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Searchable packet 11-19-2013 Table of Contents Agenda3 Proclamation recognizing Nathan Desai for earning the highest Boy Scout ranking of Eagle Scout No written materials9 Proclamation for the De Anza Optimist Club of Cupertino No written materials10 Approve the November 4 City Council minutes Draft Minutes11 Accept Accounts Payable for period ending October 18, 2013 A - Draft Resolution21 Accept Accounts Payable for period ending October 25, 2013 A - Draft Resolution35 Accept Accounts Payable for period ending November 1, 2013 A - Draft Resolution45 Treasurer's Investment Report for Quarter Ending September 2013 Staff Report55 A - Investment Portfolio57 B - Investments by Type, Rate of Return, and Compliance Charts58 C - Retiree Health Trust Report60 Consideration and Approval of the First Quarter Financial Report for Fiscal Year 2013-2014 Staff Report64 A - First Quarter Financial Report for Fiscal Year 2013- 201469 City Financial Reports for Fiscal Year Ending June 30, 2013 Staff Report108 A - Comprehensive Annual Financial Report110 B - Memorandum on Internal Control and Required Communications251 C - Independent Accountant's Report on the City of Cupertino Investment Policy269 D - Final Accounting Issues Memo273 E - Development Impact Fee Report275 Authorize a new position category in the salary schedule for the Unrepresented Employees Compensation Program Staff Report279 A - Draft Resolution281 B - Redline amended Unrepresented Employee Compensation program282 Amend the July 1, 2013 through June 30, 2016 terms and conditions of employment for the Cupertino City Employees Association (CEA) and Operating Engineers Local Union No. 3, AFL-CIO (OE3) 1 Staff Report286 A - Draft Resolution amending CEA MOU288 B - Draft redline CEA MOU289 C - Draft Resolution amending OE3 MOU291 D - Draft redline OE3 MOU292 E - Draft Resolution amending Admin Rules & Regulations of the personnel code294 F - Draft Redline amending Admin Rules & Regulations of the personnel code295 Adopt an updated Records Retention Schedule for the City of Cupertino Staff Report296 A - Draft Resolution298 B - Draft Records Retention Schedule300 C - Adopted Resolution No. 12-039354 D - Local Government Records Management Guidelines - current retention schedule356 Citizens' Option for Public Safety (COPS) Grant Funds of $100,000 Staff Report400 A - Draft Resolution401 Second Reading of the Development Agreement and Rezoning ordinances to allow the development of an office, research and development campus with associated ancillary uses Staff Report403 CC-1 Draft Ordinance No. 13-2113.pdf405 CC-2 Draft Ordinance No. 13-2114.pdf412 CC-3 Draft Ordinance Redline changes.pdf492 CC-4 Late Comments Memo from LSA Associates.pdf503 Adoption of the 2013 California Building, Residential, Plumbing, Mechanical, Electrical, Fire, Energy and Green Building Standards Code as mandated by the State of California Staff Report504 A - Draft Ordinance507 B - Draft Ordinance (redline version)566 McClellan Ranch Preserve Environmental Education Center and Blacksmith Shop Relocation Project augment existing budget with additional funding and authorize Staff to re-bid the project Staff Report630 2 AmendedonNovember14to reorderItemNos.14and15 AMENDEDAGENDA CUPERTINOCITYCOUNCIL~REGULARADJOURNEDMEETING 10350TorreAvenue,CommunityHallCouncilChamber Tuesday,November19,2013 5:00PM CITYCOUNCILMEETING PLEDGEOFALLEGIANCE ROLLCALL CEREMONIALMATTERSANDPRESENTATIONS :ProclamationrecognizingNathanDesaiforearningthehighestBoyScout 1.Subject rankingofEagleScout RecommendedAction:Presentproclamation Nowrittenmaterials Page:Nowrittenmaterialsinpacket 2.Subject:ProclamationfortheDeAnzaOptimistClubofCupertino RecommendedAction:Presentproclamation Nowrittenmaterials Page:Nowrittenmaterialsinpacket POSTPONEMENTS ORALCOMMUNICATIONS Thisportionofthemeetingisreservedforpersonswishingtoaddressthecouncilon anymatternotontheagenda.Speakersarelimitedtothree(3)minutes.Inmostcases, Statelawwillprohibitthecouncilfrommakinganydecisionswithrespecttoamatter notlistedontheagenda. 3 Tuesday,November19,2013CupertinoCityCouncil CONSENTCALENDAR Unlessthereareseparatediscussionsand/oractionsrequestedbycouncil,staffora memberofthepublic,itisrequestedthatitemsundertheConsentCalendarbeactedon simultaneously. 3.Subject:ApprovetheNovember4CityCouncilminutes RecommendedAction:Approvetheminutes DraftMinutes Page:11 4.Subject:AcceptAccountsPayableforperiodendingOctober18,2013 RecommendedAction:AdoptResolutionNo.13096acceptingAccountsPayable forperiodendingOctober18,2013 ADraftResolution Page:21 5.Subject:AcceptAccountsPayableforperiodendingOctober25,2013 RecommendedAction:AdoptResolutionNo.13097acceptingAccountsPayable forperiodendingOctober25,2013 ADraftResolution Page:35 6.Subject:AcceptAccountsPayableforperiodendingNovember1,2013 RecommendedAction:AdoptResolutionNo.13098acceptingAccountsPayable forperiodendingNovember1,2013 ADraftResolution Page:45 7.Subject:TreasurersInvestmentReportforQuarterEndingSeptember2013 RecommendedAction:Acceptthereport StaffReport AInvestmentPortfolio BInvestmentsbyType,RateofReturn,andComplianceCharts CRetireeHealthTrustReport Page:55 4 Tuesday,November19,2013CupertinoCityCouncil 8.Subject:ConsiderationandApprovaloftheFirstQuarterFinancialReportforFiscal Year20132014 RecommendedAction:AccepttheCity,§´§«¸ȟ¹FirstQuarterFinancialReportfor FiscalYear20132014 StaffReport AFirstQuarterFinancialReportforFiscalYear20132014 Page:64 9.Subject:CityFinancialReportsforFiscalYearEndingJune30,2013 RecommendedAction:Acceptthereports StaffReport AComprehensiveAnnualFinancialReport BMemorandumonInternalControlandRequiredCommunications CIndependentAccountantsReportontheCityofCupertinoInvestmentPolicy DFinalAccountingIssuesMemo EDevelopmentImpactFeeReport Page:108 10.Subject:Authorizeanewpositioncategoryinthesalaryscheduleforthe UnrepresentedEmployeesCompensationProgram :AdoptResolutionNo.13099amendingthesalaryschedule RecommendedAction fortheUnrepresentedEmployeesCompensationProgram StaffReport ADraftResolution BRedlineamendedUnrepresentedEmployeeCompensationprogram Page:279 11.Subject:AmendtheJuly1,2013throughJune30,2016termsandconditionsof employmentfortheCupertinoCity$³¶²µ¿««¹ȟAssociation(CEA)andOperating EngineersLocalUnionNo.3,AFLCIO(OE3) RecommendedAction:a)AdoptResolutionNo.13100amendingaMemorandum ofUnderstanding(MOU)betweentheCityofCupertinoandtheCupertinoCity $³¶²µ¿««¹ȟAssociation,andb)AdoptResolutionNo.13101amendinga MemorandumofUnderstandingbetweentheCityofCupertinoandOperating EngineersLocalUnionNo.3,AFLCIO;andc)AdoptResolutionNo.13102 directingtheCityManagertoamendtheAdministrativeRulesandRegulationsof thePersonnelCodetoreflectanychangestotheMemorandumofUnderstanding 5 Tuesday,November19,2013CupertinoCityCouncil StaffReport ADraftResolutionamendingCEAMOU BDraftredlineCEAMOU CDraftResolutionamendingOE3MOU DDraftredlineOE3MOU EDraftResolutionamendingAdminRules&Regulationsofthepersonnelcode FDraftRedlineamendingAdminRules&Regulationsofthepersonnelcode Page:286 12.Subject:AdoptanupdatedRecordsRetentionSchedulefortheCityofCupertino RecommendedAction:AdoptResolutionNo.13094rescindingResolutionNo.12 039andadoptingaRecordsRetentionSchedulefortheCityofCupertino StaffReport ADraftResolution BDraftRecordsRetentionSchedule CAdoptedResolutionNo.12039 DLocalGovernmentRecordsManagementGuidelinescurrentretentionschedule Page:296 13.Subject:CitizensOptionforPublicSafety(COPS)GrantFundsof$100,000 RecommendedAction:AdoptResolutionNo.13103approvingthe201314COPS grantfundingrequest StaffReport ADraftResolution Page:400 SECONDREADINGOFORDINANCES PUBLICHEARINGS 14.Subject:SecondReadingoftheDevelopmentAgreementandRezoningordinances toallowthedevelopmentofanoffice,researchanddevelopmentcampuswith associatedancillaryuses RecommendedAction:A.ConductthesecondreadingandenactOrdinanceNo.13 2113:Ƞ ´OrdinanceoftheCupertinoCityCouncilapprovingtherezoningofan approximately1.1AcreAreafromParkAndRecreation(PR)ToPlannedIndustrial Park(P(MP))locatedatAPN31606050and31606ųŸŴȡȍZ201103;andB.Conduct thesecondreadingandenactOrdinanceNo.132114:Ƞ ´OrdinanceoftheCity CounciloftheCityofCupertinorepealingOrdinanceNo.1702andApprovinga NewDevelopmentAgreementByandBetweentheCityofCupertinoandAppleInc. fortheDevelopmentofaNewCorporateCampus 6 Tuesday,November19,2013CupertinoCityCouncil Description:Applications:EA201112,Z201103,DA201101;Applicant:AppleInc. (DanWhisenhunt);PropertyOwner:AppleInc.;Location:AreaboundedbyEast HomesteadRoad,NorthTantauAvenue,I280,NorthWolfeRoadincluding propertieslocatedontheeastsideofNorthTantauAvenue StaffReport CC1DraftOrdinanceNo.132113.pdf CC2DraftOrdinanceNo.132114.pdf CC3DraftOrdinanceRedlinechanges.pdf CC4LateCommentsMemofromLSAAssociates.pdf Page:403 15.Subject:Adoptionofthe2013CaliforniaBuilding,Residential,Plumbing, Mechanical,Electrical,Fire,EnergyandGreenBuildingStandardsCodeas mandatedbytheStateofCalifornia RecommendedAction:ConductthesecondreadingandenactOrdinanceNo.13 2115:AnOrdinanceoftheCityCounciloftheCityofCupertinoAmendingChapter 16oftheCupertinoMunicipalCodeAddingChapter16.02andAdoptingthe2013 CaliforniaBuilding,Residential,Plumbing,Mechanical,ElectricalCodes,California ExistingBuildingCode,CaliforniaGreenBuildingStandardsCodewithCertain Exceptions,Modifications,andAdditions. StaffReport ADraftOrdinance BDraftOrdinance(redlineversion) Page:504 ORDINANCESANDACTIONITEMS :McClellanRanchPreserveEnvironmentalEducationCenterand 16.Subject BlacksmithShopRelocationProjectɋaugmentexistingbudgetwithadditional fundingandauthorizeStafftorebidtheproject RecommendedAction:1)Augmentexistingbudgetwithanadditional$1,000,000 fromFund429CapitalReserve;2)AuthorizeStafftorebidtheproject StaffReport Page:630 REPORTSBYCOUNCILANDSTAFF ADJOURNMENT 7 Tuesday,November19,2013CupertinoCityCouncil ROLLCALL CLOSEDSESSION 17.Subject:ConferencewithLaborNegotiator(GovernmentCode54957.6);Agency designatednegotiators:DirectorofAdministrativeServices,CityManager,and DaniaTorresWong;Employeeorganizations:OperatingEngineersLocalNo.3 Union;CupertinoEmployeesAssociation;Unrepresented(Managementand Confidential)EmployeesCompensationProgram;AppointedEmployees CompensationProgram 18.Subject:PublicEmployeePerformanceEvaluation(GovernmentCode54957)City Attorney 19.Subject:ConferencewithLaborNegotiator(GovernmentCode54957.6);Agency designatednegotiator:TimothyDavis;Employeeorganization:Appointed EmployeesCompensationProgram ADJOURNMENT TheCityofCupertinohasadoptedtheprovisionsofCodeofCivilProcedure§1094.6;litigation challengingafinaldecisionoftheCityCouncilmustbebroughtwithin90daysafteradecisionis announcedunlessashortertimeisrequiredbyStateorFederallaw. Priortoseekingjudicialreviewofanyadjudicatory(quasijudicial)decision,interestedpersonsmust fileapetitionforreconsiderationwithintencalendardaysofthedatetheCityClerkmailsnoticeofthe "¯º¿ȟ¹decision.ReconsiderationpetitionsmustcomplywiththerequirementsofCupertinoMunicipal Code§2.08.096.ContacttheCity"²«¸±ȟ¹officeformoreinformationorgoto http://www.cupertino.org/index.aspx?page=125forareconsiderationpetitionform. IncompliancewiththeAmericanswithDisabilitiesAct(ADA),theCityofCupertinowillmake reasonableeffortstoaccommodatepersonswithqualifieddisabilities.Ifyourequirespecialassistance, pleasecontactthecity©²«¸±ȟ¹officeat4087773223atleast48hoursinadvanceofthemeeting. AnywritingsordocumentsprovidedtoamajorityoftheCupertinoCityCouncilafterpublicationof thepacketwillbemadeavailableforpublicinspectionintheCity"²«¸±ȟ¹OfficelocatedatCityHall, 10300TorreAvenue,duringnormalbusinesshoursandinCouncilpacketarchiveslinkedfromthe agenda/minutespageontheCupertinowebsite. 8 CITYCOUNCILSTAFFREPORT Meeting:November19,2013 Subject:ProclamationrecognizingNathanDesaiforearningthehighestBoyScout rankingofEagleScout NOWRITTENMATERIALSINPACKET 9 CITYCOUNCILSTAFFREPORT Meeting:November19,2013 Subject:ProclamationforTheDeAnzaOptimistClubofCupertino NOWRITTENMATERIALSINPACKET 10 DRAFTMINUTES CUPERTINOCITYCOUNCIL RegularAdjournedMeeting Monday,November4,2013 CITYCOUNCILMEETING ROLLCALL At5:15p.m.MayorOrrinMahoneycalledtheCityCouncilmeetingtoorderinthe CommunityHallCouncilChamber,10350TorreAvenue,Cupertino,CA. Present:MayorOrrinMahoney,andCouncilmembersBarryChang,MarkSantoro, andRodSinks.Absent:ViceMayorGilbertWong. CLOSEDSESSION :ConferencewithRealPropertyNegotiator(GovtCodeSection54956.8); 1.Subject Property:22050StevensCreekBoulevard;NegotiatingParties:CityAttorneyand PublicWorksDirector;UnderNegotiation:Priceandterms 2.Subject:Conferencewithlegalcounsel;PendingLitigationȘ&µ¼ȟºCode54956.9(a); Thibadeauv.CityofCupertino,CaseNo.112CV234911 3.Subject:ConferencewithRealPropertyNegotiator(GovtCodeSection54956.8); Property:22772AlcaldeRoad;NegotiatingParties:CityManager,CityAttorney, andPublicWorksDirector;Undernegotiation:Priceandterms 4.Subject:ConferencewithRealPropertyNegotiator(GovtCodeSection54956.8); Property:GreenleafDrive,APN32641114;NegotiatingParties:CityManager,City Attorney,andPublicWorksDirector;Undernegotiation:Priceandterms At5:15p.m.Councilrecessedtoaclosedsession,andreconvenedinopensessionat 6:45p.m.MayorMahoneyannouncedthatforitemnumberone,Councilobtaineda briefingfromtheRealPropertyNegotiatorandgavedirections;foritemnumber two,Councilobtainedabriefingfromlegalcounselandgavedirections;foritem 11 Monday,November4,2013CupertinoCityCouncil numberthree,CouncilobtainedabriefingfromtheRealPropertyNegotiatorand gavedirections;foritemnumberfour,CouncilobtainedabriefingfromtheReal PropertyNegotiatorandgavedirections. PLEDGEOFALLEGIANCE At6:45p.m.MayorOrrinMahoneyreconvenedtheCityCouncilmeetinginthe CommunityHallCouncilChamber,10350TorreAvenue,Cupertino,CAandledthe PledgeofAllegiance. ROLLCALL Present:MayorOrrinMahoney,andCouncilmembersBarryChang,MarkSantoro, andRodSinks.Absent:ViceMayorGilbertWong. CEREMONIALMATTERSANDPRESENTATIONS 5.Subject:PresentationfromSantaClaraCountyDistrictAttorneyJeffRosenaboutthe roleoftheDistrictAttorneysOffice,whattheirOfficedoesandhowtheycanbetter servetheresidentsofCupertino :Receivepresentation RecommendedAction DistrictAttorneyJeffRosengaveapresentationabouttheroleoftheDistrict AttorneysOffice,whattheirOfficedoesandhowtheycanbetterservetheresidents ofCupertino.Councilreceivedthepresentation. 6.Subject:PresentationtoJanetRiddellonher2013CRESTawardandCommissioners award RecommendedAction:Presentawards AvideowasshownnotingJanet1¯ªª«²²ȟ¹workinthecommunity.MayorMahoney presentedthe2013CRESTawardand"µ³³¯¹¹¯µ´«¸ȟ¹awardtoMs.Riddell. 7.Subject:PresentationfromKMVTongrantfundedimprovements RecommendedAction:Receivepresentation KMVTExecutiveDirectorShelleyWolfeandKMVTBoardChairDavidJude introducedavideoshowinghowthegrantfundedimprovementshelpedKMVT supportthecommunityandtheneedtoupgradetheirotherdigitalequipment. Councilreceivedthepresentation. 12 Monday,November4,2013CupertinoCityCouncil 8.Subject:ProclamationrecognizingThomasSanfordforhiscontributiontothe community RecommendedAction:Presentproclamation MayorMahoneypresentedaproclamationtoThomasSanfordforhiscontribution tothecommunity. 9.Subject:ProclamationrecognizingvolunteerstudentsfromtheSiliconValleyKorean School RecommendedAction:Presentproclamations JaneLee,PrincipaloftheSiliconValleyKoreanSchoolintroducedthestudentstobe recognized.MayorMahoneypresentedthecertificatesofappreciationtothe students. POSTPONEMENTS Itemnumber13waspostponedtoallowstafftimetocompileadditionalinformation thatwasrequested. ORALCOMMUNICATIONS SandyJamesrepresentingtheVeteransMemorialFoundationinvitedeveryonetothe VeteransDayceremonyonNovember11at11:00a.m.inMemorialParktohonorall veterans,activedutymilitary,andwomeninthemilitary. CathyHelgersontalkedaboutpollutioncomingfromtheLehighcementplantand notedthatthecancerinherfamilyisdirectlyrelatedtothepollutioncomingfrom Lehigh. CONSENTCALENDAR SinksmovedandChangsecondedtoapprovetheitemsontheConsentCalendarwith theexceptionofitemnumber14whichwaspulledfordiscussionanditemnumber13 whichwaspostponed.Ayes:Chang,Mahoney,Santoro,andSinks.Noes:None. Abstain:None.Absent:Wong. 10.Subject:ApprovetheOctober15CityCouncilminutes RecommendedAction:Approvetheminutes 13 Monday,November4,2013CupertinoCityCouncil 11.Subject:AcceptAccountsPayableforperiodendingOctober4,2013 RecommendedAction:AdoptResolutionNo.13092acceptingAccountsPayable forperiodendingOctober4,2013 12.Subject:AcceptAccountsPayableforperiodendingOctober11,2013 RecommendedAction:AdoptResolutionNo.13093acceptingAccountsPayable forperiodendingOctober11,2013 13.Subject:AdoptarecordsretentionschedulefortheCityofCupertinoand streamlinetherecordsdestructionprocess RecommendedAction:AdoptResolutionNo.13094rescindingResolutionNo.12 039andadoptingarecordsretentionschedulefortheCityofCupertino,inaddition tostreamliningtherecordsdestructionprocess Underpostponements,thisitemwascontinuedtoNovember19. :ApplicationforAlcoholicBeverageLicense,Bitter+Sweet,20560Town 14.Subject CenterLane :ApproveAlcoholicBeverageLicenseforBitter+Sweet,20560 RecommendedAction TownCenterLane ChangmovedandSinkssecondedtoapprovetheAlcoholicBeverageLicensefor Bitter+Sweet,20560TownCenterLane.Themotioncarriedunanimously;Wong absent. :ApplicationforAlcoholicBeverageLicense,ThaiSquare,21267Stevens 15.Subject CreekBoulevard,Suite340 RecommendedAction:ApproveAlcoholicBeverageLicenseforThaiSquare,21267 StevensCreekBoulevard,Suite340 16.Subject:ApplicationforAlcoholicBeverageLicense,Noodles&Company,20735 StevensCreekBoulevard,SuiteH RecommendedAction:ApproveAlcoholicBeverageLicenseforNoodles& Company,20735StevensCreekBoulevard,SuiteH 17.Subject:HousingElementConsultantSelection RecommendedAction:1.Recommendapprovalofthescopeofworkforthe HousingElementupdatefor20142022;and2.RecommendthattheCityCouncil authorizetheCityManagertoapproveacontracttoMIGasplanningconsultantfor professionalservicesforthe20142022HousingElementupdate;and3.Recommend 14 Monday,November4,2013CupertinoCityCouncil thattheCityCouncilauthorizetheCityManagertoapproveacontracttoThe PlanningCenter|DC&Eastheenvironmentalconsultantforprofessionalservicesfor the20142022HousingElementupdate Description:ApprovethescopesofworkfortheHousingElementupdate; AuthorizetheCityManagertoapprovetheattachedcontractwithMIGasthe planningconsultantfortheHousingElementUpdateintheamountnottoexceed $158,575;AuthorizetheCityManagertoapprovetheattachedcontractwithThe PlanningCenter|DC&EtopreparetheEnvironmentalAssessmentfortheHousing ElementUpdateintheamountnottoexceed$45,192;andAuthorizetheCity ManagertoapproveContractChangeOrders(CCO)forcontractsforItems2and3 abovetotheextentthattotalexpendituresdonotexceedthetotalamountofthe projectbudget 18.Subject:EquipmentSharingAgreementbetweentheCityofCupertino,TownofLos GatosandCityofCampbell RecommendedAction:AuthorizetheCityManagertoexecutetheEquipment SharingAgreement(ESA)betweentheCityofCupertino,TownofLosGatosand CityofCampbellonbehalfoftheCityofCupertinoinsubstantiallysimilarformatto theattacheddraftagreement;andauthorizetheCityManagerorhisdesigneeto createandmaintainanEquipmentCatalog,establishingsharedequipmentandrates Writtencommunicationsforthisitemincludedanamendmenttosection5.c.ofthe agreement. 19.Subject:CityProject,2012STPOverlayProject,ProjectNo.201205 RecommendedAction:AcceptProjectNo.201205 20.Subject:CityProject,ReconstructionofCurbs,Gutters,andSidewalks,ProjectNo. 201207 RecommendedAction:AcceptProjectNo.201207 SECONDREADINGOFORDINANCES 21.Subject:Applicationsforasubdivisionofasinglefamilyzonedlotintothree(3) residentiallotsandone(1)privateroadwayarea,andrezoningofasinglefamily zonedpropertyfromR110toR17.5 RecommendedAction:ConductthesecondreadingandenactOrdinanceNo.13 2112:AnOrdinanceoftheCupertinoCityCouncilapprovingtherezoningofa.96 grossacrelot,fromR110(minimumlotsizeof10,000squarefoot)toR17.5 15 Monday,November4,2013CupertinoCityCouncil (minimumlotsizeof7,500squarefeet)locatedat20840McClellanRd,APN35920 031 Description:ApplicationNo(s):TM201203,Z201201EA201204;Applicant: JamesChen(Cherryland,LLC);Location:20840McClellanRoad;ParcelMapto subdivideanexistingsinglefamilylotinto3residentiallotsand1commonarealot; ReZoningofa.96acreparcelfromSingleFamilyResidential(R110)toSingle FamilyResidential(R17.5) ChangmovedandSinkssecondedtoreadOrdinanceNo.132112bytitleonlyand thattheCity"²«¸±ȟ¹readingwouldconstitutethesecondreadingthereof.Ayes: Chang,Mahoney,Santoro,andSinks.Noes:None.Abstain:None.Absent:Wong. ChangmovedandSinkssecondedtoenactOrdinanceNo.132112.Ayes:Chang, Mahoney,Santoro,andSinks.Noes:None.Abstain:None.Absent:Wong. PUBLICHEARINGS None ORDINANCESANDACTIONITEMS 22.Subject:Considerafeewaiverrequestfromthenonprofitorganization,Hindu SwayamsevakSangh(HSS),fortheuseoftheCreeksideParkBuildingfortwo hourseverySundaymorning RecommendedAction:Denyfeewaiverrequest WrittencommunicationsforthisitemincludedaletterfromSanjayTripathi addressedtoCityCouncil. DirectorofParksandRecreationCarolAtwoodreviewedthestaffreport. Thefollowingindividualsspokeinsupportofthefeewaiver. SanjayTripathi Prasanakulkurni MilindMakwana NageshMula,SecretaryoflocalCupertinochapter Ashtha Tripathi MuneeshGoomer MaheshNihalani 16 Monday,November4,2013CupertinoCityCouncil SinksmovedandChangsecondedtodenythefeewaiverrequest.Themotion carriedunanimously;Wongabsent. 23.Subject:Adoptionofthe2013CaliforniaBuilding,Residential,Plumbing, Mechanical,Electrical,Fire,EnergyandGreenBuildingStandardsCodesas mandatedbytheStateofCalifornia RecommendedAction:ConductthefirstreadingofOrdinanceNo.132115:An OrdinanceoftheCityCounciloftheCityofCupertinoAmendingChapter16ofthe CupertinoMunicipalCodeandadoptingthe2013CaliforniaBuildingStandards Codewithappendicesandamendmentsthereto BuildingOfficialAlbertSalvadorreviewedthestaffreportviaaPowerPoint presentation. JoyceEdensaidthatshewouldliketohaveanyreferencetousingconcreteasa greenbuildingmaterialtakenoutoftheGreenBuildingsectionoftheordinance. Councildirectedstafftoreviewandbringbackresponsesandrecommendations regardingproceduresrelatedto16.02.090ɋRightofEntry,andSection16.02.300ɋ Penalty. SinksmovedandChangsecondedtoreadOrdinanceNo.132115bytitleonlyand thattheCity"²«¸±ȟ¹readingwouldconstitutethefirstreadingthereof.Ayes:Chang, Mahoney,Santoro,andSinks.Noes:None.Abstain:None.Absent:Wong. SinksmovedandChangsecondedtoadoptResolutionNo.13095makingfactual findingswithrespecttothelocalgeological,topographical,andclimaticconditions necessarytomakelocalamendmentstotheCaliforniaBuildingStandardsCode.The motioncarriedunanimously;Wongabsent. Councilrecessedfrom8:55p.m.to9:05p.m. 24.Subject:AmicusBriefinNoToxicAir,Inc.v.SantaClaraCounty,etal.(Calif.Court ofAppealCaseNo.H039547,AppealfromSantaClaraCo.SuperiorCourtCaseNo. 111CV201900)ContinuedfromSeptember17 RecommendedAction:ConsiderjoiningtheMidpeninsulaRegionalOpenSpace DistrictȘȠ,1.2#ȡșȍtheCitiesofSunnyvale(subjecttoCityAttorneyreviewand approvaloffinalbrief)andLosAltos,theTownsofLosAltosHillsandPortola Valley,andanyothercitiesthatmaychoosetoparticipateinanamicuscuriaebrief 17 Monday,November4,2013CupertinoCityCouncil intheCourtofAppealinthelitigationlistedabove,andauthorizeamonetary contributionforpreparationoftheamicusbrief WrittencommunicationsforthisitemincludedemailstoCityCouncilandaletter fromRhodaFryaddressedtoStephenTesta. CityAttorneyCarolKoradereadintotherecordabriefstatementnotingthat CouncilmemberChangdidnothaveafinancialconflictofinterestpreventinghim fromvotingonthedecisiontojointheamicusbrief. CouncilmemberChangmadeabriefstatementfortherecordnotingthefollowing: theamicusbriefitemwaspulledfromtheSept17agendaduetoalastminuteattack fromLehighaccusinghimofaconflictofinterest;hewantedtomakeitclearthat eventhoughheistheChairmanoftheBoardforBayAreaforCleanEnvironment (BACE),heneverhasandneverwouldreceiveanycompensationfromBACE;he wouldnotreceiveanyportionofattorneyfeesifBACEwinsthelawsuit;henever publiclyadvocatedtoshutdownLehigh. Thefollowingindividualsspokeinsupportofjoiningtheamicusbrief: SherylSchaffner,GeneralCounselforMidPenOpenSpaceDistrict RandyShingai,SanJoseresident KarenDelCompare JoyceEden BobHogin MatthewTokuno CathyHelgerson GaryEttinger Rokhanna ThorstenvonStein,BayAreaforCleanEnvironment(BACE)member TerriHoornstra JohnBartas PaulaWallis TimBrand DonMacLubbin RhodaFry JanPepper,LosAltosCityCouncilmemberandBayAreaAirQualityManagement District(BAAQMD)BoardofDirectormember GaryWoldeck,MayorLosAltosHills 18 Monday,November4,2013CupertinoCityCouncil Thefollowingindividualsspokeagainstjoiningtheamicusbrief: PaulFindley DonnaAustin NormEliason TimMcRae,EnergyDirectorforSiliconValleyLeadershipGroup DavidWei TomDyer MaheshNihalani HeleneDavis HemantBuch MatthewMahood,PresidentandCEOofSiliconValleyChamberofCommerce KevinMcClelland,PresidentCupertinoChamberofCommerce KelliRichards RamGopal SinksmovedandChangsecondedtojointheMidpeninsulaRegionalOpenSpace DistrictȘȠ,1.2#ȡșȍtheCitiesofSunnyvale(subjecttoCityAttorneyreviewand approvaloffinalbrief)andLosAltos,theTownsofLosAltosHillsandPortola Valley,andanyothercitiesthatmaychoosetoparticipateinanamicuscuriaebrief intheCourtofAppealinthelitigationlistedabove,andauthorizeamonetary contributionupto$5,000forpreparationoftheamicusbrief. ThemotionfailedwithSinksandChangvotingyesandSantoroandMahoney votingno,sonoactionwastaken;Wongabsent. :CancelthefirstmeetinginJanuary,2014 25.Subject RecommendedAction:CancelthefirstmeetinginJanuary,2014 ChangmovedandSantorosecondedtocancelthefirstmeetinginJanuary,2014.The motioncarriedunanimously;Wongabsent. REPORTSBYCOUNCILANDSTAFF 26.Subject:PublicWorksConstructionProjectUpdates RecommendedAction:PresentConstructionProjectUpdateReport WrittencommunicationsforthisitemincludedastaffPowerPointpresentation. 19 Monday,November4,2013CupertinoCityCouncil DirectorofPublicWorksTimmBordenpresentedtheConstructionProjectUpdate reportviaaPowerPointpresentation.Councilreceivedthepresentation. CouncilmemberSinksaskedtohavestaffstudythebudgetallocationandpolicies inplaceascomparedtoothercitiesinourarearegardingtheSisterCitiesandto bringareporttoCouncil.TherewasadditionalCouncilsupportforthisrequest. Councilmembershighlightedtheactivitiesoftheircommitteesandvarious communityevents. ADJOURNMENT At11:30p.m.,themeetingwasadjournedtoTuesday,November19beginningat5:00 p.m.,CommunityHallCouncilChamber,10350TorreAvenue,Cupertino,CA95014. ____________________________ GraceSchmidt,CityClerk Staffreports,backupmaterials,anditemsdistributedattheCityCouncilmeetingare availableforreviewattheCity"²«¸±ȟ¹Office,7773223,andalsoontheInternetat www.cupertino.org.ClickonAgendas&Minutes,thenclickontheappropriatePacket. MostCouncilmeetingsareshownliveonComcastChannel26andAT&TUverse Channel99andareavailableatyourconvenienceatwww.cupertino.org.Clickon Agendas&Minutes,thenclickArchivedWebcast.Videotapesareavailableatthe CupertinoLibrary,ormaybepurchasedfromtheCupertinoCityChannel,7772364. 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 ADMINISTRATIVE SERVICES DEPARTMENT CITY HALL 10 10300 TORRE AVENUE CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3220 www.cupertino.org CITYCOUNCILSTAFFREPORT Meeting:November19,2013 Subject 3¸«§¹»¸«¸ȟ¹InvestmentReportforQuarterEndingSeptember2013 RecommendedAction Acceptthereport DiscussionandFiscalImpact Themarketandadjustedcostvalueofthe"¯º¿ȟ¹portfoliototaled$67.7millionat September30,2013.The¶µ¸º¬µ²¯µȟ¹Septemberyieldof0.28%wasupfromthe0.23% yieldofthepreviousquarterandyearagoperiods.TheLocalAgencyInvestment %»´ªȟ¹(LAIF)benchmark0.26%Septemberyieldrosefrom0.24%inJune,butfellfrom 0.35%ayearago.The"¯º¿ȟ¹and+ (%ȟ¹yieldscontinuetoreflectthelowinterestrates causedbytheFederal1«¹«¸¼«ȟ¹bondbuyingprogramandzeroto0.25%federalfunds rate.Comparedtoayearago,theCityhasdecreasedthemoneymarketandTreasury portionsoftheportfolioandincreasedinvestmentsinLAIFandFederalagenciesto provideadditionalyieldpriortotheprojectedupturninratesin2015.Theaverage lengthtomaturityofthe"¯º¿ȟ¹portfoliohasrisentooneyearcomparedtotheeight monthaverageofayearago. TheportfoliobalanceusuallydecreasesduringtheSeptemberquarterbecauseproperty taxesarenotdueandreceiveduntilthesubsequentquarter.Theportfoliobalancefell $2.4millionthroughthethreemonthperiodbecauseofroutinecapitalandoperating disbursements.Duringthequarter,$5millionofTreasurynotesmatured,with$3 millionusedtopurchasenewTreasuriesand$2millionusedtocovercashoutlays. Investmentgainscausedtheretireehealthtrustmarketvaluetorisefrom$13.3million atJune30,2013to$13.8millionatSeptember30,2013.Thetrustearningsof3.62%for thequarterreflectedabroadstockmarketrallythatwastemperedbyalackluster performanceinthefixedincomeportionoftheportfolio.Theportfoliohasexperienced 9.57%earningsforthepasttwelvemonthsand8.29%annualizedreturnssince inceptioninJuly2010.Sinceinception,theCityhasdeposited$11.2millionintothe trustandearned$2.6million. 55 InvestmentsaretieredtoprovidesufficientcashflowstopayCityobligationsoverthe nextsixmonths.TheyareincompliancewithCityinvestmentpolicyandStatelaw. Marketvaluesonindividualsecuritiesintheinvestmentportfolioareprovidedby WellsFargoBankInstitutionalTrustServicesusingvaluationsfromInteractiveData PricingandReferenceData,Inc. OnNovember6,2013,theAuditCommitteeacceptedthisreportandbecausethe currentinvestmentadvisorhasnotbeenresponsivetoAuditCommitteedirection,the AuditCommitteedirectedthatstaffandasubcommitteeofthefullAuditCommitteeto lookatreplacingtheinvestmentadvisorfortheretireehealthtrust. _____________________________________ Preparedby:DavidWoo,DeputyCityTreasurer Reviewedby:CarolAtwood,CityTreasurer ApprovedforSubmissionby:DavidBrandt,CityManager Attachments:AInvestmentPortfolio BInvestmentsbyType,RateofReturn,andComplianceCharts CRetireeHealthTrustReport 56 City of Cupertino Investment Portfolio September 30, 2013 ACTIVITY DATE COUPONYIELDADJUSTEDMATURITYMARKETUNREALIZED PURCHASEMATURITYDESCRIPTIONRATE To Maturity COSTVALUEVALUEPROFIT/LOSS SECURITIES MATURED 09/26/1107/31/13US Treasury Note 0.38%0.20%2,000,0002,000,0002,000,0000 11/17/1108/31/13US Treasury Note 0.13%0.22%2,000,0002,000,0002,000,0000 03/28/1109/15/13US Treasury Note 0.75%0.96%1,000,0001,000,0001,000,0000 SECURITIES PURCHASED 09/05/1305/31/15US Treasury Note 0.25%0.38%2,993,6973,000,0002,999,4005,703 CITY PORTFOLIO CASH 09/30/13Wells Fargo - Workers Comp Checking24,36124,36124,3610 09/30/13Wells Fargo - Regular Checking341,862341,862341,8620 09/30/13Wells Fargo - Repurchase Agreements0.02%0.02%3,472,3273,472,3273,472,3270 3,838,5503,838,5503,838,5500 LAIF 09/30/13LAIF - State Pool0.26%0.26%4,116,6644,116,6644,116,6640 MONEY MARKET FUNDS 09/30/13Wells Fargo 100% Treasury0.00%0.00%1,088,7561,088,7561,088,7560 1,088,7561,088,7561,088,7560 GOVERNMENT AGENCY NOTES 05/31/1307/17/15Agency notes - FHLMC4.38%0.32%3,217,2633,000,0003,218,250987 05/31/1307/28/15Agency notes - FNMA2.38%0.32%3,111,8173,000,0003,109,620(2,197) 05/31/1309/10/15Agency notes - FHLMC1.75%0.34%3,081,7183,000,0003,079,110(2,608) 05/31/1309/11/15Agency notes - FHLB1.75%0.35%3,081,2493,000,0003,076,350(4,899) 06/11/1310/15/15Agency notes - FNMA1.88%0.47%2,057,0412,000,0002,054,680(2,361) 06/11/1310/26/15Agency notes - FNMA1.63%0.45%2,048,2202,000,0002,048,920700 06/11/1311/16/15Agency notes - FFCB1.50%0.43%2,045,1332,000,0002,045,940808 18,642,44018,000,00018,632,870(9,570) US TREASURY SECURITIES 12/07/1110/31/13US Treasury Note 0.25%0.23%3,000,0423,000,0003,000,360318 01/24/1211/30/13US Treasury Note 0.25%0.22%3,000,1693,000,0003,000,930761 02/14/1212/31/13US Treasury Note 0.13%0.26%2,998,9943,000,0003,000,5701,576 02/14/1201/31/14US Treasury Note 0.25%0.26%2,999,9203,000,0003,002,1002,180 02/29/1202/28/14US Treasury Note 0.25%0.27%3,999,7414,000,0004,003,2803,539 05/14/1203/31/14US Treasury Note 0.25%0.25%2,999,9693,000,0003,002,8202,851 05/14/1204/30/14US Treasury Note 0.25%0.25%2,999,9313,000,0003,003,0603,129 06/25/1205/31/14US Treasury Note 0.25%0.30%999,6771,000,0001,001,0901,413 12/21/1206/30/14US Treasury Note 0.25%0.23%2,000,2692,000,0002,002,2601,991 12/21/1207/31/14US Treasury Note 0.13%0.24%1,998,1392,000,0002,000,4602,321 12/21/1208/31/14US Treasury Note 0.25%0.25%2,000,0852,000,0002,002,4202,335 01/07/1309/30/14US Treasury Note 0.25%0.25%2,000,0902,000,0002,002,6602,570 01/07/1310/31/14US Treasury Note 0.25%0.25%3,000,0003,000,0003,003,5103,510 06/11/1311/15/15US Treasury Note 0.38%0.41%2,997,9493,000,0003,000,2402,291 09/05/1305/31/15US Treasury Note 0.25%0.38%2,993,6973,000,0002,999,4005,703 39,988,67240,000,00040,025,16036,488 Total Managed Portfolio67,675,08267,043,97067,702,00026,918 Average Yield0.28% Average Length to Maturity (in years) 0.97 TRUST PORTFOLIO MONEY MARKET FUNDS Kester Trust 09/30/13Wells Institutional Money Mkt Acct0.07%0.07%48,52948,52948,5290 BOND RESERVE PORTFOLIO Bond Lease Pymt AcctGoldman Sachs Financial Sq Money Mkt0.07%0.07%858585 Bond Reserve Acct Goldman Sachs Financial Sq Money Mkt0.06%0.06%1,589,3561,589,3561,589,3560 Total Bond Reserve Portfolio1,589,4411,589,4411,589,4410 57 LƓǝĻƭƷƒĻƓƷƭ ĬǤ ǤƦĻ ağƓğŭĻķ tƚƩƷŅƚƌźƚ LAIF Cash 6% 6% Money Market 2% Agency Notes 27% US Treasuries 59% Rate of Return Comparison 0.40% 0.35% 0.30% 0.25% 0.20% LAIF 0.15% Cupertino 0.10% At Quarter Ending 58 COMPLIANCE WITH INVESTMENT POLICY City of Cupertino September 30, 2013 CategoryStandardComment Treasury IssuesNo limitComplies US Agencies No limitComplies Medium Term Corporate Bonds30% with A ratingComplies LAIF$50 millionComplies Money Market Funds20%Complies Maximum MaturitiesUp to 5 yearsComplies Per Issuer Max10% (except for Treasuries and US Agencies)Complies Bankers Acceptances 180 days & 40%Complies Commercial Paper270 days & 25%Complies Negotiable Certificates of Deposit30%Complies Repurchase Agreements365 daysComplies Reverse Repurchase agreementsProhibitedComplies 59 60 61 62 63 CITY, - &$1ȟ2OFFICE CITYHALL 1010300TORREAVENUEȧCUPERTINO,CA950143255 TELEPHONE:(408)7773212www.cupertino.org CITYCOUNCILSTAFFREPORT Meeting:November19,2013 Subject ConsiderationandApprovaloftheFirstQuarterFinancialReportforFiscalYear2013 2014 RecommendedAction AccepttheCity,§´§«¸ȟ¹FirstQuarterFinancialReportforFiscalYear20132014 FiscalImpact OnJune11,2013aspartoftheFinalBudgetHearingandAdoptiontheCityCouncil approvedthefollowingchangestotheFY201314ProposedBudget: BUDGETACTIONSAMOUNT ProposedBudget 86,155,772 FinalBudgetHearing&Adoption ParkingStructure(InitialStudy&CEQA)500,000 Pavement 2,000,000 UnrequestedCommunityFunding 20,000 TransfersOut 20,000 WiFiEnhancementandStudy 18,500 RemoveDistributedAntennaSystemfromCIP 125,000 LindaVistaPond 450,000 LibraryCanopy 75,000 FY201314FinalAdoptedBudget89,074,272 TheFY201314FinalBudgetwasbalancedat$89,074,272andusedthecombinationof $83,290,603inrevenueand$7,783,669infundbalanceandonetimefundingsources. 1 64 FinalAdoptedBudgetbyFund $89,074,272 InternalService Enterprise $6,747,947 $8,186,721 7.6% 9.2% Capital $4,302,000 4.8% Debt General $3,171,838 $57,505,270 3.6% 64.5% Special $9,160,496 10.3% AsparttheofFY201213YearEndCloseadditionalfundswerecarriedforward throughencumbrancesandcarryoverappropriationrequeststoFY201314resultingin theAmendedBudgetforthecurrentfiscalyear.TheAmendedBudgetasoftheendof thefirstquarteris$102,393,084andisfundedwith$83,899,103inrevenueand $18,493,981infundbalanceandonetimefundingsources. AmendedOperatingBudgetbyFund $102,393,084 InternalService $7,548,120 Enterprise 7.4% $9,909,822 9.7% General $59,357,620 58.0% Capital $11,076,271 10.8% Debt $3,171,838 3.1% Special $11,329,413 11.1% 2 65 201213FiscalYearEnd TheCityofCupertinoendedFY201213withtotalexpendituresof$85.8million,$17.3 millionlowerthanbudgetedandtotalrevenueof$81.2million,$2.7millionhigherthan estimatedresultinginanincreasetofundbalanceacrossallfundsof$19.9million. Thetablebelowcomparesbyfundtotalbudgetedandactualexpendituresand revenuesandtheresultingchangestofundbalanceasoftheFY201213yearendclose. FY1213FY1213FY1213FY1213Changesto ExpenditureRevenue FundAmendedYearEndEstimatedYearEndFund VarianceVariance BudgetActualsRevenueActualsBalance General$49,899,38044,715,293($5,184,087)$51,135,038$54,661,924$3,526,886($8,710,973) Special8,767,4007,056,199($1,711,201)5,253,0007,797,736$2,544,736($4,255,937) Revenue DebtService3,181,4223,176,922($4,500)3,181,0003,183,299$2,299($6,799) Capital8,640,0611,746,018($6,894,043)6,058,1113,399,849($2,658,262)($4,235,781) Project ($2,435,650) Enterprise8,924,9786,265,229($2,659,749)7,234,8007,010,701($224,099) ($282,824) Internal6,411,8525,608,017($803,835)5,676,3005,155,289($521,011) Service TotalAll $85,825,093$68,567,678($17,257,415)$78,538,249$81,208,798$2,670,549($19,927,964) Funds Discussion TheprimaryfocusoftheFirstQuarterFinancialReportistoprovideanupdateonthe currentstatusoftheCitybudget;thereportalsoreviewscurrentrevenueand expenditurepatternstoensurethatbudgetsareontracktoendtheyearinapositive fiscalpositionandreviewsanysignificantvariancesinexpendituresfromtheprior fiscalyear. GeneralFundUpdate 1«¼«´»« Salestaxesarehighercomparedtothesameperiodlastyear;however,thisisduetothe receiptofafourthquarterremittancefromamajortaxpayerinthefirstquarterofthe year.Excludingthereceiptofthislatepayment,salestaxesaredown1.6%comparedto lastyear.Thisdecreaseissmallerthanexpectedgiventhelossofamajortaxpayer, HewlettPackard.Whilesalestaxesareontracktoendtheyearatbudgetedlevelsat firstquarter,the"¯º¿ȟ¹heavyrelianceonbusinesstobusinesssalestaxleavesit vulnerabletoeconomicandbusinessvolatility.WithsalestaxdatashowingApple,Inc. salestrendingdowncomparedtolastyear,theCitymayexperiencealargerdeclinein salestaxrevenuesthananticipatedintheFY201314Budget. 3 66 Propertytaxrevenueandrevenuereceivedfrompropertytaxesinlieuofvehiclelicense feesarenotreceiveduntilthesecondquarteroftheyear.Basedonthelatestprojections bytheSantaClaraCounty"µ´º¸µ²²«¸ȟ¹Office,"»¶«¸º¯´µȟ¹propertytaxesareexpected increaseby9.8%comparedtolastyear.ThisprojectionishigherthantheFY201314 budgetedrevenueestimate.TransientOccupancyTaxrevenuesarealsoshowingstrong gainswithyeartodaterevenueup19.7%comparedtolastyearduetotheeconomic recoveryandtheopeningofanewhotel. Whilenotreflectedin1Quarterrevenues,asignificantincreaseinrevenuerelatedto st the"µ»´©¯²ȟ¹approvaloftheAppleCampus2developmentisanticipated.An adjustmenttorecognizerevenueassociatedwiththeAppleCampus2developmentwill berequestedatmidyear. $¾¶«´ª¯º»¸«¹ AsofthefirstquartertheGeneralFundisprojectedtoendtheyearwithinbudgeted appropriations.However,afewdepartmentshavenotedthepossibleneedforamid yearadjustment.Thebulkoftheseadjustmentsarerelatedtothebudgetingofthe AppleCampus2projectinprogrambudgets,andotherminoradjustmentsrelatedto itemsomittedfromthefinalbudgetandincreasedprogramactivityintheYouthand TeensprogramsinParksandRecreationandcapitalprojectmanagementservicesin PublicWorks. %»´ª!§²§´©« TheFY201314FinalBudgetanticipatedtheGeneralFundwouldendFY201213with $32.3millionintotalfundbalance,ofwhich$14.2millionwouldbeunassignedfund balancethatcouldtechnicallybeusedforanypurpose.Duetolowerthanbudgeted expendituresandhigherthanestimatedrevenuestheCityendedFY201213with$18 millioninunassignedfundbalanceandatotalfundbalanceof$36million.Thishas resultedinanadditional$2.7millioninavailableprojectedyearendunassignedfund balancethanprojectedatthefinalbudget. CurrentIssuesandChallenges 1«¼«´»«+¯§¨¯²¯º¿ ForFY201213anadditional$1.95millioningrosstaxesrelatedtoaBoardof Equalization(BOE)issuewascollectedbytheCity.AsdescribedintheFY201314 FinalBudgettheBoardofEqualization(BOE)ischallengingthewaysalestaxhad previouslybeencalculatedforataxpayer.Thisadditionalrevenuewillbeaddedtothe newRevenueLiabilityassignmentthatwasincludedintheFinalBudget. 4 67 +§¨µ¸-«µº¯§º¯µ´¹ OnJuly16,2013CityCouncilapprovedthreeyearcontractswithallbargainingunits. Priortonegotiations,atotalcompensationsurveywasconductedbyRenneSloan (PublicLawGroup)toidentifywhereCupertinorankedinregardstocitiesinSanta ClaraCounty.Thecontractsincludedequityadjustmentsforpositionclassifications wheretotalcompensationsurveyedbelowthemedian,anincreaseinpayof1.5%for thefirstyear,1.5%inthesecondyearand1.25%inthethirdyear.Lastly,employees received$83permonthinthefirstyeartowardsaHealthReimbursementAccountto offsetthecostofrisinghealthcareratesandanadditional$80permonthinthesecond yearofthecontract.Inexchange,employeesagreedtopickupallotherincreasesin healthplans,andtocontributeanadditional1.5%,1.5%and1.25%,respectively,ineach yeartowardstheirretirementplans. StaffingImpacts Aspartofareorganizationthatoccurredinthefirstquarter,fourpositionshavebeen transferredfromAdministrativeServiceɋInformationTechnologytoPublicAffairsɋ InformationTechnology.OneadditionalpositionhasbeentransferredfromPublic AffairsɋCommunityOutreachtoParksandRecreationɋCommunityOutreach.The transfersdidnotresultinchangestothe"¯º¿ȟ¹fulltimebenefittedpositioncountof 164.75. Conclusion TheFirstQuarterFinancialReportshowstheCityiswellpositionedtomoveforward. CitystaffwillcontinuetomonitortheFY201314AmendedBudgetandbepreparedto makeappropriaterecommendationsandchangesattheMidYearFinancialReport.As offirstquarter,totalestimatedmidyearadjustmentsare$560,000;thesealongwithany additionalrequestswillbereviewedatmidyear.Atthattime,staffwillidentifyif theserequestscanbeoffsetwithsavingsorproceedwiththerequestforanadjustment. IfmoreurgentbudgetadjustmentsneedtobemadebeforetheMidYearFinancial Report,staffwillbringappropriateandtimelyrecommendationstotheCityCouncilfor consideration Preparedby:KristinaAlfaro,AssistanttotheCityManager/BudgetManager Reviewedby:DavidBrandt,CityManager ApprovedforSubmissionby: Attachments: A:FirstQuarterFinancialReportforFiscalYear20132014 5 68 FirstQuarter FinancialReport FiscalYear201314 CityofCupertino 69 THISPAGEINTENTIONALLYLEFTBLANK 70 TABLEOFCONTENTS INTRODUCTION ...........................................................................................................................................0 BACKGROUND ..............................................................................................................................................0 YEAREND .......................................................................................................................................................1 GENERALFUNDUPDATE ............................................................................................................................2 CURRENTISSUESANDCHALLENGES .....................................................................................................6 CITYCOUNCILANDCOMMISSIONS .......................................................................................................7 DEPARTMENTUPDATES .............................................................................................................................7 DEPARTMENTALREVENUEANDEXPENDITURES ...............................................................................7 STAFFING .......................................................................................................................................................8 SUMMARY ......................................................................................................................................................8 ADMINISTRATION .......................................................................................................................................9 DEPARTMENTUPDATES .............................................................................................................................9 DEPARTMENTALREVENUEANDEXPENDITURES ...............................................................................9 STAFFING .....................................................................................................................................................11 SUMMARY ....................................................................................................................................................11 LAWENFORCEMENT .................................................................................................................................12 DEPARTMENTUPDATES ...........................................................................................................................12 DEPARTMENTALEXPENDITURES ..........................................................................................................12 STAFFING .....................................................................................................................................................13 SUMMARY ....................................................................................................................................................14 71 TABLEOFCONTENTS PUBLICAFFAIRS ..........................................................................................................................................15 DEPARTMENTUPDATES ...........................................................................................................................15 DEPARTMENTALREVENUEANDEXPENDITURES .............................................................................15 STAFFING .....................................................................................................................................................16 SUMMARY ....................................................................................................................................................17 ADMINISTRATIVESERVICES ..................................................................................................................18 DEPARTMENTUPDATES ...........................................................................................................................18 DEPARTMENTALREVENUEANDEXPENDITURES .............................................................................18 STAFFING .....................................................................................................................................................19 SUMMARY ....................................................................................................................................................20 PARKSANDRECREATION ........................................................................................................................21 DEPARTMENTUPDATES ...........................................................................................................................21 DEPARTMENTALREVENUEANDEXPENDITURES .............................................................................21 STAFFING .....................................................................................................................................................23 SUMMARY ....................................................................................................................................................23 PLANNINGANDCOMMUNITYDEVELOPMENT .................................................................................24 DEPARTMENTUPDATES ...........................................................................................................................24 DEPARTMENTALREVENUEANDEXPENDITURES .............................................................................24 STAFFING .....................................................................................................................................................25 SUMMARY ....................................................................................................................................................26 72 TABLEOFCONTENTS PUBLICWORKS ...........................................................................................................................................27 DEPARTMENTUPDATES ...........................................................................................................................27 DEPARTMENTALREVENUEANDEXPENDITURES .............................................................................27 STAFFING .....................................................................................................................................................29 SUMMARY ....................................................................................................................................................29 NONDEPARTMENTAL ..............................................................................................................................30 UPDATES .......................................................................................................................................................30 REVENUEANDEXPENDITURES ..............................................................................................................30 STAFFING .....................................................................................................................................................32 SUMMARY ....................................................................................................................................................32 CONCLUSION ..............................................................................................................................................33 73 INTRODUCTION ThefollowingistheFirstQuarterFinancialReportsubmittedbytheOfficeoftheCity ManagerfortheperiodofJuly1,2013toSeptember30,2013forthe20132014Fiscal Year.IthasbeenpreparedtoinformtheCityCouncil,Cityleadershipandthepublicof the"¯º¿ȟ¹fiscalstatus.Thereportprovidesrevenueandexpendituresummariesfor Cityprogramsbydepartmentandalsoidentifiesorprovidesthestatusofthe"¯º¿ȟ¹ ongoingchallengesandissuesbasedoncurrentinformation. FinalAdoptedBudgetbyFund $89,074,272 InternalService $6,747,947 Enterprise 7.6% $8,186,721 9.2% Capital $4,302,000 4.8% Debt General $3,171,838 $57,505,270 3.6% 64.5% Special $9,160,496 10.3% BACKGROUND OnJune11,2013,theCityCounciladoptedtheFiscalYear201314FinalBudgetforthe CityofCupertino.Thisspendingplanof$89,074,272forallfundsreflecteda3.4%or $2,918,500increasefromthe20132014ProposedBudgetof$86,155,772duetothe followingchangesrecommendedbyCouncilatfinalbudgethearingadoption: 74 BUDGETACTIONSAMOUNT ProposedBudget 86,155,772 FinalBudgetHearing&Adoption ParkingStructure(InitialStudy&CEQA)500,000 Pavement2,000,000 UnrequestedCommunityFunding20,000 TransfersOut20,000 WiFiEnhancementandStudy18,500 RemoveDistributedAntennaSystemfromCIP125,000 LindaVistaPond450,000 LibraryCanopy75,000 FY1314FinalAdoptedBudget89,074,272 The20132014FinalBudgetwasbalancedusingacombinationof$90.8millionin revenueandresultedinaprojectedincreasetofundbalanceof$281,440.Italso includesfundingfor164.75benefittedfulltimepositions,anincreaseof2positions fromtheFY201213FinalBudget. TheFinalBudgetisadjustedthroughouttheyear.Theseadjustmentsincludecarrying forwardappropriationsforobligationsfromthepreviousfiscalyear,adjustmentsas partofMidYearFinancialReport,aswellasadjustmentsapprovedaspartofany separateCouncilagendaitem.Combined,theseadjustmentsresultintheamended operatingbudget. FundFY1314FY1213FY1213BudgetFY1314 FinalEncumbrancesCarryoversAdjustmentsAmended AdoptedJulSeptBudget General$57,505,270$1,238,115$614,235$0$59,357,620 SpecialRevenue9,160,496783,4701,385,447011,329,413 DebtService3,171,8380003,171,838 CapitalProjects4,302,0003,756,5743,017,697011,076,271 Enterprise8,186,72179,3871,643,71409,909,822 InternalService6,747,947288,667511,50607,548,120 TotalAllFunds$89,074,272$6,146,213$7,172,599$0$102,393,084 YEAREND TheCityofCupertinoendedFY201213withtotalexpendituresof$85.8million,$17.3 millionlowerthanbudgetedandtotalrevenueof$81.2million,$2.7millionhigherthan estimatedresultinginanincreasetofundbalanceacrossallfundsof$19.9million.In theGeneralFundthe"¯º¿ȟ¹fundbalancematerializedhigherthanexpectedduetoa Њ 75 combinationoflowerthanbudgetedexpensesandhigherthanestimatedrevenues, resultingin$8.7millioninadditionalfundbalance. Thetablebelowcomparesbyfundtotalbudgetedandactualexpendituresand revenuesandtheresultingchangestofundbalanceasoftheFY201213yearendclose. FY1213FY1213 FY1213FY1213Changesto ExpenditureRevenue FundAmendedYearEndEstimatedYearEndFund VarianceVariance BudgetActualsRevenueActualsBalance ($8,710,973) General$49,899,38044,715,293($5,184,087)$51,135,038$54,661,924$3,526,886 Special8,767,4007,056,199($1,711,201)5,253,0007,797,736$2,544,736($4,255,937) Revenue ($6,799) DebtService3,181,4223,176,922($4,500)3,181,0003,183,299$2,299 Capital8,640,0611,746,018($6,894,043)6,058,1113,399,849($2,658,262)($4,235,781) Project ($2,435,650) Enterprise8,924,9786,265,229($2,659,749)7,234,8007,010,701($224,099) Internal6,411,8525,608,017($803,835)5,676,3005,155,289($521,011)($282,824) Service TotalAll $85,825,093$68,567,678($17,257,415)$78,538,249$81,208,798$2,670,549($19,927,964) Funds GENERALFUNDUPDATE GeneralFundRevenueProjections Asoffirstquarter,actualGeneralFundrevenuewas$8.2millioncomparedto$8.3 millionforthesameperiodoneyearago.Thisamountrepresents15.7%oftheFY2013 14FinalBudgetwhichisjustabovetherangeusedforcomparativepurposes.Forthe previousfouryears,firstquarterGeneralFundrevenuehasrangedfrom15.0%to15.5% ofthetotalyearendactualcollections.Thefollowingchartshowsafiveyearhistoryof firstquarteractivity: Ћ 76 GeneralFund1«¼«´»«ɌFiveYearComparison (InMillions) $60.0 $54.7 $52.2$52.2 $51.1 $47.6 $50.0 $44.6 $43.3 $41.0 $38.9 $40.0 $36.1 $30.0 $20.0 $8.3 $8.2 $7.4 $10.0 $6.3 $5.4 $ 200910201011201112201213201314 3MonthActualBudgetYearEndActual TheFinanceDivisioncloselywatchesthisrevenuesourceandwillrecommendchanges asnecessarywiththeMidYearFinancialReportinFebruary2014.Salestaxesare highercomparedtothesameperiodlastyear;however,thisisduetothereceiptofa fourthquarterremittancefromamajortaxpayerinthefirstquarteroftheyear. Excludingthereceiptofthislatepayment,salestaxesaredown1.6%comparedtolast year.Thisdecreaseissmallerthanexpectedgiventhelossofamajortaxpayer,Hewlett Packard.Whilesalestaxesareontracktoendtheyearatbudgetedlevelsatfirst quarter,the"¯º¿ȟ¹heavyrelianceonbusinesstobusinesssalestaxleavesitvulnerable toeconomicandbusinessvolatility.WithsalestaxdatashowingApple,Inc.sales trendingdowncomparedtolastyear,theCitymayexperiencealargerdeclineinsales taxrevenuesthananticipatedintheFY201314Budget. Propertytaxrevenueandrevenuereceivedfrompropertytaxesinlieuofvehiclelicense feesarenotreceiveduntilthesecondquarteroftheyear.Basedonthelatestprojections bytheSantaClaraCounty"µ´º¸µ²²«¸ȟ¹Office,"»¶«¸º¯´µȟ¹propertytaxesareexpected increaseby9.8%comparedtolastyear.ThisprojectionishigherthantheFY201314 budgetedrevenueestimate.TransientOccupancyTaxrevenuesarealsoshowingstrong gainswithyeartodaterevenueup19.7%comparedtolastyearduetotheeconomic recoveryandtheopeningofanewhotel. Whilenotreflectedin1Quarterrevenues,asignificantincreaseinrevenuerelatedto st the"µ»´©¯²ȟ¹approvaloftheAppleCampus2developmentisanticipated.An adjustmenttorecognizerevenueassociatedwiththeAppleCampus2developmentwill berequestedatmidyear. Ќ 77 Eachyearonlyasmallportionofthediscretionaryrevenuepostsbeforetheendofthe firstquarterandadjustmentstothisbudgetarenormallypostponeduntilsixmonthsof actualsareposted.Wewillcontinuetomonitorgeneralfundrevenuesourcesandwill requestadjustmentsasnecessaryatthetimeoftheMidYearFinancialReport. GeneralFundExpenditureProjections Asoffirstquarter,actualGeneralFundexpendituresare$13millioncomparedto$15.1 millionforthesameperiodoneyearago.Thisamountrepresents22%oftheFY201314 FinalBudgetwhichisjustbelowtherangeusedforcomparativepurposes.Forthe previousfouryears,firstquarterGeneralFundexpenditureshaverangedfrom22.3%to 33.8%ofthetotalyearendactualexpenditures.Thefollowingchartshowsafiveyear historyoffirstquarteractivity: GeneralFund$¾¶«´ª¯º»¸«¹ɌFiveYearComparison (InMillions) $70.0 $59.4$59.4 $60.0 $50.0 $45.9 $45.2 $44.7$44.7 $44.2 $42.3 $41.3 $40.7 $40.0 $30.0 $20.0 $15.1 $13.0 $10.4 $9.4 $9.4 $10.0 $ 200910201011201112201213201314 3MonthActualBudgetYearEndActual AsofthefirstquartertheGeneralFundisprojectedtoendtheyearwithinbudgeted appropriations.However,afewdepartmentshavenotedthepossibleneedforamid yearadjustment.Thebulkoftheseadjustmentsarerelatedtothebudgetingofthe AppleCampus2projectinprogrambudgets,andotherminoradjustmentsrelatedto itemsomittedfromthefinalbudgetandincreasedprogramactivityintheYouthand TeensprogramsinParksandRecreationandcapitalprojectmanagementservicesin PublicWorks. GeneralFundɋFundBalanceReview TheFY201314FinalBudgetanticipatedtheGeneralFundwouldendFY201213with $32.3millionintotalfundbalance,ofwhich$14.2millionwouldbeunassignedfund Ѝ 78 balancethatcouldtechnicallybeusedforanypurpose.Duetolowerthanbudgeted expendituresandhigherthanestimatedrevenuestheCityendedFY201213with$18 millioninunassignedfundbalanceandatotalfundbalanceof$36million.Thishas resultedinanadditional$2.7millioninavailableprojectedyearendunassignedfund balancethanprojectedatthefinalbudget.Thechangesinfundbalanceareillustrated inthetablebelow: GeneralFundClassificationofFund!§²§´©«Ɍ ProjectionYearEndVarianceAdopted CLASSIFICATION20122013201213201314 NonSpendable LoansReceivable937,011920,593(16,418)937,011 PrepaidItems66,42836,234(30,194)66,428 TotalNonSpendable1,003,439956,827(46,612)1,003,439 Restricted PublicAccessTelevision695,564725,90330,339695,564 TotalRestricted695,564725,90330,339695,564 Committed Noneinthisclassification TotalCommitted Assigned EconomicUncertaintyI12,500,00012,500,00012,500,000 EconomicUncertaintyII1,400,0001,400,0001,400,000 EconomicFluctuation2,000,0002,000,0002,000,000 PERS500,000500,000500,000 OneTimeRevnue EquipmentFundLoanfor1A ReserveforEncumbrances172,6591,267,2331,094,574172,659 RevenueLiability3,920,000 GeneralBuilding357,449 TotalAssigned16,572,65917,667,2331,094,57420,850,108 Unassigned14,010,51316,694,3462,683,8334,416,454 TOTALFUNDBALANCE32,282,17536,044,3093,762,13426,965,565 Ў 79 CURRENTISSUESANDCHALLENGES AsdiscussedintheFY201314FinalBudget,theCityfacesanumberofchallengesin thecomingfiscalyears.Thefollowingisanupdateonthosethathavehadsignificant changeorprogressthroughthefirstquarterofthefiscalyear. SalesTaxLiability ForFY201213anadditional$1.95millioningrosstaxesrelatedtoaBoardof Equalization(BOE)issuewascollectedbytheCity.AsdescribedintheFY201314 FinalBudgettheBoardofEqualization(BOE)ischallengingthewaysalestaxhad previouslybeencalculatedforataxpayer.Thisadditionalrevenuewillbeincludedas partofanewRevenueLiabilityassignmentthatwasincludedintheFinalBudget. LaborNegotiations OnJuly16,2013CityCouncilapprovedthreeyearcontractswithallbargainingunits. Priortonegotiations,atotalcompensationsurveywasconductedbyRenneSloan (PublicLawGroup)toidentifywhereCupertinorankedinregardstocitiesinSanta ClaraCounty.Thecontractsincludedequityadjustmentsforpositionclassifications wheretotalcompensationsurveyedbelowthemedian,anincreaseinpayof1.5%for thefirstyear,1.5%inthesecondyearand1.25%inthethirdyear.Lastly,employees received$83permonthinthefirstyeartowardsaHealthReimbursementAccountto offsetthecostofrisinghealthcareratesandanadditional$80permonthinthesecond yearofthecontract.Inexchange,employeesagreedtopickupallotherincreasesin healthplans,andtocontributeanadditional1.5%,1.5%and1.25%,respectively,ineach yeartowardstheirretirementplans. Џ 80 CityCouncilandCommissions DEPARTMENTUPDATES InordertobetteridentifyexpensesrelatedtotheSisterCitiesProgramithasbecomeits ownbudget.PreviouslysistercitiesfundswerepartoftheCityCouncilbudget,inthe firstquarter$19,000ofbudgetedsistercitiesexpensesweretransferredoutoftheCity CouncilbudgetandintothenewSisterCitiesprogrambudget. DivisionFY1314FY1213FY1213BudgetFY1314 FinalEncumbrancesCarryoversAdjustmentsAmended AdoptedJulSeptBudget CityCouncil$513,707$0$0$19,000$494,707 Community30,00000030,000 Funding SisterCities00019,00019,000 Commissions230,848000230,848 TotalAllFunds$774,555$0$0$0$774,555 DEPARTMENTALREVENUEANDEXPENDITURES FortheprogrambudgetsthatarepartofCouncilsandCommissions,asofSeptember 30,2013,actualrevenuecollectedis$28,224or25%ofbudgetedrevenue.FiscalYear 201314isthefirstyearrevenuewasbudgetedattheprogramlevel.Inthenexttwoto threeyearsastheCitygathersmorerevenuedata,additionalanalysiswillbeincluded forrevenuesimilartoexpenditures. AsofSeptember30,2013,expendituresare$185,416thisrepresents23.9%ofthe budgetedappropriations.Expendituresatthefirstquarterpointofthepriorthreeyears werebetween21.4%and25.2%thefinalactualexpenditures,placingthisyearwithin therange. Thefollowingchartprovidesacomparisonofexpenditures.Thiscomparisonshows firstquarterandyearendforathreeyearperiod,includingthecurrentyear,forthe budgetswithinCouncilsand"µ³³¯¹¹¯µ´ȟ¹Ȏ А 81 CityCouncilandCommissions ThreeYearExpenditureComparison υБЉЉͲЉЉЉ͵Љ υАЉЉͲЉЉЉ͵Љ υЏЉЉͲЉЉЉ͵Љ υЎЉЉͲЉЉЉ͵Љ υЍЉЉͲЉЉЉ͵Љ υЌЉЉͲЉЉЉ͵Љ υЋЉЉͲЉЉЉ͵Љ υЊЉЉͲЉЉЉ͵Љ υ {ĻƦЊЊWǒƓЊЋ{ĻƦЊЊWǒƓЊЋ{ĻƦЊЋWǒƓЊЌ{ĻƦЊЌWǒƓЊЍ CźƭĭğƌĻğƩЊЊЊЋCźƭĭğƌĻğƩЊЊЊЋCźƭĭğƌĻğƩЊЋЊЌCźƭĭğƌĻğƩЊЌЊЍ 9ǣƦĻƓķźƷǒƩĻυЊЊЏͲЊЌАυЍЏЉͲЌЌЉυЊЊЊͲЌЎЍυЍЏЋͲЉЍЏυЊЊЋͲЊАВυЎЋЌͲБЎАυЊБЎͲЍЊЏυААЍͲЎЎЎ Significantvariationsthisyear,comparedtothesametimeperiodoneyearagoinclude: CityCouncilɋAnincreaseofapproximately$72,000primarilyrelatedtonew internalservicechargesrelatedtoCityChannel. STAFFING Nostaffingchanges. SUMMARY AtthefirstquarterpointofthefiscalyearprogrambudgetswithinCouncilsand Commissionsareprojectedtoendtheyearwithinbudgetedappropriations. Б 82 Administration DEPARTMENTUPDATES AspartoftheFY201213YearEndClosedepartmentsthatarepartofAdministration encumbered$1,800forpurchaseordersoutstandingand$12,807inprioryearcarry overs;$2,807incostsassociatedwithaneventthathadbeenscheduletooccurin FY201213butwaspostponeduntilFY201314and$10,000foraconsultingcontract. DivisionFY1314FY1213FY1213BudgetFY1314 FinalEncumbrancesCarryoversAdjustmentsAmended AdoptedJulSeptBudget CityManager$1,025,282$0$2,807$0$1,028,089 CityClerk671,1331,80000672,933 CityMgrDiscFund427,374000427,374 CityAttorney1,275,539010,00001,285,539 TotalAllFunds$3,399,328$1,800$12,807$0$3,413,935 DEPARTMENTALREVENUEANDEXPENDITURES FortheprogrambudgetsthatarepartofAdministration,asofSeptember30,2013, actualrevenuecollectedis$138,186or25%ofestimatedrevenue.FiscalYear201314is thefirstyearrevenuewasbudgetedattheprogramlevel.Inthenexttwotothreeyears astheCitygathersmorerevenuedata,additionalanalysiswillbeincludedforrevenue similartoexpenditures. AsofSeptember30,2013,expendituresare$707,461representing20.7%ofthebudgeted appropriations.Expendituresatthefirstquarterpointofthepriorthreeyearsranged from17.3%and23.9%ofthefinalactualexpenditures,placingthisyearwithinthe range. Thefollowingchartprovidesacomparisonofexpenditures.Thiscomparisonshows firstquarterandyearendforathreeyearperiod,includingthecurrentyear,forthe budgetswithinAdministration: В 83 Administration ThreeYearExpenditureComparison υЌͲЎЉЉͲЉЉЉ͵Љ υЌͲЉЉЉͲЉЉЉ͵Љ υЋͲЎЉЉͲЉЉЉ͵Љ υЋͲЉЉЉͲЉЉЉ͵Љ υЊͲЎЉЉͲЉЉЉ͵Љ υЊͲЉЉЉͲЉЉЉ͵Љ υЎЉЉͲЉЉЉ͵Љ υ {ĻƦЊЊWǒƓЊЋ{ĻƦЊЊWǒƓЊЋ{ĻƦЊЋWǒƓЊЌ{ĻƦЊЌWǒƓЊЍ CźƭĭğƌĻğƩЊЊЊЋCźƭĭğƌĻğƩЊЊЊЋCźƭĭğƌĻğƩЊЋЊЌCźƭĭğƌĻğƩЊЌЊЍ 9ǣƦĻƓķźƷǒƩĻυЋЉЋͲЋЉЌυЊͲЉЏАͲАЍЉυЋЎЎͲАЋЌυЊͲЉАЊͲЉЋЊυЋЎЏͲЉЌЎυЊͲЍБЊͲЌЊАυАЉАͲЍЏЊυЌͲЍЊЌͲВЌЎ Significantvariationsthisyear,comparedtothesametimeperiodoneyearagoinclude: CityManagerɋAnincreaseofapproximately$63,000duetostaffing.Atthis timelastyeartheCityManagerpositionhadnotyetbeenfilledandanew positionwasaddedinFY201213thatwasnotpreviouslyincludedinthebudget; EnvironmentalAffairs,EconomicDevelopment,CityClerkandCommunity .»º¸«§©®ɋOveralltheseprogramsaccountfora$167,000increaseduetothe transferinofEnvironmentalAffairsandEconomicDevelopmentfromPublic AffairsandPlanningandisoffsetbythetransferoutofCommunityOutreachto PublicAffairs.WithinEconomicDevelopmentaslightvarianceexistsoverthe prioryearandisduetoprintingofmarketingcollateralmaterialsinadvertently chargedtoFY201314thatshouldhavebeenchargedtoFY201213,aChamberof CommercemembershipandthetimingofamembershippaymenttoJoint Venture; ЊЉ 84 City ººµ¸´«¿ɋAnincreaseof$223,000isprimarilyduetostaffingandcosts relatedtotheApple2Campus.InFY201213theAssistantCityAttorneyand LegalServiceManagerwerebothvacant.AsofthefirstquarterinFY201314 bothpositionshadbeenfilledresultinginhighersalarycostsfromprioryear.In addition,inthecurrentyearcostsassociatedwiththeAppleCampus2are includedinprogrambudgetsresultinginincreasedexpenditures. STAFFING Nostaffingchanges. SUMMARY AtthefirstquarterpointofthefiscalyearprogrambudgetswithinAdministrationare projectedtoendtheyearwithinbudgetedappropriations.Itisanticipatedthatthree programswithinAdministrationmayrequireamidyearadjustment.TheCityClerk DuplicatingandMailservicesprogramanticipatesa$17,000increaseduetocopier maintenancecoststhatwereinadvertentlycutfromthefinalbudgetandEconomic developmentmayrequirea$5,000increasetocoverprintedmaterialcostsduetocosts fromFY201213thatwerebilledtoFY201314.TheCityAttorneyanticipatesa$250,000 increaseduetoAppleCampus2costsnotpreviouslyincludedinthefinalbudget. PossibleadjustmentswillbereviewedaspartoftheFY201314MidYearFinancial Report. ЊЊ 85 LawEnforcement DEPARTMENTUPDATES Asoffirstquartertherearenoupdatestoreport. DivisionFY1314FY1213FY1213BudgetFY1314 FinalEncumbrancesCarryoversAdjustmentsAmended AdoptedJulSeptBudget LawEnforcement$9,426,865$0$0$0$9,426,865 Interoperability 48,00000048,000 Project CodeEnforcement 517,369000517,369 TotalAllFunds$9,992,234$0$0$0$9,992,234 DEPARTMENTALEXPENDITURES AsofSeptember30,2013,expendituresare$2.5million,representing25.2%ofthe budgetedappropriations.Expendituresatthefirstquarterpointofthepriorthreeyears werebetween24.6%and26.8%ofthefinalactualexpenditures,placingthisyearwithin therange. Thefollowingchartprovidesacomparisonofexpenditures.Thiscomparisonshows firstquarterandyearendforathreeyearperiod,includingthecurrentyear,forthe budgetswithinLawEnforcement: ЊЋ 86 LawEnforcement ThreeYearExpenditureComparison υЊЉͲЉЉЉͲЉЉЉ͵Љ υВͲЉЉЉͲЉЉЉ͵Љ υБͲЉЉЉͲЉЉЉ͵Љ υАͲЉЉЉͲЉЉЉ͵Љ υЏͲЉЉЉͲЉЉЉ͵Љ υЎͲЉЉЉͲЉЉЉ͵Љ υЍͲЉЉЉͲЉЉЉ͵Љ υЌͲЉЉЉͲЉЉЉ͵Љ υЋͲЉЉЉͲЉЉЉ͵Љ υЊͲЉЉЉͲЉЉЉ͵Љ υ {ĻƦЊЊWǒƓЊЋ{ĻƦЊЊWǒƓЊЋ{ĻƦЊЋWǒƓЊЌ{ĻƦЊЌWǒƓЊЍ CźƭĭğƌĻğƩЊЊЊЋCźƭĭğƌĻğƩЊЊЊЋCźƭĭğƌĻğƩЊЋЊЌCźƭĭğƌĻğƩЊЌЊЍ 9ǣƦĻƓķźƷǒƩĻυЋͲЊВЋͲЏЋЊυБͲЍЌЍͲББЏυЋͲЋЏЊͲВААυБͲЍЍЎͲВЊЏυЋͲЋЎАͲЋЋЉυБͲАБЌͲББЏυЋͲЎЊЌͲБЍАυВͲВВЋͲЋЌЍ Significantvariationsthisyear,comparedtothesametimeperiodoneyearagoinclude: LawEnforcementSantaClaraSheriffɋAnincreaseof$112,000asaresultof serviceenhancementsaddedtotheFY201314contract,includingtheadditionof 1.0Sheriffposition; CodeEnforcementɋAnincreaseof$121,000giventhereallocationofaCode EnforcementOfficerfromtheAdministrativeServicesDepartmenttoLaw EnforcementinFY201314; InteroperabilityProjectɋAnincreaseof$48,000duetothereallocationofthis projectfromtheAdministrativeServicesDepartmenttoLawEnforcementin FY201314. STAFFING Therearenostaffingchanges. ЊЌ 87 SUMMARY AtthefirstquarterpointofthefiscalyearprogrambudgetswithinLawEnforcement areprojectedtoendtheyearwithinbudgetedappropriations. ЊЍ 88 PublicAffairs DEPARTMENTUPDATES AspartoftheCity,§´§«¸ȟ¹restructuringplan,theInformationTechnologydivision wasmovedtothePublicAffairsDepartmentforAdministrativeServices.Inaddition, CommunityOutreach,DisasterPreparednessandNeighborhoodWatchbudgetshave beenmovedtoParksandRecreationtoformthenewNeighborhoodServicesDivision. AspartoftheFY201213YearEndClosetheCityWebsiteencumbered$5,000for purchaseordersoutstanding. DivisionFY1314FY1213FY1213BudgetFY1314 FinalEncumbrancesCarryoversAdjustmentsAmended AdoptedJulSeptBudget PublicAffairs$749,413$0$0$277,285$472,128 Government 984,546000984,546 Channel CityWebsite 231,0965,00000236,096 Information 0002,428,9182,428,918 Technology TotalAllFunds$1,965,055$5,000$0$2,151,633$4,121,688 DEPARTMENTALREVENUEANDEXPENDITURES FortheprogrambudgetsthatarepartofPublicAffairs,asofSeptember30,2013,actual revenuecollectedis$703,559or25%ofestimatedrevenue.FiscalYear201314isthe firstyearrevenuewasbudgetedattheprogramlevel.Inthenexttwotothreeyearsas theCitygathersmorerevenuedata,additionalanalysiswillbeincludedforrevenue similartoexpenditures. AsofSeptember30,2012,expendituresare$574,247representing13.9%ofthebudgeted appropriations.Expendituresatthefirstquarterpointofthepriorthreeyearswere between19.6%and21.3%ofthefinalactualexpenditures,placingthisyearbelowthe range.ThisisduetothetransferinofInformationTechnologyfromAdministrative Servicesaspartoftherestructure. Thefollowingchartprovidesacomparisonofexpenditures.Thiscomparisonshows firstquarterandyearendforathreeyearperiod,includingthecurrentyear,forthe budgetswithinPublicAffairs: ЊЎ 89 PublicAffairs ThreeYearExpenditureComparison υЍͲЎЉЉͲЉЉЉ͵Љ υЍͲЉЉЉͲЉЉЉ͵Љ υЌͲЎЉЉͲЉЉЉ͵Љ υЌͲЉЉЉͲЉЉЉ͵Љ υЋͲЎЉЉͲЉЉЉ͵Љ υЋͲЉЉЉͲЉЉЉ͵Љ υЊͲЎЉЉͲЉЉЉ͵Љ υЊͲЉЉЉͲЉЉЉ͵Љ υЎЉЉͲЉЉЉ͵Љ υ {ĻƦЊЊWǒƓЊЋ{ĻƦЊЊWǒƓЊЋ{ĻƦЊЋWǒƓЊЌ{ĻƦЊЌWǒƓЊЍ CźƭĭğƌĻğƩЊЊЊЋCźƭĭğƌĻğƩЊЊЊЋCźƭĭğƌĻğƩЊЋЊЌCźƭĭğƌĻğƩЊЌЊЍ 9ǣƦĻƓķźƷǒƩĻ υЋВЋͲЏЎЏυЊͲЍВАͲЋЏЌυЌЎЌͲЋЊЋυЊͲЏЎВͲБЎЏυЌЊЍͲАЊЎυЊͲЍБЏͲВЊЌυЎАЍͲЋЍАυЍͲЊЋЊͲЏББ Significantvariationsthisyear,comparedtothesametimeperiodoneyearagoinclude: PublicAffairsɋAnincreaseofapproximately$50,000duetotimingofcontract andpostagepayments.Boththesepaymentswerepostedafterthefirstquarter inFY201213; GovernmentChannelɋAdecreaseofapproximately$20,000duetochangein methodologyonhowinformationtechnologychargesarespread; InformationTechnologyɋAnincreaseof$259,785duetothetransferinofthe InformationTechnologybudgetfromAdministrativeServices. STAFFING FourpositionsfromInformationTechnologyhavebeentransferredintoPublicAffairs fromAdministrativeServices. ЊЏ 90 SUMMARY AtthefirstquarterpointofthefiscalyearprogrambudgetswithinPublicAffairsare projectedtoendtheyearwithinbudgetedappropriations. ЊА 91 AdministrativeServices DEPARTMENTUPDATES AspartoftheCity,§´§«¸ȟ¹restructuringplan,theInformationTechnologydivision wasmovedtothePublicAffairsDepartment.Inaddition,managementofthelibrary servicescontractwiththeCountyofSantaClaraandrelatedfundingforextraoperating hourswastransferredtotheParksandRecreationDepartment,NeighborhoodServices Division.AspartoftheFY201213YearEndClosedivisionswithinAdministrative Servicesencumbered$25,000formedicalconsultantcostsand$183,005incarryoversfor parttimestaffcostsrelatedtoaleaveofabsenceandAssociationofBayArea Government(ABAG)charges. DivisionFY1314FY1213FY1213BudgetFY1314 FinalEncumbrancesCarryoversAdjustmentsAmended AdoptedJulSeptBudget Administration$847,934$0$6,348(350,400)$503,882 Finance 994,326085,65701,079,983 HumanResources 3,452,91525,00091,00003,568,915 Information 1,857,61400(1,857,614)0 Technology TotalAllFunds$7,152,789$25,000$183,005($2,208,014)$5,152,780 DEPARTMENTALREVENUEANDEXPENDITURES FortheprogrambudgetsthatarepartofAdministrativeServices,asofSeptember30, 2013,actualrevenuecollectedis$684,374or23%ofestimatedrevenue.FiscalYear2013 14isthefirstyearrevenuewasbudgetedattheprogramlevel.Inthenexttwotothree yearsastheCitygathersmorerevenuedata,additionalanalysiswillbeincludedfor revenuesimilartoexpenditures. AsofSeptember30,2013,expendituresare$996,131,representing19.3%ofthe budgetedappropriations.Expendituresatthefirstquarterpointofthepriorthreeyears werebetween17.9%and21.9%ofthefinalactualexpenditures,placingthisyearwithin therange. Thefollowingchartprovidesacomparisonofexpenditures.Thiscomparisonshows firstquarterandyearendforathreeyearperiod,includingthecurrentyear,forthe budgetswithinAdministrativeServices: ЊБ 92 AdministrativeServices ThreeYearExpenditureComparison υВͲЉЉЉͲЉЉЉ͵Љ υБͲЉЉЉͲЉЉЉ͵Љ υАͲЉЉЉͲЉЉЉ͵Љ υЏͲЉЉЉͲЉЉЉ͵Љ υЎͲЉЉЉͲЉЉЉ͵Љ υЍͲЉЉЉͲЉЉЉ͵Љ υЌͲЉЉЉͲЉЉЉ͵Љ υЋͲЉЉЉͲЉЉЉ͵Љ υЊͲЉЉЉͲЉЉЉ͵Љ υ {ĻƦЊЊWǒƓЊЋ{ĻƦЊЊWǒƓЊЋ{ĻƦЊЋWǒƓЊЌ{ĻƦЊЌWǒƓЊЍ CźƭĭğƌĻğƩЊЊЊЋCźƭĭğƌĻğƩЊЊЊЋCźƭĭğƌĻğƩЊЋЊЌCźƭĭğƌĻğƩЊЌЊЍ 9ǣƦĻƓķźƷǒƩĻ υЊͲЍЌБͲЊЊЋυАͲЋЉВͲЏЍВυЊͲЏАЉͲЍБЉυАͲЏЍЎͲЎЎЋυЊͲЍЏЍͲЍЌЊυБͲЋЉЎͲАЌЏυВВЏͲЊЌЊυЎͲЊЎЋͲАБЉ Significantvariationsthisyear,comparedtothesametimeperiodoneyearagoinclude: FinanceɋA$27,432increaseduetotheadditionofaSeniorManagement AnalystpositioninDecember2012; HumanResourcesDivisionɋA$52,960increaseduetoavacancythatwasfilled inNovember2012. InformationTechnologyDivisionɋA$192,679decreaseduetothisprogram beingtransferredouttoPublicAffairsinthefirstquarterofFY201314. STAFFING FourpositionsfromInformationTechnologyhavebeentransferredoutof AdministrativeServicesandintoPublicAffairs. ЊВ 93 SUMMARY TheInsuranceAdministrationprogrambudgetistrackingtoexceedbudgeted appropriationsduetohigherthanprojectedclaimscoststhroughSeptember30,2013. TheDepartmentwillmonitorclaimscostsandrequestaMidYearadjustmentif necessary. ЋЉ 94 ParksandRecreation DEPARTMENTUPDATES AspartoftheCity,§´§«¸ȟ¹restructuringplan,LibraryExtraHoursbudgethasbeen transferredinfromAdministrativeServicesandtheCommunityOutreach, NeighborhoodWatchandDisasterPreparednessbudgetshavebeentransferredinfrom PublicAffairstotheParksandRecreationDepartment,NeighborhoodServices Division.AspartoftheFY201213YearEndClosedivisionswithinParksand Recreationencumbered$18,030forpurchaseordersoutstandingand$76,917in carryoversforthepurchaseofmaterialsandsuppliesforvariousparksprogramsand remodelingcosts. DivisionFY1314FY1213FY1213BudgetFY1314 FinalEncumbrancesCarryoversAdjustmentsAmended AdoptedJulSeptBudget Parksand $336,210$0$999$0$337,209 Recreation Facilitiesand 1,752,7053,50126,46101,782,667 CommunityEvents YouthandTeen 2,130,804022,14502,152,949 Programs SportsandFitness 4,028,15814,52919,91104,062,598 SeniorPrograms 1,441,91207,40101,449,313 Neighborhood 000689,685689,685 Services TotalAllFunds$9,689,789$18,030$76,917$689,685$10,474,421 DEPARTMENTALREVENUEANDEXPENDITURES FortheprogrambudgetsthatarepartofParksandRecreation,asofSeptember30, 2013,actualrevenuecollectedis$2.2millionor32.4%.FiscalYear201314isthefirst yearrevenuewasbudgetedattheprogramlevel.Inthenexttwotothreeyearsasthe Citygathersmorerevenuedata,additionalanalysiswillbeincludedforrevenuesimilar toexpenditures. ЋЊ 95 AsofSeptember30,2013,expendituresare$2.4million,representing22.9%ofthe budgetedappropriations.Expendituresatthefirstquarterpointofthepriorthreeyears werebetween26.1%and30.8%ofthefinalactualexpenditures,placingthisyearbelow therange. Thefollowingchartprovidesacomparisonofexpenditures.Thiscomparisonshows firstquarterandyearendforathreeyearperiod,includingthecurrentyear,forthe budgetswithinParksandRecreation: ParksandRecreation ThreeYearExpenditureComparison υЊЋͲЉЉЉͲЉЉЉ͵Љ υЊЉͲЉЉЉͲЉЉЉ͵Љ υБͲЉЉЉͲЉЉЉ͵Љ υЏͲЉЉЉͲЉЉЉ͵Љ υЍͲЉЉЉͲЉЉЉ͵Љ υЋͲЉЉЉͲЉЉЉ͵Љ υ {ĻƦЊЊWǒƓЊЋ{ĻƦЊЊWǒƓЊЋ{ĻƦЊЋWǒƓЊЌ{ĻƦЊЌWǒƓЊЍ CźƭĭğƌĻğƩЊЊЊЋCźƭĭğƌĻğƩЊЊЊЋCźƭĭğƌĻğƩЊЋЊЌCźƭĭğƌĻğƩЊЌЊЍ 9ǣƦĻƓķźƷǒƩĻυЋͲЉЋВͲБЉЉυАͲАЏБͲВВЏυЋͲЎАЌͲЍЎЏυБͲЌЏЌͲБЉЋυЋͲЋАЎͲЍЉЍυБͲЌЏЎͲЎЌЊυЋͲЌВВͲБЍЉυЊЉͲЍАЍͲЍЋЊ Significantvariationsthisyear,comparedtothesametimeperiodoneyearagoinclude: ParksandRecreationɋA$25,323decreaseduetosavingsassociatedwiththe costsharingoftheParksandRecreationDirectorwiththeAdministrative ServicesDepartment. ЋЋ 96 SeniorCenterCaseManagementɋAnincrease$43,960isduetothecostofa parttimeCaseManagerbackfillingforanemployeeonmaternityleave.This temporaryemployeeoverlappedwiththefulltimeCaseManagerfortraining purposes; STAFFING TherehavebeennotstaffingchangesinthisdepartmentasofSeptember30,2013.As partofMidYearthedepartmentwillrequestreplacingaparttimeCaseManagerwith afulltimeCaseManager. SUMMARY AtthefirstquarterpointofthefiscalyearmostprogrambudgetswithinParksand Recreationareprojectedtoendtheyearwithinbudgetedappropriations.Two programswithinthedepartmentmayrequireMidYearadjustments.TheYouthand Teensprogramistrackingtoexceeditsbudgetduetohigherthanbudgetedbank chargesasaresultofhigherthananticipatedprogramactivity.Thiscostisoffsetby higherthanprojectedrevenue.AMidYearadjustmentwillberequestedtoreflectthis higherlevelofactivity.Conversely,BlackBerryGolfactivityislowerthananticipated dueto2º«¼«´ȟ¹CreekCorridorphaseIIconstructionencroachingintothegolfcourse. BlackBerryGolfrevenueisnotprojectedtomeetitsrevenuetargetby¿«§¸ȟ¹end. ЋЌ 97 PlanningandCommunityDevelopment DEPARTMENTUPDATES AspartoftheFY201213YearEndClosedivisionsthatarepartofPlanningand CommunityDevelopmenthadencumbered$1.55millionforpurchaseorders outstandingand$83,183hasbeencarriedoverforthecompletionofascanningproject. DivisionFY1314FY1213FY1213BudgetFY1314 FinalEncumbrancesCarryoversAdjustmentsAmended AdoptedJulSeptBudget Administration$251,582$0$0$0$251,582 Planning 2,949,8811,485,169004,435,050 HousingServices 768,67355,65800824,331 Building 3,731,07610,00083,18203,824,258 TotalAllFunds$7,701,212$1,550,828$83,183$0$9,335,221 DEPARTMENTALREVENUEANDEXPENDITURES FortheprogrambudgetsthatarepartofPlanningandCommunityDevelopment,asof September30,2013,actualrevenuecollectedis$959,385millionor17.3%ofestimated revenue.FiscalYear201314isthefirstyearrevenuewasbudgetedattheprogram level.InthenexttwotothreeyearsastheCitygathersmorerevenuedata,additional analysiswillbeincludedforrevenuesimilartoexpenditures. AsofSeptember30,2013,expendituresare$1.8million,representing19.3%ofthe budgetedappropriations.Expendituresatthefirstquarterpointofthepriorthreeyears werebetween13.6%and22.9%ofthefinalactualexpenditures,placingthisyearwithin therange. Thefollowingchartprovidesacomparisonofexpenditures.Thiscomparisonshows firstquarterandyearendforathreeyearperiod,includingthecurrentyear,forthe budgetswithinPlanningandCommunityDevelopment: ЋЍ 98 PlanningandCommunityDevelopment ThreeYearExpenditureComparison υЊЉͲЉЉЉͲЉЉЉ͵Љ υВͲЉЉЉͲЉЉЉ͵Љ υБͲЉЉЉͲЉЉЉ͵Љ υАͲЉЉЉͲЉЉЉ͵Љ υЏͲЉЉЉͲЉЉЉ͵Љ υЎͲЉЉЉͲЉЉЉ͵Љ υЍͲЉЉЉͲЉЉЉ͵Љ υЌͲЉЉЉͲЉЉЉ͵Љ υЋͲЉЉЉͲЉЉЉ͵Љ υЊͲЉЉЉͲЉЉЉ͵Љ υ {ĻƦЊЊWǒƓЊЋ{ĻƦЊЊWǒƓЊЋ{ĻƦЊЋWǒƓЊЌ{ĻƦЊЌWǒƓЊЍ CźƭĭğƌĻğƩЊЊЊЋCźƭĭğƌĻğƩЊЊЊЋCźƭĭğƌĻğƩЊЋЊЌCźƭĭğƌĻğƩЊЌЊЍ 9ǣƦĻƓķźƷǒƩĻυААЍͲЊЏЍυЎͲЏВЌͲЎЍЋυЊͲЊАЊͲВБЏυЎͲЊЋЍͲЎЏВυБЎЏͲЌЋЎυЍͲЍАЊͲВЋБυЊͲБЉЉͲЍЊЏυВͲЌЌЎͲЋЋЊ Significantvariationsthisyear,comparedtothesametimeperiodoneyearagoinclude: BuildingandPlanningDivisionsɋAnincreaseof$353,952and$618,639 respectivelyforthesetwodivisionsdueprimarilytoincreasebuildingand planningactivityrelatedtotheAppleCampus2project. HousingServicesDivisionɋAdecreaseof$24,549dueprimarilytodecreased salaryandbenefitcostsduetoavacantpositionandthetimingofgrantawards payments,inFY201213twoHumanServicesgrantawardshadbeenmadeasof thefirstquarter,inFY201314nograntpaymentshavebeenmade.Lastlythese decreasesareslightlyoffsetbyanincreaseinexpenditureduetothenewly implementedcostallocationplan. STAFFING Nochangesinstaffing. ЋЎ 99 SUMMARY AtthefirstquarterpointofthefiscalyearprogrambudgetswithinPlanningand CommunityDevelopmentareprojectedtoendtheyearwithinbudgeted appropriations. ЋЏ 100 PublicWorks DEPARTMENTUPDATES AspartoftheFY201213YearEndClose,divisionsthatarepartofthePublicWorks Departmenthadencumbered$548,000forpurchaseordersoutstandingandan additional$274,000wascarriedoverinordertocontinuethetrafficsignalmodification andotherongoingprojects. DivisionFY1314FY1213FY1213BudgetFY1314 FinalEncumbrancesCarryoversAdjustmentsAmended AdoptedJulSeptBudget Administration$664,767000$664,767 Environmental 2,740,11212,785002,752,897 Programs Engineering 1,350,90263,20940,80001,454,911 Services ServiceCenter 781,263026,0000807,263 GroundsandFleet 3,327,32320,9995,0000$3,353,322 Streets 7,593,2171,10631,14407,625,467 TreesandRightof 2,501,2539,999002,511,252 Way Facilities 2,720,030127,09020,00002,867,120 Transportation 1,186,80189,354150,85501,427,010 FixedAsset 138,000223,87000361,870 Acquisition TotalAllFunds$23,003,668$548,412$273,799$0$23,825,879 DEPARTMENTALREVENUEANDEXPENDITURES FortheprogrambudgetsthatarepartofPublicWorks,asofSeptember30,2013,actual revenuecollectedis$490,000or11.8%ofestimatedrevenues.FiscalYear201314isthe firstyearrevenuewasbudgetedattheprogramlevel.Inthenexttwotothreeyearsas theCitygathersmorerevenuedata,additionalanalysiswillbeincludedforrevenue similartoexpenditures. AsofSeptember30,2013,expendituresare$4,769,000,representing20.2%ofthe budgetedappropriations.Expendituresatthefirstquarterpointofthepriorthreeyears ЋА 101 werebetween22.1%and22.7%ofthefinalactualexpenditures,placingthisyearbelow therange. Thefollowingchartprovidesacomparisonofexpenditures.Thiscomparisonshows firstquarterandyearendforathreeyearperiod,includingthecurrentyear,forthe budgetswithinPublicWorks: PublicWorks ThreeYearExpenditureComparison υЋЎͲЉЉЉͲЉЉЉ͵Љ υЋЉͲЉЉЉͲЉЉЉ͵Љ υЊЎͲЉЉЉͲЉЉЉ͵Љ υЊЉͲЉЉЉͲЉЉЉ͵Љ υЎͲЉЉЉͲЉЉЉ͵Љ υ {ĻƦЊЊWǒƓЊЋ{ĻƦЊЊWǒƓЊЋ{ĻƦЊЋWǒƓЊЌ{ĻƦЊЌWǒƓЊЍ CźƭĭğƌĻğƩЊЊЊЋCźƭĭğƌĻğƩЊЊЊЋCźƭĭğƌĻğƩЊЋЊЌCźƭĭğƌĻğƩЊЌЊЍ 9ǣƦĻƓķźƷǒƩĻ υЌͲЋЊЏͲЎЎЌυЊЎͲЊЏЉͲАЊЊυЌͲЍБЍͲЌЌЋυЊЎͲЌЌЍͲЏЍЋυЌͲАЏВͲБЌВυЊАͲЉЍЋͲБЋЉυЍͲАЏВͲЊЉЍυЋЌͲБЋЎͲБАВ Significantvariationsthisyear,comparedtothesametimeperiodayearagoand accomplishmentsinclude: PublicWorksAdministrationɋAnetincreaseof$27,000duetothefillingofthe CapitalImprovementProgramManagerpositionandnewcostallocations,offset bythetransferoftheEnvironmentalManagementbudgettotheTransportation andStreetsprograms; ЋБ 102 EngineeringServicesɋAnincreaseof$60,000duetothefillingofonevacantfull timeAssociateEngineer,thetemporarytwoyearadditionofanAssociate Engineer,thepromotionofanAssociateEngineertoaSeniorEngineer,newcost allocations,additionalworktosupportthedogparkproject,stafftraining,and newsubdivisionmapsigningandlandsurveyingservices. StreetsɋA$968,000increaseduetothepavementrepairandresurfacing programmovedfromtheNonDepartmentalcapitalbudgettothisPublicWorks operatingprograminFY201314.Newcostallocationsandtheannual contributiontothenewhealthreimbursementaccountthisquarteralsocaused theincreaseoverlastyear.Lowerstreetlightelectricitycoststhisyeartempered theincrease.Retroactiveelectricitycostsforstreetlightsaddedthrough annexationswerepaidlastyear. STAFFING Nostaffingchanges. SUMMARY AtthefirstquarterpointofthefiscalyearprogrambudgetswithinPublicWorksare projectedtoendtheyearwithinbudgetedappropriations.Itisanticipatedthattwo programswithinPublicWorksmayrequireamidyearadjustment.ForEngineering Design,staffwillexaminepotentialmidyearbudgetadjustmentsof$175,000forApple Campus2inspections,$80,000forcapitalprojectmanagementservices,$16,000for AppleCampus2trafficengineering,and$13,000fortheengineeringstaffpromotion. EnvironmentalProgramsmayneedtoincreasestreetsweepinginretailareastoa weeklybasisandwillconsideradjustingtheirbudgetatmidyearinordertosweep debrisaccumulatedonstreetssincecurbinletscreenswereinstalledtoprotectthe "¯º¿ȟ¹stormdrainagesystem. ЋВ 103 NonDepartmental UPDATES Attheendofeachfiscalyear,unspentcapitalprojectbudgetsarecarriedovertothe subsequentfiscalyearuntilprojectcompletion.Theunspentcapitalbudget,attheend ofFY201213thatwasaccordinglycarriedovertoFY201314,consistedof$3,900,352in encumberedbudgetsand$6,006,382inunencumberedbudgets.Budgetsare encumberedafterpurchaseorderissuance. DivisionFY1314FY1213FY1213BudgetFY1314 FinalEncumbrancesCarryoversAdjustmentsAmended AdoptedJulSeptBudget DebtService $3,171,838000$3,171,838 EmployeeHousing 1,256,0000001,256,000 Assistance TransfersOut 15,095,80400015,095,804 CapitalProjects 5,872,0003,900,3526,006,382015,778,734 TotalAllFunds$25,395,642$3,900,352$6,006,382$0$35,302,376 REVENUEANDEXPENDITURES AsofSeptember30,2013,interfundtransferstotal$3,774,000,whichisontrackat25% ofbudget.Transfersaredoneintwelveequalmonthlyinstallments. Capitalprojectexpendituresforparks,facilities,traffic,stormdrains,andstreetstotaled $976,000inthefirstquarter,representing6.2%ofthebudgetedappropriations. Expendituresatthefirstquarterpointofthepriortwoyearswere26.1%and6.3%ofthe finalactualexpenditures,placingthisyearbelowtherangeand,exceptforthe environmentaleducationclassroomproject,trendingtofinishwithinbudget. Expendituresasapercentageofbudgetcanvarysignificantlyeveryyeardependingon theprojectphase.Thebudgetadjustmentfortheenvironmentaleducationclassroom projectwillbepresentedtotheCouncilseparately. Becauseprincipalandinterestonthe"¯º¿ȟ¹debtispaidsemiannually,debtservice expendituresareincurredinthesecondandfourthquartersofeachfiscalyear. ЌЉ 104 TheemployeehousingassistanceprogramforCityexecutiveshasincurredno expenditurestodate.Thebudgetisasetasideforanewhousingloanifeveritis appliedforandapproved. Thefollowingchartprovidesacomparisonofexpenditures.Thiscomparisonshows firstquarterandyearendforathreeyearperiod,includingthecurrentyear,forthe budgetswithinNonDepartmental: NonDepartmental ThreeYearExpenditureComparison υЏЉͲЉЉЉͲЉЉЉ͵Љ υЎЉͲЉЉЉͲЉЉЉ͵Љ υЍЉͲЉЉЉͲЉЉЉ͵Љ υЌЉͲЉЉЉͲЉЉЉ͵Љ υЋЉͲЉЉЉͲЉЉЉ͵Љ υЊЉͲЉЉЉͲЉЉЉ͵Љ υ {ĻƦЊЊWǒƓЊЋ{ĻƦЊЊWǒƓЊЋ{ĻƦЊЋWǒƓЊЌ{ĻƦЊЌWǒƓЊЍ CźƭĭğƌĻğƩЊЊЊЋCźƭĭğƌĻğƩЊЊЊЋCźƭĭğƌĻğƩЊЋЊЌCźƭĭğƌĻğƩЊЌЊЍ 9ǣƦĻƓķźƷǒƩĻ υЋͲВЍАͲЊЋЊυЊВͲЎЏЉͲАЎЊυЋͲВЍЋͲАЋЋυЎБͲЏБЉͲБЋБυАͲЎЉБͲЉЎБυЋЉͲВЏАͲЌЉАυЍͲАЏЋͲЋЉЉυЌЎͲЌЉЋͲЌАЏ Significantvariationsthisyear,comparedtothesametimeperiodoneyearagoinclude: CapitalProjectsɋAnincreaseof$687,000,projectexpenditurescanvarywidely yeartoyeardependingonthephaseofactiveprojectsandwhetheraprojecthas endedorcommenced.TheStevensCreekCorridorParkPhase2projectand pavementrehabilitationprojects,allcarriedoverfromtheprioryear,comprise $439,000and$190,000,respectively,oftheFY201314variance. ЌЊ 105 InterfundtransfersɋA$3,366,000decreasewhichisinlinewiththedifferences intheoriginaladoptedbudgetsofbothyears.HowevertheFY201213transfer budgetwassignificantlyreducedatmidyearbecauseofadelayindevelopment relatedrevenues.Consequently,aftermidyearFY201314,thetransferbudget andactualamountswillexceedthefinalFY201213budgetandactuals.Mostof thevariancewillbeintransfersforcapitalprojectsandcapitalreserves. STAFFING Thereisnostaffingassociatedwiththisdepartment. SUMMARY AtthefirstquarterpointofthefiscalyearprogrambudgetswithinNonDepartmental areprojectedtoendtheyearwithinbudgetedappropriations,exceptforonecapital projectwhereaseparatebudgetactionwillbetaken.Varianceswiththeprioryearare pertheadoptedbudget. ЌЋ 106 CONCLUSION TheFirstQuarterFinancialReportshowstheCityiswellpositionedtomoveforward. Citystaffwillcontinuetomonitorthe201314FiscalYearAmendedBudgetandbe preparedtomakeappropriaterecommendationsandchangesattheMidYearBudget Report.Asoffirstquarter,totalestimatedmidyearadjustmentsare$560,000;these alongwithanyadditionalrequestswillbereviewedatmidyear.Atthattime,staffwill identifyiftheserequestscanbeoffsetwithsavingsorproceedwiththerequestforan adjustment.IfmoreurgentbudgetadjustmentsneedtobemadebeforetheMidYear BudgetReport,staffwillbringappropriateandtimelyrecommendationstotheCity Councilforconsideration. ЌЌ 107 ADMINISTRATIVE SERVICES DEPARTMENT CITY HALL 10 10300 TORRE AVENUE CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3220 www.cupertino.org CITYCOUNCILSTAFFREPORT Meeting:November19,2013 Subject CityFinancialReportsforFiscalYearEndingJune30,2013 RecommendedAction Acceptthereports Description StaffispleasedtopresenttotheCityCouncilthefollowingfinancialreportsforthe fiscalyearendedJune30,2013: 1.ComprehensiveAnnualFinancialReport 2.MemorandumonInternalControlandRequiredCommunications 3.FinalAccountingIssuesMemo 4.Independent ©©µ»´º§´ºȟ¹ReportontheCityofCupertinoInvestmentPolicy 5.DevelopmentImpactFeeReport The"¯º¿ȟ¹certifiedpublicaccountantsauditedorissuedthefirstfourreports.Staff preparedtheunauditedfifthreportasrequiredbytheState.TheAuditCommittee acceptedallreportsonNovember6,2013withminorrevisionsthathavebeenincluded intheattachments.Theauditorshavegivenacleanopiniononthefinancialstatements andthecontrolsassociatedwithproducingtheinformation.TheComprehensive AnnualFinancialReportwillbesubmittedfortheGovernmentFinanceOfficers ¹¹µ©¯§º¯µ´ȟ¹CertificateofAchievementAward. FiscalImpact Acceptanceofthereportshasnofiscalimpact.Thereportsdescribethe"¯º¿ȟ¹financial statusasofJune30,2013. _____________________________________ Preparedby:DavidWoo,FinanceDirector Reviewedby:CarolAtwood,DirectorofAdministrativeServices ApprovedforSubmissionby:DavidBrandt,CityManager 108 Attachments: AComprehensiveAnnualFinancialReport BMemorandumonInternalControlandRequiredCommunications CIndependent ©©µ»´º§´ºȟ¹ReportontheCityofCupertinoInvestmentPolicy DFinalAccountingIssuesMemo EDevelopmentImpactFeeReport 109 110 INTRODUCTORY SECTION 111 CITY OF CUPERTINO Comprehensive Annual Financial Report For the Year Ended June 30, 2013 Table of Contents INTRODUCTORY SECTION Page Table of Contents .......................................................................................................................................... 