Policy Watch: Week of 7/6

| City of Cupertino |

Direction on possible changes to General Plan Amendment authorization procedure

Date/time/location item will be heard: Tuesday, July 7, 2020, 5:30pm

Issue summary: City Council will hold a study session requested by CMs Chao and Paul, and provide direction on any next steps regarding the General Plan Amendment Authorization Procedure. Council may consider keeping the existing procedure, repealing it, or refining it to address concerns, such as providing additional public outreach or requiring more detailed project submittals as part of the GPA Authorization application. 

In 2014, members of the community expressed concern about the City’s processing of real estate development project applications requesting amendment of the General Plan. Concerns included that the process also did not allow the public a meaningful opportunity to influence the community benefits provided by projects because the benefits would be unknown until the applications were before the Planning Commission and City Council for final approval. 

The City initially responded to these concerns by adding a policy in the General Plan to allow increased development in certain areas of the city only if project sponsors offered community benefits and provided ground floor retail. In 2015, council adopted a standalone policy for processing GPA Authorization applications.

Under this current GPA Authorization Procedure, council considers the following in deciding which projects are authorized to apply for a GPA: 

  • General Plan goals achieved; 
  • quality of architectural and site design and neighborhood compatibility; 
  • fiscal impacts; 
  • affordable housing provided; 
  • sustainability; 
  • merits of and the impact on the General Plan of variances sought; 
  • voluntary community amenities provided (e.g., school resources, public open space, libraries, community centers, utility systems, public and transportation); and 

The public and members of the City Council have expressed several concerns about the existing program, such as that the community benefits from project to project have been inconsistent. Critics also say the number of public outreach meetings should be increased to solicit more public input. 

If council decides to amend or develop a new GPA Authorization Procedure, staff would potentially need consultant and legal services and may require a future budget.

Link to item: https://cupertino.legistar.com/LegislationDetail.aspx?ID=4583361&GUID=D412CDA7-A72C-40CA-8D7D-BD3771CAE839&Options=&Search=

Link to agenda: https://cupertino.legistar.com/MeetingDetail.aspx?ID=732525&GUID=9034A072-AEFE-4C6D-B0DC-24C4FA3723BA&Options=info|&Search=


Adopting regulations for Short-Term Rentals

Date/time/location item will be heard: Tuesday, July 7, 2020, 5:30pm

Issue summary: Staff recommend council adopt the first reading of an ordinance to regulate short-term rentals 

Prior to the Santa Clara County’s first Shelter in Place Order issued in March 2020, reports indicated that roughly 400 STRs were operating in the City. However, due to the travel restrictions imposed by the Shelter in Place Orders, as of June 18, 2020, there were about 242 STRs operating in the City. 

STR operators are required to pay the current Transit Occupancy Tax of 12%. Currently, the City has an agreement with Airbnb, one of the more prominent STR platforms, to automatically collect TOT via their platform and remit the tax to the City through a Voluntary Collection Agreement. As part of the FY 2018-19 Work Program, Council requested that a regulatory framework for STRs be developed. The general direction was to allow STRs while protecting long-term housing stock and preserving the quality of life for residents. 

The new regulations would allow STR activity as a home occupation within a primary residence (the property at which a person resides a majority of time, carries on basic living activities, and the place he or she usually returns to, in the event of travel.) An STR is prohibited if the dwelling unit is not used as a primary residence. STR activity would not be permitted within any Accessory Dwelling Unit (ADU), including Junior ADU. The property on which the STR is located must provide the minimum parking spaces required by the zoning district in which it is located in, and designate at least one on-site parking space for the STR. 

STR activity is limited to one rental agreement or hosting platform booking per night per parcel. Hosted stays, when the host is present, may occur throughout the calendar year without a limitation on the cumulative number of short-term rentals. Un-hosted stays, when the host is not present, are limited to 60 days per calendar year. The number of guests is limited to a total of two times the number of bedrooms in the dwelling unit or portion rented per the rental agreement, or a maximum of two for a studio or single room rental (such as a family room/living room rental). 

Under the proposed ordinance, hosting platforms are responsible for collecting TOT, unless a valid voluntary collection agreement or other agreement for TOT remittance exists. The City has conducted outreach with two of the largest STR hosting platforms (Airbnb and Expedia) in developing the section regulating hosting platforms. 

