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Bollinger Road is the boundary between Cupertino and San Jose.

In July 2021 (during Covid-19 pandemic), the City of Cupertino generated Bollinger Road Corridor Safety Study. The report provided many safety suggestions and two alternatives.

• Alternative A includes a lane reduction on Bollinger Road, from two travel lanes in each direction to one travel lane in each direction and a two-way left-turn lane.
• Alternative B maintains the existing lane configuration of two travel lanes in each direction.

You can also see related information here.

San Jose Spotlight reported on 01/22/2024 that the project is set to start this (2024) summer.

Cupertino received external funding for this project. Cupertino needs to pay 20% of the cost for design.

This project appeared as Low priority item on 03/19/2024 City Council study session.

According to Bollinger Road Corridor Safety Study, the total cost for Alternative A is $11.7M, and the total cost for Alternative B is $10.5M in 2021. The project will be a five-year project. And total cost for Cupertino is estimated to be $4M.

During the public comment time, residents were split into two groups with one group supported Alternative A (lane reduction), while another group supported Alternative B (maintain lanes). Which alternative do you support?

Below are more details about Bollinger Road Corridor Safety Study.

The study is a safety study with goals to "identify improvements to create a safer and more accessible corridor". According to the report, seems all the collisions happened at intersections.

The study performed two surveys in March 2021 and May 2021, respectively. The March survey received 247 responses. While the survey in May had 139 unique users "VIEW" the maps. The report didn't mention how many responses received for the survey in May. The survey in May was about the two alternatives of reducing lanes and maintaining current lanes. Some residents reported they were aware of the survey in March, but they were not aware of the survey in May.

The results for the survey in March 2021 were:

The results for the survey in May 2021 were:

California cities are expected to update their Housing Element every eight years. The Housing Element serves as the local government's blueprint for how the city will grow and develop.

The Housing Element must be approved by HCD (California Department of Housing and Community Development). HCD adopted RHNA (Regional Housing Needs Allocation) in 2021. HCD uses the RHNA methodology to specify housing allocation goals. The allocation numbers that Cupertino and other cities must now meet are generally much higher than previous cycles. An audit by the California State Auditor has outlined several weaknesses in the RHNA methodology. Here is a good article regarding the controversy regarding this issue.

California also passed many laws recently to encourage housing. Those new laws and HCD's high RHNA allocations changed cities' Housing Element dramatically. Cupertino has no exception. Cupertino's RHNA allocation is 4,588 new units from 2023 to 2031.

Cupertino has its third draft of Housing Element. To achieve the RHNA allocation, Cupertino rezoned many sites and setup many ways to increase density.

One interesting part of the Housing Element is HE-1.3.6 (page H-17 of the Housing Element third draft). The first bullet says "Allowing corner lots in R1 zoning districts to develop as multi-family rental housing using R3 zoning regulations to encourage missing-middle developments." R1 means single family house. R2 means duplex. R3 is not triplex, but multi-family housing. All apartments in Cupertino so far are R3. This means all the corner lots can become apartments without additional parking requirements.

The second bullet says "Allowing lots zoned for single-family residential uses that abut (either shares a property line or is directly across the street from) property that fronts an arterial or major collector, and is zoned and used for commercial or mixed-use development, to develop with rental multi-family housing using R3 zoning regulations to encourage missing middle housing. "

This means properties located behind or around a shopping center can become apartments. Probably many people live there didn't realize they are impacted.

Arterials:

• Homestead Rd
• Stevens Creek Blvd
• De Anza Blvd
• Wolfe Rd

Major collectors:

• N. Tantau
• Miller Ave
• N. Stelling
• Bubb Rd
• N. Foothill Expressway

Below is an incomplete list of impacted streets:

• Near Homestead
  ** Shady Oak Ln
  ** Firethorn Dr
• Near Stevens Creek Blvd
  ** Norwich Ave - all of east side
  ** Amherst Dr-east end
  ** Denison Ave-south end
  ** Wheaton Dr-all of south side
  ** Stern Ave-north end
  ** Bret Ave-north end
  ** Judy Ave-north end
  ** S Tantau Ave-north end
  ** E. Estates Dr-north end
  ** Richwood Dr-north end
  ** Bixby Dr-all of north side
  ** Brenda Ct-north and east end
  ** Mello Place-north end
  ** Deeprose Pl-north end (possibly)
  ** Randy Lane-south end close to Stevens Creek Blvd
  ** Miner Place-north end, south end
  ** Partlett Place-north end, south end and by Donut Wheel
  ** Scofield Dr – all of it
  ** Alves Dr-between Sachi Way and Stelling
  ** Peninsula Ave-south end
  ** Santa Clara Ave-south end
  ** Adrian Ave-south end
  ** Eaton Place-east end
  ** Ramona Ct-north end
  ** Northeast side of Stevens Creek Blvd near N. Foothill Expressway
  ** Cupertino Rd-west end
• De Anza Blvd
  ** Sunrise Dr-east end (possibly)
  ** Rodrigues Ave-behind XLB Kitchen shopping center
  ** Terry Way-east side
  ** Paradise Dr-east side
  ** McClellan Rd-northeast and southeast end
  ** Felton Way-east side
  ** Blossom Ln-east end
  ** Kirwin Ln-east end
  ** Westlynn Way- east side (possibly)
  ** Jamestown Dr-east side
  ** Clifden Way – west end
  ** Clay St – west end
  ** Silverado Ave – west end
• Bollinger
  ** Clifden Way-west side
  ** La Roda Dr-south end
  ** S Blaney Ave-southwest end

Due to a state audit, Cupertino lost about $30M online sales tax per year.

