12-07-10 Bookmarked Packet.pdf
Table of Contents
Agenda3
November 1 City Council minutes
Draft Minutes8
Accounts Payable for period ending November 12, 2010
Draft Resolution20
Accounts Payable for period ending November 19, 2010
Draft Resolution26
Accounts Payable for period ending November 24, 2010
Draft Resolution41
Payroll for period ending November 12, 2010
Draft Resolution46
Payroll for period ending November 24, 2010
Draft Resolution47
Year-end Financial Reports for 2009-10
Staff Report48
CAFR 201050
Redevelopment Agency BFS173
Pedestrian/Bicycle Facilities (TDA) Grant audit192
Auditor's Report202
Investment Policy221
Appropriations Limit Report (GANN)225
RDA Annual Report229
Development Impact Fee Report230
Declare weeds a nuisance and set hearing date of January 18
for objections to proposed removal
Draft Resolution231
Alcoholic Beverage License, Whole Foods Market, 20955
Stevens Creek Boulevard.
Staff Report233
Application for ABC License234
Alcoholic Beverage License, Sushi Hana Bistro, 19068 Stevens
Creek Boulevard (Loree Shopping Center).
Staff Report239
Application for ABC License240
Citizens' Option for Public Safety (COPS) Grant
Staff Report241
Draft Resolution242
Application for a five year extension of permits issued for 10100
North Tantau Avenue.
Staff Report243
A. PC Reso 6617245
B. Aug. 23, 2007 Council Action Letter247
C. June 17, 2009 Council Action Letter268
1
D. Applicant's Request Letter269
E. PC Report Nov. 9, 2010270
F. Model Reso from Nov. 9, 2010 PC Report273
G. Draft PC Minutes of the 11-9-10 PC Meeting276
H. Approved Plans281
Buildings & Construction Ordinance.
Staff Report286
A. Draft Ordinance288
B. Draft Ordinance (strike-out version)352
C. Revisions to first reading of Draft Ordinance per City
Council direction428
2
AGENDA
CUPERTINO CITY COUNCIL ~ REGULAR MEETING
CUPERTINO REDEVELOPMENT AGENCY ~ REGULAR MEETING
10350 Torre Avenue, Community Hall Council Chamber
Tuesday, December 7, 2010
6:45 PM
CITY COUNCIL MEETING
PLEDGE OF ALLEGIANCE
ROLL CALL
CLOSED SESSION
POSTPONEMENTS
CEREMONIAL MATTERS –PRESENTATIONS
ELECTION OF MAYOR AND VICE MAYOR
1.Subject:Council members elect Mayor and Vice Mayor
2.Subject:Mayor and Vice Mayor take oath of office
3.Subject:Comments by Council members and new Mayor
4.Subject:Members of the audience are invited to speak
5.Subject:The public is invited to attend a reception in the lobby
WRITTEN COMMUNICATIONS
ORAL COMMUNICATIONS
This portion of the meeting is reserved for persons wishing to address the council on any matter
not on the agenda. Speakers are limited to three (3) minutes. In most cases, State law will
prohibit the council from making any decisions with respect to a matter not listed on the agenda.
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Tuesday, December 7, 2010Cupertino City Council
Cupertino Redevelopment Agency
CONSENTCALENDAR
Unless there are separate discussions and/or actions requested by council, staff or a member of
the public, it is requested that items under the Consent Calendar be acted on simultaneously.
6.Subject:November 1 City Council minutes
Recommended Action:Approve minutes
Draft Minutes
Page:8
7.Subject:Accounts Payable for period ending November 12, 2010
Recommended Action:Adopt Resolution No. 10-219
Draft Resolution
Page:20
8.Subject:Accounts Payable for period ending November 19, 2010
Recommended Action:Adopt Resolution No. 10-220
Draft Resolution
Page:26
9.Subject:Accounts Payable for period ending November 24, 2010
Recommended Action:Adopt Resolution No. 10-221
Draft Resolution
Page:41
10.Subject:Payroll for period ending November 12, 2010
Recommended Action:Adopt Resolution No.10-222
Draft Resolution
Page:46
11.Subject:Payroll for period ending November 24, 2010
Recommended Action:Adopt Resolution No. 10-223
Draft Resolution
Page:47
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Tuesday, December 7, 2010Cupertino City Council
Cupertino Redevelopment Agency
12.Subject:Year-end Financial Reportsfor 2009-10
Recommended Action:Accept Financial Reports for fiscal year ended June 30, 2010
Staff Report
CAFR 2010
Redevelopment Agency BFS
Pedestrian/Bicycle Facilities (TDA) Grant audit
Auditor's Report
Investment Policy
Appropriations Limit Report (GANN)
RDA Annual Report
Development Impact Fee Report
Page:48
13.Subject:Declare weeds a nuisance and set hearing date of January 18 for objections to
proposed removal
Recommended Action:Adopt Resolution No. 10-224
Draft Resolution
Page:231
14.Subject:Alcoholic Beverage License, Whole Foods Market, 20955 Stevens Creek Boulevard
Recommended Action:Approve application for Off Sale General
Staff Report
Application for ABC License
Page:233
15.Subject:Alcoholic Beverage License, Sushi Hana Bistro, 19068 Stevens Creek Boulevard
(Loree Shopping Center)
Recommended Action:Approve application for On-Sale Beer and Wine for a Bona Fide
Public Eating Place
Staff Report
Application for ABC License
Page:239
16.Subject:Citizens' Option for Public Safety (COPS) Grant
Recommended Action:Adopt Resolution No. 10-225to approve the 2010-11 COPS grant
funding request
Staff Report
Draft Resolution
Page:241
ITEMS REMOVED FROM THE CONSENT CALENDAR(above)
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Tuesday, December 7, 2010Cupertino City Council
Cupertino Redevelopment Agency
PUBLIC HEARINGS
17.Subject:Application for a five year extension of permits issued for 10100 North Tantau
Avenue
Recommended Action:Consider approving a five year extension to a previously approved
project to construct a 10,582 square foot retail building and a one-level parking garage.
Description:Application M-2010-06; Applicant Alanna Schroeder / Four Corners Properties
(Rocktino Fee, LLC); Location 10100 North Tantau Avenue, APN 316-19-061
Application Summary: Modification to the previously approved Use Permit (U-2007-03),
Architectural & Site Approval (ASA-2007-05), Exception to the Heart of the City Specific
Plan (EXC-2007-08), Tentative Map (TM-2007-08), and Tree Removal Permit (TR-2007-03)
for the purpose of extending the expiration date of the approvals for five years
Staff Report
A. PC Reso 6617
B. Aug. 23, 2007 Council Action Letter
C. June 17, 2009 Council Action Letter
D. Applicant's Request Letter
E. PC Report Nov. 9, 2010
F. Model Reso from Nov. 9, 2010 PC Report
G. Draft PC Minutes of the 11-9-10 PC Meeting
H. Approved Plans
Page:243
UNFINISHED BUSINESS
NEW BUSINESS
18.Subject:Possible change to City Council meeting schedule
Recommended Action:Consider cancelling meeting of January 4
Description:The decision is necessary at this time in order to accommodate newspaper
deadlines for any public hearing notices.
Page:No written materials in packet
ORDINANCES
19.Subject:Buildings & Construction Ordinance.
Recommended Action:Conduct second reading of the Buildings & Construction Ordinance
No. 10-2072
Description:An Ordinance of the City Council of the City of Cupertino amending Chapter 16
of the Cupertino Municipal Code and adopting the 2010 California Building Code Standards
with appendices and amendments thereto
Staff Report
A. Draft Ordinance
B. Draft Ordinance (strike-out version)
C. Revisions to first reading of Draft Ordinance per City Council direction
Page:286
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Tuesday, December 7, 2010Cupertino City Council
Cupertino Redevelopment Agency
STAFF REPORTS
20.Subject:Critzer v. City of Cupertino -update to Council on status of litigation
Recommended Action:Receive report
Page:No written materialsin packet
COUNCIL REPORTS
ADJOURNMENT
REDEVELOPMENT AGENCY MEETING
Canceled for lack of business.
The City of Cupertino has adopted the provisions of Code of Civil Procedure §1094.6; litigation
challenging a final decision of the City Council/Redevelopment Agency must be brought within 90 days
after a decision is announced unless a shorter time is required by State or Federal law.
Any interested person, including the applicant, prior to seeking judicial review of the city council’s
decision with respect to quasi-judicial actions, must first file a petition for reconsideration with the city
clerk within ten days after thecouncil’s decision. Any petition so filed must comply with municipal
ordinance code §2.08.096.
In compliance with the Americans with Disabilities Act (ADA), the City of Cupertino will make
reasonable efforts to accommodate persons with qualified disabilities. If you require special assistance,
please contact the city clerk’s office at 408-777-3223 at least 48 hours in advance of the meeting.
Any writings or documents provided to a majority of the Cupertino City Council after publication of the
packet will be made available for public inspection in the City Clerk’s Office located at City Hall, 10300
Torre Avenue, during normal business hours and in Council packet archives linked from the
agenda/minutes page on the Cupertino web site.
7
DRAFT MINUTES
CUPERTINO CITY COUNCIL
Regular Meeting
Monday, November 1, 2010
ROLL CALL
Present: Mayor Kris Wang, Vice-Mayor Gilbert Wong, and Council members Barry Chang,
Orrin Mahoney, and Mark Santoro. Absent: none.
CLOSED SESSION
1.Subject:Conference with real property negotiator (Gov't Code 54956.8);Property:
10800 Torre Avenue;Cupertino Negotiator: Terry Greene;Negotiating Parties: City of
Cupertino & potential lessees per RFP Under negotiation: Lease -price and terms of
payment (RFP).
2.Subject:Conference with legal counsel -existing litigation (Government Code
54956.9(a)). City of Cupertino v. Mansfield et al, Santa Clara County Superior Court (In
re Mansfield, United States Bankruptcy Court).
At 6:00p.m., the CityCouncil went into closed session, and reconvened in open session at 6:55
p.m. Mayor Wangreported that the City Council gave instructions to real property negotiators
and took no actionon item No. 1, and received an update briefing and gave settlement
instructions to legal counsel on item No. 2.
PLEDGE OF ALLEGIANCE
At 6:55 p.m. Mayor Kris Wangcalled the regular meeting to order in the Council Chamber,
10350 Torre Avenue, Cupertino, California, and led the Pledge of Allegiance.
ROLL CALL
Present: Mayor Kris Wang, Vice-Mayor Gilbert Wong, and Council members Barry Chang,
Orrin Mahoney, and Mark Santoro. Absent: none.
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November 1, 2010 Cupertino City Council Page 2
CEREMONIAL MATTERS –PRESENTATIONS
3.Subject:Proclamation recognizing David Knapp's ten years of service to the City of
Cupertino.
Action: Mayor Wang presented the proclamation.
4.Subject:Proclamation recognizing World Polio Day in Cupertino.
Action: Mayor Wang presented the proclamation.
POSTPONEMENTS-None
WRITTEN COMMUNICATIONS
Deputy City Clerk Grace Schmidt distributed the following written communications:
Memo from Director of Public Works Ralph Qualls to City Council(Item No. 22)
Amended Attachment J(Item No. 26)
Letter of support from Cupertino Chamber of Commerce President Lynn Ching (Item No.
26)
ORAL COMMUNICATIONS
Ann Stevenson, representing the Library Commission,reported on the latest statistics for
September: 497 new cards, 80,947 visitors, and total circulation of 269,559, which is up9% from
a year ago. She announced that there will be a science contest for middle schoolstudents in
March 2011 sponsored by the Cupertino Library, Cupertino Library Foundation, the Rotary Club,
and the Cupertino Elementary Foundation. She also reported that the Teen Room grand opening
was a great success and thanked all the donors. The Radio Frequency Identification (RFID)
project is completed so 5 items can now becheckedout simultaneously.Friendsof the Library
held a successful and efficiently run book sale. She also noted that the Library is supporting
Council to address the parking congestion problem.
Lin Jiangtalked about his neighborhood in Monta Vista that had many non-conforming fences.
He said that most of the streets have no sidewalks or curbs;there is lack of public improvements,
run-down houses, and security problem with kids walking to and from school. He asked thatall
existing non-conforming fences and gates be permitted to remain, asked he Council toprovide
funds to solve street flooding problems, to build curbs and sidewalks, and to improve the roads.
He also asked to have a public hearing held on the fence ordinance.
Ruby Elbogen talked about the street trees onStevens Creekand Torrethat are tagged for
possible destructionbecause they are diseased. She asked Council to find a better method than
one staff person to decide the fate of these trees, especially ones noted in the Heart of the City
Specific Plan, and to notify the public before these things happen. She asked Council for an
explanation regarding these particular trees.
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November 1, 2010 Cupertino City Council Page 3
Redevelopment and Economic Development Manager KellyKline explainedthat the Community
Development Director had not yet made adecision on the tree application, but would do so by
next week.
Donna Austinalso talked about the trees on Stevens Creek that were marked for destruction. She
wondered if the need for visibility was the cause for destruction of the trees.
Council member Santoro clarifiedthat theCouncil didn’t initiate anythingbut rather a new
property owner made a proposalto the City to remove some trees. He explained the process of
the Community Development Director making adecision on the proposal and noted that anyone
couldappeal it within14 days after the decision. He also noted that the trees are not marked for
destruction,but only to identify which ones the applicant is proposing to remove and/or replace.
Joy Barrett complained about Lehigh polluting the air with mercury and other chemicals and she
wanted to know why nothing has been done about it.She said Cupertino should pressure the
County to be more stringent.
Public and Environmental Affairs Director Rick Kitson responded that residents can find
informationon the website (www.cupertino.org/lehigh) such as documentation, videos of City
study sessions on Lehigh, notices of violation, some of Lehigh’s responses, and many
communications from the regulatory agencies. They noted that manyagencies are involved and
are doing their part.
PatriciaRodechoed what Ms.Barrettsaid. She askedCouncil to not take such a passive
approach and make more of a firm stand to preventLehigh from extending their 20-year license
to operate and prevent them from building the pit they are planning.
Council member Chang explained the permit process by two regulatory agencies noting that the
Title 5 permit is controlled by the Bay Area Air Quality Management District (BAAQMD) and
good for 5 years, and the mining permit is controlled by the County Board of Supervisors and is
good for20 years. Mayor Wang said the City has had two study sessions, sent twoletters out to
the public, and established an air monitoring station in the Monta Vista area that is still collecting
data.
Patrick Hoalso talked about Lehighand said the current City Council has done a good job
looking out after residentsbutagreed with Ms. Rodthat not enough has been done. He asked
Council to take a position that they are for the Cupertino residentsand opposed to the new
development, and to send someone to theCounty and the State to represent the City.
CONSENT CALENDAR
Mahoney moved and Wong seconded to approve the items on the Consent Calendar as
recommended, with the exception of Item No. 22which was pulled for discussion. Ayes: Chang,
Mahoney, Santoro, Wang, and Wong. Noes: None. Abstain: None.
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November 1, 2010 Cupertino City Council Page 4
5.Subject:September 21, October 5, and October 12 City Council minutes
Recommended Action:Approve minutes
6.Subject:Payroll for period ending October 1, 2010
Recommended Action:Adopt Resolution No. 10-190
7.Subject:Accounts Payable for period ending October 1, 2010
Recommended Action:Adopt Resolution No. 10-191
8.Subject:Accounts Payable for period ending October 8, 2010
Recommended Action:Adopt Resolution No. 10-192
9.Subject:Payroll for period ending October 15, 2010
Recommended Action:Adopt Resolution No. 10-193
10.Subject:Accounts Payable for period ending October 15, 2010
Recommended Action:Adopt Resolution No. 10-194
11.Subject:Accounts Payable for period ending October 22, 2010
Recommended Action:Adopt Resolution No. 10-195
12.Subject:Quitclaim Deed for the Grant of Real Property from the Fremont Union High
School District of Santa Clara County to the City of Cupertino located at the Mary
Avenue Bicycle Footbridge.
Recommended Action:Adopt Resolution No. 10-196
13.Subject:Partial Quitclaim of Easement by Pacific Bell Telephone Company to the City
of Cupertino located at the Mary Avenue Bicycle Footbridge.
Recommended Action:Adopt Resolution No. 10-197
14.Subject:Quitclaim Deed and Authorization for Underground Water Rights, 10160
Lockwood Drive.
Recommended Action:Adopt Resolution No. 10-198
Description:The property owners of this residential development agree to grant to the
City the right to extract water from the basin under the overlying property.
15.Subject:Quitclaim Deed and Authorization for Underground Water Rights, 10375 S.
Tantau Avenue.
Recommended Action:Adopt Resolution No. 10-199
Description:The property owner of this residential development agrees to grant to the
City the right to extract water from the basin under the overlying property.
16.Subject:Quitclaim Deed and Authorization for Underground Water Rights, 790 South
Blaney Avenue.
Recommended Action:Adopt Resolution No. 10-200
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November 1, 2010 Cupertino City Council Page 5
Description:The property owner of this residential development agrees to grant to the
City the right to extract water from the basin under the overlying property.
17.Subject:Development Agreement, 790 South Blaney Avenue.
Recommended Action:Adopt Resolution No. 10-201
Description:The property owner of this residential development has agreed to construct
improvements within the public right of way, which include street widening, construction
of curb, gutter and sidewalk, and street light power undergrounding, as conditions of
approval for the subdivision.
18.Subject:Final Tract Map, 790South Blaney Avenue.
Recommended Action:Adopt Resolution No. 10-202
Description:A resolution approving a Tract Map that subdivides an approximately
41,800 square foot parcel into five parcels ranging from 6,410 to 8,710 square feet in
area.
19.Subject:Stormwater Management Facilities Operation and Maintenance Agreement, 790
South Blaney Avenue.
Recommended Action:Adopt Resolution No. 10-203
Description:The property owner of this residential development will be required to
operate and maintain stormwater management facilities in accordance with the approved
Stormwater Management Plan, to minimize adverse impacts due to changes in storm and
surface water flow conditions.
20.Subject:Stormwater Management Facility Easement Agreement, 790 South Blaney
Avenue.
Recommended Action:Adopt Resolution No. 10-204
Description:The property owner of this residential development will be required to grant
ingress and egress rights to the City for the purpose of inspecting stormwater
management facilities installed in accordance with the approved Stormwater Management
Plan.
21.Subject:City Project, 2009 Tennis Court Re-Surfacing Project.
Recommended Action:Accept Project No. 2009-07.
Description:The work consisted of the mitigation of existing cracks, resurfacing of play
areas and re-striping of play lines on a total of 28 tennis courts.
22.Subject:Authorize application for grant funding for Stevens Creek Corridor, Phase 2.
Recommended Action:Adopt Resolution No. 10-205, authorizing the application for
grant funds from the Environmental Enhancement and Mitigation Program for Stevens
Creek Corridor Phase 2, project 9136.
Written communication for this item included a memo from Director of Public Works
Ralph Qualls to City Council.
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November 1, 2010 Cupertino City Council Page 6
Mr. Qualls clarified that Council should adopt the resolution with the understanding that
the City Council has the final approval for the scope of the project before the grant
agreement is executed.
23.Subject:Receive City Manager's Annual Report 2009-2010
Recommended Action:Receive report
ITEMS REMOVED FROM THE CONSENT CALENDAR(above)
24.Subject:Consider Parks and Recreation Commission Work Plan for Fiscal Year 2010-
2011
Recommended Action:Approve the 2010-2011 Parks and Recreation Commission Work
Plan.
Discussion:Parks and Recreation Commissioner Darcy Paul talked about the work plan
and other informational items as noted in the staff report.He answered questions from
Council.
Action:Wongmoved and Mahoneyseconded to approve the work plan. The motion
carried unanimously.
PUBLIC HEARINGS
25.Subject:Modifications to Use Permit U-2008-02 for an approved hotel by the Shashi
Corporation
RecommendedAction:Consider approval of modifications to a previously approved Use
Permit (U-2008-02) to reduce the amount of parking spaces including reductions (size
and scope) in the restaurant/bar and conference areas, and eliminate the green building
requirement for an approved 138-room hotel.
Description:Application No: M-2010-07;Applicant: Dipesh Gupta (Shashi Corporation);
Address: 10165 N De Anza Blvd. APN: 326-34-057
Discussion:Senior Planner ColinJung reviewed the staff report and Council asked
questions ofstaff.
The applicant made a PowerPoint presentation noting that the look and feel of the hotel
would remain unchanged and they are only requesting a change to the size of the
restaurant and meeting space, in addition to asking Councilto waive the requirement for
silver LEED application. He noted that the parking study showed a requirement of .70
parking spaces per room and they are proposing .60 parking on-site with the rest to be
made up with valet parking,if necessary,and with on-street parking. This would bring the
parking up to .72 (approximately 100 spaces),which exceeds the requirement.
Council recessed from 8:47 p.m. to 8:54 p.m. to addresstechnical difficultiesduringthe
applicant’s presentation.
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November 1, 2010 Cupertino City Council Page 7
At 9:30 p.m. Mayor Wang opened the public hearing.
Jennifer Griffin said that the site is a good location for a high class hotel and close to the
restaurants in the area. She wanted to make sure parking in Cupertino isn’t compromised
and to keep all parking on-site. She said she was concerned about the reduction of
banquet space but was glad to see the hotel wouldbe high class.
Robert McKibbin said that every development in the last 10 years hashadinadequate
parking in Cupertino. He said he was concerned about valet parking and using adjacent
land for employees to park. He urged Council to goto .9 parking spaces as was required
forother hotels in the area.
SteveScharfsaidthatit sets a bad precedent to reduce the parking and urged Council to
keep the parking as was approved a year ago. He said he was unhappy that the hotel
would be just another business class hotel without a restaurant.
The public hearing was closed at 9:40 p.m.
Council asked questions about the public art requirement. City Attorney CarolKorade
explained that there isno way to waivethe requirement but that there may be flexibility in
working withtheFine Arts Commission to discuss what artwould be.She noted that if
art wasn’tfeasible, the applicant couldapply to Fine Arts Commissionfor in-lieu
application, but that is discouraged.Council also discussed the parking requirement ratio.
Action: Mahoneymoved to modify use permit U-2008-02to incorporate an alternative
plan to keepthe same number of rooms, reduce the amenity space, reduce the parking
ratio to .75requiring valet parking, and to review the parking planafter one and twoyears
of operation. Wong seconded.The motion carried with Chang votingno.
Council recessed from 10:14 p.m. to 10:17 p.m.
26.Subject:Appeal of an approval of a wireless service facility on Results Way
Recommended Action:Consider an appeal of a Planning Commission approval for a
personal wireless service facility consisting of twelve panel antennas to be mounted on a
74 foot tall monopine and associated base equipment to be located at the existing Results
Way office park
Description:Application Nos: U-2010-03, EXC-2010-04, TR-2010-31;Applicant: Dave
Yocke (AT&T);Address: Results Way (rear parking lot) APN: 357-20-042
Written communication for this item included an amended Attachment Jand a letter of
support from the Cupertino Chamber of Commerce President Lynn Ching.
Discussion:Senior Planner Colin Jungreviewed the staff report.
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November 1, 2010 Cupertino City Council Page 8
The appellants made a PowerPoint presentationregarding their appealas noted in the
staff report.
At 11:10 p.m. Mayor Wang opened the public hearing.
Zvi Ashkemazisaid he was in favor of the wireless service facility because it’s important
for people to not just be able to use their phones totalk on, but to also be able to connect
to businesses in the area and get information across the airways.
The following individuals spoke in opposition to the wireless service facility:
Xuena XuAmy Xiao
Agnes FuHuang Shang
Cid PereiraBo Choy
Andre ChiuWen Chen
Xiaowne LiuJeannie Kimura
Ramani NarayanMark Ma
Vikas SalherhraAndrew Wu
Ken YoungSherry Hsu
Chris Ho
Their comments included:
The monopine is too tall for the area
It is located too close to a residential area and a school
There is aflaw in the application
The area is a bad location, the applicants should find a different one, perhaps
adding to an existing tower at De Anza College
The monopine would be visually intrusive, and artificial trees look ugly
This application is premature,andis inconsistent with the ordinance, and it
violates the Wireless Master Plan policies
There is not enough data
Who will benefit from the facility
The coverage will still not be enough
This will be a hub for all the other companies to build their towers
At 11:55 p.m. the public hearing was closed.
Leon Beauchman from AT&T said the tower application came about as a result of
customer demand and the Monta Vista area was the number one area noted from the
survey. He explained that they have been working for fiveyears to come up with a
solution and it’s not a quick fix.
ScottLonghurstfrom Trillium Companies representing AT&T noted that this has been a
collaborative effort with staff and the Technology, Information, and Communications
Commission (TICC).He noted that thearea focus was that around Monta Vista High
School which was shown to be substandard from the TICC report.
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November 1, 2010 Cupertino City Council Page 9
Peter Friedland from the TICC gave a brief history of the survey of cell coverage in
Cupertino done three and a half years ago. He noted the key findings: 65% of Cupertino
citizens thought cell coverage was inadequate; three areaswereidentified as having poor
coverage including Bubb at Mcclellan, Foothill Blvd., and Apple. He said that the TICC
worked with staff and the Planning Commission, talked with the different carriers, and
proposedan ordinance change around cell towers to includehillside areas and parks. The
ordinance changes were approved. He said that the TICC and staff have worked the past
threeyears with AT&T tofind a place for a tower in Cupertino. He noted that the Sheriff
and Fire Departmentsalso expressed a desire to fix the coverage issue.
Council asked questions of staff, the applicant, and the RF (radiofrequency) engineer
from AT&T.
Rashid, theRF Engineer from AT&T,responded to a question about the coverage map
and saidthat the map the appellants were showing isan old one that showed a 2G
network. He explained that since the iPhone, the network works on 3G.
Mark Newman from Hammett & Edison,Inc. Consulting Engineers, who prepared the RF
exposure analysis for the site,answered a question from Council regarding near and far
field calculations. He said that for this particular antenna it would be in the 20-30 foot
range directly in front of the antennae.
The property owner from Embarcadero Property responded to a question from Council
during a discussion on another location for the antennae, and he showed on a map where
anew development is being planned ontheproperty.
Action:Mahoneymoved and Santoro secondedto denytheappeal of the Planning
Commission approval with the adjustment that the decision on the trees is left up to the
Planning Director, but should be at least a 36-inch box of the fastest growing redwood
variety with good irrigation to provide maximum growth, and monitoring.The motion
failedwith Chang, Wang, and Wong voting no.
Council wentintoclosed session at 1:47 a.m. regarding Significant Exposure to Litigation
pursuant to subdivision (b) of GCSection 5495.9.
Council came back into open session at 2:05 a.m. and the City Attorney announcedthat
Council received legal advice on the standards for approving or denying this particular
appeal and the requirements of Federal law.
Chang movedto uphold the appeal. The motion diedfor lack of a second.
Mahoney movedand Wong seconded to continue the item and send it back to the
Planning Commission to discuss the feasibility of another alternative near Site 4 and to
bring the results back to Council. The motion carried with Chang and Santoro voting no.
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November 1, 2010 Cupertino City Council Page
10
City Attorney Carol Korade explained that Council is keeping this application on the
table and remanding it back to the Planning Commissionto see if there is a feasible way
to deal with the gap in coverage that is less intrusive, for example within the height limit,
and then have the original application and the alternativebrought back to Council for a
decision.
Theapplicant and Mr. Beauchman from AT&T asked some procedural questions.
The City Attorney clarified that the applicant does not have to start all over again.
Council has listened to the appellants concern and the appeal is on-going, but the Council
is trying to find an alternative location to addressthe concerns. The hearing will be
continuedand willbe brought back to Council for a final decision. She noted that this is
in interim step and the Planning Commission will notice and hear the consideration of an
alternative location and bring a recommendation back to Council. She also noted that a
time limit does not apply in this case.
The appellants said that they arefound the process acceptable.
The property owner noted his concernthat if the alternative site is near the front of his
property than it would need tobe visuallyappealing.
UNFINISHEDBUSINESS-None
NEW BUSINESS
27.Subject:Consider scheduling a Study Session on current Capital Improvements Program
Projects.
Recommended Action:Schedule a study session for November 16, 2010 at 5:00 pm.
Discussion:City Manager David Knappreviewed the staff report.
Action:Wong moved and Santoro seconded to holda study session on Dec. 21. Mahoney
added afriendly amendment to cancel the Dec. 21 meeting if the study session is the only
itemon the agenda. After further discussion, Wong withdrew his motionand Council
concurred to have a report come to them in the weekly Items of Interest.
ORDINANCES
28.Subject:Amend the Cupertino Municipal Code to revise and re-title the existing
Franchise Ordinance to be consistent with the new waste management and recycling
Recology Franchise Agreement.
Recommended Action:Conduct second reading of Ordinance Nos. 10-2069 and 10-
2070.
Description:a. An Ordinance of the City Council of the City of Cupertino Amending
Chapter 6.24 of the Cupertino Municipal Code to revise and re-title the existing Franchise
Ordinance, Garbage–Los Altos Garbage Company, as Garbage and Recycling Collection
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November 1, 2010 Cupertino City Council Page
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and Disposal to reflect the city’s updated waste management and recycling programs and
to provide terminology consistent with the new Franchise Agreement with Recology;b.
An Ordinance of the City Council of the City Of Cupertino amending Chapter 16.72 of
the Cupertino Municipal Code clarifying and updating the requirements for construction
and demolition debris recycling to ensure consistency with amendments to Chapter 6.24
and the new Recology Franchise Agreement.
Discussion:The Deputy City Clerk read the titles of the ordinances.
Action:Wongmoved and Changseconded to read the ordinances by title only and that
the City Clerk’s reading would constitute the second reading thereof. Ayes: Chang,
Mahoney, Santoro, Wang, and Wong. Noes: None.
Wongmoved and Changseconded to enact Ordinance Nos. 10-2069 and 10-2070.Ayes:
Chang, Mahoney, Santoro,Wang, and Wong. Noes: None.
STAFF REPORTS
29.Subject:Report on the status of the Solar Power Purchase Agreement (SPPA) project.
Recommended Action:Receive report and provide direction to staff.
Description:The SPPA will allow the construction and purchase of renewable energy
from carport photovoltaic arrays at City Hall, Corporation Yard, and the Quinlan
Community Center.
Council concurred to continue this item to Nov. 16.
COUNCIL REPORTS
Council members highlighted the activities of their committees and various community events.
ADJOURNMENT
At 2:40a.m. on Tuesday, November 2,the meeting was adjourned in honor of Linda Walker,
former Senior Citizens’ commissioner.
____________________________
Grace Schmidt, DeputyCity Clerk
Staffreports, backup materials, and items distributed at the City Council meeting are available
for review at the City Clerk’s Office, 777-3223, and also on the Internet at www.cupertino.org.
Click on Agendas & Minutes, then click on the appropriate Packet.
Most Council meetings are shown live on Comcast Channel 26 and AT&T U-verse Channel 99
and are available at your convenience atwww.cupertino.org. Click on Agendas & Minutes, then
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November 1, 2010 Cupertino City Council Page
12
click Archived Webcast. Videotapes are available at the Cupertino Library, or may be purchased
from the Cupertino City Channel, 777-2364.
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ADMINISTRATIVE SERVICESDEPARTMENT
CITY HALL
1010300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3227www.cupertino.org
CITY COUNCIL STAFF REPORT
Meeting:December 7, 2010
SubjectCity year-end financial reports for 2009-10
Recommended ActionAccept the reports
Description
Staff is pleased to present to the City Council the following financial reports for the fiscal year
ended June 30, 2010:
Comprehensive Annual Financial Report
Redevelopment Agency Financial Statements
Pedestrian/Bicycle Facilities Grant Financial Statements
Auditor’s Report to the City Council
Independent Accountant’s Report on the City’s Investment Policy
Appropriations Limit Report
The Redevelopment Agency’s annual report to City Council
Development Impact Fee Report
Except for the last two items, the above were either audited or issued by the City’s certified
public accountants and all reports were discussed with the Audit Committee. The auditors have
given a clean opinion on the financial statements and the controls associated with producing the
information. The Comprehensive Annual Financial Report will be submitted for the Certificate
of Achievement Award.
Fiscal Impact
Acceptance of the reports has no fiscal impact. The reports themselves describe the City’s
financial status as of June 30, 2010.
_____________________________________
Prepared by: David Woo
Reviewed by: Kimberly Smith(acting for Director of Administrative Services)
Approved for Submission by:David W. Knapp, City Manager
Attachments:
A.Comprehensive Annual Financial Report
B.Redevelopment Agency Financial Statements
C.Pedestrian/Bicycle Facilities (TDA)Grant Financial Statements
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D.Auditor’s Report to the City Council
E.Independent Accountant’s Report on the City’s Investment Policy
F.Appropriations Limit Report(GANN)
G.The Redevelopment Agency’s annual report to City Council
H.Development Impact Fee Report
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50
CITY OF CUPERTINO, CALIFORNIA
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
FOR FISCAL YEAR ENDED
JUNE 30, 2010
PREPARED BY:
CITY OF CUPERTINO
ADMINISTRATIVE SERVICES DEPARTMENT
FINANCE DIVISION
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NOTES
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INTRODUCTORY SECTION
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NOTES
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CITY OF CUPERTINO
Comprehensive Annual Financial Report
For the Year Ended June 30, 2010
Table of Contents
INTRODUCTORY SECTION
Page
Table of Contents .................................................................................................................................................. i
Letter of Transmittal ............................................................................................................................................ iii
Organization Chart ............................................................................................................................................ viii
City Council and Directory of City Officials ..................................................................................................... ix
Commissions and Committees ............................................................................................................................. x
Certificate of Award for Excellence in Financial Reporting .............................................................................. xi
FINANCIAL SECTION
Independent Auditor’s Report ......................................................................................................................... 1
Management’s Discussion and Analysis (Unaudited) .................................................................................... 3
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Assets ................................................................................................................... 21
Statement of Activities ..................................................................................................................... 22
Fund Financial Statements:
Balance Sheet .................................................................................................................................... 23
Reconciliation of the Balance Sheet of Governmental Funds to the
Statement of Net Assets - Governmental Activities ........................................................................ 24
Statement of Revenues, Expenditures and Changes in Fund Balances ............................................. 25
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities - Governmental Activities ......................................................................... 26
Statement of Revenues, Expenditures and Changes in Fund Balances –
Budget to Actual - General Fund .................................................................................................... 27
Proprietary Funds:
Statement of Fund Net Assets ........................................................................................................... 28
Statement of Revenues, Expenses and Changes in Fund Net Assets ................................................ 29
Statement of Cash Flows ................................................................................................................... 30
Fiduciary Funds:
Statement of Fiduciary Assets and Liabilities ................................................................................... 31
Notes to the Basic Financial Statements ................................................................................................ 32
Required Supplementary Information (Unaudited):
Schedules of Funding Progress ........................................................................................................... 58
55
CITY OF CUPERTINO
Comprehensive Annual Financial Report
For the Year Ended June 30, 2010
Table of Contents
FINANCIAL SECTION (Continued)
Page
Other Supplementary Information:
Schedule of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual - Public Facilities Corporation Debt Service Fund ............................................ 60
Nonmajor Governmental Funds:
Combining Balance Sheet ................................................................................................................. 62
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances .............................................................................................................. 64
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances – Budget and Actual ............................................................................ 66
Internal Service Funds:
Combining Statement of Net Assets ................................................................................................. 70
Combining Statement of Revenues, Expenses and
Changes in Fund Net Assets ........................................................................................................... 71
Combining Statement of Cash Flows ................................................................................................ 72
Agency Fund:
Statement of Changes in Assets and Liabilities – Special Assessment District ................................ 74
STATISTICAL SECTION
Financial Trends:
Net Assets by Component – Last Eight Fiscal Years ................................................................................ 79
Changes in Net Assets – Last Eight Fiscal Years ..................................................................................... 80
Fund Balances of Governmental Funds – Last Eight Fiscal Years .......................................................... 82
Changes in Fund Balance of Governmental Funds – Last Eight Fiscal Years ......................................... 83
Revenue Capacity:
Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years .............................. 84
Property Tax Rates – All Overlapping Governments – Last Ten Fiscal Years ........................................ 85
Principal Property Taxpayers – Current Year and Nine Years Ago ......................................................... 86
Property Tax Levies and Collections – Last Ten Fiscal Years ................................................................. 87
Debt Capacity:
Ratio of Outstanding Debt by Type – Last Ten FiscalYears ................................................................... 88
Direct and Overlapping Bonded Debt ....................................................................................................... 89
Legal Bonded Debt Margin Information – Last Ten Fiscal Years ........................................................... 90
Ratio of General Bonded Debt Outstanding – Last Ten Fiscal Years ...................................................... 91
Demographic and Economic Information:
Demographic and Economic Statistics – Last Ten Fiscal Years .............................................................. 92
Principal Employers – Current Year and Nine Years Ago ....................................................................... 93
Operating Information:
Full-Time Equivalent City Employees by Function/Program – Last Ten Fiscal Years ........................... 94
Operating Indicators by Function/Program – Last Six Fiscal Years ........................................................ 95
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years .................................................... 96
COMMUNITY PROFILE
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CITY OF CUPERTINO, CALIFORNIA
Fiscal Year 2009/10
CITY COUNCIL
Gilbert Wong
Orrin Mahoney
Kris Wang
Vice Mayor
Councilmember
Mayor
Barry Chang
Mark Santoro
Councilmember
Councilmember
DIRECTORY OF CITY OFFICIALS
David W. Knapp - City Manager
Carol Korade – City Attorney
Carol Atwood – Director of Administrative Services
Mark Linder – Director of Parks and Recreation
Ralph Qualls – Director of Public Works
Aarti Shrivastava - Director of Community Development
63
CITY OF CUPERTINO, CALIFORNIA
Fiscal Year 2009/10
COMMISSIONS AND COMMITTEES
AUDIT COMMITTEEPARKS & RECREATION COMMISSION
Myoung Kang Jeanne Bradford
Mark Santoro David Greenstein
Stanley Stemkoski David Lee
Garrett Wade Darcy Paul
Barry Chang
HOUSING COMMISSIONLIBRARY COMMISSION
Harvey Barnett Adrian Kolb
Radha Kulkarni Ronald Miller
Nicole Maroko Katherine Stakey
Liutyng LinAnn Stevenson
Jimmy Chien Susanna Tsai
FINE ARTS COMMISSIONPLANNING COMMISSION
KC Chandratreya Paul Brophy
John Fiegel Lisa Giefer
Srilakshmi Sitaraman David Kaneda
Robert Harrison Winnie Lee
Jessi Kaur Marty Miller
PUBLIC SAFETY COMMISSIONBICYCLE PEDESTRIAN COMMISSION
Charles Caldwell Mark Fantozzi
Nina Daruwalla Geoffrey Paulsen
Craig Lee Alan Takahashi
Daniel Nguyen James Wiant
Tamara Pow William Chan
TEEN COMMISSIONECONOMIC DEVELOPMENT
Utkarsh Bhagi Kailash Sundaram Lisa Giefer Orrin Mahoney
Jacqueline Do Shailee Samar Carol Atwood Lynn Ching
Anand Hemmady Anna Kathryn Sengupta Mike Foulkes Ralph Qualls
Esther Lim Hadar Sachs Kelly Kline Aarti Shrivastava
Laura Liu David Knapp Maria Streeby
Gilbert Wong
TECHNOLOGY, INFORMATION & FISCAL STRATEGIC COMMITTEE
COMMUNICATIONS COMMISSION
William Allen Kris Wang Kelly Kline
Peter Friedland Orrin Mahoney Aarti Shrivastava
Avinash Gadre Carol Atwood
Wallace Iimura David Woo
Andrew Radle Roger Lee
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City Council
City of Cupertino, California
Independent Auditor’s Report
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of Cupertino,
California (the City), as of and for the year ended June 30, 2010, which collectively comprise the City’s
basic financial statements as listed in the table of contents. These financial statements are the
responsibility of the City’s management. Our responsibility is to express opinions on these financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An audit includes consideration
of internal control over financial reporting as a basis for designing audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's
internal control over financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that our audit provides a
reasonable basis for our opinions.
In our opinion, 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 of Cupertino, California as of June 30, 2010,
and the respective changes in financial position and, where applicable, cash flows thereof, and the
respective budgetary comparison for the General Fund for the year then ended in conformity with
accounting principles generally accepted in the United States of America.
As discussed in Note 1(n) to the basic financial statements, effective July 1, 2009, the City adopted the
provisions of Governmental Accounting Standards Board (GASB) Statement No. 51, Accounting and
Financial Reporting for Intangible Assets.
The management’s discussion and analysis and the schedules of funding progress listed in the table of
contents are not a required part of the basic financial statements but are supplementary information
required by accounting principles generally accepted in the United States of America. We have applied
certain limited procedures, which consisted principally of inquiries of management regarding the methods
of measurement and presentation of the required supplementary information. However, we did not audit
the information and do not express an opinion on it.
67
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The introductory section, other supplementary
information section, statistical section, and community profile section are presented for purposes of
additional analysis and are not a required part of the basic financial statements. The other supplementary
information section has been subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic
financial statements taken as a whole. The introductory, statistical, and community profile sections have
not been subjected to the auditing procedures applied in the audit of the basic financial statements and,
accordingly, we express no opinion on them.
Certified Public Accountants
Walnut Creek, California
November 17, 2010
68
CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2010
This describes the City of Cupertino’s financial performance for the year. Please read it in conjunction with the
accompanying Transmittal Letter and Basic Financial Statements.
2009-10 FINANCIAL HIGHLIGHTS
Governmental activity revenues were $46,152,000, down significantly from $51,757,000 in 2008-09.
Governmental activity expenses were $46,223,000 in 2009-10, down slightly from $46,807,000 in the prior
year.
Revenues from business-type activities were $6,575,000 in current year, down from $6,980,000 in the prior
year.
Expenses of business-type activities were $5,808,000 in current year, down slightly from $5,828,000 in the
prior year.
Governmental net assets were relatively unchanged while business-type net assets rose $767,000.
General Fund revenues of $35,578,000 represented a large decrease of $5,715,000 from the prior year;
General Fund expenditures increased $680,000 to $32,956,000 in 2009-10.
The General Fund incurred expenditure budget savings of $2,338,000; however, revenues fell short of
budget by $2,310,000.
Including net transfers out, the General Fund balance declined $6,266,000 to end the year at $15,931,000.
OVERVIEW OF THE FINANCIAL STATEMENTS
The Basic Financial Statements comprise the City-wide Financial Statements and the Fund Financial
Statements; these two sets of financial statements provide two different views of the City’s financial activities
and position.
The City-Wide Financial Statements provide a long-term view of the City’s activities as a whole, and
comprise the Statement of Net Assets and the Statement of Activities. These statements are prepared on the
accrual basis, which means they measure the flow of all economic resources of the City as a whole. The accrual
basis of accounting is similar to the accounting used by most private sector companies. The Statement of Net
Assets provides information about the financial position of the City as a whole, including all its capital assets
and long-term liabilities. The Statement of Activities provides information about all the City’s revenues and all
its expenses, with the emphasis on measuring net revenues or expenses for each of the City’s programs. The
Statement of Activities explains in detail the change in Net Assets for the year. Over time, increases or
decreases in net assets can be indicators of whether the financial condition of the City is improving or
deteriorating.
All of the City’s activities are grouped into Governmental activities and Business-type activities, as explained
below. The Statement of Net Assets and the Statement of Activities provide a summary of these two types of
activities for the City as a whole.
Governmental activities—Most of the City’s basic services are considered to be governmental activities,
including public works, law enforcement, community development, recreation, public & environmental
affairs, and general administration. These services are supported by general City revenues such as property,
sales and other taxes, and by specific program revenues such as developer fees and grants.
The City’s governmental activities include the activities of a separate legal entity, the Cupertino
Redevelopment Agency, because the City is considered to be financially accountable for the Agency. The
Cupertino Public Facilities Corporation, from which the City leases its major facilities through the payment
of long-term debt, is also included as a component unit.
Business-type activities—All the City’s enterprises are reported here, including solid waste management
and some of the City’s recreational operations. Unlike governmental services, these services are supported
by charges paid by users based on the amount of the service they use.
69
CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2010
The Fund Financial Statements report the City’s operations in more detail than the government-wide
statements and focus primarily on the short-term activities of the City’s General Fund and other major funds.
The Fund Financial Statements measure only current revenues, expenditures, assets, and liabilities; they exclude
long-term assets and liabilities. Because these statements focus on the near-term inflows and outflows of
spendable resources, such information may be useful in evaluating near-term financing requirements.
The Fund Financial Statements provide detailed information about each of the City’s most significant funds,
calledmajor funds. Cupertino’s Fund Financial Statements include governmental, enterprise and internal
service funds as discussed below. Each major fund is presented individually, with all non-major funds
summarized and presented only in a single column. Subordinate schedules, which follow the Notes to Basic
Financial Statements, present the detail of these non-major funds. Major funds present the significant activities
of the City for the year, and may change from year to year as a result of changes in the pattern of City’s
activities and public interest. For example, the Capital Improvement Projects Fund may or may not appear as a
major fund depending on the volume of construction activity in a certain year.
Governmental Fund Financial Statements are prepared on the modified accrual basis, which means they
measure only current financial resources and uses. They present essentially the same functions reported as
governmental activities in the government-wide financial statements. However, capital assets and other long-
lived assets, along with long-term liabilities, are not presented in the Governmental Fund Financial Statements.
Reconciliations are provided to facilitate a comparison between governmental funds and governmental activities
statements to allow a better understanding of the long-term impact of the government’s near-term financial
decisions.
Enterprise and Internal Service Fund financial statements are prepared on the full accrual basis and include all
their assets and liabilities, current and long-term. Enterprise funds are used to report the same functions
presented as business-type activities in the government-wide financial statements, and in more detail in the fund
financial statements.
Since the City’s Internal Service Funds provide goods and services only to the City’s governmental and
business-type activities, their activities are reported only in total at the fund level. Internal Service Funds may
not be major funds because their revenues are derived from other City funds. These revenues are eliminated in
the City-wide financial statements and any related profits or losses are returned to the activities which created
them, along with any residual net assets of the Internal Service Funds. For this City, internal service activities
predominantly benefit governmental rather than business-type functions, and are therefore included within
governmental activities in the government-wide financial statements.
Comparisons of budget and actual financial information are included in the Basic Financial Statements for the
General Fund and other major Special Revenue Funds. Since none of the City’s Special Revenue Funds are
considered major funds, budgetary comparison schedules for these funds are included in this document as
supplemental information only.
Fiduciary Fundstatements provide financial information about the activity of an assessment district. The City
acts strictly as an agent for the district holding amounts collected from property owners, prior to transferring the
money to the districts’ bond trustees. The City’s fiduciary activities are reported in the separate Statement of
Fiduciary Net Assets and the Agency Funds Statement of Changes in Assets and Liabilities. These activities are
excluded from the City’s other financial statements because the City cannot use these assets to finance its own
operations.
The Notes to Basic Financial Statements provide additional detail that is essential to a full understanding of
the information provided in the government-wide and fund financial statements.
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CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2010
CITY-WIDE FINANCIAL ACTIVITIES
This analysis focuses on the net assets and changes in net assets of the City’s Governmental Activities (Tables 1
and 2) and Business-Type Activities (Tables 3 and 4) presented in the City-wide Statement of Net Assets and
Statement of Activities that follow. The Change in Net Asset Tables 2 and 4 show activity from a revenue and
expense perspective.
Governmental Activities
Table 1
Condensed Statement of Net Assets at June 30
(in thousands)
Governmental Activities
20102009
Assets:
Cash and investments$ 41,700$ 48,363
Other assets 10,391 6,446
Capital assets 165,915 167,275
Total assets 218,006 222,084
Liabilities:
Long term debt 45,510 46,970
Other liabilities 12,311 14,858
Total liabilities 57,821 61,828
Net assets:
Invested in capital assets, net of debt 120,405 120,305
Restricted 8,692 6,661
Unrestricted 31,088 33,290
Total net assets$ 160,185$ 160,256
The City’s net assets from governmental activities were relatively unchanged from the prior year. The following
significant changes within asset, liability, and net asset categories occurred:
A $7,000,000 investment into an irrevocable trust dedicated to future other post employment benefits
(OPEB) was the major cause of the cash and investments decrease. It also reduced the OPEB obligation
portion of other liabilities by $1,827,000 and increased the OPEB portion of other assets by $3,747,000.
Principal payments on the 2002 certificates of participation lowered long-term debt by $1,460,000.
Approximately $2 million in net assets changed from unrestricted to restricted reflecting lower
unrestricted general funds and higher balances restricted to transportation, redevelopment, and housing
purposes.
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CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2010
Sources of Revenues, Governmental Activities 2009-10
Other Taxes
3%
Investments
Franchise Tax 5%
1%
Operating
Utility User Tax
Contributions & Grants
7%
Charges for
4%
Services
12%
Transient Occupancy
Tax
5%
Capital Grants &
Contributions
12%
Sales Tax
22%
Property Tax
29%
As the Sources of Revenue chart above shows, property and sales taxes make up half of governmental revenue.
The Functional Expenses chart below includes only current year expenses with Public Works action on streets,
facilities, parks and storm drains comprising the largest activity. The chart does not include capital outlays or
principal payments on debt. Capital outlays are instead shown as additions to capital assets and principal
payments are reported as long-term liability reductions.
Functional Expenses, Governmental Activities 2009-10
Interest
Administration
4%
4%
Law Enforcement
18%
Public & Environmental
Public
Affairs
Works
4%
42%
Administrative Services
9%
Recreation Services
Community
10%
Development
9%
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CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2010
The Statement of Activities presents program revenues, expenses, and general revenues. These are all elements
of the Changes in Governmental Net Assets summarized in the next table.
Table 2
Condensed Changes in Net Assets For The Year Ended June 30
(in thousands)
Governmental Activities
20102009
Expenses:
Administration 1,912$ $ 1,770
Law enforcement 8,385 8,804
Public and environmental affairs 1,653 1,624
Administrative services 4,080 4,002
Recreation services 4,445 4,206
Community development 4,351 6,178
Public works 19,320 18,104
Interest on long term debt 2,077 2,119
Total expenses 46,223 46,807
Revenues
Program revenues:
Charges for services 5,631 5,417
Operating contributions and grants 2,043 4,014
Capital grants and contributions 5,511 4,760
Total program revenues 13,185 14,191
General revenues:
Taxes:
Property tax 7,489 7,492
Property tax in lieu of motor vehicle fee 4,421 4,300
Incremental property tax 1,323 1,211
Sales tax 9,931 14,139
Transient occupancy tax 2,142 2,140
Utility user tax 3,271 3,205
Franchise tax 2,598 2,618
Other taxes 1,212 1,318
Intergovernmental, unrestricted
Motor vehicle license fee 166 172
Investment earnings 295 890
Miscellaneous 119 81
Total general revenues 32,967 37,566
Total revenues 46,152 51,757
Change in net assets (71) 4,950
Beginning net assets, as previously reported 143,293 138,343
Prior period adjustment for easements 16,963 16,963
Beginning net assets, as restated 160,256 155,306
Ending net assets$ 160,185$ 160,256
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CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2010
City-wide Governmental Revenues
Table 2 shows that total governmental revenues fell $5,605,000 or 11% off of last year, finishing at
$46,152,000.
Sales taxes fell $4,208,000 or 30% off of last year to finish up at $9,931,000. The state’s mechanism of
collecting and allocating these taxes to the City lags actual sales trends by up to a year, so a part of last year’s
recessionary downturn in business-to-business and retail sales showed up in this year’s City results. Actual sales
tax collections in this current year, with prior year effects excluded, were down by only 4% from 2008-09. This
year’s result was also negatively impacted by the timing of a sales tax consulting agreement that is payable out
of a percentage of revenues. The positive revenue result that will show in first quarter of the new fiscal year is
offset by the corresponding higher amount payable for the consulting agreement in the current fiscal year.
Grants and contributions, both operating and capital related, decreased a combined $1,220,000 or 14% from
2008-09 as this year’s Stevens Creek Corridor Park and pavement resurfacing grants from federal and state
sources such as the American Recovery and Reinvestment Act, Surface Transportation Program, Proposition 1B
bonds, and Park Bond Act were under the 2008-09 Mary Avenue Bicycle Footbridge and community housing
program reimbursements received from the Santa Clara Valley Transportation Authority and Community
Development Block Grants (CDBG).
City-wide Governmental Expenses
City-wide governmental expenses in Table 2 decreased $584,000 or 1% under 2008-09. Administration,
Recreation Services, and Public Works rose while Law Enforcement and Community Development declined.
Administrative Services, Public & Environmental Affairs, and debt interest were stable.
Administration increased $142,000 or 8% this year due to higher contract attorney use.
Recreation Services rose $239,000 or 6% because the Blackberry Farm recreation area and swimming pool
reopened in July 2009 after a two-year construction project.
Higher depreciation costs caused Public Works expenses to go up $1,216,000 or 7% over the prior year
reflecting the Mary Avenue Footbridge, Stevens Creek Corridor Park, and pavement capital projects completed
in the prior year.
The General Fund paid the County Sheriff’s Office, under a Law Enforcement contract with the City, $251,000
or 3% more this year because of an annual cost of living adjustment, but on a consolidated financial basis, law
enforcement expenses dropped $419,000 from the previous year as internal service costs for information
technology, equipment, and insurance were no longer allocated to this function starting in 2009-10.
Community Development expenses fell $1,827,000 or 30% primarily because of 2008-09 CDBG monies and
City development impact fees expended on the Maitri domestic violence shelter and the Senior Housing
Solution senior living residence.
Change in Net Assets
City-wide governmental expenses in excess of revenues and accompanying net asset decrease of $71,000 was
under the $4,950,000 increase of last year, mostly due to the revenue falloff.
Business Type Activities
Business-type activities in the City-wide Financial Statements include the City’s four enterprise funds.
Enterprise funds are used to account for recreational and solid waste management operations that are financed
and operated in a manner similar to private business enterprises where the intent is that the costs of providing
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CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2010
services and facilities to the general public on a continuing basis can be financed or recovered primarily through
user fees.
Business-type net assets totaled $9,852,000 at June 30, 2010, an increase of $767,000 from the prior year with
$652,000 of the rise going into capital assets and the rest into unrestricted net assets.
Overall revenues of $6,575,000 this year were $405,000 or 6% lower than last year with declines in all of the
City’s enterprises.
Expenses for all business-type activities were flat at $5,808,000. Revenues over expenses of $767,000 declined
from the $1,152,000 in 2008-09, reflecting the lower operating incomes of the Sports Center, Recreation, and
Resources Recovery enterprises. The major proprietary funds section of this report provides more information
on business-type results.
Table 3
Condensed Statement of Net Assets at June 30
(in thousands)
Business Type Activities
20102009
Assets:
Cash and investments$ 9,762$ 9,749
Other assets 348 353
Capital assets 788 136
Total assets 10,898 10,238
Current liabilities 1,046 1,153
Total liabilities 1,046 1,153
Net assets:
Invested in capital assets 788 136
Unrestricted 9,064 8,949
Total net assets$ 9,852$ 9,085
Table 4
Condensed Changes in Net Assets For The Year Ended June 30
(in thousands)
Business Type Activities
20102009
Expenses:
Resources recovery $ 2,018$ 1,998
Blackberry farm 457 496
Sports center 1,478 1,594
Recreation programs 1,855 1,740
Total expenses 5,808 5,828
Revenues
Program revenues:
Charges for services 6,501 6,794
Operating contributions and grants 7 14
Total program revenues 6,508 6,808
General revenues:
Investment income 67 172
Total revenues 6,575 6,980
Change in net assets 767 1,152
Beginning net assets 9,085 7,933
Ending assets$ 9,852$ 9,085
75
CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2010
MAJOR GOVERNMENTAL FUNDS
General Fund
General Fund Revenues
General Fund revenues of $35,578,000 ended up $2,310,000 or 6% below the final budget and $5,003,000 or
12% below the original budget for the year ended June 30, 2010. This was $5,715,000 or 14% under last year.
Severe declines in property and sales taxes caused the year-to-year falloff while underperformance in almost all
revenue categories except for transient occupancy taxes and intergovernmental grants produced the budget
shortfall. Table 5 displays year-to-year variations, while Table 6 shows budget versus actual differences.
Property taxes ended the year at $10,439,000, dropping 11% or $1,304,000 from last year while meeting the
final budget. The budget was adjusted downward at mid-year by $770,000 after the State adopted a late 2009-10
budget in September 2009 that included the borrowing of $1,419,000 in property taxes to fund their budget
deficit. Proposition 1A requires that the State repay this to the City by June 30, 2013 with 2% annual interest
and until that is done, it cannot seize any more property taxes under this statute; accordingly, this loan is carried
as a receivable and deferred revenue. The revenue decline was partially offset by actual tax receipts, aside from
the borrowing, coming in slightly better than predicted from the assessed valuation known at the original budget
adoption. However, the City was not immune to the weakness in the residential and commercial real estate
markets and tax roll growth was down from previous years. But because of the City’s low foreclosure rates and
its popular local school districts, assessed values have been impacted less severely relative to many other cities
in the County. This category also includes property taxes that replace motor vehicle license fees lost due to the
statewide fee reduction in 2005.
Sales taxes fell $4,208,000 or 30% off of last year to finish up at $9,931,000. It was $1,718,000 or 15% below
the original budget and $1,318,000 or 12% below the final budget. The state’s mechanism of collecting and
allocating these taxes to the City lags actual sales trends by up to a year, so a part of last year’s recessionary
downturn in business-to-business and retail sales showed up in this year’s City results. Actual sales tax
collections in this current year, with prior year effects excluded, were down by only 4% from 2008-09. This
year’s result was also negatively impacted by the timing of a sales tax consulting agreement that is payable out
of a percentage of revenues. The positive revenue result that will show in first quarter of the new fiscal year is
offset by the corresponding higher amount payable for the consulting agreement in the current fiscal year.
After the City saw declines in the first two quarters, it lowered its sales tax budget by $400,000.
The four hotels in the City remitted $2,142,000 in transient occupancy taxes this year, equaling last year’s
performance. It was 7% or $148,000 better than the final budget. Receipts began to improve in November 2009
as the hotels, which all cater to business, saw a pickup in occupancy rates. Average room rates, however,
continued to lag the prior year. The City had forecasted a stronger business recovery in hotels than what was
unfolding, so the budget for this 10% tax was decreased at mid-year by $400,000.
The City’s 2.4% utility user tax on telecommunication, gas, and electric services rose 2% above last year. This
$3,271,000 in revenues was $95,000 or 3% under the original and final budget. On November 3, 2009, voters
passed an ordinance to ensure that this tax can continue to be collected on contemporary telecom systems.
Franchise taxes of $2,598,000 from electric, gas, water, solid waste, and cable utilities were mostly unchanged
from last year and in-line with this year’s original and final budget.
Other taxes include business license, construction, and property transfer taxes. The county assesses the transfer
tax, at $1.10 per $1,000 in sales price, upon recording the ownership change, and gives the City one-half of the
tax. The increase in housing transactions offset the continuing decline in building activity and the associated
construction tax on its value, causing the other tax category to grow by a net 13% or $133,000 from 2008-09
76
CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2010
figures. However, the lack of a pickup in construction, due to difficulties in commercial financing, caused other
taxes to be 4% or $49,000 off of the final budget and 23% or $349,000 under the original budget.
Licenses and permits finished at $2,583,000, declining 6% or $157,000 from 2008-09. It was 20% or $627,000
below the final and original budget. The slump in residential construction continued, while expected new
commercial projects did not come to fruition. Fees from a partially completed project at the Rosebowl were
delayed.
Zoning, planning, and engineering review fees comprise two-thirds of the charges for services category, with
non-enterprise recreational programs encompassing the rest. The category improved from $1,266,000 last year
to $1,334,000 this year, a 5% rise. It finished $100,000 or 7% below the final budget and $500,000 and 27%
under the original budget. Entitlement and street cut review fees were below forecasts as developments were
placed on hold, while Senior Center revenues turned out better than expected and grew over last year as the mild
economic recovery helped trip and class bookings. The Blackberry Farm recreation area reopened in July 2009,
resuming fees for picnic ground and swimming pool use, after being closed for a two year capital improvement
project.
Intergovernmental revenues of $626,000 rose 48% or $205,000 from last year, exceeded the final budget by
27% or $134,000, and topped the original budget by 51% or $211,000. $88,000 of an American Recovery and
Reinvestment Act grant for energy efficiency work appeared in 2009-10 while $40,000 of a Citizens Option for
Public Safety grant, normally received in 2008-09, arrived instead in October 2009. Cost reimbursements from
other governments and districts, including those for State mandates, grew by $42,000. $77,000 in new emergency
management grants were awarded to the City during 2009-10 and subsequently added to the budget.
General Fund cash is part of the City’s pooled investment portfolio. Investment returns of the pool are allocated
to the Fund based on the Fund’s monthly cash balance. These returns plus the renting of City facilities comprise
use of money and property revenues, which extended their slump into a second year, falling 41% from 2008-09,
to finish at $686,000 versus $1,163,000 a year ago. Results include $25,000 of unrealized losses from declines
in market value on the fixed rate securities in the portfolio. Current results were 23% and 51% under the final
and original budgets, respectively. Falling cash balances because of lower revenues and the portfolio’s increased
concentration in safe short-term Treasuries kept yields down. As interest rates did not increase as expected and
investments into higher yielding Federal agencies and the Local Agency Investment Fund did not occur, the
investment revenue budget was decreased at mid-year by $500,000. A further explanation of the investment
picture for the year is in Note 2 of the Basic Financial Statements. Rent income was stable and on budget.
Fines and forfeitures year-to-year were relatively flat. Actual receipts came in $166,000 or 18% below final and
original budget as courts were assessing lower fine amounts in certain cases.
Transfers into the General Fund dropped 22% from $624,000 last year to $487,000 this year. There were fewer
surplus dollars returned to the General Fund from project savings in the Capital Project Improvement Fund. The
budget for transfers added $992,000 during the year to reflect the project savings and a $505,000 borrowing of
money from an internal service fund to replace the State property tax takeaway. However the borrowing was
actually recorded as an advance from another fund liability, rather than as a transfer-in, causing the budget
versus actual difference.
77
CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2010
Table 5
Revenue Changes
General Fund, Fiscal 2010 vs. 2009
(in thousands)
Increase/(Decrease)
Fiscal 2010From Fiscal 2009
Revenue by SourceAmount% of TotalAmountPercent
Property $ 10,439 30% $ (1,304)-11%
Sales 9,931 28% (4,208)-30%
Transient occupancy 2,142 6% 2 0%
Utility user 3,271 9% 66 2%
Franchise 2,598 7% (20)-1%
Other 1,151 3% 133 13%
Use of money & property
686 2% (477)-41%
Intergovernmental
626 2% 205 49%
Licenses and permits
2,583 7% (157)-6%
Charges for services
1,334 4% 68 5%
Fines and forfeitures
736 2% (25)-3%
Other
81 -- 2 3%
Total revenues $ 35,578100% $ (5,715)-14%
Transfers in $ 487 100% $ (137)-22%
Table 6
Revenue Budget and Actual Comparisons
General Fund, 2009-10
(in thousands)
Budgeted Amounts
Over/(Under)
OriginalFinalActualFinal
Property$ 11,190$ 10,420$ 10,439$ 19
Sales 11,649 11,249 9,931 (1,318)
Transient occupancy 2,394 1,994 2,142 148
Utility user 3,366 3,366 3,271 (95)
Franchise 2,630 2,630 2,598 (32)
Other 1,500 1,200 1,151 (49)
Use of money & property
1,391 891 686 (205)
Intergovernmental
415 492 626 134
Licenses and permits
3,210 3,210 2,583 (627)
Charges for services
1,834 1,434 1,334 (100)
Fines and forfeitures
902 902 736 (166)
Other
100 100 81 (19)
Total revenues$ 40,581$ 37,888$ 35,578$ (2,310)
Transfers in$ -$ 992$ 487$ (505)
78
CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2010
General Fund Expenditures
Fiscal 2009-10 overall expenditures, at $32,956,000, were $680,000 or 2% higher than last year’s total of
$32,276,000. However, this result came in 7% or $2,338,000 under the final budget and $2,533,000 below the
original budget. Year-to-year and budget versus actual results by General Fund department are described below
and in Tables 7 and 8.
Administration expenditures of $1,469,000 rose 10% or $132,000 over last year while finishing $48,000 or 3%
under final budget. Higher usage of contract attorney services accounted for the yearly rise while a staff attorney
vacancy led to a minor budget reduction at mid-year.