1 Letter of Transmittal ..................................................................................................................................... 3 Organization Chart ........................................................................................................................................ 8 City Council and Directory of City Officials ................................................................................................ 9 Commissions and Committees .................................................................................................................... 10 Certificate of Award for Excellence in Financial Reporting ...................................................................... 11 FINANCIAL SECTION Independent Auditor’s Report ................................................................................................................. 13 Management’s Discussion and Analysis (Unaudited) ............................................................................ 17 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position ................................................................................................................. 36 Statement of Activities ..................................................................................................................... 37 Fund Financial Statements: Balance Sheet .................................................................................................................................... 40 Reconciliation of the Governmental Funds Balance Sheet with the Statement of Net Position................................................................................................................ 41 Statement of Revenues, Expenditures and Changes in Fund Balances ............................................. 42 Reconciliation of the Net Change in Fund Balances – Total Governmental Funds with the Statement of Activities ...................................................................................................... 43 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual - General Fund .................................................................................................... 44 Proprietary Funds: Statement of Net Position.................................................................................................................. 46 Statement of Revenue, Expenses and Changes in Fund Net Position ............................................... 47 Statement of Cash Flows ................................................................................................................... 48 Fiduciary Funds: Statement of Net Position.................................................................................................................. 50 Statement of Changes in Fiduciary Net Position .............................................................................. 51 Notes to the Basic Financial Statements ................................................................................................ 53 Required Supplementary Information (Unaudited): Schedules of Funding Progress ........................................................................................................... 84 1 112 CITY OF CUPERTINO Comprehensive Annual Financial Report For the Year Ended June 30, 2013 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 ............................................ 86 Nonmajor Governmental Funds: Combining Balance Sheets ............................................................................................................... 88 Combining Statements of Revenues, Expenditures and Changes in Fund Balances .............................................................................................................. 90 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances –Budget and Actual ............................................................................ 92 Internal Service Funds: Combining Statement of Net Position ............................................................................................... 96 Combining Statements of Revenues, Expenses and Changes in Fund Net Position ......................................................................................................... 97 Combining Statements of Cash Flows .............................................................................................. 98 Agency Fund: Statement of Changes in Assets and Liabilities ............................................................................. 100 STATISTICAL SECTION Financial Trends: Net Position by Component – Last Ten Fiscal Years ....................................................................... 105 Changes in Net Position – Last Ten Fiscal Years ............................................................................. 106 Fund Balances of Governmental Funds – Last Ten Fiscal Years ..................................................... 108 Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years .................................... 109 Revenue Capacity: Assessed and Estimated Actual Value of Taxable Property –Last Ten Fiscal Years ...................... 110 Direct and Overlapping Property TaxRates –Last Ten Fiscal Years .............................................. 111 Principal Property Taxpayers – Current Year and Nine Years Ago ................................................. 112 Property Tax Levies and Collections –Last Ten Fiscal Years ......................................................... 113 Debt Capacity: Ratios of Outstanding Debt by Type –Last Ten Fiscal Years .......................................................... 114 Direct and Overlapping Bonded Debt ............................................................................................... 115 Legal Debt Margin Information – Last Ten Fiscal Years ................................................................. 116 Ratio of General Bonded Debt–Last Ten Fiscal Years ................................................................... 117 Demographic and Economic Information: Demographic and Economic Statistics –Last Ten Calendar Years .................................................. 118 Principal Employers – Current Year and Ten Years Ago ................................................................. 119 Operating Information: Full-Time Equivalent City Employees by Function/Program –Last Ten Fiscal Years .................... 120 Operating Indicators by Function/Program –Last Nine Fiscal Years .............................................. 121 Capital Asset Statistics by Function/Program –Last Ten Fiscal Years ............................................ 122 Other Property Tax and Sale Statistics ................................................................................................. 123 COMMUNITY PROFILE 128 2 113 3 114 4 115 5 116 6 117 7 118 CITY OF CUPERTINO, CALIFORNIA Fiscal Year 2012-13 CITY COUNCIL Orrin Mahoney Gilbert Wong Mayor Vice Mayor Barry Chang Rod Sinks Mark Santoro Councilmember Councilmember Councilmember DIRECTORY OF CITY OFFICIALS David Brandt - City Manager Carol Korade - City Attorney Carol Atwood Director of Administrative Services Timm Borden Director of Public Works Carol Atwood Interim Director of Parks and Recreation Aarti Shrivastava - Director of Community Development 9 120 CITY OF CUPERTINO, CALIFORNIA Fiscal Year 2012/13 COMMISSIONS AND COMMITTEES AUDIT COMMITTEEPARKS & RECREATION COMMISSION Angela Chen Sivakumar Budaraju Mark Santoro David Fung Rod Sinks David Greenstein Eno Schmidt Darcy Paul Raymond Yin Geoffrey Paulsen HOUSING COMMISSIONLIBRARY COMMISSION Harvey Barnett Annie Ho Jimmy Chien Rose Grymes Krista Wilson Adrian Kolb Nicole Maroko Jerry Liu Rajeev Raman Ann Stevenson FINE ARTS COMMISSIONPLANNING COMMISSION KC Chandratreya Paul Brophy Jessi Kaur Margaret Gong Russell Leong Winnie Lee Rajeswari Mahaliagan Alan Takahashi Michael Sanchez Don Sun PUBLIC SAFETY COMMISSIONBICYCLE PEDESTRIAN COMMISSION Nina Daruwalla Vidula Aiyer Andy Huang William Chan Lily Lim Pete Heller Robert McCoy Ashish Kolli Daniel Nguyen Jill Mitsch TEEN COMMISSIONECONOMIC DEVELOPMENT Carissa Chan Sanika Puranik Carol Atwood Erin Cooke Ashley Ding Chris Doyle Orrin Mahoney Aarti Shrivastava Meyhaa Buvanesh Celine Mol Timm Borden Rod Sinks Dana Lujack Madeline Yip Mike Foulkes John Zirelli Greg Pommier Mike Rohde Kevin McClelland Darcy Paul Maria Streeby Winnie Lee TECHNOLOGY, INFORMATION & FISCAL STRATEGIC COMMITTEE COMMUNICATIONS COMMISSION Peter Friedland Gilbert Wong Aarti Shrivastava Wallace Iimura Mark Santoro Roger Lee Shishir Chavan Carol Atwood David Woo Rod Livingood Timm Borden Beverly Siegel 10 121 11 122 NOTES 12 123 FINANCIAL SECTION 13 124 NOTES 14 125 INDEPENDENT AUDITORÓS REPORT To the Honorable Mayor and City Council City of Cupertino, California Report on Financial Statements 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 as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the CityÓs basic financial statements as listed in the Table of Contents. ManagementÓs Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error. AuditorÓs Responsibility 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 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 from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditorÓs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the CityÓs preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the CityÓs internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 15 126 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 as of June 30, 2013, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparisons listed as part of the basic financial statements for the year then ended in conformity with accounting principles generally accepted in the United States of America. Emphasis of Matters Management adopted the provisions of the following Governmental Accounting Standards Board Statements, which became effective during the year ended June 30, 2013, and had material effects on the financial statements: Statement No. 63 - Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. Statement No. 65 Î Financial Reporting of Items Previously Reported as Assets and Liabilities. This Statement establishes accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows of resources or inflows of resources, certain items that were previously reported as assets and liabilities. The City elected to early implement this Statement. The emphasis of these matters does not constitute a modification to our opinions. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that ManagementÓs Discussion and Analysis and Schedule of Funding Progress be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with managementÓs responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 16 127 Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the CityÓs basic financial statements as a whole. The Introductory Section, Other Supplementary Information, and Statistical Section as listed in the Table of Contents are presented for purposes of additional analysis and are not required parts of the basic financial statements. The Other Supplementary Information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplemental Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The Introductory and Statistical Sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 14, 2013, on our consideration of the CityÓs internal control over 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 financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the CityÓs internal control over financial reporting and compliance. Pleasant Hill, California October 14, 2013 17 128 This Page Left Intentionally Blank 18 129 CITY OF CUPERTINO ManagementÓs Discussion and Analysis (Unaudited) For the Year Ended June 30, 2013 This describes the City of CupertinoÓs financial performance for the year. Please read it in conjunction with the accompanying Transmittal Letter and Basic Financial Statements. 2012-13 FINANCIAL HIGHLIGHTS Governmental activity revenues climbed 17% over last year while expenses increased 3%. Revenues and expenses from business-type activities both rose 6% from the prior year. Governmental net position increased 6% to $172,254,000 while business-type net position rose 7% to $11,627,000. General Fund revenues increased 15% from the prior year while General Fund expenditures rose 5%. General Fund expenditures came in 11% under budget, with revenues 6% over budget. The General Fund balance grew 38% to end the year at $36,044,000. 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 CityÓs financial activities and position. The City-Wide Financial Statements provide a long-term view of the CityÓs activities as a whole, and comprise the Statement of Net Position 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 Position 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 CityÓs revenues and all its expenses, with the emphasis on measuring net revenues or expenses for each of the CityÓs programs. The Statement of Activities explains in detail the change in net position for the year. Over time, increases or decreases in net position can be indicators of whether the financial condition of the City is improving or deteriorating. All of the CityÓs activities are grouped into Governmental activities and Business-type activities, as explained below. The Statement of Net Position and the Statement of Activities provide a summary of these two types of activities for the City as a whole. Governmental activities ÏMost of the CityÓs 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 CityÓs governmental activities include the activities of a separate legal entity, the Cupertino Public Facilities Corporation, because the City is considered to be financially accountable for the Corporation. The City leases its major facilities from the Corporation, which then uses the lease payments to pay principal and interest on the CorporationÓs long-term debt. Business-type activities ÏAll the CityÓs enterprises are reported here, including solid waste management and most of the CityÓs recreational operations. Unlike governmental services, these services are supported by charges paid by users based on the amount of the service they use. 19 130 CITY OF CUPERTINO ManagementÓs Discussion and Analysis (Unaudited) For the Year Ended June 30, 2013 The Fund Financial Statements report the CityÓs operations in more detail than the government-wide statements and focus primarily on the short-term activities of the CityÓs General Fund and other major funds. The Fund Financial Statements measure only current revenues, expenditures, assets, liabilities, and deferred inflows and outflows of resources; 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 CityÓs most significant funds, called major funds. CupertinoÓs 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 CityÓs 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 governmentÓs near-term financial decisions. Enterprise and Internal Service Fund financial statements are prepared on the full accrual basis and include current and long-term assets and liabilities and deferred inflows and outflows of resources. 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 CityÓs Internal Service Funds provide goods and services only to the CityÓs 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 position 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 CityÓs Special Revenue Funds are considered major funds, budgetary comparison schedules for these funds are included in this document as supplemental information only. Fiduciary Fund statements provide financial information about the activities of the Successor Agency to the Redevelopment Agency and of a special assessment district. The CityÓs fiduciary activities are reported in the Statement of Net Position and Statement of Changes in Fiduciary Net Position. These activities are excluded from the CityÓs other financial statements because the City cannot use these assets to finance its own operations. The Successor Agency to Redevelopment Agency Private-Purpose Trust Fund holds the remaining assets, liabilities, and deferred inflows and outflows of the CityÓs former Redevelopment Agency. See Note 14 to the Basic Financial Statements. The CityÓs Agency Fund holds special assessment district taxes remaining after the maturity of the special assessment districtÓs debt. The City acts strictly as an agent for the special assessment district. 20 131 CITY OF CUPERTINO ManagementÓs Discussion and Analysis (Unaudited) For the Year Ended June 30, 2013 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. CITY-WIDE FINANCIAL ACTIVITIES This analysis focuses on the net position and changes in net position of the CityÓs Governmental Activities (Tables 1 and 2) and Business-Type Activities (Tables 3 and 4) presented in the City-wide Statement of Net Position and Statement of Activities that follow. The Statement of Activities Tables 2 and 4 show activity from a revenue and expense perspective. Governmental Activities Table 1 Condensed Statement of Net Position at June 30 (in thousands) Governmental Activities 20132012 Assets: Cash and investments61,008$ 45,832$ Other assets 9,391 1 0,474 Capital assets 158,364 161,380 Total assets 228,763 217,686 Liabilities: Long term debt 42,020 4 3,940 Other liabilities 14,489 1 0,615 Total liabilities 56,509 54,555 Net Position: Invested in capital assets, net of debt 116,344 117,440 Restricted 8,351 7,573 Unrestricted 47,559 3 8,117 Total net position$ 172,254$ 163,130 The CityÓs net position from governmental activities rose 6% from the prior year. The following significant changes within asset, liability, and net position categories occurred: Increased sales, property, construction, and park dedication tax receipts, new debt service payments held in trust, receipt of the State Proposition 1A receivable, and more accounts payable and accrued liabilities were the primary cause of the cash and investments increase. Depreciation on existing capital assets exceeded capital asset additions in infrastructure and equipment. Other liabilities rose over the prior year because a May 2012 debt refunding eliminated the current liability of the debt service payment due a year ago. Sales tax consulting agreement and inter-fund advance liabilities also grew this year. 21 132 CITY OF CUPERTINO ManagementÓs Discussion and Analysis (Unaudited) For the Year Ended June 30, 2013 Ninety-eight percent of the unrestricted net position increase came from the excess of revenues over expenses and transfers, while two percent came from capital asset decreases, long-term debt decreases, and restricted net position increases. Sources of Revenues, Governmental Activities 2012-13 Charges for Other Taxes Misc. 1% Services 10% 15% Franchise Tax 5% Operating Grants & Contributions 2% Utility User Tax Capital Grants & 5% Contributions 1% Transient Occupancy Tax 6% Property Tax 23% Sales Tax 32% As the Sources of Revenue chart above shows, property and sales taxes make up 55% of governmental revenue. The Functional Expenses chart below includes only current year expenses with Public Works maintenance and repairs of 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 2012-13 Interest Administration 3% 5% Law Enforcement 19% Public Public & Environmental Works Affairs 44% 3% Administrative Services 8% Recreation Services 9% Community Development 9% 22 133 CITY OF CUPERTINO ManagementÓs Discussion and Analysis (Unaudited) For the Year Ended June 30, 2013 The Statement of Activities presents program revenues, expenses, general revenues, and the resulting change in net position as summarized in the next table. Table 2 Condensed Statement of Activities for the Year Ended June 30 (in thousands) Governmental Activities 2013 2012 Expenses Administration $2,367 $1,837 Law enforcement 9,275 8,777 Public and environmental affairs 1,596 1,743 Administrative services 4,171 4,390 Recreation services 4,474 4,577 Community development 4,676 4,922 Public works 22,149 20,388 Interest on long-term debt 1,257 1,838 Total expenses 49,965 48,391 Revenues Program revenues: Charges for services 8,973 7,292 Operating grants and contributions 2,752 2,509 Capital grants and contributions 720 781 Total program revenues 12,445 10,582 General revenues: Taxes: Property tax 8,793 7,479 Property tax in-lieu of motor vehicle fee 4,772 4,487 Incremental property tax ---- 203 Sales tax 18,721 17,326 Transient occupancy tax 3,769 3,113 Utility user tax 2,995 3,265 Franchise tax 2,849 2,808 Other taxes 4,561 1,377 Intergovernmental, unrestricted: Motor vehicle license fee 30 29 Investment earnings 177 61 Miscellaneous 127 83 Total general revenues 46,794 40,231 Total revenues 59,239 50,813 Excess of revenues over expenses, before extraordinary item and transfers 9,274 2,422 Extraordinary item Î Assets transferred to Successor Agency ---- (1,131) Transfers (150) 207 Change in net position 9,124 1,498 Beginning net position 163,130 161,632 Ending net position 172,254 163,130 23 134 CITY OF CUPERTINO ManagementÓs Discussion and Analysis (Unaudited) For the Year Ended June 30, 2013 City-wide Governmental Revenues Table 2 shows that total governmental revenues jumped $8,426,000 or 17% over last year, finishing at $59,239,000. Property tax categories rose $1,396,000 or 11% over last year due to assessed value increases reflective of the strong housing recovery in the South Bay area and due to a one-time refund of county tax administration charges. See the General Fund portion of this Analysis for discussion of the sales tax increase. One-time construction and park improvement taxes from major mixed-use development projects such as the Rose Bowl and Biltmore caused the other tax category to rise by 231% or $3,184,000 over last year. Program revenues grew $1,863,000 or 18% over last year, primarily due to $1,681,000 more in charges for services, driven by building and entitlement permit growth from Apple Campus 2, the Rose Bowl, the Aloft Hotel, the Apple cafeteria, the Biltmore expansion, Homestead Square, and Saich Way Station. To increase the fenced dog park capital budget, the CityÓs recreational enterprise fund received a $150,000 transfer from governmental general revenues in 2012-13. To finance the Stevens Creek Corridor Park capital project, the CityÓs recreational enterprise transferred $207,000 to the CityÓs public works governmental unit in 2011-12. City-wide Governmental Expenses City-wide governmental expenses in Table 2 rose $1,574,000 or 3% above 2011-12. Law Enforcement, Administration, and Public Works rose while Community Development, Public & Environmental Affairs, Administrative Services, Recreation Services, and debt interest declined. Administration rose because there was a City Manager vacancy for two months in the prior year. Legal costs of other programs were consolidated under this function, new sales tax legal costs were incurred, and an assistant city attorney position was filled in 2012-13. A larger operating loss allocation from internal service funds also impacted expenses. Law Enforcement was higher because of contract cost-of-living adjustments, increased sheriff deployment and the higher internal service operating loss allocation. Public & Environmental Affairs declined due to a different cost allocation method for City Channel equipment. Administrative Services fell because of the biannual election last year, different cost allocations for human resource and accounting systems, and the legal expense shift to Administration. Recreation Services decreased due to lower recreational trip expenses, one-time smoking cessation grant expenses last year, and class registration system costs newly allocated to business-type activities this year. The savings offset higher depreciation and internal service fund operating loss allocations. Community Development General Fund costs grew over last year because of more planning and building applications and the filling of the economic development manager position. However, declines in Community Development Other Governmental Fund outlays, stemming from the Redevelopment Agency dissolution in 2012 and the disposition of the Cleo Avenue affordable housing parcels in 2011 to Habitat for Humanity overshadowed the General Fund increases. 24 135 CITY OF CUPERTINO ManagementÓs Discussion and Analysis (Unaudited) For the Year Ended June 30, 2013 As for the Public Works increase, new cost allocations for accounting, human resource, and permit systems began in 2012-13. Starting in the middle of 2011-12 and continuing for all of 2012-13, Blackberry Farm utility costs were charged to Public Works instead of Recreation Services, to be consistent with the charges at other park facilities. Additionally, some street light utility costs should have been recorded in the prior year rather than the current year. Increased street pavement, sign, and marking expenses in Other Governmental Funds and a higher internal service fund operating loss allocation also affected Public Works. Annual debt service interest dropped because of the Public Facilities CorporationÓs May 2012 refinancing of its certificates of participation. Upon the Cupertino Redevelopment AgencyÓs dissolution on January 31, 2012, $1,131,000 in remaining governmental activity assets was transferred to the CityÓs Successor Agency, a fiduciary trust fund that is reported separately in this CAFR. Change in Net Position The City-wide $9,124,000 governmental net position increase significantly exceeded the $1,498,000 increase of a year ago, reflecting the strong 17% jump in revenues against the modest 3% rise in expenses. Business Type Activities Business-type activities in the City-wide Financial Statements include the CityÓs 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 services and facilities to the general public on a continuing basis can be financed or recovered primarily through user fees. The major proprietary funds section of this report provides more information on business-type results. As shown in Table 3, the business-type net position totaled $11,627,000 at June 30, 2013, an increase of $745,000 from the prior year with unrestricted net position rising $808,000 and the net position of capital assets falling $63,000. As described in Table 4, revenues for all business-type activities climbed 6% to finish at $6,860,000 this year. Expenses rose 6% over last year to $6,265,000. The $745,000 net position increase surpassed the $325,000 increase of 2011-12, mostly because of different transfers. A $150,000 transfer from governmental activities to business-type activities in 2012-13 funded the fenced dog park project, while a $207,000 transfer from business- type activities to governmental activities in 2011-12 provided financing for the Stevens Creek Corridor Park project. 25 136 CITY OF CUPERTINO ManagementÓs Discussion and Analysis (Unaudited) For the Year Ended June 30, 2013 Table 3 Condensed Statement of Net Position at June 30 (in thousands) Business Type Activities 20132012 Assets: Cash and investments11,768$ 10,905$ Other assets271 258 Capital assets762 825 Total assets12,801 11,988 Other liabilities 1,174 1,106 Total liabilities1,174 1,106 Net Position: Invested in capital assets762 825 Unrestricted10,865 1 0,057 Total net position11,627$ 10,882$ Table 4 Condensed Statement of Activities For The Year Ended June 30 (in thousands) Business Type Activities 20132012 Expenses Resources recovery $ 1,765$ 1,566 Blackberry farm 463 461 Sports center 2,012 1,897 Recreation programs 2,025 1,986 Total expenses 6,265 5,910 Revenues Program revenues: Charges for services 6,829 6,430 Operating contributions and grants - - Total program revenues 6,829 6,430 General revenues: Investment income 31 1 2 Total revenues 6,860 6,442 Transfers 150 (207) Change in net position 745 325 Beginning net position 10,882 10,557 Ending net position$ 11,627$ 10,882 26 137 CITY OF CUPERTINO ManagementÓs Discussion and Analysis (Unaudited) For the Year Ended June 30, 2013 MAJOR GOVERNMENTAL FUNDS General Fund General Fund Revenues General Fund revenues of $54,662,000 ended $3,527,000 or 7% above the final budget and $12,005,000 below the original 2012-13 budget. Actual revenues were up $7,129,000 or 15% compared to the prior year. Development-related taxes and fees, property taxes, and transient occupancy taxes showed the strongest year- over-year percentage gains while the fines and forfeitures and miscellaneous revenue sources suffered the largest percentage declines. Higher than anticipated sales tax as well as development-related taxes and fees accounted for most of the fluctuation in budgeted revenues. Table 5 displays year-to-year variations in actual revenues, while Table 6 shows budgeted revenues compared to actuals. Property taxes ended the year at $14,933,000, up 25% or $3,017,000 above last year and consistent with the final budget. This increase is mostly due to a one-time state payback of taxes borrowed in 2010 under Proposition 1A ($1,419,000) and a refund of county tax administration charges ($593,000). Excluding these one-time tax payments, actual property growth was 9.7% due to assessed value increases reflective of the strong housing recovery in the South Bay Area. Sales taxes grew by $1,395,000 or 8% above last year to finish at $18,721,000. It exceeded the final budget by $2,229,000 or 14%. Strong business-to-business sales tax growth in the second and third quarters of the fiscal year, led by Apple Inc., offset declining taxes in first quarter, and mitigated the fourth quarter sales tax loss from Hewlett-PackardÓs move from the City. Anticipated fourth quarter remittances from a major taxpayer were not received until the first quarter of the following fiscal year. The final budget was significantly lower than the original because the City had originally anticipated it would receive new sales taxes with the approval of the Apple Campus 2 development. A mid-year adjustment was made in December 2012 to reflect the longer than anticipated approval process. In October 2012, the California State Board of Equalization notified the City that the Board proposes a $10,550,721 reallocation of previously received sales taxes. Under the BoardÓs procedures, the City has appealed the proposed reallocation. The CityÓs five hotels paid $3,769,000 in transient occupancy taxes this year; $656,000 or 21% over last yearÓs performance due to the opening of the new Aloft Hotel in December 2012. Revenue was 16% or $517,000 above the final and original budget. Average revenue per available room for all five hotels rose from $111 to $119 reflecting the pickup in business travel to companies located in the City. Additionally, the voter-approved increase in the CityÓs transient occupancy tax rate from 10% to 12% of the room charge became effective January 1, 2012. The CityÓs 2.4% utility user tax on telecommunication, gas, and electric services provided $2,995,000 in revenues, which were down 8% compared to last year and $364,000 or 11% under the original and final budget. This decrease is reflective of lower electricity usage resulting from the large investments in solar infrastructure by educational institutions in Cupertino. Franchise taxes were relatively unchanged from last year while other taxes greatly exceeded expectations. Other taxes experienced a year-over-year growth of $740,000 or 55% and surpassed the final budget by 33%. The increase in other taxes was led by unexpected construction tax growth mostly attributable to the Rose Bowl project. Franchise taxes originate from electric, gas, water, solid waste, and cable utilities. 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 other tax original budget was decreased significantly because of the longer than expected Apple Campus 2 entitlement process. 27 138 CITY OF CUPERTINO ManagementÓs Discussion and Analysis (Unaudited) For the Year Ended June 30, 2013 Licenses and permits include fees for reviewing building plans, building inspections, construction, tenant improvements, and commercial/residential installations for compliance with state and municipal building codes. License and permit fees grew by 21% compared to last year due to the Rose Bowl and Biltmore construction projects. However, it did miss original and final budget targets by 33% and 19%, respectively as the Apple Campus 2 and Main Street construction project timetables roll out later than expected. The original budget was reduced to the final budget number to reflect this revised timetable. Moreover, general plan amendment fees from the Main Street development project were budgeted under licenses and permits rather than the charges for services category that they were received in, causing some of the budget versus actual fluctuation in both categories. Zoning, planning, and engineering review fees comprised 80% of the charges for services category, with non- enterprise recreational programs making up 18% and false alarm and damage recoveries accounting for 2%. Charges for services increased by $1,215,000, a 42% improvement compared to last year. Zoning, planning, and engineering review fees increased by $1,256,000 or 62% over the prior year mostly due to the Apple Campus 2, Main Street, and Biltmore development projects. Developer funding for the upcoming general plan amendment also arrived this year. False alarm and damage recoveries tripled over last year, rising by $42,000. The increases were offset by an $83,000 or 10% decline in non-enterprise recreation revenues consisting of Senior Center membership, travel, and activity fees, Blackberry Farm pool, concession, and picnic fees, and youth and teen activity fees. Charges for services finished $1,614,000 or 65% over the final budget caused by stronger than expected growth in development activity and the different budget classification of general plan amendment fees described in the preceding licenses and permit analysis. However, it was $141,000 or 4% above the original budget. The original budget was decreased to the final budget at mid-year because of later than expected fees from development projects; however, those fees were ultimately realized this year. Intergovernmental revenues of $383,000 fell 7% or $30,000 from last year, and fell short of the final budget by 8% or $32,000. The decrease was driven by a decline in one-time grant receipts. General Fund cash is part of the CityÓs pooled investment portfolio. Investment returns of the pool are allocated to the Fund based on the FundÓs monthly cash balance. These returns plus income from City facility rentals comprise use of money and property revenues, which saw an 11% year-over-year increase, to finish at $721,000. However, this increase was $154,000 or 18% under budget expectations. The continued low interest rate environment and the portfolioÓs concentration in safe, short-term Treasuries due to credit risk, has kept investment returns steady, but relatively low for the last few years. Since interest rates did not increase as anticipated and the City has not diversified into higher-yielding, less secure investments, the interest income fell below budget. Additionally the City kept the portfolio fairly liquid and of a short duration in anticipation of a large deposit to the retiree health trust and rising interest rates. Rent income remained relatively flat over last year. A further explanation of the investment picture for the year is in Note 2 of the Basic Financial Statements. Fines and forfeitures fell by 15% or $102,000 compared to the prior year and $90,000 or 14% below budget, to complete the year at $560,000. Revenues have been decreasing for several years as courts assess lower fines and fewer officers issue parking fines. Other revenues of $56,000 declined significantly over last year because of large one-time energy saving reimbursements and rebates received in 2011-12. Additionally, certain development-related revenues that previously appeared in this miscellaneous category are now being categorized in charges for service. No transfers into the General Fund occurred in 2012-13. Capital project savings from Other Governmental Funds were transferred into the General Fund in 2011-12. 28 139 CITY OF CUPERTINO ManagementÓs Discussion and Analysis (Unaudited) For the Year Ended June 30, 2013 Table 5 Revenue Changes General Fund, Fiscal 2013 vs. 2012 (in thousands) Increase/(Decrease) Fiscal 2013From Fiscal 2012 Revenue by SourceAmount% of TotalAmountPercent Taxes: Property $ 14,933 27% $ 3,017 25% Sales 18,721 34% 1,395 8% Transient occupancy 3,769 7% 656 21% Utility user 2,995 5% (270)-8% Franchise 2,849 5% 41 1% Other 2,077 4% 740 55% Use of money & property 721 1% 73 11% Intergovernmental 383 1% (30)-7% Licenses and permits 3,503 6% 602 21% Charges for services 4,095 7% 1,215 42% Fines and forfeitures 560 1% (102)-15% Other 56 0% (208)-79% Total revenues $ 54,662 100% $ 7,129 15% Other financing sources: Transfers in - 0% $ (35)-100% Total other financing sources-100% $ - $ (35) 0% 29 140 CITY OF CUPERTINO ManagementÓs Discussion and Analysis (Unaudited) For the Year Ended June 30, 2013 Table 6 Revenue Budget and Actual Comparisons General Fund, 2012-13 (in thousands) Budgeted AmountsOver/(Under) OriginalFinalActualFinal Taxes: Property$ 14,062$ 171 $ 14,762 $ 14,933 Sales 23,492 18,721 2,22916,492 Transient occupancy 3,252 3,769 3,252 517 Utility user 3,359 2,995 (364)3,359 Franchise 2,845 2,849 2,845 4 Other 8,558 2,077 1,558 519 Use of money & property 875 721 (154)875 Intergovernmental 315 383 415 (32) Licenses and permits 5,205 3,503 (843)4,346 Charges for services 3,954 4,095 1,6142,481 Fines and forfeitures 650 560 650 (90) Other 100 56 100 (44) Total revenues$ 66,667$ 51,135$ 54,662$ 3,527 General Fund Expenditures Fiscal 2012-13 overall expenditures, at $36,495,000, were $1,649,000 or 5% higher than last year. However, this result came in 11% or $4,679,000 under the final budget and 6% or $2,413,000 below the original budget. Year-to-year and budget versus actual results by General Fund program are described below and in Tables 7 and 8. Administration expenditures of $2,005,000 rose 31% or $472,000 over last year, but remained $247,000 or 11% under final budget. There was a City Manager vacancy for two months in the prior year. Legal costs of other departments were consolidated under this function, new sales tax legal costs were incurred, and an assistant city attorney position was filled in 2012-13. These factors also affected budget increases during the year. Law Enforcement sheriff contract costs of $8,784,000 were 4% or $338,000 over the prior year, but under the final budget by $350,000 or 4%. The budget contains dollars for anticipated service levels and unexpected events or incidences. By the end of the year, the actual rate of general law enforcement, service requests, emergency calls, patrol, and investigations resulted in budget savings for the City. Annual contract billing rate increases are tied to a deputyÓs total compensation growth, capped at the regional consumer price index plus two percent. Actual costs rose this year because of a 1.4% billing rate increase and more hours of sheriff deployment. Funds for school traffic safety were carried over from the previous year and added to the original budget. Public and Environmental Affairs expenditures of $1,487,000 fell $173,000 or 10% under the prior year and came within $34,000 or 2% of final budget. The cost allocation of City Channel audio/video equipment was changed, with much of the cost moved to other City departments. Purchase order carryovers caused the variance from original to final budget. 30 141 CITY OF CUPERTINO ManagementÓs Discussion and Analysis (Unaudited) For the Year Ended June 30, 2013 Administrative Services outlays were $331,000 or 8% below a year ago and finished 18% or $852,000 under final budget. Biannual City Council and one-time transient occupancy tax election expenditures occurred last year. Accounting and human resource system costs were newly allocated to other City departments this year. Human resource legal costs moved to Administration. Budget savings were realized in disaster preparedness grant expenditures, accounting consultants, city clerk and human resource staff vacancies, and insurance premiums and claims. The budget increased $299,000 during the year for the disaster preparedness grant award, budget carryovers from last year, labor negotiations, and workstation ergonomic improvements. Non-enterprise Recreation expenditures ended up $236,000 or 5% under last yearÓs spending and $363,000 or 8% under final budget. Senior Center recreational trip expenses fell, in accordance with lower revenues. One- time smoking cessation grant expenditures occurred last year. A portion of registration system costs was re- allocated to recreation enterprise funds this year. Budget savings primarily came from lower trip expenses and administrative staff vacancies. The Blackberry Farm utility budget under the Recreation program decreased during the year to correct a duplicate budget that was under the Public Works program. Community Development costs of $3,762,000 were $1,248,000 or 33% below the final budget due to the multi- year general plan amendment project budget that was added in 2012-13 and carried over into 2013-14. Budget savings came from planning and economic development positions filled at lower classifications than budgeted or occupied on a part-time rather than the budgeted full-time basis. Planning and economic development contract savings also occurred. Actual expenditures grew 10% or $328,000 over last year because of more planning and building applications, the filling of the economic development manager position, and shifting some of the housing plannerÓs costs from Other Governmental Funds to the General Fund. Prior year budget carryovers, an additional planner for two years because of the new Apple Campus 2, and appropriations for the general plan amendment, made the final budget $610,000 higher than the original. Public Works maintenance, repair, and engineering expenditures of $12,510,000 climbed 10% or $1,173,000 over the prior year. Storm drain maintenance staff costs shifted from Other Governmental Funds to the General Fund in 2012-13 due to the lack of storm drain development fees in Other Governmental Funds resulting from the recession and low fee rates that were not covering costs. New cost allocations for accounting, human resource, and permit systems began in 2012-13. Recent purchases of new maintenance vehicles and equipment caused an increased outlay to build up the internal service fund to replace this equipment in the future. Starting in the middle of 2011-12 and continuing for all of 2012-13, Blackberry Farm utility costs were charged to Public Works instead of Recreation, to be consistent with the recording of utility charges at other park facilities. Some street light utility costs should have been recorded in the prior year rather than the current year. Public Works was $1,482,000 or 11% under final budget due to project management, engineering, maintenance, and administrative staff vacancies and lower than expected City Hall reconfiguration, engineering consultant, and school traffic improvement costs. A temporary additional staff engineer for the new Apple Campus 2 development review, new City Hall office reconfiguration and repairs, and encumbrance, job order and school traffic improvement budgets carried over from last year comprised the $853,000 increase from original to final budget. Transfers out of the General Fund rose from $6,431,000 in 2011-12 to $8,221,000 in 2012-13, with $3,181,000 for annual debt service, $1,400,000 for retiree health obligations, $1,900,000 for road maintenance, $1,420,000 for capital projects, $75,000 for accrued leave payouts, and $245,000 for new information technology and fleet equipment. The increase from 2011-12 resulted from more capital project and retiree health funding. 31 142 CITY OF CUPERTINO ManagementÓs Discussion and Analysis (Unaudited) For the Year Ended June 30, 2013 Table 7 Expenditure Changes from Prior Year General Fund, Fiscal 2013 vs. 2012 (in thousands) Increase/(Decrease) Fiscal 2013From Fiscal 2012 Function/ProgramAmount% of TotalAmountPercent Administration $ 2,005 6% $ 472 31% Law enforcement 8,784 24% 338 4% Public and environmental affairs 1,487 4% (173)-10% Administrative services 3,773 10% (331)-8% Recreation services 4,084 11% (236)-5% Community development 3,762 10% 328 10% Public works 12,510 34% 1,173 10% Capital outlay 90 0% 78 650% Total expenditures $ 36,495 100% $ 1,649 5% Transfers out $ 8,221 100% $ 1,790 28% Table 8 Expenditure Budget and Actual Comparison General Fund, 2012-13 (in thousands) Under Budgeted Amounts(Over) Function/ProgramOriginalFinalActualFinal Administration $ 1,931 $ 2,252 $ 2,005 $ 247 Law enforcement 9,097 9,134 8,784 350 Public and environmental affairs 1,504 1,521 1,487 34 Administrative services 4,326 4,625 3,773 852 Recreation services 4,475 4,447 4,084 363 Community development 4,400 5,010 3,762 1,248 Public works 13,139 13,992 12,510 1,482 Capital outlay 36 193 90 103 Total expenditures $ 38,908 $ 41,174 $ 36,495 $ 4,679 Transfers out $ 26,505 $ 8,725 $ 8,221 $ 504 32 143 CITY OF CUPERTINO ManagementÓs Discussion and Analysis (Unaudited) For the Year Ended June 30, 2013 General Fund Balance The General Fund carried a June 30, 2013 ending fund balance of $36,044,000, up 38% or $9,946,000 from the prior year. The City assigns $12,500,000 of this for general economic uncertainty, $1,400,000 for state budget actions that impact City revenues, $2,000,000 for economic fluctuations, and $500,000 for potential pension liabilities. Non-spendable rehabilitation and employee housing loan receivables and prepaid expenses totaled $957,000 of the fund balance. A total of $726,000 is restricted for public, education, and government access programming. Lastly, $17,961,000 is unassigned as of June 30, 2013 and available for purchase orders and future budget actions. The increase in total fund balance resulted from revenues exceeding expenditures by $18,167,000 reduced by $8,221,000 in transfers to other funds. The $9,946,000 increase was distributed as follows: $9,916,000 to unassigned fund balance and $30,000 to restricted for public, education, and government access programming. Assigned one-time revenues of $1,329,000 and non-spendable loan receivables and prepaid expenses of $46,000 were released to unassigned. Public Facilities Corporation On May 9, 2012, a $43,940,000 par amount of 2012 Certificates of Participation (COPs) was issued to currently refund the 2002 COPs, to fund a reserve fund for the 2012 COPs, and pay costs in connection with issuance. This current refunding was undertaken to reduce debt service payments over the next eighteen years by $6,518,000 or $362,000 per year. On a present value basis, adjusted for issuance and reserve funds, the debt service savings total $6,637,000 or 15% of the refunded principal. The new COPs fixed interest rates range from 0.35% to 3.125% through the July 1, 2030 maturity, with a true interest cost of 2.81% over that time. The COPs were issued with an $884,000 premium. New debt proceeds and existing Corporation funds of $44,898,000 were given to the bond trustee to accomplish the refunding. Underwriter discounts and issuance costs of $615,000 and $228,000, respectively, occurred in the refunding. The refunding caused year-to-year fluctuations in principal and interest payments. The first $1,920,000 principal payment on the 2012 COPs is payable on July 1, 2013 and accrued for 2012-13. Because of the refunding in May 2012, one semi-annual interest payment and the annual principal payment on COPs were eliminated in 2011-12. The Corporation paid $995,000 in interest and trustee costs from one semi-annual debt payment on the old 2002 COPs prior to its refunding in 2011-12. In 2012-13, the Corporation incurred $1,257,000 in interest and trustee costs resulting from two semi-annual interest installments on the new 2012 COPs. See Note 7 to the Basic Financial Statements and the Debt Administration section of this Analysis for more information. MAJOR PROPRIETARY FUNDS Resources Recovery The CityÓs has a solid waste franchise agreement with Recology that shares collection, landfill disposal, and recycling revenues and costs. This enterprise fund receives 17% of Recology's revenues in the City, with the funds going toward landfill costs, regulatory fees, and staffing costs that the City incurs to manage solid waste, recycling and household hazardous waste programs. Because of the improving economy and resulting increase in tonnage that Recology handled, this fund experienced a 9% comparative yearly increase in residential and commercial pickup revenues, offset by 10% higher contract expenses for landfill disposal. Operating income fell from $162,000 last year to $118,000 this year. With interest earnings, net position increased by $135,000, down from $169,000 in growth last year, to end the year with a $6,313,000 unrestricted balance. 33 144 CITY OF CUPERTINO ManagementÓs Discussion and Analysis (Unaudited) For the Year Ended June 30, 2013 Blackberry Farm City employees, with a teaching professional on contract, staff the City-owned Blackberry Farm golf course and pro shop. The number of rounds played and accordingly, green fees, have been declining for five years. With rounds played falling from 31,567 in 2011-12 to 28,326 in 2012-13,operating revenues accordingly dropped 6% from $411,000 to $387,000. Expenses were flat at $463,000 this year with minimal staffing levels maintained at the course and lower water costs offset by increased cost allocation from governmental activities and depreciation. Financed by the Recreation Programs enterprise, a $482,000 capital project will provide cost- saving golf course irrigation alternatives. With lower revenues, the golf courseÓs operating loss increased from $50,000 last year to $77,000 this year. After interest income, net position declined $74,000, compared to last yearÓs $49,000 decrease. At June 30, 2013, unrestricted net position was $750,000. Cupertino Sports Center Tennis lesson, membership, fitness class and rent revenues of $2,150,000 rose by $184,000 or 9% over last year, resulting from 8% more in tennis lesson revenues, a 28% rise in monthly pass fees, and an 8% rise in annual pass fees. With contract instructor, facility support, and maintenance costs growing by $114,000 or 6%, operating income in 2012-13 improved to $139,000, compared to $68,000 produced in 2011-12. After adding-in interest earnings, the increase in net position of $141,000 brought unrestricted net position to $584,000 by year- end. Recreation Programs This enterprise operates the Quinlan Community Center, Monta Vista Recreation Center, McClellan Ranch, Creekside Park building, eight school sites, and various parks. The improved economy and enhanced marketing helped cultural events, youth and teen programs, sports, dance and fitness classes generate $2,410,000 in revenues that were 4% better than last year. Ongoing program expenses of $2,025,000, including full-time administrative and programming staff, part-time activity leaders, and class instructors on contract increased a modest 2% from 2011-12. Operating income climbed to $384,000 compared to $340,000 a year ago. To increase the fenced dog park capital budget, the fund received a $150,000 transfer from Other Governmental Funds. After interest earnings and transfers, the fund ended up with an increase in net position of $544,000 and an unrestricted net position balance of $3,218,000 that is needed for future operating budgets. CAPITAL ASSETS At June 30, 2013 the City had $159,126,000, net of depreciation, invested in a broad range of capital assets used in governmental and business-type activities, as shown in Table 9 and in Note 6 to the Basic Financial Statements. While the CityÓs capital asset total declined by 2%, equipment acquisitions and street improvements provided major capital additions with depreciation of existing assets offsetting the additions. 34 145 CITY OF CUPERTINO ManagementÓs Discussion and Analysis (Unaudited) For the Year Ended June 30, 2013 Table 9 Capital Assets, Net of Depreciation, at June 30 (in thousands) 20132012 Governmental Activities: Land60,471$ 60,471$ Easements19,492 1 9,492 Buildings 21,042 2 2,465 Improvements other than buildings14,941 1 6,107 Machinery and equipment1,762 1,616 Roads, curbs, gutters, sidewalks, medians and bridges33,803 3 3,373 Streetlights1,835 1,937 Storm drain structures and mains3,798 4,591 Traffic signals1,220 1,328 Total Governmental Activities 158,364 161,380 Business-Type Activities Buildings 241 273 Improvements other than buildings 490 494 Machinery and equipment 31 5 8 Total Business-Type Activities 762 825 Total City $ 159,126$ 162,205 DEBT ADMINISTRATION The CityÓs only long-term debt liability at June 30, 2013, comes from $43,940,000 in Certificates of Participation (COPs) issued in May 2012 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, the City Hall remodel, and the new library opened in 2004. The serial, fixed interest rate debt ranging from 0.35% to 3.125% requires annual debt payments of approximately $3,171,000 that are covered by the General Fund. The June 30, 2013 outstanding principal of $42,020,000 is due to be paid off by 2030. More information can be found in Note 7 to the Basic Financial Statements and in the Public Facilities Corporation discussion earlier in this Analysis. CONTACTING THE CITYÓS FINANCIAL MANAGEMENT This Comprehensive Annual Financial Report is intended to provide a general overview of the CityÓs 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. 35 146 This Page Left Intentionally Blank 36 147 STATEMENT OF NET POSITION AND STATEMENT OF ACTIVITIES The Statement of Net Position and the Statement of Activities summarize the entire CityÓs financial activities and financial position. They are prepared on the same basis as is used by most businesses, which means they include all the CityÓs assets and all its liabilities, as well as all its revenues and expenses. This is known as the full accrual basis Î the effect of all the CityÓs transactions is taken into account, regardless of whether or when cash changes hands, but all material internal transactions between City funds have been eliminated. The Statement of Net Position reports the difference between the CityÓs total assets and deferred outflows and the CityÓs total liabilities and deferred outflows, including all the CityÓs capital assets and all its long- term debt. The Statement of Net Position summarizes the financial position of all the CityÓs Governmental Activities in a single column, and the financial position of all the CityÓs Business-Type Activities in a single column; these columns are followed by a Total column which presents the financial position of the entire City. The CityÓs Governmental Activities include the activities of its General Fund, along with all its Special Revenue, Capital Projects and Debt Service Funds. Since the CityÓs Internal Service Funds service these Funds, their activities are consolidated with Governmental Activities, after eliminating inter-fund transactions and balances. The CityÓs Business Type Activities include all its Enterprise Fund activities. The Statement of Activities reports increases and decreases in the CityÓs net position. It is also prepared on the full accrual basis, which means it includes all the CityÓs revenues and all its expenses, regardless of when cash changes hands. This differs from the Ðmodified accrualÑ basis used in the Fund financial statements, which reflect only current assets, current liabilities, available revenues and measurable expenditures. The format of the Statement of Activities presents the CityÓs expenses first, listed by program, and follows these with the expenses of its business-type activities. Program revenues, that are revenues which are generated directly by these programs, are then deducted from program expenses to arrive at the net expense of each governmental and business-type program. The CityÓs general revenues are then listed in the Governmental Activities or Business-type Activities column, as appropriate, and the Change in Net Position is computed and reconciled with the Statement of Net Position. Both these Statements include the financial activities of the City and the Cupertino Public Facilities Corporation, which is a legally separate component unit of the City because it is controlled by and financially accountable to the City. 37 148 CITY OF CUPERTINO STATEMENT OF NET POSITION JUNE 30, 2013 GovernmentalBusiness-Type ActivitiesActivitiesTotal ASSETS Cash and investments (Note 2)$56,931,070$11,768,475$68,699,545 Restricted cash and investments (Note 2)4,076,8454,076,845 Receivables: Accounts2,935,565243,8533,179,418 Interest135,54127,560163,101 Intergovernmental25,00025,000 Loans (Note 4)1,681,1011,681,101 Prepaid expenses and other assets106,257106,257 Property held for resale (Note 1f)247,875247,875 Net OPEB asset (Note 12)4,259,8974,259,897 Capital assets (Note 6): Non-depreciable79,962,92879,962,928 Depreciable, net of accumulated depreciation78,400,990762,01379,163,003 Total Assets228,763,06912,801,901241,564,970 LIABILITIES Accounts payable and accruals6,360,383415,3426,775,725 Accrued payroll and benefits655,51556,084711,599 Deposits2,133,3422,133,342 Unearned revenue461,790665,4941,127,284 Compensated absences (Note 1h): Due in one yea394,86715,912410,779 r 2,505,88621,5772,527,463 Due in more than one year Claims payable (Note 10): Due in one yea436,636436,636 r Due in more than one yea1,540,9131,540,913 r Long-term debt (Note 7): Due in one yea2,040,0002,040,000 r Due in more than one yea39,980,00039,980,000 r Total Liabilities56,509,3321,174,40957,683,741 NET POSITION (Note 8) Net investment in capital assets116,343,918762,013117,105,931 Restricted for: Special revenue projects3,726,8273,726,827 Affordable housing2,211,4142,211,414 Public access television725,903725,903 Debt service1,686,9741,686,974 Total Restricted Net Position8,351,1188,351,118 47,558,70110,865,47958,424,180 Unrestricted $172,253,737 Total Net Position$11,627,492$183,881,229 See accompanying notes to financial statements 38 149 CITY OF CUPERTINO STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2013 Net (Expense) Revenue an d Proram RevenuesChanes in Net Assets gg OperatinCapital g Chares foGrants and Grants anGovernmental Business-tpe grdy Functions/ProramsExpensesServicesContributionsContributionsActivitiesActivitiesTotal g Governmental Activities: Administration$2,367,255$5,676$110,445($2,251,134)($2,251,134) Law enforcement9,274,536637,595100,000(8,536,941)(8,536,941) Public and environmental affairs1,595,982(1,595,982)(1,595,982) Administrative services4,171,440(4,171,440)(4,171,440) Recreation services4,473,861970,292(3,503,569)(3,503,569) Communit development4,676,2736,765,564793,9812,883,2722,883,272 y Public works22,149,063593,5011,748,067$719,880(19,087,615)(19,087,615) Interest on lon - term debt1,256,922(1,256,922)(1,256,922) g Total Governmental Activities49,965,3328,972,6282,752,493719,880(37,520,331)(37,520,331) Business-tpe Activities: y Resource recover1,764,9931,882,517$117,524117,524 y Blackberr farm463,336386,753(76,583)(76,583) y Cupertino sports cente2,011,4832,150,139138,656138,656 r Recreation prorams2,025,4162,409,720384,304384,304 g Total Business-tpe Activities6,265,2286,829,129563,901563,901 y Total$56,230,560$15,801,757$2,752,493$719,880(37,520,331)563,901(36,956,430) General revenues: Taxes: Propert taxes8,793,1108,793,110 y Propert tax in lieu of motor vehicle fee4,772,3554,772,355 y Sales taxes18,721,19318,721,193 Transient occupanc tax3,768,5043,768,504 y Utilit user tax2,994,5262,994,526 y Franchise tax2,848,9502,848,950 Other taxes4,561,2194,561,219 Interovernmental, unrestricted: g Motor vehicle license fee30,25630,256 Investment earnins176,78231,573208,355 g Miscellaneous126,690126,690 Transfers (Note 5)(150,000)150,000 Total eneral revenues and transfers46,643,585 181,57346,825,158 g Chane in Net Position9,123,254745,4749,868,728 g Net Position, beinnin of ea163,130,48310,882,018174,012,501 ggyr Net Position, end of ea$172,253,737$11,627,492$183,881,229 yr See accompanin notes to financial statements yg 39 150 This Page Left Intentionally Blank 40 151 FUND FINANCIAL STATEMENTS In the Fund Financial Statements only individual major funds are presented, while non-major funds are combined in a single column. Major funds are defined generally as having significant activities or balances in the current year. The funds described below were determined to be Major Funds by the City for fiscal 2012-13. Individual non-major funds may be found in the Supplemental section. GENERAL FUND The general 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. PUBLIC FACILITIES CORPORATION DEBT SERVICE FUND This fund accounts for the payments of principal and interest on certificates of participation issued to provide for the financing of the Civic Center, Library, Wilson Park, Memorial Park, and other City facilities. 41 152 CITY OF CUPERTINO GOVERNMENTAL FUNDS BALANCE SHEET JUNE 30, 2013 PublicOtheTotal r FacilitiesGovernmentalGovernmental GeneralCorporationFundsFunds ASSETS Cash and investments (Note 2)$38,569,562$97,908$10,180,820$48,848,290 Restricted cash and investments (Note 2)4,076,8454,076,845 Receivables: Accounts2,486,543449,0222,935,565 Interest105,71010,731116,441 Intergovernmental 25,00025,000 Loans (Note 4)920,593760,5081,681,101 Prepaid items36,23436,234 Advance to other funds (Note 5)560,564560,564 Property held for resale (Note 1f)247,875247,875 Other assets3,8843,884 Total Assets$42,708,090$4,174,753$11,648,956$58,531,799 LIABILITIES Accounts payable and accruals$3,450,044$2,487,779$249,383$6,187,206 Accrued payroll and benefits593,60531,826625,431 Deposits2,133,3422,133,342 Unearned revenue461,790461,790 Total Liabilities6,638,7812,487,779281,2099,407,769 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - loans129,602129,602 Unavailable revenue - grants25,00025,000 Total Deferred Inflows of Resources25,000129,602154,602 FUND BALANCES (Note 8): Nonspendable956,827956,827 Restricte725,9031,686,9745,938,2418,351,118 d Assigned16,400,0005,299,90421,699,904 Unassigne17,961,57917,961,579 d Total Fund Balances36,044,3091,686,97411,238,14548,969,428 Total Liabilities, Deferred Inflows of Resources and Fund Balances$42,708,090$4,174,753$11,648,956$58,531,799 See accompanying notes to financial statements 42 153 CITY OF CUPERTINO Reconciliation of the GOVERNMENTAL FUNDS -- BALANCE SHEET with the STATEMENT OF NET POSITION JUNE 30, 2013 Total fund balances reported on the governmental funds balance sheet$48,969,428 Amounts reported for Governmental Activities in the Statement of Net Position 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.156,899,326 ALLOCATION OF INTERNAL SERVICE FUND NET POSITION Internal service funds are used by management to charge the costs of activities such as information technology, 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 the governmental activities of the statement of net position.11,193,827 RECEIVABLES NOT AVAILABLE Certain receivables are not available to pay for current period expenditures and therefore are deferred in the governmental funds.154,602 LONG TERM LIABILITIES The liabilities below are not due and payable in the current period and therefore are not reported in the governmental funds: Long-term debt(42,020,000) Claims payable(100,000) Compensated absences(2,843,446) NET POSITION OF GOVERNMENTAL ACTIVITIES$172,253,737 See accompanying notes to financial statements 43 154 CITY OF CUPERTINO GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2013 PublicOtheTotal r FacilitiesGovernmentalGovernmental GeneralCorporationFundsFunds REVENUES Taxes$45,343,962$3,038,608$48,382,570 Use of money and property721,149$2,29920,748744,196 Intergovernmental382,5362,458,8712,841,407 Licenses and permits3,502,6173,502,617 Charges for services4,095,150419,9164,515,066 Fines and forfeitures560,417560,417 Other revenue56,0931,73557,828 Total Revenues54,661,9242,2995,939,87860,604,101 EXPENDITURES Current: Administration2,005,1762,005,176 Law enforcement8,783,8858,783,885 Public and environmental affairs1,486,9101,486,910 Administrative services3,772,7143,772,714 Recreation services4,083,8224,083,822 Community development3,762,180633,4214,395,601 Public works12,510,0661,486,45013,996,516 Capital outlay90,0374,594,6394,684,676 Debt service: Principal 1,920,000 1,920,000 Interest and fiscal charges1,256,9221,256,922 Total Expenditures36,494,7903,176,9226,714,51046,386,222 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES18,167,134(3,174,623)(774,632)14,217,879 OTHER FINANCING SOURCES (USES) Transfers in (Note 5)3,181,0005,257,7078,438,707 Transfers (out) (Note 5)(8,220,503)(2,087,707)(10,308,210) Total Other Financing Sources (Uses)(8,220,503)3,181,0003,170,000(1,869,503) NET CHANGE IN FUND BALANCES9,946,6316,3772,395,36812,348,376 BEGINNING FUND BALANCES26,097,6781,680,5978,842,77736,621,052 ENDING FUND BALANCES$36,044,309$1,686,974$11,238,145$48,969,428 See accompanying notes to financial statements 44 155 CITY OF CUPERTINO Reconciliation of the NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS with the STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2013 The schedule below reconciles the Net Changes in Fund Balances reported on the Governmental Funds Statement o f Revenues, Expenditures and Changes in Fund Balance, which measures only changes in current assets and current liabilities on the modified accrual basis, with the Change in Net Position of Governmental Activities reported in the Statement of Activities, which is prepared on the full accrual basis. NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS$12,348,376 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 outlay4,248,588 Depreciation expense is deducted from the fund balance(7,316,594) LONG TERM DEBT TRANSACTIONS Principal payments1,920,000 ACCRUAL OF NON-CURRENT 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 revenue or expenditures in governmental funds (net change): Compensated absences(129,890) Claims payable(100,000) Deferred revenue(1,394,497) ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY Internal Service Funds are used by management to charge the costs of certain activities, such as equipment acquisition, maintenance, and insurance 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, ecause they service those activities. b Change in Net Position - All Internal Service Funds(452,729) CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES$9,123,254 See accompanying notes to financial statements 45 156 CITY OF CUPERTINO GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2013 Variance with Budgeted AmountsFinal Budget Positive OriginalFinalActual Amounts(Negative) Revenues: Taxes$55,568,000$42,268,000$45,343,962$3,075,962 Use of money and property875,000875,000721,149(153,851) Intergovernmental315,000415,000382,536(32,464) Licenses and permits5,205,0004,346,0003,502,617(843,383) Charges for services3,954,0002,481,0384,095,1501,614,112 Fines and forfeitures650,000650,000560,417(89,583) Other revenue100,000100,00056,093(43,907) Amounts available for appropriation66,667,00051,135,03854,661,9243,526,886 Charges for appropriation (outflows) Current Administration1,931,2132,252,0752,005,176246,899 Law enforcement9,097,3449,134,2438,783,885350,358 Public and environmental affairs1,503,3321,521,1281,486,91034,218 Administrative services4,326,4434,625,3343,772,714852,620 Recreation services4,475,3314,446,6334,083,822362,811 Community development4,400,1565,009,8273,762,1801,247,647 Public works13,138,65313,992,14012,510,0661,482,074 Capital outlay35,500193,00090,037102,963 Total charges for appropriations38,907,97241,174,38036,494,7904,679,590 EXCESS OF REVENUES OVER EXPENDITURES27,759,0289,960,65818,167,1348,206,476 OTHER FINANCING SOURCES (USES) Transfers (out)(26,505,000)(8,725,000)(8,220,503)504,497 Total other financing sources (uses)(26,505,000)(8,725,000)(8,220,503)504,497 NET CHANGE IN FUND BALANCE$1,254,028$1,235,6589,946,631$8,710,973 BEGINNING FUND BALANCE26,097,678 ENDING FUND BALANCE$36,044,309 See accompanying notes to financial statements 46 157 MAJOR PROPRIETARY FUNDS Proprietary funds account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges. The City has identified the funds below as major proprietary funds for fiscal 2012-13. RESOURCES RECOVERY FUND This fund accounts for activity related to the collection, disposal, and recycling of solid waste. A private company has been issued an exclusive franchise to perform these services. BLACKBERRY FARM FUND This fund accounts for activities related to operating the City-owned golf course. CUPERTINO SPORTS CENTER FUND This fund accounts for the operation and maintenance of the Cupertino Sports Center. RECREATION PROGRAMS FUND This fund accounts for activities of the CityÓs community centers and park facilities. 47 158 CITY OF CUPERTINO PROPRIETARY FUNDS STATEMENT OF NET POSITION JUNE 30, 2013 Business-type Activities-Enterprise FundsGovernmental Cupertino Activities- Resources Blackberry Sports Recreation Internal Servic e RecoveryFarmCenteProgramsTotalsFunds r ASSETS Current Assets: Cash and investments (Note 2)$6,200,381$790,369$874,771$3,902,954$11,768,475$8,082,780 Accounts receivable 243,613240243,853 Interest receivable14,6651,8672,0688,96027,56019,100 Prepaid items66,139 Total current assets6,458,659792,476876,8393,911,91412,039,8888,168,019 Noncurrent assets: Net OPEB asset (Note 12)4,259,897 Capital Assets (Note 6): Depreciable, net o f accumulated depreciation30,48362,147108,173561,210762,0131,464,592 Total noncurrent assets30,48362,147108,173561,210762,0135,724,489 Total Assets6,489,142854,623985,0124,473,12412,801,90113,892,508 LIABILITIES Current Liabilities: Accounts payable and accruals133,4698,140174,88998,844415,342173,177 Accrued payroll and benefits7,3375,12010,03333,59456,08430,084 Advance from other funds (Note 5)560,564 Compensated absences (Note 1h)3,27910,5952,03815,91221,861 Claims payable (Note 10)436,636 Unearned revenue104,468561,026665,494 Total current liabilities144,08523,855291,428693,4641,152,8321,222,322 Non-current Liabilities: Compensated absences (Note 1h)1,52018,2721,78521,57735,446 Claims payable (Note 10)1,440,913 Total Liabilities145,60542,127293,213693,4641,174,4092,698,681 NET POSITION (Note 8) Net investment in capital assets30,48362,147108,173561,210762,0131,464,592 Unrestricte6,313,054750,349583,6263,218,45010,865,4799,729,235 d 3,779,660 Total Net Position$6,343,537$812,496$691,799$11,627,492$11,193,827 $ See accompanying notes to financial statements 48 159 CITY OF CUPERTINO PROPRIETARY FUNDS STATEMENT OF REVENUE, EXPENSES AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2013 Business-type Activities-Enterprise FundsGovernmental Cupertino Activities- Resources Blackberry Sports Recreation Internal Service RecoveryFarmCenteProgramsTotalsFunds r OPERATING REVENUES Charges for services$1,866,458$369,628$2,149,255$2,408,539$6,793,880$3,399,453 Othe16,05917,1258841,18135,2497,352 r Total Operating Revenues1,882,517386,7532,150,1392,409,7206,829,1293,406,805 OPERATING EXPENSES Salaries and benefits210,302143,450291,746460,6011,106,0993,163,409 Materials and supplies 53,96174,752176,276155,109460,098576,007 Contractual services1,497,379233,4921,514,1801,304,7704,549,821494,070 Insurance and claims and premium934,072 Depreciation (Note 6)3,35111,64229,281104,936149,210440,461 Total Operating Expenses1,764,993463,3362,011,4832,025,4166,265,2285,608,019 Operating Income (Loss)117,524(76,583)138,656384,304563,901(2,201,214) NONOPERATING REVENUES Investment income17,1542,1862,3109,92331,57328,982 Total Nonoperating Revenues17,1542,1862,3109,92331,57328,982 Income (Loss) Before Transfers134,678(74,397)140,966394,227595,474(2,172,232) Transfers in (Note 5)150,000150,0001,719,503 Change in net position134,678(74,397)140,966544,227745,474(452,729) Net Position-Beginning of yea6,208,859886,893550,8333,235,43310,882,01811,646,556 r Net Position-End of yea$6,343,537$812,496$691,799$3,779,660$11,627,492$11,193,827 r See accompanying notes to financial statements 49 160 CITY OF CUPERTINO PROPRIETARY FUNDS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2013 Business-type Activities-Enterprise Funds Governmental Cupertino Activities- Resources Blackberry Sports RecreationInternal Service RecoveryFarmCenteProgramsTotalsFunds r CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers$1,886,491$386,513$2,190,595$2,446,694$6,910,293$3,416,908 Cash payments to suppliers for goods and services(1,642,999)(314,225)(1,613,390)(1,442,147)(5,012,761)(1,009,417) Cash payments to employees(209,651)(141,441)(295,619)(463,989)(1,110,700)(3,154,069) Cash payments for judgment and claims(552,501) Net cash provided (used) by operating activities33,841(69,153)281,586540,558786,832(1,299,079) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Advance repayment from other funds504,497 Advance from other funds560,564 Transfers in150,000150,0001,719,503 Cash Flows from Noncapital Financing Activities150,000150,0002,784,564 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisitions of capital assets(6,539)(27,832)(52,165)(86,536)(492,128) Cash Flows from Capital an d Related Financing Activities(6,539)(27,832)(52,165)(86,536)(492,128) CASH FLOWS FROM INVESTING ACTIVITIES Interest receive7,4631,0147393,49912,71515,447 d Cash Flows from Investing Activities7,4631,0147393,49912,71515,447 Net Cash Flows41,304(74,678)254,493641,892863,0111,008,804 Cash and investments at beginning of yea6,159,077865,047620,2783,261,06210,905,4647,073,976 r $6,200,381 $790,369 Cash and investments at end of year$874,771$3,902,954$11,768,475$8,082,780 Reconciliation of operating income (loss) to net cash provided by operating activities: Operating income (loss)$117,524($76,583)$138,656$384,304$563,901($2,201,214) Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation3,35111,64229,281104,936149,210440,461 Change in assets and liabilities: Accounts receivable3,974(240)1,6805,414 Prepaid expense(35,674) Net OPEB assets28,058 Accounts payable and accruals(91,659)(5,981)77,06617,732(2,842)106,437 Accrued payroll and benefits98253(826)(3,388)(3,863)284 Deposits(19,002) Deferred revenue40,45635,29475,750 Claims payable381,571 Compensated absences5531,756(3,047)(738) 33,841 Net cash provided (used) by operating activities$($69,153)$281,586$540,558$786,832($1,299,079) See accompanying notes to financial statements 50 161 FIDUCIARY FUNDS Fiduciary Funds include a private-purpose trust fund that accounts for the accumulation of resources to be used for payments at appropriate amounts and times in the future. Fiduciary Funds also include agency funds that account for assets held by the City as an agent for individuals, private organizations, other governmental units, or other entities. Agency Funds are custodial in nature and do not involve measurement of operation results. Such funds have no equity since all assets are due to individuals or other entities in the future. SUCCESSOR AGENCY TO FORMER REDEVELOPMENT AGENCY PRIVATE-PURPOSE TRUST FUND This fund holds the net position of the CityÓs former redevelopment agency. The net position is dedicated to remaining agency obligations. AGENCY FUNDS Special district assessments held by the City, acting as an agent for bond debt service payments, comprise City Agency funds. The City is not liable for the debt payments. 