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04-27-2021 Searchable PacketCITY OF CUPERTINO CITY COUNCIL AGENDA This will be a teleconference meeting without a physical location. Tuesday, April 27, 2021 6:15 PM Televised Special Meeting Joint Study Session - City Council, Planning Commission, and Housing Commission TELECONFERENCE / PUBLIC PARTICIPATION INFORMATION TO HELP STOP THE SPREAD OF COVID-19 In accordance with Governor Newsom’s Executive Order No-29-20, this will be a teleconference meeting without a physical location to help stop the spread of COVID-19. Members of the public wishing to observe the meeting may do so in one of the following ways: 1) Tune to Comcast Channel 26 and AT&T U-Verse Channel 99 on your TV. 2) The meeting will also be streamed live on and online at www.Cupertino.org/youtube and www.Cupertino.org/webcast Members of the public wishing comment on an item on the agenda may do so in the following ways: 1) E-mail comments by 4:30 p.m. on Tuesday, April 27 to the Council at citycouncil@cupertino.org, Planning Commission at planningcommission@cupertino.org and the Housing Commission at housingcommission@cupertino.org. These e-mail comments will also be forwarded to Councilmembers and Commission members by the City Clerk’s office before the meeting and posted to the City’s website after the meeting. 2) E-mail comments during the times for public comment during the meeting to the City Clerk at cityclerk@cupertino.org. The City Clerk will read the emails into the record, and display any attachments on the screen, for up to 3 minutes (subject to the Mayor’s discretion to shorten time for public comments). Members of the public that wish to share a document must email cityclerk@cupertino.org prior to speaking. 3) Teleconferencing Instructions Members of the public may provide oral public comments during the teleconference Page 1 1 CC, PC, HC 04-27-2021 1 of 13 City Council Agenda April 27, 2021 meeting as follows: Public comments will be accepted during the teleconference meeting. Comments may be made during the public comment period for each agenda item. To address the City Council and Commissions, click on the link below to register in advance and access the meeting: Online Register in advance for this webinar: https://cityofcupertino.zoom.us/webinar/register/WN_HdnZkC4XSN2fdw-4ruHtag Phone Dial: 669-900-6833 and enter Webinar ID: 944 9867 1656 (Type *9 to raise hand to speak, *6 to unmute yourself). Unregistered participants will be called on by the last four digits of their phone number. Or an H.323/SIP room system: H.323: 162.255.37.11 (US West) Meeting ID: 944 9867 1656 SIP: 94498671656@zoomcrc.com After registering, you will receive a confirmation email containing information about joining the webinar. Please read the following instructions carefully: 1. You can directly download the teleconference software or connect to the meeting in your internet browser. If you are using your browser, make sure you are using a current and up-to-date browser: Chrome 30+, Firefox 27+, Microsoft Edge 12+, Safari 7+. Certain functionality may be disabled in older browsers, including Internet Explorer. 2. You will be asked to enter an email address and a name, followed by an email with instructions on how to connect to the meeting. Your email address will not be disclosed to the public. If you wish to make an oral public comment but do not wish to provide your name, you may enter “Cupertino Resident” or similar designation. 3. When the Mayor calls for the item on which you wish to speak, click on “raise hand.” Speakers will be notified shortly before they are called to speak. 4. When called, please limit your remarks to the time allotted and the specific agenda topic. Page 2 2 CC, PC, HC 04-27-2021 2 of 13 City Council Agenda April 27, 2021 In compliance with the Americans with Disabilities Act (ADA), anyone who is planning to attend this teleconference City Council meeting who is visually or hearing impaired or has any disability that needs special assistance should call the City Clerk's Office at 408-777-3223, at least 48 hours in advance of the Council meeting to arrange for assistance. In addition, upon request, in advance, by a person with a disability, City Council meeting agendas and writings distributed for the meeting that are public records will be made available in the appropriate alternative format. NOTICE AND CALL FOR A SPECIAL JOINT MEETING OF THE CUPERTINO CITY COUNCIL, CUPERTINO PLANNING COMMISSION AND CUPERTINO HOUSING COMMISSION NOTICE IS HEREBY GIVEN that a special joint meeting of the Cupertino City Council, Cupertino Planning Commission and Cupertino Housing Commission is hereby called for Tuesday, April 27, 2021, commencing at 6:15 p.m. In accordance with Governor Newsom’s Executive Order No-29-20, this will be a teleconference meeting without a physical location. Said special meeting shall be for the purpose of conducting