CC 01-17-2024 Item No. 1. Potential Service-Level Reductions_Supplemental Report1
CITY COUNCIL STAFF REPORT
SUPPLEMENTAL 1
Meeting: January 17, 2024
Agenda Item #1
Subject
Provide input to staff on potential service‐level reductions for the FY 2024‐25 Proposed and Final
Budgets
Recommended Action
Provide input to staff on potential service‐level reductions for the FY 2024‐25 Proposed and Final
Budgets
Background:
Staff’s responses to questions received from councilmembers are shown in italics.
Q1: The current budgeted amount for School Site Maintenance is $1,237,763, considering
the actuals have been very close to this number, will staff please consider adjusting the
savings to match the Budget? (Councilmember Moore)
Staff response: The adopted budget for School Site Maintenance is $1,383,586. The $1,237,763
takes into account estimated revenue of $145,000 to come up with the General Fund costs of
$1,237,763. Prior year actual costs for FY 2020‐21 to FY 2022‐23 have ranged from $1.3‐1.4M,
this budget is aligned with prior year actual costs. The $1,237,763 budget for this program
includes salaries and benefits for staff, as well as materials, contract services, special projects, cost
allocation, and contingencies. If the City were to eliminate this program, the City would receive
immediate savings in the cuts associated with materials, contract services, special projects, cost
allocation, and contingencies. The city would not immediately realize the savings in salary and
benefits. These costs would be reallocated to other programs. Basically, the savings the city would
realize immediately through eliminating this program is approximately $737,000.
Q2: The budgeted revenue on p. 516 is $145,823, while the estimated revenue is shown in
the SLR Summary table as approximately $57k, which is likely what the adjusted fees
have resulted in. What was the impact of the field use fee calculation adjustments the City
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Council approved a couple of years ago? (Councilmember Moore)
Staff response: The budgeted revenue on p. 516 is the partial water reimbursement from the
district to the city. The estimated revenue for the water reimbursement in the 2024 adopted budget
is $145,823, which is allocated to Public Works Grounds Maintenance.
The revenue estimated in the 2024 adopted budget for field use permit revenue is $150,000.
$57,000 is the estimated field permit revenue currently received from just the school district fields,
which is allocated to the Parks and Recreation Department. The fee adjustment by council has been
impacted by the pandemic and field closures due to rain, but the revenue is currently 2 percent
more than before the adjustment. The fiscal year 22‐23 season saw 26 days of field closures due to
rain.
Q3: Library maintenance, both interior and exterior is covered by the JPA along with
Janitorial services. The city covers the aquarium contract which had been $36,000
annually, but the current budget shows a reduction on page 564 of $8,395, which would
further reduce the General Fund Costs to $36k ‐ $8,395 = $27,605 instead of the $88,380
shown. This could be reflected in the SLR Summary? (Councilmember Moore)
Staff response: All ongoing reductions approved by City Council as part of the Fiscal Year 2023‐
24 Adopted budget are already included in the base budget. The reduction is already reflected as
the contract services budget was originally $462,881 but was adopted at $454,486 (page 564),
showing the $8,395 difference. There is no need to reflect in the SLR summary.
Q4: Several Special Projects were canceled as shown below, from the City’s Q1 update,
saving about $1.2 M. That would have freed up previously assigned funds to the
unassigned fund balance, can someone point to where this has been accounted for?
(Councilmember Moore)
Staff response: Any reduced expenditures in the prior fiscal year are accounted for in year‐end
unaudited fund balance in their respective funds.
Q5: Here are the Special Projects the Q1 update indicate are continuing, note that about
$40M has been appropriated in prior year and current Special Projects’ budgets. Are any
of these set to be canceled? Does staff have some recommendations on which ones could
be added to the 1/17/2024 suggestions? (Councilmember Moore)
Staff response: Staff reviews the special projects on a quarterly basis and at year‐end close to assess
the project status and if a project should continue. Departments reviewed these projects as part of
the First Quarter Financial Report, and recommendations for eliminating some projects can be
found in Attachment A. Additional reductions to City Work Program items as identified by CWP
in the title will be discussed with the Council in March.