51 162 CITY OF CUPERTINO FIDUCIARY FUNDS STATEMENT OF NET POSITION JUNE 30, 2013 Successor Aenc to gy Redeveloment p Aenc gy Private-uroseAenc ppgy Trust FundFunds ASSETS Cash and investments Note 2$775,719$81,403 () Total Assets$775,719$81,403 LIABILITIES Accrued aroll and benefits$1,992 py Deosits$81,403 p Total Liabilities1,992$81,403 ET POSITION N Held in trust for restricted purposes$773,727 See accomanin notes to financial statements pyg 52 163 CITY OF CUPERTINO FIDUCIARY FUND STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE YEAR ENDED JUNE 30, 2013 Successor Aenc to gy Redeveloment p Aenc gy Private-urose pp Trust Fund ADDITIONS Use of mone and roert$469 yppy Other revenue - ABAG refund67,655 Total additions68,124 DEDUCTIONS Communit develoment activities64,742 yp Total deductions64,742 Chane in net osition3,382 gp et osition - beinnin of ear770,345 Npggy et position - end of year$773,727 N See accomanin notes to financial statements pyg 53 164 This Page Left Intentionally Blank 54 165 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 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. Fire services are provided by the Santa Clara County Fire District, and the City contracts with the Santa Clara County SheriffÓs 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 CityÓs blended component unit entity 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 CityÓs operations and so data from this unit is combined with the City. Blended component unit - 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 Corporation does not issue separate financial statements, since it is reported separately in the CityÓs basic financial statements. (b) Measurement Focus, Basis of Accounting and Basis of Presentation The CityÓs 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. Government-wide Statements - The Statement of Net Position 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. 55 166 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (b) Measurement Focus, Basis of Accounting and Basis of Presentation (Continued) 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 CityÓs 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 Position eliminates interfund balances between governmental funds and interfund balances between proprietary funds. Fund Financial Statements - The fund financial statements provide information about the CityÓs funds, including fiduciary funds and blended component units. Separate statements for each fund category Î governmental, proprietary, and fiduciary Î 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. Major Funds - The CityÓs 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 (plus deferred outflows), liabilities (plus deferred inflows), 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. 56 167 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (b) Measurement Focus, Basis of Accounting and Basis of Presentation (Continued) The City reported the following major governmental funds in the accompanying financial statements: The General 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. The Public Facilities Corporation Debt Service Fund accounts for the payments of principal and interest on certificates of participation issued to provide for the financing of City Hall, Library, Wilson Park, Memorial Park, and other City facilities. The City reports all its enterprise funds as major funds in the accompanying financial statements: The Resources Recovery Fund accounts for activity related to the collection, disposal, and recycling of solid waste. A private company has been issued an exclusive franchise to perform these services. The Blackberry Farm Fund accounts for activities related to the municipal golf course. The Cupertino Sports Center Fund accounts for the operation and maintenance of the Cupertino Sports Center. The Recreation Programs Fund accounts for activities of the CityÓs community centers and park facilities. The City also reports the following fund types: Internal Service Funds. These funds account for workersÓ 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 Types. The financial activities of these funds are excluded from the Government-wide financial statements. The Successor Agency to Redevelopment Agency Private-Purpose Trust Fund accounts for net position restricted to satisfying the remaining obligations of the former Redevelopment Agency. See Note 14 for more information. The Agency Fund accounts for the CityÓs role as an agent for repaying special assessment debt. 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 when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. 57 168 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (b) Measurement Focus, Basis of Accounting and Basis of Presentation (Continued) 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 as expenditures 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 unavailable revenues are based on the modified accrual measure. Fiduciary financial statements consist of a private-purpose trust fund and agency fund. The measurement focus and basis of accounting of the private-purpose trust fund is similar to a proprietary fund. The agency fund reports only assets and liabilities and therefore has no measurement focus. It recognizes 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 tax consultant payments 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 CityÓs 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 a deferred inflow 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. 58 169 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 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 CityÓs legal level of budgetary control is at the functional level for the general fund and at the fund level for other funds. The City Manager is responsible for controlling the CityÓs expenditures in accordance with the adopted budget. The City Manager is authorized to administer and transfer appropriations between budget accounts within the operating budget when in his opinion such transfers become necessary for administrative purposes. Any revision which 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. (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. 59 170 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (e) Capital Assets (Continued) Depreciation is recorded using the straight-line method over the following useful lives: Years Buildings 15 - 25 Improvements 10 - 15 Vehicles 4 - 10 Street equipment 3 - 20 Water equipment 3 - 50 Office equipment 3 - 5 Road, curbs, gutters, sidewalks, medians and bridges 30 - 40 Streetlights 20 Storm drain structure and mains 40 Traffic signals 20 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) Property Held for Resale Property held for resale is stated at the lowest of historical cost, net realizable value or agreed-upon sales price. The City operates an affordable housing program funded by development impact fees that are recorded in the Housing Development Special Revenue Fund. To effectuate a change in private ownership of a condominium built under the program, the City, using Housing Development Fund cash, purchased the unit in a foreclosure sale on April 4, 2013 for $247,875 and recorded the asset as Property Held for Resale in the same Fund. (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 workersÓ compensation and long-term disability, and other claims and judgments are recorded in the General Fund or enterprise funds, as appropriate. 60 171 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (h) Compensated Absences Compensated absences comprise vested accumulated vacation and sick leave. The CityÓs 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 Ðpermanently liquidated,Ñ 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 Position. 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 fund to account for termination payouts. The changes in compensated absences for the year ended June 30, 2013 were as follows: Governmental Business-Type ActivitiesActivitiesTotal Beginning Balance$2,789,865$38,227$2,828,092 Additions 415,3554,635419,990 Payments(304,467)(5,373)(309,840) Ending Balance$2,900,753$37,489$2,938,242 Current Portion$394,867$15,912$410,779 Non-current Portion$2,505,886$21,577$2,527,463 (i) Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position or balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of financial position or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. 61 172 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (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 ÐTeeter PlanÑ). 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. (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 CityÓs 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) 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. (o) Early Implementation of New GASB Pronouncement GASB issued Statement No. 65, ÐItems Previously Reported as Assets and LiabilitiesÑ, which establishes accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows of resources or inflows of resources, certain items that were previously reported as assets and liabilities. This Statement also provides other financial reporting guidance related to the impact of the financial statement elements deferred outflows of resources and deferred inflows of resources, such as changes in the determination of the major fund calculations and limiting the use of the term deferred in financial statement presentations. This Statement is effective for fiscal periods beginning after December 15, 2012. The City has elected to early implement this Statement to be effective this fiscal year ending June 30, 2013. 62 173 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 NOTE 2 Î CASH AND INVESTMENTS The CityÓs 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 typeÓs portion of this pool is displayed on the Statement of Net Position and the balance sheet as Ðcash and investments.Ñ (a) Policies California Law requires banks and savings and loan institutions to pledge government securities with a market value of 110% of the CityÓs 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 CityÓs 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 CityÓs 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. (b) Classification The City's total cash and investments, at fair value, are presented on the accompanying financial statements in the following allocation: Private - Primary PurposeAgency GovernmentTrust FundFundsTotal Cash and Investments$68,699,545$775,719$81,403$69,556,667 Restricted Cash and Investments: Held by Fiscal Agent for Bond Repayments4,076,8454,076,845 Total Cash and Investments$72,776,390$775,719$81,403$73,633,512 63 174 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 NOTE 2 Î CASH AND INVESTMENTS (Continued) (c) Authorized Investments by the City The CityÓs 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 CityÓs investments of debt proceeds held by fiscal agents that are governed by the provisions of debt agreements of the City. Minimum Maximum Maximum Maximum Credit Percentage of Investment in Authorized Investment Type Maturity Quality Portfolio One Issuer U.S. Treasury Obligations 5 years N/A None None U.S. Agency Securities * 5 years N/A None None California Local Agency Investment Up to $50 N/A N/A None million Fund (LAIF) Non-negotiable Certificates of 10% of portfolio; 5 years N/A 30% *** Deposits (time deposits) 5% of issuer's net worth. ** State of California registered state 5 years N/A None None warrants, treasury notes, or bonds California local agency bonds, notes, 5 years N/A None None warrants, or other obligations Bond issued by the local agency 5 years N/A None None Bankers' Acceptances 180 days N/A 40% None 10% of portfolio; Commercial Paper 270 days A-1+/P-1 25% 5% of issuer's net worth; 10% of outstanding paper of issuer. ** 10% of portfolio; Negotiable Certificates of Deposit 5 years N/A 30% 5% of issuer's net worth. ** 10% of portfolio; Repurchase Agreements 1 year N/A None 5% of issuer's net worth. ** 10% of portfolio; Medium Term Corporate Notes 5 years A or better 30% 5% of issuer's net worth. ** Money market mutual funds investing in U.S. Treasury, Government Agency securities or repurchase 5 years Aaa/AAA 20% None agreements collaterized by U.S. Treasury or Government Agency securities * Securities issued by agencies of the federal government such as the Government National Mortgage Association (GNMA), the Federal Farm Credit System (FFCB), the Federal Home Loan Bank (FHLB), the Federal National Mortgage Association (FNMA), the Student Loan Marketing Association (SLMA), and the Federal Home Loan Mortgage Association (FHLMC). ** Represents restriction in which the CityÓs 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. 64 175 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 NOTE 2 Î 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 CityÓs 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: Minimum Maximum Maximum Credit Percentage of Authorized Investment Type Maturity Quality Portfolio Cash or obligations of the U.S. including U.S. Treasury obligations N/A N/A None Federal agencies obligations which represent full faith N/A N/A None and credit of the U.S. Direct federal agencies obligations which are not fully N/A N/A None guaranteed by the full faith and credit of the U.S. U.S. dollar denominated deposit accounts, federal funds and 360 days P-1, A-1+, A-1 None bankers' acceptances with domestic commercial banks Commercial Paper 270 days P-1, A-1 None Money market funds N/A Aaam or AAAm-G None Pre-refunded municipal obligations that are not callable Highest rating prior to maturity or as to which irrevocable instructions N/A None category have been given to call on the date specified in the notice Municipal obligations or General obligations of states N/A Aaa, AAA, A2, A None Up to $50 California Local Agency Investment Fund (LAIF) N/A N/A million Shares in a California common law trust established pursuant to Title 1, Division 7, Chapter 5 of the California Government N/A N/A None Code which invests exclusively in investments permitted by Section 53635 of Title 5, Division 2, Chapter of the California Government Code, as it may be amended. 65 176 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 NOTE 2 Î 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 CityÓs investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the CityÓs investments by maturity or earliest call date: 12 Months 13 toMore than Investment Type or less24 Months24 MonthsTotal U.S. Treasury Securities$30,020,410$9,001,210$2,993,430$42,015,050 U.S. Agency Notes18,672,900 18,672,900 Local Agency Investment Fund1,111,3851,111,385 Money Market Mutual Funds6,426,0576,426,057 Total Investments$37,557,852$9,001,210$21,666,33068,225,392 Cash in banks and on hand5,408,120 Total Cash and Investments$73,633,512 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 LAIFÓs investment portfolio are U.S. Treasuries, Federal Agency obligations, time deposits, negotiable certificates of deposits, commercial paper, corporate bonds, and security loans. These investments had weighted average maturity of 278 days. Money market mutual funds are available for withdrawal on demand. At June 30, 2013, money market mutual funds, used for pooled investment and held by fiscal agent purposes, had a weighted average maturity of approximately 45 days. 66 177 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 NOTE 2 Î 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, 2013 for each investment type, including those with fiscal agents, as provided by MoodyÓs ratings: Investment TypeRatingsTotal Money Market Mutual FundsAAA$6,426,057 U.S. Agency NotesAAA 18,672,900 Exempt from Credit Rating Disclosure: U.S. Treasury SecuritiesExempt42,015,050 Not Rated: Local Agency Investment FundNot Rated1,111,385 Total Investments$68,225,392 (g) Concentration of Credit Risk The CityÓs 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 had the following investments that represent 5% or more of total City-wide investments: IssuerInvestment Type2013 Federal Home Loan Mortgage Corporation (FHLMC)U.S. Agency Notes$6,322,260 Federal National Mortgage Association (FNMA)U.S. Agency Notes7,224,300 67 178 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 NOTE 3 Î 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 amount of this borrowing pertaining to the City was $1,419,497. The State of California repaid this borrowing, plus $94,367 in interest, on June 24, 2013. The repayment by the State of California removed a receivable in the accompanying basic financial statements. Under the modified accrual basis of accounting, the repayment was recognized as tax and use of money and property revenues in the governmental fund financial statements. In the government- wide financial statements, the tax revenues were recognized in the 2009-10 fiscal year for which they were levied. NOTE 4 Î LOANS RECEIVABLE (a) Related Party Loans In conjunction with the CityÓs executive housing assistance program, a loan totaling $584,360 has been th provided to an executive manager. The 40-year loan bears an interest rate equal to the 11 District Cost of Funds at the time of the loan, and requires bi-weekly 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 th interest rate may be adjusted to the current 11 District Cost of Funds for the remainder of the loan. At June 30, 2013, the balance remaining on the loan was $440,180. (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, 2013, 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, 2013, the balance on the loan was $234,627. In addition to these loans, the City has $185,294 in housing and other loans receivable at June 30, 2013. These loans bear interest at 3 to 6 percent and are due by June 30, 2025. 68 179 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 NOTE 5 - INTERFUND TRANSACTIONS Transfers between funds during the fiscal year ended June 30, 2013 were as follows: Fund Making TransfersFund Receiving TransfersAmount Transferred General Fund$3,181,000 Public Facilities Corporation Debt Service Fund(A) 3,320,000 Non-major governmental funds(B), (C) 1,719,503 Internal Service Funds(D) Non-major governmental funds 1,937,707 Non-major governmental funds(E), (F) 150,000 Recreation Programs Enterprise Fund(G) $10,308,210 Total Interfund Transfers The reasons for these transfers are set forth below: (A)For annual lease payment for 2012 Certificates of Participation Debt. (B)For capital projects. (C)To fund street maintenance & pavement management. (D)To fund retiree medical, IT, equipment replacement and compensated absences. (E)To fund Stevens Creek Corridor Park phase II project. (F)To finance several park, facility and traffic improvement projects. (G)Additional dog park funding from capital improvement project reserve. Internal Balances Î 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. Advance to and advance from other funds During fiscal year ended June 30, 2013, the General Fund loaned the Retiree Medical Internal Service Fund $560,564 to fund the Annual Required Contribution (ARC) implicit subsidy. The Retiree Medical Internal Service Fund is expected to repay the General Fund during fiscal year ended June 30, 2014. 69 180 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 NOTE 6 - CAPITAL ASSETS A summary of changes in governmental activities capital assets is as follows: Balance atBalance at June 30, 2012AdditionsRetirementsJune 30, 2013 Governmental activities Capital assets not being depreciated: Land$60,470,969$60,470,969 Easements19,491,95919,491,959 Total capital assets not being depreciated79,962,92879,962,928 Capital assets being depreciated: Buildings40,771,283$92,97140,864,254 Improvements other than buildings41,330,356457,56541,787,921 Machinery and Equipment - governmental funds 1,989,619172,903($20,702)2,141,820 Road, curbs, gutters, sidewalks, medians and bridges126,387,6133,511,501129,899,114 Streetlights8,543,8948,543,894 Storm drain structure and mains32,003,5227,90032,011,422 Traffic signals6,137,8625,7486,143,610 Total capital assets being depreciated257,164,1494,248,588(20,702)261,392,035 Less accumulated depreciation for: Buildings(18,305,825)(1,516,831)(19,822,656) Improvements other than buildings(25,222,918)(1,623,660)(26,846,578) Machinery and Equipment - governmental funds (1,786,818)(78,075)20,702(1,844,191) Road, curbs, gutters, sidewalks, medians and bridges(93,014,652)(3,081,902)(96,096,554) Streetlights(6,606,605)(102,195)(6,708,800) Storm drain structure and mains(27,412,919)(800,088)(28,213,007) Traffic signals(4,810,008)(113,843)(4,923,851) Total accumulated depreciation(177,159,745)(7,316,594)20,702(184,455,637) Net governmental fund program Capital assets being depreciated80,004,404(3,068,006)76,936,398 Internal service fund capital assets Machinery and equipment6,304,898492,128(163,359) 6,633,667 Less Accumulated depreciation(4,891,973)(440,461)163,359 (5,169,075) Net internal service fund capital assets being depreciated1,412,92551,6671,464,592 Governmental activity capital assets, net$161,380,257($3,016,339)$158,363,918 70 181 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 NOTE 6 - CAPITAL ASSETS (Continued) A summary of changes in business-type activities capital assets is as follows: Balance atBalance at June 30, 2012AdditionsRetirementsJune 30, 2013 Business-type activities: Capital assets being depreciated: Buildings$337,118$337,118 Improvements other than buildings623,333$86,536709,869 Machinery and Equipment272,088($23,564)248,524 Total capital assets being depreciated1,232,53986,536(23,564)1,295,511 Less accumulated depreciation for: Buildings(64,319)(32,128)(96,447) Improvements other than buildings(129,548)(89,907)(219,455) Machinery and Equipment(213,985)(27,175)23,564(217,596) Total accumulated depreciation(407,852)(149,210)23,564(533,498) Total capital assets, being depreciated, net824,687(62,674)762,013 Business-type activity capital assets, net$824,687($62,674)$762,013 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: Governmental ActivitiesAmount Administration$237,838 Public and environment affairs15,328 Administrative Services 26,620 Parks and Recreation 126,722 Public Works 6,910,086 Internal Service funds 440,461 Total$7,757,055 Depreciation expense was charged to the business-type activities as follows: Resources Recovery$3,351 Blackberry Farms 11,642 Cupertino Sports Center 29,281 Recreation Program 104,936 Total$149,210 71 182 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 NOTE 7 - LONG-TERM DEBT (a) Cupertino Public Facilities Corporation Certificates of Participation OriginalBalanceBalance IssueJune 30,June 30,Current Amount2012Retirements2013Portion 2012 Refinancing Certificates of Participation 0.350-3.125%, due 07/01/2030 $43,940,000$43,940,000$1,920,000$42,020,000$2,040,000 Total long-term debt43,940,0001,920,00042,020,000$2,040,000 Less current portions(1,920,000)(2,040,000) Non-current portions$42,020,000$1,920,000$39,980,000 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 (ÐPrior COPSÑ). On May 9, 2012, $43,940,000 principal amount of 2012 Refinancing Certificates of Participation (2012 COPs) were issued to refund the 2002 COPs, to fund a reserve fund for the 2012 COPS, and pay costs incurred in connection with issuance. This current refunding was undertaken to reduce debt service payments over the next 18 years by $6,518,000, and resulted in an economic gain (difference between the present value of the debt service requirements on the old and new bonds discounted at the effective interest rate on the new debt and adjusted for any additional cash) of $6,637,000. The 2012 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. Total debt service payments remaining on the 2012 COPs is $53,898,337 payable through July 1, 2030. For the year-ended June 30, 2013, the bonds had $1,920,000 principal and $1,255,422 interest due. 72 183 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 NOTE 7 - LONG-TERM DEBT (Continued) (a) Cupertino Public Facilities Corporation Certificates of Participation (Continued) Annual debt service requirements for the 2012 COPs are shown below: Governmental Activities For the Year Ending June 30PrincipalInterest 2014$2,040,000$1,128,838 20152,055,0001,118,638 20162,090,0001,077,538 20172,135,0001,035,738 20182,180,000993,038 2019 - 202311,790,0004,060,638 2024 - 202813,675,0002,182,490 2029 - 20316,055,000281,419 Total$42,020,000$11,878,337 (b) 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 was paid off March 27, 2013. NOTE 8 - NET POSITION AND FUND BALANCES Net Position is measured on the full accrual basis while Fund Balance is measured on the modified accrual basis. Net Position Î The government-wide and proprietary fund financial statements utilize a net position presentation. Net position is categorized as follows: Net investment in capital assets Î This category groups all capital assets including, infrastructure, into one component of net position. 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. 73 184 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 NOTE 8 - NET POSITION AND FUND BALANCES (Continued) Restricted Î This category represents net position that has 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 Î This category represents net position of the City that do not meet the definition of Ðnet investment in capital assetsÑ or Ðrestricted.Ñ Fund Balances Î As prescribed by GASB Statement No. 54, governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. Fund balances for governmental funds are made up of the followings: Nonspendable Fund Balance Î includes amounts that are (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The Ðnot in spendable formÑ criterion includes items that are not expected to be converted to cash, for example: prepaid items, property held for resale and long- term notes receivable. Restricted Fund Balance Î includes amounts that can be spent only for the specific purposes stipulated by external resource providers, constitutionally or through enabling legislation. Restrictions may effectively be changed or lifted only with the consent of resource providers. Committed Fund Balance Î includes amounts that can only be used for the specific purposes determined by a formal action of the CityÓs highest level of decision-making authority, the City Council. Commitments may be changed or lifted only by the City taking the same formal action that imposed the constraint originally (for example: resolution and ordinance). The City has no amount in this category. Assigned Fund Balance Î comprises amounts intended to be used by the City for specific purposes that are neither restricted nor committed. Intent is expressed by the City Council or official to which the City Council has delegated the authority to assign amounts to be used for specific purposes. Through the adopted budget, the City Council establishes assigned fund balance policy levels and also sets the means and priority for the City Manager to fund these levels. Unassigned Fund Balance Î 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 circumstances when an expenditure may be made for which amounts are available in multiple fund balance classifications, the fund balance in General Fund will generally be used in the order of restricted, unassigned, and then assigned reserves. In other governmental funds, the order will generally be restricted and then assigned. 74 185 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 NOTE 8 - NET POSITION AND FUND BALANCES (Continued) The City Council has established reserve policy levels for various capital and contingency purposes. These balances are reported as part of the governmental fundsÓ assigned fund balance as follows: FundAmountPurpose General Fund: Economic uncertainty I$12,500,000For economic downturns and major unforeseen outlays. Economic uncertaint II1,400,000For shifts of funds to address state budet deficits. yg Economic fluctuation2,000,000For unexpected fluctuations in the econom. y PERS liabilit500,000For potential PERS liabilities. y Capital Proect Funds: j Capital Improvement reserve200,113Reserves set aside for future capital proects. j Infrastructure Reserve1,200,000Funds set aside for citwide infrastructure improvements. y Budeted proects3,823,867Resources for proect budets. gjjg Desinated proect75,924Desinated, but not budeted for specific proect. gjggj Total assigned fund balances$21,699,904 Fund balances for all major and nonmajor governmental funds as of June 30, 2013, were distributed as follows: Public Other Facilities Governmental GeneralCorporationFundsTotal Nonspendable: Loans receivable$920,593$920,593 Prepaid items36,23436,234 Subtotal956,827956,827 Restricted for: Public access television725,903725,903 Debt service$1,686,9741,686,974 Storm drain system$1,038,1691,038,169 Parks and open space1,669,1941,669,194 Environmental management320,309320,309 Streets and road projects699,155699,155 Housing programs2,211,4142,211,414 Subtotal725,9031,686,9745,938,2418,351,118 Assigned to: General government16,400,00016,400,000 Capital projects5,299,9045,299,904 Subtotal16,400,0005,299,90421,699,904 Unassigned 17,961,57917,961,579 Total$36,044,309$1,686,974$11,238,145$48,969,428 75 186 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 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, 2013, 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) Encumbrances The City uses encumbrances to control expenditure commitments for the year. Encumbrances represent commitments related to executor contracts not yet performed and purchase orders not yet filled. Commitments for such expenditure of monies are encumbered to reserve a portion of applicable appropriations. Encumbrances still open at year end are not accounted for as expenditures and liabilities, but as restricted, or unassigned fund balance. As of June 30, 2013, the City had the following encumbrances outstanding: Governmental Funds: General Fund$1,267,233 Other Governmental Funds2,076,301 Total encumbrances$3,343,534 (c) 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 CityÓs residents. The lease requires a minimum annual payment of $120,000 adjusted for CupertinoÓs portion of book circulation and increase of assessed valuation. This is an operating lease with a renewable option. At June 30, 2013, the cost and carrying value of the building which opened in October 2004, is $21,935,325 and $14,911,213 respectively, with $7,024,112 in accumulated depreciation. (d) Consulting Agreement for Sales Taxes 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 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. (e) Sales Tax Reallocation During fiscal year 2013, the California State Board of Equalization (Board) has notified the City of a proposed $10,550,721 reallocation of previously received sales taxes. Under the Board procedures, the City has appealed the proposed reallocation. 76 187 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 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 CityÓs participation in the Association of Bay Area Governments Pooled Liability Assurance Network (ABAG PLAN). The risk pool consists of 30 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 CityÓs claims experience and risk exposure. For the year ended June 30, 2013, the City paid ABAG PLAN premiums of $209,746. (b) WorkersÓ Compensation Liability The City belongs to the CSAC Excess Insurance Authority (EIA), a joint power authority which provides excess workersÓ compensation liability claims coverage above the CityÓs 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, 2013, the City paid premiums of $64,326 EIA. It is the CityÓs practice to obtain biennial actuarial studies for the self-insured workersÓ compensation liability. The claims liabilities included in the workersÓ 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 a 90% confidence level. Settlements have not exceeded insurance coverage in the past three years. 77 188 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 NOTE 10 - LIABILITIES UNDER SELF-INSURANCE AND RISK MANAGEMENT Changes in the balances of workersÓ compensation and general claims liabilities during the years ended June 30 are as follows: 20132012 Claims liability, beginning of year$1,495,978$1,651,953 Incurred claims and changes in estimate693,21957,022 Claim payments and credits(211,648)(212,997) Total claims liability, end of year1,977,5491,495,978 Less current portion(436,636)(333,694) Non-current portion$1,540,913$1,162,284 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 CityÓs 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 for 2012-13 based on the June 30, 2011 actuarial report. The City covered 75% of the employeesÓ required payroll contributions for fiscal year 2012-13.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. 78 189 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 NOTE 11 - DEFINED BENEFIT PENSION PLAN (Continued) (c) Annual Pension Cost The required contribution was determined as part of June 30, 2011 actuarial valuations using the entry age normal method. The actuarial value of CalPERS assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a fifteen-year period. The excess of the total actuarial accrued liability over the actuarial value of plan assets is called the unfunded actuarial accrued liability. Funding requirements are determined by adding the normal cost and an amortization of the unfunded liability as a level percentage of assumed future payrolls. Initial unfunded liabilities are amortized over a closed period that depends on the planÓs date of entry into CalPERS. Subsequent plan amendments are amortized as a level percentage of pay over a closed 20- year period. Gains and losses that occur in the operation of the plan are amortized over a 30-year rolling period, which results in an amortization of about 6% of unamortized gains or losses each year. Recent Annual Pension Costs, which equal the Annual Required Contribution to CALPERS, were as follows: Annual Pension Cost (APC) Contribution Fiscal Year 6/30/2011$2,088,898100% 6/30/2012 2,657,476100% 6/30/2013 2,880,647100% (d) Funded Status and Funding Progress The significant actuarial assumptions used to prepare the CityÓs June 30, 2011 actuarial valuation include the following: Valuation date:June 30, 2011 ARC:Determined for fiscal year 2013/2014 Actuarial Cost Method:Entry Age Normal Cost Method Amortization Method:Level percent of payroll Average Remaining Period22 Years as of Valuation Date Asset Valuation Method:15 Year Smoothed Market Actuarial Assumptions: Investment Rate of Return:7.50% (net of administrative expenses) Projected Salary Increase:3.30% to 14.20% depending on Age, Service and type of employment Inflation:2.75% Payroll Growth:3.00% Individual Salary Growth:A merit scale varying by duration of employment coupled with an assumed annual inflation growth of 2.75% and an annual production growth of 0.25% . 79 190 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 NOTE 11 - DEFINED BENEFIT PENSION PLAN (Continued) CalPERSÓ latest available actuarial data and funding progress are set forth below at their actuarial valuation date as of June 30, 2011. Actuarial accrued liability (AAL)$85,378,376 Actuarial value of plan assets(65,003,058) Unfunded actuarial accrued liability (UAAL)$20,375,318 Funded ratio (actuarial value of plan assets/AAL)76.1% Covered payroll (active plan members)$12,449,203 UAAL as a percentage of covered payroll163.7% Actuarial valuations of an on-going plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Amounts determined regarding the funded status of the plan and the annual required contribution of the City 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 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. (e) Public EmployeesÓ Pension Reform Act (PEPRA) Assembly Bill (AB) 340 pension reform created the Public EmployeesÓ Pension Reform Act (PEPRA) that implemented new benefit formulas and final compensation period, as well as new contribution requirements for new employees hired on or after January 1, 2013 who meet the definition of new member under PEPRA. The bill limits new members to a retirement package that provides for a 2% at 62, three year average. However, the City has negotiated a 2% at 60, three year average retirement benefit which would apply to any new Cupertino employee who had previously served with a CalPERS participating agency within the previous six month period. 80 191 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 NOTE 11 - DEFINED BENEFIT PENSION PLAN (Continued) (e) Public EmployeesÓ Pension Reform Act (PEPRA) (Continued) The Table below provides information on the benefit formula compensation information on the benefit formula, final compensation period and the employer and member contribution rates effective January 1, 2013 for the City employees under PEPRA. Benefit Formula 2.7% at Age 55 2% at Age 60 2% at Age 62 New employees to Cupertino hired after New Employees to 12/29/12 and in the Cupertino and Current employees CalPERS system or a CalPERS (or has not hired before reciprocity system less worked for 6months in Applies to 12/29/12 than 6 months ago CalPERS) Employer Contribution Rate as a percentage payroll 21.058% 21.058% 21.058% Member Contribution Rate as a percentage of payroll 8% 7% N/A Member Contribution Rate at 50% Normal Cost (12.5%) N/A until 2018 N/A until 2018 6.25% Final Compensation Period Highest year Highest 3 year average Highest 3 year average Benefit Vesting Schedule 5 years of service 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life Monthly for life Minimum retirement age 50 50 52 81 192 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 NOTE 12 - OTHER POST EMPLOYMENT BENEFITS (OPEB) (a) Plan Description Permanent employees who retire under the CityÓs 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 EmployeesÓ Medical and Hospital Care Act (PEMHCA). The plan offers employees and retirees three CalPERSÓ self-funded options, setup as insurance risk pools, or offers various third-party insured health plans. The planÓs 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 CityÓs contribution. Premiums and City contributions are based on the plan and coverage selected by actives and retirees, with the CityÓs potential contribution ranging from zero to $1,515 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. 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 is available at the CityÓs 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 employeeÓs dependent children at the time of retirement who are under 23 years old are eligible for medical benefits. In addition to extending the eligibility of dependents from age 23 to age 26 in accordance with the recent healthcare reform act, effective July 1, 2010, employees that retire or resign from service with the City of Cupertino and who are not eligible for retiree medical benefits can continue on the CityÓs medical and dental plans provided that they pay the premiums in full. 82 193 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 NOTE 12 - OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued) (b) Funding Policy OPEB Plan contributions are set by the adopted budget. The cost of the benefits provided by the OPEB Plan is currently being paid by the City on a fully pre-funded basis. The City has expressed intent to fully fund the annual required contribution (ARC) each year. Based on the actuarial valuation date of January 1, 2013, the annual required contribution rate is 15.40% of annual covered payroll. For the year ended June 30, 2013, the City contributed $1,400,000 to the PARS Trust and paid $786,661 in healthcare premium payments to pre-fund the OPEB Plan. (c) Annual OPEB Cost and Funded Status 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. 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 other significant actuarial assumptions used to prepare the CityÓs January 1, 2013 actuarial valuation include the following: Valuation date:January 1, 2013 Actuarial Cost Method:Entry Age Normal Amortization Method:Level percent of pay closed 16 year Amortization Period: Asset Valuation Method:Market value Actuarial Assumptions: Discount Rate6.00% Payroll Growth3.00% Ultimate Rate of Medical Inflation:5.00% The January 1, 2013 actuarial valuation also included implicit subsidy for the first time. Prior valuation as of January 1, 2011, did not include implicit subsidy. 83 194 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 NOTE 12 - OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued) (c) Annual OPEB Cost and Funded Status (Continued) The CityÓs annual OPEB cost and actual contributions to the OPEB Plan for the past three years are as follows: Percentage of Net OPEB OPEB Annual Actual AOC Obligation Fiscal YearCost (AOC)ContributionContributed(Asset) 6/30/2011$1,870,000 $2,688,723 144%($4,565,406) 6/30/20121,900,0001,622,54985%(4,287,955) 6/30/20132,214,7192,186,66199%(4,259,897) The CityÓs Net OPEB asset is recorded in the Retiree Medical Internal Service Fund and is calculated as of June 30, 2013 as follows: Annual required contribution $2,142,501 Interest on prior year net OPEB asset (257,277) Adjustment to annual required contribution 329,495 Annual OPEB cost 2,214,719 Insurance premiums paid on behalf of retirees (786,661) Contributions to trust (1,400,000) Decrease (increase) in net OPEB asset28,058 Net OPEB obligation (asset) June 30, 2012 (4,287,955) ($4,259,897) Net OPEB obligation (asset) June 30, 2013 The latest available actuarial data and funding progress are set forth below at their actuarial valuation date of January 1, 2013. Actuarial accrued liability (AAL) $24,791,457 Actuarial value of planned assets(12,835,681) Unfunded actuarial accrued liability (UAAL)$11,955,776 Funded Ratio (actuarial value of plan assets/AAL)51.8% Covered payroll (active plan members)$13,909,000 UAAL as a percentage of covered payroll86.0% NOTE 13 Î CONCENTRATION RISK The City has an economic dependency on revenues generated directly or indirectly from one company. For the year ended June 30, 2013, more than 10% of the City General FundÓs total revenues are derived from the company. The CityÓs operations would be adversely impacted if there are any significant declines in taxes received from the company. 84 195 CITY OF CUPERTINO Notes to Basic Financial Statements For the Year Ended June 30, 2013 NOTE 14 Î SUCCESSOR AGENCY TO REDEVELOPMENT AGENCY PRIVATE-PURPOSE TRUST FUND (SUCCESSOR AGENCY) The redevelopment agency dissolution acts, ABx1 26 and AB 1484 provide mechanisms for: a) state and county reviews of the activities of the former Redevelopment Agency and current Successor Agency (Agencies) to ultimately determine the amount available for distribution to other taxing entities; b) paying remaining obligations of the Agencies; c) management of remaining assets of the Agency; and d) effecting the eventual dissolution of the Successor Agency. The County Auditor-Controller (CAC) completed the agreed-upon procedure and the due diligence reviews of all funds of the Agencies and concluded that there was no amount available for distribution to other taxing entities. On September 6, 2012, the Oversight Board of the Cupertino Successor to the Former Redevelopment Agency approved the reviews and authorized the transmission of the reviews to the State Department of Finance (DOF) and to the CAC. The DOF accepted the review conclusions on January 11, 2013 and March 27, 2013. The DOF subsequently issued a Finding of Completion letter to the Successor Agency on April 26, 2013, signifying the completion of the reviews. Because the reviews identified no real property assets for the Successor Agency, the Agency will not issue a long-range property management plan. In addition, ABx1 26 and AB 1484 direct the State Controller Office (SCO) to review the activities of all redevelopment agencies to determine whether an asset transfer between an agency and any public agency occurred on or after January 1, 2011. If an asset transfer did occur and the public agency that received the asset is not contractually committed to a third party for the expenditure or encumbrance of the asset, the legislation purports to require the SCO to order the asset returned to the Successor Agency. On May 3, 2013, the SCO allowed the asset transfers that occurred during the review period. AB 1484 directs that the Successor Agency will dissolve within one year after the AgencyÓs final payment obligation as shown in the AgencyÓs final Recognized Obligation Payment Schedule (ROPS). With the final payment occurring in July 2012, as per the ROPS, the DOF acknowledged the AgencyÓs complete dissolution in an October 20, 2012 letter. As of July 1, 2013, the state Board of Equalization removes the AgencyÓs tax rate area, the CAC apportions its property taxes directly to other jurisdictions, and the Agency dissolves. 85 196 CITY OF CUPERTINO Required Supplementary Information (Unaudited) For the Year Ended June 30, 2012 Schedule of Funding Progress Î CalPERS Defined Benefit Retirement Miscellaneous Plan: Unfunded Entry AgeUnfundedAnnual(Overfunded) ValuatioAccrued Value of(Overfunded)FundedCoveredLiability as % n DateLiabilityAssetsLiabilityRatioPayrollof Payroll 6/30/2009$74,955,504$57,934,851$17,020,65377.3%$11,668,964145.9% 6/30/201079,939,98761,358,25918,581,72876.8%12,428,055149.5% 6/30/201185,378,37665,003,05820,375,31876.1%12,449,203163.7% Schedule of Funding Progress Î Defined Benefit Other Post Employment Benefits Plan: Unfunded ActuarialUnfundedActuarial ActuarialAccruedActuarialActuarialLiabilit as y ValuationLiabilityValue ofAccruedFundedCoveredPercentage of DateEntry AgeAssetsLiabilityRatioPayrollCovered Payroll 1/1/2009$18,069,366$18,069,3660.00%$11,892,000151.95% 1/1/201120,869,058$7,438,34113,430,71735.64%12,724,000105.55% 1/1/201324,791,45712,835,681 11,955,77651.77%13,909,00085.96% 86 197 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, budget- to-actual information in the basic financial statements is limited to the General Fund and major Special Revenue Funds. All other major governmental fund schedules with such information are therefore included as Supplemental Information. PUBLIC FACILITIES CORPORATION DEBT SERVICE FUND This fund accounts for the payments of principal and interest on certificates of participation issued to provide for the financing of the Civic Center, Library, Wilson Park, Memorial Park, and other City facilities. 87 198 CITY OF CUPERTINO PUBLIC FACILITIES CORPORATION DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2013 Variance Positive BudgetActual(Negative) REVENUES Use of money and property$2,299$2,299 Total Revenues2,2992,299 EXPENDITURES Debt service: Principal $1,920,0001,920,000 Interest and fiscal charges1,261,4221,256,9224,500 Total Expenditures3,181,4223,176,9224,500 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES(3,181,422)(3,174,623)6,799 OTHER FINANCING SOURCES (USES) Transfers in3,181,0003,181,000 Total Other Financing Sources (Uses)3,181,0003,181,000 NET CHANGE IN FUND BALANCE($422)6,377$6,799 BEGINNING FUND BALANCE1,680,597 ENDING FUND BALANCE$1,686,974 88 199 NONMAJOR GOVERNMENTAL FUNDS All funds not considered as major funds on the Fund Financial Statements are consolidated in one column entitled ÐOther Governmental Funds.Ñ These non-major funds are identified and included in this supplementary section and includes the CityÓs Special Revenue Funds and Capital Project Funds. 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 Improvement - 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 CityÓs General Plan. Revenues of this fund are restricted for the acquisition, improvement, expansion and implementation of the CityÓs parks and recreation facilities. Environmental Management / Clean Creeks - Accounts for all activities related to operating the non-point source pollution program. A parcel tax provides revenues. Transportation - Accounts for the City's gas tax, vehicle registration fees 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 programÓs rules. Capital Projects Funds account for the financial resources committed to the construction or improvement of major facilities. Capital Improvement Projects Fund Î Accounts for activities related to the acquisition or construction of major capital facilities. Stevens Creek Corridor Park Capital Projects Fund Î Accounts for the design and construction of the Stevens Creek Corridor Park projects. Don Burnett Bicycle-Pedestrian Bridge Î 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. 89 200 CITY OF CUPERTINO NON-MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEETS JUNE 30, 2013 SPECIAL REVENUE FUNDS StormEnvironmental DrainPark Management/Housing ImprovementDedicationClean CreeksTransportationDevelopment Assets Cash and investments $1,039,211$1,665,255$326,497$689,174$1,059,389 Accounts receivable72,833353,723 Interest receivable2,4583,9393801,6302,324 Loans receivable760,508 Property held for resale247,875 Total assets$1,041,669$1,669,194$326,877$763,637$2,423,819 Liabilities Accounts payable and accruals$3,500$1,394$39,357$82,629 Accrued payroll and benefits5,17425,125174 Total liabilities3,5006,56864,48282,803 Deferred Inflows of Resources Unavailable revenue - loans129,602 Total deferred inflows of resources129,602 Fund balances Restricted1,038,169$1,669,194320,309699,1552,211,414 Assigned Total fund balances1,038,1691,669,194320,309699,1552,211,414 Total liabilities, deferred inflows of resources and fund balances$1,041,669$1,669,194$326,877$763,637$2,423,819 90 201 CAPITAL PROJECT FUNDS Don BurnettTotal Capital Stevens CreekBicycleNonmajor ImprovementCorridorPedestrianGovernmental ProjectsParkBridgeFunds $3,724,160$1,663,284$13,85010,180,820 22,466449,022 10,731 760,508 247,875 $3,746,626$1,663,284$13,850$11,648,956 $117,701$4,802$249,383 1,35331,826 117,7016,155281,209 129,602 129,602 5,938,241 3,628,9251,657,129$13,8505,299,904 3,628,9251,657,12913,85011,238,145 $3,746,626$1,663,284$13,850$11,648,956 91 202 CITY OF CUPERTINO NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2013 SPECIAL REVENUE FUNDS StormEnvironmental DrainPark Management/Housing ImprovementDedicationClean CreeksTransportationDevelopment REVENUES Taxes$178,771$2,484,900$374,937 Use of money and property2,7675,127$579$1,57210,703 Intergovernmental 402,4172,016,047 Charges for services10,300367,04642,570 Other revenue Total Revenues181,5382,500,327367,6252,060,189788,057 EXPENDITURES Current: Community development633,421 Public works7,900376,9451,101,605 Capital outlay3,486,328 Total Expenditures7,900376,9454,587,933633,421 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES173,6382,500,327(9,320)(2,527,744)154,636 OTHER FINANCING SOURCES (USES) Transfers in1,900,000 Transfers (out)(1,450,000) Total Other Financing Sources (Uses)(1,450,000)1,900,000 NET CHANGE IN FUND BALANCES173,6381,050,327(9,320)(627,744)154,636 BEGINNING FUND BALANCES 864,531618,867329,6291,326,8992,056,778 ENDING FUND BALANCES $1,038,169$1,669,194$320,309$699,155$2,211,414 92 203 CAPITAL PROJECT FUNDS Don BurnettTotal CapitalStevens CreekBicycleNonmajor ImprovementCorridorPedestrianGovernmental ProjectsParkBridgeFunds $3,038,608 20,748 $40,4072,458,871 419,916 $1,7351,735 40,4071,7355,939,878 633,421 1,486,450 794,362$298,649 15,3004,594,639 794,362298,64915,3006,714,510 (753,955)(298,649)(13,565)(774,632) 2,232,5861,125,1215,257,707 (625,121)(12,586)(2,087,707) 1,607,4651,112,5353,170,000 853,510813,886(13,565)2,395,368 2,775,415843,24327,4158,842,777 $3,628,925$1,657,129$13,850$11,238,145 93 204 CITY OF CUPERTINO BUDGETED NON-MAJOR FUNDS COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2013 SPECIAL REVENUE FUNDS STORM DRAIN IMPROVEMENTPARK DEDICATION VarianceVariance PositivePositive BudgetActual(Negative)BudgetActual(Negative) REVENUES Taxes$105,000$178,771$73,771$150,000$2,484,900$2,334,900 Use of money and property5,0002,767(2,233)10,0005,127(4,873) Intergovernmental Charges for services10,300 Total Revenues110,000181,53871,538160,0002,500,3272,330,027 EXPENDITURES Current: Community development Public works7,900(7,900) Capital outlay959,671959,671 Total Expenditures959,6717,900951,771 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES(849,671)173,6381,023,309160,0002,500,3272,340,327 OTHER FINANCING SOURCES (USES) Transfers in Transfers (out)(1,450,000)(1,450,000) Total Other Financing Sources (Uses)(1,450,000)(1,450,000) NET CHANGE IN FUND BALANCES($849,671)173,638$1,023,309($1,290,000)1,050,327$2,340,327 BEGINNING FUND BALANCES 864,531618,867 ENDING FUND BALANCES $1,038,169$1,669,194 94 205 SPECIAL REVENUE FUNDS ENVIRONMENTAL MANAGEMENT/ CLEAN CREEKSTRANSPORTATIONHOUSING DEVELOPMENT VarianceVarianceVariance PositivePositivePositive BudgetActual(Negative)BudgetActual(Negative)BudgetActual(Negative) $50,000$374,937$324,937 $1,000$579($421)$10,000$1,572($8,428)75,00010,703(64,297) 2,272,0002,016,047(255,953)310,000402,41792,417 365,000367,0462,04642,57042,570 366,000367,6251,6252,282,0002,060,189(221,811)435,000788,057353,057 719,797633,42186,376 538,587376,945161,6421,089,3221,101,605(12,283) 4,010,0233,486,328523,695 538,587376,945161,6425,099,3454,587,933511,412719,797633,42186,376 (172,587)(9,320)163,267(2,817,345)(2,527,744)289,601(284,797)154,636439,433 1,900,0001,900,000 1,900,0001,900,000 ($172,587)(9,320)$163,267($917,345)(627,744)$289,601($284,797)154,636$439,433 329,6291,326,8992,056,778 $320,309$699,155$2,211,414 95 206 This Page Left Intentionally Blank 96 207 INTERNAL SERVICE FUNDS Internal Service Funds are used to finance and account for special activities and services provided by one department or program 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 or 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 Position. However, internal service funds are still presented separately in the Fund financial statements. Information Technology - Accounts for the activities related to the maintenance and replacement of the CityÓs technology infrastructure. WorkersÓ Compensation - Accounts for the activities in support of the self-insured workersÓ compensation program. Equipment Revolving - Accounts for the activities related to the maintenance and replacement of the City's vehicle fleet and other equipment. Compensated Absences and Long-Term Disability - Accounts for accrued leave payouts and the CityÓs long term disability insurance program. Retiree Medical Î Contains funds set-aside for other post employment retirement benefits. 97 208 CITY OF CUPERTINO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET POSITION JUNE 30, 2013 Compensated Absences and Information Workers'EquipmentLong-Term Retiree TechnologyCompensationRevolvingDisabilityMedicalTotal ASSETS Current Assets: Cash and investments $3,678,643$2,127,109$2,263,715$13,313$8,082,780 Interest receivable8,7015,0145,3543119,100 Prepaid items66,13966,139 Total current assets3,753,4832,132,1232,269,06913,3448,168,019 Noncurrent Assets: Net OPEB assets $4,259,8974,259,897 Capital assets, depreciable net of accumulated depreciation542,911921,6811,464,592 Total noncurrent assets542,911921,6814,259,8975,724,489 Total Assets$4,296,394$2,132,123$3,190,750$13,344$4,259,897$13,892,508 LIABILITIES Current Liabilities: Accounts payable and accruals$138,930$6,120$11,894$6,233$10,000173,177 Accrued payroll and benefits18,50990110,67430,084 Advance from other funds560,564560,564 Compensated absences19,6922,16921,861 Claims payable436,636436,636 Total current liabilities177,131443,65724,7376,233570,5641,222,322 Non-current Liabilities: Compensated absences26,7588,68835,446 Claims payable1,440,9131,440,913 Total non-current liabilities26,7581,440,9138,6881,476,359 Total Liabilities203,8891,884,57033,4256,233570,5642,698,681 NET POSITION Net investment in capital assets542,911921,6811,464,592 Unrestricte d3,549,594247,5532,235,6447,111$3,689,3339,729,235 Total Net Position $4,092,505$247,553$3,157,325$7,111$3,689,333$11,193,827 98 209 CITY OF CUPERTINO INTERNAL SERVICE FUNDS COMBINING STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2013 Compensated Absences and Information Workers'EquipmentLong-Term Retiree TechnologyCompensationRevolvingDisabilityMedicalTotal OPERATING REVENUES Charges for services$1,716,300$423,100$1,194,000$66,053$3,399,453 Other7,3527,352 Total Operating Revenues1,716,300423,1001,201,35266,0533,406,805 OPERATING EXPENSES Salaries and related expenses559,34126,122363,227$2,214,7193,163,409 Materials and supplies311,132264,875576,007 Contractual services343,5362,250138,28410,000494,070 Insurance claims and premium687,342246,730934,072 Depreciation193,649246,812440,461 Total Operating Expenses1,407,658715,7141,013,198246,7302,224,7195,608,019 Operating Income (Loss)308,642(292,614)188,154(180,677)(2,224,719)(2,201,214) NONOPERATING REVENUES (EXPENSES) Interest income10,1875,7996,1122056,67928,982 Total Nonoperating Revenues (Expenses)10,1875,7996,1122056,67928,982 Income (Loss) Before Transfers318,829(286,815)194,266(180,472)(2,218,040)(2,172,232) Transfers in200,00044,50375,0001,400,0001,719,503 Change in Net Position518,829(286,815)238,769(105,472)(818,040)(452,729) BEGINNING NET POSITION3,573,676534,3682,918,556112,5834,507,37311,646,556 ENDING NET POSITION$4,092,505$247,553$3,157,325$7,111$3,689,333$11,193,827 99 210 CITY OF CUPERTINO INTERNAL SERVICE FUNDS COMBINING STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2013 Compensated Absences and Information Workers'Long-TermRetiree TechnologyCompensationEquipmentDisabilityMedicalTotal CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers$1,716,300$426,970$1,201,352$72,286$3,416,908 Cash payments to suppliers for goods and services(574,635)(434,782)(1,009,417) Cash payments to employees(551,009)(26,098)(358,811)(31,490)($2,186,661)(3,154,069) Cash payment for judgment and claims(305,771)(246,730)(552,501) Cash Flows from (used for) Operating Activities590,65695,101407,759(205,934)(2,186,661)(1,299,079) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Advance repayment from other funds504,497504,497 Advance from other funds560,564560,564 Transfers in200,00044,50375,0001,400,0001,719,503 Cash Flows (used for) Noncapital Financing Activities200,000549,00075,0001,960,5642,784,564 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets(265,151)(226,977)(492,128) Cash Flows from Capital and Related Financing Activities(265,151)(226,977)(492,128) CASH FLOWS FROM INVESTING ACTIVITIES Interest received4,0182,4061,9901786,85515,447 Cash Flows from Investing Activities4,0182,4061,9901786,85515,447 Net Cash Flows529,52397,507731,772(130,756)(219,242)1,008,804 Cash and investments at beginning of year3,149,1202,029,6021,531,943144,069219,2427,073,976 $3,678,643 $2,127,109 $2,263,715 $13,313 $8,082,780 Cash and investments at end of year Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss)$308,642($292,614)$188,154($180,677)($2,224,719)($2,201,214) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation193,649246,812440,461 Change in assets and liabilities: Prepaid expenses(35,674)(35,674) Net OPEB asset28,05828,058 Accounts payable and accruals115,7076,120(31,623)6,23310,000106,437 Accrued payroll and benefits(376)24636284 Compensated absences8,7083,780(31,490)(19,002) Claims Payable381,571381,571 $407,759 Cash Flows from Operating Activities$590,656$95,101($205,934)($2,186,661)($1,299,079) 100 211 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. Special district assessments held by the City, acting as an agent for bond debt service payments, comprise City Agency funds. The City is not liable for the debt payments. 101 212 CITY OF CUPERTINO Statement of Chanes in Assets and Liabilities g All Aenc Funds gy For the ear ended June 30, 2013 y BalanceBalance June 30, 2012AdditionsDeletionsJune 30, 2013 All Aenc Funds gy Assets Cash and investments$81,403$81,403 Liabilities Deposits$81,403$81,403 102 213 STATISTICAL SECTION 103 214 NOTES 104 215 STATISTICAL SECTION This part of the CityÓs 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 CityÓs 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 CityÓs financial performance and wellbeing have changed over time: 1.Net Position by Component 2.Changes in Net Position 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 CityÓs most significant own- source revenue, property tax. 1.Assessed and Estimated Actual Value of Taxable Property 2.Direct and Overlapping Property Tax Rates 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 CityÓs current levels of outstanding debt and the CityÓs ability to issue additional debt in the future: 1.Ratios of Outstanding Debt by Type 2.Computation of Direct and Overlapping Debt 3.Computation of Legal Bonded Debt Margin 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 CityÓs 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 CityÓs financial report relates to the services the City provides and the activities it performs: 1.Full-Time Equivalent City Government Employees by Function 2.Operating Indicators by Function/Program 3.Capital Assets Statistics by Function/Program Other Property Tax and Sale Statistics Sources Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual Financial Reports for the relevant year. 105 216 This Page Left Intentionally Blank 106 217 762,01311,627,492117,105,931 8,351,11847,558,701172,253,73710,865,4798,351,11858,424,180 116,343,918183,881,229 2013 $ $ 824,68710,882,018118,264,944 7,572,86538,117,361163,130,48310,057,3317,572,86548,174,692 117,440,257174,012,501 2012 $ $ 777,5219,779,08710,556,608 7,721,96233,185,903161,632,070121,501,7267,721,96242,964,990 120,724,205172,188,678 2011 $ $ 788,2139,063,6169,851,829 8,692,17531,087,861160,185,326121,193,5038,692,17540,151,477 120,405,290170,037,155 2010 $ $ 136,1278,949,1429,085,2696,661,074 6,661,07433,290,050143,293,029103,478,03242,239,192 103,341,905152,378,298 2009 $ $ 7,849,1477,933,27385,258,1249,926,770 9,926,77043,242,639138,343,40784,126 85,173,99851,091,786146,276,680 Net Position/Assets by Component (1) 2008 (Accrual basis of accounting) Fiscal Year Ended June 30 $ CITY OF CUPERTINO $ Last Ten Fiscal Years (Unaudited) 467,4166,977,4367,444,85280,810,4699,265,565 9,265,56539,243,717128,852,335 80,343,05346,221,153136,297,187 2007 $ $ 497,6816,291,4396,789,12083,562,5608,329,671 8,329,67126,916,679118,311,229 83,064,87933,208,118125,100,349 2006 $ $ 578,9626,028,9896,607,95187,108,9797,291,925 7,291,92521,202,795115,024,737 86,530,01727,231,784121,632,688 2005 $ (1) Represents net assets thru June 30, 2011 and net position after that. $ 645,2907,314,0687,959,358Invested in capital assets, net of related debt86,071,0437,416,930 Invested in capital assets, net of related debt85,425,7537,416,93018,541,954111,384,637 25,856,022119,343,995 2004 $ $ Invested in capital assets, net of related debt Total governmental activities net Total business-type activities net Total primary government net Business-Type Activities Governmental Activities Primary Government position/assets (1) position/assets (1)position/assets (1) Unrestricted UnrestrictedUnrestricted Restricted Restricted 107 218 (Continued) 22,149,06349,965,33219,274,130 2,367,2559,274,5361,595,9824,171,4404,473,8614,676,2731,256,9221,764,993463,3362,011,4832,025,4166,265,22856,230,5605,676637,595970,2926,765,564593,5012,752,493719,88012,445,0011,882,517386,7532,150, 1392,409,7206,829,129 2013 ---- $ 1,837,0728,776,6331,743,1514,309,5034,577,2434,922,23720,387,5081,837,65548,391,0021,566,229460,6981,897,6111,985,6185,910,15654,301,158696,4981,166,3234,919,216503,2252,508,917780,76110,581,3941,727 ,783411,0561,965,6842,325,7056,430,22817,011,622 6,454 2012 --- - $ 20,224,66248,662,73417,218,509 1,860,4518,434,8851,625,8763,993,6544,528,9685,961,7742,032,4641,801,599457,0651,716,7411,753,1565,728,56154,391,29515,801797,7571,020,1594,149,620549,0652,351,2871,972,95110,856,6401,931,076447,7971 ,722,7002,260,2966,361,869 2011 ---- $ 1,911,6658,385,4761,653,0344,080,1344,444,5364,351,97519,320,1512,076,26446,223,2352,018,147457,1691,478,1431,854,6485,808,10752,031,34221,873811,676930,7733,310,355556,6362,042,5575,511,35913,185,22 92,104,299568,7701,578,3302,249,1916,507,48519,692,714 6,895 2010 -- - $ 18,104,649 1,769,5008,804,1951,624,2104,001,7384,206,3436,177,8792,118,71446,807,2281,998,184495,8451,594,3251,739,8925,828,2462,240869,295801,2803,586,993157,3114,014,0364,759,4852,100,704596,9441,732,2822,364 ,03714,4716,808,43820,999,078 52,635,47414,190,640 2009 --- $ 1,636,2847,679,4671,216,1643,923,2173,845,8734,059,74016,569,3102,183,40341,113,4582,056,061450,2061,547,4021,853,2175,906,88647,020,34410,711799,350847,4243,551,478135,9422,392,9875,696,12413,434,01 62,254,790640,7711,605,5452,493,21414,3097,008,62920,442,645 2008 - - - Change in Net Position/Assets (4)$ (Accrual basis of accounting) Fiscal Year Ended June 30 CITY OF CUPERTINO Last Ten Fiscal Years 16,230,27438,963,17720,855,523 1,675,4437,148,1871,186,9293,874,0032,517,7254,090,9592,239,6572,122,805975,0641,623,8391,830,401771,5707,323,67946,286,8563,6181,031,736193,7524,768,026200,9693,048,5123,496,09512,742,7082,254,4161, 101,5641,655,1692,396,720690,60314,3438,112,815 (Unaudited) - 2007 $ 1,354,5436,577,199914,0244,208,3892,359,9664,541,96516,384,0262,262,91338,603,0252,101,1981,302,8551,448,0481,729,194588,8187,170,11345,773,13823,201722,164240,0745,286,336201,2503,403,762522,95010,3 99,7372,203,1271,155,9861,419,6722,331,409704,390135,5397,950,12318,349,860 2006 - $ 14,585,23234,352,32515,738,479 1,280,3396,179,326824,3173,750,1742,173,9363,269,4752,289,5262,927,0601,341,7121,452,9571,689,436438,4407,849,60542,201,930694,952163,4624,164,792286,280593,6572,164,9078,068,0502,395,2821,218,9581,3 85,8372,167,705473,78728,8607,670,429 2005 -- $ 1,430,5236,090,038710,7543,923,3772,234,5092,678,10915,546,4612,317,83734,931,6081,793,0831,353,3621,352,5091,590,302493,2446,582,50041,514,108838,45716,650148,3371,903,277325,9592,496,6893,612,1022, 398,8191,301,0921,184,8601,910,599456,21184,660 Total government activities program revenue9,341,471Total business-type activities program revenue7,336,241Total primary government program revenue16,677,712 2004 - $ Total governmental activities expense Total business-type activities expense Total primary government expense Public and environmental affairs Operating grants and contributionsOperating grants and contributions Capital grants and contributions Interest on long-term debt Community developmentCommunity development Administrative servicesAdministrative services Cupertino sports centerCupertino sports center Recreation programsRecreation programs Governmental activities: Governmental activities: Business-type activities: Business-type activities: Recreation servicesRecreation services Charges for services:Charges for services: Resource recoveryResource recovery Law enforcementLaw enforcement Blackberry farmBlackberry farm AdministrationAdministration Program Revenues Senior centerSenior center Public worksPublic works Expenses 108 219 (37,520,331) (36,956,430) (150,000) 4,772,35518,721,1933,768,5042,994,526 563,901 8,793,1102,848,9504,561,21930,256176,782126,69046,643,58531,573150,000181,57346,825,1589,123,254745,4749,868,728 2013 - -- $ (37,809,608) (37,289,536) (207,000)(194,662) 520,072 7,479,1324,487,412202,79317,326,4603,112,9343,264,8962,808,1361,377,211207,00039,308,02112,33839,113,3591,498,413325,410 29,06461,09682,6841,823,823 ) 7 2012 9 - 7 , 0 $ 3 1 , 1 ( (37,806,094) (37,172,786)(15) 4,404,7951,251,77714,539,2432,536,5013,227,942 633,308 7,296,9702,841,3441,491,316259,289259,2171,144,4291539,252,83871,48671,47139,324,3091,446,744704,7792,151,523 2011 -- $ (33,038,006) (32,338,628)(70,628) 699,378 7,488,7014,420,9121,322,9259,930,5302,142,1373,271,4522,597,9301,211,899166,440295,059119,39332,967,37867,18267,18233,034,560766,560695,932 2010 -- - - $ (32,616,588) (31,636,396) 4,299,9021,211,12814,139,1902,140,2743,205,073 980,192 7,491,9652,618,1251,317,767171,621889,82381,342171,804171,8044,949,6221,151,9966,101,618 37,566,21037,738,014 2009 ---- $ (27,679,442) (26,577,699) (992,150)(613,322) 1,101,743 6,941,9103,894,502220,26713,154,7492,711,5903,175,7242,547,4391,709,892266,7891,451,973103,529992,15037,170,514378,82836,557,1929,491,072488,421 9,979,493 2008 -- Change in Net Position/Assets (4) $ (Accrual basis of accounting) Fiscal Year Ended June 30 CITY OF CUPERTINO Last Ten Fiscal Years (26,220,469) (25,431,333)(500,000)(133,404) 3,652,509187,27611,252,3412,511,1843,011,755 789,136 6,529,7722,537,0182,661,449364,2611,752,177291,4231,510,410500,00036,761,575366,59636,628,17110,541,106655,73211,196,838 (Unaudited) 2007 - $ (2) The 2006 state take-away of sales taxes, property taxes, and vehicle license fees is reported in this category. (4) Represents changes in net assets thru fiscal year ended June 30, 2011 and changes in net position after that. (28,203,288) (27,423,278) (300,039)(800,000)(598,841) 780,010 4,728,8113,569,300185,67610,671,6422,054,9042,809,5872,353,5752,534,393669,820189,262800,00031,489,780201,15930,890,9393,286,492181,169 3,467,661 9 2006 4 - 8 , 2 $ 2 2 , (1) Replaced the reduced motor vehicle license fee (an intergovernmental revenue) in 2005. 1 (26,284,275) (179,176) (26,463,451) (1,388,000)(1,172,231)(1,351,407) 9,224,6611,790,9172,705,888 4,296,94015,9742,217,3133,146,516978,059684,952545,1551,388,00029,924,375215,76928,752,1443,640,1002,288,693 (3) Asset transfer to Successor to Redevelopment Agency fiduciary trust in 2012. 0 2005 0 -- 0 , 0 $ 3 9 , 2 Governmental activities(25,590,137)(56,228) Total primary government net expense(24,836,396)(175,000)(1,874,646)(1,177,133) Business-type activities753,741Property taxes3,944,45976,5708,654,1851,632,5142,636,2642,194,6511,248,4372,460,137526,560166,714175,00023,715,49195,12723,659,263697,513 2004 - - - $ ) 1 ( e e f e l Total business-type activities Total Government Activities c i Change in Net Position/Assets (4) Total primary governmentTotal primary government General Revenues and Transfers h e v Transient occupancy tax rIncremental property tax o t Extraordinary items (3) o Governmental activities: Business-type activities: Intergovernmental (2) mBusiness-type activities Net (Expense) Revenue: Investment earnings Investment earnings fGovernment activities Gain on sale of land o uUtility user tax e Franchise tax i lMiscellaneous Other taxes Sales taxes n i x Transfers Transfers a t Taxes: y t r e p o r P 109 220 The City implemented GASB Statement No. 54 under which governmental fund balances are reported as nonspendable, restricted, assigned and unassigned compared to reserved and unreserved. 2,308,2905,465,4235,113,0203,788,810 13,622,82815,931,11814,367,25330,298,371 2010 $ $ 2,325,28322,196,8574,180,4833,692,187968,0778,840,74731,037,604 19,871,574 2009 $ $ 7,631,866 2,668,91416,997,56919,666,48311,240,8517,270,33126,143,04845,809,531 2008 $ $ (472,405) 2,711,58623,634,87426,346,4608,555,0426,844,63214,927,26941,273,729 2007 $ $ Fund Balances of Governmental Funds (Modified accrual basis of accounting) Fiscal Year Ended June 30 (1,208,341) 23,866,56826,797,61436,764,177 2,931,0464,925,9006,249,0049,966,563956,827725,90316,400,00017,961,57936,044,3097,625,2155,299,90412,925,11948,969,428 CITY OF CUPERTINO Last Ten Fiscal Years 20062013 (Unaudited) $ $ $ $ 18,313,84622,178,8152,701,0673,618,8141,663,0337,982,91430,161,729695,56417,729,29726,097,67810,523,37436,621,052 3,864,9691,003,4386,669,3796,877,3013,646,073 - 20052012 $ $ $ $ 15,757,82132,287,377 3,897,27012,632,28616,529,5569,784,6453,736,4462,236,7301,023,950663,25414,739,3943,380,27919,806,877615,0006,314,1064,303,82211,232,92831,039,805 (1) 2011 2004 $ $ $ $ Total All Other Governmental Funds Total All Other Governmental Funds All Other Governmental FundsAll Other Governmental Funds Total Governmental Funds Total Governmental Funds Special Revenue Funds Unreserved, reported in: Capital Project Funds Total General FundTotal General Fund NonspendableNonspendable General FundGeneral Fund Unassigned Unreserved RestrictedRestricted ReservedReservedAssignedAssigned (1) 110 221 (10,308,210)(1,869,503) $ 48,382,570 1,920,00012,348,37655.6%7.6% 744,1962,841,4073,502,6174,515,066560,41757,82860,604,1012,005,1768,783,8851,486,9103,772,7144,083,8224,395,60113,996,5164,684,6761,256,92214,217,8798,438,707 --- 2013 2 2 - 2 , 6 8 $ $ 3 , 6 4 (36,904,216)(7,692,426) $ 40,265,944661,6022,678,8882,900,9363,273,946661,899264,3021,533,0708,445,9171,659,8564,103,9824,319,9834,762,22912,528,1943,523,0471,837,6554216,484,42643,616,2605,581,247 50,707,517 - ) 2012 0397 0339 8787 ,,,, 7130 $ 9123 8681 ,,,, 4741 ( 8 44 (7,883,751)(1,143,819) $ 37,582,2998.7% 792,0353,543,6412,901,9442,311,216695,66673,88147,900,6821,528,0708,434,8851,497,2633,695,0764,117,4775,693,54112,234,7265,281,9271,500,0002,032,4641,885,2535,684,483741,434 2011 99 24 --- 44 ,, $ 55 15 00 ,, 61 4 (10,135,417)(2,347,000)(739,233) 30,994,5838.9%9.1% 774,2197,539,8352,583,1311,701,157736,239689,9411,469,0048,384,3101,487,2653,733,4144,003,7644,125,73911,961,2184,710,3601,460,0002,076,26443,411,3381,607,7677,788,417 45,019,105 2010 ---- $ (7,758,925)(2,723,000) (12,048,927)(14,771,927) $ 36,395,950 61,931,930 1,300,5086,896,3942,740,4631,707,533761,32080,83549,883,0031,336,9218,133,1681,486,4433,634,0433,789,2605,841,42811,914,58422,262,3691,415,0002,118,7145,035,925 2009 - - - - $ $ Changes in Fund Balances of Governmental Funds (20,705,750)(1,569,585) $ 34,589,1392,490,4448,285,2802,656,0171,728,099722,08795,3881,351,2737,456,6611,169,2473,797,1563,745,2443,931,05511,137,9358,334,0931,355,0002,183,4036,105,38719,136,1654,535,80212.1%11.7%10.6%10.6 %9.8% 50,566,454 - (Modified accrual basis of accounting) 2008 7 6 --- 0 , Fiscal Year Ended June 30 1 $ 6 (1) Noncapital expenditures is total expenditures less capital assets added each year to statement of net position/assets. CITY OF CUPERTINO Last Ten Fiscal Years 4 , 4 4 (Unaudited) (3,455,658) (14,777,500) $ 28,903,993 2,169,9778,200,5193,325,8442,062,067926,310154,23545,742,9451,287,1016,975,5171,121,4373,715,9942,403,2963,969,83710,477,7274,292,1691,295,0002,239,6577,965,2101,663,8429,658,0004,509,552 - 2007 5 3 -- 7 , 7 $ 7 7 , 7 3 (7,784,084) $ 25,616,5531,607,8375,896,1673,614,9532,143,729629,586245,1761,236,3906,499,911853,4844,103,4972,302,9954,467,65510,386,0552,771,5021,270,0002,262,9133,599,5998,364,0843,002,8496,602,448 39,754,001 2006 29 04 -- - 48 ,, 42 $ 52 14 ,, 62 3 (3,093,648)(6,936,763)(2,125,648) 23,614,623 1,119,3995,567,2662,896,0001,568,935559,7911,792,79537,118,8091,162,0966,144,695758,3143,671,3032,121,3663,156,9089,637,31410,025,9351,245,0002,289,52640,212,4577,904,763968,000 2005 ---- $ (16,043,726)(4,760,307)(16,038,726) 21,004,40520,246,23749,429,867 940,9637,236,9551,540,760930,050723,7481,009,2601,222,5815,950,849686,7983,758,8062,141,4312,563,2429,322,0861,220,0002,317,8374,765,3075,000 33,386,141 2004 - - - - $ $ Payment to refunded debt escrow agent Excess (deficiency) of revenues over Assets transferred to Successor Agencies Debt service as a percentage of Proceeds from sale of capital assets Public and environmental affairs Total other financing sources noncapital expenditures (1) Other Financing Sources (Uses) Change in fund balances Interest and fiscal charges Community development Use of money and property Administrative services (under) expenditures Total expenditures Principal repayment Recreation services Licenses and permits Fines and forfeitures Charges for services Law enforcement Total revenues Intergovernmental Extraordinary Item Administration Public works Bond proceeds Capital outlay Debt service:Transfers out Expenditures Transfers in Current: Revenues Taxes Other 111 222 ЋЉЊЌ ЋЉЊЋ tƩƚƦĻƩƷǤ ЋЉЊЊ ƓƭĻĭǒƩĻķ ЋЉЊЉ ЋЉЉВ tƩƚƦĻƩƷǤ ЋЉЉБ {ĻĭǒƩĻķ ЋЉЉА ЋЉЉЏ ЋЉЉЎ ЋЉЉЍ υЊЍυЊЋυЊЉυБυЏυЍυЋυЉ .źƌƌźƚƓƭ 112 223 0.00840.0055 1.3864 1.00000.00510.00240.03880.03170.01290.02870.03900.03680.08190.00690.04520.056520.017260.016640.043740.057420.058700.062630.065100.065070.062380.06204 2004200520062007200820092010201120122013 - 10 85 21 00 .. 0 0 1.04760 07480975164443 2 0 04289291836476 5 5 -- 0 4 00032124380406 00000000000000 3 5 ............... 0 00 1 1 0 0 0 0 0 0 0 0 0 0 0 . 0 Basic Levy1.00001.00001.00001.00001.00001.00001.00001.00000.00240.00240.00240.00240.00240.00240.00240.00240.03880.03880.03880.03880.03880.03880.03880.03880.03570.03600.03500.02890.03370.03060.03120.0 3080.01100.01290.01190.03460.01130.01230.03220.03260.02490.02680.02600.02430.02410.03390.03060.03650.04170.04090.03710.03510.03450.03300.03520.03770.02630.03440.08610.07970.02710.07430.07010.05190.00 870.00920.00780.00720.00710.00610.00740.00720.03850.03610.03560.03510.03630.03630.03880.0437 Total Direct & Overlapping Rates1.22801.23751.29471.31161.24001.28381.32581.3179 0.022340.022340.043430.05 7250.057060.056610.056410.056441.048601.04840 599 923 --- 011 000 ... 000 290 --- 224 111 00 0 ... 000 1.04730 92 23 ---- 10 00 .. 00 Direct and Overlapping Property Tax Rates 1.049901.050401.049001.048401.04830 98 21 (Per $100 Assessed Valuation)---- 11 00 .. CITY OF CUPERTINO Last Ten Fiscal Years 00 (Unaudited) 96 2 2 ---- 11 00 .. 00 0 4 ----- 1 0 . 