Cupertino City Council
June 6, 2023

Stormwater Pollution Prevention Ordinance - Page 25

2. All new buildings constructed to house food service facilities and all existing buildings constructed to house food service facilities which are subject to City review and approval for changes or modifications shall include a covered area for dumpsters to prevent water runon to the area and runoff from the area. Dumpster storage areas shall be designed in accordance with the City's Public Works Guidelines for Non-Residential Building Trash & Recycling Enclosures. Retrofits to existing facilities shall be revamped to the maximum extent practicable and shall be subject to the approval of the Director of Public Works or their designee.

3. Drains that are installed beneath dumpsters serving food service facilities shall be connected to a grease removal device upstream of the connection to the sanitary sewer.

4. All used cooking oil/grease containers must have secondary containment and the containment device must be kept free from excessive buildup of spilled materials.

I. Parking Garages.

1. If installed, parking garage floor drains on interior levels shall not be connected to the storm drain, but to an oil/water separator prior to discharging to the sanitary sewer system.

2. Parking garage oil/water separators shall have a minimum capacity of 100 gallons.

3. The parking garage oil/water separator shall be cleaned at a frequency of at least once every twelve months or more frequently if recommended by the manufacturer or as required by the City or other regulatory agency.

J. Root control chemicals. It is unlawful for any person to discharge, dispose or add to the storm drain system any substance to control roots.

K. Dumpsters.

1. All new buildings, except for single-family and duplex residences, all new “wet waste” businesses and all existing “wet waste” businesses which are subject to City review and approval for changes or modifications, shall provide a covered area for a dumpster(s) designed in accordance with the City’s Public Works Guidelines for Non-Residential Building Trash & Recycling Enclosures. Retrofits to existing facilities shall be revamped to the maximum extent practicable and shall be subject to the approval of the Director of Public Works.

2. The area shall be designed to prevent water runon to the area and runoff from the area.

3. Dumpsters serving food service facilities shall be designed in accordance with Section

9.18.210.

L. Multi-Family Residential Vehicle Washing Facilities.

1. New residential buildings with 25 or more units shall provide a covered, bermed area for occupants to wash their vehicles.
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2. The vehicle washing area shall be designed to prevent water runon to the area and runoff from the area.

3. A drain shall be installed to capture all vehicle wash waters and shall be connected to an oil/water separator prior to discharge to the sanitary sewer system. Discharge to the sanitary sewer must first be approved by Cupertino Sanitary District.

4. Vehicle washing area oil/water separators shall have a minimum capacity of 100 gallons.

5. The oil/water separator shall be cleaned at a frequency of at least once every six months or more frequently if recommended by the manufacturer or the superintendent.

M. Copper Roofing and Architectural Materials.

1. Copper metal roofing, copper granule-containing asphalt shingles and copper gutters shall not be permitted for use on any residential, commercial or industrial building for which a building permit is required.

2. Copper flashing for use under tiles or slates and small copper ornaments are exempt from this prohibition.

3. Discharges to the storm drain system of wastewater generated during the installation, cleaning, treating, and washing of copper architectural features, including copper roofs are prohibited. Discharges to landscaping or to the sanitary sewer system with advance approval from Cupertino Sanitary District are allowed.

4. Discharges of water from pools (including connection for filter backwash), spas, fountains and water features that contain copper-based chemicals are prohibited.

N. Pesticide Storage at Commercial Facilities.

1. Pesticides shall be stored in labeled containers and shall not be stored where they can be exposed to rain or irrigation water and be allowed to runoff to storm drains or creeks.

2. Secondary containment shall be required for containment of pesticides, unless they are stored in an indoor storage unit. Storage of pesticides shall follow guidance from the local fire department and/or any other governmental regulatory agency.

3. Employees who use pesticides must be trained to clean up spills. Spill kits shall be provided and stored near pesticides.

O. Mobile Businesses.

1. Mobile businesses shall be required to use best management practices and source control measures that comply with Municipal Regional Permit.

P. Outdoor Recycling, Composting and Trash Receptacle Sets (Trios) Required for Public Use at New and Redeveloped Commercial and Retail Sites.

1. At least one set of outdoor waste receptacles consisting of three separate receptacles is referred to as a “Trio.” The Trio shall consist of one receptacle each for recyclable, 147
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compostable and garbage materials and must be provided by the property owner and placed together in collection areas for public use at all new and redeveloped commercial and retail sites. Unless approved by the Director of Public Works or their designee, the Trio should be located on private property adjacent to the City sidewalk. The receptacles must be a minimum of 20 gallons (each receptacle within the Trio), be permanently attached to the ground, be designed for exterior use, and include a cover to prevent rainwater or irrigation intrusion, and each be labeled Recycle, Compost, Trash. The receptacles shall be maintained by the property owner or the property owner’s designee.

2. One Trio may satisfy the requirement for up to four adjacent businesses at one shopping center and is at the discretion of the Director of Public Works or their designee. The number of receptacle sets that are required for large redevelopment projects will be determined by the Director of Public Works or their designee and are intended to be sufficient to contain the amount of litter and debris that is reasonably expected to be generated from the development project or the permitted project site.

3. The requirement for outdoor Trios shall be a condition of approval that will be reviewed within the permit application process. The condition may be amended if an alternative set of litter receptacles will provide equal containment of public litter, or waived by the Director of Public Works or their designee if the potential impact from litter in the vicinity of the business is negligible. (Ord. 13-2103, § 2, 2013; Ord. 2088, § 1 (part), 2012; Ord. 1982, § 1 (part), 2006; Ord. 1967, § 1 (part), 2005; Ord. 1922, § 1 (part), 2003)

4. Covered cigarette urns are required to be installed adjacent to or attached to the Trio.

Placement of the cigarette urn must conform to the Cupertino Municipal Code and any State laws limiting smoking in relation to buildings.

5. Removal of any required Trio or cigarette urn is prohibited unless approved by the Director of Public Works or their designee.

9.18.215 Litter Prevention and Enforcement.

A. Violations

1. It is unlawful for any person to sweep, throw, deposit, place, or drop without picking up, any litter into or upon any public street, way, sidewalk, parking lot or other public place, or in or upon private property in the City into or upon which the public is admitted by easement or license.

2. It is unlawful for any person to throw or deposit litter in any fountain, pond, creek, stream or other body of water in a park or elsewhere within the City.

3. It is unlawful for any person to collect any garbage, mixed recyclables, or other materials from public or privately authorized outdoor receptacles, kept or accumulated within the City, unless such person is an agent or employee of the City acting within the course and scope of his or her employment, or is acting pursuant to a franchise awarded by the City to act as garbage collector.
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4. It is unlawful for any person to discard, deposit, or maintain litter on any occupied private property within the City, whether owned by such person or not.

5. It is unlawful for any person to discard, deposit, or maintain litter on any open or vacant private property within the City whether or not the property is owned by such person.

6. It is unlawful for any person to drive or move any open vehicle or trailer within the City unless there is a tarp over the contents or the material is constructed and loaded so as to ensure that all litter is prevented from being blown or deposited upon any street, alley or other public or private place.

B. Collection and Maintenance

1. Persons placing material intended for disposal or recycling in public receptacles or in authorized private receptacles shall do so in such a manner as to prevent it from being scattered, carried, or deposited by the elements or animal scavengers upon any street, sidewalk, parking lot, creek, park or other public or private place.

2. Persons placing material intended for disposal or recycling in any public or privately authorized outdoor receptacle shall ensure that the lid is maintained completely closed. The over-filling of any outdoor receptacle intended for, but not limited to, trash, compostable organics and recyclables, in a manner that does not allow the lid to be completely closed is prohibited. The lid of a residential yard waste bin may be left partially open so long as the greater part of the yard and tree trimmings are contained if it is necessary to leave the lid partially open due to the branches or limbs not fitting completely into the bin with the lid closed. Yard waste bins containing food waste must be left with lids completely closed when not being serviced.

3. Uncontained large items originating from single-family homes that will not fit into a receptacle may be placed at the curb for scheduled collection within 24 hours of such collection by an agent or employee of the City or by the awardee of a franchise by the City to act as garbage and recycling collector. Any such bulky item(s) may not be placed in the City right-of-way while awaiting collection.

4. Persons owning or occupying property shall maintain the premises, including the perimeter and the City sidewalk in front of their premises, free of loose litter.

5. Persons sharing Trios and cigarette urns placed outside of retail areas for public use, as required in section 9.18.210.4.P., must also share equally in the responsibility of emptying the receptacles so that they do not overflow and maintaining the area around the receptacles so that it is free of loose litter.

C. Exceptions
The provisions of this section shall not apply to the distribution of mail by the United States, nor to newspapers of general circulation as defined by general law, nor any periodical or current magazine regularly published; provided, however, that no newspaper shall be thrown, deposited or distributed upon any premises where the owner or inhabitant thereof shall have previously advised, in writing, the publisher or distributor of such newspaper not to do so; and no newspaper shall be thrown, deposited or distributed upon any premises 149
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where two (2) or more editions of the same newspaper remain unclaimed by the owner or occupant thereof. (Ord. 13-2103, § 3 (part), 2013)

9.18.220 Violation.

Any person who violates any provision of this Chapter shall be guilty of a misdemeanor and upon conviction thereof shall be punished as provided in Chapter 1.12 of this Code. The City may also impose re-inspection fees to the property owner for verification of compliance as enumerated in the City’s Public Works Fee Schedule.
(Ord. 2088, § 1 (part), 2012; Ord. 1982, § 1 (part), 2006; Ord. 1967, § 1 (part), 2005; Ord. 1922, § 1 (part), 2003; Ord. 1598, § 1 (part), 1992)

9.18.230 Civil Penalty for Violation–Payment of Funds to Account.

Any person who violates any provision of this Chapter or any provision of any permit issued pursuant to this Chapter shall be civilly liable to the City in a sum not to exceed the amounts provided for in Government Code §§ 54740 and/or 54740.5. The City may petition the Superior Court pursuant to Government Code § 54740 to impose, assess and recover such sums. The civil penalty provided in this section is cumulative and not exclusive, and shall be in addition to all other remedies available to the City under State and Federal law and local ordinances. Funds collected pursuant to this Section shall be paid to City's Environmental Storm Management Account.
(Ord. 2088, § 1 (part), 2012; Ord. 1982, § 1 (part), 2006; Ord. 1967, § 1 (part), 2005; Ord. 1922, § 1 (part), 2003; Ord. 1598, § 1 (part), 1992)

9.18.240 Civil Penalty for Illicit Discharges–Payment of Funds to Account.

Any person who discharges pollutants, in violation of this Chapter, by the use of illicit connections shall be civilly liable to the City in a sum not to exceed Twenty-Five Thousand Dollars per day per violation for each day in which such violation occurs. The City may petition the Superior Court pursuant to Government Code § 54740 to impose, assess and recover such sums. The civil penalty provided in this section is cumulative and not exclusive, and shall be in addition to all other remedies available to the City under State and Federal law and local ordinances. Funds collected pursuant to this section shall be paid to City's Environmental Storm Management Account.
(Ord. 2088, § 1 (part), 2012; Ord. 1982, § 1 (part), 2006; Ord. 1967, § 1 (part), 2005; Ord. 1922, § 1 (part), 2003; Ord. 1598, § 1 (part), 1992)

9.18.250 Notice of Violation.
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Unless the Director of Public Works finds that the severity of the violation warrants immediate action under Sections 9.18.220, 9.18.230 or 9.18.240 above, or permit revocation or suspension, he/she shall issue a notice of violation which:

1. Enumerates the violations found; and

2. Orders compliance in any manner authorized by and consistent with the City's Enforcement Response Plan and the provisions of chapter 1.10 of this Code. (Ord. 2088, § 1 (part), 2012; Ord. 1982, § 1 (part), 2006; Ord. 1967, § 1 (part), 2005; Ord. 1922, § 1 (part), 2003; Ord. 1598, § 1 (part), 1992)

9.18.260 Administrative Penalties–Payment of Funds to Account.

Whenever the Director of Public Works or their designee finds that any person has violated any provision of this chapter, or has violated any notice requiring compliance with any provision of this chapter, the Director of Public Works or their designee may issue an administrative citation pursuant to the procedures set forth in Chapter 1.10 of this code and assess an administrative penalty in a sum not to exceed the amounts provided in Government Code § 54740.5. The remedy provided in this section is cumulative and not exclusive, and shall be in addition to all other remedies available to the City under state and federal law and local ordinances. Funds collected pursuant to this section shall be paid to City’s Environmental Storm Management Account.
(Ord. 13-2103, § 3 (part), 2013; Ord. 2088, § 1 (part), 2012; Ord. 1982, § 1 (part), 2006; Ord. 1967, § 1 (part), 2005; Ord. 1922, § 1 (part), 2003; Ord. 1598, § 1 (part), 1992)

9.18.270 Severability.

If any section, subsection, subdivision, sentence, clause, or phrase of this Chapter is for any reason held to be unconstitutional or otherwise void or invalid, by any court of competent jurisdiction the validity of the remaining portion of this Chapter shall not be affected thereby. (Ord. 2088, § 1 (part), 2012; Ord. 1982, § 1 (part), 2006; Ord. 1967, § 1 (part), 2005; Ord. 1922, § 1 (part), 2003)
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CITY OF CUPERTINO
Agenda Item
23-12299 Agenda Date: 6/6/2023
Agenda #: 7.

Subject: Consider adoption of a Resolution to request the Metropolitan Transportation Commission (MTC) allocate Fiscal Year (FY) 2023/2024 Transportation Development Act Article 3 (TDA 3) Pedestrian/Bicycle Project funding for the De Anza Boulevard Buffered Bike Lanes Project Adopt Resolution No. 23-064 (Attachment A) requesting the MTC allocate $166,259 from FY 2023/2024 TDA 3 Pedestrian/Bicycle Project funding to the City of Cupertino's De Anza Boulevard Buffered Bike Lanes Capital Improvement Programs (CIP) Project CITY OF CUPERTINO Page 1 of 1 Printed on 5/31/2023
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CITY COUNCIL STAFF REPORT
Meeting: June 6, 2023
Subject
Consider adoption of a Resolution to request the Metropolitan Transportation Commission (MTC) allocate Fiscal Year (FY) 2023/2024 Transportation Development Act Article 3 (TDA 3) Pedestrian/Bicycle Project funding for the De Anza Boulevard Buffered Bike Lanes Project.

Recommended Action
Adopt Resolution No. 23-XXXX (Attachment A) requesting the MTC allocate $166,259 from FY 2023/2024 TDA 3 Pedestrian/Bicycle Project funding to the City of Cupertino’s De Anza Boulevard Buffered Bike Lanes Capital Improvement Programs (CIP) Project.

Reasons for Recommendation
The Transportation Development Act (TDA) has long been a cornerstone of California State (State) transit funding. The State TDA funding allows counties to establish a quarter-cent sales tax to finance a wide variety of transportation projects. Specifically, TDA 3 provides funding annually for bicycle and pedestrian projects.

Santa Clara County’s (County) “Guarantee” is a share of MTC’s TDA 3 funds, which are distributed to jurisdictions based on 2022 California Department of Finance population figures. These funds may be saved for up to four years, plus one year for the programing of funds. The City has accumulated a total of $414,955, which includes saved funds and rescinded funding requests from prior years.

Proposed TDA 3 projects must be ready to implement within one year of their submittal in the application cycle. The following project types are eligible for TDA 3 funding:

1. Construction and/or engineering of bicycle or pedestrian projects.

2. Maintenance of a Class I shared-use path and Class IV separated bikeways.

3. Bicycle safety education programs (no more than 5% of County total).

4. Development of comprehensive bicycle or pedestrian facilities plans (allocations to a claimant for this purpose may not be made more than once every five years).

5. Restriping of Class II bicycle lanes and buffered bicycle lanes. 153
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In 2019, the Public Works Department requested $166,259 to help fund a Bike Boulevards Project but rescinded the funding request in February 2022 because the scope of the project had changed. Since TDA 3 funds may only be saved for up to four years, the City must program the rescinded funds, at the latest, in FY 2023/2024 to avoid having the funds revert to the Countywide pool in the next cycle.

The Department of Public Works recommends $166,259 of FY 2023/2024 TDA 3 Pedestrian/Bicycle Project funding be allocated to the De Anza Boulevard Buffered Bike Lanes Project. The project was initiated in FY 2022/2023 as part of the approved CIP project fund and is currently funded by the City at $525,000.

The TDA program requires each participating jurisdiction to have a Bicycle and Pedestrian Advisory Committee review and prioritize TDA 3 bicycle and pedestrian projects and plans. On April 19, 2023, Cupertino’s Bicycle Pedestrian Commission recommended that the City Council approve Cupertino’s TDA 3 allocation request for use on the De Anza Boulevard Buffered Bike Lanes Project.

In accordance with MTC Resolution 875, all claimants that have received an allocation of TDA 3 funds are required to submit an annual fiscal and compliance audit to MTC and to the Secretary of the Business and Transportation Agency within 180 days after the close of each fiscal year. All TDA audits are due to MTC by December 31 of each year.

Sustainability Impact
The recommended improvements are intended to encourage bicycle use, which will reduce single occupancy vehicle trips and lead to reduced vehicle emissions. This will help the City achieve air quality and greenhouse gas emission reduction goals.

Fiscal Impact
The approval of this Resolution satisfies the MTC/TDA requirement, resulting in the City receiving TDA 3 funds in the amount of $166,259. These funds will be appropriated to the De Anza Boulevard Buffered Bike Lanes CIP Project (420-99-262 440-438). The project’s current City-funded appropriation ($525,000, explained above) can be offset by the amount of the grant funds received. The balance of the TDA 3 funds are targeted to complete an update and consolidation of the City’s Bicycle and Pedestrian Master Plans.