Law Enforcement sheriff contract costs of $8,384,000 were under the final budget by $182,000 or 2%. The
budget contains dollars for unexpected events or incidences, so by the end of the year, the normal rate of general
law enforcement, service requests, emergency calls, patrol, and investigations usually brings budget savings.
Funds for school traffic safety was carried over from the previous year and added to the amended budget. The
results exceeded past year expenditures by 3% or $251,000, because of the contract’s cost of living adjustment.
Having contract law enforcement helps the City contain costs.
Public and Environmental Affairs expenditures of $1,487,000 were flat on a budget and year-to-year basis.
Administrative Services increased 3% from last year and finished 8% or $329,000 under final budget. The
City’s biennial City Council election affected the yearly fluctuation. Budget savings were realized in finance,
city clerk, disaster preparedness, insurance, code enforcement and neighborhood watch. The final budget was
$192,000 under the original budget due mid-year budget cuts from a human resource staff vacancy and a lower
insurance reserve.
Non-enterprise Recreation expenditures ended up $285,000 or 7% below final budget, but exceeded last year’s
spending by $215,000 or 6%. The Blackberry Farm recreation area and swimming pool reopened in July 2009
after a two-year closure for construction. Most operational areas realized budget savings but the senior travel
program comprised 45% of the savings as their cost of trips sold budget was set for a higher revenue level than
what was actually realized, even after a mid-year budget decrease.
Community Development costs of $3,069,000 was $492,000 or 14% below the final budget due to a lower
amount of building activity and associated reduction in plan checking and inspection work. Additionally, the
department employed fewer consultant hours than anticipated for its long-term planning work. Costs dipped 4%
or $140,000 from last year as the less contract plan checking was needed.
Public Works maintenance, repair, and engineering expenditures of $10,809,000 rose a slight 1% or $121,000
over the prior year. It was $995,000 or 8% under final budget due to a school traffic safety project that will
continue into next year, two engineering staff vacancies, and surplus engineering, traffic, and maintenance
contingencies. Purchase orders from last year comprised the $253,000 increase from original to final budget.
Transfers out of the General Fund climbed from $7,110,000 in 2008-09 to $9,375,000 in 2009-10, as finally
budgeted, with $3,538,000 for ongoing debt service, $2,625,000 for one-time capital projects, $1,848,000 for
ongoing retiree health obligations, $750,000 for ongoing road maintenance, $300,000 for ongoing accrued leave
payouts, $199,000 for new information technology and equipment, $100,000 for ongoing infrastructure reserve
additions, and a $15,000 new subsidy for storm drain management. The increase over 2008-09 resulted from
new capital funding offset by a reduction in the retiree health contribution, accrued leave payout, and
information technology support. $1,696,000 of the capital funding came out of General Fund reserves for a
citywide streetlight and irrigation retrofit project which is slated to generate future energy savings. The
$929,000 remaining capital commitment was for various tasks described in the Capital Improvement Projects
section of this discussion, $487,000 of it reflects a redeployment of budget savings from older projects. The
budget varied during the fiscal year as new projects were authorized.
79
CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2010
Table 7
Expenditure Changes from Prior Year
General Fund, 2009-10
(in thousands)
Increase/(Decrease)
Fiscal 2010From Fiscal 2009
Amount% of TotalAmountPercent
Service Area
Administration $ 1,469 4% $ 132 10%
Law enforcement 8,384 25% 251 3%
Public and environmental affairs
1,487 5% 1 0%
Administrative services
3,734 11% 100 3%
Recreation services 4,004 12% 215 6%
Community development 3,069 10% (140)-4%
Public works 10,809 33% 121 1%
Total expenditures $ 32,956 100% $ 680 2%
Transfers out $ 9,375 100% $ 2,265 32%
Table 8
Expenditure Budget and Actual Comparison
General Fund, 2009-10
(in thousands)
Budgeted Amounts
Under
OriginalFinalActualFinal
Service Area
Administration $ 1,547 $ 1,517 $ 1,469 $ 48
Law enforcement
8,537 8,566 8,384 182
Public and environmental affairs
1,500 1,494 1,487 7
Administrative services 4,255 4,063 3,734 329
Recreation services 4,366 4,289 4,004 285
Community development 3,733 3,561 3,069 492
Public works
11,551 11,804 10,809 995
Total expenditures $ 35,489 $ 35,294 $ 32,956 $ 2,338
Transfers out $ 7,573 $ 9,375 $ 9,375 $ -
General Fund Balance
At June 30, 2010, the General Fund reported a total ending fund balance of $15,931,000, down 28% or
$6,266,000 from the prior year. The City designates $12,500,000 of this for economic uncertainty and $916,000
for utility user taxes specified for capital projects. $1,104,000 is reserved for open purchase orders, future
public access programming, and prepaid expenses. $1,204,000 is earmarked as rehabilitation and employee
housing loans due back to the City. Finally, $207,000 in unreserved, undesignated funds is available to balance
future budgets.
80
CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2010
The fund balance falloff resulted from revenues exceeding expenditures by $2,622,000 offset by a net transfer
out of $8,888,000. The unreserved, undesignated fund balance took the bulk of the hit dropping from $4,857,000
a year ago to $207,000 at June 30, 2010. The $915,000 set-aside for state budget raids was depleted when the
state took property taxes at mid-year for their budget deficit. The designated utility user tax balance was drawn
down by $684,000 during the year for capital project use. Loan payoffs reduced loan reserves by $17,000.
Public Facilities Corporation
This fund accounts for the payments of principal and interest on the 2002 certificates of participation (COPs),
which refinanced the long-term debt that funded many of the City’s major parks and facilities. As in previous
years, General Fund transfers into the fund cover the debt service payments of $3,538,000.
Capital Improvement Projects
All of the City’s non-enterprise capital projects are in this fund, except for the Stevens Creek Corridor Park,
which is a separate major fund, and the Mary Avenue Bicycle Footbridge, which is a part of Other
Governmental Funds. Funding for these projects come from grants, General Fund, and Other Governmental
Funds. Outlays for park, facility, and traffic projects declined from $2,048,000 in 2008-09 to $1,359,000 in
2009-10, as Sterling/Barnhart Park construction, Service Center equipment wash rack, Quinlan Community
Center courtyard trellis, and Sports Center tennis court lighting were new projects worked on this year. The
General Fund and Other Governmental Funds provided $2,322,000 and $60,000 respectively in new project
funding this year, compared to none the previous year, as earlier revenue forecasts allowed a cautious
resumption of capital spending and an investment in a streetlight and irrigation retrofit project was deemed to be
worthwhile because of future utility bill savings. $487,000 in completed project cost savings were returned to
the General Fund. The General Fund maintained its commitment of contributing $100,000 annually to the
Capital Improvement Fund and designating these contributions towards future projects. As of June 30, 2010,
the Capital Improvement Fund has $1,775,000 designated for capital projects of which $1,000,000 is designated
for infrastructure projects, $699,000 is designated for capital improvement, and $76,000 for construction in
progress.
Stevens Creek Corridor Park
This fund contains three capital projects. The $13,577,000 Phase One segment to completely re-design the
picnic grounds at Blackberry Farm, re-align and restore the natural habitat of the creek, renovate the swimming
pool facilities, and build the creek trail, completed major construction and re-opened to the public on July 4,
2009. Outlays for this segment fell to $994,000 during 2009-10 compared to $9,472,000 the previous year as
this year’s work consisted of providing minor improvements to the area facilities. Phase Two, initially budgeted
at $200,000 for designing a trail extension to Stevens Creek Boulevard, began with $37,000 in expenditures for
2009-10. A new third project, the $800,000 Blackberry Farm infrastructure upgrade, kicked off with $33,000
spent in 2009-10 for design. The General Fund financed two-thirds of Phase One, with the City’s recreation
enterprise fund, State grants, and the Santa Clara Valley Water District backing the rest of the undertaking. The
City billed for and received many of the cost-reimbursement grants during this fiscal year, with $2,294,000
received and accrued this year compared to $804,000 the prior year. Moreover, the infrastructure upgrade
project received a $303,000 transfer from the General Fund this year. With the reimbursements and transfers,
the $838,000 fund balance deficit of the past year turned into a current $965,000 positive fund balance
designated for Phase Two and the infrastructure upgrade.
81
CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2010
MAJOR PROPRIETARY FUNDS
Resources Recovery
The City’s solid waste disposal enterprise, operated by a franchise agreement with Recology, experienced little
change in solid waste pickup and debris box revenues compared to the previous year. Operating expenses for
pickup, landfill disposal, recycling, and City administration rose a modest 1%. Operating income declined from
$117,000 to $93,000 this year. With interest earnings of $41,000, net assets increased by $134,000 ending the
year at $5,827,000 in unrestricted net assets. The net asset increase underperformed the $222,000 growth of last
year, because of lower interest earnings from the City’s pooled investment portfolio and the lower operating
income. The City renewed its franchise agreement for five years commencing in November 2010 with a minor
revenue rate increase and a restructuring of how the City and franchisee share revenues and costs.
Blackberry Farm
City employees, with a teaching professional on contract, staff the City-owned Blackberry Farm golf course and
pro shop. Golfing green fees declined at a lower degree that the previous year, as the older demographics of golf
course users continued to negatively impact customer counts.Operating revenues of $569,000 represented a 5%
or $28,000 drop in 2009-10, compared to a 7% and $44,000 decline in 2008-09. Expenses decreased by
$39,000 or 8% finishing at $457,000 this year as water irrigation cost increases of the previous year were
avoided and managed with lower water usage. Increase in net assets was $115,000, an improvement over the
$109,000 of last year. At June 30, 2010, unrestricted net assets were $534,000.
Cupertino Sports Center
Tennis lesson, membership, fitness class and rent revenues of $1,578,000 declined by $154,000 or 9% off of last
year, resulting from a falloff in tennis lesson revenues generated by a private sports operator. Corresponding
contract instructor and in-house staff costs fell by $122,000, but with unchanged facility maintenance costs,
operating income fell to $100,000 in 2009-10, off of the $138,000 produced in 2008-09. After adding-in interest
earnings, the increase in net assets of $104,000 brought ending unrestricted net assets to $346,000 by year-end.
The Sports Center completed $83,000 of tennis court resurfacing and equipment purchases during the year,
enhancing capital assets by that amount.
Recreation Programs
Cultural events, youth and teen programs, sports, dance and fitness classes generated earnings of $2,249,000,
which was $115,000 or 5% less than last year, for this enterprise operated out of the Quinlan Community
Center, Monta Vista Recreation Center, McClellan Ranch, Creekside Park building, eight school sites, and
various parks. Ongoing program expenses, including full-time administrative and programming staff, part-time
activity leaders, and class instructors on contract decreased only $22,000 or 1% from 2008-09. Along with one-
time furniture purchases of $137,000, operating income dropped to $395,000 compared to $624,000 of a year
ago. After adding interest earnings, the fund ended up with an increase in net assets of $413,000 and an
unrestricted net asset balance of $2,355,000. This balance is committed toward future capital improvement and
insurance needs. Memorial Park softball and Library multi-purpose field renovations, park tennis court
resurfacings, and the new Monta Vista Recreation Center roof added $594,000 to capital assets this year.
82
CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2010
CAPITAL ASSETS
At June 30, 2010 the City had $166,703,000, net of depreciation, invested in a broad range of capital assets used
in governmental and business-type activities, as shown in the following table and in Note 6 to the Basic
Financial Statements:
Table 9
Capital Assets, Net of Depreciation, at June 30
(in thousands)
2009,
2010as restated
Government Activities:
Land$ 60,806$ 60,806
Easements 17,939 16,963
Buildings 25,589 26,787
Improvements other than buildings 18,016 17,606
Machinery and equipment 1,377 1,566
Roads, curbs, gutters, sidewalks, medians and bridges 34,676 35,273
Streetlights 85 46
Strom drain structures and mains 5,981 6,701
Traffic signals 1,446 1,527
Total Governmental Activities 165,915 167,275
Business-Type Activities
Buildings 285 -
Improvements other than buildings 387 -
Machinery and equipment 116 136
Total Business Type Activities 788 136
Total City $ 166,703$ 167,411
City capital assets decreased by $708,000 due to normal depreciation. 2008-09 includes $16,963,000 of
easements adopted since 2003 added as a prior year adjustment, with $976,000 of new easements added in
2009-10. Business-type asset gains came from recreational facility improvements.
DEBT ADMINISTRATION
The City’s only long-term debt liability comes from $56,640,000 in Certificates of Participation (COPs) issued
in 2002 by the Cupertino Public Facilities Corporation. The certificates refunded previously issued COPs that
financed the Wilson Park, Blackberry Farm, and Creekside Park purchases, the Memorial Park expansion, the
Quinlan Community Center construction, and the City Hall remodel. It provided capital for the new library
opened in 2004. The serial, fixed interest rate debt ranging from 2% to 5% requires annual debt payments of
$3,534,000 that are covered by the General Fund. The June 30, 2010 outstanding principal of $45,510,000 is
due to be paid off by 2030.
83
CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2010
At June 30, 2010, a total of $35,000 in special assessment district debt was outstanding. This debt is secured by
a traffic impact fee, charged as a special assessment on the three commercial parcels in the district. The City,
which is not liable for the debt, acts solely as the district’s agent for the collection and remittance of the
assessment. The bond will be paid off in September 2010.
More information can be found in Note 7 to the Basic Financial Statements.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This Comprehensive Annual Financial Report is intended to provide a general overview of the City’s finances.
Further information can be provided by the City of Cupertino Finance Department, 10300 Torre Avenue,
Cupertino CA 95014, phone (408) 777-3220, or by the City website at www.cupertino.org.
84
FINANCIAL SECTION
85
NOTES
86
CITY OF CUPERTINO
Statement of Net Assets
June 30, 2010
GovernmentalBusiness-Type
ActivitiesActivitiesTotal
Assets:
Cash and investments39,152,990$ 9,762,252$ 48,915,242$
Restricted cash and investments2,547,475 - 2,547,475
Receivables:
Accounts3,934,978 347,728 4,282,706
Loans1,997,824 - 1,997,824
Prepaid items and other assets96,455 -96,455
Land held for housing development615,000-615,000
Net OPEB assets3,746,683 3,746,683-
Capital assets:
Nondepreciable78,744,826 78,744,826-
Depreciable, net of accumulated depreciation87,170,464788,21387,958,677
Total assets218,006,69510,898,193228,904,888
Liabilities:
Accounts payable and accruals6,035,988415,4826,451,470
Accrued payroll and benefits493,16642,676535,842
Deposits1,608,232 1,608,232-
Unearned revenue32,328548,068580,396
Compensated absences:
Due in one year16,68440,13856,822
Due in more than one year2,491,028 2,491,028-
Claims payable:
Due in one year376,037-376,037
Due in more than one year1,257,906 1,257,906-
Long-term debt:
Due in one year1,500,000 1,500,000-
Due in more than one year44,010,000 44,010,000-
Total liabilities57,821,3691,046,36458,867,733
Net Assets:
Invested in capital assets, net of related debt120,405,290788,213 121,193,503
Restricted for:
Special revenue projects6,582,681 6,582,681-
Affordable housing -1,457,707 1,457,707
Public access television594,110 - 594,110
Debt service57,677 -57,677
Total restricted net assets8,692,175 8,692,175-
Unrestricted 9,063,61631,087,861 40,151,477
$160,185,326 $ 9,851,829 $170,037,155
Total net assets
See accompanying notes to basic financial statements.
87
CITY OF CUPERTINO
Statement of Activities
For the Year Ended June 30, 2010
Net (Expense) Revenue and
Program RevenuesChanges in Net Assets
OperatingCapital
Charges forGrants and Grants andGovernmental Business-type
Functions/ProgramsExpensesServicesContributionsContributionsActivitiesActivitiesTotal
Governmental Activities:
Administration$1,911,665$21,873$ 28,271$ -$(1,861,521)$ -$(1,861,521)
Law enforcement8,385,476811,676166,482 -(7,407,318) -(7,407,318)
Public and environmental affairs 1,653,034 - - -(1,653,034) -(1,653,034)
Administrative services4,080,134 - - -(4,080,134) -(4,080,134)
Recreation services4,444,536930,773 - -(3,513,763) -(3,513,763)
Community development4,351,975 3,310,355 884,714 -(156,906) -(156,906)
Public works19,320,151556,636 963,0905,511,359 -(12,289,066)(12,289,066)
Interest on long - term debt2,076,264 - - -(2,076,264) -(2,076,264)
Total governmental activities46, 5,631,313223,235 2,042,5575,511,359 -(33,038,006)(33,038,006)
Business-type activities:
Resource recovery 2,104,2992,018,147 6,895 - -93,04793,047
Blackberry farm457,169568,770 - - 111,601-111,601
Cupertino sports center1,478,1431,578,330 - - 100,187-100,187
Recreation programs1,854,6482,249,191 - - 394,543-394,543
Total business-type activities5,808,1076,500,5906,895 - 699,378-699,378
Total$ 12,131,90352,031,342$ 2,049,452$ 5,511,359$ (33,038,006) 699,378(32,338,628)
General revenues:
Taxes:
Property taxes -7,488,701 7,488,701
Property tax in lieu of motor vehicle fee4,420,912 4,420,912-
Incremental property tax1,322,925 1,322,925-
Sales taxes9,930,530 9,930,530-
Transient occupancy tax2,142,137 2,142,137-
Utility user tax -3,271,452 3,271,452
Franchise tax2,597,930 2,597,930-
Other taxes1,211,899 1,211,899-
Intergovernmental, unrestricted:
Motor vehicle license fee166,440-166,440
Investment earnings 67,182295,059 362,241
Miscellaneous119,393-119,393
Total general revenues 32,967,378 67,18233,034,560
Change in net assets(70,628)766,560695,932
Net assets, beginning of year, as previously reported 9,085,269143,293,029 152,378,298
Prior period adjustment16,962,925 16,962,925-
Net assets, beginning of year, as restated 9,085,269160,255,954 169,341,223
Net assets, end of year160,185,326$9,851,829$ 170,037,155$
See accompanying notes to basic financial statements
88
CITY OF CUPERTINO
Governmental Funds
Balance Sheet
June 30, 2010
Stevens
PublicCapitalCreekOther
FacilitiesImprovementCorridorGovernmental
GeneralCorporationProjectsParkFundsTotal
Assets:
Cash and investments18,294,292$ 57,677$ $5,562,446$1,009,508$ 31,628,4036,704,480$
Restricted cash and investments - -2,496,972 50,503 -2,547,475
Receivables:
Accounts 3,197,767 - - 349,165 388,0463,934,978
Loans 1,204,540 - - - 793,2841,997,824
Prepaid items 73,474 - - - -73,474
Due from other funds 39,788 - - - -39,788
Land held for housing development - - - - 615,000615,000
Other assets3,884 - - - -3,884
Total assets$22,813,745$2,554,649$5,562,446$1,409,176$8,500,810$40,840,826
Liabilities and Fund Balances:
Liabilities:
Accounts payable and accruals$ 2,878,151$2,496,972$ 238,336$ 95,139$ 271,688$5,980,286
Accrued payroll and benefits 440,206 - - - 28,818469,024
Deposits 1,608,232 - - - -1,608,232
Due to other funds - - - - 39,78839,788
Advance from other funds 504,497 - - - -504,497
Unearned revenue 32,044 - - - 28432,328
Deferred revenue 1,419,497 - - 349,165 139,6381,908,300
Total liabilities 6,882,627 238,3362,496,972 444,304 480,21610,542,455
Fund balances:
Reserved for:
Encumbrances 436,166 - 265,2822,325,674 705,4373,732,559
Debt service - 57,677 - - -57,677
Prepaid items 73,474 - - - -73,474
Loans receivable 1,204,540 - - - 653,6461,858,186
Land held for housing development - - - - 615,000615,000
Low and moderate income housing - - - - 842,707842,707
Public access television 594,110 - - - -594,110
Unreserved, reported in:
General Fund 13,622,828 - - - -13,622,828
Special Revenue Funds - - - - 5,113,0205,113,020
Capital Project Funds - - 699,5902,998,436 90,7843,788,810
Total fund balances 15,931,118 57,677 964,8725,324,110 8,020,59430,298,371
Totalliabilities andfundbalances$22,813,745$2,554,649$5,562,446$1,409,176$8,500,810$40,840,826
See accompanying notes to basic financial statements.
89
CITY OF CUPERTINO
Reconciliation of the Balance Sheet of Governmental Funds to
the Statement of Net Assets - Governmental Activities
June 30, 2010
Total fund balances reported on the governmental funds balance sheet$30,298,371
Amounts reported for governmental activities in the statement of net assets
are different from those reported in the governmental funds above because
of the following:
Capital assets:
Capital assets used in governmental activities are not current assets or financial
resources and therefore are not reported in the governmental funds.164,910,359
Allocation of internal service funds net assets:
Internal service funds are used by management to charge the costs of activities
such as insurance, equipment acquisition and maintenance, and certain
employees' benefits to governmental funds. The assets and liabilities of the
internal service funds are therefore included in governmental activities in
the statement of net assets.11,026,435
Receivables not available:
Certain receivables are not available to pay for current period expenditures
and therefore are deferred in the governmental funds. 1,908,300
Long-term liabilities:
The liabilities below are not due and payable in the current period and therefore
are not reported in the governmental funds:
Certifications of participation(45,510,000)
Compensated absences(2,448,139)
Net assets of governmental activities$160,185,326
See accompanying notes to basic financial statements.
90
CITY OF CUPERTINO
Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balances
For the Year Ended June 30, 2010
Stevens
PublicCapitalCreekOther
FacilitiesImprovementCorridorGovernmental
GeneralCorporationProjectsParkFundsTotal
Revenues:
Taxes29,532,759$ -$ $ -$ 1,461,824-$ 30,994,583$
Use of money and property 685,490 - - -88,729774,219
Intergovernmental625,523 - 115,928 4,504,8842,293,5007,539,835
Licenses and permits2,583,131 - - - 2,583,131-
Charges for services1,333,729 - - - 367,4281,701,157
Fines and forfeitures736,239 - - --736,239
Other81,352 - - - 608,589689,941
Total revenues35,578,223 - 115,928 7,031,4542,293,50045,019,105
Expenditure:
Current:
Administration1,469,004 - - - 1,469,004-
Law enforcement8,384,310 - - - 8,384,310-
Public and environmental affairs1,487,265 - - - 1,487,265-
Administrative services3,733,414 - - - 3,733,414-
Recreation services4,003,764 - - - 4,003,764-
Community development3,069,287 - - - 1,056,4524,125,739
Public works10,802,938 - 631 - 1,157,64911,961,218
Capital outlay -6,110 1,358,010 993,543 2,352,6974,710,360
Debt service:
Principal 1,460,000- - - 1,460,000-
Interest and fiscal charges 2,076,264- - - 2,076,264-
Total expenditures32,956,092 1,358,6413,536,264 993,543 4,566,79843,411,338
Excess (deficiency) of revenues
over (under) expenditures2,622,131 (3,536,264)(1,242,713)1,299,957 2,464,656 1,607,767
Other financing sources (uses)
Transfers in487,015 3,538,000 2,481,845 503,040 778,5177,788,417
Transfers out(9,374,885) (487,015)- (273,517)-(10,135,417)
Total other financing sources (uses) 3,538,000(8,887,870) 1,994,830 503,040 505,000(2,347,000)
Change in fund balances(6,265,739) 1,736 752,117 2,969,6561,802,997(739,233)
Fund balance, beginning of year22,196,857 55,941 (838,125)4,571,993 5,050,93831,037,604
Fund balance, end of year$15,931,118$ 57,677$5,324,110$964,872$ 30,298,3718,020,594$
See accompanying notes to basic financial statements.
91
CITY OF CUPERTINO
Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balances
of Governmental Funds to the Statement of Activities - Governmental Activities
For the Year Ended June 30, 2010
Net change in fund balances - total governmental funds$ (739,233)
Amounts reported for governmental activities in the statement of activities
are different because of the following:
Capital assets transactions:
Governmental Funds report capital outlays as expenditures. However, in the statement of
activities, the cost of those assets is capitalized and allocated over their estimated useful
lives and reported as depreciation expense.
Expenditures for capital assets reported as:
Capital outlay4,710,360
Public works235,282
Easement received during the year975,820
Less current year depreciation(7,148,481)
Net effect of sales/disposal of capital assets(2,335)
Long term debt transactions:
Repayment of bond principal is an expenditure in the governmental funds, but in the
statement of net assets the repayment reduces long-term liabilities.1,460,000
Accrual of noncurrent items:
The amounts below included in the statement of activities do not provide or (require)
the use of current financial resources and therefore are not reported as revenues or
expenditures in governmental funds (net change):
Change in compensated absences(79,209)
Change in deferred revenue61,923
Allocation of internal service funds' activities:
Internal service funds are used by management to charge the costs of activities, such
as insurance, equipment acquisition and maintenance, and employees' benefits to
individual funds. The portion of the net revenue (expense) of these Internal Service
Funds arising out of their transactions with governmental funds is reported with
governmental activities.
Change in net assets - internal service funds455,245
Change in net assets of governmental activities$ (70,628)
See accompanying notes to basic financial statements.
92
CITY OF CUPERTINO
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
For the Year Ended June 30, 2010
Variance with
Budgeted AmountsFinal Budget
ActualPositive
OriginalFinalAmounts(Negative)
Revenues:
Taxes32,729,000$ 30,858,503$ 29,532,759$ (1,325,744)$
Use of money and property 891,0001,391,000 685,490 (205,510)
Intergovernmental415,000492,296625,523133,227
Licenses and permits3,210,0003,210,0002,583,131(626,869)
Charges for services1,834,0001,434,0001,333,729(100,271)
Fines and forfeitures902,000902,000736,239(165,761)
Other100,000100,00081,352(18,648)
Amounts available for appropriation40,581,00037,887,79935,578,223(2,309,576)
Charges for appropriation (outflows):
Current:
Administration1,546,9921,517,0041,469,004 48,000
Law enforcement8,536,6368,565,6368,384,310 181,326
Public and environmental affairs1,499,5631,494,5221,487,265 7,257
Administrative services4,254,6194,062,6413,733,414 329,227
Recreation services4,366,5604,289,5494,003,764 285,785
Community development3,733,4233,560,7503,069,287491,463
Public works11,550,99311,803,70010,809,048994,652
Total charges for appropriations35,488,78635,293,80232,956,0922,337,710
Excess of revenues over expenditures5,092,2142,593,9972,622,13128,134
Other financing sources (uses)
Transfers in- 991,512 487,015 (504,497)
Transfers out(7,573,000) (9,374,885) (9,374,885) -
Total other financing sources (uses)(7,573,000) (8,383,373) (8,887,870) (504,497)
Change in fund balance(2,480,786)$ (5,789,376)$ (6,265,739) (476,363)$
Fund balance, beginning of year22,196,857
Fund balance, end of year$15,931,118
See accompanying notes to basic financial statements.
93
CITY OF CUPERTINO
Proprietary Funds
Statement of Fund Net Assets
June 30, 2010
Business-type Activities-Enterprise FundsGovernmental
Cupertino Activities -
Resources Blackberry Sports Recreation Internal Service
RecoveryFarmCenterProgramsTotalsFunds
Assets:
Current assets:
Cash and investments5,659,856$ 574,627$$ 612,293$2,915,476$ 7,524,5879,762,252$
Accounts receivable 334,701 - 71912,308347,728 -
Prepaid items- - - - - 19,097
Total current assets 5 ,994,557 574,627 613,012 10,109,9802,927,784 7,543,684
Noncurrent assets:
Advances to other funds- - - - 504,497-
Net OPEB assets- - - - 3,746,683-
Capital assets:
Depreciable, net of
accumulated depreciation40,5374,298 126,151 617,227 7 88,2131,004,931
Total noncurrent assets40,5374,298 126,151 617,227 7 88,2135,256,111
Total assets 6 ,035,094 578,925 739,163 10,898,1933,545,011 12,799,795
Liabilities:
Current liabilities:
Accounts payable and accruals 1 58,178 16,419 154,791 86,094 4 15,48255,702
Accrued payroll and benefits5,154 3,658 7,81226,05242,676 24,142
Compensated absences3,73920,12316,276 - 40,138 16,684
Claims payable- - - - 376,037-
Unearned revenue- -87,661 460,407548,068 -
Total current liabilities167,071 40,200 266,540 572,553 1 ,046,364472,565
Noncurrent liabilities:
Compensated absences, net
of current portion- - - - - 42,889
Claims payable, net of current portion- - - - 1,257,906-
Total liabilities167,071 40,200 266,540 572,553 1 ,046,3641,773,360
Net assets:
Invested in capital assets40,537 4,298 126,151 617,227 7 88,2131,004,931
Unrestricted 5,827,486 534,427 346,472 9,063,6162,355,23110,021,504
Total net assets $ 538,7255,868,023$$ 472,623$2,972,458$ 11,026,4359,851,829$
See accompanying notes to basic financial statements.
94
CITY OF CUPERTINO
Proprietary Funds
Statement of Revenues, Expenses and Changes in Fund Net Assets
For the Year Ended June 30, 2010
Business-type Activities-Enterprise FundsGovernmental
Cupertino Activities-
Resources Blackberry Sports Recreation Internal Service
RecoveryFarmCenterProgramsTotalsFunds
Operating revenues:
Charges for services$ 554,5022,104,299$$1,575,672$2,249,049$ 2,686,0106,483,522$
Other 6,895 14,268 2,658 142 23,96322,633
Total operating revenues 2,111,194 568,770 1,578,330 2,249,191 6,507,4852,708,643
Operating expenses:
Salaries and benefits 171,921 129,821 289,420 484,313 1,075,4753,205,703
Materials and supplies 21,653 70,880 153,427 157,026 402,986415,155
Contractual services 1,821,221 255,531 1,020,882 1,206,957 4,304,591359,194
Insurance claims and premium - - - - -340,023
Depreciation 3,352 937 14,414 6,352 25,055376,082
Total operating expenses 2,018,147 457,169 1,478,143 1,854,648 5,808,1074,696,157
Operating income (loss) 93,047 111,601 100,187 394,543 699,378(1,987,514)
Nonoperating revenues:
Investment income 41,141 3,764 3,731 18,546 67,18295,759
Income (loss) before transfers 134,188 115,365 103,918 413,089 766,560(1,891,755)
Transfers in - - - - -2,347,000
Change in net assets 134,188 115,365 103,918 413,089 766,560455,245
Net assets, beginning of year 5,733,835 423,360 368,705 9,085,2692,559,369 10,571,190
Net assets, end of year$ 538,7255,868,023$ $ 472,623$2,972,458$ 11,026,4359,851,829$
See accompanying notes to basic financial statements.
95
CITY OF CUPERTINO
Proprietary Funds
Statement of Cash Flows
For the Year Ended June 30, 2010
Business-type Activities-Enterprise FundsGovernmental
Cupertino Activities-
Resources Blackberry Sports RecreationInternal Service
RecoveryFarmCenterProgramsTotalsFunds
Cash flows from operating activites:
Cash received from customers$2,114,592$568,770$1,560,264$2,189,382$ 2,708,6436,433,008$
Cash payments to suppliers for goods and services(1,845,500)(340,604)(1,213,501)(1,345,099)(4,744,704)(942,337)
Cash payments to employees(169,460)(126,161)(288,454)(481,202)(1,065,277)(1,734,443)
Cash payments for judgment and claims- - - - -(272,065)
Net cash provided by(used in)
operating activities99,632 102,005 58,309 363,081623,027(240,202)
Cash flows from noncapital financing activities:
Contributions to an irrevocable trust- - - - -(7,000,000)
Transfers in- - - - 2,347,000-
Advances to other funds- - - - -(504,497)
Cash flows used in noncapital financing activities- - - - -(5,157,497)
Cash flows from capital and related financing activities:
Acquisition of capital assets- -(82,675)(594,466)(677,141)(245,896)
Cash flows from investing activities:
Interest received 41,141 3,764 3,731 18,546 67,182 95,759
Net change in cash and cash equivalents140,773105,769(20,635)(212,839)13,068(5,547,836)
Cash and cash equivalents, beginning of year 468,8585,519,083 632,928 9,749,1843,128,31513,072,423
$ 5,659,856 $ 574,627 $ 612,293 $ 2,915,476 $ 9,762,252 $ 7,524,587
Cash and cash equivalents, end of year
Reconciliation of operating income (loss) to
net cash provided by(used in) operating activities:
Operating income (loss)$93,047$ 111,601$ 100,187$ 394,543$ 699,378$(1,987,514)
Adjustments to reconcile operating income (loss) to
net cash provided by(used in) operating activities:
Depreciation3,352 937 14,414 6 ,35225,055376,082
Contributions to an irrevocable trust for
current year's annual OPEB cost- - - - 1,426,240-
Change in assets and liabilities:
Accounts receivable3,398 -(719) 2 ,358 5,037 -
Prepaid items- - - - -(19,097)
Accounts payable and accruals(2,626)(14,193)(39,192)18,884(37,127)(135,957)
Accrued payroll and benefits1,017 574 771 3 ,111 5,473 5,086
Unearned revenue- -(17,347)(62,167)(79,514) -
Compensated absences1,444 3,086 195 - 4,725 29,015
Claims payable- - - - - 65,943
Net cash provided by(used in)
$ 99,632 $ 102,005 $ 58,309 $ 363,081 $ 623,027 $ (240,202)
operating activities
See accompanying notes to basic financial statements.
96
CITY OF CUPERTINO
Statement of Fiduciary Assets and Liabilities
June 30, 2010
Agency
Fund
Assets:
Cash and investments118,241$
Total assets118,241$
Liabilities:
Deposits118,241$
Total liabilities$ 118,241
See accompanying notes to basic financial statements.
97
CITY OF CUPERTINO
Notes to Basic Financial Statements
For the Year Ended June 30, 2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Reporting Entity
The City of Cupertino, California (the City) was incorporated on October 3, 1955, under the laws of the
State of California. The City operates under a Council - City Manager form of government and provides
services through the following departments: Administrative Services, Community Development, City
Manager, Parks and Recreation, Public and Environmental Affairs, and Public Works/Engineering. Fire
services are provided by the Santa Clara County Fire District, and the City contracts with the Santa
Clara County Sheriff’s Department for police services, and with Recology for garbage and recycling
services.
The accompanying basic financial statements include all funds and boards and commissions that are
controlled by the City Council. The basic financial statements include the City’s blended component
units, entities for which the City is considered to be financially accountable. A blended component
unit, although a legally separate entity, is in substance, part of the City’s operations and so data from
this unit is combined with the City.
Blended component units - The Cupertino Public Facilities Corporation (the Corporation) was
incorporated in May 1986, under the Nonprofit Public Benefit Corporation Law of the State of
California. The Corporation was organized as a nonprofit corporation for the purpose of assisting the
City in the acquisition, construction, and financing of public improvements which are of public benefit
to the City. The Corporation, after acquiring certain properties from the City, leases these back to the
City. The lease money provides the funds for the debt service for the Certificates of Participation issued
by the Corporation to acquire the properties.
The Cupertino Redevelopment Agency was formed in 2000 under the California Health & Safety Code
to assist in the elimination of areas considered to be in a blighted condition. The City Council acts as the
Board of Directors of the Corporation and the Agency. The Mayor and Vice Mayor of the City have
been elected President and Vice President, respectively, of the Corporation. The City Clerk has been
elected Secretary, and the City’s Director of Administrative Services has been appointed Treasurer of
both entities.
The Corporation does not issue separate financial statements, since it is reported separately in the City’s
basic financial statements. The Redevelopment Agency’s separate report is available from the City of
Cupertino’s website at www.cupertino.org.
(b) Measurement Focus, Basis of Accounting and Basis of Presentation
The City’s basic financial statements are prepared in conformity with accounting principles generally
accepted in the United States. The Government Accounting Standards Board (GASB) is the
acknowledged standard setting body for establishing accounting and financial reporting standards
followed by governmental entities in the United States.
98
CITY OF CUPERTINO
Notes to Basic Financial Statements
For the Year Ended June 30, 2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(b) Measurement Focus, Basis of Accounting and Basis of Presentation (continued)
Government-wide Statements - The Statement of Net Assets and the Statement of Activities display
information about the primary government (the City) and its component units. These statements include
the financial activities of the overall City government, except for fiduciary activities. These statements
distinguish between the governmental and business-type activities of the City. Governmental activities
generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions.
Business-type activities are financed in whole or in part by fees charged to external parties.
The Statement of Activities presents a comparison between expenses and program revenues for each
segment of the business-type activities of the City and for each function of the City’s governmental
activities. Expenses include direct and indirect types. Direct expenses are those that are specifically
associated with a program or function and, therefore, are clearly identifiable to a particular function.
Indirect expenses such as depreciation, information technology, insurance and equipment replacement
are included in expenses for individual activities and functions. Program revenues include (a) charges
paid by the recipients of goods or services offered by the programs and (b) grants and contributions that
are restricted to meeting the operational or capital needs of a particular program. Revenues that are not
classified as program revenues, including taxes, are presented as general revenues. Program revenues
and direct expenses related to interfund services are included and indirect expenses funded by interfund
transfers are excluded from the Statement of Activities. The Statement of Net Assets eliminates
interfund balances between governmental funds and interfund balances between proprietary funds.
Fund Financial Statements -The fund financial statements provide information about the City’s
funds, including fiduciary funds and blended component units. Separate statements for each fund
category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial
statements is on major individual governmental and enterprise funds, each of which is displayed in a
separate column. All remaining governmental funds are aggregated and reported as nonmajor funds.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions
associated with the principal activity of the fund. Exchange transactions are those in which each party
receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and
investment earnings, result from nonexchange transactions or ancillary activities.
99
CITY OF CUPERTINO
Notes to Basic Financial Statements
For the Year Ended June 30, 2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(b) Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
Major Funds - The City’s major governmental and enterprise funds are identified and presented
separately in the fund financial statements. All other funds, called nonmajor funds, are combined and
reported in a single column, regardless of their fund type.
Major funds are defined as funds, which have either assets, liabilities, revenues or expenditures in
excess of ten percent of their fund-type total and five percent of the aggregate total for both
governmental funds and enterprise funds. The General Fund is always a major fund. The City may
select other funds it believes should be presented as major funds.
The City reported the following major governmental funds in the accompanying financial statements:
TheGeneral Fund is the general operating fund of the City. It is used to account for all financial
resources except those that are required to be accounted for in another fund.
ThePublic Facilities Corporation Debt Service Fund accounts for the payments of principal and
interest on certificates of participation issued to provide for the advance refunding of the City
Hall/Library, Wilson Park and Memorial Park certificates of participation.
TheCapital Improvement Projects Fund accounts for activities related to the acquisition or
construction of major capital facilities.
TheStevens Creek Corridor Park Capital Projects Fund accounts for the design and construction of
the Stevens Creek Corridor Park projects.
The City reports all its enterprise funds as major funds in the accompanying financial statements:
TheResources Recovery Fund accounts for activity related to the collection and disposal of solid
waste. A private company has been issued an exclusive franchise to perform these services.
TheBlackberry Farm Fund accounts for activities related to the municipal golf course.
TheCupertino Sports Center Fund accounts for the operation and maintenance of the Cupertino Sports
Center.
TheRecreation Programs Fund accounts for activities of the City’s community centers and park
facilities.
The City also reports the following fund types:
Internal Service Funds. These funds account for workers’ compensation, management information
systems maintenance and replacement, equipment maintenance and replacement, retiree health costs,
accrued leave payouts, and long-term disability coverage; all of which are provided to other departments
on a cost-reimbursement basis.
Fiduciary Fund. The City acts as an agent for repayment of certain special assessment debt described
in Note 7. This fund accounts for the tax assessments used for bond payments.
100
CITY OF CUPERTINO
Notes to Basic Financial Statements
For the Year Ended June 30, 2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(b) Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
Basis of Accounting - The government-wide and proprietary financial statements are reported using the
economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded
whenearned and expenses are recorded at the time liabilities are incurred, regardless of when the
related cash flows take place.
Governmental funds are reported using the current financial resources measurement focus and the
modified accrual basis of accounting. Under this method, revenues are recognized when measurable
and available. The City considers all revenues reported in the governmental funds to be available if the
revenues are collected within sixty days after year-end. Expenditures are recorded when the related
fund liability is incurred, except for principal and interest on long-term debt which are recognized as
expenditures to the extent the City has provided financial resources to a debt service fund for payment
of these liabilities that mature early in the following year. General capital asset acquisitions are reported
asexpenditures in governmental funds. Proceeds from long-term debt and acquisitions under capital
leases are reported as other financing sources.
Unearned revenues are considered on a full accrual basis, while deferred revenues are based on the
modified accrual measure.
Fiduciary financial statements consisting of agency funds, report only assets and liabilities, and
therefore have no measurement focus. They recognize receivables and payables on a full accrual basis.
Property taxes, transient occupancy taxes, utility taxes, franchise taxes, interest and special assessments
are susceptible to accrual. Other receipts and taxes are recognized as revenue when the cash is received.
Sales taxes collected and held by the state at year end on behalf of the City are also recognized as
revenue. Sales taxes rebates which are contingent on revenues collected are netted against the related
revenues.
Under the terms of grant agreements, the City may fund certain programs with a combination of cost-
reimbursement grants, categorical block grants, and general revenue. The City’s policy is to first apply
restricted grant resources to such programs, followed by general revenues if necessary. Grant revenues
are recognized after eligibility and billing occurs, but may be deferred if not received within sixty days
of year-end. Because of the cost-reimbursement and recognition nature of some grants, certain capital
project funds may carry deficit fund balances until billing and receipt of grants. The City may also front
the capital outlays with cash advances from other funds.
Non-exchange transactions, in which the City gives or receives value without directly receiving or
giving equal value in exchange, include property taxes, grants, entitlements, and donations. On the
accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied
or assessed. Revenue from grants is recognized as described above. Entitlement and donation revenues
are recognized when cash is received.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989,
generally are followed in both the government-wide statements for the business-type activities and
proprietary fund financial statements to the extent that those standards do not conflict with or contradict
guidance of GASB. Governments also have the option of following subsequent private-sector guidance
for business-type activities and enterprise funds, subject to the same limitation. The City has elected not
to follow subsequent private-sector guidance.
101
CITY OF CUPERTINO
Notes to Basic Financial Statements
For the Year Ended June 30, 2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(c) Budgetary Practices
The budget of the City is a detailed operating plan which identifies estimated costs and results in
relation to estimated revenues. The budget includes (1) the programs, projects, services and activities to
be provided during the fiscal year; (2) estimated revenue available to finance the operating plan; and (3)
the estimated spending requirements of the operating plan. The budget represents a process through
which policy decisions are made, implemented and controlled. The City prohibits expending funds for
which there is no legal appropriation. Operating appropriations lapse at fiscal year end.
In May of each year, the City Manager submits to the City Council a proposed budget for the fiscal year
beginning July 1. Public hearings on the proposed budget are held during the month of June and the
budgets for all fund types are legally adopted by Resolution prior to June 30. Original budget amounts
are presented on the accompanying budgetary statements include these legally adopted amounts.
The City’s legal level of budgetary control is at the functional level. The City Manager is responsible
for controlling the City’s expenditures in accordance with the adopted budget. The City Manager is
authorized to transfer appropriations within functional expenditure classifications. Any revision which
requires transfers between functional expenditure classifications or increases total appropriations must
be approved by the City Council. Requests for additional personnel or capital outlay also require the
approval of the City Council.
Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting
principles. Budget information is presented for the general, special revenue and debt service funds only.
Capital projects funds are budgeted on a long-term project-by-project basis and, hence, budgets for these
funds are not presented in the basic financial statements.
(d) Cash and Investments
The City pools its cash resources, consisting of cash and investments, of all funds for investment except
for restricted funds generally held by an outside fiscal agent. Cash amounts are reported net of
outstanding warrants. Investments are stated at fair value.
102
CITY OF CUPERTINO
Notes to Basic Financial Statements
For the Year Ended June 30, 2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(e) Capital Assets
Capital assets are recorded at cost or estimated historical cost if purchased or constructed. Donated
capital assets are recorded at their estimated fair value on the date donated. Public domain
(infrastructure) capital assets consisting of roads, bridges, curbs, gutters, medians, sidewalks, drainage
and lighting systems have been capitalized and depreciated. Capital assets are defined as assets with an
initial individual cost of more than $5,000 for general capital assets and $100,000 for intangible assets.
Depreciation is recorded using the straight-line method over the following useful lives:
Years
Buildings15 - 25
Improvements10 - 15
Vehicles4 - 10
Street equipment3 - 20
Water equipment3 - 50
Office equipment3 - 5
Road, curbs, gutters, sidewalks, medians and bridges30 - 40
Streetlights20
Storm drain structure and mains40
Traffic signals20
Major outlays for capital assets and improvements are capitalized as projects are constructed. For
enterprise funds, interest incurred during the construction phase is reflected in the capitalized value of
the asset constructed, net of interest earned on the invested proceeds over the same period. Some capital
assets may be acquired using federal and state grant funds, or they may be contributed by developers or
other governments. These contributions are accounted for as revenues at the time the capital assets are
contributed.
(f) Land Held for Redevelopment
Land held for redevelopment of $615,000 at June 30, 2010 is stated at the lowest of historical cost, net
realizable value determined upon the execution of disposition and development agreement, or agreed-
upon sales price. The land was purchased using Federal grant funds for housing activities.
(g) Claims and Judgment Payable
Claims and judgments payable are accrued when the liability is incurred and the amount can be
reasonably estimated. Claims and judgments payable are recorded in an internal service fund for
workers’ compensation and long-term disability, and other claims and judgments are recorded in the
General Fund or enterprise funds, as appropriate.
103
CITY OF CUPERTINO
Notes to Basic Financial Statements
For the Year Ended June 30, 2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(h) Compensated Absences
Compensated absences comprise vested accumulated vacation and sick leave. The City’s liability for
compensated absences is recorded in governmental or business-type activities as appropriate. The
liability for compensated absences is determined annually. For all governmental funds, amounts
expected to be “permanently liquidated,” such as what is due to be paid because of a realized
employment action, are recorded as fund liabilities; the long-term portion is recorded in the Statement of
Net Assets.
Compensated absences are liquidated by the fund that has recorded the liability. The long-term portion
of governmental activities compensated absences are liquidated primarily by the General Fund, using
the Compensated Absences and Long-Term Disability internal service funds to account for termination
payouts.
The changes in compensated absences for the year ended June 30, 2010 were as follows:
GovermentalBusiness-Type
ActivitiesActivitiesTotal
Balance, beginning of year2,399,488$ 35,413$ 2,434,901$
Additions1,238,874 27,908 1,266,782
Payments(1,130,650) (23,183) (1,153,833)
Balance, end of year2,507,712 40,138 2,547,850
Less current portion(16,684) (40,138) (56,822)
Non-current portion2,491,028$ $ - $ 2,491,028
(i) Fund Equity
Reservations of fund balances represent those portions of fund balances which are not available for
appropriation or expenditure or are legally restricted for a specific future use. Designated fund balances
represent management’s tentative plans for future use of financial resources.
(j) Property Tax Calendar
All property taxes are levied and collected by the County of Santa Clara. Secured taxes are levied on
July 1, are due in two installments on November 1 and February 1 and become delinquent after
December 10 and April 10. Unsecured taxes are levied on July 1 and become delinquent on August 31.
The lien date for secured and unsecured property taxes is January 1.
The City, in fiscal year 1993-94, adopted an alternative method of property tax distribution (the “Teeter
Plan”). Under this method, the City receives 100% of its secured property tax levied in exchange for
foregoing any interest and penalties collected on delinquent taxes. The City receives remittances as a
series of advances made by the County during the year.
104
CITY OF CUPERTINO
Notes to Basic Financial Statements
For the Year Ended June 30, 2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(k) Interfund Transactions
Transactions constituting reimbursements to a fund for expenditures/expenses initially made from it that
are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund
and as reductions of expenditures/expenses in the fund that is reimbursed.
(l) Statement of Cash Flows
For purposes of reporting cash flows for the City’s proprietary funds, pooled cash and investments are
considered cash equivalents as the proprietary funds can access pooled cash and investments in a
manner similar to a demand deposit account.
(m) Prepaid Items
Prepaid items are reported under the consumption method, which recognizes the expenditures/expense
in the period associated with the service rendered or goods consumed.
(n) Effects of New Pronouncements
During the year ended June 30, 2010, the City implemented the following GASB Statement:
In June 2007, GASB issued Statement No. 51, Accounting and Financial Reporting for Intangible
Assets. This Statement requires that all intangible assets not specifically excluded by its scope
provisions be classified as capital assets. Accordingly, existing authoritative guidance related to the
accounting and financial reporting for capital assets should be applied to these intangible assets, as
applicable. This Statement also provides authoritative guidance that specifically addresses the nature of
these intangible assets. Such guidance should be applied in addition to the existing authoritative
guidance for capital assets. The requirements of this Statement are effective for financial statements for
periods beginning after June 15, 2009.
With the implementation of GASB Statement No. 51, the City reevaluated its capital assets inventory
and determined that easements totaling $16,962,925 should have been capitalized as of June 30, 2009.
As a result, beginning net assets and capital assets for governmental activities have been restated to
correct this error and these balances were increased by $16,962,925.
The City is currently analyzing its accounting practices to determine the potential impact on the
financial statements for the following GASB Statements:
In March 2009, GASB issued Statement No. 54, Fund Balance Reporting and Governmental Fund Type
Definitions. The objective to this Statement is to enhance the usefulness of fund balance information by
providing clearer fund balance classifications that can be more consistently applied and by clarifying the
existing governmental fund type definitions. This Statement establishes fund balance classifications
that comprise a hierarchy based primarily on the extent to which a government is bound to observe
constraints imposed upon the use of the resources reported in governmental funds. Application of this
Statement is effective for the City’s fiscal year ending June 30, 2011.
105
CITY OF CUPERTINO
Notes to Basic Financial Statements
For the Year Ended June 30, 2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
In June 2010, GASB issued Statement No. 59, Financial Instruments Omnibus. This statement updates
and improves existing standards regarding financial reporting of certain financial instruments and
external investment pools. Application of this Statement is effective for the City’s fiscal year ending
June 30, 2011.
(o) Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in
the United States of America requires management to make estimates and assumptions that affect
certain amounts and disclosures. Accordingly, actual results could differ from those estimates.
NOTE 2 – CASH AND INVESTMENTS
The City’s pooled idle funds are invested pursuant to investment policy guidelines adopted by the City Council.
The objectives of the policy are to invest funds to the fullest extent possible and to invest in accordance with the
provisions of the California Government Code with the priority of safety, liquidity and yield. The policy addresses
the safekeeping of securities, types of investment instruments, diversification, maturities, reporting requirements,
and internal control. The City maintains a cash and investment pool that is available for use by all funds. Each fund
type’s portion of this pool is displayed on the Statement of Net Assets and the balance sheet as “cash and
investments.”
(a) Policies
California Law requires banks and savings and loan institutions to pledge government securities with a
market value of 110% of the City’s cash on deposit, or first trust deed mortgage notes with a market value
of 150% of the deposit, as collateral for these deposits. Under California Law, this collateral is held in a
separate investment pool by another institution in the City’s name and places the City ahead of general
creditors of the institution.
The City and its fiscal agents invest in individual investments and in investment pools. Individual
investments are evidenced by specific identifiable securities instruments, or by an electronic entry
registering the owner in the records of the institution issuing the security, called the book entry system.
Security instruments owned by the City are held in safekeeping by a third party custodian acting as agent
for the City under the terms of a custody agreement.
The City’s investments are carried at fair value. The City adjusts the carrying value of its investments to
reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in investment
income for that fiscal year.
106
CITY OF CUPERTINO
Notes to Basic Financial Statements
For the Year Ended June 30, 2010
NOTE 2 – CASH AND INVESTMENTS (Continued)
(b) Classification
The City's total cash and investments, at fair value, are presented on the accompanying financial
statements in the following allocation:
PrimaryAgency
GovernmentFundsTotal
Cash and investments48,915,242$ $ 118,241$49,033,483
Restricted cash and investments:
Held by Fiscal Agent for bond repayments 2,496,972 - 2,496,972
Held in escrow accounts for contractor retentions 50,503 - 50,503
Total restricted cash and investments 2,547,475 - 2,547,475
Total cash and investments$ 51,462,717$ 118,241$51,580,958
(c) Authorized Investments by the City
The City’s Investment Policy and the California Government Code allow the City to invest its pooled
idle funds in the following, under limits and provisions that address interest rate risk, credit risk, and
concentration of credit risk. This does not include the City’s investments of debt proceeds held by fiscal
agents that are governed by the provisions of debt agreements of the City.
MinimumMaximumMaximum
MaximumCreditPercentage ofInvestment in
Authorized Investment TypeMaturityQualityPortfolioOne Issuer
U.S. Treasury Obligations
5 yearsN/ANoneNone
U.S. Agency Securities *5 yearsN/ANoneNone
California Local Agency InvestmentUp to $50
N/AN/ANone
million
Fund (LAIF)
Non-negotiable Certificates of
10% of portfolio;
5 yearsN/A30% ***
Deposits (time deposits)5% of issuer's net worth. **
State of California registered state
5 yearsN/ANoneNone
warrants, treasury notes, or bonds
California local agency bonds, notes,
5 yearsN/ANoneNone
warrants, or other obligations
Bond issued by the local agency5 yearsN/ANoneNone
Bankers' Acceptances180 daysN/A40%None
10% of portfolio;
Commercial Paper270 daysA-1+/P-125%5% of issuer's net worth;
10% of outstanding paper of issuer. **
10% of portfolio;
Negotiable Certificates of Deposit5 yearsN/A30%
5% of issuer's net worth. **
portfolio;
10% of
Repurchase Agreements1 yearN/ANone
5% of issuer's net worth. **
10% of portfolio;
Medium Term Corporate Notes5 yearsA or better30%
5% of issuer's net worth. **
Money market mutual funds investing
in U.S. Treasury, Government
gency securities or repurchase
A
5 yearsAaa/AAA20%None
agreements collaterized by
U.S. Treasury or Government
Agency securities
*SecuritiesissuedbyagenciesofthefederalgovernmentsuchastheGovernmentNationalMortgageAssociation(GNMA),theFederalFarm
CreditSystem(FFCB),theFederalHomeLoanBank(FHLB),theFederalNationalMortgageAssociation(FNMA),theStudentLoanMarketing
Association (SLMA), and the Federal Home Loan Mortgage Association (FHLMC).
**Represents restriction in which the City’s investment policy is more restrictive than the California Government Code.
***30% maximum % of portfolio if using a private sector entity to assist in the placement of the time deposits. No maximum for others.
107
CITY OF CUPERTINO
Notes to Basic Financial Statements
For the Year Ended June 30, 2010
NOTE 2 – CASH AND INVESTMENTS (Continued)
(d) Authorized Investments by Debt Agreements
The City must maintain required amounts of cash and investments with trustees or fiscal agents under
the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged reserves to
be used if the City fails to meet its obligations under these debt issues. The California Government
Code requires these funds to be invested in accordance with City ordinances, bond indentures or State
statutes. The City’s Investment Policy allows investments of bond proceeds to be governed by
provisions of the related bond indentures. The following identifies the investment types that are
authorized for investments held by fiscal agents under the terms of the bond indentures of the related
debt issue:
MinimumMaximum
MaximumCreditPercentage of
Authorized Investment TypeMaturityQualityPortfolio
U.S. Treasury obligations
N/AN/ANone
Federal agencies obligations which represent full faith
N/AN/ANone
and credit of the U.S.
Direct federal agencies obligations which are not fully
N/AN/ANone
guaranteed by the full faith and credit of the U.S.
U.S. dollar denominated deposit accounts, federal funds and
360 daysP-1, A-1+, A-1None
bankers' acceptances with domestic commercial banks
Commercial Paper270 daysP-1, A-1None
Money market fundsN/AAaam or AAAm-GNone
Pre-refunded municipal obligations that are not callable
Highest rating
prior to maturity or as to which irrevocable instructionsN/ANone
category
have been given to call on the date specified in the notice
General obligations of states
N/AA2, ANone
greements or other forms of investments,
Investment a
including repurchase agreements, approved by the N/AN/ANone
financial guaranty insurance carrier.
California Local Agency Investment Fund (LAIF)N/AN/AUp to $50 million
Shares in a California common law trust established pursuant
to Title 1, Division 7, Chapter 5 of the California Government
Code which invests exclusively in investments permitted by N/AN/ANone
Section 53635 of Title 5, Division 2, Chapter of the California
Government Code, as it may be amended.
108
CITY OF CUPERTINO
Notes to Basic Financial Statements
For the Year Ended June 30, 2010
NOTE 2 – CASH AND INVESTMENTS (Continued)
(e) Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair
value to changes in market interest rates.
Information about the sensitivity of the fair values of the City’s investments (including investments held
by bond trustees) to market interest rate fluctuations is provided by the following table that shows the
distribution of the City’s investments by maturity or earliest call date:
Maturities in
Less Than3 to 12
Investment Type3 MonthsMonthsTotal
Pooled investments
U.S. Treasury Securities8,026,120$ 30,508,620$ 38,534,740$
Federal Agency Obligations 1,010,000 - 1,010,000
Local Agency Investment Fund - 593,219 593,219
Money Market Mutual Funds 8,396,571 - 8,396,571
Non-Negotiable Certificates of Deposit - 98,988 98,988
Total pooled investments
17,432,691 31,200,827 48,633,518
Investment held by fiscal agent
Money Market Mutual Funds 2,496,972 - 2,496,972
Total investments
$ 19,929,663$31,200,827 51,130,490
Cash in banks and on hand 399,965
Cash held in escrow accounts for contractor retentions 50,503
Total cash and investments$51,580,958
The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by California
Government Code Section 16429 under the oversight of the Treasurer of the State of California. The
Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of
five members as designated by State Statute. The City reports its investment in LAIF at the fair value
amount provided by LAIF, which is the same as the value of the pool share. The balance is available for
withdrawal on demand, and is based on the accounting records maintained by LAIF, which are recorded
on an amortized cost basis. Included in LAIF’s investment portfolio are U.S. Treasuries, Federal
Agency obligations, time deposits, negotiable certificates of deposits, commercial paper, corporate
bonds, and security loans. As of June 30, 2010, the total amount recorded by all participating public
agencies in LAIF was approximately $23.3 billion. Of that amount, 94.58% was invested in non-
derivative financial products and 5.42% in structured notes and asset backed securities. These
investments had weighted average maturity of 203 days.
Money market mutual funds are available for withdrawal on demand. At June 30, 2010, money market
mutual funds in the pooled investment and held by fiscal agent had weighted average maturity of 51
days and 7 days, respectively.
109
CITY OF CUPERTINO
Notes to Basic Financial Statements
For the Year Ended June 30, 2010
NOTE 2 – CASH AND INVESTMENTS (Continued)
(f) Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the
investment. This is measured by the assignment of a rating by a nationally recognized statistical rating
organization. Presented below is the actual rating as of June 30, 2010 for each investment type,
including those with fiscal agents, as provided by Moody’s ratings:
Investment TypeRatingsTotal
Federal Agency ObligationsAaa$1,010,000
Money Market Mutual FundsAaam10,893,543
Total rated11,903,543
Exempt from credit rating disclosure:
U.S. Treasury Securities38,534,740
Not rated:
Local Agency Investment Fund 593,219
Non-Negotiable Certificates of Deposit 98,988
Total investments$51,130,490
(g) Concentration of Credit Risk
The City’s investment policy contains certain limitations on the amount that can be invested in any one
issuer. In certain categories, these limitations are more restrictive than those required by California
Government Code Sections 53600 et seq. Excluding those issued or explicitly guaranteed by the U.S.
government and investments in the local agency investment fund and mutual funds, the City did not
have investments that represent 5% or more of total City-wide investments.
NOTE 3 – PROPOSITION 1A BORROWING BY THE STATE OF CALIFORNIA
Under the provisions of Proposition 1A and as part of the 200910 budget package passed by the
California state legislature on July 28, 2009, the State of California borrowed 8% of the amount of
property tax revenue, including those property taxes associated with the inlieu motor vehicle license
fee, the triple flip in lieu sales tax, and supplemental property tax, apportioned to cities, counties and
special districts (excluding redevelopment agencies). The State of California is required to repay this
borrowing plus interest by June 30, 2013. After repayment of this initial borrowing, the California
legislature may consider only one additional borrowing within a tenyear period. The amount of this
borrowing pertaining to the City was $1,419,497.
This borrowing by the State of California was recognized as a receivable in the accompanying basic
financial statements. Under the modified accrual basis of accounting, the borrowed tax revenues are not
permitted to be recognized as revenue in the governmental fund financial statements until the tax
revenues are received from the State of California (expected to be fiscal year 201213). In the
governmentwide financial statements, the tax revenues were recognized in the fiscal year for which
they were levied (fiscal year 200910).
110
CITY OF CUPERTINO
Notes to Basic Financial Statements
For the Year Ended June 30, 2010
NOTE 4 – LOANS RECEIVABLE
(a) Related Party Loans
In conjunction with the City’s executive housing assistance program, loans totaling $849,360 have been
provided to two executive managers. These 40-year loans bear an interest rate equal to the 11th District
Cost of Funds at the time of the loan, and require monthly principal and interest payments. In addition,
there is a two percent deferral on the interest rate for the first five years of the loan, at which time the
interest rate may be adjusted to the current 11th District Cost of Funds for the remainder of the loan.
The balance remaining on these loans was $712,682 at June 30, 2010.
(b) Housing Program Loans
On June 30, 1995, the City loaned $821,000 to Community Housing Developers, a California nonprofit
public benefit corporation. The note bears interest at three percent per annum, compounded annually,
payable to the extent of surplus cash, and all unpaid principal and interest due June 30, 2035. At
June 30, 2010, the balance remaining on the loan was $821,000.
On June 6, 1996, the City loaned $320,000 to Cupertino Community Services, a California nonprofit
public benefit corporation. The note bears interest at three percent per annum and due on July 14, 2026.
At June 30, 2010, the balance on the loan was $258,930.
In addition to these loans, the City has $205,212 in housing and other loans at June 30, 2010. These
loans bear interest at 3 to 6 percent and are due by June 30, 2035.
111
CITY OF CUPERTINO
Notes to Basic Financial Statements
For the Year Ended June 30, 2010
NOTE 5 - INTERFUND TRANSACTIONS
Transfers between funds during the fiscal year ended June 30, 2010 were as follows:
Amount
Fund Making TransfersFund Receiving TransfersTransferred
(A)
General FundPublic Facilities Corporation Debt Service Fund3,538,000$
(B)
Capital Improvement Projects Fund 2,421,845
(C)
Stevens Creek Corridor Park Capital Project Fund 303,040
(D)
Nonmajor governmental funds 765,000
(E)
Internal Service Funds 2,347,000
(F)
Capital Improvement Projects FundGeneral Fund 487,015
(G)
Nonmajor governmental fundsCapital Improvement Projects Fund 60,000
(H)
Stevens Creek Corridor Park Capital Project Fund 200,000
(I)
Nonmajor governmental funds 13,517
Total interfund transfers$10,135,417
The reasons for these transfers are set forth below:
(A)
For annual lease payment related to the 2002 Certificates of Participation debt issue.
(B)
To fund various capital improvements projects and the City’s infrastructure reserve.
(C)
To fund the Blackberry Farm infrastructures upgrade.
(D)
To fund operating expenditures of the Environmental Management Special Revenue Fund ($15,000)
and street maintenance expenditures ($750,000).
(E)
To fund management information systems, equipment revolving, compensated absences, and retiree
medical expenses.
(F)
To return capital projects savings back to General Fund.
(G)
To fund the Bollinger Bike Lane and Calabazas Creek project.
(H)
To fund the cost for Stevens Creek Corridor Park Project Phase II design.
(I)
To return excess funds to the Mary Avenue Bicycle Footbridge Capital Project Fund.
Internal Balances – The City-wide financial statements had no net interfund receivables and payable
remaining after the elimination of all such balances within governmental and business-type activities.
Due from and due to other funds
The General Fund loaned the Mary Avenue Bicycle Footbridge Capital Projects Fund $39,788 to fund a
temporary cash shortfall.
Advance to and advance from other funds
The Equipment Revolving Internal Service Fund loaned the General Fund $504,497 for payment of
Prop 1A borrowing by the State of California during fiscal year ended June 30, 2010. The General
Fund is expected to repay the funds upon receipt of the repayment from the State of California during
fiscal year ended June 30, 2013.