0 ------ ----- - West Valley College Bond 2004 (Bab) County Bond 2008 Hospital Facility Santa Clara Valley Water District County Library Retirement Levy Source: HdL, Coren & Cone Los Gatos/Saratoga High 1998 Foothill/DeAnza College 1999 Cupertino Elementary 2012 West Valley College 2012West Valley College 2004 El Camino Hospital 2003 County Retirement Levy City's Share of 1% Levy Cupertino Elementary Redevelopment Rate Saratoga Elementary Santa Clara Unified Total Direct Rate Fremont High 113 224 Assessed Total AssessedAssessedTotal Assessed Percentage of Valuation - - -- - - - 14.61% 2.61%2.08%1.27%4.57%0.81%0.73%0.69%0.66%0.62%0.57% 240,237,868191,785,568116,791,511421,721,55274,895,54067,399,71863,710,59261,108,80656,778,20852,910,9791,347,340,342 - - - - - - - Valuation 2004 $ $ Current Year and Nine Years Ago Percentage of Principal Property Taxpayers Valuation - - - - - - - 15.32% CITY OF CUPERTINO 6.38%699,845,7004.79%0.93%0.58%0.50%0.50%0.45%0.43%0.38%0.38% (Unaudited) 84,858,03472,927,53372,696,59266,133,21063,058,71656,008,58155,947,615 933,312,667136,245,0082,241,033,656 ------- Valuation 2013 $ $ Sumitomo Bank Leasing and Financing Cupertino City Center Buildings Irvine Apartment Commons LPSource: HdL, Coren & Cone Teachers Insurance & Annuity Ridgeview Court Associates Vallco Shopping Mall LLC Taxpayer Tandem Computers Inc. Villa Serra Apartments Campus Holdings Inc. IAC At Cupertino LLC ECI Two Results LLC Cupertino Village LP Rocktino Fee LLC Hewlett Packard 500 Forbes LLC Apple Inc. RWC LLC Total 114 225 115 226 FiscalCertificatesActual Market ValuePersonal Yearof Participationof Taxable PropertyPer CapitaIncome of Estimated% of 2.26% 2.01% 1.82% 1.60% 1.44% 1.36% 1.36% 1.70% 1.56% 1.41% 0.58%1,033 0.55%995 0.50%963 0.45%929 0.41%886 0.36%853 0.34%815 0.33%755 0.32%744 0.29%705 Ratios of Outstanding Debt by Type CITY OF CUPERTINO Last Ten Fiscal Years Percentage (Unaudited) 200453,550,000200552,305,000200651,035,000200749,740,000200848,385,000200946,970,000201045,510,000201144,010,000201243,940,000201342,020,000 Source: City of Cupertino 116 227 CITY OF CUPERTINO Direct and Overlapping Bonded Debt June 30, 2013 (Unaudited) 2012-13 Assessed Valuation $ 14,621,780,341 % Total DebtCityÓs Share of Overlapping Tax and Assessment Debt: 6/30/2013Applicable (1)Debt 6/30/13 Santa Clara County$ 805,800,0004.738%38,178,804$ Foothill-DeAnza Community College District 621,564,28813.387%83,208,811 West Valley Community College District 308,533,0730.736%2,270,803 Santa Clara Unified School District 428,710,0001.918%8,222,658 Fremont Union High School District 299,550,10829.611%88,699,782 Cupertino Union School District 164,416,97349.251%80,977,003 El Camino Hospital District 141,310,0001.281%1,810,181 Santa Clara Valley Water District Benefit Assessment 123,100,0004.738%5,832,478 Total Overlapping Tax and Assessment Debt 2,892,984,442 309,200,521 Direct and Overlapping General Fund Debt Overlapping Debt: Santa Clara County General Fund Obligations 819,956,8404.738%38,849,555$ Santa Clara County Pension Obligations 378,994,8224.738%17,956,775 Santa Clara County Board of Education Certificates of Participation 10,400,0004.738%492,752 Foothill-De Anza Community College District Certificates of Participation 17,225,00013.387%2,305,911 West Valley-Mission Community College District General Fund Obligations 65,435,0000.736%481,602 Santa Clara Unified School District Certificates of Participation 13,430,0001.918%257,587 Santa Clara County Vector Control District Certificates of Participation 3,455,0004.738%163,698 Midpeninsula Regional Open Space Park District Certificates of Participation 135,649,7177.565%10,261,901 Subtotal Overlapping General Fund Debt 1,444,546,379 70,769,780 City of Cupertino Certificates of Participation 42,020,000 100.000%42,020,000 Direct Debt: Total Direct and Overlapping General Fund Debt1,486,566,379 112,789,780 Totals by Category: Total Direct Debt 42,020,000 42,020,000 4,337,530,821 379,970,302 Total Overlapping Debt (2) Combined Total Debt$ 4,379,550,821$ 421,990,302 Ratios to 2012-13 Assessed Valuation: 2.11% Total Overlapping Tax and Assessment Debt Total Direct Debt ($43,940,000)0.29% Combined Total Debt2.89% 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: MuniServices 117 228 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 (42,020,000) Note: The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision 3,470,536,823520,580,52342,020,000520,580,523 13,882,147,291 - 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 $ Total NetLegal applicable to the -------- - - FiscalDebtDebt ApplicableDebtlimit as a % of Total net debt YearLimitto LimitMargindebt limit 345,745,500357,256,552376,159,752408,373,114431,735,623473,910,827486,725,480488,171,639495,734,039520,580,523 margin was enacted by the State of California for local governments located within the state. Legal Debt Margin Information CITY OF CUPERTINO Last Ten Fiscal Years (Unaudited) -------- - - Secured property assessed value, net of exempt real property Less: Certificates of Participation not subject to debt limit Adjusted valuation - 25% of assessed valuation 2004345,745,5002005357,745,5002006376,159,7582007408,373,1142008431,735,6232009473,910,8272010486,725,4802011488,171,639495,734,039520,580,523 Debt limit - 15% of adjusted valuation Amount of Debt Subject to Limit: Amount of debt subject to limit Source: City of Cupertino Total Bonded Debt Legal Debt Margin 20122013 Debt Limit: 118 229 Ratio of General Year Population Value Bonded DebtPer Capita Assessed Value Fiscal AssessedGeneralBonded DebtBonded Debt to - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Ratio of General Bonded Debt CITY OF CUPERTINO Last Ten Fiscal Years (Unaudited) 9,219,879,996 9,526,841,379 10,292,965,413 11,176,513,115 11,930,514,178 13,172,425,287 13,545,013,769 13,495,632,397 13,748,274,686 14,621,780,341 200451,858200552,590200653,012200753,549200854,584200955,045201055,838201158,302201259,022201359,220 Sources: HdL, Coren & Cone City of Cupertino 119 230 120 231 121 232 Community Development Public & Environmental Administrative Services Council/Commissions Parks & Recreation Administration Public Works Affairs 2004200520062007200820092010201120122013 806040200 180160140120100 122 233 95% Within 21 Days100% Within 21 Days100% Within 21 Days99% Within 21 Days99% Within 21 Days 91% Within 5 Days96% Within 5 Days97% Within 5 Days93% Within 5 Days92% Within 5 Days100% Within 10 Days100% Within 10 Days100% Within 10 Days100% Within 10 Days100% Within 10 Day 696 Curb Miles696 Curb Miles696 Curb Miles696 Curb Miles696 Curb Miles696 Curb Miles696 Curb Miles575 Curb Miles575 Curb Miles 24 Hrs of Call24 Hrs of Call24 Hrs of Call24 Hrs of Call24 Hrs of Call24 Hrs of Call24 Hrs of Call24 Hrs of Call24 Hrs of Call s Priority Three-Respond within 20 minutes18.92 Min.16.74 Min.15.82 Min.15.73 Min.9.40 Min.9.77 Min.9.79 Min.10.62 Min.10.29 Min. 5.37 Min.4.94 Min.4.94 Min.5.83 Min.3.88 Min.3.95 Min.4.49 Min.4.84 Min.3.76 Min.8.61 Min.8.09 Min.7.15 Min.7.95 Min.5.94 Min.5.90 Min.5.76 Min.6.44 Min.5.98 Min. $120,000 Accounts Payable Processing5 Days5 Days5 Days5 Days5 Days5 Days5 Days7 Days7 DaysBusiness License Renewal Certificates3 Days3 Days3 Days3 Days3 Days3 Days3 Days3 Days3 Days 1,8522,456 2013 5641 4 51 $133,000 1,7762,470 2012 576 3 01 $91,000 1,5982,387 2011 492 2 11 $71,000 1,3852,287 2010 447 89 $80,000 1,7002,243 2009 400 Operating Indicators by Function/Program ----2 CITY OF CUPERTINOLast Nine Fiscal Years Within 21 DaysWithin 21 DaysWithin 21 DaysWithin 21 DaysWithin 10 DaysWithin 10 DaysWithin 10 DaysWithin 10 Days Within 5 DaysWithin 5 DaysWithin 5 DaysWithin 5 Days (Unaudited) 1,4192,110 2008 444 ---- 1,3361,935 2007 510 1,0213,100 2006 550 2005 (a) 2,000 441916 Quinlan Community Center Rental Revenue (b) Local Resident Rentals at Blackberry Farm (b) Priority Two-Respond within 9 minutes Priority One-Respond within 5 minutes (a) First year of available information Discretionary Land Use Applications Public Notice of Upcoming Projects Law Enforcement Sheriff Response Approved Building Plan Sets Senior Center Memberships (b) New operating indicator Sports Center Memberships Teen Center Memberships Community Development Source: City of Cupertino Administrative Services Street Maintenance Recreation Services Function/Program Street Sweeping Public Works 123 234 124 235 125 236 126 237 127 238 128 239 COMMUNITY PROFILE 129 240 History 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. 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 Concerned by unplanned development, higher taxes, and piecemeal annexation to adjacent rancher Norman Nathanson, the Cupertino Monta Vista Improvement Association, and the Fact Finding Committee played important roles in this movement. 130 241 Incorporation was approved in the September 27, 1955 election. Cupertino officially became City on October 10, 1955. th 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. 2013 Community Economic Profile Cupertino, with a population of 59,620 and city limits stretching across 13 square miles, is work. Economic health is an essential component to maintaining a balanced city, 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 so that our success as a partnership is a direct reflection of our success as a community. The cornerstone of this partnership is a cooperative and responsive government that fosters business and residential prosperity and strengthens working relationships among all sectors of the community. Our economic development strategies are tailored to address the specific needs of Cupertino. Because this is a mature, and 90% built-out city, the focus is on business retention and revitalization. Business recruitment is site specific and targeted to industries that enhance, rather than draw from, our existing business base. Cupertino is home to many well-known high-tech companies, and offers a dynamic and exciting business climate. Apple Inc., CRC Health Corporation, Durect Corporation, and Seagate Technology are headquartered in the city. DeAnza College, one of the largest single- campus community colleges in the country, is another major employer. 131 242 mutually beneficial partnerships with local companies. The City strives to retain and attract local companies through active outreach and an entitlement process that is responsive and customer oriented. The Vallco Shopping Mall 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, skate full-size ice rink, workout at the Bay Club Silicon Valley, and bowl at the chic and upscale BowlMor Lanes. They can begin or top off the evening with fine dining at the critically-acclaimed s Steakhouse or enjoy more casual cuisine at TGI Dynasty Seafood Restaurant, Tatami, and the international food court. The city features many other stores, including Target, TJ Maxx and Home Goods, and Whole Foods, and over 160 restaurants to serve the local workforce and residents. Five hotels occupy the city: Hilton Garden Inn, Marriott Courtyard, Cupertino Inn and the Cypress Hotel, operated by the Kimpton Group. The fifth hotel, The Aloft Cupertino Hotel, operated by Starwood Hotels & Resorts, opened in 2012. 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. 2013 City Profile 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 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 132 243 interested residents may apply for the positions. Residents are kept informed about city services and programs through the , a monthly newsletter; The , Cupertino SceneCity Channel ernment access cable TV channel Housing Tax Rates and Government Services The average sales price of an existing single-Residential, commercial, and industrial family home is $1,220,500 as of 2013. property is appraised at full market value, as it existed on March 1, 1975, with increases Community Health Care Facilities limited to a maximum of 2% annually. Cupertino is served by the Cupertino Medical Property created or sold since March 1, 1975 Clinic, NovaCare Occupational Health will bear full cash value as of the time created Services. Nearby hospitals include Kaiser or sold, plus the 2% annual increase. The basic Permanente Medical Center in Santa Clara, El tax rate is $1.00 per $100 full cash value plus Camino Hospital in Mountain View, any tax levied to cover bonded indebtedness ommunity for county, city, school, or other taxing Hospital of Los Gatos, Stanford Hospital in agencies. Assessed valuations and tax rates Palo Alto, and the Saratoga Walk-in Clinic in are published annually after July 1. Saratoga. Retail Sales Tax: Cupertino 1%, State General Utilities Fund 3.9375%, State and Local Revenue Fund Pacific Gas and Electric, 800-1.0625%, State Local Public Safety 0.5%, State Gas & Electric 743-5000. Local Revenue 0.5%, County Transportation AT&T, residential service, 800-894-0.25%, Local District (Valley Transportation Phone 2355; business service, 800-750-2355. Authority) 1.125%. Grand Total = 8.7500%. Comcast, 800- 945-2288. Assessed Valuation: (Secured and Unsecured) Cable Recology, 408-725-Cupertino: $16,204,836,709 (7/1/13) Solid Waste & Recycling 0420. County: $334,580,873,994 (7/1/13) San Jose Water Company, 408-279- Water Transportation 7900 and California Water, 650-917-0152. Cupertino Sanitary District, Rail CalTrain service to Gilroy and San Sewer Service 408-253-7071 Francisco, with 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. 133 244 Community Statistics Facts and Figures Population in City Limits 59,620 Median Household Income$131,517 Median Age39 Registered Voters25,934 Democrats9,507 Republicans5,479 American Independent367 Other297 No Political Party designated10,284 Top 40 Sales Tax Producers Second Quarter 2013 (In Alphabetical Order) A2Z Development Elephant Bar Scandinavian Designs Advantest Granite Rock Sears Hewlett-Packard Shane Diamond Jewelers Apple Computers Corporation JC Penney Shell Service Station Argonaut Window & Door Jo-Ann Fabrics Staples Benihana of Tokyo Joy Luck Place Target Restaurant and Brewhouse TJ Maxx California Dental Arts Marina Foods Union 76 Service Station Chevron Service Stations US Gas Service Station CVS Pharmacy Mirapath Valero Service Station Cypress Hotel Park Place Outback Steakhouse Verizon Wireless Restaurant DeAnza College Campus Center Rohde & Schwarz Whole Foods Dynasty Restaurant Rotten Robbie Service Station Insight Direct Ranch 99 Market 134 245 Demographic Information Community and Recreation Services 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. 135 246 The Quinlan Community Center Civic Center and Library Community Center is a 27,000 square foot The complex has a 6,000 square foot facility that provides a variety of Community Hall, plaza with fountain, trees recreational opportunities. and seating areas. City Council meetings are held in the Community Hall as well as Most prominent is the Cupertino Room - a Planning Commission and Parks and multi-purpose room that can accommodate Recreation Commission sessions. 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 Cupertino Sports Center County Library system. For more The Sports Center is a great place to meet information call friends. The facility features 17 tennis 408-446-1677. courts, complete locker room facilities, and a fully equipped fitness center featuring free McClellan Ranch weights, Cybex, and cardio equipment. A Park teen center is also included as well as a A horse ranch child watch center. The center is located at -acre park the corner of Stevens Creek Boulevard and has the appearance of a working ranch. Stelling Road. Telephone: 408-777-3160. Preserved on the property are the original ranch house, milk barn, livestock barn, and Cupertino Senior Center The Senior Center provides a welcome and Shop, originally located at DeAnza and friendly environment for adults over age 50. Stevens Creek, and the old water tower There is a full calendar of opportunities for from the Parish Ranch, now the site of learning, volunteering, and enjoying life. Memorial Park. Rolling Hills 4-H Club There are exercise classes, a computer lab members raise rabbits, chickens, sheep, and classes, language instruction including swine, and cattle and a Junior Nature English as a second language, and cultural Museum, which features small live animal and special interest classes. The center also exhibits and dispenses information about coordinates trips and socials. bird, animal, and plant species of the area. McClellan Ranch is located at 22221 The Senior Center is located at 21251 McClellan Road. Telephone: 408-777-3120. Stevens Creek Boulevard and is open Monday through Friday 8 a.m. to 5 p.m. Telephone: 408-777-3150. Education acknowledged to be models of quality instruction. 136 247 Cupertino Union School District serves 18,000 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 The Fremont Union High School District serves 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. Many high schools in the district exceed their established achievement targets for the State 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 be worn during their graduation ceremonies. Building on its tradition of excellence and Cupertino is served by two local innovation, DeAnza College challenges students institutions of higher education: DeAnza of every background to College and the University of San develop their intellect, Francisco. In addition to these schools, character and abilities; to achieve their educational Stanford University, Santa Clara goals; and to serve their University and San Jose State community in a diverse and University . changing world. DeAnza College offers a wide range of quality programs and services to meet the work force development needs of our region. The college prepares current and future employees of Silicon Valley in traditional classroom settings and through customized training arranged by employers. Several DeAnza programs encourage economic development through college credit courses, short-term programs, services for manufacturers, technical assistance, and/or recruitment and retention services. 137 248 Things to do and See 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. 3 p.m. Monday through Thursday. Telephone: 408-864- 5464. Fujitsu Planetarium Stargazers have a Cupertino facility catering to their interests, the Fujitsu Planetarium on the DeAnza College campus. It hosts a variety of planetarium shows and events, including educational programs for school groups and family astronomy evenings. For more information, visit the website at http://planetarium.deanza.edu 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 The Cupertino Historical Society was founded in 1966 by a group of 177 longtime residents and is Their museum, located at the Quinlan Community Center, 10185 N. Stelling Road, attempts to develop and expand the learning opportunities that it offers to the ethnically diverse community of the City of Cupertino. Telephone: 408-973-1495. t Residents and visitors can visit the two s on Friday from 9:00 a.m. to 1:00 p.m. at the Vallco Shopping Mall parking lot behind JCPenney, and every Sunday from 9:00 a.m. to 1:00 p.m. at the Cupertino Oaks Shopping Center, 21275 Stevens Creek Blvd. 249 California History Center The California History Center and Foundation is located on the DeAnza College campus. The center has published 37 volumes on California Library Archives boasts a large collection of books, a pamphlet file, oral history tapes, videotapes and a couple thousand student research papers. 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. 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 CITY OF CUPERTINO FINAL ACCOUNTING ISSUES MEMO JUNE 30, 2013 Item: Information System Review Background -We conducted an Information Systems Review with our audit which encompassed the financial information system and the network environment that houses it. We expanded our work in previous years beyond simply looking at financial information systems as a result of greater risks of unauthorized access caused by overall industry growth of web-based commerce and internet based financial systems. Internal controls that are present in the overall network environment have become more important and relevant to understanding the internal controls over the financial system. We believe Information System controls must be continuously improved and enhanced to stay ahead of the ever increasing sophistication of hackers and criminals. Currently, there are no Information Technology standards to which local governments are required to conform. Indeed there are a wide variety of informal guidelines and suggested controls from many different organizations which local governments can use to implement appropriate controls to ensure adequate security over information technology. Our Information Technology staff have reviewed these informal guidelines and concluded that the certification and accreditation framework developed by the National Institute of Standards and Technology (NIST) for the Federal Information Security Management Act (FISMA) is the most appropriate for local 1 government. NIST and FISMA represent the minimum security requirements for federal government agencies information systems. NIST recommends these for state and local governments. Our procedures included performing an external network scan based on NIST criteria and in determining that internal control provides for: Internet access defenses including hacker prevention, detection and deterrent systems Security of data from physical or network access Adequately protecting data from unauthorized internal access Reasonable measures to ensure continuation of service Information systems risk management Results -While the results of our work did not indicate material weaknesses, we noted a few areas which could be improved. A summary of these recommendations whichwe believe are “best practices” are as follows: Payment Card Industry Compliance The City is notin compliance with the Payment Card Industry Data Security Standard (PCI- DSS). Any organization that processes credit cards is required to comply with PCI-DSS, even if the processing is outsourced. Failure to meet compliance requirements results in higher transaction fees and liability if a security breach is found. Because the City accepts credit cards as a form of payment, the City must be compliant with the applicable controls. General Information Systems Controls Page 1 273 CITY OF CUPERTINO FINAL ACCOUNTING ISSUES MEMO JUNE 30, 2013 Our administrative and technical control review is based on the National Institute of Standards and Technology (NIST) control catalog NIST SP 800-53 rev. 3 for a moderate system as defined by NIST SP 800-60. We reviewed the compliance of the City’s information systems with the NIST information security standards based on a moderate risk system. Although there is no required IT standard for local governments, NIST encourages state, local and tribal governments to consider the use of these guidelines, as appropriate. In adopting NIST standards the local government demonstrates due diligence in designing and implementing appropriate controls around its information systems. The table below is a summary of the controls. The controls are divided into two groups, one group for general IT controls (IT) and another group for controls specific to the financial applications (FS). Each control is in one of five states: “In place”,“Partially in place”,“Not in place”,“Risk accepted”, or “N/A”. The numbers below are the total number of controls in each state. Ideally all controls would be marked as “In place”, “N/A”, or “Risk accepted”. Controls that are “Partially in place” or “Not in place” should be remediated as soon as possible. The greater the number of controls that are in place, the lower the control risk is for your IT control environment. StateITFSTotal In place13022152 Partially in place13316 Not in place707 Risk accepted303 N/A505 Total15825183 Page 2 274 CITY OF CUPERTINO DEVELOPMENT IMPACT FEE REPORT FOR FISCAL YEAR ENDING JUNE 30, 2013 1. Below Market Rate Housing Mitigation fee (A) Description and Amount: An in-lieu fee collected on new residential, office/industrial, hotel, and retail development in order to address impact on affordable housing. Fee was $2.81 per sq ft on residential, $5.33 per sq ft on office/industrial, hotel, and retail, and $2.67/sq ft in the Planned Industrial Zone for the reported year. (B) Beginning of year balance527,349 (C) Plus: Fees collected 370,823 (D) Plus: Interest earned1,140 (E) Less: Expenditures Staff and administration(40,827) Legal and professional services(27,602) Housing placement services(100,225) Rental mediation services(30,000) Property taxes & maintenance(1,612) Subtotal Expenditures(200,266) (F) End of year balance699,046 Includes a $247,875 condominium held as a City asset pending its resale as an affordable housing unit. 2. Park Dedication fee (A) Description: Fee collected on new residential developments for the acquisition, improvement, and maintenance of parks and recreation facilities. (B) Beginning of year balance596,341 (C) Plus: Fees collected 2,484,900 (D) Plus: Interest earned5,020 (E) Less: Expenditures Environmental education classroom project funding(800,000) Stevens Creek Corridor Park Phase 2 project funding(650,000) Subtotal Expenditures(1,450,000) (F) End of year balance1,636,261 Page 1 of 4 275 CITY OF CUPERTINO DEVELOPMENT IMPACT FEE REPORT FOR FISCAL YEAR ENDING JUNE 30, 2013 3. N.Stelling/I-280 bridge pedestrian lighting & upgrades (A) Description: Developer contribution for City to enhance pedestrian walkway along the east or west side of the North Stelling Road bridge that crosses over Interstate 280, which is located south of the project sites. (B) Beginning of year balance - From Villa Serra 25,000 From Las Palmas 25,000 Subtotal beginning of year balance50,000 (C) Plus: Amount collected during year---- (D) Less: Expenditures of Budgeted Project 420-9559---- Project to be initiated upon the accumulation of sufficient developer contributions or the addition of supplementary City funding (E) End of year balance 50,000 4. DeAnza/McClellan/Pacifica signal modification (A) Description: Developer contribution to reconfigure the intersection which may include relocating two signal mast arms and poles, related electrical, concrete, and striping work, and the closing of the Pacifica Street driveway to the gas station. Project estimated to cost $350,000. (B) Beginning of year balance - from Cupertino Town Center145,700 (C) Plus: Amount collected during year---- (D) Less: Expenditures of Budgeted Project 420-9557---- Project to be initiated upon the accumulation of sufficient developer contributions or the addition of supplementary City funding (E) End of year balance 145,700 Page 2 of 4 276 CITY OF CUPERTINO DEVELOPMENT IMPACT FEE REPORT FOR FISCAL YEAR ENDING JUNE 30, 2013 5. Monument gateway signs (A) Description: Developer contribution to upgrade or replace three existing center island gateway signs, that anounce one's entry into Cupertino, at 1) Stevens Creek Blvd near Tantau Ave; 2) DeAnza Blvd near I-280 overcrossing; 3) DeAnza Blvd near Bollinger Road; and install a new center island gateway sign at Stevens Creek Blvd near the Oaks shopping center. Project estimated to cost $400,000. (B) Beginning of year balance- From Pinn Brothers25,000 From Sobrato organization10,000 Subtotal beginning of year balance35,000 (C) Plus: Amount collected during year---- (D) Less: Expenditures Budgeted Project 270-9457 ---- Project to be initiated upon the accumulation of sufficient developer contributions or the addition of supplementary City funding (E) End of year balance 35,000 6. DeAnza/Homestead southbound right turn lane upgrade (A) Description: Developer contribution to study, design, and construct right-of-way improvements at the intersection of DeAnza Blvd and Homestead Road. Project estimated to cost $333,000. (B) Beginning of year balance - from Sunnyvale Town Center75,924 (C) Plus: Amount collected during year---- (D) Less: Expenditures ---- Project to be initiated upon the accumulation of sufficient developer contributions or the addition of supplementary City funding (E) End of year balance 75,924 Page 3 of 4 277 CITY OF CUPERTINO DEVELOPMENT IMPACT FEE REPORT FOR FISCAL YEAR ENDING JUNE 30, 2013 7. Stevens Creek Blvd. and Bandley Drive signal and median improvements (A) Description: Developer contribution to design and construct improvements to upgrade the traffic signal at Bandley Drive and Stevens Creek Blvd. (should the need arise due to impacts from the development) and the traffic median on Stevens Creek Blvd., east of Bandley Drive and west of DeAnza Blvd. (B) Beginning of year balance - from Cupertino Crossroads50,000 (C) Plus: Amount collected during year---- (D) Less: Expenditures ---- Project to be initiated upon the accumulation of sufficient developer contributions or the addition of supplementary City funding (E) End of year balance 50,000 8. Traffic calming along Rodrigues Ave. and Pacifica Dr. (A) Description: Developer contribution to design and construct traffic calming measures along Rodrigues Ave. and Pacifica Drive to include measures such as curb bulb-outs and/or other traffic mitigation measures. (B) Beginning of year balance from Civic Park G. LLC24,000 (C) Plus: Amount collected during year---- (D) Less: Expenditures ---- Project to be continued upon the accumulation of sufficient developer contributions or the addition of supplementary City funding (E) End of year balance 24,000 Page 4 of 4 278 ADMINISTRATIVE SERVICES DEPARTMENT CITY HALL 10 10300 TORRE AVENUE CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3227 www.cupertino.org CITYCOUNCILSTAFFREPORT Meeting:November19,2013 Subject AuthorizeanewpositioncategoryinthesalaryscheduleforUnrepresentedEmployees. RecommendedAction AmendtheUnrepresentedEmployeesalaryschedule. Description TheCitycurrentlyhasidentifiedonemodificationtotheUnrepresentedEmployee salaryschedulewhichsetsforthallpositionsestablishedforthatgroup. Discussion Periodically,theCityreviewsstaffinglevelswithintheorganizationtoensurethatthe resourcesareinplacefordesiredservicelevels,toidentifyareasofenhancementof serviceandtoaccommodatestaffingrequirementsinconjunctionwithnewprograms orreorganizations.StaffperformedsuchareviewinconjunctionwiththeCityPlanner position. InthepasttheCityPlannerpositionwastitledAssistantDirectorofCommunity Development.IntheearlyŴżżųȟ¹basedondepartmentrequirementsandpersonnel qualifications,thepositiontitlewaschangedtoCityPlanner.Recentchangestothe organizationalstructurewithintheCommunityDevelopmentDepartmenthave promptedthedepartmenttolookattheexistingversusdesiredjobdutiesforthis position.CreatinganAssistantDirectorofCommunityDevelopmentpositionwill allowthedepartmenttomovesupervisionofthePlanningandCodeEnforcement functionsunderthispositionandallowforsuccessionplanninginthedepartment. ThecurrentCityPlanneriswillingandabletotakeonadditionalassignmentsthat wouldreflectjustificationforthetitlechange.Noadditionalfulltimeequivalent positions(FTEs)arebeingrequestedaspartofthischange.Inthefuture,thisposition 279 canbefilledateithertheAssistantDirectororCityPlannerlevelbasedonpersonnel qualificationsandorganizationalneedsofthedepartment. FiscalImpact NofiscalimpactisanticipatedforFiscalYear13/14duetodepartmentsalarysavings. Anadditional3.1%increaseinsalarywillbereflectedintheFY14/15budgetforthis newposition.Themethodologyusedtoarriveatthecompensationfortheproposed positionisconsistentwiththatusedintheemployeecompensationsurveydonethis yearinpreparationforthecurrentMemorandumsofAgreement(MOUs). ___________________________________ Preparedby:CarolAtwood,DirectorofAdministrativeServices ApprovedforSubmissionby:DavidBrandt,CityManager Attachments: AResolutionAmendingtheUnrepresentedEmployeeCompensationProgram BRedlineAmendingtheUnrepresentedEmployeeCompensationProgram 280 RESOLUTION 13-______ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING RESOLUTION NO. 13-061 FOR UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM WHEREAS, the City Council desires to amend the Unrepresented Employees’ Compensation Program. NOW, THEREFORE, BE IT RESOLVED that the Unrepresented Compensation Program be amended which is incorporated in this resolution by this reference and attached as Exhibit B. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino TH this 19 day of November 2013 by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: ________________ _____________________ Grace Schmidt, City Clerk Orrin Mahoney, Mayor, City of Cupertino 281 ExhibitB 282 283 284 285 ADMINISTRATIVE SERVICES DEPARTMENT CITY HALL 10 10300 TORRE AVENUE CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3220 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: November 19, 2013 Subject Amend the July 1, 2013 through June 30, 2016 terms and conditions of employment for the Cupertino City Employees’ Association (CEA) and Operating Engineers Local Union No. 3, AFL-CIO (OE3). Recommended Action Adopt Resolutions to amend the July 1, 2013 through June 30, 2016 terms and conditions of employment for the Cupertino City Employees’ Association (CEA) and Operating Engineers Local Union No. 3, AFL-CIO (OE3). Description The City currently allows employees to voluntarily contribute specific leave bank hours to a Catastrophic Leave account. This account can be used, once an employee has exhausted all their own leave balances, to help them with financial assistance when facing a serious or life- threatening illness. Current limitations for assistance are: (1) the employee must be the one facing the illness and (2) they must be benefited employees who have passed initial probation with the City. The policy is set forth in the OE3 and CEA Memorandum of Understandings (MOU) and the Administrative Rules and Regulations of the Personnel Code under the section titles “Catastrophic Leave”. The recommendation before you tonight is to extend this benefit to all employees, whether or not they have passed probation, as new employees do not have the same opportunity to build up leave balances. It also permits employees to contribute to the Catastrophic Leave account as long as they do not reduce their own balances to less than 80 hours. We have met with both OE3 and CEA representatives and they agree to this proposal. The following resolutions are recommended to implement the above amendment to the terms and conditions of employment: a)Amending a Memorandum of Understanding (MOU) between the City of Cupertino and the Cupertino City Employees’ Association, Resolution No. 13-; b)Amending a Memorandum of Understanding between the City of Cupertino and Operating Engineers Local Union No. 3, AFL-CIO, Resolution No. 13-; and 286 c)Directing the City Manager to amend the Administrative Rules and Regulations of the Personnel Code to reflect any changes to the Memorandum of Understandings, Resolution No. 13- . Fiscal Impact There is no fiscal impact to the City as a result of this change. _____________________________________ Prepared by: Carol Atwood, Director of Administrative Services & Parks and Recreation Approved for Submission by: David Brandt, City Manager Attachments: A- Draft Resolution amending MOU with the Cupertino City Employees’ Association B- Draft Redline amending Section 18: Catastrophic Leave, of the Memorandum of Understanding between the City of Cupertino and the Cupertino City Employee’s Association C- Draft Resolution amending MOU with the Operating Engineers Local Union No. 3, AFL-CIO D- Draft Redline amending Section 14.12: Catastrophic Leave, of the Memorandum of Understanding between City of Cupertino and Operating Engineers Local Union No. 3, AFL- CIO E- Draft Resolution directing the City Manager to Amend the Administrative Rules and Regulations of the Personnel Code F- Draft Redline amending Administrative Rules and Regulations of the Personnel Code G/HR/Negotiations/staff report/11-8-2013 Groups.doc 287 RESOLUTION NO. 13-_____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF CUPERTINO AND THE CUPERTINO CITY EMPLOYEES’ ASSOCIATION WHEREAS, meetings have been held over proposals concerning other terms and conditions of employment between representatives of the City and of the Cupertino City Employees’ Association, the recognized representative of the Miscellaneous Employees Unit; and WHEREAS, the agreement mutually obtained through these meetings has been recorded in an amendment to the Memorandum of Understanding, Section 18: Catastrophic Leave, to be signed by both parties, which section of the memorandum has been submitted to the City Council for approval. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cupertino does hereby adopt the amended section 18 to the Memorandum of Understanding for the period of July 1, 2013 to June 30, 2016, between the City of Cupertino and the Cupertino City Employees’ Association and attached as Attachment B. PASSED AND ADOPTED at a regular meeting of the City Council of the City of th Cupertino this19 day of November 2013 by the following vote: VOTE MEMBERS OF THE CITY COUNCIL AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: ______________________________ ______________________________ Grace Schmidt, City Clerk Orrin Mahoney, Mayor, City of Cupertino 288 289 290 RESOLUTION NO. 13-_____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF CUPERTINO AND OPERATING ENGINEERS LOCAL NO. 3 UNION, AFL-CIO WHEREAS, meetings have been held over proposals concerning other terms and conditions of employment between representatives of the City of Cupertino and of Operating Engineers Local No. 3 Union, AFL-CIO, the recognized representative of the Public Works Employees Unit; and WHEREAS, the agreement mutually obtained through these meetings has been recorded in an amendment to the Memorandum of Understanding, Section 14.12: Catastrophic Leave, to be signed by both parties, which section of the memorandum has been submitted to the City Council for approval. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cupertino does hereby adopt the amended section 14.12 to the Memorandum of Understanding for the period of July 1, 2013 to June 30, 2016 between the City of Cupertino and Operating Engineers Local No. 3 Union, AFL-CIO attached as Attachment D. PASSED AND ADOPTED at a regular meeting of the City Council of the City of th Cupertino this 19 day of November 2013 by the following vote: VOTE MEMBERS OF THE CITY COUNCIL AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: _____________________________ ______________________________ Grace Schmidt, City Clerk Orrin Mahoney, Mayor, City of Cupertino 291 292 293 RESOLUTION NO. 13-___ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO DIRECTING THE CITY MANAGER TO AMEND THE ADMINISTRATIVE RULES AND REGULATIONS OF THE PERSONNEL CODE TO REFLECT ANY CHANGES TO THE MEMORANDUM OF UNDERSTANDINGS (MOU’S) WHEREAS the City Council desires that the Administrative Rules and Regulations of the Personnel Code be changed to REFLECT ANY CURRENT CHANGES TO THE Memorandum of Understanding (MOU’s) . NOW, THEREFORE BE IT RESOLVED that the City Council hereby directs the City Manager to amend the Administrative Rules and Regulations of the Personnel Code to reflect any current changes to the Memorandum of Understanding (attached as Attachment F). PASSED AND ADOPTED at a regular meeting of the City Council of the City of th Cupertino this 19 day of November 2013 by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: Grace Schmidt, City Clerk Orrin Mahoney, Mayor, City of Cupertino 294 295 OFFICE OF THE CITY CLERK CITY HALL 10300 TORRE AVENUE CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3223 www.cupertino.org CITYCOUNCILSTAFFREPORT Meeting:November19,2013 Subject AdoptanupdatedRecordsRetentionSchedulefortheCityofCupertino. RecommendedAction AdoptthedraftresolutionrescindingResolutionNo.12039andadoptingaRecords RetentionSchedulefortheCityofCupertino. Background CupertinoselectedGladwellGovernmentalServices,Inc.,anexpertinlocalgovernment records,toupgradeitsrecordsmanagementprogram.Anupgradeintheexisting programwasnecessarytoreducecurrentandfuturerecordsstoragecosts,eliminate duplicationofeffort,increaseefficiencyandtakeadvantageofcurrenttechnologyand changesinlaw. Discussion Theupgradeofthecurrentrecordsmanagementsystemisdrivenbymanyfactors, including: VerylimitedspaceinCityfacilities Manydepartmentsarefilingandstoringcopiesofthesamerecords Cupertinoproducesandmanagesmanypermanentrecords Escalatingrecordsstorageexpenses Technologyadvancements Changesinlaw Thepurposeoftheprogramistoapplyefficientandeconomicalmethodstothe creation,utilization,maintenance,retention,preservationanddisposalofallrecords managedbytheCity. Byidentifyingwhichdepartmentisresponsibleformaintainingtheoriginalrecordand byestablishingclearretentionperiodsfordifferentcategoriesofrecords,Cupertinowill realizesignificantsavingsinlaborcosts,storagecosts,freefilingcabinetandoffice space,andrealizeoperationalefficiencies. 296 Thenewdepartmentretentionscheduleswerewritteninteractivelywith representativesfromalldepartmentsparticipatingintheproject.Theyprovideclear, specificrecordsdescriptionsandretentionperiods,andapplycurrentlawand technologytothemanagementof"»¶«¸º¯´µȟ¹records. Acolumnhasbeenincludedineachdepartmentschedulenotingthechangein retentionfromthecurrentscheduletothedraftschedule,ifany,forthatparticular record. _____________________________________ GraceSchmidt,CityClerk Preparedby: ApprovedforSubmissionby:DavidBrandt,CityManager Attachments: ADraftResolution BɋDraftRecordsRetentionSchedule CɋPreviouslyadoptedResolutionNo.12039 DɋLocalGovernmentRecordsManagementGuidelines(currentretentionschedule) 297 RESOLUTIONNO.13 ARESOLUTIONOFTHECUPERTINOCITYCOUNCILRESCINDING RESOLUTIONNO12039ANDADOPTINGARECORDSRETENTION SCHEDULEFORTHECITYOFCUPERTINO WHEREAS,Section34090oftheGovernmentCodeoftheStateofCalifornia providesaprocedurewherebyanyCityrecordwhichhasserveditspurposeandis nolongerrequiredmaybedestroyed;and WHEREAS,theStateofCaliforniahasadoptedguidelinesforretentionperiod forvariousgovernmentrecords;and WHEREAS,onMarch4,2002,theCupertinoCityCounciladoptedResolution No.02037adoptingtheLocalGovernmentRetentionGuidelinesAdministeredby theCaliforniaStateArchivesDivisionoftheSecretaryof2º§º«ȟ¹officeastherecords retentionschedulefortheCityofCupertino;and WHEREAS,onMay1,2012,theCupertinoCityCouncilrescindedResolution No.02037andadoptedResolutionNo.12039amendingtherecordsretention scheduletoaddspecificrecordtypesandextendtimelinesoncertainrecordtypes; and WHEREAS,theCityofCupertinorecognizestheimportanceofproviding clear,specificrecorddescriptionsandretentionperiods,andapplyingcurrentlaw andtechnologytoarecordsretentionprogram;and WHEREAS,thetermȠ¸«©µ¸ª¹ȡasusedhereinshallincludedocuments, instructions,books,microforms,electronicfiles,magnetictape,opticalmedia,or papers;asdefinedbytheCaliforniaPublicRecordsAct;and NOW,THEREFORE,BEITRESOLVEDthattheCityCounciloftheCityof Cupertinoherebytakesthefollowingaction: 1.RescindsResolutionNo.12039 2.AdoptstheRecordsRetentionSchedule,assetforthinExhibitA, attachedheretoandincorporatedhereinbythisreference 298 Resolution No. 13- PASSEDANDADOPTEDataregularmeetingoftheCityCounciloftheCity ofCupertinothis19thdayofNovember,2013bythefollowingvote: VoteMembersoftheCityCouncil AYES: NOES: ABSENT: ABSTAIN: ATTEST:APPROVED: _____________________________________________________________ GraceSchmidt,CityClerkOrrinMahoney,Mayor,CityofCupertino 2 299 Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. All recommendations are presented to OFR for successful bids / proposals); agreement or contract (City Clerk is the City Council; GC §34090 et seq. The RFP / RFQ and the successful Comments / Reference Page CW-1 CCP §§337 et seq, 349.4; GC proposal becomes part of the Litigation, claims, complaints, audits, public records act requests, and/or investigations suspend normal retention periods (retention resumes after settlement or completion). §§34090, 54960.1(c)(1) Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Retentions apply to the department that is NOT the Office of Record (OFR), or the "Lead Department". If you are the OFR, refer to your department retention schedule. A GC §54953.5(b) EXHIBIT GC §34090GC §34090 Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. OLD Retention (If empty, the records series was not addressed) CU+4, CU+2 CU+3 Mos. CL+2 RECORDS RETENTION SCHEDULE: CITY-WIDE STANDARDS Completion or After Funding Agency Audit, if required, whichever is 30 days, or After Minutes are Adopted, Whichever is Retention + 10 years Longer Total 2 years2 years2 years longer Retention / Disposition Inactive (Records 10 years or Funding Agency Audit, if required, whichever is Center) longer After Completion Active 30 days, or After Minutes are Adopted, Whichever is (in office)300 2 years Longer 2 years2 years duplicate and distribute upon a valid request for public records pursuant to state law BIDS, UNSUCCESSFUL PROPOSALS or RESPONSES of Composed solely of less than a quorum of the City (Correspondence, Project Administration, Project Notices / Legal Advertising / Notices / Proofs of (Request for Qualifications) that don't result in a AUDIO RECORDINGS and/or RFQs Affidavits of Publications / Affidavits of Posting ADMINISTRATIVE City UNSUCCESSFUL (Agendas and Minutes for Subcommittees Schedules, Certified Payrolls, Insurance Boards, Commissions, & Committees: Records Description Publications/ Public Hearing Notices Certificates, Invoices, Logs, etc.) (Request for Proposals) Agreements & Contracts: Boards and Committees: Agreements & Contracts: Council Subcommittees Meetings / Audio Tapes to RFPs Council) contract FILES Retention No. Adopted: xx/xx/xx CW-001CW-002CW-003CW-004CW-005 Ver. 8.0 Lead Dept.Lead Dept.Lead Dept.Lead Dept.Lead Dept. Office of Record (OFR) Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. the Office of Record; these are copies City preference; Statute of Limitations Originals are sent to Finance, who is for personal property, fraud, etc. is 3 months; CCP §§338 et seq., 340 et Brown Act challenges must be filed retained for auditing purposes; GC seq., 342, GC §§945.6, GC §34090 within 30 or 90 days of action; GC years; Claims must be filed in 6 Comments / Reference Page CW-2 Litigation, claims, complaints, audits, public records act requests, and/or investigations suspend normal retention periods (retention resumes after settlement or completion). Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may §§34090, 54960.1(c)(1) Retentions apply to the department that is NOT the Office of Record (OFR), or the "Lead Department". If you are the OFR, refer to your department retention schedule. GC §34090 §34090.7 Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. OLD Retention (If empty, the records series was not addressed) CU+2CU+2 RECORDS RETENTION SCHEDULE: CITY-WIDE STANDARDS When No Required - Minimum 2 When No Required - Minimum 2 Retention Longer Longer Total 2 years 1 year yearsyears Retention / Disposition Inactive (Records Center) Active When No - Minimum 2 When No Required - Minimum 2 (in office)301 Required Longer Longer 2 years 1 year yearsyears duplicate and distribute upon a valid request for public records pursuant to state law Boards, Commissions, & Committees: Residents (e.g. Administrative, Chronological, General Files, Letters, Complaints / Concerns from Citizens Computer Memorandums, Reading File, Working Files, etc.) Advisory Bodies Formed by CITY COUNCIL Cash Receipts Detail / Backup / Accounts Tracking Software or Correspondence Records Description Receivable Detail / Refund Detail AGENDAS, AGENDA PACKETS ROUTINE Correspondence - Retention No. Adopted: xx/xx/xx CW-006CW-007CW-008CW-009 Ver. 8.0 (Responding) Document Receives the City's Original Lead Dept.Dept. that Finance / Office of Document Authors Revenue Lead Record (OFR) Dept. or Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. categorized, filed and retained based (based on the content of the record.) E-retained for the purpose of preserving out and placing them in a file folder, or considered transitory / preliminary draft. purposes. Contact IT and refer to dept. policy regarding retention of historical reference are saved by printing them GIS information. GC §34090 et seq. placed in appropriate project files or upon the appropriate records series Documents generated in City's GIS made or Attorney to determine if a record is the informational content for future mails, electronic records, or social Electronic and paper records are system by a lead dept. should be saving them electronically. If not saved as necessary for historical mentioned here, consult the City Comments / Reference Page CW-3 GC §§34090, 6252, 6254(a) Litigation, claims, complaints, audits, public records act requests, and/or investigations suspend normal retention periods (retention resumes after settlement or completion). Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may ARE Retentions apply to the department that is NOT the Office of Record (OFR), or the "Lead Department". If you are the OFR, refer to your department retention schedule. media postings that Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. OLD Retention (If empty, the records series was not addressed) RECORDS RETENTION SCHEDULE: CITY-WIDE STANDARDS When No Retention Longer RequiredIndefinite Total Retention / Disposition Inactive (Records Center) Active When No (in office)302 Longer RequiredIndefinite duplicate and distribute upon a valid request for public records pursuant to state law TRANSITORY / PRELIMINARY Interagency and Intraagency Memoranda (e.g. calendars, checklists, e-mail or social media posting preserving the informational content for future reference, instant messaging, inventories, invitations, logs, mailing lists, meeting room registrations, speaker slips, supply thank yous, requests from other cities, undeliverable envelopes, visitors logs, voice mails, webpages, etc.) not retained in the ordinary course of business inventories, telephone messages, transmittal letters, made or retained for the purpose of Records Description Documents Generated by GIS Correspondence - DRAFTS, NOT that is Retention No. Adopted: xx/xx/xx CW-010CW-011 Ver. 8.0 Document Receives the City's Original Information Dept. that Technology Office of Document Authors Record (OFR) or Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. As long as the drafts and notes are not Business." Consult the City Attorney to determine if a records is considered a Non-records - may be obtained from the newspaper company; GC §34090 City Preference; Preliminary draft / retained in the "Regular Course of transitory record; GC §34090, GC draft. GC §§34090, 6252, 6254(a) Comments / Reference Page CW-4 Litigation, claims, complaints, audits, public records act requests, and/or investigations suspend normal retention periods (retention resumes after settlement or completion). Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Retentions apply to the department that is NOT the Office of Record (OFR), or the "Lead Department". If you are the OFR, refer to your department retention schedule. GC §34090GC §34090GC §34090GC §34090GC §34090GC §34090 Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. §6252 OLD Retention (If empty, the records series was not addressed) CU+2CU+2 CL+2 T+5 RECORDS RETENTION SCHEDULE: CITY-WIDE STANDARDS When No After Funding Agency Audit, if required - Minimum 5 When No When No Retention Longer Longer Longer RequiredRequiredRequired 30 years Total 2 years2 years2 years2 years years Retention / Disposition Inactive (Records Funding Agency Audit, if Required - Minimum 5 Center) 30 years After years Active When No When No Chemical In When No (in office)303 Longer Longer Longer Required RequiredRequired While 2 years2 years2 years2 years2 years Use duplicate and distribute upon a valid request for public records pursuant to state law Drafts & Notes: Drafts that are revised (retain final Reports, other records required to rules, regulations & procedures, reports to grant funding Material Data Safety Sheet (MSDS) / Chemical Use Applications, agencies, correspondence, audit records, completion Applications (successful), grant agreement, program substance / agent, where & when it was used) Facility Use Applications / Facility Use Permits pass the funding agency's audit, if required) Report Form (or records of the chemical / Grants / CDBG / Reimbursable Claims Leave Requests / Vacation Requests Records Description (UNSUCCESSFUL Public Relations / Press Releases Personnel Work Schedules Newspaper Clippings Correspondence) Grants / CDBG (SUCCESSFUL version) records Retention No. Adopted: xx/xx/xx CW-012CW-013CW-014CW-015CW-016CW-017CW-018CW-019CW-020 Ver. 8.0 Lead Dept. & City ManagerLead Dept. & City Manager Lead Dept.Lead Dept.Lead Dept.Lead Dept.Lead Dept.Lead Dept.Lead Dept. Office of Record (OFR) Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. OK to destroy after 2 years, whichever Department Preference; GC §34090 et Administratively and Historically Comments / Reference Page CW-5 significant, therefore retained Litigation, claims, complaints, audits, public records act requests, and/or investigations suspend normal retention periods (retention resumes after settlement or completion). Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may permanently; GC §34090 GC §§34090, 6254(h) Retentions apply to the department that is NOT the Office of Record (OFR), or the "Lead Department". If you are the OFR, refer to your department retention schedule. is longer; GC §34090 GC §34090GC §34090GC §34090 Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. seq. OLD Retention (If empty, the records series was not addressed) CU+2 CL+2CL+2 S+5 RECORDS RETENTION SCHEDULE: CITY-WIDE STANDARDS When No Required - Minimum 5 When No Required - Minimum 2 When No Required - Minimum 2 When No Required - Minimum 2 Retention Longer Longer Longer Longer 10 years Total 2 years yearsyearsyearsyears P Retention / Disposition Inactive (Records When No Required - Minimum 3 Longer Center) years P Active When No Required - Minimum 2 When No Required - Minimum 2 When No Required - Minimum 2 (in office)304 Longer Longer Longer 10 years10 years 2 years2 years yearsyearsyears duplicate and distribute upon a valid request for public records pursuant to state law Reports and Studies (Historically significant - e.g., Brochures, Flyers, Manuals, etc: Produced by Subject / Reference Files: Subjects other than NOT Specifically Mentioned in Retention Schedules Special Projects / Subject Files / Issue Files Purchased Reports and Studies (other than Historically Reference Materials: Policies, Procedures, Real Estate Appraisal Reports: Property significant reports - e.g. Annual Reports) Records Description purchased, Loans not funded, etc. Real Estate Appraisal Reports: Property, Funded Loans YOUR Department Zoning Studies) Retention No. Adopted: xx/xx/xx CW-021CW-022CW-023CW-024CW-025CW-026CW-027 Ver. 8.0 Lead Dept. (Who Ordered the Appraisal)Lead Dept. (Who Ordered the Appraisal) Lead Dept.Lead Dept.Lead Dept.Lead Dept.Lead Dept. Office of Record (OFR) Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. Human Resources. Supervisor's notes maintained by the supervisor retained discarded as determined by supervisor. and other unofficial records or copies for reference may be retained and personnel records are provided to Ensure that originals of all official Comments / Reference Page CW-6 Litigation, claims, complaints, audits, public records act requests, and/or investigations suspend normal retention periods (retention resumes after settlement or completion). Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Retentions apply to the department that is NOT the Office of Record (OFR), or the "Lead Department". If you are the OFR, refer to your department retention schedule. GC §34090 et seq. GC §34090 Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. OLD Retention (If empty, the records series was not addressed) CU+2 RECORDS RETENTION SCHEDULE: CITY-WIDE STANDARDS When No Retention Longer Required Total 2 years Retention / Disposition Inactive (Records Center) Active When No (in office)305 Longer Required 2 years duplicate and distribute upon a valid request for public records pursuant to state law and can be destroyed as drafts (When No Longer forms are considered a draft or transitory record, If a summary of the data is compiled, the survey Surveys / Questionnaires (that the City issues). Tapes / DVD Recordings: See Boards & Records Description Supervisor's File - Personnel Issues Commissions Required) Retention No. Adopted: xx/xx/xx CW-028CW-029CW-030 Ver. 8.0 Lead Dept.Lead Dept. Office of Record (OFR) Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. Department preference; Ethics Training propose 7 years; Calif. Labor Division is required to keep their OSHA records 7 §3203 et seq., 29 CFR 1627.3(b)(ii), LC years for promotion, demotion, transfer, Department preference (Courts treat EEOC/FLSA/ADEA (Age) requires 3 years for personnel actions; 8 CCR discharge; State Law requires 2 -3 1602.31 & 1627.3(b)(1)(i)&(ii), GC years; EEOC/FLSA/ADEA (Age) demotion, transfer, selection, or is 5 years; Statewide guidelines selection, or discharge; 29 CFR §6429(c); GC §§12946, 34090, Comments / Reference Page CW-7 requires 3 years for promotion, volunteers as employees); Litigation, claims, complaints, audits, public records act requests, and/or investigations suspend normal retention periods (retention resumes after settlement or completion). Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Retentions apply to the department that is NOT the Office of Record (OFR), or the "Lead Department". If you are the OFR, refer to your department retention schedule. GC §§12946, 34090 §§12946, 34090 53235.2(b) Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. OLD Retention (If empty, the records series was not addressed) CU+7 RECORDS RETENTION SCHEDULE: CITY-WIDE STANDARDS Inactive / Separation + Retention Total 5 years3 years3 years Retention / Disposition Inactive (Records Center) Active Inactive / Separation + (in office)306 5 years3 years3 years duplicate and distribute upon a valid request for public records pursuant to state law or Pending Applicants (Attendance Rosters, Outlines and Materials; Volunteer / Unpaid Intern Applications & Volunteer / Unpaid Intern Applications & RECORDS Records Description includes Ethics & Safety training) Unsuccessful Successful COURSE Training - ALL Agreements - Agreements - Retention No. Adopted: xx/xx/xx CW-031CW-032CW-033 Ver. 8.0 Lead Dept.Lead Dept.Lead Dept. Office of Record (OFR) Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. GC §§ 911.2, 945.6, 34090, 34090.6; PC GC §§ 911.2, 945.6, 34090, 34090.6; PC Page CATT-1 Comments / Reference Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. GC §34090GC §34090GC §34090GC §34090 §832.5§832.5 (If empty, the records series addressed) Retention was not OLD CL+5 S+2 RECORDS RETENTION SCHEDULE: CITY ATTORNEY When no Required - Minimum 2 When No Required - Minimum 2 Resolution + When no Required - Minimum Resolution Retention Longer Longer + 5 years Longer Total Final 5 years 2 years5 years yearsyears Retention / Disposition Inactive (Records Center) 3 years 307 Active (in office)When no Required - Minimum 2 When No Required - Minimum 2 Resolution + When no Required - Minimum Resolution Longer Longer + 5 years Longer Final 5 years 2 years2 years yearsyears duplicate and distribute upon a valid request for public records pursuant to state law Confidential Invoice Backup (not sent to Finance) Attorney / Staff / Department Advice Files (All Records Description City Attorney Opinions Lawsuits / Litigation egal invoices, etc. Amicus Briefs subjects) Claims l Retention No. Adopted: xx/xx/xx CA-001CA-002CA-003CA-004CA-005CA-006 Ver. 5.0 City AttorneyCity AttorneyCity AttorneyCity AttorneyCity AttorneyCity Attorney Office of Record (OFR) If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. GC §34090, Contractor has retention Copies (The City Attorney is the Office CCP §§337. 337.1(a), 337.15, 343; Page CC-1 Comments / Reference requirements in 48 CFR 4.703 2 CCR 18705.5; GC §34090 Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). Land Records; GC §34090 Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may of Record); GC §34090.7 GC §34090 et seq.GC §34090 et seq. GC §34090GC §34090GC §34090 OLD Retention (If empty, the records series was not addressed) CU+2 CL+2CL+2 T+5 PPP RECORDS RETENTION SCHEDULE: CITY CLERK When No Required - Minimum 2 When No Copies - Office + Term of Retention Longer Longer Required Total 2 years2 years2 years2 years years PPP Retention / Disposition Inactive (Records Center) PPP 308 Active (in office)When No Required - Minimum 2 Copies - When No Office + Term of Longer Longer Required 2 years4 years5 years2 years2 years2 years2 years years duplicate and distribute upon a valid request for public records pursuant to state law IMAGED (1999 & Agreement or Contract includes all contractual obligations (e.g. Amendments, Scope of Work , Annexations / Boundaries / Consolidations / LAFCO City Council, Redevelopment / Successor IMAGED City Council, Redevelopment / Exchange Orders, or Successful Proposal) Successor Agency, Public Utilities Corporation Bid Packets / Unsuccessful Bids or Proposals Annual Commission / Committee Notice of Applications for Boards, Commissions or Applications for Boards, Commissions or NOT Records Description Agency, Public Utilities Corporation Agenda Packets / Staff Reports - Agenda Packets / Staff Reports - ALL Unsuccessful Successful Agreements & Contracts: Vacancies per Maddy Act (Prior to 1999): Committees -Committees - Claim Forms After): Retention No. Adopted: xx/xx/xx CC-001CC-002CC-003CC-004CC-005CC-006CC-007CC-008CC-009 Ver. 8.0 City ClerkCity ClerkCity ClerkCity ClerkCity ClerkCity ClerkCity ClerkCity Clerk Office of Attorney Record (OFR) City If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. GC §§36507, 34090; PC §§801.5, Page CC-2 GC §81009(e),(f), & (g); 2 CCR Comments / Reference 2 CCR 18705.5; GC §34090 Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may 2 CCR 18944(c)(3)(G) 803(c); 29 USC 1113 GC §81009(e) 18615(d) OLD Retention (If empty, the records series was not addressed) T+7, E+5 T+2 RECORDS RETENTION SCHEDULE: CITY CLERK Retention Total 7 years4 years7 years2 years P Retention / Disposition Inactive (Records Center) ELECTIONS - CONSOLIDATED P 309 Active (in office)When No Longer Required 7 years4 years7 years2 years duplicate and distribute upon a valid request for public records pursuant to state law Economic Interest Filings (FPPC 700 Series Forms - FPPC Form 806 (Agency Report of Public Official FPPC Form 802 (Tickets Provided by Agency FPPC Form 801 (Gift to Agency Report) ALL Records Description Statement of Economic Interests): Employee Bonds / Fidelity Bonds Appointments) Report) Retention No. Adopted: xx/xx/xx CC-010CC-011CC-012CC-013CC-014 Ver. 8.0 City ClerkCity ClerkCity ClerkCity ClerkCity Clerk Office of Record (OFR) If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. Transitory / Non-record; GC §34090 et Paper must be retained for at least 2 Paper must be retained for at least 2 Paper must be retained for at least 2 Paper must be retained for at least 2 Page CC-3 Comments / Reference Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may GC §81009(b)(g)years; GC §81009(b)(g)years; GC §81009(b)(g) years; GC §81009(c)(g) GC §53753(e)(2) GC §34090GC §34090 EC §17100EC §17100 years; seq. OLD Retention (If empty, the records series was not addressed)P (law changed & is 2 years) E+5E+7E+7E+4E+4 P RECORDS RETENTION SCHEDULE: CITY CLERK Election + 4 Office + Term of Retention 3 months Total 2 years2 years7 years7 years7 years4 years2 years years P Retention / Disposition Inactive (Records Center) P 310 Active (in office)Office + 4 Election + 4 Term of 3 months 2 years2 years7 years7 years7 years7 years2 years yearsyears duplicate and distribute upon a valid request for public records pursuant to state law Ballots and/or protest THOSE NOT REQUIRED TO FILE ORIGINAL WITH UNSUCCESSFUL CANDIDATES Files (Correspondence, Precinct Statements to be printed in the Sample Ballot, etc.) Master Mailing List / Undeliverable Mail (Elected Officials) SUCCESSFUL CANDIDATES Campaign Filings (FPPC 400 Series Forms): Campaign Filings (FPPC 400 Series Forms): (PACS - not candidate-Candidate File: Nomination Papers, Candidate Candidate File: Nomination Papers, Candidate Campaign Filings (FPPC 400 Series Forms): Campaign Filings (FPPC 400 Series Forms): Maps, County Election Services, Candidate GENERAL, WORKING or Records Description UNSUCCESSFUL CANDIDATES SUCCESSFUL CANDIDATES Prop. 218 Fees & Charges: Prop. 218 Fees & Charges: Prop. 218 Fees & Charges: OTHER COMMITTEES (copies) ADMINISTRATION Statements, etc. - Statements, etc. - CITY CLERK Certifications controlled)Elections - letters Retention No. Adopted: xx/xx/xx CC-015CC-016CC-017CC-018CC-019CC-020CC-021CC-022CC-023CC-024 Ver. 8.0 City ClerkCity ClerkCity ClerkCity ClerkCity ClerkCity ClerkCity ClerkCity ClerkCity ClerkCity Clerk Office of Record (OFR) If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. election results, or final examination if no election, unless there is a legal or GC §§36507, 34090; PC §§801.5, significance; records can address a The 8 month retention applies after variety of subjects and media; GC FPPC proceeding. EC §§17200, Page CC-4 City Clerk determines historical Comments / Reference CCP §337 et. seq., GC §34090 Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may GC §§34090, 53235.2(b) 803(c); 29 USC 1113 GC §34090 et. seq. GC §34090GC §34090GC §34090GC §34090GC §34090GC §34090 §34090 17400 OLD Retention (If empty, the records series was not addressed) CU+4, CU+2 0.75 T+6 PPPPPPP RECORDS RETENTION SCHEDULE: CITY CLERK Results, or Examination if No Election Retention + 8 mo.14 years Total 5 years2 years Final PPPPPPPP Retention / Disposition Inactive (Records Center) (End of Elections Section) PPPPPP 311 Active (in office)Results, or Examination if No Election + 8 mo.14 years 2 years5 years5 years2 years2 years2 years2 years2 years Final PP duplicate and distribute upon a valid request for public records pursuant to state law List of City Council Members and Mayors / Historical List of Council Members and Board & Commission Minutes - All Boards & Commissions, excluding Ad-Minutes - City Council, Redevelopment / Successor Proof of Publication / Public Notices / Certificate of (Sample ballot, copies of Oaths of Office - Council, Board and Commission Incorporation, City Seal, Awards of significant Historical Records & Historical Projects (e.g. Elections - Petitions (Initiative, Recall or Records Description Agency, Public Utilities Corporation Municipal Code and History File Ethics Training - Certificates Insurance Certificates - ALL Posting (includes agendas) Ordinances (City Council) resolutions, final results) HISTORICAL historical interest, etc.) Referendum) Elections - MembersMembers Hoc Retention No. Adopted: xx/xx/xx CC-025CC-026CC-027CC-028CC-029CC-030CC-031CC-032CC-033CC-034CC-035CC-036 Ver. 8.0 City ClerkCity ClerkCity ClerkCity ClerkCity ClerkCity ClerkCity ClerkCity ClerkCity ClerkCity ClerkCity ClerkCity Clerk Office of Record (OFR) If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. Employees are not required to retain Page CC-5 Comments / Reference the records produced, only the Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may request; GC §34090 GC §34090 et. seq.GC §34090 et. seq.GC §34090 et. seq. GC §50022.6 GC §34090 GC §34090 OLD Retention (If empty, the records series was not addressed) CU+2 CL+2 S+4 PPPP RECORDS RETENTION SCHEDULE: CITY CLERK Retention Total 2 years2 years PPPPP Retention / Disposition Inactive (Records Center) PP 312 Active (in office) 2 years2 years2 years2 years PPP duplicate and distribute upon a valid request for public records pursuant to state law Real Property - Records that Affect the Title to Real Property (Abandonments, Deeds, Easements, Liens, Records Destruction Lists / Certificates of Records Uniform Building Codes / California Building Codes Records Retention Schedules / Amendments to Successor Agency, Public Utilities Corporation Resolutions - City Council, Redevelopment / Subpoenas / Discovery Requests / Personal Records Description Records Retention Schedules Request for Public Records Appearance / Duces Tecum Vacations, etc.) Destruction Retention No. Adopted: xx/xx/xx CC-037CC-038CC-039CC-040CC-041CC-042CC-043 Ver. 8.0 City ClerkCity ClerkCity ClerkCity ClerkCity ClerkCity ClerkCity Clerk Office of Record (OFR) If the record is not listed here, refer to the Retention for City-Wide Standards Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. 29 CFR 1602 et seq & 1627.3(a)(5) and (6), 2 CCR 7287.0(c)(2), GC §§12946, 34090 Page CM-1 Comments / Reference Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. GC §34090GC §34090GC §34090GC §34090 (If empty, the records series addressed) Retention was not OLD CU+2CU+3 S+2 RECORDS RETENTION SCHEDULE: CITY MANAGER When No Required - Minimum 2 When No Required - Minimum 2 When No Required - Minimum 2 Retention Longer Longer Longer Total 3 years5 years yearsyearsyears Retention / Disposition CITY MANAGER / ADMINISTRATION Inactive (Records Center) 313 Active (in office)When No Required - Minimum 2 When No Required - Minimum 2 When No Required - Minimum 2 Longer Longer Longer 3 years5 years duplicate and distribute upon a valid request for public records pursuant to state law yearsyearsyears Newsletters to the City Council (Items of Interest) Correspondence / City Manager Correspondence (Issues and/or projects will vary over time - e.g. Confidential Employee Recruitment Contracts / Projects, Programs, Events, Subject & Issues City Council Correspondence / Mayor's Records Description (e.g. City Manager, City Attorney)Grand Jury Reports & Responses Hotels, Developments, etc.) Applications Retention No. Adopted: xx/xx/xx CM-001CM-002CM-003CM-004CM-005 Ver. 5.0 Office of ManagerManagerManagerManagerManager / Lead Dept. Record (OFR) City City City City City If the record is not listed here, refer to the Retention for City-Wide Standards Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. GC §§ 945, 34090, 34090.6; PC §832.5 Page CM-2 Comments / Reference Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). GC §34090 et seq. Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. GC §34090GC §34090GC §34090GC §34090 (If empty, the records series addressed) Retention was not OLD ECONOMIC DEVELOPMENT / REDEVELOPMENT / SUCCESSOR AGENCY RECORDS RETENTION SCHEDULE: CITY MANAGER When No Minimum 2 Settle + 5 Retention Longer Required 10 years Total yearsyears PP Retention / Disposition Inactive (Records Settle + 4 Center) years PP 314 Active (in office)When No Minimum 2 Completion Completion Settle + 1 Longer Project + 5 yearsProject + 5 years Required 10 years duplicate and distribute upon a valid request for public records pursuant to state law years year Economic Development Projects (Projects will vary Redevelopment / Successor Agency Project Files & Department of Finance Schedule of Obligations: Relocation Files Where Redevelopment was the Approvals, Denials, Meet & Confer, etc. Project Plans (Includes Environmental over time - e.g. Proposed Hotels, etc.) Records Description Redevelopment Plans (Historical) Census, Demographics Assessments) Lead Retention No. Adopted: xx/xx/xx CM-006CM-007CM-008CM-009CM-010CM-011 Ver. 5.0 Office of Manager / Econ. Dev.Manager / Econ. Dev.Manager / Econ. Dev.Manager / Econ. Dev.Manager / Econ. Dev.Manager / Econ. Dev. Record (OFR) City City City City City City If the record is not listed here, refer to the Retention for City-Wide Standards Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. Page CM-3 Comments / Reference Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. GC §34090GC §34090GC §34090GC §34090GC §34090GC §34090GC §34090 (If empty, the records series addressed) Retention was not OLD S+2 RECORDS RETENTION SCHEDULE: CITY MANAGER Completion When No Required - Minimum 2 Superseded Retention + 5 yearsLonger + 2 years PUBLIC AFFAIRS / CITY CHANNEL / CABLE TV / PIO Total 2 years2 years years PP Retention / Disposition Inactive (Records Center) P 315 Active (in office)Completion When No Required - Minimum 2 Superseded + 5 yearsLonger + 2 years 90 days 2 years2 years duplicate and distribute upon a valid request for public records pursuant to state law years P Cable TV Programming, Production & Scheduling Cable TV Franchise Administration / PACT Videos: Historical and Community Events Newsletters to the Public (The Scene) Records Description Emergency Preparedness Plans Cable TV Complaints Community Outreach Administration Retention No. Adopted: xx/xx/xx CM-012CM-013CM-014CM-015CM-016CM-017CM-018 Ver. 5.0 Office of Manager / Manager / Manager / Manager / Manager / Manager / Manager / Public Public Public Public Public Public Public Record (OFR) AffairsAffairsAffairsAffairsAffairsAffairsAffairs City City City City City City City If the record is not listed here, refer to the Retention for City-Wide Standards Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. Page CM-4 Comments / Reference Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). GC §§34090.7, 34090 GC §34090 et seq. Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. GC §34090 (If empty, the records series CU+3 mos. addressed) Retention was not OLD S+2 RECORDS RETENTION SCHEDULE: CITY MANAGER When No Required - Minimum 2 When No Retention Longer Longer Required 25 years Total years Retention / Disposition Inactive (Records Center) 316 Active (in office)When No Required - Minimum 2 When No Required Longer Longer 25 years duplicate and distribute upon a valid request for public records pursuant to state law years Proclamations / Commendations / Memoriums / Planning Commission Meeting, or other public Video Recordings of City Council Meetings, Speech Notes / PowerPoint Presentations Records Description Recognitions, etc. meetings Retention No. Adopted: xx/xx/xx CM-019CM-020CM-021 Ver. 5.0 Office of Manager / Manager / Manager / Public Public Public Record (OFR) AffairsAffairsAffairs City City City Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. Clerk, who is the Office of Record; GC If the record is not listed here, refer to the Retention for City-Wide Standards maintained permanently by the City Page CD-1 Comments / Reference Previously adopted codes are Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). GC §34090, H&S §19850 GC §34090GC §34090 §34090.7 OLD Retention (If empty, the records series was not addressed) RECORDS RETENTION SCHEDULE: COMMUNITY DEVELOPMENT Superseded Retention Indefinite Total 2 years2 years Until Retention / Disposition Inactive (Records Center) BUILDING 317 Active (in office)Supersededretain copies Dept. to Indefinite 2 years2 years Until duplicate and distribute upon a valid request for public records pursuant to state law (correction notices, compliance orders, stop work (California Building Codes / Uniform Construction Notices / Inspection Notices (includes reports) Records Description Database Complaints (Written) Building Codes) Building Permit notices, etc.) amended Retention No. Adopted: xx/xx/xx CD-001CD-002CD-003CD-004 Ver. 13.0 Office of Develop. / Develop. / Develop. / City Clerk Comm. Comm. Comm. BuildingBuildingBuilding Record (OFR) Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. If the record is not listed here, refer to the Retention for City-Wide Standards Page CD-2 Comments / Reference Preliminary Drafts; GC §34090 Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). GC §34090, H&S §19850 GC §34090 et seq. GC §34090 OLD Retention (If empty, the records series was not addressed) RECORDS RETENTION SCHEDULE: COMMUNITY DEVELOPMENT CL+2 P P Keep Until Permit is Retention Total Finalled 2 years PP Retention / Disposition Inactive (Records Center) 318 Active (in office)Keep Until Permit is Finalled 2 years PP duplicate and distribute upon a valid request for public records pursuant to state law Estimator, Contractor / Subcontractor list, Owner Builder form, Soils / Geotechnical Reports, Structural Calculations, Energy Compliance forms, Certificate of Occupancy, Green Landscape Water Efficiency Checklist, Permit cancellation Correspondence, Checklists, Temporary Certificate of Public Records Requests / Requests & Permissions Special Inspection Reports, Specifications, Accessibility Plan Check Comments, Outside Agency Reports, New Address Assignments; Change of Addresses letters, PG&E / Gas / Electric Abandonment, Removal Bldg Checklist, & Hazardous Materials Questionnaire, Hardship form, Alternate Materials & Methods form, aǒƌƷźΏCğƒźƌǤ 5ǞĻƌƌźƓŭƭͲ /ƚƒƒĻƩĭźğƌ ğƓķ LƓķǒƭƷƩźğƌ Building Plans, Permits and Supporting Applications, Fee Documents (including project that are expired or Records Description {ǒƦƦƚƩƷźƓŭ 5ƚĭǒƒĻƓƷƭ źƓĭƌǒķĻʹ to Receive Copies of Plans Letter (Building Demo) Occupancy, etc. withdrawn) .ǒźƌķźƓŭƭ͵ Retention No. Adopted: xx/xx/xx CD-005CD-006CD-007CD-008 Ver. 13.0 Office of Develop. / Develop. / Develop. / Develop. / Comm. Comm. Comm. Comm. BuildingBuildingBuildingBuilding Record (OFR) Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. CBC 104.7, & 107.5, H&S§19850, GC If the record is not listed here, refer to the Retention for City-Wide Standards Page CD-3 Comments / Reference Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). §34090 OLD Retention (If empty, the records series was not addressed) RECORDS RETENTION SCHEDULE: COMMUNITY DEVELOPMENT P Retention Total P Retention / Disposition Inactive (Records Center) 319 Active (in office) P duplicate and distribute upon a valid request for public records pursuant to state law {źƓŭƌĻ CğƒźƌǤ 5ǞĻƌƌźƓŭ ğƓķ 5ǒƦƌĻǣĻƭ͵ Issued Building Plans, Permits and Supporting Documents Estimator, Contractor / Subcontractor list, Owner Builder form, Soils / Geotechnical Reports, Structural Calculations, Energy Compliance forms, Certificate of Occupancy, Green Special Inspection Reports, Specifications, Accessibility Hardship form, Alternate Materials & Methods form, Bldg Checklist, Landscape Water Efficiency Checklist, (including project that are expired or withdrawn) Applications, Fee Permit cancellation letters, PG&E / Gas / Electric Abandonment, Removal Letter (Building Demo) Records Description {ǒƦƦƚƩƷźƓŭ 5ƚĭǒƒĻƓƷƭ źƓĭƌǒķĻʹ Retention No. Adopted: xx/xx/xx CD-009 Ver. 13.0 Office of Develop. / Comm. Building Record (OFR) Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. If the record is not listed here, refer to the Retention for City-Wide Standards Page CD-4 Comments / Reference CFC §104.3.4, GC §34090 Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). GC §34090 et seq.GC §34090 et seq.GC §34090 et seq.GC §34090 et seq.GC §34090 et seq. OLD Retention (If empty, the records series was not addressed) RECORDS RETENTION SCHEDULE: COMMUNITY DEVELOPMENT CU + 5 CU+2 CL+2CL+2 When No Required - Minimum 5 When No Required - Minimum 2 When No Required - Minimum 2 When No Required - Minimum 5 Retention Longer Longer Longer Longer Total 2 years2 years yearsyearsyearsyears Retention / Disposition Inactive (Records Center) CODE ENFORCEMENT 320 Active (in office)When No Required - Minimum 5 When No Required - Minimum 2 When No Required - Minimum 2 When No Required - Minimum 5 Longer Longer Longer Longer 2 years2 years yearsyearsyearsyears duplicate and distribute upon a valid request for public records pursuant to state law Files / Administrative Citations (Includes appeals and Code Enforcement Complaint Letters, Complaints, Code Enforcement Case Files / Abatement Case Records Description Citations (Parking, Traffic, or Criminal) Appeals - Administrative CitationsCorrection notices, Orders, etc.) Alarm Records / False Alarms Appeals - Parking Citations Abandoned Vehicles Retention No. Adopted: xx/xx/xx CD-010CD-011CD-012CD-013CD-014CD-015 Ver. 13.0 Office of Develop. / Develop. / Develop. / Develop. / Develop. / Develop. / Comm. Comm. Comm. Comm. Comm. Comm. Enforce.Enforce.Enforce.Enforce.Enforce.Enforce. Code Code Code Code Code Code Record (OFR) Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. If the record is not listed here, refer to the Retention for City-Wide Standards Page CD-5 Comments / Reference Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). GC §34090 et seq.GC §34090 et seq. GC §34090(a) OLD Retention (If empty, the records series was not addressed) RECORDS RETENTION SCHEDULE: COMMUNITY DEVELOPMENT P Expiration + Retention Total 2 years2 years P Retention / Disposition Inactive (Records Center) 321 Active (in office)Expiration + 2 years2 years P duplicate and distribute upon a valid request for public records pursuant to state law Crime Reports (Misdemeanor or Infractions) Permits: Massage Solicitor, Handbill, Taxi Records Description Liens Retention No. Adopted: xx/xx/xx CD-016CD-017CD-018 Ver. 13.0 Office of Develop. / Develop. / Develop. / Comm. Comm. Comm. Enforce.Enforce.Enforce. Code Code Code Record (OFR) Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. Send all originals to the City Clerk; GC 570.502(b), 29 CFR 97.42, GC §34090 If the record is not listed here, refer to the Retention for City-Wide Standards 24 CFR 85.42, 92.508(a)(c)(2) & Page CD-6 Comments / Reference Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). GC §54953.5(b) GC §34090 §34090.7 OLD Retention (If empty, the records series was not addressed) CU+3 Mos. RECORDS RETENTION SCHEDULE: COMMUNITY DEVELOPMENT CU+2 CL+3 30 days, or After Minutes are Adopted, Whichever is Copies - When No 5 years after Affordability Terminates, or the Written Agreement Terminates, Whichever is Retention Longer Required Period LongerLonger Total the P Retention / Disposition Inactive (Records After the Affordability Terminates, Written Agreement Terminates, Whichever is Longer Period Center) or the HOUSING 322 Active (in office)30 days, or After Minutes are Adopted, Whichever is Copies - When No Longer Required Longer 5 years P duplicate and distribute upon a valid request for public records pursuant to state law Rehabilitation, First Time Home Buyers, Community Housing Development Organizations, CDBG & HOME Housing Programs: Affordable Housing Projects, of Meetings / Audio Tapes Deeds and Title Insurance are sent to City Clerk WITH a Recapture / Resale Restriction Records Description AGENDAS, AGENDA PACKETS AUDIO RECORDINGS Housing CommissionHousing CommissionHousing Commission MINUTES Retention No. Adopted: xx/xx/xx CM-019CM-020CM-021CM-022 Ver. 13.0 Office of Community Develop. / Community Develop. / Community Develop. / City Clerk HousingHousingHousing Record (OFR) Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. 24 CFR 85.42, 92.508(a)(c), & 570.502, If the record is not listed here, refer to the Retention for City-Wide Standards Page CD-7 Comments / Reference Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). 