California Environmental Quality Act (CEQA)
This project was found to be categorically exempt from CEQA pursuant to CEQA Guidelines section number 15301, existing facilities, as bicycle lanes previously existed within the same right-of-way of the project.
_____________________________________
Prepared by: Marlon Aumentado, Assistant Civil Engineer Reviewed by: David Stillman, Transportation Manager
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Reviewed by: Susan Michael, Capital Improvement Programs Manager Reviewed by: Chad Mosley, Interim Director of Public Works Reviewed by: Matt Morley, Assistant City Manager
Approved for Submission by: Pamela Wu, City Manager
Attachments:

A – Draft Resolution and Application
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RESOLUTION NO. 23-XXX

A RESOLUTION OF THE CUPERTINO CITY COUNCIL REQUEST TO THE

METROPOLITIAN TRANSPORTATION COMMISSION FOR THE
ALLOCATION OF FISCAL YEAR 2023/2024 TRANSPORTATION
DEVELOPMENT ACT ARTICLE 3 PEDESTRIAN/BICYCLE PROJECT

FUNDING
WHEREAS, Article 3 of the Transportation Development Act (TDA), Public Utilities Code (PUC) Section 99200 et seq., authorizes the submission of claims to a regional transportation planning agency for the funding of projects exclusively for the benefit and/or use of pedestrians and bicyclists; and WHEREAS, the Metropolitan Transportation Commission (MTC), as the regional transportation planning agency for the San Francisco Bay region, has adopted MTC Resolution No. 4108, Revised, entitled “Transportation Development Act, Article 3, Pedestrian/Bicycle Projects,” which delineates procedures and criteria for submission of requests for the allocation of “TDA Article 3” funding; and
WHEREAS, MTC Resolution No. 4108, Revised requires that requests for the allocation of TDA Article 3 funding be submitted as part of a single, countywide coordinated claim from each county in the San Francisco Bay region; and
WHEREAS, the CITY OF CUPERTINO desires to submit a request to MTC for the allocation of TDA Article 3 funds to support the projects described in Attachment B to this resolution, which are for the exclusive benefit and/or use of pedestrians and/or bicyclists;
NOW, THEREFORE, BE IT RESOLVED, that the CITY OF CUPERTINO declares it is eligible to request an allocation TDA Article 3 funds pursuant to Section 99234 of the Public Utilities Code, and furthermore, be it RESOLVED, that there is no pending or threatened litigation that might adversely affect the project or projects described in Attachment B to this resolution, or that might impair the ability of the CITY OF CUPERTINO to carry out the project; and furthermore, be it
Attachment A
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Resolution No. 23-XXX
RESOLVED, that the CITY OF CUPERTINO attests to the accuracy of and approves the statements in Attachment A to this resolution; and furthermore, be it
RESOLVED, that a certified copy of this resolution and its attachments, and any accompanying supporting materials shall be forwarded to the congestion management agency, countywide transportation planning agency, or county association of governments, as the case may be, of SANTA CLARA COUNTY for submission to MTC as part of the countywide coordinated TDA Article 3 claim.

The foregoing determination is made by the City Council in its independent judgment.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 6TH day of June, 2023, by the following vote:

Members of the City Council
AYES:

NOES:

ABSENT:

ABSTAIN
SIGNED:

Hung Wei, Mayor
City of Cupertino
Date
ATTEST:

Kirsten Squarcia, City Clerk Date
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November 2022 TDA Article 3 Model Resolution Page 2
Resolution No. 23‐XXXX
Attachment A
Re: Request to the Metropolitan Transportation Commission for the Allocation of Fiscal Year 2023/2024 Transportation Development Act Article 3 Pedestrian/Bicycle Project Funding Findings

1. That the CITY OF CUPERTINO is not legally impeded from submitting a request to the Metropolitan Transportation Commission for the allocation of Transportation Development Act (TDA) Article 3 funds, nor is the CITY OF CUPERTINO legally impeded from undertaking the project(s) described in “Attachment B” of this resolution.

2. That the CITY OF CUPERTINO has committed adequate staffing resources to complete the project(s) described in Attachment B.

3. A review of the project(s) described in Attachment B has resulted in the consideration of all pertinent matters, including those related to environmental and right‐of‐way permits and clearances, attendant to the successful completion of the project(s).

4. Issues attendant to securing environmental and right‐of‐way permits and clearances for the projects described in Attachment B have been reviewed and will be concluded in a manner and on a schedule that will not jeopardize the deadline for the use of the TDA funds being requested.

5. That the project(s) described in Attachment B comply with the requirements of the California Environmental Quality Act (CEQA, Public Resources Code Sections 21000 et seq.).

6. That as portrayed in the budgetary description(s) of the project(s) in Attachment B, the sources of funding other than TDA are assured and adequate for completion of the project(s).

7. That the project(s) described in Attachment B are for capital construction and/or final design and engineering or quick build project; and/or for the maintenance of a Class I bikeway which is closed to motorized traffic and/or Class IV separated bikeway; and/or for the purposes of restriping Class II bicycle lanes; and/or for the development or support of a bicycle safety education program; and/or for the development of a comprehensive bicycle and/or pedestrian facilities plan, and an allocation of TDA Article 3 funding for such a plan has not been received by the CITY OF CUPERTINO within the prior five fiscal years.

8. That the project(s) described in Attachment B which are bicycle projects have been included in a detailed bicycle circulation element included in an adopted general plan, or included in an adopted comprehensive bikeway plan (such as outlined in Section 2377 of the California Bikeways Act, Streets and Highways Code section 2370 et seq.) or responds to an immediate community need, such as a quick‐build project.

9. That any project described in Attachment B bicycle project meets the mandatory minimum safety design criteria published in the California Highway Design Manual or is in a National Association of City and Transportation Officials (NACTO) guidance or similar best practices document.

10. That the project(s) described in Attachment B will be completed in the allocated time (fiscal year of allocation plus two additional fiscal years).

11. That the CITY OF CUPERTINO agrees to maintain, or provide for the maintenance of, the project(s) and facilities described in Attachment B, for the benefit of and use by the public. 158
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November 2022 TDA Article 3 Model Resolution Page 3
The project will enhance the safety of existing Class II bikeway facilities on De Anza Boulevard between Bollinger Road and Homestead Road by narrowing existing travel lanes and installing a painted buffer zone to separate the Class II bike lanes from the vehicle lanes.

De Anza Blvd is a major north-south principle arterial across Cupertino, a designated truck route along most of its length, and has a posted speed limit of 35 mph. Currently, standard Class II bike lanes exist along both directions of De Anza Boulevard, and no buffer zone exists to increase the separation between bicycle and vehicle traffic.

Outside of the City’s jurisdiction south of Bollinger Road, buffered bike lanes exist on both sides of the roadway.

Construction of buffered bicycle lanes including removal of existing striping and installation of a painted buffer zone to increase separation between bicycles and vehicles.

Resolution No. 23-XXX
Attachment B
TDA Article 3 Project Application Form

1. Agency City of Cupertino

2. Primary Contact Marlon Aumentado

3. Mailing Address 10300 Torre Ave, Cupertino, CA 95014

4. Email Address [email protected] 5. Phone Number 408-777-3215

6. Secondary Contact (in
the event primary is
not available)
David Stillman

7. Mailing address (if
different) N/A☐

8. Email Address [email protected] 9. Phone Number 408-777-3249

10. Send allocation
instructions to (if
different from above):

11. Project Title De Anza Boulevard Buffered Bike Lanes

12. Amount requested $166,259 13. Fiscal Year of
Claim
2023/2024

14. Description of Overall Project:

15. Project Scope Proposed for Funding: (Project level environmental, preliminary planning, and ROW are ineligible uses of TDA funds.)
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November 2022 TDA Article 3 Model Resolution Page 4

16. Project Location: A map of the project location is attached or a link to a online map of the project location is provided below:

Project Relation to Regional Policies (for information only)

17. Is the project in an Equity Priority Community? Yes☐ No☒

18. Is this project in a Priority Development Area or a Transit-Oriented Community? Yes☒ No☐

19. Project Budget and Schedule
Project
Phase
TDA 3 Other Funds Total Cost Estimated Completion
(month/year)
CON 166,259 358,741 525,000 Dec 2023
Total Cost 166,259 358,741 525,000
Project Eligibility
A. Has the project been reviewed by the Bicycle and Pedestrian Advisory Committee? Yes☒ No☐ If “YES,” identify the date and provide a copy or link to the agenda. (April 19, 2023 ; see agenda) If "NO," provide an explanation).

B. Has the project been approved by the claimant's governing body? Yes☐ No☒ If "NO," provide expected date: June 6, 2023
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November 2022 TDA Article 3 Model Resolution Page 5
C. Has this project previously received TDA Article 3 funding? Yes☐ No☒ (If "YES," provide an explanation on a separate page)
D. For "bikeways," does the project meet Caltrans minimum safety design criteria Yes☒ No☐ pursuant to Chapter 1000 of the California Highway Design Manual? E. 1. Is the project categorically exempt from CEQA, pursuant to CCR Section 15301(c), Yes☒ No☐ Existing Facility?

2. If “NO” above, is the project is exempt from CEQA for another reason? Yes☐ No☐ Cite the basis for the exemption.

If the project is not exempt, please check “NO,” and provide environmental documentation, as appropriate.

N/A☐
F. Estimated Completion Date of project (month and year): December 2023 G. Have provisions been made by the claimant to maintain the project or facility, or has Yes☒ No☐ the claimant arranged for such maintenance by another agency? (If an agency other than the Claimant is to maintain the facility, please identify below and provide the agreement.

H. Is a Complete Streets Checklist required for this project ? Yes☐ No☒ If the amount requested is over $250,000 or if the total project phase or construction phase is over $250,000, a Complete Streets checklist is likely required. Please attach the Complete Streets checklist or record of review, as applicable. More information and the form may be found here: https://mtc.ca.gov/planning/transportation/complete-streets 161
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CITY OF CUPERTINO
Agenda Item
22-11833 Agenda Date: 6/6/2023
Agenda #: 8.

Subject: Consider Fiscal Year (FY) 2023/2024 projects proposed to receive funding from the Road Maintenance and Rehabilitation Account (RMRA) created by Senate Bill (SB) 1 Adopt Resolution No. 2023-065 (Attachment A) establishing a list of projects proposed to be funded by $1,496,963 of SB 1 revenues, estimated to be received in FY 2023/2024 CITY OF CUPERTINO Page 1 of 1 Printed on 5/31/2023
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CITY COUNCIL STAFF REPORT
Meeting: June 6, 2023
Subject
Consider Fiscal Year (FY) 2023/2024 projects proposed to receive funding from the Road Maintenance and Rehabilitation Account (RMRA) created by Senate Bill (SB) 1.

Recommended Action
Adopt Resolution No. 2023-XXX (Attachment A) establishing a list of projects proposed to be funded by $1,496,963 of SB 1 revenues, estimated to be received in FY 2023/2024.

Reasons for Recommendation
The Road Repair and Accountability Act, better known as SB 1, requires cities and counties to adopt a resolution establishing a list of projects to receive RMRA revenue each fiscal year. A copy of the certified resolution must be submitted to the State of California (State) by June 30, 2023. At minimum, the project list must include a description and general location of each proposed project, proposed schedule for the project’s completion, and the estimated life of proposed improvements.

The State distributes RMRA revenues to cities and counties monthly. To continue to receive these funds, each city and county must submit a FY 2023/2024 project list prior to the end of FY 2023. The City of Cupertino will receive an estimated $1,496,963 of RMRA revenues in FY 2023/2024. Staff recommends listing FY 2023/2024 projects as follows:

1. 2024 Pavement Maintenance Phase 1 Project

2. 2024 Pavement Maintenance Phase 2 Project

3. McClellan Road Separated Bike Corridor Phase 3 Intersection Improvements Though the primary purpose of the Road Repair and Accountability Act serves to address deferred maintenance on local streets and roads, projects that address road safety are also eligible to receive funds. Therefore, staff recommends including the McClellan Road Separated Bike Corridor Phase 3 Intersection Improvement Project to the FY 2023/2024 project list. The project improves bicycle and pedestrian safety at the intersection of McClellan Road and De Anza Boulevard by reconfiguring vehicular movements. The City has received alternative grant funding that will cover a large portion of projected costs. Including this project on the SB 1 project list emphasizes the 163
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project’s priority, creates a potential revenue source to fund the project in full, and ensures the grant monies can be fully utilized. Additionally, these funds would offset potential expenditures from the Capital Reserve fund.

This project list does not limit the City’s flexibility to fund projects based on local priorities, provided that funds are only expended on projects that are consistent with SB 1 eligibility requirements. Staff will document any variation between proposed projects and completed projects through the annual reporting processes established under SB 1.

Sustainability Impact
Maintaining and preserving the local streets and road system in good condition will reduce drive time and traffic congestion, improve bicycle safety, and make the pedestrian experience safer and more appealing. This leads to reduced vehicle emissions, helping the City achieve air quality and greenhouse gas emission reduction goals.

Fiscal Impact
By adopting this Resolution, the City will be eligible to receive an estimated $1,496,963 from SB 1 in FY 2023/2024 to help fund the FY 2023/2024 Pavement Management Program and eligible Capital Improvement Projects. Revenues will be deposited into account 270-85-821 440-437 (Intergovernmental SB1 Road Maintenance/Rehabilitation).

California Environmental Quality Act (CEQA)
The proposed Pavement Maintenance Projects are exempt from CEQA under California Code Regulations Section 15301(c) (maintenance of existing streets). _____________________________________
Prepared by: Jo Anne Johnson, Project Manager
Reviewed by: Chad Mosley, Interim Director of Public Works Reviewed by: Matt Morley, Assistant City Manager
Approved for Submission by: Pamela Wu, City Manager
Attachments:

A – Draft Resolution
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Attachment A
RESOLUTION NO. ________

A RESOLUTION OF THE CUPERTINO CITY COUNCIL
ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2023-24 FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
________________________________________________________________________ ____________________________________________________________________ WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and
WHEREAS, the City will receive an estimate $1,496,963 in RMRA funding in Fiscal Year 2023-24 from SB 1; and
WHEREAS, This is the sixth year in which the City is receiving SB1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and
WHEREAS, the City uses a Pavement Management System to develop the SB1 project lists to ensure revenues are being used on the most high priority and cost effective projects; and
WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate multiple streets/roads, improve safety at one signalized intersection, and complete additional projects of similar nature in the future; and 165
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Resolution No. __________________
WHEREAS, the 2020 California Statewide Local Streets and Roads Needs Assessment found the City streets and roads are in “good” condition and this revenue will help us maintain the overall quality of our road system; and WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with focus on basic maintenance and safety, and investing in complete streets infrastructure, will have significant benefits citywide.

NOW, THEREFORE, BE IT RESOLVED, ORDERED AND FOUND by the City Council of the City of Cupertino, State of California as follows:

1. The forgoing recitals are true and correct.

2. The following list of newly proposed projects will be funded in-part or solely with FY 2023-24 Road Maintenance and Rehabilitation Account revenues.

Project Title: 2024 Pavement Maintenance Phase 1
Project Description: Pavement Rehabilitation include asphalt overlay and patch repairs.

Project Location: City of Cupertino / Various Streets
Project Schedule: March 2024 – August 2024
Estimated Useful life: 15 Years
Project Title: 2024 Pavement Maintenance Phase 2
Project Description: Pavement Preservation including crack seal, slurry seal and fog seal.

Project location: City of Cupertino / Various Streets
Estimated Project Useful Life: 2 to 7 years.

Project Title: McClellan Road Separated Bike Corridor: Phase 3 Intersection Improvements
Project Description: Improves bicycle and pedestrian safety by realigning the intersection and reconfiguring the vehicle movements.

Project Location. McClellan Rd at De Anza Blvd
Estimated Project Useful Life: 30 years
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Resolution No. __________________
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 6
th day of June 2023, by the following vote:

Members of the City Council
AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED:
________
Hung Wei, Mayor
City of Cupertino
________________________
Date
ATTEST:
________
Kirsten Squarcia, City Clerk
________________________
Date
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CITY OF CUPERTINO
Agenda Item
23-12167 Agenda Date: 6/6/2023
Agenda #: 9.

Subject: Consider award of a construction contract for the 2023 Pavement Maintenance Phase 2 Project to Doolittle Construction, LLC. for asphalt slurry seal on identified roadways throughout the City of Cupertino

1. Award a construction contract for the 2023 Pavement Maintenance Phase 2 Project (Project No. 2023-102) in the amount of $579,479 to Doolittle Construction, LLC.;

2. Authorize the City Manager to execute the construction contract when all conditions have been met; and

3. Authorize the Director of Public Works to execute any necessary change orders up to a construction contingency amount of $57,947.90 (10%) for a total contract amount of $637,426.90 CITY OF CUPERTINO Page 1 of 1 Printed on 5/31/2023
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CITY COUNCIL STAFF REPORT
Meeting: June 6, 2023
Subject
Consider award of a construction contract for the 2023 Pavement Maintenance Phase 2 Project to Doolittle Construction, LLC. for asphalt slurry seal on identified roadways throughout the City of Cupertino.

Recommended Action

1. Award a construction contract for the 2023 Pavement Maintenance Phase 2 Project (Project No. 2023-102) in the amount of $579,479 to Doolittle Construction, LLC.;

2. Authorize the City Manager to execute the construction contract when all conditions have been met; and

3. Authorize the Director of Public Works to execute any necessary change orders up to a construction contingency amount of $57,947.90 (10%) for a total contract amount of $637,426.90.

Reasons for Recommendation
On April 20, the City of Cupertino advertised the 2023 Pavement Maintenance Phase 2 Project (Project No. 2023-102). This project consists of preventive maintenance treatments recommended by StreetSaver asset management system which include crack seal, fog seal and slurry seal on identified streets throughout the City (see Attachment B and Attachment C). On May 12, the City received the following five responsive bids:

Bidder Bid Amount
Engineers Estimate $1,100,000
Doolittle Construction, LLC $579,579.00
Dryco Construction Inc. $713,671.52
Graham Contractors, Inc. $751,390.80
Pavement Coatings Col $781,969.05
VSS International, Inc. $867,530.90
The Department of Public Works reviewed the Doolittle Construction LLC.’s bid documents for completeness and confirmed the contractor’s experience and qualifications and determined the bid to be the lowest responsive and responsible bid 169
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per the Instruction to Bidders and Cupertino Municipal Code. Therefore, staff recommends awarding a construction contract to Doolittle Construction LLC. for the contract amount of $579,479.00 and a 10% construction contingency in the amount of $57,947.90 for a total contract amount not-to-exceed of $637,426.90. Construction contingency allows for unforeseen conditions and are a typical contracting best practice.

A Draft Construction Contract is included as Attachment A while the full project specifications can be found at https://apps.cupertino.org/bidmanagement/index.aspx. It is recommended that the Council authorize the award of the construction contract to the low bidder, Doolittle Construction, LLC.

Sustainability Impact
Maintaining and preserving the local streets and roadway system will reduce drive time and traffic congestion, improve bicycle safety, and create a safer and more appealing pedestrian experience. This leads to reduced vehicle emissions, helping the City achieve air quality and greenhouse gas emission reduction goals.

Fiscal Impact
Award of this contract will result in a fiscal impact up to $637,426.90. Sufficient funds are budgeted 270-85-821 900 971 (Capital Outlay Senate Bill 1 Roads), which is funded by external Road Maintenance and Rehabilitation Amount revenues received in Fiscal Year 22-23. No additional appropriations are needed.