For FY 2023-24, Cupertino reduced the spending to $120M (the spending was $130M for FY 2022-23), a $10M reduction compared to previous fiscal year. The $10M reduction was mainly Service-Level Reductions.

Below is a screenshot for FY 2023-24 budget.

According to staff report on 01/17/2024 (snapshot on 1/23/2024, the original link is here which will download a file to your computer), even with budget cutting made in FY 2023-24, Cupertino is still facing $10M budget deficit. And the gap will grow up to $15M in ten years.

To reduce the budget deficit, the City Council is seeking to

• Increase revenue with new taxes and increasing fees for city services
• Reduce spending with potential service-level reductions (snapshot on 1/21/2024. The original link is here which will download a file to your computer).

At the same time, Cupertino Voice performed some budget related surveys. One promising suggestion for reducing the budget, endorsed by a majority of respondents to Survey #2, was to “Scaling back the Staff Per 1,000 Residents to FY 2014-15 level". This measure alone could save the city about $9M per year. The results of Survey #2 were shared with the City Council with both oral and written communications.

City staff proposed a list of 32 potential service-level reductions (SLR). Most of them will affect residents everyday life.

Cupertino Facts also had a nice article covers this topic.

Below are sceenshots for those SLRs

On 11/14/2023, the Planning Commission of Cupertino made significant changes about Accessory Dwelling Unit (ADU) policies. The changes include:

• Allow up to three ADUs on a single family lot (page 19 of the redline)
  ** Old rule: only one ADU in general, two ADUs with conditions
• Increase the height limitation of ADUs (page 20 of the redline)
  ** Detached, new rule: 18 feet, old rule: 16 feet
  ** Attached, new rule: 25 feet, old rule: N/A
• Two-story ADU allowed (page 20 of the redline)
  ** Old rule: Only conversion of existing two story part of primary dwelling unit allowed
• Two-story permit is eliminated for primary dwelling unit (page 13 of the redline)

No new parking requirement was added for ADUs.

The maximum three ADUs per lot could be in any combination of the following, taking into consideration other existing zoning standards:

• One attached ADU
• One conversion of existing space ADU (whether in principal dwelling unit or existing accessory structure)
• One detached ADU, or
• One Junior ADU

The redline of the changes can be found here. Note: the document was downloaded from City Council item on 12/06/2023. It was uploaded to Google Drive so you don't have to download a pdf file for every click.

The minutes of the meeting can be found here.

According to Bloomberg Tax, Cupertino City Council weighs four tax options to fill in Apple revenue loss. The council must decide by June to make the options appear on the November 2024 ballot.

City of Cupertino published a survey for business community at here.

The four tax options are:

• A 0.25% local transaction and use tax, which would be added to the 9.125% sales tax. It would be levied on purchases made in Cupertino and allocated to the city. The city expects this tax would raise $5.4 million annually.
• An increase from 12% to 15% in the city's transient occupancy tax on lodging, which would raise $1.9 million per year.
• A parcel tax levied at a flat rate or several progressive rates on homes and businesses, which would raise $3.7 million per year.
• A business operations tax levied at progressive rates based on some measurable aspect of the business operations, such as: gross receipts/payroll, number of employees, square footage of business, etc. BOT would raise $4.1 million per year.

Transaction and Use Tax is different from sales tax. Sales tax is based on Point of Sale, while TUT is based on Point of Delivery. Cupertino residents should pay TUT when they shop online since TUT applies to delivery address. Anyone shopping in Cupertino businesses also should pay the increased TUT.

Cupertino's current sales tax is 9.125%. With 0.25% hike, the new tax rate will be 9.375%. As comparison, Sunnyvale, Santa Clara, Saratoga, and Los Altos have sales tax rate at 9.125%. While sales tax in San Jose is 9.375%.

The city's survey suggested the Business Operation Tax being considered is employee head tax. Many businesses, including Apple, expressed they oppose such tax before. But that happened before Apple sales tax loss. Apple mentioned they would stop any future growth in Cupertino if employee head tax is levied.

The parcel tax applies to each home and business. It can be either flat rate or per square foot. Flat rate has more impact for individual home owners than large landlords since they would pay the same amount regardless the size of the property. The city's survey suggested flat rate Parcel Tax is being considered. Bloomberg has an article A Progressive Parcel Tax Could Solve Cupertino’s Budget Woes.

Transient Occupancy Tax applies to lodgers in Cupertino hotels. It doesn't affect residents directly, but may affect hotel business.