112
CITY OF CUPERTINO
Notes to Basic Financial Statements
For the Year Ended June 30, 2010
NOTE 6 - CAPITAL ASSETS
A summary of changes in capital assets is as follows:
Balance,
July 1, 2009,Balance,
as restatedAdditionsRetirementsTransfersJune 30, 2010
Governmental activities
Capital assets, not being depreciated:
Land 60,806,081$ -$ $ -$ - $ 60,806,081
Easements 16,962,925 975,820 - - 17,938,745
Total capital assets, not being depreciated 77,769,006 975,820 - - 78,744,826
Capital assets, being depreciated:
Buildings 40,635,227 365,772 (2,071) - 40,998,928
Improvements other than buildings 37,681,060 2,016,182 (12,444) - 39,684,798
Machinery and equipment 7,576,940 306,533 (306,941) - 7,576,532
Roads, curbs, gutters, sidewalks, medians and bridges119,258,220 2,353,789 - - 121,612,009
Streetlights 6,555,104 41,352 - - 6,596,456
Storm drain structure and mains 31,726,132 73,101 - - 31,799,233
Traffic signals 5,999,399 34,809 - - 6,034,208
Total capital assets, being depreciated 249,432,082 5,191,538 (321,456) - 254,302,164
Less accumulated depreciation for:
Buildings (13,848,160) (1,563,034) 834 - (15,410,360)
Improvements other than buildings (20,074,099) (1,606,210) 11,564 - (21,668,745)
Machinery and equipment (6,010,706) (495,074) 306,723 - (6,199,057)
Roads, curbs, gutters, sidewalks, medians and bridges(83,987,301) (2,948,706) - - (86,936,007)
Streetlights (6,509,077) (2,755) - (6,511,832)-
Storm drain structure and mains (25,024,687) (793,153) - - (25,817,840)
Traffic signals (4,472,228) (115,631) - - (4,587,859)
Total accumulated depreciation(159,926,258) (7,524,563) 319,121 - (167,131,700)
Total capital assets, being depreciated, net 89,505,824 (2,333,025) (2,335) - 87,170,464
Governmental activities, capital assets, net$ 167,274,830$ (1,357,205)$ (2,335)$ - $ 165,915,290
Business-type activities
Capital assets, being depreciated:
Buildings$ -$ 244,022$ -$ 49,350$ 293,372
Improvements other than buildings 5,053 387,422 - (2,964) 389,511
Machinery and equipment310,75545,697 (37,978) (46,386) 272,088
Total capital assets, being depreciated 315,808 677,141 (37,978) - 954,971
Less accumulated depreciation for:
Buildings - (3,352) - (5,461) (8,813)
Improvements other than buildings (5,053) - - 2,964 (2,089)
Machinery and equipment (174,628) (21,703) 37,978 2,497 (155,856)
Total accumulated depreciation(179,681)(25,055) 37,978 - (166,758)
Total capital assets, being depreciated, net136,127652,086 - - 788,213
Business-type activities, capital assets, net$ 136,127$ 652,086$ -$ - $ 788,213
113
CITY OF CUPERTINO
Notes to Basic Financial Statements
For the Year Ended June 30, 2010
NOTE 6 - CAPITAL ASSETS (Continued)
Depreciation expense was charged to functions and programs based on their usage of the related assets.
Depreciation expense was charged to governmental activities as follows:
Administration$ 311,747
Law enforcement 1,166
Public and environmental affairs 13,478
Administration services 26,551
Recreation service 80,773
Community development 429
Public works 6,714,337
Amount reported in the internal service funds 376,082
Total depreciation expense - governmental activities$ 7,524,563
Depreciation expense was charged to the business-type activities as follows:
Resources Recovery$ 3,352
Blackberry Farm 937
Cupertino Sports Center 14,414
Recreation Programs 6,352
Total depreciation expense - business-type activities$ 25,055
114
CITY OF CUPERTINO
Notes to Basic Financial Statements
For the Year Ended June 30, 2010
NOTE 7 - LONG-TERM DEBT
(a) Cupertino Public Facilities Corporation Certificates of Participation
Amount
OriginalBalanceBalanceDue
Issue July 1,June 30,Within
Amount2009Retirements2010One Year
Governmental activities debt:
2002 Refinancing and Capital Improvement
Project, 2.00 - 5.00%, due 07/01/2030$56,640,000$46,970,000$ (1,460,000)$ 45,510,000$ 1,500,000
The Cupertino Public Facilities Corporation issued Certificates of Participation to provide financing for
the construction of the Community Center, improvements of the City Hall and the Library in July 1986;
purchase of Wilson Park in 1989; finance the Memorial Park Expansion in 1990; and purchase the
Blackberry Farm and Fremont Older site in 1991. The Cupertino Public Facilities Corporation, as
lessor, leased real property to the City (under the Lease Agreement with the lessee) and assigned the
base rental payments to the trustee for the benefit of the owners of the certificates of participation. The
rental payments are scheduled to be sufficient in both time and amount, when the principal and interest
of the certificates are due.
On October 1, 2002, $56,640,000 principal amount of 2002 Refinancing and Capital Improvement Project
Certificates of Participation (2002 COPs), were issued to finance the costs of acquiring and constructing a
new public library and to refund the 1992A COPs, the 1992B COPS and the 1993A COPs (“Prior COPS”).
Payment of the principal and interest are insured by a financial guaranty insurance policy issued by Ambac
Assurance Corporation (Ambac). The reserve fund required for the 2002 COPs is funded with a
reserve fund surety bond issued by Ambac.
The 2002 COPs are payable by a pledge of revenues from the lease payments payable by the City
pursuant to the Lease Agreement between the Cupertino Public Facilities Corporation and the City for
the use and possession of the Site and Facility as described in the Lease Agreement. The City also
covenanted in the Lease Agreement to include all lease payments in its annual budget. In the event that
insufficient funds are available to make the lease payments, payments will be made from an
apportionment of moneys to which the City is entitled from the Motor Vehicle Licenses Fee Account in
the Transportation Fund of the State of California.
Annual debt service requirements for the 2002 COPs are shown below:
For the YearGovernmental Activities
Ending June 30,PrincipalInterest
2011$ 1,500,000$ 2,030,144
20121,545,0001,985,144
20131,600,0001,934,931
20141,660,0001,870,931
20151,730,0001,804,531
2016-20209,795,0007,868,556
2021-202512,280,0005,385,175
2026-203015,400,0002,262,188
$ 45,510,000$ 25,141,600
115
CITY OF CUPERTINO
Notes to Basic Financial Statements
For the Year Ended June 30, 2010
NOTE 7 - LONG-TERM DEBT (Continued)
(b) 1915 Act Bonds Without City Commitment
The City acts as agent for the property owners of parcels upon which assessments were made for local
improvements. The City collects the assessments and forwards the collections to bond holders. The
City is not directly liable for the repayment of special assessment district bonds as such bonds and
interest payable are secured by fixed lien assessments on real property; however, the City has
determined that it is not probable that the government would assume responsibility for all or part of the
debt in the event of default. The amount of outstanding bond principal at June 30, 2010 was $35,000.
(c) Conduit Debt
On October 1, 2001, the City authorized the issuance of the Multi-Family Housing Revenue Bonds in an
amount up to $1.6 million to assist a developer in financing the cost of site acquisition and construction
of a 24 unit multi-family rental housing project. The bonds are payable solely out of loan repayments
received from the developer. The principal balance outstanding of the bonds and any accrued and
unpaid interest is due and payable on October 1, 2031. The City has no legal or moral liability with
respect to the payment of this debt. The amount of outstanding conduit debt principal at June 30, 2010
was $928,000.
NOTE 8 - NET ASSETS AND FUND BALANCES
Net Assets are measured on the full accrual basis while Fund Balance is measured on the modified accrual
basis.
Net Assets – The government-wide and proprietary fund financial statements utilize a net assets
presentation. Net assets are categorized as follows:
Invested in Capital Assets, net of related debt – This category groups all capital assets including
infrastructure, into one component of net assets. Accumulated depreciation and outstanding balances of
debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance
in this category.
Restricted – This category represents net assets that have external restrictions imposed by creditors,
grantors, contributors or laws or regulations of other governments and restrictions imposed by law
through constitutional provisions or enabling legislation. At June 30, 2010, the government-wide
statement of net assets reported restricted assets of $8,692,175 in governmental activities, of which
$153,585 are restricted by enabling legislation.
Unrestricted – This category represents net assets of the City that do not meet the definition of “invested
in capital assets, net of related debt” or “restricted.”
Fund Balances, Reserves and Designations - In the governmental fund financial statements, reserves
and designations segregate portions of fund balance that are either not available or have been earmarked
for specific purposes. The various reserves and designations are established by actions of the City
Council and City’s management and can be increased, reduced or eliminated by similar actions.
116
CITY OF CUPERTINO
Notes to Basic Financial Statements
For the Year Ended June 30, 2010
NOTE 8 - NET ASSETS AND FUND BALANCES (Continued)
The unreserved fund balances include amounts which have been internally designated to be set aside and
are not considered to be available for immediate appropriation. The components of the designated fund
balance for the Governmental Funds at June 30, 2010 are as follows:
General Fund:
Economic Uncertainty12,500,000$
Utilities Users Tax Revenue 916,000
Capital Improvement Projects Fund:
Capital Improvement 699,000
Construction in Progress - Future Projects 75,924
Infrastructure 1,000,000
Nonmajor Special Revenue Funds, Transportation 1,667,559
Total designated fund balances$ 16,858,483
NOTE 9 - COMMITMENTS AND CONTINGENCIES
(a) Federal and State Grant
The City participates in a number of federal and state grant programs subject to financial and
compliance audits by the grantors or their representatives. Audits of certain grant programs, including
those for the year ended June 30, 2010, have yet to be conducted. The amount, if any, of expenditures
that may be disallowed by the granting agencies cannot be determined at this time. Management
believes that such disallowances, if any, would not have a material effect on the financial statements.
(b) Lease Agreement with County of Santa Clara
The City has an agreement, expiring in 2019, to lease a building to the County of Santa Clara for the
purpose of providing library service to the City’s residents. The lease requires a minimum annual
payment of $120,000 adjusted for Cupertino’s portion of book circulation and increase of assessed
valuation. This is an operating lease with a renewable option. At June 30, 2010, the cost and carrying
value of the building which opened in October 2004, is $21,935,325 and $17,545,856 respectively, with
$4,389,469 in accumulated depreciation.
(c) Consulting Agreement for Sales Taxes Rebate
The City entered into agreements with two companies to provide services consisting of the assessment
and creation of new sales and use tax revenue sources for the City. The City agreed to pay the two
companies based on a sliding scale payment schedule dependent on the level of new sales tax revenue
realized by the City as defined in the consulting agreements. The agreements with the two companies
will expire by June 30, 2011 and June 30, 2012.
117
CITY OF CUPERTINO
Notes to Basic Financial Statements
For the Year Ended June 30, 2010
NOTE 10 - LIABILITIES UNDER SELF-INSURANCE AND RISK MANAGEMENT
(a) General and Property Liability
The City is self-insured for the first $250,000 of general and property liability for each occurrence, and
the excess (up to $10,000,000 for each occurrence and annual aggregate) is covered through the City’s
participation in the Association of Bay Area Governments Pooled Liability Assurance Network (ABAG
PLAN). The risk pool consists of 31 agencies within the San Francisco Bay Area. The stated purpose
of the ABAG PLAN is to provide certain levels of liability insurance coverage, claims management, risk
management services, and legal defense to its participating members. ABAG PLAN is governed by a
Board of Directors, which comprises officials appointed by each participating member. Premiums paid
to ABAG are subject to possible refund based on the results of actuarial studies and approval by the
Board of Directors. Complete financial statements for ABAG PLAN may be obtained from their offices
at the following address: ABAG PLAN, Finance Department, P.O. Box 2050, Oakland, CA 94604.
Premiums are revised each year based on the City’s claims experience and risk exposure. For the year
ended June 30, 2010, the City paid ABAG PLAN premiums of $247,112.
(b) Workers’ Compensation Liability
The City belongs to the CSAC Excess Insurance Authority (EIA), a joint power authority which
provides excess workers’ compensation liability claims coverage above the City’s self-insured retention
of $500,000 per occurrence. Losses above the self-insured retention are pooled with excess reinsurance
purchased to a $50,000,000 statutory limit. EIA was established in 1979 for the purpose of creating a risk
management pool for all California public entities. EIA is governed by a Board of Directors consisting of
representatives of its member public entities. Complete financial statements for EIA may be obtained
from their offices at the following address: CSAC Excess Insurance Authority, Finance Department, 75
Iron Point Circle, Suite 200, Folsom, CA 95630. For the year ended June 30, 2010, the City paid
premiums of $43,278 to EIA.
It is the City’s practice to obtain biennial actuarial studies for the self-insured workers’ compensation
liability. The claims liabilities included in the workers’ compensation internal service fund is based on
the results of actuarial studies and include amounts for claims incurred but not reported and loss
adjustment expenses. Claim liabilities are calculated considering the effects of inflation, recent claim
settlement trends, including frequency and amount of payouts, and other economic and social factors.
Inflation of 2.5%, annual rate of return of 3%, claim severity increase at 2.5% were assumed. In the
current year, management used actuarial estimates based on an 80% confidence level.
Settlements have not exceeded insurance coverage in the past three years.
Changes in the balances of workers’ compensation claims liabilities during the years ended June 30,
2010 and 2009 are as follows:
20102009
Unpaid claims, beginning of year$ 1,568,000$ 1,497,000
Incurred claims and changes in estimate232,696313,642
Claim payments and credits(166,753)(242,642)
Unpaid claims, end of year1,633,9431,568,000
Less current portion(376,037)(411,000)
Non-current portion$ 1,257,906$ 1,157,000
118
CITY OF CUPERTINO
Notes to Basic Financial Statements
For the Year Ended June 30, 2010
NOTE 11 - DEFINED BENEFIT PENSION PLAN
(a) Plan Description
Substantially all City employees are eligible to participate in pension plans offered by California Public
Employees Retirement System (CALPERS), an agent multiple employer defined benefit pension plan
which acts as a common investment and administrative agent for its participating member employers.
CALPERS provides retirement and disability benefits, annual cost of living adjustments and death
benefits to plan members, who must be public employees and beneficiaries. The City’s employees
participate in the Miscellaneous Employee Plan (Plan). Benefit provisions under the Plan are
established by State statute and City resolution. Benefits are based on years of credited service and
compensation. Audited annual financial statements are available from CALPERS at
www.calpers.ca.gov.
(b) Funding Policy
The contribution requirements of plan members and the City are established and may be amended by
CALPERS. The City is required to contribute at an actuarially determined rate. Based on the June 30,
2007 actuarial report, the Plan’s provisions and benefits in effect at June 30, 2010, are summarized as
follows:
Benefit vesting schedule5 years service
Benefit paymentsMonthly for life
Eligible retirement age50
Benefits, as a % of annual salary multiplied by
years of service and annual salary2% - 2.7%
Required employee contribution rates8%
Required employer contribution rates15.560%
The City covered 75% of the employees’ required payroll contributions for fiscal year 2010.
(c) Annual Pension Cost
CALPERS determines contribution requirements using a modification of the Entry Age Normal Method.
Under this method, the City’s total normal benefit cost for each employee from date of hire to date of
retirement is expressed as a level percentage of the related total payroll cost. Normal benefit cost under
this method is the level amount the employer must pay annually to fund an employee’s projected
retirement benefit. This level percentage of payroll method is used to amortize any unfunded actuarial
liabilities. The actuarial assumptions used to compute contribution requirements are also used to
compute the actuarially accrued liability. The City uses the actuarially determined percentages of
payroll to calculate and pay 100% of the required contributions to CALPERS. This results in no net
pension obligations or unpaid contributions.
Recent Annual Pension Costs, which equal the Annual Required Contribution to CALPERS, were as
follows:
AnnualPercent of
Pension CostAPC
Fiscal Year(APC)Contributed
06/30/2008$ 1,454,415100%
06/30/2009 1,835,521100%
06/30/2010 1,841,350100%
119
CITY OF CUPERTINO
Notes to Basic Financial Statements
For the Year Ended June 30, 2010
NOTE 11 - DEFINED BENEFIT PENSION PLAN (Continued)
The required contributions were determined as part of the June 30, 2007 actuarial valuations using a
modification of the Entry Age Normal Actuarial Cost Method. The actuarial assumptions include: (a) a
rate of return on investments of 7.75%; (b) inflation of 3.00%; (c) payroll growth of 3.25%; and (d)
projected salary increases of 3.25% to 14.45% depending on age, service, and type of employment.
Changes in liability due to plan amendments, changes in actuarial assumptions, or changes in actuarial
methods are amortized separately on a close basis over twenty years. Market value fluctuations in the
actuarial value of plan assets are smoothed over 15 years. All gains and losses are tracked and
amortized over a rolling thirty year period.
(d) Funded Status and Funding Progress
CALPERS’ latest available actuarial data and funding progress are set forth below at their actuarial
valuation date as of June 30, 2008.
Actuarial accrued liability (AAL)$65,337,134
Actuarial value of plan assets54,571,233
Unfunded actuarial accrued liability (UAAL)$10,765,901
Funded ratio (actuarial value of plan assests/AAL)83.5%
Covered payroll (active plan members)$11,009,984
UAAL as a percentage of covered payroll97.8%
The Schedule of Funding Progress, presented as Required Supplementary Information following the
Notes to Basic Financial Statements, presents multi-year trend information about whether the actuarial
value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for
benefits.
NOTE 12 - OTHER POST EMPLOYMENT BENEFITS (OPEB)
(a) Plan Description
Permanent employees who retire under the City’s CALPERS retirement plan are, pursuant to their
respective collective bargaining agreements, eligible to have their medical insurance premiums paid by
the City. Retirees receive the amount necessary to pay the cost of his/her enrollment, including the
enrollment of his/her family members, in a health benefit plan provided by CALPERS up to the
maximum received by active employees in their respective bargaining unit.
The City contracts with CALPERS for this insured-benefit Plan established under the state Public
Employees’ Medical and Hospital Care Act (PEMHCA). The Plan offers employees and retirees three
CALPERS’ self-funded plans, setup as insurance risk pools, or offers various third-party insured health
plans. The Plan’s medical benefits and premium rates are established by CALPERS and the insurance
providers. The City contribution is established by City resolution. Retirees and active employees pay
the difference between the premium rate and the City’s contribution. Premiums and City contributions
are based on the plan and coverage selected by actives and retirees, with the City’s potential
contribution ranging from zero to $1,202 per month per employee or retiree. The responsibility for
benefit payments has transferred to the insurers and the City does not guarantee the benefits in the event
of default by the insurers. A comprehensive annual financial report of CALPERS, inclusive of their
benefit plans, is available at www.calpers.ca.gov.
120
CITY OF CUPERTINO
Notes to Basic Financial Statements
For the Year Ended June 30, 2010
NOTE 12 - OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued)
The City participates in the Public Agency Retirement System (PARS) Public Agencies Post Retirement
Health Care Plan Trust Program (PARS Trust), an agent-multiple employer irrevocable trust established
to fund other postemployment benefits. The PARS Trust is approved by the Internal Revenue Code
Section 115 and invests funds in equity, bond, and money market mutual funds. Copies of PARS Trust
annual financial report may be obtained from PARS at 4350 Von Karman Avenue, Suite 100, Newport
Beach, CA 92660. A separate report for the City’s portion of the PARS Trust is available at the City’s
Finance Department.
An employee is eligible for lifetime medical benefits under the OPEB Plan, along with his/her spouse or
declared domestic partner at the time of retirement, if all criteria listed below are met:
The employee was hired or the City Council member was elected prior to August 1, 2004, and the
employee has five or more full-time years of service and the City Council member has five or more
years of elected service with the City of Cupertino; or
The employee was hired or the City Council member was elected on or after August 1, 2004, and
the employee has ten or more full-time and/or elected years of CalPERS service, five years of which
must be from the City of Cupertino; and
The employee is eligible for retirement as defined under the CalPERS retirement system; and
The employee retires from the City of Cupertino.
In addition, the eligible employee’s dependent children at the time of retirement who are under 23 years
old are eligible for medical benefits.
(b) Funding Policy
The contribution requirements to the OPEB Plan are established and may be amended by the City
Council. Based on the actuarial valuation date of January 1, 2009, the annual required contribution rate
is 16.93% of annual covered payroll. As of June 30, 2010, the City contributed $7,000,000 to the PARS
Trust and paid $616,760 through healthcare premium payments during the year to fully pre-fund OPEB
Plan. The City is planning to fully fund the Annual OPEB Cost in the future years.
(c) Annual OPEB Cost
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of certain events far into the future. Examples include
assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are subject
to continual revision as actual results are compared with past expectations and new estimates are made
about the future. The schedule of funding progress, presented as required supplementary information
following the notes to the financial statements, presents multi-year trend information about whether the
actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued
liabilities for benefits.
121
CITY OF CUPERTINO
Notes to Basic Financial Statements
For the Year Ended June 30, 2010
NOTE 12 - OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued)
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and the plan members) and include the types of benefits provided at the
time of each valuation and the historical pattern of sharing of benefit costs between the employer and
plan members to that point. The actuarial methods and assumptions used include techniques that are
designed to reduce effects of short-term volatility in actuarial accrued liabilities and the actuarial value
of assets, consistent with long-term perspective of the calculations.
The City’s actuary determined the City’s OPEB liability and contribution requirements using the Entry
Age Normal Actuarial Cost Method. The annual rate of return on future assets for benefit payments was
assumed to be 6% on a fully prefunded basis. Inflation of 3%, annual salary increases of 3.25%, City
contribution increases of 3.5%, and healthcare cost growth ranging from 10% initially down to 5% long-
term were also assumed. The Unfunded Actuarial Accrued Liability is amortized as a level percentage
of pay (assuming 3.25% per year growth in total payroll) over a rolling twenty year period. The
payment for a given year is expressed as a percentage of projected active member payroll for that year.
PEMHCA is a community-rated plan, where the same premiums apply for all plan participants
regardless of the presence or number of active employees. There is no implicit rate subsidy in the
premiums for pre-Medicare retirees.
The City’s annual OPEB cost and actual contributions to the Plan for the years ended 2010 and 2009 are
as follows:
AnnualPercentageNet OPEB
Fiscal YearOPEBActualof AOCObligation
Year EndedCost (AOC)ContributionContributed(Asset)
6/30/2009$ 2,475,000$ 647,92326%$ 1,827,077
6/30/2010 2,043,000 7,616,760373% (3,746,683)
The City’s Net OPEB Obligation or Asset is recorded in the Retiree Medical Internal Service Fund, and
is calculated as follows:
June 30, 2010
Annual required contribution$2,049,000
Interest on prior year net OPEB obligation102,000
Adjustment to annual required contribution(108,000)
Annual OPEB Cost2,043,000
Contribution made (7,616,760)
Increase (Decrease) in net OPEB obligation(5,573,760)
Net OPEB obligation - beginning of year1,827,077
Net OPEB obligation (asset) - end of year$(3,746,683)
122
CITY OF CUPERTINO
Notes to Basic Financial Statements
For the Year Ended June 30, 2010
NOTE 12 - OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued)
(d) Funded Status and Funding Progress
The latest available actuarial data and funding progress are set forth below at their actuarial valuation
date of January 1, 2009.
Actuarial accrued liability (AAL)$ 18,069,366
Actuarial value of plan assets -
Unfunded actuarial accrued liability (UAAL)$ 18,069,366
Funded ratio (actuarial value of plan assests/AAL)0.0%
Covered payroll (active plan members)$ 11,892,000
UAAL as a percentage of covered payroll151.9%
The Schedule of Funding Progress, presented as Required Supplemental Information following the
Notes to Basic Financial Statements, presents multi-year trend information about whether the actuarial
value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for
benefits.
NOTE 13 – SUBSEQUENT EVENTS
(a) Land Held for Redevelopment
On July 1, 2010, the City entered into a Disposition and Development Agreement (DDA) with a
developer. In accordance with the DDA, the City will transfer the land held for redevelopment of
$615,000 to the developer at no cost for the purpose of developing four single-family detached homes at
an affordable price to very low income homebuyers.
123
CITY OF CUPERTINO
Required Supplementary Information (Unaudited)
Schedules of Funding Progress
For the Year Ended June 30, 2010
Schedule of Funding Progress – CalPERS Defined Benefit Retirement Miscellaneous Plan:
ActuarialActuarialAccruedAccruedPercentage
Asset
ValuationLiability-Liability –FundedCoveredof Covered
DateValueEntry AgeUAALRatioPayrollPayroll
6/30/200644,876,584$ $ 54,287,591$ 9,411,00782.7%10,133,914$ 92.9%
6/30/200750,157,077 59,241,300 9,084,22384.7%10,751,350 84.5%
6/30/200854,571,233 65,337,134 10,765,90183.5%11,009,984 97.8%
Schedule of Funding Progress –Defined Benefit Other Post Employment Benefits Plan:
UnfundedUAAL
ActuarialActuarialas
ActuarialActuarialAccruedAccruedPercentage
ValuationAssetLiability-Liability –FundedCoveredof Covered
DateValueEntry AgeUAALRatioPayrollPayroll
1/1/2007$ 21,981,544-$ $21,981,5440.0%$ 11,118,000197.7%
1/1/2009 18,069,366- 18,069,3660.0%11,892,000 151.9%
124
MAJOR GOVERNMENTAL FUNDS OTHER THAN THE
GENERAL FUND AND SPECIAL REVENUE FUNDS
This section is provided for the presentation of Budget-to-Actual Statements for the Public Facilities
Corporation Debt Service Fund. Although the fund is considered to be a major government fund, GASB
Statement 34 states that budget-to-actual information in the basic financial statements should be limited to
the General Fund and major Special Revenue Funds. All other major governmental fund schedules with
such information should be included as Supplementary Information.
Public Facilities Corporation Debt Service Fund - Accounts for the accumulation of resources for and the
payments of principal and interest on certificates of participation issued in 2002 to advance refund debt
that was previously issued to finance the City Hall, Library, Wilson Park and Memorial Park projects.
125
CITY OF CUPERTINO
Public Facilities Corporation Debt Service Fund
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
For the Year Ended June 30, 2010
Variance
Positive
BudgetActual(Negative)
Revenues:
Use of money and property$ -2,000$ (2,000)$
Total revenues2,000-(2,000)
Expenditures:
Debt service:
Principal 1,460,0001,460,000 -
Interest and fiscal charges2,079,5432,076,2643,279
Total expenditures3,539,5433,536,2643,279
Excess (deficiency) of revenues
over (under) expenditures(3,537,543) (3,536,264) 1,279
Other financing sources:
Transfers in3,538,0003,538,000 -
Total other financing sources3,538,0003,538,000 -
Change in fund balance$ 4571,736$ 1,279
Fund balance, beginning of year55,941
Fund balance, end of year$ 57,677
126
NONMAJOR GOVERNMENTAL FUNDS
All funds not considered as major funds on the Fund Financial Statements are consolidated in one column
entitled “Other Governmental Funds.” These nonmajor funds are identified and included in this
supplementary section and includes all of the City’s Special Revenue Funds and one Capital Project Fund.
The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are
legally restricted to expenditures for specified purposes.
Storm Drain
- Accounts for the construction and maintenance of storm drain facilities including
drainage and sanitary sewer facilities. Revenues were collected from developers as a result of
connections to the storm drainage sewer system.
Park Dedication - Accounts for the activity granted by the business and professions code of the
State of California in accordance with the open space and conservation element of the City’s
General Plan. Revenues of this fund are restricted for the acquisition, improvement, expansion
and implementation of the City’s parks and recreation facilities.
Environmental Management - Accounts for all activities related to operating the non-point source
pollution program.
Transportation - Accounts for the City's gas tax, sales tax and grant revenues and expenditures
related to the maintenance and construction of City streets. All revenue in this fund is restricted
exclusively for street and road purposes including related engineering and administrative
expenditures.
Housing Development - Accounts for the Federal Housing and Community Development Grant
Program activities administered through the County. Monies collected from developers that
mitigate the impact of housing needs are also included. Monies in this fund are governed by the
program’s rules.
Redevelopment Agency – Accounts for the Vallco project area and low and moderate income
housing funds.
Capital Projects Funds account for the financial resources committed to the acquisition or construction of
major capital facilities.
Mary Avenue Bicycle Footbridge – Accounts for the design and construction of a bicycle
footbridge extension of Mary Avenue over Interstate 280. It includes gateways, paths, residential
buffering elements, and landscaping.
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CITY OF CUPERTINO
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2010
Special Revenue Funds
StormPark EnvironmentalHousing
DrainDedicationManagementTransportationDevelopment
Assets:
Cash and investments 964,379$ 454,561$ 163,655$ 1,933,372$ 1,704,123$
Accounts receivable - - -141,32189,828
Loans receivable - - - - 793,284
Land held for housing development - - - - 615,000
Total assets$964,379$454,561$163,655$ 2,074,693$3,202,235
Liabilities and fund balances:
Liabilities:
Accounts payable and accruals$ 9,8122,087$ 4,783$ 103,111$ 141,113$
Accrued payroll and benefits 2,067 -5,287 11,8784,400
Due to other funds - - - - -
Unearned revenue - - - 284 -
Deferred revenue - - - - 139,638
Total liabilities4,1549,81210,070 115,273285,151
Fund balances:
Reserved for:
Encumbrances 60,763 - - 291,861323,753
Loans receivable - - - -653,646
Land held for housing development - - - -615,000
Low and moderate income housing - - - - -
Unreserved, reported in:
Special Revenue Funds899,462444,749153,585 1,667,5591,324,685
Capital Project Fund - - - - -
Total fund balances960,225444,749153,585 1,959,4202,917,084
Total liabilities and fund balances$964,379$454,561$163,655$ 2,074,693$3,202,235
128
SpecialCapital
Revenue FundsProjects Funds
RedevelopmentMary Avenue
AgencyBicycle FootbridgeTotal
$ 13,5171,470,873$ 6,704,480$
- 156,897 388,046
- - 793,284
- - 615,000
$ 1,470,873$ 170,414$ 8,500,810
$ - $ 10,782$ 271,688
5,186 - 28,818
- 39,788 39,788
- - 284
- - 139,638
5,186 50,570 480,216
- 29,060 705,437
- - 653,646
- - 615,000
842,707 - 842,707
622,980 - 5,113,020
- 90,784 90,784
1,465,687 119,844 8,020,594
$ 1,470,873$ 170,414$ 8,500,810
129
CITY OF CUPERTINO
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
For the Year Ended June 30, 2010
Special Revenue Funds
StormPark EnvironmentalHousing
DrainDedicationManagementTransportationDevelopment
Revenues:
Taxes26,230$ 60,561$ $ -$ - $52,108
Use of money and property7,207 3,408(34) 3,146 68,569
Intergovernmental - - - 3,012,517 194,373
Charges for services - 3,305 364,123 - -
Other - - - - 608,589
Total revenues33,437 67,274 364,089 3,015,663 923,639
Expenditures:
Current:
Community development - - - - 439,446
Public works 28,326 - 390,637 738,686 -
Capital outlay 44,775 - - 2,072,572 -
Total expenditures73,101 - 390,637 2,811,258 439,446
Excess (deficiency) of revenues
over (under) expenditures(39,664) 67,274(26,548) 204,405 484,193
Other financing sources (uses):
Transfers in - - 15,000 750,000 -
Transfers out(60,000)(200,000) - (13,517) -
Total other financing sources (uses)(60,000) (200,000) 15,000 736,483 -
Change in fund balances(99,664)(132,726)(11,548) 940,888 484,193
Fund balances, beginning of year 1,059,889 577,475 165,133 1,018,532 2,432,891
Fundbalances, end of year$960,225$444,749$153,585$ 1,959,420$2,917,084
130
SpecialCapital
Revenue FundsProjects Fund
RedevelopmentMary Avenue
AgencyBicycle Footbridge Total
$ 1,322,925 $ - $ 1,461,824
6,433 - 88,729
- 1,297,994 4,504,884
- - 367,428
- - 608,589
1,329,358 1,297,994 7,031,454
617,006 - 1,056,452
- - 1,157,649
- 235,350 2,352,697
617,006 235,350 4,566,798
712,352 1,062,644 2,464,656
- 13,517 778,517
- - (273,517)
- 13,517 505,000
712,352 1,076,161 2,969,656
753,335 (956,317) 5,050,938
$ 1,465,687$ 119,844$8,020,594
131
CITY OF CUPERTINO
Nonmajor Governmental Funds - Special Revenue Funds
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
For the Year Ended June 30, 2010
Storm DrainPark Dedication
VarianceVariance
PositivePositive
BudgetActual(Negative)BudgetActual(Negative)
Revenues:
Taxes$ 50,000$ 26,230$(23,770)$ 60,5611,400,000$ (1,339,439)$
Use of mone
y and property 3 3,000 7,207 (25,793) 29,000 3 ,408(25,592)
Intergovernmental - - - - - -
ges for services - - - - 3 ,305 3,305
Char
Other - - - - - -
Total revenues 8 3,000 33,437 (49,563) 1,429,000 6 7,274(1,361,726)
Expenditures:
Current:
Community development - - - - - -
Public works 2 8,326 28,326 - - - -
Capital outlay 6 31,475 44,775 586,700 24,118 - 24,118
Total expenditures 6 59,801 73,101 586,700 24,118 - 24,118
Excess (deficiency) of revenues
over (under) expenditures(576,801) (39,664) 537,137 1,404,882 6 7,274(1,337,608)
Other financing sources (uses):
Transfers in - - - - - -
Transfers out (60,000) (60,000) - (200,000) (200,000) -
g sources (uses)(60,000) (60,000) - (200,000) (200,000) -
Total other financin
Change in fund balances$ (636,801) (99,664)$ 537,137$ (132,726)1,204,882 $(1,337,608)
Fund balances, beginning of year 1,059,889 5 77,475
Fund balances, end of year$ 960,225$ 4 44,749
132
Environmental ManagementTransportationHousing Development
VarianceVarianceVariance
PositivePositivePositive
BudgetActual(Negative)BudgetActual(Negative)BudgetActual(Negative)
$ -$ -$ -$ -$ -$ -$ 50,000$ 5 2,108$ 2,108
2,000 (34) (2,034) 66,000 3,146 (62,854) 122,000 6 8,569 (53,431)
- - - 2,275,000 3,012,517 737,517 496,013 1 94,373 (301,640)
365,000 364,123 (877) - - - - - -
365,000 - (365,000) - - - - 6 08,589 608,589
732,000 364,089 (367,911) 2,341,000 3,015,663 674,663 668,013 9 23,639 255,626
- - - - - - 439,4461,352,946 913,500
519,953 390,637 129,316 897,759 738,686 159,073 - - -
- - - 3,622,344 2,072,572 1,549,772 - - -
519,953 390,637 129,316 4,520,103 2,811,258 1,708,845 439,4461,352,946 913,500
1,169,126
212,047 (26,548) (238,595) (2,179,103) 204,405 2,383,508(684,933)484,193
15,000 15,000 - 750,000 750,000 - - - -
- - - (13,517) (13,517) - - - -
15,000 15,000 - 736,483 736,483 - - - -
$ 227,047 (11,548)$(238,595)$(1,442,620)940,888$ (684,933)2,383,508$ 484,193 $ 1,169,126
165,133 1,018,532 2 ,432,891
$ 153,585$ 2,917,0841,959,420$
(Continued)
133
CITY OF CUPERTINO
Nonmajor Governmental Funds - Special Revenue Funds
Combining Schedule of Revenues, Expenditrues and Changes in Fund Balances -
Budget and Actual
For the Year Ended June 30, 2010
Redevelopment Agency
Variance
Positive
BudgetActual(Negative)
Revenues:
Taxes1,256,000$ 1,322,925$ 66,925$
Use of money and property 6,43320,000 (13,567)
governmental- - -
Inter
Charges for services- - -
Other - - -
Total revenues1,276,0001,329,35853,358
Expenditures:
Current:
Community development682,040617,00665,034
Public works- - -
y - - -
Capital outla
Total expenditures682,040617,00665,034
y) of revenues
Excess (deficienc
over (under) expenditures593,960 712,352 118,392
g sources (uses):
Other financin
Transfers in- - -
t - - -
Transfers ou
Total other financing sources (uses)- - -
Change in fund balances$593,960712,352$118,392
Fund balances, beginning of year753,335
Fund balances, end of year$1,465,687
134
INTERNAL SERVICE FUNDS
The Internal Service Funds are used to account for the financing of goods or services provided by one
department to other departments of the City on a cost reimbursement basis.
The concept of major funds does not extend to internal service funds because they do not do business
with outside parties. For the Statement of Activities, the net revenues and expenses of each internal
service fund are eliminated by netting them against the operations of the City departments that generated
them. The remaining balance sheet items are consolidated with these same funds in the Statement of Net
Assets. However, internal service funds are still presented separately in the Fund Financial Statements.
Management Information Systems - Accounts for the activities related to the maintenance and
replacement of the City’s technology infrastructure.
Workers’ Compensation - Accounts for the activities in support of the self-insured workers’
compensation program.
Equipment Revolving - Accounts for the activities related to the maintenance and replacement of
the City's vehicle fleet.
Compensated Absences and Long-Term Disability - Accounts for the activities related to the
City’s program for compensated absences payouts and long-term disability.
Retiree Medical - Contains funds set aside for other post employment retirement benefits.
135
CITY OF CUPERTINO
Internal Service Funds
Combining Statement of Net Assets
June 30, 2010
Compensated
Management Absences and
Information Workers'EquipmentLong-Term Retiree
SystemsCompensationRevolvingDisabilityMedicalTotal
Assets:
Current assets:
Cash and investments $ 1,832,1292,005,997$$1,575,936$ 81,702$ 7,524,5872,028,823$
Prepaid items 19,097 - - - - 19,097
Total current assets 2,025,094 1,575,9361,832,129 81,702 2,028,823 7,543,684
Noncurrent assets:
Advances to other funds - - 504,497 - - 504,497
Net OPEB assets - - - - 3,746,683 3,746,683
Capital assets:
Depreciable, net of
accumulated depreciation 370,655 - 634,276 - - 1,004,931
Total noncurrent assets 370,655 - -1,138,773 3,746,683 5,256,111
Total assets 2,395,749 2,714,7091,832,129 81,702 5,775,506 12,799,795
Liabilities:
Current liabilities:
Accountspayable and accruals 25,014 2,015 28,673 - - 55,702
Accruedpayroll and benefits 14,244 651 9,247 - - 24,142
Compensated absences - - - 16,684 - 16,684
Claimspayable - 376,037 - - - 376,037
Total current liabilities 39,258 378,703 37,920 16,684 - 472,565
Noncurrent liabilities:
Compensated absences,
net of current portion 32,037 - 10,852 - - 42,889
Claimspayable, net of
currrentportion - -1,257,906 - - 1,257,906
Total liabilities 71,295 48,7721,636,609 16,684 - 1,773,360
Net assets:
Invested in capital assets 370,655 - 634,276 - - 1,004,931
Unrestricted 1,953,799 195,520 65,0182,031,661 5,775,506 10,021,504
Total net assets$ 195,5202,324,454$$2,665,937$ 65,018$ 11,026,4355,775,506$
136
CITY OF CUPERTINO
Internal Service Funds
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets
For the Year Ended June 30, 2010
Compensated
Management Absences and
Information Workers'EquipmentLong-Term Retiree
SystemsCompensationRevolvingDisabilityMedicalTotal
Operating reveneus:
Charges for services$ 405,6961,231,000$$ 985,030$ 64,284$ -$ 2,686,010
Other 22,633 - - - - 22,633
Total operating revenues 1,253,633 405,696 985,030 64,284 - 2,708,643
Operating expenses:
Salaries and related expenses 523,981 23,087 350,142 254,574 2,053,919 3,205,703
Materials and supplies 127,401 - 287,754 - - 415,155
Contractual services 251,778 - 107,416 - - 359,194
Insurance claims and premium - 275,974 - 64,049 - 340,023
Depreciation 185,535 - 190,547 - - 376,082
Total operating expenses 1,088,695 299,061 935,859 318,623 2,053,919 4,696,157
Operating income (loss) 164,938 106,635 49,171(254,339)(2,053,919)(1,987,514)
Nonoperating revenues:
Investment income 13,355 12,081 11,640 555 58,128 95,759
Income(loss) before transfers 178,293 118,716 60,811(253,784)(1,995,791)(1,891,755)
Transfers in 169,000 - 30,000 300,000 1,848,000 2,347,000
Change in net assets 347,293 118,716 90,811 46,216(147,791) 455,245
Net assets, beginning of year 1,977,161 76,804 18,8022,575,126 5,923,29710,571,190
Net assets, end of year$ 195,5202,324,454$$2,665,937$ 65,018$ 11,026,4355,775,506$
137
CITY OF CUPERTINO
Internal Service Funds
Combining Statement of Cash Flows
For the Year Ended June 30, 2010
Compensated
Management Absences and
Information Workers'EquipmentLong-TermRetiree
SystemsCompensationRevolvingDisabilityMedicalTotal
Cash flows from operating activities:
Cash received from customers$ 405,6961,253,633$ $ 985,030$ 64,284$ -$ 2,708,643
Cashpayments to suppliers for goods and services (417,900) -(513,518) -(10,919)(942,337)
Cashpayments to employees (511,397)(23,000)(345,396)(237,890)(616,760)(1,734,443)
Cashpayments for judgment and claims -(208,016) -(64,049) -(272,065)
Cash flows provided by(used in)
operating activities 324,336 174,680 126,116(237,655)(627,679)(240,202)
Cash flows from noncapital financing activities:
Contribution to an irrevocable trust - - - -(7,000,000)(7,000,000)
Transfers in 169,000 - 30,000 300,000 1,848,000 2,347,000
Advances to other funds - -(504,497) - -(504,497)
Cash flows provided by(used in)
noncapital financing activities 169,000 -(474,497) 300,000(5,152,000)(5,157,497)
Cash flows from capital and related financing activities:
Acquisition of capital assets (216,521) -(29,375) - -(245,896)
Cash flows from investing activities:
Interest received 13,355 12,081 11,640 555 58,128 95,759
Net change in cash and cash equivalents 290,170 186,761(366,116) 62,900(5,721,551)(5,547,836)
Cash and cash equivalents, beginning of year 1,715,827 1,942,0521,645,368 18,802 7,750,37413,072,423
$ 2,005,997 $ 1,832,129 $ 1,575,936 $ 81,702 $ 2,028,823 $ 7,524,587
Cash and cash equivalents, end of year
Reconciliation of operating income (loss) to net cash
flowsprovided by(used in) operating activities:
Operating income (loss)$ 164,938$ 106,635$ 49,171$(254,339)$(2,053,919)$(1,987,514)
Adjustments to reconcile operating income (loss)
to net cash provided by(used in) operating activities:
Depreciation 185,535 - 190,547 - - 376,082
Contributions to an irrevocable trust for
currentyear's annual OPEB cost - - - - 1,426,240 1,426,240
Change in assets and liabilities:
Prepaid items(19,097) - - - -(19,097)
Accountspayable and accruals(19,624) 2,015(118,348) - -(135,957)
Accruedpayroll and benefits 1,951 87 3,048 - - 5,086
Compensated absences 10,633 - 1,698 16,684 - 29,015
Claimspayable - 65,943 - - - 65,943
Cash flows provided by(used in)
operating activities$ 324,336$ 174,680$ 126,116$ (237,655)$ (627,679)$(240,202)
138
AGENCY FUNDS
All Agency Funds, representing all fiduciary funds of the City, are custodial in nature and do not involve
measurement of results of operations. Such funds have no equity since any assets are due to individuals
or other entities at some future time.
These funds are presented separately from the Governmental and Fund Financial Statements.
139
CITY OF CUPERTINO
Special Assessment District Agency Fund
Statement of Changes in Assets and Liabilities
For the Year Ended June 30, 2010
BalanceBalance
July 1, 2009AdditionsDeletionsJune 30, 2010
Assets:
Cash and investments$ 37,719115,322$ (34,800)$ 118,241$
Liabilities:
Deposits$115,322$37,719$(34,800)$ 118,241
140
STATISTICAL SECTION
141
NOTES
142
STATISTICAL SECTION
This part of the City’s Comprehensive Annual Financial Report presents detailed information as a context
for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the City’s overall financial health. In contrast to the financial section,
the statistical section information is not subject to independent audit.
Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial
performance and well being have changed over time:
1.Net Assets by Component
2.Changes in Net Assets
3.Fund Balances of Governmental Funds
4.Changes in Fund Balance of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant own-source
revenues, property tax:
1.Assessed and Estimated Actual Value of Taxable Property
2.Property Tax Rates – All Overlapping Governments
3.Principal Property Taxpayers
4.Property Tax Levies and Collections
Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current levels of
outstanding debt and the City’s ability to issue additional debt in the future:
1.Ratio of Outstanding Debt by Type
2.Direct and Overlapping Bonded Debt
3.Legal Bonded Debt Margin Information
4.Ratio of General Bonded Debt Outstanding
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment
within which the City’s financial activities take place:
1.Demographic and Economic Statistics
2.Principal Employers
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in
the City’s financial report relates to the services the City provides and the activities it performs:
1.Full-Time Equivalent City Employees by Function/Programs
2.Operating Indicators by Function/Program
3.Capital Asset Statistics by Function/Program
Sources
Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual
Financial Reports for the relevant year. The City implemented GASB Statement 34 in 2002-03;
schedules presenting government-wide information include information beginning in that year.
143
NOTES
144
788,213
8,692,1759,063,6169,851,8298,692,175
2010
31,087,861
40,151,477
120,405,290160,185,326121,193,503170,037,155
$ $
136,127
6,661,0748,949,1429,085,2696,661,074
2009
33,290,050
42,239,192
103,341,905143,293,029103,478,032152,378,298
$ $
84,126
9,926,7707,849,1477,933,2739,926,770
2008
85,173,99843,242,639
85,258,12451,091,786
138,343,407146,276,680
$ $
467,416
9,265,5656,977,4367,444,8529,265,565
2007
80,343,05339,243,717
80,810,46946,221,153
128,852,335136,297,187
$ $
497,681
8,329,6716,291,4396,789,1208,329,671
2006
83,064,87926,916,679
83,562,56033,208,118
118,311,229125,100,349
$ $
(Unaudited)
578,962
7,291,9256,028,9896,607,9517,291,925
2005
86,530,01721,202,795
87,108,97927,231,784
115,024,737121,632,688
Last Eight Fiscal Years
CITY OF CUPERTINO
Net Assets by Component
Fiscal Year Ended June 30
(Accrual basis of accounting)
$ $
645,290
7,416,9307,314,0687,959,3587,416,930
2004
85,425,75318,541,954
86,071,04325,856,022
111,384,637119,343,995
$ $
688,331
9,081,7916,573,5147,261,8459,081,791
2003
24,472,451
31,045,965
113,259,283120,521,128
$ $
Total governmental activities net assetsTotal business-type activities net assetsTotal primary government net assets
Invested in capital assets, net of related debt79,705,041RestrictedUnrestrictedInvested in capital assets, net of related debtUnrestricted
Invested in capital assets, net of related debt80,393,372RestrictedUnrestricted
Governmental ActivitiesBusiness-Type ActivitiesPrimary Government
145
---
6,895
21,873
457,169811,676930,773556,636568,770
2010
1,911,6658,385,4761,653,0344,080,1344,444,5364,351,9752,076,2642,018,1471,478,1431,854,6485,808,1073,310,3552,042,5575,511,3592,104,2991,578,3302,249,1916,507,485
(Continued)
19,320,15146,223,23552,031,34213,185,22919,692,714
$
-
--
2,240
14,471
495,845869,295801,280157,311596,944
2009
1,769,5008,804,1951,624,2104,001,7384,206,3436,177,8792,118,7141,998,1841,594,3251,739,8925,828,2463,586,9934,014,0364,759,4852,100,7041,732,2822,364,0376,808,438
18,104,64946,807,22852,635,47414,190,64020,999,078
$
--
-
10,71114,309
450,206799,350847,424135,942640,771
2008
1,636,2847,679,4671,216,1643,923,2173,845,8734,059,7402,183,4032,056,0611,547,4021,853,2175,906,8863,551,4782,392,9875,696,1242,254,7901,605,5452,493,2147,008,629
16,569,31041,113,45847,020,34413,434,01620,442,645
$
-
3,618
14,343
975,064771,570193,752200,969690,603
2007
1,675,4437,148,1871,186,9293,874,0032,517,7254,090,9592,239,6572,122,8051,623,8391,830,4017,323,6791,031,7364,768,0263,048,5123,496,0952,254,4161,101,5641,655,1692,396,7208,112,815
16,230,27438,963,17746,286,85612,742,70820,855,523
$
-
23,201
914,024588,818722,164240,074201,250522,950704,390135,539
2006
1,354,5436,577,1994,208,3892,359,9664,541,9652,262,9132,101,1981,448,0481,729,1947,170,1135,286,3363,403,7622,203,1271,155,9861,419,6722,331,4097,950,123
1,302,855
16,384,02638,603,02545,773,13810,399,73718,349,860
$
--
28,860
824,317438,440694,952163,462286,280593,657473,787
2005
1,280,3396,179,3263,750,1742,173,9363,269,4752,289,5262,927,0601,341,7121,452,9571,689,4367,849,6054,164,7922,164,9078,068,0502,395,2821,218,9581,385,8372,167,7057,670,429
14,585,23234,352,32542,201,93015,738,479
$
(Unaudited)
Changes in Net Assets
-
Last Eight Fiscal Years
CITY OF CUPERTINO
Fiscal Year Ended June 30
(Accrual basis of accounting)
16,65084,660
710,754493,244838,457148,337325,959456,211
2004
1,430,5236,090,0383,923,3772,234,5092,678,1092,317,8371,793,0831,353,3621,352,5091,590,3026,582,5001,903,2772,496,6893,612,1029,341,4712,398,8191,301,0921,184,8601,910,5997,336,241
15,546,46134,931,60841,514,10816,677,712
$
-
61,441
965,211
763,254570,412468,110294,577161,969348,905484,530
2003
1,635,8466,041,8313,556,1292,156,9723,234,4563,796,4721,897,4251,497,4201,130,0771,554,8346,650,1681,624,1812,388,1996,251,1522,397,4391,479,3121,109,7991,872,0047,404,525
17,534,12838,719,08845,369,25613,594,236
$
Total governmental activities expensesTotal business-type activities expenseTotal primary government expensesTotal government activities program revenuesTotal business-type activities
program revenueTotal primary government program revenues
AdministrationLaw enforcementPublic and environmental affairsAdministrative servicesRecreation servicesCommunity developmentPublic worksInterest on long-term debtResource recoveryBlackberry
farmCupertino sports centerRecreation programsSenior centerAdministrationLaw enforcementAdministrative servicesRecreation servicesCommunity developmentPublic worksResource recoveryBlackberry
farmCupertino sports centerRecreation programsSenior center
Operating grants and contributions
Charges for services:Operating grants and contributionsCapital grants and contributionsCharges for services:
Governmental activities:Business-type activities:Governmental activities:Business-type activities:
ExpensesProgram Revenues
146
---
67,18267,182
(70,628)
699,378166,440295,059119,393766,560695,932
2010
7,488,7014,420,9121,322,9259,930,5302,142,1373,271,4522,597,9301,211,899
32,967,37833,034,560
(33,038,006)(32,338,628)
$
---
81,342
980,192171,621889,823171,804171,804
2009
7,491,9654,299,9021,211,1282,140,2743,205,0732,618,1251,317,7674,949,6221,151,9966,101,618
14,139,19037,566,21037,738,014
(32,616,588)(31,636,396)
$
-
220,267266,789103,529992,150378,828488,421
(992,150)(613,322)
2008
1,101,7436,941,9103,894,5022,711,5903,175,7242,547,4391,709,8921,451,9739,491,0729,979,493
13,154,74937,170,51436,557,192
(27,679,442)(26,577,699)
$
364,261
789,136187,276291,423500,000366,596655,732
(500,000)(133,404)
2007
6,529,7723,652,5092,511,1843,011,7552,537,0182,661,4491,752,1771,510,410
11,252,34136,761,57536,628,17110,541,10611,196,838
(26,220,469)(25,431,333)
$
9
4
8
,
2
2
780,010185,676669,820189,2622800,000201,159181,169
,
(300,039)
(800,000)(598,841)
2006
4,728,8113,569,3002,054,9042,809,5872,353,5752,534,39313,286,4923,467,661
10,671,64231,489,78030,890,939
(28,203,288)(27,423,278)
$
0
0
-
0
,
0
315,974
978,059
9684,952545,155215,769
,
(179,176)
2005
4,296,94029,224,6611,790,9172,705,8882,217,3133,146,5161,388,0003,640,1002,288,693
(1,388,000)(1,172,231)(1,351,407)
29,924,37528,752,144
(26,284,275)(26,463,451)
$
(Unaudited)
Changes in Net Assets
--
Last Eight Fiscal Years
CITY OF CUPERTINO
Fiscal Year Ended June 30
(Accrual basis of accounting)
76,57095,127
(56,228)
526,560697,513
753,741166,714175,000
(175,000)
2004
3,944,4598,654,1851,632,5142,636,2642,194,6511,248,4372,460,137
(1,874,646)(1,177,133)
23,715,49123,659,263
(25,590,137)(24,836,396)
$
--
25,83179,280
860,853
754,357225,000211,093106,496
(225,000)
2003
4,100,8568,843,7921,679,2252,566,2652,175,9131,110,5453,215,8661,207,017
(7,238,346)(6,377,493)
25,229,59025,336,086
(32,467,936)(31,713,579)
$
Total primary government net expenseTotal Government ActivitiesTotal business-type activitiesTotal primary governmentTotal primary government(1) Replaced the reduced motor vehicle license
fee (an intergovernmental revenue) in 2005.(2) The 2006 state take-away of sales taxes, property taxes, and vehicle license fees is reported in this category.
Property taxesProperty tax in lieu of motor vehicle fee (1)Incremental property taxSales taxesTransient occupancy tax Utility user taxFranchise taxOther taxes
Intergovernmental (2)
Taxes:Investment earningsMiscellaneousGain on sale of landTransfersInvestment earningsTransfers
Business-type activities
Governmental activitiesBusiness-type activitiesGovernmental activities:Business-type activities:Government activities
Net (Expense) Revenue:General Revenues and TransfersChange in Net Assets
147
2,308,2905,465,4235,113,0203,788,810
2010
13,622,82815,931,118
14,367,253
$ $
968,077
2,325,2834,180,4833,692,187
8,840,747
2009
19,871,57422,196,857
$
$
2,668,9147,270,3317,631,866
2008
16,997,56919,666,48311,240,85126,143,048
$ $
(472,405)
2,711,5868,555,0426,844,632
2007
23,634,87426,346,46014,927,269
$ $
2,931,0464,925,9006,249,0049,966,563
2006
(1,208,341)
23,866,56826,797,614
$ $
(Unaudited)
3,864,9692,701,0673,618,8141,663,0337,982,914
2005
18,313,84622,178,815
Last Eight Fiscal Years
CITY OF CUPERTINO
$ $
Fiscal Year Ended June 30
(Accrual basis of accounting)
Fund Balances of Governmental Funds
3,897,2709,784,6453,736,4462,236,730
2004
12,632,28616,529,55615,757,821
$ $
3,782,6893,976,5176,576,208
2003
13,099,03316,881,72220,891,65631,444,381
$ $
Total General FundTotal All Other Governmental FundsThe City implemented GASB Statement 34 in fiscal year 2003 and has elected to show the above information from that date.
Special Revenue FundsCapital Project Funds
ReservedUnreservedReservedUnreserved, reported in:
General FundAll Other Governmental Funds
148
---
9.1%
774,219
736,239689,941
(739,233)
7,539,8352,583,1311,701,1573,733,4144,003,7644,125,7394,710,3601,460,0001,607,7677,788,417
1,469,0048,384,3101,487,2652,076,264
2010
(2,347,000)
30,994,58343,411,338
11,961,218
45,019,105
(10,135,417)
$
$
---
8.9%
80,835
761,320
1,300,5086,896,3942,740,4631,707,5333,634,0433,789,2605,841,4281,415,0005,035,925
1,336,9218,133,1681,486,4432,118,714
2009
(7,758,925)(2,723,000)
36,395,95061,931,930
11,914,58422,262,369
49,883,003
(12,048,927)(14,771,927)
$
$
---
9.8%
95,388
722,087
2,490,4448,285,2802,656,0171,728,0993,797,1563,745,2443,931,0558,334,0931,355,0006,105,3874,535,802
1,351,2737,456,6611,169,2472,183,403
2008
(1,569,585)
34,589,13944,461,067
11,137,93519,136,165
50,566,454
(20,705,750)
$
$
--
10.6%
926,310154,235
7,965,210
2,169,9778,200,5193,325,8442,062,0673,715,9942,403,2963,969,8374,292,1691,295,0001,663,8429,658,0004,509,552
1,287,1016,975,5171,121,4372,239,657
2007
(3,455,658)
28,903,99337,777,735
10,477,727
45,742,945
(14,777,500)
$
$
--
10.6%
629,586245,176
853,484
3,599,599
1,607,8375,896,1673,614,9532,143,7294,103,4972,302,9954,467,6552,771,5021,270,0002,422,8498,364,0843,002,8496,602,448
1,236,3906,499,9112,262,913
2006
(7,784,084)
25,616,55336,154,402
10,386,055
39,754,001
$
$
s
---
11.4%
968,000
559,791
758,314
1,119,399
5,567,2662,896,0001,568,9351,792,7953,671,3032,121,3663,156,9089,637,3141,245,0002,289,5267,904,763
1,162,0966,144,695
2005
(3,093,648)(6,936,763)(2,125,648)
(Unaudited)
23,614,62340,212,457
10,025,935
37,118,809
$
$
Last Eight Fiscal Years
CITY OF CUPERTINO
Fiscal Year Ended June 30
---
(Modified accrual basis of accounting)
5,00011.6%
940,963
930,050723,748686,798
7,236,9551,540,7601,009,2603,758,8062,141,4312,563,2429,322,0861,220,0002,317,8374,765,307
1,222,5815,950,849
2004
(4,760,307)
Changes in Fund Balances of Governmental Funds21,004,40549,429,867
20,246,237
33,386,141
(16,043,726)(16,038,726)
$
$
-
25.3%
59,219
855,844550,377703,431
1,910,5033,475,991
6,318,5231,410,5722,104,1673,177,4066,812,8566,925,9482,939,7575,639,670
1,474,9246,015,036
2003
20,200,25044,069,851
10,440,33557,677,51925,775,53818,404,233
31,305,288
(12,764,563)(39,208,286)(25,840,538)
$
$
f
)
s
Excess (deficiency) of revenues over(under) expendituresTotal other financing sourcesChange in fund balancesDebt service as a percentage ononcapital expenditures (1The City implemented
GASB Statement 34 in fiscal year 2003. This calculation is included only for fiscal years from that date.1) Noncapital expenditures is total expenditures less capital assets added
each year to statement of net asset
Total revenuesTotal expenditure
Recreation servicesCommunity development
AdministrationLaw enforcementPublic and environmental affairsPublic worksPrincipal repaymentInterest and fiscal charges
Administrative services
TaxesUse of money and propertyIntergovernmentalLicenses and permitsBond proceedsProceeds from sale of landPayment to refunded debt escrow agentTransfers inTransfers out
Charges for servicesFines and forfeituresOtherCurrent:Capital outlayDebt service:
RevenuesOther Financing Sources (Uses)
Expenditures
149
150
0
6
8
4
0
.
1
0
3
7
4
0
.
1
0
3
8
4
0
.
1
0
4
8
4
0
.
1
0
0
9
4
0
.
1
0
4
0
5
0
.
1
0
9
9
4
0
.
1
(Unaudited)
0
4
8
Property Tax Rates
4
Last Ten Fiscal Years
0
.
CITY OF CUPERTINO
1
(Per $100 Assessed Valuation)
All Overlapping Governments
0
0
5
4
0
.
1
-
2001200220032004200520062007200820092010
1.00001.00001.00001.00001.00001.00001.00001.00001.00001.00000.00240.00240.00240.00240.00240.00240.00240.00240.00240.00240.03560.03640.03880.03880.03880.03880.03880.03880.03880.03880.02640.04570.03290
.03570.03600.03500.02890.03370.03060.03120.00000.00000.00000.00000.00000.00000.01290.01290.01290.01290.01400.01150.01080.01100.01290.01190.03460.01130.01230.03220.01740.03660.02520.02630.03440.08610.
07970.02710.07430.07010.00750.00620.00720.00870.00920.00780.00720.00710.00610.00740.00000.00000.00000.00000.00000.01400.01260.01180.00320.0140
0.00000.00000.00000.00000.00000.00000.00000.00000.00000.01220.02390.02040.02460.02490.02680.02600.02430.02410.03390.03060.03200.02240.05300.04170.04090.03710.03510.03450.03300.0352
0.036500.02236
0.016500.022930.016870.017260.016640.043740.057420.058700.062630.06510
0.02850.03870.03850.03610.03560.03510.03630.03630.0388 0.022360.022360.022340.022340.043430.057250.057060.056610.05641
Total Direct & Overlapping Rates1.19571.21011.23361.22801.23751.29471.31161.24001.28381.3258Total Direct RateSource: HdL, Coren & Cone
Basic LevyCounty Bond 2008 Hospital FacilityCounty Library Retirement LevyCounty Retirement LevyCupertino ElementaryEl Camino Hopital 2003Foothill/DeAnza College 1999Fremont HighLos
Gatos/Saratoga High 1998Santa Clara UnifiedSanta Clara Valley Water DistrictSaratoga ElementaryWest Valley College 2004City's Share of 1% LevyRedevelopment Rate
151
1.21%4.94%3.70%1.79%0.00%0.97%0.00%0.82%0.00%0.00%0.00%0.82%0.72%0.67%
0.85%0.00%
16.49%
Valuation
Percentage of
------
89,818,36371,688,32162,988,16860,439,32760,419,91853,503,37849,825,498
2001
366,226,505274,315,562132,704,969
1,221,930,009
Valuation
$$
6.92%2.59%0.00%0.00%1.46%0.71%0.54%0.52%0.51%0.48%0.45%0.00%0.00%0.00%
0.00%0.56%
14.74%
Valuation
Percentage of
(Unaudited)
------
CITY OF CUPERTINO
Principal Property Taxpayers
95,628,67970,950,90969,402,99664,504,80061,506,000
76,229,43072,466,198
2010
351,121,167197,258,103
937,206,385
Current Year and Nine Years Ago
1,996,274,667
Assessed Total AssessedAssessedTotal Assessed
Valuation
$$
Taxpayer
TotalSource: The HdL Companies
Apple Inc.Hewlett PackardTandem ComputerCupertino Gateway PartnersSymantec Corp.Cupertino City Center BuildingsTeachers Insurance & AnnuityCupertino Square500 Forbes LLCIrvine Company
LLCCupertino Village LPECI Two Results LLCRocktino Fee LLCRWC LLCRidgeview Court AssociatesVilla Serra Apartments
152
100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%
Percent of
3579478731
2082184798
6760940108
,,,,,,,,,
,
461247230
9
222111606
0
010397177
2
,,,,,,,,,,
3444446788
$
- - - - - - - - -
-
$
PercentDelinquentTotalTotal Tax
100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%
(Unaudited)
Last Ten Fiscal Years
CITY OF CUPERTINO
Property Tax Levies and Collections
3,209,6234,024,7054,126,6874,021,0294,312,9144,914,4876,717,0487,162,1778,703,0938,760,881
$
3,209,6234,024,7054,126,6874,021,0294,312,9144,914,4876,717,0487,162,1778,703,0938,760,881
$
YearTax LevyCollectionsCollectedCollectionsCollectionsto Tax Levy
20032004200520062007200820092010
20012002
FiscalTotalCurrent Taxof LevyTaxTaxCollections
Source: County of Santa Clara, Department of Finance
153
------
-
1.53%1.59%1.36%
885838994948902877841815
1,0531,018
$
0.60%0.49%0.63%0.58%0.55%0.50%0.45%0.41%0.36%0.34%
Percentage
(Unaudited)
of Estimated% of
Last Ten Fiscal Years
CITY OF CUPERTINO
Ratios of Outstanding Debt by Type
44,745,00042,370,00054,770,00053,550,00052,305,00051,035,00049,740,00048,385,00046,970,00045,510,000
$
Yearof Participationof Taxable PropertyPer CapitaIncome (1)
200220032004200520062007200820092010
2001
FiscalCertificatesActual Market ValuePersonal
(1) Not available prior to 2008
154
CITY OF CUPERTINO
Direct and Overlapping Bonded Debt
June 30, 2010
(Unaudited)
2008-09 Assessed Valuation:
$13,545,013,769
Redevelopment Incremental Valuation:
119,794,449
Adjusted Assessed Valuation
$13,664,808,218
Total DebtCity’s Share of
Overlapping Tax and Assessment Debt:6/30/2010% Applicable (1)Debt 6/30/10
Santa Clara County$350,000,0004.972%17,402,000$
Santa Clara Valley Water District, Zone W-1910,0005.08446,264
Foothill-DeAnza Community College District479,279,28813.80766,174,091
West Valley Community College District215,069,6920.6691,438,816
Santa Clara Unified School District267,085,0002.1085,630,152
Fremont Union High School District202,415,00029.57359,860,188
Cupertino Union School District127,264,91149.57163,086,489
El Camino Hospital District144,975,0001.3611,973,110
Santa Clara Valley Water District Benefit Assessment152,440,0004.9727,579,317
City of Cupertino 1915 Act Bonds35,000100.00035,000
Total Overlapping Tax and Assessment Debt1,939,473,891223,225,427
Direct and Overlapping General Fund Debt
Santa Clara County General Fund Obligations825,070,0004.972%41,022,480
Santa Clara County Pension Obligations388,044,8224.97219,293,589
Santa Clara County Board of Education COP13,580,0004.972675,198
Foothill-De Anza Community College District COP23,450,00013.8073,237,742
West Valley-Mission Community College District General Fund Obligations56,120,0000.669375,443
Santa Clara Unified School District COP12,980,0002.108273,618
City of Cupertino Certificates of Participation45,510,000100.00045,510,000
Santa Clara County Vector Control District COP3,965,0004.972197,140
Midpeninsula Regional Open Space Park District COP113,788,0317.7528,820,848
Total Direct and Overlapping General Fund Debt1,482,507,853119,406,058
(2)
Combined Total Debt$3,421,981,744$342,631,485
Ratios to 2009-10 Assessed Valuation:
Total Overlapping Tax and Assessment Debt1.65%
Ratios to Adjusted Assessed Valuation:
Combined Direct Debt ($45,510,000)0.33%
Combined Total Debt2.51%
State School Building Aid Repayable as of 6/30/10:
$-
Percentage of overlapping agency's assessed valuation located within boundaries of the city.