California Environmental Quality Act (CEQA)
This project is exempt under CEQA Guidelines Sections 15301(c) (repair and maintenance of existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities).
_____________________________________
Prepared by: Jo Anne Johnson, Project Manager
Reviewed by: Chad Mosley, Interim Director of Public Works Reviewed by: Matt Morley, Assistant City Manager
Approved for Submission by: Pamela Wu, City Manager
Attachments:

A – Draft Contract
B – Street List
C – Location Map
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2023 Pavement Maintenance Phase 2 2021 Form CONTRACT
Project # 2023-102 Page 1
Contract
This public works contract (“Contract”) is entered into by and between City of Cupertino (“City”) and Doolittle Construction, LLC (“Contractor”), for work on the 2023 Pavement Maintenance Phase 2 Project (“Project”).

The parties agree as follows:

1. Award of Contract. In response to the Notice Inviting Bids, Contractor has submitted a Bid Proposal to perform the Work to construct the Project. On _____________, 20___, City authorized award of this Contract to Contractor for the amount set forth in Section 4, below.

2. Contract Documents. The Contract Documents incorporated into this Contract include and are comprised of all of the documents listed below. The definitions provided in Article 1 of the General Conditions apply to all of the Contract Documents, including this Contract.

2.1 Notice Inviting Bids;

2.2 Instructions to Bidders;

2.3 Addenda, if any;

2.4 Bid Proposal and attachments thereto;

2.5 Contract;

2.6 Payment and Performance Bonds;

2.7 General Conditions;

2.8 Special Conditions;

2.9 Project Plans and Specifications;

2.10 Change Orders, if any;

2.11 Notice of Potential Award;

2.12 Notice to Proceed; and

2.13 The following: Caltrans Standard Details, Location Map

3. Contractor’s Obligations. Contractor will perform all of the Work required for the Project, as specified in the Contract Documents. Contractor must provide, furnish, and supply all things necessary and incidental for the timely performance and completion of the Work, including all necessary labor, materials, supplies, tools, equipment, transportation, onsite facilities, and utilities, unless otherwise specified in the Contract Documents. Contractor must use its best efforts to diligently prosecute and complete the Work in a professional and expeditious manner and to meet or exceed the performance standards required by the Contract Documents. Contractor agrees to carry out its work in compliance with any applicable local, State or Federal order regarding COVID-19.

4. Payment. As full and complete compensation for Contractor’s timely performance and completion of the Work in strict accordance with the terms and conditions of the Contract Documents, City will pay Contractor $579,579.00 (“Contract Price”) for all of Contractor’s direct and indirect costs to perform the Work, including all labor, materials, supplies, equipment, taxes, insurance, bonds and all overhead costs, in accordance with the payment provisions in the General Conditions.

5. Time for Completion. Contractor will fully complete the Work for the Project, meeting all requirements for Final Completion, within 90 calendar days from the commencement date given in the Notice to Proceed (“Contract Time”). By signing below, Contractor expressly waives any claim for delayed early completion.

6. Liquidated Damages. If Contractor fails to complete the Work within the Contract Time, City will assess liquidated damages in the amount of $1,000 per day for each day of Attachment A
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2023 Pavement Maintenance Phase 2 2021 Form CONTRACT
Project # 2023-102 Page 2
unexcused delay in achieving Final Completion, and such liquidated damages may be deducted from City’s payments due or to become due to Contractor under this Contract.

7. Labor Code Compliance.

7.1 General. This Contract is subject to all applicable requirements of Chapter 1 of Part 7 of Division 2 of the Labor Code, including requirements pertaining to wages, working hours and workers’ compensation insurance, as further specified in Article 9 of the General Conditions.

7.2 Prevailing Wages. This Project is subject to the prevailing wage requirements applicable to the locality in which the Work is to be performed for each craft, classification or type of worker needed to perform the Work, including employer payments for health and welfare, pension, vacation, apprenticeship and similar purposes. Copies of these prevailing rates are available online at http://www.dir.ca.gov/DLSR.

7.3 DIR Registration. City may not enter into the Contract with a bidder without proof that the bidder and its Subcontractors are registered with the California Department of Industrial Relations to perform public work pursuant to Labor Code § 1725.5, subject to limited legal exceptions.

8. Workers’ Compensation Certification. Pursuant to Labor Code § 1861, by signing this Contract, Contractor certifies as follows: “I am aware of the provisions of Labor Code § 3700 which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the Work on this Contract.”

9. Conflicts of Interest. Contractor, its employees, Subcontractors and agents, may not have, maintain or acquire a conflict of interest in relation to this Contract in violation of any City ordinance or requirement, or in violation of any California law, including Government Code § 1090 et seq., or the Political Reform Act, as set forth in Government Code § 81000 et seq. and its accompanying regulations. Any violation of this Section constitutes a material breach of the Contract.

10. Independent Contractor. Contractor is an independent contractor under this Contract and will have control of the Work and the means and methods by which it is performed. Contractor and its Subcontractors are not employees of City and are not entitled to participate in any health, retirement, or any other employee benefits from City.

11. Notice. Any notice, billing, or payment required by or pursuant to the Contract Documents must be made in writing, signed, dated and sent to the other party by personal delivery, U.S. Mail, a reliable overnight delivery service, or by email as a PDF file. Notice is deemed effective upon delivery, except that service by U.S. Mail is deemed effective on the second working day after deposit for delivery. Notice for each party must be given as follows:

City:

Public Works Department
10300 Torre Ave
Cupertino, CA 95014
408-777-3245
Attn: Jo Anne Johnson
[email protected]
Attachment A
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2023 Pavement Maintenance Phase 2 2021 Form CONTRACT
Project # 2023-102 Page 3
Copy to: PW Invoices
[email protected]
Contractor:

Name:_____________________________________
Address:___________________________________
City/State/Zip:_______________________________
Phone:_____________________________________
Attn:_______________________________________
Email:______________________________________
Copy to:____________________________________

12. General Provisions.

12.1 Assignment and Successors. Contractor may not assign its rights or obligations under this Contract, in part or in whole, without City’s written consent. This Contract is binding on Contractor’s and City’s lawful heirs, successors and permitted assigns.

12.2 Third Party Beneficiaries. There are no intended third party beneficiaries to this Contract.

12.3 Governing Law and Venue. This Contract will be governed by California law and venue will be in the Santa Clara County Superior Court, and no other place.

Contractor waives any right it may have pursuant to Code of Civil Procedure § 394, to file a motion to transfer any action arising from or relating to this Contract to a venue outside of Santa Clara County, California.

12.4 Amendment. No amendment or modification of this Contract will be binding unless it is in a writing duly authorized and signed by the parties to this Contract.

12.5 Integration. This Contract and the Contract Documents incorporated herein, including authorized amendments or Change Orders thereto, constitute the final, complete, and exclusive terms of the agreement between City and Contractor.

12.6 Severability. If any provision of the Contract Documents is determined to be illegal, invalid, or unenforceable, in whole or in part, the remaining provisions of the Contract Documents will remain in full force and effect.

12.7 Iran Contracting Act. If the Contract Price exceeds $1,000,000, Contractor certifies, by signing below, that it is not identified on a list created under the Iran Contracting Act, Public Contract Code § 2200 et seq. (the “Act”), as a person engaging in investment activities in Iran, as defined in the Act, or is otherwise expressly exempt under the Act.

12.8 Authorization. Each individual signing below warrants that he or she is authorized to do so by the party that he or she represents, and that this Contract is legally binding on that party. If Contractor is a corporation, signatures from two officers of the corporation are required pursuant to California Corporation Code § 313.

Attachment A
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2023 Pavement Maintenance Phase 2 2021 Form CONTRACT
Project # 2023-102 Page 4
The parties agree to this Contract as witnessed by the signatures below:

CITY: Approved as to form:
s/_______________________________ s/__________________________________ ________________________________ ___________________________________ Name, Title Name, Title
Date: ___________________________ Date: ______________________________ Attest:
s/_______________________________
_________________________________
Name, Title
Date: ___________________________
CONTRACTOR: ___________________________________________________ Business Name
s/_______________________________ Seal:
_________________________________
Name, Title
Date: ____________________________
Second Signature (See Section 12.8):
s/_______________________________
_________________________________
Name, Title
Date: ____________________________
___________________________________________________
Contractor’s California License Number(s) and Expiration Date(s)

END OF CONTRACT
Attachment A
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2023 Pavement Maintenance Phase 2
Street List
Attachment B
STREET NA+C6+A1:D75 FROM TO TREATMENT
Acadia Ct Beardon Dr E End Fog Seal
Ainsworth Dr Hartment S End Slurry Seal
Alderbrook Ln Bollinger Rd N End Slurry Seal
Alicia Ct Alcalde Rd N End Fog Seal
Anne Ln S Tantau Ave W End Slurry Seal
Aster Ln Bollinger Rd End Slurry Seal
Atherwood Dr Alderbrook Dr Miller Ave Slurry Seal
BETLIN AVE Clifford Dr John Dr Slurry Seal
BLACK OAK WY Sycamore End Fog Seal
Blackwood Candlewood ood Slurry Seal
Blazingwood Ave Alderbrook Ln Myrtlewood Ave Slurry Seal BLOSSOM LN Felton End Fog Seal
Bollinger Rd De Foe W End Slurry Seal
Camino Vista Dr Stevens Creek Dubon Ave Slurry Seal
Candlewood Ct Candlewood Dr W End Slurry Seal
Candlewood Dr Atherwood Myrtlewood Slurry Seal
Canyon Oak Way Cristo Rey Dr End Slurry Seal
Cordova Rd Santa Lucia End Fog Seal
Cottonwood Dr Atherwood Ave Myrtlewood Ave Slurry Seal
Creston Dr City Limit S End Fog Seal
Degas Ct Medina S End Fog Seal
Drake Ct Drake Dr S End Fog Seal
Drake Dr Portal Ave Auburn Fog Seal
Dubon Ave Stevens Creek Blvd Prado Vista Dr Slurry Seal Dunbar Dr Stelling E End Fog Seal
E Estates Dr Estates Dr John Fog Seal
El Prado Way Voss Medina Fog Seal
Elendra Dr Glencoe E End Fog Seal
Fargo Dr Glencoe E End Fog Seal
Felton Way Kirwin McClellan Fog Seal
Flintshire Palos Verdes Clarkston Slurry Seal
Gascoigne Wunderlich Barnhart Slurry Seal
Glecoe Dr Elenda Hanford Fog Seal
Glecoe Dr Greenleaf Fargo Fog Seal
Grapnel Pl Amulet N End Fog Seal
Greenwood Ct Miller Ave W End Fog Seal
Greenwood Dr Miller Ave E End Fog Seal
Hanford Dr Glencoe E End Fog Seal
John Way Kirwin McCelllan Fog Seal
Jollyman Ln Stelling Rd E End Fog Seal
Juniper Ct Oak Valley Rd End Fog Seal
Krista Ct Voss S End Fog Seal
Krzich Bubb Rd E End Slurry Seal
La Mar Ct E Estates E End Fog Seal
La Mar Dr E Estates S Blaney Ave Fog Seal
Lansdale La Mar Oakville Fog Seal
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2023 Pavement Maintenance Phase 2
Street List
Attachment B
STREET NA+C6+A1:D75 FROM TO TREATMENT
Leola Ct Greenwood S End Fog Seal
Linsay Ave La Mar Oakville Fog Seal
Lockwood Dr Stevens Creek Blvd Voss Ave Slurry Seal
Lonna Ln McClellan Kirwin Fog Seal
Madera Dr Phar Lap N End Fog Seal
Malvern Ct La Mar S End Fog Seal
Mann Dr Adriana Phar Lap Fog Seal
Madina Ln El Prado Lockwood Fog Seal
Mercedes Dr Cordova Rd End Fog Seal
Moltzen Dr Ruppel Candlelight Fog Seal
Myrtlewood Ave Blazingwood ave Candlewood Dr Slurry Seal Newcastle Aster Rose Garden Slurry Seal
Newsom Ave Carver Johnson Ave Slurry Seal
Oaville Ave La Mar Glenview Fog Seal
Olive Ave Imperial Ave W End Slurry Seal
Orline Ct Jollyman N End Fog Seal
Palos Verdes Castleton Terrace Slurry Seal
Paradise Dr Terry Cheryl Fog Seal
Pebble Pl Amulet N End Fog Seal
Poppy Way Foothill W End Fog Seal
Portal Ave Stevens Creek N End Fog Seal
Prado Vista Ave Stevens Creek Dubon Ave Slurry Seal
Rodrigues Ave De Anza Western Fog Seal
Ruppel Kingsburry S End Fog Seal
Sage Ct Lilac Way End Slurry Seal
Salem Ave Foothill Engilsh Oak Fog Seal
Standing Oak Ct Voss E End Fog Seal
Stonydale Dr Creston S End Fog Seal
Sutherland Castleton Collingsworth Slurry Seal
Sycamore Dr Oak Valley Rd N End Fog Seal
Tilson Ave Calvert Dr Johnson Ave Slurry Seal
Via Camino Ct Ainsworth Dr E End Slurry Seal
Vicksburg Dr Miller Ave E Estates Dr Slurry Seal
Vista Knoll Foothill Blvd Ainsworth Dr Slurry Seal
Voss Ave Krista Ct W End Fog Seal
Walnut Cir Foothill Blvd Foothill Blvd Slurry Seal
Waterford Stelling Rd Primrose Slurry Seal
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ATTACHMENT C
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CITY OF CUPERTINO
Agenda Item
23-12336 Agenda Date: 6/6/2023
Agenda #: 10.

Subject: Receive the FY 2021-22 Annual Comprehensive Financial Report (ACFR) and related supplemental reports
Receive the FY 2021-22 Annual Comprehensive Financial Report (ACFR) and related supplemental reports
CITY OF CUPERTINO Page 1 of 1 Printed on 5/31/2023
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CITY COUNCIL STAFF REPORT
Meeting: June 6, 2023
Subject
Receive the FY 2021-22 Annual Comprehensive Financial Report (ACFR) and related supplemental reports.

Recommended Action
Receive the FY 2021-22 Annual Comprehensive Financial Report (ACFR) and related supplemental reports.

Discussion
The City of Cupertino’s external auditor, Crowe LLP, audited the City’s accompanying financial statements as of and for the year ended June 30, 2022. During the audit, procedures were performed to obtain audit evidence regarding amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design appropriate audit procedures. Audit procedures are not designed to express an opinion on the effectiveness of the entity’s internal control.

Crowe LLP expressed an unmodified (or clean) opinion, stating “the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund, the Transportation Special Revenue Fund, and the Housing Development Special Revenue Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America” (see FY 2021-22 ACFR, page 1).

Crowe LLP also issued an Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards (GAGAS Report). The purpose of this report is solely to describe the scope of the auditor’s testing 179
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of internal control over financial reporting and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance.

The report disclosed no instances of noncompliance or other matters required to be reported under Government Auditing Standard.

The City of Cupertino engaged Crowe LLP to perform an Agreed-Upon-Procedures (AUP) on the City’s Appropriations Limit Worksheet related to the City’s compliance with Section 1.5 of Article XIIIB of the California Constitution during the period ending June 30, 2022. City Council adopted Resolution 21-054, establishing an Appropriations Limit of $114,666,491 for FY 2021-22; no exceptions were noted.

The City of Cupertino engaged Crowe LLP to perform an AUP on the 2019 Clean Water and Storm Protection Fee for the City of Cupertino; no exceptions were noted.

The City of Cupertino engaged Crowe LLP to perform an AUP on the City’s investment policy dated May 2021; exception was noted relating to nominal variances in the March 2022 investment report between the investment and custodial reports. The City's investment manager, Chandler Asset Management, and its custodian, Wells Fargo, have reported different values for the same bonds. The differences are due to a combination of factors, including rounding, timing, and the use of different bond pricing data providers.

While the values are similar, the difference can occur because each data provider may employ different methodologies and sources for pricing the bonds.

Lastly, the City of Cupertino engaged Crowe LLP to perform a Single Audit on the City’s federally funded program, COVID-19 – American Rescue Plan Act of 2021, in accordance with GAAS, Government Auditing Standards, and requirements under Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Crowe LLP expressed an unmodified opinion, noting a reporting compliance deficiency; management has implemented controls mitigating the deficiency.

Sustainability Impact
No sustainability impact.

Fiscal Impact
No fiscal impact.
_____________________________________
Prepared by: Jonathan Orozco, Finance Manager
Reviewed by: Kristina Alfaro, Director of Administrative Services Approved for Submission by: Pamela Wu, City Manager
Attachments:

A – FY 2021-22 ACFR
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B – FY 2021-22 Management Letter
C – FY 2021-22 SAS 114
D – FY 2021-22 Single Audit
E – FY 2021-22 GANN AUP Report
F – FY 2021-22 Investment AUP Report
G – FY 2021-22 Storm Drain AUP Report
H - Responses to ACFR Questions
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1. To the Honorable Mayor and City Council
City of Cupertino, California
In planning and performing our audit of the financial statements of City of Cupertino, California (“City”) as of and for the year ended June 30, 2022, in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, we considered the City’s internal control over financial reporting (“internal control”) as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. However, as discussed below, we identified certain matters that we wish to communicate to you. Matters communicated in this letter are classified as follows:
x Deficiency – A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis.
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2. The purpose of this letter is solely to describe the scope of our testing of internal control over financial reporting and compliance, and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. This letter is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Accordingly, this letter is not suitable for any other purpose.

Crowe LLP
Costa Mesa, California
March 31, 2023
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1. To the Honorable Mayor and City Council
City of Cupertino, California
Professional standards require that we communicate certain matters to keep you adequately informed about matters related to the financial statement audit that are, in our professional judgment, significant and relevant to your responsibilities in overseeing the financial reporting process. We communicate such matters in this report.

AUDITOR’S RESPONSIBILITY UNDER AUDITING STANDARDS GENERALLY ACCEPTED IN THE

UNITED STATES OF AMERICA
Our responsibility is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in conformity with accounting principles generally accepted in the United States of America. The audit of the financial statements does not relieve you of your responsibilities and does not relieve management of their responsibilities. Refer to our engagement letter with the City of Cupertino, California (City) for further information on the responsibilities of management and of Crowe LLP.

AUDITOR’S RESPONSIBILITY UNDER GOVERNMENT AUDITING STANDARDS As part of obtaining reasonable assurance about whether the City’s financial statements are free of material misstatement, we performed tests of the City’s compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts or disclosures. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion.

The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

COMMUNICATIONS REGARDING OUR INDEPENDENCE FROM THE CITY Auditing standards generally accepted in the United States of America require independence for all audits, and we confirm that we are independent auditors with respect to the City under the independence requirements established by the American Institute of Certified Public Accountants.