business on the subject matters listed below under the heading, “Special Meeting." SPECIAL MEETING ROLL CALL STUDY SESSION 1.Subject: Special joint study session meeting with City Council, Planning Commission, and Housing Commission on the Housing Element update. Recommended Action: That the City Council, Planning Commission, and Housing Commission receive the report and provide any input to staff. Staff Report A - Baird + Driskell Memo ADJOURNMENT The City of Cupertino has adopted the provisions of Code of Civil Procedure §1094.6; litigation challenging a final decision of the City Council must be brought within 90 days after a decision is announced unless a shorter time is required by State or Federal law. Prior to seeking judicial review of any adjudicatory (quasi-judicial) decision, interested persons must file a petition for reconsideration within ten calendar days of the date the City Clerk mails notice of the City’s decision. Reconsideration petitions must comply with the requirements of Cupertino Municipal Code §2.08.096. Contact the City Clerk’s office for more information or go to http://www.cupertino.org/cityclerk for a reconsideration petition form. Page 3 3 CC, PC, HC 04-27-2021 3 of 13 City Council Agenda April 27, 2021 In compliance with the Americans with Disabilities Act (ADA), anyone who is planning to attend this teleconference meeting who is visually or hearing impaired or has any disability that needs special assistance should call the City Clerk's Office at 408-777-3223, at least 48 hours in advance of the meeting to arrange for assistance. In addition, upon request, in advance, by a person with a disability, meeting agendas and writings distributed for the meeting that are public records will be made available in the appropriate alternative format. Any writings or documents provided to a majority of the Cupertino City Council after publication of the packet will be made available for public inspection in the City Clerk’s Office located at City Hall, 10300 Torre Avenue, during normal business hours and in Council packet archives linked from the agenda/minutes page on the Cupertino web site. IMPORTANT NOTICE: Please be advised that pursuant to Cupertino Municipal Code 2.08.100 written communications sent to the Cupertino City Council, Commissioners or City staff concerning a matter on the agenda are included as supplemental material to the agendized item. These written communications are accessible to the public through the City’s website and kept in packet archives. You are hereby admonished not to include any personal or private information in written communications to the City that you do not wish to make public; doing so shall constitute a waiver of any privacy rights you may have on the information provided to the City. Page 4 4 CC, PC, HC 04-27-2021 4 of 13 CITY OF CUPERTINO Agenda Item 21-9144 Agenda Date: 4/27/2021 Agenda #: 1. Subject: Special joint study session meeting with City Council, Planning Commission, and Housing Commission on the Housing Element update. That the City Council, Planning Commission, and Housing Commission receive the report and provide any input to staff. CITY OF CUPERTINO Printed on 4/21/2021Page 1 of 1 powered by Legistar™5 CC, PC, HC 04-27-2021 5 of 13 CITY COUNCIL STAFF REPORT Meeting: April 27, 2021 Subject Special joint study session meeting with City Council, Planning Commission, and Housing Commission on the Housing Element update. Recommended Action That the City Council, Planning Commission, and Housing Commission receive the report and provide any input to staff. Background As part of the City’s RHNA Study Session Work Program item, the following study sessions and public meetings have previously been held to provide information and discussion on the separate, but parallel long-range processes of Plan Bay Area 2050 and the Regional Housing Needs Allocations (RHNA), which provide foundation for the Housing Element update.  May 19, 20201: City Council study session provided background on Plan Bay Area 2050 and RHNA.  July 8, 20202: City Council special meeting provided a review of HCD’s Regional Housing Needs Determination.  November 10, 20203: Planning Commission study session provided a review of the Association of Bay Area Government’s RHNA proposed methodology report. 