Due to the COVID-19 pandemic, it is recommended that the operative date of the ordinance be six months after the State and County’s Shelter in Place Orders are lifted to allow non-essential travel. The six-month timeframe is recommended to allow three months for STRs to resume operation, the STR market to stabilize and data collection to inform the cost recovery fee for STR registration. After the data has been analyzed, fee options will be calculated and brought before Council for adoption. 

A second reading of the ordinance is tentatively scheduled for July 21, 2020.

Link to item: https://cupertino.legistar.com/LegislationDetail.aspx?ID=4392774&GUID=B5F73401-3DD7-486A-891B-8464904C571C&Options=&Search=

Link to agenda:https://cupertino.legistar.com/MeetingDetail.aspx?ID=732525&GUID=9034A072-AEFE-4C6D-B0DC-24C4FA3723BA&Options=info|&Search


| Santa Clara Valley Water District |

Direction on program & ballot measure to renew special tax for Safe, Clean Water and Natural Flood Protection Program

Date/time/location item will be heard: Tuesday, July 14, 2020, 11am

Issue summary: Staff recommend the board adopt a resolution to replace and renew the existing special parcel tax to pay for the Safe, Clean Water and Natural Flood Protection Program beyond its current expiration in 2028, as well as provide direction on programmatic changes. 

The existing Safe, Clean Water Program was approved by 74% of voters in November 2012 as a 15-year special parcel tax that provides a strategy to support uninterrupted water resource services in Santa Clara County. The current program funds approximately one-third of the existing watershed and stewardship budgeted programs. Currently, the Safe, Clean Water Program special parcel tax is comprised of six categories for commercial/ industrial, high-density parcels, single-family residential and multi-family units up to four, agricultural, and nonutilized urban and rural areas. An annual escalator is also included to account for the effects of inflation that the Board may adjust annually.

Valley Water staff has recommended changes to the current program including adding a sixth priority to support public health and public safety as an essential service provider.

Link to item:  https://scvwd.legistar.com/LegislationDetail.aspx?ID=4584406&GUID=C56F3D95-2AC9-459B-939E-FA4C48E1CB93&Options=&Search=

Link to agenda: https://scvwd.legistar.com/MeetingDetail.aspx?ID=795459&GUID=FB95DD1E-D182-4923-B67A-3F17135B5132&Options=info|&Search=


| City of Gilroy|

Date/time/location item will be heard:  7/6/2020 6:00 PM (continued from adjourned meeting of July 1)

Issue summary:    CalPERS costs continue to escalate at the same time the City is faced with monumental revenue loss as a result of the COVID-19 pandemic.  The Firefighters’ union, IAFF, Local 2805, Memorandum of Understanding expires on June 30, 2020 while all other labor contracts have expiration dates of June 30, 2021 (AFSCME, Local 101 and Gilroy Management Association) or June 30, 2022 (Gilroy Police Officers Association). The goal of the discussions with the labor groups and achieving concession agreements is to reduce general fund payroll expenditures by $4M in order to have a sustainable budget going forward.

As of the date of this staff report, one organized employee group has finalized a concession agreement for City Council approval – the Gilroy Management Association (GMA). The details regarding the GMA concession agreement are contained below. In addition, the City is bringing forward policy memorandums for all of the unrepresented employees that are similar to the GMA agreement. Communication and discussion with the AFSMCE, Fire, and Police labor groups continue. 

Link to item:   http://gilroyca.iqm2.com/Citizens/Detail_LegiFile.aspx?Frame=&MeetingID=1928&MediaPosition=&ID=2919&CssClass

Link to agendahttp://gilroyca.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1928 


| City of Santa Clara|

City Manager’s report on COVID-19 pandemic 

Date/time/location item will be heard: Tuesday, July 7, 2020, 1pm

Issue summary: Council will receive a verbal report from City Manager regarding the COVID-19 Pandemic.

Link to item: https://santaclara.legistar.com/LegislationDetail.aspx?ID=4582159&GUID=49C63A2C-3FB3-4DAE-8424-87BDA6725233&Options=&Search=

Link to agenda: https://santaclara.legistar.com/MeetingDetail.aspx?ID=726165&GUID=1AE4EAC6-6D30-48E7-ACBB-16600F2F59A5&Options=&Search=



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