29 CFR 97.42 OLD Retention (If empty, the records series was not addressed) RECORDS RETENTION SCHEDULE: COMMUNITY DEVELOPMENT CL+3 Loan Pay-off + 5 years Retention Total Retention / Disposition Inactive (Records Center) 323 Active (in office)Loan Pay-off + 5 years duplicate and distribute upon a valid request for public records pursuant to state law Rehabilitation, First Time Home Buyers, Community Housing Development Organizations, CDBG & HOME Housing Programs: Affordable Housing Projects, Deeds and Title Insurance are sent to City Clerk WITHOUT a Recapture / Resale Restriction Records Description Retention No. Adopted: xx/xx/xx CM-023 Ver. 13.0 Office of Community Develop. / Housing Record (OFR) Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. Send all originals to the City Clerk; GC If the record is not listed here, refer to the Retention for City-Wide Standards Page CD-8 Comments / Reference Land Records; GC §34090 Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). GC §54953.5(b)GC §54953.5(b) GC §34090GC §34090 §34090.7 OLD Retention (If empty, the records series was not addressed) CU+3 Mos.CU+3 Mos. RECORDS RETENTION SCHEDULE: COMMUNITY DEVELOPMENT CU+2CU+2 P 30 days, or After Minutes are Adopted, Whichever is Copies - When No 30 days, or After Minutes are Adopted, Whichever is Retention Longer Required LongerLonger Total PPP Retention / Disposition Inactive (Records Center) P PLANNING 324 Active (in office)30 days, or After Minutes are Adopted, Whichever is Copies - When No 30 days, or After Minutes are Adopted, Whichever is Longer Required LongerLonger 5 years PP duplicate and distribute upon a valid request for public records pursuant to state law Annexations / Boundaries / Consolidations / LAFCO of Meetings / Audio Tapes of Meetings / Audio Tapes Records Description AGENDAS, AGENDA PACKETSAGENDAS, AGENDA PACKETS Design Review CommissionDesign Review Commission Administrative HearingsAdministrative HearingsAdministrative Hearings AUDIO RECORDINGSAUDIO RECORDINGS MINUTES Retention No. Adopted: xx/xx/xx CD-024CD-025CD-026CD-027CD-028CD-029 Ver. 13.0 Office of Develop. / Develop. / Develop. / Planning & Develop. / Develop. / City ClerkCity Clerk Comm. Comm. Comm. Comm. Comm. PlanningPlanningPlanningPlanning Record (OFR) Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. Send all originals to the City Clerk; GC Send all originals to the City Clerk; GC If the record is not listed here, refer to the Retention for City-Wide Standards Page CD-9 Comments / Reference 14 CCR §15095(c); GC §34090 Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). GC §54953.5(b) Non-records GC §34090 §34090.7§34090.7 OLD Retention (If empty, the records series was not addressed) CU+3 Mos. RECORDS RETENTION SCHEDULE: COMMUNITY DEVELOPMENT CU+2 Copies - When No When No 30 days, or After Minutes are Adopted, Whichever is Copies - When No Retention Longer Longer Longer RequiredRequiredRequired Longer Total PP Retention / Disposition Inactive (Records Center) 325 Active (in office)Copies - When No When No 30 days, or After Minutes are Adopted, Whichever is Copies - When No Longer Longer Longer RequiredRequiredRequired Longer PP duplicate and distribute upon a valid request for public records pursuant to state law Environmental Determinations: Environmental Impact Environmental Determinations: Environmental Impact of Meetings / Audio Tapes Reports (EIRs), Negative Declarations, etc. ) Reports (EIRs), Negative Declarations, etc. ) Records Description Environmental Review CommissionEnvironmental Review CommissionEnvironmental Review Commission AGENDAS, AGENDA PACKETS Design Review Commission Outside City boundaries Inside City boundaries AUDIO RECORDINGS MINUTESMINUTES Retention No. Adopted: xx/xx/xx CD-030CD-031CD-032CD-033CD-034CD-035 Ver. 13.0 Office of Develop. / Develop. / Develop. / Develop. / City ClerkCity Clerk Comm. Comm. Comm. Comm. PlanningPlanningPlanningPlanning Record (OFR) Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. Send all originals to the City Clerk; GC If the record is not listed here, refer to the Retention for City-Wide Standards Page CD-10 Comments / Reference Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). GC §54953.5(b) GC §34090GC §34090GC §34090GC §34090 GC§34090 §34090.7 OLD Retention (If empty, the records series was not addressed) CU+3 Mos. RECORDS RETENTION SCHEDULE: COMMUNITY DEVELOPMENT CL+2 P 30 days, or After Minutes are Adopted, Whichever is Copies - When No Retention Longer Required Longer Total 2 years PPPP Retention / Disposition Inactive (Records Center) 326 Active (in office)30 days, or After Minutes are Adopted, Whichever is Copies - When No Longer Required Longer 2 years PPPP duplicate and distribute upon a valid request for public records pursuant to state law Planning Project Files - Approved & Unapproved Master Plans, Specific Plans, Bikeway Plans, etc. of Meetings / Audio Tapes , Banner, Garage Sales, General Plan, Elements and Amendments Records Description Pumpkin Lots, Temporary Signs, etc. AGENDAS, AGENDA PACKETS Temporary Entitlements: AUDIO RECORDINGS Planning CommissionPlanning CommissionPlanning CommissionPlanning Commission Christmas Tree Lots RESOLUTIONS MINUTES Retention No. Adopted: xx/xx/xx CD-036CD-037CD-038CD-039CD-040CD-041CD-042 Ver. 13.0 Office of Develop. / Develop. / Develop. / Develop. / Develop. / Develop. / City Clerk Comm. Comm. Comm. Comm. Comm. Comm. PlanningPlanningPlanningPlanningPlanningPlanning Record (OFR) Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. If the record is not listed here, refer to the Retention for City-Wide Standards 14 CCR §15095(c); GC§§34090, Page CD-11 Comments / Reference Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). GC§34090GC§34090GC§34090 34090.7 OLD Retention (If empty, the records series was not addressed) RECORDS RETENTION SCHEDULE: COMMUNITY DEVELOPMENT CL+2 P Retention Total PPPP Retention / Disposition Inactive (Records Center) PP 327 Active (in office) 3 years3 years PP duplicate and distribute upon a valid request for public records pursuant to state law Environmental Determinations, Staff Reports, Plans & traffic, and all other uniquely dated environmental and approval letters; and any other documents that project Examples: Conditional Use Permits (CUPs), Design Review, Project Log Index / Spreadsheet / Binders of Historic Special Studies (authored by the City, not related to a particular subject. e.g. Noise / traffic in the Downtown Planning Project Files - Permanent Entitlements (Includes Associated CEQA Noticing, Conditions of complete letters; project approval and conditions of Developments (PUD), Site Plans, Tentative Subdivisions, Maps, arborist, architecture, geologic, noise, soils, Approval, Consultant's Reports, Public Noticing, technical reports and studies; incomplete and Lot Line Adjustments, Parcel Maps, Planned Unit Variances, Zone Changes, etc. Records Description planner deems critical.) Tree Removal Permits Corridor, etc.) Actions (ALL) Retention No. Adopted: xx/xx/xx CD-043CD-044CD-045CD-046 Ver. 13.0 Office of Develop. / Develop. / Develop. / Develop. / Comm. Comm. Comm. Comm. PlanningPlanningPlanningPlanning Record (OFR) Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. Maintains originals of all documents that were presented to Council; GC §34090.7 Department Preference (copies); GC If the record is not listed here, refer to the Retention for City-Wide Standards Department Preference; City Clerk Page CD-12 Comments / Reference Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). §34090.7 OLD Retention (If empty, the records series was not addressed) RECORDS RETENTION SCHEDULE: COMMUNITY DEVELOPMENT P Retention Total PP Retention / Disposition Inactive (Records Center) P 328 Active (in office) 3 years P duplicate and distribute upon a valid request for public records pursuant to state law Zoning Ordinance Amendments, Reclassifications / Records Description Zone Change Zoning Maps Retention No. Adopted: xx/xx/xx CD-047CD-048 Ver. 13.0 Office of Develop. / City Clerk Comm. Planning Record (OFR) If the record is not listed here, refer to the Retention for City-Wide Standards Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. Page FIN-1 Comments / Reference Preliminary drafts; GC §34090 Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). GC §34090, 40802, 53901 GC §34090.7 GC §34090GC §34090GC §34090 Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. (If empty, the records series addressed) Retention was not P, AU+2 CL+2, P OLD S RECORDS RETENTION SCHEDULE: FINANCE When No Retention Longer Required Total 5 years5 years5 years PP Retention / Disposition Inactive (Records Center) 3 years3 years FINANCE / ADMINISTRATION PP 329 Active (in office)When No Longer Required 2 years5 years5 years5 years2 years duplicate and distribute upon a valid request for public records pursuant to state law and similar documents - Financial Records / Assessor Single Audits / Transportation Audits / PERS Audit, et. Assessment Districts / Community Facilities Districts, Audit Reports / CAFR - Comprehensive Annual Financial Reports and related Audit Opinions Budgets - Preliminary, Backup Documents Records Description Budgets - Adopted / Final Audit Work Papers Roll Retention No. Adopted: xx/xx/xx FN-001FN-002FN-003FN-004FN-005FN-006 Ver. 8.0 Office of Finance / Finance / Finance / Finance / Finance / Finance / Admin.Admin.Admin.Admin.Admin.Admin. Record (OFR) If the record is not listed here, refer to the Retention for City-Wide Standards Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. Data Fields / Records are interrelated; CCP §§336(a)(1) & (2), 337.5(a); GC Page FIN-2 Comments / Reference GC §34090, 26 CFR 31.6001-1 CCP §§340, 1519; GC §34090 Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). R&T §19530, GC §34090 GC §34090, CCP § 337GC §34090, CCP § 337 §43900 et seq. GC §34090GC §34090GC §34090 Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. (If empty, the records series AU+5, AU+2 addressed) Retention was not AU+5 OLD CL+10 AU+4AU+2 RECORDS RETENTION SCHEDULE: FINANCE Indefinite Defeased + Retention 10 years10 years Total 5 years5 years5 years5 years5 years5 years Fully Retention / Disposition Inactive (Records Center) FINANCE / GENERAL ACCOUNTING 3 years8 years3 years3 years3 years Indefinite 330 Active (in office)Defeased + 10 years 5 years2 years2 years2 years2 years2 years5 years Fully duplicate and distribute upon a valid request for public records pursuant to state law Bond Official Statements / Transcripts / Certificates of (Includes Invoices, Travel Expense Reimbursements, Bank Statements, Trustee Statements, and similar Participations (COPs) See Bank Statements for Escheat (Unclaimed money / uncashed checks) Checks / Warrant Register Report (issued) Warrant Request, and similar documents) Accounts Payable / Invoices and Backup Records Description FEMA Reimbursement Claims Database Checks / Warrants (Cashed) 1099's Issued / W-9s statement retention. Financial Services documents Retention No. Adopted: xx/xx/xx FN-007FN-008FN-009FN-010FN-011FN-012FN-013FN-014FN-015 Ver. 8.0 Office of Finance / General AccountingFinance / General AccountingFinance / General AccountingFinance / General AccountingFinance / General AccountingFinance / General AccountingFinance / General AccountingFinance / General AccountingFinance / General Accounting Record (OFR) If the record is not listed here, refer to the Retention for City-Wide Standards Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. Department Preference; Meets auditing Page FIN-3 Comments / Reference Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). GC §34090, CCP § 337 standards; GC §34090 GC§§ 34090, 43900 GC §34090GC §34090GC §34090 Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. (If empty, the records series addressed) Retention was not OLD AU+4AU+4AU+2 PP RECORDS RETENTION SCHEDULE: FINANCE When No Retention Longer Required Total 5 years5 years5 years5 years5 years Retention / Disposition Inactive (Records Center) 3 years 331 Active (in office)When No Longer Required 5 years5 years5 years2 years5 years duplicate and distribute upon a valid request for public records pursuant to state law Expenditure Reports, and similar documents (MONTHLY Report, Street Report, Local Government Compensation Investment Reports / Treasurer's Reports (Report and Reports: Annual State or Federal: State Controller's Transaction Histories, Balance Sheets, Revenue & Investment Bonds (Receipts / Advisor Reports and Fixed Assets - Annual Listing (Source Documents) Statements / Trade Tickets / LAIF (Local Agency Investments / Arbitrage / Certificate of Deposit / Reports, Subsidiary Ledgers, Reconciliations, Records Description Journal Entries / Journal Vouchers Report, and similar documents Investment Fund)) OR PERIODIC) Backup) Retention No. Adopted: xx/xx/xx FN-016FN-017FN-018FN-019FN-020FN-021 Ver. 8.0 Office of Finance / General AccountingFinance / General AccountingFinance / General AccountingFinance / General AccountingFinance / General AccountingFinance / General Accounting Record (OFR) If the record is not listed here, refer to the Retention for City-Wide Standards Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. §19530; 29CFR 516.5 - 516.6, 29USC Human Resources retains originals; GC §19530; LC § 1174(d); 29 CFR 516.5; §19530; 29CFR 516.5 - 516.6, 29USC §19530; 29CFR 516.5 - 516.6, 29USC Page FIN-4 IRS Reg §31.6001-1(e)(2), R&T IRS Reg §31.6001-1(e)(2), R&T IRS Reg §31.6001-1(e)(2), R&T IRS Reg §31.6001-1(e)(2), R&T GC §304090, 26 CFR 31.6001.1 Comments / Reference Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). 436, GC §34090436, GC §34090436, GC §34090 GC §34090GC §34090GC §34090 Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. §34090.7 (If empty, the records series addressed) Retention was not OLD AU+4AU+6AU+4 T+4T+5 P RECORDS RETENTION SCHEDULE: FINANCE Copies - When No Retention Longer Required Total 5 years5 years5 years5 years5 years5 years P Retention / Disposition Inactive (Records Center) 3 years3 years3 years3 years3 years3 years P FINANCE / PAYROLL 332 Active (in office)Copies - When No Longer Required 2 years2 years2 years2 years2 years2 years2 years duplicate and distribute upon a valid request for public records pursuant to state law Payroll Employee Files (by employee name, includes W- 4s, deductions, garnishments, and similar documents) DE-6, 941 & DE-166 Forms - Quarterly Payroll Tax Deferred Compensation (City Statements) Records Description Time Sheets / Time Cards CalPERS Reports Returns / OASDI Payroll Registers W-2 Reports W-2's Retention No. Adopted: xx/xx/xx FN-022FN-023FN-024FN-025FN-026FN-027FN-028FN-029 Ver. 8.0 Office of Finance / Finance / Finance / Human ResourcesFinance / Finance / Finance / Finance / PayrollPayrollPayrollPayrollPayrollPayrollPayroll Record (OFR) If the record is not listed here, refer to the Retention for City-Wide Standards Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. Statewide guidelines propose audit + 4 Preliminary drafts not retained in the years; Published articles show 3 - 7 Page FIN-5 ordinary course of business; GC Comments / Reference Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). GC §34090 et seq.GC §34090 et seq. years; GC §34090 §34090 et seq. GC §34090 Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. (If empty, the records series addressed) AU+4, T+4AU+4, T+4 Retention was not OLD CU+2 RECORDS RETENTION SCHEDULE: FINANCE When No Retention Longer Required Total 5 years2 years5 years5 years Retention / Disposition FINANCE / REVENUE / ACCOUNTS RECEIVABLE Inactive (Records Center) 3 years3 years3 years 333 Active (in office)When No Longer Required 2 years2 years2 years2 years duplicate and distribute upon a valid request for public records pursuant to state law Applications & Registrations and Renewal Responses, Business License Closure Letter / Confirmations Not Accounts Receivable - General - Business License Invoices to Outside Entities, and similar documents Business License Renewal Notices, Payment Stubs Transient Occupancy Tax (TOT), Parking Meters, Accounts Receivable - Leases / Rent / Property Daily Cash Receipts / Cashier Receipts Records Description Doing Business in City Management Retention No. Adopted: xx/xx/xx FN-030FN-031FN-032FN-033FN-034 Ver. 8.0 Office of Finance / Revenue Finance / Revenue Finance / Revenue Finance / Revenue Finance / Revenue Record (OFR) If the record is not listed here, refer to the Retention for City-Wide Standards Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. GC §§12946, 34090, 49 CFR 655.71 et 2 CCR 7287.0; GC §§12946, 34090 Page HR-1 GC §§12946, 34090; 29 USC 1113 Comments / Reference seq.; 49 CFR 382.401 et seq. Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). GC §§12946, 34090GC §§12946, 34090 29 CFR 1602.30 Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. GC §34090GC §34090GC §34090 (If empty, the records series addressed) Retention was not RECORDS RETENTION SCHEDULE: HUMAN RESOURCES & OLD CU+2 CL+2 When No Required - Minimum 3 When No Required - Minimum 6 When No Required - Minimum 3 Disposition Superseded Separated Retention Longer Longer Longer + 3 years Total 2 years5 years5 years3 years Final Until yearsyearsyears or Retention / Disposition Inactive (Records Center) 3 years RISK MANAGEMENT 334 Active (in office)When No Required - Minimum 3 When No Required - Minimum 6 When No Required - Minimum 3 Disposition Superseded Separated Longer Longer Longer + 3 years 2 years2 years5 years3 years Final Until yearsyearsyears or duplicate and distribute upon a valid request for public records pursuant to state law EEO-4 Reports and records required to generate EEO-4 Department of Fair Employment & Housing (DFEH or Classification / Reorganization Studies (for employee Accident Reports (Potential Claims - Accidents to Confidential Invoice Backup (not sent to Finance) Drug & Alcohol Test Results (All - Positives and Classification Specifications / Job Descriptions classifications and department structures) Records Description report (Self-Identification Form, etc.) Compensation Surveys & Studies Benefit backup, legal invoices, etc. members of the public) DMV Pull Notices EEOC) Claims Negatives) Retention No. Adopted: xx/xx/xx HR-001HR-002HR-003HR-004HR-005HR-006HR-007HR-008HR-009 Ver. 8.0 Office of Human ResourcesHuman ResourcesHuman ResourcesHuman ResourcesHuman ResourcesHuman ResourcesHuman ResourcesHuman ResourcesHuman Resources Record (OFR) If the record is not listed here, refer to the Retention for City-Wide Standards Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. OSHA requires 5 years; State law requires 2 years; 8 CCR §3203(b)(1), GC §34090; 29 CFR 1602 et seq & 1627.3(a)(5) and (6), 2 CCR 7287.0(c)(2), GC §§12946, Page HR-2 GC §§12946, 34090; 29 USC 1113 Comments / Reference GC §§12946, 34090, 53235.2(b) Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). GC §§12946, 12960, 34090 GC §§12946, 34090GC §§12946, 34090 LC §6429(c) GC §34090 GC §34090 Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. GC §34090GC §34090 34090 (If empty, the records series addressed) Retention was not RECORDS RETENTION SCHEDULE: HUMAN RESOURCES & (none) OLD CL+3 T+7 PP Separation + Separation + Separation Retention 10 years Total Upon 6 years3 years 5 years2 years3 years5 years PPP Retention / Disposition Inactive (Records Center) 3 years3 years RISK MANAGEMENT PPP 335 Active (in office)Separation + Separation + When No SeparationSeparation + Separation + Longer Required 10 years Upon 6 years3 years 2 years2 years3 years2 years 1 year1 year duplicate and distribute upon a valid request for public records pursuant to state law (Negotiation Notes, Correspondence, Interpretation of Includes Pre-employment physicals, Respirator Fit Tests, etc.(Includes Advertisements, Job Brochures, Test Data, Testing OSHA Inspections & Citations, Log 200 and Log 300, Grievances, Investigations, and Informal Complaints Insurance Policies: General Liability, Property, etc. Analysis & statistical Metric, Job Analysis, Rating Sheets, Scantrons, Rater's Profile & Confidentiality Agreement, File (all employees) Records Description MOU Provisions, Documentation, etc.) Employees Recruitment and Testing File Safety Committee Agendas Livescan Clearance Sheets Flowchart, Eligible Lists, etc.) Medical Labor Relations Files Livescan Applications Personnel Files - Personnel Files - 301, 301A, etc. I-9s Retention No. Adopted: xx/xx/xx HR-010HR-011HR-012HR-013HR-014HR-015HR-016HR-017HR-018HR-019HR-020 Ver. 8.0 Office of Human ResourcesHuman ResourcesHuman ResourcesHuman ResourcesHuman ResourcesHuman ResourcesHuman ResourcesHuman ResourcesHuman ResourcesHuman ResourcesHuman Resources Record (OFR) If the record is not listed here, refer to the Retention for City-Wide Standards Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. 8 CCR §3204(d)(1) et seq., 8 CCR 10102, Page HR-3 Comments / Reference 15400.2; GC §§12946, 34090 Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). GC §34090 Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. (If empty, the records series addressed) Retention was not RECORDS RETENTION SCHEDULE: HUMAN RESOURCES & OLD P When No Required - Minimum 3 Retention Longer Total years P Retention / Disposition Inactive (Records Center) RISK MANAGEMENT P 336 Until Closed Active (in office)When No Required - Minimum 3 Longer years duplicate and distribute upon a valid request for public records pursuant to state law Workers' Compensation / Employee Accident Reports Studies & Surveys Conducted on Behalf of the City associated MSDS, Refusal of Medical Treatment of an Includes all Accident, Incident, or Injury Reports and Records Description (Sick Leave, Attrition, Benefits, etc.) Industrial Accident Retention No. Adopted: xx/xx/xx HR-021HR-022 Ver. 8.0 Office of Human ResourcesHuman Resources Record (OFR) If the record is not listed here, refer to the Retention for City-Wide Standards Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. Used for Disaster Recovery Purposes Used for Disaster Recovery Purposes Preliminary documents not retained in the ordinary course of business; GC Preliminary documents not retained in the ordinary course of business; GC Page IT-1 Comments / Reference Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). Only; GC §34090 et seq.Only; GC §34090 et seq. §34090 et seq.§34090 et seq. Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. (If empty, the records series addressed) Retention was not RECORDS RETENTION SCHEDULE: INFORMATION TECHNOLOGY OLD CU+2CU+2CU+4 S+2 When No When No When No When No Retention Longer Longer Longer Longer RequiredRequiredRequiredRequired Total Retention / Disposition Inactive (Records When No Required Longer Center) Active (in office)When No Required When No When No Longer Longer Longer RequiredRequired 337 duplicate and distribute upon a valid request for public records pursuant to state law Records Description Network Configuration Maps & Plans Weekly / Monthly Inventory, Information Systems Daily Backup Tapes - Backup Tapes - Retention No. Adopted: xx/xx/xx IT-001IT-002IT-003IT-004 Ver. 6.0 Office of Information TechnologyInformation TechnologyInformation TechnologyInformation Technology Record (OFR) Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. Department Preference (Transitory record Litigation, claims, complaints, audits, public records requests, and/or investigations suspend normal retention periods (retention resumes after settlement). not retained in the ordinary course of Page P&R-1 Comments / Reference Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may GC §§34090, 54960.1(c)(1) business); GC §34090 GC §34090 et seq.GC §34090 et seq. Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. GC §34090.7 GC §34090GC §34090GC §34090GC §34090GC §34090 If the record is not listed here, refer to the Retention for City-Wide Standards (If empty, the records series addressed) Retention was not RECORDS RETENTION SCHEDULE: PARKS & RECREATION OLD CU+2CU+2CU+2 When No Required - Minimum 2 Completion + When No When No Required - Minimum 2 Retention Longer Longer Longer Required Total 5 years2 years5 years5 years2 years2 years 1 year yearsyears Retention / Disposition Inactive (Records 5 years Center) 3 years3 years 338 Completion Active (in office)When No Required - Minimum 2 When No When No - Minimum 2 Required Longer Longer Longer Required 2 years2 years2 years2 years2 years 1 year duplicate and distribute upon a valid request for public records pursuant to state law yearsyears Bingo, Children's Programs, Cultural Arts, Sports, Senior Programs, Filming, Theatre Programs and Contractor's Payment Detail / Breakdown (not sent (Accident reports are sent to Human Resources / Facility Use Rental Contracts / McClellan Ranch Activity / Special Programs / Special Event Files(all other agreements are sent to the City Clerk) Evaluations / Surveys (Program or Facility Credit Card Refunds (not sent to Finance) Cash Receipts (all detail sent to Finance)Preserve Garden Plot Rental Agreements Records Description AGENDAS, AGENDA PACKETS Parks & Recreation Commission Check In List / Drop-in Classes Athletic Field Use Agreements Risk Management) similar documents First Aid Reports Evaluations) to Finance) Retention No. Adopted: xx/xx/xx P&R-001P&R-002P&R-003P&R-004P&R-005P&R-006P&R-007P&R-008P&R-009P&R-010 Ver. 8.0 Office of Parks & Parks & Parks & Parks & Parks & Parks & Parks & Parks & Parks & Finance Record (OFR) Rec.Rec.Rec.Rec.Rec.Rec.Rec.Rec.Rec. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. OMB Circular A-110 & A-133; GC §34090 Litigation, claims, complaints, audits, public records requests, and/or investigations suspend normal retention periods (retention resumes after settlement). Send all originals to the City Clerk; GC Page P&R-2 Comments / Reference Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may GC §34090 et seq. GC §54953.5(b) Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. GC §34090GC §34090GC §34090GC §34090GC §34090GC §34090 If the record is not listed here, refer to the Retention for City-Wide Standards §34090.7 (If empty, the records series CU+3 Mos. addressed) Retention was not RECORDS RETENTION SCHEDULE: PARKS & RECREATION OLD 30 days, or After Minutes are Adopted, Whichever is Copies - When No Inactive + 5 Retention Longer Longer RequiredIndefinite Total 5 years3 years2 years5 years4 years2 years years Retention / Disposition Inactive (Records Center) 3 years 339 Active (in office)30 days, or After Minutes are Adopted, Whichever is Copies - When No Inactive + 5 Longer Longer RequiredIndefinite 2 years3 years2 years5 years4 years2 years duplicate and distribute upon a valid request for public records pursuant to state law years Forms / Membership Applications / Fee & Charge / of Meetings / Audio Tapes Sign-in / Sign-out sheets (Day camp, and similar Field Trips, Authorization to give Medicine, and Permissions / and similar documents: Camps, Registration / Reservation Forms / Application Liability Forms / Release of Liability Forms / Senior Memberships (renewed annually) Records Description Rec Bucks Log / Rec Checks Log Parks & Recreation CommissionParks & Recreation Commission Senior Trips / Travel Program Senior Client Case Files Senior Nutrition Program AUDIO RECORDINGS Recreation Database similar documents documents) MINUTES Retention No. Adopted: xx/xx/xx P&R-011P&R-012P&R-013P&R-014P&R-015P&R-016P&R-017P&R-018P&R-019P&R-020 Ver. 8.0 City Clerk Office of Parks & Parks & Parks & Parks & Parks & Parks & Parks & Parks & Parks & Record (OFR) Rec.Rec.Rec.Rec.Rec.Rec.Rec.Rec.Rec. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. Litigation, claims, complaints, audits, public records requests, and/or investigations suspend normal retention periods (retention resumes after settlement). Send all originals to the City Clerk; GC Page P&R-3 Comments / Reference Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may GC §§34090, 54960.1(c)(1) Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. GC §34090 If the record is not listed here, refer to the Retention for City-Wide Standards §34090.7 (If empty, the records series addressed) Retention was not RECORDS RETENTION SCHEDULE: PARKS & RECREATION OLD CU+2 When No Required - Minimum 2 Copies - When No Retention Longer Longer Required Total 2 years years Retention / Disposition Inactive (Records Center) 340 Active (in office)When No - Minimum 2 Copies - When No Required Longer Longer Required 2 years duplicate and distribute upon a valid request for public records pursuant to state law years Records Description AGENDAS, AGENDA PACKETS. MINUTES & BYLAWS Waivers of Liability Teen CommissionTeen Commission Retention No. Adopted: xx/xx/xx P&R-021P&R-022P&R-023 Ver. 8.0 City Clerk Office of Parks & Parks & Record (OFR) Rec.Rec. If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. Page PW-1 Comments / Reference GC §§34090, 54960.1(c)(1) Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may GC §54953.5(b) GC §34090GC §34090GC §34090GC §34090 OLD Retention (If empty, the records series was not addressed) CU+3 Mos. CU+2 CU+2 CL+2, P P RECORDS RETENTION SCHEDULE: PUBLIC WORKS When No Required - Minimum 2 30 days, or After Minutes are Adopted, Whichever is Retention Longer Longer Total years PPPP Retention / Disposition Inactive (Records Center) PUBLIC WORKS / ENGINEERING Active When No - Minimum 2 30 days, or After Minutes are Adopted, Whichever is (in office) Required 341 Longer Longer years PPPP duplicate and distribute upon a valid request for public records pursuant to state law of Meetings / Audio Tapes Aerial Maps / Photographs - Analog or Digital & Lighting / Street Improvement District Projects / Districts / Maintenance Districts / Landscape & (FORMATION, BOUNDARIES, ENGINEERS Benchmarks, Center Line Ties, Survey Books Assessment Districts / Community Facilities Records Description Abandonments / Vacations (Streets) AGENDAS, AGENDA PACKETS. Bicycle Pedestrian CommissionBicycle Pedestrian Commission Underground Utility Districts AUDIO RECORDINGS REPORTS, MAPS) Index to Aerials Retention No. Adopted: xx/xx/xx PW-001PW-002PW-003PW-004PW-005PW-006 Ver. 10.0 Office of Public Works / EngineeringPublic Works / EngineeringPublic Works / EngineeringPublic Works / EngineeringPublic Works / EngineeringPublic Works / Engineering Record (OFR) If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. Send all originals to the City Clerk; Completion is issued and released schedule, which is fully released 1 year after the Notice of Completion Securities (Performance Bonds, Letters of Credit, CD's, etc.) are according to the bond release Page PW-2 Comments / Reference released after the Notice of Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may GC §34090 et seq. date; GC §34090 GC §34090.7 GC §34090 OLD Retention (If empty, the records series was not addressed) CL+10 CL+2 RECORDS RETENTION SCHEDULE: PUBLIC WORKS When No Release of Completion + 10 years or After Funding Agency Audit, if required, whichever is Copies - Security Retention Longer Required Bond / Total 2 years longer Retention / Disposition Inactive (Records 10 years or Funding Agency Audit, if required, whichever is Center) longer After Active When No Release of Completion (in office) Copies - Security 342 Longer Required Bond / Upon 2 years duplicate and distribute upon a valid request for public records pursuant to state law Construction Bonds / Subdivision Bonds Budget, Bid Set and Conform Set of Drawings, Estimates, Advertisement / Notice Inviting Bids / Bid Results, Project Notices, Council or Commission Staff Reports & Minutes, Progress Payments, Project Schedules, Meeting Notes, Administration, Certified Payrolls, Correspondence / Progress meetings, Public Information Real Estate Preliminary Notices / Stop Notices, Presentations, Records Description Capital Improvement Projects (CIP): Appraisals, Bond Release Letters, etc. Bicycle Pedestrian Commission MINUTES & BYLAWS Administration File Block Party Permits Bonds: Retention No. Adopted: xx/xx/xx PW-007PW-008PW-009PW-010 Ver. 10.0 Office of Public Works / EngineeringPublic Works / EngineeringPublic Works / Engineering City Clerk Record (OFR) If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. Finals are maintained by City Clerk; Page PW-3 Comments / Reference Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may GC §34090 et seq. GC §34090GC §34090GC §34090GC §34090 OLD Retention (If empty, the records series was not addressed) CL+10 CL+2 PP RECORDS RETENTION SCHEDULE: PUBLIC WORKS When No Required - Minimum 10 Retention Longer Total 2 years years PPP Retention / Disposition Inactive (Records Center) P Active When No Required - Minimum 10 Completion (in office) 343 Longer Upon 2 years years PP duplicate and distribute upon a valid request for public records pursuant to state law Plans, Specifications & Addenda, Agreement / Contract, Environmental / EIRs, Negative Declarations, Categorical Hazardous Materials Plans, Notice of Completion, Photos, Unsuccessful Permanent Real Property Acquisitions, RFIs & Responses, Soils Exemptions, Field Authorizations, Materials Testing Successful Proposal, Change Orders, Construction Reports, Grading Permits, Insurance Certificates, Manager's Logs, Daily Inspections, Easements, Regulatory Agencies Reports, Studies, Submittals, Surveys, etc. Records Description Capital Improvement Projects (CIP): Capital Improvement Projects (CIP): Design & Construction Standards Correspondence - Deeds, Easements Proposals File Retention No. Adopted: xx/xx/xx PW-011PW-012PW-013PW-014PW-015 Ver. 10.0 Lead Dept.Lead Dept. Office of Public Works / EngineeringCity Clerk & Public Works / Engineering Public Works / Engineering Record (OFR) If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. correspondence; GC §34090 et seq. warranty, Minimum 2 years after If work performed is subject to a Drafts should be destroyed; GC expiration of the warranty; GC Page PW-4 Comments / Reference Department file may include Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may §34090, 34090.7 GC §34090GC §34090GC §34090GC §34090 §34090 OLD Retention (If empty, the records series was not addressed) PPPPP RECORDS RETENTION SCHEDULE: PUBLIC WORKS When No Required - Minimum 2 When No Required - Minimum 2 Retention Longer Longer Total yearsyears PPPPP Retention / Disposition Inactive (Records Center) Active When No Required - Minimum 2 When No Required - Minimum 2 (in office) 344 Longer Longer yearsyears PPPPP duplicate and distribute upon a valid request for public records pursuant to state law Street Permits, Temporary Construction, Traffic Engineering Studies / Surveys - Preliminary Studies Geotechnical and Soils Reports; Hydrology Reports Engineering Studies / Surveys (City Built Projects) Large-Format Drawings, Survey Record Maps, Public Right of Way, Drawings, Maps, Plans and Record Drawings, Not Acquired or Capital Improvement Project "As-Builts" Records Description Permanent (Authored or Purchased by the City) Control, Utility Cuts etc. Encroachment Permits - Encroachment Permits - Grading Permits & Plans / Project Assessments ( Encroachments ) Developed FINALS Retention No. Adopted: xx/xx/xx PW-016PW-017PW-018PW-019PW-020PW-021PW-022 Ver. 10.0 Office of Public Works / EngineeringPublic Works / EngineeringPublic Works / EngineeringPublic Works / EngineeringPublic Works / EngineeringPublic Works / EngineeringPublic Works / Engineering Record (OFR) If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. Preliminary drafts; GC §34090 et Page PW-5 Comments / Reference Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may GC §34090GC §34090 seq. OLD Retention (If empty, the records series was not addressed) P RECORDS RETENTION SCHEDULE: PUBLIC WORKS When No Completion + 10 years Retention Longer Required Total P Retention / Disposition 10 years Inactive (Records Center) P Active When No CompletionCompletion (in office) 345 Longer Required Upon Upon duplicate and distribute upon a valid request for public records pursuant to state law Driveway, Easements, Encroachments, Final Reports, Rights of Way, Stormwater, Testing Lab Verifications, Alignment, Specific Plans, Split Lots, Subdivisions, Tracts, Construction Inspections, Dedications, Drainage, Examples of types of Private Development Projects: Examples of types of Private Development Projects: Grading Plans, Photos, Private Lab Verifications, CUPs, Lot Line Adjustments, Parcel Maps, Precise CUPs, Lot Line Adjustments, Parcel Maps, Precise Alignment, Specific Plans, Split Lots, Subdivisions, Private Development Projects / Job Files: Private Development Projects / Job Files: Correspondence, Project Schedules, etc. Records Description Plan Checks for Building Permits Administration File Tracts,. TPMs, TSMs Permanent Files TPMs, TSMs etc. Retention No. Adopted: xx/xx/xx PW-023PW-024PW-025 Ver. 10.0 Office of Develop. / Public Works / EngineeringPublic Works / Engineering Comm. Building Record (OFR) If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. other departments, depending upon Send all originals to the City Clerk; Final agreements are maintained by Finals are maintained by City Clerk; correspondence; GC §34090 et seq. Initiative, Recall or Referendum May be sent to Public Works or the subject of the petition; For Page PW-6 City Clerk; GC §34090 et seq. Comments / Reference Department file may include petitions, see the City Clerk GC §§34090, 54960.1(c)(1) Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may schedule GC §34090 GC §54953.5(b) GC §34090.7 OLD Retention (If empty, the records series was not addressed) CU+3 Mos. CU+2 CL+10 P RECORDS RETENTION SCHEDULE: PUBLIC WORKS When No Required - Minimum 2 30 days, or After Minutes are Adopted, Whichever is When No Copies - Retention Longer Longer Longer Required Total 2 years years PP Retention / Disposition Inactive (Records Center) Active When No - Minimum 2 30 days, or After Minutes are Adopted, Whichever is When No (in office) Copies - Required 346 Longer Longer Longer Required 2 years years PP duplicate and distribute upon a valid request for public records pursuant to state law related to a proposed project ). Examples: parking of Meetings / Audio Tapes Project-related Petitions (submitted to Council requests, traffic calming requests, etc. Records Description AGENDAS, AGENDA PACKETS. Rights of Ways, Covenants, Liens Real Property Acquisitions / Sale Public Safety CommissionPublic Safety CommissionPublic Safety Commission AUDIO RECORDINGS MINUTES & BYLAWS Retention No. Adopted: xx/xx/xx PW-026PW-027PW-028PW-029PW-030PW-031 Ver. 10.0 Office of Public Works / EngineeringPublic Works / EngineeringPublic Works / EngineeringCity Clerk & Public Works / Engineering Engineering Works / City Clerk Public Record (OFR) If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. 40 CFR §§122.21, 122.41; CCP 40 CFR §§122.21, 122.41; CCP Page PW-7 Comments / Reference Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may §337 et seq.§337 et seq. GC §34090 OLD Retention (If empty, the records series was not addressed) CU+2 P RECORDS RETENTION SCHEDULE: PUBLIC WORKS When No Required - Minimum 3 Superseded + Retention Longer Permit 10 years Total 3 years years Retention / Disposition PUBLIC WORKS / ENVIRONMENTAL SERVICES Inactive (Records Center) Active When No Required - Minimum 3 Superseded + (in office) 347 Longer Permit 10 years 3 years years duplicate and distribute upon a valid request for public records pursuant to state law Compliance; Reports to California integrated Waste NPDES Monitoring and Inspections - Stormwater Environmental Services / Solid Waste / AB 939 Management Board, Tonnage Reports, etc. Records Description NPDES Permits - Stormwater Retention No. Adopted: xx/xx/xx PW-032PW-033PW-034 Ver. 10.0 Office of Public Works / Environ. Public Works / Environ. Public Works / Environ. ServicesServicesServices Record (OFR) If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. Preliminary drafts not retained in the Preliminary drafts not retained in the ordinary course of business; GC ordinary course of business; GC Drafts should be destroyed; GC Page PW-8 Comments / Reference Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may GC §34090GC §34090GC §34090GC §34090 §34090§34090§34090 OLD Retention (If empty, the records series was not addressed) CL+2, L CL+2 S+2 RECORDS RETENTION SCHEDULE: PUBLIC WORKS Superseded When No Required - Minimum 5 When No Required - Minimum 2 When No When No When No Required - Minimum 2 Retention Longer Longer Longer Longer Longer RequiredRequired Total Until yearsyearsyears P Retention / Disposition PUBLIC WORKS / TRAFFIC ENGINEERING Inactive (Records Center) Superseded Active When No Required - Minimum 5 When No Required - Minimum 2 When No When No When No Required - Minimum 2 (in office) 348 Longer Longer Longer Longer Longer RequiredRequired Until yearsyearsyears P duplicate and distribute upon a valid request for public records pursuant to state law Traffic Studies / Traffic Counts / Traffic Calming Traffic Signals (locations, inspections, pole & Records Description Traffic Signal Inventory / Timing Traffic Signal Cabinet Prints Studies - Transportation structure maintenance) Traffic Speed Surveys Traffic Complaints Requests Retention No. Adopted: xx/xx/xx PW-035PW-036PW-037PW-038PW-039PW-040PW-041 Ver. 10.0 Office of Public Works / EngineeringPublic Works / EngineeringPublic Works / EngineeringPublic Works / EngineeringPublic Works / EngineeringPublic Works / EngineeringPublic Works / Engineering Record (OFR) If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. course of business; GC §34090 et operations of the City; Preliminary drafts not retained in the ordinary Does not record regular, ongoing should be destroyed; GC §34090 Department preference; Drafts Page PW-9 Comments / Reference Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may seq. OLD Retention (If empty, the records series was not addressed) S+2 RECORDS RETENTION SCHEDULE: PUBLIC WORKS When No Retention Longer Required Total P Retention / Disposition Inactive (Records Center) When No Active (in office) 349 Longer Required P duplicate and distribute upon a valid request for public records pursuant to state law Transportation Master Plans / Traffic Master Plans Records Description Videos - Traffic / Intersections Retention No. Adopted: xx/xx/xx PW-042PW-043 Ver. 10.0 Office of Public Works / EngineeringPublic Works / Engineering Record (OFR) If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. 3204(d)(1)(A), 22 CCR 66262.40 Page PW-10 Comments / Reference Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). 40 CFR 262.40, 8 CCR Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may 8 CCR §5158 GC §34090GC §34090GC §34090GC §34090GC §34090GC §34090 OLD Retention (If empty, the records series was not addressed) CU+10 RECORDS RETENTION SCHEDULE: PUBLIC WORKS Current + 2 When No Required - Minimum 10 Retention Longer 10 years Total 2 years3 years5 years3 years years years P Retention / Disposition Inactive (Records Center) PUBLIC WORKS / OPERATIONS P Active Current + 2 When No Required - Minimum 10 (in office) 350 Longer 10 years 2 years3 years5 years3 years5 years years years duplicate and distribute upon a valid request for public records pursuant to state law Generator Operation Logs (for fixed / stationary Daily Worksheets / Daily Logs (document tree Alternative Fuel Vehicles Surveys (CNG, etc.) Hazardous Waste Manifests / Certificates of Regulatory Agencies Records Description Fuel and Gas Usage (Fuel Master) AQMD Permits (Generators, etc.) trimming, sidewalk repair, etc.) Confined Space Entries generators) / Inspections Correspondence - Disposal Retention No. Adopted: xx/xx/xx PW-044PW-045PW-046PW-047PW-048PW-049PW-050PW-051 Ver. 10.0 Lead Dept. Office of Public Works / OperationsPublic Works / OperationsPublic Works / OperationsPublic Works / OperationsPublic Works / Operations Public Works / OperationsPublic Works / Operations Record (OFR) & Fire 23 CCR 2712(b); H&S §25284.4(i)23 CCR 2712(b), H&S §25284.4(i) If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. GC §26202; 3 CCR 6623, 40 CFR 8 CCR §3204(d)(1) et seq., GC Page PW-11 Comments / Reference Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may §§12946, 34090 171.11 et seq. GC §34090GC §34090GC §34090 OLD Retention (If empty, the records series was not addressed) CU+2 CU+2 CU+2 RECORDS RETENTION SCHEDULE: PUBLIC WORKS Life of Facility or Equipment - Minimum 2 Life of the Retention 30 years 2 years Total 2 years5 years7 years years Tank Retention / Disposition Inactive (Records Center) Active Life of Facility or Equipment - Minimum 2 Life of the (in office) 351 30 years 2 years2 years5 years7 years years Tank duplicate and distribute upon a valid request for public records pursuant to state law Operations & Maintenance Manuals (O&M Manuals) Pool Chemical Additions / Logs (Chlorine, Muriatic Inspections / Vehicle Safety Checks / Daily Vehicle UST Monitoring, Inspections and Maintenance, Release Detection Systems, Cathodic Protection Underground Storage Tanks - USTs (City Owned) Pre-Trip Inspections / DOT Program / CHP Underground Storage Tank (City Owned) Inspections / Daily Equipment Checks Records Description Underground Service Alerts (USA's) Repairs, Lining, Upgrade Records Pesticide Application Records Maintenance Records Acid) Retention No. Adopted: xx/xx/xx PW-052PW-053PW-054PW-055PW-056PW-057PW-058 Ver. 10.0 Office of Public Works / OperationsPublic Works / OperationsPublic Works / OperationsPublic Works / OperationsPublic Works / OperationsPublic Works / Operations Public Works / Operations Record (OFR) & Fire& Fire If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. 23 CCR 2712(b), H&S §25284.4(i); 396.21(b)(1); 49 CFR 396.3(c); CCP Preliminary drafts (the database is §25250.18(b), 25250.19(a)(3) et 22 CCR 66266.130(c)(5), H&S Data is interrelated; GC §34090 Page PW-12 Comments / Reference 8 CCR § 3203(b)(1); 49 CFR Data Fields / Records are Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). §337 et. Seq., GC §34090 the original); GC §34090 Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may interrelated; GC §34090 GC §34090 et. seq. GC §34090 seq. OLD Retention (If empty, the records series was not addressed) P RECORDS RETENTION SCHEDULE: PUBLIC WORKS Indefinite Disposal of Vehicle or Equipment + When No Retention Longer IndefiniteRequired Total 3 years2 years2 years P Retention / Disposition Inactive (Records Center) P Active Indefinite Disposal of Vehicle or Equipment + When No (in office) 352 Longer IndefiniteRequired 10 years 3 years2 years2 years duplicate and distribute upon a valid request for public records pursuant to state law All Information Underground Storage Tanks (City-Owned) (Computerized Maintenance CMMS Maintenance, Crane Certifications, Smog Location, Removal, Soil Remediation, Vehicle Accident Reports (City Vehicles) Records Description Work Orders / Service Requests - Work Orders / Service Requests Vehicle & Equipment History Files Database Entered in CMMS Database Monitoring Well Records Certificates, Registrations Management System) Vehicle & Equipment Used Oil Disposal DATABASE Retention No. Adopted: xx/xx/xx PW-059PW-060PW-061PW-062PW-063PW-064PW-065 Ver. 10.0 Office of Public Works / Operations Public Works / OperationsPublic Works / OperationsPublic Works / OperationsPublic Works / OperationsPublic Works / OperationsPublic Works / Operations Record (OFR) & Fire If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder. Copies, drafts, notes and non-records do not require authorization, and can be destroyed when they are no longer required. CCP §§338 et seq., 340 et seq., Page PW-13 Comments / Reference 342, GC §§945.6, GC §34090 Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion). Cupertino, CA This material is protected by copyright held by Gladwell Governmental Services, Inc., (909) 337-3516, but is also a public record, which the City may OLD Retention (If empty, the records series was not addressed) CU+2 RECORDS RETENTION SCHEDULE: PUBLIC WORKS Retention Total 5 years Retention / Disposition Inactive (Records Center) Active (in office) 353 5 years duplicate and distribute upon a valid request for public records pursuant to state law NOT entered in (or partial information entered into (Division providing service retains originals; Division requesting service is considered a copy) Records Description Work Orders / Service Requests - CMMS Database) CMMS Database Retention No. Adopted: xx/xx/xx PW-066 Ver. 10.0 Office of Public Works / Operations Record (OFR) RESOLUTION NO. 12-039 A RESOLUTION OF THE CUPERTINO CITY COUNCIL AMENDING THE CITY OF CUPERTINO RECORDS RETENTION SCHEDULE TO ADD SPECIFIC RECORD TYPES AND EXTEND TIMELINES ON CERTAIN RECORD TYPES WHEREAS, on March 4, 2002, the Cupertino City Council adopted Resolution No. 02-037 adopting the Local Government Retention Guidelines Administered by the California State Archives Division of the Secretary of State’s office as the records retention schedule for the City of Cupertino; and WHEREAS, the City of Cupertino has decided that some records should be added and some records should be retained on a longer schedule than specified by the Local Government Retention Guidelines for ease of locating documents and responding to public requests, as well as retaining for historical purposes. NOW, THEREFORE, BE IT RESOLVEDthat the following items are added to the City of Cupertino records retention schedule: 1. Permits (massage, solicitor, handbill, and taxi) with a retention of CL + 2 2. Claims for State mandate reimbursements to be kept 3 years from the date of payment from the Secretary of State 3. City Manager’s Annual Report to be kept as a permanent record beginning with the report dated August 19, 2002 NOW, THEREFORE, BE IT RESOLVED that the following items have a longer retention period: RECORD TYPE PREVIOUS RETENTION CURRENT RETENTION Council and Planning CU + 2 P (in Laserfiche system) Commission packets (agendas and staff reports) Planning Department general CU + 2CU + 3 subject files Contracts and agreements T + 5 P (excluding capital improvement items which are already a permanent record) Case files (including CL + 2 CU + 5 (for potential building, property & zoning litigation and violations) investigated by interdepartmental efficiency) Code Enforcement LEGEND CU = Current Year P = Permanent CL = Closed/Completion T = Termination 354 Resolution No. 12-039 NOW, THEREFORE, BE IT RESOLVED that the Cupertino City Council hereby rescinds Resolution No. 02-037 and adopts the current resolution to include the changes to Cupertino’s records retention schedule as noted above. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 1st day of May, 2012 by the following vote: Vote Members of the City Council AYES: Santoro, Mahoney, Chang, Sinks, Wong NOES: None ABSENT: None ABSTAIN: None ATTEST: APPROVED: /s/Grace Schmidt /s/Mark Santoro ___________________________ ________________________________ Grace Schmidt, Acting City Clerk Mark Santoro, Mayor, City of Cupertino 2 355 356 357 358 359 360 361 362 363 364 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 380 381 382 383 384 385 386 387 388 389 390 391 392 393 394 395 396 397 398 399 ADMINISTRATIVE SERVICES DEPARTMENT CITY HALL 10 10300 TORRE AVENUE CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3220 www.cupertino.org CITYCOUNCILSTAFFREPORT Meeting:November19,2013 Subject "¯º¯À«´¹ȟOptionforPublicSafety(COPS)ProgramFundsof$100,000 RecommendedAction AdoptResolutiontoapprovethe201314COPSgrantfundingrequest. Description TheStateDepartmentofFinanceannouncedtheallocationofthe201314"¯º¯À«´¹ȟ OptionforPublicSafetygrantforfrontlinelawenforcementpurposestocitiesand countiesinproportiontotheirrespectivepopulations,withaminimumallocationof $100,000perjurisdiction.TheStatefundsthisannualgrantwithvehiclelicensefees thatwereformerlypaidtocities. CitiesarerequiredtoappropriateCOPSrevenuestofundfrontlinemunicipalpolice services.Thiscanincludeantigangandcommunitycrimepreventionprograms.The fundsaretobeappropriatedpursuanttoawrittenrequestfromtheChiefofPoliceor theChiefAdministratorofthelawenforcementagencythatprovidespoliceservicesfor thatcity.Asinpreviousyears,CaptainKennethBinderhasrequestedthatthe$100,000 beusedtopartiallyfundasecondSchoolResourceOfficerforthe201314schoolyear. TheFremontUnionHighSchoolDistrictandCupertinoUnionSchoolDistrictwilleach contribute$10,000tocoveradditionalhoursforthesecondofficer.Thegrant,district contributions,andexpenditurearealreadyinthe201314Cityadoptedbudget. _____________________________________ Preparedby:DavidWoo,FinanceDirector Reviewedby:CarolAtwood,DirectorofAdministrativeServices ApprovedforSubmissionby:DavidBrandt,CityManager Attachments: ADraftResolution 400 1$2.+43(.--.ȎŴŶ ARESOLUTIONOFTHECITYCOUNCILOFTHECITYOF CUPERTINOAPPROVINGREQUESTFROMCHIEFOFPOLICEFORUSE OFTHE"(3(9$-2ȟOPTIONFORPUBLIC SAFETY(COPS)PROGRAMFUNDSOF$100,000 WHEREAS,theStateDepartmentofFinancehasallocatedCitizensOptionfor PublicSafety(COPS)grantsforfrontlinelawenforcementpurposestocitiesand counties,inproportiontotheirrespectivepopulations,withaminimumof$100,000per jurisdiction;and WHEREAS,theStatehasdeterminedthattheCityofCupertinoshouldreceive theminimum$100,000allocationforfiscalyear201314;and WHEREAS,citiesarerequiredtoappropriateCOPSrevenuestofundfrontline municipalpoliceserviceswhichcanincludeantigangandcommunitycrime preventionprograms;and WHEREAS,thesefundsaretobeappropriatedpursuanttoawrittenrequest fromtheChiefofPoliceortheChiefAdministratorofthelawenforcementagencythat providespoliceservicesforthatcity;and WHEREAS,theCaptainofthe2®«¸¯¬¬ȟ¹Office,WestValleyDivision,inhisrole asChiefofPolice,hasrequestedthattheCOPSfundsbeusedtopartiallyfundasecond SchoolResourceOfficer. NOW,THEREFORE,BEITRESOLVEDthattheCityCounciloftheCityof CupertinoherebyapprovestheChiefof/µ²¯©«ȟ¹requestfortheexpenditureofCOPS funds. PASSEDANDADOPTEDataregularmeetingoftheCityCounciloftheCityof Cupertinothis19dayofNovember2013,bythefollowingvote: th VoteMembersoftheCityCouncil AYES: NOES: ABSENT: ABSTAIN: 401 ResolutionNo.13Page2 ATTEST:APPROVED: ____________________________________________ GraceSchmidt,CityClerkOrrinMahoney,Mayor,CityofCupertino 402 COMMUNITYDEVELOPMENTDEPARTMENT CITYHALL 10300TORREAVENUEȧCUPERTINO,CA950143255 TELEPHONE:(408)7773308www.cupertino.org CITYCOUNCILSTAFFREPORT Meeting:November19,2013 Subject SecondReadingoftheDevelopmentAgreementandRezoningordinancestoallowthe developmentofanoffice,researchanddevelopmentcampuswithassociatedancillaryuses. RecommendedAction Conductthesecondreadingof: 1.OrdinanceNo.132113:Ƞ ´OrdinanceOfTheCupertinoCityCouncilapprovingthe Rezoningofanapproximately1.1acreareafromParkRecreation(PR)toPlanned IndustrialPark(P(MP))locatedatAPN31606050and31606ųŸŴȡand 2.OrdinanceNo.132114:Ƞ.¸ª¯´§´©«oftheCityCounciloftheCityofCupertinorepealing OrdinanceNo.1702andapprovinganewDevelopmentAgreementbyandbetweenthe CityofCupertinoandAppleInc.forthedevelopmentofanewcorporate©§³¶»¹Ȍȡ Description Applications:EA201112,Z201103,DA201101 Applicant:AppleInc.(DanWhisenhunt) PropertyOwner:AppleInc. Location:AreaboundedbyEastHomesteadRoad,NorthTantauAvenue,I280, NorthWolfeRoadincludingpropertieslocatedontheeastsideofNorth TantauAvenue. Discussion CouncildiscussedtheseitemsatitsOctober15,2013meeting.TheCouncilapprovedtheproject andconductedthefirstreadingofboththeZoningandDevelopmentAgreementordinancesat thismeeting,withanamendmenttotheDevelopmentAgreementordinance. TheCityCouncilrequestedthatanadditionalterm,regardingfundingforatransportation studyofWolfeRoadbetweenHomesteadRoadandStevensCreekBoulevard,beaddedtothe DevelopmentAgreement.AppleagreedtothisadditionaltermattheCouncilhearing.This termhasbeenaddedtotheDevelopmentAgreement.SincethisnewDevelopmentAgreement termislimitedtofundingafuturestudy,noadditionalenvironmentalanalysiswasrequired andnochangesweremadetotheEnvironmentalImpactReport(EIR)forthedevelopmentof theAppleCampus2. 403 NochangeshavebeenmadetotheZoningordinanceandnoothersubstantivechanges,other thanthosediscussedabove,havebeenmadetotheDevelopmentAgreementordinancesince thefirstreading.PagesfromtheDevelopmentAgreementshowingtheeditsmadeinredlines, havebeenincludedasAttachmentCC3. TheCityhascontinuedtoreceivecommentsontheprojectandtheEIR.AmemofromLSA Associates,theenvironmentalconsultantontheproject,findsthatnonewinformationhasbeen presentedthatwarrantsanychangestotheEIR(seeAttachmentCC4.)Commentsreceived afterNovember4,2013until3:00p.m.onNovember19,2013shallbepresentedasadeskitem. Preparedby:PiuGhosh,AICP,SeniorPlanner Reviewedby:AartiShrivastava,DirectorofCommunityDevelopment ApprovedforSubmissionby:DavidBrandt,CityManager Attachments: CC1.OrdinanceNo.132113 CC2.OrdinanceNo.132114 CC3.RedlinedpagesofDevelopmentAgreement CC4.MemofromLSAregardinglatecommentsreceivedbetween3:00p.m.onOctober15, 2013andNovember4,2013. 404 ATTACHMENT CC-1 ORDINANCE NO. 13-2113 AN ORDINANCE OF THE CUPERTINO CITY COUNCIL APPROVING THE REZONING OF AN APPROXIMATELY 1.1 ACRE AREA FROM PARK AND RECREATION (PR) TO PLANNED INDUSTRIAL PARK (P(MP)) LOCATED AT APN 316 06 050 AND 316 06 051 WHEREAS, an application was received by the City (Application no. Z-2011-03) for the rezoning of a property from PR (Park and Recreation) to P(MP) (Planned Industrial Park); and WHEREAS, immediately prior to the Council’s consideration of this rezoning, and following the Commission’s recommendation, the Council adopted Resolution No. 6727, adopting a General Plan Amendment covering the property which is the subject of this rezoning ordinance; and WHEREAS, the rezoning would be consistent with the City's General Plan land use map, proposed uses and surrounding uses; and WHEREAS, the Rezoning application is part of the Apple Campus 2 Project, which consists of demolition of all existing structures within the project site and the construction of 3,420,00 square feet of office, research, and development uses; 245,000 square feet of auditorium, fitness center, and Valet Parking Reception uses; 92,000 square feet of utility plants; and parking and ancillary buildings (such as security reception areas and landscape maintenance buildings), of which the proposed buildings are designed to be energy efficient and to use renewable energy (including energy produced on site via photovoltaic infrastructure and fuel cells), all as fully described and analyzed in the June 2013 Apple Campus 2 Project Environmental Impact Report (“Draft EIR”) (State Clearinghouse No. 2011082055), as amended by text revisions in Chapter IV of the September 2013 Apple Campus 2 Project EIR Response to Comments Document (“Response to Comments Document”) (together, the Final EIR); WHEREAS, the Final EIR was presented to the Planning Commission and City Council on October 1, 2013 at a Joint Planning Commission and City Council Study Session; and WHEREAS, on October 2, 2013, the Planning Commission held a public hearing and voted 4-0-1 (1-recusal) to recommend that the City Council approve Findings Revision #1 (October 1, 2013) to adopt Mitigation Measure TRANS-23 (Alternate), as amended to delete the penalty provisions, to allow three left turn lanes out of the project driveway on to N. Wolfe Road, a Resolution Recommending Certification of an Environmental Impact Report (EIR), adoption of Findings and a Statement of Overriding Considerations, adoption of Mitigation Measures, and adoption of a Mitigation Monitoring and Reporting Program in substantially similar form to the Resolution, as amended (Resolution no. 6727); Approve the General Plan Amendment, GPA- 2011-03, in substantially similar form to the Resolution presented (Resolution no. 6728); Approve the Zoning Map Amendment, Z-2011-03, in substantially similar form to the 405 Resolution No. 13-2113 Z-2011-03 October 19, 2013 Page CC-1-2 Resolution presented (Resolution no. 6729); Approve the Vesting Tentative Map, TM-2011-03, in substantially similar form to the Resolution presented (Resolution no. 6732) ; Approve the Development Permit, DP-2011-04, Use Permit, U-2011-11, Architectural and Site Approval, ASA-2011-14 and Tree Removal Permit, TR-2011-39, in substantially similar form to the Resolution presented (Resolution no. 6731); and Approve the Development Agreement, DA- 2011-01, in substantially similar form to the Resolution presented (Resolution no. 6730); and WHEREAS, Supplemental Text Revisions, Apple Campus 2 Project Final Environmental Impact Report, which is part of the Final EIR, identifies a third alternative mitigation measure for Impact TRANS-23, a third alternative mitigation measure for Impact TRANS-27, and discloses recent amendments to Chapter 6.5 of Division 13 of the Public Resources Code; and WHEREAS, on October 15, 2013, the City Council held a duly noticed public hearing on the amendment to the Zoning map and the EIR; as well as the following Project approvals: A General Plan to allow amendments including a change in the land use designation of a 1.1 acre area from Parks and Open Space to Industrial/Residential, Vesting Tentative Map, Development Permit, Use Permit, Architectural and Site Approval for Phase 1 of the Project, Tree Removal Permit, and street and easement vacations and a Development Agreement; and WHEREAS, after consideration of evidence contained in the entire administrative record, at the public hearing on October 15, 2013, the City Council adopted Resolution No. 13-02 certifying the EIR, adopting Findings and a Statement of Overriding Considerations, adopting Mitigation Measures, and adopting of a Mitigation Monitoring and Reporting Program. WHEREAS, the City Council finds the following: 1.That the proposed zoning is in accord with this title of the Municipal Code and the City's Comprehensive General Plan. The majority of the site is designated Industrial/Residential in the General Plan Land Use Map, which allows, among other uses, research and development and supporting uses. The Zoning designation for most of the site is Planned Development (Planned Industrial Park) (P(MP)), which similarly allows, among other uses, research and development and supporting uses. The Planned Development district allows the City flexibility to approve project specific development standards different from the standards outlined in the Zoning regulations for the site. A small portion of the project site is currently designated for use as a public park in both the General Plan and Zoning; however, the concurrent General Plan Amendment and Rezoning of a portion of the site will ensure that the project is in compliance with the General Plan and the Zoning regulations governing the project site. In 2005, the City approved the rezoning of 1.1-acre area of a proposed townhouse development project as Park and Recreation to serve the future residents of the development and residents living in the northern portion of the City. However, neither the townhouse development project nor public park were developed, although the site of the proposed park (currently a parking lot) remains designated as park space in the City of Cupertino General Plan and Zoning Ordinance. The change will make the zoning of this portion of the Project consistent with the balance of the Project and enhance and accommodate the Project. 406 Resolution No. 13-2113 Z-2011-03 October 19, 2013 Page CC-1-3 2.The proposed zoning is in compliance with the provisions of the California Environmental Quality Act (CEQA). The proposed project includes the rezoning of the site from Parks and Open Space to Planned Industrial Park. With this change in designation, the amount of land designated for future parks in the City will be reduced. This would exacerbate an existing shortage of parkland in this part of the City. None of the private open space in the proposed development is proposed to be accessible by the public as a recreational use. Because the change in the designation and subsequent rezoning of the park would be considered a significant impact under CEQA, as a mitigation measure the applicant shall either (i) provide sufficient funds for the acquisition of 1.1 acres of property by the City for future park development, or (ii) agree to purchase (unless other property currently owned by the applicant is proposed) and dedicate to the City 1.1 acres elsewhere in the City as Parks and Open Space, subject to the satisfaction of the City, provided the land would be publicly accessible, as well as pay for the construction of park improvements and for long term maintenance of the park. This obligation of the applicant to provide either funds for purchase, construction and maintenance of parkland or provide parkland, fund construction of improvement and maintenance of the park would adequately offset the loss of the park and recreation area. This mitigation measure reduces the impact to less than significant and therefore, the change in the zoning designation is in compliance with the provisions of CEQA. As set out more fully in the Resolution of the Planning Commission of the City of Cupertino recommending certification of An Environmental Impact Report for the Apple Campus 2 project; and recommending Adoption of Findings and a Statement of Overriding Considerations, Mitigation Measures, and a Mitigation Monitoring and Reporting Program, the project complies with CEQA. 3.The site is physically suitable (including, but not limited to, access, provision of utilities, compatibility with adjoining land uses, and absence of physical constraints) for the requested zoning designation(s) and anticipated land use development(s). The Project site as designed is physically suitable for this development. The Project is designed to be not visible to adjacent property owners and thus, will have limited impacts upon the adjacent land uses. The existing utilities to the Project will be enhanced, modified, or replaced, or parallel systems constructed to accommodate the increased needs of this development. In addition, In order to reduce its impact on the environment, the Project will utilize onsite photovoltaics and fuel cells and obtain the remainder of its energy needs from the State of California Direct Access Program, off-site Apple-owned renewable energy projects or grid-purchased renewable energy. The Project will be compatible with the surrounding uses and minimize its impacts upon the neighborhood and the environment. 4.The proposed zoning will promote orderly development of the City. The Zoning Map designates the majority of the site Planned Development (Industrial Park) (P(MP)), which similarly allows, among other uses, research and development and supporting uses. The Planned Development district allows the City flexibility to create project specific development standards. The existing development on the project site is not a unified corporate campus. The new Project will demolish numerous buildings across the site and consolidate the office usage mainly into one large building with additional buildings located east of Tantau Avenue. The single user campus will be an organized, orderly 407 Resolution No. 13-2113 Z-2011-03 October 19, 2013 Page CC-1-4 development within the City and will be constructed in a relatively short period of time. This project would also further General Plan policies related to Maintaining Cohesive Office Parks (Policy 2-44) and provide significant revenues to the City from increased sales tax revenue (Policy 2-42) The Project also promotes: Policy 2-40 (maintaining the vitality of business and manufacturing) and Policy 2-20, Strategy 3 (diversity of land use, major companies). Finally, the project also proposes to make improvements for the alternate Calabazas Creek trail furthering Policy 2-73, Trails. Therefore, the proposed development substantially conforms to the General Plan and is substantially consistent with the underlying Zoning. 5.That the proposed zoning is not detrimental to the health, safety, peace, morals and general welfare of persons residing or working in the neighborhood of subject parcels. The Project is designed to minimize the impact upon the surrounding community and the environment. In order to reduce its impact on the environment, the Project will utilize onsite photovoltaics and fuel cells and obtain the remainder of its energy needs from the State of California Direct Access Program, off- site Apple-owned renewable energy projects or grid-purchased renewable energy. The Project has been designed to incorporate passive heating and cooling in the main office building which will use ambient air. This will reduce the use of mechanical cooling making for a more efficient and better work environment. The project has been designed to minimize its impact upon the neighbors, adjacent roads and freeways and the environment. Appropriate mitigation measures to address traffic impacts along with the adoption of an aggressive but achievable Transportation Demand Management Plan will further reduce the traffic impacts of the project. Adequate buffer has been provided around the project to allow privacy and to reduce impacts to neighbors. The site has a Corporate Fitness Center which would enable employees to attend to their general health and incorporates many jogging trails and an on-site bike sharing program. The project also has a large on-site restaurant with several smaller indoor and outdoor dining facilities. The project increases the amount of landscaped green space to more than 100 acres. The landscape design of meadows and woodlands will create an ecologically rich oak savanna reminiscent of the early Santa Clara Valley. It will incorporate both young and mature trees, and native and drought tolerant plants, that are reasonably expected to thrive in Santa Clara County with minimal water consumption. In addition, the project includes some orchard fruit trees, the fruit from which will be used at the on-site dining facilities furthering sustainability principles that the project is striving for. The project proposes to add at least 1,700 additional trees to the site and increase the pervious surface areas on site significantly improving stormwater quality and reducing run-off. Site access has been designed to consolidate entry and exit in order to reduce conflict with pedestrian and bicycle activity and is directed away from the residential neighborhood. Adequate emergency access has been provided on site. The design of the Project and its environmental attributes are not detrimental to the health, safety, peace, morals and general welfare of persons residing or working in the neighborhood of the subject parcels. NOW, THEREFORE, BE IT ORDAINED AS FOLLOWS: That after careful consideration of the, maps, facts, exhibits, testimony, public comment, and other evidence submitted in this matter, the City Council based upon the findings described above, the public hearing record and subject to the following, finds: 408 Resolution No. 13-2113 Z-2011-03 October 19, 2013 Page CC-1-5 Section 1. That the property described in attached Exhibits Z-1 & Z-2, is hereby rezoned to: P(MP), Planned Industrial Park; and that Exhibit Z-2 attached hereto is made part of the Master Zoning Map of the City of Cupertino; and Section 2. That this ordinance shall take effect and be in force thirty (30) days after its passage, as modified above. INTRODUCED at an adjourned regular meeting of the City Council of the City of Cupertino the 15th day of October 2013 and ENACTED at an adjourned regular meeting of the City Council of the City of Cupertino the ____day of __________, 2013, by the following vote: Vote: Members of the City Council: AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: Grace Schmidt, City Clerk Orrin Mahoney, Mayor, City of Cupertino 409 EXHIBIT Z-1 EXHIBIT Z-1 LEGAL DESCRIPTION FOR REZONING AREA TO BE REZONED TO P(MP) BEGINNING AT THE MOST SOUTHERLY CORNER OF PARCEL 6 AS SHOWN ON THAT CERTAIN PARCEL MAP RECORDED IN BOOK 329 OF MAPS AT PAGE 49, SANTA CLARA COUNTY RECORDS, SAID POINT BEING ON THE NORTHEASTERLY RIGHT-OF-WAY LINE OF THE JUNIPERO SERRA FREEWAY (I 280); THENCE NORTH 39°51'28" EAST, A DISTANCE OF 713.89 FEET TO THE TRUE POINT OF BEGINNING; THENCE NORTH 59°59'32" WEST, A DISTANCE OF 192.00 FEET; THENCE SOUTH 30°00'28" WEST, A DISTANCE OF 47.00 FEET; THENCE NORTH 59°59'32" WEST, A DISTANCE OF45.55 FEET; THENCE ALONG THE ARC OF A NON-TANGENT CURVE TO THE LEFT HAVING A RADIUS OF 41.00 FEET, THE CENTER OF WHICH BEARS NORTH 5°51'55" WEST, THROUGH A CENTRAL ANGLE OF 43°14'25", AN ARC DISTANCE OF 30.94 FEET; THENCE NORTH 40°53'40" EAST, A DISTANCE OF 27.17 FEET; THENCE SOUTH 49°06'20'' EAST, A DISTANCE OF 49.00 FEET; THENCE NORTH 40°53'40" EAST, A DISTENCE OF 235.83 FEET TO A POINT ON THE CENTERLINE OF PRUNERIDGE AVENUE, 92 FEET WIDE; THENCE ALONG SAID CENTERLINE OF PRUNERIDGE AVENUE SOUTH 49°06'20" EAST, A DISTANCE OF 51.82 FEET; THENCE ALONG THE ARC OF A NON-TANGENT CURVE TO THE LEFT HAVING A RADIUS OF 600.00 FEET, THE CENTER OF WHICH BEARS NORTH 40°53'08" EAST, THROUGH A CENTRAL ANGLE OF 6°59'54", AN ARC DISTANCE OF 76.29 FEET; THENCE SOUTH 39°51'28" WEST, A DISTANCE OF 302.30 FEET TO THE TRUE POINT OF BEGINNING. CONTAINING AN AREA OF 1.18± ACRES, MORE OR LESS. 410 LEGEND : ZONING PLAT MAP : 1 PRUNERIDGE AVE AT : :RIDGEVIEW COURT : CUPERTINO CA 1 411 ATTACHMENT CC-2 ORDINANCE NO. 13-2114 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO REPEALING ORDINANCE NO. 1702 AND APPROVING A NEW DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF CUPERTINO AND APPLE INC. FOR THE DEVELOPMENT OF A NEW CORPORATE CAMPUS WHEREAS, Apple Inc. (“Apple”) has a legal and equitable interest in certain real property consisting of approximately 176 acres located within the City and generally bordered by East Homestead Road on the north, adjacent properties to the east of North Tantau Avenue on the east, Interstate 280 and The Hamptons apartment community on the south, and North Wolfe Road on the west, as more particularly described in Exhibits DA-1a and DA-1b of the Development Agreement (“Property”); and WHEREAS, Government Code Sections 65864 through 68569.5 provide the statutory authority for development agreements between municipalities and parties with a fee or equitable interest in real property; and WHEREAS, Cupertino Municipal Code (“CMC”) § 19.144.010 et seq., establishes additional procedures for review and approval of proposed development agreements by the City of Cupertino (“City”); and WHEREAS, a portion of the Property is currently subject to that certain development agreement between Apple’s predecessor-in-interest, Hewlett-Packard Company, and the City dated November 6, 1995, approved by City Council Ordinance No. 1702, as amended (“HP Agreement”); and WHEREAS, the Project (defined below) proposed by Apple to be developed on the Property is inconsistent with the development project contemplated by the HP Agreement; and WHEREAS, on or about August 9, 2011, Apple applied for a General Plan amendment and rezoning of a portion of the Property to accommodate the demolition of approximately 2.66 million square feet of existing office, research and development buildings, parking areas and ancillary facilities located on the Property; vacation of a portion of Pruneridge Avenue and vacation of various public easements; and construction of a new approximately 3.42 million square foot office, research and development campus with associated parking facilities and ancillary uses including a 50,000 square foot central plant, a 120,000 square foot (1,000 seat) corporate auditorium, a 100,000 square foot fitness center and other minor ancillary buildings for security and landscaping; and improvements to adjacent thoroughfares, including street- widening, landscaped medians, detached sidewalks, buffered bike lanes, widened freeway off- ramps and trail improvements (collectively, the “Project”); and WHEREAS, the Project will be constructed in two or more phases. The first phase will include the construction of a 2.82 million square foot ring-shaped main building with a 2,385 space underground parking facility, a 100,000 square foot fitness center with a 25 space parking 412 Resolution No. 13-2114 DA-2011-01 October 15, 2013 Page CC-3-2 lot, a 120,000 square foot (1,000 seat) auditorium, a 5,870 space main parking structure with attached central plant, a 765-space auditorium, employee and visitorparking structure with a 25,000 square foot valet parking reception area, 7,000 square foot visitor security reception structures, 10,000 square feet of landscaping and maintenance buildings, 10,000 square feet of outdoor food stations, , and ancillary on-site and off-site public and private improvements. The second phase(s) of construction will include the development of 600,000 square feet of office and research and development buildings with 1,740 parking stalls and two satellite plants for energy generation and ancillary on-site and off-site public and private improvements. All figures are approximate; and WHEREAS, on August 19, 2011, the City issued Notice of Preparation for an Environmental Impact Report for the Project. A scoping session was held on September 8, 2011 to provide the public the opportunity to comment on the topics to be studied in the Draft Environmental Impact Report (“Draft EIR”). Public comments were collected through the scoping period’s conclusion on October 5, 2011; and WHEREAS, from August 19, 2011 to June 6, 2013 2013, the City’s environmental consultant, LSA, prepared a Draft EIR pursuant to the requirements of the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) (“CEQA”) and the Guidelines for Implementation of the California Environmental Quality Act (Title 14, Sections 15000 et seq. of the California Code of Regulations) (“CEQA Guidelines”); and WHEREAS, the Draft EIR was released for a 46-day public review/comment period beginning on June 6, 2013 and ending July 22, 2013. The Notice of Completion of the Draft EIR was sent to the State Clearinghouse in the Governor’s Office of Planning and Research on June 6, 2013 under State Clearinghouse No. 2011082055. The Notice of Availability was filed with the Santa Clara County Clerk-Recorder on the same day and was also: (1) sent to other potentially affected agencies as required by CEQA; (2) sent to adjacent property owners as required by CEQA; and (3) posted at the Project site and at City Hall; and WHEREAS, on June 26, 2013, the City held a duly noticed public meeting to allow the public an additional opportunity to provide input on the Draft EIR and received public testimony; and WHEREAS, following the close of the public review and comment period on the Draft EIR, written responses to comments concerning the adequacy of the Draft EIR received during the public review and comment period have been prepared and compiled in a Response to Comments Document (which includes revisions to the Draft EIR); and WHEREAS, the Final Environmental Impact Report (“Final EIR”), consisting of the Draft EIR (published in June 2013), the Response to Comments Document (published in September 2013), and all documents incorporated therein was issued on September 23, 2013. Notice of Availability of the Final EIR was sent to the Santa Clara County Clerk Recorder’s Office, posted at City Hall and the Project site, and sent to 10 local libraries and property owners, business owners and residents within 1,000 feet of the Project site. A courtesy notice regarding the availability of the Final EIR was also mailed to all postal customers in the City of Cupertino and within 1000 feet of the Project site and published in the Mercury News; and 413 Resolution No. 13-2114 DA-2011-01 October 15, 2013 Page CC-3-3 WHEREAS, on September 26, 2013, City Staff presented the Final EIR to the Environmental Review Committee (“ERC”) for review and recommendation. After considering the Final EIR, all supporting documents, and Staff’s presentation, the ERC recommended that the City of Cupertino City Council approve the Project; and WHEREAS, the City received comments following the close of the public review and comment period on the Draft EIR and, although pursuant to Public Resources Code Section 21091(d)(1) and CEQA Guidelines Section 15088(a) written responses are not required, responses have been provided with staff reports; and WHEREAS, the Final EIR was presented for review to the Planning Commission and City Council on October 1, 2013 at a Joint Planning Commission and City Council Study Session; and WHEREAS, on October 2, 2013, the Planning Commission held a public hearing and voted 4-0-1 (1-absent) to recommend that the City Council approve Findings Revision #1 (October 1, 2013) to adopt Mitigation Measure TRANS-23 (Alternate), as amended to delete the penalty provisions, to allow three left turn lanes out of the project driveway on to N. Wolfe Road, a Resolution Recommending Certification of an Environmental Impact Report (EIR), adoption of Findings and a Statement of Overriding Considerations, adoption of Mitigation Measures, and adoption of a Mitigation Monitoring and Reporting Program in substantially similar form to the Resolution, as amended (Resolution no. 6727); Approve the General Plan Amendment, GPA-2011-03, in substantially similar form to the Resolution presented (Resolution no. 6728); Approve the Zoning Map Amendment, Z-2011-03, in substantially similar form to the Resolution presented (Resolution no. 6729); Approve the Vesting Tentative Map, TM-2011-03, in substantially similar form to the Resolution presented (Resolution no. 6732) ; Approve the Development Permit, DP-2011-04, Use Permit, U-2011-11, Architectural and Site Approval, ASA-2011-14 and Tree Removal Permit, TR-2011-39, in substantially similar form to the Resolution presented (Resolution no. 6731); and Approve the Development Agreement, DA- 2011-01, in substantially similar form to the Resolution presented (Resolution no. 6730), adopt the Findings and Statement of Overriding Considerations for the Project, and make conditions of approval all of the mitigation measures for the Project that are within the responsibility and jurisdiction of the City that are identified in Findings; and; and WHEREAS, Supplemental Text Revisions, Apple Campus 2 Project Final Environmental Impact Report, which is part of the Final EIR, identifies a third alternative mitigation measure for Impact TRANS-23, a third alternative mitigation measure for Impact TRANS-27, and discloses recent amendments to Chapter 6.5 of Division 13 of the Public Resources Code; and WHEREAS, on October 15, 2013, the City Council held a duly noticed public hearing on the Final EIR and the Development Agreement; as well as the following Project approvals: 414 Resolution No. 13-2114 DA-2011-01 October 15, 2013 Page CC-3-4 amendments to the General Plan to allow a change in the land use designation of a 1.1 acre area from Parks and Open Space to Industrial/Residential, a change to figure 2-G to reflect the relocation of Glendenning Barn, changes to various figures to reflect the vacation of Pruneridge Avenue, amendments to the text in Policy 2-35, a change to the setback ratio for N. Tantau Avenue, and other minor related amendments to figures and tables, Rezoning of said 1.1 acre area from Parks and Recreation (PR) to Planned Industrial Park P(MP), Vesting Tentative Map, Development Permit, Use Permit, Architectural and Site Approval for Phase 1 of the Project, Tree Removal Permit, and street and easement vacations; and WHEREAS, in compliance with the CEQA Guidelines, on October 15, 2013, the City Council adopted Resolution No. 13-082 to certify the Final EIR for the Project, adopt findings and a Statement of Overriding Considerations, Mitigation Measures and a Mitigation Monitoring and Reporting Program; and WHEREAS, on October 15, 2013, the City Council adopted Resolution No. 13-083 amending the General Plan to accommodate the Project; and WHEREAS, on October 15, 2013, the City Council introduced an ordinance to rezone 1.1 acres of the Property from Parks and Recreation (PR) to Planned Industrial Park (P(MP)) (Assessor’s Parcel Numbers 316-06-050 and 316-06-051); and WHEREAS, on October 15, 2013, the City Council adopted Resolution Nos. 13-085 and 13-084, approving, respectively, a Vesting Tentative Map and a Development Permit, Use Permit, Architectural and Site Approval for Phase 1, and Tree Removal Permit for the Project; and WHEREAS, on October 15, 2013, the City Council adopted Resolution No. 13-086 and 13-087 vacating that certain approximately 4.64 acre portion of Pruneridge Avenue identified in Exhibit DA-1g to the Development Agreement and approving a sale of the Pruneridge Avenue vacation area to Apple, subject to satisfaction of certain conditions, including relocation of all public utilities, for a purchase price of $23,814,257.00, under the terms described in Article 6 of the Development Agreement attached hereto as Exhibit DA-1 (“Development Agreement”); and WHEREAS, approval of the Development Agreement will provide Apple with assurances that its development of the Property in connection with the Project can proceed without disruption caused by a change in City planning and development policies and requirements, which assurance will thereby reduce the actual or perceived risk of planning, financing and proceeding with construction and use of the development and promote the achievement of the private and public objectives of the development; and WHEREAS, City desires to enter the Development Agreement in order to: (1) increase the number of well-paid high-quality jobs in the City for employees who either live in the community and/or support local businesses; (2) improve the City’s quality of life and the built environment by redeveloping outmoded office buildings with a coherent state-of-the art corporate campus; (3) support the development of a local corporation that has grown into one of the world’s outstanding high tech firms, thereby stimulating local businesses and the local economy and supporting the City’s fiscal health and ability to provide needed services; (4) secure a source of substantial tax revenues for the City by encouraging a major corporation to 415 Resolution No. 13-2114 DA-2011-01 October 15, 2013 Page CC-3-5 continue its existing operations in the City; and (5) attract visitors who will generate both additional revenues for local businesses and increased tax revenues for the City, as well as further the City’s visibility worldwide; and WHEREAS, the terms of the Development Agreement include the following community benefits funded by Apple: An affordable housing contribution equal to twice the otherwise applicable City affordable housing in-lieu fee for the North Vallco Area. Contribution of $8,270,994 for the establishment and maintenance of a 1.1 acre park at a location within the City to be determined, or transfer by Apple of a 1.1 acre park site acceptable to the City, together with an improvement, maintenance and capital replacement fund. Installation of a fiber optic conduit along Wolfe Road between the 280 Freeway and Homestead Road for City use. Traffic signal preemption device improvements in an amount up to $320,000. Contribution of $250,000 toward the cost of a study for a pedestrian/bicycle trail or path, including potentially a full Class I separated trail, along the drainage channel running parallel to southbound I-280 between North De Anza Boulevard and Calabazas Creek, and then south along the western bank of Calabazas Creek to Vallco Parkway. Apple’s commitment to require its general contractor to comply with a Tax Localization Plan that would cause sales and use taxes generated from the purchase of materials, fixtures and equipment for the Project to be allocated to the City. Amendment of an Agreement for Consultation Services that may generate additional sales tax revenue for the City. Contribution of $2,644,035 to City if Apple desires to relocate the historic Glendenning barn off of the Property to other City-owned property. NOW, THEREFORE, BE IT ORDAINED AS FOLLOWS: That after careful consideration of the facts, exhibits, testimony and other evidence submitted in this matter, the City Council based upon the findings described above, the public hearing record and the Minutes of Planning Commission Meeting of October 2, 2013, and subject to the conditions specified below: Section 1. The recitals set forth above are true and correct, and are hereby incorporated herein by this reference as if fully set forth in their entirety. Section 2. City Council Ordinance No. 1702 is hereby repealed and the HP Agreement is hereby canceled in its entirety pursuant to Government Code section 65868. Section 3. The City Council, having considered the evidence received at the public hearing duly noticed and held for said proposed Development Agreement, finds as follows: A. The proposed Development Agreement is consistent with the objectives, policies, general land uses and programs specified in the General Plan, as amended. 