(1)
(2)Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and
non-bonded capital lease obligations.
Source: California Municipal Services
155
-
45,510,000
486,725,481486,725,481
3,244,836,540
$$$$
Total net debt
$ - - - - - - - - - -
(Unaudited)
Last Ten Fiscal Years
CITY OF CUPERTINO
Total NetLegal applicable to the
$ 277,770,332 321,111,800 325,706,841 345,745,500 357,256,552
376,159,752 408,373,114 431,735,623 473,910,827 486,725,480
Legal Bonded Debt Margin Information
$ - - - - - - - - - -
YearLimitto LimitMargindebt limit
2001277,770,3322002321,111,8002003325,706,8412004345,745,5002005357,745,5002006376,159,7582007408,373,1142008431,735,6232009473,910,8272010486,725,480
FiscalDebtDebt ApplicableDebtlimit as a % of
Debt limit - 15% of adjusted valuationTotal Bonded DebtLess: Certificates of Participation not subject to debt limit(45,510,000)Amount of debt subject to limitLegal Bonded Debt Margin
Assessed Valuation:Secured property assessed value, net of exempt real property12,979,346,158Adjusted valuation - 25% of assessed valuationAmount of Debt Subject to Limit:The Government
Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of
market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations
shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the
legal debt margin was enacted by the State of California for local governments located within the state.Source: City of Cupertino
156
Ratio of General
$
$ - - - - - - -
- - -
$ - - - - - - -
- - -
(Unaudited)
Last Ten Fiscal Years
CITY OF CUPERTINO
$ - - - - - - - - - -
Ratio of General Bonded Debt Outstanding
7,407,208,836 8,562,981,335 8,685,515,766 9,219,879,996 9,526,841,379 10,292,965,413
11,176,513,115 11,512,949,952 13,172,425,287 13,545,013,769
200150,546200250,546200352,000200452,628200552,600200652,600200755,162200855,162200955,840201055,838
Year Population Value Bonded DebtPer Capita Assessed Value
Fiscal AssessedGeneralBonded DebtBonded Debt to
Source: (1) HdL, Coren & Cone (2) City of Cupertino
157
City
3.02%3.05%3.10%3.13%2.99%2.99%2.98%3.12%2.96%2.97%
Population
% of County
Rate
ment
2.0%3.2%5.4%5.4%4.1%3.4%2.8%3.0%3.8%7.2%
Unemploy-
8,8229,0639,1089,1479,1389,8759,823
10,30010,30010,350
School
Enrollment
Grades 9-12
42,70943,62943,89445,66749,36152,92358,21661,73462,54759,999
Income
Personal
Per Capita
$
(Unaudited)
Last Ten Fiscal Years
CITY OF CUPERTINO
City
Income
Personal
2,161,154,0002,221,262,0002,278,527,0002,368,206,0002,595,892,0002,805,559,0003,117,408,0003,369,668,0003,442,884,0003,350,250,000
Demographic and Economic Statistics
$
1,674,6341,668,3091,675,9151,656,1281,759,5851,773,2581,794,5221,748,9761,857,6211,800,876
County
50,60250,91351,91051,85852,59053,01253,54954,58455,04555,838
City
PopulationPopulation
2001
200220032004200520062007200820092010
Year
Fiscal
Source: (1) HdL, Coren & Cone (2) Fremont Union High School District
158
Percentage
--
3,0003,000
11.3% 13.2% 5.3%
11.3% 1.7% 11.3% 4.9% 1.4% 1.4% 1.0%
0.0% 0.0% 0.0% 0.0% 0.0%
(1)(1)
1.2%
12.9%
Percentage
285
3,1003,000
(Unaudited)
Fiscal Year 2010Fiscal Year 2001
Principal Employers
CITY OF CUPERTINO
Number ofof Total CityNumber ofof Total City
12.4%3,500 1.0%-
7.0%1,400 2.1%- 1.8%443 1.0%-
0.0%3,000 0.0%1,300 0.0%375 0.0%375 0.0%278
Current Year and Nine Years Ago
t
d
tware
f
ant So
di
or
h
Hewlett-PackarCupertino Union School District1,679Arc Sight Inc.512Health Care Center at the Forum285
EmployerEmployeesEmployment (2)EmployeesEmployment(2)Apple, Inc.34,300Oracle8,000Foothill/DeAnza Community College DistricFremont Union High School District429CTrend Micro Inc.250Compaq
Computers-Symantec Corp.-Honeywell-Measurex Corp.-Rational Software Corp.-Pacific Gas & Electric-(1) Because employees outside of the City are included, percentage of City employment
not shown. (2) Based on City labor force of 24,100 in 2010 and 26,500 in 2001.Sources: InfoUSA.com Cupertino Union School District Fremont Union High School
District City of Cupertino California Employment Development Department
159
Council/CommissionsAdministrationPublic/Env. AffairsAdministrative ServicesParks & RecreationCommunity Development / RDAPublic Works
2001200220032004200520062007200820092010
0.00
80.0070.0060.0050.0040.0030.0020.0010.00
160
447
2010
1,3852,287
1 Day
3 Days5 Days3 Days
400
2009
1,7002,243
1 Day
3 Days5 Days3 Days
444
2008
1,4192,110
1 Day
3 Days5 Days3 Days
510
2007
1,3361,935
1 Day
3 Days5 Days3 Days
(Unaudited)
550
2006
1,0213,100
1 Day
3 Days5 Days3 Days
Last Six Fiscal Years
CITY OF CUPERTINO
Operating Indicators by Function/Program
441916
2005
2,000
1 Day
3 Days5 Days3 Days
5.37 Min.4.94 Min.4.94 Min.5.83 Min.3.88 Min.3.95 Min.8.61 Min.8.09 Min.7.15 Min.7.95 Min.5.94 Min.5.90 Min.
18.92 Min.16.74 Min.15.82 Min.15.73 Min.9.40 Min.9.77 Min.
24 Hrs of Call24 Hrs of Call24 Hrs of Call24 Hrs of Call24 Hrs of Call24 Hrs of Call
Within 5 DaysWithin 5 DaysWithin 5 DaysWithin 5 DaysWithin 5 DaysWithin 5 Days
696 Curb Miles696 Curb Miles696 Curb Miles696 Curb Miles696 Curb Miles696 Curb Miles
Within 10 DaysWithin 10 DaysWithin 10 DaysWithin 10 DaysWithin 10 DaysWithin 10 Days
Access CupertinoPriority OnePriority TwoPriority ThreeStreet SweepingStreet MaintainenceTeen Center MembershipsSports Center MembershipsSenior Center MembershipsApproved Building Plan
SetsDiscretionary Land Use ApplicationsWithin 21 DaysWithin 21 DaysWithin 21 DaysWithin 21 DaysWithin 21 DaysWithin 21 DaysPublic Notice of Upcoming ProjectsAccounts Payable ProcessingBusiness
License Renewal CertificatesDuplication Requests
Function/ProgramPublic InformationPublic Safety Sheriff ResponsePublic WorksCulture & RecreationCommunity DevelopmentAdministrative Services(1) Statistical information was not tracked
prior to 2005.
161
009
553
42
,
3
009
553
42
,
3
009
553
42
,
3
009
553
42
,
3
009
553
42
,
3
009
553
42
,
3
009
553
42
,
(Unaudited)
3
Last Ten Fiscal Years
CITY OF CUPERTINO
009
553
42
,
3
Capital Asset Statistics by Function/Program
009
553
42
,
3
1111111111111111111111111111111111111111000011111111111111111111111111111111111111111111111111111111
09
0
1515151515151515151617171717171717171717
553
4
2
,
150.8150.8150.8150.8150.8150.8150.8150.8150.8151.4
3
2001200220032004200520062007200820092010
Miles of StreetsStreetlightsTraffic SignalsCity ParksCity Park AcreageCity TrailsGolf CoursesBoathouseCommunity CenterCommunity HallSenior CenterSports CenterSwimming PoolsTennis CourtsSports
FieldsCity Library
Function/ProgramPublic WorksCulture & RecreationSource: City of Cupertino
162
COMMUNITY
PROFILE
163
NOTES
164
Cupertino owes its name and earliest mention in recorded history to the 1776 expedition led by the Spaniard, Don Juan
Bautista de Anza, from Sonora, Mexico to the Port of San Francisco to found the presidio of St. Francis.
Leaving the majority of the party of men, women, and children
in Monterey to rest from their travels, deAnza, his diarist and
cartographer, Petrus Font, and 18 other men pressed on through
the Santa Clara Valley in late March to their San Francisco
destination.
With the expedition encamped in what is now Cupertino, Font
christened the creek next to the encampment the Arroyo San
Joseph Cupertino in honor of his patron, San Guiseppe (San
Joseph) of Cupertino, Italy. The arroyo is now known as
Stevens Creek.
The village of Cupertino sprang up at the crossroads of
Saratoga-Sunnyvale Road (now DeAnza Boulevard) and
Stevens Creek Boulevard. It was first known as West Side; but by 1898 the post office at the Crossroads needed a new
name to distinguish it from other similarly named towns. John T. Doyle, a San Francisco lawyer and historian, had given
the name Cupertino to his winery in recognition of the name bestowed on the nearby creek by Petrus Font. In 1904 the
name was applied to the Crossroads and to the post office when the Home Union Store incorporated under the name, The
Cupertino Stores, Inc.
Many of Cupertino’s pioneer European settlers planted their
land in grapes. Vineyards and wineries proliferated on
Montebello Ridge, on the lower foothills, and on the flat
lands below.
After 1906 a lot more than grape growing was going on in
Cupertino. Orchards were thriving and new businesses were
being started. In the late 1940’s Cupertino was swept up in
Santa Clara Valley’s postwar population explosion.
Concerned by unplanned development, higher taxes, and
piecemeal annexation to adjacent cities, Cupertino’s
community leaders began a drive in 1954 for incorporation.
Cupertino rancher Norman Nathanson, the Cupertino –
Monta Vista Improvement Association, and the Fact Finding
Committee played important roles in this movement.
th
Incorporation was approved in the September 27, 1955 election. Cupertino officially became Santa Clara County’s 13
City on October 10, 1955.
A major milestone in Cupertino’s development was the creation by some of the city’s largest landowners of Vallco
Business and Industrial Park in the early 1960’s. Of the 25 property owners, 17 decided to pool their land to form Vallco
Park, six sold to Varian Associates, a thriving young electronics firm, founded by Russell Varian, and two opted for
transplanting to farms elsewhere. The name Vallco was derived from the names of the principal developers: Varian
Associates and the Leonard, Lester, Craft, and Orlando families.
165
Cupertino, with a population of 55,162 and city limits stretching across 13 square miles, is considered to be one of the San
Francisco Bay Area’s most prestigious cities in which to live and work.
Economic health is an essential component to maintaining a balanced environment, which provides high-level
opportunities, and services that create and help sustain a sense of community and quality of life. Public and private
interests must be mutual in that our success as a partnership is a direct reflection of our success as a community. The
cornerstone of this partnership is that of a cooperative and responsive government that provides an environment for
business and residential prosperity and fosters strong working relationships with all sectors of the community.
Our economic development strategies are tailored to address the specific needs of the community. As the City of
Cupertino is a mature city with over 90% build-out, our focus concentrates more on business retention and revitalization.
Business recruitment is site specific and targeted to industries that enhance, rather than draw from, our existing business
base.
As home to many well-known high-tech companies, Cupertino offers a dynamic and exciting business climate. Apple
Inc., Verigy, Durect Corporation, and ArcSight, are headquartered in the city. Hewlett-Packard and DeAnza College, one
of the largest single-campus community colleges in the country, are other major employers. Seagate Technology will
consolidate offices and relocate their headquarters into the city.
The City’s proactive economic development efforts have resulted in a number of innovative, mutually beneficial
partnerships with local companies. The City strives to retain and attract local companies through policies of balanced
growth and streamlined permitting.
The Vallco shopping center includes Macy’s, JCPenney, and Sears as anchors and features many exciting entertainment
and eating venues. Shoppers can enjoy the latest shows at the AMC 16-screen theater, skating at the mall’s full-size ice
rink, and bowling at the chic and upscale Strike Cupertino. They can begin or top off the evening with fine-dining at the
critically-acclaimed Alexander’s Steakhouse or enjoy more casual cuisine at TGI Friday’s, Benihana’s, Dynasty Seafood
Restaurant, Fresh Choice, and food court. The city features many other restaurants and stores to serve the local workforce
and residents.
Four hotels occupy the city, with three of them operated by Hilton, Marriott, and Kimpton Group.
The City of Cupertino has a history of providing high-level municipal services to complement the sense of community
and quality of life enjoyed by our constituents. The City will continue to enhance and promote a strong local economy to
provide municipal services that make Cupertino a place that people are proud to call home.
166
The City of Cupertino operates as a general law city with a City Council-City Manager form of government. Five council
members serve four year, overlapping terms, with elections held every two years. The council meets twice a month on the
first and third Tuesday at 6:45 p.m. in the Community Hall.
The City has 163 authorized full-time benefited employee positions. City departments include Administration (City
Council, commissions, city manager, city attorney); Administrative Services (finance, human resources, information
technology, city clerk, neighborhood watch, emergency preparedness, code enforcement); Community Development
(planning, building, and economic development); Parks and Recreation; Public Works (engineering, maintenance,
transportation, solid waste, and storm drain management); and Public and Environmental Affairs. Police service is
provided by the Santa Clara County Sheriff’s Department, and fire service is provided through the Santa Clara County
Fire District.
Assisting the City Council are several citizen advisory commissions/committees which include housing,
telecommunications, fine arts, library, planning, audit, parks and recreation, bicycle and pedestrian, teen, economic
development, strategic planning, and public safety. Members of the volunteer boards are appointed by the City Council
and vacancies are announced so that interested residents may apply for the positions. Residents are kept informed about
city services and programs through the Cupertino Scene, a monthly newsletter; Cupertino’s government access cable TV
channel; The City Channel; and the city’s website.
HousingTax Rates and Government Services
The estimated median home value in Cupertino is $907,731 Residential, commercial, and industrial property is
as of May 2009, a decline of 1.56% from a year ago, appraised at full market value, as it existed on March 1,
according to RealtyTrac. 1975, with increases limited to a maximum of 2% annually.
Property created or sold since March 1, 1975 will bear full
Community Health Care Facilities
cash value as of the time created or sold, plus the 2%
Cupertino is served by the Cupertino Medical Clinic,
annual increase. The basic tax rate is $1.00 per $100 full
NovaCare Occupational Health Services. Nearby hospitals
cash value plus any tax levied to cover bonded
include El Camino Hospital in Mountain View, O’Connor
indebtedness for county, city, school, or other taxing
Hospital in San Jose, Community Hospital of Los Gatos,
agencies. Assessed valuations and tax rates are published
Kaiser Permanente Medical Center in Santa Clara, Stanford
annually after July 1.
Hospital in Palo Alto, and the Saratoga Walk-in Clinic in
Saratoga.Retail Sales Tax: Santa Clara County: 1.25%; City: 1%;
State General Fund: 6%; State Local Public Safety Fund:
Utilities
0.50%; State Local Revenue Fund: 0.25%; County
Gas & electric – Pacific Gas and Electric, 800-743-5000.
Transportation Fund: 0.25%. Total: 9.25%.
Phone – AT&T, residential service, 800-894-2355;
business service, 800-750-2355. Assessed Valuation: (Secured and Unsecured)
Cable – Comcast, 800- 945-2288. Cupertino: $13,495,632,397 (7/1/10)
Garbage – Recology, 408-725-0420. County: $296,474,111,554 (7/1/10)
Water – San Jose Water Company, 408-279-7900 and
Transportation
California Water, 650-917-0152.
Rail – CalTrain service to Gilroy and San Francisco, with
Sewer Service – Cupertino Sanitary District, 408-253-7071
local station four miles north of city; Amtrak station is 10
miles south.
Air –Mineta San Jose International Airport 11 miles south;
San Francisco International Airport 30 miles north.
Bus – Santa Clara Valley Transportation Authority.
Highways – Interstate Route 280, State Route 85.
167
Facts and Figures
Population in City Limits 55,162
Median Household Income $131,517
Median Age 39
Sales Tax Rate 9.25%
Registered Voters 26,658
Democrats 10,023
Republicans 5,829
American Independent 366
Other 320
Decline to State 10,120
Top 40 Sales Tax Producers
Fourth Quarter 2009
(In Alphabetical Order)
Alexander’s Steakhouse Insight Direct Scandinavian Designs
Apple Inc. JC Penney Sears
Argonaut Window & Door Joy Luck Place Shane Diamond Jewelers
Benihana of Tokyo Macy’s Shell Service Station
BJ’s Bar & Grill Marina Foods Symantec
California Dental Arts Mervyn’s Target
Chevron Service Stations Michael’s Arts & Crafts TJ Maxx
CVS Pharmacy Mirapath Union 76 Service Station
Cypress Hotel/Park Place Outback Steakhouse Valero Service Station
DeAnza College Campus Center Proofpoint Verigy
Dynasty Restaurant Ranch 99 Market Verizon Wireless
Elephant Bar Ricoh Whole Foods
Granite Rock Rite Aid Drug Store
Hewlett-Packard Rotten Robbie Service Station
Demographic Information
Asian 56.9%
White, non-Hispanic 33.8%
Hispanic or Latino 4.2%
Black or African American 1.4%
American Indian/Alaska Native 0.1%
Native Hawaiian/Other Pacific 0.1%
Islander
Other3.5%
168
Blackberry Farm
Blackberry Farm has been upgraded and restored to
improve the natural habitat for native trees, animals, and
fish. Improvements to the park include construction of a
new ticket kiosk, re-plastered pools, a new water slide,
bocce ball, horseshoe courts, and numerous upgrades to
the west bank picnic area. The park is located at 21979
San Fernando Avenue. Telephone: 408-777-3140.
The Blackberry Farm golf course is located at 22100
Stevens Creek Boulevard. Telephone: 408-253-9200.
The Quinlan Community Center Civic Center and Library
The City of Cupertino’s Quinlan Community Center is a The complex has a 6,000 square foot Community Hall,
27,000 square foot facility that provides a variety of plaza with fountain, trees and seating areas. City Council
recreational opportunities. meetings are held in the Community Hall as well as
Planning Commission and Parks and Recreation
Most prominent is the Cupertino Room - a multi-
Commission sessions.
purpose room that can accommodate 300 people in a
banquet format. Telephone: 408-777-3120. The 54,000 square foot library continues to be one of the
busiest in the Santa Clara County Library system. For
Cupertino Sports Center
more information call 408-446-1677.
The Sports Center is a great place to meet friends. The
McClellan Ranch Park
facility features 17 tennis courts, complete locker room
facilities, and a fully equipped fitness center featuring A horse ranch during the 1930’and 40’s, this 18-acre park
free weights, Cybex, and cardio equipment. A teen has the appearance of a working ranch. Preserved on the
center is also included as well as a child watch center. property are the original ranch house, milk barn, livestock
The center is located at the corner of Stevens Creek barn, and two historic buildings: Baer’s Blacksmith Shop,
Boulevard and Stelling Road. Telephone: 408-777-originally located at DeAnza and Stevens Creek, and the
3160. old water tower from the Parish Ranch, now the site of
Memorial Park. Rolling Hills 4-H Club members raise
Cupertino Senior Center
rabbits, chickens, sheep, swine, and cattle and a Junior
Nature Museum, which features small live animal exhibits
The Senior Center provides a welcome and friendly
and dispenses information about bird, animal, and plant
environment for adults over age 50. There is a full
species of the area. McClellan Ranch is located at 22221
calendar of opportunities for learning, volunteering, and
McClellan Road. Telephone: 408-777-3120.
enjoying life. There are exercise classes, a computer lab
and classes, language instruction including English as a
second language, and cultural and special interest
classes. The center also coordinates trips and socials.
The Senior Center is located at 21251 Stevens Creek
Boulevard and is open Monday through Friday 8 a.m. to
5 p.m. Telephone: 408-777-3150.
169
Winner of numerous state and national awards for excellence, our
city’s schools are widely acknowledged to be models of quality
instruction.
Cupertino Union School District serves 16,500 students in a 26 square
mile area that includes Cupertino and portions of five other cities. The
district has 20 elementary schools and five middle schools, including
several choice programs. Eighteen schools have received state and/or
national awards for educational excellence.
Student achievement is exceptionally high. Historically, district test
scores place Cupertino among the premier public school districts in
California. The district is a leader in the development of a standards-
based system of education and is nationally recognized for leadership
in the use of technology as an effective tool for learning. Quality teaching and parent involvement are the keys to the
district’s success.
The Fremont Union High School District serves over 10,000 students in a 42 square mile area covering all of Cupertino,
most of Sunnyvale and portions of San Jose, Los Altos, Saratoga, and Santa Clara. The five high schools of the district
have garnered many awards and recognition based on both the achievement of students and the programs designed to
support student achievement. Four of five high schools in the district exceeded their state established achievement targets
for the 2009 Academic Performance Index. District students are encouraged to volunteer and/or provide service to
organizations within the community. During their senior year, if students complete 80 hours of service to a non-profit
community organization, they are recognized with a “Community Service Award” medal that may be worn during their
graduation ceremonies.
Building on its tradition of excellence and innovation, DeAnza
Cupertino is served by four local
College challenges students of every background to develop their
institutions of higher education:
intellect, character and abilities; to achieve their educational goals;
DeAnza College, the University of
and to serve their community in a diverse and changing world.
San Francisco, National University
DeAnza College offers a wide range of quality programs and
and the UCSC Extension. In
services to meet the work force development needs of our region.
addition to these schools,
The college prepares current and future employees of Silicon
Valley in traditional classroom settings and through customized
Cupertino’s location offers easy
training arranged by employers. Several DeAnza programs
access to Stanford University, Santa
encourage economic development through college credit courses,
Clara University and San Jose State
short-term programs, services for manufacturers, technical
University.
assistance, and/or recruitment and retention services.
170
Euphrat Museum of Art
The highly regarded Euphrat Museum of Art, at its new location next to the new Visual Arts and Performance Center at
DeAnza College, traditionally presents one-of-a-kind exhibitions, publications and events reflecting the rich diverse
heritage of our area. The Museum prides itself on its changing exhibitions of national and international stature,
emphasizing Bay Area artists. Museum hours are 10 a.m. – 4 p.m. Monday through Thursday. Telephone: 408-864-
8836.
Fujitsu Planetarium
Stargazers will have a Cupertino facility catering to their interests, the Fujitsu Planetarium on the DeAnza College
campus. It will host a variety of planetarium shows and events, including educational programs for school groups and
family astronomy evenings when it reopens for Saturday evening shows on September 25, 2010. For more information,
visit the website at www.deanza.edu/planetarium or call 408-864-8814.
Flint Center
The cultural life of the Peninsula and South Bay is enhanced by programs presented at the Flint Center for Performing
Arts located at 21250 Stevens Creek Boulevard at DeAnza College campus. The center opened in 1971 and was named in
honor of Calvin C. Flint, the first chancellor of the Foothill-DeAnza Community College District. The box office is open
10 a.m. – 4 p.m. Tuesday through Friday and one and one half hours prior to any performance. Box office: 408-864-
8816; administrative office: 408-864-8820.
Cupertino Historical Society
On May 2, 1966, the Cupertino Historical Society was founded as a non-profit organization by a group of 177 longtime
residents concerned about the rapid growth in the area and its impact on the quickly vanishing Cupertino heritage. On
March 30, 1990, the Society opened the Cupertino Historical Museum dedicated to the preservation and exhibition of the
city’s history. Through its exhibits the museum attempts to develop and expand the learning opportunities that it offers to
the ethnically diverse community of the City of Cupertino. The Society continues to build partnerships with the local
school districts to ensure that the history of Cupertino is offered as part of the educational curriculum. The Society is
located at the Quinlan Community Center, 10185 N. Stelling Road. Telephone: 408-973-1495.
Farmers’ Market
Residents and visitors can visit the farmers’ market every
Friday from 9:00 a.m. to 1:00 p.m. at the Vallco Shopping
Center parking lot near Sears.
California History Center
The California History Center and Foundation is located on the DeAnza College campus. The center has published 37
volumes on California history and has a changing exhibit program. The center’s Stocklmeir Library Archives boasts a
large collection of books, a pamphlet file, oral history tapes, videotapes and a couple thousand student research papers.
The library’s collection is for reference only. Heritage events focusing on California’s cultural or natural history are
offered by the center each quarter. For more information, call 408-864-8987. The center is open September through June
9:30 a.m. to noon and 1:00 p.m. to 4:00 p.m. Tuesday through Thursday.
171
NOTES
172
CITY OF CUPERTINO
REDEVELOPMENT AGENCY
Independent Auditor’s Reports,
Management’s Discussion and Analysis, and
Basic Financial Statements
For The Fiscal Year Ended June 30, 2010
173
CITY OF CUPETINO
REDEVELOPMENT AGENCY
For The Fiscal Year Ended June 30, 2010
Table of Contents
Page(s)
Independent Auditor’s Report ................................................................................................................ 1-2
Management’s Discussion and Analysis (Unaudited) ........................................................................... 3-6
Basic Financial Statements:
Statement of Net Assets and Governmental Funds Balance Sheet ....................................................... 7
Statement of Activities and Governmental Funds Statement of
Revenues, Expenditures and Changes in Fund Balances ................................................................... 8
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual:
Vallco Redevelopment Special Revenue Fund ............................................................................. 9
Low and Moderate Income Housing Special Revenue Fund ..................................................... 10
Notes to the Basic Financial Statements ........................................................................................ 11-15
Independent Auditor’s Report on Internal Control Over Financial Reporting and on
Compliance (Including the Provisions Contained in the Guidelines for Compliance
Audits of Redevelopment Agencies) and Other Matters Based on an Audit of
Financial Statements Performed in Accordance with Government Auditing Standards ................. 16-17
174
Members of the Governing Board of
The City of Cupertino Redevelopment Agency
Cupertino, California
Independent Auditor’s Report
We have audited the accompanying financial statements of the governmental activities and each major
fund of the City of Cupertino Redevelopment Agency (the Agency), a component unit of the City of
Cupertino (the City), California, as of and for the year ended June 30, 2010, which collectively comprise
the Agency’s basic financial statements as listed in the table of contents. These financial statements are
the responsibility of the Agency’s management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with the auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the City’s internal control over financial reporting related to the
Agency. Accordingly, we express no such opinion. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities and each major fund of the of the Agency as of
June 30, 2010, and the respective changes in financial position thereof, and the respective budgetary
comparison for the Cupertino Square Redevelopment Special Revenue Fund and Low and Moderate
Income Housing Special Revenue Fund for the year then ended in conformity with accounting principles
generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated
November 17, 2010, on our consideration of the City’s internal control over financial reporting related to
the Agency and on our tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements and other matters for the year ended June 30, 2010. The purpose of that report is 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 internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards and should be considered in assessing the results of our audit.
The management’s discussion and analysis as listed in the table of contents are not a required part of the
basic financial statements but are supplementary information required by accounting principles generally
175
accepted in the United States of America. We have applied certain limited procedures, which consisted
principally of inquiries of management regarding the methods of measurement and presentation of the
required supplementary information. However, we did not audit the information and express no opinion
on it.
Certified Public Accountants
Walnut Creek, California
November 17, 2010
176
CITY OF CUPERTINO
REDEVELOPMENT AGENCY
Management’s Discussion and Analysis (Unaudited)
This discusses the City of Cupertino Redevelopment Agency’s (Agency) financial performance. Please
read this document in conjunction with the accompanying Agency’s Basic Financial Statements.
As a component unit of the City of Cupertino (City), the Agency’s purpose is to eliminate blight in the
Vallco Redevelopment Project Area (Project Area), while ensuring an adequate stock of low and
moderate income housing in the City. The Project Area encompasses the Vallco (formerly Cupertino
Square) Shopping Mall and the “Rose Bowl” site south of the mall. The Agency can issue debt payable
out of the property tax growth expected to result from the redevelopment of the Project Area. The
Agency may enter into development agreements with developers and others to further its purposes.
Twenty-five percent of the incremental property taxes generated are earmarked for low and moderate
income housing.
2009-10 FINANCIAL HIGHLIGHTS
The Agency’s total net assets and fund balances stood at $1,465,687 as of June 30, 2010, an
improvement from the $753,335 of the prior year.
Total revenues of $1,329,358 were 9% over the $1,215,516 results of last year.
Agency-wide expenses of $617,006 exceeded last year’s $394,810 expenses by 56%.
OVERVIEW OF THE BASIC COMPONENT UNIT FINANCIAL STATEMENTS
This report is in two parts:
1)Management’s Discussion and Analysis, and
2)The Basic Financial Statements along with the notes to the statements.
The Basic Financial Statements
The Basic Financial Statements comprise the Agency-wide and Fund perspectives. These two
perspectives provide different views of the Agency’s financial activities and financial position—long-
term and short-term.
Agency-wide Financial Statements
The Agency-wide Financial Statements provide a long-term view of the Agency’s activities as a whole,
and comprise the Statement of Net Assets and the Statement of Activities. The Statement of Net Assets
provides information about the financial position of the Agency, including all its capital assets and long-
term liabilities on the full accrual basis, similar to that used by private enterprises. The Statement of
Activities provides information about all the Agency’s revenues and all its expenses, also on the full
accrual basis, with the emphasis on measuring net revenues or expenses of each of the Agency’s
programs. The Statement of Activities explains in detail the change in Net Assets for the year.
All of the Agency’s services are considered to be governmental activities, consisting of community
development services. General Agency revenues such as incremental property tax increments support
these services.
177
CITY OF CUPERTINO
REDEVELOPMENT AGENCY
Management’s Discussion and Analysis (Unaudited)
Fund Financial Statements
The Fund Financial Statements report the Agency’s operations in more detail than the Agency-wide
statements and focus on the short-term activities of the Agency’s major funds. The Fund Financial
Statements are on the modified accrual basis, which means they measure only current financial resources
and uses such as current revenues and expenditures, current assets, current liabilities and fund balances.
They exclude capital and other long-lived assets, long-term debt and other long-term liabilities.
The Agency’s Vallco Redevelopment Fund and the Low and Moderate Income Housing Fund are both
considered major funds. The funds are discussed further in the Analysis of Major Funds section.
Comparisons of budget and actual information are also presented as part of the Basic Financial
Statements.
FINANCIAL ACTIVITIES OF THE AGENCY AS A WHOLE
This analysis focuses on the net assets and changes in net assets of the Agency as a whole, as presented in
the Agency-wide Statement of Net Assets and Statement of Activities.
Governmental Activities
Table 1 shows that the Agency nearly doubled its net assets from $753,335 to $1,465,687. The residual
effect of the 2007 sale of two parcels in the Project Area and subsequent tax reassessment helped
incremental property tax revenues increase from $1,211,128 in 2008-09 to $1,322,925 in 2009-10.
Much of the tax increment growth went toward improving the cash position of the Agency. The Vallco
Redevelopment Fund’s cash balance grew from $252,180 to $628,166. Cash in the Low and Moderate
Housing Fund rose from $507,037 at the end of last year to $842,707 this year.
Table 1
Governmental Net Assets at June 30
2010 2009
Cash and investments $ 1,470,873 $ 759,217
Total assets 1,470,873759,217
Accrued payroll and benefits 5,1865,882
Total liabilities 5,1865,882
Net assets:
Restricted for low and moderate income housing redevelopment projects 842,707546,569
Unrestricted 622,980206,766
Total net assets $ 1,465,687$ 753,335
178
CITY OF CUPERTINO
REDEVELOPMENT AGENCY
Management’s Discussion and Analysis (Unaudited)
As shown in Table 2, the Agency has experienced increases in net assets in the past two years because
property assessed valuation growth has caused incremental property tax revenues to exceed
redevelopment and planning costs. If development of the Project Area continues, the additional tax
revenues will allow the Agency to issue bonds and provide capital for economic improvement.
Table 2
Governmental Activities
Change in Governmental Net Assets
2009-10 2008-09
Expenses
Community development $ 617,006 $ 394,810
Total expenses 617,006 394,810
Revenues
General revenues:
Taxes:
Incremental property tax 1,322,925 1,211,128
Investment income 6,433 4,388
Total general revenues 1,329,358 1,215,516
Total revenues 1,329,358 1,215,516
Increase in net assets $ 712,352 $ 820,706
THE AGENCY’S FUND FINANCIAL STATEMENTS
The activities and balances at the total governmental funds level mirror the Agency-wide results.
Analyses of Major Funds
Vallco Redevelopment Fund
This fund accounts for incremental property tax revenue allocated to the Vallco Redevelopment Project
Area that was established in August 2000. It serves as the general fund for the Project Area, with
expenditures for the ongoing management and oversight of overall project area activities. The fund’s
name comes from the Vallco Shopping Mall that comprises most of the Project Area.
Excluding the 25% that is set-aside for low and moderate income housing purposes, current year tax
increment revenues rose 9% to $992,194 compared to the $908,346 received in the prior year, reflecting
continuing tax growth resulting from the 2007 sale of the Rose Bowl site to KCR Development and the
Wolfe Road/Vallco Parkway retail site to Vallco International Shopping Center (Orbit Resources). The
new growth estimates caused the $520,000 original tax budget to increase to $974,000.
Expenditures rose 56% over last year, ending up at $617,006 for 2009-10. The statutorily required pass-
through of taxes to special districts, schools, and the County of Santa Clara grew to $356,153 compared
to $160,545 last year. This pass-through is paid as a percentage of Project Area taxes. The State also took
away $62,723 in Agency property taxes this year and will take $12,901 next year because of the State’s
budget deficits.
Because tax revenues exceeded community development expenditures, the Project Area’s redevelopment
fund balance increased by $376,682.
179
CITY OF CUPERTINO
REDEVELOPMENT AGENCY
Management’s Discussion and Analysis (Unaudited)
Low and Moderate Income Housing Fund
Due to a 2002 legal settlement, the Agency sets aside 25% of the tax increment revenue for future low
and moderate income housing projects sponsored by the Agency. This is higher than the state mandated
20% minimum.
In fiscal 2009-10, the Agency’s property taxes receipts for low and moderate income housing purposes
totaled $330,731 compared to $302,782 for the prior fiscal year, which is proportional to the growth in
overall taxes. In order to accumulate capital for future purposes, housing funds were not spent this year.
The housing fund balance grew from $507,037 to $842,707.
ECONOMIC OUTLOOK AND MAJOR INITIATIVES
Facing difficulties in making payments to their lender, Gramercy Capital, mall owners Cupertino
Square LLC and Orbit Resources filed bankruptcy in September 2008. In May 2009, Gramercy Capital
foreclosed on the owners and subsequently sold the mall to Son Son Company in October 2009. Property
tax assessment appeals are pending with the County of Santa Clara. The other owner, KCR Development,
who are not in bankruptcy, started building a mixed-use condominium/retail development in the Rose
Bowl section of the Project Area in order to vest their rights in a development agreement with the
Agency, but will delay completion of the project until economic conditions improve. Cupertino Square
was recently renamed Vallco Shopping Mall and while the 16-screen AMC theatres, some restaurants,
and local farmers market at the mall generates positive regional business, the resulting customer traffic
does not migrate to the mall retail stores. Business improvement plans from the mall owners are to be
determined.
CONTACTING THE AGENCY’S FINANCIAL MANAGEMENT
This report is intended to provide a general overview of the Agency’s finances. Further information can
be obtained from the City of Cupertino’s Finance Department, 10300 Torre Avenue, Cupertino, CA
95014-3202, phone (408) 777-3220, or by visiting the City’s website at www.cupertino.org.
180
CITY OF CUPERTINO REDEVELOPMENT AGENCY
Statement of Net Assets and
Governmental Funds Balance Sheet
June 30, 2010
Low and
ModerateTotal
VallcoIncomeGovernmentalStatement of
RedevelopmentHousing FundsAdjustmentsNet Assets
Assets:
Cash and investments$ 6 28,166$ 8 42,707$ 1,470,873$ - $ 1,470,873
Total assets$ 628,166$ 842,707$ -1,470,873 1,470,873
Liabilities:
Accrued payroll and benefits$ 5,186$ - $ 5,186 - 5,186
Total liabilities 5,186 - 5,186 - 5,186
Fund balances/net assets:
Fund balances:
Reserved for low and moderate
income housing - 842,707 842,707(842,707) -
Unreserved, undesignated 622,980 - 622,980(622,980) -
Total fund balances 622,980 842,707 1,465,687(1,465,687) -
Total liabilities and fund balances$ 628,166$ 842,707$ 1,470,873
Net assets:
Restricted for:
Low and moderate income housing
redevelopment projects 842,707 842,707
Unrestricted 622,980 622,980
Total net assets$ 1,465,687$ 1,465,687
See accompanying notes to financial statements.
181
CITY OF CUPERTINO REDEVELOPMENT AGENCY
Statement of Activities and
Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances
For the Fiscal Year Ended June 30, 2010
Low and
ModerateTotal
VallcoIncomeGovernmentalStatement of
RedevelopmentHousing FundsAdjustmentsActivities
Expenditures/expenses:
Community development:
Salaries and benefits$ 181,466$ -$ 181,466$ -$ 181,466
Professional and legal costs 16,664 - 16,664 - 16,664
Pass-through expenditures 356,153 - 356,153 - 356,153
Payment to Supplemental Educational
Revenue Augmentation Fund 62,723 - 62,723 - 62,723
Total expenditures/expenses 617,006 - 617,006 - 617,006
General revenues:
Incremental property taxes 992,194 330,731 1,322,925 - 1,322,925
Use of money and property 1,494 4,939 6,433 - 6,433
Total general revenues 993,688 335,670 1,329,358 - 1,329,358
Change in fund balances/net assets 376,682 335,670 712,352 - 712,352
Fund balances/net assets,
Beginning of year 246,298 507,037 753,335 - 753,335
End of year$ 622,980$ 842,707$-1,465,687$ $1,465,687
See accompanying notes to financial statements.
182
CITY OF CUPERTINO REDEVELOPMENT AGENCY
Vallco Redevelopment Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended June 30, 2010
Variance with
Budgeted AmountsFinal Budget
ActualPositive
OriginalFinalAmounts(Negative)
Revenues:
Incremental property taxes$ 520,000$ 974,000$ 992,194$ 18,194
Use of money and property - - 1,494 -
Total revenues 520,000 974,000 993,688 18,194
Expenditures:
Community development:
Salaries and benefits 172,208 181,466 181,466 -
Professional and legal costs 51,300 81,421 16,664 64,757
Pass-through expenditures 122,000 356,153 356,153 -
Payment to Supplemental Educational
Revenue Augmentation Fund - 63,000 62,723 277
Total expenditures 345,508 682,040 617,006 65,034
Net change in fund balances$ 174,492$ 291,960376,682$ 83,228
Fund balance, beginning of year 246,298
Fund balance, end of year$ 622,980
See accompanying notes to financial statements.
183
CITY OF CUPERTINO REDEVELOPMENT AGENCY
Low and Moderate Income Housing Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended June 30, 2010
Variance with
Budgeted AmountsFinal Budget
ActualPositive
OriginalFinalAmounts(Negative)
Revenues:
Incremental property taxes$ 130,000$ 282,000$ 330,731$ 48,731
Use of money and property 20,000 20,000 4,939(15,061)
Total revenues 150,000 302,000 335,670 33,670
Net change in fund balances$ 150,000$ 302,000335,670$ 33,670
Fund balances beginning of year 507,037
Fund balances end of year$ 842,707
See accompanying notes to financial statements.
184
CITY OF CUPERTINO
REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2010
NOTE 1 – Summary of Significant Accounting Policies
(a) Financial Reporting Entity
The City of Cupertino Redevelopment Agency (Agency) was created under the provisions of the
California Health and Safety Code for the purpose of conducting economic development and
redevelopment activities, and rehabilitating property considered to be in a blighted condition. On
August 21, 2000, the City Council enacted and passed Ordinance 1850, establishing the
Redevelopment Plan for the Cupertino Vallco Redevelopment Project Area (Project Area). The
Project Area encompasses the Vallco (formerly named Cupertino Square) Shopping Mall and the
“Rose Bowl” site.
The Agency is a separate legal entity governed by the City Council sitting in a separate capacity
as the Redevelopment Agency Board (Board). City staff performs all administrative, accounting,
management, and budgeting functions. Since the City exercises significant control over the
Agency’s operations, the Agency is considered a blended component unit of the City and is
included in the City’s basic financial statements.
(b) Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements (i.e., the statement of net assets and the statement of
activities) report information on the Agency’s activities. For the most part, the effect of interfund
activity has been removed from these statements. The Agency is only engaged in governmental
activities, which normally are supported by taxes and intergovernmental revenues.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include (1) charges to
customers or applicants who purchase, use or directly benefit from goods, services or privileges
provided by a given function or segment and (2) grants and contributions that are restricted to
meeting the operational or capital requirements of a particular function or segment. The Agency
did not have program revenues for the year ended June 30, 2010. Taxes and other items not
included among program revenues are reported instead as general revenues.
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of cash flows.
Property taxes are recognized as revenues in the year for which they are levied. Grants and
similar items are recognized as revenue as soon as all eligibility requirements have been met.
185
CITY OF CUPERTINO
REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2010
NOTE 1 – Summary of Significant Accounting Policies (Continued)
(b) Measurement Focus, Basis of Accounting and Financial Statement Presentation
(Continued)
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available if they
are collected within 60 days of the end of the current fiscal year. Expenditures generally are
recorded when a liability is incurred, as under accrual accounting. However, debt service
expenditures are recorded only when payment is due.
Property taxes and interest associated with the current fiscal period are all considered being
susceptible to accrual and so have been recognized as revenues of the current fiscal period. All
other revenue items are considered to be measurable and available only when the Agency
receives cash.
The Agency may fund programs with a combination of cost-reimbursement grants, categorical
block grants, and general revenues. Thus, both restricted and unrestricted net assets may be
available to finance program expenditures. The Agency’s policy is to first apply restricted grant
resources to such programs, followed by general revenues if necessary.
The Agency reports the following two major governmental funds:
TheVallco Redevelopment Special Revenue Fund is used to account for resources and
expenditures related to the development of the Project Area.
TheLow and Moderate Income Housing Special Revenue Fund is used to account for 25%
portion of the Agency’s tax increment revenues and other sources that are required to be set-
aside for low and moderate income housing and related expenditures.
(c)Budgetary Practices
The Agency follows the budgetary process of the City. Annually, the Board adopts a budget
effective July 1 for the ensuing fiscal year. From the effective date of the budget, the amounts
stated therein as proposed expenditures become appropriations. The Board may amend the
budget by resolution during the fiscal year. Encumbrance accounting is employed as an
extension of the budgetary process. Under encumbrance accounting, purchase orders, contracts,
and other commitments for expenditures are recorded in order to reserve that portion of the
applicable appropriation. Encumbrances outstanding at year-end are recorded as reservations of
fund balance because they do not constitute expenditures or liabilities, and are automatically
reappropirated to the following year. Unencumbered and unexpended appropriations lapse at
year end. Additional disclosures and information regarding the City’s budgetary practices is
presented in the notes to the City’s basic financial statements.
186
CITY OF CUPERTINO
REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2010
NOTE 1 – Summary of Significant Accounting Policies (Continued)
(d) Cash and Investments
The Agency’s cash and investments are pooled with the City’s cash and investment pool. The
City’s investment policy authorizes the City to invest in the State of California Local Agency
Investment Fund, federal agencies securities, U.S. treasury notes and bills, securities of the U.S.
and other government issues, bankers’ acceptances, commercial paper, negotiable and non-
negotiable certificates of deposit, repurchase agreements, medium-term corporate notes, and
money market mutual funds as permitted by City’s investment policy. Investments are stated at
fair value. The fair value of investments is determined annually and is based on current market
prices. Investment income earned by the cash and investment pool is allocated monthly among
the funds based upon the ending monthly balance of cash maintained by each fund.
(e) Property Tax Increment Revenues
Incremental property tax revenues represent taxes collected on the project area from the excess of
taxes levied and collected over that amount which was levied and collected in the base year (the
year of the project area inception) property tax assessment.
The County of Santa Clara (County) assesses properties and bills for and collects property taxes
as follows:
SecuredUnsecured
Valuation/lien datesJanuary 1January 1
Levy datesOn or before November 1July 1
Due dates (delinquent after)50% on November 1 (December 10)July 1 (August 31)
50% on February 1 (April 10)
The term “unsecured” refers to taxes on personal property other than land and buildings. Secured
taxes are secured by liens on the property being taxed. The County bills and collects property
taxes and remits to the Agency its share of the amount levied less administrative fees.
(f) Net Assets
The government-wide financial statements utilize a net assets presentation. Net assets are
categorized as restricted and unrestricted.
Restricted Net Assets – This category presents external restrictions imposed by creditors, grantors,
contributors or laws or regulations of other governments and restrictions imposed by law through
constitutional provisions or enabling legislation.
Unrestricted Net Assets – This category represents net assets of the Agency, not restricted for any
project or other purpose.
187
CITY OF CUPERTINO
REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2010
NOTE 1 – Summary of Significant Accounting Policies (Continued)
(g) Estimates
The preparation of basic financial statements in conformity with accounting principles generally
accepted in United States of America requires management to make estimates and assumptions
that affect certain reported amounts and disclosures. Accordingly, actual results could differ from
those estimates.
NOTE 2 – Cash and Investments
Investments in City’s Cash and Investment Pool
The City’s pooled investment account possesses the characteristics of a demand deposit account,
and consists of investments in the State of California Local Agency Investment Fund, federal
agencies securities, U.S. treasury notes and bills, money market funds as permitted by City’s
investment policy, and non-negotiable certificates of deposit. At June 30, 2010, the Agency
invested $1,470,873 in the City’s cash and investment pool.
As a means of limiting its exposure to fair value losses arising from rising interest rates, the
City’s investment policy limits investments in any security to a maximum remaining maturity of
five years at the time of purchase. At June 30, 2010, the City’s cash and investment pool has a
weighted average to maturity of 194 days and is unrated. Additional information regarding
custodial credit risk, interest rate risk and concentration of credit risk of the City’s pooled cash
and investments is presented in the City’s basic financial statements.
NOTE 3 – Risk Management
The Agency is exposed to various risks of loss related to torts, theft of, damage and destruction of
assets, errors and omissions, and natural disasters. The Agency, as a component unit of the City,
was covered with respect to certain risks from the City’s commercial insurance policies.
Additional disclosures and information regarding the City’s insurance is presented in the notes to
the City’s basic financial statements.
NOTE 4 - Commitments and Contingencies
Low and Moderate Income Housing Fund
Under California Redevelopment Law (Health and Safety Code Section 33334.3), redevelopment
agencies are required to deposit a minimum of twenty percent of incremental property taxes
received into a distinct fund to set-aside funds for low and moderate income housing and related
expenditures. On January 22, 2002, the Agency settled a lawsuit challenging the formation of the
Project Area. Pursuant to the settlement, the Agency is required to set aside twenty-five percent
of incremental property taxes for low and moderate income housing activities. For the fiscal year
ended June 30, 2010, the Agency received $1,322,925 in incremental property taxes, of which
twenty-five percent, or $330,731, was deposited into the Agency’s Low and Moderate Income
Housing Special Revenue Fund.
188
CITY OF CUPERTINO
REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2010
NOTE 4 - Commitments and Contingencies (Continued)
Pass-Through Payments
Under the California Redevelopment Law (Health and Safety code Section 33607.5), the Agency
is obligated to pass-through twenty percent of the gross tax increment received from the Project
Area to jurisdictions within the Project Area. In addition, the Agency is obligated to pass-through
an additional amount of tax increment as basic aid payments pursuant to California
Redevelopment Law (Health and Safety code Section 33676). For the fiscal year ended
June 30, 2010, the Agency recorded $356,153 in pass-through and basic aid payments to the
affected jurisdictions.
Payment to Supplemental Educational Revenue Augmentation Funds (SERAF)
On July 24, 2009, the State Legislature passed Assembly Bill (AB) 26 4x, which requires
redevelopment agencies statewide to deposit a total of $2.05 billion of property tax increment in
county Supplemental Educational Revenue Augmentation Funds (SERAF) to be distributed to
meet the State’s Proposition 98 obligations to schools. The SERAF revenue shift of $2.05 billion
will be made over two years, $1.7 billion in fiscal year 2009-2010 and $350 million in fiscal year
2010-2011. The SERAF would then be paid to school districts and the county offices of education
which have students residing in redevelopment project areas, or residing in affordable housing
projects financially assisted by a redevelopment agency, thereby relieving the State of payments
to those schools. The Agency’s share of this revenue shift is $62,723 in fiscal year 2009-2010 and
$12,901 in fiscal year 2010-2011. Payments are to be made by May 10 of each respective fiscal
year. Accordingly, the first payment was made on May 10, 2010 to the County and the next
payment will be made on May 10, 2011.
189
Members of the Governing Board of
The City of Cupertino Redevelopment Agency
Cupertino, California
Independent Auditor’s Report on Internal Control Over Financial Reporting and on
Compliance (Including the Provisions Contained in the Guidelines for Compliance
Audits of Redevelopment Agencies) and Other Matters Based on an Audit of
Financial Statements Performed in Accordance with Government Auditing Standards
We have audited the financial statements of the governmental activities and each major fund of the City
of Cupertino Redevelopment Agency (Agency), a component unit of the City of Cupertino, California, as
of and for the year ended June 30, 2010, which collectively comprise the Agency’s basic financial
statements, and have issued our report thereon dated November 17, 2010. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City’s internal control over financial reporting
related to the Agency as a basis for designing our auditing procedures for the purpose of expressing our
opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness
of the City’s internal control over financial reporting related to the Agency. Accordingly, we do not
express an opinion on the effectiveness of the City’s internal control over financial reporting related to the
Agency.
Adeficiency in internal control 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 misstatements on a timely basis. A material weakness is a deficiency, or combination of
deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of
the Agency’s financial statements will not be prevented, or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and would not necessarily identify all deficiencies in internal control over
financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not
identify any deficiencies in internal control over financial reporting that we consider to be material
weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Agency’s financial statements are free of
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
determination of financial statement amounts. Such provisions include those provisions of laws and
regulations identified in the Guidelines for Compliance Audits of California Redevelopment Agencies
issued by the State Controller’s Office and as interpreted in the Suggested Auditing Procedures for
Accomplishing Compliance Audits of California Redevelopment Agencies, issued by the Governmental
190
Accounting and Auditing Committee of the California Society of Certified Public Accountants. 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.
This report is intended solely for the information and use of the Agency’s Board of Directors and the City
of Cupertino and is not intended to be and should not be used by anyone other than these specified parties.
This report is intended solely for the information and use of the Governing Board of the Agency,
management, pass-through entities, and the State Controller’s Office and is not intended to be and should
not be used by anyone other than these specified parties.
Certified Public Accountants
Walnut Creek, California
November 17, 2010
191
CITY OF CUPERTINO, CALIFORNIA
Pedestrian/Bicycle Facilities Grant
Metropolitan Transportation Commission
Transportation Development Act Funds, Article III
Independent Auditor’s Reports,
Financial Statements and
Supplementary Information
For the Year Ended June 30, 2010
192
CITY OF CUPERTINO, CALIFORIA
Pedestrian/Bicycle Facilities Grant
Metropolitan Transportation Commission
Transportation Development Act Funds, Article III
For the Year Ended June 30, 2010
Table of Contents
Page
Financial Section
Independent Auditor’s Report .................................................................................................................. 1 - 2
Balance Sheet ................................................................................................................................................ 3
Statement of Revenues, Expenditures, and Changes in Fund Balance ......................................................... 4
Notes to Financial Statements ....................................................................................................................... 5
Supplementary Information
Schedule of Construction Projects with Capital Outlay Expenditures .......................................................... 6
Internal Control and Compliance Section
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 and the Transportation Development Act.......................................... 7 - 8
193
City Council
City of Cupertino, California
Independent Auditor’s Report
We have audited the accompanying balance sheet of the Pedestrian/Bicycle Facilities Grant (Grant) made
to the City of Cupertino, California (the City), by the Metropolitan Transportation Commission,
Transportation Development Act Funds, Article III as of June 30, 2010, and the related statement of
revenues, expenditures, and changes in fund balance for the year then ended. These financial statements
are the responsibility of the City’s management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the City's internal control over the Grant’s financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in Note 1, the financial statements present only the activities of the Grant and do not purport
to, and do not, present fairly the financial position of the City as of June 30, 2010, and changes in its
financial position for the fiscal year then ended in conformity with accounting principles generally
accepted in the United States of America.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the Grant made to the City by the Metropolitan Transportation Commission,
Transportation Development Act Funds, Article III as of June 30, 2010, and the changes in financial
position thereof for the year then ended in conformity with accounting principles generally accepted in
the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated
November 17, 2010 on our consideration of the City’s internal control over the Grant’s financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over the Grant’s financial reporting and compliance and the results of that testing, and not
to provide an opinion on the internal control over the Grant’s financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing Standards and
should be considered in assessing the results of our audit.
194
Our audit was conducted for the purpose of forming an opinion on the Grant’s basic financial statements.
The supplementary information listed in the table of contents is presented for purposes of additional
analysis and is not a required part of the basic financial statements. Such information has been subjected
to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is
fairly stated in all material respects in relation to the basic financial statements taken as a whole.
This report is intended solely for the information and use of the Metropolitan Transportation Commission,
the City Council and City management and is not intended to be and should not be used by anyone other
than these specified parties.
Certified Public Accountants
Walnut Creek, California
November 17, 2010
195
CITY OF CUPERTINO, CALIFORNIA
Pedestrian/Bicycle Facilities Grant
Metropolitan Transportation Commission
Transportation Development Act Funds, Article III
Balance Sheet
June 30, 2010
Assets
Due from Metropolitan Transportation Commission147,022$
Liabilities and Fund Balance
Liabilities
Due to the City of Cupertino147,022$
Fund balance-
Total liabilities and fund balance147,022$
See accompanying notes to the financial statements.
196
CITY OF CUPERTINO, CALIFORNIA
Pedestrian/Bicycle Facilities Grant
Metropolitan Transportation Commission
Transportation Development Act Funds, Article III
Statement of Revenues, Expenditures, and Changes in Fund Balance
For the Year Ended June 30, 2010
Revenues
Grant$147,022
Expenditures
Capital outlay147,022
Excess of revenues over expenditures-
Fund balance - beginning-
Fund balance - ending-$
See accompanying notes to the financial statements.
197
CITY OF CUPERTINO, CALIFORIA
Pedestrian/Bicycle Facilities Grant
Metropolitan Transportation Commission
Transportation Development Act Funds, Article III
Notes to Financial Statements
For the Year Ended June 30, 2010
NOTE 1 – DESCRIPTION OF REPORTING ENTITY
The accompanying financial statements are prepared from the accounts and financial transactions
of the City of Cupertino (City) for Pedestrian/Bicycle Facilities Grant projects funded under the
Transportation Development Act of 1971 (TDA) Article III of the State of California, which
include the construction of pedestrian and bicycle paths. The financial statements do not purport
to present the financial position or changes in financial position of the City. The projects
represent a portion of the activities of the City and, as such, are included in the City’s basic
financial statements.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a)Basis of Presentation
The projects are accounted for as part of the Mary Avenue Bicycle Footbridge Capital
Project Fund of the City, which is a governmental fund and is included in the City’s basic
financial statements.
(b)Basis of Accounting
The accompanying financial statements have been prepared on the modified accrual basis
of accounting. Under the modified accrual basis of accounting, expenditures are recorded
when the related governmental fund liabilities are incurred. Grant revenues, which are
received as reimbursement for specific purposes or projects, are recognized when they
become measurable and available (received within 60 days after year-end.)
(c)Due to the City of Cupertino
Cash has been advanced to the Pedestrian/Bicycle Facilities Grant projects for
expenditures paid by the City’s capital projects fund for the benefit of the TDA Article III
projects. The projects are obligated to immediately repay these advances upon
reimbursement.
(d)Use of Estimates
The preparation of financial statements requires management to make estimates and
assumptions that affect certain reported amounts and disclosures. Actual results could
differ from those estimates.
NOTE 3 – SECTION 99301 – INTEREST EARNED ON ALLOCATED FUNDS
The City incurred and paid expenditures prior to the receipt of grant reimbursements; as a result,
no interest was earned on grant funds.
198
CITY OF CUPERTINO, CALIFORNIA
Pedestrian/Bicycle Facilities Grant
Metropolitan Transportation Commission
Transportation Development Act Funds, Article III
Schedule of Construction Projects with Capital Outlay Expenditures
For the Year Ended June 30, 2010
Current Year
ProjectCapital Outlay Status of
Title of ProjectNumber Total Awards ExpendituresProject
TDA 07-08 Mary Avenue Bicycle Footbridge08001076$ 31,982$ Completed31,982
TDA 08-09 Mary Avenue Bike and Pedestrian Footbridge09001059 115,040 115,040Completed
$ 147,022$ 147,022
199
City Council
City of Cupertino, California
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 and the Transportation Development Act
We have audited the accompanying balance sheet of the Pedestrian/Bicycle Facilities Grant (Grant) made
to the City of Cupertino, California (the City), by the Metropolitan Transportation Commission,
Transportation Development Act Funds, Article III as of June 30, 2010, and the related statement of
revenues, expenditures, and changes in fund balance of the year then ended, and have issued our report
thereon dated November 17, 2010. We conducted our audit in accordance with auditing standards
generally accepted in the United States of America and the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City’s internal control over the Grant’s financial
reporting 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 over the Grant’s financial reporting. Accordingly, we do not express an opinion on
the effectiveness of the City’s internal control over the Grant’s financial reporting.
Adeficiency in internal control 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 misstatements on a timely basis. A material weakness is a deficiency, or combination of
deficiencies in internal control such that there is a reasonable possibility that a material misstatement of
the Grant’s financial statements will not be prevented, or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and would not necessarily identify all deficiencies in internal control over
financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not
identify any deficiencies in internal control over financial reporting that we consider to be material
weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Grant’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, including the applicable statutes, rules and regulations of the
Transportation Development Act, including Section 6666 of Title 21, of the California Code of
Regulations, and the allocation instructions and resolutions of the Metropolitan Transportation
Commission, noncompliance with which could have a direct and material effect on the determination of
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financial statement amounts. 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 or the Transportation Development Act.
This report is intended solely for the information and use of the Metropolitan Transportation Commission,
the City Council, City management and is not intended to be and should not be used by anyone other than
these specified parties.
Certified Public Accountants
Walnut Creek, California
November 17, 2010
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CITY OF CUPERTINO
Report to the City Council
Fiscal Year Ended June 30, 2010
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CITY OF CUPERTINO
Report to the City Council
Fiscal Year Ended June 30, 2010
Table of Contents
Page(s)
Transmittal Letter ....................................................................................................................................... i
Required Communications ........................................................................................................................ 1
Schedule of Comments and Responses ...................................................................................................... 3
Schedule of Uncorrected Adjustments .................................................................................................... 13
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City Council
City of Cupertino, California
In planning and performing our audit of the financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the City of
Cupertino (City) as of and for the year ended June 30, 2010, in accordance with auditing standards
generally accepted in the United States of America, 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 opinions 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 such deficiencies have been
identified. However, as discussed below, we identified certain deficiencies in internal control that we
consider to be significant deficiencies.
A deficiency in internal control 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. A material weakness is a deficiency, or combination of
deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of
the City’s financial statements will not be prevented, or detected and corrected on a timely basis. We did
not identify any deficiencies in internal control that we consider to be material weaknesses.
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance. We consider Item #2010-1 in the City’s internal control to be a significant deficiency. In
addition, we noted other matters involving internal controls and its operations that we have reported to
management as described in the Schedule of Comments and Responses.
The City’s written responses to the comments identified in our audit are described in the Schedule of
Comments and Responses. We did not audit the City’s responses and, accordingly, we express no opinion
on them. In addition, we have already discussed our comments and recommendations with the City’s
management, and we would be pleased to discuss them in further detail at your convenience, to perform
any additional study of these matters, or to assist you in implementing these recommendations.
Additionally, we have included in this letter a report on communications to the City Council, as required
by auditing standards generally accepted in the United States of America.
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i
This communication is intended solely for the information and use of management, the City Council, and
others within the organization, and is not intended to be and should not be used by anyone other than
these specified parties.
Certified Public Accountants
Walnut Creek, California
November 17, 2010
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ii
CITY OF CUPERTINO
Report to the City Council
Fiscal Year Ended June 30, 2010
REQUIRED COMMUNICATIONS
We have audited the financial statements of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of the City of Cupertino (City) for the year ended June 30,
2010 and have issued our report thereon dated November 17, 2010. Professional standards require that we
provide you with information about our responsibilities under generally accepted auditing standards and,
Government Auditing Standards and Office of Management and Budget (OMB) Circular A-133, as well as
certain information related to the planned scope and timing of our audit. We have communicated such
information in our audit plan to you dated June 14, 2010. Professional standards also require that we
communicate to you the following information related to our audit.
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the City are described in Note 1 to the City’s basic financial statements. As
described in Note 1(n) to the basic financial statements, the City adopted the provisions of Governmental
Accounting Standards Board (GASB) Statement No. 51, Accounting and Financial Reporting for Intangible
Assets, effective July 1, 2009. The statement requires that all intangible assets not specifically excluded by its
scope provisions be classified as capital assets and provides authoritative guidance that specifically addresses
the nature of these intangible assets. Intangible assets are disclosed as part of Note 6 to the basic financial
statements.
We noted no transactions entered into by the City during the year for which there is a lack of authoritative
guidance or consensus. There are no significant transactions that have been recognized in the financial
statements in a different period than when they occurred except for the restatement of net assets described in
Notes 1(n) and 6 to record easements received in prior years in the amount of $16,962,925 as of July 1, 2009.
Accounting estimates are an integral part of the financial statements prepared by management and are based on
management’s knowledge and experience about past and current events and assumptions about future events.
Certain accounting estimates are particularly sensitive because of their significance to the financial statements
and because of the possibility that future events affecting them may differ significantly from those expected.
The most sensitive estimates affecting the financial statements were:
Fair value of investments. The City’s investments are generally carried at fair value, which is defined as the
amount that the City could reasonably expect to receive for an investment in a current sale between a willing
buyer and a willing seller and is generally measured by quoted market prices.
Estimated valuation allowance for loans receivable. The valuation allowance on loans receivable was based
on management’s estimate regarding the likelihood of collectability.
Valuation for easements. The valuation was based on the City’s public records on the individual easement
received and its estimated impact based on industry publications.
Useful life estimates for capital assets. The estimated useful lives of capital assets were based on
management’s estimate of the economic life of the assets.