Q6: Would you please break out the bullet point services the SR2S program provides
(listed below), for instance how much is the crossing guard program costing, hosting
working group meetings, Earth Day, Fall Bike festival, and newsletters.
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2016 Measure B funding for Bicycle/Pedestrian Education and encouragement was
$33,060 for FY 23 as shown in the Q1 Update, November 21, 2023, PDF 55. The Safe
Routes 2 School Budget Unit 100‐88‐846 mentions that “Program expenses are cost‐
recovered through Measure B grant funding.” (see page 614 of the FY 24 Adopted
Budget) The Budget does not show how much of the SR2S budget is cost‐recovered
specifically from Measure B, but does show $154,000 in unspecified revenue with
expenditures of $732,278 and total General Fund costs of $578,278. There are no
Councilmembers assigned to this group, which holds regularly scheduled monthly
hybrid meetings on Zoom and in person at the city. https://www.cupertino.org/our‐
city/departments/public‐works/transportation‐mobility/safe‐routes‐2‐school There are no
meeting minutes kept for the SR2S Working Group meetings. “The Cupertino Safe Routes
to School Working Group is a partnership between City staff, Cupertino Union School
District, Fremont Union High School District, public schools in Cupertino, parents, high
school students, and community groups such as Walk Bike Cupertino and the Cupertino
Rotary Club.” It appears that the City Council formed the group in 2015.
Crossing Guards
Events
Cupertino Safe Routes to School hosts numerous events throughout the year.
Working Group Meetings throughout the year
The Cupertino Safe Routes to School Working Group meets most months of
the school year to collaborate in expanding the program.
Earth Day Activity in April
In 2023, Safe Routes to School is organizing a walking tour of the Regnart
Creek Trail in conjunction with the Cityʹs annual Earth and Arbor Day
Festival. Check the Regnart Creek Trail Tour page for details.
Typically the Cupertino Safe Routes to School team hosts family‐friendly bike
rides that allow participants to experience city landmarks and parks. Weʹre
changing it up this year to highlight the brand new, long‐anticipated opening
of the Regnart Creek Trail in the spring.
High School Student Representative Program recruitment in the spring
Cupertinoʹs Safe Routes to School program recruits high school students who
are passionate about either bicycling, healthy lifestyles, accessibility, safe
transportation, and/or campus safety as part of our Working Group.
Middle School Bike Skills Workshops: June through September
These bike safety workshops prepare rising 6th, 7th, and 8th graders to bike
to middle school and beyond.
Summer Bike Challenges in June and July
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The summer is a great time to ride a bike! Explore the City, get some exercise,
and have some fun while earning prizes.
Update: This program was started during the COVID 19 pandemic, when in‐
person bike events were not possible. Now that the pandemic is waning, Safe
Routes to School has partnered with the Cupertino Library to offer bike
challenges through their Summer Reading Program.
Fall Bike Fest in September
A family‐focused event that is held in the fall. Join us to enjoy a bike safety
rodeo, pedal‐powered bike blender smoothies, bike decorating, bike rides,
and more!
Getting to School
The City of Cupertino strongly encourages all families to choose alternative
transportation for traveling to and from school. Alternative transportation
includes walking, biking, carpooling, and transit. To this end, Cupertino Safe
Routes to School has developed various resources to assist families in
determining appropriate routes for walking and biking to school. Please
reference the resources below when planning your childʹs route to school.
Below are helpful resources to assist Cupertino families in making healthy
and sustainable transportation decisions.
Suggested Routes to School Map for Each School
Interactive Map for Cupertino Schools
Via‐Cupertino Shuttle
The City of Cupertino collects data on how students travel to and from
Cupertino schools. View the reports below to understand Cupertino student
transportation trends.