416 Resolution No. 13-2114 DA-2011-01 October 15, 2013 Page CC-3-6 B. The proposed Development Agreement is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the Project is located. C. The proposed Development Agreement is in conformity with and will promote public convenience, general welfare, and good land use practice. D. The proposed Development Agreement will not be detrimental to the health, safety, or general welfare. E. The proposed Development Agreement will not adversely affect the orderly development of property or the preservation of property values. F. The proposed Development Agreement will promote and encourage the development of the Project by providing a greater degree of requisite certainty. Section 4. The City Council hereby approves the Development Agreement in the form attached subject to such minor technical conforming changes as may be approved by the City Attorney. This approval is based on the City Council’s consideration of and reliance on the Final EIR and in accordance with the plans, details and descriptions contained therein, and in the Resolution certifying the Final EIR. Section 5. This Ordinance shall be effective thirty (30) days following its adoption. INTRODUCED at an Adjourned Regular Meeting of the City Council of the City of Cupertino the 15th day of October 2013, and ENACTED at an Adjourned Regular Meeting of the City Council of the City of Cupertino the 19th day of November, 2013, by the following vote: Vote: Members of the City Council: AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: ______________________________ _____________________________ Grace Schmidt, City Clerk Orrin Mahoney, Mayor, City of Cupertino 417 EXHIBIT DA-1 RECORD AND WHEN RECORDED MAIL TO: RECORD WITHOUT FEE PURSUANT TO GOVERNMENT CODE SECTION 6103 City of Cupertino City Clerk’s Office 10300 Torre Avenue Cupertino, CA 95014-3202 (Space Above This Line Reserved For Recorder's Use) DEVELOPMENT AGREEMENT BETWEEN CITY OF CUPERTINO, a California municipal corporation AND APPLE INC., a California corporation 418 419 420 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436 437 438 439 440 441 442 443 444 445 446 447 448 449 450 451 452 453 454 455 456 457 458 459 460 461 462 463 464 465 466 467 468 469 470 471 472 473 474 475 476 477 478 479 480 481 482 483 484 485 486 487 488 489 490 491 ATTACHMENTCC-3 TABLE OF CONTENTS Page ARTICLE 1 DEFINITIONS ................................................................................................................. 6 ARTICLE 2 EFFECTIVE DATE, TERM AND TERMINATION OF HP DEVELOPMENT AGREEMENT. ............................................................................... 10 Section 2.1 Effective Date .................................................................................................... 10 Section 2.2 Initial Term ....................................................................................................... 10 Section 2.3 Extensions to Term .......................................................................................... 10 Section 2.4 Apple Termination for Convenience............................................................. 11 Section 2.5 City Termination In Event of Change in Use ............................................... 11 Section 2.6 HP Development Agreement Cancellation .................................................. 11 ARTICLE 3 OBLIGATIONS OF APPLE. ........................................................................................ 12 Section 3.1 Obligations of Apple Generally ..................................................................... 12 Section 3.2 Affordable Housing Contribution ................................................................. 12 Section 3.3 Tax Localization Plan and Requirements. .................................................... 12 Section 3.4 Construction Tax .............................................................................................. 12 Section 3.5 Tax Consulting Agreement............................................................................. 13 Section 3.6 Glendenning Barn ............................................................................................ 13 Section 3.7 Parkland Contribution .................................................................................... 14 Section 3.8 Fiber Optic Conduit Installation .................................................................... 14 Section 3.9 Traffic Signal Preemption Devices ................................................................ 15 Section 3.10 I-280 Trail Contribution .................................................................................. 15 Section 3.11 Storm Drain Facilities, Storm Drains and Runoff ........................................ 15 Section 3.12 Real Property Acquisition ............................................................................... 15 Section 3.13 Mitigations ........................................................................................................ 16 Section 3.14 Wolfe Road Transportation Study ................................................................. 16 ARTICLE 4 OBLIGATIONS OF CITY. ............................................................................................ 16 Section 4.1 Obligations of City Generally......................................................................... 16 Section 4.2 Protection of Rights ......................................................................................... 16 Section 4.3 Development Allocations. .............................................................................. 17 Section 4.4 Apple’s Right to Rebuild ................................................................................ 18 -i- 492 DEVELOPMENT AGREEMENT THIS DEVELOPMENT AGREEMENT (the “Agreement”) is entered into as of November 19, 2013, by and between Apple Inc., a California corporation (“Apple”), and the City of Cupertino, a California municipal corporation (“City”), pursuant to California Government Code § 65864 et seq. R E C I T A L S Apple and City enter into this Agreement on the basis of the following facts, understandings and intentions, and the following recitals are a substantive part of this Agreement: A. To strengthen the public planning process, encourage private participation in comprehensive planning and reduce the economic risk ofdevelopment, the Legislature of the State of California enacted Sections 65864 through 65869.5 of the California Government Code (“Development Agreement Statute”), which authorize City to establish procedures to enter into binding development agreements with persons having legal or equitable interests in real property located within City for development of property. B. The Cupertino Municipal Code (“CMC”), § 19.144.010 et seq., establishes the authority and procedure for review and approval of proposed development agreements. C. Apple has a legal and equitable interest in certain real property consisting of approximately 176 acres located within the City and generally bordered by East Homestead Road on the north; adjacent properties to the east of North Tantau Avenue on the east; Interstate 280 and The Hamptons apartment community on the south; and North Wolfe Road on the west, as more particularly described in Exhibit DA-1a (the “Property”), attached hereto, and as diagrammed in Exhibit DA-1b, attached hereto (the “Project Site”). The Property is owned by Campus Holdings, Inc. (“CHI”), a Delaware corporation and wholly owned subsidiary of Apple. CHI and Apple have entered into an agreement for Apple to develop and occupy the Property. Pruneridge Avenue extended through the Project Site on a roughly east/west alignment, and pursuant to the vacation described in Article 6 most of the former Pruneridge Avenue is now included as part of the Property and Project Site. The Project Site currently contains approximately 2,891,500 square feet of office, research and development and amenity building space (2,657,000 square feet of which is office and research and development), some of which are occupied by Apple and some of which were formerly used by Hewlett- Packard. Calabazas Creek crosses the southeastern portion of the Project Site. D. Apple intends to develop the Project Site as an office, research and development campus consistent with the Project Approvals and the Subsequent Approvals (the “Project”). E. The Project, including but not limited to the buildings, access and parking facilities, landscaping, and infrastructure improvements, are all more particularly shown on the -1- 493 I. Apple and City mutually desire to enter into this Agreement, and proceedings have been taken in accordance with state law, as set forth below. J. On October 2, 2013, City’s Planning Commission (defined below in Recital Q(1)) held a duly noticed public hearing on this Project and: (1) determined that the CEQA compliance for the City’s consideration of this Project properly relies on the earlier analysis and assumptions in Cupertino’s General Plan 2000-2020 (“General Plan”) environmental impact report and the City’s recent preparation of environmental impact report concerning the Project (entitled Apple Campus 2 Project Environmental Impact Report (the “EIR”)), dated September 23, 2013; (2) determined that the Project is consistent with the City’s General Plan, as amended by the General Plan Amendments; and (3) recommended that the City of Cupertino City Council (“City Council”) approve this Project. K. On October 15, 2013, the City Council held a duly noticed public hearing on this Agreement and (1) determined that consideration of this Agreement contained in the EIR complies in all respects with CEQA; (2) determined that this Agreement is consistent with City’s General Plan, as amended by the General Plan Amendments; (3) conducted all necessary proceedings in accordance with the City’s rules and regulations for the approval of this Agreement; and (4) introduced Ordinance No. 13-2114, approving this Agreement. L. On November 19, 2013, the City Council adopted Ordinance No. 13-2113, approving this Agreement, and the Ordinance became effective thirty (30) days thereafter (subject to and extended by any subsequent City Council reconsideration hearing) on December 19, 2013 (“Effective Date”). M. Certain improvements, as set forth in the conditions of approval (“Conditions of Approval”), are necessary to provide infrastructure support for the Project. N. Apple intends to develop the Project in two or more phases, as described in the EIR. O. As of the Effective Date, Apple is City’s largest employer, and Apple has been located in the City since Apple was established in 1976. Apple’s current corporate headquarters at the 1 Infinite Loop campus (the “IL Campus”) is located approximately one mile to the west of the Project Site. As a major corporate employer experiencing significant growth, Apple seeks to commence a long-range comprehensive planning process for the Property, in order to ensure that Apple’s future corporate operations will continue to be headquartered and expanded within the City. Following adoption of General Plan Amendments, the Project will be consistent with the Cupertino General Plan. P. In connection with the substantial investment of time and financial resources required for the long-range comprehensive planning and entitlement of a new corporate headquarters on the Project Site, the parties desire to enter into this Agreement in order to provide to the Property development allocations for office space available under the General -3- 494 Extension”). If Apple fails to complete construction of this new square footage by the expiration of the Initial Term, the Agreement will terminate. If the First Extension occurs and if Apple completes construction of three million (3,000,000) square feet of new office, research and development, and amenity space from the Effective Date through the twelfth (12th) anniversary thereof, the Agreement shall be automatically extended for an additional eight (8) years (the “Second Extension”), for a total term of twenty (20) years from the Effective Date. As used herein, “Term” means the Initial Term and, if applicable, the First Extension and Second Extension. Apple shall not be obligated to pay a fee or charge for the automatic extensions to the Initial Term. New square footage means development of any new office and research and development space in the case of the First Extension, or any new office, research and development and amenity space, in the case of the Second Extension, and, in both cases, includes new space replacing all or a portion of the existing square footage in place as of the Effective Date and new space in excess of such existing square footage. For purposes of this Section 2.3, “Completion” shall mean issuance to Apple of a temporary or permanent Certificate of Occupancy, which the City shall not unreasonably withhold, or other reasonable evidence of completion sufficient for the Project or portion thereof to be used for its intended purpose. All time periods referenced in this Section (and any termination of the Agreement) shall automatically be tolled in the event of excusable delay as provided in Section 12.5 below. Section 2.4Apple Termination for Convenience. Subject to the terms of this Section 2.4, at any time after the Initial Term, and for any reason, Apple may terminate this Agreement by written notice to City. The effective date of termination, which shall not be sooner than three (3) months following the date of Apple’s notice, shall be specified in the notice of termination. Except as otherwise provided in Section 4.7 below with respect to City’s obligation to return sequestered Contributions funds to Apple if litigation prevents Apple from developing a campus substantially consistent with the Project contemplated by this Agreement and Project Approvals, if, for any reason, Apple has not paid City the full amount of each of the Contributions as of the date of such notice, Apple’s termination notice shall be accompanied by payment of the remaining balance of such unpaid Contributions. Such termination shall be treated in the same manner as expiration of this Agreement at the end of the Term. Section 2.5City Termination In Event of Change in Use. If Apple and/or its successor desire to use the Property for a purpose other than a corporate campus, and provided that such use is permitted under the Cupertino Municipal Code, the City may elect to terminate this Agreement by written notice to Apple. Such termination shall be treated in the same manner as expiration of this Agreement at the end of the Term. Section 2.6HP Development Agreement Cancellation. Apple agrees that as of the Effective Date, that certain development agreement between Apple’s predecessor-in-interest, Hewlett-Packard Company, and the City dated November 6, 1995, approved by City Council Ordinance No. 1702, as amended, has been cancelled pursuant to Government Code Section 65868 and is of no further force or effect. -11- 495 Section 3.13Mitigations. Apple agrees to contribute to the costs of public facilities and services in the amounts set forth in the Development Plan, Project Approvals, MMRP and Conditions of Approval, as required to mitigate impacts of the development of the Property. City and Apple recognize and agree that but for Apple’s contributions to mitigate the impacts arising as a result of the entitlements granted pursuant to this Agreement and the Project Approvals, City would not and could not approve the development of the Property as provided by this Agreement and the Project Approvals. City’s approval of development of the Property is in reliance upon, and in consideration of, Apple’s agreement to make contributions toward the cost of public improvements and public services as provided to mitigate the impacts of development of the Property. Section 3.14Wolfe Road Transportation Study. Within sixty (60) days after the Effective Date, Apple shall pay the City One Million Dollars ($1,000,000) to fund a transportation study of Wolfe Road between Homestead and Stevens Creek. The study may include, potentially: (1) physical improvements, including widening of the Wolfe Road overcrossing at I-280 and associated interchange improvements which may include a Caltrans Project Study Report; (2) adaptive signal technology; (3) enhanced Transportation System Management/Transportation Demand Management options; and/or (4) other multi-modal solutions. Subject to the outcome of the study, the parties shall cooperate in good faith to determine the scope of issues and funding options to implement the recommended improvements and/or programs, including, potentially, a community facilities district pursuant to the Mello-Roos Community Facilities Act of 1982, a reimbursement agreement, a multi-party funding agreement or other similar mechanisms to fund implementation of the selected improvements and/or programs, if any. The parties expressly acknowledge and agree that the City reserves full and complete discretion with respect to legally required findings that must be made in connection with the above study or funding mechanisms. Nothing in this Agreement will prejudge or commit the City regarding findings and determinations that would have to be made with respect to the study or funding mechanisms. ARTICLE 4OBLIGATIONS OF CITY. Section 4.1Obligations of City Generally. The parties acknowledge and agree that Apple’s agreement to perform and abide by its covenants and obligations set forth in this Agreement, including Apple’s decision to process the Project in the City, is a material consideration for City’s agreement to perform and abide by the long term covenants and obligations of City, as set forth in this Agreement. Section 4.2Protection of Rights. To the maximum extent permitted by Applicable Law, City shall take any and all actions as may be necessary or appropriate to ensure that the vested rights provided by this Agreement can be enjoyed by Apple and to prevent any City Law, as defined below, from invalidating or prevailing over all or any part of this Agreement. City shall cooperate with Apple and shall undertake such actions, at Apple’s expense, as may be necessary to ensure this Agreement remains in full force and effect. City shall not support, -16- 496 price for the Pruneridge Vacation Area includes a substantial premium over fair market value. Apple’s obligation to cause CHI to purchase the Pruneridge Vacation Area upon completion of the vacation and relocation of existing utilities and appurtenances is set forth in a separate Pruneridge Vacation Area purchase and sale agreement between City and CHI dated November 19, 2013. Section 6.3Street Closure. The street closure is contingent upon the substantial relocation of all utilities within the Pruneridge Vacation Area, as reasonably determined by the Director of Public Works. ARTICLE 7COOPERATION – IMPLEMENTATION. Section 7.1Processing Application for Subsequent Approvals. City and Apple anticipate that the Project will be implemented in accordance with the Project Approvals, including the MMRP and the Conditions of Approval. The foregoing actions and other necessary or convenient implementation actions shall not require an amendment to this Agreement. By certifying the EIR, and approving the General Plan Amendments and other Project Approvals, the City has made a final policy decision that the Project is in the best interests of the public health, safety and general welfare. Accordingly, the City shall not use its discretionary authority in considering any application for a Subsequent Approval to change the policy decisions reflected by the Project Approvals or otherwise to prevent or delay development of the Project as set forth in the Project Approvals. Instead, the Subsequent Approvals shall be deemed to be tools to implement those final policy decisions and shall be issued by City so long as they comply with this Agreement and Applicable Law and are not inconsistent with the Project Approvals as set forth above. Apple acknowledges that Applicable Law, the Project Approvals and this Agreement contemplate further City review of elements or portions of the Project, such as architectural and site review of the Phase 1 parking garage on North Tantau Avenue and all of Phase 2, including potential supplemental CEQA compliance, if required. Nothing in this Agreement shall be deemed to limit City’s legal authority with respect to these reviews as provided by and otherwise consistent with this Agreement. In no event shall such further review by City revisit the Conditions of Approval, or the Project Approvals or be conditioned on or require any change in the Project except as otherwise provided in the Project Approvals or this Agreement or as otherwise required by Applicable Law. Section 7.2Timely Submittals By Apple. Apple acknowledges that City cannot expedite processing Subsequent Approvals until Apple submits complete applications on a timely basis. Apple shall use its best efforts to: (1) provide to City in a timely manner any and all documents, applications, plans, and other information necessary for City to carry out its obligations hereunder; and (2) cause Apple’s planners, engineers, and all other consultants to provide to City in a timely manner all such documents, applications, plans and other necessary required materials. It is the express intent of Apple and City to cooperate and diligently work to obtain any and all Subsequent Approvals. -21- 497 this Agreement on behalf of Apple, that all corporate approvals have been obtained including from CHI which are necessary to bind Apple to the performance of its obligations in this Agreement, and that they have the authority to bind Apple to the performance of its obligations in this Agreement. Section 15.16Exhibits. The following exhibits are attached to this Agreement and incorporated herein for all purposes: (a)EXHIBIT DA-1a:Property Description EXHIBIT DA-1b: Project Site Diagram (b) EXHIBIT DA-1c: Tax Localization Plan (c) EXHIBIT DA-1d: General Plan Office Space Development Allocations (d) (e)EXHIBIT DA-1e: Campus Amenity Space (f)EXHIBIT DA-1f:Impact Fees (g)EXHIBIT DA-1g: Pruneridge Avenue Vacation Section 15.17Recordation of Development Agreement. Pursuant to California Government Code § 65868.5, no later than ten (10) days after the Effective Date, the City Clerk shall record an executed copy of this Agreement in the Official Records of Santa Clara County. \[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK\] -40- 498 This Agreement has been entered into by and between Apple and City as of the day and year first above written. CITY: CITY OF CUPERTINO, a California municipal corporation By: (signature must be notarized) Name: Its: ATTEST: By: Grace Schmidt, City Clerk APPROVED AS TO FORM: By: Carol Korade, City Attorney APPLE: APPLE INC., a California corporation By: (signature must be notarized) Name: Its: \[SIGNATURES CONTINUED ON NEXT PAGE\] -41- 499 This Agreement is hereby acknowledged and consented to: CHI: CAMPUS HOLDINGS, INC., a California corporation By: (signature must be notarized) Name: Its: -42- 500 ACKNOWLEDGEMENTS STATE OF CALIFORNIA ) COUNTY OF _______________ ) On ____________________, 2013 before me, ______________________________________________, Notary Public, personally appeared ____________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: __________________________________ (seal) * * * * * * * * * * * * * * * * * * * STATE OF CALIFORNIA ) COUNTY OF _______________ ) On ____________________, 2013 before me, ______________________________________________, Notary Public, personally appeared ____________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: __________________________________ (seal) -43- 501 STATE OF CALIFORNIA ) COUNTY OF _______________ ) On ____________________, 2013 before me, ______________________________________________, Notary Public, personally appeared ____________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: __________________________________ (seal) -44- 502 November 11, 2013 Aarti Shrivastava and Piu Ghosh, City of Cupertino Judith Malamut, LSA Associates, Inc. Apple Campus 2 Project Final Environmental Impact Report (EIR) Late Comments Received Between October 4, 2013 and November 4, 2013 A number of late comments on the Apple Campus 2 Project EIR were received by the City between October 4, 2013 and November 4, 2013, and are attached to the staff report (see also the memo regarding late comments dated October 4, 2013 and September 20, 2013). The 45-day public comment period ended on July 22, 2013. This memo covers letters received from between 3:00 p.m. on October 15, 2013 and November 4, 2013. Based on our review of these letters, the majority of the late comments (40) are in support of the project and do not raise environmental issues. A few comments (9) identified issues and concerns with the project, primarily having to do with project design, desire for public access, increased traffic and parking issues. These issues were already addressed in the Final EIR. No further revisions need to be made to the Final EIR in response to these late comments. Additionally, in no case do these letters introduce significant new information as defined in the California Environmental Quality Act Section 15088.5, including new or more severe environmental impacts, new mitigation Guidelines measures or alternatives, or information indicating that the Draft EIR is fundamentally or basically inadequate. The issues identified in the late-submitted comments are already addressed in the Response to Comments Document. Additional responses to comments on the adequacy of the final EIR are provided below. The Concerned Citizens of Cupertino submitted additional materials, including their statement at · the October 15, 2013 City Council hearing. These materials raise issues similar or identical to those already addressed in the organization's letter submitted during the Draft EIR review period (see Letter B3 in the Response to Comments Document). These issues include TDM monitoring, community benefits, and traffic mitigation measures, and did not result in any major revisions to the EIR. Keith Murphy, submitted additional comments regarding future park development, Calabazas · Creek, and review of the Draft EIR (see Letters C3 and C12 in the Response to Comments Document). 515863.1 503 COMMUNITYDEVELOPMENTDEPARTMENT CITYHALL 1010300TORREAVENUEȧCUPERTINO,CA950143255 TELEPHONE:(408)7773308www.cupertino.org CITYCOUNCILSTAFFREPORT Meeting:November19,2013 Subject SecondreadingrelatedtotheamendmentstoCupertinoMunicipalCodeTitle16,Buildingsand Construction,forthepurposesofadopting,amendingandimplementingthe2013California BuildingStandardsCode(effectiveJanuary1,2014). RecommendedAction ConductthesecondreadingofOrdinanceNo.132115amendingTitle16oftheCupertino MunicipalCode(AttachmentA). Discussion DuringtheNovember4,2013Councilmeeting,theCouncilconductedthefirstreadingof amendmentstoCupertinoMunicipalCodeTitle16BuildingsandConstruction,forthe purposesofimplementingandamendingthe2013CaliforniaBuildingStandardsCodeand adoptedaresolutionmakingfactualfindingstomakelocalamendmentstotheCalifornia BuildingStandardsCode. TheCouncilalsodirectedstafftoreviewandbringbackrecommendationsregardingthree subjects:(1)proposedSection16.02.090ɋRightofEntry;(2)proposedSection16.02.300ɋ Penalty;and(3)requirementsforfutureElectricalVehicleChargingStations.Theissuesare discussedbelow.AredlineversionshowingchangestoChapter16betweenthefirstand secondreadingisprovidedasAttachmentB. A.Section16.02.090RightofEntry StatelawalreadyregulatestheBuilding.¬¬¯©¯§²ȟ¹righttoenterandinspectapropertyaswell astheprocessforobtaininganinspectionwarrant.ThustheactionsoftheBuildingOfficialare subjecttoStatelaw. Section16.02.090wasproposedinordertoprovideclaritytotheuseroftheBuildingCodeof theBuilding.¬¬¯©¯§²ȟ¹righttoenterandinspectaproperty.Thesectionexplainsthatthe BuildingOfficialcaninspectaproperty:(1)ifthereisreasonablecausetobelievethatthereisan 504 unsafe,dangerousorhazardouscondition;(2)presentshisorhercredentials;(3)seeksconsent oftheoccupant;and(4)attemptstolocateanownerifthebuildingisunoccupied. Ifconsentisrefused,thentheofficialȠ¹®§²²haverecoursetotheremediesprovidedbylawto secure«´º¸¿ȌȡPerStatelaw,whenapropertyowneroranoccupantrefusestoprovideconsent toenter,theCaliforniaCodeofCivilProcedurediscussestheproceduresnecessarytoobtainan inspectionwarrant,orrighttoenteroverapropertyµ½´«¸ȟ¹objection.TheCitymustapplyto theCourt,demonstratecauseforentry,whyinspectionisnecessary,andthatconsentwas refusedorconsentisexcused(forexample,whentheownercannotbelocated).OncetheJudge grantsthewarrant,theBuildingOfficialhastherighttoenterovertheµ½´«¸ȟ¹objection. Section1.08oftheMunicipalCodeaddressesȠ¹«§¸©®½§¸¸§´º¹ȡforinspections.Staffisinthe processofrevisingthecodetoincludethecompleterequirementsofStatelawforȠ¯´¹¶«©º¯µ´ ½§¸¸§´º¹ȌȡThiswillbebroughtbacktotheCouncilforadoption.Uponadoptionofthe revisiontheCouncilmaywishtodeleteSection16.02.090andinsteadrefertotherevised Section1.08. DuetotherequirementtoadopttheCaliforniaBuildingCodeandlocalrevisionspriorto January1,2014,itisrecommendedthatSection16.02.090beretained. B.Section16.02.300Penalty TheCupertinoMunicipalCodecontainsvariousremediesdependingontheseverityofthe case.ThereisexistingdiscretionunderChapter1.10relatedtoadministrativecitationsand Chapter1.12relatedtogeneralpenalties,toissueadministrativeprecitationsandcitations priortoproceedingwithadministrativepenalties,infractionsormisdemeanors.The administrativecitationprocesswasaddedtotheCupertinoMunicipalCodein2009inorderto provideanoncriminalandprogressiveprocessforcodeenforcement. Intheeventoflifesafetyissues,theCitymayproceedwiththeadditionalremedyofissuanceof infractionsandmisdemeanors.SincetheadoptionofSection1.10,theCityhasissuedno misdemeanorsandhasissuedinfractionsonlyinthecaseoflifesafetyissues.Evenafter issuance,theprosecutionofmisdemeanorsissubjecttoȠ¶¸µ¹«©»ºµ¸¯§²ª¯¹©¸«º¯µ´ȡbytheCity Attorney. SincetheproceduresrelatedtotheviolationofthecodearealreadyprovidedintheCupertino MunicipalCode,itisnotnecessarytoduplicateandstaffrecommendsdeletionofSection 16.02.300. C.VehicleChargingStations The2013CalGreenCodeSectionA4.106.8containsavoluntaryprovisionthataCitycould adoptthatrequiresbuildingstobeequippedtoaccommodatetheinstallationoffutureElectric 505 VehicleChargingstations.However,itisnotcurrentlyarequirement.Staffcontactedother jurisdictions,includingtheCountyofSantaClaraandtheCityofMonteSereno,todetermineif theyareadoptingcodesmandatingtheinstallationofElectricVehicleChargingstationsand infrastructuresupportingtheinstallationoffuturesystems.Stafffoundthatonlythetwo jurisdictionsmentionedaboveareindiscussiononthisissue.However,anordinanceregulating theseobjectiveshasnotbeenadoptedbyeitherofthetwojurisdictions.Staffwillbringup theseissueswiththeTUCC,thelocalTrichapterUniformCodeCommittee,fordiscussionand possibleinclusioninthenextrevisiontotheBuildingCode. Conclusion StaffrecommendsthatCounciladopttheOrdinanceintheformasAttachmentA. _____________________________________ Preparedby:AlbertSalvador,BuildingOfficial Reviewedby:AartiShrivastava,CommunityDevelopmentDirector ApprovedforSubmissionby:DavidBrandt,CityManager Attachment: A.Ordinance132115AmendingChapter16oftheCupertinoMunicipalCode B.OrdinanceamendingChapter16oftheCupertinoMunicipalCode(redlineversionshowing changesbetweenthefirstandsecondreading 506 ORDINANCE NO. 13-2115 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINOAMENDING CHAPTER16OF THE CUPERTINO MUNICIPAL CODEADDINGCHAPTER 16.02 AND ADOPTINGTHE 2013CALIFORNIA BUILDING, RESIDENTIAL, PLUMBING, MECHANICAL, ELECTRICAL CODES, CALIFORNIA EXISTING BUILDING CODE, CALIFORNIA GREEN BUILDING STANDARDS CODE WITH CERTAIN EXCEPTIONS, MODIFICATIONS,AND ADDITIONS WHEREAS, pursuant to Sections 17922, 17958, 17958.5 and 17958.7 of the California Health and Safety Code, the City of Cupertino may adopt the provisions of the California Building, Residential, Plumbing, Mechanical, Electrical, Existing Building, Historical Building Codes, Green Building Standards Code and International Existing Building Code, with certain amendments to those provisions which are reasonably necessary to protect the health, welfare and safety of the citizens of Cupertino because of the local climatic, geological,and topographical conditions; and WHEREAS, over the years, the City Council made factual findings set forth in respective sections of Chapter 16 of the Cupertino Municipal Code relating to the amendments to the California codes; and WHEREAS, the factual findings made then continue to be valid and relate to the amendments made to the California codes in this adoption; and WHEREAS, in addition to those findings set forth in the provisions of the Cupertino Municipal Code, on November 4, 2013, the City Council adopted a resolution making factual findings with respect to the local geological, topographical, and climate conditions including, but not limited to, the following: 1)The Bay Area region is a densely populatedarea with buildings constructed over and near a vast array of fault systems capable of producing major earthquakes, including, but not limited to the recent 1989 Loma Prieta Earthquake; 2)Cupertino is situated adjacent to active earthquake faults capable of producingsubstantial seismic events. The San Andreas and Sargent-Berocal faults run through the lower foothills and the Monta Vista Fault is closer to the valley floor area. The Hayward fault is North East of the City which would also presents a risk to Cupertino in the event of an earthquake; 3)Vehicular traffic through Cupertino is significant, and continues to increase as Cupertino is an employment center as well as the location of residential projects; 4)Cupertino is divided by major freeways and expressways, the occurrence of a major earthquake could impact the ability of fire crews to respond to emergencies should one or more of the freeways or expressways collapse, be substantially damaged, or become gridlocked; 5)Fire suppression capabilities would be severely limited should the water system be damaged during an earthquake; Council Agenda: November19, 2013 Page: 1 Revision Date: November19, 2013 507 6)Cupertino experiences low humidity, high winds and warm temperatures during the summer months creating conditions which are particularly conducive to the ignition and spread of grass, brush and structural fires; 7)Cupertino’s topography contains remote, steep hillsides which further limits the ability of emergency responders to extinguish or control wildland or structural fires;and 8)The local geographic, topographic and climatic conditions require amendments to the California Codes to establish more restrictive conditions to improve structural integrity of the buildingsin the event of a seismic incidentand provide other protections to protect against the increased risk of fire. WHEREAS, this Ordinance was found to be categoricallyexempt from environmental review per the provisions of the California Environmental Quality Act of 1970, as amended, 14 California Code of Regulations, Section 15061(b)(3); and WHEREAS, the City Council of the City of Cupertino is the decision-making body for this Ordinance; and WHEREAS, this Council has reviewed and considered the Statement of Exemption determination under CEQA prior to taking any approval actions on this Ordinance; NOW THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF CUPERTINO: SECTION 1. Title 16 of the Cupertino Municipal Code is hereby amended to add Chapter 16.02 to read as follows: CHAPTER 16.02: ADMINISTRATIVE CODE 16.02.010 Purpose. The purpose of this title is to establish the minimum requirements to safeguard to public health, safety and general welfare through structural strength, means of egress facilities, stability, sanitation, adequate light and ventilation, energy conservation, and safety to life and property from fire and other hazards attributed to the built environment and to provide safety to fire fighters and emergency responders during emergency operations. This title provides for the administration and enforcement of the building, residential, plumbing, mechanical, electrical, fire prevention, energy, housing, green building, building conservation and historical codes adopted by the City of Cupertino. 16.02.020Definitions. Council Agenda: November19, 2013 Page: 2 Revision Date: November19, 2013 508 For the purposes of this chapter the following terms, phrases, words, and their derivations shall have the meaning given herein.When not inconsistent with the context, words used in the present tense include the future, words in the plural number include the singular number and words in the singular number include the plural number.The word “shall” is always mandatory and not merely directory. A.“Building” means any structure used or intended for supporting or sheltering any use or occupancy.A structure containing less than one hundred and twenty (120) square feet of floor space shall not fall within this definition; B.“Building Official” means the Chief Building Official for the City of Cupertino or designee; C.“City” means the City of Cupertino; D.“Person” means any person, firm, partnership, association, corporation, company or organization of any kind. 16.02.030 Scope. The provisions of this title shall apply to the construction, alteration, relocation, enlargement, replacement, repair, use and occupancy and demolition of every building, structure and building services equipment of every building or structure within the city. Where there is a conflict between a general requirement and a specific requirement, the specific requirement shall be applicable. Where, in any specific case, different sections of this code specify different materials, methods of construction or other requirements, the most restrictive shall govern. 16.02.040 General. Adopt Section \[A\] 104.1 of the 2013 California Building Code as follows: \[A\] 104.1 General. The Building Official is hereby authorized and directed to enforce the provisions of this title. The Building Official shall have the authority to render interpretations of the codes identified in this title and to adopt policies and procedures in order to clarify the application of its provisions. Such interpretations, policies and procedures shall be in compliance with the intent and purpose for each code. Such policies and procedures shall not have the effect of waiving requirements specifically provided for in the codes. 16.02.050 Applications and permits. Adopt Section \[A\] 104.2 of the 2013 California Building Code as follows: \[A\] 104.2 Applications and permits. The Building Officialshall receive applications, review construction documents and issue permits for the erection, and alteration, demolition and moving of buildings and structures, inspect the premises for which such permits have been issued and enforce compliance with the provisions of this code. Council Agenda: November19, 2013 Page: 3 Revision Date: November19, 2013 509 16.02.060 Notices and orders. Adopt Section \[A\] 104.3 of the 2013 California Building Code as follows: \[A\] 104.3 Notices and orders. The Building Official shall issue all necessary notices or orders to ensure compliance withthis code. 16.02.070 Inspections. Adopt Section \[A\] 104.4 of the 2013 California Building Code as follows: \[A\] 104.4 Inspections. The Building Official shall make all of the required inspections, or the Building Official shall have the authority to accept reports of inspection by approved agencies or individuals. Reports of such inspections shall be in writing and be certified by a responsible officer of such approved agency or by the responsible individual. The Building Official is authorized to engage such expert opinion as deemed necessary to report upon unusual technical issues that arise, subject to the approval of the appointing authority. 16.02.080 Identification. Adopt Section \[A\] 104.5 of the 2013 California Building Code as follows: \[A\] 104.5 Identification. The Building Official shall carry proper identification when inspecting structures or premises in the performance of duties under this code. 16.02.090 Right of Entry. Adopt Section \[A\] 104.6 of the 2013 California Building Code as follows: \[A\] 104.6 Right of entry. Where it is necessary to make an inspection to enforce the provisions of this code, or where the Building Official has reasonable cause to believe that there exists in a structure or upon a premises a condition which is contrary to or in violation of this code which makes the structure or premises unsafe, dangerous or hazardous, the Building Official is authorized to enter the structure or premises at reasonable times toinspect or to perform the duties imposed by this code, provided that if such structure or premises be occupied that credentials be presented to the occupant and entry requested. If such structure or premises is unoccupied, the Building Official shall first make a reasonable effort to locate the owner or other person having charge or control of the structure or premises and request entry. If entry is refused, the Building Official shall have recourse to the remedies provided by law to secure entry. 16.02.100 Department records. Adopt Section \[A\] 104.7 of the 2013 California Building Code as follows: Council Agenda: November19, 2013 Page: 4 Revision Date: November19, 2013 510 \[A\] 104.7 Department records. The Building Official shall keep official records of applications received, permits and certificates issued, fees collected, reports of inspections, and notices and orders issued. Such records shall be retained in the official records for the period required for retention of public records. 16.02.110 Liability. Adopt Section \[A\] 104.8 of the 2013 California Building Code as follows: \[A\] 104.8 Liability. The Building Official, member of the board of appeals or employee charged with the enforcement of this code, while acting for the jurisdiction in good faith and without malice in the discharge of the duties required by this code or other pertinent law or ordinance, shall not thereby be rendered liable personally and is hereby relieved from personal liability for any damage accruing to persons or property as a result of any act or by reason of an act or omission in the discharge of official duties. Any suit instituted against an officer or employee because of an act performed by that officer or employee in the lawful discharge of duties and under the provisions of this code shall be defended by legal representative of the jurisdiction until the final termination of the proceedings. The Building Official or any subordinate shall not be liable for cost in any action, suit or proceeding that is instituted in pursuance of the provisions of this code. 16.02.120 Approved materials and equipment. Adopt Section \[A\] 104.9 of the 2013 California Building Code as follows: \[A\] 104.9 Approved materials and equipment. Materials, equipment and devices approved by the Building Official shall be constructed and installed in accordancewith such approval. 16.02.130 Used materials and equipment. Adopt Section \[A\] 104.9.1 of the 2013 California Building Code as follows: \[A\] 104.9.1 Used materials and equipment. The use of used materials which meet the requirements of this code fornew materials is permitted. Used equipment and devices shall not be reused unless approved by the Building Official. 16.02.140 Modifications. Adopt Section \[A\] 104.10 of the 2013 California Building Code as follows: \[A\] 104.10 Modifications. Wherever there are practical difficulties involved in carrying out the provisions of this code, the Building Official shall have the authority to grant modifications for individual cases, upon application of the owner or owner’s representative, provided the Building Council Agenda: November19, 2013 Page: 5 Revision Date: November19, 2013 511 Official shall first find that special individual reason makes the strict letter of this code impractical and the modification is in compliance with the intent and purpose of this code and that such modification does not lessen health, accessibility,life and fire safety, or structural requirements. The details of action granting modifications shall be recorded and entered in the files of the department of building safety. 16.02.150 Alternate materials, design and methods of construction and equipment. Adopt Section \[A\] 104.11 of the 2013 California Building Code as follows: \[A\] 104.11 Alternative materials, design and methods of construction and equipment. The provisions of this code are not intended to prevent the installation of any materialor to prohibit any design or method of construction not specifically prescribed by this code, provided that any such alternative has been approved. An alternative material, design or method of construction shall be approved where the Building Official finds that the proposed design is satisfactory and complies with the intent of the provisions of this code, and that the material, method or work offered is, for the purpose intended, at least the equivalent of that prescribed in this code in quality, strength, effectiveness, fire resistance, durability and safety. 16.02.160 Research Reports. Adopt Section \[A\] 104.11,1 of the 2013 California Building Code as follows: \[A\] 104.11.1 Research reports. Supporting data, where necessary to assist in the approval of materials or assemblies not specifically provided for in this code, shall consist of valid research reports from approved sources. 16.02.170 Permit Required. Adopt Section \[A\] 105.1 of the 2013 California Building Code as follows: \[A\] 105.1 Required. Any owner or authorized agent who intends to construct, enlarge, alter, repair, move, demolish, or change the occupancy of a building or structure, or to erect, install, enlarge, alter, repair, remove, convert or replace any electrical, gas, mechanical or plumbing system, the installation of which is regulated by the California Code of Regulations, or to cause any such work to be done, shall first make application to the Building Official and obtain the required permit. 16.02.180 Time limitation of application. Adopt Section \[A\] 105.3.2 of the 2013 California Building Code as follows: \[A\] 105.3.2 Time limitation of application. An application for a permit for any proposed work shall be deemed to have been abandoned 180 days after the date of filing, unless such application has Council Agenda: November19, 2013 Page: 6 Revision Date: November19, 2013 512 been pursued in good faith or a permit has been issued; except that the Building Official is authorized to grant one or more extensions of time for additional periods not exceeding 90 days each. The extension shall be requested in writing and justifiable cause demonstrated. 16.02.190 Validity of permit. Adopt Section \[A\] 105.4 of the 2013 California Building Code as follows: \[A\] 105.4 Validity of permit. The issuance or granting of a permit shall not be construed to be a permit for, or an approval of, any violation of any of the provisions of this code or of any other ordinance of the jurisdiction. Permits presuming to give authority to violate or cancel the provisions of this code or other ordinances of the jurisdiction shall not be valid. The issuance of a permit based on construction documents and other data shall not prevent the Building Official from requiring the correction of errors in the construction documents and other data. The Building Officialis also authorized to prevent occupancy or use of a structure where in violation of this code or of any other ordinances of this jurisdiction. 16.02.200 Expiration. Adopt Section \[A\] 105.5 of the 2013 California Building Code as follows: \[A\] 105.5Expiration. Every permit issued shall become invalid unless the work on the site authorized by such permit is commenced within 180 days after its issuance, or if the work authorized on the site by such permit is suspended or abandoned for a period of 180 days after the time the work is commenced. The Building Official is authorized to grant, in writing, one or more extensions of time, for periods not more than 180 days each. The extension shall be requested in writing and justifiable cause demonstrated. 16.02.210 Suspension or revocation. Adopt Section \[A\] 105.6 of the 2013 California Building Code as follows: \[A\] 105.6 Suspension or revocation. The Building Official is authorized to suspend or revoke a permit issued under the provisions of this code wherever the permit is issued in error or on the basis of incorrect, inaccurate or incomplete information, or in violation of any ordinance or regulation or any of the provisions of this code. 16.02.220 Placement of permit. Adopt Section \[A\] 105.7 of the 2013 California Building Code as follows: \[A\] 105.7 Placement of permit. The building permit or copy shall be kept on the site of the work until the completion of the project. Council Agenda: November19, 2013 Page: 7 Revision Date: November19, 2013 513 16.02.230 Responsibility of permittee. Add new Section \[A\] 105.8 to the 2013 California Building Code to read as follows: \[A\] 105.8 Responsibility of permittee. Building permits shall be presumed to incorporate the provision that the applicant, the applicant’s agent, employees or contractors shall carry out the proposed work in accordance with the approved plans and with all requirements of this code and any other laws or regulations applicable thereto, whether specified or not. No approval shall relieve or exonerate any person from the responsibility of complying with the provisions and intent of this code. 16.02.240 Fees. Fees shall be paid to the city as set forth in the latest resolution adopted by the city. 16.02.250 Inspections. Adopt Section \[A\] 110.1 of the 2013 California Building Code as follows: \[A\] 110.1 General. Construction or work for which a permit is required shall be subject to inspection by the Building Official and such construction or work shall remain accessible and exposed for inspection purposes until approved. Approval as a result of an inspection shall not be construed to be an approval of a violation of the provisions of any of the codes or amendments specified in this title. It shall be the duty of the permit applicant to cause the work to remain accessible and exposed for inspection purposes. Neither the Building Official nor the City of Cupertino shall be liable for expense entailed in the removal or replacement of any material required to allow inspections. Adopt Section \[A\] 110.2 of the 2013 California Building Code as follows: \[A\] 110.2 Preliminary inspection. Before issuing a permit, the Building Official is authorized to examine or cause to be examined buildings, structures and sites for which an application has been filed. Adopt Section \[A\] 110.3.8 of the 2013 California Building Code as follows: \[A\] 110.3.8 Other Inspections. In addition to the called inspections specified above, the Building Official is authorized to make or require any other inspections of any construction work to ascertain compliance with the provisions of this code and other laws that are enforced by the Building Department.For the purpose of determining compliance, the Building Official may cause any structure to be reinspected.If any inspection is made at the request of any individual, property owner or lending institution, a fee equal to the cost of making such inspection shall be charged as set forth in the latest resolution adopted by the city. Council Agenda: November19, 2013 Page: 8 Revision Date: November19, 2013 514 16.02.260 Certificate of Occupancy. Adopt Section \[A\] 111.1 of the 2013 California Building Code as follows: \[A\] 111.1 Use and occupancy. No building or structure shall be used or occupied, and no change in the existing occupancy classification of a building or structure or portion thereof shall be made, until the Building Official has issued a certificate of occupancy therefor as providedherein. Issuance of a certificate of occupancy shall not be construed as an approval of a violation of any provision of this title or any ordinance of the City of Cupertino. Adopt Section \[A\] 111.2 of the 2013 California Building Code as follows: \[A\] 111.2 Certificate issued. After the Building Official inspects the building or structure and finds no violations of the provisions of this code or other laws that are enforced by the Building Department, the Building Official may issue a certificate ofoccupancy that contains the following: 1. The building permit number. 2. The address of the building or structure. 3. The name and address of the owner. 4. A description of that portion of the structure for which the certificate is issued. 5. A statement that the described portion of the structure has been inspected for compliance with the requirements of this code for the occupancy and division of occupancy and the use for which the proposed occupancy is classified. 6. The name of the Building Official. 7. The edition of the code under which the permit was issued. 8. The use and occupancy, in accordance with the provision of Chapter 3 of the California Building Code. 9. The type of construction as defined in Chapter 6 of the California Building Code. 10. The design occupant load. 11. If the automatic sprinkler system is provided, whether the sprinkler system is required. 12. Any special stipulations and conditions of the building permit. Adopt Section \[A\] 111.3 of the 2013 California Building Code as follows: \[A\] 111.3 Temporary occupancy. The Building Official is authorized to issue a temporary certificate of occupancy before the completion of the entire work covered by the permit, provided that such portion of portions shall be occupied safely. The Building Official shall set a time period during which the temporary certificate of occupancy is valid. Adopt Section \[A\] 111.4 of the 2013 California Building Code as follows: \[A\] 111.4 Revocation. The Building Official is authorized to, in writing, suspend or revoke a certificate of occupancy or completion issued under the provisions of the California Building Code wherever the certificate is issued in error, or on the basis of incorrect information supplied, or where Council Agenda: November19, 2013 Page: 9 Revision Date: November19, 2013 515 it is determined that the building or structure or portion thereof is in violation of any ordinance or regulation or any of the provisions of the California Building Code. 16.02.270 Board of Appeals. Adopt Section \[A\] 113.1 of the 2013 California Building Code and amend to read as follows: \[A\] 113.1 General. In order to hear and decide appeals of orders, decisions or determinations made by the Building Official relative to application and interpretation ofthe codes identified in this Title, there shall be and is hereby created a Board of Appeals consisting of five members who are qualified by experience and training to pass upon matters pertaining to building construction installations and materials.The Board of Appeals shall be appointed by the Mayor, subject to the approval of the City Council.The Board shall adopt reasonable rules and regulations for conducting its investigations and shall render all decisions and findings in writing to the Building Official, with a duplicate copy to the appellant, and may recommend to the City Council such new legislation as is consistent therewith.To the extent permitted by law, the same personnel of the Board of Appeals appointed under this code may act as the Board of Appeals under this Title.In the event where no such Board of Appeals has been established, the City Council shall serve as said Appeals Board. Add Section \[A\] 113.1.1 to read as follows: \[A\] 113.1.1 Access Compliance. Per Health and SafetyCode 19955 –19959.5, in order to hear and decide appeals of orders, decisions or determinations made by the Building Official relative to Access Compliance, there shall be and is hereby created a Board of Appeals consisting of five members to hear written appeals brought by any person regarding action taken by the Building Department.Two members of Accessibility Board of Appeals shall be physically handicapped persons, two members shall be persons experienced in construction, and one member shall be a public member. The Accessibility Board of Appeals shall be appointed by the Mayor, subject to the approval of the City Council.The Accessibility Board of Appeals shall adopt reasonable rules and regulations for conducting its investigations and shall render all decisions and findings in writing to the Building Official, with a duplicate copy to the appellant, and may recommend to the City Council such new legislation as is consistent therewith.In the event where no such Board of Appeals has been established, the City Council shall serve as said Appeals Board. 16.02.280Violations. Adopt Section \[A\] 114.1 of the 2013 California Building Code as follows: \[A\] 114.1 Unlawful acts. It shall be unlawful for any person, firm or corporation to erect, construct, alter, extend, repair, move, remove, demolish or occupancy any building, structure or equipment regulated by the codes identified in this title, or cause same to be done, in conflict with or in violation of any of the provisions of any code identified in this title. Adopt Section \[A\] 114.2 of the 2013 California Building Code as follows: Council Agenda: November19, 2013 Page: 10 Revision Date: November19, 2013 516 \[A\] 114.2 Notice of violation. The Building Official is authorized to serve a notice of violation or order on the person responsible for the erection, construction, alteration, extension, repair, moving, removal, demolition or occupancy of a building or structure in violation of any provisions of any code identified in this title, or in violation of a permit or certificate issued under the provisions of any code identified in this title. Such order shall direct the discontinuance of the illegal action or condition and the abatement of the violation. 16.02.290Stop Work Order. Adopt Section \[A\] 115.1 of the 2013 California Building Code as follows: \[A\] 115.1 Authority. Whenever the Building Official finds any work regulated by this code being performed in a manner either contrary to the provisions of any code identified in this title or dangerous or unsafe, the Building Official is authorized to issue a stop work order. Adopt Section \[A\] 115.2 of the 2013 California Building Code as follows: \[A\] 115.2 Issuance. The stop work order shall be in writing and shall be given to the owner of the property involved, or to the owner’s agent, or to the person doing the work. Upon issuance of a stop work order, the cited work shall immediately cease. The stop work order shall state the reason for the order, and the conditions under which the cited work will be permitted to resume. SECTION 2. Chapter 16.04 of Title 16 of the Cupertino Municipal Code is hereby repealed and readopted to read as follows: CHAPTER 16.04: BUILDING CODE 16.04.010 Code Adoption. The provisions of the 2013 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. 16.04.015 Adoption of Appendix Chapters. The following Appendix Chapters from the 2013California Building Code are hereby adopted. Appendix C: Group U –Agricultural Buildings; Appendix F: Rodentproofing; Council Agenda: November19, 2013 Page: 11 Revision Date: November19, 2013 517 Appendix G: Flood-Resistant Construction; Appendix I: Patio Covers; California Code Part 8: 2013California Historical Building Code; California Code Part 10: 2013California Existing Building Code; California Code Part 12: 2013 California Referenced Standards Code 16.04.050AddressIdentification. Adopt Section 501.2 of the 2013 California Building Code and amend to read as follows: New and existing buildings shall be provided with approved address numbers or letters. Each character shall be not less than 4inches in height and not less than 0.5 inch in width. They shall be installed on a contrasting background and be plainly visible from the street or road fronting the property. When required by the fire code official, address numbers shall be provided inadditional approved locations to facilitate emergency response. Where access is by means of a private road and the building address cannot be viewed from the public way, a monument, pole or other approved sign or means shall be used to identify the structure. Address numbers shall be maintained. No Certificate of Occupancy or final building approval for new construction or alterations shall be granted until the building or residence has a street address number posted. Subdivisions and Planned Developments shall submit a numbering schedule for approval by the Building Department and the Fire Department.All commercial buildings having a single address assigned with multi- suite arrangements shall have the suite-numbering system approved or assigned by the Building Department with an approved copy to the Fire Department for emergency use. 16.04.070 Exterior Wildfire Exposure. Amend Section 707A.8 of the 2013California Building Code to read as follows: 707A.8 Underside of appendages. The underside of overhanging appendages shall be enclosed to grade in accordance with the requirements of this chapter or the underside of the exposed underfloor shall consist of one of the following: 1.Noncombustible material. 2.Ignition-resistant material. 3.One layer of 5/8-inch Type X gypsum sheathing applied behind an exterior covering on the underside of the floor projection. 4.The exterior portion of a 1-hour fire resistive exterior wall assembly applied to the underside of the floor includingassemblies using the gypsum panel and sheathing products listed in the Gypsum Association Fire Resistance Design Manual. 5.The underside of a floor assembly that meets the performance criteria in accordance with the test procedures set forth in the SFM Standard 12-7A-3. Exception: Heavy timber structural columns and beams do not require protection. Council Agenda: November19, 2013 Page: 12 Revision Date: November19, 2013 518 Amend Section 710A.3of the 2013California Building Code to read as follows: 710A.3 Where required. Accessory structures shall comply with the requirements of this section. 710A.3.1 Attached accessory structures shall comply with the requirements of this section. Amend Section 710A.4 of the 2013 California Building Code to read as follows: 710A.4 Requirements. Accessory structures shall be constructed on noncombustible or ignition- resistant materials. 16.04.080Roof Covering Classification. Amend Section 1505.1.3 of the 2013California Building Code to read as follows: 1505.1.3 Roof coverings in all other areas. 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 thealteration, 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 1505.1.4 of the 2013 California Building Code to read as follows: 1505.1.4 Roofing requirements in a Wildland-Urban Interface Fire Area. 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. 16.04.340 Conventional Construction Provisions (Bracing). Amend Section 2308.9.3 of the 2013 California Building Code to read as follows: 2308.9.3 Bracing. Braced wall lines shall consist of braced wall panels that meet the requirements for location, type and amount of bracing as shown in Figure 2308.9.3, specified in Table 2308.9.3(1) and are in line or offset from each other by not more than 4 fee (1219 mm). Braced wall panels shall start not more than 12 ½ feet (3810 mm) from each end of a braced wall line. Braced wall panels shall be clearly indicated on the plans. Construction of braced wall panels shall be by one of the following methods: 1.Nominal 1-inch by 4-inch (25mm by 102 mm) continuous diagonal braces let into top and bottom plates and intervening studs, placed at an angle not more than 60 degrees (1.0 rad) or less Council Agenda: November19, 2013 Page: 13 Revision Date: November19, 2013 519 than 45 degrees (0.79 rad) from the horizontal and attached to the framing inconformance with Table 2304.9.1. 2.Wood boards of 5/8 inch (15.9 mm) net minimum thickness applied diagonally on studs spaced not over 24 inches (610 mm) o.c. 3.Wood structural panel sheathing with a thickness not less than 3/8 inch (9.5 mm) for 16-inch (406 mm) or 24-inch (610 mm) stud spacing in accordance with Tables 3308.9.3(2) and 3308.9.3(3). 4.Fiberboard sheathing panels not less than ½ inch (12.7 mm) thick applied vertically or horizontally on studs spaced not over 16 inches (406 mm) o.c. where installed with fasteners in accordance with Section 2306.6 and Table 2306.6. 5.Not adopted. 6.Particleboard wall sheathing panels where installed in accordance with Table 2308.9.3(4). 7.Portland cement plaster on studs spaced 16 inches (406 mm) o.c. installed in accordance with Section 2510. This item is limited to one-story structures of R-3 and U occupancies. 8.Hardboard panel siding where installed in accordance with Section 2303.1.6 and Table 2308.9.3(5). For cripple wall bracing, see Section 2308.9.4.1. For Methods 2,3,4,6,7 and 8, each panel must be at least 48 inches (1219 mm) in length, covering three stud spaces where studs are spaced 16 inches (406 mm) apart and covering two stud spaces where studs are spaced 24 inches (610 mm) apart. For Method 5, each panel must be at least 96 inches (2438 mm) in length where applied to one face of a panel and 48 inches (1219 mm) where applied to both faces. All vertical joints of panel sheathing shall occur over studs and adjacent panel joints shall be nailed to common framing members. Horizontal joints shall occur over blocking or other framing equal in size to the studding except where waived b the installation requirements for the specific sheathing materials. Sole plates shall be nailed to thefloor framing and top plates shall be connected to the framing above in accordance with Section 2308.3.2. Where joists are perpendicular to braced wall lines above, blocking shall be provided under and in line with the braced wall panels. 16.04.360 Concrete Isolated Footings. AmendSection 1705.3Exception #1 of the 2013CBC to read as follows: 1705.3Concrete Construction. The special inspectionsand verifications for concrete construction shall be as required by this section and Table 1705.3. Exception: 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). Council Agenda: November19, 2013 Page: 14 Revision Date: November19, 2013 520 16.04.370 Revise Section 1905.1.8 ACI 318Section 22.10. Amend Section 1905.1.8 and 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. Exception: 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 beprovided at corners and intersections. Exception: 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. 16.04.400 Swimming Pools. Adopt Section 3109 of the 2013 California Building Code. Inspections for Swimming Pools. A.AllWork to Be Inspected.All pool installations or alterations thereto including equipment, piping and appliances related thereto shall be inspected by the Building Department to insure compliance with the requirements of the California Building Code. B.Called Inspections.It shall be the duty of the person doing the work authorized by the building permit to notify the Building Department that said work is ready for inspection.Such notification shall be given not less than twenty-four hours before thework is to be inspected. Council Agenda: November19, 2013 Page: 15 Revision Date: November19, 2013 521 1.Pregunite inspection is required when all steel is in place, piping from the pool area is in with pressure test, all steel and related attachments are properly bonded and underwater light housing is installed; 2.An inspection is required for all conduit and gas piping under slabs before decks are poured; 3.Final inspection is required after all equipment is in place and operating, the pool is filled with water and all fences and gates are installed; 4.A reinspection fee per the adopted fee schedule per inspection will be charged for each inspection over two where the work is not ready or corrections have not been completed; 5.The owner shall arrange with the Building Departmentfor inspectors to enter the property to make necessary inspections in connection with the pool. SECTION 3. Chapter 16.06 of Title 16 of the Cupertino Municipal Code is hereby repealed and readopted to read as follows: CHAPTER 16.06 RESIDENTIAL CODE 16.06.010Code Adoption. The provisions of the 2013 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. 16.06.015Adoption of Appendix Chapters. The following Appendix Chapters from the 2013California 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; 16.06.050 Automatic Fire Sprinkler Systems. Amend Section R313.1 of the 2013 California Residential Code to read as follows: Council Agenda: November19, 2013 Page: 16 Revision Date: November19, 2013 522 R313.1 Townhouse automatic fire sprinkler systems. 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. 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. Amend Section R313.2 of the 2013 California Residential Code to read as follows: R313.2 One-and two-family dwellings automatic fire sprinkler systems. 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 dwellingsand in existing one-and two-family dwellings 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. 2.In all new basements and in existing basements that are expanded. Exception: Existing basements that are expanded by not more than 50%. 16.06.060 Materials and Construction Methods for Exterior Wildfire Exposure. Amend Section R327.7.8 of the2013 California Residential Code to read as follows: R327.7.8 Underside of appendages. The underside of overhanging appendages shall be enclosed to grade in accordance with the requirements of this chapter or the underside of the exposed underfloor shall consist of one of the following: 1.Noncombustible material. 2.Ignition-resistant material. 3.One layer of 5/8-inch Type X gypsum sheathing applied behind an exterior covering on the underside of the floor projection. 4.The exterior portion of a 1-hour fire resistive exterior wall assembly applied to the underside of the floor including assemblies using the gypsum panel and sheathing products listed in the Gypsum Association Fire Resistance Design Manual. 5.The underside of a floor assembly that meets the performance criteria in accordance with the test procedures set forth in the SFMStandard 12-7A-3. Exception: Heavy timber structural columns and beams do not require protection. Amend Section R327.10.3 of the 2013California Residential Code to read as follows: Council Agenda: November19, 2013 Page: 17 Revision Date: November19, 2013 523 R327.10.3.Where required. Accessory structures shall comply withthe requirements of this section. R327.10.3.1. Attached accessory structures shall comply with the requirements of this section. Amend Section R327.10.4 of the 2013 California Residential Code to read as follows: R327.10.4. Requirements. Accessory structures shall be constructed on noncombustible or ignition-resistant materials. 16.06.070 Footings. Amend Section R403.1 of the 2013 California Residential Codeto readas follows: R403.1 General. 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 provisionsof Section R403 or in accordance with ACI332. LOAD-BEARING VALUE OF SOIL (psf) 1,5002,0003,000 Conventional light-frame construction 1-story12121212 2-story15121212 3-story23171212 4-inch brick veneer over light frame or 8-inch hollow concrete masonry 1-story12121212 2-story21161212 3-story32241612 8-inch solid or fully grouted masonry 1-story16121212 2-story29211412 3-story42322116 For SI: 1 inch = 25.4 mm, 1 pound per square foot = 0.0479kPa. 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 of the 2013 California Residential Code to read as follows: R403.1.1 Minimum size. 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 Council Agenda: November19, 2013 Page: 18 Revision Date: November19, 2013 524 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. 16.06.080Roof Covering Classification. Amend Section R902.1.3 of the 2013 California Residential Code to read as follows: R902.1.3 Roof coverings in all other areas. 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 roofcovering 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 of the 2013 California Residential Code to read as follows: R902.1.4 Roofing coverings within the Wildland-Urban Interface Fire Area. 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. 16.06.085 Spark Arrestors. 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 2013 California Residential Code Section R1003.9.2. 16.06.090Seismic Reinforcing. Amend Section R403.1.3 of the 2013 California Residential Code to read as follows: R403.1.3 Seismic reinforcing. Concrete footings located in Seismic Design Categories D, Dand 01 D, as established in Table R301.2(1), shall have minimum reinforcement of at least two continuous 2 Council Agenda: November19, 2013 Page: 19 Revision Date: November19, 2013 525 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 D, Dand Dwhere a construction joint is created between a concrete 012 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 D, Dand Dwhere a grouted masonry stem wall is supported on a 012 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 barshall extend to 3 inches (76 mm) clear of the bottom of the footing and have a standard hook. In Seismic Design Categories D, Dand Dmasonry stem walls without solid grout and vertical 012 reinforcing are not permitted. Exception: 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. 