Valuation of the net other postemployment benefits asset. The net other postemployment benefits asset is
the amount that exceeded the City’s actuarially determined annual required contribution, which is based
upon certain approved actuarial assumptions.
Annual required contributions to pension and other postemployment benefit plans. The City is required to
contribute to its pension and other postemployment benefit plans based upon certain approved actuarial
assumptions.
Workers’ compensation liability. This liabilitywasbased on actuarial evaluations using historical losses
and other data.
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CITY OF CUPERTINO
Report to the City Council
Fiscal Year Ended June 30, 2010
REQUIRED COMMUNICATIONS (Continued)
We evaluated the key factors and assumptions used to develop the accounting estimates described above in
determining that they are reasonable in relation to the City’s financial statements taken as a whole.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit,
other than those that are trivial, and communicate them to the appropriate level of management. The
accompanying Schedule of Uncorrected Adjustments summarizes uncorrected misstatements of the financial
statements. Management has determined that their effects are immaterial, both individually and in the aggregate,
to the financial statements taken as a whole. In addition, none of the misstatements detected as a result of audit
procedures and corrected by management were material, either individually or in the aggregate, to each opinion
unit’s financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a financial
accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to
the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during
the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management representation
letter dated November 17, 2010.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an
accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that
may be expressed on those statements, our professional standards require the consulting accountant to check
with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such
consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the City’s auditors. However, these discussions
occurred in the normal course of our professional relationship and our responses were not a condition to our
retention.
Other Information in Documents Containing Audited Financial Statements
Our responsibility for other information in documents containing the financial statements and our report does
not extend beyond the financial information identified in our audit report. We do not have an obligation to
perform any procedures to corroborate other information contained in these documents. The City includes its
financial statements and our report in its Comprehensive Annual Financial Report (CAFR). However, we read
the other information in the City’s CAFR and considered whether such information, or its manner of
presentation, appearing in the financial statements. Nothing came to our attention that caused us to believe that
such information, or manner of its presentation, is materially inconsistent with the information, or manner of its
presentation, appearing in the financial statements.
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CITY OF CUPERTINO
Report to the City Council
Fiscal Year Ended June 30, 2010
SCHEDULE OF COMMENTS AND RESPONSES
Item # 2010-1 – Significant Deficiency #1
Recording Easements
Generally accepted accounting principles require the City to report easements and other donated assets at
fair value or estimated fair value at the time of acquisition. During our audit, we noted that the City had
not recorded its easements along with its infrastructure assets as required with the City’s implementation
of Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements -
and Management's Discussion and Analysis - for State and Local Governments. As a result, the City’s
beginning net assets and capital assets for governmental activities have been restated to correct this error
and these balances were increased by $16,962,925.
We recommend that the City annually evaluate its easements inventory to ensure that it is properly valued
and recorded in its financial statements.
Management Response
The City concurs. The new GASB Statement No. 51 that went into effect this year clarified the
requirement and the City has now complied through this restatement and ongoing evaluation.
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Report to the City Council
Fiscal Year Ended June 30, 2010
SCHEDULE OF COMMENTS AND RESPONSES (Continued)
Item # 2010-2 – Other Comment #1
Lack of Comprehensive Information Technology General Controls
Information technology general controls (ITGC) are intended to establish a framework of control over all
aspects of computerized processing related to financial reporting and encompass functions such as the City’s
information services organization and division of duties, changes to existing programs, and access to programs
and data. ITGC are essential to maintaining the effectiveness of automated application controls over time.
While we were obtaining an understanding of the ITGC as part of our audit, we identified certain areas for
improvement as follows:
1.IT Strategic Plan – Entity-level computer controls require that IT strategic plans be developed that are
closely aligned with the general business objectives of the entity. However, the City does not have a
defined process in place to ensure the development of a comprehensive IT strategic plan that is aligned
with the goals and objectives of the City as a whole. Without this alignment of goals and priorities for
projects, effective and efficient IT project management cannot be assured.
Recommendation: The City’s IT Manager, working in conjunction with the City’s Administrative
Services Director and other major users of IT services, should be responsible for the development and
implementation of an IT Strategic Plan. Alternatively, an IT Steering Committee should be formed,
comprised of City Directors and/or major City Department heads. This plan should:
Identify and prioritize IT initiatives.
Be aligned with the goals and objectives of the City as a whole.
Be periodically reviewed by the IT Manager and Administrative Services Director, or an IT Steering
Committee, and periodically updated for continued relevance to strategic initiatives.
Be periodically reported to City Council or the City Manager’s Office on progress made towards the
initiatives.
2.System Acquisition, Development and Program Change Control Management - The objective of this
portion of the review is to identify controls that ensure IT systems are acquired appropriately and
implemented with minimal risk to the City’s data and assets. The City lacks formal change control
management policy and procedures.
IT general controls over change control management require that policies and procedures be
implemented to ensure that all program changes are managed to ensure the accuracy and integrity of the
financial data is maintained. Without this oversight, the City’s financial data is at increased risk of loss,
lack of integrity, and inaccurate processing. The City currently tracks any program changes in the help
desk application, Track-It. Policies and procedures, however, have not been documented within the
City to ensure that program change control management is effectively implemented.
Recommendation: The City’s IT Manager should develop and implement policies and procedures to
ensure the following:
Procedures are utilized to determine the impact of program changes on security, data integrity,
performance and availability of the application.
Program testing is restricted to an environment separate from production for all financial-related
applications.
Program updates are effectively managed to ensure the integrity of the program and data.
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Report to the City Council
Fiscal Year Ended June 30, 2010
SCHEDULE OF COMMENTS AND RESPONSES (Continued)
Item # 2010-2 – (Continued)
Procedures are in place to log emergency fixes and this log is regularly reviewed.
All program changes are properly approved (by functional users and the IT Division) before they
are moved to production.
The process of moving programs into production is formal, well-documented, and has sufficient
audit trails.
Version control procedures properly document the current and a sufficient number of prior versions
of each program in production.
All program changes are appropriately documented.
3.Computer Operations - The objective of this portion of the review is to identify control issues related to
computer operations. This includes the areas of physical security, production processing and back-up
and recovery of data. The City IT staffing levels may be insufficient to support the IT functions.
General controls require that adequate technical support be available to resolve user and processing
problems in a timely manner. Staffing within the City IT office, however, may not be sufficient for the
duties and responsibilities being required of the office. The IT office has four FTEs (including the IT
manager) to support approximately 165 full-time City employees and approximately 150 part-time
employees. Designated backup positions with appropriate skill sets, though, have not been developed.
This has sometimes delayed the implementation of IT projects within the City and may place the City at
increased risk of diminished IT support services in the future.
Recommendation: The Administrative Services Director should have a workload and skill set analysis
study performed to determine if there is any deficiency in staffing levels and as well as staff knowledge,
skills, or abilities needed to support the City’s financial management systems. Based upon the findings,
an appropriate mitigation plan should be developed, including the budgeting of an appropriate amount
needed to acquire the personnel and/or training that may be required.
4.Server Room Protected by a Water-Based Fire Suppression System - Computer operations controls
require that physical and environmental systems be implemented to assure IT assets are adequately
protected from physical and environmental hazards. The City’s computer room, however, is serviced by
a water-based fire-suppression system. This places the City’s IT assets and data at increased risk of
water damage should a pipe burst or the fire suppression system be inadvertently activated.
Recommendation: The City should budget and plan for the installation of a dry chemical fire
suppression system to help ensure that the computer equipment is properly protected from fire hazard.
Should implementing a dry chemical fire suppression system be too costly, the City should consider a
dry-pipe water-based fire suppressions system.
5.Backup Data Tapes may be Subject to the Same Geographical and Environmental Hazards as the
Primary Data Center - Computer general controls require that system and application data is backed up
and stored separately. The storage of the backup data should be secured and maintained in an area that
is geographically separate from the primary data center so as not to be subject to the same potential
geographical and environmental hazards. The City currently stores its backup systems and application
data tapes at a facility that is just three miles from the primary data center. This relatively close
proximity may place the backup tapes to the same hazards and risks as the primary data center,
increasing the risk that the data may not be recoverable in a timely manner.
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Report to the City Council
Fiscal Year Ended June 30, 2010
SCHEDULE OF COMMENTS AND RESPONSES (Continued)
Item # 2010-2 – (Continued)
Recommendation: The City’s IT Manager should investigate the risks posed to the backup tapes being
stored in a close proximity to the primary data center. Industry best practices suggest a general distance
of 20-30 miles. If the risk is found to be great, the City should find alternative storage services for
backup tapes and is sufficiently geographically separated from the primary data center so as not be
subject to the same hazards.
6.The City Lacks Formal Business Continuity and Disaster Recovery Plans - General computer operations
controls require that an agency have developed and implemented disaster recovery and business
continuity plans to provide contingency for unforeseeable events. The City, however, has not developed
or documented formal plans on how its financial information and systems would be recovered in the
event of a disaster or how the City’s business functions would continue to operate should the electronic
data systems be unavailable for an extended period of time. Without comprehensive plans that have
been thoroughly tested, the City cannot be assured that its financial systems and data can be restored, or
that vital city functions could continue to be performed in the event of a disaster or if the electronic
information systems were to be unavailable for an extended period of time.
Recommendation: The City’s Administrative Services Director, working with the IT Manager and the
other City Directors, should develop a committee for the purpose of developing a comprehensive
business continuity plan. Incorporated into the plan should be procedures for the recovery of the
electronic systems and data in the event of a disaster or an event that precludes or limits the use of the
main data center. Once completed, the recovery plan should be tested periodically and updates made to
the plan based upon the findings of the testing.
7.City Lacks IT Performance Metrics - Industry best practices require that the IT function in an
organization be periodically assessed against pre-defined metrics in order to assess performance. The
City IT office, however, has not established help desk performance measures or service level
agreements (SLAs) with the functional user departments. Without defined service metrics and SLAs,
the adequacy of technical support cannot be assessed.
Recommendation:The City’s IT Manager, working in conjunction with the functional user departments,
should work to establish quantitative performance measures and SLAs so that all functional users know
of the level of support that can be expected. The performance measures may take the form of system
and application availability times, help desk availability times, help desk response times, infrastructure
incidents and mean time to resolve, etc. The performance measures should be periodically reported to
senior City management and stakeholders.
8.Access to Programs and Data - The objective of this portion of the review is to ascertain those controls
used to protect the electronic information from hazards and/or unauthorized persons. A comprehensive
IT risk assessment has not been performed. General computer controls over the access to programs and
data should require that a mechanism or procedures be in place to identify and react to risks arising from
internal and external sources. A comprehensive means to identify IT risks is through the periodic
performance of IT risk assessments. While the City has performed some limited assessments related to
PCI (Payment Card Industry) compliance efforts, a formal comprehensive and independent IT risk
assessment to help identify the risks to the delivery of IT services and the accuracy and integrity of the
City’s financial and personnel data has not been conducted.
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Report to the City Council
Fiscal Year Ended June 30, 2010
SCHEDULE OF COMMENTS AND RESPONSES (Continued)
Item # 2010-2 – (Continued)
Recommendation: The City’s IT Manager should plan and budget for an independent IT risk assessment
to be performed on the department’s functions. The risk assessment should focus on identifying all of
the possible risks to the City IT department, the delivery of IT services and the accuracy and integrity of
the City’s financial and personnel data. The risk assessment should quantify the likelihood of an event,
the impact of the event and the mitigating controls that would address the possible risk. The risk
assessment should also include network penetration testing to ascertain the vulnerabilities of the City’s
computer network from hacking attempts.
9.Network and Application Password Standards Have not been Defined - General computer controls
require that access to the IT network and applications be properly controlled. While the City has some
password standards electronically enforced, they are not standardized or formally documented within
written policy or procedures. Without formal requirements, password configuration standards may
change based on administrator preference, rather than adherence to a City risk assessment or best
practices.
Recommendation: The City’s IT Manager, working with the Administrative Services Director, should
develop and implement a formal administrative procedure requiring the use of passwords for accessing
the City IT network and all financial applications. The administrative procedures should clearly define
the minimum password configuration standard. Example:
Minimum of eight characters
Contains at least two numeric or special characters
Expires after 45-60 days
Five invalid logons will lock the account
10.Periodic Reviews of Application Authorization Roles Have not been Performed - Controls to ensure
application user accounts are configured with appropriate authorization roles help agencies ensure that
the electronic financial system is enforcing a proper segregation of duties. Within the City, however,
there is no policy or procedure established to ensure user authorization roles are periodically reviewed
for currency and appropriateness. Without this assurance, the City is at increased risk of fraud, waste
and abuse.
Recommendation: The City’s IT Manager, working with the City’s Finance Director, should develop
and implement formal written policies and procedures to ensure that user accounts and roles within the
financial applications are periodically reviewed, particularly after any update or patch is applied, to
ensure the user accounts are up to date and enforce a proper segregation of duties.
11.Network and Application Administrative Accounts should be properly Authorized and Controlled -
General computer controls over the access to programs and data require that network and application
administrator accounts be properly authorized and controlled. Within the City, however, a single shared
network administrator account is used by both the IT Manager and the Network Administrator. This
increases the likelihood that should inappropriate activity occur within the network, it will not be able to
be tracked back to a single individual.
Recommendation: The City’s IT Manager should establish and implement policy defining which IT
staff positions require network administrator access (Domain, Enterprise, Schema). Additionally, the
policy should state that shared accounts will not be used within the network or applications.
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Report to the City Council
Fiscal Year Ended June 30, 2010
SCHEDULE OF COMMENTS AND RESPONSES (Continued)
Item # 2010-2 – (Continued)
Management Response
The City’s responses to the recommendations listed above are as follows:
1.City Lacks an IT Strategic Plan - The City concurs with the recommendation. Staff supports the creation
of an Information Technology Committee as the first step towards updating the Tech 2000 Plan,
Cupertino’s IT Strategic Plan, to reflect the current goals and objectives of the City as a whole. The
plan will be incorporated into the work program with annual updates done in conjunction with the
budget process.
2.City Lacks Formal Change Control Management Policy and Procedures - The City concurs with the
recommendation. Although the city never does any development on the financial server, there is a
process in place for how the updates are accomplished. They include:
Request the update from proprietary vendor;
Receive preliminary documentation for the changes required and how they will be implemented;
Make changes and/or approve preliminary documentation
Receive detailed specifications;
Develop in-training/testing of the database;
Move tested application into production.
Although logging is manual as of today, the city is currently implementing a contract for a log
management and correlation product that will allow us to audit all changes to any system throughout the
City automatically and without IT’s ability to change raw data. In addition, all requests for changes to
the City firewall will go to the IT manager with the understanding that security implications will be
discussed with IT staff prior to any changes made.
3.IT Staffing Levels may be Insufficient to Support the IT Functions - The City concurs with the
recommendation and has expressed these concerns in light of new PCI compliance requirements. The
2010-11 Budget includes an appropriation for an RFP for a managed security service provider only.
IT department would welcome a study to ensure we are staffed sufficiently for the amount of end users,
computer and application systems that we support. With the current PCI/HIPAA Compliance initiatives
creating an immense workload for current IT staff, this may also help support staff augmentation by
hiring or contracting services for such things as security management. In the meantime, projects will be
approved only if staffing is available.
4.Server Room Protected by a Water-Based Fire Suppression System - The City concurs with the
recommendation. After discussing the logistics of changing out our fire suppression system in the main
datacenter with the Public Works Dept., the following has been determined:
County Fire requires that an evaluation of any change to our current suppression system.
A rough estimate for a 10x10 room Halogen Battalion System would cost the city upwards of $20k.
The Department will request this item in conjunction with our 2010-11 mid-year budget adjustment
process.
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Report to the City Council
Fiscal Year Ended June 30, 2010
SCHEDULE OF COMMENTS AND RESPONSES (Continued)
Item # 2010-2 – (Continued)
5.Backup Data Tapes may be Subject to the Same Geographical and Environmental Hazards as the
Primary Data Center - The City concurs with the finding but not the recommendation. Advancement to
the City’s Disaster Recovery (DR) efforts has already been addressed in the 2010-11 Budget. We
currently are receiving quotes for Cloud services to host several of the City’s mission critical
applications and data which would provide a remote location (farther than 30 miles) and possibly
replace our current tape system (and its supply cost and maintenance).
6.The City Lacks Formal Business Continuity and Disaster Recovery Plans - The City concurs with the
finding and has already completed much of the documentation needed for a Business Continuity Plan in
conjunction with the PCI Gap Analysis project. City staff will evaluate city assets, assign priority to
each and develop a comprehensive plan for its survival or replacement during a disaster.
7.City Lacks IT Performance Metrics - The City does not concur with the recommendation. Due to our
size and the assured feedback from our users, it is an easy task to ascertain and measure our
performance. Supplementing the above are the help-desk logs denoting date of request and resolution.
In addition, the survey feature available with the new help desk system will help with feedback and
service level.
8.A Comprehensive IT risk assessment has not been performed - The City concurs with the finding but
believes we have implemented the recommendation. A PCI Gap Analysis was just completed, which
listed the Compliance tasks associated with the biggest risk for the city, which is credit card acceptance.
Much of the assessment was based on National Institute of Standards and Technology (NIST) guidelines
which is also a standard amongst many of our other Public Agency peers. IT is in the process of
maturing its security posture by developing relative policy, procedures, control systems, hardware and
software acquisitions that would align us to these vetted standards.
9.Network and Application Password Standards Have Not Been Defined - The City concurs with the
recommendation and is currently implementing a formal Password Policy.
10.Periodic Reviews of Application Authorization Roles Have Not Been Performed - The City concurs with
the finding. Finance or IT staff will review user roles in the financial system on at least an annual basis
using effective internal control concepts. For the number of users this City has, development of formal
policies and procedures over this review may not be cost-beneficial.
11.Network and Application Administrative Accounts Should Be Properly Authorized and Controlled - The
City concurs with the recommendation and believes our forthcoming Security Policy will formally
outline roles and responsibilities and how assignments are made and managed.
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Report to the City Council
Fiscal Year Ended June 30, 2010
SCHEDULE OF COMMENTS AND RESPONSES (Continued)
Item # 2010-3 – Other Comment #2 -
Low and Moderate Income Housing Fund Excess Surplus Calculation
California Community Redevelopment Law (Health & Safety Code) §33334.12(g)(1) defines excess surplus to
mean any unexpended and unencumbered amount in an agency’s Low-Mod Fund that exceeds the greater of
$1,000,000 or the aggregate amount deposited into the Low-Mod Fund during the preceding 4 fiscal years.
As of June 30, 2010, the Redevelopment Agency’s Low and Moderate Income Housing Fund (Housing Fund)’s
excess surplus is computed as follows:
Total TaxSum of TaxTotal
IncrementsIncrements inUnencumbered
FiscalDeposited inHousing Fund fromBalance in HousingExcess
Year (FY)Housing FundPrevious 4 FYsFund at End of FYSurplus
2005/200646,419$ -$
2006/200746,819$ -$
2007/200855,067$ -$
2008/2009307,170$ -$
2009/2010455,475$ 842,707$ -$
Based on the Housing Fund’s fiscal year 2010/2011 budget, the Redevelopment Agency is projected to increase
its fund balance at the end of year and be close to having an excess surplus. When agencies have an excess
surplus it must either: (1) transfer excess surplus to the local county housing authority within one year or
(2) spend or encumber all the remaining excess surplus within two additional years from the time limit given to
transfer funds to the county housing authority. If excess surplus is not eliminated within three years, penalties
apply. Excess surplus penalties, per Section 33334.12(e), include: (1) limiting an agency’s actions such as
preventing the agency from encumbering and spending its funds and (2) charging the agency’s other (non-
housing) funds an amount equal to 50 percent of the amount of excess surplus that must be deposited to the
Low-Mod Fund.
As the City’s Redevelopment Agency accumulates funds for its future housing programs, it should consider
plans to utilize these restricted funds within the time requirements.
Management Response
The City concurs with the recommendation.
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Report to the City Council
Fiscal Year Ended June 30, 2010
SCHEDULE OF COMMENTS AND RESPONSES (Continued)
Item # 2010-4 – Other Comment #3 -
Implementation of GASB’s Fund Balance Reporting and
Government Fund Type Definitions Statement
In February 2009, the GASB issued Statement No. 54, Fund Balance Reporting and Governmental Fund Type
Definitions (GASB 54). GASB 54 significantly changes the accounting and financial reporting for the City’s
fund balance classifications and categorization of individual funds. Under previous standards, the City’s
governmental fund balances were organized into three categories: reserved, unreserved, and designated. The
new standard replaces these with five classifications, establishing a hierarchy that is based on the extent to
which spending constraints restrict how a government can use the funds. The five new classifications are:
Nonspendable fund balance. This includes amounts that are not in a spendable form, such as inventory or
prepaid expenses. It also includes amounts that are required to be maintained intact, such as the principal of
an endowment fund.
Restricted fund balance. This includes amounts that can be spent only for the specific purposes stipulated by
external providers, such as grant providers or bondholders, as well as amounts that are restricted
constitutionally or through legislation. In other words, these are funds that are restricted by authorities
outside the City itself, and these restrictions may be changed or lifted only with their consent.
Committed fund balance. This includes amounts that can be used only for specific purposes that are
determined by a formal action of the City Council. These commitments may be changed or lifted, but only
by the same formal action that was used to impose the constraint originally.
Assigned fund balance. This classification applies to amounts that are intended for specific purposes, as
expressed by the City Council or authorized official. It also applies to the remaining resources in any
governmental fund other than the General Fund.
Unassigned fund balance. This is the residual classification for the General Fund and includes all amounts
not contained in the other classifications. Unassigned amounts are technically available for any purpose. In
addition, if there is a deficit balance in another governmental fund, it will be reported as a negative amount
in that fund’s unassigned classification. Positive unassigned amounts are reported only in the General Fund.
This standard also provides guidance for classifying stabilization (“rainy day”) amounts on the face of the
balance sheet and would require disclosure of certain information about stabilization arrangements in the notes
to the financial statements. In addition, the definitions of individual governmental fund types have been
clarified whereby the City’s use of special revenue funds and capital project funds may be recast. This standard
clarifies that special revenue funds are created only to report revenue sources that are restricted or committed to
a specified purpose. Additional restrictions related to the classification of a special revenue fund and
clarifications of the use of debt service and capital projects funds have been identified and an analysis of the
City’s funds is recommended.
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11
CITY OF CUPERTINO
Report to the City Council
Fiscal Year Ended June 30, 2010
SCHEDULE OF COMMENTS AND RESPONSES (Continued)
Item # 2010-4 – Other Comment #2 (Continued)
The City will be required to implement GASB 54 by the fiscal year ending June 30, 2011. Some steps that the
City should perform in order to implement GASB 54 include the following:
Update the City’s fund balance policy. The policy should consider items such as the criteria for committed
and assigned fund balances; the appropriate level of unrestricted fund balance to be maintained in the
General Fund; circumstances for which restricted, committed, assigned, and unassigned amounts will be
spent down; and a policy for replenishing deficiencies.
Analyze the purposes and revenue sources of special revenue funds to ensure that these funds fall within the
new special revenue fund type definition.
Review the purposes of capital projects and debt service funds to ensure that these funds fall within the new
fund type definition.
Update chart of accounts and begin classifying fund balance amounts and prepare reports for the new
financial reporting and disclosure requirements.
Management Response
The City concurs and is in the process of implementing the pronouncement.
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CITY OF CUPERTINO
Report to the City Council
Fiscal Year Ended June 30, 2010
SCHEDULE OF UNCORRECTED ADJUSTMENTS
Opinion UnitAdjustment DescriptionDebitCredit
Current Year PAJEs
Other remaining fundsCapital Outlay37,419$
Other remaining fundsAccounts Payable$ 37,419
Government-wide - governmentalCapital assets 37,419$
Government-wide - governmentalAccounts Payable$ 37,419
To record capital outlay expenditures / capital asset addition from
accrual for FY 2010.
Government-wide - governmentalVarious Expenses91,912$
Government-wide - governmentalClaims liability$ 91,912
To record estimated year-end general claims liability at June 30,
2010.
Various - majority General FundInterest receivable186,260$
Various - majority General FundInterest revenues$ 186,260
Various - majority General FundInterest revenues366,693$
Various - majority General FundBeginning Fund Balance366,693$
To record the interest receivable for the City's pool cash and
investment.
General FundSales tax revenues131,220$
General FundBeginning Fund balance131,220$
To reflect the impact on beginning fund balance for the adjustment to
the FY 2009 sales tax liability to Insight Enterprise.
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13
CITY OF CUPERTINO
Independent Accountant’s Report on
Applying Agreed-Upon Procedures
on the City of Cupertino’s Investment Policy
As of March 31, 2010
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City Council
Finance Director of the City of Cupertino
Cupertino, California
Independent Accountant’s Report on
Applying Agreed-Upon Procedures
on the City of Cupertino’s Investment Policy
We have performed the procedures enumerated below, which were agreed to by the management of the
City of Cupertino (the City), solely to assist the specified parties with respect to the compliance with the
City’s Investment Policy for the 9-month period ended March 31, 2010. The City’s management is
responsible for the City’s compliance with those requirements. This agreed-upon procedures engagement
was conducted in accordance with attestation standards established by the American Institute of Certified
Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties
specified in the report. Consequently, we make no representation regarding the sufficiency of the
procedures described below, either for the purpose for which this report has been requested or for any
other purpose.
The procedures performed and our findings are summarized as follows:
1.We obtained the City Council-approved Investment Policy dated December 16, 2008. We
compared the investments authorized by the Investment Policy with the investments listed in the
March 2010 Treasurer’s Investment Report to determine whether all investment types are allowed
by the City’s Investment Policy.
Finding:No exceptions were noted as a result of applying our procedures.
2.We compared the City’s Investment Policy with California Government Code Section 53601 to
determine the investments authorized by the City’s Investment Policy complied with the
provisions of the California Government Code Section 53601.
Finding: No exceptions were noted as a result of applying our procedures.
3.We compared the March 31, 2010 Treasurer’s Investment Report with California Government
Code Section 53646 to determine whether the March 2010 Treasurer’s Investment Report
complied with provisions of the California Government Code Section 53646.
Finding: Pursuant to California Government Code Section 53646 paragraph (b)(1), the
Investment Report should identify the source used to derive fair value of the City’s investments.
The City utilizes the fair value provided by Wells Fargo Bank Institutional Trust Services using
valuations from Interactive Data Pricing and Reference Data, Inc., but did not identify the source
on the Investment Report. Beginning with the June 2010 Investment Report, the City has
included the source of fair value determination in the report.
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4.We verified that investment performance statistics and activity reports are generated on a regular
basis for presentation to the oversight (audit) committee, City Manager, and City Council, as
required by the City’s Investment Policy.
Finding: No exceptions were noted as a result of applying our procedures.
5.We inquired and documented our understanding of the City’s wire transfer procedures to ensure
compliance with the City’s Investment Policy, which requires all wire transfers initiated by
Treasury Section personnel to be reconfirmed by the appropriate financial institution to City non-
Treasury Section personnel.
Finding: No exceptions were noted as a result of applying our procedures.
6.We selected five investments sold/matured during the 9-month period ended March 31, 2010
from the City’s investment files and performed the following:
A.Agreed the sold/matured investment description to the corresponding Treasurer’s
Investment Report for the month in which the investments were sold/matured.
B.Agreed the amount, terms and interest rate to the Treasurer’s Investment Report.
Finding: No exceptions were noted as a result of applying our procedures.
7.We selected five investments purchased during the 9-month period ended March 31, 2010 from
the City’s investment files and performed the following:
A.Agreed the purchased investment description to the corresponding Treasurer’s
Investment Report for the month in which the investments were purchased.
B.Agreed the amount, terms and interest rate to the Treasurer’s Investment Report.
C.Verified that the investment type is authorized by the City’s Investment Policy.
Finding: No exceptions were noted as a result of applying our procedures.
8.We obtained the Treasurer’s custodian statement as of March 31, 2010 from Wells Fargo Bank,
the City’s third-party investment safekeeping custodian, and agreed the following information of
each investment listed in the March 31, 2010 custodian statement to the Treasurer’s Investment
Report as of March 31, 2010:
A.Investment description
B.Market value
C.Purchase date
D.Maturity date
E.Coupon rate
Finding: No exceptions were noted as a result of applying our procedures.
9.We selected 3 investments (excluding Treasury Securities, State of California Local Agency
Investment Fund, Non-negotiable Certificates of Deposit, Money Market Funds) from the
March 31, 2010 Wells Fargo Bank custodian statement and agreed the reported ratings to
Moody’s Investors Service rating information.
Finding: No exceptions were noted as a result of applying our procedures.
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We were not engaged to, and did not, conduct an examination, the objective of which would be the
expression of an opinion on compliance with the City’s investment policy. Accordingly, we do not
express such an opinion. Had we performed additional procedures, other matters might have come to our
attention that would have been reported to you.
This report is intended solely for the information and use of the City Council and City management and is
not intended to be and should not be used by anyone other than those specified parties.
Certified Public Accountants
Walnut Creek, California
November 17, 2010
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CITY OF CUPERTINO
Independent Accountant’s Report on Applying
Agreed-Upon Procedures Related to
the Article XIII-B Appropriations Limit
For the Year Ended June 30, 2010
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The Honorable Mayor and
Members of the City Council
City of Cupertino, California
Independent Accountant’s Report on Applying
Agreed-Upon Procedures Related to
the Article XIII-B Appropriations Limit
We have performed the procedures enumerated below to the accompanying Appropriations Limit
Worksheet of the City of Cupertino, California (City), for the year ended June 30, 2010. These procedures,
which were agreed to by the League of California Cities and presented in their Article XIIIB
Appropriations Limitation Uniform Guidelines, were performed solely to assist the City in meeting the
requirements of Section 1.5 of Article XIIIB of the California Constitution. The City’s management is
responsible for the Appropriations Limit Worksheet. This agreed-upon procedures engagement was
conducted in accordance with attestation standards established by the American Institute of Certified
Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties
specified in this report. Consequently, we make no representation regarding the sufficiency of the
procedures described below either for the purpose for which this report has been requested or for any
other purpose.
The procedures performed and our findings were as follows:
1.We obtained the completed worksheets setting forth the calculations necessary to establish the
City’s appropriations limit and compared the limit and annual adjustment factors included in
those worksheets to the limit and annual adjustment factors that were adopted by resolution of the
City Council. We also compared the population and inflation options included in the
aforementioned worksheets to those that were selected by a recorded vote of the City Council.
Finding: No exceptions were noted as a result of our procedures.
2.For the accompanying Appropriations Limit Worksheet, we added last year’s limit to total
adjustments, and compared the resulting amount to this year’s limit.
Finding: No exceptions were noted as a result of our procedures.
3.We compared the current year information presented in the accompanying Appropriations Limit
Worksheet to the worksheets described in No. 1 above.
Finding: No exceptions were noted as a result of our procedures.
4.We compared the prior year appropriations limit presented in the accompanying Appropriations
Limit Worksheet to the prior year appropriations limit adopted by the City Council.
Finding: No exceptions were noted as a result of our procedures.
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We were not engaged to, and did not, conduct an examination, the objective of which would be the
expression of an opinion on the Appropriations Limit Worksheet. Accordingly, we do not express such an
opinion. Had we performed additional procedures, other matters might have come to our attention that
would have been reported to you. No procedures have been performed with respect to the determination
of the appropriations limit for the base year, as defined by Article XIIIB of the California Constitution.
This report is intended solely for the information and use of the Mayor, City Council, and City’s
management and is not intended to be and should not be used by anyone other than these specified parties.
Certified Public Accountants
Walnut Creek, California
November 17, 2010
227
CITY OF CUPERTINO, CALIFORNIA
Appropriations Limit Worksheet
For the Year Ended June 30, 2010
Appropriations limit, fiscal year 2008-200969,217,707$
Adjustment factors:
Population growth 1.0156
×
Inflation 1.0062
Total adjustment (rounded)1.0219
Annual adjustment in dollars1,515,641
Appropriations limit, fiscal year 2009-201070,733,348$
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OFFICE OF ADMINISTRATIVE SERVICES
CITY HALL
10300 TORRE AVENUE •CUPERTINO, CA 95014-3202
(408) 777-3220 • FAX (408) 777-3109
MEMORANDUM
To:City Council
CC:Dave Knapp, Carol Atwood
From:David Woo, Finance Director
Subject:Cupertino Redevelopment AgencyAnnual Report
Date:December 7, 2010
Listed below is a summary of Cupertino Redevelopment Agency’s 2009-10 activities.
Properties and Loans
The Agency had no outstanding loansand owned no properties.
2009-10 Redevelopment Agency Accomplishment and Blight Progress Report
Provided Facilitation for the following Development Activities:
Rose Bowl Project (204 condominiums, 60k retail sq.ft.): Foundation and podium are
nearing completion. Super structureis on hold pending financing.
Additional Activity:
In September of 2009 the mall owners, Orbit Resources, foreclosed on the mall property,
and the primary lender, Gramercy took control.
In October 2009, a new ownership group purchased the property and changed the name
from Cupertino Square back to Vallco Mall.
Attended the California Redevelopment annual Conference and Expo in March, 2010 and
participated on a panel focused on the future of retail development.
N/A
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1. Below Market Rate Housing Mitigation fee
2. Park Dedication fee
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RESOLUTION NO. 10-
A RESOLUTION OF THE CUPERTINO CITY COUNCIL DECLARING WEEDS
ON CERTAIN DESCRIBED PROPERTY TO BE A PUBLIC NUISANCE AND
SETTING A HEARING FOR OBJECTIONS TO PROPOSED REMOVAL
WHEREAS, weeds are growing in the City of Cupertino upon certainstreets,
sidewalks, highways, roads and private property; and
WHEREAS, said weeds may attain such growth as to become a fire menace or
which are otherwise noxious or dangerous; and
WHEREAS, said weeds constitute a public nuisance;
NOW, THEREFORE, BEIT RESOLVED by the City Council of the City of
Cupertino as follows:
1.That said weeds do now constitute a public nuisance;
2.That said nuisance exists upon all of the streets, sidewalks, highways, roads and
private property more particularly described by common names or by reference to
the tract, block, lot, code area, and parcel number on the report prepared by the
Agricultural Commissioner and attached hereto;
3.That the 18th day of January, 2011, at the hour of 6:45 p.m., or as soon thereafter
asthe matter can be heard, in the Council Chamber in the Community Hall, City
of Cupertino, is hereby set as the time and place where all property owners having
any objections to the proposed removal of such weeds may be heard;
4.That the Agricultural Commissioner is hereby designated and ordered as the
person to cause notice of the adoption of this resolution to be given in the manner
and form provided in Sections 9.08.040 of the Cupertino Municipal Code.
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Resolution No. 10-Page 2
PASSED AND ADOPTED at a regular meeting of thecity Councilof the City of
Cupertino this ____day of December 2010, by the following vote:
VoteMembers of the City Council
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:APPROVED:
_______________________________________________
City ClerkMayor, City of Cupertino
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COMMUNITY DEVELOPMENT DEPARTMENT
CITY HALL
10300 TORRE AVENUE •CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3308www.cupertino.org
CITY COUNCIL STAFF REPORT
Meeting: December 7, 2010
Subject
Alcoholic Beverage License,Whole Foods Market,20955Stevens Creek Boulevard.
Recommended Action
Approveapplicationfor Off Sale General.
Description
Name of Business:Whole Foods Market
Location:20955Stevens Creek Boulevard
Type of Business:Restaurant
Type of License:Off Sale General (21)
Reason for Application:Annual Fees,Premise-to-Premise Transfer, Person-to-Person
Transfer
Discussion
There are no use permit restrictions or zoning restrictions which would prohibit this use and staff
has no objection to the issuance of the license. License Type 21authorizes the sale of alcohol
for consumption off the premises where sold.
_____________________________________
Prepared by: Traci Caton, Planning Department
Reviewed by: Gary Chao, City Planner; Aarti Shrivastava, Director of Community Development
Approved for Submission by:David W. Knapp, City Manager
Attachment:Application for Alcoholic Beverage License
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COMMUNITY DEVELOPMENT DEPARTMENT
CITY HALL
10300 TORRE AVENUE •CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3308www.cupertino.org
CITY COUNCIL STAFF REPORT
Meeting: December 7, 2010
Subject
Alcoholic Beverage License,Sushi Hana Bistro,19068Stevens Creek Boulevard.
Recommended Action
Approveapplicationfor Off Sale General.
Description
Name of Business:Sushi Hana Bistro
Location:19068Stevens Creek Boulevard
Type of Business:Restaurant
Type of License:On-Sale Beer and Wine for Bona Fide Public Eating Place(41)
Reason for Application:Original & Annual Fees,State & Federal Fingerprints
Discussion
There areno use permit restrictions or zoning restrictions which would prohibit this use and staff
has no objection to the issuance of the license. License Type 41authorizes the sale of beer &
winefor consumption on thepremises where sold.
_____________________________________
Prepared by: Traci Caton, Planning Department
Reviewed by: Gary Chao, City Planner; Aarti Shrivastava, Director of Community Development
Approved for Submission by:David W. Knapp, City Manager
Attachment:Application for Alcoholic Beverage License
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ADMINISTRATIVE SERVICESDEPARTMENT
CITY HALL
1010300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3220www.cupertino.org
CITY COUNCIL STAFF REPORT
Meeting:December 7, 2010
SubjectCitizens’ Option for Public Safety (COPS) grant
Adopt Resolution to approve the 2010-11COPSgrant fundingrequest.
Recommended Action
Description
The Local Safety and Protection Account (LSPA) in the State Transportation Fund, expects to
receive $365 million in revenues in 2010-11. The State Department of Finance estimates a total
of $188 million in LSPA revenues will be available for purposes of the Citizens’ Option for
Public Safety (COPS) program and the Juvenile Justice Crime Preventions Act (JJCPA).
Pursuant to Government Code Section 30061, it is anticipated that the COPS and JJCPA
programs will each receive $94 million. Cupertino’s share for 2010-11 is $100,000.
Cities are required to appropriate COPS revenues to fund front line municipal police services.
This can include anti-gang and community crime prevention programs. The funds are to be
appropriated pursuant to a written request from the Chief of Police or the Chief Administrator of
the law enforcement agency that provides police services for that city. CaptainTerry Calderone
has requested that the $100,000 be used to partially fund a second School Resource Officer for
the 2010-11 school year. The Fremont Union High School District and Cupertino Union School
District have each contributed $10,000 to cover the remaining expense for the second officer for
the 2010-11 fiscal year.
_____________________________________
Prepared by: David Woo
Reviewed by: Kimberly Smith(acting for Director of Administrative Services)
Approved for Submission by:David W. Knapp, City Manager
Attachments:Draft Resolution
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RESOLUTION NO: 10-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CUPERTINO APPROVING REQUEST FROM SHERIFF FOR USE
OF THE CITIZENS’ OPTION FOR PUBLIC
SAFETY (COPS) PROGRAM FUNDS OF $100,000
WHEREAS, the Local Safety and Protection Account (LSPA) in the Transportation Fund
expects to receive $365million in revenues in 2010-11; and
WHEREAS, the State Department of Finance estimates a total of $188million in LSPA
revenues will be available for purposes of the Citizens’ Option for Public Safety (COPS)
program and the Juvenile Justice Crime Prevention Act (JJCPA); and
WHEREAS, the City of Cupertino’s per capita share is $100,000for fiscal year 2010-11;
and
WHEREAS, the COPS program provides funding for local agencies for the purpose of
ensuring publicsafety; and
WHEREAS, cities are required to appropriate COPS revenues to fund front line
municipal police services which can include anti-gang and community crime prevention
programs; and
WHEREAS, these funds are to be appropriated pursuant to a written request from the
Chief of Police or the Chief Administrator of the law enforcement agency that provides police
services for that city; and
WHEREAS, the Captain of the Sheriff’s Office, West Valley Division, in his role as
Chief of Police, has requested that the COPS funds be used to partially fund a second School
Resource Officer; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cupertino
hereby approves the Chiefof Police’srequest for the expenditures of Citizens’ Option forPublic
Safety (COPS) funds.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 7th day of December 2010, by the following vote:
VoteMembers of the City Council
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:APPROVED:
City ClerkMayor, City of Cupertino
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COMMUNITY DEVELOPMENT DEPARTMENT
CITY HALL
1010300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3308www.cupertino.org
CITY COUNCIL STAFF REPORT
Meeting: December 7, 2010
Subject
Application for a five year extensionof permits issued for 10100 North Tantau Avenue.
Recommended Action
Consider approving a five year extension to a previouslyapproved project to construct a 10,582
square foot retail building and one-level parking garage.
Description
Application: M-2010-06
Applicant: Alanna Schroeder / Four Corners Properties (Rocktino Fee, LLC)
Location: 10100NorthTantau Avenue, APN 316-19-061
Application Summary: Modification to the previously approved Use Permit (U-2007-03),
Architectural & Site Approval (ASA-2007-05), Exception to the Heart of the City Specific Plan
(EXC-2007-08),Tentative Map (TM-2007-08)and Tree Removal Permit (TR-2007-03) for the
purpose of extending the expiration date of the approvals for five years(August 21, 2015).
Background
On August 21, 2007, the City Council approved the Use Permit, Architectural and Site Approval,
Exception to the Heart of the City Specific Plan, Tentative Map and Tree Removal (See
Attachment B, City Council Action Letter) to allow the development of aone-story 10,582
square foot retail commercial building and one-level parking garage in an existing office
complex located on the north east corner of Stevens Creek Boulevard and N. Tantau Avenue.
On June 16, 2009, the City Council granted a one-year extension of the development project (See
Attachment C, City Council Action Letter). The request did not include the extension of the
tentative map, since the tentative map approval was still valid with an expiration date of August
21,2012.
On August 20, 2010, theapplicant filed a modification application for an additionalfive-year
extension of the development project due to difficulties with the current economic conditions
(See Attachment D, Applicant’s Request Letter) that would move the expiration date to August
21, 2015.The applicant is requesting that the tentative map expiration date be extended an
additional three years to August 21, 2015 to match the expiration date requested for the other
approvals. This is permissible per the Subdivision Map Act if approved by the City Council.
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Please refer to the November 9, 2010 Planning Commission staff report (Attachment E) for the
detailed project background and discussion.
Discussion
Planning Commission
On November 9, 2010, the Planning Commission unanimously recommended extending all of
the above referenced development approvals to August 21, 2015 (See Attachment A, Planning
Commission Resolution No. 6617) with a modification to the original condition of approval,
number two,regarding pedestrian walkway enhancements(seeAttachment B-Council Action
Letter). The Commission recommended modifying this condition to take out thespecific
reference to the removal of the pork-chop island at the intersection of Stevens Creek Boulevard
and Tantau Avenue,noting that abroader scope of improvements in the public right-of-way
could potentially includethe pork-chop island,if necessary.
Staff Recommendation
Staff is supportive of the applicant’s request to extend the expiration date of the previous
approvals to August 21, 2015,as recommended by the Planning Commission in Resolution No.
6617based upon the current economic conditions and the public benefit contribution for future
intersection improvements.
_____________________________________
Prepared by:Aki Honda Snelling, Senior Planner
Reviewedby:Gary Chao, City Planner &Aarti Shrivastava, Community Development Director
Approved for Submission by:David W. Knapp, City Manager
Attachments:A. Planning Commission Resolution No. 6617
B. August 23, 2007 City Council Action Letter of original approval
C. June 17, 2009 City Council Action Letter of one-year extension
D.Applicant’s Request Letter
E. Planning Commission Staff Report of November 9, 2010
F. Staff-proposedmodel resolution attached to the November 9, 2010 staff report
G. Draft Planning Commission Minutes of November 9, 2010
H. Approved Plans for reference
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OFFICE OF THE CITY CLERK
CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3223 www.cupertino.org
CITY COUNCIL STAFF REPORT
Meeting: December 7, 2010
Subject
Adoption of the 2010 CaliforniaBuilding,Residential, Plumbing,Mechanical, Electrical,Fire,Energy
and Green Building Standards Codes as mandated by the State of California.
Recommended Action
Conduct second reading to adopt 2010 California Building Code Standardswith local amendments.
Description
Staff recommends that the City Councilconduct the second reading to adopt the 2010 California
Building Code Standards with local amendments per Attachment A:
Amend Chapter 16.04 to adopt the 2010 California Building Code(based on the 2009 International
Building Code)withlocal amendments.
Add Chapter 16.06 to adopt the 2010 California Residential Code(based on the 2009 International
Residential Code)with local amendments.
Amend Chapter 16.16 to adopt the 2010 California Electrical Code (based on the 2008 National
Electrical Code) with local amendments.
Amend Chapter 16.20 to adoptthe 2010 California Plumbing Code(based on the 2009 Uniform
Plumbing Code) with local amendments.
Amend Chapter 16.24 to adopt the 2010 California Mechanical Code(based onthe 2009 Uniform
Mechanical Code) with local amendments.
Amend Chapter 16.40 to adoptthe 2010 California Fire Code(based on the 2009 International Fire
Code) with local amendments.
Add Chapter 16.54 to adoptthe 2010 California Energy Code.
Add Chapter 16.58 to adoptthe 2010 California Green Building Standards Code.
Discussion
OnNovember 1, 2010, the Council reviewed and conducted the first reading to adopt the 2010
California Building Code Standards with local amendments. As a result of the comments made by the
City Council at the public hearing, staff has made changes to language related to fire sprinkler
requirements for buildings. The revisions are discussed in more detail below.
st
Revisions to 1Reading versionof the Code Adoption Ordinance
Theexception in Section R313.2 of the 2010 California Residential Code (Municipal Code Section
16.06.050) for Fire Sprinkler requirements for one and two family dwellings and townhomes was
revised as a result of the comments made by City Council at the firstreading. Revisions have also been
made to Section 903.2.3 of the 2010 California Fire Code (Municipal Code Section 16.40.210) which
referstocommercial occupancies. These revisions help clarify that additions to buildings that do not
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total more than 1000 square feet of building area are exempt from the fire sprinkler requirements.
Additions made before January 1, 2011,do not apply to the cumulative floor area calculation. The
original exception which read: “A one-time addition to an existing building that does not total more
than 1000 square feet of building area…” was revised to: “One or more additions made to a building
after January 1, 2011,that do not total more than 1000 square feet of building area…”Attachment B has
a strikeout version of thechanges in the ordinance and Attachment C includes only those pages where
the abovementioned revisions have been made.
Effective Date of Code Adoption:
The 2010 California Building, Residential, Plumbing, Mechanical, Electrical, Fire, Energy and Green
Building Standards Codes as mandatedby the State of California will become effective on January 1,
2011.The local amendments to the state adopted codes become effective30 days after final passage or
January 6, 2011.Plans submitted betweenJanuary 1, 2011and January 5, 2011, will be required to
comply only with the 2010 California Codes and will not be subject to the adopted local amendments.
Plans submitted on or after January 6, 2011, will be subject to the 2010 California Codes as well as the
adopted local amendments.
____________________________________
Prepared by:Albert Salvador, Building Official
Reviewed by:Aarti Shrivastava, Community Development Director
Approved for Submission by:David W. Knapp, City Manager
Attachments:
A.Draft Ordinance
B.Draft Ordinance (strikeout version)
C.Revisions to first reading of Draft Ordinance (specific pages) per City Council
direction
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AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
AMENDING CHAPTER 16 OF THE CUPERTINO MUNICIPAL CODE AND
ADOPTING THE 2010 CALIFORNIA BUILDING CODE STANDARDS
WITH APPENDICES AND AMENDMENTS THERETO
THE CITY COUNCIL OF THE CITY OF CUPERTINO HEREBY ORDAINS that they are
adopting the 2010 California Building Code Standards and amending Chapter 16 of the
Cupertino Municipal Code as follows:
Section
16.04.010 Code Adoption.
16.04.015 Adoption of Appendix Chapters.
16.04.020 Organization and enforcement.
16.04.030 Permits and inspections.
16.04.050 Address posting.
16.04.060 Spark Arrestors.
16.04.080 Roof Covering Classification.
16.04.110 Amending Section 1614, 1614.1 and 1614.3.
16.04.130 Other inspection fees – Table 1-A.
16.04.160 Penalty.
16.04.340 Conventional Construction Provisions (Bracing) - Amendment.
16.04.350 Stability Coefficient Equation.
16.04.360 Concrete Isolated Footings.
16.04.370 Revise section 1908.1.8 ACI 318-08 section 22.10.1.
*For statutory provisions regarding the authority of cities to regulate the building, construction
and removal of buildings within the city, see Gov. Code § 38601; for other provisions
concerning the authority of cities in regulating buildings and construction, see Gov. Code §
38660; for the provisions of the State Housing Act, see Health and Safety Code § 17910 et seq.
The provisions of the 2010 California Building Code, Volumes 1 and 2 inclusive, and
Appendices which follow and each and all of the regulations, provisions, conditions and terms of
the code is referred to as if fully set forth in this chapter, and is by such reference adopted.
One (1) copy of each volume of the code therefore is on file in the office of the Building
Official pursuant to Health and Safety Code Section 18942 (d) (1) and are made available for
public inspection.
288
The following Appendix Chapters from the 2010 California Building Code are hereby
adopted.
Appendix C: Group U – Agricultural Buildings;
Appendix F: Rodentproofing;
Appendix G: Flood-Resistant Construction;
Appendix I: Patio Covers;
California Code Part 8: 2010 California Historical Building Code;
California Code Part 10: 2010 California Existing Building Code
In new construction or when alterations, repairs or additions requiring a permit and having a
valuation in excess of one thousand dollars occur, all new and existing fireplace chimneys shall
terminate in a substantially constructed spark arrestor complying with the requirements of the
2010 California Residential Code Section R1003.9.1.
Amend Section 707A.8 of the 2010 California Building Code as follows:
Delete “When required by the enforcing agency”
Delete Section 710A.3.2 of the 2010 California Building Code in its entirety.
Amend Section 710A.4 of the 2010 California Building Code as follows
Delete “When required by the enforcing agency”
Section 1505.1.3 of the 2010 California Building Code is amended to read:
The entire roof covering of every existing
structure where more than 50 percent of the total roof area is replaced within any one-year
period, the entire roof covering of every new structure, and any roof covering applied in the
alteration, repair or replacement of the roof of every existing structure, shall be a fire-retardant
roof covering that is at least Class A.
Section 1505.1.4.1 of the 2010 California Building Code is amended to read:
The entire roof
covering of every existing structure where more than 50 percent of the total roof area is replaced
289
within any one-year period, the entire roof covering of every new structure, and any roof
covering applied in the alteration, repair or replacement of the roof of every existing structure,
shall be a fire-retardant roof covering that is at least Class A.
Roofing requirement for structures located in a Wildland-Urban Interface Fire Area shall also
comply with Section 705A.
Delete CBC Section 2308.9.3, Item 5 which allows the use of gypsum board.
Amend CBC Section 2308.9.3, Item 7 as follows:
Portland cement plaster on studs spaced 16 inches on center installed in accordance with Section
2510 is limited to one-story structures of R-3 and U occupancies.
Add Section 1613.8 to 2010 CBC Section 1613 and ASCE 7-05 Section 12.8.7 to read as
follows:
Modify ASCE 7, Section 12.8.7 by amending Equation
12.8-16 as follows:
PI
x
(12.8-16)
VhC
xsxd
Amend Section 1704.4 Exception #1 of the 2010 CBC to read as follows:
The special inspections and verifications for concrete
construction shall be as required by this section and TABLE 1704.4.
Special inspections shall not be required for:
1.Isolated spread concrete footings of buildings three stories or less above grade plane that are
fully supported on earth or rock, where the structural design of the footing is based on a
specified compressive strength, f’c, no greater than 2,500 pound per square inch (psi) (17.2
Mpa).
290
Amend entire section 1908.1.8 ACI 318 section 22.10 and replace with the following:
22.10 - Plain concrete in structures assigned to seismic design category C, D, E or F.
22.10.1- Structures assigned to Seismic Design Category C, D, E or F shall not have elements of
structural plain concrete, except as follows:
(a)Isolated footings of plain concrete supporting pedestals or columns are permitted, provided
the projection of the footing beyond the face of the supported member does not exceed the
footing thickness.
In detached one and two-family dwelling three stories or less in height, the projection of the
footing beyond the face of the supported member is permitted to exceed the footing
thickness.
(b)Plain concrete footing supporting walls are permitted, provided the footings have at least two
continuous longitudinal reinforcing bars. Bars shall not be smaller than No. 4 and shall have
a total area of not less than 0.002 times the gross cross-sectional area of the footing. A
minimum of one bar shall be provided at the top and bottom of the footing. Continuity of
reinforcement shall be provided at corners and intersections.
In detached one and two-family dwellings three stores or less in height and constructed with
stud bearing walls, plain concrete footings with at least two continuous longitudinal
reinforcing bars not smaller than No. 4 are permitted to have a total area of less than 0.002
times the gross cross –sectional area of the footing.
291
Section
16.06.010 Code Adoption.
16.06.015 Adoption of Appendix Chapters.
16.06.050 Automatic Fire Sprinkler Systems.
16.06.060 Materials and Construction Methods for Exterior Wildfire Exposure.
16.06.070 Footings.
16.06.080 Roof Covering Classification.
16.06.090 Seismic Reinforcing.
16.06.100 Intermittent Brace Wall Panel Construction Methods.
The provisions of the 2010 California Residential Code and specified Appendices and each
and all of the regulations, provisions, conditions and terms of the code is referred to as if fully set
forth in this chapter, and is by such reference adopted.
One (1) copy of the code therefore is on file in the office of the Building Official pursuant to
Health and Safety Code Section 18942 (d) (1) and are made available for public inspection.
The following Appendix Chapters from the 2010 California Residential Code are hereby
adopted:
Appendix A: Sizing and Capacities of Gas Piping;
Appendix C: Exit Terminals of Mechanical Draft and Direct-Vent Venting Systems;
Appendix G: Swimming Pools, Spas and Hot Tubs;
Appendix H: Patio Covers;
Appendix J: Existing Building and Structures;
Appendix K: Sound Transmission;
Amend Section R313.1 to read:
An automatic residential fire
sprinkler system shall be installed in all new townhouses and in existing townhouses when
additions are made that increase the building area to more than 3,600 square feet.
One or more additions made to a building after January 1, 2011 that do not total more than 1000
square feet of building area.
Amend Section R313.2 to read:
292
An automatic
residential fire sprinkler system shall be installed in one- and two-family dwellings as follows:
1.In all new one- and two-family dwellings and in existing one- and two-family dwellings
when additions are made that increase the building area to more than 3,600 square feet.
One or more additions made to a building after January 1, 2011 that do not total more than
1000 square feet of building area.
2.In all new basements and in existing basements that are expanded.
Existing basements that are expanded by not more than 50%.
Amend Section R327.7.9 of as follows:
Delete “When required by the enforcing agency”
Delete Section R327.10.3.2 in its entirety:
Amend Section R327.10.4 of as follows:
Delete “When required by the enforcing agency”
Amend Section R403.1 to read:
All exterior walls shall be supported on continuous solid or fully grouted
masonry or concrete footings, or other approved structural systems which shall be of sufficient
design to accommodate all loads according to Section R301 and to transmit the resulting loads to
the soil within the limitations as determined from the character of the soil. Footings shall be
supported on undisturbed natural soils or engineered fill. Concrete footings shall be designed
and constructed in accordance with the provisions of Section R403 or in accordance with ACEI
332.
1-story 12 12 12 12
2-story 15 12 12 12
3-story 23 17 12 12
293
1-story 12 12 12 12
2-story 21 16 12 12
3-story 32 24 16 12
1-story 16 12 12 12
2-story 29 21 14 12
3-story 42 32 21 16
For SI: 1 inch = 25.4 mm, 1 pound per square foot = 0.0479 kPa.
a.Where minimum footing width is 12 inches, use of a single wythe of solid or fully grouted 12-inch
nominal concrete masonry units is permitted.
Amend Section R403.1.1 to read:
Minimum sizes for concrete and masonry footings shall be as set
forth in Table R403.1 and Figure 403.1(1). The footing width, W, shall be based on the load-
bearing value of the soil in accordance with Table R401.4.1. Spread footings shall be at least 6
inches (152 mm) in thickness, T. Footing projection, P, shall be at least 2 inches (51 mm) and
shall not exceed the thickness of the footing. The size of footings supporting piers and columns
shall be based on the tributary load and allowable soil pressure in accordance with Table
R401.4.1.
Delete Figure R403.1(2) and Figure R403.1(3).
Delete Section R403.2 in its entirety.
Amend Section R902.1.3 to read:
The entire roof covering of every existing
structure where more than 50 percent of the total roof area is replaced within any one-year
period, the entire roof covering of every new structure, and any roof covering applied in the
alteration, repair or replacement of the roof of every existing structure, shall be a fire-retardant
roof covering that is at least Class A.
Amend Section R902.1.4 to read:
The entire
roof covering of every existing structure where more than 50 percent of the total roof area is
replaced within any one-year period, the entire roof covering of every new structure, and any
roof covering applied in the alteration, repair or replacement of the roof of every existing
structure, shall be a fire-retardant roof covering that is at least Class A.
Roofing requirement for structures located in a Wildland-Urban Interface Fire Area shall also
comply with Section R327.5.
294
Amend Section R403.1.3 by adding wording to the first sentence of the first paragraph to specify
the minimum amount of longitudinal reinforcing, and by deleting the portion of the Exception to
this section that allows the use of plain concrete footings without longitudinal reinforcement, to
read:
Concrete footings located in Seismic Design Categories D0,
D1 and D2, as established in Table R301.2(1), shall have minimum reinforcement of at least two
continuous longitudinal reinforcing bars not smaller than No. 4 bars. Bottom reinforcement shall
be located a minimum of 3 inches (76 mm) clear from the bottom of the footing.
In Seismic Design Categories D0, D1 and D2 where a construction joint is created between a
concrete footing and a stem wall, a minimum of one No. 4 bar shall be installed at not more than
4 feet (1219 mm) on center. The vertical bar shall extend to 3 inches (76 mm) clear of the bottom
of the footing, have a standard hook and extend a minimum of 14 inches (357 mm) into the stem
wall.
In Seismic Design Categories D0, D1 and D2 where a grouted masonry stem wall is
supported on a concrete footing and stem wall, a minimum of one No. 4 bar shall be installed at
not more than 4 feet (1219 mm) on center. The vertical bar shall extend to 3 inches (76 mm)
clear of the bottom of the footing and have a standard hook.
In Seismic Design Categories D0, D1 and D2 masonry stem walls without solid grout and
vertical reinforcing are not permitted.
In detached one- and two-family dwellingswhich are three stories or less in height and
constructed with stud bearing walls, isolated plain concrete footings supporting columns or
pedestals are permitted.
Amend CRC Table R602.10.1.2(2), to add a new footnote “d” to the end of CRC Table
R602.10.1.2(2), to read:
d. In Seismic Design Categories D, D, and D, Method GB is not permitted and the use of
012
Method PCP is limited to one-story single family dwellings and accessory structures.
Add the “d” footnote notation in the title of Table R602.10.1.2(2) after the three footnotes
currently shown, to read:
Add a new subsection R602.10.2.1.1, to read:
295
. In Seismic Design Categories D, D, and
01
D
, Method GB is not permitted for use as intermittent braced wall panels, but gypsum board is
2
permitted to be installed when required by this Section to be placed on the opposite side of the
studs from other types of braced wall panel sheathing. In Seismic Design Categories D, D,
01
and D, the use of Method PCP is limited to one-story single family dwellings and accessory
2
structures.
296
Section
16.12.010 Code Adoption.
16.12.020 Required.
16.12.030 Report Requirements.
16.12.040 Preparation.
16.12.050 Approval of Report.
16.12.060 Conditions of Building Permit.
16.12.070 Appeals.
* For statutory provisions requiring cities to enact an ordinance which makes necessary a
preliminary soil report of every subdivision, see Health and Safety Code §§ 17953-17957.
The ordinance codified in this chapter is enacted pursuant to the provisions of Section 17953
through 17957 of the Health and Safety Code of the state, relating to housing, and reaffirms the
requirements of an approved soils report as a condition to the issuance of a building permit.
A soils report, as described in Section 17953 of the California Health and Safety Code, shall
be required of every subdivision as defined in the Subdivision Map Act of the State of California
(commencing at Section 66401 of the California Government Code) and shall also be required as
a condition precedent to the issuance of any building permit for any structure to be built on any
lot or subdivision.
Said soils report may be waived by the Building Official or if the Public Works Director
determines that due to the knowledge such department has as to the soil qualities of the soil of
the subdivision or lot, no analysis is necessary.
No building permit shall be issued for the construction of any building or structure on any lot
or subdivision subject to this chapter unless or until an approved preliminary soil report has been
filed first with the Building Official and City Engineer; or said report has been waived pursuant
to the provisions of this chapter or, the corrective action, if any, has been assured.
297
Section
16.16.010 Code Adoption.
16.16.015 Adoption of Appendix Chapters.
16.16.020 Article 100 Amended - Definitions.
16.16.025 Electrical Work.
16.16.030 Electrical Fee Schedule.
16.16.040 Interpretation.
16.16.050 Electrical Maintenance Program.
16.16.070 Penalty.
The provisions of the 2010 California Electrical Code and each and all of the regulations,
provisions, conditions and terms of the code is referred to as if fully set forth in this chapter, and
is by such reference adopted.
One (1) copy of the code therefore is on file in the office of the Building Official pursuant to
Health and Safety Code Section 18942 (d) (1) and are made available for public inspection.
No Appendix Chapters from the 2010 California Electrical Code have been adopted.
298
Section
16.20.010 Code Adoption.
16.20.015 Adoption of Appendix Chapters.
16.20.020 Name Insertion.
16.20.080 Condensate Disposals.
16.20.100 Penalty.
16.20.110 Schedule of Fees.
16.20.120 Board of Appeals.
The provisions of the 2010 California Plumbing Code and each and all of the regulations,
provisions, conditions and terms of the code is referred to as if fully set forth in this chapter, and
is by such reference adopted.
One (1) copy of the code therefore is on file in the office of the Building Official pursuant to
Health and Safety Code Section 18942 (d) (1) and are made available for public inspection.
The following Appendix Chapters from the 2010 California Plumbing Code are hereby
adopted:
Appendix A: Rules for Sizing the Water Supply System;
Appendix B: Explanatory Notes on Combination Waste and Vent Systems;
Appendix D: Sizing Storm Water Drainage Systems;
Appendix G: Graywater Systems;
Appendix I: Installation Standards;
Appendix K: Private Sewage Disposal Systems;
Appendix L: Alternate Plumbing Systems;
299
Section
16.24.010 Code Adoption.
16.24.015 Adoption of Appendix Chapters.
16.24.020 Name Insertion.
16.24.030 Condensate Wastes.
16.24.060 Board of Appeals.
16.24.070 Table No. 1-A – Mechanical Permit Fees Amended.
16.24.080 Violation - Penalty.
The provisions of the 2010 California Mechanical Code and each and all of the regulations,
provisions, conditions and terms of the code is referred to as if fully set forth in this chapter, and
is by such reference adopted.
One (1) copy of the code therefore is on file in the office of the Building Official pursuant to
Health and Safety Code Section 18942 (d) (1) and are made available for public inspection.
No Appendix Chapters from the 2010 California Mechanical Code have been adopted.
300
CHAPTER 16.40: FIRE CODE ADOPTED
Section
16.40.010 Code Adoption.
16.04.015 Adoption of Appendix Chapters.
16.40.020 Administration
16.40.030 Establishment of limits of districts in which the storage of stationary tanks of
flammable cryogenic fluids are to be prohibited.
16.40.040 Establishment of limits of districts in which storage of Class I and II liquids in
outside aboveground tanks is prohibited.
16.40.050 Establishment of limits of districts in which storage of Class I and II liquids in
aboveground tanks is prohibited.
16.40.060 Establishment of limits in which storage of liquefied petroleum gases is prohibited.
16.40.065 Permits.
16.40.070 Definitions.
16.40.080 General Precautions Against Fire.
16.40.090 Emergency Planning and Preparedness.
16.40.100 Use and Occupancy – Related Requirements.
16.40.110 FIRE SERVICE FEATURES
16.40.120 Fire Apparatus Access Roads.
16.40.130 Access to Buildings and Roofs.
16.40.140 HAZARDS TO FIREFIGHTERS
16.40.150 Emergency Responder Radio Coverage.
16.40.160 BUILDING SERVICE AND FEATURES
16.40.180 Electrical Equipment, Wiring and Hazards.
16.40.190 Stationary Storage Battery Systems.
16.40.195 Decorative Vegetation in New and Existing Buildings.
16.40.200 FIRE PROTECTION SYSTEMS
16.40.210 Automatic Sprinkler Systems.
16.40.220 FIRE SAFETY DURING CONSTRUCTION AND DEMOLITION
16.40.225 Precautions Against Fire.
16.40.230 Means of Egress.
16.40.240 SEMICONDUCTOR FABRICATION FACILITIES
16.40.250 Definitions.
16.40.260 Storage of Wood Chips and Hogged Material Associated with Timber and Lumber
Production Facilities.