Student Travel Data Reports
Newsletters
Stay up to date on all things Safe Routes to School. Our monthly newsletter
includes infrastructure updates, upcoming events, safety tips, stories of
student‐led projects, and much more! View our past newsletters here:
Newsletters
o Receive future newsletters in your inbox by subscribing to our email
list. To subscribe, enter your email into the SR2S Newsletter box here:
o E‐Notification Signup
Check out our Back to School page to make sure you are prepared to walk,
bike or scooter to school:
Back to School
Discover safety tips, videos, and much more! Learn how to become a safer
pedestrian and cyclist by reviewing our Safe Routes to School educational
resources.
Resources
Transportation Projects for Student Safety
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Cupertino also has the Bicycle and Pedestrian Commission with expenditures of $62,715
and overlapping service objectives with SR2S. The members of the Commission are
appointed by City Council and while the meetings are not recorded, or hybrid on Zoom,
there are meeting minutes available.
Perhaps there is some overlap between these groups?
(Councilmember Moore)
Staff response:
Bike Ped Education and Education at events $16,800
Pedestrian Education Program $49,169
Online Outreach for Events $500
Cost‐share of SAM insurance policy with P&R $1,500
Crossing guard contract (does not include $40K reimbursements) $301,293
Banners, flyers, newsletters, brochures, etc. in multiple languages $5,860
Supplies for various programs $22,465
Annual Bike Fest Event Support $16,300
Kindergarten Education for All Schools $11,200
The City receives reimbursements through Measure B funds for a portion of the SR2S program.
These funds vary per year, but on average the City receives approximately $47,000 annually
towards the program.
The expenditures for the Bicycle and Pedestrian Commission includes salary and benefits as well
as other overhead items, including materials and cost allocations. There is no overlap in the costs
or services between these two programs.
Q7: Public Works: Reduce Public Works materials, and contract services and part time
positions: only two examples of reductions are listed, and the total amount is far from
$1,768,539. Can you provide more information on how the $1,768,539 is reached?
(Councilmember Wei)
Staff response: See revised Attachment A for further detail.
Q8: Could you name a few cities by us that require sidewalk maintenance and tree
maintenance paid by property owners? (Councilmember Wei)
Staff response: Based on current knowledge, the following table provides information on the entity
responsible for maintaining the described assets within the public right of way for neighboring
Cities.
City Sidewalk Maintenance
Responsibility
Street Tree Maintenance
Responsibility
San Jose Property Owner Property Owner
Campbell City City
Sunnyvale Property Owner & City * City
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Mountain View City City
Palo Alto Property Owner City
Los Altos Property Owner Property Owner
Saratoga Property Owner Property Owner
* Sunnyvale requires property owners to maintain sidewalks where they are situated within
easements.
Q9: CWP License Plate Readers Project ‐ how much is this specific project cost?
(Councilmember Wei)
Staff response: The current allocated budget is $60,000 for the installation of an estimated 20 LPR
Cameras. If installed, there is an ongoing annual cost of $2,500 per camera (or $50,000 annually
for the 20 cameras).
Q10: Reduce Funding for Partnerships: how much savings per Partner? (Councilmember
Wei)
Staff response: The savings are $60,000 for the Chamber and $8,293 for Sister Cities, and $1,014
for other business memberships.
Q11: What school grounds are covered under the field use agreement? (Vice Mayor
Fruen)
Staff response: This information can be found online at https://www.cupertino.org/our‐
city/departments/parks‐recreation/reservations‐permits/sports‐fields‐courts.
Q12: How will sidewalk maintenance by the residents be enforced? Also need to update
in the SLR attachment to say Cupertino Union not unified. (Vice Mayor Fruen)
Staff response: The City would continue to provide temporary corrections to rapidly respond to
unacceptable conditions. The City would then issue letters to residents notifying them of the need
to perform maintenance on the sidewalk adjacent to their property and would provide a reasonable
timeline for the resident to respond to the notice. Should the corrective work not be addressed in a
timely manner, the city would be considering issuing code violations. The process would require a
municipal code modification.