Additionally, we wish to communicate that we have the following relationships with the City that do not impair our independence but which, in our professional judgment, may reasonably be thought to bear on our independence and that we gave significant consideration to in reaching the conclusion that our independence has not been impaired.
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7. We are pleased to serve the City as its independent auditors and look forward to our continued relationship.

We provide the above information to assist you in performing your oversight responsibilities and would be pleased to discuss this letter or any matters further, should you desire. This letter is intended solely for the information and use of the Mayor and City Council and, if appropriate, management, and is not intended to be and should not be used by anyone other than these specified parties.

Crowe LLP
Costa Mesa, California
March 31, 2023
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2. Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Crowe LLP
Costa Mesa, California
March 31, 2023
212
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5. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the internal control over compliance findings identified in our audit described in the accompanying schedule of findings and questioned costs. The City’s response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

The City is responsible for preparing a corrective action plan to address each audit finding included in our auditor's report. The City's corrective action plan was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on it.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated March 31, 2023, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

Crowe LLP
Costa Mesa, California
March 31, 2023
215
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INDEPENDENT ACCOUNTANT’S REPORT ON APPLYING AGREED-UPON PROCEDURES To the Honorable Mayor and City Council
City of Cupertino, California
10300 Torre Avenue
Cupertino, California 95014-3202
Ladies and Gentlemen:

We have performed the procedures enumerated in Appendix A on the Appropriations Limit Worksheet (“Worksheet”) of the City of Cupertino, California (the “City”), related to the City’s compliance with Section

1.5 of Article XIIIB of the California Constitution during the period ending June 30, 2022. The City’s management is responsible for the Worksheet.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting users in understanding the Worksheet. We make no representation regarding the appropriateness of the procedures either for the purpose for which this report has been requested or for any other purpose. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. An agreed-upon procedures engagement involves performing specific procedures that the engaging party has agreed to and acknowledged to be appropriate for the intended purpose of the engagement and reporting on findings based on the procedures performed.

The procedures and the associated findings are contained in Appendix A.

We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the Worksheet. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the Honorable Mayor and the City Council and is not intended to be and should not be used by anyone other than these specified parties.

Crowe LLP
Costa Mesa, California
March 31, 2023
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INDEPENDENT ACCOUNTANT’S REPORT ON APPLYING AGREED-UPON PROCEDURES To the Honorable Mayor and City Council
City of Cupertino, California
10300 Torre Avenue
Cupertino, California 95014-3202
Ladies and Gentlemen:

We have performed the procedures enumerated in Appendix A on the Investment Policy of the City of Cupertino, California (the “City”). The City’s management is responsible for the Investment Policy.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting users in understanding the Investment Policy. We make no representation regarding the appropriateness of the procedures either for the purpose for which this report has been requested or for any other purpose. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. An agreed-upon procedures engagement involves performing specific procedures that the engaging party has agreed to and acknowledged to be appropriate for the intended purpose of the engagement and reporting on findings based on the procedures performed.

The procedures and the associated findings are contained in Appendix A.

We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the Investment Policy.

Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the City and is not intended to be, and should not be, used by anyone other than the specified party.

Crowe LLP
Costa Mesa, California
March 31, 2023
225
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REPORT OF INDEPENDENT ACCOUNTANTS ON APPLYING AGREED-UPON

PROCEDURES
To the Honorable Mayor and City Council
City of Cupertino, California
10300 Torre Avenue
Cupertino, California 95014-3202
Ladies and Gentlemen:

We have performed the procedures enumerated in Appendix A on the 2019 Clean Water and Storm Protection Fee of the City of Cupertino, California (the “City”). The City’s management is responsible for the 2019 Clean Water and Storm Protection Fee.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting users in understanding the 2019 Clean Water and Storm Protection Fee. We make no representation regarding the appropriateness of the procedures either for the purpose for which this report has been requested or for any other purpose. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. An agreed-upon procedures engagement involves performing specific procedures that the engaging party has agreed to and acknowledged to be appropriate for the intended purpose of the engagement and reporting on findings based on the procedures performed.

The procedures and the associated findings are contained in Appendix A.

We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the 219 Clean Water and Storm Protection Fee. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the City and is not intended to be and should not be used by anyone other than these specified parties.

Crowe LLP
Costa Mesa, California
March 31, 2023
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CITY COUNCIL STAFF REPORT
Meeting: June 6, 2023
Subject
Responses to Annual Comprehensive Financial Report (ACFR) and related supplemental reports.

Recommended Action
Responses to Annual Comprehensive Financial Report (ACFR) and related supplemental reports.

Background
Staff’s responses to May 16th, 2023, Written Communications and Comments and Questions received from councilmember are shown in italics.

Written Communications
Question 1: “Why do the Expenses for “Law Enforcement” in the ACFR for 2021 and 2022 not match the Proposed Budget Attachment J-Law Enforcement (5-17-2023) expenditures for the same years?” (Page 28 of ACFR vs. Page 8 of the Proposed Budget) (Councilmembers Wei and Chao)
Staff Response: The ACFR is a complex document that reports on the City’s annual results, which are presented using two different statements, Government-Wide and Fund Financial Statements. The Government-Wide Statements (pages 24-26) are reported using the full accrual basis of accounting, factoring for capital assets, long-term liabilities, and consolidating Internal Revenue Funds and Fiduciary Funds, among others. The Fund Financial Statements (pages 27-38) are separated into three fund types, Governmental, Propriety, and Fiduciary, where both full accrual and modified accrual basis of accounting are used. The purpose of the two financial statements are different and must be considered when reviewing the ACFR.

The Law Enforcement program results in the budget to actual comparisons (pages 32-34) are consistent with the amounts reported in the FY 2023-24 Proposed Budget. 231
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Oral Communications
Comment/Concern 1: A resident expressed concerns with the third identified IT control deficiency, the creation of a financial systems profile without authorizing supporting documentation or the source of its creation.

Staff Response 1: Managements response to this finding can be found on page 1 of the ACFR’s Management Letter.

Comment/Concern 2: A resident expressed concerns with the mention of stores that closed years ago but continue to be revenue drivers.

Staff Response 2: The ACFR is a look-back document focusing on a specific fiscal year. The actual report is completed and published anywhere from 6 to 9 months after fiscal end close. In addition, although stores may close, their reporting to the City may continue for up to six months to collect taxes due to sales tax revenue being reported in arrears.

Comment/Concern 3: A resident expressed concerns about the Council’s appointment of the Treasurer.

Staff Response 3: Per (CMC 2.48.020(A)(3).), The Director of Administrative Services also shall be appointed Treasurer and also shall act as ex officio Assessor and shall assess and collect all City taxes save and except for those collected by State and County officers for the City.

Comment/Concern 4: A resident expressed concerns about the existence of the Marina Projects on page vi of the ACFR’s Transmittal Letter.

Staff Response 4: The ACFR is a look-back document focusing on a specific fiscal year. The actual report is completed and published anywhere from 6 to 9 months after fiscal end close. This ACFR is looking at the financials for the City from July 1, 2021-June 30, 2022. The Marina project changes occurred in December 2022.
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CITY OF CUPERTINO
Agenda Item
23-11971 Agenda Date: 6/6/2023
Agenda #: 11.

Subject: Consider approval of the renewal (with no increase) of the 1992 Storm Drain Fee and renewal of the 2019 Clean Water and Storm Protection Fee with a 3% increase Adopt and approve:

1. Resolution No. 23-066 (Attachment A) approving the renewal and collection of the 1992 Storm Drain Fee with no increase in rates for Fiscal Year (FY) 2023-24;

2. Resolution No. 23-067 (Attachment B) approving the renewal and collection of the 2019 Clean Water and Storm Protection Fee with a 3% increase in rates for FY 2023-24;

3. Adjust the annual budget allocation for the cost-share program from $14,000 to $2,000 to better fit the realistic need for new applicants receiving 20% refunds in a single year;

4. Adjust the re-certification period to be four years for all approved participants with an attestation protocol to affirm continued cost-share eligibility; and

5. Discontinue the $12,500 per year previous pavement rebate program for lack of participation and use the funds for support of required activities
CITY OF CUPERTINO Page 1 of 1 Printed on 5/31/2023
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CITY COUNCIL STAFF REPORT
Meeting: June 6, 2023
Subject
Consider approval of the renewal (with no increase) of the 1992 Storm Drain Fee and renewal of the 2019 Clean Water and Storm Protection Fee with a 3% increase.

Recommended Action
Adopt and approve:

1. Resolution No. 23-XXX (Attachment A) approving the renewal and collection of the 1992 Storm Drain Fee with no increase in rates for Fiscal Year (FY) 2023-24;

2. Resolution No. 23-XXX (Attachment B) approving the renewal and collection of the 2019 Clean Water and Storm Protection Fee with a 3% increase in rates for FY 2023-24;

3. Adjust the annual budget allocation for the cost-share program from $14,000 to $2,000 to better fit the realistic need for new applicants receiving 20% refunds in a single year;

4. Adjust the re-certification period to be four years for all approved participants with an attestation protocol to affirm continued cost-share eligibility; and

5. Discontinue the $12,500 per year pervious pavement rebate program for lack of participation and use the funds for support of required activities.

Reasons for Recommendation
City of Cupertino’s Stormwater Pollution Prevention Program The City’s Stormwater Pollution Prevention Program (also known as the Nonpoint Source Program) is mandated by State of California (State) and United States (US) Environmental Protection Agency (EPA) regulations implementing the Federal Clean Water Act. Regulations by the EPA and the State require cities to take specific actions to eliminate or control pollutants in water that belongs to the State. These regulations are implemented locally by the California Regional Water Quality Control Board, San 234
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Francisco Bay Region (Water Board) through the Municipal Regional Stormwater National Pollutant Discharge Elimination System (NPDES) Permit, commonly referred to as the Municipal Regional Permit (MRP.) The MRP was issued to 76 agencies whose stormwater systems and creeks drain to San Francisco Bay. To assist with compliance, the agencies under this MRP have assembled into more localized groups. The City and 14 other co-permittees in Santa Clara County (County) are members of the Santa Clara Valley Urban Runoff Pollution Prevention Program (SCVURPPP) which works collaboratively to maintain compliance with State and Federal requirements. The SCVURPPP provides technical and administrative guidance to permittees, interfaces with the Water Board on permittees’ behalf, and coordinates compliance activities that benefit all, such as far-reaching outreach and education activities, water quality assessments, and watershed monitoring.

Information about the City’s stormwater pollution prevention program is available at www.cupertino.org/cleanwater, which includes links to a variety of resources and guidance including an interactive creek map, a link to the City’s most recent annual report submitted as required to the Water Board, information for developers and contractors, and education on less toxic pest control.

The City complies with MRP requirements through a variety of activities, including:
 Mandatory inspections and data tracking to prevent illegal connections and discharges to the City’s storm drain system
 Updating the City Municipal as necessary to ensure enforcement capability with new iterations of the MRP, such as the recent amendments to CMC 9.18.  Review of planned development and construction activities  Development of a Green Stormwater Infrastructure Plan  Tracking pesticide use
 Enforcing screening requirements for Polychlorinated Biphenyls (PCBs,) (a class of organic compound that does not degrade easily) during building demolition  Litter reduction measures
 Installation of screens and trash capture devices in drain inlets  Cleaning and maintenance of drain inlets and installed devices  Maintenance and repair of the storm drain system
 Street sweeping
 Local outreach and education
 Support of third-grade Creek Education Program provided at McClellan Ranch Preserve
 Participation in SCVURPPP-led work groups and committees Two property-based fees have been established to help cover the costs of compliance:
1992 Storm Drainage Service Charge Fee (Storm Drain Fee) In 1992, the City established the Storm Drain Fee to help cover the cost of complying with stormwater pollution prevention requirements that were then in effect. The Storm 235
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Drain Fee is applied to each property in the City, with exceptions for those owned by certain entities, such as properties owned by the government, utility agencies, and schools, which were exempt under the laws at the time the fee was approved. The fee is collected by the Santa Clara County Tax Collector on behalf of the City and is subject to annual review by the City Council. The Fee consisted of three rates, which were based on type of land use of each parcel as follows: 1) $12 for residential parcels; 2) $144/acre for apartments, commercial and industrial parcels; and 3) $36/acre for unimproved and recreational parcels.

The Fee has no mechanism to enable an annual increase. As such, the revenue collected from the Storm Drain Fee has not increased since it was established and has remained at approximately $370,000 per year. However, regulatory requirements, stormwater system maintenance expenses, wages, and permit fees have not remained static, and the cost of compliance has risen over the years. When the first MRP was approved in 2009, and again when the second permit was adopted in 2015, permit requirements increased significantly. The third reissuance of the Municipal Regional Permit (MRP 3.0) was adopted on May 11, 2022, with an effective date of July 1, 2022, further increasing requirements. Certain requirements within MRP 3.0 become effective July 1, 2023, and the City is making edits to the City Municipal Code (CMC) to reflect those changes.

While existing language in the CMC already states that “All requirements in the Municipal Regional Permit are required and enforceable by the City,” staff performed additional code cleanup to clarify and streamline CMC section 9.15. Those edits were approved by first reading on May 16 with a second reading scheduled for June 6, to be effective July 6, 2023. While revenues from the Storm Drain Fee at one point covered expenses related to compliance with the MRP, by 2019 the cost of compliance exceeded the fee and was creating a significant draw upon the City's General Fund of over $600,000 per year. Renewal of the Storm Drain Fee is recommended in FY 2023-24. 2019 Clean Water and Storm Protection Fee (Clean Water Fee) The Clean Water Fee, a property-related fee subject to Proposition 218, was approved by Cupertino parcel owners in 2019 and was authorized by Council on July 17, 2019, for inclusion on the 2019-2020 Property Tax bills. The Clean Water Fee was calculated starting from the average acreage of a median single-family residential parcel and a benchmark amount of impervious surface. Details of the rate structure analysis can be found in the Fee Report attached to the Clean Water and Storm Protection Fee Ordinance (Attachment C.) Proposition 218 requires that all property owners pay in proportion to the benefit received; therefore, exceptions provided under the 1992 Storm Drain Fee (which predates the adoption of Proposition 218) for parcels owned by certain public entities, such as government, utilities, and schools, are not permissible. The Clean Water Fee may be increased annually by Council to meet expenses of the Nonpoint Source Program. The potential increase is tied to the annual change in Consumer Price Index (CPI) as of December each year, up to a maximum of 3% in any single year. 236
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The CPI change for the period December 2021 to December 2022 was 4.88%. Pursuant to the Clean Water and Storm Protection Ordinance, fees can only be increased if actual program expenditures increase, and the Clean Water and Storm Protection Fund 230 balance is insufficient to cover expenditures more than revenues. Expenses associated with the Nonpoint Source Program were projected to exceed revenue for FY 2022-23; however, there is sufficient balance in Fund 230 to cover the difference. Balance in Fund 230 accrued due to a transitional subsidy from the General Fund in 2019, delayed staffing allocation adjustments, and lower expenditures due to the COVID-19 pandemic.

As a result of that fund balance, staff has not asked for an increase to the Clean Water Fee since its adoption in 2019. However, that balance will be exhausted during FY 23-24.

For that reason, staff recommends an increase in the Clean Water and Storm Protection fee for 2023-24. An increase by CPI with a 3% cap as allowed by the ordinance will increase the overall revenue to the City by approximately $33,000. This is an increase of $1.33/year for the most common (medium) sized single-family parcel. Current rates and the proposed increased rates are shown in the tables below.

Current Annual Rates:

Annual Rates With 3% Increase:
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Discussion
2019 Clean Water and Storm Protection Fee Rebate Programs Discontinue the Permeable Pavement Project Rebate Program On August 20, 2019, Council approved rebates for permeable pavement installations at single-family homes and duplexes at a rate of $3/sf with a $900 (300 sf) maximum. An average two-car driveway is 300 square feet (sf.) While the measure generated some early inquiries, no applications for the rebate were received, despite outreach. In 2021, following consideration of various options for the program, City Council approved increasing the maximum rebate to $1,800 (600 sf.) To date only one driveway project has been submitted and approved for the rebate in the amount of $1,434. Similar programs in Palo Alto and San Diego have also had minimal participation. Staff recommends ending this rebate program and letting $12,500 in allocated funds return to Fund 230 to be used toward required activities as described above.

Rain Garden and Rain Barrel Installation Rebate Programs On August 20, 2019, Council allocated funds to support rebates to match and supplement Valley Water programs for installation of rain barrels, cisterns, or rain gardens, all of which assist in preventing runoff from properties and preventing pollution. Three rain gardens and two rain barrels earned rebates in Calendar Year (CY) 2021, for a total rebate amount of $1,061.30. In CY 2022 there were four rain barrel projects, eight rain garden projects, and one rain cistern project, which altogether earned $2,876 in rebates. $12,500 is budgeted each year for this rebate support from the Nonpoint Source program. The rebates are promoted through Valley Water’s outreach materials as well as through Cupertino’s Climate Victory Garden pilot program. A 238
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recent extension and increase of funding for the Valley Water agreement was approved by Council in January 2023 and while the $12,500 from Nonpoint Source remained unchanged, the use has been expanded to contribute to landscape conversions as well, since removing turf and replacing it under the Valley Water guidelines reduces use of pesticides and fertilizers which can contribute to runoff pollution. Staff recommends continuing with no change to the allocation of $12,500 to fund landscape conversions and rainwater capture project rebates.
2019 Clean Water and Storm Protection Fee Incentive Programs Continue the Cost-Share Program for Low-Income Residents but reduce the subsidy amount from $14,000 to $2,000 and lengthen the verification cycle for eligible participants from 2-year to 4-year While there are no exemptions for property owners, City Council did authorize a 20% cost-share program for low-income residents. During the 2019 Clean Water and Storm Protection ballot process, 1,565 residents were estimated to qualify as extremely low or very low-income based on the Comprehensive Housing Affordability Strategy (CHAS) data released by the US Department of Housing and Urban Development (HUD) in June 2018. During 2019-2020, 100 residents took part in that program, which was promoted via direct mail, articles in the Cupertino Scene and 50+ Scene, and on the City’s website.

Once eligibility is determined, it is automatically factored in for the following year’s Assessor Parcel Number (APN) fee and is shown at the reduced rate on the property tax bill. Outreach continued, and to date 271 residents have received a cost-share refund and have lower rates on their property tax bills. Of the residents who successfully applied for the City’s cost-share program, the majority had medium parcels charged $44.42/year with the 20% cost-share reimbursement amount at $8.88. The City coordinates with Silicon Valley Clean Energy to reach residents who participate in PG&E’s reduced rate program as well as promoting the availability in the Cupertino Scene and 50+ Scene to attempt to boost enrollment in the program. The cost-share program is funded by the General Fund because revenues from the Clean Water and Storm Protection Fee are restricted from being used for a cost-share (e.g., funding a reduced rate for others property owners). As approved by City Council in August 2019, residents who are approved for the 20% reduced fee should be re-verified every two years if they have variable income or four years if they are on fixed incomes. Due to the high administrative burden associated with managing the applications and the low dollar amount saved per property, staff is shifting the re-verification process to a four-year cycle for all approved residents using an attestation process (as opposed to requiring resubmittal of documentation).