1 Available here: https://cupertino.legistar.com/LegislationDetail.aspx?ID=4524386&GUID=97E209AB -F8E2-4D11- 8048-681A2ECB7C42&Options=&Search= 2 Available here: https://cupertino.legistar.com/LegislationDetail.aspx?ID=4587061&GUID=3DE252BA-DD6E- 4A22-9E07-A1CFD5F59113&Options=&Search= 3 Available here: https://cupertino.legistar.com/LegislationDetail.aspx?ID=4688247&GUID=56A8FD80-673B-4F1A- BAB4-5FBD7DA7FFC5&Options=&Search= 6 CC, PC, HC 04-27-2021 6 of 13 2  November 17, 20204: City Council study session provided a review of ABAG’s RHNA proposed methodology report. Discussion The study session is the first of two joint Housing Element Kick-Off study sessions facilitated by the Santa Clara County Planning Collaborative’s technical support team, Baird + Driskell. The purpose of the two-part study session is to provide background for the upcoming process to update the Housing Element. State law requires that every city and county in California adopt a Housing Element approximately every eight years. The Housing Element is part of Cupertino’s General Plan and identifies policie s and programs to meet the housing needs of the City’s current and future residents at all income levels. The first study session will focus on an introduction and overview of the Housing Element structure and required sections. See report prepared by Baird + Driskell (Attachment A). The second joint study session is tentatively scheduled for May 11, 2021 and will provide participants an opportunity to explore best practices. Next Steps The second joint City Council, Planning Commission, and Housing Commission study session is tentatively scheduled for May 11, 2021. Meeting information will be provided via e-notices to those who have signed up, and posted on the City’s website, social med ia, and the Housing Element webpage: www.cupertino.org/housingelement. Sustainability Impact No sustainability impact. Fiscal Impact No fiscal impact. Prepared by: Erika Poveda, Associate Planner Piu Ghosh, Planning Manager Reviewed by: Benjamin Fu, Director of Community Development Approved by: Dianne Thompson, Assistant City Manager Attachments: A - Baird + Driskell Memo 4 Available here: https://cupertino.legistar.com/LegislationDetail.aspx?ID=4692112&GUID=55297C93 - C6B5-4C7A-9976-46878BD85BFB&Options=&Search= 7 CC, PC, HC 04-27-2021 7 of 13 2635 Benvenue Ave Berkeley, CA 94704 510.761.6001 1 From: Paul Peninger and Joshua Abrams, Baird and Driskell Community Planning To: Piu Ghosh, Planning Manager, City of Cupertino Re: City Council/Planning Commission Housing Element Study Sessions Date: April 19, 2021 Introduction This memo provides background context and information on the General Plan Housing Element update process in preparation for the upcoming City Council/Planning Commission /Housing Commission joint Housing Element Study Sessions. The two Study Sessions will be structu red to provide Councilmembers and Commissioners with a full introduction to all of the required components of Cupertino’s Housing Element, including new analyses or requirements that have been added as the result of recently passed State laws. The technical support team for the Santa Clara County Planning Collaborative1 (of which Cupertino is a member) comprised of staff from Baird+ Driskell will also facilitate a discussion around proactive housing and programs for the Councilmembers and Commissioners to consider as Cupertino looks to create a tailored Housing Element that fits within the community’s larger planning and development goals. The first study session on April 27 will provide a comprehensive overview of: 1) The Housing Element structure and required sections; 2) the RHNA methodology and allocation process; and 3) New legal requirements and resources for this planning period. Building on study session #1, the second session on May 11 will provide participants with an opportunity to explore best practices in housing element policies and programs in comparable California jurisdictions, as well as to discuss potential locally appropriate housing strategies for Cupertino. Overview of the Housing Element The Housing Element is part of Cupertino General Plan and identifies policies and programs to meet the housing needs of the city’s current and future residents. State law (Government Code Sections 65580-65589.8) requires that every city and county in California adopt a Housing Element approximately every eight years. In addition, the State Department of Housing and Community Development (HCD) reviews and certifies that each Housing Element meets all the requirements of the law. Cupertino’s previous Housing Element was adopted in 2015 and the new document must be adopted by January 2023. This Housing Element update process is expected to be more time intensive and rigorous than previous cycles for several reasons. First, as displayed below, Cupertino’s proposed Regional 1The Planning Collaborative meets monthly and meeting presentations, training materials and related resources are posted on the Collaborative page hosted by the Cities Association https://citiesassociation.org/planning/. 