Q13: What is being reduced from Sister Cities, does this include room usage, how much
does that cost the city? (Councilmember Moore)
Staff response: The current Sister City policy limits travel, which results in budget savings related
to travel and gifts. The use of meeting room space is not included in the reductions. The policy
allows for free use of meeting space for Sister City Committees each year. The cost of the maximum
allowed space reservations, if exhausted, per Sister City Committee is approximately $700 per
year.
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Q14: What does the historical society contract cost the City? Can it be included in the
SLR discussions? (Councilmember Moore)
Staff response: The total grant funding provided pursuant to the agreement shall not exceed the
annual sum of $40,000. The contract is currently for a three‐year term ($120,000) with an option
for two addition years ($80,000) for a total sum of $200,000 over five years.
Additionally, the agreement includes 18 meeting rooms and four large rooms at the Quinlan
Community Center per calendar year and the Historical Museum space at Quinlan Community
Center. Depending on the time of the meeting or event and the room rented, the monetary value
ranges. Meeting Room refers to the Conference Room and Large Rooms refer to the Cupertino and
Social Room. The space the museum currently occupies at Quinlan Community Center is
relatively the same size as the Social Room.
Q15: Can I get a listing of all contracts the City has with non‐profits? (Councilmember
Chao)
Staff response: The support the City provides to non‐profits is described on the City website:
https://www.cupertino.org/our‐city/departments/finance/non‐profit‐support‐opportunities
Q16: Can we further reduce our fleet and SLR amount for ʺDefer Vehicle and Equipment
Replacement? (Councilmember Moore)
Staff response: The City has already made significant reductions to this budget (approximately
$693,000 over the last two years). The City could reduce this budget further; however, the State
has mandated that 50% of new vehicle and equipment purchases be no‐emissions vehicles.
Currently, no‐emissions vehicles are more costly than traditional gasoline/diesel vehicles, so a
certain level of funding is required in order to meet this mandate. Staff does not recommend
reducing the budget for this program any further at this time.
Q17: Can we add removing AI from McClellan to the SLRs? (Councilmember Moore)
Staff response: The AI project for McClellan is currently at a stage where cancellation is not
feasible due to contractual obligations and the expenditure of approximately half of the $60,000
budget.
Q18: Can we get information on the Senior Center costs; what programs are funded, and
which are costs recovery. Be sure to include the travel program. (Councilmember Chao
and Councilmember Moore)
Staff response: A link is provided below to a saved view on the City’s financial transparency portal
showing actual revenues versus expenditures:
Senior Center
Q19: Can we get more information on the preschool program, does that costs recover?
(Councilmember Moore)
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Staff response: Preschool is 125% cost recovery.
Q20: Can we get more information on BBF and Sports center, do those costs recover?
(Councilmember Chao)
Staff response: Links are provided below saved views on the City’s financial transparency portal
showing actual revenues versus expenditures:
Blackberry Farm
Sports Center
Q21: I believe we continue to pay for an annual contract for legislative consultant, which
was meant to support the Legislative Review Committee with almost monthly meetings.
Now that the Legislative Review Committee is decommissioned, Iʹd like to revisit this
item. How much is annual contract? (Councilmember Chao)
Staff response: City currently has an agreement with the legislative consultant, Gonsalves and
Sons, in the annual amount of not to exceed $56,500.
Q22: I believe the city has contracted a PR consultant last year. Do we still have continued
contract on that area? If so, how much? (Councilmember Chao)
Staff response: The agreement with Native Digital is in the amount of $174,732.
Q23: What other similar contracts are there under the City Managerʹs Office?
(Councilmember Chao)
Staff response: There are no other PR agreements in the City Manager’s Office.