Fee Reduction for Commercial and Multi-family Low Impact Design Features - Update As allowed by the Clean Water and Storm Protection Fee Ordinance, 267 commercial and multi-family properties that had already installed low-impact design (LID) elements such as bioswales, capture basins, and bioretention facilities, were assigned a 25% fee reduction, consistent with the fee schedule, after the fee was adopted. Installation of new LID features under the requirements of C.3 in the MRP (stormwater treatment measures 239
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in new development and redevelopment projects) qualifies additional properties for the same reduction. There is no change to this fee reduction for qualifying properties.

Audit Committee Review of Programs
Pursuant to the Clean Water and Storm Protection Fee Ordinance, expenses and revenues are audited annually by an independent auditor. On July 7, 2020, City Council approved assigning the Audit Committee the task of reviewing externally audited findings regarding the Nonpoint Source program on an annual basis. The City’s annual external audit for FY2021-22 was completed and was reviewed by the Audit Committee on March 27, 2023, and no issues were raised about the Nonpoint Source Program transactions. An additional Agreed-Upon Procedures (AUP) Audit, specific to the Nonpoint Source Program, was developed to further assess this program using a calendar year cycle, which was completed for calendar year 2021 with no exceptions noted. The final AUP report is included as Attachment D. Staff requests that the AUP process be completed for each prior calendar year ahead of this annual fee renewal process so that Council may have the most recent year’s AUP report to review. For this cycle, the 2022 report was not made available in time for Audit Committee review. As such, the City anticipates that the AUP audits of calendar years 2022 and 2023 will be completed and reviewed by the Audit Committee before these fees are brought to Council for renewal in 2024.

Sustainability Impact
The Storm Drainage Fee supports water pollution prevention and water conservation (NPDES) activities. Significant sustainability benefits include the reduction or elimination of pollutant discharges, which could degrade local creeks and threaten the supply of clean water, as well as the capture of rainwater, which can be used as a resource. Green Stormwater Infrastructure uses engineered features to mimic natural processes that allow stormwater to infiltrate the groundwater system instead of entering the storm drain system, enhancing climate change resilience.

Fiscal Impact
The combined revenues from the 1992 Storm Drainage Service Charge and 2019 Clean Water and Storm Protection Fee will generate approximately $1,476,808 for FY 2022-23, received into Fund 230. Projected expenses by the end of the fiscal year are approximately $2,025,222, which is 5% under the approved budget but exceeds revenues by approximately $548,400.

The proposed budget for FY 2023-24, with the proposed 3% increase of the Clean Water Fee, anticipates the cost of the Nonpoint Source Program to be $2,068,209, which reflects full staffing, adjusted staffing allocations, maintenance projects on aging infrastructure for storm protection, installation of drain inlet treatments, and the other activities that ensure compliance with the MRP. Without an increase, the expected revenues from the two fees are approximately $1,477,239. The projected expense for the Nonpoint Source Program for FY 23-24 is $590,970 beyond the expected revenue from the fees. 240
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In recent years, the shortfall between the APN fee revenues and the program expenses has been covered by the balance in Fund 230 330-301. The available balance of Fund 230 330-301 after FY 2022-23 is projected to be $369,400. With a projected shortfall of $590,970 in FY23-24, Fund 230 330-301 is expected to be exhausted mid fiscal year with the remainder covered by the General Fund.

The Clean Water and Storm Protection Fee may be increased up to 3% each year if need is determined. If increased by 3%, the cost to the average residential property owner would be an additional $1.33 per year and would accrue an additional $33,000 in fee revenue. While the increased revenue would not resolve the shortfall, it would reduce the draw on the General Fund by that amount to ensure ongoing MRP compliance.

Nonpoint Source Program Revenue and Expenses (estimated) FY 2022-23 FY 2023-24 (proposed)
Fund Balance (previous FY) $ 917,878 $ 369,464
Revenue 1992 Fee $ 375,569 $ 375,569
Revenue 2019 Fee $ 1,101,239 $ 1,101,239
3% increase to 2019 Fee $ - $ 33,037
General Fund $ - $ 590,970
Total Program Funding $ 2,394,686 $ 2,470,279
Program Expenses* $ 2,025,222 $ 2,068,209
Remaining Fund Balance at end
of FY $ 369,464 $ -
*Program expenses include $38,700 in cost reductions as discussed below.

To further reduce the draw on the General Fund, staff recommends the following:
 Discontinue the pervious pavement rebate program and return the allocated $12,500 to be used to cover Nonpoint Source Program costs more broadly.  Adjust the budgeted amount for the low-income cost-share program from $14,000 down to $2,000. The $14,000 originally budgeted for the cost-share program would have covered refunds for all applicable residents in one year, but the reality is that applications are incremental.

The following operational reductions are included in the proposed FY23-24 budget:
 As part of the annual compliance required by the MRP, the annual stormwater inspection has been conducted by a third-party consultant. Going forward, such inspection will be conducted by city staff. Annual cost savings will be $3,200.  Discontinue the agreement with Grassroots Ecology for citizen science fieldtrips to do water sampling in Stevens Creek. While the program is popular among the community, the collected data is beyond the testing required by the MRP and outreach and education are already occurring regionally through SCVURPPP241 CC 06-06-2023
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funded projects and through the City’s third grade creek education field trips at McClellan Ranch Preserver. Cost savings will be $20,460.  Discontinue providing transportation service to CUSD to McClellan Ranch Preserve for annual third-grader fieldtrips. CUSD has confirmed that the schools would be able to continue the fieldtrip and to supply with District transportation. This would be an annual cost saving of $14,900, although the actual expense associated with the fieldtrip was much lower due to a reversal of COVID-related seat spacing on the buses which required more buses to be used.

Purchase of a remote-controlled rover with a camera to provide more costeffective evaluation of storm drain system pipes. While the initial purchase would be approximately $131,000, purchasing this remote camera system would allow the storm drain inspection operations team to expand their scope of work to perform proactive inspections inside the pipes and identify obstructions and damage that need to be addressed quickly and without having to bring in an outside service provider. The ongoing expected annual savings on hired contract costs could be $160,000 per year. s,
California Environmental Quality Act (CEQA)
Not applicable.
_____________________________________
Prepared by: Ursula Syrova, Environmental Programs Manager Reviewed by: Chad Mosley, Interim Director of Public Works Reviewed by: Matt Morley, Assistant City Manager
Approved for Submission by: Pamela Wu, City Manager
Attachments:

A – Draft Resolution 1992 Fee
B – Draft Resolution 2019 Fee
C - Clean Water and Storm Protection Fee Ordinance with Fee Report D – Calendar Year 2021 Storm Drain AUP Reports
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Attachment A
RESOLUTION NO. 23-XXX

A RESOLUTION OF THE CUPERTINO CITY COUNCIL APPROVING THE

RENEWAL AND COLLECTION OF THE EXISTING STORM DRAIN FEE
WITH NO INCREASE IN RATES FOR FISCAL YEAR 2023-2024
WHEREAS, the City Council of the City of Cupertino enacted Municipal Code Chapter 3.36 to meet the requirements of the federally mandated Stormwater Pollution Prevention and Management Program, federal regulations, and the City’s National Pollution Discharge Elimination System (NPDES) permit and establishing the authority for imposing and charging a storm drainage service charge (“storm drain fee” or “fee”); and
WHEREAS, Municipal Code Chapter 9.18 provides regulations and gives legal effect to the Municipal Regional Permit issued to the City and assures ongoing compliance with the most recent version of the City’s NPDES permit regarding the effect of urban stormwater runoff on the ability of the City’s storm drain system to comply with federal and state laws; and WHEREAS, in 1992 the City adopted a storm drain fee based on the City’s Master Storm Drain Study runoff coefficients and average area of impervious surface per acre based on the type of land use of each parcel; and WHEREAS, a written report titled “Engineer’s Report, Assessment of Fees for Storm Drainage Purposes Nonpoint Source Pollution Program” (“report”), concerning the method of assessing fees to fund the City’s Stormwater Management Program, was prepared by the Director of Public Works pursuant to Section 3.36.080(B) of the City’s Municipal Code and filed with the City Clerk on May 31, 2023; and
WHEREAS, notice of the proposed rates was published in a local newspaper on 5/19/2023 and 5/26/2023; and
WHEREAS, the City Council of the City of Cupertino finds and determines as follows:

1. After considering the “Engineer’s Report, Assessment of Fees for Storm Drainage Purposes Nonpoint Source Pollution Program,” attached hereto as Exhibit A and incorporated herein, and the testimony received at this public hearing, the City Council hereby approves the report.
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2. There is a need in the City to continue collecting a storm drain fee to cover the costs of federal and state requirements, as heretofore described, in that properties within the City will not otherwise contribute a portion of costs toward this program and without the availability of such storm drain fee, the City’s general fund will further be negatively impacted in such a manner as to jeopardize other essential services.

3. The facts and evidence presented establish that there is a reasonable relationship between the need for this fee and the impacts for which this fee shall be used, and that there is a reasonable relationship between the fee’s use and the properties that are to be charged this fee. These relationships or nexus are described in more detail in the above-referenced Engineer’s Report.

4. The amounts of the fee for each category of property, as set forth below, are reasonable amounts, because the fee is based on the percent of impervious area established in the Master Plan, City of Cupertino Storm Drainage System and are below the amount needed to recover the cost of storm drainage services.

5. It is further determined that each and every parcel of land to which the fee applies will, and has received, a benefit of flood control from the storm drainage system and that the fees imposed herein on each such parcel are in conformity with, and in fact lower than, the benefits that such parcel has received as further described in the report.

NOW, THEREFORE, BE IT RESOLVED, by the City Council, that:

1. Charge. The storm drain fee shall continue to be charged to each parcel within the City, unless exempt, to contribute to the costs of the City’s federal and state requirements for Nonpoint Source Control and a Stormwater Management Program.

2. Use of Revenue. The revenue derived from said fee shall be used in connection with implementing and enforcing Chapters 3.36 of the Cupertino Municipal Code titled “Storm Drainage Service Charge” and Chapter 9.18 titled “Stormwater Pollution Prevention and Watershed Protection.”

3. Schedule of Charges.
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a. Annual fees for each category of property will be assessed and collected as follows:

Residential premises $ 12.00/parcel
Apartment premises $144.00/acre
Commercial/Industrial premises $144.00/acre
Unimproved/Recreational $ 36.00/acre
b. The following public properties are exempt from, and shall not be assessed the environmental fee:

Cupertino Sanitary District
Santa Clara County
Santa Clara Valley Water District
Southern Pacific Transportation Company
State of California
The Santa Clara County Fire Department
The City of Cupertino
The Cupertino Union School District
The Foothill-De Anza Community College District
The Fremont Union High School District
The MidPeninsula Regional Open Space District
United States of America

4. Judicial Action to Challenge this Resolution. Any judicial action or proceeding to challenge, review, set aside, void, or annul this resolution shall be brought within 120 days from the date of its adoption.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 6
th day of June 2023, by the following vote:

Members of the City Council
AYES:

NOES:

ABSENT:
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ABSTAIN:

SIGNED:
________
Hung Wei, Mayor
City of Cupertino
________________________
Date
ATTEST:
________________________
Kirsten Squarcia, City Clerk
________________________
Date
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EXHIBIT A

ENGINEER'S REPORT

ASSESSMENT OF FEES FOR STORM DRAINAGE PURPOSES

NONPOINT SOURCE POLLUTION PROGRAM
A. Program Description and Purpose
The purpose of this assessment is to collect fees to fund the City of Cupertino's Nonpoint Source Pollution Prevention Program mandated by the Environmental Protection Agency (EPA) and the Clean Water Act. Regulations by the EPA and the State of California require cities to take specific actions to eliminate or control pollutants in waters of the State.

The term "nonpoint source pollution" represents a process whereby pollutants, debris, trash, sediment and chemicals which accumulate on streets, in neighborhoods, at construction sites, in parking lots, and on other exposed surfaces are washed off by rainfall and carried away by stormwater runoff (via city drain inlets and pipes installed for flood control) into local creeks and the San Francisco Bay. Sources of these pollutants may include automobile exhaust and oil, pesticides, fertilizers, eroded soil, detergents, pet waste, paint, litter, and other material carried through the City's storm drainage system without treatment directly to the Bay. Many of these pollutants are hazardous to aquatic and human life.

The City of Cupertino has implemented several mandated and pro-active programs to mitigate this problem. Among other activities, these programs include an illegal storm drain discharge investigation and elimination complaint response program; scheduled proactive inspections of outdoor housekeeping practices at business sites within the City; bi-weekly sweeping of residential streets and weekly sweeping of commercial streets; installation of trash capture devices and curb drain inlet screens to prevent litter from entering the City's storm drainage system; inspection and cleaning of storm drain structures and trash capture devices; public education and engagement with teachers and students, educational activities offered at City events; and a popular, unique, and well- established District-wide third-grade creek education & field trip program led by the City's naturalist at McClellan Ranch Preserve and Stevens Creek.
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The San Francisco Bay Regional Water Quality Control Board (Water Board) approved the first Municipal Regional Permit (MRP) on October 14, 2009, and, on November 18, 2015, adopted the second regional permit (MRP 2.0) with additional requirements that became effective on January 1, 2016. MRP 2.0 was issued to the City of Cupertino and 75 agencies or co-permittees which discharge storm water through municipal drainage systems to local creeks and the San Francisco Bay. The City of Cupertino and 14 other co-permittees in Santa Clara County are members of the Santa Clara Valley Urban Runoff Pollution Prevention Program (SCVURPPP) which works collaboratively to maintain compliance with MRP 2.0. In addition to conducting local activities, City staff work closely with the other SCVURPPP jurisdictions to implement pollution prevention, source control, monitoring, and educational programs.

A further update and reissuance of the Municipal Regional Permit (MRP 3.0) was adopted by the Regional Water Quality Control Board and became effective on July 1, 2022.

In FY 2019-2020, the Nonpoint Source budget was increased to accommodate a new street sweeping contract, enhanced assessment and maintenance of aging structures, and additional staff to clean and maintain the city’s storm drain system. The City’s storm drain system consists of 2092 drain inlets and 90 miles of storm drainage pipes. Of the drain inlets 178 are fitted with full trash capture devices and 281 have curb screens. Maintenance of these assets includes twice per year cleaning of inlets and trash capture devices which protects the city from flooding while preventing stormwater pollution. The budget for FY 20-21 included those ongoing enhancements along with increased allocations of staff time to more accurately reflect time spent on stormwater pollution prevention tasks. A total of 5.07 full time employees are included in the Nonpoint Source program budget across 21 positions with varying allocations of a person’s time. One maintenance worker is covered at 100%, the Nonpoint Source inspector is at 95%, and the remaining positions are covered at between 2% - 60%. The budget for FY 21-22 and FY 22-23 maintained those adjustments and no changes in those areas are expected for FY 23 -24.

B. Estimated Expenditures
The total estimated (amended) budget to implement the required programs described above for FY 22-23 was approximately $2,127,933. Actual expenses for all of FY 22-23 are anticipated to be approximately $2,025,222. 248
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The breakdown of past actuals, current actuals as of Q3, and budgeted expenses for FY 23-24 are as follows:

FY 21-22
Actuals
FY 22-23 Q3
7/1/2022 – 3/31/2023
FY 23-24
Requested Budget
Staffing $844,326 $687,122 $947,538
Materials $56,287 $56,956 $73,748
Contract Services $322,762 $226,051 $678,920
Allocations $406,269 $249,823 $344,797
Cost Share &
Rebate Programs
$13,373 $9,159 $23,206
Total Expenses $1,643,017 $1,229,111 $2,068,209
Expected Final $2,025,222
Activities undertaken within the Nonpoint Source program for permit compliance:

Countywide Program
SCVURPPP Program Assessment - Regional Permit Implementation Regional Watershed Monitoring (administered by EOA, Inc.1) State NPDES2 Permit Fees
Countywide Public Education and Municipal Staff Training CA Stormwater Quality Association (CASQA) Participation County Policy Development
Operations and Maintenance

1 EOA, Inc. is the environmental engineering and regulatory consulting firm that manages the Santa Clara Valley Urban Runoff Pollution Prevention Program for the co-permittees www.eoainc.com 2 NPDES: National Pollutant Discharge Elimination System 249
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Catch Basin and Frequent Trash Capture Device Cleaning
Installation of Trash Capture and Retractable Screen Devices On-call Emergency Spill and Discharge Response
Staff and Equipment to Implement City's Mandated Litter Reduction Plan Street Sweeping (weekly in commercial areas)
City Public Education Awareness
Public Outreach Materials & Events
Third-Grade Creek Education for Local Schools
Support High School Students' Watershed and Creek Education Support De Anza College and Community Environmental Education
Community Engagement - Creek Cleanup & Watershed Monitoring Events
Staff to Conduct Public Education, Training and Outreach CA Product Stewardship Council membership (Extended Producer Responsibility)
Local Programs
Development, Administration, and Evaluation of Mandated Programs Environmental Impact and New and Redevelopment Review
Rain barrel, rain garden, and permeable pavement rebates Ordinance Revisions
Database Maintenance
Illegal Discharge Complaint Investigation and Enforcement Industrial/Commercial Discharger Inspection Program
Construction Site Inspection Program
Verification of Treatment Measure Maintenance by Private Property Owners
Low Impact Development (LID) and Green Infrastructure Management Litter Reduction Education and Enforcement
City's Participation in Multiple Countywide and Regional Programs Annual Parcel Stormwater Fee Assessment
Other Staffing Costs
Cost Allocations
C. Revenue And Assessment
Revenues generated to fund this program come from two fees assessed on parcels in Cupertino. The Storm Drain Fee was established in 1992. Revenues 250
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from that fee are inadequate to meet the expenses associated with maintaining the storm drain system in Cupertino and ensuring compliance with the MRP, so the Clean Water and Storm Protection fee was established in 2019 and first appeared on 2019-2020 property tax bills. As assessed on the 2022-2023 tax roll and direct billed, the revenue from the two fees will total approximately $1,467,386.