16.06.100 Intermittent Brace Wall Panel Construction Methods. Amend CRC Section R602.10.4, to add a new footnote “e”to the end of CRC Table R602.10.3(3), to read as follows: e.In Seismic Design Categories D, D, and D, Method GB is not permitted and the use of Method 012 PCP is limited to one-story single family dwellings and accessory structures. Add the “e”footnote notation in the title of Table R602.10.1.3(3) to read as follows: e TABLE R602.10.3(3) Add a new subsection R602.10.4.4, to read as follows: R602.10.4.4 Limits on methods GB and PCP . In Seismic Design Categories D, D, and D, 012 Method GB is not permitted for use as intermittent braced wall panels, but gypsum board is 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, and D, the 012 use of Method PCP is limited to one-story single family dwellings and accessory structures. Council Agenda: November19, 2013 Page: 20 Revision Date: November19, 2013 526 SECTION 4. Chapter 16.12 of Title 16 of the Cupertino Municipal Code is hereby repealed and readopted to read as follows: CHAPTER 16.12 SOILS AND FOUNDATIONS -SUBDIVISIONS 16.12.010 Code Adoption. The ordinance codified in this chapter is enacted pursuant to the provisions of Section 17953 through 17957 of the Health and Safety Code, relating to housing, and reaffirms the requirements of an approved soils report as a condition to the issuance of a building permit. 16.12.020Required. A.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. B.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. C.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. 16.12.030Report Requirements. The report shall be comprehensive and shall include an analysis of: A.Stability of all slopes, within the lot (subdivision) or slopes above, below or adjacent to the area under investigation; B.The classification of all soils for expansion potential; C.The classification of the soils according to the Unified Soils Classification System; D.The establishment of design bearing values and anticipated maximum settlements; E.Soil profiles including relevant data to depths which reflect the nature and magnitude of the future loading; F.The presence of rocks or liquids containing deleterious chemicals, which, if not corrected, could cause construction materials such as concrete, steel, and ductile or cast iron to corrode or deteriorate. Council Agenda: November19, 2013 Page: 21 Revision Date: November19, 2013 527 16.12.040Preparation. The soils report shall be prepared by a civil engineer who is registered by the state and shall be based upon adequate test borings, excavations, or in the case of the letter of review, field observations. 16.12.050Approval of Report. The preliminary soil report shall be filed with and approved by the City Engineer. 16.12.060Conditions for Building Permit. No building permit shall be issued for the construction of any structure on any lot or subdivision subject to this chapter unless or until an approved preliminary soil report has been filed first with the 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 5. Chapter 16.16 of Title 16 of the Cupertino Municipal Code is hereby repealed and readopted to read as follows: CHAPTER 16.16: ELECTRICAL CODE 16.16.010Code Adoption. The provisions of the 2013California 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. 16.16.015 Adoption of Appendix Chapters. No Appendix Chapters from the 2013California Electrical Code have been adopted. 16.16.020 Article 100 Amended–Definitions. Article 100 as amended by adding thereto the following: A.Electrical Contractors:For the purpose of this article, an Electrical Contractor shall be a person holding a valid electrical contractor's license issued by the State of California. Council Agenda: November19, 2013 Page: 22 Revision Date: November19, 2013 528 B.Journeyman Electrician:A journeyman electrician is an electrician qualified by training and experience to do electrical work in conjunction with new construction and/or rework of existing systems. C.Maintenance Electrician:A maintenance electrician in an electrician qualified by training and experience to do the recurring work required to keep a facility in such condition that it may be utilized at its designated capacity and efficiency, to do repair work or replacement or overhaul of constituent parts or materials to keep or restore a facility to a condition substantially equivalent to its original or design capacity or efficiency. 16.16.025 Electrical Work. Electrical work shall be done only by: a.Owner/occupant; b.Electrical contractors who are in compliance with the state licensing laws and whose employees are under the direct supervision of a qualified journeymanelectrician; c.General Building Contractor with current B-1 license in conjunction with building permit only; d.Maintenance electrician. 16.16.030 Electrical Fee Schedule. Electrical fees shall be paid to the city as set forth in the latest resolution adopted by the city. 16.16.040Interpretation. A.The language used in this code, and the California Electrical Code, which is made a part of this code by reference, is intended to convey the common and accepted meaning familiar to the electrical industry. B.The Building Official or his assistants is authorized to determine the intent and meaning of any provisions of this code.Such determination shall be made in writing and a record kept, which record shall be open to the public. 16.16.050Electrical Maintenance Program. Any person regularly employing one or more full-time qualified electricians for the purpose of installation, alteration, maintenance or repair on any property which such person owns or occupies, may designate a qualified electrician as a maintenance electrician.Upon being approved by the Chief Building Official, the maintenance electrician shall make monthly or quarterly reports to the city covering all installations, additions, or alterations.All such work shall be installed and done in accordance withthe provisions of the Electrical Code, and shall be subject to the payment of fees, and to inspection by the electrical inspector to the same extent as similar work performed by other persons and for which such inspection is provided. Council Agenda: November19, 2013 Page: 23 Revision Date: November19, 2013 529 SECTION 6. Chapter 16.20 of Title 16 of the Cupertino Municipal Code is hereby repealed and readopted to read as follows: CHAPTER 16.20: PLUMBING CODE 16.20.010 Code Adoption. The provisions of the 2013California 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. 16.20.015Adoption of Appendix Chapters. The following Appendix Chapters from the 2013California 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 C: Alternate Plumbing Systems; Appendix D: Sizing Storm Water Drainage Systems; Appendix H: Private Sewage Disposal Systems; Appendix I: Installation Standards; 16.20.020 Name Insertion. The names “Cupertino” and/or “California” shall be inserted in the appropriate places provided therefor in each and every section of such California Plumbing Codewherein either the name of the city or state is left blank. 16.20.080Condensate Disposals. Amend Section 807.2 of the 2013 California Plumbing Code to read as follows: 807.2 Condensate Waste. Condensate from air-cooling coils and comfort cooling equipment not intended to be used for the storage or holding of food or drinks shall be collected and discharged to an approved point of disposal acceptable by the Building Official. Termination of such drains shall be made by an air break.Condensate drain lines in sizes 1 1/4" and larger shall be assembled using approved drainage pipe and fittings. Condensate waste water Council Agenda: November19, 2013 Page: 24 Revision Date: November19, 2013 530 shall not drain over or upon a public way, sidewalk, pedestrian ramp or the like.The waste pipe shall have a slope of not less than 1/8 inch per foot and shall be of approved corrosion-resistant material not smaller than the outlet size as required below for air-cooling coils or condensing fuel- burning appliances, respectfully. Condensate wastes pipes from air-cooling coils shall be sized in accordance with equipment capacity as follows: EQUIPMENT CAPACITYCONDENSATE PIPE DIAMETER Up to 20 tons of refrigeration3/4 inch 21 to 40 tons of refrigeration1 inch 41 to 90 tons ofrefrigeration1-1/4 inch 91 to 125 tons of refrigeration1-1/2 inch 126 to 250 tons of refrigeration2 inch The size of condensate waste pipes may be for one unit or a combination of units, or as recommended by the manufacturer. The capacity of waste pipes assumes a 1/8 inch-per-foot slope, with the pipe running three-quarters full. Condensate drain sizing for other slopes or other conditions shall be approved by the Building Official. Findings The waste water treatment facilities serving many silicon valley cities are operating at or near maximum capacity.The discharge of treated waste water into San Francisco Bay is detrimental to its sensitive ecosystem. Cooling coil and comfort cooling equipment condensate waste discharge does not contain pollutants which require treatment before being discharged into sanitary sewers or the ground. SECTION 7. Chapter 16.24 of Title 16 of the Cupertino Municipal Code is hereby repealed and readopted to read as follows: CHAPTER 16.24: MECHANICAL CODE 16.24.010 Code Adoption. The provisions of the 2013 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. Council Agenda: November19, 2013 Page: 25 Revision Date: November19, 2013 531 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. 16.24.015 Adoption of Appendix Chapters. No Appendix Chapters from the 2013California Mechanical Code have been adopted. 16.24.020 Name Insertion. The names “Cupertino” and/or “California” shall be inserted in the appropriate places provided therefor in each and every section of such California Mechanical Code wherein either the name of the city or state is left blank. 16.24.030Condensate Wastes. Amend Section 312.1 of the 2013 California Mechanical Code to read as follows: 312.1 Condensate Disposal. Condensate from air cooling coils and comfort cooling equipment not intended to be used for the storage or holding of food or drinks shall be collected and discharged to an approved point of disposal acceptable to the Building Official. Termination of such drains shall be made by an air break.Condensate drain lines in sizes 1-1/4” and larger shall be assembled using approved drainage pipe andfittings.Condensate waste water shall not drain over or upon a public way, sidewalk, pedestrian ramp or the like. Findings The waste water treatment facilities serving many Silicon Valley cities are operating at or near maximum capacity.The discharge of treated waste water into San Francisco Bay is detrimental to its sensitive ecosystems. Cooling coil and comfort cooling equipment condensate waste discharge does not contain pollutants which require treatment before being discharged into sanitary sewers or the ground. SECTION 8. Chapter 16.32 of Title 16 of the Cupertino Municipal Code is hereby repealed. SECTION 9. The Title of Chapter 16.36 of Title 16 of the Cupertino Municipal Code is hereby amended to read as follows: CHAPTER 16.36: RELOCATION OF BUILDINGS Council Agenda: November19, 2013 Page: 26 Revision Date: November19, 2013 532 SECTION 10. Section 16.36.010 of Chapter 16.36 of Title 16 of the Cupertino Municipal Code is hereby amended to read as follows: 16.36.010Definitions. For the purposes of this chapter the following terms,phrases, words, and their derivations shall have the meaning given herein.When not inconsistent with the context, words used in the present tense include the future, words in the plural number include the singular number and words in the singular numberinclude the plural number.The word “shall” is always mandatory and not merely directory. A.“Building” means any structure used or intended for supporting or sheltering any use or occupancy.A structure containing less than one hundred and twenty (120) square feet of floor space shall not fall within this definition; B.“Building Official” means the Chief Building Official for the City or designee; C.“City” means the City of Cupertino; D.“Person” means any person, firm, partnership, association, corporation, company or organization of any kind. SECTION 11. Section 16.36.020 of Chapter 16.36 of Title 16 of the Cupertino Municipal Code is hereby amended to read as follows: 16.36.020Permit-Required. No person shall move any building over, along or across any highway, street or alley in the city without first obtaining a permit from the Building Department. SECTION 12. Section 16.36.030 of Chapter 16.36 of Title 16 of the Cupertino Municipal Code is hereby amended to read as follows: 16.36.030Permit-Application. A person seeking issuance of a permit hereunder shall file an application for such permit with the Building Department: A.Form.The application shall be made in writing, uponforms provided by the Building Department, and shall be filed in the office of the Building Official; B.Contents.The application shall set forth: 1.A description of the building proposed to be moved, giving street number, construction materials, dimensions, number of rooms and condition of exterior and interior, 2.A legal description of the lot from which the building is to be moved, giving the lot, block and tract number, if located in the city, 3.A legal description of the lot to which it is proposed such building be removed, giving lot, block and tract number, if located in the city, 4.The portion of the lot to be occupied by the building when moved, 5.The highways, streets and alleys over, along oracross which the building is proposed to be moved, Council Agenda: November19, 2013 Page: 27 Revision Date: November19, 2013 533 6.Proposed moving date and hours, 7.Any additional information which the Building InspectorOfficial shall find necessary to a fair determination of whether a permit should issue; C.Accompanying Papers. 1.Tax Certificate.The owner of the building to be moved shall file with the application sufficient evidence that the building and lot from which it is to be removed are free of any entanglements and that all taxes and any City charges against the same are paid in full, 2.Certificate of Ownership or Entitlement.The applicant, if other than the owner, shall file with the application a written statement or bill of sale signed by the owner, or other sufficient evidence, that he is entitled to move the building. SECTION 13. Section 16.36.040 of Chapter 16.36 of Title 16 of the Cupertino Municipal Code is hereby amended to read as follows: 16.36.040Moving Notice. Upon receiving an application to move an old or previously occupied building, the Building Official shall cause a notice to be posted on the front and rear of the proposed location and on the front of the building proposed to be moved. Such notice shall have a title in letters not less than one inch in height, “MOVING NOTICE”; shall give the location of the house by street and number and the name and address of the applicant desiring a permit to move such building. SECTION 14. Section 16.36.050 of Chapter 16.36 of Title 16 of the Cupertino Municipal Code is hereby amended to read as follows: 16.36.050Permit-Issuance-Hearing. After the above described notices have been in place seventy-two hours, excluding Sundays and holidays, and no written protests have been received, the Building Official shall issue the permit subject to all the provisions of this chapter.If any written protests are filed with the Building Department, a time shall be set for a hearing before the City Council, said time to be not sooner than three days nor later than twenty days from the date of the filing of the protest.The Building Official shall notify the City Council and the other interested parties of the hour set for such hearing.No permit shall issue unless the City Council shall deny the protest. SECTION 15. Provisions of Section 16.36.055 and 16.36.060 of Chapter 16.36 of Title 16 of the Cupertino Municipal Code remain unchanged. SECTION 16. Section 16.36.070 of Chapter 16.36 of Title 16 of the Cupertino Municipal Code is hereby amended to read as follows: Council Agenda: November19, 2013 Page: 28 Revision Date: November19, 2013 534 16.36.070Permit-Conditions. Any permit issued under this chapter shallbe subject to the following conditions: A.Certificates.No permit shall be issued unless there is first filed a certificate of inspection signed by the BuildingOfficial certifying that he examined the building and that it is structurally strong; and unless there is also filed a certificate certifying that the removal of said building on the route proposed will not result in damage of or destruction to trees; B.Locations Outside City.No permit shall be issued to move a building through the city from one location outside the city to another location outside the city unless the proposed route to be followed within the city shall be approved by the Building Official; C.Location Within City from Outside.No permit shall be issued to move a building from a location outside the city to a location inside the city unless the building has been inspected and approved, and the route to be followed has been approved by the Building Official.Inspection fees shall be paid by the applicant in accordance with the requirements of City ordinances regulating building, electrical, plumbing and gas installations.The lot upon which such building is to be moved shall be posted as required for buildings to be moved within the city; D.Accessory Building.An accessory building, not over four hundred square feet in area, may be moved in conjunction with the moving of a residence from the same location to the same location without paying an additional fee. SECTION 17. Sections 16.36.080, 16.36.090, 16.36.100, and 16.36.110 of Chapter 16.36 of Title 16 of the Cupertino Municipal Code remain unchanged. SECTION 18. Section 16.36.120 of Chapter 16.36 of Title 16 of the Cupertino Municipal Code is hereby amended to read as follows: 16.36.120Personin Charge-Duties. Every person in charge of the moving of any building on or over the streets of the city shall: A.Notify the Fire Department within one-half hour after sunset of the location of the building and the route over which the buildingis to be moved during the night; B.Give twenty-four hours written notice to any person responsible for trimming trees, removing wires or the doing of other things necessary to permit the moving of the building over the route designated; C.Maintain red lights at each corner of the building from one-half hour after sunset till one-half hour before sunrise; D.Carry insurance to cover accidents or damage to persons and property or furnish bond therefor satisfactory to the Building Official; E.Notify the Sheriff’s office of the time of moving and the route over which the building is to be moved. SECTION 19. Section 16.36.130 of Chapter 16.36 of Title 16 of the Cupertino Municipal Code is hereby repealed: Council Agenda: November19, 2013 Page: 29 Revision Date: November19, 2013 535 SECTION 20. Chapter 16.40 of Title 16 of the Cupertino Municipal Code is hereby repealed in its entirety and replaced with the following Chapter 16.40 in its entirety: CHAPTER 16.40: FIRE CODE 16.40.010 Code Adoption. The provisions of the 2013 California Fire 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 and the Fire Code Official pursuant to Health and Safety Code Section 18942 (d) (1) and are made available for public inspection. 16.40.015 Adoption of Appendix Chapters. The following Appendix Chapters from the 2013 California Fire Code are hereby adopted. Appendix B: Flow Requirement for Buildings; Appendix C: Fire Hydrant Locations and Distribution; Appendix K: Temporary Haunted Houses, Ghost Walks and Similar Amusement Uses. 16.40.020 Administration. Add Section 101.3.1 to the 2013 California Fire Code 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. Council Agenda: November19, 2013 Page: 30 Revision Date: November19, 2013 536 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. 16.40.065 Permits. Add Section \[A\] 105.1.4 to the 2013 California Fire Code to read as follows: \[A\]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 Departmentin 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. TOTAL VALUATIONSPERMIT FEE $1.00 TO $500.00$23.50 $501.00 TO $2,000.00$23.50 for the first $500.00 plus $3.05 for each additional $100.00, or fraction thereof, to and including$2,000.00 $2001.00 TO $25,000.00$69.25 for the first $2,000.00 plus $14.00 for each additional $1,000.00 or fraction thereof, to and including $25,000.00 $25,001.00 TO $50,000.00$391.25 for the first $25,000.00 plus $10.10 for each additional $1,000.00, or fraction thereof, to and including $50,000.00 $50,001.00 TO $100,000.00$643.75 for the first $50,000.00 plus $7.00 for each additional $1,000.00, or fraction thereof, to and including $100,000.00 $100,001.00 to $500,000.00$993.75 for the first $100,000.00 plus $5.60 for each additional $1,000.00, or fraction thereof, to and including $500,000.00 $500,001 to $1,000,000.00$3,233.75 for the first $500,000.00 plus $4.75 for 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 $50.00 for each occurrence at the discretion of the fire code official. Add Section \[A\] 105.1.5 the 2013 California Fire Code to read as follows: \[A\] 105.1.5 Operational permit fees. Operational permit fees shall be paid to the Santa Clara County Fire Department as follows: Council Agenda: November19, 2013 Page: 31 Revision Date: November19, 2013 537 FACILITY TYPEPERMIT FEE 1.Institutional A. More than 6 persons $75.00-Annually B. Over 50 persons$100.00-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 Structures, Tents and Canopies $85.00–Each (Only those requiring permits in accordance with Section occurrence 105.6.43). Amend Section \[A\] 105.6.8 of the 2013 California FireCode to read as follows: \[A\] 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. Exceptions: 1.Vehicles equipped for and using compressed gas as a fuel for propelling the vehicle. 2.Inert and simple asphyxiants at or below the amounts listed in Table105.6.8. Amend Table 105.6.8 of the 2013 California Fire Codeto readas follows: TABLE 105.6.8 PERMIT AMOUNTS FOR COMPRESSED GASES 1 TYPE OF GASAMOUNT cubic feet at NTP 2 Corrosive200 Flammable (except cryogenic and liquefied petroleum gases)200 Highly toxicAny amount Inert and simple asphyxiant6,000 Irritant200 Moderately toxic20 Other health hazards650 Oxidizing (including oxygen)504 PyrophoricAny amount RadioactiveAny amount Sensitizer200 Council Agenda: November19, 2013 Page: 32 Revision Date: November19, 2013 538 ToxicAny Amount Unstable (reactive)Any amount Refer to Chapters 27, 30, 32, 35, 37, 40 and 41 for additional requirements and exceptions. 1 Cubic feet measured at normal Temperature and pressure. 2 Amend Section 105.6.10 of the 2013 California Fire Code 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. Amend Table 105.6.20of the 2013 California Fire Code to read as follows: TABLE 105.6.20 PERMIT AMOUNTS FOR HAZARDOUS MATERIALS TYPE OF MATERIALAMOUNT Carcinogens 10 pounds Combustible liquidsSee Section 105.6.16 Corrosive materials: GasesSee Section 105.6.8 Liquids55 gallons Solids500 pounds CryogensSee Section 105.6.10 Explosive materialsSee Section 105.6.14 Flammable materials: GasesSee Section 105.6.8 LiquidsSee Section 105.6.16 Solids100 pounds Highly toxic materials: GasesSee Section 105.6.8 LiquidsAny amount SolidsAny amount Moderately toxic gasSee Section 105.6.8 Organic peroxides: Liquids: Class I-IVAny Amount Liquids: Class VNo Permit Required Solids: Class I-IVAny Amount Solids: Class VNo Permit Required Oxidizing materials: GasesSee Section 105.6.8 LiquidsAny amount Council Agenda: November19, 2013 Page: 33 Revision Date: November19, 2013 539 Solids:Any amount Other health hazards: Liquids55 gallons Solids500 pounds Pyrophoric materials: GasesSee Section 105.6.8 LiquidsAny amount SolidsAny amount Radioactive materials: GasesSee Section 105.6.8 LiquidsSee Section 105.6.50 SolidsSee Section 105.6.50 Toxic materials: GasesSee Section 105.6.8 LiquidsAny amount SolidsAny amount Unstable (reactive) materials: GasesSee Section 105.6.8 LiquidsAny amount SolidsAny amount Water reactive materials: LiquidsAny amount SolidsAny amount For SI:1 gallon = 3.785 L, 1 pound = 0.454 kg. a.20gallons when Table 5003.1.1(1) Note k applies and hazard identification signs in accordance with Section 5003.5 are provided for quantities of 20 gallons or less. b.200 pounds when Table 5003.1.1(1) Note k applies and hazard identification signsin accordance with Section 5003.5 are provided for quantities of 200 pounds or less. Add Section \[A\] 105.6.48 to the 2013 California Fire Code to read as follows: \[A\]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. Add Section \[A\] 105.6.49 to the 2013 California Fire Code to read as follows: \[A\] 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. Add Section \[A\] 105.6.50 to the 2013 California Fire Code to read as follows: \[A\]105.6.50 Radioactives. To store or handle at any installation more than one microcurie (37,000 Council Agenda: November19, 2013 Page: 34 Revision Date: November19, 2013 540 becquerel) of radioactive material not contained in a sealed source or sources, or any amount of radioactive material for which a specific license from the Nuclear Regulatory Commission. Amend Section \[A\] 105.7.3 of the 2013 California Fire Code to read as follows: \[A\]105.7.3 Compressed Gases. A construction permit is required to install any piped distribution system for compressed gases, or to install a non-flammable medical gas manifold system. A construction permit is required to install, repair damage to, abandon, remove, place temporarily out of service, close or substantially modify a compressed gas system. Exceptions: 1.Routine maintenance. 2.For emergency repair work performed on an emergency basis, application for permit shall be made within two working days ofcommencement of work. 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. Amend Section \[A\] 105.7.4 of the 2013 California Fire Code to read as follows: \[A\]105.7.4 Cryogenic fluids. A construction permit is required for installation of or alteration to cryogenic fluid storage systems where the system capacity exceeds the amounts listed in Table 105.6.10. Maintenance performed in accordance with this code is not considered an alteration and does not require a construction permit. Add Section \[A\] 106.5 to the 2013 California Fire Code to read as follows: \[A\] 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. 16.40.070 Definitions. The following definitions are added/amended: 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. Council Agenda: November19, 2013 Page: 35 Revision Date: November19, 2013 541 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. CORROSIVE LIQUID . Corrosive liquid is: 1.any liquid which, when in contact with living tissue, will cause destruction or irreversible alteration of such tissue by chemical action; 2.any liquid having a pH of 2 or less or 12.5 or more; 3.any liquid classified as corrosive by the U.S. Department of Transportation; and 4.any material exhibiting the characteristics of corrosivity in accordance with Title 22, California Code of Regulations §66261.22. DEVICE. Device is 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. MODERATELY TOXIC GAS. A chemical or substance that has a median lethal concentration (LC50) in air more than 2000 parts permillion 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, LC50 shall be calculated using CGA Standards P-20 and P-23 as referenced in Appendix E, Section E103.1.3.1 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 theblood 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. Council Agenda: November19, 2013 Page: 36 Revision Date: November19, 2013 542 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. Amend Section 311.1 of the 2013 California Fire Code to read as follows: 311.1 General. Temporarily unoccupied buildings, structures, premises or portions thereof, including tenant spaces, shall be safeguarded and maintained in accordance with Sections 311.1.1 through 311.4. Section 311.5 of the 2013 California Fire Code is not adopted. 16.40.120 Fire apparatus access roads. Amend Section 503.1 of the 2013 California Fire Code to read 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 503.2.1 of the 2013 California Fire Code to read as follows: 503.2.1 Dimensions. Fire apparatus access roads shall have an unobstructed width of not less than 20 feet (6096 mm), exceptfor 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. 16.40.130 Access to buildings and roofs. Add Section 504.5 to the 2013 California Fire Code to read as follows: 504.5 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.Allelectrically 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. Council Agenda: November19, 2013 Page: 37 Revision Date: November19, 2013 543 16.40.140 Hazards to firefighters. Add Section 504.6 to the 2013 California Fire Code to read as follows: 504.6 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. 16.40.150 Emergency Responder Radio Coverage. Add Section 510.1.1 to the 2013 California Fire Code to read as follows: 510.1.1 Obstruction by new buildings. When determined that 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. 16.40.180 Electrical equipment, wiring and hazards. Add Section 605.11 to the 2013 California Fire Code to read as follows: 605.11Immersion 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 608.6.4to the 2013 California Fire Code to read as follows: 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 of the 2013 California Fire Code to read as follows: Council Agenda: November19, 2013 Page: 38 Revision Date: November19, 2013 544 Display inside buildings. The display of Christmas trees and other decorative vegetation shall be in accordance with the California Code of Regulations, Title 19, Division 1, §3.08 and Sections 806.1 through 806.5. Exceptions: 1.Trees located in areas protected by an approved automatic sprinkler systemin accordance Section 903.1.1 or 903.3.1.2 shall notbe prohibited in Groups A, E, M, R-1 and R-2. 2.Trees shall be allowed within dwelling units in Group R-2 occupancies. 16.40.210 Automatic sprinkler systems. Amend Section 903.2of the 2013 California Fire Code to read as follows: 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 toseparatebuilding areasshall be constructed in accordance with the California Building Code andshall be without openings or penetrations. 1.In other than residential buildings which require the installation of fire sprinklers for all new buildings according to the California Residential Code, an automatic sprinkler system shall be provided throughout all new buildings and structures. Exceptions: a.Buildings and structures that do not exceed 1,000 square feet of building area and that are notlocated in the Wildland-Urban Interface Fire Area. b.Buildings and structures that are located in the Wildland-Urban Interface Fire Area and do not exceed 500 square feet of building area. c.Group S-2 or U occupancies that are not located in the Wildland-Urban Interface and used exclusively for vehicle parking and meeting all of the following conditions: i.Noncombustible construction ii.Maximum building area not to exceed 5,000 square feet iii.Structure is open on three (3) or more sides iv.Minimum of 10 feet separation from existing buildings unless area is separated by fire walls complying with CBC 706. 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: Council Agenda: November19, 2013 Page: 39 Revision Date: November19, 2013 545 One or more additions made to a building after January 1, 2011 that do not total more than 1,000 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 morethan 50%. 5.Any change in the character of occupancy or in use of any building with a building area equal to or greater than 3,600 square feet which, in the opinion of the fire code official or Building Official, would place the building into a more hazardous division of the same occupancy group 1 or into a different group of occupancies and constitutes a greater degree of life safetyor 2 increased fire risk, shall require the installation of an approved automatic fire sprinkler system. 1 Life Safety –Increased occupant load, public assembly areas, public meeting areas, churches, indoor amusement attractions, buildings with complex exiting systems due to increased occupant loads, large schools/day-care facilities, large residential care facilities with non-ambulatory; 2 Fire Risks –High-piled combustible storage, woodworking operations, hazardous operations using hazardous materials, increased fuel loads (storage of moderate to highly combustible materials), increased sources of ignition (welding, automotive repair withthe use of flammable liquids and open flames). Amend Section 903.3.1.1of the 2013 California Fire Code to read as follows: 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. For new buildings having no designated use or tenant, the minimum sprinkler design density shall be Ordinary Hazard Group 2. Where future use or tenant is determined to require a higher density, the sprinkler system shall be augmented to meet the higher density. 16.40.225 Precautions against fire. Add Section 3304.8 to the 2013 California Fire Codeto read as follows: 3304.8Fire 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 3311.1 of the 2013 California Fire Code to read as follows: Council Agenda: November19, 2013 Page: 40 Revision Date: November19, 2013 546 3311.1Stairways 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. Stairwaysserving 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 3311.1.1 to the 2013 California Fire Code to read as follows: Section 3311.1.1Required 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 3308.2. 16.40.280 General Requirements –Lumberyards and Woodworking Facilities. Add Section 2803.8 to the 2013 California Fire Code to read as follows: 2803.8 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. 16.40.300 Definitions –Wildland Urban Interface Fire Areas. 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. 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. 16.40.310 Application. Amend Section 4906.2of the 2013 California Fire Code to read as follows: 4906.2 Application. Buildings and structures located in the following areas shall maintain the required hazardous vegetation and fuel management: Council Agenda: November19, 2013 Page: 41 Revision Date: November19, 2013 547 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. 16.40.320 Defensible space. Amend Section 4907.1of the 2013 California Fire Code to read as follows: 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. Defensible space shall also be provided around water tank structures, water supply pumps and pump houses. 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 andclearing 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. Council Agenda: November19, 2013 Page: 42 Revision Date: November19, 2013 548 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. 6.Remove flammable vegetation a minimum of 30 feet around liquefied petroleum gas tanks/containers. 7.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). Exception: Firewood and combustible materials not for consumption on the premises shall be stored as approved by the fire code official. 8.Clearareas within 10 feet (3048 mm) of fire apparatus access roads and driveways of non-fire- resistive vegetation growth. Exception: Single specimens of trees, ornamental vegetative fuels or cultivated ground cover, such as greengrass, ivy, succulents or similar plants used as ground cover, provided they do not form a means of readily transmitting fire. Add Section 4907.2to the 2013 California Fire Code to read as follows: 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 conditions exists. 16.40.330 Fire protection plan. 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-resistancefactors, 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. Council Agenda: November19, 2013 Page: 43 Revision Date: November19, 2013 549 4908.4 Plan Retention. The fire protection plan shall be retained by the fire code official. 16.40.340 Water Supply. Add Section 4909to the 2013 California Fire Code to read as follows: 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 protection water supplies in accordance with Chapter 5 and Section 4909.2. Exception: Buildings containing only private garages, carports, sheds and agricultural buildings with a building area of not more than 500 square feet (56 m2). 4909.2 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. 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. 16.40.350 Ignition source control. 4910.1 Fireworks. Fireworks shall not be used or possessed in the Wildland-Urban Interface Fire Area. 16.40.355 General -Hazardous Materials. Amend Section 5001.2.2.2of the 2013 California Fire Code to read as follows: 5001.2.2.2 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 and toxic materials. 2.Corrosive materials. 3.Moderately toxic gas. 4.Other health hazards. 16.40.360 General requirements -Hazardous Materials. Council Agenda: November19, 2013 Page: 44 Revision Date: November19, 2013 550 Add Section 5003.1.3.1 to the 2013 California Fire Code to read as follows: 5003.1.3.1Toxic, Highly Toxic, Moderately Toxic Gases and Similarly Used or Handled Materials. The storage, use and handling of toxic, highly toxic and moderately toxic gases in amounts exceeding Table 6004.2or 6004.3shall be in accordance with this chapter and Chapter 60. 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 5003.1.5 to the 2013 California Fire Code to read as follows: 5003.1.5Other Health Hazards. The storage, use and handling of materials 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 5003. Add Section 5003.1.6 to the 2013 California Fire Code to read as follows: 5003.1.6 Spill Control and Secondary Containment Requirements. A containment system shall be required forall 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, spill control and secondary containment shall also comply with Section 5004.2. Amend Section 5003.2.2.1 of the 2013 California Fire Code to read as follows: 5003.2.2.1Design 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: a.The point of use. b.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. Council Agenda: November19, 2013 Page: 45 Revision Date: November19, 2013 551 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 Class3 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 controlshall be located as close to the bulk source as practical. Exception: a.Piping for inlet connections designed to prevent backflow. b.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 6004.2and 6004.3.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 5003.2.2.2 of the 2013 California Fire Code to read as follows: 5003.2.2.2Additional Regulation for Supply Piping forHealth 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 ifthe material is a liquid. Council Agenda: November19, 2013 Page: 46 Revision Date: November19, 2013 552 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 415.10.6.4of the California Building Codeas 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 5003.3.1 of the 2013 California Fire Code to read as follows: 5003.3.1Unauthorized 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 firecode official shall be notified immediately in an approved manner and the following procedures required in accordance with Sections 5003.3.1.1through 5003.3.1.4. Add Section 5003.5.2 to the 2013 California Fire Code to read as follows: 5003.5.2Ventilation 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 Section 5003.5.3 to the 2013 California Fire Code to read as follows: 5003.5.3"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. Add Sec. 5003.9.11 of the 2013 California Fire Code to read as follows: 5003.9.11Fire 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 2703.10. 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. 16.40.365 Storage -Hazardous Materials. Amend Section 5004.2.1 of the 2013 California Fire Code to read as follows: Council Agenda: November19, 2013 Page: 47 Revision Date: November19, 2013 553 5004.2.1Spill 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 similarareas 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 perimeteropenings having an open-grate trench across the opening that connects to an approved collection system. Amend Section 5004.2.2 of the 2013 California Fire Code to read as follows: 5004.2.2Secondary 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:5004.2.2REQUIRED SECONDARY CONTAINMENT FOR HAZARDOUS MATERIAL SOLIDS AND LIQUIDS STORAGE Amend Section 5004.2.2.2 of the 2013 California Fire Code to read as follows: 5004.2.2.2 Incompatible Materials. Incompatible materials shall be separated from each other in independent secondary containment systems. 16.40.370 General –Explosives and Fireworks. Amend Section 5601.1 of the 2013 California Fire Codeto read as follows: 5601.1Scope. For explosives requirements see California Code of Regulations, Title 19, Division 1, Chapter 10 and Section 5601.2 of this Chapter. For fireworks requirements see California Code of Regulations, Title 19, Division 1, Chapter 6 and Section 5601.3of this Chapter. For small arms ammunition, see Section 5601.5of 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. Council Agenda: November19, 2013 Page: 48 Revision Date: November19, 2013 554 Add Section 5601.2to the 2013 California Fire Code to read as follows: 5601.2Explosives. The possession, manufacture, storage, sale, handling, and use of explosives are prohibited. Add Section 5601.3to the 2013 California Fire Code to read as follows: 5601.3Fireworks. 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 usedfor 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 5601.4to the 2013 California Fire Code to read as follows: 5601.4Rocketry. 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 5601.5through 5601.5.3.2.3to the 2013 California Fire Code to read as follows: 5601.5Small Arms Ammunition-General. Indoor storage and display of black powder, smokeless propellants and small arms ammunition shall comply with Sections 5601.5.1through 5601.5.4.2.3. 5601.5.1Packages. Smokeless propellants shall be stored in approved shipping containers conforming to DOTn 49 CFR, Part 173. 5601.5.1.1Repackaging. The bulk repackaging of smokeless propellants, black powder and small arms primers shall not be performed in retail establishments. 5601.5.1.2Damaged 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. 5601.5.2Storage in Group R occupancies. The storage of small armsammunition in Group R occupancies shall comply with Sections 5601.5.2.1 through 5601.5.2.3. 5601.5.2.1Smokeless 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 Council Agenda: November19, 2013 Page: 49 Revision Date: November19, 2013 555 (23 kg) are permitted to be stored in Group R-3 occupancies where kept in a wooden box or cabinet having walls ofat least 1 inch (25 mm) nominal thickness. 5601.5.2.2Black 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 5601.5.2.3Small arms primers. No more than 10,000 small arms primers shall be stored in Group R-3 occupancies. 5601.5.3Display and storage in Group M occupancies. The display and storage of small arms ammunition in Group M occupancies shall comply with Sections 5601.5.3.1 through 5601.5.3.2.3. 5601.5.3.1Display. 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. 5601.5.3.1.1Smokeless 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. 5601.5.3.1.2Black powder. No more than 1 pound (0.454 kg) of black powder shall be displayed in Group M occupancies. 5601.5.3.1.3Small arms primers. No more than 10,000 small armsprimers shall be displayed in Group M occupancies. 5601.5.3.2Storage. The storage of small arms ammunition in Group M occupancies shall comply with Sections 5601.5.3.2.1through 5601.5.3.2.3. 5601.5.3.2.1Storage 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. 5601.5.3.2.2Black 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. 5601.5.3.2.3Small 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. 16.40.380 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 5704.2.4.4 of the California Fire Code, in which the storage of Council Agenda: November19, 2013 Page: 50 Revision Date: November19, 2013 556 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. 16.40.385 Storage –Flammable and Combustible Liquids. Amend section 5704.2.7.5.8of the 2013 California Fire Code to read as follows: 5704.2.7.5.8 Overfill Prevention. An approved means or method in accordance with Section 5704.2.9.6.6 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 5706.4 or 5706.7 shall have overfill protection inaccordance with API 2350. An approved means or method in accordance with Section 5704.2.9.7.6 shall be provided to prevent the overfilling of Class IIIB liquid storage tanks connected to fuel-burning equipment inside buildings. Exception Deleted Add section 5704.2.7.5.9to the 2013 California Fire Code to read as follows: 5704.2.7.5.9 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. 16.40.390 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 5704.2.9.6.1 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. 16.40.400 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 5806.2of 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. Council Agenda: November19, 2013 Page: 51 Revision Date: November19, 2013 557 16.40.410 General –Highly toxic and toxic materials. Add Sec. 6001.3of the 2013 California Fire Code to read as follows: 6001.3 Moderately Toxic Gases With a LCEqual To Or Less Than 3000 Parts Per Million. 50 Notwithstanding the hazard class definition in Section 6002, moderately toxic gases with an LC less 50 than 3000 parts per million shall additionally comply with the requirements for toxic gases in Section 6004 of this code. 16.40.430 Highly toxic, toxic and moderately toxic gases including those used as refrigerants. Add Section 6004.1.4to the 2013 California Fire Code to read as follows: 6004.1.4AutomaticShut-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 Section 6004.1.5to the 2013 California Fire Code to read as follows: 6004.1.5 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 Section 6004.1.6to the 2013 California Fire Code to read as follows: 6004.1.6 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 6004 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 6004 of this code Add Section 6004.1.7to the 2013 California Fire Code to read as follows: 6004.1.7 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- Council Agenda: November19, 2013 Page: 52 Revision Date: November19, 2013 558 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 6004.1.8to the 2013 California Fire Code to read as follows: 6004.1.8 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 5004.5. Add Section 6004.1.9to the 2013 California Fire Code to read as follows: 6004.1.9 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 firecode 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. AddSection 6004.1.10to the 2013 California Fire Code to read as follows: 6004.1.10 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 shallbe 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 6004.1.11to the 2013 California Fire Code to read as follows: 6004.1.11 Emergency Response Plan. Ifthe 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 anemergency response plan is required by other law, a responsible person shall file a copy of the plan with the fire code official. Add Section 6004.1.12to the 2013 California Fire Code to read as follows: 6004.1.12 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 Section 6004.1.13to the 2013 California Fire Code to read as follows: 6004.1.13Inert 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 Council Agenda: November19, 2013 Page: 53 Revision Date: November19, 2013 559 are compatible. Purge gas systems inside buildings shall be located in an approved gas cabinet unless the system operates by vacuum demand. Add Section 6004.1.14to the 2013 California Fire Code to read as follows: 6004.1.14Seismic 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 LCless than 3000 parts per million upon a seismic event within 5 seconds of a horizontal sinusoidal 50 2 oscillation having a peak acceleration of 0.3G (1.47m/sec) and a period of 0.4 seconds. Amend Section 6004.2of the 2013 California Fire Code to read as follows: 6004.2 Indoor Storage and Use. The indoor storage or use of highly toxic, toxic and moderately toxic compressed gases shall be in accordance with Sections 6004.2.1 through 6004.2.2.10.3.3. The threshold quantity for highly toxic, toxic and moderately toxic gases for indoor storage and use are set forth in Table 6004.2. Add Table 6004.2to the 2013 California Fire Code to read as follows: Threshold Quantities for Highly Toxic, Toxic and Moderately Toxic Gases for Indoor Storage and Use Highly Toxic0 Toxic10 cubic feet Moderately Toxic20 cubic feet Amend Section 6004.2.1of the 2013 California Fire Code to read as follows: 6004.2.1 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 6004.2.1.1 through 6004.2.1.3. Amend Sec. 6004.2.1.1of the 2013 California Fire Code to read as follows: 6004.2.1.1 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 6004.2 shall be in accordance with Sections 5001, 5003, 6001, 6004.1 and 6004.2. Amend Sec. 6004.2.2of the 2013 California Fire Code to read as follows: 6004.2.2 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 6004.2.2.1 through 6004.2.2.10.3. Moderately toxic gases with an LCless than 3000 parts per million shallcomply with the requirements 50 for toxic gases in Sections 6004.2.2.1 through 6004.2.2.10.3. Council Agenda: November19, 2013 Page: 54 Revision Date: November19, 2013 560 All other moderately toxic gases exceeding the threshold quantity shall comply with the requirements for toxic gases in Sections 6004.2.2.1 through 6004.2.2.7. Amend Sec. 6004.2.2.7of the 2013 California Fire Code to read as follows: 6004.2.2.7 Treatment Systems. The exhaust ventilation from gas cabinets, exhausted enclosures and gas rooms and local exhaust systems required in Section 6004.2.2.4 and 6004.2.2.5shall 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 6004.2.2.7.1 through 6004.2.2.7.5 and Section 510 of the California Mechanical Code. Exceptions: 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 6004.2.2.3. Amend 6004.2.2.10.2of the 2013 California Fire Code to read as follows: 6004.2.2.10.2. 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. Amend Section 6004.3of the 2013 California Fire Code to read as follows: 6004.3 Outdoor Storage and Use. The outdoor storage or use of highly toxic, toxic and moderately toxic compressed gases shall be in accordance with Sections 6004.3.1 through 6004.3.4. The threshold quantity for highly toxic, toxic and moderately toxic gases for outdoor storage and use are set forth in Table 6004.3. Add Table 6004.3of the 2013 California Fire Code to read as follows: Threshold Quantities for Highly Toxic, Toxic and Moderately Toxic Gases for Outdoor Storage and Use Highly Toxic0 Toxic10 cubic feet Moderately Toxic20 cubic feet Amend Section 6004.3.1of the 2013 California Fire Code to read as follows: 6004.3.1 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 6004.3.1.1 through 6004.3.1.3. Council Agenda: November19, 2013 Page: 55 Revision Date: November19, 2013 561 Amend Section 6004.3.1.1of the 2013 California Fire Code to read as follows: 6004.3.1.1 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 6004.3 shall be in accordance with Sections 5001, 5003, 6001, 6004.1, and 6004.3. Moderately toxic gases with an LC50 less than 3000 parts per million in amounts exceeding the threshold quantity in Table 6004.3 shall comply with the requirements for toxic gases in Sections 5001, 5003, 6001, 6004.1 and 6004.3. Moderately toxic gases in amounts exceeding the threshold quantity in Table 6004.3 shall comply with the requirements for toxic gases in Sections, 5003, 6001, 6004.1 and 6004.3.2.1 through 6004.3.2.5. Amend Section 6004.3.3of the 2013 California Fire Code to read as follows: 6004.3.3 Outdoor Storage Weather Protection For Portable Tanks and Cylinders . Weather protection in accordance with Section 5004.13 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 5004.5. 16.40.435 Establishment of limits in which storage of liquefied petroleum gases is prohibited. The limits referred to in Section 6104.2 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. 16.40.440 Use -Silane Distribution systems automatic shutdown. Add Section 6405.3.1to the 2013 California Fire Code to read as follows: 6405.3.1Silane 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. SECTION 20. The Title of Chapter 16.54 of Title 16 of the Cupertino Municipal Code is hereby amended to read as follows: CHAPTER 16.54: ENERGY CODE Council Agenda: November19, 2013 Page: 56 Revision Date: November19, 2013 562 SECTION 21. Section 16.54.010 of Chapter 16.54 of Title 16 of the Cupertino Municipal Code is hereby amended to read as follows: 16.54.010 Code Adoption. The provisions of the2013California 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. SECTION 22. All other provisions of Chapter 16.54 of Title 16 of the Cupertino Municipal Code remain unchanged. SECTION 23. The Title of Chapter 16.58 of Title 16 of the Cupertino Municipal Code is hereby amended to read as follows: CHAPTER 16.58: GREEN BUILDING STANDARDS CODE ADOPTED SECTION 24. Section 16.58.010 of Chapter 16.58 of Title 16 of the Cupertino Municipal Code is hereby amended to read as follows: 16.58.010 Code Adoption. The provisions of the 2013 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 is made available for public inspection. SECTION 25. Section 16.58.015 of Chapter 16.58 of Title 16 of the Cupertino Municipal Code is hereby amended to read as follows: 16.58.015 Adoption of Appendix Chapters. Council Agenda: November19, 2013 Page: 57 Revision Date: November19, 2013 563 No Appendix Chapters from the 2013 California Green Building Standards Code have been adopted. SECTION 26. Section 16.58.040 of Chapter 16.58 of Title 16 of the Cupertino Municipal Code is hereby amended to read as follows: 16.58.040 Local Amendments. The following provisions of this Chapter shall constitute local amendments to the cross-referenced provisions of the 2013 California Green Building Standards Codeand shall be deemed to amend the cross-referenced sections of said Code with the respective provisions set forth in this Chapter. SECTION 27. Section 16.58.100 of Chapter 16.58 of Title 16 of the Cupertino Municipal Code is hereby amended to read as follows: 16.58.100Section 101.10–Amended. Amend Section 101.10 to read as follows: 101.10 Mandatory requirements. This code contains mandatory green building measures.In addition, this Chapter contains required minimum green building measures as amended by the City of Cupertino. All new buildings and structures, additions, renovations and tenant improvements subject to requirements in Table 101.10 shall comply with the mandatory measures of the 2013 California Green Building Standards Code as adopted by the state in addition to local amendments included in this code, regardless of height or number of stories, unless specifically exempted by this code. SECTION 28. All other provisions of Chapter 16.58 of Title 16of the Cupertino Municipal Code remain unchanged. INTRODUCED at a regular meeting of the Cupertino City Council the ____ day of ___________ 2013 ENACTED and at a regular meeting of the Cupertino City Council on this ____ of __________ 2013 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Council Agenda: November19, 2013 Page: 58 Revision Date: November19, 2013 564 ATTEST:APPROVED: ______________________________________________________________________ Grace Schmidt,Orrin Mahoney, City Clerk Mayor Council Agenda: November19, 2013 Page: 59 Revision Date: November19, 2013 565 ORDINANCE NO. ____13-2115 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINOAMENDING CHAPTER16OF THE CUPERTINO MUNICIPAL CODEADDINGCHAPTER 16.02 AND ADOPTINGTHE 2013CALIFORNIA BUILDING, RESIDENTIAL, PLUMBING, MECHANICAL, ELECTRICAL CODES, CALIFORNIA EXISTING BUILDING CODE, CALIFORNIA GREEN BUILDING STANDARDS CODE WITH CERTAIN EXCEPTIONS, MODIFICATIONS,AND ADDITIONS WHEREAS, pursuant to Sections 17922, 17958, 17958.5 and 17958.7 of the California Health and Safety Code, the City of Cupertino may adopt the provisions of the California Building, Residential, Plumbing, Mechanical, Electrical, Existing Building, Historical Building Codes, Green Building Standards Code and International Existing Building Code, with certain amendments to those provisions which are reasonably necessary to protect the health, welfare and safety of the citizens of Cupertino because of the local climatic, geological,and topographical conditions; and WHEREAS, over the years, the City Council made factual findings set forth in respective sections of Chapter 16 of the Cupertino Municipal Code relating to the amendments to the California codes; and WHEREAS, the factual findings made then continue to be valid and relate to the amendments made to the California codes in this adoption; and WHEREAS, in addition to those findings set forth in the provisions of the Cupertino Municipal Code, on November 4, 2013, the City Council adopted a resolution making factual findings with respect to the local geological, topographical, and climate conditions including, but not limited to, the following: 1)The Bay Area region is a densely populatedarea with buildings constructed over and near a vast array of fault systems capable of producing major earthquakes, including, but not limited to the recent 1989 Loma Prieta Earthquake; 2)Cupertino is situated adjacent to active earthquake faults capable of producingsubstantial seismic events. The San Andreas and Sargent-Berocalfaults run through the lower foothills and the Monta Vista Fault is closer to the valley floor area. The Hayward fault is North East of the City which would also presents a risk to Cupertino in the event of an earthquake; 3)Vehicular traffic through Cupertino is significant, and continues to increase as Cupertino is an employment center as well as the location of residential projects; 4)Cupertino is divided by major freeways and expressways, the occurrence of a major earthquake could impact the ability of fire crews to respond to emergencies should one or more of the freeways or expressways collapse, be substantially damaged, or become gridlocked; 5)Fire suppression capabilities would be severely limited should the water system be damaged during an earthquake; Council Agenda: November4, 2013 Page: 1 Revision Date: November4, 2013 566 6)Cupertino experiences low humidity, high winds and warm temperatures during the summer months creating conditions which are particularly conducive to the ignition and spread of grass, brush and structural fires; 7)Cupertino’s topography contains remote,steep hillsides which further limits the ability of emergency responders to extinguish or control wildland or structural fires;and 8)The local geographic, topographic and climatic conditions require amendments to the California Codes to establish more restrictive conditions to improve structural integrity of the buildingsin the event of a seismic incidentand provide other protections to protect against the increased risk of fire. WHEREAS, this Ordinance was found to be categoricallyexempt from environmental review per the provisions of the California Environmental Quality Act of 1970, as amended, 14 California Code of Regulations, Section 15061(b)(3); and WHEREAS, the City Council of the City of Cupertino is the decision-making body for this Ordinance; and WHEREAS, this Council has reviewed and considered the Statement of Exemption determination under CEQA prior to taking any approval actions on this Ordinance; NOW THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF CUPERTINO: SECTION 1. Title 16 of the Cupertino Municipal Code is hereby amended to add Chapter 16.02 to read as follows: CHAPTER 16.02: ADMINISTRATIVE CODE 16.02.010 Purpose. The purpose of this title is to establish the minimum requirements to safeguard to public health, safety and general welfare through structural strength, means of egress facilities, stability, sanitation, adequate light and ventilation, energy conservation, and safety to life and property from fire and other hazards attributed to the built environment and to provide safety to fire fighters and emergency responders during emergency operations. This title provides for the administration and enforcement of the building, residential, plumbing, mechanical, electrical, fire prevention, energy, housing, green building, building conservation and historical codes adopted by the City of Cupertino. 16.02.020Definitions. Council Agenda: November4, 2013 Page: 2 Revision Date: November4, 2013 567 For the purposes of this chapter the following terms, phrases, words, and their derivations shall have the meaning given herein.When not inconsistent with the context, words used in the present tense include the future, words in the plural number include the singular number and words in the singular number include the plural number.The word “shall” is always mandatory and not merely directory. A.“Building” means any structure used or intended for supporting or sheltering any use or occupancy.A structure containing less than one hundred and twenty (120) square feet of floor space shall not fall within this definition; B.“Building Official” means the Chief Building Official for the City of Cupertino or designee; C.“City” means the City of Cupertino; D.“Person” means any person, firm, partnership, association, corporation, company or organization of any kind. 16.02.030 Scope. The provisions of this title shall apply to the construction, alteration, relocation, enlargement, replacement, repair, use and occupancy and demolition of every building, structure and building services equipment of every building or structure within the city. Where there is a conflict between a general requirement and a specific requirement, the specific requirement shall be applicable. Where, in any specific case, different sections of this code specify different materials, methods of construction or other requirements, the most restrictive shall govern. 16.02.040 General. Adopt Section \[A\] 104.1 of the 2013 California Building Code as follows: \[A\] 104.1 General. The Building Official is hereby authorized and directed to enforce the provisions of this title. The Building Official shall have the authority to render interpretations of the codes identified in this title and to adopt policies and procedures in order to clarify the application of its provisions. Such interpretations, policies and procedures shall be in compliance with the intent and purpose for each code. Such policies and procedures shall not have the effect of waiving requirements specifically provided for in the codes. 16.02.050 Applications and permits. Adopt Section \[A\] 104.2 of the 2013 California Building Code as follows: \[A\] 104.2 Applications and permits. The Building Official shall receive applications, review construction documents and issue permits for the erection, and alteration, demolition and moving of buildings and structures, inspect the premises for which such permits have been issued and enforce compliance with the provisions of this code. Council Agenda: November4, 2013 Page: 3 Revision Date: November4, 2013 568 16.02.060 Notices and orders. Adopt Section \[A\] 104.3 of the 2013 California Building Code as follows: \[A\] 104.3 Notices and orders. The Building Official shall issue all necessary notices or orders to ensure compliance with this code. 16.02.070 Inspections. Adopt Section \[A\] 104.4 of the 2013 California Building Code as follows: \[A\] 104.4 Inspections. The Building Official shall make all of the required inspections, or the Building Official shall have the authority to accept reports of inspection by approved agencies or individuals. Reports of such inspections shall be in writing and be certified by a responsible officer of such approved agency or by the responsible individual. The Building Official is authorized to engage such expert opinion as deemed necessary to report upon unusual technical issues that arise, subject to the approval of the appointing authority. 16.02.080 Identification. Adopt Section \[A\] 104.5 of the 2013 California Building Code as follows: \[A\] 104.5 Identification. The Building Official shall carry proper identification when inspecting structures or premises in the performance of duties under this code. 16.02.090 Right of Entry. Adopt Section \[A\] 104.6 of the 2013 California Building Code as follows: \[A\] 104.6 Right of entry. Where it is necessary to make an inspection to enforce the provisions of this code, or where the Building Official has reasonable cause to believe that there exists in a structure or upon a premises a condition which is contrary to or in violation of this code which makes the structure or premises unsafe, dangerous or hazardous, the Building Official is authorized to enter the structure or premises at reasonable times to inspect or to perform the duties imposed by this code, provided that if such structure or premises be occupied that credentials be presented to the occupant and entry requested. If such structure or premises is unoccupied, the Building Official shall first make a reasonable effort to locate the owner or other person having charge or control of the structure or premises and request entry. If entry is refused, the Building Official shall have recourse to the remedies provided by law to secure entry. 16.02.100 Department records. Adopt Section \[A\] 104.7 of the 2013 California Building Code as follows: Council Agenda: November4, 2013 Page: 4 Revision Date: November4, 2013 569 \[A\] 104.7 Department records. The Building Official shall keep official records of applications received, permits and certificates issued, fees collected, reports of inspections, and notices and orders issued. Such records shall be retained in the official records for the period required for retention of public records. 16.02.110 Liability. Adopt Section \[A\] 104.8 of the 2013 California Building Code as follows: \[A\] 104.8 Liability. The Building Official, member of the board of appeals or employee charged with the enforcement of this code, while acting for the jurisdiction in good faith and without malice in the discharge of the duties required by this code or other pertinent law or ordinance, shall not thereby be rendered liable personally and is hereby relieved from personal liability for any damage accruing to persons or property as a result of any act or by reason of an act or omission in the discharge of official duties. Any suit instituted against an officer or employee because ofan act performed by that officer or employee in the lawful discharge of duties and under the provisions of this code shall be defended by legal representative of the jurisdiction until the final termination of the proceedings. The Building Official or anysubordinate shall not be liable for cost in any action, suit or proceeding that is instituted in pursuance of the provisions of this code. 16.02.120 Approved materials and equipment. Adopt Section \[A\] 104.9 of the 2013 California Building Code as follows: \[A\] 104.9 Approved materials and equipment. Materials, equipment and devices approved by the Building Official shall be constructed and installed in accordance with such approval. 16.02.130 Used materials and equipment. Adopt Section \[A\] 104.9.1 of the 2013 California Building Code as follows: \[A\] 104.9.1 Used materials and equipment. The use of used materials which meet the requirements of this code for new materials is permitted. Used equipment and devices shall not be reused unless approved by the Building Official. 16.02.140 Modifications. Adopt Section \[A\] 104.10 of the 2013 California Building Code as follows: \[A\] 104.10 Modifications. Wherever there are practical difficulties involved in carrying out the provisions of this code, the Building Official shall have the authority to grant modifications for individual cases, upon application of the owner or owner’s representative, provided the Building Council Agenda: November4, 2013 Page: 5 Revision Date: November4, 2013 570 Official shall first find that special individual reason makes the strict letter of this code impractical and the modification is in compliance with the intent and purpose of this code and that such modification does not lessen health, accessibility, life and fire safety, or structural requirements. The details of action granting modifications shall be recorded and entered in the files of the department of building safety. 16.02.150 Alternate materials, design and methods of construction and equipment. Adopt Section \[A\] 104.11 of the 2013 California Building Code as follows: \[A\] 104.11 Alternative materials, design and methods of construction and equipment. The provisions of this code are not intended to prevent the installation of any material or to prohibit any design or method of construction not specifically prescribed by this code, provided that any such alternative has been approved. An alternative material, design or method of construction shall be approved where the Building Official finds that the proposed design is satisfactory and complies with the intent of the provisions of this code, and that the material, method or work offered is, for the purpose intended, at least the equivalent of that prescribed in this code in quality, strength, effectiveness, fire resistance, durability and safety. 16.02.160 Research Reports. Adopt Section \[A\] 104.11,1 of the 2013 California Building Code as follows: \[A\] 104.11.1 Research reports. Supporting data, where necessary to assist in the approval of materials or assemblies not specifically provided for in this code, shall consist of valid research reports from approved sources. 16.02.170 Permit Required. Adopt Section \[A\] 105.1 of the 2013 California Building Code as follows: \[A\] 105.1 Required. Any owner or authorized agent who intends to construct, enlarge, alter, repair, move, demolish, or change the occupancy of a building or structure, or to erect, install, enlarge, alter, repair, remove, convert or replace any electrical, gas, mechanical or plumbing system, the installation of which is regulated by the California Code of Regulations, or to cause any such work to be done, shall first make application to the Building Official and obtain the required permit. 16.02.180 Time limitation of application. Adopt Section \[A\] 105.3.2 of the 2013 California Building Codeas follows: \[A\] 105.3.2 Time limitation of application. An application for a permit for any proposed work shall be deemed to have been abandoned 180 days after the date of filing, unless such application has Council Agenda: November4, 2013 Page: 6 Revision Date: November4, 2013 571 been pursued in good faith or a permit has been issued; except that the Building Official is authorized to grant one or more extensions of time for additional periods not exceeding 90 days each. The extension shall be requested in writing and justifiable cause demonstrated. 16.02.190 Validityof permit. Adopt Section \[A\] 105.4 of the 2013 California Building Code as follows: \[A\] 105.4 Validity of permit. The issuance or granting of a permit shall not be construed to be a permit for, or an approval of, any violation of any of the provisions of this code or of any other ordinance of the jurisdiction. Permits presuming to give authority to violate or cancel the provisions of this code or other ordinances of the jurisdiction shall not be valid. The issuance of a permit based on construction documents and other data shall not prevent the Building Official from requiring the correction of errors in the construction documents and other data. The Building Official is also authorized to prevent occupancy or use of a structure where in violation of this code or of any other ordinances of this jurisdiction. 16.02.200 Expiration. Adopt Section \[A\] 105.5 of the 2013 California Building Code as follows: \[A\] 105.5 Expiration. Every permit issued shall become invalid unless the work on the site authorized by such permit is commenced within 180 days after its issuance, or if the work authorized on the site by such permit is suspended or abandoned for a period of 180 days after the time the work is commenced. The Building Official is authorized to grant, in writing, one or more extensions of time, for periods not more than 180 days each. The extension shall be requested in writing and justifiable cause demonstrated. 16.02.210 Suspension or revocation. Adopt Section \[A\] 105.6 of the 2013 California Building Code as follows: \[A\] 105.6 Suspension or revocation. The Building Official is authorized to suspend or revoke a permit issued under the provisions of this code wherever the permit is issued in error or on the basis of incorrect, inaccurate or incomplete information, or in violation of any ordinance or regulation or any of the provisions of this code. 16.02.220 Placement of permit. Adopt Section \[A\] 105.7 of the 2013 California Building Code as follows: \[A\] 105.7 Placement of permit. The building permit or copy shall be kept on the site of the work until the completion of the project. Council Agenda: November4, 2013 Page: 7 Revision Date: November4, 2013 572 16.02.230 Responsibility of permittee. Add new Section \[A\] 105.8 to the 2013 California Building Code to read as follows: \[A\] 105.8 Responsibility of permittee. Building permits shall be presumed to incorporate the provision that the applicant, the applicant’s agent, employees or contractors shall carry out the proposed work in accordance with the approved plans and with all requirements of this code and any other laws or regulations applicable thereto, whether specified or not. No approval shall relieve or exonerate any person from the responsibility of complying with the provisions and intent of this code. 16.02.240 Fees. Fees shall be paid to the city as set forth in the latest resolution adopted by the city. 16.02.250 Inspections. Adopt Section \[A\] 110.1 of the 2013 California Building Code as follows: \[A\] 110.1 General. Construction or work for which a permit is required shall be subject to inspection by the Building Official and such construction or work shall remain accessible and exposed for inspection purposes until approved. Approval as a result of an inspection shall not be construed to be an approval of a violation of the provisions ofany of the codes or amendments specified in this title. It shall be the duty of the permit applicant to cause the work to remain accessible and exposed for inspection purposes. Neither the Building Official nor the City of Cupertino shall be liable for expense entailed in the removal or replacement of any material required to allow inspections. Adopt Section \[A\] 110.2 of the 2013 California Building Code as follows: \[A\] 110.2 Preliminary inspection. Before issuing a permit, the Building Official is authorized to examine or cause to be examined buildings, structures and sites for which an application has been filed. Adopt Section \[A\] 110.3.8 of the 2013 California Building Code as follows: \[A\] 110.3.8 Other Inspections. In addition to the called inspections specified above, the Building Official is authorized to make or require any other inspections of any construction work to ascertain compliance with the provisions of this code and other lawsthat are enforced by the Building Department.For the purpose of determining compliance, the Building Official may cause any structure to be reinspected.If any inspection is made at the request of any individual, property owner or lending institution, a fee equal to the cost of making such inspection shall be charged as set forth in the latest resolution adopted by the city. Council Agenda: November4, 2013 Page: 8 Revision Date: November4, 2013 573 16.02.260 Certificate of Occupancy. Adopt Section \[A\] 111.1 of the 2013 California Building Code as follows: \[A\] 111.1 Use and occupancy. No building or structure shall be used or occupied, and no change in the existing occupancy classification of a building or structure or portion thereof shall be made, until the Building Official has issued a certificate of occupancy therefor as provided herein. Issuance of a certificate of occupancy shall not be construed as an approval of a violation of any provision of this title or any ordinance of the City of Cupertino. Adopt Section \[A\] 111.2 of the 2013 California Building Code as follows: \[A\] 111.2 Certificate issued. After the Building Official inspects the building or structure and finds no violations of the provisions of this code or other laws that are enforced by the Building Department, the Building Official may issuea certificate of occupancy that contains the following: 1. The building permit number. 2. The address of the building or structure. 3. The name and address of the owner. 4. A description of that portion of the structure for which the certificate is issued. 5. A statement that the described portion of the structure has been inspected for compliance with the requirements of this code for the occupancy and division of occupancy and the use for which the proposed occupancy is classified. 6. The name of the Building Official. 7. The edition of the code under which the permit was issued. 8. The use and occupancy, in accordance with the provision of Chapter 3 of the California Building Code. 9. The type of construction as defined in Chapter 6 of the California Building Code. 10. The design occupant load. 11. If the automatic sprinkler system is provided, whether the sprinkler system is required. 12. Any special stipulations and conditions of the building permit. Adopt Section \[A\] 111.3 of the 2013 California Building Code as follows: \[A\] 111.3 Temporary occupancy. The Building Official is authorized to issue a temporary certificate of occupancy before the completion of the entire work covered by the permit, provided that such portion of portions shall be occupied safely. The Building Official shall set a time period during which the temporary certificate of occupancy is valid. Adopt Section \[A\] 111.4 of the 2013 California Building Code as follows: \[A\] 111.4 Revocation. The Building Official is authorized to, in writing, suspend or revoke a certificate of occupancy or completion issued under the provisions of the California Building Code wherever the certificate is issued in error, or on the basis of incorrect information supplied, or where Council Agenda: November4, 2013 Page: 9 Revision Date: November4, 2013 574 it is determined that the building or structure or portion thereof is in violation of any ordinance or regulation or any of the provisions of the California Building Code. 16.02.270 Board of Appeals. Adopt Section \[A\] 113.1 of the 2013 California Building Code and amend to read as follows: \[A\] 113.1 General. In order to hear and decide appeals of orders, decisions or determinations made by the Building Official relative to application and interpretation ofthe codes identified in this Title, there shall be and is hereby created a Board of Appeals consisting of five members who are qualified by experience and training to pass upon matters pertaining to building construction installations and materials.The Board of Appeals shall be appointed by the Mayor, subject to the approval of the City Council.The Board shall adopt reasonable rules and regulations for conducting its investigations and shall render all decisions and findings in writing to the Building Official, with a duplicate copy to the appellant, and may recommend to the City Council such new legislation as is consistent therewith.To the extent permitted by law, the same personnel of the Board of Appeals appointed under this code may act as the Board of Appeals under this Title.In the event where no such Board of Appeals has been established, the City Council shall serve as said Appeals Board. Add Section \[A\] 113.1.1 to read as follows: \[A\] 113.1.1 Access Compliance. Per Health and Safety Code 19955 –19959.5, in order to hear and decide appeals of orders, decisions or determinations made by the Building Official relative to Access Compliance, there shall be and is hereby created a Board of Appeals consisting of five members to hear written appeals brought by any person regarding action taken by the Building Department.Two members of Accessibility Board of Appeals shall be physically handicapped persons, two members shall be persons experienced in construction, and one member shall be a public member. The Accessibility Board of Appeals shall be appointed by the Mayor, subject to the approval of the City Council.The Accessibility Board of Appeals shall adopt reasonable rules and regulations for conducting its investigations and shall render all decisions and findings in writing to the Building Official, with a duplicate copy to the appellant, and may recommend to the City Council such new legislation as is consistent therewith.In the event where no such Board of Appeals has been established, the City Council shall serve as said Appeals Board. 