65583, subd. (a)(6).)

Approval Time and Requests Lesser Density: The element must be revised to analyze requests to develop housing at densities below those anticipated in the sites inventory, including hinderance on the construction of the City’s share of the regional housing need and include programs as appropriate.

6. Analyze existing assisted housing developments that are eligible to change to non-low- income housing uses during the next 10 years due to termination of subsidy contracts, mortgage prepayment, or expiration of use restrictions. (Gov. Code, § 65583, subd. (a)(9) through 65583(a)(9)(D).)

While the element identifies 441 assisted units, the element lists three properties that are at-risk of expiring within the next ten years for a total of 251 units. The element must identify local public agencies, public or private nonprofit corporations, and for- profit organizations with the legal and managerial capacity to acquire and manage at- risk projects pursuant to Government Code Section 65583, subdivision (a)(8)(C)). In addition, the element must list potential federal, state, and local funding sources that can be used to preserve the units.

While the element analyzes the cost of replacement for units designated high risk, the element must analyze replacement costs for all units with expiring restrictions in the next ten years. Furthermore, the analysis should contain the following:

• Estimate the costs of producing new rental housing (comparable in size and rent levels to existing at-risk units) to replace units converting from affordable to market rate. The analysis should consider current land costs and either current construction costs (square footage rates for multifamily development) or the actual cost of recently completed units.
• Estimate the cost of preserving the identified assisted housing developments including acquisition and rehabilitation costs long-term affordability controls and project-based rent subsidies.

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A project-by-project replacement/preservation cost estimate is not required (Government Code Section 65583(a)(8)(B)). The element can make an assessment of the appropriate strategy (replace vs. preserve) based on sample cost estimates.

C. Housing Programs

1. Include a program which sets forth a schedule of actions during the planning period, each with a timeline for implementation, which may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the housing element through the administration of land use and development controls, the provision of regulatory concessions and incentives, and the utilization of appropriate federal and state financing and subsidy programs when available. The program shall include an identification of the agencies and officials responsible for the implementation of the various actions. (Gov. Code, § 65583, subd. (c).)
To address
the program requirements of Government Code section 65583, subdivision (c)(1-6), and to facilitate implementation, programs should include: (1) a description of the City’s specific role in implementation; (2) definitive implementation timelines; (3) objectives, quantified where appropriate; and (4) identification of responsible agencies and officials. Programs to be revised include the following:
• General: The element must provide discrete timing for all programs (e.g., month, year) to account for how often the action will occur as well as to ensure a beneficial impact throughout the planning period and quantify objectives where feasible. In addition, all programs should be evaluated to ensure meaningful and specific actions and objectives. Programs containing unclear language (e.g., “Evaluate”; “Consider”; “Encourage”; etc.) should be amended to include more specific and measurable actions.
• Program 1 (Residential Rehabilitation Program): The program must be revised to include a timeframe for implementation.
• Program 4 (Housing for Special Needs Population): The program must be revised to specify the incentives for developers and clarify what actions will “nurture partnerships” to educate and execute the development of supportive and transitional housing.
• Program 5 (Flexibility in Development Standards): The program must be revised to specify a timeline for implementing the actions of the program. • Program 6 (Monterey Park Municipal Code): The program must be revised to remove the “if required” language from its objectives and actions. • Program 9 (Sites Used in Previous Planning periods Housing Elements): The element must be revised to remove the “consider” language from its objective for rezoning or amending the MPMC.
• Program 10 (Mixed-Use Sites): The program must be revised to include the timing for each of its objectives.
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• Program 14 (Affordable Housing Development Incentives): The program must specify the actions that the city will take to “actively promote” housing development and to include timeframes with listed actions.

2. Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Government Code section 65584.09. Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single- room occupancy units, emergency shelters, and transitional housing. (Gov. Code, § 65583, subd. (c)(1).)
As noted i
n Finding B.3, the element does not include a complete site analysis; therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types. In addition, the element should be revised as follows:

Program 7 (Ensure Adequate Sites to Accommodate Regional Fair Share of Housing Growth): The program must be revised to clarify with specific actions and language how the city will “promote residential density” and list the measures that will be adopted to encourage affordability by design with timing. Also, if the element is relying on the R-3 zone and the City will need rezoning to allow up to 30 units per acre then the element will need a rezoning program for these sites that meet 65583.2(h) and (i).