16.40.270 Storage and Processing of Wood Chips, Hogged Materials, Fines, Compost and Raw
Product Associated with Yard Waste and Recycling Facilities.
16.40.290 HAZARDOUS MATERIALS
16.40.300 General.
16.40.310 Definitions.
16.40.320 General Requirements.
16.40.330 Storage.
16.40.340 Use, Dispensing and Handling.
16.40.350 CORROSIVE MATERIALS
16.40.360 Definitions.
16.40.370 Explosives and Fireworks.
301
16.40.380 FLAMMABLE AND COMBUSTIBLE LIQUIDS
16.40.390 Storage.
16.40.400 HIGHLY TOXIC AND TOXIC MATERIALS
16.40.410 General.
16.40.420 Definitions.
16.40.430 Highly Toxic, Toxic and Moderately Toxic Compressed Gases including those used
as Refrigerants.
16.40.440 Use.
16.40.460 Definitions.
16.40.475 Application.
16.40.480 Defensible Space.
16.40.490 Access.
16.40.500 Water Supply.
16.40.560 General Requirements For Suppression and Control.
16.40.650 Ignition Source Control.
16.40.660 Outdoor Fires.
16.40.670 Liquified Petroleum Gas Installations.
16.40.680 Storage of Firewood and Combustible Materials.
16.40.690 Dumping.
16.40.700 Protection of Pumps and Water Storage Facilities.
302
16.40.010 Code Adoption.
There is hereby adopted by the City of Cupertino for the purpose of prescribing regulations
governing conditions hazardous to life and property from fire or explosion, that certain code
known as the 2010 California Fire Code and also the 2009 International Fire Code, including
Appendix Chapters B, C and J and the whole thereof, save and except such portions as are
hereinafter deleted, modified or amended by this ordinance, of which one copy has been filed for
use and examination by the public in the office of the City Building Official and the City Fire
Chief and the same adopted and incorporated as fully as if set out at length herein, and from the
date on which this ordinance shall take effect, the provision thereof shall be controlling within
the limits of the City of Cupertino.
16.40.015 Adoption of Appendix Chapters.
The following Appendix Chapters from the 2010 California Fire Code are hereby adopted.
Appendix B: Fire-Flow Requirement for Buildings.
Appendix C: Fire Hydrant Locations and Distribution.
Appendix J: Emergency Responder Radio Coverage.
16.40.020 Administration.
Section 101.3.1 is added to read as follows:
101.3.1 Administration. The City Manager, through the powers vested by the City Council,
shall have the authority to delegate any and all responsibility for the maintenance and
enforcement of the provisions of this Code to whichever legal entity he feels best serves the
interests of the City.
Wherever the words “Chief”, “Fire Marshal”, “fire code official”, “Fire Department”, “Fire
Prevention Bureau”, “Fire Chief” and other such similar words are used, they shall mean and
refer to such legal entity designated by the City Manager of Cupertino under the authority of the
City Council of Cupertino.
Wherever the words “municipality”, “jurisdiction” or “city” are used, they shall mean the City
of Cupertino.
Wherever the words “Executive Body” are used, they shall mean the City Council of
Cupertino.
Wherever the words “Administrator” or “Executive” are used, they shall mean the City
Manager of Cupertino.
Wherever the words “District Attorney” or “Corporation Counsel” are used, they shall mean
the City Attorney of Cupertino.
Wherever the words “Board of Appeal” are used, they shall mean the City Council of
303
Cupertino or the body appointed by the Council to pass on matters pertaining to fire safety.
16.40.030 Establishment of limits of districts in which the storage of stationary tanks of
flammable cryogenic fluids are to be prohibited.
The limits referred to in Section 3506.2 of the California Fire Code in which the storage of
flammable cryogenic fluids in stationary containers is prohibited are hereby established as all
locations of the City of Cupertino which are residential and congested commercial areas as
determined by the fire code official.
16.40.040 Establishment of limits of districts in which storage of Class I and II liquids in
outside aboveground tanks is prohibited.
The limits referred to in Section 3404.2.9.6.1 of the California Fire Code, in which the storage
of flammable or combustible liquids in aboveground tanks is prohibited are hereby established as
all locations of the City of Cupertino that are residential or congested commercial areas as
determined by the fire code official.
16.40.050 Establishment of limits of districts in which storage of Class I and II liquids in
aboveground tanks is prohibited.
The limits referred to in Section 3406.2.4.4 of the California Fire Code, in which the storage
of flammable or combustible liquids in aboveground tanks is prohibited are hereby established as
all locations of the City of Cupertino that are residential or other locations as determined by the
fire code official.
16.40.060 Establishment of limits in which storage of liquefied petroleum gases is
prohibited.
The limits referred to in Section 3804.2 of the California Fire Code, in which storage of
liquefied petroleum gas is restricted, are hereby established as all locations of the City of
Cupertino that are residential or congested commercial areas.
Exception:
LPG may be used for industrial operations or when natural gas would not provide a viable
substitute for LPG. Portable containers for temporary heating and/or cooking uses may be
permitted if stored and handled in accordance with this code. Facilities in commercial areas for
refueling portable or mobile LGP containers may be approved by the fire code official on a case
by case basis.
16.40.065 Permits.
304
Section 105.1.4 is added to read as follows:
105.1.4 Construction permit fees.Construction permit fees and plan review fees for fire
hydrant systems, fire extinguishing systems and fire alarm systems shall be paid to the Santa
Clara County Fire Department in accordance with the following table based on valuation. The
valuation shall be limited to the value of the system for which the permit is being issued. Plan
review fees are 65% of the Permit Fee amount. For the purposes of determining the total fee
amount for each permit, the plan review fee shall be added to the Permit Fee.
TOTALPERMIT FEE
VALUATIONS
$1.00 TO $500.00 $23.50
$501.00 TO $23.50 for the first $500.00 plus $3.05 for
$2,000.00each additional $100.00, or fraction thereof,
to and including $2,000.00
$2001.00 TO $69.25 for the first $2,000.00 plus $14.00 for
$25,000.00each additional $1,000.00 or fraction thereof,
to and including $25,000.00
$25,001.00 TO $391.25 for the first $25,000.00 plus $10.10
$50,000.00for each additional $1,000.00, or fraction
thereof, to and including $50,000.00
$50,001.00 TO $643.75 for the first $50,000.00 plus $7.00 for
$100,000.00each additional $1,000.00, or fraction thereof,
to and including $100,000.00
$100,001.00 to $993.75 for the first $100,000.00 plus $5.60
$500,000.00for each additional $1,000.00, or fraction
thereof, to and including $500,000.00
$500,001 to $3,233.75 for the first $500,000.00 plus $4.75
$1,000,000.00for each additional $1,000.00, or fraction
thereof, to and including $1,000,000.00
$1,000,001 and up $5,608.75 for the first $1,000,000.00 plus
$3.15 for each additional $1,000.00, or
fraction thereof
Additional re-inspections, in connection with the permits above, are
to be paid at $30.00 for each occurrence at the discretion of the fire
code official.
Section 105.1.5 is added to read as follows:
305
105.1.5 Operational permit fees. Operational permit fees shall be paid to the Santa Clara
County Fire Department as follows:
FACILITY TYPE PERMIT FEE
1. Institutional
A.Over 50 persons $100.00 – Annually
B. More than 6 persons $75.00 – Annually
2. Day Care Facilities
More than 6 clients $35.00 – Annually
3. Places of Assembly
A. 50-300 persons $50.00 - Annually
B. Over 300 persons $85.00 - Annually
4. Temporary Membrane $85.00 - Annually
Structures, Tents and
Canopies (Only those
requiring permits in
accordance with Section
105.6.43).
Section 105.6.8 is amended to read as follows:
105.6.8 Compressed Gases. An operational permit is required for the storage, use or
handling at normal temperature and pressure (NPT) of compressed gases in excess of the
amounts listed in Table 105.6.8, to install any piped distribution system for compressed gases, or
to install a non-flammable medical gas manifold system. A permit is required to install, repair,
abandon, remove, place temporarily out of service, close or substantially modify a compressed
gas system.
Exception:
1. Vehicles equipped for and using compressed gas as a fuel for propelling the vehicle.
2. Routine maintenance.
3. For emergency repair work performed on an emergency basis, application for permit shall be
made within two working days of commencement of work.
4. Inert and simple asphyxiants at or below the amounts listed in Table 105-A.
The permit applicant shall apply for approval to close storage, use or handling facilities at
least 30 days prior to the termination of the storage, use or handling of compressed or liquefied
gases. Such application shall include any change or alteration of the facility closure plan. This
306
30-day period may be waived by the chief if there are special circumstances requiring such
waiver.
Amend Table 105.6.8 to read:
TABLE 105.6.8
1
PERMIT AMOUNTS FOR COMPRESSED GASES
2
TYPE OFGAS AMOUNT(cubic feet)
3
X 0.0283 for m
Corrosive 200
Flammable (except cryogenic and liquefied petroleum 200
gases)
Highly toxic Any amount
Inert and simple asphyxiant 6,000
Irritant 200
Moderately toxic 20
Other health hazards 650
Oxidizing (including oxygen) 504
Pyrophoric Any amount
Radioactive Any amount
Sensitizer 200
Toxic Any Amount
Unstable (reactive) Any amount
1
Refer to Chapters 27, 30, 32, 35, 37, 40 and 41 for additional requirements and exceptions.
2
Cubic feet measured at normal Temperature and pressure.
Section 105.6.10 is amended to read as follows:
105.6.10 Cryogenic fluids. An operational permit is required to produce, store transport on
site, use, handle or dispense cryogenic fluids in excess of the amounts listed in Table 105.6.10 or
to install a cryogenic vessel or piping system for the storage or distribution of cryogens.
Exception:
Permits are not required for vehicles equipped for and using cryogenic fluids as a fuel for
propelling the vehicle or for refrigerating the lading.
307
Table 105.6.20 is amended to read as follows:
TABLE 105.6.20 PERMIT AMOUNTS FOR HAZARDOUS
MATERIALS
TYPE OF MATERIAL AMOUNT
Combustible Liquids: See Section 105.6.16
Corrosive Materials:
GasesSee Section 105.6.8
Liquids55 gallons
Solids 500 pounds
Cryogens: See Section105.6.10
Explosive Materials: See Section 105.6.14
Flammable Materials:
GasesSee Section 105.6.8
LiquidsSee Section 105.6.16
Solids 10 pounds
Highly Toxic Materials:
GasesAny amount
LiquidsAny amount
SolidsAny amount
Moderately Toxic Materials: 20 Cubic Feet
Organic Peroxides:
Liquids: Class I-IV Any Amount
Liquids: Class V No Permit Required
Solids: Class I-IV Any Amount
Solids: Class V No Permit Required
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Oxidizing Materials:
Gases504 Cubic Feet
LiquidsAny amount
Solids Any amount
Pyrophoric Materials:
GasesAny amount
LiquidsAny amount
Solids Any amount
Toxic Materials:
GasesAny amount
LiquidsAny amount
Solids Any amount
Unstable (Reactive) Materials:
GasesAny amount
LiquidsAny amount
Solids Any amount
Water Reactive Materials:
LiquidsAny amount
Solids Any amount
For SI: 1 gallon = 3.785 L, 1 pound = 0.454 kg.
a.20 gallons when Table 2703.1.1(1) Note k applies and hazard identification signs in accordance with
Section 2703.5 are provided for quantities of 20 gallons or less.
b.200 pounds when Table 2703.1.1(1) Note k applies and hazard identification signs in accordance with
Section 2703.5 are provided for quantities of 200 gallons or less.
Section 105.6.48 is added to read as follows:
105.6.48 Day Care Facility. An operational permit is required to operate a business as a day
309
care facility for more than 6 people.
Section 105.6.49 is added to read as follows:
105.6.49 Institutional. A permit is required to operate, maintain, or use any institutional
type occupancy. For the purpose of this Section, an institution shall be, but is not limited to:
hospitals, children’s home, home or institution for insane or mentally retarded persons, home or
institution for the care of aged or senile persons, sanitarium, nursing or convalescent home,
certified family care homes, residential care homes for the elderly, out of home placement
facilities, halfway house, and day care nurseries or similar facility of any capacity.
Section 106.5 is added to read as follows:
106.5 Final Inspection. No final inspection as to all or any portion of a development shall be
deemed completed until the installation of the required fire protection facilities and access ways
have been completed and approved. No final certificate of occupancy may be granted until the
Fire Department issues notice of final clearance of such fire protection facilities and access ways
to the Building Department.
Delete Section 109.3: Violation penalties
16.40.070 Definitions.
The following definitions are added:
CARCINOGEN is a substance that causes the development of cancerous growths in living
tissue. A chemical is considered a carcinogen if:
1.It has been evaluated by the International Agency for Research on Cancer and found to be a
carcinogen or potential carcinogen, or
2.It is listed as a carcinogen or potential carcinogen in the latest edition of the Annual Report
on Carcinogens published by the National Toxicology program, or
3.It is regulated by OSHA as a carcinogen.
DEVICE. Device is, for the purpose of Exhibit "A", an appliance or piece of equipment that
plays an active part in the proper functioning of the regulated systems. Examples include, but are
not limited to the following: smoke detectors, heat detectors, flame detectors, manual pull stations,
horns, alarms, bells, warning lights, hydrants, risers, FDCs, standpipes, strobes, control panels,
transponders, and other such equipment used to detect, transmit, initiate, annunciate, alarm, or
respond according to the system design criteria.
OTHER HEALTH HAZARD MATERIAL is a hazardous material which affects target
organs of the body, including but not limited to, those materials which produce liver damage,
kidney damage, damage to the nervous system, act on the blood to decrease hemoglobin function,
deprive the body tissue of oxygen or affect reproductive capabilities, including mutations
(chromosomal damage) or teratogens (effect on fetuses).
310
SENSITIZER is a chemical that causes a substantial proportion of exposed people or animals
to develop an allergic reaction in normal tissue after repeated exposure to the chemical.
WORKSTATION is a defined space or independent principal piece of equipment using
hazardous materials where a specific function, laboratory procedure or research activity occurs.
Approved or listed hazardous materials storage cabinets, flammable liquid storage cabinets or
gas cabinets serving a workstation are included as part of the workstation. A workstation is
allowed to contain ventilation equipment, fire protection devices, electrical devices, and other
processing and scientific equipment.
16.40.080 General Precautions Against Fire.
VACANT PREMISES
The following sections are deleted:
Delete Section: 311.5 Placards.
Delete Section: 311.5.1 Placard Location.
Delete Section: 311.5.2 Placard Size And Color.
Delete Section: 311.5.3 Placard Date.
Delete Section: 311.5.4 Placard Symbols
Delete Section: 311.5.5 informational Use
HAZARDS TO FIRE FIGHTERS
Add Section 316.6 to read:
316.6 Roof Guardrails at Interior Courts. Roof openings into interior courts that are
bounded on all sides by building walls shall be protected with guardrails. The top of the guardrail
shall not be less than 42 inches in height above the adjacent roof surface that can be walked on.
Intermediate rails shall be designed and spaced such that a 12-inch diameter sphere cannot pass
through.
Exception:
Where the roof opening is greater than 600 square feet in area.
16.40.090 Emergency Planning and Preparedness.
Amend Section 404.2 as follows:
404.2 Where Required. An approved fire safety and evacuation plan shall be prepared and
maintained for the following occupancies and buildings.
1.Group A buildings having an occupant load of 100 or more persons.
2.Group B buildings having an occupant load of 500 or more.
311
3.Group E: See §3.13 Title 19, CCR for regulations.
4.Group H.
5.Group I. See §3.09 Title 19, CCR for regulations.
6.Group R-1. See §3.09 Title 19, CCR for regulations.
7.Group R-2 college and university buildings.
8. Group R-4.
9. Group M buildings having an occupant load of 500 or more persons.
10. Covered malls exceeding 50,000 square feet (4645 m2) in aggregate floor area.
11. Underground buildings.
Amend Section 404.3.1 as follows:
404.3.1 Fire Evacuation Plans. Fire evacuation plans shall include the following:
1. Emergency egress or escape routes and whether evacuation of the building is to be
complete or, where approved, by selected floors or areas only.
2. Description of what the fire alarm, if required, sounds and looks like (audible and visual
warning devices).
3. Procedures for employees who must remain to operate critical equipment before
evacuating.
4. Procedures for accounting for employees and occupants after evacuation has been
completed.
5. Identification and assignment of personnel responsible for rescue or emergency medical
aid.
6. The preferred and any alternative means of notifying occupants of a fire or emergency.
7. The preferred and any alternative means of reporting fires and other emergencies to the
fire department or designated emergency response organization.
8. Identification and assignment of personnel who can be contacted for further information
or explanation of duties under the plan.
9. A description of the emergency voice/alarm communication system alert tone and
preprogrammed voice messages, where provided.
Amend Table 405.2 as follows:
TABLE 405.2
FIRE AND EVACUATION DRILL
FREQUENCY AND PARTICIPATION
GROUP OR
FREQUENCY PARTICIPATION
OCCUPANCY
312
Group AQuarterlyEmployees
a
Group BAnnuallyEmployees
Group ESee §3.13 Title 19, CCR
Group ISee §3.13 Title 19, CCR
Group R-1See §3.13 Title 19, CCR
b
Group R-2Four annuallyAll occupants
c
High-rise buildingsSee Title 19, Cal. Code Regs. §3.09
a. Group B buildings having an occupant load of 500 or more persons.
b. Applicable to Group R-2 college and university buildings only
c. Applicable to high-rise office buildings only.
16.40.100 Use and Occupancy – Related Requirements.
Section 408.2.2 is deleted:
Section 408.3.1 is deleted:
Section 408.3.2 is deleted:
Section 408.3.3 is deleted:
Section 408.3.4 is deleted:
Section 408.5.1 is deleted:
Section 408.5.2 is deleted:
Section 408.5.3 is deleted:
Section 408.5.4 is deleted:
Section 408.5.5 is deleted:
Section 408.6 is deleted:
Section 408.6.1 is deleted:
Section 408.6.2 is deleted:
Section 408.7 is deleted:
Section 408.7.1 is deleted:
Section 408.7.2 is deleted:
Section 408.7.3 is deleted:
Section 408.7.4 is deleted:
Section 408.8 is deleted:
Section 408.8.1 is deleted:
Section 408.8.2 is deleted:
Section 408.8.3 is deleted:
Amend Section 408.9 to read:
408.9 Group R-2 Occupancies. Group R-2 occupancies shall comply with the requirements
of Sections 408.9.1 through 408.9.3 and Sections 401 through 406. Group R-2 college and
university buildings shall comply with the requirements of Sections 408.9.1 through 408.9.6 and
Sections 401 through 406.
Add Section 408.9.4 to read:
313
408.9.4 First Emergency Evacuation Drill. The first emergency evacuation drill of each
school year shall be conducted within 10 days of the beginning of classes.
Add Section 408.9.5 to read:
408.9.5 Time of Day. Emergency evacuation drills shall be conducted at different hours of
the day or evening, during the changing of classes, when the school is at assembly, during the
recess or gymnastic periods, or during other times to avoid distinction between drills and actual
fires. In Group R2 college and university buildings, one required drill shall be held during hours
after sunset or before sunrise.
Section 408.10 is deleted:
Section 408.10.1 is deleted:
Section 408.10.2 is deleted:
Section 408.10.3 is deleted:
Section 408.10.4 is deleted:
Section 408.10.5 is deleted:
Amend Section 408.11.1.2 to read:
408.11.1.2 Revisions. The lease plans shall be revised annually or as often as necessary to
keep them current.
16.40.110 FIRE SERVICE FEATURES
16.40.120 Fire Apparatus Access Roads.
Amend Section 503.1 as follows:
503.1 Where required. Fire apparatus access roads shall be provided and maintained in
accordance with Sections 503.1.1 through 503.1.2 and as per Fire Department access road
Standards.
Amend Section 503.1.1 as follows:
503.1.1 Building and Facilities. Approved fire apparatus access roads shall be provided for
every facility, building or portion of a building hereafter constructed or moved into or within the
jurisdiction. The fire apparatus access road shall comply with the requirements of this section
and shall extend within 150 feet (45,720 mm) of all portions of the exterior walls of the first
story of the building as measured by an approved route around the exterior of the building or
facility.
Exception:
314
1. When the building is equipped throughout with an approved automatic sprinkler installed in
accordance with Section 903.3.1.1, 903.3.1.2 or 903.3.1.3, the dimension may be increased
to 300 feet.
2. When fire apparatus roads cannot be installed because of topography, waterways,
nonnegotiable grades or other similar conditions, an approved alternative means of fire
protection shall be provided.
Amend Section 503.2.1 as follows:
503.2.1 Dimensions. Fire apparatus access roads shall have an unobstructed width of not less
than 20 feet (6096 mm), except for approved security gates in accordance with Section 503.6,
and an unobstructed vertical clearance of 13 feet 6 inches (4115 mm).
Exception:
When there are not more than two Group R, Division 3, or Group U occupancies, the access road
width may be modified by the fire code official.
Add Section 503.7 as follows:
503.7 Traffic Calming Devices. Traffic Calming Devices such as speed humps, traffic
circles or other physical measures intended to control vehicle speed on fire apparatus access
roads are prohibited unless approved by the fire code official.
16.40.130 Access to Buildings and Roofs.
Add Section 504.4 to read:
504.4 Access Control Devices. When access control devices including bars, grates, gates,
electric or magnetic locks or similar devices, which would inhibit rapid fire department
emergency access to the building, are installed, such devices shall be approved by the fire code
official. All electrically powered access control devices shall be provided with an approved
means for deactivation or unlocking from a single location or otherwise approved by the fire
department.
Access control devices shall also comply with Chapter 10 Egress.
16.40.140 HAZARDS TO FIREFIGHTERS
16.40.150 Emergency Responder Radio Coverage.
Amend Section 510.1 to read follows:
510.1 Emergency responder radio coverage in buildings. All buildings shall have approved
radio coverage for emergency responders within the building based upon the existing coverage
315
levels of the public safety communications system of the jurisdiction at the exterior of the
building. This section shall not require improvement of the existing public safety
communications system. Emergency responder radio coverage systems shall be installed in
accordance with Section 510 and Appendix J.
Add Section 510.1.1 as follows:
510.1.1 Obstruction by new buildings. When in the opinion of the fire code official, a new
structure obstructs the line of sight emergency radio communications to existing buildings or to
any other locations, the developer of the structure shall provide and install the radio
retransmission equipment necessary to restore communications capabilities. The equipment shall
be located in an approved space or area within the new structure.
16.40.160 BUILDING SERVICE AND FEATURES
16.40.180 Electrical Equipment, Wiring and Hazards.
Add Section 605.11 to read:
605.11 Immersion Heaters. All electrical immersion heaters used in dip tanks, sinks, vats
and similar operations shall be provided with approved over-temperature controls and low liquid
level electrical disconnects. Manual reset of required protection devices shall be provided.
16.40.190 Stationary Storage Battery Systems.
Add Section 608.6.4 to read:
608.6.4 Failure of Ventilation System. Failure of the ventilation system shall automatically
disengage the charging system.
16.40.195 Decorative Vegetation in New and Existing Buildings.
Amend Section 806.1.1 as follows:
806.1.1 Display inside buildings. The display of Christmas trees and other decorative
vegetation in new and existing buildings shall be in accordance with the California Code of
Regulations, Title 19, Division 1, §3.08 and Sections 806.1 through 806.5.
Exceptions: Deleted
316
16.40.200 FIRE PROTECTION SYSTEMS
16.40.210 Automatic Sprinkler Systems.
Amend Section 903.2 to read:
903.2 Where required. Approved automatic sprinkler systems in new and existing buildings
and structures shall be provided in the locations described in this Section or in Sections 903.2.1
through 903.2.18 whichever is the more restrictive.
For the purposes of this section, firewalls used to separate building areas shall be constructed in
accordance with the California Building Code and shall be without openings or penetrations.
1.An automatic sprinkler system shall be provided throughout all new buildings and structures.
Exception:
1.Group A, B, E, F, I, L, M, S and U occupancy buildings and structures that do not exceed
1,000 square feet of building area and that are not located in the Wildland-Urban
Interface Fire Area.
2.Group A, B, E, F, I, L, M, S and U occupancy buildings and structures that are located in
the Wildland-Urban Interface Fire Area and do not exceed 500 square feet of building
area.
2.An automatic sprinkler system shall be provided throughout existing buildings and structures
when alterations or additions are made that create conditions described in Sections 903.2.1
through 903.2.18.
3.An automatic sprinkler system shall be provided throughout existing buildings and structures,
when additions are made that increase the building area to more than 3,600 square feet.
Exception:
One or more additions made to a building after January 1, 2011 that do not total more than
1000 square feet of building area.
4.An automatic sprinkler system shall be provided throughout all new basements regardless of
size and throughout existing basements that are expanded by more than 50%.
Amend Section 903.3.1.1 to read:
903.3.1.1 NFPA 13 sprinkler systems. Where the provisions of this code require that a
building or portion thereof be equipped throughout with an automatic sprinkler system in
accordance with this section, sprinklers shall be installed throughout in accordance with NFPA
13 except as provided in Section 903.3.1.1.1 and local standards.
1. For new buildings having no designated use or tenant, the minimum sprinkler design density
shall be Ordinary Hazard Group 2.
317
Amend Section 903.3.1.2 to read:
903.3.1.2 NFPA 13R sprinkler systems. Where allowed in buildings of Group R, up to and
including four stories in height, automatic sprinkler systems shall be installed throughout in
accordance with NFPA 13R and local standards.
Amend Section 903.3.1.3 to read:
903.3.1.3 NFPA 13D sprinkler systems. Where allowed, automatic sprinkler systems
installed in one-and two-family dwellings and townhouses shall be installed throughout in
accordance with NFPA 13D and local standards.
Amend Section 912.2 to read:
912.2 Location. With respect to hydrants, driveways, buildings and landscaping, fire
department connections shall be so located that fire apparatus and hose connected to supply the
system will not obstruct access to the building for other fire apparatus. The location of fire
department connections shall be approved by the fire code official.
318
16.40.220 FIRE SAFETY DURING CONSTRUCTION AND DEMOLITION
16.40.225 Precautions Against Fire.
Add Section 1404.8 to read:
1404.8 Fire Walls. When firewalls are required, the wall construction shall be completed
(with all openings protected) immediately after the building is sufficiently weather-protected at
the location of the wall(s).
16.40.230 Means of Egress.
Amend Section 1411.1 as follows:
1411.1 Stairways Required. Each level above the first story in new multi-story buildings that
require two exit stairways shall be provided with at least two usable exit stairways after the floor
decking is installed. The stairways shall be continuous and discharge to grade level. Stairways
serving more than two floor levels shall be enclosed (with openings adequately protected) after
exterior walls/windows are in place. Exit stairs in new and in existing, occupied buildings shall
be lighted and maintained clear of debris and construction materials at all times.
Exception:
For new multi-story buildings, one of the required exit stairs may be obstructed on not more than
two contiguous floor levels for the purposes of stairway construction (i.e., installation of gypsum
board, painting, flooring, etc.).
Add Section 1411.1.1 to read:
Section 1411.1.1 Required Means Of Egress. All new buildings under construction shall
have at least one unobstructed means of egress. All means of egress shall be identified in the
prefire plan. See Section 1408.2.
16.40.240 SEMICONDUCTOR FABRICATION FACILITIES
16.40.250 Definitions.
Amend the following definition to read:
CONTINUOUS GAS DETECTION SYSTEM. An approved gas detection system where
the analytical instrument is maintained in continuous operation and sampling is performed
without interruption. Analysis is allowed to be performed on a cyclical basis at intervals not to
exceed 30 minutes. In occupied areas where air is re-circulated and not exhausted to a treatment
system (e.g. breathing zone), the Chief may require a cyclical basis at intervals not to exceed 5
319
minutes. The gas detection system shall be able to detect the presence of a gas at or below the
permissible exposure limit in occupiable areas and at or below ½ IDLH (or 0.05 LC 50 if no
established IDLH) in unoccupiable areas.
Delete Definition: Workstation.
LUMBER YARDS AND WOOD WORKING FACILITIES
16.40.260 Storage of Wood Chips and Hogged Material Associated with Timber and
Lumber Production Facilities.
Add Section 1907.6 to read:
1907.6 Fire Protection Water Supply System. An approved fire protection water supply
and hydrant system suitable for the fire hazard involved shall be provided for open storage yards
and processing areas. Hydrant systems shall be installed in accordance with NFPA 24.
16.40.270 Storage and Processing of Wood Chips, Hogged Materials, Fines, Compost and
Raw Product Associated with Yard Waste and Recycling Facilities.
Add Section 1908.11 to read:
1908.11 Fire Protection Water Supply System. An approved fire protection water supply
and hydrant system suitable for the fire hazard involved shall be provided for open storage yards
and processing areas. Hydrant systems shall be installed in accordance with NFPA 24.
320
16.40.290 HAZARDOUS MATERIALS
16.40.300 General.
Amend Section 2701.2.2.2 to read:
2701.2.2.2 Health Hazards The material categories listed in this section are classified as
health hazards. A material with a primary classification as a health hazard can also pose a
physical hazard.
1.Highly toxic, toxic and moderately toxic.
2.Corrosive materials.
3.Other health hazards including carcinogens, irritants and sensitizers.
16.40.310 Definitions.
Amend the following definition to read:
SECONDARY CONTAINMENT. Secondary containment is that level of containment that is
external to and separate from primary containment and is capable of safely and securely containing
the material, without discharge, for a period of time reasonably necessary to ensure detection and
remedy of the primary containment failure.
16.40.320 General Requirements.
Add Section 2703.1.3.1 to read:
2703.1.3.1 Toxic, Highly Toxic, Moderately Toxic Gases and Similarly Used or Handled
Materials.The storage, use and handling oftoxic, highly toxic and moderately toxic gases in
amounts exceeding Table 3704.2 or 3704.3 shall be in accordance with this chapter and Chapter
37. Any toxic, highly toxic or moderately toxic material that is used or handled as a gas or vapor
shall be in accordance with the requirements for toxic, highly toxic or moderately toxic gases.
Add Section 2703.1.5 to read:
2703.1.5 Other Health Hazards Including Carcinogens, Irritants and Sensitizers. The
storage, use and handling ofmaterials classified as other health hazards including carcinogens,
irritants and sensitizers in amounts exceeding 810 cubic feet for gases, 55 gallons for liquids and
5,000 pounds for solids shall be in accordance with this Section 2703.
Add Section 2703.1.6 to read:
2703.1.6 Secondary Containment Requirements. A containment system shall be required
for all hazardous materials, which are liquids or solids at normal temperature, and pressure
(NTP) where a spill is determined to be a plausible event and where such an event would
321
endanger people, property or the environment. Construction shall be substantial, capable of
safely and securely containing a sudden release without discharge. Design criteria shall be
performance oriented and constructed of physically and chemically compatible materials to resist
degradation and provide structural and functional integrity for a period of time reasonably
necessary to ensure detection, mitigation, and repair of the primary system. Regardless of
quantities, secondary containment for outdoor storage areas shall also comply with Section
2704.2.2.4. Monitoring of secondary containment shall be accordance with Section 2704.2.2.5.
Amend Sec. 2703.2.2.1 to read:
2703.2.2.1 Design and Construction. Piping, tubing, valves, fittings and related components
used for hazardous materials shall be in accordance with the following:
1.Piping, tubing, valves, fittings and related components shall be designed and fabricated from
materials compatible with the material to be contained and shall be of adequate strength and
durability to withstand the pressure, structural and seismic stress, and exposure to which they
are subject.
2.Piping and tubing shall be identified in accordance with ASME A13.1 and Santa Clara
County Fire Chiefs Marking Requirements and Guidelines for Hazardous Materials and
Hazardous Waste to indicate the material conveyed.
3.Readily accessible manual valves or automatic remotely activated fail-safe emergency
shutoff valves shall be installed on supply piping and tubing at the following locations:
1.The point of use.
2.The tank, cylinder or bulk use.
4.Manual emergency shutoff valves and controls for remotely activated emergency shutoff
valves shall be identified and the location shall be clearly visible accessible and indicated by
means of a sign.
5.Backflow prevention or check valves shall be provided when the backflow of hazardous
materials could create a hazardous condition or cause the unauthorized discharge of
hazardous materials.
6.Where gases or liquids having a hazard ranking of:
Health hazard Class 3 or 4
Flammability Class 4
Reactivity Class 4
in accordance with NFPA 704 are carried in pressurized piping above 15 pounds per square
inch gauge (psig)(103 Kpa), an approved means of leak detection, emergency shutoff and
excess flow control shall be provided. Where the piping originates from within a hazardous
material storage room or area, the excess flow control shall be located within the storage
room or area. Where the piping originates from a bulk source, the excess flow control shall
be located as close to the bulk source as practical.
Exception:
1.Piping for inlet connections designed to prevent backflow.
2.Piping for pressure relief devices.
7.Secondary containment or equivalent protection from spills shall be provided for piping for
liquid hazardous materials and for highly toxic and toxic corrosive gases above threshold
322
quantities listed in Tables 3704.2 and 3704.3. Secondary containment includes, but is not
limited to double walled piping.
Exception:
1.Secondary containment is not required for toxic corrosive gases if the piping is
constructed of inert materials.
2.Piping under sub-atmospheric conditions if the piping is equipped with an alarm and fail-
safe-to-close valve activated by a loss of vacuum.
8.Expansion chambers shall be provided between valves whenever the regulated gas may be
subjected to thermal expansion. Chambers shall be sized to provide protection for piping and
instrumentation and to accommodate the expansion of regulated materials.
Amend Section 2703.2.2.2 to read:
2703.2.2.2 Additional Regulation for Supply Piping for Health Hazard Materials. Supply
piping and tubing for gases and liquids having a health hazard ranking of 3 or 4 shall be in
accordance with ASME B31.3 and the following:
1.Piping and tubing utilized for the transmission of toxic, highly toxic, or highly volatile
corrosive liquids and gases shall have welded or brazed connections throughout except for
connections within an exhausted enclosure if the material is a gas, or an approved method of
drainage or containment is provided for connections if the material is a liquid.
2.Piping and tubing shall not be located within corridors, within any portion of a means of
egress required to be enclosed in fire-resistance-rated construction or in concealed spaces in
areas not classified as Group H Occupancies.
Exception:
Piping and tubing within the space defined by the walls of corridors and the floor or roof
above or in concealed space above other occupancies when installed in accordance with
Section 415.8.6.3 of the California Building Code as required for Group H, Division 5
Occupancies.
3.All primary piping for toxic, highly toxic and moderately toxic gases shall pass a helium leak
test of 1x10-9 cubic centimeters/second where practical, or shall pass testing in accordance
with an approved, nationally recognized standard. Tests shall be conducted by a qualified
"third party" not involved with the construction of the piping and control systems.
Amend Section 2703.3.1 as follows:
2703.3.1 Unauthorized Discharges. When hazardous materials are released in quantities
reportable under state, federal or local regulations or when there is release or a threatened release
that presents a threat to health, property or the environment, the fire code official shall be
notified immediately in an approved mannerand the following procedures required in
accordance with Sections 2703.3.1.1 through 2703.3.1.4.
Add Sec. 2703.5.2 to read:
323
2703.5.2 Ventilation Ducting. Product conveying ducts for venting hazardous materials
operations shall be labeled with the hazard class of the material being vented and the direction of
flow.
Add Sec. 2703.5.3 to read:
2703.5.3 "H" Occupancies. In "H" occupancies, all piping and tubing may be required to be
identified when there is any possibility of confusion with hazardous materials transport tubing or
piping. Flow direction indicators are required.
Amend Section 2703.9.8 to read:
2703.9.8 Separation of Incompatible Materials. Incompatible materials in storage and
storage of materials that are incompatible with materials in use shall be separated. When the
stored materials are in containers having a capacity of more than 5 pounds (2 kg) or 0,5 gallon (2
L), separation shall be accomplished by:
1.Segregating incompatible materials in storage by a distance of not less than 20 feet (6096
mm) and in an independent containment system.
2.Isolating incompatible materials in storage by a noncombustible partition extending not less
than 18 inches (457 mm) above and to the sides of the stored material.
3.Storing liquid and solid materials in hazardous material storage cabinets.
4.Storing compressed gases in gas cabinets or exhausted enclosures in accordance with
Sections 2703.8.5 and 2703.8.6. Materials that are incompatible shall not be stored within
the same cabinet or exhausted enclosure.
Add Sec. 2703.9.11 to read:
2703.9.11 Fire Extinguishing Systems For Workstations Dispensing, Handling or Using
Hazardous Materials. Combustible and non-combustible workstations, which dispense, handle
or use hazardous materials, shall be protected by an approved automatic fire extinguishing
system in accordance with Section 1803.10.
Exception:
Internal fire protection is not required for Biological Safety Cabinets that carry NSF/ANSI
certification where quantities of flammable liquids in use or storage within the cabinet do not
exceed 500ml.
16.40.330 Storage.
Amend Section 2704.2.1 as follows:
2704.2.1 Spill Control for Hazardous Material Liquids. Rooms, buildings or areas used
for storage of hazardous material liquids shall be provided with spill control to prevent the flow
of liquids to adjoining areas. Floors in indoor locations and similar surfaces in outdoor locations
shall be constructed to contain a spill from the largest single vessel by one of the following
methods:
324
1.Liquid-tight sloped or recessed floors in indoor locations or similar areas in outdoor
locations.
2.Liquid-tight floors in indoor locations or similar areas provided with liquid-tight raised or
recessed sills or dikes.
3.Sumps and collection systems.
4.Other approved engineered systems.
Except for surfacing, the floors, sills, dikes, sumps and collection systems shall be constructed of
noncombustible material, and the liquid-tight seal shall be compatible with the material stored.
When liquid-tight sills or dikes are provided, they are not required at perimeter openings having
an open-grate trench across the opening that connects to an approved collection system.
Amend Section 2704.2.2 as follows:
2704.2.2 Secondary Containment for Hazardous Material Liquids and Solids. Buildings,
rooms or areas used for the storage of hazardous materials liquids or solids shall be provided
with secondary containment in accordance with this section.
Delete Table: 2704.2.2 REQUIRED SECONDARY CONTAINMENT FOR HAZARDOUS
MATERIAL SOLIDS AND LIQUIDS STORAGE
16.40.340 Use, Dispensing and Handling.
Amend Sec. 2705.4.4 to read:
2705.4.4 Emergency Alarm. When hazardous materials having a hazard ranking of 3 or 4 in
accordance with NFPA 704, or toxic gases exceeding 10 cu. ft. and any amount of highly toxic
compressed gases are transported through corridors or exit enclosures, there shall be an
emergency telephone system, a local manual alarm station or an approved alarm-initiating device
at not more than 150-foot (45,720 mm) intervals and at each exit and exit-access doorway
throughout the transport route. The signal shall be relayed to an approved central, proprietary or
remote station service or constantly attended on-site location and shall also initiate a local
audible alarm.
16.40.350 CORROSIVE MATERIALS
16.40.360 Definitions.
Add the following definition to read:
CORROSIVE LIQUID. Corrosive liquid is a liquid which, when in contact with living tissue,
will cause destruction or irreversible alteration of such tissue by chemical action. Examples include
acidic, alkaline or caustic materials. Such material will be considered corrosive when the Ph is 2 or
less or 12.5 or more, except for foodstuffs or medicine. Included are Department of Transportation
and Title 22, California Code of Regulations, 66261.22 classed corrosives.
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16.40.370 Explosives and Fireworks.
Amend Section 3301.1 to read:
3301.1 Scope. For explosives requirements see California Code of Regulations, Title 19,
Division 1, Chapter 10 and Section 3301.2 of this Chapter. For fireworks requirements see
California Code of Regulations, Title 19, Division 1, Chapter 6 and Section 3301.3 of this
Chapter. For small arms ammunition, see Section 3301.5 of this chapter.
Exception:
1.The armed Forces of the United States, Coast Guard or National Guard.
2.Explosives in forms prescribed by the official United States Pharmacopoeia.
3.The use of explosive materials by federal, state and local regulatory, law enforcement and
fire agencies acting in their official capacities.
4.Items preempted by federal regulations.
Add Section 3301.2 is to read:
3301.2 Explosives. The possession, manufacture, storage, sale, handling, and use of
explosives are prohibited.
Add Section 3301.3 is to read:
3301.3 Fireworks. The possession, manufacture, storage, sale, handling, and use of
fireworks, including those fireworks classified as Safe and Sane by the California State Fire
Marshal, are prohibited.
Exception:
1. Storage, handling and use of fireworks and pyrotechnic special effects outside of buildings
when used for public or proximate audience displays, motion picture, television, theatrical
and group entertainment productions and when in accordance with Title 19 of the California
Code of Regulations.
2. Storage, handling and use of pyrotechnic special effects fireworks inside of buildings when
used for proximate audience displays or special effects in theatrical, television, motion
picture and group entertainment productions when in accordance with Title 19 of the
California Code of Regulations and when in buildings equipped throughout with an approved
fire sprinkler system.
Add Section 3301.4 is to read:
3301.4 Rocketry. The storage, handling, and use of model rockets shall be in accordance
with Title 19 of the California Code of Regulations and as approved by the Fire Code Official.
Add Sections 3301.5 through 3301.5.3.2.3 to read:
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3301.5 Small Arms Ammunition-General. Indoor storage and display of black powder,
smokeless propellants and small arms ammunition shall comply with Sections 3301.5.1 through
3301.5.4.2.3.
3301.5.1 Packages. Smokeless propellants shall be stored in approved shipping containers
conforming to DOTn 49 CFR, Part 173.
3301.5.1.1 Repackaging. The bulk repackaging of smokeless
propellants, black powder and small arms primers shall not
be performed in retail establishments.
3301.5.1.2 Damaged packages. Damaged containers shall not be repackaged.
Exception:
Approved repackaging of damaged containers of smokeless propellant into containers of the
same type and size as the original container.
3301.5.2 Storage in Group R occupancies. The storage of small arms ammunition in Group
R occupancies shall comply with Sections 3301.5.2.1 through 3301.5.2.3.
3301.5.2.1 Smokeless propellants. Smokeless propellants intended for personal use in
quantities not exceeding 20 pounds (9 kg) are permitted to be stored in Group R-3 occupancies
where kept in original containers. Smokeless powder in quantities exceeding 20 pounds (9 kg)
but not exceeding 50 pounds (23 kg) are permitted to be stored in Group R-3 occupancies where
kept in a wooden box or cabinet having walls of at least 1 inch (25 mm) nominal thickness.
3301.5.2.2 Black powder. Black powder intended for personal use in quantities not
exceeding 20 pounds (9 kg) are permitted to be stored in Group R-3 occupancies where kept in
original containers and stored in a wooden box or cabinet having walls of at least 1 inch (25 mm)
nominal thickness
3301.5.2.3 Small arms primers. No more than 10,000 small arms primers shall be stored in
Group R-3 occupancies.
3301.5.3 Display and storage in Group M occupancies. The display and storage of small
arms ammunition in Group M occupancies shall comply with Sections 3301.5.3.1 through
3301.5.3.2.3.
3301.5.3.1 Display. The display of small arms ammunition in Group M occupancies shall
comply with Sections 3301.5.3.1.1 through 3301.5.3.1.3.
3301.5.3.1.1 Smokeless propellant. No more than 20 pounds (9 kg) of smokeless
propellants, each in containers of 1 pound (0.454 kg) or less capacity, shall be displayed in
Group M occupancies.
3301.5.3.1.2 Black powder. No more than 1 pound (0.454 kg) of black powder shall be
displayed in Group M occupancies.
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3301.5.3.1.3 Small arms primers. No more than 10,000 small arms primers shall be
displayed in Group M occupancies.
3301.5.3.2 Storage. The storageof small arms ammunition in Group M occupancies shall
comply with Sections 3301.5.3.2.1 through 3301.5.3.2.3.
3301.5.3.2.1 Storage of Smokeless propellant. Commercial stocks of smokeless propellants
not on display shall not exceed 100 pounds (45 kg). Quantities exceeding 20 pounds (9 kg), but
not exceeding 100 pounds (45 kg) shall be stored in portable wooden boxes having walls of at
least 1 inch (25 mm) nominal thickness.
3301.5.3.2.2 Black powder. Commercial stocks of black powder not on display shall not
exceed 50 pounds (23 kg) and shall be stored in a type 4 indoor magazine. When black powder
and smokeless propellants are stored together in the same magazine, the total quantity shall not
exceed that permitted for black powder.
3301.5.3.2.3 Small arms primers. Commercial stocks of small arms primers not on display
shall not exceed 750,000. Storage shall be arranged such that not more than 100,000 small arms
primers are stored in any one pile and piles are at least 15 feet (4572 mm) apart.
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16.40.380 FLAMMABLE AND COMBUSTIBLE LIQUIDS
16.40.390 Storage.
Amend section 3404.2.7.5.8 to read:
3404.2.7.5.8Overfill Prevention. An approved means or method in accordance with Section
3404.2.9.6.6 shall be provided to prevent the overfill of all Class I, II and IIIA liquid storage
tanks. Storage tanks in refineries, bulk plants or terminals regulated by Sections 3406.4 or
3406.7 shall have overfill protection in accordance with API 2350.
An approved means or method in accordance with Section 3404.2.9.7.6 shall be provided to
prevent the overfilling of Class IIIB liquid storage tanks connected to fuel-burning equipment
inside buildings.
Exception Deleted
Add section 3404.2.7.5.9 to read:
3404.2.7.5.9 Automatic Filling of Tanks. Systems that automatically fill flammable or
combustible liquid tanks shall be equipped with overfill protection, approved by the fire code
official, that sends an alarm signal to a constantly attended location and immediately stops the
filling of the tank. The alarm signal and automatic shutoff shall be tested on an annual basis and
records of such testing shall be maintained on-site for a period of five (5) years.
329
16.40.400 HIGHLY TOXIC AND TOXIC MATERIALS
16.40.410 General.
Add Sec. 3701.3 to read:
3701.3 Moderately Toxic Gases With a LC50 Equal To Or Less Than 3000 Parts Per
Million. Notwithstanding the hazard class definition in Section 3702, moderately toxic gases
with an LC50 less than 3000 parts per million shall additionally comply with the requirements
for toxic gases in Section 3704 of this code.
16.40.420 Definitions.
The following definitions are added to read:
MODERATELY TOXIC GAS. Moderately toxic gas is a chemical or substance that has a
median lethal concentration (LC50) in air more than 2000 parts per million but not more than
5000 parts per million by volume of gas or vapor, when administered by continuous inhalation
for an hour, or less if death occurs within one hour, to albino rats weighing between 200 and 300
grams each.
MAXIMUM THRESHOLD QUANTITY (MAX TQ). Maximum Threshold Quantity (Max
TQ) is the maximum quantity of a moderately toxic or toxic gas, which may be stored in a single
vessel before a more stringent category of regulation is applied. The following equation shall be
used to calculate the Max TQ:
Max TQ (pounds) = LC50 (ppm) x 2 lb.
For gas mixtures containing one or more toxic, highly toxic or moderately toxic components,
the LC50 shall be calculated using CGA Standards P-20 and P-23 as referenced in Appendix E,
Section 103.1.3.1.
16.40.430 Highly Toxic, Toxic and Moderately Toxic Compressed Gases including those
used as Refrigerants.
Add Sec. 3704.1.4 to read:
3704.1.4Automatic Shut-Off Valve. An automatic shut-off valve, which is of a fail-safe to
close design, shall be provided to shut off the supply of highly toxic gases for any of the
following:
1.Activation of a manual fire alarm system.
2.Activation of the gas detection system.
3.Failure of emergency power.
4.Failure of primary containment.
5.Seismic activity.
6.Failure of required ventilation.
330
7.Manual activation at an approved remote location.
Add Sec. 3704.1.5 to read:
3704.1.5 Emergency Control Station. Signals from emergency equipment used for highly
toxic gases shall be transmitted to an emergency control station or other approved monitoring
station, which is continually staffed by trained personnel.
Add Sec. 3704.1.6 to read:
3704.1.6 Maximum Threshold Quantity. Toxic gases stored or used in quantities exceeding
the maximum threshold quantity in a single vessel per control area or outdoor control area shall
comply with the additional requirements for highly toxic gases of Section 3704 of this code.
Moderately toxic gases stored or used in quantities exceeding the maximum threshold
quantity in a single vessel per control area or outdoor control area shall comply with the
additional requirements for toxic gases of Section 3704 of this code
Add Section 3704.1.7 to read:
3704.1.7 Reduced Flow Valve. All containers of materials other than lecture bottles
containing Highly Toxic material and having a vapor pressure exceeding 29 psia shall be
equipped with a reduced flow valve when available. If a reduced flow valve is not available, the
container shall be used with a flow-limiting device. All flow limiting devices shall be part of the
valve assembly and visible to the eye when possible; otherwise, they shall be installed as close as
possible to the cylinder source.
Add Section 3704.1.8 to read:
3704.1.8 Annual Maintenance. All safety control systems at a facility shall be maintained in
good working condition and tested not less frequently than annually. Maintenance and testing
shall be performed by persons qualified to perform the maintenance and tests. Maintenance
records and certifications shall be available to any representative of the Fire Department for
inspection upon request.
Add Section 3704.1.9 to read:
3704.1.9 Fire Extinguishing Systems. Buildings and covered exterior areas for storage and
use areas of materials regulated by this Chapter shall be protected by an automatic fire sprinkler
system in accordance with NFPA 13. The design of the sprinkler system for any room or area
where highly toxic, toxic and moderately toxic gases are stored, handled or used shall be in
accordance with Section 2704.5.
Add Section 3704.1.10 to read:
3704.1.10 Local Gas Shut Off. Manual activation controls shall be provided at locations near
the point of use and near the source, as approved by the fire code official.The fire code official
331
may require additional controls at other places, including, but not limited to, the entry to the
building, storage or use areas, and emergency control stations.
Manual activated shut-off valves shall be of a fail-safe-to-close design.
Add Section 3704.1.11 to read:
3704.1.11 Exhaust Ventilation Monitoring. For highly toxic gases and toxic gases
exceeding threshold quantities, a continuous monitoring system shall be provided to assure that
the required exhaust ventilation rate is maintained. The monitoring system shall initiate a local
alarm. The alarm shall be both visual and audible and shall be designed to provide warning both
inside and outside of the interior storage, use, or handling area.
Add Section 3704.1.12 to read:
3704.1.12 Emergency Response Plan. If the preparation of an emergency response plan for
the facility is not required by any other law, responsible persons shall prepare, or cause to be
prepared, and filed with the fire code official, a written emergency response plan. If the
preparation of an emergency response plan is required by other law, a responsible person shall
file a copy of the plan with the Fire Chief.
Add Section 3704.1.13 to read:
3704.1.13 Emergency Response Team. Responsible persons shall be designated the on-site
emergency response team and trained to be liaison personnel for the Fire Department. These
persons shall aid the Fire Department in preplanning emergency responses, identifying locations
where regulated materials are stored, handled and used, and be familiar with the chemical nature
of such material. An adequate number of personnel for each work shift shall be designated.
Add Section 3704.1.14 to read:
3704.1.14 Emergency Drills. Emergency drills of the on-site emergency response team shall
be conducted on a regular basis but not less than once every three months. Records of drills
conducted shall be maintained.
Add section 3704.1.15 to read:
3704.1.15 Cylinder Leak Testing. Cylinders shall be tested for leaks immediately upon
delivery and again immediately prior to departure. Testing shall be approved by the fire code
official in accordance with appropriate nationally recognized industry standards and practices, if
any. Appropriate remedial action shall be immediately undertaken when leaks are detected
Add Sec. 3704.1.16to read:
3704.1.16 Inert Gas Purge System. Gas systems shall be provided with dedicated inert gas
purge systems. A dedicated inert gas purge system may be used to purge more than one gas,
provided the gases are compatible. Purge gas systems inside buildings shall be located in an
approved gas cabinet unless the system operates by vacuum demand.
332
Add Sec. 3704.1.17 to read:
3704.1.17Seismic Shutoff Valve. An automatic seismic shut-off valve, which is of a fail-safe
to close design, shall be provided to shutoff the supply of highly toxic, toxic and moderately
toxic gases with an LC less than 3000 parts per million upon a seismic event within 5 seconds
50
2
of a horizontal sinusoidal oscillation having a peak acceleration of 0.3G (1.47m/sec) and a
period of 0.4 seconds.
Amend Section 3704.2 to read:
3704.2 Indoor Storage and Use. The indoor storage or use of highly toxic, toxic and
moderately toxic compressed gases shall be in accordance with Sections 3704.2.1 through
3704.2.2.10.3.3. The threshold quantity for highly toxic, toxic and moderately toxic gases for
indoor storage and use are set forth in Table 3704.2.
Add Table 3704.2 to read:
Threshold Quantities for Highly Toxic, Toxic and Moderately Toxic Gases
for Indoor Storage and Use
Highly Toxic 0
Toxic10 cubic feet
Moderately Toxic 20 cubic feet
Amend Section 3704.2.1 to read:
3704.2.1 Applicability. The applicability of regulations governing the indoor storage and use
of highly toxic, toxic, and moderately toxic compressed gases shall be as set forth in Sections
3704.2.1.1 through 3704.2.1.3.
Amend Sec. 3704.2.1.1 to read:
3704.2.1.1 Quantities Not Exceeding the Maximum Allowable Quantity per Control
Area.The indoor storage or use of highly toxic, toxic and moderately toxic gases in amounts
exceeding the maximum allowable quantity per control area set forth in Table 3704.2 shall be in
accordance with Sections 2701, 2703, 3701, 3704.1 and 3704.2,
Amend Sec. 3704.2.2 to read:
3704.2.2 General Indoor Requirements. The general requirements applicable to the indoor
storage and use of highly toxic and toxic compressed gases shall be in accordance with Sections
3704.2.2.1 through 3704.2.2.10.3.
Moderately toxic gases with an LC less than 3000 parts per million shall comply with the
50
requirements for toxic gases in Sections 3704.2.2.1 through 3704.2.2.10.3
All other moderately toxic gases exceeding the threshold quantity shall comply with the
requirements for toxic gases in Sections 3704.2.2.1 through 3704.2.2.7.
333
Amend Sec. 3704.2.2.7 to read:
3704.2.2.7 Treatment Systems. The exhaust ventilation from gas cabinets, exhausted
enclosures, gas rooms and local exhaust systems required in Section 3704.2.2.4 and 3704.2.2.5
shall be directed to a treatment system. The treatment system shall be utilized to handle the
accidental release of gas and to process exhaust ventilation. The treatment system shall be
designed in accordance with Sections 3704.2.2.7.1 through 3704.2.2.7.5 and Section 505 of the
California Mechanical Code.
Exception:
1.Highly toxic, toxic and moderately toxic gases storage. A treatment system is not required
for cylinders, containers and tanks in storage when all of the following are provided:
1.1.Valve outlets are equipped with gas-tight outlet plug or caps.
1.2.Hand wheel-operated valves have handles secured to prevent movement.
1.3.Approved containment vessels or containment systems are provided in accordance with
Section 3704.2.2.3.
Amend 3704.2.2.10.1 to read:
3704.2.2.10.1. Alarms. The gas detection system shall initiate a local alarm and transmit a
signal to a constantly attended control station when a short-term hazard condition is detected.
The alarm shall be both visual and audible and shall provide warning both inside and outside the
area where the gas is detected. The audible alarm shall be distinct from all other alarms.
Exception Deleted
Amend Section 3704.3 to read:
3704.3 Outdoor Storage and Use. The outdoor storage or use of highly toxic, toxic and
moderately toxic compressed gases shall be in accordance with Sections 3704.3.1 through
3704.3.4. The threshold quantity for highly toxic, toxic and moderately toxic gases for outdoor
storage and use are set forth in Table 3704.3.
Add Table 3704.3 to read:
Threshold Quantities for Highly Toxic, Toxic and Moderately Toxic Gases
for Outdoor Storage and Use
Highly Toxic 0
Toxic10 cubic feet
Moderately Toxic 20 cubic feet
Amend Section 3704.3.1 to read:
3704.3.1 Applicability. The applicability of regulations governing the outdoor storage and
use of highly toxic, toxic, and moderately toxic compressed gases shall be as set forth in Sections
3704.3.1.1 through 3704.3.1.3.
334
Amend Section 3704.3.1.1
3704.3.1.1 Quantities Not Exceeding the Maximum Allowable Quantity per Control
Area. The outdoor storage or use of highly toxic and toxic gases in amounts exceeding the
threshold quantity per control area set forth in Table 3704.3 shall be in accordance with Sections
2701, 2703, 3701, 3704.1, and 3704.3.
Moderately toxic gases with an LC50 less than 3000 parts per million in amounts exceeding
the threshold quantity in Table 3704.3 shall comply with the requirements for toxic gases in
Sections 2701, 2703, 3701, 3704.1 and 3704.3.
Moderately toxic gases in amounts exceeding the threshold quantity in Table 3704.3 shall
comply with the requirements for toxic gases in Sections 2701, 2703, 3701, 3704.1 and
3704.3.2.1 through 3704.3.2.5.
Amend Section 3704.3.3 to read:
3704.3.3 Outdoor Storage Weather Protection for Portable Tanks and Cylinders.
Weather protection in accordance with Section 2704.13 and this section shall be provided for
portable tanks and cylinders located outdoors and not within gas cabinets or exhausted
enclosures. The storage area shall be equipped with an approved automatic sprinkler system in
accordance with Section 2704.5.
Exceptions Deleted
335
16.40.440 Use.
Add Section 4105.3.1 to read:
4105.3.1 Silane distribution systems automatic shutdown. Silane distribution systems shall
automatically shut down at the source upon activation of the gas detection system at levels above
the alarm level and/or failure of the ventilation system for the silane distribution system.
REQUIREMENTS FOR WILDLAND-URBAN INTERFACE FIRE AREAS
Amend Section 4902 as follows:
16.40.460 Definitions.
Amend definition of Wildland-Urban Interface Fire Area as follows:
Wildland-Urban Interface Fire Area is a geographical area identified by the state as a “Fire
Hazard Severity Zone” in accordance with the Public Resources Code Sections 4201 through
4204 and Government Code Sections 51175 through 51189, or other areas designated by the
enforcing agency to be at a significant risk from wildfires. See Article 86B for the applicable
referenced sections of the Government Code and the Public Resources Code. The Wildland-
Urban Interface Fire Area shall be defined as all areas within the City of Cupertino as set forth
and delineated on the map entitled "Wildland-Urban Interface Fire Area” which map and all
notations, references, data and other information shown thereon are hereby adopted and made a
part of this chapter. The map properly attested, shall be on file in the Office of the City Clerk of
the City of Cupertino.
HAZARDOUS VEGETATION AND FUEL MANAGEMENT
16.40.475 Application.
Amend Section 4906.2 to read:
4906.2 Application. Buildings and structures located in the following areas shall maintain the
required hazardous vegetation and fuel management:
1. All unincorporated lands designated by the State Board of Forestry and Fire Protection as
State Responsibility Areas (SRA) including:
1.1. Moderate Fire Hazard Severity Zones
1.2. High Fire Hazard Severity Zones
1.3. Very-High Fire Hazard Severity Zones
2. Land designated as a Very-High Fire Hazard Severity Zone or as a Wildland Urban Interface
Fire Area by the City of Cupertino.
16.40.480 Defensible Space.
336
Amend Section 4907.1 to read:
4907.1 General. Defensible space will be maintained around all buildings and structures in
Sate Responsibility Area (SRA) as required in Public Resources Code 4290 and “SRA Fire Safe
Regulations” California Code of Regulations, Title 14, Division 1.5, Chapter 7, Subchapter 2,
Section 1270.
Buildings and structures within the Very-High Fire Hazard Severity Zones of a Local
Responsibility Area (LRA) shall maintain defensible space as outlined in Government Code
51175 – 51189 and any local ordinance of the authority having jurisdiction.
Persons owning, leasing, controlling, operating or maintaining buildings or structures in the
locally adopted Wildland-Urban Interface Fire Area but that are not within the Very-High Fire
Hazard Severity Zone and persons owning, leasing or controlling land adjacent to such buildings
or structures, shall at all times:
1.Maintain an effective defensible space by removing and clearing away flammable vegetation
and combustible growth from areas within 30 feet (9144 mm) of such buildings or structures.
Exception:
Single specimens of trees, ornamental shrubbery or similar plants used as ground covers,
provided that they do not form a means of rapidly transmitting fire from the native growth to
any structure.
2.Maintain additional effective defensible space by removing brush, flammable vegetation and
combustible growth located 30 feet to 100 feet (9144 mm to 30480 mm) when required by
the fire code official due to steepness of terrain or other conditions that would cause a
defensible space of only 30 feet (9144 mm) to be insufficient.
Exception:
Grass and other vegetation located more than 30 feet (9144 mm) from buildings or structures
and less than 18 inches (457 mm) in height above the ground need not be removed where
necessary to stabilize the soil and prevent erosion.
3.Remove portions of trees, which extend within 10 feet (3048 mm) of the outlet of a chimney.
4.Maintain trees adjacent to or overhanging a building free of deadwood; and
5. Maintain the roof of a structure free of leaves, needles or other dead vegetative growth.
Add Section 4907.2 to read:
4907.2 Corrective Actions. The executive body is authorized to instruct the fire code official
to give notice to the owner of the property upon which conditions regulated by Section 4907.1
exist to correct such conditions. If the owner fails to correct such conditions, the executive body
is authorized to cause the same to be done and make the expense of such correction a lien upon
the property where such condition exists.
337
16.40.485 Fire Protection Plan.
Add Section 4908 to read:
4908.1 General. When required by the code official, a fire protection plan shall be prepared.
4908.2 Content. The plan shall be based upon a site-specific wildfire risk assessment that
includes considerations of location, topography, aspect, flammable vegetation, climatic
conditions and fire history. The plan shall address water supply, access, building ignition and
fire-resistance factors, fire protection systems and equipment, defensible space and vegetation
management.
4908.3 Cost. The cost of fire protection plan preparation and review shall be the
responsibility of the applicant.
4908.4 Plan Retention. The fire protection plan shall be retained by the fire code official.
16.40.490 Access.
Add Section 4909 to read:
4909.1 General. Buildings and structures, or portions thereof, hereafter constructed or
relocated into or within the Wildland-Urban Interface Fire Area shall be provided with fire
apparatus access in accordance with Chapter 5 and Section 4909.2.
4909.2 Driveways. Driveways in excess of 150 feet (45 720 mm) in length shall be provided
with turnarounds. Driveways in excess of 200 feet (60 960 mm) in length and less than 20 feet
(6096 mm) in width shall be provided with turnouts in addition to turnarounds. An all-weather
surface shall be any surface material acceptable to the code official.
A driveway shall not serve in excess of two dwelling units.
Exception:
When such driveways meet the requirements for an access road in accordance with this chapter.
Driveway turnarounds shall be in accordance with Fire Department Standards. Driveways that
connect with a road or roads at more than one point may be considered as having a turnaround if
all changes of direction meet the radii requirements for driveway turnarounds.
Driveway turnouts shall be an all-weather road surface at least 10 feet (3048 mm) wide and
30 feet (9144 mm) long. Driveway turnouts shall be located as required by the code official.
Vehicle load limits shall be posted at both entrances to bridges on driveways and private
roads. Design loads for bridges shall be established by the code official.
338
16.40.500 Water Supply.
Add Section 4910 to read:
4910.1 General. Buildings and structures, or portions thereof, hereafter constructed or
relocated into or within the Wildland-Urban Interface Fire Area shall be provided with fire
protection water supplies in accordance with Chapter 5 and Sections 4910.2 and 4910.3.
Exception:
Buildings containing only private garages, carports, sheds and agricultural buildings with a
building area of not more than 500 square feet (56 m2).
4910.2 Clearance of Fuel. Defensible space shall be provided around water tank structures,
water supply pumps and pump houses in accordance with Section 4907.
4910.3 Standby Power. Stationary water supply facilities within the wildland-urban interface
area dependent on electrical power to meet adequate water supply demands shall provide standby
power systems in accordance with the Electrical Codeto ensure that an uninterrupted water
supply is maintained. The standby power source shall be capable of providing power for a
minimum of two hours.
Exception:
1. When approved by the code official, a standby power supply is not required where the
primary power service to the stationary water supply facility is underground.