FY 22-23 Assessed Actuals
1992 Storm Drain Fee $375,569
Clean Water and Storm Protection Fee $1,101,239
Total Assessed $1,476,808
1992 Storm Drain Fee
Fees are based on a factor calculated from the City's Master Storm Drain Study runoff coefficients and average area of impervious surface per acre based on type of land-use development. The factor for each category is based on a comparison to an average residential parcel assigned a factor of one.

Certain parcel-owners such as schools and government entities were exempt from such fees in 1992 and as such are not assessed this fee.

The fee assessed on the 2022-2023 tax roll totaled $375,569. Those fees were applied to 16,558 residential, commercial, and vacant or recreational use parcels.
2019 Clean Water and Storm Protection Fee
The Clean Water and Storm Protection Fee is imposed on properties that shed water, directly or indirectly, into the City’s storm drainage system, and is calculated to be proportionate to the amount of stormwater runoff contributed by each parcel, which is in turn proportionate to the amount of impervious surface area. The details of the methodology are described in the Fee Report as prepared by SCI in February of 2019 that is attached to the Clean Water and Storm Protection fee ordinance. The calculations are informed by the City’s 251
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2018 Storm Drain Master Plan, which includes an analysis of the percentage of impervious area for Cupertino, and rates are further calculated by parcel size and land use category. Unlike the 1992 fee, the Clean Water and Storm Protection fee is subject to treatment under prop 218 and as such all parcels are assessed the fees without exemptions.

The fees assessed on the 2022-2023 tax rolls totaled $1,002,324. Those fees were applied to 16,539 parcels in fourteen categories including single-family residential parcels in four sizes, condominiums, and apartments, commercial, office, institutional, recreational, and vacant. Fees billed directly to parcelowners that do not receive property tax bills (such as schools and government) totaled $98,915 applied to 96 parcels.

The total revenue invoiced from the Clean Water and Storm Protection fee for 2022-2023 is $1,101,239.

For both fees, in coordination with the City’s contracted consultant for this purpose, each parcel was identified, and a fee established in a separate report submitted to the County entitled Certification of Special Assessment Annual Enrollment which lists the APN and fee associated fee. The consultant used by the City, SCI, prepares both forms and submits them to the County in accordance with the annual deadline in early August so that the fees can appear on the property tax bills. Additionally, SCI staff are available to answer questions via a phone number provided on the tax bill.

D. Annual Review
The Clean Water and Storm Protection Fee included annual review requirements beginning with FY 2020-2021 as described in ordinance 19-2183 (Chapter 3.38 of the Cupertino Municipal Code). Section 3.38.040 describes the review process and allows for an annual increase based on the change in CPI as of December each year up to 3% maximum if actual additional costs are incurred.

The expenses attributed to the Nonpoint Source Program through third quarter of FY22-23 are $1,229,111 and are projected to reach $2,025,222 by the end of the fiscal year. That expected total is about $102,711 below the approved budget for FY22-23; however, it is above expected revenue by approximately 252
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$548,000. Available balance in Fund 230 is sufficient to make up the difference for FY22-23 but will be exhausted during FY23-24.

The intention of the fee assessments is only to cover costs and not accrue a balance, however several factors resulted in fund balance accruing. In 2019, before the Clean Water and Storm Protection Fee ballot measure passed, a General Fund subsidy had already been budgeted and transferred that was ultimately not needed. In FY19-20 the program came in under budget largely because true staffing cost allocations had not yet been applied, something that was corrected for FY20-21. In FY20-21 a storm drain video and repair project was anticipated at $248,436, but no acceptable bids were received for the project, and it was also not conducted in FY21-22. An RFP was conducted in winter 2023 for an initial outfall survey to inform needed repair planning that will likely begin in late FY22-23, but at less than the full budgeted amount for the storm drain video and repair project. The fund 230 balance was $917,878 at the beginning of FY22-23. After covering the shortfall from the projected expenditures from FY22-23, the remaining balance in Fund 230 at the end of the fiscal year is expected to be approximately $369,400 heading into FY 23-24.

The requested budget for FY 23-24 totals $2,068,209. With anticipated revenue at $1,477,239, which indicates a projected shortfall of $522,300. That shortfall will exhaust the remaining fund balance in Fund 230, meaning that an increase to the Clean Water and Storm Protection fee is now recommended to reduce the draw upon the General Fund to cover the difference. A 3% increase to the Clean Water and Storm Protection fee would result an increase of $1.33 per year for residents in the most common size of residential property and would generate approximately $33,000 per year additional revenue. That increase will not bridge the expected shortfall after exhausting the Fund 230 balance, but it will reduce the funding request of the General Fund.

A full year of expenses and revenues for the Nonpoint Source Program were audited under the City’s annual external audit and reviewed by the City’s Audit Committee. An additional Agreed-Upon Procedures (AUP) audit specific to the Nonpoint Source Program was developed to further assess this program using a calendar year cycle. The AUP was performed on calendar year 2021 (Attachment D) and no exceptions were noted. The City anticipates that the AUP audits of calendar years 2022 and 2023 will be completed and reviewed by the Audit Committee ahead of the next time these fees are brought to Council for renewal in 2024.
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Chad Mosley
Assistant Director of Public Works/City
Engineer
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Attachment B
RESOLUTION NO. 23-XXX

A RESOLUTION OF THE CUPERTINO CITY COUNCIL APPROVING THE RENEWAL AND COLLECTION OF THE EXISTING 2019 CLEAN WATER AND STORM PROTECTION FEE FOR FISCAL YEAR 2023-2024
WHEREAS, on March 5, 2019, the City Council of the City of Cupertino adopted Resolution 19-022 initiating proceedings to obtain approval of the proposed 2019 Clean Water and Storm Protection Fee (“Fee”), which is a property related fee conforming to Article XIII D, Section 6 of the California Constitution, and approved the Fee Report for the Water Quality and Flood Protection Fee (“Fee Report”) which sets forth the basis and the amount of the 2019 Clean Water and Storm Protection Fee on various parcels of land in order to finance, in compliance with Article XIIID of the Constitution, the costs of the City’s Clean Water and Storm Protection Program; and
WHEREAS, on March 18, 2019, a notice of public hearing was mailed to all property owners whose property would be subject to the Fee, in accordance with California Health and Safety Code Section 5473.1; and
WHEREAS, on May 7, 2019, the City Council adopted Resolution 19-041 finding that a majority protest does not exist and ordering a mailed ballot proceeding for the proposed Fee proceeding in accordance with Article XIII of the Constitution, Section 53755.5 of the Government Code; and
WHEREAS, on May 7, 2019, the City Council introduced Ordinance No. 19-2183 establishing Chapter 3.38 of the Municipal Code to establish the Clean Water and Storm Protection Fee; and
WHEREAS, on May 17, 2019, ballots were mailed to all property owners whose property would be subject to the Fee; and
WHEREAS, on July 17, 2019, by its Resolution 19-096 the City Council adopted Ordinance No. 19-2183 establishing Chapter 3.38 of the Municipal Code, found that the Fee was approved by 51.15% of the returned ballots from property owners of the property subject to the Fee and thereby ordered that the Fee for fiscal year 2019-20 be levied at the rates specified in the Fee Report; and WHEREAS, Sections 3.38.040 through 3.38.070 of the Ordinance establishing the 2019 Clean Water and Storm Protection Fee allow the City Council to review the 255
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Fee annually and apply a rate increase based on the change in the Consumer Price Index (“CPI”) up to a maximum increase of 3% in any single year, and to collect the Fee on the property tax roll in the same manner, by the same persons, and at the same time as, the general taxes; and
WHEREAS, a written report titled “Engineer’s Report, Assessment of Fees for Storm Drainage Purposes Nonpoint Source Pollution Program” (“report”), concerning the method of assessing fees to fund the City’s Stormwater Management Program, was prepared by the Director of Public Works pursuant to Section 3.36.080(B) of the City’s Municipal Code and filed with the City Clerk on May 31, 2023; and
WHEREAS, notice of the proposed rates was published in a local newspaper on 5/19/2023 and 5/26/2023; and
WHEREAS, the City Council of the City of Cupertino finds and determines as follows:

1. There is a need in the City to continue collecting the Clean Water and Storm Protection Fee to cover the costs of the Clean Water and Storm Protection Program; and

2. The facts and evidence presented establish that there is a reasonable relationship between the need for this Fee and the impacts for which this Fee shall be used, and that there is a reasonable relationship between the Fee’s use and the properties, which are to be charged the Fee. These relationships or nexus are described in more detail in the above referenced Fee Report; and

3. The amounts of the Fee for each category of property, as set forth below in the Schedule of Charges, are reasonable amounts, because the amounts are based on the methodology established in the Fee Report.

NOW, THEREFORE, BE IT RESOLVED, by the City Council, that:

1. Charges. The 2019 Clean Water and Storm Protection Fee shall continue to be charged to each parcel within the City to contribute to the costs of the City’s Clean Water and Storm Protection Program. The Fee charged will be increased by 3% for Fiscal Year 2023-2024.
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2. Use of Revenue. The revenue derived from said Fee shall be used in connection with implementing and enforcing Chapters 3.38 of the Cupertino Municipal Code titled “Clean Water and Storm Protection Fee” and Chapter 9.18 titled “Stormwater Pollution Prevention and Watershed Protection.”

3. Schedule of Charges.
a. Annual fees for each category of property will be assessed and collected as follows:

4. Judicial Action to Challenge this Resolution. Any judicial action or proceeding to challenge, review, set aside, void, or annul this resolution shall be brought within 120 days from the date of its adoption.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 6
th day of June, 2023, by the following vote:

Single-Family Residential *
Small (Under 0.13 acre) 37.68$ per parcel
Medium (0.13 to 0.22 acre) 45.75$ per parcel
Large 0.23 to 0.40 acre) 57.25$ per parcel
Extra Large (over 0.40 acre) 109.61$ per parcel
Condominium 1 (1 story) 37.68$ per parcel
Condominium 2+ (2+ stories) 12.34$ per parcel
Non-Single-Family Residential **
Multi-Family Residential 31.81$ per 0.1 acre
Commercial / Retail / Industrial 41.59$ per 0.1 acre
Office 31.81$ per 0.1 acre
Church / Institutional 26.91$ per 0.1 acre
School (w/playfield) 19.57$ per 0.1 acre
Park 7.34$ per 0.1 acre
Vacant (developed) 2.45$ per 0.1 acre
Open Space / Agricultural
* Single-Family Residential category also includes du- tri- and four-plex units ** Non-SFR parcels are charge per the tenth of an acre or portion thereof *** Low Impact Development Adjustment only applies to condominium and non-singlefamily properties.

Land Use Category Fee
no charge
Low Impact Development Adjustment *** 25% Fee Reduction 257
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Members of the City Council
AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED:
________
Hung Wei, Mayor
City of Cupertino
________________________
Date
ATTEST:
________________________
Kirsten Squarcia, City Clerk
________________________
Date
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EXHIBIT A

ENGINEER'S REPORT

ASSESSMENT OF FEES FOR STORM DRAINAGE PURPOSES

NONPOINT SOURCE POLLUTION PROGRAM
A. Program Description and Purpose
The purpose of this assessment is to collect fees to fund the City of Cupertino's Nonpoint Source Pollution Prevention Program mandated by the Environmental Protection Agency (EPA) and the Clean Water Act. Regulations by the EPA and the State of California require cities to take specific actions to eliminate or control pollutants in waters of the State.

The term "nonpoint source pollution" represents a process whereby pollutants, debris, trash, sediment and chemicals which accumulate on streets, in neighborhoods, at construction sites, in parking lots, and on other exposed surfaces are washed off by rainfall and carried away by stormwater runoff (via city drain inlets and pipes installed for flood control) into local creeks and the San Francisco Bay. Sources of these pollutants may include automobile exhaust and oil, pesticides, fertilizers, eroded soil, detergents, pet waste, paint, litter, and other material carried through the City's storm drainage system without treatment directly to the Bay. Many of these pollutants are hazardous to aquatic and human life.

The City of Cupertino has implemented several mandated and pro-active programs to mitigate this problem. Among other activities, these programs include an illegal storm drain discharge investigation and elimination complaint response program; scheduled proactive inspections of outdoor housekeeping practices at business sites within the City; bi-weekly sweeping of residential streets and weekly sweeping of commercial streets; installation of trash capture devices and curb drain inlet screens to prevent litter from entering the City's storm drainage system; inspection and cleaning of storm drain structures and trash capture devices; public education and engagement with teachers and students, educational activities offered at City events; and a popular, unique, and well- established District-wide third-grade creek education & field trip program led by the City's naturalist at McClellan Ranch Preserve and Stevens Creek.
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The San Francisco Bay Regional Water Quality Control Board (Water Board) approved the first Municipal Regional Permit (MRP) on October 14, 2009, and, on November 18, 2015, adopted the second regional permit (MRP 2.0) with additional requirements that became effective on January 1, 2016. MRP 2.0 was issued to the City of Cupertino and 75 agencies or co-permittees which discharge storm water through municipal drainage systems to local creeks and the San Francisco Bay. The City of Cupertino and 14 other co-permittees in Santa Clara County are members of the Santa Clara Valley Urban Runoff Pollution Prevention Program (SCVURPPP) which works collaboratively to maintain compliance with MRP 2.0. In addition to conducting local activities, City staff work closely with the other SCVURPPP jurisdictions to implement pollution prevention, source control, monitoring, and educational programs.

A further update and reissuance of the Municipal Regional Permit (MRP 3.0) was adopted by the Regional Water Quality Control Board and became effective on July 1, 2022.

In FY 2019-2020, the Nonpoint Source budget was increased to accommodate a new street sweeping contract, enhanced assessment and maintenance of aging structures, and additional staff to clean and maintain the city’s storm drain system. The City’s storm drain system consists of 2092 drain inlets and 90 miles of storm drainage pipes. Of the drain inlets 178 are fitted with full trash capture devices and 281 have curb screens. Maintenance of these assets includes twice per year cleaning of inlets and trash capture devices which protects the city from flooding while preventing stormwater pollution. The budget for FY 20-21 included those ongoing enhancements along with increased allocations of staff time to more accurately reflect time spent on stormwater pollution prevention tasks. A total of 5.07 full time employees are included in the Nonpoint Source program budget across 21 positions with varying allocations of a person’s time. One maintenance worker is covered at 100%, the Nonpoint Source inspector is at 95%, and the remaining positions are covered at between 2% - 60%. The budget for FY 21-22 and FY 22-23 maintained those adjustments and no changes in those areas are expected for FY 23 -24.

B. Estimated Expenditures
The total estimated (amended) budget to implement the required programs described above for FY 22-23 was approximately $2,127,933. Actual expenses for all of FY 22-23 are anticipated to be approximately $2,025,222. 260
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The breakdown of past actuals, current actuals as of Q3, and budgeted expenses for FY 23-24 are as follows:

FY 21-22
Actuals
FY 22-23 Q3
7/1/2022 – 3/31/2023
FY 23-24
Requested Budget
Staffing $844,326 $687,122 $947,538
Materials $56,287 $56,956 $73,748
Contract Services $322,762 $226,051 $678,920
Allocations $406,269 $249,823 $344,797
Cost Share &
Rebate Programs
$13,373 $9,159 $23,206
Total Expenses $1,643,017 $1,229,111 $2,068,209
Expected Final $2,025,222
Activities undertaken within the Nonpoint Source program for permit compliance:

Countywide Program
SCVURPPP Program Assessment - Regional Permit Implementation Regional Watershed Monitoring (administered by EOA, Inc.1) State NPDES2 Permit Fees
Countywide Public Education and Municipal Staff Training CA Stormwater Quality Association (CASQA) Participation County Policy Development
Operations and Maintenance

1 EOA, Inc. is the environmental engineering and regulatory consulting firm that manages the Santa Clara Valley Urban Runoff Pollution Prevention Program for the co-permittees www.eoainc.com 2 NPDES: National Pollutant Discharge Elimination System 261
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Catch Basin and Frequent Trash Capture Device Cleaning
Installation of Trash Capture and Retractable Screen Devices On-call Emergency Spill and Discharge Response
Staff and Equipment to Implement City's Mandated Litter Reduction Plan Street Sweeping (weekly in commercial areas)
City Public Education Awareness
Public Outreach Materials & Events
Third-Grade Creek Education for Local Schools
Support High School Students' Watershed and Creek Education Support De Anza College and Community Environmental Education
Community Engagement - Creek Cleanup & Watershed Monitoring Events
Staff to Conduct Public Education, Training and Outreach CA Product Stewardship Council membership (Extended Producer Responsibility)
Local Programs
Development, Administration, and Evaluation of Mandated Programs Environmental Impact and New and Redevelopment Review
Rain barrel, rain garden, and permeable pavement rebates Ordinance Revisions
Database Maintenance
Illegal Discharge Complaint Investigation and Enforcement Industrial/Commercial Discharger Inspection Program
Construction Site Inspection Program
Verification of Treatment Measure Maintenance by Private Property Owners
Low Impact Development (LID) and Green Infrastructure Management Litter Reduction Education and Enforcement
City's Participation in Multiple Countywide and Regional Programs Annual Parcel Stormwater Fee Assessment
Other Staffing Costs
Cost Allocations
C. Revenue And Assessment
Revenues generated to fund this program come from two fees assessed on parcels in Cupertino. The Storm Drain Fee was established in 1992. Revenues 262
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from that fee are inadequate to meet the expenses associated with maintaining the storm drain system in Cupertino and ensuring compliance with the MRP, so the Clean Water and Storm Protection fee was established in 2019 and first appeared on 2019-2020 property tax bills. As assessed on the 2022-2023 tax roll and direct billed, the revenue from the two fees will total approximately $1,467,386.

FY 22-23 Assessed Actuals
1992 Storm Drain Fee $375,569
Clean Water and Storm Protection Fee $1,101,239
Total Assessed $1,476,808
1992 Storm Drain Fee
Fees are based on a factor calculated from the City's Master Storm Drain Study runoff coefficients and average area of impervious surface per acre based on type of land-use development. The factor for each category is based on a comparison to an average residential parcel assigned a factor of one.

Certain parcel-owners such as schools and government entities were exempt from such fees in 1992 and as such are not assessed this fee.

The fee assessed on the 2022-2023 tax roll totaled $375,569. Those fees were applied to 16,558 residential, commercial, and vacant or recreational use parcels.
2019 Clean Water and Storm Protection Fee
The Clean Water and Storm Protection Fee is imposed on properties that shed water, directly or indirectly, into the City’s storm drainage system, and is calculated to be proportionate to the amount of stormwater runoff contributed by each parcel, which is in turn proportionate to the amount of impervious surface area. The details of the methodology are described in the Fee Report as prepared by SCI in February of 2019 that is attached to the Clean Water and Storm Protection fee ordinance. The calculations are informed by the City’s 263
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2018 Storm Drain Master Plan, which includes an analysis of the percentage of impervious area for Cupertino, and rates are further calculated by parcel size and land use category. Unlike the 1992 fee, the Clean Water and Storm Protection fee is subject to treatment under prop 218 and as such all parcels are assessed the fees without exemptions.