Q24: I have requested a more detailed budget of the SR2S in the prep session, since there
has never been an update to the Council on that area. Iʹd like to know the staffing and
annual budget for last year, and if possible, the last 5 years. (Councilmember Chao)
Staff response:
The Safe Routes to School program meets monthly to provide information and updates on the
program. Members of the public can sign up to be notified of upcoming meetings on the Safe
Routes to School Working Group webpage at: https://www.cupertino.org/our‐
city/departments/public‐works/transportation‐mobility/safe‐routes‐2‐school/get‐involved/working‐
group
The Safe Routes to School Program also releases a regular newsletter with information regarding
upcoming events, safety tips, stories of student‐led projects, as well as general updates regarding
the program. Members of the public can sign up to receive the newsletter via email at the Safe
Routes to School webpage here: https://www.cupertino.org/our‐city/departments/public‐
works/transportation‐mobility/safe‐routes‐2‐school/newsletters
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Historical budget, actuals and staffing for the SR2S program can be found in the City’s Adopted
budget book pages 614‐615. In addition, staff has created a saved view on OpenGov that shows
historical budget and actual expenses and can be found here.
Q25: I have requested a more detailed budget of the Senior Center in the prep session,
since there has never been an update to the Council on that area. Iʹd like to know the
staffing and annual budget for last year, and if possible, the last 5 years. (Councilmember
Chao)
Staff response: A link is provided below to a saved view on the City’s financial transparency portal
showing actual revenues versus expenditures. Staffing information can be found in the City’s
Adopted Budget:
Senior Center
Q26: Iʹd like clarification on the homeless jobs program on whether the contract is still
active. Iʹd like to know what other similar grant/contract the city currently has with other
nonprofit/social service organizations. Could the expenses be covered with the CDBG
grant? (Councilmember Chao)
Staff response:
The contract with West Valley Community Services (WVCS) for the Homeless Jobs Program is
still active. Although the program did not receive any additional funding from the City Work
Program budget for FY 2023‐24, they were allowed to extend the period of performance for their
previous contract to expend the remaining funds that they received through the FY 2022‐23 CWP.
The table below shows the current grants for FY 2023‐24 as adopted by City Council on May 2,
2023, other nonprofits/social service organizations for the Housing and Human Services program,
Rebuilding Together Silicon Valley
Live Oak Adult Day Services
God’s Promise
Project Sentinel
Catholic Charities of Santa Clara County
Maitri
Senior Adults Legal Assistance
The Homeless Jobs Program would be eligible for CDBG funding under the category of “public
services”. However, the program would have to compete with other applicants for a limited
amount of funding. In addition, CDBG public service funding is currently not available until FY
2025‐26 due to a two‐year approval cycle.
Q27: Iʹd like an update on the contract/grant for Cupertino Historic Society, which is
$40,000/year, while Cupertino historically only gave a grant of $10,000 or at most $20,000
before 2019, I believe. Since the financial situation of the City is very different now, what
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options the city has? (Councilmember Chao)
Staff response: Based on the grant funding and license agreement in place, we can renegotiate the
funding reimbursement by negotiating a reduction of the obligations by the Cupertino Historical
Society to the City or terminate the agreement on the 30 days’ notice clause in the contract.
Q28: Besides the Historic Society, we learned last year that Cupertino had been giving
funding to Shakespeare in the Park, a fantastic program. But the city will likely be
stopping that funding. In the spirit of fairness, Iʹd like to know what other contracts
(funding in that format) the city has with other organizations? Iʹd like to explore what
services they are providing and whether there is potential to obtain other sources of grant
funding. (Councilmember Chao)
Staff response: The Parks and Recreation Department has two of these funding formats and they
are the Historical Society and Shakespeare in the Park.
Q29: For the last item in the table, ʺEliminate select city work programʺ. Some of those
were programs from last year. Could you provide an update on the program, when did it
starts. and the budget for each item being considered for elimination. (Councilmember
Chao)
Staff response: The start date, status, and budget of the city work program items recommended for
elimination in Attachment A can be viewed on the City Work Program Dashboard at
cupertino.org/cityworkprogram. Additionally, the License Plate Readers project has been on hold
due to the County revising their policies on usage for LPR. Also, the Regulating Diversified Retail
project was not identified as a priority item by Council during the prioritization session for FY 23‐
24.
Attachments Provided with Original Staff Report:
A. Potential Service‐Level Reductions Summary