2. A standby power supply is not required where the stationary water supply facility serves no
more than one single-family dwelling.
16.40.560 General Requirements For Suppression and Control.
Add Section 4911 to read:
4911.1 Scope. The provisions of this chapter establish general requirements applicable to new
and existing properties located within the Wildland-Urban Interface Fire Area.
4911.2 Clearance of Brush or Vegetative Growth From Roadways. The code official is
authorized to require areas within 10 feet (3048 mm) on each side of portions of fire apparatus
access roads and driveways to be cleared of non-fire-resistive vegetation growth.
Exception:
Single specimens of trees, ornamental vegetative fuels or cultivated ground cover, such as green
grass, ivy, succulents or similar plants used as ground cover, provided they do not form a means
of readily transmitting fire.
4911.3Access Restrictions
339
4911.3.1 Restricted Entry To Public Lands. The code official is authorized to determine
and publicly announce when the Wildland-Urban Interface Fire Area shall be closed to entry and
when such areas shall again be opened to entry. Entry on and occupation of the Wildland-Urban
Interface Fire Area, except public roadways, inhabited areas or established trails and campsites
that have not been closed during such time when the wildland-urban interface area is closed to
entry, is prohibited.
Exception:
1. Residents and owners of private property within the Wildland-Urban Interface Fire Area and
their invitees and guests going to or being on their lands.
2. Entry, in the course of duty, by peace or police officers, and other duly authorized public
officers, members of a fire department and members of the Wildland Firefighting Service.
4911.3.2 Use of Fire Roads and Defensible Space. Motorcycles, motor scooters and motor
vehicles shall not be driven or parked on, and trespassing is prohibited on, fire roads or
defensible space beyond the point where travel is restricted by a cable, gate or sign, without the
permission of the property owners. Vehicles shall not be parked in a manner that obstructs the
entrance to a fire road or defensible space.
Exception:
Public officers acting within their scope of duty. Radio and television aerials, guy wires thereto,
and other obstructions shall not be installed or maintained on fire roads or defensible spaces,
unless located 16 feet (4877 mm) or more above such fire road or defensible space.
4911.3.3 Use of Motorcycles, Motor Scooters, Ultra light Aircraft and Motor Vehicles.
Motorcycles, motor scooters, ultra light aircraft and motor vehicles shall not be operated within
the Wildland-Urban Interface Fire Area, without a permit by the code official, except on clearly
established public or private roads. Permission from the property owner shall be presented when
requesting a permit.
4911.3.4 Tampering with Locks, Barricades, Signs And Address Markers. Locks,
barricades, seals, cables, signs and address markers installed within the Wildland-Urban
Interface Fire Area, by or under the control of the code official, shall not be tampered with,
mutilated, destroyed or removed.
Gates, doors, barriers and locks installed by or under the control of the code official shall not be
unlocked.
16.40.650 Ignition Source Control.
Add Section 4912 to read:
4912.1 General. Ignition sources shall be in accordance with Section 4912.
4912.2 Clearance from Ignition Sources. Clearance between ignition sources and grass,
brush or other combustible materials shall be maintained a minimum of 30 feet (9144 mm).
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4912.3 Smoking. When required by the code official, signs shall be posted stating NO
SMOKING. No person shall smoke within 15 feet (4572 mm) of combustible materials or non-
fire-resistive vegetation.
Exception:
Places of habitation or in the boundaries of established smoking areas or campsites as designated
by the code official.
4912.4 Equipment and Devices Generating Heat, Sparks or Open Flames. Equipment and
devices generating heat, sparks or open flames capable of igniting nearby combustibles shall not
be used in the Wildland-Urban Interface Fire Area without a permit from the code official.
Exception:
Use of approved equipment in habitated premises or designated campsites that are a minimum of
30 feet (9144 mm) from grass-, grain-, brush- or forest-covered areas.
4912.5 Fireworks. Fireworks shall not be used or possessed in the Wildland-Urban Interface
Fire Area.
16.40.660 Outdoor Fires.
Add Section 4913 to read:
4913.1 General. No person shall build, ignite or maintain any outdoor fire of any kind for any
purpose in or on any Wildland-Urban Interface Fire Area, except by the authority of a written
permit from the code official.
Exception:
Outdoor fires within inhabited premises or designated campsites where such fires are in a
permanent barbecue, portable barbecue, outdoor fireplace or grill and are a minimum of 30 feet
(9144 mm) from any combustible material or non-fire-resistive vegetation.
4913.2 Permits. Permits outdoor fires shall incorporate such terms and conditions that will
reasonably safeguard public safety and property. Outdoor fires shall not be built, ignited or
maintained in Wildland Urban Interface Fire Areas under the following conditions:
1. When high winds are blowing,
2. When a person 17 years old or over is not present at all times to watch and tend such fire, or
3. When a public announcement is made that open burning is prohibited.
4913.3 Restrictions. No person shall use a permanent barbecue, portable barbecue, outdoor
fireplace or grill for the disposal of rubbish, trash or combustible waste material.
4913.4 Outdoor Fireplaces, Permanent Barbecues and Grills. Outdoor fireplaces,
permanent barbecues and grills shall not be built, installed or maintained in the Wildland-Urban
Interface Fire Area without approval of the Building or Fire Code Official.
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Outdoor fireplaces, permanent barbecues and grills shall be located a minimum of 30 feet
(9144 mm) from any combustible material or non-fire-resistive vegetation and shall be
maintained in good repair and in a safe condition at all times. Openings in such appliances shall
be provided with an approved spark arrestor, screen or door. For the purposes of this section,
ignition-resistant material shall not be considered to be combustible material.
Exception:
When approved by the Building or Fire Code Official, unprotected openings in barbecues and
grills necessary for proper functioning.
16.40.670 Liquified Petroleum Gas Installations.
Add Section 4914 to read:
4914.1 Vegetation Clearance around Tanks/Containers. Flammable vegetation shall be
cleared a minimum of 30 feet around liquefied petroleum gas tanks/containers.
16.40.680 Storage of Firewood and Combustible Materials.
Add Section 4915 to read:
4915.1 General. Firewood and combustible materials shall not be stored in unenclosed spaces
beneath buildings or structures, or on decks or under eaves, canopies or other projections or
overhangs. The storage of firewood and combustible material within the defensible space shall
be located a minimum of 30 feet (6096 mm) from structures and separated from the crown of
trees by a minimum horizontal distance of 15 feet (4572 mm).
4915.2 Storage for Off-Site Use. Firewood and combustible materials not for consumption
on the premises shall be stored as approved by the fire code official.
16.40.690 Dumping.
Add Section 4916 to read:
4916.1 Waste Material. Waste material shall not be placed, deposited or dumped in the
Wildland-Urban Interface Fire Area, or in, on or along trails, roadways or highways or against
structures in the Wildland-Urban Interface Fire Area.
Exception:
Approved public and approved private dumping areas.
4916.2 Ashes And Coals. Ashes and coals shall not be placed, deposited or dumped in or on
the Wildland-Urban Interface Fire Area.
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Exception:
1. In the hearth of an established fire pit, camp stove or fireplace.
2. In a noncombustible container with a tight fitting lid, which is kept or maintained in a safe
location not less than 10 feet (3048 mm) from non-fire-resistive vegetation or structures.
3. Where such ashes or coals are buried and covered with 1 foot (305 mm) of mineral earth not
less than 25 feet (7620 mm) from non-fire-resistive vegetation or structures.
16.40.700 Protection of Pumps and Water Storage Facilities.
Add Section 4917 to read:
4917.1 Clearance of Flammable Vegetation. Flammable vegetation shall be cleared a
minimum of 30 feet from water storage equipment and pumping facilities.
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The provisions of the 2010 California Energy Code and each and all of the regulations,
provisions, conditions and terms of the code is referred to as if fully set forth in this chapter, and
is by such reference adopted.
One (1) copy of the code therefore is on file in the office of the Building Official pursuant to
Health and Safety Code Section 18942 (d) (1) and are made available for public inspection.
344
The provisions of the 2010 California Green Building Standards Code and each and all of the
regulations, provisions, conditions and terms of the code is referred to as if fully set forth in this
chapter, and is by such reference adopted.
One (1) copy of the code therefore is on file in the office of the Building Official pursuant to
Health and Safety Code Section 18942 (d) (1) and are made available for public inspection.
No Appendix Chapters from the 2010 California Green Building Standards Code have been
adopted.
Notwithstanding the provisions of this code, refer to the adopted City of Cupertino’s Green
Building Ordinance for additional sustainability requirements.
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Section
16.80.010 Intent
16.80.020 Application of Provisions
16.80.030 Definitions
16.80.040 Placards
This chapter establishes standard placards to be used to indicate the condition of a structure
for continued occupancy. The chapter further authorizes the Building Official and his or her
authorized representatives to post the appropriate placard at each entry point to a building or
structure upon completion of a safety assessment.
The provisions of this chapter are applicable to all buildings and structures of all occupancies
regulated by the City of Cupertino. The Council may extend the provisions as necessary.
is a visual, non-destructive examination of a building or structure for the
purpose of determining the condition for continued occupancy.
The following are verbal descriptions of the official jurisdiction placards to be used to
designate the condition for continued occupancy of buildings or structures. Copies of actual
placards are attached in Exhibit A.
(1)is to be posted on any building or
structure wherein no apparent structural hazard has been found. This placard is not intended to
mean that there is no damage to the building or structure.
(2)is to be posted on each building or structure that has been damaged
wherein the damage has resulted in some form of restriction to the continued occupancy. The
individual who posts this placard will note in general terms the type of damage encountered and
will clearly and concisely note the restrictions on continued occupancy.
(3)is to be posted on each building or structure that has
been damaged such that continued occupancy poses a threat to life safety. Buildings or
structures posted with this placard shall not be entered under any circumstance except as
authorized in writing by the Building Official, or his or her authorized representative. Safety
assessment teams shall be authorized to enter these buildings at any time. This placard is not to
346
be used or considered as a demolition order. The individual who posts this placard will note in
general terms the type of damage encountered.
This ordinance number, the name of the jurisdiction, its address, and phone number shall be
permanently affixed to each placard.
Once it has been attached to a building or structure, a placard is not to be removed, altered or
covered until done so by an authorized representative of the Building Official. It shall be
unlawful for any person, firm or corporation to alter, remove, cover or deface a placard unless
authorized pursuant to this section.
347
348
INSPECTED
LAWFUL OCCUPANCY PERMITTED
349
RESTRICTED USE
A
EXHIBIT
350
UNSAFE
DO NOT ENTER OR OCCUPY
(THIS PLACARD IS NOT A DEMOLITION ORDER)
(Ord._______)
th
INTRODUCED at a regular meeting of the City Council of the City of Cupertino the 16 day of
November, 2010, and ENACTED at a regular meeting of the City Council of the City of Cupertino the
____ day of 2010, by the following vote:
Vote:Members of the City Council
Ayes:
Noes:
Absent:
Abstain:
ATTEST: APPROVED:
City Clerk Mayor, City of Cupertino
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AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
AMENDING CHAPTER 16 OF THE CUPERTINO MUNICIPAL CODE AND
ADOPTING THE 2010 CALIFORNIA BUILDING CODE STANDARDS
WITH APPENDICES AND AMENDMENTS THERETO
THE CITY COUNCIL OF THE CITY OF CUPERTINO HEREBY ORDAINS that they are
adopting the 2010 California Building Code Standards and amending Chapter 16 of the
Cupertino Municipal Code as follows:
Amend Chapter as specified:
Section
16.04.010 Code Adoption of California Building Code.
16.04.015 Adoption of Appendix Chapters.
16.04.020 Organization and enforcement.
16.04.030 Permits and inspections.
16.04.050 Address posting.
16.04.060 Installation of Spark Arrestors.
16.04.080 Roof Covering Classification.
16.04.110 Amending Section 1614, 1614.1 and 1614.3.
16.04.130 Other inspection fees – Table 1-A.
16.04.160 Penalty.
16.04.170Amending Section 1614, 1614.1 and 1614.1.7.
16.04.180Amending Section 1908.1 and adding Section 1908.1.17.
16.04.230Vertical combinations –Amendment.
16.04.340 Conventional Construction Provisions (Bracing) - Amendment.
16.04.350 Stability Coefficient Equation.
16.04.360 Concrete Isolated Footings.
16.04.370 Revise section 1908.1.8 ACI 318-08 section 22.10.1.
*For statutory provisions regarding the authority of cities to regulate the building, construction
and removal of buildings within the city, see Gov. Code § 38601; for other provisions
concerning the authority of cities in regulating buildings and construction, see Gov. Code §
38660; for the provisions of the State Housing Act, see Health and Safety Code § 17910 et seq.
Amend Section 16.04.010 to read:
The Building Code for the City shall be the 2007 Edition of the California Building Code,
Volumes 1 and 2 inclusive and Appendices which follow:
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The provisions of the 2010 California Building Code, Volumes 1 and 2 inclusive, and
Appendices which follow and each and all of the regulations, provisions, conditions and terms of
the code is referred to as if fully set forth in this chapter, and is by such reference adopted.
One (1) copy of each volume of the code therefore is on file in the office of the Building
Official pursuant to Health and Safety Code Section 18942 (d) (1) and are made available for
public inspection.
Add Section 16.04.015 Adoption of Appendix Chapters.
The following Appendix Chapters from the 2010 California Building Code are hereby
adopted.
A.C–U Buildings; Appendix C: Group U – Agricultural Buildings;
B.D–Fire Districts;
C.Amend D102.2.5 Roof Covering;
D.F–Rodentproofing; Appendix F: Rodentproofing;
E.G–Flood-Resistant Construction; Appendix G: Flood-Resistant Construction;
F.I–Patio Covers; Appendix I: Patio Covers;
G.2007 California Historical Building Code; California Code Part 8: 2010 California Historical
Building Code;
H.2007 California Existing Building Code; California Code Part 10: 2010 California Existing
Building Code
Findings: Appendix D is recommended to be removed from the Municipal Code since it is not
applicable in the City since an ordinance has never been adopted to create or establish a Fire
District. Section D102.2.5 Roof Covering is recommended to be relocated from the Building
Code section and added as amended in the Residential Code section of the Municipal Code.
Section 16.04.020 to remain unchanged.
Section 16.04.030 to remain unchanged.
Section 16.04.050 to remain unchanged.
Amend Section 16.04.060 as follows.
In new construction or when alterations, repairs or additions requiring a permit and having a
valuation in excess of one thousand dollars occur, all new and existing fireplace chimneys shall
terminate in a substantially constructed spark arrestor, having a mesh not exceeding one-half
inch. complying with the requirements of the 2010 California Residential Code Section
R1003.9.1.
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Findings: The construction requirements for spark arrestors are included in the 2010
California Residential Code \[Section R1003.9.1\] and therefore recommended to be referenced in
this section where the spark arrestor
Add Section 16.04.070 as follows:
Amend Section 707A.8 of the 2010 California Building Code as follows:
Delete “When required by the enforcing agency”
Delete Section 710A.3.2 of the 2010 California Building Code in its entirety.
Amend Section 710A.4 of the 2010 California Building Code as follows
Delete “When required by the enforcing agency”
Findings: The recommendation to remove “When required by the enforcing agency” will
eliminate the subjectivity that may be introduced if the verbiage were to remain.
Amend Section 16.04.080 to read:
Section 1505 of the 2007 California Building Code is amended to read:
Roof coverings on all buildings and structures hereafter erected or constructed in the City,
shall be fire-retardant, and shall comply with the standards established for Class A roofing. All
recovering or replacement roofs for existing buildings and structures shall comply the 2007
California Building Code Section 1510 and shall be fire-retardant, and comply with the standards
established for Class A roofing.
Except that a replacement or recovering of less than 10 percent of the total roof area shall be
exempt. This exception will not apply if recovering or replacement of 10 percent or more of the
existing roof is done in any three consecutive year period.
The 2007 California Building Code, Section 1501.1 Exception is deleted.
Precipitation, relative humidity, temperature and wind. These local climatic conditions affect
the acceleration, intensity and sizeof fire hazard of acommunity.
Times of little or no rainfall, of low humidity, high temperatures and the winds experienced in
this area can have a tremendous impact upon structure fires especially when buildings are close
proximity to one another.
Geographic and Topographic:
354
Seismic location. Seismically, the city has the San Andreas and Sargent
-Berocal faults
running through the lower foothills and the Monta Vista fault system closer to the valley floor
area. The Hayward fault is just northeast of the city which would have a major effect upon the
city if it were to rupture. Adding to this threat is the number of vehicles driven in the city is
steadily increasing with commuters driving to and through the city either to their homes,
shopping and/or places of employment. With so many vehicles on the road at any given time
during the day can play a major role on the response time of emergency services thus greatly
increasing the risk to property and life.
Local climatic, geographic and topographic conditions impact potential damage to all
structures from earthquake and subsequent fire.
Section 1505.1.3 of the 2010 California Building Code is amended to read:
The entire roof covering of every existing
structure where more than 50 percent of the total roof area is replaced within any one-year
period, the entire roof covering of every new structure, and any roof covering applied in the
alteration, repair or replacement of the roof of every existing structure, shall be a fire-retardant
roof covering that is at least Class A.
Section 1505.1.4.1 of the 2010 California Building Code is amended to read:
The entire roof
covering of every existing structure where more than 50 percent of the total roof area is replaced
within any one-year period, the entire roof covering of every new structure, and any roof
covering applied in the alteration, repair or replacement of the roof of every existing structure,
shall be a fire-retardant roof covering that is at least Class A.
Roofing requirement for structures located in a Wildland-Urban Interface Fire Area shall also
comply with Section 705A.
Section 16.04.110 to remain unchanged.
Section 16.04.130 to remain unchanged.
Section 16.04.160 to remain unchanged.
Repeal Section 16.04.170 in its entirety.
Findings: Section 16.04.170 is included in the 2010 California Building Code and no longer
needs to be a local amendment.
Section 16.04.180 to remain unchanged.
Repeal Section 16.04.230 in its entirety.
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Findings: Structural Amendments are based on an outdated model code and have changed due
to the adoption of the international code.
Amend Section 16.04.340 in its entirety as follow:
SECTION 2308.9.3 CONVENTIONAL CONSTRUCTION PROVISIONS (BRACING)
2007 CBC Section 2308.9.3, Items 5 & 7 are amended as follows.
Delete 2007 CBC Section 2309.9.3, Item 5 which allows the use of gypsum board.
Amend 2007 CBC Section 2308.9.3, Item 7 as follows:
Portland cement plaster on studs spaced 16 inches on center installed in accordance with Section
2510is limited to one-story structures of R-3 and U occupancies.
Delete CBC Section 2308.9.3, Item 5 which allows the use of gypsum board.
Amend CBC Section 2308.9.3, Item 7 as follows:
Portland cement plaster on studs spaced 16 inches on center installed in accordance with Section
2510 is limited to one-story structures of R-3 and U occupancies.
Add Section 16.04.350 in its entirety as follow:
Add Section 1613.8 to 2010 CBC Section 1613 and ASCE 7-05 Section 12.8.7 to read as
follows:
Modify ASCE 7, Section 12.8.7 by amending Equation
12.8-16 as follows:
PI
x
(12.8-16)
VhC
xsxd
Findings: The importance factor, I, was omitted from Equation 12.8-16 by mistake while
transcribing it from the 2003 NEHRP Recommended Provisions (FEMA 450) Equation 5.2-16.
For buildings with importance factor, I, higher than 1.0, the stability coefficient should include
the importance factor. The proposed modification is consistent with the provisions adopted by
DSA-SS and OSHPD as reflected in Section 1615.10.7 of the 2010 California Building Code. It
is also consistent with ASCE 7-10 Equation 12.8-16 that will be adopted in the next code cycle.
TUCC had supported the proposed modification during the 2007 code adoption process. This
356
proposed amendment is a continuation of an amendment adopted during the previous code
adoption cycle.
Add Section 16.04.360 in its entirety as follow:
Amend Section 1704.4 Exception #1 of the 2010 CBC to read as follows:
The
special inspections and verifications for concrete
construction shall be as required by this section and TABLE 1704.4.
Special inspections shall not be required for:
1.Isolated spread concrete footings of buildings three stories or less above grade plane that are
fully supported on earth or rock, where the structural design of the footing is based on a
specified compressive strength, f’c, no greater than 2,500 pound per square inch (psi) (17.2
Mpa).
Findings:Results from studies after the 1994 Northridge earthquake indicated that a lot of the
damages were attributed to lack of quality control during construction. The proposed
amendment improves quality control during construction and therefore needs to be incorporated
into the Code.
Revise CBC Section 1704.4 Exception #1 to allow special inspection not to be required for
isolated spread footing where the structural design of the footing is based on a specified
compressive strength, f’c, no greater than 2,500 psi.
This proposed amendment is a continuation of an amendment adopted during the previous code
adoption cycle.
Add Section 16.04.360 in its entirety as follow:
Amend entire section 1908.1.8 ACI 318 section 22.10 and replace with the following:
22.10 - Plain concrete in structures assigned to seismic design category C, D, E or F.
22.10.1- Structures assigned to Seismic Design Category C, D, E or F shall not have elements of
structural plain concrete, except as follows:
(a)Isolated footings of plain concrete supporting pedestals or columns are permitted, provided
the projection of the footing beyond the face of the supported member does not exceed the
footing thickness.
357
In detached one and two-family dwelling three stories or less in height, the projection of the
footing beyond the face of the supported member is permitted to exceed the footing
thickness.
(b)Plain concrete footing supporting walls are permitted, provided the footings have at least two
continuous longitudinal reinforcing bars. Bars shall not be smaller than No. 4 and shall have
a total area of not less than 0.002 times the gross cross-sectional area of the footing. A
minimum of one bar shall be provided at the top and bottom of the footing. Continuity of
reinforcement shall be provided at corners and intersections.
In detached one and two-family dwellings three stores or less in height and constructed with
stud bearing walls, plain concrete footings with at least two continuous longitudinal
reinforcing bars not smaller than No. 4 are permitted to have a total area of less than 0.002
times the gross cross –sectional area of the footing.
Findings: The proposed amendment addresses the problem of poor performance of plain or
under-reinforced concrete footings during a seismic event. This amendment reflects the
recommendations by the Structural Engineers Association of Southern California (SEAOSC) and
the Los Angeles City Joint Task Force that investigated the poor performance of plain and
under-reinforced concrete footings observed in 1994 Northridge earthquake.
358
Add this Chapter in its entirety.
Section
16.06.010 Code Adoption.
16.06.015 Adoption of Appendix Chapters.
16.06.050 Automatic Fire Sprinkler Systems.
16.06.060 Materials and Construction Methods for Exterior Wildfire Exposure.
16.06.070 Footings.
16.06.080 Roof Covering Classification.
16.06.090 Seismic Reinforcing.
16.06.100 Intermittent Brace Wall Panel Construction Methods.
The provisions of the 2010 California Residential Code and specified Appendices and each
and all of the regulations, provisions, conditions and terms of the code is referred to as if fully set
forth in this chapter, and is by such reference adopted.
One (1) copy of the code therefore is on file in the office of the Building Official pursuant to
Health and Safety Code Section 18942 (d) (1) and are made available for public inspection.
The following Appendix Chapters from the 2010 California Residential Code are hereby
adopted:
Appendix A: Sizing and Capacities of Gas Piping;
Appendix C: Exit Terminals of Mechanical Draft and Direct-Vent Venting Systems;
Appendix G: Swimming Pools, Spas and Hot Tubs;
Appendix H: Patio Covers;
Appendix J: Existing Building and Structures;
Appendix K: Sound Transmission;
Amend Section R313.1 to read:
An automatic residential fire
sprinkler system shall be installed in all new townhouses and in existing townhouses when
additions are made that increase the building area to more than 3,600 square feet.
359
One or more additions made to a building after January 1, 2011 that does not total more than
1000 square feet of building area.
Amend Section R313.2 to read:
An automatic
residential fire sprinkler system shall be installed in one- and two-family dwellings as follows:
1.In all new one- and two-family dwellings and in existing one- and two-family dwellings
when additions are made that increase the building area to more than 3,600 square feet.
One or more additions made to a building after January 1, 2011 that does not total more than
1000 square feet of building area.
2.In all new basements and in existing basements that are expanded.
Existing basements that are expanded by not more than 50%.
Amend Section R327.7.9 of as follows:
Delete “When required by the enforcing agency”
Delete Section R327.10.3.2 in its entirety:
Amend Section R327.10.4 of as follows:
Delete “When required by the enforcing agency”
Amend Section R403.1 to read:
All exterior walls shall be supported on continuous solid or fully grouted
masonry or concrete footings, or other approved structural systems which shall be of sufficient
design to accommodate all loads according to Section R301 and to transmit the resulting loads to
the soil within the limitations as determined from the character of the soil. Footings shall be
supported on undisturbed natural soils or engineered fill. Concrete footings shall be designed
and constructed in accordance with the provisions of Section R403 or in accordance with ACEI
332.
1-story 12 12 12 12
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2-story 15 12 12 12
3-story 23 17 12 12
1-story 12 12 12 12
2-story 21 16 12 12
3-story 32 24 16 12
1-story 16 12 12 12
2-story 29 21 14 12
3-story 42 32 21 16
For SI: 1 inch = 25.4 mm, 1 pound per square foot = 0.0479 kPa.
a.Where minimum footing width is 12 inches, use of a single wythe of solid or fully grouted 12-inch
nominal concrete masonry units is permitted.
Amend Section R403.1.1 to read:
Minimum sizes for concrete and masonry footings shall be as set
forth in Table R403.1 and Figure 403.1(1). The footing width, W, shall be based on the load-
bearing value of the soil in accordance with Table R401.4.1. Spread footings shall be at least 6
inches (152 mm) in thickness, T. Footing projection, P, shall be at least 2 inches (51 mm) and
shall not exceed the thickness of the footing. The size of footings supporting piers and columns
shall be based on the tributary load and allowable soil pressure in accordance with Table
R401.4.1. Footings for wood foundations shall be in accordance with the details set forth in
Section R403.2, and Figures R403.1(2) and R403.1(3).
Delete Figure R403.1(2) and Figure R403.1(3).
Delete Section R403.2 in its entirety.
Amend Section R902.1.3 to read:
The entire roof covering of every existing
structure where more than 50 percent of the total roof area is replaced within any one-year
period, the entire roof covering of every new structure, and any roof covering applied in the
alteration, repair or replacement of the roof of every existing structure, shall be a fire-retardant
roof covering that is at least Class C A.
Amend Section R902.1.4 to read:
The entire
roof covering of every existing structure where more than 50 percent of the total roof area is
replaced within any one-year period, the entire roof covering of every new structure, and any
roof covering applied in the alteration, repair or replacement of the roof of every existing
structure, shall be a fire-retardant roof covering that is at least Class C A.
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Roofing requirement for structures located in a Wildland-Urban Interface Fire Area shall also
comply with Section R327.5.
Amend Section R403.1.3 by adding wording to the first sentence of the first paragraph to specify
the minimum amount of longitudinal reinforcing, and by deleting the portion of the Exception to
this section that allows the use of plain concrete footings without longitudinal reinforcement, to
read:
Concrete footings located in Seismic Design Categories D0,
D1 and D2, as established in Table R301.2(1), shall have minimum reinforcement of at least two
continuous longitudinal reinforcing bars not smaller than No. 4 bars. Bottom reinforcement shall
be located a minimum of 3 inches (76 mm) clear from the bottom of the footing.
In Seismic Design Categories D0, D1 and D2 where a construction joint is created between a
concrete footing and a stem wall, a minimum of one No. 4 bar shall be installed at not more than
4 feet (1219 mm) on center. The vertical bar shall extend to 3 inches (76 mm) clear of the bottom
of the footing, have a standard hook and extend a minimum of 14 inches (357 mm) into the stem
wall.
In Seismic Design Categories D0, D1 and D2 where a grouted masonry stem wall is
supported on a concrete footing and stem wall, a minimum of one No. 4 bar shall be installed at
not more than 4 feet (1219 mm) on center. The vertical bar shall extend to 3 inches (76 mm)
clear of the bottom of the footing and have a standard hook.
In Seismic Design Categories D0, D1 and D2 masonry stem walls without solid grout and
vertical reinforcing are not permitted.
In detached one- and two-family dwellingswhich are three stories or less in height and
constructed with stud bearing walls, isolated plain concrete footings supporting columns or
pedestals are permitted.
Findings:This proposed amendment to the CRC is made to be consistent with TUCC
amendment 3 that modifies the plain concrete provisions in CBC Section 1908.1,8 and ACI 318
Section 22.10.1.
This proposed amendment addresses the problem of poor performance of plain or under-
reinforced concrete footings during a seismic event. This amendment reflects the
recommendations by the Structural Engineers Association of Southern California (SEAOSC) and
the Los Angeles City Joint Task Force that investigated the poor performance of plain and
under-reinforced concrete footings observed in 1994 Northridge earthquake.
362
Amend CRC Table R602.10.1.2(2), to add a new footnote “d” to the end of CRC Table
R602.10.1.2(2), to read:
d. In Seismic Design Categories D, D, and D, Method GB is not permitted and the use of
012
Method PCP is limited to one-story single family dwellings and accessory structures.
Add the “d” footnote notation in the title of Table R602.10.1.2(2) after the three footnotes
currently shown, to read:
Add a new subsection R602.10.2.1.1, to read:
. In Seismic Design Categories D, D, and
01
D, Method GB is not permitted for use as intermittent braced wall panels, but gypsum board is
2
permitted to be installed when required by this Section to be placed on the opposite side of the
studs from other types of braced wall panel sheathing. In Seismic Design Categories D, D,
01
and D, the use of Method PCP is limited to one-story single family dwellings and accessory
2
structures.
Findings:The proposed amendment addresses the problem of poor performance of gypsum
wallboard and Portland cement plaster as wall bracing materials in high seismic areas. This
amendment reflects the recommendations by the Structural Engineers Association of Southern
California (SEAOSC) and the Los Angeles City Joint Task Force that investigated the poor
performance of these bracing materials that were observed in 1994 Northridge earthquake.
363
Amend Chapter as specified:
Section
16.12.010 Purpose Code Adoption.
16.12.020 Required.
16.12.030 Report Requirements.
16.12.040 Preparation.
16.12.050 Approval of Report.
16.12.060 Conditions of Building Permit.
16.12.070 Appeals.
* For statutory provisions requiring cities to enact an ordinance which makes necessary a
preliminary soil report of every subdivision, see Health and Safety Code §§ 17953-17957.
Amend Section 16.12.010 to read:
The ordinance codified in this chapter is enacted pursuant to the provisions of Section 17953
through 17957 of the Health and Safety Code of the state, relating to housing, and reaffirms the
requirements of an approved soils report as a condition to the issuance of a building permit.
Amend Section 16.12.020 to read:
A soils report, as described in Section 17953 of the California Health and Safety Code, shall
be required of every subdivision as defined in the Subdivision Map Act of the State of California
(commencing at Section 66401 of the California Government Code) and shall also be required as
a condition precedent to the issuance of any building permit for any structure to be built on any
lot or subdivision.
Said soils report may be waived by the Building Official or if the Public Works Director
determines that due to the knowledge such department has as to the soil qualities of the soil of
the subdivision or lot, no analysis is necessary.
Section 16.12.030 to remain unchanged.
Section 16.12.040 to remain unchanged.
Section 16.12.050 to remain unchanged.
Amend Section 16.12.060 to read:
364
No building permit shall be issued for the construction of any building or structure on any lot
or subdivision subject to this chapter unless or until an approved preliminary soil report has been
filed first with the Building Official and City Engineer; or said report has been waived pursuant
to the provisions of this chapter or, the corrective action, if any, has been assured.
Section 16.12.070 to remain unchanged.
365
Amend Chapter as specified:
Section
16.16.010 Code Adoption of 2007 California Electrical Code and Uniform Administrative Code
Provisions (except Table 3-A).
16.16.015 Adoption of Appendix Chapters.
16.16.020 Article 100 Amended - Definitions.
16.16.025 Electrical Work.
16.16.030 Electrical Fee Schedule.
16.16.040 Interpretation.
16.16.050 Electrical Maintenance Program.
16.16.070 Penalty.
16.16.120 Solar photovoltaic systems –Amendment.
16.16.130 Fuel cell systems –Amendment.
Amend Section 16.16.010 to read:
CodeAdoption of 2007 California Electrical Code and Uniform Administrative Code
Provisions (except Table 3-A).
The provisions of the 2007 2010 California Electrical Code and each and all of the
regulations, provisions, conditions and terms of the code (one copy of which has been filed for
use and examination by the public in the office of the Building Department) is referred to as if
fully set forth in this chapter, and is by such reference adopted.
One (1) copy of the code therefore is on file in the office of the Building Official pursuant to
Health and Safety Code Section 18942 (d) (1) and are made available for public inspection.
Add Section 16.16.015 to read:
No Appendix Chapters from the 2010 California Electrical Code have been adopted.
Section 16.16.020 through 16.16.070 to remain unchanged.
Repeal Section 16.16.120 and Section 16.16.130 in its entirety.
Findings: These two sections, Article 690 and Article 692 of the National Electrical Code, is
included in the 2010 California Electrical code and therefore makes these sections redundant
and recommended for removal.
366
Amend Chapter as specified:
Section
16.20.010 Code Adoption Adopted by Reference.
16.20.015 Adoption of Appendix Chapters.
16.20.020 Name Insertion.
16.20.030 Amendments.
16.20.080 Condensate Disposals.
16.20.090 Appendix chapters.
16.20.100 Penalty.
16.20.110 Schedule of Fees.
16.20.120 Board of Appeals.
Amend Section 16.20.010 to read:
That certain code entitled “International Association of Plumbing Officials Uniform
Plumbing Code, 2007 Edition” one copy of which is on file in the office of the Building
Department for use and examination by the public, excepting those provisions noted in this
chapter, is adopted by reference.
The provisions of the 2010 California Plumbing Code and each and all of the regulations,
provisions, conditions and terms of the code is referred to as if fully set forth in this chapter, and
is by such reference adopted.
One (1) copy of the code therefore is on file in the office of the Building Official pursuant to
Health and Safety Code Section 18942 (d) (1) and are made available for public inspection.
Add Section 16.20.015 to read:
The following Appendix Chapters from the 2010 California Plumbing Code are hereby
adopted:
Appendix A: Rules for Sizing the Water Supply System;
Appendix B: Explanatory Notes on Combination Waste and Vent Systems;
Appendix D: Sizing Storm Water Drainage Systems;
Appendix G: Graywater Systems;
Appendix I: Installation Standards;
Appendix K: Private Sewage Disposal Systems;
Appendix L: Alternate Plumbing Systems;
367
Section 16.20.020 to remain unchanged.
Repeal Section 16.20.030 in its entirety.
Findings: PEX piping requirements are included in the 2010 California Plumbing Code and
therefore no longer needs to be referenced in the Municipal Code.
Section 16.20.080 to remain unchanged.
Repeal Section 16.20.090 in its entirety.
Findings: This section was relocated to 16.20.015.
Section 16.20.100 to remain unchanged.
Section 16.20.110 to remain unchanged.
Section 16.20.120 to remain unchanged.
368
Amend Chapter as specified:
Section
16.24.010 Code Adoption Adopted by reference.
16.24.015 Adoption of Appendix Chapters.
16.24.020 Name Insertion.
16.24.030 Condensate Wastes.
16.24.060 Board of Appeals.
16.24.070 Table No. 1-A – Mechanical Permit Fees Amended.
16.24.080 Violation - Penalty.
Amend Section 16.24.010 to read:
That certain code entitled “California Mechanical Code 2007 Edition” as compiled and
published by the International Conference of Building Officials, one copy of which is on file in
the office of the Building Department for use and examination by the public, excepting those
provisions noted in this chapter, is adopted by reference.
The provisions of the 2010 California Mechanical Code and each and all of the regulations,
provisions, conditions and terms of the code is referred to as if fully set forth in this chapter, and
is by such reference adopted.
One (1) copy of the code therefore is on file in the office of the Building Official pursuant to
Health and Safety Code Section 18942 (d) (1) and are made available for public inspection.
Add Section 16.24.015 to read:
No Appendix Chapters from the 2010 California Mechanical Code have been adopted.
Section 16.24.020 to remain unchanged.
Section 16.24.030 to remain unchanged.
Section 16.24.060 to remain unchanged.
Section 16.24.070 to remain unchanged.
Section 16.24.080 to remain unchanged.
369
Amend Chapter as specified:
CHAPTER 16.40: FIRE CODE ADOPTED
Section
16.40.010 Code Adoption of the2007 California Fire Code and 2006 International Fire Code.
16.04.015 Adoption of Appendix Chapters.
16.40.020 Administration
16.40.030 Establishment of limits of districts in which the storage of stationary tanks of
flammable cryogenic fluids are to be prohibited.
16.40.040 Establishment of limits of districts in which storage of Class I and II liquids in
outside aboveground tanks is prohibited.
16.40.050 Establishment of limits of districts in which storage of Class I and II liquids in
aboveground tanks is prohibited.
16.40.060 Establishment of limits in which storage of liquefied petroleum gases is prohibited.
16.40.065 Permits.
16.40.070 Definitions.
16.40.080 General Precautions Against Fire.
16.40.090 Emergency Planning and Preparedness.
16.40.100 Use and Occupancy – Related Requirements.
16.40.110 FIRE SERVICE FEATURES
16.40.120 Fire Apparatus Access Roads.
16.40.130 Access to Buildings and Roofs.
16.40.140 HAZARDS TO FIREFIGHTERS
16.40.150 Emergency Responder Radio Coverage.
16.40.160 BUILDING SERVICE AND FEATURES
16.40.170Fuel Fired Appliances.
16.40.180 Electrical Equipment, Wiring and Hazards.
16.40.190 Stationary Storage Battery Systems.
16.40.195 Decorative Vegetation in New and Existing Buildings.
16.40.200 FIRE PROTECTION SYSTEMS
16.40.210 Automatic Sprinkler Systems.
16.40.220 FIRE SAFETY DURING CONSTRUCTION AND DEMOLITION
16.40.225 Precautions Against Fire.
16.40.230 Section 1411: Means of Egress.
16.40.240 SEMICONDUCTOR FABRICATION FACILITIES
16.40.250 Definitions.
16.40.260 Storage of Wood Chips and Hogged Material Associated with Timber and Lumber
Production Facilities.
16.40.270 Storage and Processing of Wood Chips, Hogged Materials, Fines, Compost and Raw
Product Associated with Yard Waste and Recycling Facilities.
16.40.280Tire rebuilding and storage.
16.40.290 HAZARDOUS MATERIALS
16.40.300 General.
16.40.310 Definitions.
16.40.320 General Requirements.
370
16.40.330 Storage.
16.40.340 Use, Dispensing and Handling.
16.40.350 CORROSIVE MATERIALS
16.40.360 Section 3102: Definitions.
16.40.370 Explosives and Fireworks.
16.40.380 FLAMMABLE AND COMBUSTIBLE LIQUIDS
16.40.390 Storage.
16.40.400 HIGHLY TOXIC AND TOXIC MATERIALS
16.40.410 General.
16.40.420 Definitions.
16.40.430 Highly Toxic, Toxic and Moderately Toxic Compressed Gases including those used
as Refrigerants.
16.40.440 Use.
16.40.460 Definitions.
16.40.470Fire protection plan.
16.40.475 Application.
16.40.480 Defensible Space.
16.40.490 Access.
16.40.500 Water Supply.
16.40.550Automatic fire sprinkler systems.
16.40.560 General Requirements For Suppression and Control.
16.40.570Permits.
16.40.580Section 105.1.5: Occupational permit fees.
16.40.590Section 105.6.8: Compressed gases.
16.40.600Section 105.6.10: Cryogenic fluids.
16.40.610Table 105.6.20.
16.40.620Section 105.6.48: Day care facility.
16.40.630Section 105.6.49: Institutional.
16.40.640Section 106.5: Final Inspection.
16.40.650 Ignition Source Control.
16.40.660 Outdoor Fires.
16.40.670 Liquified Petroleum Gas Installations.
16.40.680 Storage of Firewood and Combustible Materials.
16.40.690 Dumping.
16.40.700 Protection of Pumps and Water Storage Facilities.
371
Amend Section 16.40.010 to read:
16.40.010 Code Adoption of the 2007 California Fire Code and 2006 International Fire
Code.
There is hereby adopted by the City of Cupertino for the purpose of prescribing regulations
governing conditions hazardous to life and property from fire or explosion, that certain code
known as the 2007 California Fire Code and also the 2006 International Fire Code, including
Appendix Chapters 1, 4, B and C 2010 California Fire Code and also the 2009 International Fire
Code, including Appendix Chapters B, C and J and the whole thereof, save and except such
portions as are hereinafter deleted, modified or amended by this ordinance, of which one copy
has been filed for use and examination by the public in the office of the City Building Official
and the City Fire Chief and the same adopted and incorporated as fully as if set out at length
herein, and from the date on which this ordinance shall take effect, the provision thereof shall be
controlling within the limits of the City of Cupertino.
Add Section 16.40.015 to read:
16.40.015 Adoption of Appendix Chapters.
The following Appendix Chapters from the 2010 California Fire Code are hereby adopted.
Appendix B: Fire-Flow Requirement for Buildings.
Appendix C: Fire Hydrant Locations and Distribution.
Appendix J: Emergency Responder Radio Coverage.
Fix grammatical errors for Section 16.40.020 to read:
16.40.020 Administration.
Section 101.3.1 is added to read as follows:
101.3.1 Administration. The City Manager, through the powers vested by the City Council,
shall have the authority to delegate any and all responsibility for the maintenance and
enforcement of the provisions of this Code to whichever legal entity he feels best serves the
interests of the City.
Wherever the words “Chief,”“Fire Marshal, “fire code official,”“Fire Department,” “Fire
Prevention Bureau,” “Fire Chief,” “Chief”, “Fire Marshal”, “fire code official”, “Fire
Department”, “Fire Prevention Bureau”, “Fire Chief” and other such similar words are used, they
shall mean and refer to such legal entity designated by the City Manager of Cupertino under the
authority of the City Council of Cupertino.
Wherever the words “municipality,” “jurisdiction,” “municipality”, “jurisdiction” or “city”
are used, they shall mean the City of Cupertino.
Wherever the words “Executive Body” are used, they shall mean the City Council of
372
Cupertino.
Wherever the words “Administrator” or “Executive” are used, they shall mean the City
Manager of Cupertino.
Wherever the words “District Attorney” or “Corporation Counsel” are used, they shall mean
the City Attorney of Cupertino.
Wherever the words “Board of Appeal” are used, they shall mean the City Council of
Cupertino or the body appointed by the Council to pass on matters pertaining to fire safety.
Amend Section 16.40.030 to read:
16.40.030 Establishment of limits of districts in which the storage of stationary tanks of
flammable cryogenic fluids are to be prohibited.
The limits referred to in Section 3204.3.1.1 3506.2 of the California Fire Code in which the
storage of flammable cryogenic fluids in stationary containers is prohibited are hereby
established as all locations of the City of Cupertino which are residential and congested
commercial areas as determined by the fire code official.
Keep Section 16.40.040 to read (unchanged):
16.40.040 Establishment of limits of districts in which storage of Class I and II liquids in
outside aboveground tanks is prohibited.
The limits referred to in Section 3404.2.9.6.1 of the California Fire Code, in which the storage
of flammable or combustible liquids in aboveground tanks is prohibited are hereby established as
all locations of the City of Cupertino that are residential or congested commercial areas as
determined by the fire code official.
(Ord. ________)
Keep Section 16.40.050 to read (unchanged):
16.40.050 Establishment of limits of districts in which storage of Class I and II liquids in
aboveground tanks is prohibited.
The limits referred to in Section 3406.2.4.4 of the California Fire Code, in which the storage
of flammable or combustible liquids in aboveground tanks is prohibited are hereby established as
all locations of the City of Cupertino that are residential or other locations as determined by the
fire code official.
Keep Section 16.40.060 to read (unchanged):
373
16.40.060 Establishment of limits in which storage of liquefied petroleum gases is
prohibited.
The limits referred to in Section 3804.2 of the California Fire Code, in which storage of
liquefied petroleum gas is restricted, are hereby established as all locations of the City of
Cupertino that are residential or congested commercial areas.
Exception:
LPG may be used for industrial operations or when natural gas would not provide a viable
substitute for LPG. Portable containers for temporary heating and/or cooking uses may be
permitted if stored and handled in accordance with this code. Facilities in commercial areas for
refueling portable or mobile LGP containers may be approved by the fire code official on a case
by case basis.
Add Section 16.40.065 to read:
16.40.065 Permits.
Section 105.1.4 is added to read as follows:
105.1.4 Construction permit fees. Construction permit fees and plan review fees for fire
hydrant systems, fire extinguishing systems and fire alarm systems shall be paid to the Santa
Clara County Fire Department in accordance with the following table based on valuation. The
valuation shall be limited to the value of the system for which the permit is being issued. Plan
review fees are 65% of the Permit Fee amount. For the purposes of determining the total fee
amount for each permit, the plan review fee shall be added to the Permit Fee.
TOTALPERMIT FEE
VALUATIONS
$1.00 TO $500.00 $23.50
$501.00 TO $23.50 for the first $500.00 plus $3.05 for
$2,000.00each additional $100.00, or fraction thereof,
to and including $2,000.00
$2001.00 TO $69.25 for the first $2,000.00 plus $14.00 for
$25,000.00each additional $1,000.00 or fraction thereof,
to and including $25,000.00
$25,001.00 TO $391.25 for the first $25,000.00 plus $10.10
$50,000.00for each additional $1,000.00, or fraction
thereof, to and including $50,000.00
$50,001.00 TO $643.75 for the first $50,000.00 plus $7.00 for
374
$100,000.00each additional $1,000.00, or fraction thereof,
to and including $100,000.00
$100,001.00 to $993.75 for the first $100,000.00 plus $5.60
$500,000.00for each additional $1,000.00, or fraction
thereof, to and including $500,000.00
$500,001 to $3,233.75 for the first $500,000.00 plus $4.75
$1,000,000.00for each additional $1,000.00, or fraction
thereof, to and including $1,000,000.00
$1,000,001 and up $5,608.75 for the first $1,000,000.00 plus
$3.15 for each additional $1,000.00, or
fraction thereof
Additional re-inspections, in connection with the permits above, are
to be paid at $30.00 for each occurrence at the discretion of the fire
code official.
Section 105.1.5 is added to read as follows:
105.1.5 Operational permit fees. Operational permit fees shall be paid to the Santa Clara
County Fire Department as follows:
FACILITY TYPE PERMIT FEE
1. Institutional
A.Over 50 persons $100.00 – Annually
B. More than 6 persons $75.00 – Annually
2. Day Care Facilities
More than 6 clients $35.00 – Annually
3. Places of Assembly
A. 50-300 persons $50.00 - Annually
B. Over 300 persons $85.00 - Annually
4. Temporary Membrane $85.00 - Annually
Structures, Tents and
Canopies (Only those
requiring permits in
accordance with Section
375
105.6.43).
Section 105.6.8 is amended to read as follows:
105.6.8 Compressed Gases. An operational permit is required for the storage, use or
handling at normal temperature and pressure (NPT) of compressed gases in excess of the
amounts listed in Table 105.6.8, to install any piped distribution system for compressed gases, or
to install a non-flammable medical gas manifold system. A permit is required to install, repair,
abandon, remove, place temporarily out of service, close or substantially modify a compressed
gas system.
Exception:
1. Vehicles equipped for and using compressed gas as a fuel for propelling the vehicle.
2. Routine maintenance.
3. For emergency repair work performed on an emergency basis, application for permit shall be
made within two working days of commencement of work.
4. Inert and simple asphyxiants at or below the amounts listed in Table 105-A.
The permit applicant shall apply for approval to close storage, use or handling facilities at
least 30 days prior to the termination of the storage, use or handling of compressed or liquefied
gases. Such application shall include any change or alteration of the facility closure plan. This
30-day period may be waived by the chief if there are special circumstances requiring such
waiver.
376
Amend Table 105.6.8 to read:
TABLE 105.6.8
1
PERMIT AMOUNTS FOR COMPRESSED GASES
2
TYPE OFGAS AMOUNT(cubic feet)
3
X 0.0283 for m
Corrosive 200
Flammable (except cryogenic and liquefied petroleum 200
gases)
Highly toxic Any amount
Inert and simple asphyxiant 6,000
Irritant 200
Moderately toxic 20
Other health hazards 650
Oxidizing (including oxygen) 504
Pyrophoric Any amount
Radioactive Any amount
Sensitizer 200
Toxic Any Amount
Unstable (reactive) Any amount
1
Refer to Chapters 27, 30, 32, 35, 37, 40 and 41 for additional requirements and exceptions.
2
Cubic feet measured at normal Temperature and pressure.
Section 105.6.10 is amended to read as follows:
105.6.10 Cryogenic fluids. An operational permit is required to produce, store transport on
site, use, handle or dispense cryogenic fluids in excess of the amounts listed in Table 105.6.10 or
to install a cryogenic vessel or piping system for the storage or distribution of cryogens.
Exception:
Permits are not required for vehicles equipped for and using cryogenic fluids as a fuel for
propelling the vehicle or for refrigerating the lading.
377
Table 105.6.20 is amended to read as follows:
TABLE 105.6.20 PERMIT AMOUNTS FOR HAZARDOUS
MATERIALS
TYPE OF MATERIAL AMOUNT
Combustible Liquids: See Section 105.6.16
Corrosive Materials:
GasesSee Section 105.6.8
Liquids55 gallons
Solids 500 pounds
Cryogens: See Section105.6.10
Explosive Materials: See Section 105.6.14
Flammable Materials:
GasesSee Section 105.6.8
LiquidsSee Section 105.6.16
Solids 10 pounds
Highly Toxic Materials:
GasesAny amount
LiquidsAny amount
SolidsAny amount
Moderately Toxic Materials: 20 Cubic Feet
Organic Peroxides:
Liquids: Class I-IV Any Amount
Liquids: Class V No Permit Required
Solids: Class I-IV Any Amount
378
Solids: Class V No Permit Required
Oxidizing Materials:
Gases504 Cubic Feet
LiquidsAny amount
Solids Any amount
Pyrophoric Materials:
Any amount
Gases
LiquidsAny amount
Solids Any amount
Toxic Materials:
GasesAny amount
LiquidsAny amount
Solids Any amount
Unstable (Reactive) Materials:
GasesAny amount
LiquidsAny amount
Solids Any amount
Water Reactive Materials:
LiquidsAny amount
Solids Any amount
For SI: 1 gallon = 3.785 L, 1 pound = 0.454 kg.
a.20 gallons when Table 2703.1.1(1) Note k applies and hazard identification signs in accordance with Section
2703.5 are provided for quantities of 20 gallons or less.
b.200 pounds when Table 2703.1.1(1) Note k applies and hazard identification signs in accordance with Section
2703.5 are provided for quantities of 200 gallons or less.
Section 105.6.48 is added to read as follows:
379
105.6.48 Day Care Facility. An operational permit is required to operate a business as a day
care facility for more than 6 people.
Section 105.6.49 is added to read as follows:
105.6.49 Institutional. A permit is required to operate, maintain, or use any institutional
type occupancy. For the purpose of this Section, an institution shall be, but is not limited to:
hospitals, children’s home, home or institution for insane or mentally retarded persons, home or
institution for the care of aged or senile persons, sanitarium, nursing or convalescent home,
certified family care homes, residential care homes for the elderly, out of home placement
facilities, halfway house, and day care nurseries or similar facility of any capacity.
Section 106.5 is added to read as follows:
106.5 Final Inspection. No final inspection as to all or any portion of a development shall be
deemed completed until the installation of the required fire protection facilities and access ways
have been completed and approved. No final certificate of occupancy may be granted until the
Fire Department issues notice of final clearance of such fire protection facilities and access ways
to the Building Department.
Delete Section 109.3: Violation penalties
Amend Section 16.40.070 to read:
16.40.070 Definitions.
The following definitions are added:
CARCINOGEN is a substance that causes the development of cancerous growths in living
tissue. A chemical is considered a carcinogen if:
1.It has been evaluated by the International Agency for Research on Cancer and found to be a
carcinogen or potential carcinogen, or
2.It is listed as a carcinogen or potential carcinogen in the latest edition of the Annual Report
on Carcinogens published by the National Toxicology program, or
3.It is regulated by OSHA as a carcinogen.
DEVICE. Device is, for the purpose of Exhibit "A", an appliance or piece of equipment that
plays an active part in the proper functioning of the regulated systems. Examples include, but are
not limited to the following: smoke detectors, heat detectors, flame detectors, manual pull stations,
horns, alarms, bells, warning lights, hydrants, risers, FDCs, standpipes, strobes, control panels,
transponders, and other such equipment used to detect, transmit, initiate, annunciate, alarm, or
respond according to the system design criteria.
OTHER HEALTH HAZARD MATERIAL is a hazardous material which affects target
organs of the body, including but not limited to, those materials which produce liver damage,
380
kidney damage, damage to the nervous system, act on the blood to decrease hemoglobin function,
deprive the body tissue of oxygen or affect reproductive capabilities, including mutations
(chromosomal damage) or teratogens (effect on fetuses).
SENSITIZER is a chemical that causes a substantial proportion of exposed people or animals
to develop an allergic reaction in normal tissue after repeated exposure to the chemical.
WORKSTATION is a defined space or independent principal piece of equipment using
hazardous materials where a specific function, laboratory procedure or research activity occurs.
Approved or listed hazardous materials storage cabinets, flammable liquid storage cabinets or
gas cabinets serving a workstation are included as part of the workstation. A workstation is
allowed to contain ventilation equipment, fire protection devices, electrical devices, and other
processing and scientific equipment.
Amend Section 16.40.080 to read:
16.40.080 General Precautions Against Fire.
VACANT PREMISES
The following sections are deleted:
Delete Section:311.5Placards.
Delete Section:311.5.1 Placard Location.
Delete Section:311.5.2 Placard Size And Color.
Delete Section:311.5.3 Placard Date.
Delete Section:311.5.4 Placard Symbols
Delete Section:311.5.5 informational Use
HAZARDS TO FIRE FIGHTERS
Add Section 316.6 to read:
316.6 Roof Guardrails at Interior Courts. Roof openings into interior courts that are
bounded on all sides by building walls shall be protected with guardrails. The top of the guardrail
shall not be less than 42 inches in height above the adjacent roof surface that can be walked on.
Intermediate rails shall be designed and spaced such that a 12-inch diameter sphere cannot pass
through.
Exception:
Where the roof opening is greater than 600 square feet in area.
Amend Section 16.40.090 to read:
16.40.090 Emergency Planning and Preparedness.
381
Amend Section 404.2 as follows:
404.2 Where Required. An approved fire safety and evacuation plan shall be prepared and
maintained for the following occupancies and buildings.
1.Group A buildings having an occupant load of 100 or more persons.
2.Group B buildings having an occupant load of 500 or more.
3.Group E: See §3.13 Title 19, CCR for regulations.
4.Group H.
5.Group I. See §3.09 Title 19, CCR for regulations.
6.Group R-1. See §3.09 Title 19, CCR for regulations.
7.Group R-2 college and university buildings.
8. Group R-4.
8 9.Group M buildings having an occupant load of 500 or more persons.
9. 10.Covered malls exceeding 50,000 square feet (4645 m2) in aggregate floor area.
10. 11. Underground buildings.
Amend Section 404.3.1 as follows:
404.3.1 Fire Evacuation Plans. Fire evacuation plans shall include the following:
1. Emergency egress or escape routes and whether evacuation of the building is to be
complete or, where approved, by selected floors or areas only.
2. Description of what the fire alarm, if required, sounds and looks like (audible and visual
warning devices).
3. Procedures for employees who must remain to operate critical equipment before
evacuating.
4. Procedures for accounting for employees and occupants after evacuation has been
completed.
5. Identification and assignment of personnel responsible for rescue or emergency medical
aid.
6. The preferred and any alternative means of notifying occupants of a fire or emergency.
7. The preferred and any alternative means of reporting fires and other emergencies to the
fire department or designated emergency response organization.
8. Identification and assignment of personnel who can be contacted for further information
or explanation of duties under the plan.
9. A description of the emergency voice/alarm communication system alert tone and
preprogrammed voice messages, where provided.
Amend Table 405.2 as follows:
382
TABLE 405.2
FIRE AND EVACUATION DRILL
FREQUENCY AND PARTICIPATION
GROUP OR
FREQUENCY PARTICIPATION
OCCUPANCY
Group AQuarterlyEmployees
a
Group BAnnuallyEmployees
Group ESee §3.13 Title 19, CCR
Group ISee §3.13 Title 19, CCR
Group R-1See §3.13 Title 19, CCR
b
Group R-2Four annuallyAll occupants
c
High-rise buildingsSee Title 19, Cal. Code Regs. §3.09
a. Group B buildings having an occupant load of 500 or more persons.
b. Applicable to Group R-2 college and university buildings only
c. Applicable to high-rise office buildings only.
Amend Section 16.40.100 to read:
16.40.100 Use and Occupancy – Related Requirements.
Section 408.2.2 is deleted:
Section 408.3.1 is deleted:
Section 408.3.2 is deleted:
Section 408.3.3 is deleted:
Section 408.3.4 is deleted:
Section 408.5.1 is deleted:
Section 408.5.2 is deleted:
Section 408.5.3 is deleted:
Section 408.5.4 is deleted:
Section 408.5.5 is deleted:
Section 408.6 is deleted:
Section 408.6.1 is deleted:
Section 408.6.2 is deleted:
Section 408.7 is deleted:
Section 408.7.1 is deleted:
Section 408.7.2 is deleted:
Section 408.7.3 is deleted:
Section 408.7.4 is deleted:
Section 408.8 is deleted:
Section 408.8.1 is deleted:
Section 408.8.2 is deleted:
Section 408.8.3 is deleted:
Amend Section 408.9 to read:
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408.9 Group R-2 Occupancies. Group R-2 occupancies shall comply with the requirements
of Sections 408.9.1 through 408.9.3 and Sections 401 through 406. Group R-2 college and
university buildings shall comply with the requirements of Sections 408.9.1 through 408.9.6 and
Sections 401 through 406.
Add Section 408.9.4 to read:
408.9.4 First Emergency Evacuation Drill. The first emergency evacuation drill of each
school year shall be conducted within 10 days of the beginning of classes.
Add Section 408.9.5 to read:
408.9.5 Time of Day. Emergency evacuation drills shall be conducted at different hours of
the day or evening, during the changing of classes, when the school is at assembly, during the
recess or gymnastic periods, or during other times to avoid distinction between drills and actual
fires. In Group R2 college and university buildings, one required drill shall be held during hours
after sunset or before sunrise.
Section 408.10 is deleted:
Section 408.10.1 is deleted:
Section 408.10.2 is deleted:
Section 408.10.3 is deleted:
Section 408.10.4 is deleted:
Section 408.10.5 is deleted:
Amend Section 408.11.1.2 to read:
408.11.1.2 Revisions. The lease plans shall be revised annually or as often as necessary to
keep them current.
16.40.110 FIRE SERVICE FEATURES
Amend Section 16.40.120 to read:
16.40.120 Fire Apparatus Access Roads.
Amend Section 503.1 as follows:
503.1 Where required. Fire apparatus access roads shall be provided and maintained in
accordance with Sections 503.1.1 through 503.1.2 and as per Fire Department access road
Standards.
Amend Section 503.1.1 as follows:
503.1.1 Building and Facilities. Approved fire apparatus access roads shall be provided for
every facility, building or portion of a building hereafter constructed or moved into or within the
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jurisdiction. The fire apparatus access road shall comply with the requirements of this section
and shall extend within 150 feet (45,720 mm) of all portions of the exterior walls of the first
story of the building as measured by an approved route around the exterior of the building or
facility.
Exception:
1. When the building is equipped throughout with an approved automatic sprinkler installed in
accordance with Section 903.3.1.1, 903.3.1.2 or 903.3.1.3, the dimension may be increased
to 300 feet.
2. When fire apparatus roads cannot be installed because of topography, waterways,
nonnegotiable grades or other similar conditions, an approved alternative means of fire
protection shall be provided.
Amend Section 503.2.1 as follows:
503.2.1 Dimensions. Fire apparatus access roads shall have an unobstructed width of not less
than 20 feet (6096 mm), except for approved security gates in accordance with Section 503.6,
and an unobstructed vertical clearance of 13 feet 6 inches (4115 mm).
Exception:
When there are not more than two Group R, Division 3, or Group U occupancies, the access road
width may be modified by the fire code official.
Add Section 503.7 as follows:
503.7 Traffic Calming Devices. Traffic Calming Devices such as speed humps, traffic
circles or other physical measures intended to control vehicle speed on fire apparatus access
roads are prohibited unless approved by the fire code official.
Amend Section 16.40.130 to read:
16.40.130 Access to Buildings and Roofs.
Add Section 504.4 to read:
504.4 Access Control Devices. When access control devices including bars, grates, gates,
electric or magnetic locks or similar devices, which would inhibit rapid fire department
emergency access to the building, are installed, such devices shall be approved by the fire code
official. All electrically powered access control devices shall be provided with an approved
means for deactivation or unlocking from a single location or otherwise approved by the fire
department.
Access control devices shall also comply with Chapter 10 Egress.
16.40.140 HAZARDS TO FIREFIGHTERS
Add Section 507.4 to read:
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507.4 Roof Guardrails At Interior Courts.Roof openings into interior courts that are
bounded on all sides by building walls shall be protected with guardrails. The top of the guardrail
shall not be less than 42 inches in height above the adjacent roof surface that can be walked on.
Intermediate rails shall be designed and spaced such that a 12-inch diameter sphere cannot pass
through.
Exception: Where the roof opening is greater than 600 square feet in area.
16.40.150 Emergency Responder Radio Coverage.
Add Section 511.1 to read:
511.1 Emergency Communication Systems.In new buildings, or buildings expanded by
more than 20%, or buildings in which a change in occupancy classification occurs where
adequate interior emergency radio communication is not possible, a system or equipment that
will provide emergency radio coverage acceptable to the fire code official shall be installed.
Amend Section 510.1 to read follows:
510.1 Emergency responder radio coverage in buildings. All buildings shall have approved
radio coverage for emergency responders within the building based upon the existing coverage
levels of the public safety communications system of the jurisdiction at the exterior of the
building. This section shall not require improvement of the existing public safety
communications system. Emergency responder radio coverage systems shall be installed in
accordance with Section 510 and Appendix J.
Add Section 510.1.1 as follows:
510.1.1 Obstruction by new buildings. When in the opinion of the fire code official, a new
structure obstructs the line of sight emergency radio communications to existing buildings or to
any other locations, the developer of the structure shall provide and install the radio
retransmission equipment necessary to restore communications capabilities. The equipment shall
be located in an approved space or area within the new structure.
16.40.160 BUILDING SERVICE AND FEATURES
Delete Section 16.40.170 in its entirety.
Keep Section 16.40.180 to read (unchanged).
16.40.180 Electrical Equipment, Wiring and Hazards.
Add Section 605.11 to read:
605.11 Immersion Heaters. All electrical immersion heaters used in dip tanks, sinks, vats
and similar operations shall be provided with approved over-temperature controls and low liquid
level electrical disconnects. Manual reset of required protection devices shall be provided.
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Amend Section 16.40.190 to read:
16.40.190 Stationary Storage Battery Systems.
Add Section 608.6.3
608.6.4 to read:
608.6.3 608.6.4 Failure of Ventilation System. Failure of the ventilation system shall
automatically disengage the charging system.
Add Section 16.40.195 to read:
16.40.195 Decorative Vegetation in New and Existing Buildings.
Amend Section 806.1.1 as follows:
806.1.1 Display inside buildings. The display of Christmas trees and other decorative
vegetation in new and existing buildings shall be in accordance with the California Code of
Regulations, Title 19, Division 1, §3.08 and Sections 806.1 through 806.5.
Exceptions: Deleted
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16.40.200 FIRE PROTECTION SYSTEMS
Amend Section 16.40.210 to read:
16.40.210 Automatic Sprinkler Systems.
Amend Section 903.2 to read:
903.2 Where Required.Approved automatic sprinkler systems in new buildings and
structures and in existing modified buildings and structures, shall be provided in the locations
described in this section. Automatic fire sprinklers shall be installed per the requirements set
forth in Sections 903.2.1 through 903.2.13 and as follows, whichever is the more restrictive:
1.An automatic sprinkler system shall be provided throughout all new buildings that have a
gross floor area in excess of 3,600 square feet or that are three (3) or more stories in height.
2.An automatic sprinkler system shall be provided throughout all existing buildings when
modifications are made that increases the gross floor area to more than 3,600 square feet or
increases the number of stories to three (3) or more.