16.02.280Violations. Adopt Section \[A\] 114.1 of the 2013 California Building Code as follows: \[A\] 114.1 Unlawful acts. It shall be unlawful for any person, firm or corporation to erect, construct, alter, extend, repair, move, remove, demolish or occupancy any building, structure or equipment regulated by the codes identified in this title, or cause same to be done, in conflict with or in violation of any of the provisions of any code identified in this title. Adopt Section \[A\] 114.2 of the 2013 California Building Code as follows: Council Agenda: November4, 2013 Page: 10 Revision Date: November4, 2013 575 \[A\] 114.2 Notice of violation. The Building Official is authorized to serve a notice of violation or order on the person responsiblefor the erection, construction, alteration, extension, repair, moving, removal, demolition or occupancy of a building or structure in violation of any provisions of any code identified in this title, or in violation of a permit or certificate issued underthe provisions of any code identified in this title. Such order shall direct the discontinuance of the illegal action or condition and the abatement of the violation. 16.02.290Stop Work Order. Adopt Section \[A\] 115.1 of the 2013 California BuildingCode as follows: \[A\] 115.1 Authority. Whenever the Building Official finds any work regulated by this code being performed in a manner either contrary to the provisions of any code identified in this title or dangerous or unsafe, the Building Official is authorized to issue a stop work order. Adopt Section \[A\] 115.2 of the 2013 California Building Code as follows: \[A\] 115.2 Issuance. The stop work order shall be in writing and shall be given to the owner of the property involved, or to the owner’s agent, or to the person doing the work. Upon issuance of a stop work order, the cited work shall immediately cease. The stop work order shall state the reason for the order, and the conditions under which the cited work will be permitted to resume. 16.02.300Penalty. Except where otherwise specified, any person who violates any of the provisions of any code specified in this title shall be guilty of a misdemeanor, and, upon conviction thereof, shall be punished as provided in Chapter 1.12 of the Cupertino Municipal Code. Council Agenda: November4, 2013 Page: 11 Revision Date: November4, 2013 576 SECTION 2. Chapter 16.04 of Title 16 of the Cupertino Municipal Code is hereby repealed and readopted to read as follows: CHAPTER 16.04: BUILDING CODE 16.04.010 Code Adoption. The provisions of the 2013 California Building Code, Volumes1 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. 16.04.015 Adoption of Appendix Chapters. The following Appendix Chapters from the 2013California 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: 2013California Historical Building Code; California Code Part 10: 2013California Existing Building Code; California Code Part 12: 2013 California Referenced Standards Code 16.04.050Address Identification. Adopt Section 501.2 of the 2013 California Building Code and amend to read as follows: New and existing buildings shall be provided with approved address numbers or letters. Each character shall be not less than 4 inches in height and not less than 0.5 inch in width. They shall be installed on a contrasting background and be plainly visible from the street or road fronting the property. When required by the fire code official, address numbers shall be provided in additional approved locations to facilitate emergency response. Where access is by means of a private road and the building address cannot be viewed from the public way, a monument, pole or other approved sign or means shall be used to identify the structure. Address numbers shall be maintained. No Certificate of Occupancy or final building approval for new construction or alterations shall be granted until the building or residence has a street address number posted. Subdivisions and Planned Developments shall submit a numbering schedule for approval by the Building Department and the Fire Department.All commercial buildings having a single address assigned with multi- Council Agenda: November4, 2013 Page: 12 Revision Date: November4, 2013 577 suite arrangements shall have the suite-numbering system approved or assigned by the Building Department with an approved copy to the Fire Department for emergency use. 16.04.070Exterior Wildfire Exposure. Amend Section 707A.8 of the 2013California Building Code to read as follows: 707A.8 Underside of appendages. The underside of overhanging appendages shall be enclosed to grade in accordance with the requirements of this chapter or the underside of the exposed underfloor shall consist of one of the following: 1.Noncombustible material. 2.Ignition-resistant material. 3.One layer of 5/8-inch Type X gypsum sheathing applied behind an exterior covering on the underside of the floor projection. 4.The exterior portion of a 1-hour fire resistive exterior wall assembly applied to the underside of the floor including assemblies using the gypsum panel and sheathing products listed in the Gypsum Association Fire Resistance DesignManual. 5.The underside of a floor assembly that meets the performance criteria in accordance with the test procedures set forth in the SFM Standard 12-7A-3. Exception: Heavy timber structural columns and beams do not require protection. Amend Section 710A.3of the 2013California Building Code to read as follows: 710A.3 Where required. Accessory structures shall comply with the requirements of this section. 710A.3.1 Attached accessory structures shall comply with the requirements of this section. Amend Section 710A.4 of the 2013 California Building Code to read as follows: 710A.4 Requirements. Accessory structures shall be constructed on noncombustible or ignition- resistant materials. 16.04.080Roof Covering Classification. Amend Section 1505.1.3 of the 2013California Building Code to read as follows: 1505.1.3 Roof coverings in all other areas. 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 1505.1.4 of the 2013 California Building Code to read as follows: Council Agenda: November4, 2013 Page: 13 Revision Date: November4, 2013 578 1505.1.4 Roofing requirements in a Wildland-Urban Interface Fire Area. 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. 16.04.340 Conventional Construction Provisions (Bracing). Amend Section 2308.9.3 of the 2013 California Building Code to read as follows: 2308.9.3 Bracing. Braced wall lines shall consist of braced wall panels that meet the requirements for location, type and amount of bracing as shown in Figure 2308.9.3, specified in Table 2308.9.3(1) and are in line or offset from each other by not more than 4 fee (1219 mm). Braced wall panels shall start not more than 12 ½ feet (3810 mm) from each end of a braced wall line. Braced wall panels shall be clearly indicated on the plans. Construction of braced wall panels shall be by one of the following methods: 1.Nominal 1-inch by 4-inch (25mm by 102 mm) continuous diagonal braces let into top and bottom plates and intervening studs, placed at an angle not more than 60 degrees (1.0 rad) or less than 45 degrees (0.79 rad) from the horizontal and attached to the framing in conformance with Table 2304.9.1. 2.Wood boards of 5/8 inch (15.9 mm) net minimum thickness applied diagonally on studs spaced not over 24 inches (610 mm) o.c. 3.Wood structural panel sheathing with a thickness not less than 3/8 inch (9.5 mm) for 16-inch (406 mm) or 24-inch (610 mm) stud spacing in accordance with Tables 3308.9.3(2) and 3308.9.3(3). 4.Fiberboard sheathing panels not less than ½ inch (12.7 mm) thick applied vertically or horizontally on studs spaced not over 16 inches (406 mm) o.c. where installed with fasteners in accordance with Section 2306.6 and Table 2306.6. 5.Not adopted. 6.Particleboard wall sheathing panels where installed in accordance with Table 2308.9.3(4). 7.Portland cement plaster onstuds spaced 16 inches (406 mm) o.c. installed in accordance with Section 2510. This item is limited to one-story structures of R-3 and U occupancies. 8.Hardboard panel siding where installed in accordance with Section 2303.1.6 and Table 2308.9.3(5). For cripple wall bracing, see Section 2308.9.4.1. For Methods 2,3,4,6,7 and 8, each panel must be at least 48 inches (1219 mm) in length, covering three stud spaces where studs are spaced 16 inches (406 mm) apart and covering two stud spaces where studs are spaced 24 inches (610 mm) apart. Council Agenda: November4, 2013 Page: 14 Revision Date: November4, 2013 579 For Method 5, each panel must be at least 96 inches (2438 mm) in length where applied to one face of a panel and 48 inches (1219 mm) where applied to both faces. All vertical joints of panel sheathing shall occur over studs and adjacent panel joints shall be nailed to common framing members. Horizontal joints shall occur over blocking or other framing equal in size to the studding except where waived b the installation requirements for the specific sheathing materials. Sole plates shall be nailed to the floor framing and top plates shall be connected to the framing above in accordance with Section 2308.3.2. Where joists are perpendicular to braced wall lines above, blocking shall be provided under and in line with the braced wall panels. 16.04.360 Concrete Isolated Footings. AmendSection 1705.3Exception #1 of the 2013CBC to read as follows: 1705.3Concrete Construction. The special inspectionsand verifications for concrete construction shall be as required by this section and Table 1705.3. Exception: 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). 16.04.370 Revise Section 1905.1.8 ACI 318Section 22.10. Amend Section 1905.1.8 and 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. Exception: In detached one and two-family dwelling three stories or less in height, the projection of the footing beyond the face of the supported memberis 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 Council Agenda: November4, 2013 Page: 15 Revision Date: November4, 2013 580 of one bar shall be provided at the top and bottom of the footing. Continuity of reinforcement shall be provided at corners and intersections. Exception: In detached one and two-family dwellings three stores or less inheight 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. 16.04.400 Swimming Pools. Adopt Section 3109 of the 2013 California Building Code. Inspections for Swimming Pools. A.All Work to Be Inspected.All pool installations or alterations thereto including equipment, piping and appliances related thereto shall be inspected by the Building Department to insure compliance with the requirements of the California Building Code. B.Called Inspections.It shall be the duty of the person doing the work authorized by the building permit to notify the Building Department that said work is ready for inspection.Such notification shall be given not less than twenty-four hours before the work is to be inspected. 1.Pregunite inspection is required when all steel is in place, piping from the pool area is in with pressure test, all steel and related attachments are properly bonded and underwater light housing is installed; 2.An inspection is required for all conduit and gas piping under slabs before decks are poured; 3.Final inspection is required after all equipment is in place and operating, the pool is filled with water and all fences and gates are installed; 4.A reinspection fee per the adopted fee schedule per inspection will be charged for each inspection over two where the work is not ready or corrections have not been completed; 5.The owner shall arrange with the Building Department for inspectors to enter the property to make necessary inspections in connection with the pool. Council Agenda: November4, 2013 Page: 16 Revision Date: November4, 2013 581 SECTION 3. Chapter 16.06 of Title 16 of the Cupertino Municipal Code is hereby repealed and readopted to read as follows: CHAPTER 16.06 RESIDENTIAL CODE 16.06.010Code Adoption. The provisions of the 2013 California Residential Code and specified Appendices and eachand 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. 16.06.015Adoption of Appendix Chapters. The following Appendix Chapters from the 2013California 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; 16.06.050 Automatic Fire Sprinkler Systems. Amend Section R313.1 of the 2013 California Residential Code to read as follows: R313.1 Townhouse automatic fire sprinkler systems. 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. 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. Amend Section R313.2 of the 2013 California Residential Code to read as follows: R313.2 One-and two-family dwellings automatic fire sprinkler systems. An automatic residential fire sprinkler system shall be installed in one-and two-family dwellings as follows: Council Agenda: November4, 2013 Page: 17 Revision Date: November4, 2013 582 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 areato 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. 2.In all new basements and in existing basements that are expanded. Exception: Existing basements that are expanded by not more than 50%. 16.06.060 Materials and Construction Methods for Exterior Wildfire Exposure. Amend Section R327.7.8 of the2013 California Residential Code to read as follows: R327.7.8 Undersideof appendages. The underside of overhanging appendages shall be enclosed to grade in accordance with the requirements of this chapter or the underside of the exposed underfloor shall consist of one of the following: 1.Noncombustible material. 2.Ignition-resistant material. 3.One layer of 5/8-inch Type X gypsum sheathing applied behind an exterior covering on the underside of the floor projection. 4.The exterior portion of a 1-hour fire resistive exterior wall assembly applied to the underside of the floor including assemblies using the gypsum panel and sheathing products listed in the Gypsum Association Fire Resistance Design Manual. 5.The underside of a floor assembly that meets the performance criteria in accordance with the test procedures set forth in the SFM Standard 12-7A-3. Exception: Heavy timber structural columns and beams do not require protection. Amend Section R327.10.3 of the 2013California Residential Code to read as follows: R327.10.3.Where required. Accessory structures shall comply with the requirements of this section. R327.10.3.1. Attached accessory structures shall comply with the requirements of this section. Amend Section R327.10.4 of the 2013 California Residential Code to read as follows: R327.10.4. Requirements. Accessory structures shall be constructed on noncombustible or ignition-resistant materials. Council Agenda: November4, 2013 Page: 18 Revision Date: November4, 2013 583 16.06.070 Footings. Amend Section R403.1 of the 2013 California Residential Codeto readas follows: R403.1 General. 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 ACI332. LOAD-BEARING VALUE OF SOIL (psf) 1,5002,0003,000 Conventional light-frame construction 1-story12121212 2-story15121212 3-story23171212 4-inch brick veneer over light frame or 8-inch hollow concrete masonry 1-story12121212 2-story21161212 3-story32241612 8-inch solid or fully grouted masonry 1-story16121212 2-story29211412 3-story42322116 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 of the 2013 California Residential Code to read as follows: R403.1.1 Minimum size. 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 6inches (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. Council Agenda: November4, 2013 Page: 19 Revision Date: November4, 2013 584 16.06.080Roof Covering Classification. Amend Section R902.1.3 of the 2013 California Residential Code to read as follows: R902.1.3 Roof coverings in all other areas. 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 of the 2013 California Residential Code to read as follows: R902.1.4 Roofing coverings within the Wildland-Urban Interface Fire Area. 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-UrbanInterface Fire Area shall also comply with Section R327.5. 16.06.085 Spark Arrestors. 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 2013 California Residential Code Section R1003.9.2. 16.06.090Seismic Reinforcing. Amend Section R403.1.3 of the 2013 California Residential Code to read as follows: R403.1.3 Seismic reinforcing. Concrete footings located in Seismic Design Categories D, Dand 01 D, as established in Table R301.2(1), shall have minimum reinforcement of at least two continuous 2 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 D, Dand Dwhere a construction joint is created between a concrete 012 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 D, Dand Dwhere a grouted masonry stem wall is supported on a 012 concrete footing and stem wall, a minimum of one No. 4 bar shall be installed at not more than 4 feet Council Agenda: November4, 2013 Page: 20 Revision Date: November4, 2013 585 (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 D, Dand Dmasonry stem walls without solid grout and vertical 012 reinforcing are not permitted. Exception: 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. 16.06.100 Intermittent Brace Wall Panel Construction Methods. Amend CRC Section R602.10.4, to add a new footnote “e”to the end of CRC Table R602.10.3(3), to read as follows: e.In Seismic Design Categories D, D, and D, Method GB isnot permitted and the use of Method 012 PCP is limited to one-story single family dwellings and accessory structures. Add the “e”footnote notation in the title of Table R602.10.1.3(3) to read as follows: e TABLE R602.10.3(3) Add a new subsection R602.10.4.4, to read as follows: R602.10.4.4 Limits on methods GB and PCP . In Seismic Design Categories D, D, and D, 012 Method GB is not permitted for use as intermittent braced wall panels, but gypsum board is 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, and D, the 012 use of Method PCP is limited to one-story single family dwellings and accessory structures. Council Agenda: November4, 2013 Page: 21 Revision Date: November4, 2013 586 SECTION 4. Chapter 16.12 of Title 16 of the Cupertino Municipal Code is hereby repealed and readopted to read as follows: CHAPTER 16.12 SOILS AND FOUNDATIONS -SUBDIVISIONS 16.12.010 Code Adoption. The ordinance codified in this chapter is enacted pursuant to the provisions of Section 17953 through 17957 of the Health and Safety Code, relating to housing, and reaffirms the requirements of an approved soils report as a condition to the issuance of a building permit. 16.12.020Required. A.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. B.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. C.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 beenassured. 16.12.030Report Requirements. The report shall be comprehensive and shall include an analysis of: A.Stability of all slopes, within the lot (subdivision) or slopes above, below or adjacent to the area under investigation; B.The classification of all soils for expansion potential; C.The classification of the soils according to the Unified Soils Classification System; D.The establishment of design bearing values and anticipated maximum settlements; E.Soil profiles including relevant data to depths which reflect the nature and magnitude of the future loading; F.The presence of rocks or liquids containing deleterious chemicals, which, if not corrected, could cause construction materials such as concrete, steel, and ductileor cast iron to corrode or deteriorate. Council Agenda: November4, 2013 Page: 22 Revision Date: November4, 2013 587 16.12.040Preparation. The soils report shall be prepared by a civil engineer who is registered by the state and shall be based upon adequate test borings, excavations, or in the case of the letter of review, field observations. 16.12.050Approval of Report. The preliminary soil report shall be filed with and approved by the City Engineer. 16.12.060Conditions for Building Permit. No building permit shall be issued for the construction of any structure on any lot or subdivision subject to this chapter unless or until an approved preliminary soil report has been filed first with the City Engineer; or said report has been waived pursuant to the provisions of this chapter or, the corrective action, if any, has been assured. Council Agenda: November4, 2013 Page: 23 Revision Date: November4, 2013 588 SECTION 5. Chapter 16.16 of Title 16 of the Cupertino Municipal Code is hereby repealed and readopted to read as follows: CHAPTER 16.16: ELECTRICAL CODE 16.16.010Code Adoption. The provisions of the 2013California 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. 16.16.015 Adoption of Appendix Chapters. No Appendix Chapters from the 2013California Electrical Code have been adopted. 16.16.020 Article 100 Amended–Definitions. Article 100 as amended by adding thereto the following: A.Electrical Contractors:For the purpose of this article, an Electrical Contractor shall be a person holding a valid electrical contractor's license issued by the State of California. B.Journeyman Electrician:A journeyman electrician is an electrician qualified by training and experience to do electrical work in conjunction with new construction and/or rework of existing systems. C.Maintenance Electrician:A maintenance electrician in an electrician qualified by training and experience to do the recurring work required to keep a facility in such condition that it may be utilized at its designated capacity and efficiency, to do repair work or replacement or overhaul of constituent parts or materials to keep or restore a facility to a condition substantially equivalent to its original or design capacity or efficiency. 16.16.025 Electrical Work. Electrical work shall be done only by: a.Owner/occupant; b.Electrical contractors who are in compliance with the state licensing laws and whose employees are under the direct supervision of a qualified journeymanelectrician; c.General Building Contractor with current B-1 license in conjunction with building permit only; d.Maintenance electrician. Council Agenda: November4, 2013 Page: 24 Revision Date: November4, 2013 589 16.16.030 Electrical Fee Schedule. Electrical fees shall be paid to the city as set forth in the latest resolution adopted by the city. 16.16.040Interpretation. A.The language used in this code, and the California Electrical Code, which is made a part of this code by reference, is intended to convey the common and accepted meaning familiar to the electrical industry. B.The Building Official or his assistants is authorized to determine the intent and meaning of any provisions of this code.Such determination shall be made in writing and a record kept, which record shall be open to the public. 16.16.050Electrical Maintenance Program. Any person regularly employing one or more full-time qualified electricians for the purpose of installation, alteration, maintenance or repair on any property which such person owns or occupies, may designate aqualified electrician as a maintenance electrician.Upon being approved by the Chief Building Official, the maintenance electrician shall make monthly or quarterly reports to the city covering all installations, additions, or alterations.All such work shall be installed and done in accordance with the provisions of the Electrical Code, and shall be subject to the payment of fees, and to inspection by the electrical inspector to the same extent as similar work performed by other persons and for which such inspection is provided. Council Agenda: November4, 2013 Page: 25 Revision Date: November4, 2013 590 SECTION 6. Chapter 16.20 of Title 16 of the Cupertino Municipal Code is hereby repealed and readopted to read as follows: CHAPTER 16.20: PLUMBING CODE 16.20.010 Code Adoption. The provisions of the 2013California 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. 16.20.015Adoption of Appendix Chapters. The following Appendix Chapters from the 2013California 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 C: Alternate Plumbing Systems; Appendix D: Sizing Storm Water Drainage Systems; Appendix H: Private Sewage Disposal Systems; Appendix I: Installation Standards; 16.20.020 Name Insertion. The names “Cupertino” and/or “California” shall be inserted in the appropriate places provided therefor in each and every section of such California Plumbing Codewherein either the name of the city or state is left blank. 16.20.080Condensate Disposals. Amend Section 807.2 of the 2013 California Plumbing Code to read as follows: 807.2 Condensate Waste. Condensate from air-cooling coils and comfort cooling equipment not intended to be used for the storage or holding of food or drinks shall be collected and discharged to an approved point of disposal acceptable by the Building Official. Council Agenda: November4, 2013 Page: 26 Revision Date: November4, 2013 591 Termination of such drains shall be made by an air break.Condensate drain lines in sizes 1 1/4" and larger shall be assembled using approved drainage pipe and fittings. Condensate waste water shall not drain over or upon a public way, sidewalk, pedestrian ramp or the like.The waste pipe shall have a slope of not less than 1/8 inch per foot and shall be of approved corrosion-resistant material not smaller than the outlet size as required below for air-cooling coils or condensing fuel- burning appliances, respectfully. Condensate wastes pipes from air-cooling coils shall be sized in accordance with equipment capacity as follows: EQUIPMENT CAPACITYCONDENSATE PIPE DIAMETER Up to 20 tons of refrigeration3/4 inch 21 to 40 tons of refrigeration1 inch 41 to 90 tons ofrefrigeration1-1/4 inch 91 to 125 tons of refrigeration1-1/2 inch 126 to 250 tons of refrigeration2 inch The size of condensate waste pipes may be for one unit or a combination of units, or as recommended by the manufacturer. The capacity of waste pipes assumes a 1/8 inch-per-foot slope, with the pipe running three-quarters full. Condensate drain sizing for other slopes or other conditions shall be approved by the Building Official. Findings The waste water treatment facilities serving many silicon valley cities are operating at or near maximum capacity.The discharge of treated waste water into San Francisco Bay is detrimental to its sensitive ecosystem. Cooling coil and comfortcooling equipment condensate waste discharge does not contain pollutants which require treatment before being discharged into sanitary sewers or the ground. Council Agenda: November4, 2013 Page: 27 Revision Date: November4, 2013 592 SECTION 7. Chapter 16.24 of Title 16 of the Cupertino Municipal Code is hereby repealed and readopted to read as follows: CHAPTER 16.24: MECHANICAL CODE 16.24.010 Code Adoption. The provisions of the 2013 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. 16.24.015 Adoption of Appendix Chapters. No Appendix Chapters from the 2013California Mechanical Code have been adopted. 16.24.020 Name Insertion. The names “Cupertino” and/or “California” shall be inserted in the appropriate places provided therefor in each and every section of such California Mechanical Code wherein either the name of the city or state is left blank. 16.24.030Condensate Wastes. Amend Section 312.1 of the 2013 California Mechanical Code to read as follows: 312.1 Condensate Disposal. Condensate from air cooling coils and comfort cooling equipment not intended to be used for the storage or holding of food or drinks shall be collected and discharged to an approved point of disposal acceptable to the Building Official. Termination of such drains shall be made by an air break.Condensate drain lines in sizes 1-1/4” and larger shall be assembled using approved drainage pipe and fittings.Condensate waste water shall not drain over or upon a public way, sidewalk, pedestrian ramp or the like. Findings Council Agenda: November4, 2013 Page: 28 Revision Date: November4, 2013 593 The waste water treatment facilities serving many Silicon Valley cities are operating at or near maximum capacity.The discharge of treated waste water into San Francisco Bay is detrimental to its sensitive ecosystems. Cooling coil and comfort cooling equipment condensate waste discharge does not contain pollutants which require treatment before being discharged into sanitary sewers or the ground. Council Agenda: November4, 2013 Page: 29 Revision Date: November4, 2013 594 SECTION 8. Chapter 16.32 of Title 16 of the CupertinoMunicipal Code is hereby repealed. Council Agenda: November4, 2013 Page: 30 Revision Date: November4, 2013 595 SECTION 9. The Title of Chapter 16.36 of Title 16 of the Cupertino Municipal Code is hereby amended to read as follows: CHAPTER 16.36: RELOCATION OF BUILDINGS SECTION 10. Section 16.36.010 of Chapter 16.36 of Title 16 of the Cupertino Municipal Code is hereby amended to read as follows: 16.36.010Definitions. For the purposes of this chapter the following terms, phrases, words, and their derivations shall have the meaning given herein.When not inconsistent with the context, words used in the present tense include the future, words in the plural number include the singular number and words in the singular number include the plural number.The word “shall” is always mandatory and not merely directory. A.“Building” means any structure used or intended for supporting or sheltering any use or occupancy.A structure containing less than one hundred and twenty (120) square feet of floor space shall not fall within this definition; B.“Building Official” means the Chief Building Official for the City or designee; C.“City” means the City of Cupertino; D.“Person” means any person, firm, partnership, association, corporation, company or organization of any kind. SECTION 11. Section 16.36.020 of Chapter 16.36 of Title 16 of the Cupertino Municipal Code is hereby amended to read as follows: 16.36.020Permit-Required. No person shall move any building over, along or across any highway, street or alley in the city without first obtaining a permit from the Building Department. SECTION 12. Section 16.36.030 of Chapter 16.36 of Title 16 of the Cupertino Municipal Code is hereby amended to read as follows: 16.36.030Permit-Application. A person seeking issuance of a permit hereunder shall file an application for such permit with the Building Department: A.Form.The application shall be made in writing, upon forms provided by the Building Department, and shall be filed in the office of the Building Official; B.Contents.The application shall set forth: 1.A description of the building proposed to be moved, giving street number, construction materials, dimensions, number of rooms and condition of exterior and interior, Council Agenda: November4, 2013 Page: 31 Revision Date: November4, 2013 596 2.A legal description of thelot from which the building is to be moved, giving the lot, block and tract number, if located in the city, 3.A legal description of the lot to which it is proposed such building be removed, giving lot, block and tract number, if located in the city, 4.The portion of the lot to be occupied by the building when moved, 5.The highways, streets and alleys over, along or across which the building is proposed to be moved, 6.Proposed moving date and hours, 7.Any additional information which the Building InspectorOfficial shall find necessary to a fair determination of whether a permit should issue; C.Accompanying Papers. 1.Tax Certificate.The owner of the building to be moved shall file with the application sufficient evidence that the building and lot from which it is to be removed are free of any entanglements and that all taxes and any City charges against the same are paid in full, 2.Certificate of Ownership or Entitlement.The applicant, if other than the owner, shall file with the application a written statement or bill of sale signed by the owner, or other sufficient evidence, that he is entitled to move the building. SECTION 13. Section 16.36.040 of Chapter 16.36 of Title 16 of theCupertino Municipal Code is hereby amended to read as follows: 16.36.040Moving Notice. Upon receiving an application to move an old or previously occupied building, the Building Official shall cause a notice to be posted on the front and rear of the proposed location and on the front of the building proposed to be moved. Such notice shall have a title in letters not less than one inch in height, “MOVING NOTICE”; shall give the location of the house by street and number and the name and address ofthe applicant desiring a permit to move such building. SECTION 14. Section 16.36.050 of Chapter 16.36 of Title 16 of the Cupertino Municipal Code is hereby amended to read as follows: 16.36.050Permit-Issuance-Hearing. After the above described notices have been in place seventy-two hours, excluding Sundays and holidays, and no written protests have been received, the Building Official shall issue the permit subject to all the provisions of this chapter.If any written protests are filed with the Building Department, a time shall be set for a hearing before the City Council, said time to be not sooner than three days nor later than twenty days from the date of the filing of the protest.The Building Official shall notify the City Council and the other interested parties of the hour set for such hearing.No permit shall issue unless the City Council shall deny the protest. Council Agenda: November4, 2013 Page: 32 Revision Date: November4, 2013 597 SECTION 15. Provisions of Section 16.36.055 and 16.36.060 of Chapter 16.36 of Title 16 of the Cupertino Municipal Code remain unchanged. SECTION 16. Section 16.36.070 of Chapter 16.36 of Title 16 of the Cupertino Municipal Code is hereby amended to read as follows: 16.36.070Permit-Conditions. Any permit issued under this chapter shall besubject to the following conditions: A.Certificates.No permit shall be issued unless there is first filed a certificate of inspection signed by the BuildingOfficial certifying that he examined the building and that it is structurally strong; and unless there is also filed a certificate certifying that the removal of said building on the route proposed will not result in damage of or destruction to trees; B.Locations Outside City.No permit shall be issued to move a building through the cityfrom one location outside the city to another location outside the city unless the proposed route to be followed within the city shall be approved by the Building Official; C.Location Within City from Outside.No permit shall be issued to move a building from a location outside the city to a location inside the city unless the building has been inspected and approved, and the route to be followed has been approved by the Building Official.Inspection fees shall be paid by the applicant in accordance with the requirements of City ordinances regulating building, electrical, plumbing and gas installations.The lot upon which such building is to be moved shall be posted as required for buildings to be moved within the city; D.Accessory Building.An accessory building, not over four hundred square feet in area, may be moved in conjunction with the moving of a residence from the same location to the same location without paying an additional fee. SECTION 17. Sections 16.36.080, 16.36.090, 16.36.100, and 16.36.110 of Chapter 16.36 of Title 16 of the Cupertino Municipal Code remain unchanged. SECTION 18. Section 16.36.120 of Chapter 16.36 of Title 16 of the Cupertino Municipal Code is hereby amended to read as follows: 16.36.120Personin Charge-Duties. Every person in charge of the moving of any building on or over the streets of the city shall: A.Notify the Fire Department within one-half hour after sunset of the location of the building and the route over which the buildingis to be moved during the night; B.Give twenty-four hours written notice to any person responsible for trimming trees, removing wires or the doing of other things necessary to permit the moving of the building over the route designated; C.Maintain red lights at each corner of the building from one-half hour after sunset till one-half hour before sunrise; D.Carry insurance to cover accidents or damage to persons and property or furnish bond therefor satisfactory to the Building Official; Council Agenda: November4, 2013 Page: 33 Revision Date: November4, 2013 598 E.Notify the Sheriff’s office of the time of moving and the route over which the building is to be moved. SECTION 19. Section 16.36.130 of Chapter 16.36 of Title 16 of the Cupertino Municipal Code is hereby repealed: Council Agenda: November4, 2013 Page: 34 Revision Date: November4, 2013 599 SECTION 20. Chapter 16.40 of Title 16 of the Cupertino Municipal Code is hereby repealed in its entirety and replaced with the following Chapter 16.40 in its entirety: CHAPTER 16.40: FIRE CODE 16.40.010 Code Adoption. The provisions of the 2013 California Fire 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 and the Fire Code Official pursuant to Health and Safety Code Section 18942 (d) (1) and are made available for public inspection. 16.40.015 Adoption of Appendix Chapters. The following Appendix Chapters from the 2013 California Fire Code are hereby adopted. Appendix B: Flow Requirement for Buildings; Appendix C: Fire Hydrant Locations and Distribution; Appendix K: Temporary Haunted Houses, Ghost Walks and Similar Amusement Uses. 16.40.020 Administration. Add Section 101.3.1 to the 2013 California Fire Code 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. Council Agenda: November4, 2013 Page: 35 Revision Date: November4, 2013 600 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. 16.40.065 Permits. Add Section \[A\] 105.1.4 to the 2013 California Fire Code to read as follows: \[A\]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. TOTAL VALUATIONSPERMIT FEE $1.00 TO $500.00$23.50 $501.00 TO $2,000.00$23.50 for the first $500.00 plus $3.05 for each additional $100.00, or fraction thereof, to and including $2,000.00 $2001.00 TO $25,000.00$69.25 for the first $2,000.00 plus $14.00 for each additional $1,000.00 or fraction thereof, to and including $25,000.00 $25,001.00 TO $50,000.00$391.25 for the first $25,000.00 plus $10.10 for each additional $1,000.00, or fraction thereof, to and including $50,000.00 $50,001.00 TO $100,000.00$643.75 for the first $50,000.00 plus $7.00 for each additional $1,000.00, or fraction thereof, to and including $100,000.00 $100,001.00 to $500,000.00$993.75 for the first $100,000.00 plus $5.60 for each additional $1,000.00, or fraction thereof, to and including $500,000.00 $500,001 to $1,000,000.00$3,233.75 for the first $500,000.00 plus $4.75 for 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 $50.00 for each occurrence at the discretion of the fire code official. Add Section \[A\] 105.1.5 the 2013 California Fire Code to read as follows: \[A\] 105.1.5 Operational permit fees. Operational permit fees shall be paid to the Santa Clara County Fire Department as follows: FACILITY TYPEPERMIT FEE 1.Institutional A. More than 6 persons $75.00-Annually Council Agenda: November4, 2013 Page: 36 Revision Date: November4, 2013 601 B. Over 50 persons$100.00-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 Structures, Tents and Canopies $85.00–Each (Only those requiring permits in accordance with Section occurrence 105.6.43). Amend Section \[A\] 105.6.8 of the 2013 California FireCode to read as follows: \[A\] 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. Exceptions: 1.Vehicles equipped for and using compressed gas as a fuel for propelling the vehicle. 2.Inert and simple asphyxiants at or below the amounts listed in Table105.6.8. Amend Table 105.6.8 of the 2013 California Fire Codeto readas follows: TABLE 105.6.8 PERMIT AMOUNTS FOR COMPRESSED GASES 1 TYPE OF GASAMOUNT cubic feet at NTP 2 Corrosive200 Flammable (except cryogenic and liquefied petroleum gases)200 Highly toxicAny amount Inert and simple asphyxiant6,000 Irritant200 Moderately toxic20 Other health hazards650 Oxidizing (including oxygen)504 PyrophoricAny amount RadioactiveAny amount Sensitizer200 ToxicAny Amount Unstable (reactive)Any amount Council Agenda: November4, 2013 Page: 37 Revision Date: November4, 2013 602 Refer to Chapters 27, 30, 32, 35, 37, 40 and 41 for additional requirements and exceptions. 1 Cubic feet measured at normal Temperature and pressure. 2 Amend Section 105.6.10 of the 2013 California Fire Code 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. Amend Table 105.6.20of the 2013 California Fire Code to read as follows: TABLE 105.6.20 PERMIT AMOUNTS FOR HAZARDOUS MATERIALS TYPE OF MATERIALAMOUNT Carcinogens 10 pounds Combustible liquidsSee Section 105.6.16 Corrosive materials: GasesSee Section 105.6.8 Liquids55 gallons Solids500 pounds CryogensSee Section 105.6.10 Explosive materialsSee Section 105.6.14 Flammable materials: GasesSee Section 105.6.8 LiquidsSee Section 105.6.16 Solids100 pounds Highly toxic materials: GasesSee Section 105.6.8 LiquidsAny amount SolidsAny amount Moderately toxic gasSee Section 105.6.8 Organic peroxides: Liquids: Class I-IVAny Amount Liquids: Class VNo Permit Required Solids: Class I-IVAny Amount Solids: Class VNo Permit Required Oxidizing materials: GasesSee Section 105.6.8 LiquidsAny amount Solids:Any amount Other health hazards: Liquids55 gallons Council Agenda: November4, 2013 Page: 38 Revision Date: November4, 2013 603 Solids500 pounds Pyrophoric materials: GasesSee Section 105.6.8 LiquidsAny amount SolidsAny amount Radioactive materials: GasesSee Section 105.6.8 LiquidsSee Section 105.6.50 SolidsSee Section 105.6.50 Toxic materials: GasesSee Section 105.6.8 LiquidsAny amount SolidsAny amount Unstable (reactive) materials: GasesSee Section 105.6.8 LiquidsAny amount SolidsAny amount Water reactive materials: LiquidsAny amount SolidsAny amount For SI:1 gallon = 3.785 L, 1 pound = 0.454 kg. a.20gallons when Table 5003.1.1(1) Note k applies and hazard identification signs in accordance with Section 5003.5 are provided for quantities of 20 gallons or less. b.200 pounds when Table 5003.1.1(1) Note k applies and hazard identification signsin accordance with Section 5003.5 are provided for quantities of 200 pounds or less. Add Section \[A\] 105.6.48 to the 2013 California Fire Code to read as follows: \[A\]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. Add Section \[A\] 105.6.49 to the 2013 California Fire Code to read as follows: \[A\] 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. Add Section \[A\] 105.6.50 to the 2013 California Fire Code to read as follows: \[A\]105.6.50 Radioactives. To store or handle at any installation more than one microcurie (37,000 becquerel) of radioactive material not contained in a sealed source or sources, or any amount of radioactive material for which a specific license from the Nuclear Regulatory Commission. Council Agenda: November4, 2013 Page: 39 Revision Date: November4, 2013 604 Amend Section \[A\] 105.7.3 of the 2013 California Fire Code to read as follows: \[A\]105.7.3 Compressed Gases. A construction permit is required to install any piped distribution system for compressed gases, or to install a non-flammable medical gas manifold system. A construction permit is required to install, repair damage to, abandon, remove, place temporarily out of service, close or substantially modify a compressed gas system. Exceptions: 1.Routine maintenance. 2.For emergency repair work performed on an emergency basis, application for permit shall be made within two working days ofcommencement of work. 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. Amend Section \[A\] 105.7.4 of the 2013 California Fire Code to read as follows: \[A\]105.7.4 Cryogenic fluids. A construction permit is required for installation of or alteration to cryogenic fluid storage systems where the system capacity exceeds the amounts listed in Table 105.6.10. Maintenance performed in accordance with this code is not considered an alteration and does not require a construction permit. Add Section \[A\] 106.5 to the 2013 California Fire Code to read as follows: \[A\] 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. 16.40.070 Definitions. The following definitions are added/amended: 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. 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 Council Agenda: November4, 2013 Page: 40 Revision Date: November4, 2013 605 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. CORROSIVE LIQUID . Corrosive liquid is: 1.any liquid which, when in contact with living tissue, will cause destruction or irreversible alteration of such tissue by chemical action; 2.any liquid having a pH of 2 or less or 12.5 or more; 3.any liquid classified as corrosive by the U.S. Department of Transportation; and 4.anymaterial exhibiting the characteristics of corrosivity in accordance with Title 22, California Code of Regulations §66261.22. DEVICE. Device is 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. MODERATELY TOXIC GAS. 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, LC50 shall be calculated using CGA Standards P-20 and P-23 as referenced in Appendix E, Section E103.1.3.1 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). 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 Council Agenda: November4, 2013 Page: 41 Revision Date: November4, 2013 606 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. Amend Section 311.1 of the 2013 California Fire Code to read as follows: 311.1 General. Temporarily unoccupied buildings, structures, premises or portions thereof, including tenant spaces, shall be safeguarded and maintained in accordance with Sections 311.1.1 through 311.4. Section 311.5 of the 2013 California Fire Code is not adopted. 16.40.120 Fire apparatus access roads. Amend Section 503.1 of the 2013 California Fire Code to read 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 503.2.1 of the 2013 California Fire Code to read 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. 16.40.130 Access to buildings and roofs. Add Section 504.5 to the 2013 California Fire Code to read as follows: 504.5 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.Allelectrically 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 504.6 to the 2013 California Fire Code to read as follows: Council Agenda: November4, 2013 Page: 42 Revision Date: November4, 2013 607 504.6 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. 16.40.150 Emergency Responder Radio Coverage. Add Section 510.1.1 to the 2013 California Fire Code to read as follows: 510.1.1 Obstruction by new buildings. When determined that 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. 16.40.180 Electrical equipment, wiring and hazards. Add Section 605.11 to the 2013 California Fire Code to read as follows: 605.11Immersion 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 608.6.4to the 2013 California Fire Code to read as follows: 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 of the 2013 California Fire Code to read as follows: Display inside buildings. The display of Christmas trees and other decorative vegetation shall be in accordance with the California Code of Regulations, Title 19, Division 1, §3.08 and Sections 806.1 through 806.5. Exceptions: Council Agenda: November4, 2013 Page: 43 Revision Date: November4, 2013 608 1.Trees located in areas protected by an approved automatic sprinkler systemin accordance Section 903.1.1 or 903.3.1.2 shall notbe prohibited in Groups A, E, M, R-1 and R-2. 2.Trees shall be allowed within dwelling units in Group R-2 occupancies. 16.40.210 Automatic sprinkler systems. Amend Section 903.2of the 2013 California Fire Code to read as follows: 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 toseparatebuilding areasshall be constructed in accordance with the California Building Code andshall be without openings or penetrations. 1.In other than residential buildings which require the installation of fire sprinklers for all new buildings according to the California Residential Code, an automatic sprinkler system shall be provided throughout all new buildings and structures. Exceptions: a.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. b.Buildings and structures that are located in the Wildland-Urban Interface Fire Area and do not exceed 500 square feet of building area. c.Group S-2 or U occupancies that are not located in the Wildland-Urban Interface and used exclusively for vehicle parking and meeting all of the following conditions: i.Noncombustible construction ii.Maximum building area not to exceed5,000 square feet iii.Structure is open on three (3) or more sides iv.Minimum of 10 feet separation from existing buildings unless area is separated by fire walls complying with CBC 706. 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 1,000 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%. Council Agenda: November4, 2013 Page: 44 Revision Date: November4, 2013 609 5.Any change in the character of occupancy or in use of any building with a building area equal to or greater than 3,600 square feet which, in the opinion of the fire code official or Building Official, would place the building into a more hazardous division of the same occupancy group 1 or into a different group of occupancies and constitutes a greater degree of life safetyor 2 increased fire risk, shallrequire the installation of an approved automatic fire sprinkler system. 1 Life Safety –Increased occupant load, public assembly areas, public meeting areas, churches, indoor amusement attractions, buildings with complex exiting systems due to increasedoccupant loads, large schools/day-care facilities, large residential care facilities with non-ambulatory; 2 Fire Risks –High-piled combustible storage, woodworking operations, hazardous operations using hazardous materials, increased fuel loads (storage of moderate to highly combustible materials), increased sources of ignition (welding, automotive repair withthe use of flammable liquids and open flames). Amend Section 903.3.1.1of the 2013 California Fire Code to read as follows: 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. For new buildings having no designated use or tenant, the minimum sprinkler design density shall be Ordinary Hazard Group 2. Where future use or tenant is determined to require a higher density, the sprinkler system shall be augmented to meet the higher density. 16.40.225 Precautions against fire. Add Section 3304.8 to the 2013 California Fire Codeto read as follows: 3304.8Fire 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 3311.1 of the 2013 California Fire Code to read as follows: 3311.1Stairways 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. Stairwaysserving 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. Council Agenda: November4, 2013 Page: 45 Revision Date: November4, 2013 610 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 3311.1.1 to the 2013 California Fire Code to read as follows: Section 3311.1.1Required 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 3308.2. 16.40.280 General Requirements –Lumberyards and Woodworking Facilities. Add Section 2803.8 to the 2013 California Fire Code to read as follows: 2803.8 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. 16.40.300 Definitions –Wildland Urban Interface Fire Areas. 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. 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. 16.40.310 Application. Amend Section 4906.2of the 2013 California Fire Code to read as follows: 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 Council Agenda: November4, 2013 Page: 46 Revision Date: November4, 2013 611 2.Landdesignated as a Very-High Fire Hazard Severity Zone or as a Wildland Urban Interface Fire Area by the City of Cupertino. 16.40.320 Defensible space. Amend Section 4907.1of the 2013 California Fire Code to read as follows: 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. Defensible space shall also be provided around water tank structures, water supply pumps and pump houses. Persons owning, leasing, controlling, operating or maintaining buildings or structures in the locally adopted Wildland-Urban InterfaceFire 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. Council Agenda: November4, 2013 Page: 47 Revision Date: November4, 2013 612 6.Remove flammable vegetation a minimum of 30 feet around liquefied petroleum gas tanks/containers. 7.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). Exception: Firewood and combustible materials not for consumption on the premises shall be stored as approved by the fire code official. 8.Clearareas within 10 feet (3048 mm) of fire apparatus access roads and driveways of non-fire- resistive vegetation growth. Exception: Single specimens of trees, ornamental vegetative fuels or cultivated ground cover, such as greengrass, ivy, succulents or similar plants used as ground cover, provided they do not form a means of readily transmitting fire. Add Section 4907.2to the 2013 California Fire Code to read as follows: 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 conditions exists. 16.40.330 Fire protection plan. 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. 16.40.340 Water Supply. Add Section 4909to the 2013 California Fire Code to read as follows: Council Agenda: November4, 2013 Page: 48 Revision Date: November4, 2013 613 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 protection water supplies in accordance with Chapter 5 and Section 4909.2. Exception: Buildings containing only private garages, carports, sheds and agricultural buildings with a building area of not more than 500 square feet (56 m2). 4909.2 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. 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. 16.40.350Ignition source control. 4910.1 Fireworks. Fireworks shall not be used or possessed in the Wildland-Urban Interface Fire Area. 16.40.355 General -Hazardous Materials. Amend Section 5001.2.2.2of the 2013 California Fire Code to read as follows: 5001.2.2.2 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 and toxic materials. 2.Corrosive materials. 3.Moderately toxic gas. 4.Other health hazards. 16.40.360 General requirements -Hazardous Materials. Add Section 5003.1.3.1 to the 2013 California Fire Code to read as follows: 5003.1.3.1Toxic, Highly Toxic, Moderately Toxic Gases and Similarly Used or Handled Materials. The storage, use and handling of toxic, highly toxic and moderately toxic gases in amounts exceeding Table 6004.2or 6004.3shall be in accordance with this chapter and Chapter 60. 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. Council Agenda: November4, 2013 Page: 49 Revision Date: November4, 2013 614 Add Section 5003.1.5 to the 2013 California Fire Code to read as follows: 5003.1.5Other Health Hazards. The storage, use and handling of materials 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 5003. Add Section 5003.1.6 to the 2013 California Fire Code to read as follows: 5003.1.6 Spill Control and Secondary Containment Requirements. A containment system shall be required forall 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, spill control and secondary containment shall also comply with Section 5004.2. Amend Section 5003.2.2.1 of the 2013 California Fire Code to read as follows: 5003.2.2.1Design 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: a.The point of use. b.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 Class3 or 4 Council Agenda: November4, 2013 Page: 50 Revision Date: November4, 2013 615 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 controlshall be located as close to the bulk source as practical. Exception: a.Piping for inlet connections designed to prevent backflow. b.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 6004.2and 6004.3.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 5003.2.2.2 of the 2013 California Fire Code to read as follows: 5003.2.2.2Additional Regulation for Supply Piping forHealth 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 ifthe 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 415.10.6.4of the California Building Codeas required for Group H, Division 5 Occupancies. Council Agenda: November4, 2013 Page: 51 Revision Date: November4, 2013 616 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 5003.3.1 of the 2013 California Fire Code to read as follows: 5003.3.1Unauthorized 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 firecode official shall be notified immediately in an approved manner and the following procedures required in accordance with Sections 5003.3.1.1through 5003.3.1.4. Add Section 5003.5.2 to the 2013 California Fire Code to read as follows: 5003.5.2Ventilation 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 Section 5003.5.3 to the 2013 California Fire Code to read as follows: 5003.5.3"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. Add Sec. 5003.9.11 of the 2013 California Fire Code to read as follows: 5003.9.11Fire 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 2703.10. 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. 16.40.365 Storage -Hazardous Materials. Amend Section 5004.2.1 of the 2013 California Fire Code to read as follows: 5004.2.1Spill 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 similarareas in outdoor locations. Council Agenda: November4, 2013 Page: 52 Revision Date: November4, 2013 617 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 perimeteropenings having an open-grate trench across the opening that connects to an approved collection system. Amend Section 5004.2.2 of the 2013 California Fire Code to read as follows: 5004.2.2Secondary 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:5004.2.2REQUIRED SECONDARY CONTAINMENT FOR HAZARDOUS MATERIAL SOLIDS AND LIQUIDS STORAGE Amend Section 5004.2.2.2 of the 2013 California Fire Code to read as follows: 5004.2.2.2 Incompatible Materials. Incompatible materials shall be separated from each other in independent secondary containment systems. 16.40.370 General –Explosives and Fireworks. Amend Section 5601.1 of the 2013 California Fire Codeto read as follows: 5601.1Scope. For explosives requirements see California Code of Regulations, Title 19, Division 1, Chapter 10 and Section 5601.2 of this Chapter. For fireworks requirements see California Code of Regulations, Title 19, Division 1, Chapter 6 and Section 5601.3of this Chapter. For small arms ammunition, see Section 5601.5of 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 5601.2to the 2013 California Fire Code to read as follows: 5601.2Explosives. The possession, manufacture, storage, sale, handling, and use of explosives are prohibited. Add Section 5601.3to the 2013 California Fire Code to read as follows: Council Agenda: November4, 2013 Page: 53 Revision Date: November4, 2013 618 5601.3Fireworks. 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 usedfor 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 5601.4to the 2013 California Fire Code to read as follows: 5601.4Rocketry. 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 5601.5through 5601.5.3.2.3to the 2013 California Fire Code to read as follows: 5601.5Small Arms Ammunition-General. Indoor storage and display of black powder, smokeless propellants and small arms ammunition shall comply with Sections 5601.5.1through 5601.5.4.2.3. 5601.5.1Packages. Smokeless propellants shall be stored in approved shipping containers conforming to DOTn 49 CFR, Part 173. 5601.5.1.1Repackaging. The bulk repackaging of smokeless propellants, black powder and small arms primers shall not be performed in retail establishments. 5601.5.1.2Damaged 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. 5601.5.2Storage in Group R occupancies. The storage of small armsammunition in Group R occupancies shall comply with Sections 5601.5.2.1 through 5601.5.2.3. 5601.5.2.1Smokeless 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 ofat least 1 inch (25 mm) nominal thickness. 5601.5.2.2Black 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 Council Agenda: November4, 2013 Page: 54 Revision Date: November4, 2013 619 5601.5.2.3Small arms primers. No more than 10,000 small arms primers shall be stored in Group R-3 occupancies. 5601.5.3Displayand storage in Group M occupancies. The display and storage of small arms ammunition in Group M occupancies shall comply with Sections 5601.5.3.1 through 5601.5.3.2.3. 5601.5.3.1Display. 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. 5601.5.3.1.1Smokeless 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. 5601.5.3.1.2Black powder. No more than 1 pound (0.454 kg) of black powder shall be displayed in Group M occupancies. 5601.5.3.1.3Small arms primers. No more than 10,000 small armsprimers shall be displayed in Group M occupancies. 5601.5.3.2Storage. The storage of small arms ammunition in Group M occupancies shall comply with Sections 5601.5.3.2.1through 5601.5.3.2.3. 5601.5.3.2.1Storage 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. 5601.5.3.2.2Black 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. 5601.5.3.2.3Small 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. 16.40.380 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 5704.2.4.4 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 congested commercial areas as determined by the Fire Code Official. 16.40.385 Storage –Flammable and Combustible Liquids. Council Agenda: November4, 2013 Page: 55 Revision Date: November4, 2013 620 Amend section 5704.2.7.5.8of the 2013 California Fire Code to read as follows: 5704.2.7.5.8 Overfill Prevention. An approved means or method in accordance with Section 5704.2.9.6.6 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 5706.4 or 5706.7 shall have overfill protection in accordance with API 2350. An approved means or method in accordance with Section 5704.2.9.7.6 shall be provided to prevent the overfilling of Class IIIB liquid storage tanks connected to fuel-burning equipment inside buildings. Exception Deleted Add section 5704.2.7.5.9to the 2013 California Fire Code to read as follows: 5704.2.7.5.9 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. 16.40.390 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 5704.2.9.6.1 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. 16.40.400 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 5806.2of the California Fire Code in which thestorage 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. 16.40.410 General–Highly toxic and toxic materials. Add Sec. 6001.3of the 2013 California Fire Code to read as follows: 6001.3 Moderately Toxic Gases With a LCEqual To Or Less Than 3000 Parts Per Million. 50 Notwithstanding the hazard class definition in Section 6002, moderately toxic gases with an LC less 50 Council Agenda: November4, 2013 Page: 56 Revision Date: November4, 2013 621 than 3000 parts per million shall additionally comply with the requirements for toxic gases in Section 6004 of this code. 16.40.430 Highly toxic, toxic and moderately toxic gases including those used as refrigerants. Add Section 6004.1.4to the 2013 California Fire Code to read as follows: 6004.1.4AutomaticShut-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 Section 6004.1.5to the 2013 California Fire Code to read as follows: 6004.1.5 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 Section 6004.1.6to the 2013 California Fire Code to read as follows: 6004.1.6 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 6004 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 6004 of this code Add Section 6004.1.7to the 2013 California Fire Code to read as follows: 6004.1.7 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 6004.1.8to the 2013 California Fire Code to read as follows: 6004.1.8 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 Council Agenda: November4, 2013 Page: 57 Revision Date: November4, 2013 622 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 5004.5. Add Section 6004.1.9to the 2013 California Fire Code to read as follows: 6004.1.9 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 firecode 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. AddSection 6004.1.10to the 2013 California Fire Code to read as follows: 6004.1.10 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 shallbe 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 6004.1.11to the 2013 California Fire Code to read as follows: 6004.1.11 Emergency Response Plan. Ifthe 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 anemergency response plan is required by other law, a responsible person shall file a copy of the plan with the fire code official. Add Section 6004.1.12to the 2013 California Fire Code to read as follows: 6004.1.12 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 Section 6004.1.13to the 2013 California Fire Code to read as follows: 6004.1.13Inert 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 Section 6004.1.14to the 2013 California Fire Code to read as follows: 6004.1.14Seismic 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 Council Agenda: November4, 2013 Page: 58 Revision Date: November4, 2013 623 LCless than 3000 parts per million upon a seismic event within 5 seconds of a horizontal sinusoidal 50 2 oscillation having a peak acceleration of 0.3G (1.47m/sec) and a period of 0.4 seconds. Amend Section 6004.2of the 2013 California Fire Code to read as follows: 6004.2 Indoor Storage and Use. The indoor storage or use of highly toxic, toxic and moderately toxic compressed gases shall be in accordance with Sections 6004.2.1 through 6004.2.2.10.3.3. The threshold quantity for highly toxic, toxic and moderately toxic gases for indoor storage and use are set forth in Table 6004.2. Add Table 6004.2to the 2013 California Fire Code to read as follows: Threshold Quantities for Highly Toxic, Toxic and Moderately Toxic Gases for Indoor Storage and Use Highly Toxic0 Toxic10 cubic feet Moderately Toxic20 cubic feet Amend Section 6004.2.1of the 2013 California Fire Code to read as follows: 6004.2.1 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 6004.2.1.1 through 6004.2.1.3. Amend Sec. 6004.2.1.1of the 2013 California Fire Code to read as follows: 6004.2.1.1 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 6004.2 shall be in accordance with Sections 5001, 5003, 6001, 6004.1 and 6004.2. Amend Sec. 6004.2.2of the 2013 California Fire Code to read as follows: 6004.2.2 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 6004.2.2.1 through 6004.2.2.10.3. Moderately toxic gases with an LCless than 3000 parts per million shallcomply with the requirements 50 for toxic gases in Sections 6004.2.2.1 through 6004.2.2.10.3. All other moderately toxic gases exceeding the threshold quantity shall comply with the requirements for toxic gases in Sections 6004.2.2.1 through 6004.2.2.7. Amend Sec. 6004.2.2.7of the 2013 California Fire Code to read as follows: 6004.2.2.7 Treatment Systems. The exhaust ventilation from gas cabinets, exhausted enclosures and gas rooms and local exhaust systems required in Section 6004.2.2.4 and 6004.2.2.5shall be directed to a Council Agenda: November4, 2013 Page: 59 Revision Date: November4, 2013 624 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 6004.2.2.7.1 through 6004.2.2.7.5 and Section 510 of the California Mechanical Code. Exceptions: 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 6004.2.2.3. Amend 6004.2.2.10.2of the 2013 California Fire Code to read as follows: 6004.2.2.10.2. 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. Amend Section 6004.3of the 2013 California Fire Code to read as follows: 6004.3 Outdoor Storage and Use. The outdoor storage or use of highly toxic, toxic and moderately toxic compressed gases shall be in accordance with Sections 6004.3.1 through 6004.3.4. The threshold quantity for highly toxic, toxic and moderately toxic gases for outdoor storage and use are set forth in Table 6004.3. Add Table 6004.3of the 2013 California Fire Code to read as follows: Threshold Quantities for Highly Toxic, Toxic and Moderately Toxic Gases for Outdoor Storage and Use Highly Toxic0 Toxic10 cubic feet Moderately Toxic20 cubic feet Amend Section 6004.3.1of the 2013 California Fire Code to read as follows: 6004.3.1 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 6004.3.1.1 through 6004.3.1.3. Amend Section 6004.3.1.1of the 2013 California Fire Code to read as follows: 6004.3.1.1 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 6004.3 shall be in accordance with Sections 5001, 5003, 6001, 6004.1, and 6004.3. Council Agenda: November4, 2013 Page: 60 Revision Date: November4, 2013 625 Moderately toxic gases with an LC50 less than 3000 parts per million in amounts exceeding the threshold quantity in Table 6004.3 shall comply with the requirements for toxic gases in Sections 5001, 5003, 6001, 6004.1 and 6004.3. Moderately toxic gases in amounts exceeding the threshold quantity in Table 6004.3 shall comply with the requirements for toxic gases in Sections, 5003, 6001, 6004.1 and 6004.3.2.1 through 6004.3.2.5. Amend Section 6004.3.3of the 2013 California Fire Code to read as follows: 6004.3.3 Outdoor Storage Weather Protection For Portable Tanks and Cylinders . Weather protection in accordance with Section 5004.13 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 5004.5. 16.40.435 Establishment of limits in which storage of liquefied petroleum gases is prohibited. The limits referred to in Section 6104.2 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. 16.40.440 Use -Silane Distribution systems automatic shutdown. Add Section 6405.3.1to the 2013 California Fire Code to read as follows: 6405.3.1Silane 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. Council Agenda: November4, 2013 Page: 61 Revision Date: November4, 2013 626 SECTION 20. The Title of Chapter 16.54 of Title 16 of the Cupertino Municipal Code is hereby amended to read as follows: CHAPTER 16.54: ENERGY CODE SECTION 21. Section 16.54.010 of Chapter 16.54 of Title 16 of the Cupertino Municipal Code is hereby amended to read as follows: 16.54.010 Code Adoption. The provisions of the2013California 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. SECTION 22. All other provisions of Chapter 16.54 of Title 16 of the Cupertino Municipal Code remain unchanged. Council Agenda: November4, 2013 Page: 62 Revision Date: November4, 2013 627 SECTION23. The Title of Chapter 16.58 of Title 16 of the Cupertino Municipal Code is hereby amended to read as follows: CHAPTER 16.58: GREEN BUILDING STANDARDS CODE ADOPTED SECTION 24. Section 16.58.010 of Chapter 16.58 of Title 16 of the Cupertino Municipal Code is hereby amended to read as follows: 16.58.010 Code Adoption. The provisions of the 2013 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 is made available for public inspection. SECTION 25. Section 16.58.015 of Chapter 16.58 of Title 16 of the Cupertino Municipal Code is hereby amended to read as follows: 16.58.015 Adoption of Appendix Chapters. No Appendix Chapters from the 2013 California Green Building Standards Codehave been adopted. SECTION 26. Section 16.58.040 of Chapter 16.58 of Title 16 of the Cupertino Municipal Code is hereby amended to read as follows: 16.58.040 Local Amendments. The following provisions of this Chapter shall constitute local amendments to the cross-referenced provisions of the 2013 California Green Building Standards Codeand shall be deemed to amend the cross-referenced sections of said Code with the respective provisions set forth in this Chapter. SECTION 27. Section 16.58.100 of Chapter 16.58 of Title 16 of the Cupertino Municipal Code is hereby amended to read as follows: 16.58.100Section 101.10–Amended. Amend Section 101.10 to read as follows: Council Agenda: November4, 2013 Page: 63 Revision Date: November4, 2013 628 101.10 Mandatory requirements. This code contains mandatory green building measures.In addition, this Chapter contains required minimum green building measures as amended by the City of Cupertino. All new buildings and structures, additions, renovations and tenant improvements subject to requirements in Table 101.10 shall comply with the mandatory measures of the 2013 California Green Building Standards Code as adopted by the state in addition to local amendments included in this code, regardless of height or number of stories, unless specifically exempted by thiscode. SECTION 28. All other provisions of Chapter 16.58 of Title 16 of the Cupertino Municipal Code remain unchanged. INTRODUCED at a regular meeting of the Cupertino City Council the ____ day of ___________ 2013 ENACTED and at a regular meeting of the Cupertino City Council on this ____ of __________ 2013 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST:APPROVED: ______________________________________________________________________ Grace Schmidt,Orrin Mahoney, City Clerk Mayor Council Agenda: November4, 2013 Page: 64 Revision Date: November4, 2013 629 PUBLIC WORKS DEPARTMENT CITY HALL 10 10300 TORRE AVENUE CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3354 www.cupertino.org CITYCOUNCILSTAFFREPORT Meeting:November19,2013 Subject McClellanRanchPreserveEnvironmentalEducationCenterandBlacksmithShopRelocation ProjectɋaugmentexistingbudgetwithadditionalfundingandauthorizeStafftorebidthe project. RecommendedActions 1.Augmentexistingbudgetwithanadditional$1,000,000fromFund429CapitalReserve 2.AuthorizeStafftorebidtheproject. Background TheFY201213CIPincludedfundingforseveralprojectsatMcClellanRanchPreserve(MRP), includinganOutdoorGatheringShelterandtheBlacksmithShopRenovation.OnOctober2, 2012,CouncilapprovedfundingfortheEnvironmentalEducationCenter(EEC)andauthorized stafftocontractwithanarchitectforthedesignofthefacilityandtoincludetheOutdoor GatheringStructureproject.Siegel&StrainArchitectswereselectedtoprovidearchitectural servicesfortheproject.Theconsultantteamthendevelopedthedesign,producedthe constructiondocuments,andpreparedanestimateofprobablecostfortheproject. ThescheduleandurgencyfortheEECprojectwastiedtotheopportunitytogainthebenefitof astategrantpartiallyfundingthe¶¸µ°«©ºɌº®«agreementforwhichrequirestheprojecttobe completebytheendofcalendaryear2014. Asdesigned,theEECbuildingwillaccommodatecurrentandfutureanticipatededucation programs.Itwillbephysicallylocatedinproximitywiththeexistingbuildingsonthesite.The canopiedoutdoorgatheringspacewillbeattachedtothebuilding,enablingclassesandother eventstobeheldinconjunctionwiththeclassroomsorindependently. TheBlacksmithShopRenovationproject,alongwiththeMcClellanRestroom,SiteAccess UpgradesandtheEnvironmentalEducationCenterɋSolarPVSystemprojectswere incorporatedintotheconstructionprojectpackageinordertominimizedisruptiontothesite. Theconsultantteamworkeddiligentlytodeveloptheconstructiondocumentsandcost estimatetomeettheaggressiveschedule.Staffstressedtheimportanceofthecostestimateto - 1 - Staff Report - McClellan Ranch Preserve Environmental Education Center and Blacksmith Shop Relocation Project 630 reflectthecurrentconstructionmarket,consideringcurrentmarkettrends,geographic influences,andspecificprojectfactors. Biddocumentswerepreparedandissuedtomeetthescheduleforcompletionrequiredbythe Stategrant.AnoticewasissuedonJuly26,2013,advertisingtheopportunitytobidonthe projecttopotentialcontractors,andPlansandSpecificationweresentdirectlyto¨»¯²ª«¸ȟ¹ exchangesandplanrooms.TheprojectwasalsopostedontheCitywebsite.Fiveweekswere allowedforthebidperiod,givingcontractorsplentyoftimetopreparetheirbidproposaland StatementofQualifications. Inanefforttogaugethecurrentbiddingclimate,staffconsultedwithothercitiestodiscuss recentbidactivityandoutcomes.Thereisageneralconcernthattheprolongedeconomic downturnhasreducedthecontractorpools,leadingtoaconstrainedmarketasprojectworkis nowincreasing. Stafftookseveralextrameasurestostimulateinterestintheprojectduetoconcernswithhaving enoughbidparticipation,includingdirectoutreachtocontractorsandfollowupwithplan holders.Staffconductedtwoprebidmeetingssocontractorscouldviewthesiteandask questionsforclarification.Themeetingswerewellattendedbyprospectivebiddersand subcontractors. SevenbidswerereceivedfortheprojectandwereopenedonAugust27,2013.Allbidsreceived weresignificantlyoverthe ¸©®¯º«©ºȟ¹Estimate.Thethreelowestbidswere55%57%abovethe ¸©®¯º«©ºȟ¹Estimateandwerewithin2%ofeachother.Staffreviewedthebiddocuments, includingtheStatementsofQualificationsforthe3lowestbidders,andfoundthemeachtobe nonresponsiveduetovariousdocumentdeficiencies.OnSeptember9,theCityManager th rejectedallbidsduetothehighvalueofthebidsreceivedandthatthelowestthreebidswere determinedtobenonresponsive. Analysisofthebidsandthebiddingprocesshasidentifiedseveralfactorsthatmayhave contributedtothedisconnectbetweenthe ¸©®¯º«©ºȟ¹Estimateandthebidresults: Thesizeoftheoverallbuildingprojectisrelativelysmall,possiblydrivingupdiscrete costswithinthebid; Constrainedaccesstothesiteandthattheworkwillbedonewhiletheparkremainsin operation; Startingconstructioninthefallwiththerequiredearthworkandfoundationworkbeing potentiallycompletedintherainyseasonmayhaveimpactedcostduetouncertainty abouttheweatherandrequiredprotectionmeasuresneededforrainyconditions; Reducedcontractormarketcomingupagainstariseinprojectopportunities.Avariety ofsourcesarereportingobservationsthattheconstructionmarketintheBayAreahas becomeveryactiveandthatbidcostsareescalatingasavailabilityoffirmshasnotkept pace.Localprivatesectorconstructionhasparticularlyreboundedandhighquality, - 2 - Staff Report - McClellan Ranch Preserve Environmental Education Center and Blacksmith Shop Relocation Project 631 experiencedcontractorsthatcanexecuteaprojectofthiscomplexityhavebecome selectiveaboutthepublicworktheyarewillingtopursue. Subsequenttotherejectionofallthebids,staffconsultedwithGilbaneBuildingCompany,the "¯º¿ȟ¹currentConstructionManagementfirm,toprepareanindependentconstructioncost estimate.Thatestimatehasvalidatedthemagnitudeofthepricessubmittedbythethreelowest bidsthatwerereceivedinAugust. NextSteps ShouldCouncilappropriatetherecommendedadditionalfunding,staffproposestorebidthe project,advertisinginJanuaryforbidsinFebruaryMarch.Constructionwouldbegininspring 2014andtheprojectwouldcompleteinearly2015. Staffwillagaintakestepstostimulatecontractorinterestintheprojectandtohelpcontractors insubmittingcompletebidandqualificationsdocuments.Thebidrequirementswillbe clarifiedorsimplifiedwhereappropriate. Whileafallstartofconstructionischallengingduetopotentialrainimpacts,aspringstart posesitsownchallenges.Inordertoensurethattheprojectwillnotbedelayedbyseasonal concernsofnestingbirds,staffanticipatestakingvariousactionstodiscouragenestingbetween nowandthestartofconstructionintheMarchApriltimeframe.Thismayincludetheremoval oftwopalmtreesandasmalloakthatwillotherwiseberemovedaspartoftheconstruction contract.TheseremovalsmayneedtobecompletedinJanuary. ProjectBudgetAnalysis Thetotalfundingrecommendedtocompletetheprojectis$3,085,000,whichincludescurrent adoptedappropriationstotaling$2,085,000,asnotedbelow: EnvironmentalEducationCenteris$1,400,000(including$251,000Stategrant) OutdoorGatheringShelteris$125,000 BlacksmithShopRenovationis$400,000 RestroomandSiteAccessUpgradeis$110,000 EnvironmentalEducationCenterɋSolarPVSystemis$50,000 Additionalfundingintheamountof$1,000,000isrecommendedinordertofundthemore realisticvalueoftheconstructionandnotenduremoredelayforfurtherappropriationrequests. Theproposedadditionalfundingwillprovidefortheanticipatedadditionalconstructioncost basedontheGilbaneestimate,additionalconstructionmanagementanddesignconsultant servicesfortherebidprocess,andadditionalcontingencyfundstoensurethereisadequate fundingforconstructioncontingenciesandtoawardtheprojectwithoutfurtherdelays. Thefollowingisasummaryofprojectcosts: - 3 - Staff Report - McClellan Ranch Preserve Environmental Education Center and Blacksmith Shop Relocation Project 632 ProjectCostSummary Theproposedbudgettoproceedwiththeprojectisnotedbelow. DesignFees$355,000 Environmental,Permitting,Services,Admin.43,200 ConstructionContract2,024,000 ConstructionContractChangeOrderAllowance15%303,600 ConstructionManagement,Inspection,Testing316,500 ProjectContingency42,700 TotalProjectCost:$3,085,000 LessPriorAppropriations:$2,085,000 FundingNeededtoProceed:$1,000,000 RecommendationRecap Staffrecommendsappropriatingadditionalfundsintheamountof$1,000,000fromFund429 CapitalReserve,andauthorizingCitystafftorebidtheprojectinJanuary2014. SustainabilityImpact ImplementationoftheEnvironmentalEducationCenterprojectwillsupportthe©¯º¿ȟ¹ sustainabilitygoals,includingthatthe. building will be equivalent with LEED Silver standards FiscalImpact Therecommendedbudgetforthisprojectwillprovidefundingforimplementationandaddress therecommendedactions.Theanticipatedoperatingandmaintenancecostsoverthefiveyears followingcompletionoftheprojectareapproximately$20,000peryear. _____________________________________ Preparedby:CarmenLynaugh,PublicWorksProjectManager Reviewedby:TimmBorden,DirectorofPublicWorks ApprovedforSubmissionby:DavidBrandt,CityManager Attachments:None - 4 - Staff Report - McClellan Ranch Preserve Environmental Education Center and Blacksmith Shop Relocation Project 633