The fees assessed on the 2022-2023 tax rolls totaled $1,002,324. Those fees were applied to 16,539 parcels in fourteen categories including single-family residential parcels in four sizes, condominiums, and apartments, commercial, office, institutional, recreational, and vacant. Fees billed directly to parcelowners that do not receive property tax bills (such as schools and government) totaled $98,915 applied to 96 parcels.

The total revenue invoiced from the Clean Water and Storm Protection fee for 2022-2023 is $1,101,239.

For both fees, in coordination with the City’s contracted consultant for this purpose, each parcel was identified, and a fee established in a separate report submitted to the County entitled Certification of Special Assessment Annual Enrollment which lists the APN and fee associated fee. The consultant used by the City, SCI, prepares both forms and submits them to the County in accordance with the annual deadline in early August so that the fees can appear on the property tax bills. Additionally, SCI staff are available to answer questions via a phone number provided on the tax bill.

D. Annual Review
The Clean Water and Storm Protection Fee included annual review requirements beginning with FY 2020-2021 as described in ordinance 19-2183 (Chapter 3.38 of the Cupertino Municipal Code). Section 3.38.040 describes the review process and allows for an annual increase based on the change in CPI as of December each year up to 3% maximum if actual additional costs are incurred.

The expenses attributed to the Nonpoint Source Program through third quarter of FY22-23 are $1,229,111 and are projected to reach $2,025,222 by the end of the fiscal year. That expected total is about $102,711 below the approved budget for FY22-23; however, it is above expected revenue by approximately 264
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$548,000. Available balance in Fund 230 is sufficient to make up the difference for FY22-23 but will be exhausted during FY23-24.

The intention of the fee assessments is only to cover costs and not accrue a balance, however several factors resulted in fund balance accruing. In 2019, before the Clean Water and Storm Protection Fee ballot measure passed, a General Fund subsidy had already been budgeted and transferred that was ultimately not needed. In FY19-20 the program came in under budget largely because true staffing cost allocations had not yet been applied, something that was corrected for FY20-21. In FY20-21 a storm drain video and repair project was anticipated at $248,436, but no acceptable bids were received for the project, and it was also not conducted in FY21-22. An RFP was conducted in winter 2023 for an initial outfall survey to inform needed repair planning that will likely begin in late FY22-23, but at less than the full budgeted amount for the storm drain video and repair project. The fund 230 balance was $917,878 at the beginning of FY22-23. After covering the shortfall from the projected expenditures from FY22-23, the remaining balance in Fund 230 at the end of the fiscal year is expected to be approximately $369,400 heading into FY 23-24.

The requested budget for FY 23-24 totals $2,068,209. With anticipated revenue at $1,477,239, which indicates a projected shortfall of $522,300. That shortfall will exhaust the remaining fund balance in Fund 230, meaning that an increase to the Clean Water and Storm Protection fee is now recommended to reduce the draw upon the General Fund to cover the difference. A 3% increase to the Clean Water and Storm Protection fee would result an increase of $1.33 per year for residents in the most common size of residential property and would generate approximately $33,000 per year additional revenue. That increase will not bridge the expected shortfall after exhausting the Fund 230 balance, but it will reduce the funding request of the General Fund.

A full year of expenses and revenues for the Nonpoint Source Program were audited under the City’s annual external audit and reviewed by the City’s Audit Committee. An additional Agreed-Upon Procedures (AUP) audit specific to the Nonpoint Source Program was developed to further assess this program using a calendar year cycle. The AUP was performed on calendar year 2021 (Attachment D) and no exceptions were noted. The City anticipates that the AUP audits of calendar years 2022 and 2023 will be completed and reviewed by the Audit Committee ahead of the next time these fees are brought to Council for renewal in 2024.
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Chad Mosley
Assistant Director of Public Works/City
Engineer
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Attachment C
ORDINANCE NO. 19- 2183

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ADDING CHAPTER 3.38 OF THE MUNICIPAL CODE TO ESTABLISH THE

CLEAN WATER AND STORM PROTECTION FEE
WHEREAS, the City of Cupertino ("City") oversees and manages a municipal separate stonn sewer system ("MS4"), which includes making capital improvements, overseeing maintenance and operations, and conducting activities to ensure compliance with all state and federal regulations associated with the Clean Water Act and the City's National Pollutant Discharge Elimination System ("NPDES") pennit; and
WHEREAS, the City's MS4 is made up of a comprehensive drainage infrastructure system that includes man-made drainage elements such as curbs and gutters, ditches, culverts, pipelines, manholes, catch basins (inlets) and outfall structures; and WHEREAS, the City, through its MS4, provides storm drainage services ("Services") that include, but are not liinited to, collecting, conveying, protecting, treating, and managing storm water runoff from improved parcels within the City; and WHEREAS, in 1992, the City adopted a $12 per residence storm drain service charge to conserve and protect the MS4 from the burden placed on it by the increasing flow of nonpoint source runoff and to otherwise meet the requirements of the Clean Water Act, EPA regulations and the City's NPDES permits, which charge has not been increased since its inception; and WHEREAS, the City does not currently have adequate funding to fully finance the system needs of its MS4, and in order to finance the infrastructure, maintenance, and regulatory oversight of the MS4 and the provision of services, the City Council has determined that there is a need to adopt an additional fee ("Clean Water and Storm Protection Fee"), in compliance with Article XIIID of the California Constitution (Proposition 218), to cover the costs associated with capital improvements, operations and maintenance, and regulatory compliance needs of the MS4; and WHEREAS, on March 5, 2019, the City Council approved the Fee Report for the 2019 Clean Water and Storm Protection Fee Report ("Fee Report") that sets forth the basis and the amount of the Clean Water and Storm Protection Fees on various parcels of land in order to finance, in compliance with Article XIIID of the Constitution, the clean water and storm protection program needs and is attached hereto as Exhibit A; and
WHEREAS, the City Council on March 5, 2019 adopted Resolution No. 19-022 initiating proceedings in accordance with Article XIIID of the Constitution, approving the Fee Report, and setting the date of May 7, 2019 for a public hearing and directing the mailing of a notice to the owners of real property affected by the proposed Clean Water and Storm Protection Fee, which included a description of the proposed Clean Water and Storm Protection Fee, the amount to be charged, the total amount to be collected, and the right of property owners to protest the Clean Water and Storm Protection Fee;and
WHEREAS, the City Council on March 5, 2019 adopted Resolution No. 19-023 establishing procedures for conducting a ballot proceeding in accordance with Article XIIID of the Constitution; and
WHEREAS, the Clean Water and Storm Protection Fee is a property-related fee, subject to Proposition 218.
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WHEREAS, the City mailed notices of a public hearing on March 19, 2019 and conducted said public hearing on May 7, 2019 and heard testimony from residents and property owners regarding the proposed Clean Water and Stonn Protection Fee, and a majority protest was found not to exist; and
WHEREAS, the City Council introduced this Ordinance on May 7, 2019, after a duly noticed public hearing; and
WHEREAS, Article XIIID of the Constitution requires that the property-related fees defined in the Fee Report and included in this Ordinance shall not be imposed unless and until that fee is submitted and approved by a majority vote of the property owners of the property subject to the Clean Water and Storm Protection Fee; and
WHEREAS, upon introduction of this Ordinance, the City Council will direct that it be submitted to the affected prope1iy owners in a mail ballot proceeding in accordance with Article XIIID of the Constitution, Section 53755.5 of the Government Code, and City of Cupertino Resolution No. 19- 023 .

NOW, THEREFORE, the Council of the City of Cupertino does ordain as follows:

SECTION ONE - Chapter 3.38 of the Cupertino Municipal Code is hereby established to read as follows:

3.38.010 Purpose of the Fee-Limitation of Use.

A. The purpose of the Clean Water and Storm Protection fee is to conserve and protect the City's essential values of maintaining our aging storm drainage infrastructure, encouraging groundwater replenishment, and maintaining a sustainable environment in accordance with the Clean Water Act, EPA regulations and the City's NPDESpennits.

B. The specific purpose of the Clean Water and Storm Protection fee established pursuant to this chapter is to derive fee revenue, which shall only be used for the acquisition, construction, reconstruction, maintenance, and operation of the storm drainage system of the City or related green infrastructure or other activities required by the City's NPDES pennits, to repay principal and interest on any bonds which may hereafter be issued for said purposes, to repay loans or advances which may hereafter be made for said purposes, and for any other purpose set forth in Section3.38.160.

C. The Clean Water and Storm Protection fee is imposed pursuant to Articles Xill C and D of the California Constitution, Government Code Sections 38900 - 38901 and 53755 - 53756, and Health and Safety Code Section 5471 - 5473.11 .

D. Proceeds from the Clean Water and Storm Protection fee will be deposited in the "environmental management / clean creeks fund" created by Section 3.36.170 of Chapter 3.36 of the Municipal Code (Storm Drainage Service Charge) as the "storm drainage service charge fund" and subsequently renamed, and may be comingled with the revenues of the City's storm drainage service charge because they are authorized to be used for the samepurposes.

3.38.020 Definitions.

Except where the context otherwise requires, the following definitions in this section shall govern the construction of this chapter:
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A "City" means and includes all territory lying within the municipal boundaries of the City of Cupertino as presently existing plus all territory which may be added thereto during the effect term of the ordinance codified herein.

B. "Condominium" means a parcel that is an individually-owned single residential unit attached to an w1divided or joint ownership of the remaining p01tion of the prope1ty. The "Condominium 1" category refers to a condominium complex where each residential unit has no other units above or below it. The "Condominium 2+" refers to a condominium complex where residential units are built above or below other residential units.

C. "Director of Public Works" means the Director of Public Works and his/her duly authorized agents and representatives.

D. "Fee Report" means the report prepared by SCI Consulting Group dated February 2019 which was approved by the City Council on March 5, 2019 in Section 2 of Resolution No. 19-022. The Fee Report sets forth the rate structure and methodology of apportionment of the fee to various categories of parcels and shall be the basis for the Clean Water and Storm ProtectionFee.

E. "Director of Administrative Services" means the Director of Administrative Services of the City of Cupertino and his/her duly authorized agents and representatives.

F. "Impervious Area" means any part of any parcel that has been modified by the action of any person in a manner which reduces the land's natural ability to absorb and hold storm and surface water.

This includes, but is not limited to, activities such as: grading of property, the creation of any hard surface area which either prevents or retards the entry of water into the soil mantle, or the hardening of an existing surface which causes water to flow at an increased rate. Common impervious areas include, but are not limited to, roof tops, walk-ways, patios, driveways, parking lots or storage areas, concrete or asphalt paving, gravel roads, or any cleared, graded, paved, graveled, or compacted surface or paved earthen materials used for vehicular travel, or areas covered with surfaces which similarly impede the natural infiltration of surface water into soil mantle. Impervious area can be expressed as a percentage of a parcel's total size.

G. "Maintenance and operation" means the administration, operation, maintenance and repair of any facility in the City's storm drain system, including, but not limited to:

1. Items ordinarily recognized as capital items ( e.g., acquisition of interests in land) when reasonably necessary to support operations;

2. Street sweeping, catch basin cleaning, and capture and removal of trash from the storm drain system;

3. Replacement of portions of existing facilities damaged or destroyed as a result of accident or natural disasters or found to be of inadequate size or condition;

4. Damages or settlements paid in the course of, or because of, threatened or actual legal actions related to the City's storm drain system or non-point sourceprogram;

5. Regional monitoring, permit fees, public education and awareness programs regarding the City's storm drain system and the City's nonpoint sourceprogram;

6. Management of the City's non-point source program including, but not limited to, BMP manuals, public outreach, printed materials, City staff and legal costs relatedthereto. 3 269
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H. "Multi-Family Residential" means parcels improved or used for a residence for five or more ( families living independently of each other and doing their own cooking and which is not separately assessed by the county tax assessor for each such family dwelling. This term is synonymous with "apartment."
I. "Open Space" means land that is substantially in a natural condition and includes agricultural or other lands that demonstrate storm water absorption equal to or greater than natural conditions.

J. "Parcel" means a unit of land which is designated by the tax assessor of Santa Clara County for property tax purposes.

K. "Rate Category" means a group of parcels that are of similar imperviousness characteristics and are charged the same rate. Single-Family Residential Parcels are categorized by size; Non-SingleFamily Parcels are categorized by impervious percentage ranges.

L. "Single-Family Residential" means parcels, other than multi-family parcels, improved or used solely as a residence for one, two, three or four families living separately in separate dwelling units.

M. "Storm drainage system" means any pipe, conduit, or sewer of the City designed or used for the collection, conveyance and management of storm and surface waters and drainage including unpolluted cooling water and unpolluted industrial process water but excluding any community sanitary sewer system.

N. "Vacant ( developed)" means a parcel which has been altered from its natural condition through grading or compaction activity or in another manner which reduces the land's natural ability to absorb and hold storm and surface water without any structure existing upon it. (

3.38.030 Determination and Imposition of Fee for Fiscal Year 2019-20.

For purposes specified in Section 3.38.010, the Clean Water and Storm Protection fees established pursuant to this chapter are hereby prescribed and imposed, and shall be paid to and collected by the City, for services and facilities furnished by the City in connection with its storm drainage system to or for each parcel which is benefited directly or indirectly by said storm drainage system or any part thereof, or from which any storm water is conveyed or discharged directly or indirectly into the storm drainage system. Said fee is imposed annually and will be assessed and collected as follows:

A. Single-Family Residential Class
Category 1-t Parcel Size (acres) Annual Fee per Parcel -., - Small Under 0.13 $36.58
Medium 0.13 to 0.22 $44.42
Large 0.23 to 0.40 $55 .58
Extra Large Over 0.40 $106.42
Condominium 1 Na $36.58'
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I Condominium 2+ Na $11.99
B. Non-Single-Family Residential Class
Category' Annual Fee
per 0.10 Acre I of Parcel Size2
Multi-Family $30.88
Commercial / Retail / fudustrial $40.38
Office $30.88
Church I fustitutional $26.13
School with play field $19.00
Park $7.13
Vacant ( developed) $2.38
Rate Structure Notes:

1. The Rate Category for any Non-Single-Family parcel shall be assigned by the description of the land use of the parcel. For Non-Single-Family land uses that do not fit the descriptions in Table 5 of the Fee Report (for example, mixed use parcels), the rate with the nearest percent impervious area shown in Table 5 of the Fee Report shall be assigned to a parcel.

2. Non-Single-family fees are calculated in 0.1-acre increments. For example, an office parcel is charged at $30.88 for each tenth of an acre or portion thereof.

C. Non-single-family parcels and condominium parcels that comply with the version of Provision C.3 (New Development and Redevelopment Requirements) of the City's NPDES permit that is applicable at the time of building permit issuance shall have their fees reduced by 25% in recognition of the reduced impact on the City's storm drainage system inherent in C.3 compliance, as documented in the Fee Report (Low Impact Development Rate Adjustment). Other single-family residential parcels do not qualify for this rate reduction. C.3 compliance will be determined on a case-by-case basis by the Director of Public Works, who may also establish procedures to verify and validate such compliance on a periodic basis.

D. For non-single-family residential parcels that have both improvements and significant open space areas (described in the Fee Report as "hybrid parcels"), the chargeable acreage shall be adjusted downward in recognition that the open space areas do not increase the need for the fee. 5 271
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E. Open space and agricultural parcels are not subject to the Clean Water and Storm Protection fees.

3.38.040 Annual Review of Fee.

Commencing with Fiscal Year 2020-21, the City Council shall, by resolution, annually determine the Clean Water and Storm Protection Fee in accordance with the following:

A. In no event shall the rate for any category of property be increased beyond the rate approved by a majority vote of property owners subject to the Clean Water and Storm Protection fee. Commencing in Fiscal Year 2020-21 , the amount of the Clean Water and Storm Protection Fee may be increased by an amount equal to the change in the Consumer Price Index for all Urban Consumers for the area including Santa Clara County (the "CPI"), including all items as published by the U.S. Bureau of Labor Statistics as of December of each succeeding year, not to exceed a maximum increase of three percent (3%) in any single year. Adjustments will only occur if actual additional costs are incurred.

B. The Clean Water and Sto1m Protection fee shall not be deemed to be increased in the event the actual fee upon a parcel in any given year is higher due to a change in use of the subject parcel or an increase in the amount of the impervious area of the subject parcel.

C. In any year in which the City Council does not change the Clean Water and Storm Protection fee rate, pursuant to the voter-approved CPI allowable annual increase, the previously adopted fee shall continue in full force and effect for the next fiscal year.

D. The City Council shall not be required to enact a CPI increase each year. 3.38.040.A.

3.38.050 Various Actions.

Without a vote of the property owners, in any year the City Council may do any and all of the following: (a) discontinue the Clean Water and Storm Protection fee; (b)reduce the rate for all parcel categories; or ( c) increase the rate up to or below the maximum voter-authorized rate if it has been previously set below such rate.

3.38.060 Effective Date of Fees.

The Clean Water and Storm Protection fees shall become effective on July 1, 2019.

3.38.070 Fees Collected with General Taxes.

A. Subject to the exceptions hereinafter set forth, the City elects, as an alternative procedure for the collection of Clean Water and Storm Protection fees prescribed or imposed by the provisions of this chapter, to have all such Clean Water and Storm Protection fees for each fiscal year collected on the tax roll in the same manner, by the same persons and at the same time as, and together with and not separately from, its general taxes.

B. The Director of Public Works is hereby directed to prepare and file with the City Clerk, on or before the fifteenth day of June of each year, or such other date or dates as the City Council may specify by resolution, a written report containing a description of each and every parcel of real property receiving the benefit of the storm drainage system mentioned in this chapter, except for those parcels the fees for which are not to be collected on the tax roll, and the amount of the Clean Water and Storm Protectionfees 6 {
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for each parcel for the forthcoming fiscal year, computed in confonnity with the fees presc1ibed by the provisions of this chapter.

C. The City Clerk shall cause notice of the filing of said report and of a time and place of hearing thereon to be published, p1ior to the date for hearing, in a newspaper of general circulation printed and published within the City. The publication of said notice shall be once a week for two consecutive weeks. Two publications in a newspaper published once a week or more often, with at least five days intervening between the respective publication dates, not counting such publication dates, are sufficient.

The period of notice commences upon the first day publication and tenninates at the end of the fourteenth day.