Exception:One-time additions to existing buildings made after 01/01/2008that do not
exceed 500 square feet in gross floor area.
3.An automatic sprinkler system shall be provided throughout all new buildings located in the
designated Wildland-Urban Interface areas.
Exception:Any non-habitable structures accessory to single family residences that have a
gross floor area of 500 square feet or less.
4.An automatic sprinkler system shall be provided throughout all existing buildings located in
the designated Wildland-Urban Interface areas when modifications are made that increases
the gross floor area.
Exception:One-time additions to existing buildings made after 01/01/2008 that do not
exceed 500 square feet in gross floor area.
Delete Exception #1 to 903.2
Amend section 903.3 as follows:
903.3 Installation requirements.Automatic sprinkler systems shall be designed and
installed in accordance with Sections 903.3.1 through 903.3.7 and Fire Department Standards.
903.2 Where required. Approved automatic sprinkler systems in new and existing buildings
and structures shall be provided in the locations described in this Section or in Sections 903.2.1
through 903.2.18 whichever is the more restrictive.
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For the purposes of this section, firewalls used to separate building areas shall be constructed in
accordance with the California Building Code and shall be without openings or penetrations.
1.An automatic sprinkler system shall be provided throughout all new buildings and structures.
Exception:
1.Group A, B, E, F, I, L, M, S and U occupancy buildings and structures that do not exceed
1,000 square feet of building area and that are not located in the Wildland-Urban
Interface Fire Area.
2.Group A, B, E, F, I, L, M, S and U occupancy buildings and structures that are located in
the Wildland-Urban Interface Fire Area and do not exceed 500 square feet of building
area.
2.An automatic sprinkler system shall be provided throughout existing buildings and structures
when alterations or additions are made that create conditions described in Sections 903.2.1
through 903.2.18.
3.An automatic sprinkler system shall be provided throughout existing buildings and structures,
when additions are made that increase the building area to more than 3,600 square feet.
Exception:
One or more additions made to a building after January 1, 2011 that does not total more than
1000 square feet of building area.
4.An automatic sprinkler system shall be provided throughout all new basements regardless of
size and throughout existing basements that are expanded by more than 50%.
Amend Section 903.3.1.1 to read:
903.3.1.1 NFPA 13 sprinkler systems. Where the provisions of this code require that a
building or portion thereof be equipped throughout with an automatic sprinkler system in
accordance with this section, sprinklers shall be installed throughout in accordance with NFPA
13 except as provided in Section 903.3.1.1.1 and local standards.
1. For new buildings having no designated use or tenant, the minimum sprinkler design density
shall be Ordinary Hazard Group 2.
Amend Section 903.3.1.2 to read:
903.3.1.2 NFPA 13R sprinkler systems. Where allowed in buildings of Group R, up to and
including four stories in height , automatic sprinkler systems shall be installed throughout in
accordance with NFPA 13R and local standards.
Amend Section 903.3.1.3 to read:
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903.3.1.3 NFPA 13D sprinkler systems. Where allowed, automatic sprinkler systems
installed in one-and two-family dwellings and townhouses shall be installed throughout in
accordance with NFPA 13D and local standards.
Amend Section 912.2 to read:
912.2 Location. With respect to hydrants, driveways, buildings and landscaping, fire
department connections shall be so located that fire apparatus and hose connected to supply the
system will not obstruct access to the building for other fire apparatus. The location of fire
department connections shall be approved by the fire code official.
390
16.40.220 FIRE SAFETY DURING CONSTRUCTION AND DEMOLITION
Add Section 16.40.225 to read:
16.40.225 Precautions Against Fire.
Add Section 1404.8 to read:
1404.8 Fire Walls. When firewalls are required, the wall construction shall be completed
(with all openings protected) immediately after the building is sufficiently weather-protected at
the location of the wall(s).
Amend Section 16.40.230 to read:
16.40.230 Section 1411: Means of Egress.
Amend Section 1411.1 as follows:
1411.1 Stairways Required. Each level above the first story in new multi-story buildings that
require two exit stairways shall be provided with at least two usable exit stairways after the floor
decking is installed. The stairways shall be continuous and discharge to grade level. Stairways
serving more than two floor levels shall be enclosed (with openings adequately protected) after
exterior walls/windows are in place. Exit stairs in new and in existing, occupied buildings shall
be lighted and maintained clear of debris and construction materials at all times.
Exception:
For new multi-story buildings, one of the required exit stairs may be obstructed on not more than
two contiguous floor levels for the purposes of stairway construction (i.e., installation of gypsum
board, painting, flooring, etc.).
Add Section 1411.1.1 to read:
Section 1411.1.1 Required Means Of Egress. All new buildings under construction shall
have at least one unobstructed means of egress. All means of egress shall be identified in the Fire
Protection prefire plan. See Section 1408.2.
16.40.240 SEMICONDUCTOR FABRICATION FACILITIES
Keep Section 16.40.250 to read (unchanged):
16.40.250 Definitions.
Amend the following definition to read:
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CONTINUOUS GAS DETECTION SYSTEM. An approved gas detection system where
the analytical instrument is maintained in continuous operation and sampling is performed
without interruption. Analysis is allowed to be performed on a cyclical basis at intervals not to
exceed 30 minutes. In occupied areas where air is re-circulated and not exhausted to a treatment
system (e.g. breathing zone), the Chief may require a cyclical basis at intervals not to exceed 5
minutes. The gas detection system shall be able to detect the presence of a gas at or below the
permissible exposure limit in occupiable areas and at or below ½ IDLH (or 0.05 LC 50 if no
established IDLH) in unoccupiable areas.
Delete Definition: Workstation.
Add Title (underlined)
LUMBER YARDS AND WOOD WORKING FACILITIES
Keep Section 16.40.260 to read (unchanged):
16.40.260 Storage of Wood Chips and Hogged Material Associated with Timber and
Lumber Production Facilities.
Add Section 1907.6 to read:
1907.6 Fire Protection Water Supply System. An approved fire protection water supply
and hydrant system suitable for the fire hazard involved shall be provided for open storage yards
and processing areas. Hydrant systems shall be installed in accordance with NFPA 24.
Keep Section 16.40.270 to read (unchanged):
16.40.270 Storage and Processing of Wood Chips, Hogged Materials, Fines, Compost and
Raw Product Associated with Yard Waste and Recycling Facilities.
Add Section 1908.11 to read:
1908.11 Fire Protection Water Supply System. An approved fire protection water supply
and hydrant system suitable for the fire hazard involved shall be provided for open storage yards
and processing areas. Hydrant systems shall be installed in accordance with NFPA 24.
Delete Section 16.40.280 in its entirety:
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16.40.290 HAZARDOUS MATERIALS
Keep Section 16.40.300 to read (unchanged):
16.40.300 General.
Amend Section 2701.2.2.2 to read:
2701.2.2.2 Health Hazards The material categories listed in this section are classified as
health hazards. A material with a primary classification as a health hazard can also pose a
physical hazard.
1.Highly toxic, toxic and moderately toxic.
2.Corrosive materials.
3.Other health hazards including carcinogens, irritants and sensitizers.
Keep Section 16.40.310 to read (unchanged):
16.40.310 Definitions.
Amend the following definition to read:
SECONDARY CONTAINMENT. Secondary containment is that level of containment that is
external to and separate from primary containment and is capable of safely and securely containing
the material, without discharge, for a period of time reasonably necessary to ensure detection and
remedy of the primary containment failure.
Amend Section 16.40.310 to read:
16.40.320 General Requirements.
Add Section 2703.1.3.1 to read:
2703.1.3.1 Toxic, Highly Toxic, Moderately Toxic Gases And Similarly Used Or
Handled Materials. The storage, use and handling oftoxic, highly toxic and moderately toxic
gases in amounts exceeding Table 3704.2 or 3704.3 shall be in accordance with this chapter and
Chapter 37. Any toxic, highly toxic or moderately toxic material that is used or handled as a gas
or vapor shall be in accordance with the requirements for toxic, highly toxic or moderately toxic
gases.
Add Section 2703.1.5 to read:
2703.1.5 Secondary Containment Requirements. A containment system shall be required
for all hazardous materials, which are liquids or solids at normal temperature, and pressure
(NTP) where a spill is determined to be a plausible event and where such an event would
endanger, people, property or the environment. Construction shall be substantial, capable of
safely and securely containing a sudden release without discharge. Design criteria shall be
performance oriented and constructed of physically and chemically compatible materials to resist
393
degradation and provide structural and functional integrity for a period of time reasonably
necessary to ensure detection, mitigation, and repair of the primary system.Monitoring of
secondary containment shall be accordance with Section 2704.2.2.5.
2703.1.5 Other Health Hazards Including Carcinogens, Irritants and Sensitizers. The
storage, use and handling ofmaterials classified as other health hazards including carcinogens,
irritants and sensitizers in amounts exceeding 810 cubic feet for gases, 55 gallons for liquids and
5,000 pounds for solids shall be in accordance with this Section 2703.
Add Section 2703.1.6 to read:
2703.1.6 Secondary Containment Requirements. A containment system shall be required
for all hazardous materials, which are liquids or solids at normal temperature, and pressure
(NTP) where a spill is determined to be a plausible event and where such an event would
endanger people, property or the environment. Construction shall be substantial, capable of
safely and securely containing a sudden release without discharge. Design criteria shall be
performance oriented and constructed of physically and chemically compatible materials to resist
degradation and provide structural and functional integrity for a period of time reasonably
necessary to ensure detection, mitigation, and repair of the primary system. Regardless of
quantities, secondary containment for outdoor storage areas shall also comply with Section
2704.2.2.4. Monitoring of secondary containment shall be accordance with Section 2704.2.2.5.
Amend Sec. 2703.2.2.1 to read:
2703.2.2.1 Design And Construction. Piping, tubing, valves, fittings and related components
used for hazardous materials shall be in accordance with the following:
1.Piping, tubing, valves, fittings and related components shall be designed and fabricated from
materials compatible with the material to be contained and shall be of adequate strength and
durability to withstand the pressure, structural and seismic stress, and exposure to which they
are subject.
2.Piping and tubing shall be identified in accordance with ASME A13.1 and Santa Clara
County Fire Chiefs Marking Requirements and Guidelines for Hazardous Materials and
Hazardous Waste to indicate the material conveyed.
3.Readily accessible manual valves or automatic remotely activated fail-safe emergency
shutoff valves shall be installed on supply piping and tubing at the following locations:
1.The point of use.
2.The tank, cylinder or bulk use.
4.Manual emergency shutoff valves and controls for remotely activated emergency shutoff
valves shall be identified and the location shall be clearly visible accessible and indicated by
means of a sign.
5.Backflow prevention or check valves shall be provided when the backflow of hazardous
materials could create a hazardous condition or cause the unauthorized discharge of
hazardous materials.
6.Where gases or liquids having a hazard ranking of:
Health hazard Class 3 or 4
Flammability Class 4
Reactivity Class 4
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in accordance with NFPA 704 are carried in pressurized piping above 15 pounds per square
inch gauge (psig)(103 Kpa), an approved means of leak detection, emergency shutoff and
excess flow control shall be provided. Where the piping originates from within a hazardous
material storage room or area, the excess flow control shall be located within the storage
room or area. Where the piping originates from a bulk source, the excess flow control shall
be located as close to the bulk source as practical.
Exception:
1.Piping for inlet connections designed to prevent backflow.
2.Piping for pressure relief devices.
7.Secondary containment or equivalent protection from spills shall be provided for piping for
liquid hazardous materials and for highly toxic and toxic corrosive gases above threshold
quantities listed in Tables 3704.2 and 3704.3. Secondary containment includes, but is not
limited to double walled piping.
Exception:
1.Secondary containment is not required for toxic corrosive gases if the piping is
constructed of inert materials.
2.Piping under sub-atmospheric conditions if the piping is equipped with an alarm and fail-
safe-to-close valve activated by a loss of vacuum.
8.Expansion chambers shall be provided between valves whenever the regulated gas may be
subjected to thermal expansion. Chambers shall be sized to provide protection for piping and
instrumentation and to accommodate the expansion of regulated materials.
Amend Section 2703.2.2.2 to read:
2703.2.2.2 Additional Regulation for Supply Piping for Health Hazard Materials. Supply
piping and tubing for gases and liquids having a health hazard ranking of 3 or 4 shall be in
accordance with ASME B31.3 and the following:
1.Piping and tubing utilized for the transmission of toxic, highly toxic, or highly volatile
corrosive liquids and gases shall have welded or brazed connections throughout except for
connections within an exhausted enclosure if the material is a gas, or an approved method of
drainage or containment is provided for connections if the material is a liquid.
2.Piping and tubing shall not be located within corridors, within any portion of a means of
egress required to be enclosed in fire-resistance-rated construction or in concealed spaces in
areas not classified as Group H Occupancies.
Exception:
Piping and tubing within the space defined by the walls of corridors and the floor or roof
above or in concealed space above other occupancies when installed in accordance with
Section 415.8.6.3 of the California Building Code as required for Group H, Division 5
Occupancies.
3.All primary piping for toxic, highly toxic and moderately toxic gases shall pass a helium leak
test of 1x10-9 cubic centimeters/second where practical, or shall pass testing in accordance
395
with an approved, nationally recognized standard. Tests shall be conducted by a qualified
"third party" not involved with the construction of the piping and control systems.
Amend Section 2703.3.1 as follows:
2703.3.1 Unauthorized Discharges. When hazardous materials are released in quantities
reportable under state, federal or local regulations or when there is release or a threatened release
that presents a threat to health, property or the environment, the fire code official shall be
notified immediately in an approved mannerand the following procedures required in
accordance with Sections 2703.3.1.1 through 2703.3.1.4.
Add Sec. 2703.5.2 to read:
2703.5.2 Ventilation Ducting. Product conveying ducts for venting hazardous materials
operations shall be labeled with the hazard class of the material being vented and the direction of
flow.
Add Sec. 2703.5.3 to read:
2703.5.3 "H" Occupancies. In "H" occupancies, all piping and tubing may be required to be
identified when there is any possibility of confusion with hazardous materials transport tubing or
piping. Flow direction indicators are required.
Amend Section 2703.9.8 to read:
2703.9.8 Separation of Incompatible Materials. Incompatible materials in storage and
storage of materials that are incompatible with materials in use shall be separated. When the
stored materials are in containers having a capacity of more than 5 pounds (2 kg) or 0,5 gallon (2
L), separation shall be accomplished by:
1.Segregating incompatible materials in storage by a distance of not less than 20 feet (6096
mm) and in an independent containment system.
2.Isolating incompatible materials in storage by a noncombustible partition extending not less
than 18 inches (457 mm) above and to the sides of the stored material.
3.Storing liquid and solid materials in hazardous material storage cabinets.
4.Storing compressed gases in gas cabinets or exhausted enclosures in accordance with
Sections 2703.8.5 and 2703.8.6. Materials that are incompatible shall not be stored within
the same cabinet or exhausted enclosure.
Add Sec. 2703.9.10 2703.9.11 to read:
2703.9.10 2703.9.11 Fire Extinguishing Systems For Workstations Dispensing, Handling
or Using Hazardous Materials. Combustible and non-combustible workstations, which
dispense, handle or use hazardous materials, shall be protected by an approved automatic fire
extinguishing system in accordance with Section 1803.10.
Exception:
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Internal fire protection is not required for Biological Safety Cabinets that carry NSF/ANSI
certification where quantities of flammable liquids in use or storage within the cabinet do not
exceed 500ml.
Keep Section 16.40.330 to read (unchanged):
16.40.330 Storage.
Amend Section 2704.2.1 as follows:
2704.2.1 Spill Control for Hazardous Material Liquids. Rooms, buildings or areas used
for storage of hazardous material liquids shall be provided with spill control to prevent the flow
of liquids to adjoining areas. Floors in indoor locations and similar surfaces in outdoor locations
shall be constructed to contain a spill from the largest single vessel by one of the following
methods:
1.Liquid-tight sloped or recessed floors in indoor locations or similar areas in outdoor
locations.
2.Liquid-tight floors in indoor locations or similar areas provided with liquid-tight raised or
recessed sills or dikes.
3.Sumps and collection systems.
4.Other approved engineered systems.
Except for surfacing, the floors, sills, dikes, sumps and collection systems shall be constructed of
noncombustible material, and the liquid-tight seal shall be compatible with the material stored.
When liquid-tight sills or dikes are provided, they are not required at perimeter openings having
an open-grate trench across the opening that connects to an approved collection system.
Amend Section 2704.2.2 as follows:
2704.2.2 Secondary Containment for Hazardous Material Liquids and Solids. Buildings,
rooms or areas used for the storage of hazardous materials liquids or solids shall be provided
with secondary containment in accordance with this section.
Delete Table: 2704.2.2 REQUIRED SECONDARY CONTAINMENT FOR HAZARDOUS
MATERIAL SOLIDS AND LIQUIDS STORAGE
Keep Section 16.40.340 to read (unchanged):
16.40.340 Use, Dispensing and Handling.
Amend Sec. 2705.4.4 to read:
2705.4.4 Emergency Alarm. When hazardous materials having a hazard ranking of 3 or 4 in
accordance with NFPA 704, or toxic gases exceeding 10 cu. ft. and any amount of highly toxic
compressed gases are transported through corridors or exit enclosures, there shall be an
397
emergency telephone system, a local manual alarm station or an approved alarm-initiating device
at not more than 150-foot (45,720 mm) intervals and at each exit and exit-access doorway
throughout the transport route. The signal shall be relayed to an approved central, proprietary or
remote station service or constantly attended on-site location and shall also initiate a local
audible alarm.
16.40.350 CORROSIVE MATERIALS
Amend Section 16.40.360 to read:
16.40.360 Section 3102: Definitions.
Add the following definition to read:
CORROSIVE LIQUID. Corrosive liquid is a liquid which, when in contact with living tissue,
will cause destruction or irreversible alteration of such tissue by chemical action. Examples include
acidic, alkaline or caustic materials. Such material will be considered corrosive when the Ph is 2 or
less or 12.5 or more, except for foodstuffs or medicine. Included are Department of Transportation
and Title 22, California Code of Regulations, 66261.22 classed corrosives.
Amend Section 16.40.370 as follows:
16.40.370 Explosives and Fireworks.
Amend Section 3301.1 to read:
3301.1 Scope. For explosives requirements see Title 19 California Code of Regulations, Title
19, Division 1, Chapter 10 and Section 3301.1.1 3301.2 of this Chapter. For fireworks
requirements see Title 19 California Code of Regulations, Title 19, Division 1, Chapter 6 and
Section 3301.1.2 3301.3 of this Chapter. For small arms ammunition, see Section 3301.5 of this
chapter.
Exception:
1.The armed Forces of the United States, Coast Guard or National Guard.
2.Explosives in forms prescribed by the official United States Pharmacopoeia.
3.The possession, storage and use of small arms ammunition when packaged in accordance with
DOTn packaging requirements.
4.3. The use of explosive materials by federal, state and local regulatory, law enforcement and
fire agencies acting in their official capacities.
4. Items preempted by federal regulations.
Add Section 3301.1.1 to read:
3301.1.1. Explosives.The possession, manufacture, storage, sale, handling, and use of
explosives are prohibited.
Exceptions:
398
1.Possession, storage, handling and use of explosives for test and research purposes is allowed
with permit and approval of the fire code official.
2.Possession, storage, handling and use of squibs, explosive nuts or bolts and similar small
quantity explosive devices is allowed with permit and approval of the fire code official.
Add Section 3301.1.2 to read:
3301.1.2 Fireworks.
The possession, manufacture, storage, sale, handling, and use of
fireworks, including those fireworks classified as Safe and Sane by the California State Fire
Marshal, are prohibited.
Exceptions:
1.Storage, handling and use of fireworks and pyrotechnic special effects outside of buildings
when used for public or proximate audience displays, motion picture, television, theatrical
and group entertainment productions when handled and used by a licensed pyrotechnic
operator in accordance with Title 19 of the California Code of Regulations and permitted in
accordance with this Chapter.
2.
Storage, handling and use of pyrotechnic special effects fireworks inside of buildings,
equipped throughout with an approved fire sprinkler system, when used for proximate
audience displays or special effects in theatrical, television, motion picture and group
entertainment productions and when handled and used by a licensed pyrotechnic operator in
accordance with Title 19 of the California Code of Regulations and permitted in accordance
with this Chapter.
Add Section 3301.1.3 to read:
3301.1.3 Model Rocketry.The storage, handling, and use of model rockets shall be in
accordance with Title 19 of the California Code of Regulations and as approved by the fire code
official.
Add Section 3301.2 is to read:
3301.2 Explosives. The possession, manufacture, storage, sale, handling, and use of
explosives are prohibited.
Add Section 3301.3 is to read:
3301.3 Fireworks. The possession, manufacture, storage, sale, handling, and use of
fireworks, including those fireworks classified as Safe and Sane by the California State Fire
Marshal, are prohibited.
Exception:
1. Storage, handling and use of fireworks and pyrotechnic special effects outside of buildings
when used for public or proximate audience displays, motion picture, television, theatrical
and group entertainment productions and when in accordance with Title 19 of the California
Code of Regulations.
399
2. Storage, handling and use of pyrotechnic special effects fireworks inside of buildings when
used for proximate audience displays or special effects in theatrical, television, motion
picture and group entertainment productions when in accordance with Title 19 of the
California Code of Regulations and when in buildings equipped throughout with an approved
fire sprinkler system.
Add Section 3301.4 is to read:
3301.4 Rocketry. The storage, handling, and use of model rockets shall be in accordance
with Title 19 of the California Code of Regulations and as approved by the Fire Code Official.
Add Sections 3301.5 through 3301.5.3.2.3 to read:
3301.5 Small Arms Ammunition-General. Indoor storage and display of black powder,
smokeless propellants and small arms ammunition shall comply with Sections 3301.5.1 through
3301.5.4.2.3.
3301.5.1 Packages. Smokeless propellants shall be stored in approved shipping containers
conforming to DOTn 49 CFR, Part 173.
3301.5.1.1 Repackaging. The bulk repackaging of smokeless
propellants, black powder and small arms primers shall not
be performed in retail establishments.
3301.5.1.2 Damaged packages. Damaged containers shall not be repackaged.
Exception:
Approved repackaging of damaged containers of smokeless propellant into containers of the
same type and size as the original container.
3301.5.2 Storage in Group R occupancies. The storage of small arms ammunition in Group
R occupancies shall comply with Sections 3301.5.2.1 through 3301.5.2.3.
3301.5.2.1 Smokeless propellants. Smokeless propellants intended for personal use in
quantities not exceeding 20 pounds (9 kg) are permitted to be stored in Group R-3 occupancies
where kept in original containers. Smokeless powder in quantities exceeding 20 pounds (9 kg)
but not exceeding 50 pounds (23 kg) are permitted to be stored in Group R-3 occupancies where
kept in a wooden box or cabinet having walls of at least 1 inch (25 mm) nominal thickness.
3301.5.2.2 Black powder. Black powder intended for personal use in quantities not
exceeding 20 pounds (9 kg) are permitted to be stored in Group R-3 occupancies where kept in
original containers and stored in a wooden box or cabinet having walls of at least 1 inch (25 mm)
nominal thickness
3301.5.2.3 Small arms primers. No more than 10,000 small arms primers shall be stored in
Group R-3 occupancies.
3301.5.3 Display and storage in Group M occupancies. The display and storage of small
400
arms ammunition in Group M occupancies shall comply with Sections 3301.5.3.1 through
3301.5.3.2.3.
3301.5.3.1 Display. The display of small arms ammunition in Group M occupancies shall
comply with Sections 3301.5.3.1.1 through 3301.5.3.1.3.
3301.5.3.1.1 Smokeless propellant. No more than 20 pounds (9 kg) of smokeless
propellants, each in containers of 1 pound (0.454 kg) or less capacity, shall be displayed in
Group M occupancies.
3301.5.3.1.2 Black powder. No more than 1 pound (0.454 kg) of black powder shall be
displayed in Group M occupancies.
3301.5.3.1.3 Small arms primers. No more than 10,000 small arms primers shall be
displayed in Group M occupancies.
3301.5.3.2 Storage. The storageof small arms ammunition in Group M occupancies shall
comply with Sections 3301.5.3.2.1 through 3301.5.3.2.3.
3301.5.3.2.1 Storage of Smokeless propellant. Commercial stocks of smokeless propellants
not on display shall not exceed 100 pounds (45 kg). Quantities exceeding 20 pounds (9 kg), but
not exceeding 100 pounds (45 kg) shall be stored in portable wooden boxes having walls of at
least 1 inch (25 mm) nominal thickness.
3301.5.3.2.2 Black powder. Commercial stocks of black powder not on display shall not
exceed 50 pounds (23 kg) and shall be stored in a type 4 indoor magazine. When black powder
and smokeless propellants are stored together in the same magazine, the total quantity shall not
exceed that permitted for black powder.
3301.5.3.2.3 Small arms primers. Commercial stocks of small arms primers not on display
shall not exceed 750,000. Storage shall be arranged such that not more than 100,000 small arms
primers are stored in any one pile and piles are at least 15 feet (4572 mm) apart.
401
16.40.380 FLAMMABLE AND COMBUSTIBLE LIQUIDS
Amend Section 16.40.390 as follows:
16.40.390 Storage.
Amend section 3404.2.7.5.8 to read:
3404.2.7.5.8Overfill Prevention. An approved means or method in accordance with Section
3404.2.9.6.6 shall be provided to prevent the overfill of all Class I, II and IIIA liquid storage
tanks. Storage tanks in refineries, bulk plants or terminals regulated by Sections 3406.4 or
3406.7 shall have overfill protection in accordance with API 2350.
An approved means or method in accordance with Section 3404.2.9.7.6 shall be provided to
prevent the overfilling of Class IIIB liquid storage tanks connected to fuel-burning equipment
inside buildings.
Exception Deleted
Add section 3404.2.7.5.9 to read:
3404.2.7.5.9 Automatic Filling of Tanks. Systems that automatically fill flammable or
combustible liquid tanks shall be equipped with overfill protection, approved by the fire code
official, that sends an alarm signal to a constantly attended location and immediately stops the
filling of the tank. The alarm signal and automatic shutoff shall be tested on an annual basis and
records of such testing shall be maintained on-site for a period of five (5) years.
402
16.40.400 HIGHLY TOXIC AND TOXIC MATERIALS
Keep Section 16.40.410 to read (unchanged):
16.40.410 General.
Add Sec. 3701.3 to read:
3701.3 Moderately Toxic Gases With a LC50 Equal To Or Less Than 3000 Parts Per
Million. Notwithstanding the hazard class definition in Section 3702, moderately toxic gases
with an LC50 less than 3000 parts per million shall additionally comply with the requirements
for toxic gases in Section 3704 of this code.
Amend Section 16.40.420 as follows:
16.40.420 Definitions.
The following definitions are added to read:
MODERATELY TOXIC GAS. Moderately toxic gas is a chemical or substance that has a
median lethal concentration (LC50) in air more than 2000 parts per million but not more than
5000 parts per million by volume of gas or vapor, when administered by continuous inhalation
for an hour, or less if death occurs within one hour, to albino rats weighing between 200 and 300
grams each.
MAXIMUM THRESHOLD QUANTITY (MAX TQ).Maximum Threshold Quantity (Max
TQ) is the maximum quantity of a moderately toxic or toxic gas, which may be stored in a single
vessel before a more stringent category of regulation is applied. The following equation shall be
used to calculate the Max TQ:
Max TQ (pounds) = LC50 (ppm) x 2 lb.
Gas Mixtures, the LC50 value for a gas mixture containing toxic, highly toxic or moderately
toxic components shall be calculated using the formula in Appendix E, Section 103.1.3.1.
Amend Sec. 3704 to read:
For gas mixtures containing one or more toxic, highly toxic or moderately toxic components,
the LC50 shall be calculated using CGA Standards P-20 and P-23 as referenced in Appendix E,
Section 103.1.3.1.
Amend Sec. 16.40.430 to read:
16.40.430 Highly Toxic, Toxic and Moderately Toxic Compressed Gases including those
used as Refrigerants.
Add Sec. 3704.1.4 to read:
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3704.1.4Automatic Shut-Off Valve. An automatic shut-off valve, which is of a fail-safe to
close design, shall be provided to shut off the supply of highly toxic gases for any of the
following:
1.Activation of a manual fire alarm system.
2.Activation of the gas detection system.
3.Failure of emergency power.
4.Failure of primary containment.
5.Seismic activity.
6.Failure of required ventilation.
7.Manual activation at an approved remote location.
Add Sec. 3704.1.5 to read:
3704.1.5 Emergency Control Station. Signals from emergency equipment used for highly
toxic gases shall be transmitted to an emergency control station or other approved monitoring
station, which is continually staffed by trained personnel.
Add Sec. 3704.1.6 to read:
3704.1.6 Maximum Threshold Quantity. Toxic gases stored or used in quantities exceeding
the maximum threshold quantity in a single vessel per control area or outdoor control area shall
comply with the additional requirements for highly toxic gases of Section 3704 of this code.
Moderately toxic gases stored or used in quantities exceeding the maximum threshold
quantity. in a single vessel per control area or outdoor control area shall comply with the
additional requirements for toxic gases of Section 3704 of this code
Add Section 3704.1.7 to read:
3704.1.7 Reduced Flow Valve. All containers of materials other than lecture bottles
containing Highly Toxic material and having a vapor pressure exceeding 29 psia shall be
equipped with a reduced flow valve when available. If a reduced flow valve is not available, the
container shall be used with a flow-limiting device. All flow limiting devices shall be part of the
valve assembly and visible to the eye when possible; otherwise, they shall be installed as close as
possible to the cylinder source.
Add Section 3704.1.8 to read:
3704.1.8 Annual Maintenance. All safety control systems at a facility shall be maintained in
good working condition and tested not less frequently than annually. Maintenance and testing
shall be performed by persons qualified to perform the maintenance and tests. Maintenance
records and certifications shall be available to any representative of the Fire Department for
inspection upon request.
Add Section 3704.1.9 to read:
404
3704.1.9 Fire Extinguishing Systems. Buildings and covered exterior areas for storage and
use areas of materials regulated by this Chapter shall be protected by an automatic fire sprinkler
system in accordance with NFPA 13. The design of the sprinkler system for any room or area
where highly toxic, toxic and moderately toxic gases are stored, handled or used shall be in
accordance with Section 2704.5.
Add Section 3704.1.10 to read:
3704.1.10 Local Gas Shut Off. Manual activation controls shall be provided at locations near
the point of use and near the source, as approved by the fire code official.The fire code official
may require additional controls at other places, including, but not limited to, the entry to the
building, storage or use areas, and emergency control stations.
Manual activated shut-off valves shall be of a fail-safe-to-close design.
Add Section 3704.1.11 to read:
3704.1.11 Exhaust Ventilation Monitoring. For highly toxic gases and toxic gases
exceeding threshold quantities, a continuous monitoring system shall be provided to assure that
the required exhaust ventilation rate is maintained. The monitoring system shall initiate a local
alarm. The alarm shall be both visual and audible and shall be designed to provide warning both
inside and outside of the interior storage, use, or handling area.
Add Section 3704.1.12 to read:
3704.1.12 Emergency Response Plan. If the preparation of an emergency response plan for
the facility is not required by any other law, responsible persons shall prepare, or cause to be
prepared, and filed with the fire code official, a written emergency response plan. If the
preparation of an emergency response plan is required by other law, a responsible person shall
file a copy of the plan with the Fire Chief.
Add Section 3704.1.13 to read:
3704.1.13 Emergency Response Team. Responsible persons shall be designated the on-site
emergency response team and trained to be liaison personnel for the Fire Department. These
persons shall aid the Fire Department in preplanning emergency responses, identifying locations
where regulated materials are stored, handled and used, and be familiar with the chemical nature
of such material. An adequate number of personnel for each work shift shall be designated.
Add Section 3704.1.14 to read:
3704.1.14 Emergency Drills. Emergency drills of the on-site emergency response team shall
be conducted on a regular basis but not less than once every three months. Records of drills
conducted shall be maintained.
Add section 3704.1.15 to read:
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3704.1.15 Cylinder Leak Testing. Cylinders shall be tested for leaks immediately upon
delivery and again immediately prior to departure. Testing shall be approved by the fire code
official in accordance with appropriate nationally recognized industry standards and practices, if
any. Appropriate remedial action shall be immediately undertaken when leaks are detected
Add Sec. 3704.1.16to read:
3704.1.16 Inert Gas Purge System. Gas systems shall be provided with dedicated inert gas
purge systems. A dedicated inert gas purge system may be used to purge more than one gas,
provided the gases are compatible. Purge gas systems inside buildings shall be located in an
approved gas cabinet unless the system operates by vacuum demand.
Add Sec. 3704.1.17 to read:
3704.1.17Seismic Shutoff Valve. An automatic seismic shut-off valve, which is of a fail-safe
to close design, shall be provided to shutoff the supply of highly toxic, toxic and moderately
toxic gases with an LC less than 3000 parts per million upon a seismic event within 5 seconds
50
2
of a horizontal sinusoidal oscillation having a peak acceleration of 0.3G (1.47m/sec
) and a
period of 0.4 seconds.
Amend Section 3704.2 to read:
3704.2 Indoor Storage and Use. The indoor storage or use of highly toxic, toxic and
moderately toxic compressed gases shall be in accordance with Sections 3704.2.1 through
3704.2.2.10.3.3. The threshold quantity for highly toxic, toxic and moderately toxic gases for
indoor storage and use are set forth in Table 3704.2.
Add Table 3704.2 to read:
Threshold Quantities for Highly Toxic, Toxic and Moderately Toxic Gases
for Indoor Storage and Use
Highly Toxic 0
Toxic10 cubic feet
Moderately Toxic 20 cubic feet
Amend Section 3704.2.1 to read:
3704.2.1 Applicability. The applicability of regulations governing the indoor storage and use
of highly toxic, toxic, and moderately toxic compressed gases shall be as set forth in Sections
3704.2.1.1 through 3704.2.1.3.
Amend Sec. 3704.2.1.1 to read:
3704.2.1.1 Quantities Not Exceeding the Maximum Allowable Quantity per Control
Area.The indoor storage or use of highly toxic, toxic and moderately toxic gases in amounts
exceeding the maximum allowable quantity per control area set forth in Table 3704.2 shall be in
accordance with Sections 2701, 2703, 3701, and 3704.1 and 3704.2,
406
Amend Sec. 3704.2.2 to read:
3704.2.2 General Indoor Requirements. The general requirements applicable to the indoor
storage and use of highly toxic and toxic compressed gases shall be in accordance with Sections
3704.2.2.1 through 3704.2.2.10.3.
Moderately toxic gases with an LC less than 3000 parts per million shall comply with the
50
requirements for toxic gases in Sections 3704.2.2.1 through 3704.2.2.10.3
All other moderately toxic gases exceeding the threshold quantity shall comply with the
requirements for toxic gases in Sections 3704.2.2.1 through 3704.2.2.7.
Amend Sec. 3704.2.2.7 to read:
3704.2.2.7 Treatment Systems. The exhaust ventilation from gas cabinets, exhausted
enclosures, gas rooms and local exhaust systems required in Section 3704.2.2.4 and 3704.2.2.5
shall be directed to a treatment system. The treatment system shall be utilized to handle the
accidental release of gas and to process exhaust ventilation. The treatment system shall be
designed in accordance with Sections 3704.2.2.7.1 through 3704.2.2.7.5 and Section 505 of the
California Mechanical Code.
Exception:
1.Highly toxic, toxic and moderately toxic gases storage. A treatment system is not required
for cylinders, containers and tanks in storage when all of the following are provided:
1.1.Valve outlets are equipped with gas-tight outlet plug or caps.
1.2.Hand wheel-operated valves have handles secured to prevent movement.
1.3.Approved containment vessels or containment systems are provided in accordance with
Section 3704.2.2.3.
Amend 3704.2.2.10.1 to read:
3704.2.2.10.1. Alarms. The gas detection system shall initiate a local alarm and transmit a
signal to a constantly attended control station when a short-term hazard condition is detected.
The alarm shall be both visual and audible and shall provide warning both inside and outside the
area where the gas is detected. The audible alarm shall be distinct from all other alarms.
Exception Deleted
Amend Section 3704.3 to read:
3704.3 Outdoor Storage and Use. The outdoor storage or use of highly toxic, toxic and
moderately toxic compressed gases shall be in accordance with Sections 3704.3.1 through
3704.3.4. The threshold quantity for highly toxic, toxic and moderately toxic gases for outdoor
storage and use are set forth in Table 3704.3.
Add Table 3704.3 to read:
407
Threshold Quantities for Highly Toxic, Toxic and Moderately Toxic Gases
for Outdoor Storage and Use
Highly Toxic 0
Toxic10 cubic feet
Moderately Toxic 20 cubic feet
Amend Section 3704.3.1 to read:
3704.3.1 Applicability. The applicability of regulations governing the outdoor storage and
use of highly toxic, toxic, and moderately toxic compressed gases shall be as set forth in Sections
3704.3.1.1 through 3704.3.1.3.
Amend Section 3704.3.1.1
3704.3.1.1 Quantities Not Exceeding The Maximum Allowable Quantity Per Control
Area. The outdoor storage or use of highly toxic and toxic gases in amounts exceeding the
threshold quantity per control area set forth in Table 3704.3 shall be in accordance with Sections
2701, 2703, 3701, 3704.1, and 3704.3.
Moderately toxic gases with an LC50 less than 3000 parts per million in amounts exceeding
the threshold quantity in Table 3704.3 shall comply with the requirements for toxic gases in
Sections 2701, 2703, 3701, 3704.1 and 3704.3.
Moderately toxic gases in amounts exceeding the threshold quantity in Table 3704.3 shall
comply with the requirements for toxic gases in Sections 2701, 2703, 3701, 3704.1 and
3704.3.2.1 through 3704.3.2.5.
Amend Section 3704.3.3 to read:
3704.3.3 Outdoor Storage Weather Protection For Portable Tanks and Cylinders.
Weather protection in accordance with Section 2704.13 and this section shall be provided for
portable tanks and cylinders located outdoors and not within gas cabinets or exhausted
enclosures. The storage area shall be equipped with an approved automatic sprinkler system in
accordance with Section 2704.5.
Exceptions Deleted
408
Add Section 16.40.440 as follows:
16.40.440 Use.
Add Section 4105.3.1 to read:
4105.3.1 Silane distribution systems automatic shutdown. Silane distribution systems shall
automatically shut down at the source upon activation of the gas detection system at levels above
the alarm level and/or failure of the ventilation system for the silane distribution system.
Amend Section 16.40.460 as follows:
REQUIREMENTS FOR WILDLAND-URBAN INTERFACE FIRE AREAS
Amend Section 4902 as follows:
16.40.460 Definitions.
Amend definition of Wildland-Urban Interface Fire Area as follows:
Wildland-Urban Interface Fire Area is a geographical area identified by the state as a “Fire
Hazard Severity Zone” in accordance with the Public Resources Code Sections 4201 through
4204 and Government Code Sections 51175 through 51189, or other areas designated by the
enforcing agency to be at a significant risk from wildfires. See Article 86B for the applicable
referenced sections of the Government Code and the Public Resources Code. The Wildland-
Urban Interface Fire Area shall be defined as all areas within the City of Cupertino as set forth
and delineated on the map entitled "Wildland-Urban Interface Fire Area” which map and all
notations, references, data and other information shown thereon are hereby adopted and made a
part of this chapter. The map properly attested, shall be on file in the Office of the City Clerk of
the City of Cupertino.
Relocate Section 16.40.470 to Section 16.40.485:
Add Section 16.40.475 as follows:
HAZARDOUS VEGETATION AND FUEL MANAGEMENT
16.40.475 Application.
Amend Section 4906.2 to read:
4906.2 Application. Buildings and structures located in the following areas shall maintain the
required hazardous vegetation and fuel management:
1. All unincorporated lands designated by the State Board of Forestry and Fire Protection as
State Responsibility Areas (SRA) including:
409
1.1. Moderate Fire Hazard Severity Zones
1.2. High Fire Hazard Severity Zones
1.3. Very-High Fire Hazard Severity Zones
2. Land designated as a Very-High Fire Hazard Severity Zone or as a Wildland Urban
Intereface Fire Area by the City of Cupertino.
Amend Section 16.40.480 as follows:
16.40.480 Defensible Space.
Add Section 4707.1 to read:
4707.1 General. Persons owning, leasing, controlling, operating or maintaining buildings or
structures in, upon or adjoining the Wildland-Urban Interface Fire Area and persons owning,
leasing or controlling land adjacent to such buildings or structures, shall at all times:
Amend Section 4907.1 to read:
4907.1 General. Defensible space will be maintained around all buildings and structures in
Sate Responsibility Area (SRA) as required in Public Resources Code 4290 and “SRA Fire Safe
Regulations” California Code of Regulations, Title 14, Division 1.5, Chapter 7, Subchapter 2,
Section 1270.
Buildings and structures within the Very-High Fire Hazard Severity Zones of a Local
Responsibility Area (LRA) shall maintain defensible space as outlined in Government Code
51175 – 51189 and any local ordinance of the authority having jurisdiction.
Persons owning, leasing, controlling, operating or maintaining buildings or structures in the
locally adopted Wildland-Urban Interface Fire Area but that are not within the Very-High Fire
Hazard Severity Zone and persons owning, leasing or controlling land adjacent to such buildings
or structures, shall at all times:
1.Maintain an effective defensible space by removing and clearing away flammable vegetation
and combustible growth from areas within 30 feet (9144 mm) of such buildings or structures.
Exception:
Single specimens of trees, ornamental shrubbery or similar plants used as ground covers,
provided that they do not form a means of rapidly transmitting fire from the native growth to
any structure.
2.Maintain additional effective defensible space by removing brush, flammable vegetation and
combustible growth located 30 feet to 100 feet (9144 mm to 30480 mm) when required by
the fire code official due to steepness of terrain or other conditions that would cause a
defensible space of only 30 feet (9144 mm) to be insufficient.
Exception:
Grass and other vegetation located more than 30 feet (9144 mm) from buildings or structures
410
and less than 18 inches (457 mm) in height above the ground need not be removed where
necessary to stabilize the soil and prevent erosion.
3.Remove portions of trees, which extend within 10 feet (3048 mm) of the outlet of a chimney.
4.Maintain trees adjacent to or overhanging a building free of deadwood; and
5. Maintain the roof of a structure free of leaves, needles or other dead vegetative growth.
Add Section 4907.2 to read:
4907.2 Corrective Actions. The executive body is authorized to instruct the fire code official
to give notice to the owner of the property upon which conditions regulated by Section 4907.1
exist to correct such conditions. If the owner fails to correct such conditions, the executive body
is authorized to cause the same to be done and make the expense of such correction a lien upon
the property where such condition exists.
Add Section 16.40.485 as follows:
16.40.485 Fire Protection Plan.
Add Section 4908 to read:
4908.1 General. When required by the code official, a fire protection plan shall be prepared.
4908.2 Content. The plan shall be based upon a site-specific wildfire risk assessment that
includes considerations of location, topography, aspect, flammable vegetation, climatic
conditions and fire history. The plan shall address water supply, access, building ignition and
fire-resistance factors, fire protection systems and equipment, defensible space and vegetation
management.
4908.3 Cost. The cost of fire protection plan preparation and review shall be the
responsibility of the applicant.
4908.4 Plan Retention. The fire protection plan shall be retained by the fire code official.
Amend Section 16.40.490 as follows:
16.40.490 Access.
Add Section 4714.1 to read:
4714.1 General. Buildings and structures, or portions thereof, hereafter constructed or
relocated into or within wildland-urban interface areas shall be provided with fire apparatus
accessin accordance with this chapter.
Add Section 4714.2 to read:
411
4714.2 Driveways.Driveways with an all-weather surface shall be provided when any
portion of an exterior wall of the first story of a building is located more than 150 feet (45 720
mm) from a fire apparatus access road. Driveways shall provide a minimum unobstructed width
of 12 feet (3658 mm) and a minimum unobstructed height of 13 feet 6 inches (4115 mm).
Driveways in excess of 150 feet (45 720 mm) in length shall be provided with turnarounds.
Driveways in excess of 200 feet (60 960 mm) in length and less than 20 feet (6096 mm) in width
shall be provided with turnouts in addition to turnarounds. An all-weather surface shall be any
surface material acceptable to the code official.
Add Section 4909 to read:
4909.1 General. Buildings and structures, or portions thereof, hereafter constructed or
relocated into or within the Wildland-Urban Interface Fire Area shall be provided with fire
apparatus access in accordance with Chapter 5 and Section 4909.2.
4909.2 Driveways. Driveways in excess of 150 feet (45 720 mm) in length shall be provided
with turnarounds. Driveways in excess of 200 feet (60 960 mm) in length and less than 20 feet
(6096 mm) in width shall be provided with turnouts in addition to turnarounds. An all-weather
surface shall be any surface material acceptable to the code official.
A driveway shall not serve in excess of two dwelling units.
Exception:
When such driveways meet the requirements for an access road in accordance with this chapter.
Driveway turnarounds shall be in accordance with Fire Department Standards. Driveways that
connect with a road or roads at more than one point may be considered as having a turnaround if
all changes of direction meet the radii requirements for driveway turnarounds.
Driveway turnouts shall be an all-weather road surface at least 10 feet (3048 mm) wide and
30 feet (9144 mm) long. Driveway turnouts shall be located as required by the code official.
Vehicle load limits shall be posted at both entrances to bridges on driveways and private
roads. Design loads for bridges shall be established by the code official.
Add Section 4714.3 to read:
4714.3 Fire Apparatus Access Roads.Fire apparatus access roads shall be all weather roads
with a minimum width of 20 feet (6096 mm) and a clear height of 13 feet 6 inches (4115 mm);
and shall be designed in accordance with Fire Department Standards. Dead-end roads in excess
of 150 feet (45 720 mm) in length shall be provided with turnarounds designed in accordance
with Fire Department Standards. An all-weather road surface shall be any surface material
acceptable to the code official.
Add Section 4715 to read:
Amend Section 16.40.500 as follows:
412
16.40.500 Water Supply.
Add Section 4715.1 to read:
4715.1 General. Buildings and structures, or portions thereof, hereafter constructed or
relocated into or within wildland-urban interface areas shall be provided with fire protection
water supplies in accordance with this chapter.
Exception: Buildings containing only private garages, carports, sheds and agricultural
buildings with a building area of not more than 500 square feet (56 m2).
Add Section 4715.2 to read:
4715.2 Water Sources.The point at which a water source is available for use shall be located
not more than 600 feet from all portions of the exterior walls of the building and be approved by
the code official. The distance shall be measured along an unobstructed line of travel.
Water sources shall have a minimum usable water volume as determined by the adequate
water supply needs in accordance with Section 4715.4. This water source shall be equipped with
an approved hydrant. The water source shall be provided and maintained by a recognized water
purveyor, mutual water company or water pumped from a well. The design, construction,
location, water level maintenance, access, and access maintenance of man-made water sources
shall be approved by the code official.
Add Section 4715.3 to read:
4715.3 Hydrants.All hydrants shall be designed and constructed in accordance with
nationally recognized standards. The location and access shall be approved by the code official.
Add Section 4715.4 to read:
4715.4 Adequate Water Supply.Adequate fire protection water supplies shall be as follows:
1.One-And Two-Family Dwellings. The required fire protection water supply for one-and
two-family dwellings shall be in accordance with Appendix B.
The water supply duration need notexceed 30 minutes.
2.Buildings Other Than One-And Two-Family Dwellings. The water supply required for
buildings other than one-and two-family dwellings shall be in accordance with Appendix B.
Exception:The water supply duration need not exceed 2 hours.
Add Section 4715.5 to read:
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4715.5 Obstructions. Access to all water sources required by this code shall be unobstructed
at all times. The code official shall not be deterred or hindered from gaining immediate access to
water source equipment, fire protection equipment or hydrants.
Add Section 4715.6 to read:
4715.6 Identification.Water sources, hydrants and fire protection equipment shall be clearly
identified in a manner approved by the code official to identify location and to prevent
obstruction by parking and other obstructions.
Add Section 4715.7 to read:
4715.7 Testing And Maintenance.Water sources, hydrants and other fire protection
equipment required by this code shall be subject to periodic tests as required by the code official.
All such equipment installed under the provisions of this code shall be maintained in an
operative condition at all times and shall be repaired or replaced where defective. Additions,
repairs, alterations and servicing of such fire protection equipment and resources shall be in
accordance with approved standards.
Add Section 4715.8 to read:
4715.8 Clearance Of Fuel.Defensible space shall be provided around water tank structures,
water supply pumps and pump houses in accordance with Section 4707.
Add Section 4715.9 to read:
4715.9 Standby Power.Stationary water supply facilities within the wildland-urban interface
area dependent on electrical power to meet adequate water supply demands shall provide standby
power systems in accordance with the Electrical Code to ensure that an uninterrupted water
supply is maintained. The standby power source shall be capable of providing power for a
minimum of two hours.
Exceptions:
1.When approved by the code official, a standby power supply is not required where the
primary power service to the stationary water supply facility is underground.
2.A standby power supply is not required where the stationary water supply facility serves no
more than one single-family dwelling.
Add Section 4910 to read:
4910.1 General. Buildings and structures, or portions thereof, hereafter constructed or
relocated into or within the Wildland-Urban Interface Fire Area shall be provided with fire
protection water supplies in accordance with Chapter 5 and Sections 4910.2 and 4910.3.
Exception:
Buildings containing only private garages, carports, sheds and agricultural buildings with a
building area of not more than 500 square feet (56 m2).
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4910.2 Clearance of Fuel. Defensible space shall be provided around water tank structures,
water supply pumps and pump houses in accordance with Section 4907.
4910.3 Standby Power. Stationary water supply facilities within the wildland-urban interface
area dependent on electrical power to meet adequate water supply demands shall provide standby
power systems in accordance with the Electrical Codeto ensure that an uninterrupted water
supply is maintained. The standby power source shall be capable of providing power for a
minimum of two hours.
Exception:
1. When approved by the code official, a standby power supply is not required where the
primary power service to the stationary water supply facility is underground.
2. A standby power supply is not required where the stationary water supply facility serves no
more than one single-family dwelling.
Delete Section 16.40.550 in its entirety.
Amend Section 16.40.560 as follows:
16.40.560 General Requirements For Suppression and Control.
Add Section 4911 to read:
4911.1 Scope. The provisions of this chapter establish general requirements applicable to new
and existing properties located within the Wildland-Urban Interface Fire Area.
4911.2 Clearance of Brush or Vegetative Growth From Roadways. The code official is
authorized to require areas within 10 feet (3048 mm) on each side of portions of fire apparatus
access roads and driveways to be cleared of non-fire-resistive vegetation growth.
Exception:
Single specimens of trees, ornamental vegetative fuels or cultivated ground cover, such as green
grass, ivy, succulents or similar plants used as ground cover, provided they do not form a means
of readily transmitting fire.
4911.3Access Restrictions
4911.3.1 Restricted Entry To Public Lands. The code official is authorized to determine
and publicly announce when the Wildland-Urban Interface Fire Area shall be closed to entry and
when such areas shall again be opened to entry. Entry on and occupation of the Wildland-Urban
Interface Fire Area, except public roadways, inhabited areas or established trails and campsites
that have not been closed during such time when the wildland-urban interface area is closed to
entry, is prohibited.
Exception:
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1. Residents and owners of private property within the Wildland-Urban Interface Fire Area and
their invitees and guests going to or being on their lands.
2. Entry, in the course of duty, by peace or police officers, and other duly authorized public
officers, members of a fire department and members of the Wildland Firefighting Service.
4911.3.2 Use Of Fire Roads And Defensible Space. Motorcycles, motor scooters and motor
vehicles shall not be driven or parked on, and trespassing is prohibited on, fire roads or
defensible space beyond the point where travel is restricted by a cable, gate or sign, without the
permission of the property owners. Vehicles shall not be parked in a manner that obstructs the
entrance to a fire road or defensible space.
Exception:
Public officers acting within their scope of duty. Radio and television aerials, guy wires thereto,
and other obstructions shall not be installed or maintained on fire roads or defensible spaces,
unless located 16 feet (4877 mm) or more above such fire road or defensible space.
4911.3.3 Use Of Motorcycles, Motor Scooters, Ultra light Aircraft And Motor Vehicles.
Motorcycles, motor scooters, ultra light aircraft and motor vehicles shall not be operated within
the Wildland-Urban Interface Fire Area, without a permit by the code official, except on clearly
established public or private roads. Permission from the property owner shall be presented when
requesting a permit.
4911.3.4 Tampering With Locks, Barricades, Signs And Address Markers. Locks,
barricades, seals, cables, signs and address markers installed within the Wildland-Urban
Interface Fire Area, by or under the control of the code official, shall not be tampered with,
mutilated, destroyed or removed.
Gates, doors, barriers and locks installed by or under the control of the code official shall not be
unlocked.
Delete Section 16.40.570 in its entirety.
Delete Section 16.40.580 in its entirety.
Delete Section 16.40.590 in its entirety.
Delete Section 16.40.600 in its entirety.
Delete Section 16.40.610 in its entirety.
Delete Section 16.40.620 in its entirety.
Delete Section 16.40.630 in its entirety.
Delete Section 16.40.640 in its entirety.
Add Section 16.40.650 as follows:
16.40.650 Ignition Source Control.
Add Section 4912 to read:
4912.1 General. Ignition sources shall be in accordance with Section 4912.
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4912.2 Clearance From Ignition Sources. Clearance between ignition sources and grass,
brush or other combustible materials shall be maintained a minimum of 30 feet (9144 mm).
4912.3 Smoking. When required by the code official, signs shall be posted stating NO
SMOKING. No person shall smoke within 15 feet (4572 mm) of combustible materials or non-
fire-resistive vegetation.
Exception:
Places of habitation or in the boundaries of established smoking areas or campsites as designated
by the code official.
4912.4 Equipment And Devices Generating Heat, Sparks Or Open Flames. Equipment
and devices generating heat, sparks or open flames capable of igniting nearby combustibles shall
not be used in the Wildland-Urban Interface Fire Area without a permit from the code official.
Exception:
Use of approved equipment in habitated premises or designated campsites that are a minimum of
30 feet (9144 mm) from grass-, grain-, brush- or forest-covered areas.
4912.5 Fireworks. Fireworks shall not be used or possessed in the Wildland-Urban Interface
Fire Area.
Add Section 16.40.660 as follows:
16.40.660 Outdoor Fires.
Add Section 4913 to read:
4913.1 General. No person shall build, ignite or maintain any outdoor fire of any kind for any
purpose in or on any Wildland-Urban Interface Fire Area, except by the authority of a written
permit from the code official.
Exception:
Outdoor fires within inhabited premises or designated campsites where such fires are in a
permanent barbecue, portable barbecue, outdoor fireplace or grill and are a minimum of 30 feet
(9144 mm) from any combustible material or non-fire-resistive vegetation.
4913.2 Permits. Permits outdoor fires shall incorporate such terms and conditions that will
reasonably safeguard public safety and property. Outdoor fires shall not be built, ignited or
maintained in Wildland Urban Interface Fire Areas under the following conditions:
1. When high winds are blowing,
2. When a person 17 years old or over is not present at all times to watch and tend such fire, or
3. When a public announcement is made that open burning is prohibited.
4913.3 Restrictions. No person shall use a permanent barbecue, portable barbecue, outdoor
fireplace or grill for the disposal of rubbish, trash or combustible waste material.
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4913.4 Outdoor Fireplaces, Permanent Barbecues And Grills. Outdoor fireplaces,
permanent barbecues and grills shall not be built, installed or maintained in the Wildland-Urban
Interface Fire Area without approval of the Building or Fire Code Official.
Outdoor fireplaces, permanent barbecues and grills shall be located a minimum of 30 feet
(9144 mm) from any combustible material or non-fire-resistive vegetation and shall be
maintained in good repair and in a safe condition at all times. Openings in such appliances shall
be provided with an approved spark arrestor, screen or door. For the purposes of this section,
ignition-resistant material shall not be considered to be combustible material.
Exception:
When approved by the Building or Fire Code Official, unprotected openings in barbecues and
grills necessary for proper functioning.
Add Section 16.40.670 as follows:
16.40.670 Liquified Petroleum Gas Installations.
Add Section 4914 to read:
4914.1 Vegetation Clearance around Tanks/Containers. Flammable vegetation shall be
cleared a minimum of 30 feet around liquefied petroleum gas tanks/containers.
Add Section 16.40.680 as follows:
16.40.680 Storage of Firewood and Combustible Materials.
Add Section 4915 to read:
4915.1 General. Firewood and combustible materials shall not be stored in unenclosed spaces
beneath buildings or structures, or on decks or under eaves, canopies or other projections or
overhangs. The storage of firewood and combustible material within the defensible space shall
be located a minimum of 30 feet (6096 mm) from structures and separated from the crown of
trees by a minimum horizontal distance of 15 feet (4572 mm).
4915.2 Storage For Off-Site Use. Firewood and combustible materials not for consumption
on the premises shall be stored as approved by the fire code official.
Add Section 16.40.690 as follows:
16.40.690 Dumping.
Add Section 4916 to read:
4916.1 Waste Material. Waste material shall not be placed, deposited or dumped in the
Wildland-Urban Interface Fire Area, or in, on or along trails, roadways or highways or against
structures in the Wildland-Urban Interface Fire Area.
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Exception:
Approved public and approved private dumping areas.
4916.2 Ashes And Coals. Ashes and coals shall not be placed, deposited or dumped in or on
the Wildland-Urban Interface Fire Area.
Exception:
1. In the hearth of an established fire pit, camp stove or fireplace.
2. In a noncombustible container with a tight fitting lid, which is kept or maintained in a safe
location not less than 10 feet (3048 mm) from non-fire-resistive vegetation or structures.
3. Where such ashes or coals are buried and covered with 1 foot (305 mm) of mineral earth not
less than 25 feet (7620 mm) from non-fire-resistive vegetation or structures.
Add Section 16.40.700 as follows:
16.40.700 Protection of Pumps and Water Storage Facilities.
Add Section 4917 to read:
4917.1 Clearance of Flammable Vegetation. Flammable vegetation shall be cleared a
minimum of 30 feet from water storage equipment and pumping facilities.
(Ord._______)
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Add this Chapter in its entirety:
The provisions of the 2010 California Energy Code and each and all of the regulations,
provisions, conditions and terms of the code is referred to as if fully set forth in this chapter, and
is by such reference adopted.
One (1) copy of the code therefore is on file in the office of the Building Official pursuant to
Health and Safety Code Section 18942 (d) (1) and are made available for public inspection.
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Add this Chapter in its entirety:
The provisions of the 2010 California Green Building Standards Code and each and all of the
regulations, provisions, conditions and terms of the code is referred to as if fully set forth in this
chapter, and is by such reference adopted.
One (1) copy of the code therefore is on file in the office of the Building Official pursuant to
Health and Safety Code Section 18942 (d) (1) and are made available for public inspection.
No Appendix Chapters from the 2010 California Green Building Standards Code have been
adopted.
Notwithstanding the provisions of this code, refer to the adopted City of Cupertino’s Green
Building Ordinance for additional sustainability requirements.
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Add this Chapter in its entirety
Section
16.80.010 Intent
16.80.020 Application of Provisions
16.80.030 Definitions
16.80.040 Placards
This chapter establishes standard placards to be used to indicate the condition of a structure
for continued occupancy. The chapter further authorizes the Building Official and his or her
authorized representatives to post the appropriate placard at each entry point to a building or
structure upon completion of a safety assessment.
The provisions of this chapter are applicable to all buildings and structures of all occupancies
regulated by the City of Cupertino. The Council may extend the provisions as necessary.
is a visual, non-destructive examination of a building or structure for the
purpose of determining the condition for continued occupancy.
The following are verbal descriptions of the official jurisdiction placards to be used to
designate the condition for continued occupancy of buildings or structures. Copies of actual
placards are attached in Exhibit A.
(1)is to be posted on any building or
structure wherein no apparent structural hazard has been found. This placard is not intended to
mean that there is no damage to the building or structure.
(2)is to be posted on each building or structure that has been damaged
wherein the damage has resulted in some form of restriction to the continued occupancy. The
individual who posts this placard will note in general terms the type of damage encountered and
will clearly and concisely note the restrictions on continued occupancy.
(3)is to be posted on each building or structure that has
been damaged such that continued occupancy poses a threat to life safety. Buildings or
structures posted with this placard shall not be entered under any circumstance except as
authorized in writing by the Building Official, or his or her authorized representative. Safety
422
assessment teams shall be authorized to enter these buildings at any time. This placard is not to
be used or considered as a demolition order. The individual who posts this placard will note in
general terms the type of damage encountered.
This ordinance number, the name of the jurisdiction, its address, and phone number shall be
permanently affixed to each placard.
Once it has been attached to a building or structure, a placard is not to be removed, altered or
covered until done so by an authorized representative of the Building Official. It shall be
unlawful for any person, firm or corporation to alter, remove, cover or deface a placard unless
authorized pursuant to this section.
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424
INSPECTED
LAWFUL OCCUPANCY PERMITTED
425
RESTRICTED USE
426
UNSAFE
DO NOT ENTER OR OCCUPY
(THIS PLACARD IS NOT A DEMOLITION ORDER)
th
INTRODUCED at a regular meeting of the City Council of the City of Cupertino the 16
day of
November, 2010, and ENACTED at a regular meeting of the City Council of the City of Cupertino the
____ day of 2010, by the following vote:
Vote:Members of the City Council
Ayes:
Noes:
Absent:
Abstain:
ATTEST: APPROVED:
City Clerk Mayor, City of Cupertino
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One or more additions made to a building after January 1, 2011 that does not total more than
1000 square feet of building area.
Amend Section R313.2 to read:
An automatic
residential fire sprinkler system shall be installed in one- and two-family dwellings as follows:
1.In all new one- and two-family dwellings and in existing one- and two-family dwellings
when additions are made that increase the building area to more than 3,600 square feet.
One or more additions made to a building after January 1, 2011 that does not total more than
1000 square feet of building area.
2.In all new basements and in existing basements that are expanded.
Existing basements that are expanded by not more than 50%.
Amend Section R327.7.9 of as follows:
Delete “When required by the enforcing agency”
Delete Section R327.10.3.2 in its entirety:
Amend Section R327.10.4 of as follows:
Delete “When required by the enforcing agency”
Amend Section R403.1 to read:
All exterior walls shall be supported on continuous solid or fully grouted
masonry or concrete footings, or other approved structural systems which shall be of sufficient
design to accommodate all loads according to Section R301 and to transmit the resulting loads to
the soil within the limitations as determined from the character of the soil. Footings shall be
supported on undisturbed natural soils or engineered fill. Concrete footings shall be designed
and constructed in accordance with the provisions of Section R403 or in accordance with ACEI
332.
1-story 12 12 12 12
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For the purposes of this section, firewalls used to separate building areas shall be constructed in
accordance with the California Building Code and shall be without openings or penetrations.
1.An automatic sprinkler system shall be provided throughout all new buildings and structures.
Exception:
1.Group A, B, E, F, I, L, M, S and U occupancy buildings and structures that do not exceed
1,000 square feet of building area and that are not located in the Wildland-Urban
Interface Fire Area.
2.Group A, B, E, F, I, L, M, S and U occupancy buildings and structures that are located in
the Wildland-Urban Interface Fire Area and do not exceed 500 square feet of building
area.
2.An automatic sprinkler system shall be provided throughout existing buildings and structures
when alterations or additions are made that create conditions described in Sections 903.2.1
through 903.2.18.
3.An automatic sprinkler system shall be provided throughout existing buildings and structures,
when additions are made that increase the building area to more than 3,600 square feet.
Exception:
One or more additions made to a building after January 1, 2011 that does not total more than
1000 square feet of building area.
4.An automatic sprinkler system shall be provided throughout all new basements regardless of
size and throughout existing basements that are expanded by more than 50%.
Amend Section 903.3.1.1 to read:
903.3.1.1 NFPA 13 sprinkler systems. Where the provisions of this code require that a
building or portion thereof be equipped throughout with an automatic sprinkler system in
accordance with this section, sprinklers shall be installed throughout in accordance with NFPA
13 except as provided in Section 903.3.1.1.1 and local standards.
1. For new buildings having no designated use or tenant, the minimum sprinkler design density
shall be Ordinary Hazard Group 2.
Amend Section 903.3.1.2 to read:
903.3.1.2 NFPA 13R sprinkler systems. Where allowed in buildings of Group R, up to and
including four stories in height , automatic sprinkler systems shall be installed throughout in
accordance with NFPA 13R and local standards.
Amend Section 903.3.1.3 to read:
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