8 CC, PC, HC 04-27-2021 8 of 13 2635 Benvenue Ave Berkeley, CA 94704 510.761.6001 2 Housing Needs Allocation (RHNA) is significantly higher than last cycle: 4,588 units compared to 1,064. Also, because of changes in State law, it may be harder to identify sites that can count towards meeting the RHNA. There are also other new rules, such as Affirmatively Furtheri ng Fair Housing, which are in effect for the first time this cycle. In spite of these potential challenges, this Housing Element update also provides the community with an unprecedented opportunity to reevaluate its housing strategies and design a proactive housing plan tailored to Cupertino’s unique needs and characteristics. The below information will highlight the most critical aspects of the Housing Element update process, highlighting new requirements, resources and opportunities for this planning c ycle, also referred to as the “RHNA 6” Planning Cycle. Housing Element Components The Housing Element includes several major components, as follows: 1. Community Outreach and Engagement: Community outreach and engagement is critical to a successful Housing Element update, and both HCD and ABAG recommend that outreach occur throughout the update process with a particular focus on outreach to traditionally underrepresented groups2. Through its participation in the Planning Collaborative, Cupertino will also have the opportunity to participate in joint outreach and engagement activities will other Silicon Valley cities, and/or to take advantage of engagement resources developed through the Collaborative. 2. Evaluation of Past Performance: Each year, Cupertino prepares an annual progress report (APR) on the City’s status and progress in implementing its Housing Element (Government Code Section 65400). Building on the accomplishments documented in the City’s APR, as well as additional information on the City’s progress towards meeting its housing goals as presented in the previously adopted Element, this section of the Housing Element will provide a comprehensive assessment of past performance3. 3. Housing Needs Assessment: The Housing Needs Assessment provides a fresh opportunity to analyze Cupertino’s current housing needs in light of recent demographic and economic trends. As part of ABAG’s Regional Housing Technical Assistance Program (REAP), a data packet for all Bay Area jurisdictions has already been prepared and can form the basis of this section. The data packet and analysis for Cupertino can be accessed at the following link: 2 Additional resources on community engagement are provided by both HCD (https://www.hcd.ca.gov/community- development/building-blocks/getting-started/public-participation.shtml) and ABAG will be offering an upcoming training through the REAP program on best practices in community engagement. 3 https://www.cupertino.org/our-city/departments/community-development/housing/housing-documents 9 CC, PC, HC 04-27-2021 9 of 13 2635 Benvenue Ave Berkeley, CA 94704 510.761.6001 3 https://mtcdrive.app.box.com/s/nei8x775oi5m47mqhu8ctpyyqrioa2v3/folder/1347838515 55 4. Constraints Analysis: The Housing Element will also include a complete analysis of existing and potential governmental and nongovernmental constraints to the development of housing. For this planning period, the analysis should provide additional detail on market and financial constraints to housing development. 5. Housing Sites Inventory: In many respects, the sites inventory and analysis constitutes the core of the housing element as this section lists the housing sites available for development or redevelopment, ensuring that there is sufficient capacity to address the city’s RHNA. The ABAG Executive Board adopted a draft methodology for distributing the region’s housing needs by jurisdiction in January of this year, and it has been approved by HCD. (See attached letter.) The methodology will now be finalized, and draft RHNA numbers will be provided to individual jurisdictions which will then have an opportunity to appeal. Table 1: Illustrative RHNA for Cupertino, Santa Clara County and the Bay Area, January 2021 Whatever the outcome of the final RHNA allocation for Cupertino, perhaps the chief challenge this cycle will be identifying sufficient housing sites to meet the RHNA. This is in part due to the higher numbers, but also because of State laws like AB 1397 (passed 10 CC, PC, HC 04-27-2021 10 of 13 2635 Benvenue Ave Berkeley, CA 94704 510.761.6001 4 in 2017)4 which require: increased focus on ensuring that sites are located in high opportunity areas; 'by-right' zoning for lower income sites identified in previous housing elements; restriction on designating sites smaller than 0.5 acre or larger than 10 acres as suitable for lower income housing; and new standards and increased scrutiny for non-vacant sites, including lease terms and market demand for the existing use. Although the RHNA numbers for this planning period are significantly higher, there are also new resources and technical assistance available through the Planning Collaborative and ABAG. One of these is the Housing Sites Selection (HESS) Tool, a web- based platform to guide local jurisdictions in identifying potential sites that align with state requirements as well as regional and local priorities. This tool has been provided in an initial version to Cupertino and other cities across the region and is currently being refined to be more useful in identifying potential housing sites. In addition, a key workplan priority of the Planning Collaborative will be sites inventory technical assistance and training, providing staff with ongoing support throughout the update process. 