Lot Consolidation: As the element relies on consolidated small sites to accommodate the RHNA f
or lower-income households, it should include a program(s) to facilitate lot consolidation and development of housing on small sites. For example, the program could commit to (1) granting density bonuses above state density bonus law (Gov.

Code, § 65915.); (2) deferring fees specifically for consolidation; (3) expediting permit processing; (4) identifying and targeting specific financial resources; and (5) modifying development standards.

3. Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).) As noted i
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of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints.

Specifically, the element recognizes that minimum lot size, high standards, and other standards in the MU-1 and MU-II zones are a constraint to achieving densities.

However, the element lacks specific program commitments to mitigate or remove these constraints. The element could amend Program 6 (Monterey Park Municipal Code) to expressly state how that these standards will be modified or removed. This is especially critical because there are many sites identified in the inventory that do not meet minimum size requirements and would require lot consolidation to be developed.

4. P romote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics protected by the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2), Section 65008, and any other state and federal fair housing and planning law. (Gov. Code, § 65583, subd. (c)(5).)
As noted i
n Finding B1, the element must include a complete assessment of fair housing. Based on the outcomes of that analysis, the element must add or modify programs. While the element include Program 19 (Fair Housing Program) goals and actions must create meaningful impact to overcome contributing factors to fair housing issues and actions must have specific metrics and milestones. For example, Table 6-1 states the city will “incentives the development of more housing to accommodate the varied needs of different populations,” but does not describe how this action will be implemented. The program and its actions must each be concrete in affirmatively furthering fair housing (AFFH).

In addition, currently the element only addresses AFFH in Program 19. The element could revise other program actions to address the City’s obligation to AFFH including how programs address housing mobility enhancement, new housing choices and affordability in high opportunity areas, place-based strategies for community preservation and revitalization and displacement protection.

5. The housing program shall preserve for low-income household the assisted housing developments identified pursuant to paragraph (9) of subdivision (a). The program for preservation of the assisted housing developments shall utilize, to the extent necessary, all available federal, state, and local financing and subsidy programs identified in paragraph (9) of subdivision (a), except where a community has other urgent needs for which alternative funding sources are not available. The program may include strategies that involve local regulation and technical assistance. (Gov. Code, § 65583, subd. (c)(6).)
The element
includes Program 2 (Conserve At-Risk Housing) and specifies actions to monitor at-risk units. However, the element must include contacting property owners within at least one year of the affordability expiration dates on projects. Also, the program should be modified to include noticing requirements within three years and six 91 CC 03-08-2022
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months of the affordability expiration dates, in addition to coordinating with qualified entities such as non-profit organizations and establish specific time parameters around such actions. In addition, the element should be revised to adhere to current State Preservation Notice Law (Gov. Code 65863.10, 65863.11, 65863.13) which requires owners to provide tenants and affected public entities (including the City) notices regarding expiring rental restrictions starting three years before expiration.

D. Quantified Objectives
Establish the number of housing units, by income level, that can be constructed, rehabilitated, and conserved over a five-year time frame. (Gov. Code, § 65583, subd. (b)(1 & 2).)
The element must include quantified objectives to establish an estimate of housing units by income category that can be conserved over the planning period.

E. Public Participation
Local governments shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the housing element, and the element shall describe this effort. (Gov. Code, § 65583, subd.(c)(8).) Whil
e the City made effort to include the public through workshops and surveys, moving forward, the City should employ additional methods for public outreach efforts, particularly including lower-income and special needs households and neighborhoods with higher concentrations of lower-income and special needs households. For example, the City could conduct targeted stakeholder interviews or establish a committee representative of lower- income and special needs households in future public outreach efforts. HCD also received comments with many meaningful suggestions and other issues related to zoning and AFFH.

HCD encourages the City to consider these comments which will be provided under a separate cover.

In addition, HCD understands the City made the element available to the public concurrent with its submittal to HCD. By not providing an opportunity for the public to review and comment on a draft of the element in advance of submission, the City has not yet complied with statutory mandates to make a diligent effort to encourage the public participation in the development of the element and it reduces HCD’s ability to consider public comments in its review. The availability of the document to the public and opportunity for public comment prior to submittal to HCD is essential to the public process and HCD’s review. The City must proactively make future revisions available to the public, including any commenters, prior to submitting any revisions to HCD and diligently consider and address comments, including making revisions to the document where appropriate. HCD’s future review will consider the extent to which the revised element documents how the City solicited, considered, and addressed public comments in the element. The City’s consideration of public comments must not be limited by HCD’s findings in this review letter. 92 CC 03-08-2022
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