D. At the time stated in the above-mentioned notice, the City Council shall hear and consider all objections or protests, if any, to the report referred to in said notice, and may continue the hearing from time to time. If the Council finds that protest is made by owners of a majority of separate parcels of property described in the report, then the report shall not be adopted, and fees shall be collected separately from the tax roll and shall not constitute a lien against any parcel orparcels.

E. Upon the conclusion of the hearing, the City Council may adopt, revise, change, reduce, or modify any fee or ove1rule any or all objections and shall make its determination upon each fee as described in said report, which determination shall be final.

F. 1. On or before the first day of August of each year following such final determination, the City Clerk shall file with the Finance Director a copy of the report with a statement endorsed thereon over the City Clerk's signature that it has been finally adopted by the CityCouncil.

2. The Finance Director shall thereupon cause said fees to be placed on the prope11y tax roll and collected by the County for the City, as hereinafter provided. The County's tax collector shall enter the amounts of the fees against the respective parcels as they appear on the current assessment roll. If the property is not described on the roll, the County's tax collector may enter · the description thereon, together with the amounts of the fees as shown in the report.

G. The amount of the fees shall constitute a lien against the parcel against which the fee has been imposed as of noon on the first Monday in March immediately preceding the date of the levy.

H. The tax collector shall include the amount of the fees on bills for taxes levied against the respective parcels. Thereafter the amount of the fees shall be collected at the same time and in the same manner and by the same persons as, together with and not separately from, the general taxes for the City, and shall be delinquent at the same time and thereafter be subject to the same delinquency penalties.

I. All laws applicable to the levy, collection and enforcement of general taxes of the City including, but not liinited to, those pertaining to matters of delinquency, collection, cancellation, refund and redemption, are applicable to such fees.

J. The tax collector may, at the tax collector's discretion, issue separate bills for such fees and separate receipts for collection on account of such fees.

K. If any parcels receiving benefit from the storm drainage system are omitted from the abovementioned report or said tax roll, either because the fee therefor shall not have yet been ascertained by the City as of the date of said report, or for any other reason, the Clean Water and Storm Protection fee for such parcels shall be collected in the manner provided elsewhere in this chapter. If the fee for any parcels, as shown on said report for the forthcoming fiscal year, should be less than what should be the 7 273
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fee therefor under the provisions of this chapter, the balance of such fee shall be collected in the mam1er ( provided elsewhere in this chapter. If, however, the fee for any parcels shown in the report and collected on the tax roll should exceed the correct fee for such parcels for the fiscal year, the Finance Director shall refund the excess amount so collected.

3.38.080 Payment of Balance of Fee.

A If the fee for any parcels placed on the tax roll, or for any parcels collected based upon · billing, was less than what should be the fee therefor under the provisions of this chapter due to error, the balance of said fee shall be collected by a bill or invoice based on a detailed statement showing the basis of the calculations, the location of the parcels and other relevant information, and prepared on or after January 1st for the preceding six months from July to December during which a discrepancy between the amount collected and the correct fee is discovered, and on or after July 1st for the preceding six months from January to June during which such a discrepancy is discovered. The Finance Director shall mail said bill or invoice to the person or persons listed as the owners of the parcels on the last equalized assessment roll of the County at the address shown on such assessment roll or to the successor in interest of such owner if the name and address of such successor in interest is known to the Finance Director.

Failure to mail any such bill or invoice, or failure of any owner to receive any such bill or invoice shall not excuse the owner of any parcels from the obligation of paying the balance of any Clean Water and Storm Protection fee for any parcels owned by him or her.

B. The interested owner may, at any reasonable time, review the detailed statement prepared by the Finance Director.

C. The balance of the Clean Water and Storm Protection fee for such parcels shall be due and ( payable on the date the bill or invoice referred to in this section is mailed.

3.38.090 Collection of Fees Omitted from Tax Roll-Billing.

A The Finance Director shall semi-annually, on or after July 1st, prepare or cause to be prepared a detailed statement containing the basis of the calculations, the location of the parcels and other relevant information, showing the total monthly fee for the preceding six months from January to June and on or after January 1st, for the preceding six months from July to December for any parcels the fee for which should be collected on the tax roll pursuant to Section 3.38.070A but was omitted from the report referred to in Section 3.38.070B, or parcels the fee for which is collected pursuant billing.

B. An invoice may be rendered for a period of less than six months if the commencement dateof fees is other than July 1st or January 1st, as may be the case with newaccounts.

C. On the basis of the statement, the Finance Director shall prepare a bill or invoice showing the total fee for such six months or less, and shall mail said bill or invoice to the person or persons listed as the owners of the parcels on the last equalized assessment roll of the County at the address shown on such assessment roll, or to the successor in interest of such owner if the name and address of such successor in interest is known to the Director. Failure to mail any such bill or invoice, or failure of any owner to receive any such bill or invoice shall not excuse the owner of any parcels from the obligation of paying any Clean Water and Storm Protection fee for any parcels owned by him or her.

D. The interested owner may, at any reasonable time, review the detailed statement prepared by the Finance Director.
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E. The Clean Water and Sto1m Protection fee for such parcels shall be due and payable immediately upon receipt of the bill or invoice referred to in this section.

3.38.100 Payment of Fees-Owner Responsibility.

The owner of any parcel is and shall be responsible for payment of any and all Clean Water and Stonn Protection fees applicable to parcels owned by him or her. It shall be and is hereby made the duty of each such owner to provide to the Finance Director information sufficient to calculate the land area of the parcels within thirty days after request of the Finance Director and ascertain from the Finance Director the amount and due date of any such fee applicable to parcels owned by such owner and to pay such fee when due and payable. It also shall be and is hereby made the duty of all owners of all parcels to inform the Finance Director immediately of all circumstances, and of any change or changes in any circumstances, which will in any way affect the applicability of any fee. In particular, but not by way of limitation, an owner of any parcel shall immediately inform the Finance Director of any sale or transfer of such parcel by or to such owner.

3.38.110 Payment of Fees-Location.

Except as otherwise provided elsewhere in this chapter, all Clean Water and Storm Protection fees shall be payable at the office of the Finance Director in the City Hall of the City.

3.38.120 Payment of Fees-Delinquency Date.

Except as otherwise provided elsewhere in this chapter, each Clean Water and Storm Protection fee shall be delinquent if not paid on or before the fortieth day immediately following the date upon which such Clean Water and Storm Protection fee became due and payable.

3.38.130 Penalty for Delinquency.

Except as otherwise provided elsewhere in this chapter, whenever any Clean Water and Storm Protection fee becomes delinquent, there shall be imposed a penalty equal to one hundred percent of the amount as set forth under Section 3.38.030.

3.38.140 Disputed Fees.

If any owner disputes the amount of the fee in any bill or invoice, the owner shall, within thirty days from and after the date such bill or invoice is mailed, and no later, file a claim with the Finance Director accompanied by detailed supporting factual data in support of the claim. It shall be the duty of each such owner to prove to the Finance Director, that such fee is in error and the correct amount thereof.

If the Finance Director determines that the bill or invoice was in error, the Finance Director shall correct said bill. Failure to dispute the amount of the fee in accordance with this section shall be deemed acceptance of the correctness of the fee.

3.38.150 Fiscal Accountability
A. The City shall retain an independent auditor to conduct an annual audit of the Clean Water and Storm Protection Fee and environmental management/ clean creeks fund as part of its comprehensive annual financial report. The auditor shall include an accounting of the revenue received from the fee and expenditures thereof in the audited financial statements. The auditor's report shall be presented to the City Council and made available to the public. The Director of Administrative Services or the Director of Public Works shall prepare and present to the City Council an annual report in conjunction withthe 9 275
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annual audit that reviews the status and performance of the programs, services and projects funded wholly ( or paiiially with proceeds of the Clean Water and Stonn Protection Fee.

B. The City Council shall either select a citizen's oversight committee or assign oversight duties to a pre-existing oversight c01mnittee to review and report annually on the receipt of revenue and expenditure of funds from the storm drainage service charge fund authorized by this chapter.

3.38.160 Special Fund-Restricted Use of Revenues.

A. All revenues collected pursuant to the provisions of this chapter shall be placed into a special fund, which is known as the "environmental management/ clean creeks fund, " created by Section

3.36.170 of Chapter 3.36 of the Municipal Code (Storm Drainage Service Charge). Such revenues may be used for the purpose specified in Section 3.38.010, and for no other purpose; provided, however, that moneys deposited in the fund may be used for direct and administrative costs of the City in collecting the Clean Water and Storm Protection fees imposed by this part and for direct and indirect overhead costs of the City in perfomling any tasks, including, but not limited to, calculation of the benefits received by properties from the storm drainage system.

B. As used in this section, "direct costs" means wages and salaries and costs of employee fringe benefits incurred by the City, and rnileage reimbursement attributable to said collection activities. As used in this section, "administrative costs" includes, but is not limited to all costs for computer service, materials, postage, supplies and equipment.

C. Notwithstanding subsections 3.38.160A and 3.38.160B, interest on revenues in the environmental management / clean creeks fund may be credited to the general fund of the City or to any ( other fund in the discretion of the City Council.

3.38.170 Refunds.

Whenever any refunds should become owing by virtue of any relief granted by the City Council pursuant to the provisions of Section 3.38.140 or by virtue of any error made in ascertaining the fee applicable to any parcels, the Finance Director is authorized to make such refunds and to expend for such purpose the moneys in the environmental management I clean creeks fund. Notwithstanding the provisions of Section 3.38.140, any claim for refund for fees collected under Section 3.38.070 must be made within one year after the date bills for taxes are received by the owner. The City shall not be liable for interest or any amount detemlined to be refundable.

3.38.180 Inspection of Parcels Authorized.

The Director of Public Works, the Finance Director and their authorized representatives are hereby given power and authority to enter upon and within any parcels to ascertain the nature of such parcels; to inspect, observe, and review the benefit received from the storm drain system as may be allowed by law.

3.38.190 Payment of Delinquent Fees-City Enforcement Powers.

A. Notwithstanding other remedies, in the event of the failure of any owner to pay when due any Clean Water and Storm Protection fees applicable to parcels owned by such owner, the City may enforce payment of such delinquent fees by instituting action in any court of competent jurisdiction to collect any fees which may be due and payable in the same manner as any other debts owing to the City may be , collected. \
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B. Any and all delinquent payments may be placed on the tax roll, and collected with prop.erty taxes, as provided in Section 3.38.070.

C. Such other action may be taken as may be autho1ized by law and by the CityCouncil.

D. Remedies under this section are in addition to and do not supersede or limit any and all other remedies, civil and criminal.

SECTION TWO - CEQA EXEMPTION
The City Council finds, based on its own independent judgement, that the proposed amendments to the Cupertino Municipal Code are statutorily exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080(b )(8) and CEQA Guidelines 15273(a) - Rates, Tolls, Fares, and Charges and categorically exempt pursuant to CEQA Guidelines Section 15301. A Notice ofExeniption will be filed with the County Clerk.

SECTION THREE - INCONSISTENCIES REPEALED
This Ordinance is intended to be controlling on the authority to establish the Clean Water and Stonn Protection fee, and shall supersede all prior ordinances, resolutions, rules or regulations that in conflict wherewith. Any provision of the Cupertino Municipal Code, or appendices thereto, or any other ordinances of the City inconsistent herewith, are repealed only to the extent of such inconsistencies and no further.

SECTION FOUR- IMPLEMENTATION
The City Manager is hereby authorized and directed to take any action and sign any documents necessary to implement this ordinance.

SECTION FIVE - SEVERABILITY
If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held by a court of competent jurisdiction to be invalid, such a decision shall not affect the validity of the remaining portions of the Ordinance. The Council of the City of Cupertino hereby declares that they would have passed this Ordinance and each section or subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid.

SECTION SIX- EFFECTIVE DATE; PUBLICATION.

The City Clerk is directed to post and publish this ordinance in accordance with law in a newspaper of general circulation printed and published in the County of Santa Clara, or as otherwise required by law.

This ordinance shall take effect as provided by Government Code Section 36937. 11 277
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INTRODUCED at a regular meeting of the City Council of the City of Cupertino on the 7th day of May 2019 and enacted at a regular meeting of the City Council of the City of Cupertino after ce1iification of the ballot results on the 16°1 day of July 2019.

Members of the City Council:

AYES:

NOES:

Scharf, Chao, Paul, Sinks, Willey
None
ABSENT: None
ABSTAJN: None
SI~ 1_/ J~i\~~
Steven Scharf, Mayor Date \
City of Cupertino
ATTEST:

Ci4-r: . 9 ,l, l'j,f- &-- ( t 1-
Date
Grace Schmidt, City Clerk
APPROVED AS TO FORM:
"-· 1~A-- '--~ ?(3aL,q l
Heather Minner, City Attorney Date
Exhibit A (Attachment Bl) - Fee Report for the 2019 Clean Water and Stonn Protection Fee Report (
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ST ATE OF CALIFORNIA )

COUNTY OF SANTA CLARA )

CITY OF CUPERTINO )
I, GRACE SCHMIDT, City Clerk and ex-officio Clerk of the City Council of the City of Cupertino, California, do hereby certify the attached to be a true and con-ect copy of Ordinance No. 19-2183, which was enacted on July 16th, 2019, and that it has been published or posted pursuant to law (G.C. 40806).

IN WITNESS WHEREOF, I have hereunto set my hand and seal this 16th day of July, 2019.

GRACE SCHMIDT, City Clerk and Ex-officio Clerk
of the City Council of the City of Cupertino, California 279
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Attachment B 1

CITY OF C UPERTINO

FEE REPORT
2019 CLEAN WATER AND STORM PROTECTION FEE
FEBRUARY 2019
PURSUANT TO THE ARTICLES XII IC & 0 OF THE CALIFORNIA CONSTITUTION, AND THE GOVERNMENT (ODE SECTIONS 38900 - 38901 ET AL.

ENGINEER OF WORK:

SCIConsultingGroup
4745 MANGELS BOULEVARD
FAIRFIELD, (AUFORNIA 94534
PHONE 707.430.4300
FAX 707.430.4319
WWW SCI-CG.COM
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CITY OF CUPERTINO

CITY OF CUPERTINO

CITY COUNCIL
Steven Scharf, Mayor
Liang Chao, Vice Mayor
Darcy Paul, Councilmember
Rod Sinks, Councilmember
Jon Willey, Councilmember

INTERIM CITY MANAGER
Timm Borden

PUBLIC WORKS DEPARTMENT
Roger Lee, Acting Director

ENGINEER OF WORK
Jerry Bradshaw, SCI Consulting Group
2019 CLEAN WATER AND STORM PROTECTION FEE REPORT
FEBRUARY 2019
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PAGE ii

TABLE OF CONTENTS
INTRODUCTION AND EXECUTIVE SUMMARY .............................................................................. 1 OVERVIEW ...... .. ....................... ......... ....... ...... .. .. ... ..... ..... ......... .. ..... ....... .. .. .......... ..... ... ... 1 CITY'S FACILITIES .. .................... ... .... .. .............. .. ...... .. .. ............ ........ ...... .. .... ... .. .. .... ........ 1 STORMWATER FUNDING BACKGROUND .. ...... .. .. .............. ...... .. ... .......... ................ .............. 2 LEGAL REQUIREMENTS OF STORMWATER FEE ................ .. ...... .. .. .......... ........ .. .... .. .. ........... 2 FACILITIES AND SERVICES ...................................................................................................... 4 FINANCIAL NEEDS AND REVENUE REQUIREMENTS .................................................................... 5 SUMMARY OF CLEAN WATER AND STORM PROTECTION SYSTEM NEEDS ... ......... .. ................ 5 ANNUAL REVENUE REQUIREMENT ... ...... ..... ......... ... ...................... .................... ................. 6 RATE STRUCTURE ANALYSIS .................................................................................................. 7 SINGLE-FAMILY RESIDENTIAL PARCELS AS BENCHMARK .. .............................. ........... .......... 7 NON-SINGLE-FAMILY RESIDENTIAL PARCELS .. .... .. .. ...................... .............. ............ .......... . 9 Low IMPACT DEVELOPMENT RATE ADJUSTMENT.. .. .. ........................................ .. .. .... ........ 11 STORMWATER FEE CALCULATION .......... .. ..... .. ........ ..................... .. ............................ .. .. . 12 ANNUAL COST INDEXING ........... .. ... .. .. .. ....... -...... .. ........... .............. ... .. ... .................... ...... 14 MANAGEMENT AND USE OF STORMWATER FUNDS .. .... ...... .. .. ................ ........ ...... ...... ........ 14 APPENDICES ....................................................................................................................... 15 APPENDIX A-REGULATORY ASSESSMENT & COST AND REVENUE ANALYSIS ...... ......... ...... 15 APPENDIX B-PERCENTAGE OF IMPERVIOUS AREA ESTIMATIONS .. .................. .. .. ...... .. ...... 28 APPENDIX C-STORMWATER RATES FROM OTHER MUNICIPALITIES ................... ............ ... 30

CITY OF CUPERTINO
2019 CLEAN WATER AND STORM PROTECTION FEE REPORT
FEBRUARY 2019
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LIST OF TABLES
TABLE 1 - SUMMARY OF PROGRAM REVENUES ................ .. ....... .. .. .. .. .................... ................... 5 TABLE 2 - SUMMARY OF PROGRAM COSTS ...... .. ............ .................... .. ............................ .. ...... 6 TABLE 3-ESTIMATE OF ANNUAL REVENUE REQUIREMENT ............... ...... .. ...... .. .. .................. .. .. 6 TABLE 4- SUMMARY OF SINGLE-FAMILY RESIDENTIAL PARCELS .. .......... .... ... .......................... .. 9 TABLE 5- SUMMARY OF NON-SFR PARCELS ........ .... .... .................. ......... ........................... .. . 10 TABLE 6-Low IMPACT DEVELOPMENT RATE ADJUSTMENT ANALYSIS .............. ....................... 12 TABLE ?-PROPOSED 2019 CLEAN WATER & STORM PROTECTION FEE SCHEDULE ................. 13 TABLE 8- PERCENT OF IMPERVIOUS AREA FROM STORM DRAIN MASTER PLAN ........................ 28 TABLE 9-PERCENTAGE OF IMPERVIOUS SURFACE FROM STORM DRAIN MASTER PLAN ............ 29 TABLE 10 - RECENT STORM DRAIN BALLOT MEASURES ..................................... ..................... 31 TABLE 11-SAMPLE OF RATES FROM OTHER MUNICIPALITIES ... .. ..................... ...... .. .. .. .. .. .. .. .. . 32

CITY OF CUPERTINO
2019 CLEAN WATER AND STORM PROTECTION FEE REPORT
FEBRUARY 2019
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