6. Policies and Programs: Finally, the Housing Element will develop goals, objectives, policies and programs to meet the housing needs as identified in the Housing Element. These policies may include: land use, zoning and development process improvements; financial incentive program for affordable housing (for examp le, using Cupertino’s commercial and residential in-lieu fee funds); and may other specialized policies and programs that can be tailored to Cupertino’s community example (for example, customized Accessory Dwelling Unit programs and policies). Additional Changes Affecting this Housing Element Update In addition to the new requirements listed above by Housing Element section, there are also a number of other significant changes to note, as follows: 1. Program to Rezone Housing Sites. Ideally, Cupertino will be able to identify sufficient sites to address the RHNA prior to adoption of the updated housing element. If, however, sufficient sites are not identified in the Housing Element when adopted, the Element must include a program to rezone sites to meet the shortfall. The program to rezone must be completed either at the time of the housing Element update or 4 For more information on this and other housing laws adopted by the State in 2017, refer to this primer from Goldfarb and Lipman. https://goldfarblipman.com/wp -content/uploads/2017/11/Recent- Developments-in-California-Housing-Legislation-10-2017.pdf 11 CC, PC, HC 04-27-2021 11 of 13 2635 Benvenue Ave Berkeley, CA 94704 510.761.6001 5 within three years. There are specific requirements for any rezoning to address RHNA, which makes it more onerous than doing required rezoning actions prior to on -time housing element adoption. Key provisions for Cupertino sites designated for lower income housing include:  Ensure sites are zoned to allow owner-occupied and rental multifamily residential uses “by-right,” where projects not requiring a subdivision and including 20 percent affordable housing are not subject to CEQA and may only be subject to design review.  Ensure sites permit a minimum of 20 dwelling units per acre. 2. Affirmatively Furthering Fair Housing. In 2018, California adopted new requirements for jurisdictions to Affirmatively Further Fair Housing (AFFH). While it has long been illegal for cities to discriminate based on race or certain other categories, the AFFH rules go further and require that cities actively work to dismantle the legacy of segregation and to create equal housing opportunities. The State is still finalizing guidance, but cities will likely be expected to:  Study housing demographics more thoroughly, in particular identifying how the needs and trends are different for people of color and other protected groups,  Ensure that public engagement reaches all segments of the community,  Plan so that sites designated for lower income housing or upzoned are not disproportionately put in low-income communities of color, and  Develop policies and programs that advance equity. As with community engagement and sites analysis, AFFH will also be a key priority of the Collaborative’s workplan in the coming year. 3. Safety Element. Recent state legislation (SB 379, SB 1035, SB1241) has placed new requirements on how and when local jurisdictions need to update the Safety Element. This chapter of the General Plan must be updated at the same time as the Housing Element. This includes identifying the specific environmental hazards and risks that are posed by climate change and wildfire. Timeline and Process While Cupertino’s Housing Element is due in January 2023, like all jurisdictions in the Bay Area it is important to build in a few months extra to ensure HCD has time to conduct their required review prior to final adoption by Council. The following is a preliminary draft timeline that will need to be adjusted for Cupertino in the coming months: 1. Start Process – Spring ‘21 2. Complete Housing Goals, Policies, & Technical Analysis – Summer ‘21 12 CC, PC, HC 04-27-2021 12 of 13 2635 Benvenue Ave Berkeley, CA 94704 510.761.6001 6 3. Preparation of Draft Site Inventory – Fall ‘21 4. Public Hearings & Approval of Draft Site Inventory – Winter’21/Early ‘22 5. Preparation of Draft Housing Element- early Summer ‘22 6. Public Hearings – late Summer ‘22 7. Submit Draft Housing Element to HCD – early Fall ‘22 8. Preparation of Final Housing Element – late Fall ‘22 9. Public Hearings & Adoption – Winter ‘22 10. Submit Final Housing Element to HCD- Jan. ‘23 Rezoning is not included in the timeline above as the site inventory will first need to be conducted to determine the extent of rezoning. 13 CC, PC, HC 04-27-2021 13 of 13