HC 04-09-2015 MINUTES OF THE REGULAR MEETING OF THE
CUPERTINO HOUSING COMMISSION
Thursday, April 9, 2015
CALL TO ORDER:
The regular meeting of the Cupertino Housing Commission was called to order by Chair Shirley
Chu at 9:05 a.m.
PLEDGE OF ALLEGIANCE:
Chair Shirley Chu lead the pledge of allegiance.
ROLL CALL of each Housing Commissioner:
Chair Shirley Chu (present), Vice Chair Harvey Barnett(present), Commissioner Krista Wilson
(present), Commissioner Nicole Maroko (present), and Commissioner Rajeev Raman (present)
ORAL COMMUNICATIONS:
Chair Shirley Chu read the following paragraph to the audience.
This portion of the meeting is reserved for persons wishing to address the Commission on any
matter not on the agenda. Speakers are limited to three (3) minutes per person. In most cases, State
law will prohibit the Commission from making any decisions with respect to a matter not listed on
the agenda. Chair Shirley Chu asked the members of the audience if anyone wished to speak on
items not on the agenda. No members of the public spoke on this item.
NEW BUSINESS:
Chair Shirley Chu announced that there was no new business at this time.
APPROVAL OF MINUTES:
Chair Shirley Chu made a motion to approve the Housing Commission February 26, 2015 minutes as
submitted by staff. Commissioner Nicole Maroko seconded the motion. The motion-passed by a
final vote of 5-0.
Motion: Chair Shirley Chu
Second: Commissioner Nicole Maroko
Vote Members of the Housing Commission
AYES: 5 (Chu, Barnett, Wilson, Maroko, Raman)
NOES: 0
ABSENT: 0
ABSTAIN: 0
FINAL VOTE: 5-0
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STAFF AND COMMISSION REPORTS:
Chair Shirley Chu asked the Housing Commissioner's and staff if there was any reports that they
would like to share. Staff notated that additional nexus study public comment letters were received
by various individuals and organizations and those comment letters were submitted to the Housing
Commission prior to the meeting.
PUBLIC HEARING:
Item No. 1
Nexus Study, Housing Mitigation Fees and Procedural Manual Update.
Chair Shirley Chu asked staff for a presentation on this item. The City's nexus study consultant and
City staff performed a PowerPoint presentation to the Housing Commission regarding this item.
After receiving staff's presentation, Chair Shirley Chu opened up the public comment for this item.
Four members of the public spoke on this item as follows:
1. Jessica Epstein from Silicon Valley Association of Realtors (SILVAR), requesting staff to have
more input with SILVAR throughout the nexus study update process. Wants to know what
percentage of development costs the proposed fees would be and the impact it would have on
market-rate developers. Wants to.see higher density multi-family housing vs. single family
ownership housing.
2. Dennis Martin from Building Industry Association (BIA) Bay Area, notated that BIA provided
written comments to the Housing Commission prior to the meeting. Does not feel consultant
nexus study reports are legally justifiable; however, if the City of Cupertino is going to adopt
updated housing mitigation fees they are recommending a hosing mitigation fee no higher
than$17.00/sq. ft. such as Sunnyvale and San Jose. Give an incentive for developers to build
affordable units. Allow a sufficient pipeline exemption. Look at other funding methods for
housing such as parcel tax,bonds and sales taxes.
3. Charisse Ma Lebron from Working Partnerships USA, strongly supports staff's
recommendations for both residential and non-residential fees. Notated they are well below
the maximum fees established by the nexus analyses. 30% of renters and 37% of owners
spend more than 30% of their gross income on housing in Cupertino according to the City's
Housing Element. Need to have strong commitment to affordable housing for Cupertino
residents, housing fees will allow the City to leverage other funding sources.
4. Geoff Paulson (Cupertino resident),need higher density housing in order to provide
affordable housing for younger working individuals. CPI may not be accurate methodology,
adopt bi-annual independent analysis which would provide a better methodology for fee
increases.
Chair Shirley Chu closed the public comment for this item and asked the Housing Commissioner's if
they wish to comment further. The Housing Commissioner's had additional comments and
questions as follows:
1. Commissioner Rajeev Raman had a question for the consultant, "Is there an assumption that
disposable gross income per household drives services and needs in Cupertino or the areal'
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Consultant responded that nexus study IMPLAN model counts all expenditures within Santa
Clara County not just the City of Cupertino. There is no double-counting or double-charging
in Cupertino with the nexus model assumptions. Commissioner Rajeev Raman had an
additional comment regarding fee structure for higher density vs. lower density housing.
Staff notated that staff's recommendations for both lower and higher density multi-family
attached housing was approximately 59% of the maximum supported by the nexus analysis.
Commissioner Rajeev Raman had an additional comment on retail and hotel vs.
office/industrial it seems to him that retail would have the higher impact, the retail fee should
be higher. Staff responded it is the policy of the City to encourage retail development as it is a
sales tax generator for the City.
2. Commissioner Harvey Barnett commented that he would like to see the higher density multi-
family attached housing fee lowered which should encourage more affordable housing to be
built in Cupertino. Staff responded that the rental portion of the housing mitigation program
is essentially a fee based vs. unit based component. The City cannot legally require market-
rate developers to build BMR rental units due to Palmer v. City of Los Angeles and Costa-
Hawkins Act.
3. Commissioner Nicole Maroko had a question, "Would charging a higher housing impact fee
actually generate more BMR units?" Staff responded that the current fee level is not high
enough to support meaningful and consistent new construction affordable housing units.
Chair Shirley Chu made a motion to Adopt Resolution No. 15-04 with an amendment to Exhibit A of
the Resolution regarding the proposed fee schedule changing the residential ownership and rental
multi-family attached condo/apartment/townhome category greater than 35 du/ac from$25.00/sq. ft.
to $20.00/sq. ft. Also amending the non-residential impact fee for the hotel category from$10.00/sq.
ft. to $15.00/sq. ft. Chair Shirley Chu continued the motion recommending that the City Council
receive and approve the methodology, for determination of the maximum fees that may be charged,
in the Residential Nexus Analysis and the Non-Residential Jobs-Housing Nexus Analysis, adopt the
updated Housing Mitigation Program Procedural Manual and proposed housing mitigation fees for
residential and non-residential development (office, retail, hotel research and development (R&D)
and industrial).
Motion: Chair Shirley Chu
Second: Vice Chair Harvey Barnett
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Vote Members of the Housing_Commission
AYES: 5 (Chu, Barnett, Wilson, Maroko, Raman)
NOES: 0
ABSENT: 0
ABSTAIN: 0
FINAL VOTE: 5-0
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OLD BUSINESS:
Chair Shirley Chu announced that there was no old business at this time.
ADJOURNMENT:
Chair Shirley Chu made a motion to adjourn to the regular meeting of the Cupertino Housing
Commission on May, 14 2015. Vice Chair Harvey Barnett seconded the motion.
Motion: Chair Shirley Chu
Second: Vice Chair Harvey Barnett
Vote Members of the Housing Commission
AYES: 5 (Chu, Barnett, Wilson, Maroko, Raman)
NOES: 0
ABSENT: 0
ABSTAIN: 0
FINAL VOTE: 5-0
Meeting adjourned at 10:10 a.m.
SUB �I�'TED BY:
C istopher Valenzuela,
City of Cupertino Senior Housing Planner
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