Below is a copy of this article on Bloomberg Tax by Laura Mahoney

Cupertino Weighs Four Tax Options to Fill in Apple Revenue Loss
December 5, 2023, 7:47 PM PST

o City council faces June deadline to decide
o Revenue loss tied to state’s review of Apple sales tax agreement
By Laura Mahoney / December 5, 2023 10:47PM ET / Bloomberg Law
Leaders in Apple Inc.'s hometown of Cupertino are considering a menu of four tax increases to make up for the loss of revenue from the company’s online sales.
The Cupertino City Council voted 4-1 on Tuesday to direct its staff to ask businesses in the city for their input on the tax ideas and report back in January, when the council will also be considering budget cuts to help close a $15 million deficit due to the state’s actions. Next, the council could consider narrowing the options for possible placement on the November 2024 ballot after polling residents to gauge support. The council must decide by June.
The four tax options are:
• A 0.25% local transaction and use tax, which would be added to the 9.125% currently levied in Cupertino that includes statewide sales tax and six different county or regional special taxes. It would be levied on purchases made in Cupertino and allocated to the city, and would raise $5.4 million annually.
• An increase from 12% to 15% in the city’s transient occupancy tax on lodging, which would raise $1.9 million per year.
• A parcel tax levied either at a flat rate or several progressive rates on homes and businesses, which would raise $3.7 million per year.
• A business operations tax, or employee tax, levied at progressive rates based on the number of employees, which would raise $4.1 million per year.
Cupertino is facing the choices because the California Department of Tax and Fee Administration is scrutinizing whether Apple improperly designated the city as the location of online transactions for iPhones, MacBooks, Airpods, and other products sold in California. The city has an agreement with Apple to give 35 cents of every dollar to the company, and has paid Apple $107.7 million since 1998.
The council has already set aside $56.5 million to repay the department for sales tax it has received since April 2021 and expects future sales tax revenue could drop by 73%.
The city is appealing the department’s determination, but that process is expected to take months or years and could end up in state court.
Council members, who did not name Apple during the hearing, opted to ask the business community for input first instead of taking recommendations from its staff and a consulting firm that analyzed options to begin polling residents on their support for the transaction and use tax. That option, which would require a majority of voters’ approval, would keep the city’s tax rate competitive with its neighbors’ and be spread across residents, businesses, and visitors.
Even if the city enacts a tax increase, it will still face an annual budget shortfall of at least $10 million, said Kristina Alfaro, director of administrative services.
To contact the reporter on this story: Laura Mahoney in Sacramento, Calif. at lmahoney@bloombergindustry.com
Link to story: https://news.bloombergtax.com/daily-tax-report-state/cupertino-weighs-four-tax-options-to-fill-in-apple-revenue-loss

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Cupertino crime data

The Civil Grand Jury of Santa Clara County published a report A House Divided: Cupertino City Council and City Staff.

The report shows there is a tension between the City Councilmembers and the city staff.

City of Cupertino hired Linda Daube to investigate issues raised in the report. Linda returned to the Council with her Fact Finding Report.

In the City Council Meeting of 5/9/2023, the council majority (Mayor Hung Wei, Vice Mayor Sheila Mohan, and Councilmember J.R. Fruen) made some unpreceded decisions, including

• Remove all committee assignments from Councilmember Chao and Councilmember Moore.
• Referred Santa Clara County District Attorney to investigate current and former councilmember (including former Mayor Paul) to see if they had unduly influenced the City Manager or City Staff in hiring or firing decisions.
• Went ease for City Staff and didn't ask for any improvement in response to the Civil Grand Jury report.

The interesting thins is the Deputy District Attorney responded to the referral in a short 9 business days and claiming "There is no evidence ... that any former or current council member attempted to influence any of the City Managers in their hiring or firing decisions".

San Jose Spotlight covered the story.

Cupertino City published a Community Budget Survey to get community input for the budget crisis.

But the survey only covered a small portion of total budget.

Cupertino City Hall was designed and built in 1965. The size is about 24,140 square-foot (indicated here). It doesn't meet the current building standards. Please see here for more information. We need to do something to make it meet current standards.

There are three options according to a 04/30/2019 report:

• Building new City Hall - $70.5M
• Renovated - $23M
• Minimum - $6.6M
  

Neighboring city Sunnyvale just built a new 120,000 square-foot City Hall. And the first phase cost was about $315M (see here). So the per square-foot cost is about $2625.

On 11/15/2022, Cupertino City Council directed the staff to include the City Hall Renovation with $27.5M to next FY budget (see here).

On 02/11/2023, the new City Council preferred a new 80,000 square-foot City Hall. If we take the Sunnyvale new City Hall's per square-foot cost number, the cost would be $210M, which is much more than proposed $70.5M.

New City Hall was included in the FY 2023-24 five year plan for CIP.

Given Cupertino is in a budget crisis, which option for the City Hall do you think Cupertino should take?

City Hall appeared on the agenda of 10/17/2023 as item 7: "Direct staff to pursue conceptual development of a mixed used Public Private Partnership for City Hall and the Sports Center properties".